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Home My WebLink AboutAgenda Packet 1996/05/21 Tuesday, May 21, 1996 5:30 p.m. UI declare binder penalty of perju~ t~at I am em'lo,'e:! by tl1e City of Chula Vista 10 the (), iiceo 01 [he City Clerk and that, I posted t'" Aeen'o/;'!otice on the BulletlO Board at ,\I" 6 "0, "~t City,HIIII on the Fublic Scr jces Bwlctmg ,~::::;\ " DATED,.,o; n SIGNED B Re2ular Meetin2 of the Citv of Chula Vista Citv Council Council Chambers Public Services Building CALL TO ORDER 1. ROLL CALL: Councilmembers Alevy _, Moot _, Padilla _' Rindone _, and Mayor Horton _' 2. PLEDGE OF ALLEGIANCE TO THE FLAG. SILENT PRAYER 3. APPROVAL OF MINUTES: May 7, 1996 (City Council); May 7, 1996 (Joint Meeting of the City Council/Redevelopment Agency) 4. SPECIAL ORDERS OF THE DAY: a. Recognition of CAPIO awards to the City for the "Chula Vista Quarterly Newsletter" and for the economic development video, "Catch the Spirit." Jeri Gulbransen, Public Information Officer, will present the awards. b. Proclaiming the week of May 19 through May 25, 1996 as Emergency Medical Services Week. Brenda Bracken, Director of Marketing for Hartson Medical Services, and three paramedics will be accepting the proclamation. >Ie*"'** Effective April 1, 1994, tliere have been new amendments to the Brown Act. The City Council must now reconvene into open session to report any final actions taken in closed session and to adjourn the meeting. Because of the cost involved, there will be no videotaping of the reconvened portion of the meeting. However, final actions reported will be recortkd in the minutes which will be available in the City Clerk's Office. "'**"'''' CONSENT CALENDAR (Items 5 through 16) The staff recommetulations regarding the following items listed under the Consent Caletular will be enacted by the Council by one motion without discussion unless a Councilmember, a member of the public or City staff requests that the item be pulled for discussion. If you wish to speak on one of these items, please fill out a "Request to Speak Form" available in the lobby and submit it to the City Clerk prior to the meeting. (Complete the green form to speak in favor of the staff recommetulation; complete the pink form to speak in opposition to the staff recommetulation.) Items pulled from the Consent Caletular will be discussed after Board and Commission Recommetulations and Action Items. Items pulled by the public will be the first items of business. 5. WRITTEN COMMUNICATIONS: a. Letter from the City Attorney stating that there were no reportable actions taken in Closed Session on 5/14/96. It is reconnnended that the letter be received and filed. b. Letter of resignation from Dorothea Grindle - Commission on Aging. It is reconnnended that the resignation be accepted with regret and the City Clerk be directed to post innnediately according to the Maddy Act in the Clerk's Office and the Public Library. c. Letter from Victor Saba requesting that two dusk to dawn lights be installed on the roof at the horse shoe pits at the Norman Park Center for additional security. Agenda -2- May 21, 1996 6.A. ORDINANCE 2672 AMENDING CHAffER 19.47 OF THE MUNICIPAL CODE TO CREATE THE PUBLIC/QUASI-PUBLIC (PQ) ZONE (PCA 96-03) (second readilll! and adoDtion) Three related applications have heen initiated by the City as a result of non-Baldwin owned parcels being annexed into the City. Staff recommends Council place the ordinances on second reading and adoption. (Special Planning Projects Manager, Otay Ranch Project) B. ORDINANCE 2673 AMENDING CHAPTER 19.48 OF THE MUNICIPAL CODE RELATING TO THE PLANNED COMMUNITY (PC) ZONE (PCA-96-02); AND APPROVING THE PREZONING OF APPROXIMA TEL Y 600,09 ACRES TO THE PC ZONE, PUBLIC/QUASI-PUBLIC (PQ) ZONE AND THE AGRICULTURAL (A) ZONE (PCZ 96-A) (second readilll! and adoDtion) 7. RESOLUTION 18295 ACCEPTING THE STATE DEPARTMENT OF CONSERVATION, DIVISION OF RECYCLING, CURBSIDE INITIATIVE GRANT NUMBER 5095-227 FOR $39,887, AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL DOCUMENTS IN CONJUNCTION WITH ADMINISTERING THE GRANT - On 6/25/95, Council ratified the submittal of a $50,027 application to the California Department of Conservation, Division of Recycling. On 4/22/96. the City received notification that a grant of $39,887 had heen approved for award to the City. Staff recommends approval of the resolution. (Conservation Coordinator) 8. RESOLUTION 18296 ACCEPTING THE CALIFORNIA INTEGRATED WASTE MANAGEMENT BOARD USED OIL RECYCLING BLOCK GRANT NUMBER UBG4-95-1407-37 FOR $79,963 TO CONTINUE USED OIL RECYCLING AND EDUCATION PROGRAMS FOR FISCAL YEAR 1996/97 AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL DOCUMENTS IN CONJUNCTION WITH ADMINISTERING THE GRANT - The California Used Oil Enhancement Act requires the collection of four cents for every quart of lubricating oil sold, transferred and imported in California from oil manufacturers. Chula Vista consumers pay four cents per quart into the fund when they purchase oil. The Act mandates the California Integrated Waste Management Board use a portion of the funds to provide block grants to local governments for used oil programs that encourage recycling. Staff recommends approval of the resolution. (Conservation Coordinator) 9. RESOLUTION 18297 APPROVING THE ENGINEER'S REPORT FOR THE FISCAL YEAR 19%/97 SPREAD OF ASSESSMENTS FOR CITY OPEN SPACE DISTRICT NO.1, DECLARING THE INTENTION TO LEVY AND COLLECT ASSESSMENTS, AND SETTING JUNE 18, 1996 AT 6:00 P.M. AND JULY 16, 1996 AT 6:00 P.M. AS THE DATES AND TIME FOR THE PUBLIC HEARINGS - Based upon the advice of the City Attorney, this agenda item has heen separated due to conflict of interest concerns. Staff recommends approval of the resolution. (Director of Public Works) 10. RESOLUTION 18298 APPROVING THE ENGINEER'S REPORT FOR THE FISCAL YEAR 1996/97 SPREAD OF ASSESSMENTS FOR CITY OPEN SPACE DISTRICT NO. 10, DECLARING THE INTENTION TO LEVY AND COLLECT ASSESSMENTS, AND SETTING JUNE 18, 1996 AT 6:00 P.M. AND JULY 16, 1996 AT 6:00P.M. AS THE DATES AND TIME FOR THE PUBLIC HEARINGS - Based upon the advice of the City Attorney. this agenda item has heen separated due to contlict of interest concerns. Staff recommends approval of the resolution. (Director of Public Works) Agenda -3- May 21, 1996 11. RESOLUTION 18299 APPROVING THE ENGINEER'S REPORT FOR THE FISCAL YEAR 1996/97 SPREAD OF ASSESSMENTS FOR EASTLAKE MAINTENANCE DISTRICT NO. I, DECLARING THE INTENTION TO LEVY AND COLLECT ASSESSMENTS, AND SETTING JUNE 18, 1996 AT 6:00 P,M. AND JULY 16, 1996 AT 6:00 P.M. AS THE DATES AND TIME FOR THE PUBLIC HEARINGS - Based upon the advice of the City Attorney, this agenda item has been separated due to conflict of interest concerns. Staff recommends approval of the resolution. (Director of Public Works) 12. RESOLUTION 18300 APPROVING THE ENGINEER'S REPORT FOR THE FISCAL YEAR 1996/97 SPREAD OF ASSESSMENTS FOR CITY OPEN SPACE DISTRlCTS2-9,l1,14, IS, 17, 18,20,23,24,26,31, BAY BOULEVARD, AND TOWN CENTER, DECLARING THE INTENTION TO LEVY AND COLLECT ASSESSMENTS, AND SETTING JUNE 18, 1996 AT 6:00 P.M. AND JULY 16, 1996 AT 6:00 P.M. AS THE DATES AND TIME FOR THE PUBLIC HEARINGS - The city administers 24 open space districts established over the last twenty-five years. As part of this process, a levy of an annual assessment is necessary to enable the city to collect funds for the proposed open space maintenance. The proposed action begins the process for fiscal year 1996/97. Staff recommends approval of the resolution. (Director of Public Works) 13. RESOLUTION 18301 APPROVING OPEN SPACE ENCROACHMENT PERMIT TO THE CLARK REAL ESTATE GROUP AT RANCHO DEL REY BUSINESS PARK LOT 6 AND 25 - On 3/13/96, the Clark Real Estate Group (Cinema Star) applied for an open space encroachment permit to regrade approximately 4,500 square feet of open space land at the south edge of Rice Canyon adjoining Lot 6 and 25 of Rancho Del Rey Business Park. Staff recommends approval of the resolution. (Director of Parks and Recreation) 14. RESOLUTION 18302 AUTHORIZING THE ISSUANCE AND SALE OF NOT TO EXCEED $151,000,000 AGGREGATE PRINCIPAL AMOUNT OF INDUSTRIAL DEVELOPMENT REVENUE BONDS OF THE CITY TO FINANCE THE REFUNDING OF EXISTING INDUSTRIAL DEVELOPMENT BONDS FOR SAN DIEGO GAS AND ELECTRIC COMPANY; AUTHORIZING THE EXECUTION AND DELIVERY OF AN INDENTURE OF TRUST AND A LOAN AGREEMENT PROVIDING FOR THE ISSUANCE OF THE BONDS AND THE REPAYMENT OF THE LOAN OF THE PROCEEDS THEREOF, RESPECTIVELY; AND RELATED MATTERS- SDG&E has requested that the City assist them to qualify to possibly refinance two series of industrial development bonds that become callable in the near future. SDG&E is simultaneously going through the process to qualify the City of San Diego for the same refinancing. Staff recommends approval of the resolution. (Director of Finance) 15. RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF NOT TO EXCEED $130 MILLION AGGREGATE PRINCIPAL AMOUNT OF POLLUTION CONTROL REFUNDING REVENUE BONDS OF THE CITY OF CHULA VISTA TO REFUND CERTAIN BONDS ISSUED BY THE CALIFORNIA POLLUTION CONTROL FINANCING AUTHORITY TO FINANCE COSTS OF CERTAIN GAS AND ELECTRIC FACILITIES FOR SAN DIEGO GAS AND ELECTRIC COMPANY; AUTHORIZING THE EXECUTION AND DELIVERY OF AN INDENTURE OF TRUST AND A LOAN AGREEMENT PROVIDING FOR THE ISSUANCE OF THE BONDS AND THE REPAYMENT OF THE LOAN OF THE PROCEEDS THEREOF, RESPECTIVELY; AND RELATED MATTERS - SDG&E has Agenda -4- May 21, 1996 requested that the City assist them in refinancing up to five series of Pollution Control Revenue Bonds similar to the refinancing item for Industrial Development Bonds. Staff recommends approval of the resolution. (Director of Finance) 16. RESOLUTION 18304 RECERTIFYING THE FINAL SECOND-TIER ENVIRONMENTAL IMPACT REPORT (FEIR 95-01) AND ADDENDUM FOR THE OTAY RANCH SECTIONAL PLANNING AREA (SPA) ONE PLAN - On May 14, 1996, the City Council certified the Final EIR. However, because of some technical problems, it is necessary to recertify the Final EIR for the Otay Ranch SPA!. Staff recommends approval of the resolution. (Special Projects Manager, Otay Ranch Project) * * END OF CONSENT CALENDAR * * PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES The following items have been advertised and/or posted as public hearings as required by Inw. If you wish to speak to any item, please fill out the "Request to Speak Fonn" availnble in the lobby and submit it to the City Clerk prior to the meeting. (Complete the green fonn to speak in favor of the staff recommendation; complete the pink fonn to speak in opposition to the staff recommendation.) Comments are limited to five minutes per individual. 17. PUBLIC HEARING 18. PUBLIC HEARING 19. PUBLIC HEARING 20. PUBLIC HEARING CONSIDERATION OF A DRAFT SUBAREA PRESERVE PLAN FOR THE CITY OF CHULA VISTA GENERAL PLANNING AREA - The City is preparing a draft Subarea Preserve Plan which is intended to implement the draft Multiple Species Conservation Program (MSCP) for the entire Chula Vista General Planning area. The MSCP is a cooperative effort by the City of San Diego; the County of San Diego; the cities of Santee, Poway, and Chula Vista; other jurisdictions in the southwestern area of San Diego County; state and federal wildlife agencies; other special purpose agencies; and representatives of the land development industry and environmental organizations. Staff recommends Council provide policy direction regarding the Subarea Preserve Plan and direct staff to forward the draft Plan to the City of San Diego for inclusion into the environmental analysis document for the MSCP. (Director of Planning) Continued from the meeting of 5/14/96. CONSIDERATION OF COASTAL DEVELOPMENT PERMIT NUMBER 69 FOR THE CONSTRUCTION OF SEGMENT OF CALTRANS' BAY SHORE BIKEWAY FROM "F" STREET NORTH TO "D" STREET AND APPROXIMATELY 100 LINEAR FEET UNDER THE I-54 AND 1-5 ON RAMP - Staff recommends the public hearin2 be continued indefinitelv: it will be renoticed. (Director of Community Development) CONSIDERATION OF COASTAL DEVELOPMENT PERMIT NUMBER 70 FOR THE CONSTRUCTION OF A 35 FOOT IDGH, 24 FOOT WIDE FREE-STANDING SIGN AT THE BROADWAY ENTRY TO CHANNELSIDE SHOPPING CENTER - Staff recommends the public hearin2 be continued to 6/11/96. (Director of Community Development) PCM-96-14; AMENDMENT TO THE RANCHO DEL REY SECTIONAL PLANNING AREA (SPA) I PLAN FOR APPROXIMATELY 27.15 ACRES BY COMBINING THE EMPLOYMENT PARK lA AND EMPLOYMENT PARK 1B DISTRICTS INTO A SINGLE EMPLOYMENT PARK Agenda ORDINANCE 2675 21. PUBLIC HEARING -5- May 21, 1996 DISTRICT, AND MODIFYING THE PERMITTED, CONDITIONALLY PERMITTED, AND PROIDBITED LAND USES ALLOWED THEREIN _ CINTI LAND PLANNING REPRESENTING VARIOUS PROPERTY OWNERS - Applicant is requesting that the parcels currently designated under the Rancho del Rey Sectional Planning Area I Plan as Employment Park I A and Employment Park IB (EP-IA and EP-IB) be combined into a new district called, Employment Park. This would entail creating the new land use district and deleting the two old districts and defining the permitted, conditionally permitted, and prohibited land uses applicable thereto. Staff recommends Council place ordinance on first reading. (Director of Planning) Continued from the meeting of 5/14/96. AMENDING THE LAND USE DISTRICT MAP ESTABLISHED BY THE RANCHO DEL REY SECTIONAL PLANNING AREA I PLAN BY 1) CREATING ONE LAND USE DISTRICT FROM TWO EXISTING LAND USE DISTRICTS BY COMBINING SAID TWO DISTRICTS, 2) REDESIGNATING APPROXIMATELY 27.15 ACRES OF LAND INTO THE NEWLY CREATED LAND USE DISTRICT, 3) DELETING TWO EXISTING LAND USE DISTRICTS, AND 4) MODIFYING THE PERMITTED, CONDITIONALLY PERMITTED AND PROHffiITED LAND USES APPLICABLE THERETO FOR THE NEWLY CREATED LAND USE DISTRICT (first readiru!! PCM-94-04; CONSIDERATION OF A STREET NAME CHANGE FOR THE SEGMENT OF EAST ORANGE A VENUE BETWEEN HUNTE PARKWAY AND WUESTE ROAD - The proposal consists of changing the street name to "Olympic Parkway." This is the first phase of an overall program to rename East Orange A venue from Interstate 805 to Wueste Road. Future street name change phases will occur as the area along East Orange Avenue is developed. Staff recommends the Dublic hearin~ be continued to 5/28/96. (Director of Planning) Continued from the meeting of 5/7/96. ORAL COMMUNICATIONS This is an opportunity for the general public to address the City Council on any subject matter within the Council'sjurisdiction that is not an item on this agenda for public discussion. (State law, however, generally prohibits the City Council from taking action on any issues not included on the posted agenda.) If you wish to address the Council on such a subject, please complete the yellow "Request to Speak Under Oral Communications Fonn" available in the lobby and submit it to the City Clerk prior to the meeting. Those who wish to speak, please give your name and address for record purposes and follow up action. Your time is limited to three minutes per speaker. BOARD AND COMMISSION RECOMMENDATIONS This is the time the City Council will consider items which have been forwarded to them for consideration by one of the City's Boards, Commissions and/or Committees. None submitted. ACTION ITEMS The items listed in this section of the agenda are expected to elicit substantiol discussions and deliberations by the Council, staff, or members of the general public. The items will be considered individually by the Council and staff recommendations may in certain cases be presented in the alternative. Those who wish to speak, please fill out a "Request to Speak" fonn available in the lobby and submit it to the City Clerk prior to the meeting. Public comments are limited to five minutes. Agenda -{;- May 21, 1996 22.A. ORDINANCE 2676 AMENDING SCHEDULE X, SECTION 10.48.050 OF THE MUNICIPAL CODE - DECREASING STATE LAW SPEED LIMITS IN CERTAIN AREAS AND ESTABLISHING A SPEED LIMIT OF 40 M.P,H. ON PASEO RANCHERO FROM EAST "H" STREET TO TELEGRAPH CANYON ROAD (first readilll!) - The City Engineer bas determined tbat in the interest of minimizing traffic bazards and traffic congestion, and for tbe promotion of public safety, the speed limit on Paseo Rancbero between East "R" Street and Telegrapb Canyon Road be decreased from a prima facie 55 mpb to establisb a 40 mpb speed zone, and install an all-way stop at Paseo Rancbero and East "J" Street due to limited sigbt distance available. Staff recommends Council place tbe ordinance on first reading and approve the resolution. (Director of Public Works) B. RESOLUTION 18305 AMENDING SCHEDULE II, SECTION 10.52.030 FOR SPECIAL STOP REQUIRED - THROUGH STREETS AND STOP INTERSECTIONS, CREATING AN ALL-WAY STOP AT PASEO RANCHERO AND EAST "J" STREET 23.A. REPORT DENYING CITIZEN REQUEST FOR ALL-WAY STOP AT EAST "J" STREET AND PASEO LADERA, OVERRULING THE RECOMMENDATION OF THE SAFETY COMMISSION TO INSTALL THE ALL-WAY STOP - Based on the provisions of tbe Safety Commission Policy, wbenever tbe Safety Commission and tbe City Engineer differ on the recommendation of a traffic related issue, both parties bave tbe rigbt to appeal the matter to the Council for final resolution. The report is the City Engineer's appeal to overrule tbe recommendation of tbe Safety Commission to install an all-way stop at tbis intersection. Staff recommends Council accept the report and deny tbe installation of an all-way stop at tbe intersection of East "J" Street and Paseo Ladera and place the ordinance on first reading. (Director of Public Works) B. ORDINANCE 2677 AMENDING SECTION 10.48,020 OF THE MUNICIPAL CODE, INCREASING STATE LAW SPEED LIMITS IN CERTAIN AREAS AND ESTABLISHING A SPEED LIMIT OF 35 M.P.II. ON EAST "J" STREET FROM RIVER ASH DRIVE TO PASEO RANCHERO (first readimz) 24. RESOLUTION 18306 APPROVING THE CREATION OF THE BORDER ENVIRONMENTAL COMMERCE ALLIANCE (BECA) MICRO LOAN PROGRAM - The BECA Micro Loan Program is a partnersbip witb the Bankers Small Business Community Development Corporation and Accion International. The City will act as a guarantor for loans made to incubator tenants tbrougb either of the lending partners. The City would provide 50% guarantee, up to $25,000, for eacb loan as long as funding permits. Staff recommends approval of tbe resolution. (Director of Community Development) 25.A. RESOLUTION 18291 AMENDING FISCAL YEAR 1995/96 BUDGET, APPROPRIATING FUNDS FOR PREVIOUSLY APPROVED MOU'S - Subsequent to the adoption of tbe budget, Council approved MOU's with POA, IAFF, CVEA, and WCE and revised the benefits resolution for Unrepresented and Middle Managers. As a result of these actions, additional funding was required but not appropriated, and tbe budget was not amended. In coordination with this action it is also recommended tbat all department budgets be evaluated in accordance with the Council's policy on budget transfers. Staff recommends approval of the resolutions. (Budget Manager) Continued from tbe meeting of 5/14/96. 4/5tb's vote required, Agenda -7- May 21, 1996 B. RESOLUTION 18292 AMENDING THE FRINGE BENEFITS FOR MIDDLE MANAGERS FOR FISCAL YEAR 1995/96 C. RESOLUTION 18293 TRANSFERRING FUNDS BETWEEN DEPARTMENTS IN ACCORDANCE WITH THE BUDGET TRANSFER POLICY 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 puUed at the request of the public will be considered prior to those pulled by Councilmembers. Public comments are limited to jive minutes per individual. OTHER BUSINESS 26. CITY MANAGER'S REPORTlS): Scheduling of meetings. 27. MAYOR'S REPORT(S) 8. Ratification of Appointments: Youth Commission, Brandon Tuck; Resource Conservation Commission, Teresa Thomas; Child Care Commission, Michelle Castognola; and International Friendship Commission, Daniel Wood. b. Authorization to hire legal counsel. c. Public employee performance and conduct, consideration of discipline or discharge _ City Attorney. 28. COUNCIL COMMENTS Councilmember Rindone: RESOLUTION 18294 TAKING A POSITION TO SUPPORT SCA 26 NOT ADDRESSED IN THE LEGISLATIVE PROGRAM _ continued from 5/14/96. Councilmember Padilla: 8. Concern regarding retention of legal services incurring legal costs by Mayor without Council consent. b. Concern regarding discussions by Mayor with City Attorney regarding his separation from employment and related issues without Council authority; possible violations of City Charter. ADJOURNMENT The meeting will adjourn to (a closed session and thence to) the regular City Council Meeting on May 28, 1996 at 5:30 p.m. in the City Council Chambers. A meeting of the Redevelopment Agency will be held immediately following the City Council meeting. ***** Agenda -8- May 21, 1996 CLOSED SESSION Unless the City Attorney, the City Manager or the City Council states otherwise at this time, the Council will discuss and deliberate on the following items of business which are pennitted by law to be the subject 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 tenninated at this point in order to save costs so that the Council's return from closed session, reports of final action taken, and a4joumment will not be videotaped. Nevertheless, the report of final action taken will be recorded in the minutes which will be available in the City Clerk's Office. 29. CONFERENCE WITH LEGAL COUNSEL REGARDING: 1. Existing litigation pursuant to Government Code Section 54956.9 2. Anticipated litigation pursuant to Government Code Section 54956.9 · Tiger Development Two/Baldwin - motion for relief from stay. · Significant exposure to litigation pursuant to subdivision (b) of Section 54956.9: 1. CONFERENCE WITH REAL PROPERTY NEGOTIATOR - Give Instructions to Negotiators pursuant to Government Code Section 54956.8 · Proposed sale of property: 2.71 acre portion of Marina View Park, located at south side of J Street, west of Bay Boulevard, Chula Vista, CA 91910. Negotiating Party: John D. Goss/Chris Salomone on behalf of the City of Chula Vista Redevelopment Agency and Larry Killeen, Executive Director, San Diego Unified Port District. Under Negotiation: Price and Terms. CONFERENCE WITH LABOR NEGOTIATOR - Pursuant to Government Code Section 54957.6 · Agency negotiator: John Goss or designee for CVEA, WCE, POA, IAFF, Executive Management, Mid-Management, and Unrepresented. Employee organization: Chula Vista Employees Association (CVEA) and Western Council of Engineers (WCE), Police Officers Association (POA) and International Association of Fire Fighters (IAFF). Umepresented employee: Executive Management, Mid-Management, and Unrepresented. 30. REPORT OF ACTIONS TAKEN IN CLOSED SESSION RESOLUTION 18307 APPROPRIATING ADDITIONAL FUNDS FOR PERSPECTIVE LITIGATION May 16, 1996 TO: The Honorable Mayor and ci council FROM: John D. Goss, City Manage 21, 1996 SUBJECT: City Council Meeting of This will transmit the agenda and related materials for the regular City Council meeting of Tuesday, May 21, 1996. Comments regarding the written Communications are as follows: 5a. This is a letter from the City Attorney stating that there were no observed reportable actions taken by the city Council in Closed Session on May 14, 1996. IT IS RECOMMENDED THAT THIS LETTER BE RECEIVED AND FILED. 5b. IT IS RECOMMENDED THAT DOROTHEA GRINDLE'S RESIGNATION FROM THE COMMISSION ON AGING BE ACCEPTED WITH REGRET AND THE CITY CLERK BE DIRECTED TO POST IMMEDIATELY ACCORDING TO THE MADDY ACT IN THE CLERK'S OFFICE AND THE PUBLIC LIBRARY. 5c. This is a letter from Mr. victor Saba regarding lighting at Norman Park Senior Center. As a result of the previous request, staff has taken measurements of the lighting and changed an existing 150W Mercury Vapor light to a lOOW High Pressure Sodium Light, which produces more light intensity. Staff believed that this additional light corrected the problem. However, based on the current request, STAFF RECOMMENDS IT BE REFERRED BACK TO STAFF FOR A FURTHER REPORT. JDG:mab ~~/t-- ~ ~~~~ - ~-:...~ CllY OF CHUIA VISTA OFFICE OF THE CITY ATTORNEY Date: May 16, 1996 The Honorable Mayor and City coun7~ Bruce M. Boogaard, City Attorney,~ Report Regarding Actions Taken i~ Closed Session for the Meeting of 5/14/96 To: From: Re: The City Council met in Closed Session to discuss the Tiger Development Two/Baldwin - motion for relief from stay. The City Attorney hereby reports to the best of my knowledge from observance of actions taken in the Closed Session in which the City Attorney participated, that there were no actions taken in the Closed Session of 5/14/96 which are required under the Brown Act to be reported. BMB:lgk C:\1t\clo88ed.no C;~-I 276 FOURTH AVENUE. CHULA VISTA. CALIFORNIA 91910 . (619) 691-5037 . FAX (619) 585-5612 'l'h'I'osI~f\r:rdBdP<P!' RECEIVED To: Joyce Beardsley and The Commission on Aging '96 IlAY -9 P 1 :49 From: Dotty Grindle Date; April 17, 1996 .y tV eHl. UL. A VIS r.i ~ ClIMI<'S eFFICt Subject: Resignation from Commission on Aging Dear Joyce and Commission Members, It is with sadness, that I submit my resignation to the Commission. Because of ill health, I am unable to continue this important work. I realize that my absence has placed a heavy burden on Joyce and everyone else. So, I need to be replaced so that you have a full board to work with. It has been a privledge to have worked with you and I was proud to be one of you. Thank you for your friendship and love, your cards and prayers. I shall think of you as you continue to help seniors to help themselves. I wish to go on record as saying that my HMO, which is Kaiser, is very good. And also, Meals-on-Wheels are very good. Regretfully, rs~~ Dotty Grindle Cc- . WRItTEN C'OM.f~\UN6CA<rgONS ~~(~) ry.y1,; 0~ ~f?a-.A- Tj ~ Sb/ rDJ f\ (,0> "I jl, !l'l U, ' I r ", I IlJU' , L I , I r' ~ w' " R \~ ,,!': I: n : i , , co , I,' I'!: II I I J I; -11gqii !u; I I :, "'I' I ,..,1 ,':. I, ell UtAK MAIUK SHIRLEY HORTON AND COUNCIL, LET ME EXPLAIN THE PROBLEM WE ARE FACING AT NORMAN CENTER ON F STREET HERE IN CHULA VISTA, I VICTOR SABA PRESIDENT OF O.T.R.A. OXFORD TERRACE RESIDENT ASSOCIATION,ALSO I AM VICE PRES. OF SANDCAT,SAN DIEGO COUNTY ALLIANCE OF TENANTS,ALSO I AM A MEMBER OF S.W.A.T. STATE WIDE ALLIANCE OF TENANTS. NOW THAT I HAVE SAID WHO I AM I AM ASKING THE MAYOR AND COUNCILTO TAKE CARE OF A PROBLEM WE NEED TO ADDRESS AT THIS TIME. I PLAY BRIDGE ON MONDAY NIGHTS AND ON WEDNESDAY NIGHTS AND ON FRIDAY NIGHTS. WE NEED TWO DUSK TO DAWN LIGHTS INSTALLED ON ROOF AT HORSE SHOE PITS SO IT WILL GIVE US PLENTY 551 OXFORD STREET #1 CHULA VISTA, CA. 91911 OF LIGHT AT NIGHT WHEN WE GO TO Q~~ CARS Tn ~O HnME, WE HAVE HAD LOTS OF CARS BROKEN INTO WHILE WE ARE THERE PLAYING BRIDGE. I THINK THAT THE CITY OF CHULA VISTA SHOULD GIVE US SENIORS SOME PROTECTION ON US AND OUR CARS WHILE THERE AT NORMAN CENTER.YOU MAY CALL ME ANY TIME OR I CAN MEET SOME ONE THERE AT THE CENTER TO TALK ON THIS ISSUE.MY PHONE NUMBER IS (619) 476-0104. IF I AM NOT HOME LEAVE MESSAGE ON MY ANSWERING MACHINE AND I WILL GET BACK TO YOU THANKS. SINCERELY YOURS. '~ -L ',,/1..,..-, ~ .,' , --'-J . / / t/ t:rL~-,:L 1 ~ // '~VICTOR SABA .., - ....... r::o ~-~ v,- 0 1""1 _LL. IIJ 0.. >~ > 04: - r- ii L&J I (.) i L&J ~iIi 8: Ii ~ WRITTEN COMMUNICA"f"~ONS ~ -;A/7~ LC: 4-'l~(Lj) d d/iS ?2':fUvf~ ~ / COUNCIL AGENDA STATEMENT Ite~ (0 ,.)~:. " Meeting Date: Mav 14. 1996 ITEM TITLE: J' .-' .' ,-' Public Hearing: PCA 96-02: Planned Community (PC) Zone. Consideration of an amendment to the " ~~ Public Hearing: PCA 96-03: Consideration of an amendment to the City of Chula Vista Municipal Code to create the Public/Quasi-Public (PQ) Zone ,....\(~, t". , ,- <';" . Public Hearing PCZ 96-A: Application of said modified Planned Co~~' (PC) Zone by prezoning certain parcels of land within ~g Areas One and Three of the Chula Vista 1995 Sphere of ~D lrrlIuence Update, prezoning the Otay Water District parcel to i'.. Public/Quasi-Public (PQ) and prezoning the Nelson/Sloan rock quarry property to Agriculture -8). REVIEWED BY: Jerry Jarnriska Special Planning Proje s City Manager 0- f~'" ,,-/'SUBMITTED BY: f' (4/5ths Vote: Yes_No Xl Three related applications have been initiated by the City ofChula Vista as a result of non-Baldwin owned parcels being annexed into the City. These applications are being processed in conjunction with Otay Ranch SPA One review The first application (PCA 96-02) involves an amendment to the Planned Community (PC) Zone, Section 19.48 of the Chula Vista Municipal Code The second application (PCA 96-03) proposes an amendment to the Chula Vista Municipal Code to create the Public/Quasi-Public (PQ) Zone. The third application (PCZ 96-A) involves applying this modified PC Zone and the newly created PQ Zone to miscellaneous publicly and non-Baldwin owned parcels described below and prezoning the existing Nelson/Sloan Rock Quarry to A-8. RECOMMENDATION: It is recommended that the City Council conduct a public hearing on the proposed PC Zone amendment (PCA 96-02), the proposed creation of the Public/Quasi-Public Zone (PCA 96-03) and the prezoning of certain parcels of land within Planning Areas One and Three of the Chula Vista 1995 Sphere of Influence Update Study (pCZ 96-A); and adopt the attached Ordinances. BOARDS/COMMISSIONS RECOMMENDATION: The Planning Commission reviewed these items at the April 10, 1996 public hearing and took final action on them at the April 24, 1996 hearing. The Planning Commission chose to follow staff recommendation and approved all three items unanimously. Due to their concern regarding property owners within the southwest comer, however, they also recommended that the City Council initiate, at the City's expense, a General Plan Amendment, Zone Change and ~ Page 2, Item: _ Meeting Date: Mav 14. 1996 Environmental Review for parcels of land within the southwest corner. (See Discussion under Section III of this report). DISCUSSION: 1. Amendment to Planned Community Zone (PCA 96-02) A. Backl!round/ProDosal: The primary purpose of the Planned Community (PC) Zone (Section 19.48 of the Chula Vista Municipal Code) is to provide for orderly planning and long-tenn development of large tracts of land in order to provide an environment of stable and desirable character, to provide the developer with reasonable assurances that sectional development plans will be acceptable to the City and to enable the City to adopt measures which provide for the development of the surrounding areas compatible with the Planned Community Zone Implementation of the PC Zone is currently restricted to parcels of land under unified ownership and of 50 acres or more and requires the concurrent submittal of a General Development Plan (GDP) The current amendment (see Exhibit A) would allow parcels, which are contiguous to existing GDPs and under or over 50 acres in size, to be zoned PC without the concurrent adoption of a GDP. Several parcels not owned by Village Development, but surrounded by the Otay Ranch, are less than 50 acres in size, with one parcel larger, and are not a part of the Otay Ranch Project. The proposed modification to the PC Zone would enable the City to pre-zone these less than 50-acre parcels in connection with the annexation of the Otay Valley Parcel. Additionally, the PC Zone amendment allows an underlying zone consistent with the general plan designation for those parcels which do not have, or wish to pursue, an approved GDP. The underlying land use zone would be determined at the time of prezoning. In order to develop their properties, the affected property owners of the noted parcels would have three options: I.) the owner could amend the adjacent GDP and annex to it in order to be part of the comprehensive Otay Ranch planning effort, 2.) the O\\l1er could seek an underlying land use consistent with the City's General Plan designation for the site, or 3.) the owner could make an application to the City for a General Plan Amendment to change the PC zone to some other designation. B. Analvsis: The proposed amendment to the PC Zone would apply not only to the non-Otay Ranch parcels as noted specifically below, but would also apply City-wide since the amendment is to the City's Municipal Code. The amendment does not undermine the intent of the PC Zone District and will most likely be applied on a limited basis in very specific circumstances. In order for these noted exceptions to apply, a parcel must not only be under 50 acres in size, but also must be surrounded by, or contiguous to, an existing adopted General Development Plan. The amendment would allow parcels to annex into an existing GDP and be part of a comprehensive planning effort, which would further the goals of the Planned Community Zone District. CCRPTSI4.DOC 518/96 i~~-.Y Page 3, Item: _ Meeting Date Mav 14. 1996 C. Issues: No major issues have been identified with the proposed zoning text amendments. Zoning text amendments have been addressed in the EIR for SPA One and Annexation (EIR 95- 01) and the EIR for the Sphere of Influence Update (EIR 94-03) D. Conclusion: The Planning Commission recommends that the City Council adopt the attached draft Ordinance modifying the Planned Community Zone. 2. Creation ofthe Public/Quasi-Public Zone (PCA 96-03) A. Backlzround/ProDoSal: The Public/Quasi-Public (PQ) Zone is being created (see Exhibit B) in order to be applied as a prezoning to certain non-Otay Ranch parcels ofland, such as the Otay Water District and San Diego Reservoir parcels. The PQ Zone may also be applied in the future, as needed, for other public agencies land uses within the City. The PQ Zone will also address issues related to the landfill expansion should it be annexed to the City in the future. However, at this time, an agreement between the City and the County has been reached regarding the operating procedures for the landfill, and it will remain as a Special Study Area within the County. The proposed landfill agreement establishes specific regulations and guidelines addressing operations and the eventual closure of the facility The proposed PQ Zone also includes provisions for closure of the landfill in accordance with all applicable Federal, State and local regulations, including regulations of the State Water Resources Control Board, the California Waste Management Board and the Department of Health Services in the event the landfill were annexed to the City prior to closure. It should be noted that the proposed PQ Zone also includes water reservoirs and parks as a permitted use. As noted below, the PQ Zone will be applied to non-Otay Ranch parcels of land (e.g., the City of San Diego water reservoir parcel and Otay Water District parcel) in advance of annexation. B. Analvsis: The purpose of the PQ Zone is to provide for a limited number of unique land uses in appropriate locations which are maintained by public or publicly controlled agencies such as municipal and/or County agencies, school districts or utility companies (e.g., water, gas, electricity, etc.) including, but not limited to, the City of San Diego water reservoir and Otay Water District parcels as noted above. C. Issues: No major issues have been identified with the proposed creation of the PQ Zone. The creation of the PQ Zone has been addressed in the EIR for SPA One and Annexation (EIR 95-0 I) and the EIR for the Sphere of Influence Update (EIR 94-03). CCRPTS14.DOC 5/8/96 ~ (C.-3 Page 4, Item: _ Meeting Date Mav 14. 1996 D. Conclusion: The Planning Commission recommends that the City Council adopt the attached draft Ordinance creating the PQ Zone. 3. Prezoning of Specific Parcels (peZ 96-A) A. Backl!round/Proposal: The parcels noted in Section B below and illustrated in Exhibits C through I were initially addressed in the Sphere of Influence Update Study, which was approved by the City Council on March 21, 1995. The Sphere of Influence Update was partially approved by LAFCO on February 5, 1996 and is anticipated to be Acted upon by LAFCO on May 6, 1996. Additionally, the City Council has approved a resolution to petition LAFCO for the annexation of the Otay Ranch Annexation No. I, which includes the Otay Valley Parcel, the Ranch House, the Inverted "L" property of the Otay Ranch and the Watson McCoy property. The City Council also directed staff to submit an Annexation Application for Planning Areas One and Three of the Sphere Study and the Otay Ranch House property. The Annexation Application has been submitted to LAFCO. The Environmental Impact Report, which addresses the annexation issues regarding the properties noted below, is being reviewed concurrently with this application. While the applicant is primarily interested in annexing only SPA One, City staff believes additional territory is necessary for proper planning and future extension of City services to serve the entire Otay Valley Parcel. The parcels noted below were included in the annexation and, therefore, are required by State law to be prezoned. The Otay Valley Planning Area is the largest of the Otay Ranch planning areas encompassing approximately 9,000 acres. There are several parcels that are not part of the Otay Ranch included within this Planning Area that are specifically defined below. Generally, they include parcels of between 9 to 250 acres and include the Nelson/Sloan rock quarry, the Otay Water District, the existing City of San Diego reservoir sites and several other privately owned properties. Planning Area Three is approximately 457 acres in size. Parcels which are not a part of the Otay Ranch include the Watson property and the smaller Clarkson property B. Parcellnforrnation: The following is a list of parcels to be prezoned along with their proposed prezone designation, the City General Plan designation and the current County General Plan designation. CCRPTSI4.DOC 518196 -1'IfF1r b~1f Page 5, Item: Meeting Date: Mav 14. 1996 CITY COUNTY PARCEL PRE- GENERAL GENERAL INFORMA nON APN ACRES ZONE PLAN PLAN San Diego Water 644-070-04 19.59 PQ P/QP Intensive Reservoir Parcel AlUiculture Clarkson 595-050-05, 7.5 PC Low Res Multiple Rural 06 0-3 dulac Residential Dauz, AKA deGraaf, 641-030-09 7.82 PC Open Space Residential-6 Barnabas Fdn. EastLake Land Swap 643-020-40 106.31 PC Low-Med, Intensive & 41; 45-47 Med-High, Agriculture Comm & aDen Soace Gerhardt 641-060-02, 11.84 PC L-M Res Residential-6 03 0-6 du/ac) Intensive Ag Groman 641-030-10 1.82 PC aDen SDace Residential -6 Otay Water District 643-020- 56.77 PQ P/QP Intensive 08,13,25,26 Agriculture &27 Nelson/Sloan 644-060-06 136.47 A-8 Open Space Multiple Rural Rock Quarrv Use Ross 641-030-03 9.9 PC L-M Res. Residential 6 3-6 dulac Southwest Comer 59.54 PC Open Space Impact Sensitive (54.4) Industrial (5 ac) Bums 645-030-10, 14.94 PC Open Space Impact Sensitive 11,12 Hofer 645-030-07, 14.62 PC Open Space Impact Sensitive 08,09 Kelstrom 645-030-04 5 PC Open Space Impact Sensitive Ostling 645-030-03, 9.98 PC Open Space Impact Sensitive 13 Rabello 645-030-06 5 PC aDen Soace Imoact Sensitive Rowland 645-030-14 5 PC aDen Soace Industrial Selman 645-030-05 5 PC aDen Snace ImDact Sensitive Watson 585-150-02 160 PC Low Res (0- Multiple Rural 3 dulac) Use CCRPTSI4.00C 5/8/96 II//! ~ - ,-- r~ 0/:) Page 6, Item: _ Meeting Date: Mav 14. 1996 C Analvsis: All out-parcel property owners were contacted by mail during the processing of SPA One. The owners were given the opportunity to meet with staff regarding the development potential on their individual parcels which would exist after annexation into the City While many of the property owners did not respond, some contacted staff by phone with questions, and several came in to meet with Planning Department and Otay Ranch Project staff. Concerns voiced by the property owners dealt with the perception that their property would have less development rights if annexed into the City than if it were to remain in the County unincorporated area. Additional meetings were also held with the various property owners in the Southwest Comer area and rock quarry, since these parcels have unique issues associated with them. Those owners who were not able to attend the meetings contacted staff by telephone. D. Issues: A detailed discussion of the parcels to be annexed follows. The prezonings have been addressed in the EIR for SPA One and Annexation (EIR 95-0 I) and the EIR for the Sphere of Influence Update (EIR 94-03). Parcels surrounded bv the Otav Ranch Proiect on three sides and located west of Paseo Ranchero APN: 641-030-09, Dauz, (AKA Barnabas Foundation). (See Exhibit C) Staff was contacted by Mr. David Van der Ploeg who expressed concern that the property would receive greater development potential within the County than in the City. The Barnabas Foundation is not inherently opposed to the prezoning or annexation but would prefer that their property be purchased by the SPA One project applicant. If developed within the County of San Diego under the Residential-6 designation, the owner would potentially be able to develop their 7.82-acre parcel with 46 dwelling units. Under the City's current General Plan designation of Open Space, the parcel would have the development potential, or density transfer potential, of one lot per 10 acres or one dwelling unit. It should be noted, however, that the enactment of the County Resource Protection Ordinance in 1986 could severely restrict the development potential of the property if it were to be developed within the County's jurisdiction due to slopes and habitat. The impact of this ordinance on the development potential of this property would have to be further evaluated to determine current development potential in the County. As indicated in the chart above, the proposed prezoning of this parcel would be to Pc. As previously. indicated in Section 1 of this report, the owner would have three options under the PC scenario. It is staffs preference that the parcel be folded into the overall planning effort for the Otay Ranch. Policies are also contained in SPA One that encourage the comprehensive planning of the area west of Pasco Ranchero. APN: 641-030-10, Groman. (See Exhibit C) Ms. Groman contacted staff by telephone who expressed the same concerns that were voiced by Mr. Van der Ploeg. If developed within the County of San Diego under the Residential-6 designation, the owner would potentially be able to develop her 1.82-acre parcel with 10 dwelling units. Under the City's current General Plan designation of Open Space, the parcel would have the development potential, or density transfer potential, of one lot per 10 acres or one dwelling CCRPTS14.DOC 5/8/96 ~l!.~ &"t Page 7, Item: _ Meeting Date: Mav 14. 1996 unit. Since this parcel is contiguous to the Dauz (Barnabas Foundation) parcel discussed above, the same constraints are placed on the property by the County's Resource Protection Ordinance. As indicated above, the proposed prezoning of this parcel would be to PC, and the owner would have the thtee options stated earlier in the staff report. City staff would, again, prefer that the parcel be folded into the overall planning effort for the Otay Ranch since the SPA One contains policies that encourage the comprehensive planning of the area west of Pas eo Ranchero. APN: 641-030-03, Ross. (See Exhibit C) Staff met with Mr. and Mrs. Ross who were interested in the process but had no real concerns with being annexed into the City or the land use designation they were assigned. If developed in the County under the R-6 designation, the owner would have the potential of developing 59 units If developed in the City under the underlying L-M Residential standards, the owner would have the development potential of 44 units at the mid-point of the density range. It should be noted, however, that the future trolley alignment is proposed to bisect the Ross property which would limit the developability of their parcel Again, staff would prefer that the area west of Paseo Ranchero be developed as a unit per the policies indicated in SPA One. APN: 641-060-02 & 03, Gerhardt (See Exhibit C) Staff spoke with Mr. Gerhardt by telephone. He was satisfied with the annexation proposal The property is surrounded on three sides by Village One. If developed in the County under the R6 designation, the owner would have the potential of developing up to 44 units If developed in the City under the underlying L-M Residential standards, the owner would have the development potential of 52 dwelling units at the mid-point of the density range. As indicated above, this property is proposed to be zoned Pc. Parcels Surrounded bv the Inverted "L" Parcel APN: 595-050-05 & 06, Clarkson. (See Exhibit D) Staff was contacted by Mr. Clarkson who indicated that he was satisfied that his property was being annexed into the City and voiced his support of the annexation effort. If developed within the County of San Diego under the Multiple Rural Use designation, the owner would have the development potential of one dwelling unit per 8 acres. Under the City's current General Plan designation of Low Density Residential (0-3 du/ac), the 7.5-acre parcel would have the development or density transfer potential of 7.5 single-family units. As indicated above, the proposed prezoning of this parcel would be to PC. APN: 585-150-02, Watson. (See Exhibit D) Staff met with Tim Wilson of the Watson Land Company. He voiced his support of the annexation effort and was in favor of his 160-acre parcel being annexed into the City. If developed within the County of San Diego under the Multiple Rural Use designation, the applicant would have the development potential of one dwelling unit per 8 acres, or 20 single-family units. Under the City's current General Plan designation of Low Density Residential (0-3 du/ac), the l60-acre parcel would have the development or density transfer potential of 224-single family units, based on the mid-point of the density range. CCRPT5I 4.DOC 5/8/96 ~ 0"} Page 8, Item: _ Meeting Date: Mav 14. 1996 Planning Area One APN: 643-020-40,41 & 45-47, EastLake Land Swap. (See Exhibit E) Staff has met with representatives of the EastLake Company, and they are supportive of the annexation and prezoning. If developed within the County of San Diego under the Intensive Agriculture designation, the owner would have the development potential of 40 dwelling units. The Chula Vista General Plan designates 19 acres of Low-Medium Residential with a mid-point of 85 dwelling units, 45 acres of Medium-High Residential with a mid-point of 653 dwelling units, 52 acres of commercial, II acres of open space and 17 acres of circulation. Approximately 55 acres of this land has already been annexed into the City as part of the EastLake Greens Expansion. APN: 645-030-3-14, Southwest Corner. (See Exhibit F) Staffhas met with three of the property owners (Bums, Rabello and Hofer) on many occasions. All are concerned that their property would be potentially downzoned upon annexation to the City of Chula Vista. Currently, County zoning on all of these parcels is A-70 (Limited Agriculture), which would allow them to build one single-family house on a minimum 4-acre parcel as well as limited agricultural uses such as growing of container plants. While the area is proposed to be prezoned PC, the underlying permined land use would be Agriculture in order to be consistent with the City's General Plan designation of Open Space The Open Space designation within the City allows one residential unit per every 10 acres. City policies, upon annexation, would allow one dwelling unit per legal lot of record. Therefore, in actuality, similar development potential could be realized either within the City or the County . In a site visit to the southwest comer, staff observed that all of the parcels are currently vacant except for parcels 645-030-07, 08 and 09 owned by Mr. Hofer. Parcels 645-030- 10, II and 12, owned by Mr. Bums, have been rough graded and are otherwise vacant. Staff noted an active trucking business, trailer office building and a metal building being used for truck storage and repair on Mr Hofer's parcels. We have not been able to verify with the County whether or not this use has a valid permit. A gradiI1g permit, however, was issued in 1989 for a controlled fill of 207,000 cubic yards on Mr. Burns' property We have not been able to verify from the County whether or not this permit is still valid. In the event that both owners have valid permits, they would be annexed into the City as legal non-conforming uses. In the event that the uses/activities are not legal, the owner would have to pursue a General Plan Amendment, Zone Change and Environmental Review in order to legalize them. Both owners testified before the Planning Commission on April 10 and April 24 that it is their desire to pursue industrial uses on their property. Since the land to the south, within the City of San Diego, is industrial in character, there appears to be some justification for this type of use. The Planning Commission indicated a willingness to assist these owners by recommending that the City initiate a General Plan Amendment, Zone Change and the related environmental review for the southwest comer as a General Fund cost. The most southerly Parcel 14 is vacant but is dissimilar to the other parcels in the southwest comer in that currently County zoning is M-52 (Limited Industrial). This zone designation allows for a wide variety of industrial and commercial uses. In order to be CCRPT514 DOC 5/8/96 ~ 0-J; Page 9, Item: Meeting Date: Mav 14. 1996 consistent with the City's General Plan, the area would still have to receive the underlying zone designation of Open Space. The property owner would have to pursue a General Plan Amendment and zone change in order to allow industrial use. The owner of this property, Mr. Rowland, also owns approximately 20 acres of contiguous land within the City of San Diego where he operates a storage yard. This property is zoned industrial and Mr. Rowland has indicated he would like to maintain the industrial zoning on his parcel if it were annexed into the City. APN: 646-060-06, Nelson/Sloan Rock Quarry. (See Exhibit G) The rock quarry has been operating since the mid-1950's within the County of San Diego and is considered by the County to be a "vested" legal non-conforming use. The quarry operator, Nelson and Sloan, made application to the County for an asphalt batch plant in the late 1980's. This application was never completed by the applicant or acted on by the County Should the applicant wish to consider a similar intensification to the existing operation once annexed into the City, an application for a Conditional Use Pennit would have to be submitted to the City Staff has met with the quarry operator and the owners representative and they have expressed concern with the term "non-conforming" and would like to be considered s a legal use. Staff indicated to them, they could become "conforming" by applying for a Conditional Use Pennit since unclassified uses, which rock quarries are considered, would be pennitted with a CUP in the A-8 Zone It is the intent to pre-zone the quarry to A-8 and allow it to continue operation as a legal non-conforming use until such time as the applicant applies for a Conditional Use Pennit. Additionally, there are requirements of the State Division of Mines and Geology which will have to be complied with once the quarry is annexed into the City. The Surface Mining and Reclamation Act (SMARA) requires that a Reclamation Plan be approved by the lead agency and kept on file with their state office. Additionally, a yearly inspection of the quarry to ensure compliance with the Reclamation Plan is required by the state and is the responsibility of the lead agency. An approved Reclamation Plan is currently on file with the State, but the last County inspection of the quarry occurred in January 1994. The operator of the quarry is also obligated to file an annual reporting form with the State and to provide financial assurances that the quarry is operating in compliance with the reclamation plan. The applicant currently has a bond in the amount of $136,950 on file with the State which would payable to the State and the lead agency should Nelson Sloan fail to comply with the approved Reclamation Plan. Once the quarry is annexed, steps will have to be taken to update the name of the lead agency as the City of Chula Vista. The Mining Board has also indicated that once the quarry is annexed into the City and we become the lead agency, the City of Chula Vista must adopt a mining ordinance, which is required to be approved by the State as well as the City Council. APN: 644-070-04, San Diego Water Reservoir Parcel. (See Exhibit H) The site is currently operating as a reservoir. The proposed pre-zoning is to Public/Quasi-Public which would allow the site to continue operation in its current form. The site is surrounded on three sides by Village Five, is currently operating as a reservoir and is planned for reservoir expansion. CCRPTSI4.DOC 5/8/96 ~ r; ,-1 Page 10, Item: _ Meeting Date Mav 14. 1996 APN: 643-020-08,13,25,26 & 27, Otay Water District Parcels (See Exhibit I) The above parcels are proposed to be prezoned PQ, which would allow them to function as a water reservoir site. E. Conclusion: The Planning Commission recommends that the City Council adopt the attached Ordinance (PCZ 96-A) recommending approval of the proposed prezones, with the stipulation that the City initiate a General Plan Amendment for the southwest corner. FISCAL IMPACT: None: The project applicant is responsible for all processing costs. Most of the other non-Otay Ranch property owners have paid their fair share contribution towards annexation and prezoning. If the Planning Commission recommendation is followed on the Southwest corner for City initiated General Plan Amendments and zone changes, the cost to the general fund would be Environmental Review for General Plan Amendment ranging from $1,000 to $5,000; General Plan Amendment ranging from $2,000 to $4,000 and a Zone Change would amount to $2,000. Attacbments Exhibit A. Exhibit B Exhibit C: Exhibit D: Exhibit E Exhibit F. Exhibit G: Exhibit H: Exhibit I Exhibit J: Proposed amendment to PC Zone Proposed PQ Zone Dauz, Groman, Ross, Gerhardt parcels Watson, Clarkson parcels EastLake land swap parcels Southwest corner parcels Nelson Sloan Rock Quarry parcels San Diego Water Reservoir parcel Otay Water District parcel Annexation Map Ordinance approving PCA 96-02/PCZ 96-A Ordinance approving PCA 96-03 CCRPTSI4.DOC 5/8/96 ~ . , t -:ID """ ,,,;;/ ORDINANCE NO..Q' ., 3 ~s. AN oRbINANCE OF THE CITY COUNCIL OF THE CITY OF C~LA VISTA TO ADOPT AN AMENDMENT TO CHAPTER J.!f48 OF THE MUNICIPAL CODE RELATING TO THE .,~-PLANNED COMMUNITY (PC) ZONE (pCA 96-02); APPROVE ;Y THE PREZONING OF APPROXIMATELY 600.09 ACRES TO '\ {' THE PC ZONE, PUBLIC/QUASI-PUBLIC (PQ) ZONE ~ ,;..' THP ^ GID:"TTT TTT~ AT (A) 7()J>JP V~ D" A) ,.j"" 11 WHEREAS, applications for an amendment to the Planned Community (PC) Zone and for prezoning 600.09 acres of presently unincorporated land were filed with the City of Chula Vista Planning Department on October 10, 1995 by the City of Chula Vista ("Applicant"), and; WHEREAS, the Municipal Code does not presently allow for the application of the PC Zone on parcels less than 50 acres in size, and; WHEREAS, the annexation of Planning Areas 1 and 3 and the Ranch House (Exhibit n) will create a need for the application of the PC Zone on parcels of less than 50 acres ("Project"), and; WHEREAS, the wording of said amendment to Chapter 19.48 is attached as Exhibit I to this ordinance, and; WHEREAS, LAFCO policy requires that prior to a city annexing property, said property must be prezoned. Thus, the proposed prezoning has been requested in order to bring those certain parcels of Otay Ranch Planning Areas 1 and 3 and the Ranch House, which are to be annexed to the City, into conformance with LAFCO policy ("Project"), and; WHEREAS, those parcels to be prezoned PC are identified by their Assessor Parcel Numbers as: 585-150-02,595-050-05,595-050-06, 595-070-26, 641-030-03, 641-030-09,641- 030-10,641-060-02,641-060-03,643-020-40,643-020-41, 643-020-45, 643-020-46,643-020- 47, 645-030-03, 645-030-04, 645-030-05, 645-030-06, 645-030-07, 645-030-08, 645-030-09, 645-030-10,645-030-11,645-030-12, 645-030-1):mtI645-030-14\ as shown on Exhibit n, and; ...... Q tI<! f, '1'1- 0 f.() -~ (p WHEREAS, those parcels to be prezoned PQ are identified by their Assessor Parcel Numbers as: 643-020-08, 643-020-13, 643-020-25, 643-020-26, 643-020-27 and 644-070-04, as shown on Exhibit II, and; "'II~n1? A ~, th':1t F;;W;~wl tg 119 jU8i!8R88 A is i8el.tift~ by A~~C;;);)Ul PcU\,;d I~tlmhpr h.d4_ ...Q68 86, 4;) ;)IIUWU vII ~AII1[)h iI, Q..IId, WHEREAS, the Planning Commission set the time and place for hearings on said Project and notice of said hearings, together with its purpose, was given by its publication in a newspaper of general circulation in the City and its mailing to property owners and tenants within 1,000 feet of the exterior boundaries of the property at least 10 days prior to the hearing, Ordinance No. Page 2 and; WHEREAS, the hearings were held at the time and place as advertised on November 8, 1995 and November 15, 1995 in the Council Chambers, 276 Fourth Avenue, before the Planning Commission. Said hearings were continued to March 27, 1996, April 10, 1996 and April 24, 1996 by a motion of the Planning Commission at which time, said hearings were thereafter closed, and; WHEREAS, the Environmental Review Coordinator has conducted a Second-tier Draft Environmental Impact Report (EIR) EIR 95-01, a Recirculated Second-tier Draft EIR and Addendum, and Findings of Fact and a Mitigation Monitoring and Reporting Program have been issued to address environmental impacts associated with the implementation of the Project, and; WHEREAS, the Second-tier EIR, the Recirculated EIR and Addendum incorporates, by reference, two prior EIRs: the Otay Ranch General Development Plan/Subregional Plan (GDP/SRP) EIR 90-01 and the Chula Vista Sphere of Influence Update EIR 94-03 as well as their associated Findings of Fact and Mitigation Monitoring and Reporting Program. Program EIR 90-01 was certified by the Chula Vista City Council and San Diego County Board of Supervisors on October 28, 1993, and the Sphere of Influence Update EIR 94-03 was certified by the Chula Vista City Council on March 21, 1995, and; WHEREAS, to the extent that these findings conclude that proposed mitigation measures outlined in the Final EIR and Addendum are feasible and have not been modified, superseded or withdrawn, the City of Chula Vista hereby binds itself and the Applicant and its successors in interest, to implement those measures. These findings are not merely informational or advisory, but constitute a binding set of obligations that will come into effect when the City adopts the ordinance approving the Project. The adopted mitigation measures are express conditions of approval. Other requirements are referenced in the Mitigation Monitoring and Reporting Program adopted concurrently with these Findings and will be effectuated through the process of implementing the Project. NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL of the City of Chula Vista does hereby find, determine, resolve and order as follows: 1. PLANNING COMMISSION RECORD The proceedings and all evidence introduced before the Planning Commission at their public hearing on the Draft EIR, the Recirculated EIR and Addendum held on November C:\PCA]CZ.DOC ~-~ Ordinance No. Page 3 8, 1995, November 15, 1995, March 27, 1996 and March 28, 1996, their public hearings held on this Project on November 15, 1995, March 27, 1996, April 10, 1996 and April 24, 1996 and the minutes and resolutions resulting therefrom, are hereby incorporated into the record of this proceeding. In accordance with Public Resources Code Section 21167.6, these documents, along with any documents submitted to the decision makers, shall comprise the entire record of the proceedings for any claims under the California Environmental Quality Act (CEQA). II. ACTION The City Council hereby approves the ordinance to amend the Planned Community Zone finding that it is consistent with the City of Chula Vista General Plan and that the public necessity, convenience, general welfare and good zoning practice supports the amendment to the PC Zone, attached as Exhibit 1. The City Council hereby approves the prezoning of 600.09 acres to the PC Zone, PQ Zone and the A Zone as more full identified in Section III herein, and identified by their Assessor Parcel Numbers as: 585-150-02, 595-050-05, 595-050-06, 595-070-26, 641- 030-03,641-030-09,641-030-10,641-060-02,641-060-03, 643-020-40, 643-020-41,643- 020-45,643-020-46,643-020-47,645-030-03,645-030-04,645-030-05,645-030-06,645- 030-07,645-030-08,645-030-09,645-030-10,645-030-11,645-030-12,645-030-13,645- 030-14,643-020-08,643-020-13,643-020-25, 643-020-26, 643-020-27, 644-070-04 and 644-060-06 finding that the public necessity, convenience, general welfare and good zoning practice supports the prezoning of said parcels, attached as Exhibit II. III. PREZONING That the property with Assessor Parcel Numbers 595-050-05 and 595-050-06, consisting of approximately 7.5 acres, generally located 2,300 feet west of Proctor Valley Road and 3,800 feet north of Proctor Valley Road, as diagrammatically presented on the area map attached hereto as Exhibit II, be prezoned Planned Community. That the property with Assessor Parcel Numbers 643-020-40, 643-020-41, 643-020-45, 643-020-46, 643-020-47 and 595-070-26, consisting of approximately 128.84 acres, generally located on the east side of the proposed SR 125 alignment, approximately 4,500 feet south of Telegraph Canyon Road, as diagrammatically presented on the area map attached hereto as Exhibit II, be prezoned Planned Community. C:\PCA PCZ.DOC /,Ar3 ~ Ordinance No. Page 4 That the property with Assessor Parcel Numbers 645-030-03, 645-030-04, 645-030-05, 645-030-06 645-030-07 645-030-08 645-030-09 645-030-10 645-030-11 645-030-12 , , , , , , , 645-030-13 and 645-030-14, consisting of approximately 59.54 acres, generally located east of the planned extension of Paseo Ranchero and north of the City of San Diego boundary, as diagrammatically presented on the area map attached hereto as Exhibit II, be prezoned Planned Community. That the property with Assessor Parcel Number 644-060-06, consisting of approximately 136.47 acres, generally located on the north side of Otay Valley Road, on the east side of Rock Mountain Road for a distance of approximately 300 feet, as diagrammatically presented on the area map attached hereto as Exhibit II, be prezoned ~.;t_ll,;f'n .1 Cc.\\Y\ l;O....""-...""'"1 That the property with Assessor Parcel Numbers 643-020-08,643-020-13,643-020-25, 643-020-26 and 643-020-27, consisting of approximately 56.77 acres, generally located south of Telegraph Canyon Road on the west side of proposed SR 125, as diagrammatically presented on the area map attached hereto as Exhibit II, be prezoned Public/Quasi-Public. That the property with Assessor Parcel Number 644-070-04, consisting of approximately 19.59 acres, generally located approximately 500 feet south of Rock Mountain and east of the planned extension of La Media Road, as diagrammatically presented on the area map attached hereto as Exhibit II, be prezoned Public/Quasi-Public. That the property with Assessor Parcel Number 641-030-03, consisting of approximately 9.9 acres, generally located on the north side of East Palomar Street approximately 1,400 feet west of Paseo Ranchero, as diagrammatically presented on the area map attached hereto as Exhibit II, be prezoned Planned Community. That the property with Assessor Parcel Number 641-030-09, consisting of approximately 7.82 acres, generally located south of Telegraph Canyon Road, approximately 2,000 feet west of the intersection of Paseo Ranchero, as diagrammatically presented on the area map attached hereto as Exhibit II, be prezoned Planned Community. That the property with Assessor Parcel Number 641-030-10, consisting of approximately 1.82 acres, generally located south of Telegraph Canyon Road, approximately 2,000 feet west of the intersection of Paseo Ranchero, as diagrammatically presented on the area map attached hereto as Exhibit II, be prezoned Planned Community. C:\PCA PCZ.DOC Ordinance No. Page 5 IV. CERTIFICATION OF COMPLIANCE WITH CEQA That the City Council does hereby find that FEIR 95-01 and Addendum, the Findings of Fact, the Mitigation Monitoring and Reporting Program and the Statement of Overriding Considerations are prepared in accordance with the requirements of the CEQA, the State EIR Guidelines and the Environmental Review Procedures of the City of Chula Vista. V. EFFECTIVE DATE A. The ordinance to amend the PC Zone shall take effect and be in full force the thirtieth day from its adoption. .l~ B. The zoning of those parcels to PC~Q a:I'I8-IIr shall become effective at the same time that the annexation becomes effective. VI. ATIACHMENTS All attachments and exhibits are incorporated herein by reference as set forth in full. Presented by Approved as to form by Gerald Jamriska, Special Planning Projects Manager Cl_ l"lt~,,-,<- (~ Bruce M. Boogaard, City Attorney A; \ccra _ ord\pca -pca.doc Attachments: Exhibit I Exhibit II C:\PCA_PCZ.DOC &A-r ~ ..)",..... ,\' \ \.y,) {.... '(.,. ORDINANCE NO.~'.R '.' .! AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA TO AMEND CHAPTER 19,47 OF THE MUNICIPAL CODE TO CREATE THE PUBLIC/QUASI- PUBLIC (PQ) ZONE (PCA 96-03) WHEREAS, an application for an amendment to the Municipal Code to create the PQ Zone was filed with the City of Chula Vista Planning Department on October 10, 1995 by the City of Chula Vista ("Applicant"), and; WHEREAS, the Municipal Code does not presently have a PQ Zone, and; WHEREAS, the annexation of Planning Areas I and 3 and the Ranch House will produce a need for a new zone with regulations for properties that contain public and quasi-public land uses ("Project"), and; WHEREAS, the wording of said amendment to Chapter 19,47 is attached as Exhibit I to this ordinance, and; WHEREAS, the Planning Commission set the time and place for hearings on said Project and notice of said hearings, together with its purpose, was given by its publication in a newspaper of general circulation in the City and its mailing to property owners and tenants within 1,000 feet of the exterior boundaries of the property at least 10 days prior to the hearing, and; WHEREAS, the hearings were held at the time and place as advertised on November 8, 1995 and November 15, 1995 in the Council Chambers, 276 Fourth Avenue, before the Planning Commission. Said hearings were continued to March 27, 1996, April 10, 1996 and April 24, 1996 by a motion of the Planning Commission at which time, said hearings were thereafter closed, and; WHEREAS, the Environmental Review Coordinator has conducted a Second-tier Draft Environmental Impact Report (EIR) EIR 95-01, a Recirculated Second-tier Draft EIR and Addendum, and Findings of Fact and a Mitigation Monitoring and Reporting Program have been issued to address environmental impacts associated with the implementation of the Project, and; WHEREAS, the Second-tier EIR, the Recirculated EIR incorporates and Addendum, by reference, two prior EIRs: the Otay Ranch General Development Plan/Subregional Plan (GDP/SRP) EIR 90-01 and the Chula Vista Sphere of Influence Update EIR 94-03 as well as their associated Findings of Fact and Mitigation Monitoring and Reporting Program. Program EIR 90-01 was certified by the Chula Vista City Council and San Diego County Board of Supervisors on October 28, 1993, and the Sphere of Influence Update EIR 94-03 was certified by the Chula Vista City Council on March 21,1995, and; WHEREAS, to the extent that these findings conclude that proposed mitigation measures 6$-/ ~ Ordinance No. Page 2 outlined in the Final EIR and Addendum are feasible and have not been modified, superseded or withdrawn, the City of Chula Vista hereby binds itself and the Applicant and its successors in interest, to implement those measures. These findings are not merely informational or advisory, but constitute a binding set of obligations that will come into effect when the City adopts the ordinance approving the Project. The adopted mitigation measures are express conditions of approval. Other requirements are referenced in the Mitigation Monitoring and Reporting Program adopted concurrently with these Findings and will be effectuated through the process of implementing the Project. NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL of the City of Chula Vista does hereby find, determine, resolve and order as follows: 1. PLANNING COMMISSION RECORD The proceedings and all evidence introduced before the Planning Commission at their public hearings on the Draft EIR, the Recirculated EIR and Addendum held on November 8, 1995, November 15, 1995, March 27, 1996 and March 28, 1996, their public hearings held on this Project on November 15, 1995, March 27, 1996, April 10, 1996 and April 24, 1996, and the minutes and resolutions resulting therefrom, are hereby incorporated into the record of this proceeding. These documents, along with any documents submitted to the decision makers, shall comprise the entire record of the proceedings for any California Environmental Quality Act (CEQA) claims. II. ACTION The City Council hereby approves the amendment to create the PQ Zone attached as Exhibit I finding that it is consistent with the City of Chula Vista General Plan and that the public necessity, convenience, general welfare and good zoning practice supports the amendment the Public/Quasi-Public Zone. III. CERTIFICATION OF COMPLIANCE WITH CEQA That the City Council does hereby find that FEIR 95-01, the Findings of Fact, the Mitigation Monitoring and Reporting Program and the Statement of Overriding Considerations are prepared in accordance with the requirements of the CEQA, the State EIR Guidelines and the Environmental Review Procedures of the City of Chula Vista. IV. A. The ordinance amendment to create the PQ zone shall take effect and be in full force the thirtieth day from its adoption. V. ATTACHMENTS ?;g '01- I~ Ordinance No. Page 3 All attachments and exhibits are incorporated herein by reference as set forth in full. Presented by Gerald Jamriska, Special Planning Projects Manager Attachments: Exhibit I A:\ccrs_ ord\p<:a96_03.doc Approved as to form by r~----- TH.0~"" ~ Bruce M. Boogaard, City Attorney t~/3 }-\;t6-)-~ ( PROPOSED MODIFICATIONS TO TITLE 19 TO PERMIT ADOPTION OF PC PREZONING DESIGNATION ON PROPERTY LESS THAN FIFTY (SO) ACRES IN SIZE WITHOUT APPROVAL OF GDP 19.48.020 Regulations generally-Minimum acreage-Ownership restrictions. A. P-C zones may be established on parcels of land which are suitable for, and of sufficient size to be planned and developed in a manner consistent with the purpose of this chapter and the objectives of this division. No P-C zone shall include less than fifty acres of contiguous lands; B. All land in each P-C zone, or approved section thereof, shall be held in one ownership or under unified control unless otherwise authorized by the planning c011U1lission;eii:ev~asprovidedfOr il)$~tjg*.J~;1$;1~Q. For the purposes of this chapter, the written consent ciragreement of all owners hi a p~tzone to the proposed general development plan and general development schedule shall be deemed to indicate unified control. 19.48.030 Application-Method-Documents required. A P-C zone may be initiated by one or more owners, iH" by a developer representing said owners PfPYt1:Je91iIY upon application made in the manner specified in this chapter. 19.48.070 P-C zone-City council action-Compliance with general development plan required. B. At the time of adoption of a P-C zone amendment, the city council shall adopt, by resolution, the general development plan as defined in Section 19.48.040i~9~i>ti!S/i>my:i4~J9IiijSi:Cfi0I1 ~~i~tlm!. 19.48.090 Sectional p/..nning areas and sectional p/..nning area plans-Requirements and content. A. All P-C zones shall be divided into sectional planning areasiniii.~pi~Pff!Yj,p'eijfi:ifJ~$ei;#9it !~;~;~\S9. These areas of subco11U1lunities shall be depicted on ihe pian diagram ofihe genera! deve"iopment plan of a P-C zone, and shall be addressed in the text thereof. ~.~i~ff~~il~~!i+~eiP99~i l\-!pq9~lt~~X~.lme~;!gR!!!Bsgf~8ii; ti;ii a.ii;~IBI_ItI'B_IIB~i;;~iE;iI~ml~~tr&;Bllillli~ 'B-~ .fXHIP7t! A ot~~ntroraidefinedinSection .19 .4S:020,parilgfaphB, shallbetequifl:d~fiheS'ijljject~nd~rea ~{ior toadop!ion or an amended,general deVelopmentl'lanandadoptioni\l1dJOI;~elidJnent ~f ~;;C;<:ti()I1(<1pJIiIU1iJJg.areal'lan... . .. . .. ...... ..... ..... .... .. . .... ... ....... c .. .... Vnderlyh\g lariduseregiJlations, irichiding perinitted, acceSsory an!! conditiorialland uSes; for p~c zone areas which do not have an a~i>rovedgeneral development plan sI'Iall be subject to the proviSions of a zoning designation. which .w~uld .bc. consistent with the .gencral plan iam!. use :i~:;i~~~~~~:!~~~:;~~~:~ishing~~<:t1I1derl>,ing zonin~ re~1.1atiClI1Swilloccurat (:\pc_zone.zta) Revised 3/4/96 2 "8-5 PROPOSED AMENDMENT TO TITLE 19 TO CREATE A NEW PUBLlC/QUASl.PUBLlC ZONE CIia.' ..... ...t. et~~!47 .....(1.....,.... gtQ.._gp1J~qfQP~:gp1JI;IC.Z()NE Sections: J9.47:010 Pur oS!!. !~.:47~p~qI~~~ ~- J;!?;41;P~;!!mitt'lii!P!!i!i!; ~$!!9~~ii~;m;~i#lm!!8YfflI i\11.i~.~$~~C2I~1!Y~~i~; !!;41;9~9;~~~~~!!1!mm~\Ml~;~; 1B!~9!X;.~~_i!Hm!m1~I:qsi9!1~~,~t9J!9'!!fi1 ;]lltli~~~~'tJlili~ilmiiii_~~!'mJ#r8RrEppg!H9~y~~m!r8~~;'p~i t9.;47;@;!i!!m~i:1ijp;j'iIJ~~; ~~igW!!t~I;~~ID~Eg1~ImR:Ij.j9.tj ~!. ......~MM~i!~1J~WM~~!m2iffi~~p~[*IF~;M!i~f:;lgq; , 13- (p fvrtl\?l\ {7 B. c. D. E, F. G. H. ~~~1&i\ibStatloriSi iiCdluIititacilities' I~t@~~~~;...'....".....~ .........i.....~#..~~t!?.ii.pfp~~t~; ~.;irC~;:~::l::~"mm_' K: ....................y!1C!~srfti:i:l.ps~~;i~p~qyi(!e(!ip<Z.lJ!ipt#!~4;4fiirid, tL ........~~~'~ii~i_W;~I!~I'IIi~~.~~y!!!!iP!#~riWj....ciii11miSSi~ll....t()...be...qf....me..same....generill l~,47;(),s().~~r!\i#'ii#1~~~~!~i cpIllPIi~~lli;~1?~I~r~.t;~i4~.~~:e.s!13u...be...~Ubj~Cf..to..ihidaI..arid..~ntinued 19;47;(kiO;SIdiigWUidMd$; :::.:...:-:'...:.......:.;.;.:...:.:.,.:.:.,...,.:.:...:.....,;.;.;.:.:.,.:.:.,...;...;.:.;.:.:...:.;.;.;.;.:..':'.';' ~r9!!9iYmi~!!fui!&9!!~~I~Y~Bt~~!tm~(i~~'SU1!i~sJ~il1e.jJ~I:iIi.SJ.q~Fp~1)lis~g~e: ~"&:~~iIiIIi?~ ~0~~aIi! !~:it7;ms~mgpq!~9~~iX~P&~~~; ~Bp1t~sI.LHi~_lIf!i!P(!~!(!~~~Y!>>,m~~y!1;iHimi:i:I;!1#j)!i~~~!!EP!~iirid ~iitt;9!!P~,*~eli~~~~.~j!ItiIYi!! ~ig~iiljf~ti;~m~Btl:I#=r9xm;!$~!~~qfaI!~~~m)!1!m~(i~;l:pmY!9~'19 t~;47;9?Q~PMP9~; .- -2- '6-7 ( ~9.47;!~~Excf.!j;itioDS, AnY$anif3I)'Jarig~Il\l.5ee~istingppof (O(iidootidriddtiof this dmendmimd . shall be permitted t?continue .operating;;>fJ~~<IIl'ypeI'IIli~tedusepiovidedt~t...fbe PI1)Pfrt~()wner.has. entered ilUo .an ~reement withthe9!yIj1ai;~#l\bIishesSJ!!:!:if!9I!(~atiqmif.n(j/~r8!1ideline$. . .. . . (:\P<Lzonc:.zta) Revised 3/04f96 -3- ~~-r - \0 9,,.0 '1. 'i o A -<\ .l. ~ Q, ~ ~ ~ " ~ ~ y 0 \ \ , ~ r--_~_\"!' \~ /<~ \ \ \ ~rt<' '{.~'-~C; # __ -~ I ...O~ .. c.~ . --1__/ , \ DAUZ I GROMAN PARCELS 9.64 AC. APN.'S 641-{)30-09 & 10 ------------- ROSS PARCEL 9.9AC. APN.641-030-{)3 GERHARDT PARCELS 11.84 AC. APN.'S 641-{)60-{)2 & 03 -- SOURCE: G.I.S. C:\CARLOS\CFDJAG01.CDR ------ CASE NUMBER: SCAlE: PCZ - 96 - A SEE MAP N.T.S. CHULA VISTA PLANNING DEPARTMENT I HEREBY CERTIFY THAT THIS ZONING MAP WAS APPROVED AS A PART OF ORDINANCE BY THE CI'TY COUNCIL ON ACREAGE: DATE: 3 - 4 - 96 OTY a.ERK DAn DRAWN BY: e.:J..g:E.~ C) ZONING MAP ~!f? ~ -- emOF OIUIA VISTA CHECKED BY: NORTH ('B-C; E.x~'~'+- 0. , A M/ FEET 790.00' B C 817.34 ) D 1720.00 E 1130.00 F 354.59 G 327.18 H 1194.28 38.23 J 618.51 K I 1077.29 L 370.00 SOURCE: G.I.S. CIICARLOSICFDIAG02.CDR M 877.42 SCALE: N.T.S. CHULA VISTA PLANNING DEPARTMENT I HEREBY CERTIFY THAT THIS ZONING MAP WAS APPROVED AS A PART OF ORDINANCE BY THE CITY COUNCIL ON CASE NUMBER: PCZ .. 96 .. A ACREACE: 106.31 DATE: 3 .. 4 .. 96 aTY WRK DATI DRAWN BY: e.;!. 'J&~ C9 NORTH ~ ZONING MAP ~"t.: " :s"'" ~~ CllYOf QUA VISTA CHECKED BY: -"e (-tkt'bd- ~ ( WATSON LAND CO. PARCEL 160.00 AC. 585-150-02 2640.00' COUNTY OF SAN DIEGO CITY OF CHULA VISTA ;:w _N 0:0: . 320.00' -----!4 . 9 25 30 CLARKSON PARCELS 1.50 AC. APN.'S 595-050-05 & 06 CJ ~ IfJ SOURCE: G.I.S. C:\CARLOS\CFDIAG06.CDR CASE NUMBER: PCZ - 96 - A SEE MAP N.T.S. CHULA VISTA PLANNING DEPARTMENT I HEREBY CERTIFY THAT THIS ZONING MAP WAS APPROVED AS A PART OF ORDINANCE BY THE CITY COUNCIL ON ACREAGE: SCALE: DATE: 3 - 4 - 96 on WRK DAn DRAWN BY: e.;J. 'J,,~ C9 ZONING MAP ~,,~ ::-..!L-: C1IYOf 0iUIA VISTA CHECKED BY: NORTH (,8-11 ty;~bit D 3002.66' ~ SW CORNER OF QUARTER SEC. 37 ROCK QUARRY PARCEL APN. 646-060-06 il ) ~ CASE NUMBER: PCZ - 96 - A 136.47 CHULA VISTA PLANNING DEPARTMENT I HEREBY CERTIFY THAT THIS ZONING MAP WAS APPROVED AS A PART OF ORDINANCE BY THE CITY COUNCIL ON ACREAGE: SCALE: N.T.S. DATE: 3 - 4 - 96 OTY CURl( DRAWN BY: ~ ZONING MAP e.{/. 'JI!.~ CHECKED BY: NORTH ~ -I A.. ~1k\b\t G ~1t ~!~ ~~ -- art'" otUIA VISTA ( CITY OF CHULA VISTA CITY OF SAN DIEGO OTAY VALLEY RD. SOUTHWEST CORNER PARCELS * APN.'S: OSTLING: 645-030-03 & 13 KELSTROM: 645-030-04 SElMAN: 645-030-05 RABELLO: 645-030-06 HOFER: 645-030-07, OB, 09 BURNS: 645-030-10,11 ,12 ROWLAND, 645-030-14 SOURCE: G.I.S. CI\CARLOS\CFDIAG05.CDR DATE: N.T.S. 3 - 4 - 96 CHULA VISTA PLANNING DEPARTMENT ItlEREBY CERTIFY THAT THIS ZONING MAP WAS APPROVED AS A PART OF ORDINANCE BY THE CITY COUNCIL ON CASE NUMBER: PCZ-96-A ACREAGE: 59.54 SCAlE: an a.ERK DATE DRAWN BY: fl.{/.. :f~~ C9 ZONING MAP ~"t- ~ an'" QUA VISrA CHECKED BY: NORTH 108-13 ~~~~hi-!- f TEL.EGRAPH K L OTAY WATER DISTRICT PARCELS APN.'S 643-020-08. 13. 25. 26. & 27 ) ~ ~ II: If A A 495.76 N 116.10 8 218.34 0 200.96 C 670.00 P 186.84 NW CORNER OF SE QUARTER D 412.54 Q 75.90 OF SEC. 3 T18S-R1W E 100.57 R 150.88 F 628.95 5 33.31 G 412.00 T 100.57 H 585.63 U 332.27 49.28 V 312.00 J 71.00 W 322.00 K 62.05 X 1725.00 L 156.04 Y 230.00 M 482.35 CHUIA VISTA PlANNING DEPARTMENT I HEREBY CERTIFY THAT THIS ZONING MAP WAS APPROVED AS A PART OF ORDINANCE BY THE CI1Y COUNCIL ON CASE NUMBER: PCZ - 96 - A M:REAGE: 56.77 SCALE: N.T.S. 3 - 4 - 96 OTY aERK DATE: DRAWN BY: C) ~8- 11-/ ZONING MAP r:y~'b+'-X e. j g:~ouuuulu CHECKED BY: NORTH DAoTE ~"?- ~ ""Of 0ilAA VISTA ( SAN DIEGO WATER RESERVOIR PARCEL APN. 644.{)70.{)4 ~~cf.~~NER OF QUARTER .... ~. C:\CARLOS\CFDIAG07.CDR DATE: N.T.S. 3 - 4 - 96 CHULA VISTA PLANNING DEPARTMENT I AEREBY CERTIFY THAT THIS ZONING MAP WAS APPROVED AS A PART OF ORDINANCE BY THE CITY COUNCIL ON CASE NUMBER: PCZ - 96 - A ACREAGE: 19.59 SCALE: OTY aERK DATE , DRAWN BY: C!.J. 'JE.~ C9 f, 8 -IS ZONING MAP ~,~ ~ em'" 0tUIA VISTA CHECKED BY: NORTH ~~~bit H- AREAS OF ANNEXATION I~ " 15 o ICD ~ 1 - - - - - 16 Chula VI~ta 1 1 n , ... -. OJ , , ; , ... . . ~-f , . .l ..- . Ua Vi~ta .-- I 1$ I Boundary ---.- 0.93 o 0.93 Mjle~ Annexation Areas , OIay Ranch Area D Non-otay Ranch Parcel~ En-f Its (I J I 'B- J?, CI1Y OF CHUlA VISTA . Gloc.:ltU'MIC 1"'O"&TIO" nsn" RESOLUTION PCA 96-02/PCZ 96-A RESOLUTION OF THE PLANNING COMMISSION OF THE CTIY OF OlliLA VISTA RECOMMENDING CTIY COUNCIL ADOPTION OF AN AMENDMENT TO CHAPTER 19.48 OF THE MUNICIPAL CODE RELATING TO THE PLANNED COMMUNITY (PC) ZONE; APPROVAL OF THE PREZONING OF APPROXIMATELY 600.09 ACRES TO THE PC ZONE, PUBLIC/QUASI-PUBLIC (PQ) ZONE AND THE AGRICULTURE (A) ZONE I WHEREAS, applications for an amendment to the Planned Community (PC) Zone and for prezoning 600.09 acres of presently unincorporated land were filed with the City of Chula Vista Planning Department on October 10, 1995 by the City of Chula Vista (" Applicant"), and; WHEREAS, the Municipal Code does not presently allow for the application of the PC Zone on parcels less than 50 acres in size, and; WHEREAS, the annexation of Planning Areas 1 and 3 and the Ranch House (Exhibit II) will create a need for the application ofthe PC Zone on parcels ofless than 50 acres ('Project'), and; WHEREAS, the wording of said amendment to Chapter 19.48 is attached as Exhibit I to this resolution, and; WHEREAS, LAFCO policy requires that prior to a city annexing property, said property must be prezoned. Thus, the proposed prezoning has been requested in order to bring those certain parcels of Otay Ranch Planning Areas 1 and 3 and the Ranch House, which are to be annexed to the City, into conformance with LAFCO policy ('Project'), and; WHEREAS, those parcels to be prezoned PC are identified by their Assessor Parcel Numbers as: 585-150-02, 595-050-05, 595-050-06, 595-070-26, 641-030-03, 641-030-09, 641-030-10, 641-060-02, 641-060-03, 643-020-40, 643-020-41, 643-020-45, 643-020-46, 643-020-47, 645-030-03, 645-030-04, 645-030-05, 645-030-06, 645-030-07, 645-030-08, 645-030-09, 645-030-10, 645-030-11, 645-030-12, 645-030-13 and 645-030-14, as shown on Exhibit II, and; WHEREAS, those parcels to be prezoned PQ are identified by their Assessor Parcel Numbers as: 643-020-08, 643-020-13, 643-020-25, 643-020-26, 643-020-27 and 644-070-04, as shown on Exhibit II, and; WHEREAS, that parcel to be prezoned A is identified by Assessor Parcel Number 644-060-06, as shown on Exhibit II, and; WHEREAS, the Planning Commission set the time and place for hearings on said Project and notice of said hearings, together with its purpose, was given by its publication in a newspaper of general circulation in the City and its mailing to property owners and tenants within 1,000 feet of the exterior boundaries of the property at least 10 days prior to the hearing, and; (;;8- 17 Council Agenda Statement ITEM TITLE: Item 7 Meeting Date May 21, 1996 ----- Resolution / g d 1 ~ Accepting the State Department of Conservation, Division o'f Recycling, Curbside Initiative Grant No.5095-227 for $39,887, and Authorizing the City Manager to Execute all Documents in Conjunction with Administering the Grant. SUBMITTED BY: Conservation coordinato:~ REVIEWED BY, Ci~ """'~ 'vfJ~ -(~:ili' Vo", y" _ No lJ BACKGROUND: On June 25, 1995 The City Council ratified the submittal of a $50,027 application to the California Department of Conservation, Division of Recycling (DOR). On April 22, 1996 the City received notification that a grant of $39,887 had been approved for award to the City. The Department of Conservation solicited proposals to test systems and/or policies which can be used to abate the impact of theft from curbside recycling programs. The priority of eligible programs were special patrols, community outreach, public education and development of anti-theft systems. The Chula Vista grant application focused on special patrols, community outreach and public education. The award is one of only eleven grants state-wide and the largest per capita award. The grant provides $37,013 for personnel costs to have a Community Service or Code Enforcement officer patrol areas where a large number of curbside theft incidents are reported, and provides an additional $2,874 for printing and supplies. RECOMMENDATION: Approve the Resolution, authorize the City Manager to execute the Agreement and all documents in conjunction with administering the grant. BOARDS/COMMISSIONS RECOMMENDATIONS: At their July 10, 1995 meeting the Resource Conservation Commission voted to unanimously recommend that Council approve the grant application and implement the grant if received (see attached). DISCUSSION: All revenue generated from the sale of materials collected through curbside recycling and multi-family recycling is returned to the rate payer in the form of lower rates. Additionally, an avoided disposal credit (currently $47.50 per ton) is applied to rates for every ton of material diverted from landfills through the recycling and yard waste programs. Theft of curbside material or illegal disposal of potentially recyclable materials further reduces the savings that rate payers, the Council, and staff have worked hard to achieve. In one three month period in 1995 the per ton price for newspaper rose almost 200 % . Curbside theft reports increased dramatically during that period and the weight of newspaper collected through curbside went down. The loss in tonnage cost residents an estimated $20,000 per month or $.071 per household. This grant will help increase recycling revenues that will reduce residential refuse rates and it will allow the City to provide a more prompt response to citizen complaints regarding curbside theft. It will also allow the City to target areas of frequent complaint for preventative patrols. Additionally, the grant encourages the City to work with other volunteer groups to promote the awareness and reporting of 1-/ Item Meeting Date May 21,1996 Page 2 curbside theft and develop policies and procedures to prevent curbside theft. The grant's program design and budget were developed in conjunction with the Police Department. The grant application was reviewed and approved by the Police Department before it was submitted to the City Council for consideration. The education component of the grant will focus on providing rate payers the information they need to reduce curbside theft. Public education materials will inform rate payers that they, not the City or Laidlaw Waste Systems Inc., receive the benefits from the sale of materials collected. Residents will be encouraged to set recycling containers out the day of collection instead of the night before and they will be encouraged to report curbside material theft in a manner that can be used to identify, warn and penalize curbside thieves as appropriate. The Conservation Coordinator will keep a log of reports and communicate any time, location or collection patterns of curbside thieves to a Community Service or Code Enforcement Officer (officer) for enforcement. The grant will fund an officer to respond to recycling theft calls and patrol areas reporting a high incident of recycling theft. The patrols will concentrate on the night prior to and the morning of recycling collection in each neighborhood. Officers will be encouraged to concentrate enforcement on larger theft operations that involve vehicles and organized groups. Officers will be encouraged to warn small first time offenders, take information and report the data to the Conservation Coordinator. The Conservation Coordinator will distribute information on repeat offenders to the District Attorney, Code Enforcement/Community Service Officers, Officers in contiguous jurisdictions and buy back centers where stolen materials are sold. Officers will be encouraged to write violations for repeat offenders and potentially confiscate the material collected and impound vehicles when appropriate. The officer will take a photograph of the recyclables for evidence (which has been approved by the District Attorney) and the recyclables will be left at the curb, where they will be collected by Laidlaw Waste Systems as part of their regular curbside recycling collection route. Abandoned shopping carts will be reported to the appropriate store or cart retrieval service as needed. The Conservation Coordinator will also develop and recommend additional changes in collection and enforcement policy as the program gains experience. Attached is an article that lists twenty-three methods used by other cities and counties to reduce recycling theft. FISCAL IMPACT: The grant will provide $37,013 (approximately 1,000 hours of overtime at $28.00 per hour) for a Community Service Officer or Code Enforcement Officer. The grant provides an additional $2,874 to pay for incidental materials and supplies for a total of $39,877. If approved the full grant allocation will be included in the budget request for fiscal year 1996/97. The program does not require matching funds. Any other costs associated with the grant will be funded through the Conservation Program budget. Whenever practical under the spirit and intent of the grant, those funds will be used to complement existing responsibilities of a community service or code enforcement officer to provide service in the neighborhoods they patrol. 1~d- Detailed Program Budget 270-270-2716 Staff Services (5291) $37013.00 Printing Advertising and Supplies (5398) $ 2,874.00 Grand Total $39,887 mtm:cas-rcc doc-grnt.res Attachments 1,.3 /7-1 RESOLUTION NO.~S-- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING THE STATE DEPARTMENT OF CONSERVATION, DIVISION OF RECYCLING, CURBSIDE INITIATIVE GRANT NO. 5095-227 FOR $39,887, AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL DOCUMENTS IN CONJUNCTION WITH ADMINISTERING THE GRANT AND APPROPRIATING FUNDS THEREFOR WHEREAS, on June 25, 1995, the city Council ratified the submittal of a $50,027 application to the California Department of Conservation, Division of Recycling (DOR); and WHEREAS, on April 22, notification that a grant of $39,887 the City of Chula Vista; and 1996, the City received had been approved for award to WHEREAS, the Department of Conservation solicited proposals to test systems and/or policies which can be used to abate the impact of theft from curbside recycling programs; and WHEREAS, the priority of eligible programs were special patrols, community outreach, public education and development of anti-theft systems; and WHEREAS, the Chula vista grant application focused on special patrols, community outreach and public education and the award is one of only eleven grants state-wide and the largest per capita award; and WHEREAS, the grant provides $37,013 for personnel costs to have an officer patrol areas where a large number of curbside theft incidents are reported and provides an additional $2,874 for printing and supplies. NOW, THEREFORE, BE IT RESOLVED the City Council of the city of Chula vista does hereby accept the State Department of Conservation, Division of Recycling, Curbside Initiative Grant No. 5095-227 for $39,887, subject to appropriation of the funds required by the agreement to be spent in advance during the 1996-97 budget cycle. BE IT FURTHER RESOLVED authorized and directed to execute with administering the grant. that the Mayor is hereby all documents in conjunction BE IT FURTHER RESOLVED that staff is directed to place the required appropriation of funds in the 1996-97 budget for subsequent council approval, as follows: $39,887 is hereby appropriated from the General Fund to the following accounts: 1-:;- staff Services (5291) printing Advertising and Supplies $37,013.00 (5398) 2.874.00 $39,887.00* *When the grant funds are received, the General Fund is to be reimbursed. Presented by Approved as to Ldl. Michael Meacham, Conservation Coordinator Bruce M. Boogaa ,city Attorney C:\rs\curbside.grt '7~L, SfA'TB OP CAUPORNIA STANDARD AGREEMENT-APPROVED BY THE sm.1(UV._ ATTORNEY GENERAL CCIII'tACr NUIGII. 509S-227 AM. NO. CDN!IACI'OI.'S PIDII.AL 1.D. NUWBU. THIS AGREEMENT.1IIIde ODd __ iDIo tbi> I. dayofMltd>. 1996. 9S-600069O in tho S- ofCalifomia. ODd"""'" S- ofCalifomia. dwou ita du _.. ifiod ODd 0CIinc TrTLIO.OPPICD..ACnNOPO&srAD AGENCY AssistaDt Director for AdmiDistralion Department of CoDscmItion ,- coIIod 1110 SIIIo, - ~IWG City ofChula VISIa .~caIW"l"" --, wmiNESSETH: Tba1tbeOClllltndal'faraDdia.~oaoftbeQD'l.' --.. ~ ........J-=v-al..,........ --...... ... .... bonby _to&milh to 1110 _ _IIIII-.riaIa u1bl10W1: ~forrJr _ce to k __ by c_. .......... to k pmd CDrrIractor. It_!",. y-p..._IN Dr'~0ft, tlltdlltllXlrp/41utlltd q<<:tjIClltJtM#. tflll'lY.) 1. The purpose of this Ag=me:nt is to implement a c:wbside anti-5C3WDgiDg program aa delailO11 in Exhibit A, Scope of Work, which is attached and iDcorporaled herein. 2. The term of this Agreement sbaI1 beftom April 1, 1996 orlbe dale ofrec:eipt ofsignecllogr(o n~..I. bylbe Department of Conse1vation, whichever is later, to September 30, 1997. 3. The amount of this Agn:ement sbaI1 not exceed Thirty-N"me Tboosand Eight Hundred Eighty-5even Dollars ($39,887.00). CONTINUED ON SHEETS, EACH BEARING NAME OF COln'RAcrOR AND CONTRAcr NUMBER. The prvv;.;- ""1110____ .....oe.......-. tNWlTNESSWBEREOF.tbio bu__bvlhc '.-. Sl'ATE or CALIFORNIA tba dale lint Ihove-. COln'RAcrOR ...- Jam: Irwin ~"....._..........- ................,......... City ofChula VISta -.cT Resources ent of Co U<A1WO rr U<A1WO ...-- John D. GeIss. City Manager Assistant Director for Administration 276F_A_ QoIIa V_ CA91910 tm.a CBCRF ~.,~..~ __r -..... -n". -- VK~:1aXJ&T (CIIXIaAN)~ .....-., so s 39887.00 -- .... S7OO-S 14S3 _CUIIOACT s '" 3480-S04-133 1266 .... s 39,887.00 632.SS ADAV~Pal.1Ia.-.aDAN)"""QII1Ia.-ana1rA'ND~ 9S/96 .... ...,.. QII ac. ... [J 90 '6667 7~1 IrA'TI Of' CA1.IPOIHIA STANDARD AGREEMENT sm.2(UV.....r) 1. The CODIrIctDr agrees to ;ftA_ftHy, defCDd IIId .oe haImIcsa tile Stale. its ollicen, .....ts IIId emp~ film lIlY IIIId all claims IIIId losocs accruing or resulliDg to lIlY IIIId all -.. subcon1ncton, matcriaImaI. Iabcen IIIId lIlY oIba' penan, firm or corpcntion fumi.sbing or supplying work services, IIIIIc:riaIs or supplies in camcction with !be pem........., aClbia caaInICI, IIIId 1i:om lilY IIIId all claims IIIId loues accruiDg or resuIIiDg to lilY person, firm or corpontian VoiIo may be injured or damqed by the ConIrIctor in the perfOl1llllll:e ol IhiI c:anInIcl 2. !'be COIIInII:tor,IIIId the agents and employees olC"'l_. in !be pezformantc oldie qrec:ment, IbaIlICt in III ~t capocity IIIId not as officen or employees or ..- of Slate ol CaIifcrnia. 3. The State may tamiDate 1hiI1&f~ IIIId be IdiCftd of tile peymaII of lIlY e<midc:nIion to ~ IbouJd ~ IiIil to perform tile cov.......ts bcrcin contained It the time and in the IIIIIItIer boRin providecl. Ja the cw:nt ol such terminatiOll the State may proceed with the 'MIlk in lIlY IIWmt:r d.ec:med proper by die State. !'be COlt to the State sbaIl be """n,",..! 1i:om lIlY""" dn"dIe COuh~ UDder IhiI ogr=ment. and die t.Iance, if lIlY, sbaIl be poid die c-I>_tor upon demand. 4. WitbDut the written consent of the State, IhiI agreement is not ---is''-hle by Contractor c:illu:r in VoiIoIe or in port. S. Time is of1be = in IhiI agreement. 6. No alteration or variation of the terms of IhiI contract sbaIl be valid unless made in writing and signed by the parties hereto, IIIId no oral undemanding or agreemmt not incorporated herein, sbaIl be binding 011 any of tile parties hereto. 7. The consideration to be paid CODIrIctDr. as provided herein, sbaIl be in compensation fot all ofContracIo1'. '"7"- incmred in tile performance hereof, including ttavelllld per diem. unless otherwise expressly so provided. " \.~ So ,'I ~ \ ,... I . _ O~ '.b \.. 7/~ TABLE OF CONTENTS TER1\fS AND CONDITIONS 1. Evaluation 2. Communic:ltions 3. Modifications - Changes 4. Written Approval of Project Changes S. SubcontraCtOrs 6. Subcontractor Worle 7. Competitive Bid Requirements 8. Minority, Women. and Disabled Veteran Business Participation Goals 9. AI:counting Records 10. Audits 11. SlOp Worle Notice 12. Discretionary Termination or Assignment 13. Disputes 14. Publicity and Acknowledgment IS. Ownership of Dntwings. Plans and Specific:ltions 16. Copyright and Trademarks 17. Drug Free Workplace Certific:ltion 18. Special Conditions Site Visits Compliance Equipment Payment Invoicing Status Reports Final Repon Travel Recycled Content Product (RCP) Procurement Insurance Discharge of Grant Obligations Nondiscrimination Clause Grantees National Labor Relations Certificalion Exhibits: A. Scope of Worle B. Budget C. Implementation Schedule D. Curbside Initiative Status Repon form 7Jq DEPARTMENT OF CONSERVATION - DIVISION OF RECYCLING CITY OF CHULA VISTA GRANT NUMBER 5095-227 ARTICLES 1. Evaluation: The Grantee is hereby advised that its performance under this grant will be evaluated. :md submitted to the Director of the Department of Conservation (DOC) within 30 days after the termination of this grant. 2. Communication: All official communication from the Grantee to the Division of Recycling (DOR) shal1 be directed to Blanda Dunc:m: Department of Conservation. Division of Recycling, 801 K Street. MS 18-55, Sacramento, CA 95814. 3. Modifications - Chan2es: Upon approval of the Grant Manager, the budget ofany project within the grant may be revised up to twenty percent (20%) from one line item to another withow increasing the toIai amount of the project. By written change order. the Grant Manager may, at any time during the effective period of the Grant, order changes within any project without invalidating this grant so long as such changes do not increase the amount due. extend the term. or result in substantial change in the scope of work. The Ia1:ter changes shall require a formal grant amendment. 4. Written ADDrOVal of Proiect Chan2es: The Grantee must obtain prior written approval from the Grant Manager before making changes to the grant. All requests should include a description of the proposed change :md the reasons for the change. Such changes should include any budget line item revisions, minor task modifications. management staff a4justments. and changes in granteelsubconU3C!Or or the scope of worle 5. SubcontractOrs: The Grantee shall be entitled to make use of its own staff:md such subconU3C!Or(s) as are mutually acceptable to the Grantee :md the Division. All subconuactor(s) specifically identified in the scope of work are considered to be acceptable to the Division. Any change in subcontractor(s) which have been found to be acceptable by the Division shall be subject to either a grant amendment or written change order. All contracts between the Grantee and subconU3C!Ors shall be subject to approvaJ of the Grant Manager. All subconU3C!Ors are governed by and must adhere to all provisions of this agreement. 6. Subcontractor Work: It is understood and agreed that the Grantee and each subcontr.lCtOr shalI 00u.ta~ the "grantee team." The Grantee shall function as the Prime Grantee (hereafter ...ae......1 to as Grantee) of this project and shall manage the performance of the project and shall manage the performance of the technicallexpert subcontractors. AlI.dgtuCCS to the "Grantee" herein refer to the Prime Grantee unless otherwise noted. The Grantee. its subconU3C!Ors and its employees shall be responsible in the performance of the Grantee's work under this grant in excrc:ising the degree of ski1J and care required by CUSIODWily ~ed good professional practices and procedures. Any costs for failure 10 meet the foregoing standards. or otherwise defective services which causes ,..,Inntlsonr.y shall be borne by the Grantee and not the Division. The Grantee shall be responsible for scheduling and assigning subcontractors to specific tasks. coordinating subcontractor a..--c.;hility 10 the Division sIaf( and submitting completed products to the Grant Manager. Page 2 7 - )tJ DEPARTMENT OF CONSERVATION. DIVISION OF RECYCLING CITY OF CHULA VISTA GRANT NUMBER 5095-227 7. Conmctitive Bid Reauirements: In the event a subcontraCtor is changed or:Jdded to those i~ntified as subcontraCtOrs in the grant proposal. the Grantee sball pwchasc services from the lowest responsible bidder or pay the difference bctwccn the low bid and the one selected. All payment requests sbalI documcn1 the competitive selection by including copies of at least three bids for services subject to this condition. This condition may be waived upon Grantee certification that due to the unique nature of the service a sole source purchase is justified. 8. Minoritv Women. Disabled Veteran Bn.it\ess Particioation Goals: Public ContraCt Code Section 10115 et scq. requires Slate contraCtS to have participation goals of not less than fifteen percent (15%) for minority business enterprises. five percent (5%) for women business enterprises. and three percent (3%) for disabled Veteran h.ooi..-, enterprises. In all purchases and subcontraCtS awarded UDder this agrccmeD1. the gxantee sbalI consider minority, women. and disabled veteran business enterprises. All payments made to these enterprises. and reimbursed through this grant. sbalI be identified using MinoritylWomen and/or Disabled Veteran Business Enterprise Forms. These forms shall be submitted with the final rcpon. 9. Accountin.. Records: !be Grantee must establish a scparaIe ledger account for receipts and e.'cpenditures of grant funds and maintain expenditure detail in accordance with the approved budget detail. Sep:mttc bank accounts arc not required. The Grantee shall maintain financial records in accordance with genemlly acccptCd accounting principles. of expenditures incurred during the course of the project including matching funds that may be required. Such records sbalI be readily available for inspection by the Division. SubcontraClOr(s) employed by the Grantee and paid with moneys under the terms of this AgrecmcnI, sbalI be responsible for maintaining accounting records as specified in the above paragraph. 10. Audits: The Grantee agrees that the Division. the Swe Controller's Office and the Swe Auditor or its designated representatives shall have an absolute right of access to all of the Grantee's records pertaining to the agreement to conduct reviews and/or audits. Grantee's records including financial records. pcrforntanCC repons. requests for payment. or any pan thereof requested. sbalI be made available to the designated auditor(s) upon request for the indicated review and/or audits. Such records sbalI be retained for at least three years after expiration of this agreement: or until completion of the :!dion and resolution of all issues which may arise as a result of iny litiplion. claim DCgotialiolL or audit; wbicllcvcr is 1aIcr. 11. StnD Work Notice: Im_~t..1y upon receiving a written notice to stop work. the Grantee sbalI cease all work under this Agrccmcnl 12. Discn:tionarv Tennin~tion or Assi,,"m~t: !be Division sbalI have the right to terminate this agrccmcnt at its sole discretion at any time upon thirty (30) days written notice to the Grantee. In the case of early termination, a final payment will be made to the Grantee upon receipt of a fin~nM~1 rcpon and invoices covering costs incurred to terminalion. and a written rcpon describing all work pcrfonncd by the Grantee to date of termination. 13. DiSDUtes: The grantee is It=by advised of its duties, obIiplions and rights under Public ContraCt Code Sections 103SS through 10412. In the event ofa dispute, the Grantee may, in addition to any other remedies which may be available, provide written notice of the particulars of such dispute to Elin D. Miller, Director, DcpBrtmcnt ofConscrvation, 801 K StrccI. MS 24-01, Sacr:un=to. CA 95814. Such written notice must contain the grant number. Within ten days of receipt of sucb notice, the Director sbalI advise the Grantee of his findings and a recommended means of resolving the dispute. Page 3 7,1/ DEPARTMENT OF CONSERVATION - DMSION OF RECYCLING CITY OF CHULA VISTA GRANT NUMBER 5095-227 14. Publicity and Acknowl""vmcnt: The Grantee a~ that it will acknowledge the California Depenmcnt of Conservation's support whencver projects funded. in whole or in pan. by this agreement are publicized in any news media. brochures.. :uticles. seminars or other type of promotioaal maICrial. All use of the Department of Conservation, Division of Recycling's "Swirling Arrow" service mark must be approved through the use of a liCC'n<ing agreement. This iw1nM: use on all press releases. brochures. articles. advertisements. etc. The Grantee sball also include in any publication raultiJlg from ..ork performed UDder tIaiI grant an IICknowledgmeot !IIbstantiaIly as follows: "The work DpoD ..bich tIaiI pablicadoD it baed ..u performed pur!llant to a grant witb tbe California Department of CouemtioD." or other lupage approved by the Grant Manager. The Grantee shall place the foUowing notice. preceding the text, on draft reports. on the final repen. and on any other publication or report resulting ftom worIc perfonned under this Agreement: Disclaimer The statements and conclusions of this reoon are those of the GrantcelSubcnntractor and not necessarily those of the DeDartment of Conservation. or its errmlovees. The DeDartment makes no wamnty =sed or imDIied. and assumes no liability for the infonnation contained in the ~;1I2 text. 15. Owners hiD of Drawine:s. Plans and Soecifications: The Department shal1 have separate and independo:nt ownership of all drawings. design plans. specificatiODS. notebooks. tracing, pbotograpbs, negatMs, audio and video productions. films. recordings. original artWOrk. productions. repens. fintl;ng<. reamo.......mrions. data and memoranda of cvery description or any pan thereof. prepared under this AgreemenL and the originals of all copies thereof shall be delivered to the Division upon request. The Department shall have the full right to use said originals and copies in any IIIIIDJICf when and where it may detennine without any claim on the pan of the Grantee, its vendors or subcontraCtors to additional cowpensation. 16. CODVri2ht and Trademarlcs: The Grantee agrees to establisb for the Department good title in ail copyrightable and t:rademarIcable materials developed as a result of this Agreement. Sucb title shal1 include exclusive copyrights and trademarks in the name of the Stale of California. As used herein. "Copyrightable maICrial" includes ail materials which may be copyrighted as noted in Title 17. United States Code. Section 102, as follows: 1) litenuy works, 2) musical works, including any accompanying music. 3) pantontimes and cboreograpbics. 4) pictorial gnlPbic and sculptural works, 5) motion pictures and other audio visual works and 6) SOUDd recordings. As used baein. "trademarl<able maICrial" means any material whicb may be regisIcRd as a trademark. service mark or !lade name UDder the California Trademark Law, cited at Business aDd Professions Code (B&.PC) Section 14200-14342. "Trademark" is dcfuted by B&PC Section 14207. "Service Mark" is defined by B&PC Section 14206. "Trade Name" is tW;ned by B&PC Section 14208. GranIee agrees to apply for and register ail copyrights aDd trademarks. as bereabove dPfinf'rl in the name of the Stale of California. for all materials developed Page ~ /? /,:J DEPARTMENT OF CONSERVATION - DMSION OF RECYCLING CITY OF CHULA VISTA GRANT NUMBER 5095-227 pwsuanllO this Agreement which may, UDder the applicable law be copyrigbled or for which a trademark may be registered. Failure 10 comply with this article when sucl1 failure results in the loss of the exclusive right of the State to use. publish or disseminate such materials. when such failure and result occur during the term of the grant. constituteS bre:lch of grant. 17. Dtu2 Free Worlmlace Certification: By signing this grant. the grantee hereby certifies UDder penalty of peJjury under the laws of the State of California tbaI the grantee will comply with the requirementS of the Dtug-Free Workplace Act of 1990 (Government Code Section 8350 et seq.) and will provide a drug-free workplace by taking the following :JCtions: I) Publish a statement notiiYing employees that un1awfal manufacture, distribution. dispensation, possession, or use of a controlled substance is prohibited and specifying actions taken against employees for violations. :15 required by Government code Section 8355{a). 2) Establish a Dtug Free Awareness Progr:un :15 required by Government Code Section 8355{b) 10 inform employees about all of the following: a) the dangers of drug abuse in the workplace: b) the person's or organization's policy of mainlaining a drug free workplace; c) any available counseling, rehabilitation and employee "~<ict.nce program: and. d) penalties that may be imposed upon employees for drug abuse violations. 3) Provide.:15 required by Government Code Section 8355{c), that every employee who works on the proposed grant: a) ,viII receive a copy of the company's drug-free policy statement: and. b) will agree to abide by the terms of the comp;my's swcment as a condition of entployment on the grant. Failure to comply with these requirements may resnIt in the suspension of pIYIIICI1ts under the grant or termination of the grant or both and the gl3lltee may be iDdigible for award of any future state conuacts if the department determines tbaI any of the following bas ocx:urred: (1) the gl3lltee bas made false certification. or (2) violates the certification by faiI:in& to carry out the requirements as noted above. 18. S-=ial Conditions: This is not a complete list of all possible special conditions. DOC raerves the right to place special terms and conditions on the Grantee which may vary with each project receiving funds during the term of the grant agreement. Site Visits: OOR will conduct periodic site visits, at its own expense. to monitor progress during the grant term. Such site visits may be coordinated with the Grantee's .~... "Jltarive. or may be unannounced. In some cases. slides or photographs may be required in order to doc:nD>ent progress or to publicize results. Also. interim verbal or wriucn progress reports may be required to supplemcD1 the more formal statUS reports. Additional copies or special due dates for any wrium materials may be specified. Comnliance: The Grantee sba1l comply fWly with all applicable federal. state and loca1laws, arm""......., regulations and permits and sba1l secure any new permits required by authorities having jurisdiction over the project{s), and main..in all presently required permits. The Grantee sba1l ensure tbaI any applicable requirements of the California Enviro_tal Quality Act are met in order to carry out the terms of the grant. Page 5 1//3 DEPARTMENT OF CONSERVATION - DMSION OF RECYCLING CITY OF CHULA VISTA GRANT NUMBER 5095-227 Eauioment: The State reserves the right to reclaim equipment funded UDder a grant for a project which is not completed or is terminated. Ownership of all equipment will be reraiJIed by the Gr:uttee after the SUCCtSsful completion of the project. Pavment: Payments shall be made to Grantee no more than once every thirry (30) ,.,,\pntbr days in arrears for actual costs a=ued while performing only those services as specified in the scope of work exhibit of this agreement, and upon evidence of satisfactory progress and approvaI by the Grant Manager. Such evidence shall consist of written progress reports and receipt of any ddiverables as required by the grant Only those items identified in the budget are eligible for reimbursement Any changes to the Budget must be approved by the Grant Manager before an expenditure for that i1em is made. The Division shall withhold poay..",nt equal to ten percent (10%) of each invoice until completion of all work and other requirements to the satisfaction of the Division. An exception can be made only with the written approva1 of the section management. Invoicinl!.: An invoice must be submined with an original and four additional copies on ofIicialletterhead listing the grant and invoice number. The original invoice must have an original signature. Two copies of supporting documentation (bids. receiptS. canceled checks. sole source jttstification. etc.) must be submitted Original supporting documentation is not required and should be retained by the Grantee. Invoices are to be seouentiallv numbered An invoice must be signed by the person who signed the grant or hislher designee. If Ibere is a question as to the authority of the signer which cannot be resolved to the satisfaction of the State. the invoice will not be honored A proof of pwcbase receipt or canceJed check must be subminecl for each item requested to be reimbursed These items must contain sufficient information to establish that the specific purchase was made. Each invoice is subject to approva1 by the Grant Manager. Division Management, and audit by the Accounting Office. If an invoice is questioned. the Grant Manager shall contaCt the Grantee within fifteen (15) working days of receipt of the invoice. Undisponed invoices take approximately six (6) weeks for payment Mail an original and four (4) copies ofpaymen1 requests with two copies of all supporting <Ioc\Ir'nt.rion to the foUowing address: Department of Conservation Division of Recycling Local Assistance Section 801 K Street, MS 18-55 Sacramento. CA 95814 AaeoIion: Blanda Duncan Status Renorts: The Grantee shall submit to the Grant Manager status reports as defined in the scope of work.. Page 6 f//lf DEPARTMENT OF CONSERVATION - DIVISION OF RECYCLING CITY OF CHULA VlST A GRANT NUMBER 5095-227 Final Reoort: The Gmntee shall submit a draft of tile final narrative management report as defined in the scope of work on or before the date listed in the implementation schedule or forty-five (45) days prior to the end of the grant term upon the Grant Manager's approval. Review comments shall be prepared and transmitted by the State to the Grantee within fifteen (IS) working days of receipt of the draft version of the final report. After incorporation of revisions of State submitted comments, the Grantee sbalI submit to the Grant Manager one camera R3dy copy pins five (5) copies of the final report no later than fifteen (15) days prior to the asrec-nt termination date. The State reserves the right to use and reprodw;e all reports and data produc:cd and delivered pursuant to this agreement. and reserves the right to authorize others to use or reproduce such maserials. FailllfC to comply with the reporting requirements specified above may result in termination of this agreement or suspension of any or all (D"...ntling payment requests until such a time as the Grantee has satisfactorily completed the reporting provisions. Travel: Travel by private or gr.mtce owned antomobile. necessary to the perfonnance of this agreement. shall be reimbursed at 24.0 cents per mile. Recvcled Content Product IRC?) Procurement: The Depanment of Conservation has an RCP procurement policy which sets buying goals for paper products. fine printing and writing paper, plastic, glass, oil, compost and co-compost. solvents and paint. tire derived products. and retread tires. The Grantee sbalI make a reasonable effort to meet or exceed these goals by purchasing RCPs wilen they use grant funds to purchase products within any of the product c:ltegories listed above. All purchases of RCPs using grant funds sbalI be reported in status reports. Insurance: The Grantee sbalI obtain and keep in force for the term of this agreement, and require its subconttactors to obtain and keep in force. the following insurance policies which cover any acts or omissions of the Grantee, or its ctDployees engaged in the provision of service specified in this agreement: :L Worker's Compensation Insurance in accordance with the statutory requiIement of the State of California. b. Comprehensive personal injury liability insurance, including coverage for owned. hired and DOn-owned automobiles. c. Comprehensive property damage liability insur.mce, including coverage for owned, hired and DOn- owned automobiles. ~ Grantee ~ name the Denartment of Conservation. Division of Recvclin2 as an .rlrlitional insured for all i ce reauired and is resDODSlble for 2WI1'aDteein2 that a CODV of each Certifi""'t~ of Insurance issued is submitted to the Division within thirtv (30) daYs of 2rant siem"".",. The certificate of insurance shall state a limit of liability of not less than $500,000 per occurrence for bodily injury and ploperty damage combined. The Grantee sbalI notify the Division prinr to any insurance policy cancellation or substantial change of policy. Page 7 7/ Ie- DEPARTMENT OF CONSERVATION. DIVISION OF RECYCLING CITY OF CHULA VISTA GRANT NUMBER 5095-227 Discharl!.e of Grant Oblil!3tions: The Grantee's obligations under this agreement sball be deemed discharged only upon acceptance of the fmal report by the Division. If RqUeSted. the Gr:mtee shaJl make an oral presentation to the Division of Recycling. In the event the Grantee is a public agency, the local governing body shaJl accept the final report prior to its submission to the Division. NondiscriJ71ilUltiOn Clause: During the performance of this grant. the grantee and its subcontractor(s) shall comply with the provisions of the California Fair Employment and Housing Act (Government Code. Section 12900 et scq.), the n:gu1ation promulgated \hemUIdcr (California AdtninisUa1ive Code, Title 2, Section 7285.0 et seq.), the provisions of Article 9.5, Chapter I, Division 3. Title 2 of the Government Code (Government Code. Sections 11135-\1139.5) aDd the regu\alions or standards adopted by the awarding State agency to implement such article. Grantee and its subcontractor(s) shall give written notice of their obligations under this clause to labor org~ni7ations with which they have a collective bargaining or OIlIer agreement. Grantee shall include the nondiscrimination and compliance provisions of this clause in all subconuactS to perform work under the grant. Grantees National Labor Relations Certification: The Grantee. by signing this agreement. does swear under penalty of perjury that no more than one final unappealable finding of contempt of coun by a Federal Court has been issued against the Grantee within the immediately ~g two-year period because of the Grantee's failure to comply with an order of a Federal Court which orders the Grantee to comply with an order of the National Labor Relations Board. Page 8 '7/I~ DEPARTMENT OF CONSERVATION. DMSION OF RECYCLING CITY OF CHULA VISTA GRANT NUMBER 5095-227 EXHIBIT A SCOPE OF WORK Project Title: City of ChuIa Vista CUIbside IDilialive Pilot Program The above-named project is to be completed as a result of the award of this grant. and sball be conducted in accordance with the following parameters: 1. The Gr.mtee. City of Chula Vista (City), will ensun: all curbside prognuns openned under their authority and in their jurisdiction are currently registered by the Depanment of Conservation and will provide the Grant Manager a copy of the last submitted application or renewal for a ClIlbsidc Identification Number for all applicable curbside prognuns. 2. The City will collect baseline data in the months of May through July 1996. Baseline data will be collected and reported using the Curbside lnilialive SIatUS Report fonn (Exhibit D). The City's data collection will include. but not be limited to: citizen scavenging reports received and tonnage of recyclable materi:Ils collected through the curbside program. and revenue received per ton by material type. Using E.-dlibit D. all data itemS collected and reported for baseline data must be collected and reported in all subsequent monthly statuS reports. 3. The City's police department will provide 1.000 hours of anti-5ClVenging law enforcement (equal to one community service officer cooducting four-bour shifts Monday through Friday for 3S weeks). DocumenWlon of the approva1 for anti-5ClVenging law enforcement must be submitted to the Depanme01 of ConservaUon prior to the impl~m...tarion of the enforcement program. *. The Grantee will develop a curbside scavenging public education and reponing program as a component of the current City of Chula Vista'S Retired Senior Volunteer Patrol (RSVP) and Neighborhood Watch prognuns. The curbside scavenging public educltion and reporting program shall include the following: 3. One community service officer will pauol cwbside IUDICS from *:00 a.m. to 8:00 a.m. on each collection route; b. Preparmion of a ClIlbside Scavenging Report for all vehicles observed involved in scavenging activity. The ClIlbside Scavenging Reports shall include. wbem:ver possible. the make and model of the vehicle. lia:nsc 1IIJD1ber. description of driver and other persons iDvolved in scavenging. and a description of recyclable material observed in the vehicle; c. Taking ClIlbside Scavenging Reports from cilizals calling the c:mb5ide scavca&in& IIDtli=; and d. Srlri"g a1 community meo-""IP' and eventS to inform the pablic on how to n=spoIId to scavenging activity and how to reduI:e the potC01iaI. for scavenging of c:mb5ide materials Page.9 1//7 "tV.' DEPARTMENT OF CONSERV A110N . DMSION OF RECYCLING CITY OF CHULA VISTA GRANT NUMBER 5095-227 S. The Grnntee will develop:1 public outreach =paign to inform the public how to use the City of Chula Vista' s curbside scavenging hotline. The public outreach campaign will include newspaper articles. bill inscns. City council meetings telec:l5lS. the City quarterly newsletter and local media to promote the anti.theft hotIine and explain the impact of curbside theft. Tbe anti-theft information will include elemenwy school programs and other public outreach activities. Usmg Exlllbit D. status reports sball be submitted to the Grant Manager monthly as detailed in the implementation scbcdule. If an invoice is not being submitted for any one month. a status repon will still be required from the Grantee. Final RCDOn: The Grantee shall submit a draft of the final narrative management repon on or before the date listed in the imp1em~t!lt1()n schedule. The final repon shall include. but not be limited to: a. Table of Contents: b. A brief summary of the organization. the objectives of the project and how these objectives WCre accomplished: c. A discussion of the amount awarded and how the funds have been used: d. A thorough discussion of all activities conducted throughout the grant period; e. A discussion of all scavenging activity trends observed throughout the grant period All trends must be supponed by data reponed in the monthly status reports as compared to baseline data collected: f. A discusston of any problems and/or concerns th:tt may have arisen during the course of this project. and the corrective actions taken: g. A consolidated list of subcontractors funded by the grant (in whole or in pan). Include the name. address. CODcise statement of work clone. time period and value of each; h. A summary of project =. Provide measurable results such as the number of citizen scavenging reports received. and tonnage of recyclable material collected through the curbside program by material type. The summary of project sua:esses must include. if available. data from the curbs1de program collected the year prior to tbe Curbside Initiative grant project; and I. Any findings. conclusions. or recommendations for follow-up or ongoing activities that might result from S'........di1J completion of the project; j. A statement, if app1iClble, of future intent of public and/or private support to maintain or further develop tbe project; Ie. Copies of all news articles and any other media coverage. as well as all promotional and educational materials produced as a result of this grant agreement; Page 10 1/J~ DEPARTMENT OF CONSERVATION - DIVISION OF RECYCLING CITY OF CHULA VISTA GRANT NUMBER 5095-227 A request for final payment should be submitted in conjwK:tion with. but not as a portion of, the final repon. All materials designed under this grant agreement must be m'iewed and approved by the Grant Manager prior to reprodudion and/or distribution. This will include, but not be limited to, press releases, flyers, and evaluation forms. Final copies of all materials will be submitted with the statUS repons. All materials designed. reproduced. and/or disttibuted under this grant agreement must contain a statement acknowledging funding by the California Department of Conservation, Division of Recycling. The Grantee will ensure that funding received for this project through this grant agreement will be acknowledged in any resulting publicity. ANY CHANGES TO THE SCOPE OF WORK MUST HAVE PRIOR APPROVAL BY THE GRANT MANAGER Page II 1/jq DEPARTMENT OF CONSERVATION. DIVISION OF RECYCLING CITY OF CHULA VISTA GRANT NUMBER 5095.227 EXHIBIT B BUDGET Project Title: City of Chula Vistl Cwbside Initiative Pilot Program Grant Flmds Personnel Community Service Officer (1.000 hr.C1! S28.040 Del" hr) S 28.040 Benefits I1il 32% 8.973 Subtotal S 37.013 Operating Expenses Printine:. Advenisine: and SUDClies S 2.87~ Subtotal S 2.874 I GRAND TOTAL [0 39.887 ~ ANY CHANGES TO THE BUDGET MUST HAVE PRIOR APPROVAL BY THE GRANT MANAGER Page 12 1/j/J DEPARTMENT OF CONSERVATION - DIVISION OF RECYCLING CITY OF CHULA VISTA GRANT NUMBER 5095-227 EXHIBIT C IMPLEMENTATION SCHEDULE Project Title: City of Chula Vista Curbside Initiative Pilot Program Project Term: April 1. 1996 through September 30. 1997 TASK TERM DevelOD Baseline Curbside Scavenlrine: Data for Evaluation Mav - Julv 1996 {)e\'elop Neighborhood WalCh Curbside Scavenging Public Education and June 1996 Reoortine: Pro= MaIerials Deve10D Public Ouueach Ma1erial Desi2I\S Submit Documentation of Approval for 1000 Hours of Anti-scavenging Law Enforcement [ntef';ew Communitv Service Officer Candidates Submit Mav Baseline Curbside Initiative Starus Reoon June 10. 1996 Train Rec\'clingJRefuse Truck Drivers Julv 1996 Submit June Baseline Curbside Initiative StatuS Reoon Julv 10. 1996 Be2in Enforcement AulmSt 1996 Be2in Advenisine: Camoaie:n Bellin Council Broadcasts Place Newsoaoer Announcement Distribute Direct Mail Insens Submit Julv Baseline Curbside Initiative Starus Reoon An,"'<I 10. 1996 Submit Au2USI Curbside Initiative Starus RClYln -~mber 10.1996 Submit ber Curbside Initiative SwuS Reoon October 10. 1996 Submit October Curbside Initiative Starus ReDOn N~ber 10. 1996 Submit November Curbside Initiative Starus R;Mn De<:.m....r 10. 1996 Submit December Curbside Initiative Status Reoon Januarv 10. 1997 Page 13 1/ dJJ DEPARTMENT OF CONSERVATION - DMSION OF RECYCLING CITY OF CHULA VISTA GRANT NUMBER 5095-227 TASK TERM Submit Januarv Curbside Initiative Status R:etIOrt Februarv 10. 1997 Submit Februarv Cwbside Initiative StatusR:etlOrt March 10. 1997 Submit March Curbside Initiative Status ReDOn Amil 10. 1997 Submit Amil Curbside Initiative Status Remrt Mav 10.1997 Submit Mav Curbside Initiative Status Reoort June 10. 1997 Submit June Cwbside Initiative Status Reoort Julv 10. 1997 Submit Julv Cwbside Initiative S~Reoort 10. 1997 Submit Draft Final ReDort 15.1997 Submit Final Reoort 30. 1997 Grant Tennination ber 30. 1997 ANY CHANGES TO TIlE IMPLEMENTATION SCHEDULE MUST HAVE PRIOR APPROVAL BY TIlE GRANT MANAGER Page 14 1; d.~ ~gvARnIENTOP WNSDVATlON E\.IIIBIT n (I RB"IIH 1'\111\ 11\ I. "I \ II " lU.I'( II{ 1 ( 1 n 01 ( III I. \ \ 1....1 \ Please complete all applicable sections of this reporr. Attach additiooal sheets of paper as necessary. Status repons are due on the 10th of each month, as detailed in the implementation schedule. Month Reported: SECTION A Yes No Is the Curbside Initiative Project on schedule as listed in the Implementation Schedule? Is the Curbside Initiative Proiect DrolZTessinll within the aDProved budllet? Are anv es in the Proiect Director or Proiect ~ scheQ111..n? If you answered no to either of the first two questions above in SECTION A., use the Comments box below to provide a complete description of all deviations ftom the approved Implementation Schedule and Budget and what actions are proposed for corrections. If a change in the Project Director or Project Manager is scheduled, provide the name, phone number, and fax number of the new Project Director and/or Project Manager. SECTION A - Comments SECTION B Provide a complete description of all activities conducted in the past month. SECTION C Provide a complete description of all activities scheduled in the next 60 days. SECTION D Provide a complete description of all difficulties or special problems encountered and corrective actions taken. 11d-J SECflON E Please complete all applicable data lines as accurately as possible. Applicable data items are based on the Department's Tel hone Surv rior to the Curbside Initiative. Curbside Scavenging Enforcement Data Citizen Scaven . orts Received Repeat Offender Convictions (Detail Number of Convictions in Comments Section) Recvclable Volumes Confiscated from SU5 ected Scaven ers Q Aluminum Q Glass Q Plastic PETE QNews er Q Cardboard Q Other SECflON E - Comments 1/JY SECTION F Curbside Program Statistical Data I Month -- -- - - - - -- - - - - - ~ - - - - -- ~ ~- ~ . - - - - ., - - - - _____ - _. __ ~_. _u ~. - . . - ---- ----- - ---------- - - - - - - - -- , ~-_._-~:-=-~:~~.:~ .: ~ no ~ -- -- ~-_ ~---~- ---- -- - - - - -:--- \--~:__.:;-- - - - - - - - ... ~_~-~~~:-=::..-:~~-;;~.;..-~;.=:;--:~.~~-= __"..:..' - t. ... __-_~: Curbside Recyclable Materials Tonnage Tonnage CoHected CoHec:ted and Revenue Received per Ton o Alwninum o Scran Aluminum/Other Metal o Tin/Steel o Glass o Plastic PETE o Plastic HDPE (natural) o Plastic HDPE (colored) o Other Plastic ::J NewsDaper ::1 Cardboard C1 ~ed Waste Paper ::J White Office Paper o Mall1lZines C1 Phone Books o Other (snecifv) SECTION G - General Comments 1'/)~ Revenue Received per Ton $ Non-Exclusive License Agreement This Agreement is entered into by and between the State of California, Department of Conservation ("The Department") an.~ ("licensee"), and is eITective upon the date it is executed by both the Department and licensee. The Department has adopted and is using the "swirling arrow" trademark shown above and is the registered owner of the licensed mark. Licensee is a nonprofit organization/other description of Licensee. Licensee desires to usqtl1eliQe~~q.iil'!rk to promote public awareness of the need for beverage coritiWJet.!,~Qyatp.g~JIQll.1!.s:.usil1gAjn .advertisements for its recycling business. I' . ~;i..;.>"",'i." ;::,:,:,:,:" , -:"- ,-," -':',"; ,-'. -:-'- , ; - , : - -, /::>.:.,..::::::;:;\~~!:~::~:~E~;~!:;~:;~:;::::/ .;A~:\;:::!::::;:::-~::<:"::'_::-' ,"-' ,. THEREFORE, in copsi(i@jlidTI of;tl($wVtualpt'(jwiSescontained herein, it is agreed that: ri.:...... ..:.................. ............. ..... ... n_, o. 1. During the termonl1JsJicen.i;g;tl1~f)~:Partrri(\J1tg!'ants to licensee a non- transferable arldnOh~excluslvelicetiS€louse the.Ii.censed mark in the manner ..'.'.......... .... .. ....,..".,...............-,....-....'., .', ....."..... ......--_.....-........ .... .....-.......--.--.-..--............... ......--.......--'... set forth in pait~~GI1:3onm~~~i~i~~'I.:.;\ ':.':..' ........ ..... .. 2. The term of this.~g["!~~rnenl i$JQf.ap~ri()~dr5year:$frorri the eITective date this Agreement [or until LicenseciiiiiOIOhgcr a:nonprout orgcmiziltion/other description of Licensee, whic.hever is earEer). 1/d-& I , 3. The Licensee shall only use the licensed mark in connection with the following services [products]: <.".;:.:.; Licensee. and alTtpe.g964WiUUit~.~?v?en$g;aW'~f~generated thereby. shall inure to the ben~.fit()f~heD0P~r~w~lit. ~;1;@c\\ '., .,-. '0:::: ... ,...,.. :,'c. .... ;:::,;":::::'(/,:;;'::;:::::)::./ ::-::t::- t:f: :::::::::\:.':\:0:,;(\"_:,':,. <_:':.:.:.: ;.~.:. ,.\:.::,;.::::::::::::::.::::<::,,". 5::\', .. ',' ::;':::;:';:;:::-::::~;;;;:;:,::.:;::;::::::::::::::::::./ :,:':,:::::,:-,'-',} .l\~: ~ ,w", '. :-.:::...-;'.::.. '.:':' \/::t::::::::::t::::\:k\::;:\t:-:','::;::::: (l5~., ~ ;}\;: rfic.. TENsEEJ...... ~, ....... ......"........f.:=.::.';;:.. ~:.,..,<:~::~~::::::::::;:::~::::::;:::::-~::::;:::::::v:,:r:: -".', LlCENSOR: ,...._",:;.:,,-:.:.>:..,'...... "<::::':::::::;:::::::::"':;'.:',:,. ';f\- :t:::~:t::::: ::.:' ::'):::..:..:..}'.:::~.:W.M\WA+}:.:~n:;~~ . . ..... ................ . STATE OF CALIFORNIA. DEPARTMENT OF CONSERVATION By: Its: By Its: Dated: .. --- Dated: '1/d-r Resource Conservation Commission -4- Julv 10. 1995 parking and busing into the events. Commissioner Hall stated that with this, she could vote in favor of the adequacy of the EIR. Motion/Second Carried (Hall/Burrascano)( 4-1 Marquez opposed) to accept the adequacy of EIR- 95-03 subject to the inclusion of mitigation measures requiring the establishment of a transit line from an appropriate transit facility (e.g. the closest trolley station) and the providing of a mass transit type of transportation from remote parking locations. Motion/Second (Marquez/Hall) (1-4, Marquez in favor) to recommend that serious consideration be given to whether this use is appropriate for that part of the city, to the possibility of increasing crime and impacts to nearby residents, and that the alternative amphitheater site at the Bayfront be given consideration. Motion failed. 3. Scavenl!:inl!: Grant Annlication Conservation Coordinator Michael Meacham stated that this item deals with an opportunity to request funds from the Department of Conservation, Division of Recycling, for a new program. Mr. Meacham noted that recent decreases in collection fees had resulted from successful curbside recycling efforts, but noted that due to the increased value of recyclable products (e.g. newspaper and aluminum cans), theft of curbside products has been occurring. As a result, funds will be requested to address the problem; monies will include overtime for community service officers in order to monitor this situation, which occurs largely between 4:00 a.m. and 8:00 a.m. Mr. Meacham stated that late night patrol officers are already provided with a grid of the city and where recyclables are collected on certain days. He further noted that Laidlaw keeps an eye out for scavengers, but that the key is the ability to confiscate the materials found when scavengers are caught. A computer is also being requested in order to keep track of repeat offenders and make other cities aware of them as well. Mr. Meacham stated that Laidlaw would be responsible for collection and property documentation, while his role would be to oversee the program. Commissioner Marquez asked if this problem is widespread; Mr. Meacham stated that with the current high value of the products, theft is occurring everywhere. He asked that the commission approve the request for up to $50,000.00 with a statement of support, although he stated that he anticipated the City would more likely be eligible for a grant in the range of $8,000.00 to $15,000.00. Members discussed situations in which they had seen strange trucks picking up recyclables. Mr. Meacham further reviewed the numbers involved monetarily, as well as current efforts to address the problem. MSUC (Burrascano/HalI) (5-0) to recommend that the scavenging grant application be approved and forwarded. MSUC (Marquez/Burrascano)(5-0) to recommend that recycling pick-up occur no sooner than 7:00 a.m. in order to encourage morning placement of recycling products and reduce theft opportunities. 1/# Jtesource Conservation Cnmmi~ion -5- .~ Mr. Meacham then reviewed the status of a variety of other current programs aimed at reducing products in the waste stream. 4. Review of Ne2ative Declaration 15-95-12. St. John's Enisconal Church MSUC (Hallrrhornburg) (5-0) to recommend approval of IS-95-12. In response to questions by commissioners Marquez and Clark, Environmental Review Coordinator Doug Reid clarified the number of students, as well as plans for the drainage channel. Commissioner Marquez stated that she would like to recommend that the applicants ensure that DOn-water-invasive plantings be utilized near the channel. S. Review of Ne28tive Declaration 15-94-11. 4th Ave. Street Imnrovements Commissioner Hall commented on the proximity of some of the houses to the new street. Mr. Reid stated in response to questions that some houses would become non-conforming with respect to setbacks, and that he believed that one property would have to be purchased. MSUC (Clark/Burrascano) (5-0) to recommend approval of IS-94-11. Commissioner Hall asked what would happen if an owner did not want the improvements; Mr. Reid responded that they would not be forced to participate. He added that if a property was condemned as a result of the improvements, the Initial Study would be amended and would be brought back to the Resource Conservation Commission. 1. Election of Officers After discussion, it was suggested that elections should wait until commissioner Fisher was present. MSUC (Burrascano/Clark) (5-0) to postpone election of officers to the next meeting when all commissioners would be present. REVIEW OF PLANNING COMMISSION AGENDA. MEETING OF ruLY 12. 1995 Mr. Reid advised that the Trinity Adult Residential Care facility, PCC-95-24, was scheduled for the upcoming Planning Commission meeting of July 12th. STAFF COMMENTS Mr. Reid provided members with information on the RCC's budget; he noted that it no longer provides for outside secretarial services. Members questioned how other committee's obtained such services; Mr. Reid responded that most utilized staff people. Chair Burrascano stated that she had spoken with Planning Director Robert Leiter, who had indicated that if funds were not available in the budget, a staff person could be utilized (other than Mr. Reid) for minutes. Mr. Reid stated that printing and postage costs had increased substantially. ~hJq COUNCIL AGENDA STATEMENT Item Meeting Date 5/21/96 Resolution / &'~4..ccepting the CA Integrated Waste Management Board Used Oil Recycling Block Grant # UBG4-95-1407-37 for $79,963 to continue Used Oil Recycling and Education Programs for Fiscal Year 1996-1997 and Authorizing the City Manager to Execute all Documents in Conjunction with Administering the Grant. SUBMITTED BY: Conservation coordinat~ ~> REVIEWED BY: City Manager~ \)'IiX~\\4/5ths Vote: Yes ~ NolJ BACKGROUND: The California Used ~il Enhancement Act requires the collection of four cents for every quart of lubricating oil sold, transferred and imported into California from oil manufacturers. Chula Vista consumers pay four cents per quart into the fund when they purchase oil. The Act mandates the California Integrated Waste Management Board (CIWMB) use a portion of the funds to provide block grants to local governments for used oil programs that encourage recycling. Funds are distributed by a formula based on population and the Cities award is $6,602 more than what was projected by the state at the time of application. d ITEM TITLE: The grants are funding used oil public education and recycling programs designed to reduce or eliminate the contamination of the local watershed caused by improper disposal of used oil. This block grant would provide $79,963 of additional funds to allow the City to continue the primary components of the existing programs into the 1996/97 fiscal year. RECOMMENDATION: Approve the resolutions, authorizing the acceptance and execution of the grant as requested by the state. BOARD/COMMISSIONS RECOMMENDATION: The Resource Conservation Commission (RCC) voted unanimously to recommended that City Council approve the application at their October 23, 1995 meeting. A copy of the minutes is attached. DISCUSSION: This application is a "regional application" that includes the Cities of Chula Vista, Imperial Beach and National City. The primary purpose of this block grant is to provide $79,963 to continue technical assistance and provide new supplies for the thirty (30) state certified used oil recycling centers established under the previous grants. This grant application will also fund the state required public education program to promote the drop-off centers and the used oil curbside collection program that will begin this year. That public education program 2// Page 2, Item Meeting Date 5/21/ 96 will allow the City to continue advertising, portable displays, point of purchase displays, the used oil hotline, billing inserts and other promotional activities. The grant also provides funds for overhead costs such as appropriate Administration and Finance Department support services. No local matching funds are required by the State and none are recommended. FISCAL IMPACT: The grant will provide $79,963 to implement used oil recycling education and promotion. If approved the full grant allocation will be included in the budget request for fiscal year 1996/97. There is no additional fiscal impact as a result of the recommended action to adopt the attached resolution. The program does not require matching funds. The grant provides funds to cover direct and overhead costs required by the program's implementation. mtm:used oil a:blkgnt96.cas Attachments f/J- Line Item Appropriations Used Oil Block Grant # UBG4-95-1407-37 270-2715 Personnel: (5105,5143,5145) Overhead: Conservation Coordinator, Finance, Clerical Support(5291) Contracts: Hotline, Service of Centers: (5298) Equipment: (5568) Materials and Supplies: (5398) Total 8',3 11,000 8,000 47,500 1,000 12,463 $79,963 STATE OF STANDARD AGREEMENT- APPROVED BY THE ATTORNEY GENERAL CONTAACT NUMBER AM NO STD 2 iREV 5-91) UBG4-95-1407 TAXPAYER'S FEDERAl EMPLOYER IDENTIFICATION NUMBER THIS AGREEMENT. made and entered into this 30th day of June. 1996. in the State of California. by and between State of California. through its duly elected or appointed, qualified and acting TITLE OF OFFICER ACTING FOR STATE Executive Director CONTRACTOR'S NAME i City of Chula Vista ' hereafter called IiIe Contractor. WITNESSETH: That the Contractor for and in consideration of the covenants, conditions, agreements, and stipulations of the State hereinafter expressed, does hereby agree to furnish to the State services and materials as follows: (Set forth service to be rendered by Contractor, anwunt to be paid Contractor, lime for performance or completion, anti attach plans and specifications, if any.) AGENCY California Integrated Waste Management Board . hereafter called the State, and Contractor agrees to undertake and complete all necessary tasks to implement a local used oil collection program as authorized by Public Resources Code 48690 and 48691. At a minimum. the contractor's used oil collection program must: J. Include a public education component that informs the public of locally available used oil recycling opponunities, AND 2. Em,ur~ the contractor's Block Grant eligibility requirements are met by ensuring that either of the criteria below or a comhination of the two are achieved and maintained during the grant term so that all residents are served: a) Provides used oil curbside collection for all residents of the city including multi-family residences: or b) ensures that at least one certified used oil collection center is available for every 100,000 residents not served by curhside used nil collection. The term of the agreemem will be 12 months. commencing June 30.1996 and terminating June 30.1997. Comractor will be paid in accordance with the auached Terms and Conditions and Administrative Procedures and Requirements. The State will withhold 10% of the total grant award until completion of all work and O(her requirements to the satisfication of the State in accordance with this contrac!. Contractor agree~ 10 abide by all legal and administrative requirements for this gram as described in the Terms and Conditions and Administative Procedures and Requirements. excluding the paragraph entitled. "Entire Agreement" to read. "This agreement supercedes all prior agreements. oral or written. made with respect to the subject hereof." These documents are attached to this agreement and incorporated by reference. COr<TINUED Or< SHEETS. EACH BEARING NAME OF CONTRACTOR AND CONTRACT NUMBER. The provisions on the reverse side hereof cOnstitule a part of this agreement. IN WITNESS WHEREOF, this agreement has been executed by the parties herem, upon the date firs! above written. STATE OF CALIFORNIA CONTRACTOR AGENCY CONTRACTOR (If other Ihll an IIIdj~iduat. stale whelher a corporation. par'oe~hjp. elc.) California Integrated Waste Management Board City of Chula Vista BY (AUTHORIZED SIGNATURE) BY (AUTHORIZED SIGNATURE) ,. )> PRINTED NAME OF PERSON SIGNING PRINTED NAME AND TITLE OF PERSON SIGNING Ralph E. Chandler TITLf ADDRESS Executive Director AMOUNT ENCUMBERED BY THIS PROGRAM/CATEGORY /CODE AND TITLE) FUND TITLE Department of General Services DOCUMENT CA Used Oit Recycling Use Only $79,963.00 (OPTIONAL USE) PRIOR AMOUNT ENCUMBERED ITEM rHAPTER ISTATUTE rlSC AL YEAR t"OR THIS CONTRACT $ - 0 - 391O-602-tOO 817 199t 1995/96 TOTAL AMOUNT ENCUMBERED OBJECT OF EXPENDITURE (CODE AND TITLE) TO DATE $79,963.00 tlOO-51843-702 I hereby certify upon my own personal knowledge lhat budgeled funds are available IT.B.A. NO IB.R. NO tur the pt:nod aod purpose of the expendIture staled above. SIGNATIIR[ OF MTOUNTING OFFICER rATE. ,. U CONTRACTOR U STATt: AGENCY U DEPT OF GEN. SER o CONTROLLER f/lf o . rATE OF CALIFORNIA STANDARD AGREEMENT STD2 (REV.S.91) '~:.VERSt'l I. The Contr.tCh)r ag.fI~es to ind~mnif):. def~nd and save hWTnless. the State. its officers. agents wld emplo):ees from an} and all daim> and loss.s accruing or resulting to any and all conlraeler.:. subcontraclors. materialmen, laborers and an) other person, tinn or cOI"pt)ration fumishing or supplying work s.:rvices. materials or supplies in connection with the perfonnance of this contract. and !i'om any and all claims and losses accruing or resulting to any person. finn or corporation who may be injured or damaged by dle Contract in the performance ofthis contract. 2. The Contractor, and rhe agents and employees of Contractor, in the peJ1t)mlance of dIe agreement. sball act in an ind~pendent capacity and not a~ oftlcers or employees or agents of the State of Cali fomi a. . 3. The StaIe may terminate Ihis agreement and be relievlOd of tb.e payment of any consideration to Contractor should Contractor fail t" peI1t:'ml tht;': t.::ovenants ht;':r~in contained aI dle tim~ and in dle numner herein provided. In the event l,t'su,h h:nninaJiL'l1 the Sratl' may proc~ed ",,:ith the work in W1Y manner deemed. proper by the State. The cost to tbe STale >hall ~ deduCTed from allY sum due Ihe Contractor under dlis agreement, and the balance. if any. shall be paid th~ Contr.\Ctdr UPl'H J~manJ_ < \\ lmout tl1C v.-ritten COIhcnt ofth~ State. [hjs agr~em~nt is not assignable by Contractor dther in whole or in par::. .::: T;m.: i<;; ,'f-:h.: .:s~~n~t' in tl11;) agret;'meal_ o '0 .iltt'T:1ti"1l1'f v(]ri~1ti('n i'f rht' tenns of this c.ontTac~ shall he valid unless moor in \\-Titing and signed by the pa!1ie~ he:-t'h.\. and :10 ~md lJnd'.'r~landi\1g or agre-emt'nt nor incorporated herein. shall be binding 011 any ofthe parties hereto_ - Th~ t.::o\1:-oidl:.'ration to he paid Contractor. ~ provided herein. shall be in com~nsation for all of ContraCtor's exp~nses in.urrd ill ule pel1t'rlll""Cc hereof. including ~'U\'el and per diem, unks? othen<ise expressly :;0 pro\'ided. <6-5 RESOLUTION NoJ~9~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING THE CALIFORNIA INTEGRATED WASTE MANAGEMENT BOARD USED OIL RECYCLING BLOCK #UBG4-95-1407-37 FOR $79,963 TO CONTINUE USED OIL RECYCLING AND EDUCATION PROGRAMS FOR FISCAL YEAR 1996-97 AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL DOCUMENTS IN CONJUNCTION WITH ADMINISTERING THE GRANT AND APPROPRIATING FUNDS THEREFOR WHEREAS, the California Used oil Recycling Enhancement Act requires the collection of four cents for every quart of lubricating oil sold, transferred and imported into California from oil manufacturers; and WHEREAS, the Act mandates the California Integrated Waste Management Board use a portion of the funds to provide block grants to local governments for used oil programs that encourage recycling; and WHEREAS, funds are distributed by a formula based on population and the cities award is $6,602 more than was projected by the state at the time of application; and WHEREAS, the grants are funding used oil public education and recycling programs designed to reduce or eliminate the contamination of the local watershed caused by improper disposal of used oil; and WHEREAS, this block grant will provide $79,963 of additional funds to allow the City to continue the primary components of the existing program into the 1996/97 fiscal year. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula vista accepts the California Integrated Waste Management Board Used oil Recycling Block Grant #UBG4-95-1407-37 for $79,963 to continue Used oil Recycling and Education Programs for Fiscal Year 1996-97, subject to appropriation of the funds required by the agreement to be spent in advance during the 1996-97 budget cycle. BE IT FURTHER RESOLVED that the Mayor, or her designee, is hereby authorized and empowered to execute in the name of the City of Chula vista all documents in conjunction with administering the grant. ~o BE IT FURTHER RESOLVED that staff is directed to place the required appropriation of funds in the 1996-97 budget for subsequent Council approval, as follows: $79,963 is hereby appropriated from the General Fund to Account 270-2715 as follows: Personnel Overhead: Conservation Coordinator, Finance, Clerical support Contracts: Hotline, Service of Centers Equipment Materials and Supplies $11,000 8,000 47,500 1,000 12.463 $79,963* *When the grant funds are received, the General Fund is to be reimbursed. Presented by Approved as to form by, , City Michael Meacham, Conservation Coordinator C:\rs\usedoil.4 i /{., ~,) ..':-::;:; ~I :::;:::;:; .,...... Ili[~::fuf@M#!::m::llill!J!I:11 RECYCLE USED OIL Used Oil Recycling Block Grant Fourth Cycle Administrative Procedures and Requirements ... -. .. - - - . .. . . ~-,1 USED OIL RECYCLING BLOCK GRANT PROGRAM Fourth Cycle - 1996197 Administrative Procedures and Requirements INTRODUCTION These Administrative Procedures and Requirements set forth the policies and procedure$ for administering the Block Grant made through the Califomia Integrated Waste Management Board's (CIWMB) Used Oil Grant Program. This document, which is incorporated by reference into the grant agreement, describes the contract procedures, administrative reporting requirements, and instructions for obtaining payment of the grant. Direct any questions regarding this document or the grant agreement to your CIWMB Project Manager or Darlene Falconer at (916) 255-2657. Mailing address is: Califomia Integratad Waste Management Board, 8800 Cal Canter Drive, Mail Station 4, Sacramento, CA 95826. PROGRAMS Local used oil collection programs are to be developed by the grantee, and It Is the re$ponsibility of the grantee to ensure all costs are appropriate. All costs must be directly related to the used oil collection program. A. ELIGIBLE COSTS Block Grant funding is for the maintenance of existing programs or the establishment of new programs that address the proper management of used lubricating oil. Grant awards will only fund activities begun on or after June 30, 1996 and completed by June 30, 1997. Examples of the types of activities eligible for funding are listed below: . Expansion or maintenance of an existing local used oil collection program . Establishment or expansion of regularly scheduled or OIH:IIII curbside collection of used oil . Construction or improvement of permanent facilities for the collection of used oil (if other hazardous waste is collected at the facility, only the portion relating to used oil will be funded) . Public education materials addressing the proper collection or disposal of used oil. . Assistance to a private entity for initial or ongoing expenses associated with offering free collection of used lubricating oil to the public . Purchase of equipment and supplies for collection of used oil (e.g., curbside containers. 011 test kits) . Personnel expenses directly related to the local used oil collection program . Travel expenses. directly rel!rted to the Implementation of a local ~ .oil collection program. Mileage expenses may not exceed $0.24 per mile. Per diem may not exceed $79.00 plus tax per night for lodging, and meal allowances may not exceed $5.50 for breakfast, $9.50 for lunch, and $17.00 for dinner during a trip of 24 hours or longer. . 2 g/F . . . . . . B. Used oil disposal costs Stonn drain stencilling (grant will fund up to 30% of costs) The used oil expenses of a HHW mobile, pennanent, or one-day event collection program Used oil collection facilities at marinas Staff training directly related to the implementation of the local used oil collection program ELIGIBLE COSTS REQUIRING PRE-APPROVAL Grantees must receive pre-approval before making expenditures listed below. Please submit requests in writing to your CIWMB Project Manager explaining the cost, providing bids or estimates (when appropriate). and justifying the need. Failure to request approval may result in payment not being made. . All public education or advertising materials. Including materials previously approved (e.g.. flyers, posters, mailers, videos, TV and radio ICripts, customized premiums). Grantees must submit a final draft of these materials to their CIWMB project Manager for approval prior to production. At least 75% of a public aducation/promotion piece must be devoted to used oil to be considered for full funding. Please allow five working days to review public education material. . Total staffing costs exceeding 50% of the total grant award or $75.000, whIcheVer is less. . Any video production costs exceeding $5.000. . Costs for oil filter-related equipment and/or oil filter collection costs exoeeding 5% of the total grant award. . Purchase or leasing of any vehicle or trailer. . Used oil collection tanks exceeding 550 gallons. . Financial assistance exoeeding $2.500 for a privately-owned collection center.. . Total costs for transportation and hauling of contaminated lubricating oil exoeeding $1,000 during tha grant tenn. . Fonnula to be used by the Grantee to determine reimbursement for the used oil portion of a mobile. temporary. or pennanent HHW eventlfacility. . Purchase of rerefined lubricating oil C. INEUGIBLE COSTS Any cost no1 directly're1at8d 10 the-:i1.p1errieritation' Of aJocaT used 011 c:OIIedion priigramwlll not be funded. These include but are not limited to the following costs: . Costs for services rendered or goods purchased prior to June 30,1996 or after June 30.1997. An Invoice dated after June 30. 1997 can be honorecIlf It clearly shows the aervices were rendered during the grant ter 3 g'f . . Overhead . Any portion of a program funded by another CIWMB loan or grant program . Overtime costs (except for local govemment staffing during evening or weekend events when law or labor contracts REQUIRE overtime compensation) . Oil spill remediation . Enforcement activities . Computer hardware or software . Office supplies . Underground storage tanks . Feasibility or planning studies . Programs clear1y not cost effective . Travel expenses not directly related to the implementation of the used oil program. . Any food or beverages (e.g., as part of meetings, wor1<shops, training) except as part of per diem as described above . Equipment or other materials that are not primarily used to implement the used oil program . Purchase or retrofitting of vehicles for any activities other than for curbside used oil collection . Financial assistance to a collection center that does not accept oil from the public for free . Staff training not directly related to the implementation of the local used oil collection program . Costs related to industrial generators PUBLICITY AND ACKNOWLEDGEMENT . The Grantee must acknowledge the Califomia Integrated Waste Management Board's funding on all promotional materials and equipment funded by this agreement Vehicles or other large pieces of equipment purchased with grant funds must have a sign attached indicating it was purchased with CIWMB grant funds and preferably using the "used oil drop" logo. Such signs are available from the CIWMB at no cost The Grantee, with their CIWMB Grant Manager's approval, may develop their own sign. . . .' . .. - -- - Public education or promotional materials must list all grant supported collection centers within the jurisdiction or indicate a telephone number for information on the naarast center. 4 P,/b . PROGRESS REPORTS The Grantee must submit a Progress Report with each Payment Request. If a Pavment RllCluaat haa not been submitted ~ November 15. 1998. the Grant.. muat submit a PI'OS'..... Reoon by December 11.1998 covering the first five (5) months of the grant term. The CIWMB Project Manager may request a Progress Report from a Grantee at any time, and has authority to immediately suspend or terminate the agreement if progress is unsatisfactory. Grantees should use a format similar to the attached sample progress report. Each Progress Report shall include the following information: . Describe in detail all work completed since the previous Progress Report. Please arrange by the categories required for the Payment Requests. Discuss why the work was considered an appropriate part of a local used oil collection program, list the results achieved, and problems or other special situations encountered. . A brief discussion of anticipated accomplishments for the next reporting period. . Attach five (5) copies of all final public education, advertising, or promotional materials purchased end/or distributed with grant funds. GRANT PAYMENTS A complete Payment Request must include the following documents: 1. A completed Payment Request Form signed by the individual Nlmed by the resolution; 2. An Itemization of expenditures using the categories described in Section B "Submltlal of Payment Requests;" 3. A Personnel Expenditure Summary (if applicable) explaining time spent on used oil collection programs. See attached sample. 4. Documentation supporting all claimed expenditures (e.g.,invoices, receipts, cancelled checks) A. GENERAL GUIDELINES . Payment will be made to the Grantee only. It is the responsibility of the Grantee to pay all contractors and sulx:ot .tractors for purchased goods and 1eI'Vices. . The State shall withhold ten percent (10%) of the total Grant Nard until all conditions stipulated in the agreement have been satisfied. . Grantees who have not fully met the Block Grant aligibillty requirements described in Public Resource~ ~ 548691 ("conditional eligibility") ~ "!ve.up ~_ 50~ of each Payment Request withheld depending upon the CrM.1~ Project Mlillllgel's -'YsiI of the Grantee's progress toward meeting the eligibility requirements. . Requests for edvance payment must be submitlBd in WI1ting to the CIWMB Project Manager and demonstrate the Grantee's need for edvance payment Suggested documentation Indudes purchase orders, bids, etc. 5 g -- /) . B. SUBMITTAL OF PAYMENT REQUESTS Payment Requests must include an itemization of all expenses and be supported by documentation as described below. Grantees are encouraged to use the format OUUined in the attached sample itemization. . Curbside Collection - Include any costs for establishing or continuing a curbside used oil collection program. . Certlfi.d Collection Center(s) - These expenses include establishing or enhancing collection services at a certified used 011 collection center, such as collection tanks. testing equipment, disposal costs. city/county staff time. or contractor/consultent costs. . C.rtlfied Center Compliance - Expenses for site inspection, training of site personnel. and report preparation. . Non~.rtlfied Collection C.nt.r(s) - Include expenses for establishing or enhancing collection services at any non-certlfied used oil collection site or the used 011 portion of a permanent household hazardous waste site. These expenses may Include collection tanks. testing equipment, disposal costs, staff time, etc. pI..... noN thllt thes. eenm". must aCC8Dt used 011 from the cubllc lit no chame. . T.mporarylMobll. Collection -Include expenses only for the used oil portion of household hazardous waste collection events or mobile programs and clearty show how these costs were determined. . School Education Program(a). Include expenses for developing and implementing used oil school education and awareness programs. . Public Education - Any expense for the development, printing. and distribution of public education materials that encourage the appropriate disposal of used 011. Include costs for promoting used oil collection centers and curbside programs. . Other Costa - Include any other costs that cannot be assigned to other budget categories. C. SUPPORTING DOCUMENTATION Supporting documentation must be Included with the payment request (i.e., legible copies of receipts, invoices. cancelled checks. and personnel expenditure summary). Supporting documents must contain sutliclent Information to establish that purchases made or costs incurred are eligible for payment Purchase orders will not be acoeoted as ao.pl'DDriate ,w" 'mentation of l11(pAnses. . -Personnet 6Af)&I,d.h",~1T1DDt bv ,,^,"I...,.necto....,b.u::til ti.IRJ ..,vllt1Jl'1"'grant~t.d activities. This should be done using the attached .Personnel Expenditure Summary" form or some other format that contains the following information: . expenditures should be broken out by the cIaAiIication(s) of the employee(s). source document (e.g. timesheet, date), date worked. hourty wagelrate (including benefits), and number of hours worked, and grant related tasks performed. 6 ~/ /c:L . . Total personnel expense claimed (hours X rate), and by task. Please complete for each employee. . The form must be signed by the appropriate supervisor. If this form is submitted for contractor personnel, it must be signed by a supervisor at the contracted entity and signed by the person whose signature appears on the Payment Request Form. D. RELEASE OF FUNDS Payment Requests will be reviewed and forwarded for approval of payment when the Grentee has submitted all required Progress Reports and the CIWMB Project Manager has determined them tobe satisfactory. Grentees can typically expect payment within 45 calendar days from the date a Payment Request is approved by the CIWMB Project Manager. The CIWMB Project Manager will release any funds withheld due to . Grantee's .conditional eligibility" with the first Payment Request processed after the Grantee has fully met all eligibility requirements. The CIWMB Project Manager will release the ten percent (10%) retention upon receipt and approval of the Final Report and final Payment Request. GRANT CLOSURE The Final Report must be received by the CIWMB Project Manager by August 15, 1997. If requested, the Grantee shall make an oral presentation to the Califomia Integrated Waste Management Board. Format instructions for the Final Report will be sent to the grantees during April, 1997. The grant will be closed when the Final Report and Final Payment Request are submitted and it is determined that all required tasks of the grant have been completed. It Is mandatory that the Final Report be approved before the Final Payment Request is approved and forwarded to the S1ate Controller's Office for payment. AUDIT REQUIREMENTS This grant is subject to audit. The Grantee is responsible for mainteining source documents substantiating the expenditures claimed for at least three (3) years after termination of the grant (June 30, 2000), and must make them available at the time of an audit. Records relating to the implemented program include, but are not limited to: expenditure ledger, payrotl register entries, time logs, paid warrants, contracts,. change orders, invoices, and cancelled checks. FAILURE TO COMPLY Failure to comply with the reporting requirements specified above may result in tennination of this agreement or suspension of any or all outstanding Payment Requests until such time as the Grantee has satisfactorily completed the reporting provisions. EXCEPTJONS Any exception to these Administrative Procedures must be reauested in writina. The request will be reviewed and a determination made by the CIWMB grant manager within ten (10) working days from the date of receipt. 7 g//3 Sample Progress Report CIlY OF GRANTOILLE CONTRACT NO. UBG4-94-123-45 PROGRESS REPORT JUNE 30 - OCTOBER 5, 1996 CERTIFIED COLLECTION CENTERS The City has a population of 538,100 and currently has three certified used 011 collection centers and needs two more to meet the eligibility requirements for this Block Grant In an effort to obtain two more centers, we established a list of 28 businesses as possible contacts (see attached list). Every business on the list has been contacted and an appointment was made to meet with the owner/manager If possible. Only three businesses were unwilling to meet with us, Jesse's Maxi-Lube, Acme Lube and Oil, and Sam's Service Station. During on-slte meetings we gave each business the CIWMB packet of Information on certification and explained how we'd assist with collection costs and would like them to distribute the collection containers to the public. Since those meetings ABC Oil has agreed to become a certified center and submitted their application to the CIWMB. We are still working with the other companies and hope to have two or three more certified by the end of the grant term. In trying to encourage businesses to become certified centers and to help centers already certified to continue in the program, we are offering financial assistance in the form of paying for the collection and disposal of the used oil, and providing drums to collect 011 filters. To date we have provided used 011 collection twice for the Chief Auto Parts and the Jiffy Lube for a total of four coUectiona. We will continue providing this service and extend It to other businesses as they become certified collection centers. PUBLIC EDUCATION The City of Grantoille's public education program consists of developing and printing a three-fold brochure; purchase and distribution of used oil collection containers; display benners; and promotional Items. Since 63 percent of the City's population is Hispanic, we determined that the three-fold brochure should target the Hispanic residents. We have completed a first draft of the brochure and have enclosed a copy for CIWMB Used Oil Staff's review. We plan to print the brochures during the next quarter and distribute to certified centers, auto part stores, and City Hall. We also plan to distribute thMe brochures at the local Auto Show in March and at Earth Day in April. An order for 7,000 used 011 collection containers has been placed and should be received by October 15, 1995. The stickers for the containers have been devetoped end printed. Distribution of the containers will begin immediately at the City's used oil collection center end also at the Chief Auto Parts and Jiffy Lube certified collection centers. 8 g_/'f City of Grantoille - Progress Report June 30 - October 5, 1996 Page 2 We had planned to purchase the banners In July, however, the company from which _ _re going to order them suddenly went out of business. We hope to be able to find another company and place the order by November. These benners will be placed over the city's main street and used at public events. We are in the process of reviewing the types of promotional materials available to determine what will be the most appropriate to get our message across to recycle used oil. We want items that will be long lasting and likely to be used frequently so that the message Is _n over and over. We'd like to purchase three different Items and plan to make this purdlase by January 1996. Pleese note .1heLtbi&..SllJDpla is .DIJI.y.JO~"id. . .acDlDmMldedJOtmllt for.Ji!t:DgrllssAeportB end demonstrete the type of Inforrntltlon thet ill required. It mey be eppropriate for Grent_ to provide more deteil depending upon the scope of the progrem or other COMIderetions. 9 _____ 'if., / s . SAMPLE PAYMENT REQUEST ITEMIZATION CITY OF GRANTOILLE CONTRACTNO.UB~12~ PROGRESS REPORT JUNE 30 . OCTOBER 5, 1996 CERTIFIED COLLECTION CENTER(S) "Waste Management Specialist 1- 60 hrs. @ $18.50 hr. & 32% benefits "Waste Management Specialist II - 20 hrs. @ $22.38 hr. & 32% benefits .Clerical - 24 hrs. @ $13.25 hr. & 32% benefits "Used 011 transportation & disposal - 4 pickups @ $50 per pickup Subtotal $1,465 591 420 LW $2,676 PUBLIC EDUCATION "Waste Management Specialist I - 32 hrs. @ $18.50 hr. & 32% benefits -Printing of stickers for used oil containers - 7,000 @ 35j! each. Subtotal $ 781 ~ $3,231 TOTAL EXPENSES $5,907 .Copy of time sheetsltlme logs attached, with used oil grant time highlighted -Copy of invoice attached, claimed expenses are highlighted 10 q~/b California Integrated Waste Management Board Used 011 Grant Program Terms and Conditions Pumose The purpose of this agreement is tD establish the tarms and conditions of the UMd Oil Block Grant Definitions In interpreting this agreement, the following terms will have the meanings given tD them below, unless the context clearly indicates otherwise. A. "Board" will mean the Califomia Integrated Waste Management Board. B. "Executive Director" will mean the Executive Director of the California Integrated Wate Management Board, or hislher designee. C. "State" will mean the State of California, including but not limited tD, the CaHfomia Integrated Waste Management Board and/or Its designated oI'fic:er. D. "Grantee" will mean the recipient of funds pursuant tD this Agreement E. "Program Manager" will mean the Board atatf person responsible for monitoring the grant AwIi1. The Grantee agrees that the Board, the State Controller's 0Ifice and the State Auditor Generars OIIice, or their designated representatives, will have an absolute right of access tD all of the Grantee.s records pertaining tD the agreement tD conduct reviews and/or audits. Grantee's records pertaining tD the egreement, or any part thereof requested, will be made available to the designated auditor(s) upon request for the indicatlld ~ and/or audits. Such records will be retained for at least three (3) years efler expiration of the egreement, or until completion of the action and resolution of all issues which may arise as a result of any litigation, claim. negotiation or audit, whicheYer illater. If an audit reveals the Board funds are not being expended. or have not been expended in accordance with the agreement, the Grantee may be required tD forfeit the unexpended portion of the funds and/or repay the Board for any Improperly expended monies. Druo-Free Workolace Certification The Grantee, by signing this agreement, certifies compliance with Government Code Section 8355 in matters relating tD providing a drug-free wor1cpIace. The Grantee will: A Publish a statement notifying employ_ that unlawful manufacture. distribution. dispensation. pOllession, or use of a controlled iubstance is prohibited and specifying ac:tIona tD be IIIken egalnst empIo) see for violations, as required by Government Code Section 8355(a). B. Establish a Drug-Free Awareness Program as required by Government Code Section 8355(b), tD inform employ_ about all of the following: (a) the dangers of drug abuse In the wortcpIace, (b) the Grantee's policy of maintaining a drug-free workplace, (c) any available counseling, rehabllibofliu., and employee assistance programs, and (d) penalties that may be Imposed upon employees for drug abuse violations. C. 'Provide as ~ulre(f by GciVermTMlnt Code Sectioi18355(c),-ihatiiVelY"___ who works on the proposed grant (a) will receive a copy of the company's drug-frM policy ~b.onent, and (b) wIIlllllree tD abide by the terms of the company's ....... as a condition of ~nllll1! on the grant. The person signing this grant on behalf of the Grantee swears that heIshe ilauthortzed tD legally bind the Grantee tD this certific;ation and makes this certIfic:ation under penalty of peIjUIy under the laws of the State of Califomla. National Labor Relations Ansol'd CeI1Ifiadion The Gr8ntee, by signing this egreement, ..... under penalty of peIjury that no more than one final unappealable finding of conf8n19! of court by a Far.! court has been Issued against the CQI,bactor within the Immedlataly preceding ~ period .......,- of the Gr8ntee's faUure tD comply with an order of a Federal Court which orders the Grantee to comply with an order of the NatIonal Labor ~ Board. _ rfJ1 Used Oil Grant Terms and Conditions Page 2 . Availability of Funds The Board's obligations under this agreement are contingent upon and subject to the availability of funds appropriated for this grant. Payment The Budget states the maximum amount of allowable costs for each of the tasks identified in the Work Statement. The Board will reimburse the Grantee for performing only those services IpeCified in the Work Statement and presented on the payment request. In the event the Grantee's projection of costs indicates a need to revise the Budget, the Grantee will notify the Board within ten (10) working days of the discovery of need for revision. Entire Agreement This agreement supersedes all prior agreements, oral or written, made with respect to the subject hereof and, together with the Attachments hereto, Grantee's application and supplemental information generated pursuant to the grant agreement contains the entire agreement of the parties. Failure to Comolete Proiect Given that the benefit to be derived by the Board from the full compliance by the Grantee with the terms of this grant is the investigation and application of technologies, processes, and devices which support reduction, reuse and/or recycling of wastes, should the Grantee fail to complete the project, the Boerd will only reimburse the Grantee for the work performed under the grant which resulted in either information, a process, usable data, or a partial product which can be used to aid in reduction, reuse and/or recycling of waste as determined by the Program Manager. Communic:ations All official communication from the Grentee to the Board will be directed to the Grantee's assigned Used Oil Grant Program Manager, California Integrated Waste Management Board, 8800 Cal Center Drive, Sacramento, CA 95826. All formal notices required by this agreement will be given in writing and sent by prepaid mall, by personal delivery, or by FAX followed by an original. ConfidentialitylPublic Records The Grantee and the Board understand that each party may come into possession of Information and/or data which may be deemed confidential or proprietary by the person or organization furnishing the information or data. Such information or date may be subject to disclosure under the California Public Records Act, commencing with Government Code Section 6250. The Board agrees not to disclose such information or data furnished by the Grantee and to maintain such information or date as confidential when 10 designated by the Grantee In writing at the time it is furnished to the Board, only to the extent that such information or data Is exempt from disclosure under the California Public Records Act. Publicity and Acknowiedoement The Grantee agrees that it will acknowfedge the Board's support each time projects funded, in whole or in part, by this agreement are publicized in any ~ media, brochures, or other type of promotional material. OwnershiD of Drawin9s Plans and SDACifications. The Board will have separate and independent ownership of all drawings, design plans, specifications, notebooks, tracings, photographs, negatives, reports, findings, recon'llIendations, data and memoranda of every description or any part thereof, paid for In any part with grant funds, and copies thereof will be delivered to the Board upon request. The Board will have the full right to ~ IBid copies in any manner when and where it may determine without any clairn on the part of the Grantee, its vendors or subcontractors to additional compensation. CODvriohts and Trademarks. The Grantee assigns to the Board any and alllntarests and rights to copyright or trademark any material created or. developed nrilh graAt funda. ~ .vaIiQ.IHIAV pertion.<<-tIIe<nation or development of a copyright or trademark is paid for with funds granted by the Boerd. Upon written request by the Grantee the Board may, at the Board's option, give express written consent to the Grantee to retain all or any part of the ownership of these rights. As used herein, "copyrightable materiar Includes all materials which may be copyrighted as noted In TIlle 17, United States Code, Section 102, as follows: 1) Uterary works, 2) musical works, Including any accompanying words, 3) dramatic works, including any accompanying music, <4) pantomimes and choraographic works, 5) pictorial, graphic and sculptural works, 6) motion pictures and other audio viIuaI works, and 7) sound recordings. Ita used herein, "trademarkable materiar means any matarial which may be registered as a trademark, IIIIVice mark or trade name under the California Tredemark Law, cited at BuslnMI and P,ol IlIons Code (B&PC) Sectious104200-14342. "Trademark" Is defined by B&PC Section 1<4207. "Service merk" II defined by B&PC Sec:tion 14206. "Trade name" is defined by B&PC Section 1<4208. f.- / f Used Oil Grant Terms and Conditions Page 3 Patents. The Grantee assigns to the Board all rights, title and Interest In and to each Invention or discovery that may be capable of being patented, that is conceived of or first actually reduced to practice in the course of or under this agreement, or with the use of any grant funds. Upon written request by the Grentee the Board may, at the Board's option, give express written consent to the Grantee to retain all or any part of the ownership of these rights. Successors and Assians The provisions of the agreement will be binding upon and Inure to the benefit of the Board and the Grantee and their respective successors and assigns. Discretionary Termination or Assionment of Agreement The Board will have the right to terminate this agreement at its sole discretion at any time upon 30 days' written notice to the Grantee. In the case of earty termination, a final payment will be made to the Grantee upon receipt of a financial report and Invoices covering costs incurred prior to tennination, and a written report describing all WOIX performed by the Grantee to date of termination. Stoo WOIX Notice Immediately, upon receipt of a written notice to Stop work, the Gr8ntee will cease all woII< under the agreemenl Disoutes If for any reason the Grantee and the Executive Director cannot reach mutual agreement, the Grantee may refer the dispute to the Board for final resolution. Remedies Unless otherwise expressly provided herein, the rights and remedies hereunder are in addition to, and not In limitation of, other rights and remedies under the agreement, at law or In equity, and exercise of one right or remedy will not be deemed a waiver of any other right or remedy. Severabilitv If any provisions of this agreement are found to be unlawful or unenforceable, .uc:h provisions will be voided and severed from this agreement without affecting any other provision of the agreemenl To the full extent, however, that the provisions of such applicable law may be waived, they are hereby waived, to the end that the agreement be deemed to be a valid and binding agreement enforceable In accordance with its terms. Force Maieure Neither the Board nor the Grantee, indllding the Grantee's contractor(s), If any, will be responsible hereunder for any delay, default or nonperformance of this agreement, to the extent that such delay, default or nonperformance is caused by an act of God, weather, accident, labor strike, fire, explosion, riot, war, rebellion, sabotage, or flood, or any other cause beyond the reasonable control of such party. Controllina law All questions concemlng the validity and operation of the agreement and the perfonnance of the obligations imposed upon the parties hereunder will come within the jurisdiction of and be governed by the laws of the State of Califomia. Comoliance The Grantee shall comply fully with all applicable federal, state and local laws, ordinances, ~ulations and permits. The Grantee must provide evidence that all local, state and/or federal permIta, licenses, regillb ..tiurlS, and approvals for the proposed project have been secured and shall maintain compliance with .uc:h requirements throughout the grant period. The Grantee shall ensure that the requirements of the Clilifomia EnvIronmental Quality 1d. are met for any permits or other requirement necessary to cany out the terms of this agreements. Any deviation from these stated requirements will result In non-payment of grant funds. Eouioment and Suoolies Subject to the obligations and conditions set forth In thIa section, title to equipment and supplies acquired under a grantwiU'-+'",," -<:q""itic:ln.D-the GIII~. U& Equipment and supplies shall only be used by the Grantee in the program for which It was 8Cqulred as long as needed, whether or not the program continues to be supported by Board funds. Insurance The Grantee shall obtain, and keep in force for the term of this agreement, and require Its ......baGhn to obtain and keep in force, the following Insurance policies which cover any leis or omissions of the Grantee, or Its employees, engaged In the provision of service specifieclln thIa agreemenl Proof that the foIIowi1Ig insur8nce is In pIKe shall be submitted to the Board prior to the lIWBJ'ding of the granl 1. WoIXer's Compensation Insul'8llC8ln 8CCOI'dsince with the statutory ~unm.ots of the State where the woII< is performed. g-//f Used Oil Grant Terms and Conditions Page 4 . 2. Comprehensive personal injury liability insurance, including coverage of owned, hired and nonowned automobiles. 3. Comprehensive property damage liability insurance, including coverege of owned, hired and nonowned automobiles. 4. Equipment and motor vehicle coverage at a levelsutlicient for raplacement of property acquired under this agreement. 5. Insurance coverage required for program implementation pursuant to Tille 22, Califomia Case of Regulations, Section 66264.147. Hold Harmless A. Grantee agrees to waive all claims and recourse against the State including the right to contribution for loss or damage to persons or property arising from, growing out of or In any way connected with or incident to this agreement. This waiver extends to any loss Incurred due to any product, structure or condition created pursuant to, or as a naault of the grant agreement. B. Grantee agrees to indemnify, hold harmless and defend the State, its ofIiciaJs, oIIioers, agents and employees against any and all claims, demands, damages, coats, expenHI, or liability cost arising out of the activities undertaken, product, structure or condition created pursuant to, or as a naault of this grant agreement. Nondiscrimination Clause (OCP - 2) 1. During the performance of this grant, the Grantee, contractor and Its subcontractors will not deny the granfs benefits to any person on the basis of religion, color, ethnic group identificetion, sex, age, physical or mental disability, nor will they discriminate unlawfully against any employee or applicant for employment because of race, religion, color, national origin, ancestry, physical handicap, mental disability, medical condition, marital status, age or sex. Grantee will ensure that the evaluation and treatment of employees and applicants for employment are free of such discrimination. 2. Grantee will comply with the provisions of the Fair Employment and HOUling Act (Government Code, Section 12900 m..ug.), the regulations promulgated thereunder (Califomia Administrative Code, TItle 2, Section 7285.0 ALag.), the provisions of Article 9.5, Chapter 1, Part 1, Division 3, TItle 2 of the Govemment Code (Government Code, SectIons 11135 - 11139.5) and the regulations or standards adopted by the awarding State agency to implement such article. 3. Grantee and any subcontractors will give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. 4. Grantee will include the nondiscrimination and compliance provisions of this clause In all contracts and subcontracts to perform worK under the grant. ~ ._. _ _ -4'__ Uoed 011 BIodt GroIn!. 1895/96 g/ cJ-P CORRECl'ED MINUTES OF A SCHEDULED REGULAR MEETING Resource Conservation Commission ChuIa Vista, California 6:30 P.M. Monday, October 23, 1995 Conference Room #1 Public Services Building CALL MEETING TO ORDERlROLL CALL: Meeting was called to order at 6:35 P.M. by Vice- Chair Marquez. Present: Commissioners Clark, Hall, Marquez, and Yamada. Fisher arrived late (6:40 P.M.). Excused absence: Burrascano. City Staff present: Barbara Reid. APPROV AI.. OF MINUTES: None. ORAL COMMUNICATIONS: None. NEW BUSINESS: 1. Item #2 was taken out of agenda order. Michael Meacham presented a brief overview of the grant application to the California Integrated Waste Management Board for Used Oil Block Grant of$73,361. A motion was made (HaIIIYamada) to recommend adoption of the resolution approving submittal of the grant; vote: 4-0-1 (Fisher abstained as he arrived too late for the presentation); motion carried. 2. John Bridges, !.any Sward, and June Collins were present to respond to the questions put forth by RCC dated October 20, 1995, regarding the Otay Ranch Village I EIR. . Information was requested regarding a pond in Village I (100 yards south of the mapped area) not included on any maps. The panel noted that they were unsware of the ponds existence and would look into it. . The panel stated that no surveys for turtles or spade-footed toads were conducted in either the Telegraph Canyon Road ponds or the Poggi Canyon marsh. The Commission noted that the survey protocol for the RMT is not adequate for certain species (reptiles and amphibians). Additional techniques (mcluding pitfall traps and drift fences) need to be incorporated. . The panel clarified that survey requirements are spelled out as to specific studies and preservation standards are set. . June Collins will provide the arroyo toad survey to Staff to forward to RCC. . Further information was requested on the rosy boa. . Development of Otay Ranch will be substantially slower than planned if not annexed to the City of Chula Vista. . The concern was expressed that the difference in the numbers oflots permitted on some (Ross property) of non-Otay Ranch parcels, was considerably greater if annexation to ChuIa Vista occurs. . The drainage basins are maintained by the City. 5'/~J Two dozen ways (almost) to reduce scavenging by Jerry Powell Resource Recycling Theft of recyclables is plaguing residential and commercial recycling efforts everywhere. Here are nearly two dozen proven methods to combat scavenging. Prices for most recyclables wiH set all-time records in 1995. Unfortunately. these high prices have lured unscrupulous collectors into the recycling busine", where they steal fiber" metals and other materials set out by gener- ators for other collectors. In particular. scav- enging of old newspapers from residential curbside recycling coJlection routes is hurt- ing program economics in thousands of com- munities. Even states are concerned: The CaJ- ifornia Department of Conservation will award $500,000 in grants for curbside anti- scavenging programs. But not all communities are up in arms about scavenging. The District of Columbia, recently in the news because of its "costly" recycling program. has not enacted an anti- scavenging ordinance. which would prohib- it removal of recyclables by unauthorized in- dividuals or companies. In years past. scavenging was an activity performed primarily by low-income citizen,. Now, in many communities, organized crews with large trucks are scavenging - it is no longer a small.time way to make a few bucks on which to get by. Because of the immensity of the problem, municipal officials and private collectors are using a variety of techniques to combat scav- enging. We offer a summary. Tighten up your ordinance A community's anti-scavenging ordinance may not provide full legal ammunition to stop the theft problem. The legal framework should be reviewed and tightened up as needed. Pay for enforcement Controlling scavenging doesn't rank high on a police commander's agenda. However, there are ways around this problem. The City of Los Angeles is losing two- thirds of its expected newspaper volumes - 4,000 tons per month - to scavengers. In response, the city solid waste program has decided that. in one area of the city, it will pay the overtime costs of having police officers patrol routes and cite scavengers. For the past eight months, San Francisco has used solid waste program funds to pay for special po- lice patrols. Start later Much of the material is stolen in the dark of the night. Richard Gertman of the Commu- nity Environmental Council (Santa Barbara, California) encourages communities to start curbside collection service after 8 a.m. By promoting to residents that materials should be set out on the morning of collection. and not the evening before, scavengers can't hit rf/;) d- the routes in the middle of the night and steal sizable volumes of materials. Give surveillance devices to drivers Route drivers often spot scavengers as they take commercial or residential material. but have a difficult time gathering sufficient ev. idence against them. such as a vehicle license number or the make and model of the vehi- cle. In several West Coast communities. dri- vers have been provided \'ideo camera~ or single-use photo cameras to aid in data gath- ering. Install communication equipment Route drivers can help nab residential and commercial scavengers if they can contact a supervisor, the police or others who can help accost the suspects. Recycling collection op- erators should consider installing radios or cel1ular phones for use by drivers. Impose an immediate citation If the police take action against a scavenger. it is commonly a citation leading to a court trial. In many communi tie" the police and judges are reluctant to go this route. as it clogs an already busy court system with people cit- ed for nonviolent crimes. Some cities are trying another tack: Once Resource Rending August 1995. an offlC~r s~~s an act of scavenging, an im- mediate tine can be assessed, similar to those giyen out for traffic or parking infractions. With a tine !e\'e! that can go up to $1.000 per incident. it is f.:-It these non-court-issued tines deter further sca\enging. Mingle those materials Many programs collect commingled recy- clables. However, many residents in those communities still put materials at the curb source-separated. with scavengers then able to pick up a whole bag full of valuable goods. One state recycling coordinator encour- ages those communities where aluminum can scavenging is high to ask residents to mingle the aluminum cans with their other bottles and cans. because scavengers dislike having to pick through the bin. Empower other city personnel A number of city staff members. such as nui- sance abat~ment officers and zoning compli- ance personnel. have limited police powers. Some communities have provided these work- ers with the authority to issue citations and \\ amings to sca\ engers that they see stealing materials. Educate recycling buyers Most scavengers are new to the recycling ~ DURATECH THE INDUSTRIAL GRINDER SPECIALISTS PROGRESSIVE INNOVATION THROUGH SKILL & TECHNOLOGY With over 30 years experience in designing & manufacturing tub grinders, DURATECH introduces the HURRICANE HD 14 and the TYPHOON HD 13. 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Box 1940, Jamestown, North Dakota 58402-1940 Circle 87 on RR service card _Resource Recvcling August 1995 ~cJ3 business. Municipal collection programs and private haulers affected by the theft of mate- rials should approach local processors of re- cyclables. Buyers know when large amounts of recyclables are being delivered by unlike- ly sources. Processors should be urged to warn such suppliers that scavenging is illegal and that stolen materials won't be purchased. In ad- dition, the names of scavengers who have been convicted or fined. and their vehicle li- cense numbers. should be given to buyers. Hire security guards Scarborough. Ontario is losing up to $20,000 per week ($CN) from newspaper scavenging and now plans to hire private security guards to patrol curbside recycling routes. The Sun City, Arizona Lions Club Recy- cling Association lost about $3.000 over a three-week period from its newspaper drop- off boxes. when people in trucks pulled up in broad daylight and removed tons of newspa- per at a time. In response, the Lions hired otf- duty police to patrol the drop-off sites. Inform all residents Media attention to scavenging can help or hurt etlorts to control the problem. On the one hand. having program participants watch out for scavengers and report any theft to the police or to the recycling program office is beneficial. On the other hand. media atten- tion may simply create more scavengers. When told of the problem. most residents are concerned about scavenging. To mini- mize theft. you can ask residents to put out newspapers on the morning of collection and not the evening before. Inform the nighthawks As noted earlier. scavenging often occurs in the dead of night. It is wise to let those work- ers who are commonly out at these hours- such as cab drivers. newspaper delivery crews and delivery truck drivers - know of your problem and to ask for their assistance in nab- bing scavengers. Inform the early birds Many residents rise early to jog. take the dog for a walk or walk to a bus stand to go to work. Drivers should have available a simple flyer that explains the scavenging problem and asks early risers to report the license numbers of scavengers' vehicles. Tell your commercial generators Theft of commercial recyclables commonly involves trespass, because the collection oc- curs on the generator's private property. A concerted campaign to tell those you serve in the commercial sector of the problem you face may lead to efforts to control trespass- ing and scavenging. Lock 'em up The robust price paid for commercial recy- clabJes now allows collectors to consider in- stalling new storage units for recovered pa- per. metals, plastics and other materials. Use of locked and secured bins will often elimi- nate scavenging. Put 'em inside Similarly. collectors of commercial recy- clables should work with some customers to see if the recyc1ables can now be stored in- side the generator's building. rather than out- side where they can be stolen. Compensa- tion to the generator may be required. Spike the load Many scavengers of commercial recyclables also operate legitimate collection routes. Thus. it's not unusual for them to sell large quantities of recyclables and it's hard to de- termine if they're scavenging materials un- less they're seen in the act. One method of gaining evidence is to place a small notice inside a load of recyclable pa- per stating that the recoverable fiber is yours ("This recyclable paper is property of ABC Recycling and was generated by ABC Corp."). If it's then found in a scavenger's load. it may provide additional evidence for use in a civil or criminal case. Establish a hotline Some communities are promoting the avail- ability of a special phone number where res~ idents and business managers can report scav- enging incidences. Seek a court injunction As suggested earlier, the police and courts of- ten show a reluctance to pursue scavengers criminally. And al the same time. with re- covered paper prices from $150 to $250 per ton, small fines are seen by some thieves as merely a cost of doing business, because the fine can easily be paid from scavenging rev- enues. In these cases, civil court action may be useful. For example, the City of Toronto has won an injunction against Global Recycling. which has established a collection route for old cor- rugated containers in the downtown area, lak- ing fiber that has been set out for municipal crews to collect. Escalate the fines Similarly. some communities are consider- ing a stair-step approach to fines. A modest. first-time fine is enough to make many scav- engers quit, but persistent thieves are willing to pay the fine and continue scavenging. For exampJe, some San Francisco scavengers have received more than 10 fines each. A fine schedule that increases with the growing num- ber of citations may be useful in stopping scavenging by these folks. Offer a reward Many people will watch out for ....cavengers and report such theft if they know a rev.'anJ may be made for helping catch a thief. The reward program needs to be publici~ed. Consider licensing To get a handle on who is a legitimate recy- cling colJector and who is not. cities and coun- ties can Jicense coJlector..... The license re- quirements would include information ahout service areas, collection vehicJes and busi- ness ownership. Paper stock dealers would be allowed to buy only from tho<.;e licensed collectors. Those convicted of ..(avenging would lose their license to collect recyclable",. Impound the vehicle Just as some agencies nm\' have the authori- ty to impound the car used by a drug dealer or someone who solicits a prostitute. author- ity can be given for the police to impound the vehicles of persistent scavenger". Each month. the City of San Francisco t(I\\'S tv,o cars or trucks owned by scavenger... RR ZARN ENVIRONMENTAL CONTAINERS CONSERVE VALUABLE LANDFILL SPACE Since 1960, lam has been leading the industry in the use of recycled material. The only cart manufacturer to own and operate its own recycling facility, Zam "closes the loop" with its complete line of 100% recyclable environmental containers. Zam offers lid configurations for special recycling applications such as cans, bottles, and office paper. lam containers are also available with one of the highest percentages of recycled content in the industry. larn offers a complete line of lifters for any application ~. 4000 Series 4-Wheel Carts are available in 1/2, 314, and 1 cubic yard 3140 Carts are ideal for recycling 3300 Series Carts, available in 65 and 90 gallon capacities, can be used for both semi- and fully-automated collection All larn Carts are 100% recyclable 3100 Series Carts, available in 65 and 90 gallon capacities, feature unique "front pull"' metal lift bars for faster, easier dumping ZA R N 1001 Northeast Market Street. Reidsvilie, NC 27320 . (800) 678.2278 . Fax: (910) 342-4101 Circle 23 on RR service card ~;)f Resource Renclil1~ August 199581 COUNCIL AGENDA STATEMENT ITEM TITLE: ltemL Meeting Date 5/21/96 Resolution l'i? J~l Approving the Engineer's report for the FY 1996-97 spread of assessments for City Open Space District No.1, declaring the intention to levy and collect assessments and setting June 18, 1996 at 6:00 p.m. and July 16, 1996 at 6:00 p.m. as the dates and time for the public hearings. Director of Public Works ~ () . D'=,", of PM" "'" 1k=^'lt,miL City Manager~ t 6~\ (4/5ths Vote: Yes_No-X) SUBMITTED BY: REVIEWED BY: Based upon the advice of the City Attorney, agenda items and have been separated due to conflict of interest concerns. One Council member owns property subject to the proposed assessment in this district. Council should note that agenda statement gives all background information and details on open space districts in general which is applicable to this item, but does not include specific information on Open Space District 1. RECOMMENDATION: That Council adopt the resolution approving the Report, direct the City Clerk to publish the Resolution of Intention pursuant to Government Code 6063, set the dates of the public hearings on the assessments for June 18, 1996 at 6:00 p.m. and July 16, 1996 at 6:00 p.m. DISCUSSION: This agenda item is the yearly resolution to assess for open space maintenance within Open Space District Maintenance District Number 1 located between East H Street and Telegraph Canyon Road, east of Paseo Ranchero (see Attachment A). Table 1 relates the present year's assessment to the proposed assessment for Year 1996-97. Agenda item of tonight's agenda contains all the general infortnation regarding open space districts. TABLE 1 PRIOR FY'S VS. FY 96/97 ASSESSMENT/COLLECTIBLE AND % CHANGE FY 94-95 FY 95-96 FY 95-96 FY 95/96 Proposed Proposed Assmt/ Collection! Assmt/ Assmt w/ FY 96-97 FY 96-97 FY96- EDU EDU EDU CPI per Assmt/ Collection! 97 Muni Code EDUO) EDU Reve- nue OSD No. 1 $77 $53 $81 $82.86 $92 $92 $60,885 El Rancho del Rey Units 1-4 (I) Assessment increase is 13.6% ($9.14/EDU subject to m'\iority protest). f(-! Page 2, Item Meeting Date 5/21/96 Staff recommends an increase in the assessment from $81 to $92 per EDU to reflect the estimated cost and funds needed for FY 96/97. This represents an $11 per EDU increase. Staff also recommends a collectible of $92 per EDU, which equals the proposed assessment. An increase in assessment is recommended primarily because of an increase in contractual services due to asphalt concrete sidewalk repair, which is a supplemental work item. The reserve under this recommendation will be 50%. The increase above CPI, equaling $9.14/EDU ($6,050), is subject to a majority protest. Should this occur, there will be a shortfall of funds unless Council reduces the budget or the reserves are reduced below 50%. FISCAL IMPACT: Staff costs associated with the open space program are generated by Parks and Recreation, Public Works, and Data Processing. Contractual costs ($34,711) are outlined in Attachment B. These costs are recovered through the Open Space District collectible, causing no net fiscal impact. The General Fund will be reimbursed $9,836 from the OSD fund for FY 1996-97. Attachments: A District Map B Estimate of Cost M:\HOME\ENGINEER\AGENDA \05D 1.DDS {)-J- ,r, RESOLUTION NO. \,~dql RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE ENGINEER'S REPORT FOR THE FY 1996-97 SPREAD OF ASSESSMENTS FOR CITY OPEN SPACE MAINTENANCE DISTRICT 1, DECLARING THE INTENTION TO LEVY AND COLLECT ASSESSMENTS AND SETTING JUNE 18, 1996 AT 6:00 P.M. AND JULY 16, 1996 AT 6:00 P.M. AS THE DATES AND TIMES FOR THE PUBLIC HEARINGS WHEREAS, pursuant to Article 4, Chapter 1, Part 2 of Division 15 of the California Streets and Highways Code, also known as "Landscaping and Lighting Act of 1972" and Chula Vista Municipal Code Chapter 17.07, the City Engineer has prepared and filed the annual reports for all existing Open Space Maintenance Districts in the City; and WHEREAS, these reports were prepared by the City Engineer or under his direction and are presented to Council for approval in order to proceed with the pUblic hearings set for June 18 and July 16, 1996, in accordance with the Landscaping and Lighting Act of 1972. The report covers Open Space District No.1; and WHEREAS, the Parks and Recreation Department will conduct an information meeting for all property owners within this district at which time staff will explain the proposed budget; and WHEREAS, the proposed assessment for Fiscal Year 1996-97 is as follows: TABLE I PRIOR FY'S VS. FY 96/97 ASSESSMENT/COLLECTIBLE AND % CHANGE FY 94-95 FY 95-96 FY 95/96 Proposed Proposed Assmt/ Assmt/ Assmt w/ FY 96-97 FY 96-97 FY 96-97 EDU EDU CPI per Assmt/ Collection/ Revenue Muni Code EDU(I) EDU OSD No. I $77 $81 $82.86 $92 $92 $60,885 El Rancho del Rey Units 1-4 (I) Assessment increase is 13.6% ($9.14/EDU subject to majority protest). 1 11-3 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby approve the Engineer's report to declare its intention to levy and collect assessments for the FY 1996-97 for the spread of assessments for city Open Space Maintenance District 1, a copy of which is on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the city Council does hereby set June 18, 1996 at 6:00 p.m. and July 16, 1996 at 6:00 p.m. in the City Council Chambers, City of Chula Vista, 276 Fourth Avenue, Chula Vista, California as the dates and times for the public hearings on said assessment. 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" " " 01) ~ i(J 1iJ ;> 2 -0 2 - c 1iJ u 0 0..<: ~ ~ ~ (J 0 0 ;> ~ ~ v ::; ?: '" v ._ 0 '" :::2 '" 6: ,,- -0 en v " -0 V '" V " ~ ~ " " "-< en U U -' 00 enO ~ '" '" '" ~ -' Z '" U "-< U '" ~ ~ 00 "-< q~/, - "ra .... fr~ - 0 -'" - 0; 0. ~ B .g 0 "00]-. u " ~en '-' ~ v " - "-< "' '" ID N "' ~ ,; ~ o "' '" U m c. ~ c " c. o " " " c '0, c LlJ Q; E o oS u: oSD / THE CITY OF CHULA VISTA PARTY DISCLOSURE STATEMENT Statement of disclosure of certain ownership interests, payments, or campaign contributions, on all matters which will require discretionary action on the part of the City Council, Planning Commission, and aH other official bodies. The foHowing information must be disclosed: 1. List the names of all persons having a financial interest in the contract, Le., contractor, subcontractor, material suppJier. IJ-/1 - 2. If any person identified pursuant to (1) above is a corporation or partnership, list the names of all individuals owning more than 10% of the shares in the corporation or owning any partnership interest in the partnership. 3. If any person identified pursuant to (1) above is non-profit organization or a trust, list" the names of any person serving as director of the non-profit organization or as trustee or beneficiary or trustor of the trust. { 4. Have you had more than $250 worth of business transacted with l' I ( wember of the City staff, Boards, Commissions, Committees and Council within the past twe!., months? Yes No _ If yes, please indicate person(s): 5. Please identify each and every person, including any agents, employees, consultants or independent contractors who you have assigned to represent you before the City in this matter. 6. Have you and/or your officers or agents, in the aggregate, contributed more than $1,000 to a Councilmember in the current or preceding election period? Yes _ No _ If yes, state which Councilmember(s ): Pcrson is defined as: "Any individual, Jiml, co-partnership, joint venture, association, social club, fraternal organization, Corporation. eswte, t/1/st, recei"er, syndicate, this and any other county, city and country, city, municipality, district or other political subdivisiun, or (my other group or combination llc/blg (IS II unit." (NOTE: Allach additional pages as necessary) Date: Signature of contractor/applicant Print or type name of contractor/applicant IRC\'i~cd: J 1/30/'J01 [.\.' J '.\.DISCLOSE.TX11 Q.? COUNCIL AGENDA STATEMENT SUBMITTED BY: Item 10 Meeting Date 5/21/96 Resolution \ 'i J. Oce.!, Approving the Engineer's report for the FY 1996-97 spread of assessments for City Open Space District No. 10, declaring the intention to levy and collect assessments and setting June~8' 1 96 at 6:00 p.m. and July 16, 1996 at 6:00 p.m. as the dates and times for the public hearings. Director of Public Works Director of Parks and Recrea . ITEM TITLE: REVIEWED BY: City Managezli (4/5ths Vote: Yes_No..xJ Based upon the advice of the City Attorney, agenda items and have been separated due to conflict of interest concerns. One Council member owns property subject to the proposed assessment in this district. Council should note that agenda statement gives all background information and details on open space districts in general which is applicable to this item, but does not include specific information on Open Space District 10. RECOMMENDATION: That Council adopt the resolution approving the Report, direct the City Clerk to publish the Resolution of Intention pursuant to Government Code 6063, set the dates of the public hearings on the assessments for June 18, 1996 at 6:00 p.m. and July 16, 1996 at 6:00 p.m. DISCUSSION: This agenda item is the yearly resolution to assess for open space maintenance withio Open Space District Number 10 located along East J Street, west of Paseo Ranchero (see Attachment A). Table I relates the present year's assessment to the proposed assessment for Fiscal Year 1996/97. Agenda item of tonight's agenda contains all the general information regarding open space districts. TABLE I PRIOR FY'S VS. FY 96/97 ASSESSMENT/COLLECTIBLE AND % CHANGE FY94-95 FY95-96 FY 95/96 Proposed Proposed FY 95-96 Assmnt/ Collection! Assmt w/ FY 96-97 FY 96-97 Revenue EDU EDU CPI per Assmnt/ Collection! Muni Code EDU EDU Open Space District No. 10 $42 $83 $84.91 $84.91 $84 $52,951 El Raocho del Rey 6 & Casa del Rey Staff recommends that the assessment remain the same as FY 95/96 plus a cpr of 2.3 % as set forth in the Chula Vista Municipal Code. However, staff recommends a collectible of $84 per Equivalent Dwelling Unit, which is less than the assessment of $84.91, utiliziog the fund balance to make up the difference. Funds are available to do this because of prior years' savings and by adjustiog the reserve balance. The reserve under this recommendation will be 59%. /0-/ J Page 2, Item Meeting Date 5/21/96 FISCAL IMPACT: Staff costs associated with the open space program are generated by Parks and Recreation, Public Works, and Data Processing. Contractual costs ($31,613) are outlined in Attachment B. These costs are recovered through the Open Space District collectible, causing no net fiscal impact. The General Fund will be reimbursed $8,285 from the OSD fund for FY 1996-97. Attachments: A District Map B Estimate of Cost M:\HOME\ENGINEER\AGENDA\OSDIO.DDS / IJ -d-. RESOLUTION NO. \~~i RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE ENGINEER'S REPORT FOR THE FY 1996-97 SPREAD OF ASSESSMENTS FOR CITY OPEN SPACE MAINTENANCE DISTRICT 10, DECLARING THE INTENTION TO LEVY AND COLLECT ASSESSMENTS AND SETTING JUNE 18, 1996 AT 6:00 P.M. AND JULY 16, 1996 AT 6: 00 P.M. AS THE DATES AND TIMES FOR THE PUBLIC HEARINGS WHEREAS, pursuant to Article 4, Chapter 1, Part 2 of Division 15 of the California Streets and Highways Code, also known as "Landscaping and Lighting Act of 1972" and Chula vista Municipal Code Chapter 17.07, the city Engineer has prepared and filed the annual reports for all existing Open Space Maintenance Districts in the City; and WHEREAS, these reports were prepared by the City Engineer or under his direction and are presented to Council for approval in order to proceed with the public hearings set for June 18 and July 16, 1996, in accordance with the Landscaping and Lighting Act of 1972. The report covers Open Space District No. 10; and WHEREAS, the Parks and Recreation Department is planning to conduct an information meeting for all property owners within this district at which time staff will explain the proposed budget; and WHEREAS, the proposed assessment for Fiscal Year 1996-97 is as follows: TABLE 1 PRIOR FY'S VS. FY 96/97 ASSESSMENT/COLLECTIBLE AND % CHANGE OSD FY94/95 FY 95/96 FY FY 95/96 Proposed Proposed FY 95/96 Assmnt/ Collection/ 95/96 Assmt w/CPI FY 96/97 FY 96/97 Revenue EDU EDU Assmnt/ per Muni Code Assmnt! Collection/ EDU EDU(4) EDU(3) ELMD #1(1) Eastlake I $9.31 $4.34 $9.31 $9.52 $9.52 $9.52 $283,300 Eastlake Greens 14.08 14.08 15.24 15.59 15.59 15.59 OTC 125.95 77.31 126.20 129.10 129.10 129.10 Salt Creek I 168.31 158.70 168.31 172.18 172.18 172.18 TC ClumnelQ) 6.16 16.74 24.00 24.55 24.55 24.55 (I) All areas share in the cost of Olay Lakes Road medians and off-site parkways. (2) Portions of Eastlake I BC and Eastlake Greens are in benefit area. (3) The collectible is subject to decrease pending final analysis of data by Parks & Recretion. (4) Does not reflect subsequent year CPI adjustments. 1 10-3 ,7 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby approve the Engineer's report to declare its intention to levy and collect assessments for the FY 1996-97 for the spread of assessments for Eastlake Maintenance District 1, a copy of which is on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the City Council does hereby set June 18, 1996 at 6:00 p.m. and July 16, 1996 at 6:00 p.m. in the City Council Chambers, City of Chula Vista, 276 Fourth Avenue, Chula Vista, California as the dates and times for the public hearings on said assessment. BE IT FURTHER RESOLVED that the City Clerk is hereby directed to publish said assessment pursuant to Government Code Section 6063. '=-0 Presented by John P. Lippitt, Director of Public Works Attorney C:\rs\OS10eng.rep 2 /0 - if I: - ,I.IJ <I: ~Q ~' i:5 <I: i~ g~ ~ ~ -!;; ~~ b 1 ~5.J ~;;- ~ Ci: !:: '\j ... u () .~~ ~~ o -ii! ... .-; .... '" <D '" >- u. UJ f- UJ o o w o d1~ w .-J.-!z ~- -1<: J::;; ) u. -;0 ~w C f- '~ ~ ~>= d[iJ 0 0 0 0 0 0 0 .... "" .... on 0 0 0 0 0 C! 0 '" - N 0, 0 0 0 0 0 0 0 0 ,,; r-: 0, CO "7 0 '" CO .". "" 0 - '" .". "" '" - '" .... CO N 0_ '" '" 5 .". ",- "" - on ~ ~ - co on 0 '" '" Z f- "' .... "' '0" u '" 0 0 0 0 0 0 0 0 0 0 0 0 co ~ 0 - '" co - co i< ~ 0 0 0 C! 0 0 C! 0 '" 0 0 0 0 .... "" .... on "" 0, .... ";> f- a, 0 0 0 0 0 0 0 -0 .". 0 <'i ..,: 0 '" '" .... '" ..,: ..,: ..,: co .".- en , '" 0 co .". 00 0 - "" 0 N '" .... "" "" is on ~ "" "l .... co '" .".- 0 on .". '" '" .". '" '" ~ co- "" - co '" ",- .,f '" w ~ ;;;; co on N co .". U - '" '" '" '" <: "- '0" .... '0" '0" en 0 0 0 0 0 0 0 0 0 0 0 0 co - .". - ~ co Z .... C! C! 0 C! 0 0 0 C! 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" '" ~ - - " i=: :0 .!; " .!; " ~ ~ "" " ~ ~ ." QC c." >- " " ." ~ f- u " " ." u - " @ ." u 0 o...c ~ ~ ~ Q 0 - 0 >- ~ ~ - " :5 - i:< " ._ 0 ::E " - ,,- ." 00 " " ." " '" " " ~ ~ " " 0- f- <JJ U U -' ~ 0- 000 ~ '" '" '" ~ -' :z: '" u 0- U '" <( <( ~ 0- //)-10 '" '" "' N ~ ~ .,; ~ 0 '" '" "0 " <> ~ c ~ <> 0 <: ~ ~ c .0, c W ;..; 0; ~ E " 0 0 - ? 0- u. ZXS])/U mE CITY OF CHULA VISTA PARTY DISCLOSURE STATEMENT Statement of disclosure of certain ownership interests, payments, or campaign contributions, on aIJ matters which wiIJ require discretionary action on the part of the City Council, Planning Commission, and all other officia] bodies. The following information must be disclosed: 1. List the names of aIJ persons having a financial interest in the contract, i.e., contractor, sUbcZjocr7r, material supplier. 2. If any person identified pursuant to (1) above is a corporation or partnership, list the names of aIJ individua]s owning more than 10% of the shares in the corporation or owning any partnership interest in the partnership. 3. If any person identified pursuant to (1) above is non-profit organization or a trust, list'the names of any person serving as director of the non-profit organization or as trustee or beneficiary or trustor of the trust. ~ .~. .- ( 4. Have you had more than $250 worth of business transaj:ted,with any member of the City sta~f, Boards, Commissions, Committees and Council within thl!! past twelve months? Yes No _ If yes, please indicate person(s): 5. Please identify each and every person, including any agents, employees, consultants or independent contractors who you have assigned to represent you before the City in this matter. 6. Have you and/or your officers or agents, in the aggregate, contributed more than $1,000 to a Councilmember in the current or preceding election period? Yes _ No _ If yes, state which Councilmember(s): Pcrson is defined as: "Any individual, jiml, co-pannership, joint venture, association, social club, fraternal organization, corpora/ion, l!s/me, /1US!, receiver, syndicate, this and aN)' other county, city and countr)', Cil)', nlUlliciPlllity, district or other political subdivisioll, or all)' other group or combination llcting as a unit," (NOTE: Attach additional pages as necessary) Date: Signature of contractor/applicant 1/),7 1.\,: I :,\DISCLOSE.TX11 Print or type name of contractor/applicant fH.cvi!>cd: 11/30/1)01 Item11- Meeting Date 5/21/96 Resolution \ '\;;}.'\l\ Approving the Engineer's report for the FY 1996-97 spread of assessments for Eastiake Maintenance District No.1, declaring the intention to levy and collect assessments and setting June 18, 1996 at 6:00 p.m. and July 16, 1996 at 6:00 p.m. as the dates and times for the public hearings. SUBMITTED BY: Director of Public Works ~ Director of Parks and Rec~(fio~ REVIEWED BY: City Manage~ ~(J.,~l (4/5ths Vote: Yes_NoX) Based upon the advice of the City Attorney, agenda items and have been separated due to conflict of interest concerns. One Council member owns property subject to the proposed assessment in this district. Council should note that agenda statement gives all background infonnation and details on open space districts in general which is applicable to this item, but does not include specific infonnation on Eastlake Maintenance District No.1 (ELMDl). COUNCIL AGENDA STATEMENT ITEM TITLE: RECOMMENDATION: That Council adopt the resolution approving the Report, direct the City Clerk to publish the Resolution of Intention pursuant to Government Code 6063, set the dates of the public hearings on the assessments for June 18, 1996 at 6:00 p.m. and July 16, 1996 at 6:00 p.m. DISCUSSION: This agenda item is the yearly resolution to assess for open space maintenance within Eastiake Maintenance District Number 1, a City open space district, located along East H Street and Otay Lakes Road, adjacent to "SR 125" (Attachment A). Table 1 relates the present year's assessment to the proposed assessment for the Fiscal Year 1996/97. Agenda item of tonight's agenda contains all the general information regarding open space districts. TABLE 1 PRIOR FY'S VS. FY 96/97 ASSESSMENT/COLLECTIBLE AND % CHANGE OSD FY94/95 FY 95196 FY FY 95196 Proposed Proposed FY 95196 Assmntl Collection! 95196 Assmt wlCPI FY 96197 FY 96197 Revenue EDU EDU Assmntl per Muni Code Assmntl Collection! EDU EDU(4) EDU(3) ELMD HI()) Eastlake I $9.31 $4.34 $9.31 $9.52 $9.52 $9.52 $283,300 Eastlake Greens 14.08 14.08 15.24 15.59 15.59 15.59 OTC 125.95 77.31 126.20 129.10 129.10 129.10 Salt Creek I 168.31 158.70 168.31 172.18 172.18 172.18 TC Channel(2) 6.16 16.74 24.00 24.55 24.55 24.55 (1) All areas share in the cost of Otay Lakes Road medians and off-site parkways. (2) Portions of Eastlake 1 BC and Eastlake Greens are in benefit area. (3) The collectible is subject to decrease pending fmal analysis of data by Parks & Recretion. (4) Does not reflect subsequent year CPI adjustments. /1/1 Page 2, Item Meeting Date 5/21/96 Staff recommends that the assessments for each of the areas remain the same as FY 95/96 plus a CPI of 2.3% as set forth in the Chula Vista Municipal Code. In each of these cases, staff recommends an annual collectible, as shown in Table 1, which is equal to the proposed assessment. FISCAL IMPACT: Staff costs associated with the open space program are generated by Parks and Recreation, Public Works, and Data Processing. Contractual costs ($102,172) are outlined in Attaclunent B. These costs are recovered through the Open Space District collectible, causing no net fiscal impact. The General Fund will be reimbursed $40,047 for City staff services from the OSD fund for FY 1996- 97. Attaclunents: A District Map B Estimate of Cost F:\HOME\ENGINEER\AGENDA\OSELMDl.DDS /) 'd- RESOLUTION NO. \~d..q9 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE ENGINEER'S REPORT FOR THE FY 1996-97 SPREAD OF ASSESSMENTS FOR EASTLAKE MAINTENANCE DISTRICT 1, DECLARING THE INTENTION TO LEVY AND COLLECT ASSESSMENTS AND SETTING JUNE 18, 1996 AT 6:00 P.M. AND JULY 16, 1996 AT 6:00 P.M. AS THE DATES AND TIMES FOR THE PUBLIC HEARINGS WHEREAS, pursuant to Article 4, Chapter 1, Part 2 of Division 15 of the California Streets and Highways Code, also known as "Landscaping and Lighting Act of 1972" and Chula vista Municipal Code Chapter 17.07, the City Engineer has prepared and filed the annual reports for all existing Open Space Maintenance Districts in the City; and WHEREAS, these reports were prepared by the City Engineer or under his direction and are presented to Council for approval in order to proceed with the public hearings set for June 18 and July 16, 1996, in accordance with the Landscaping and Lighting Act of 1972. The report covers Eastlake Maintenance District 1; and WHEREAS, the Parks and Recreation Department will conduct an information meeting for all property owners within this district at which time staff will explain the proposed budget; and WHEREAS, the proposed assessment for Fiscal Year 1996-97 is as follows: TABLE 1 PRIOR FY'S VS. FY 96/97 ASSESSMENT/COLLECTIBLE AND % CHANGE OSD FY94/95 FY 95196 FY FY 95196 Proposed Proposed FY 95196 Assmntl Collectionl 95196 Assmt w/CPI FY 96197 FY 96197 Revenue EOD EDD Assmntl per Muni Code Assmnt! Collectionl EOD EOD") EOU") ELMO H1(1) Eastlake I $9.31 $4.34 $9.31 $9.52 $9.52 $9.52 $283,300 Eastlake Greens 14.08 14.08 15.24 15.59 15.59 15.59 OTC 125.95 77.31 126.20 129.10 129.10 129.10 Salt Creek I 168.31 158.70 168.31 172.18 172.18 172.18 TC Channel~) 6.16 16.74 24.00 24.55 24.55 24.55 (I) All areas share in the cost of Otay Lakes Road medians and off-site parkways. Q) Portions of Eastlake I BC and Eastlake Greens are in benefit area. '" The collectible is subject to decrease pending final analysis of data by Parks & Recretion. (<, Ooes not reflect subsequent year CPI adjustments. 1 )1/3 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula vista does hereby approve the Engineer's report to declare its intention to levy and collect assessments for the FY 1996-97 for the spread of assessments for Eastlake Maintenance District 1, a copy of which is on file in the office of the City Clerk. BE IT FURTHER RES~LVED that the City Council does hereby set June 18, 1996 at 6:00 p.m. and July 16, 1996 at 6:00 p.m. in the City council Chambers, City of Chula Vista, 276 Fourth Avenue, Chula Vista, California as the dates and times for the public hearings on said assessment. BE IT FURTHER RESOLVED that the City Clerk is hereby directed to publish said assessment pursuant to Government Code section 6063. Presented by Approved as to J 4 ~~OOgaard, I, rm by John P. Lippitt, Director of Public Works J ity Attorney C:\rs\OS10eng.rep 2 )J/1 . u .... --2 . o z <{ v c ~ d: c-+- -~ %1 5.; II-~ :;~ Cc\J ... u-:f to 4. Q>~ ~ j~ Z ~r. c:( li . z g ..... II- ~ I- 0.. Z >-~ - .... <( - :i u~ >- ~ i t; <( ..... A w '"1 ~ N 0- /I/S - 1 A~M EASTLAKE MAINTENANCE . DISTRICT NO.1. ( . . CITY OF QlULA VISTA COUNTY OF SAN DIEGO, STATE OF CALIFORNIA ( . ~_.e' '1__ ) \ _~~ ___ o,~ \\' \' 1/ .....:",.--~,~ ~,." I ~I) \\/ / _~..... . "" ~ I' \..............- " I.: V ,I I 1,,-...;.'1/. "A:I ,Ii t/ ,? II ~;l \~ I \ \ II l ~ \ I \ \\ I .! I '\ \ \ ZONE B Ii . I 1--J-- 1\ ',. r--Ir~~ " I I I " ,----'~ I I I II' ""- ".....----"'\'\ l ..----,,' ~ ,I' II, II --- ~\~ 1.1 \~~ ,! I / / \\ ~~ II II ~ ~~. I /1 ~ ~ I ,(~, ~ r" - - \;~ ,(,-& ,,~ " ,~ '\: ~ ~/ ~\~ '\~ /..... \ ~ ~ "...... \\ ,~ . ,,'7 ~.....__~tI' ., ---~-- ...",.,,. . --/ ----~ ~ .,.....- -- .,. . - . .' ...r__oa . ......, .... ,. ... ....., .. .... ...IIO.......OII.___.-r_ ....... 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" " c '0, c w 1ii E o ~ u: ELf-1 J) I THE CITY OF CHULA VISTA PAR1Y DISCLOSURE STATEMENT Statement of disclosure of certain ownership interests, payments, or campaign contributions, on all matters which will require discretionary action on the part of the City Council, Planning Commission, and all other official bodies. The following information must be disclosed: 1. List the names of all persons having a financial interest in the contract, i.e., contractor, SUb~!r~!{t;IOl(a:_terial suppJier. 2. If any person identified pursuant to (1) above is a corporation or partnership, list the names of all individuals owning more than 10% of the shares in the corporation or owning any partnership interest in the partnership. 3. If any person identified pursuant to (1) above is non-profit organization or a trust, list" the names of any person serving as director of the non-profit organization or as trustee or beneficiary or trustor of the trust. t 4. Have you had more than $250 worth of business transacted with any member of the City staff, Boards, Commissions, Committees and Council within the past twelve months? Yes No _ If yes, please indicate person(s): 5. Please identify each and every person, including any agents, employees, consultants or independent contractors who you have assigned to represent you before the City in this matter. 6. Have you and/or your officers or agents, in the aggregate, contributed more than $1,000 to a Councilmember in the current or preceding election period? Yes _ No _ If yes, state which Councilmember(s): Pcrson is defined as: "Any individual, Jiml, co-pannership,joint venture, osSociation, social club, fraternal organization, corporation, CSI{//e, tntst, receil'er, syndicate, this and any other county, city and country, city, municipality, district or other political subdivision, or (my other group or combination aClliJg as ilunil. n (NOTE: Anach additional pages as necessary) Date: Signature of contractor/applicant I'.: I '.,.OISCLOSE.TX1l /1-'1 Print or.type name of contractor/applicant lH.C\'i~cd: JJ/JOifJOJ COUNCIL AGENDA STATEMENT ItemA Meeting Date 5/21/96 ITEM TITLE: Resolution I B 3CCJ Approving the Engineer's reports for the FY 1996-97 spread of assessments for City Open Space Districts 2-9, II, 14, 15, 17, 18, 20, 23, 24, 26, 31, Bay Boulevard, and Town Center, declaring the intention to levy and collect assessments and setting June 18, 1996 at 6:00 p.m. and July 16, 1996 at 6:00 p.m. as the dates and times for the public .h~ngs Director of Public Works r.'7 Director of Parks and Recreatio~ CHy M."",~ ..Ji ~ ~ (41""""", y~-"..xJ SUBMITTED BY: REVIEWED BY: The City administers 24 open space districts established over the last twenty-five years. The districts provide the mechanism to fmance the maintenance of common open space areas (canyons, trails, medians, etc.) associated with and benefitting that particular development. As part of this process, a levy of an annual assessment is necessary to enable the City to collect funds for the proposed open space maintenance. Tonight's action begins the process for Fiscal Year 1996/97. The City Engineer has prepared and filed reports on assessments for all existing Open Space Districts. The above resolution approves the reports and sets the dates for public hearings to consider the levy of assessments and collection of funds. RECOMMENDATION: That Council approve the resolution: 1) Approving the reports, directing the City Clerk to publish the Resolutions of Intention pursuant to Government Code 6063, and setting the dates of the public hearings on the assessments for June 18, 1996 at 6:00 p.m. and July 16, 1996 at 6:00 p.m. 2) Direct staff to notice the property owners pursuant to State Codes. BOARDS/COMMISSIONS RECOMMENDATION: The budget and assessment information for Town Center Maintenance District will be forwarded to the Town Center Committee via the Community Development Department upon approval of the resolution. As the advisory committee for the Town Center developments, the Committee has historically reviewed this information and provided feedback to staff. DISCUSSION: This agenda statement is the yearly resolution of intention to assess property owners for open space maintenance within the City. Table 1 contains the name and location of the districts. Table 2 relates the present year's assessment to the proposed assessment and collectible for FY 96/97. Following Table 2, there is some general information that applies to all the districts and then each district is analyzed individually. That is followed by a description of the noticing that is required. As a final note, Council should be advised that the preceding agenda items contain the same information on Open Space District Nos. I, 10, and Eastlake which were separated due to conflict of interest concerns. 1:2- I Page 2, Item_ Meeting Date 5/21/95 BacklZround Pursuant to Article 4, Chapter 1, Part 2 of the Division 15 of the California Streets and Highways Code, also known as "Landscaping and Lighting Act of 1972" and the City of Chula Vista Municipal Code, the City Engineer has prepared and filed the annual reports for all existing Open Space Districts in the City. The name and location of each open space district is shown in the following table. TABLE 1 Open Space Districts Within the City of Chula Vista Dpen Space District Name Location No. 2 Lark Haven South and east of Lorna Verde Park 3 Rancho Robinhood Units I & 2 South of Allen School Lane 4 Bonita Ridge Camino Elevado 5 Southbay Villas Northern end of Crest Drive 6 Hilltop Vista Camino Vista Road 7 Zenith Units 2, 3, and 4 North and south of Palomar, east of 1-805 8 Rancho Robinhood Unit 3 Surrey Drive 9 EI Rancho del Rey Units Paseo del Rey, north of Telegraph Canyon Road 11 Hidden Vista Village East H Street, east of 1-805 14 Bonita Long Canyon North and south of Country Vistas Lane IS Bonita Haciendas Canyon Drive, east of Dtay Lakes Road 17 Bel Air ridge Northeast of Paseo Ladera and East J Street 18 Rancho del Sur Easterly end of East Naples Street 20 Rancho del Rey North of East H Street, west of Dtay Lakes Road 23 Dtay Rio Business Park West of Heritage/Dtay Valley Road, south of Dtay Rio Road 24 Canyon View Homes Rutgers Avenue, south of East H Street 26 Park Bonita West of the intersection of E Street and Bonita Road 31 Telegraph Canyon Estates North of Dtay Lakes Rd, west of "SR 125" Town Center No. I Third Avenue, north and south of F Street Bay Boulevard - These reports were prepared by the City Engineer or under his direction and are presented to Council for approval in order to proceed with the public hearings set for June 18, 1996 at 6:00 p.m. and July 16, 1996 at 6:00 p.m. in accordance with the Landscaping and Lighting Act of 1972. The reports cover districts listed in Table 1. I"" A. Page 4, Item_ Meeting Date 5/21/95 OSD FY 95196 Proposed Proposed FY 94/95 FY 95196 FY 95196 Assmnt wi FY 96/97 FY 96/97 FY96/97 Assmnt/ Collection! Assmnt/ CPI per Muni Assmnt/ Collection! Revenue EDU EDU EDU Code EDU(6) EDU Zone 7 III 9.39 5.59 t30.50 133.50 133.50 133.50 (7) Zone 8 NDB 0.00 0.00 30.09 30.78 30.78 30.78 (7) Zone 9 TCC 0.00 16.61 23.89 24.44 24.44 24.44 (7) 23 335.00 205.00 335.00 342.71 342.71 63.00 3,519 24 432.00 341.00 502.00 513.55 513.55 377.00 15,080 26 394.00 356.00 394.00 403.06 403.06 302.00 5,738 31 407.00 0.00 407.00 416.36 416.36 262.00 90,390 33(3) NA NA NA NA 1029.00 686.00 4,116 Bay Blvd. 889.00 31.00 1291.00 1320.69 1320.69 1311.00 13,110 Town Centre 45.00 39.00 45.00 46.04 46.04 12.00 12,000 (1) Represented average residential assessment in SPA I. (2) Assumes Sweetwater Authority does not pay (pending agreement). (3) Per Resolution No. 18127, assessment and collectible set for FY 96/97 (first year assessment). (4) Assessment increase is 6% ($19.48/EDU subject to majority protest). (') Collectible to be adjusted upon analysis of data by Parks & Recreation (6) Does not reflect subsequent year CPI adjustments. (7) Revenue for all zones included in overall District 20 amount. In general, all budgets have increased due to adjustments in water cost (1.20%), contract services (I %), and City staff services (20%). The increase in water cost for most districts is based on water rate increases, and reflects historical use figures which have increased due to less rainfall. The increase in contract services is due to a CPI clause on contracts. The increase in City staff services for most districts is due to the addition of an open space inspector/maintenance worker as proposed in the 1996-97 Open Space budgets. If this position is not approved in the budget, the collectible will be revised. Savings from prior years are proposed to be used to supplement the property owner collections to provide the revenue needed for FY 96/97 maintenance while maintaining reserves between 50%-65% (City Code requires reserves between 50%-100%). Staff typically does not retain reserves above 65% in consideration of property owners direction to return as much excess funds as practical. For those districts where the reserve still exceeds 50-65 %, staff recommends using the savings to offset some of the assessments to give lower collectibles. This practice should help avoid reserves in excess of 100% in future years, thereby avoiding processing refund checks. Staff generally tries to keep the assessments within the CPI amount allowed by the Municipal Code each year. The following summarizes the major changes for each district. Pursuant to the ordinance, staff has made a distinction between the assessment and collectible amount; the assessment, estimated cost and collection will become the same number whenever an increase in assessment is necessary. The proposed assessment per EDU for FY 96/97 represents, in most cases, the prior year's assessment with an inflation factor of 2.3%. The assessment per EDU is the figure to be mailed to the property owners and the collectible is the amount to be collected which is affected by reserves, savings, etc. The collectible per EDU reflects impacts of the reserve requirements, ending fund balances and savings. For a detailed outline, see Attachment A. "-3 Page 3, Item_ Meeting Date 5/21/95 At last year's hearing, Council confirmed the assessments which included a CPI adjustment for subsequent years. Staff proposes for FY 1996/97 that the assessment be kept within that amount previously approved, increasing the FY 95/96 assessment by CPI. Per the City's Municipal Code, the CPI adjustment is the lesser of the January to January San Diego Metropolitan Area All Urban Consumer Price Index (CPI) or the change in the estimated California fourth quarter per capita personal income as contained in the Governor's budget published in January. CPI is estimated at 2.3 % based on the San Diego Metropolitan Area. If the CPI figure for the State of California (not available until May) is less, then staff will reduce the assessments accordingly. Assessment increases equal to 2.3 % (CPI) are not subject to majority protest. Only assessment increases J!ll'l: CPI are subject to majority protest. Assessments & Collectibles Ordinance 2631, adopted by Council last year, also made the distinction between the assessment and the amount that the City may collect against the assessment (collectible). The assessments for FY 96/97 are generally proposed at FY 95/96 amounts increased by the inflation factor (CPI) pursuant to Municipal Code Section 17.07.035. The collectibles, on the other hand, are equal to or less than the proposed assessments based on the budget, reserve requirement, savings and fund balances, including interest earnings and prior years' savings. Under staff's recommendation, a total of two open space districts, OSD 1 and 15, would be subject to a majority protest on the increase (OSD 1 is discussed on separate agenda statement). The proposed assessments and collectibles for Fiscal Year 1996-97 are as follows: TABLE 2 PRIOR FY'S VS. FY 96/97 ASSESSMENT/COLLECTIBLE AND % CHANGE OSO FY 95/96 Proposed Proposed FY 94/95 FY 95/96 FY 95/96 Assmnt w/ FY 96/97 FY 96/97 FY96/97 Assmnt/ Collection! Assmnt/ CPI per Muni Assmnt/ Collection/ Revenue EOU EOU EOU Code EOU(6) EOU 2 $34.00 $30.00 $39.00 $39.90 $39.90 $34.00 $8,466 3 267.00 204.00 267.00 273.14 273.14 232.00 29,464 4 282.00 224.00 282.00 288.49 288.49 277. 00 58,170 5 243.00 229.00 275.00 281.33 281.33 275.00 33,550 6 136.00 0.00 136.00 139.13 139.13 65.00 10,530 7 95.00 39.00 95.00 97.19 97.19 90.00 9,360 8 430.00 300.00 434.00 443.98 443.98 441. 00 48,510 9 101.00 93.00 123.00 125.83 125.83 123.00 47,232 11 83.00 74.00 84.00 85.93 85.93 85.00 112,288 14(2) 270.00 150.00 270.00 276.21 276.21 273.00 238,154 15 234.00 189.00 240.00 245.52 265.00(4) 265.00 15,105 17 124.00 0.00 124.00 126.85 126.85 1.00 46 18 293.00 234.00 293.00 299.74 299.74 228.00 88,361 20(5) 203.00(1) - - - - - 1,170,000 Zone 1 OB 36.67 0.00 45.28 46.32 46.32 0.00 (7) Zone 2 RC .19 0.00 3.44 3.52 3.52 3.52 (7) Zone 3 H 3.73 3.55 4.90 5.01 5.01 5.01 (7) Zone 4 BC 18.25 .78 18.25 18.67 18.67 18.67 (7) Zone 5 I 187.62 83.82 275.15 281.48 281.48 281.48 (7) Zone 6 II 0.00 211.41 211.41 216.27 216.27 216.27 (7) J'''' J.f Page 5, Item_ Meeting Date 5/21/95 FY 95196 Proposed Proposed FY96-97 FY94-95 FY 95196 FY95-96 Assmt wi FY96-97 FY 96-97 Revenue Assmt! Collection! Assmtl CPI per Assmtl Collection! EDU EDU EDU Muni Code EDU EDU jOSD No.2 $34.00 $30.00 $39.00 $39.90 $39.90 $34.00 $8,466 Lark Haven Staff recommends that the assessment remain the same as FY 95/96 plus a CPI of 2.3 % as set forth in the Chula Vista Murticipal Code. However, staff recommends a collectible of $34 per Equivalent Dwelling Unit (EDU), which is less than the assessment of $39.90, utilizing the fund balance to make up the difference. Funds are available to do this because of prior years' savings and by adjusting the reserve balance. The reserve under this recommendation will be 65%. The General Fund will be reimbursed $1,963 for City staff services from the Open Space District Fund for FY 1996-97. FY 95196 Proposed Proposed FY94-95 FY 95196 FY95-96 Assmt wi FY96-97 FY96-97 FY96-97 Assmtl Collectionl Assmt! CPI per Assmt! Collection! Revenue EDU EDU EDU Muni Code EDU EDU OSD No.3 $267.00 $204.00 $267.00 $273.14 $273.14 $232.00 $29,464 Rancho Robinhood Units 1 & 2 Staffrecommends that the assessment remain the same as FY 95/96 plus a cpr of 2.3 % as set forth in the Chula Vista Municipal Code. However, staff recommends a collectible of $232 per EDU, which is less than the assessment of $273.14, utilizing the fund balance to make up the difference. Funds are available to do this because of prior years' saving and by adjusting the reserve balance. The reserve under this recommendation will be 65%. The General Fund will be reimbursed $5,720 for City staff services from the Open Space District Fund for FY 1996-97. FY 95196 Proposed Proposed FY94-95 FY 95196 FY95-96 Assmtwl FY96-97 FY 96-97 FY 96-97 Assmt! Collection! Assmtl CPI per Assmtl Collection! Revenue EDU EDU EDU Muni Code EDU EDU I~SD NO.4 $282.00 $224.00 $282.00 $288.49 $288.49 $277.00 $58,170 Bortita Ridge Staffrecommends that the assessment remain the same as FY 95/96 plus a cpr of2.3% as set forth in the Chula Vista Municipal Code. However, staff recommends a collectible of $277 per EDU, which is less than the assessment of $288.49 per EDU, utilizing the fund balance to make up the difference. Funds are available to do this because of prior years' saving and by adjusting the reserve balance. The reserve under this recommendation will be 65%. The General Fund will be reimbursed $9,092 for City staff services from the Open Space District Fund for FY 1996-97. );; - .s ,j Page 6, Item_ Meeting Date 5/21/95 FY 95/96 Proposed Proposed FY94-95 FY 95/96 FY95-96 Assmtwl FY96-97 FY 96-97 FY 96-97 Assmt/ Collection! Assmt/ CPI per Assmt/ Collection! Revenue EOD EOD EOD Muni Code EOD EOD I~SD No.5 $243.00 $229.00 $275.00 $281.00 $281.00 $275.00 $33,550 Southbay Villas Staff recommends that the assessment remain the same as FY 95/96 plus a CPI of 2.3 % as set forth in the Chula Vista Municipal Code. However, staff recommends a collectible of $275 per EOU, which is less than the assessment of $281 per EOU, utilizing the fund balance to make up the difference. Funds are available to do this because of prior years' savings and by adjusting the reserve balance. The reserve under this recommendation will be 65%. The General Fund will be reimbursed $5,494 for City staff services from the Open Space District Fund for FY 1996-97. FY 95/96 Proposed Proposed FY94-95 FY 95196 FY95-96 Assmt wi FY96-97 FY 96-97 FY 96-97 Assmt/ Collectionl Assmtl CPI per Assmtl Collection! Revenue EOD EOD EOD Muni Code EOD EOD ~OSO No.6 $136.00 $0.00 $136.00 $139.13 $139.13 $65.00 $10,530 Hilltop Vista Staff recommends that the assessment remain the same as FY 95/96 plus a CPI of 2.3% as set forth in the Chula Vista Municipal Code. However, staff recommends a collectible of $65 per EOU, which is less than the assessment of $139.13 per EOU, utilizing the fund balance to make up the difference. Funds are available to do this because of prior years' savings and by adjusting the reserve balance. The reserve under this recommendation will be 90%. The General Fund will be reimbursed $2,583 for City staff services from the Open Space ~istrict Fund for FY 1996-97. FY 95/96 Proposed Proposed FY94-95 FY 95196 FY95-96 Assmt wi FY96-97 FY 96-97 FY 96-97 Assmt/ Collectionl Assmtl CPI per Assmtl Collection! Revenue EOD EOD EOD Muni Code EOD EOD ~OSO No.7 - Zenith $95.00 $39.00 $95.00 $97.19 $97.19 $90.00 $9,360 Dnits 2, 3, & $ Staff recommends that the assessment remain the same as FY 95/96 plus a CPI of 2.3 % as set forth in the Chula Vista Municipal Code. However, staff recommends a collectible of $90 per EOU, which is less than the assessment of $97.19 per EOU, utilizing the fund balance to make up the difference. Funds are available to do this because of prior years' savings and by adjusting the reserve balance. The reserve under this recommendation will be 65 %. The General Fund will be reimbursed $1,962 for City staff services from the Open Space District Fund for FY 1996-97. ,,-? Page 7. Item_ Meeting Date 5/21/95 FY 95196 Proposed Proposed FY94-95 FY 95196 FY95-96 Assmtwl FY96-97 FY 96-97 FY 96-97 Assmtl Collectionl Assmtl CPI per Assmt! Collection! Revenue EDU EDU EDU Muni Code EDU EDU OSD No.8 $430.00 $300.00 $434.00 $443.93 $443.93 $441.00 $48,510 Rancho Robinhood Unit 3 Staff recommends that the assessment remain the same as FY 95/96 plus a CPI of 2.3 % as set forth in the Chula Vista Municipal Code. However, staff recommends a collectible of $441 per EDU, which is less than the assessment of $443.98 per EDU, utilizing the fund balance to make up the difference. Funds are available to do this because of prior years' savings and by adjusting the reserve balance. The reserve under this recommendation will be 53 %. The General Fund will be reimbursed $8,000 for City staff services from the Open Space District Fund for FY 1996-97. FY 95/96 Proposed Proposed FY94-95 FY 95196 FY95-96 Assmtwl FY96-97 FY 96-97 FY 96-97 Assmt! Collection! Assmtl CPI per Assmt! Collectionl Revenue EDU EDU EDU Muni Code EDU EDU OSD No.9 $101.00 $93.00 $123.00 $125.83 $125.83 $123.00 $47,232 E1 Rancho del Rey Units Staff recommends that the assessment remain the same as FY 95/96 plus a CPI of 2.3 % as set forth in the Chula Vista Municipal Code. However, staff recommends a collectible of $123 per EDU, which is less than the assessment of $125.83 per EDU, utilizing the fund balance to make up the difference. Funds are available to do this because of prior years' saving and by adjusting the reserve balance. The reserve under this recommendation will be 65%. The General Fund will be reimbursed $7,819 for City staff services from the Open Space District Fund for FY 1996-97. FY 95/96 Proposed Proposed FY94-95 FY 95196 FY95-96 Assmtwl FY96-97 FY 96-97 FY 96-97 Assmtl Collectionl Assmtl CPI per Assmtl Collection! Revenue EDU EDU EDU Muni Code EDU EDU IOSD No. II $83.00 $74 .00 $84.00 $85.93 $85.89 $85.00 $112,288 Hidden Vista Village Staff recommends that the assessment remain the same as FY 95/96 plus a CPI of 2.3% as set forth in the Chula Vista Municipal Code. However, staff recommends a collectible of $85 per EDU, which is less than the assessment of $85.93 per EDU, utilizing the fund balance to make up the difference. Funds are available to do this because of prior years' saving and by adjusting the reserve balance. The reserve under this recommendation will be 52%. The General Fund will be reimbursed $18,710 for City staff services from the Open Space District Fund for FY 1996-97. )'-7 ,/ Page 8, Item_ Meeting Date 5/21/95 FY 95/96 Proposed Proposed FY94-95 FY 95/96 FY95-96 Assmt wi FY96-97 FY 96-97 FY 96-97 Assmtl Collection! Assmtl CPI per Assmt/ Collection! Revenue EOU EOU EOU Muni Code EOU EOU 1080 No. 14 $270.00 $150.00 $270.00 $276.21 $276.21 $273.00 $238,154 Bonita Long Canyon Staff recommends that the assessment remain the same as FY 95/96 plus a CPI of2.3% as set forth in the Chula Vista Municipal Code. However, staff recommends a collectible of $273 per EDU, which is less than the assessment of $276.21 per EDU, utilizing the fund balance to make up the difference. Funds are available to do this because of prior years' saving and by adjusting the reserve balance. The reserve under this recommendation will be 63 %. The General Fund will be reimbursed $36,998 for City staff services from the Open Space District Fund for FY 1996-97. Sweetwater Authority owns a residential lot for future construction of a water tank within OSD 14. The above mentioned assessment assumes Sweetwater Authority does not pay (pending agreement per Resolution 17957). FY 95/96 Proposed Proposed FY94-95 FY 95196 FY95-96 Assmt wi FY96-97 FY 96-97 FY 96-97 Assmtl Collection! Assmtl CPI per Assmtl Collection! Revenue EOU EOU EOU Muni Code EOU(I) EOU OSO No. 15 $234.00 $189.00 $240.00 $245.52 $265.00 $265.00 $15,105 Bonita Haciendas (I) Assessment increase is 6% ($I9.48/EOU subject to a majority protest). Staff recommends an increase in the assessment from $240 to $265 per ED U to reflect the estimated cost and funds needed for FY 96/97. This represents a $25 per EDU increase. Staff also recommends a collectible of $265 per ED U, which equals the proposed assessment. An increase in assessment is recommended due to increased water costs, City staff services and contractual services for the district. The reserve under this recommendation will be 50%. The General Fund will be reimbursed $2,832 for City staff services from the Open Space District Fund for FY 1996-97. The increase above CPI, equaling $I9.48/EDU ($1,110 total revenue), is subject to a majority protest. Should this occur, there will be a shortfall of funds unless Council reduces the budget or the reserves are reduced below ,2Q % . FY 95196 Proposed Proposed FY94-95 FY 95196 FY95-96 Assmt wi FY96-97 FY 96-97 FY 96-97 Assmtl Collection! Assmt! CPI per Assmt! Collectionl Revenue EOU EOU EOU Muni Code EOU EOU 10SO No. 17 $124.00 $0.00 $124.00 $126.00 $126.00 $1.00 $46 Bel Air Ridge Staff recommends that the assessment remain the same as FY 95/96 plus a CPI of 2.3 % as set forth in the Chula Vista Municipal Code. However, staff recommends minimal collection and utilizing the fund balance for all maintenance. Funds are available to do this because of prior years' saving and by adjusting the reserve balance. The reserve under this recommendation will be 100%, the maximum allowed under the City Ordinance. Alternatively, refunds could be processed to lower the reserve below 100 % . Staff recommends against this I' -8- Page 9, Item_ Meeting Date 5/21/95 alternative as it is costly to process refunds. The General Fund will be reimbursed $1,082 for City staff services from the Open Space District Fund for FY 1996-97. Staff recommends collection amounts of at least a minimal amount ($l/EDU) to ensure that the Open Space District collectible is on the tax bill serving as additional disclosure to property owners. FY 95196 Proposed Proposed FY94-95 FY 95196 FY95-96 Assmtwl FY96-97 FY 96-97 FY 96-97 Assmt! Collection! Assmtl CPI per Assmt! Collection! Revenue EDU EDU EDU Muni Code EDU EDU I~SD No. 18 $293.00 $234.00 $293.00 $299.74 $299.74 $228.00 $88,361 Raocho del Sur Staff recommends that the assessment remain the same as FY 95/96 plus a CPI of 2.3 % as set forth in the Chula Vista Municipal Code. However, staff recommends a collectible of $228 per EDU, which is less than the assessment of $299.74 per EDU, utilizing the fund balance to make up the difference. Funds are available to do this because of prior years' savings and by adjusting the reserve balance. The reserve under this recommendation will be 65%. The General Fund will be reimbursed $16,510 for City staff services from the Open Space District Fund for FY 1996-97. FY 95196 Proposed Proposed FY 94/95 FY 95196 FY 95196 Assmt w/CPI FY 96197 FY 96197 FY 96/97 Assmnt/EDU Collectionl Assmnt! per Muni Code Assmnt/EDU Collection! Revenue EDU EDU EDU(I) OSD No. 20 - - - - - - - Raocho del Rey Zone 1 - Desilt 36.67 0 45.28 46.32 46.32 46.32 0 Basin Zone 2 - Rice .19 0 3.44 3.52 3.52 3.52 14,000 Caoyon Zone3-HSt. 3.73 3.55 4.90 5.01 5.01 5.01 31,300 Zone 4 - Business 18.25 .78 18.25 18.67 18.67 18.67 49,400 Center Zone 5 - SPA I 187.62 83.82 275.15 281.48 281.48 281.48 505,200 Zone 6 - SPA II 0 211.41 211.41 216.27 216.27 216.27 122,600 Zone 7 - SPA 111 9.39 5.59 130.50 133.50 133.50 133.50 165,800 Zone 8 - North 0 0 30.09 30.78 30.78 30.78 280,700 Desilting Basin Zone 9 - Telegraph 0 16.61 23.89 24.44 24.44 24.44 1,063 Caoyon Channel (I) The collectible is a preliminary figure subject to decrease upon receipt of final figures from Parks & Recreation aod is subject to City Council approval. Rancho del Rey is a phased development of three Sectional Planning Areas (SPA). SPA I is approximately 50 % developed, SPA II and SPA III homes are under construction. The OSD was established in 1989 encompassing all three areas with the understanding that the open space improvements would be constructed in phases. Because l' -9 Page 10, Item_ Meeting Date 5/21/95 this is a large district and not all of the items to be maintained have a benefit to the entire district, OSD 20 is made up of several zones as indicated above. Every property within the district is in more than one zone. TABLE 3 Typical Combined Assessment (FY 96-97) SPA I (Zones I or 8, 2, 3, & 5) $305 SPA II (Zones I or 8, 2, 3, & 6) $271 SPA III (Zones 1 or 9, 3, & 7) $147 Business Center (Zones 1, 2, 3, & 4) -- Industrial (per acre) $833 Commercial (per acre) $1028 Staff recommends that the assessments remain the same for each zone as FY 95/96 plus a CPI of 2.3 % as set forth in the Chula Vista Municipal Code. In each of these zones, staff recommends a collectible which is equal to the proposed assessment. Funds are available to do this because of prior years' savings and by adjusting the reserve balance. Pursuant to City Municipal Code, the reserve will be increased to 50% (minimum) over 5 years. The General Fund will be reimbursed $112,323 for City staff services from the Open Space District Fund for FY 1996- 97. FY 95/96 Proposed Proposed FY94-95 FY 95196 FY95-96 Assmt wi FY96-97 FY 96-97 FY 96-97 Assmtl Collection! Assmtl CPI per Assmtl Collectionl Revenue EDU EDU EDU Muni Code EDU EDU ~OSD No. 23 - Otay $335.00 $265.00 $335.00 $342.71 $342.71 $63.00 $3,519 Rio Business Park Staff recommends that the assessment remain the same as FY 95196 plus a CPI of 2.3 % as set forth in the Chula Vista Municipal Code. However, staffrecommends a collectible of $63 per EDU, which is less than the assessment of $342.71 per EDU, utilizing the fund balance to make up the difference. Funds are available to do this because of prior years' savings due to delayed turnover of improvements and by adjusting the reserve balance. The reserve under this recommendation will be 65 %. The General Fund will be reimbursed $2,255 for City staff services from the Open Space District Fund for FY 1996-97. FY 95196 Proposed Proposed FY94-95 FY 95196 FY95-96 Assmtwl FY96-97 FY 96-97 FY 96-97 Assmtl Collection! Assmtl CPI per Assmtl Collection! Revenue EDU EDU EDU Muni Code EDU EDU OSD No. 24 $432.00 $341.00 $502.00 $513.55 $513.55 $377.00 $15,080 Canyon View Homes Note: OSD 24 consists of only 40 townhomes sharing in the cost of large, landscaped slopes adjacent to the townhomes. Staff recommends that the assessment remain the same as FY 95/96 plus a CPI of 2.3 % as set forth in the Chula Vista Municipal Code. However, staff recommends a collectible of $377 per EDU, which is less than the assessment of $513.55 per EDU, utilizing the fund balance to make up the difference. Funds are available to do this because of prior years' saving and by adjusting the reserve balance. The reserve under this recommendation I' -- If) Page 11, Item_ Meeting Date 5/21/95 will be 65 %. The General Fund will be reimbursed $3,343 for City staff services from the Open Space District Fund for FY 1996-97. FY 95/96 Proposed Proposed FY94-95 FY 95/96 FY95-96 Assmtwl FY96-97 FY 96-97 FY 96-97 Assmtl Collection! Assmtl CPI per Assmtl Collectionl Revenue EDU EDU EDU Muni Code EDU EDU fOSD No. 26 $394.00 $356.00 $394.00 $403.06 $403.06 $302.00 $5,738 Park Bonita Staff recommends that the assessment remain the same as FY 95/96 plus a cpr of 2.3 % as set forth in the Chula Vista Municipal Code. However, staff recommends a collectible of $302 per EDU, which is less than the assessment of $403.06 per EDU, utilizing the fund balance to make up the difference. Funds are available to do this because of prior years' savings and by adjusting the reserve balance. The reServe under this recommendation will be 65 %. The General Fund will be reimbursed $1,461 for City staff services from the Open Space District Fund for FY 1996-97. FY 95/96 Proposed Proposed FY94-95 FY 95/96 FY95-96 Assmt wi FY96-97 FY 96-97 FY 96-97 Assmtl Collection! Assmtl CPI per Assmtl Collectionl Revenue EDU EDU EDU Muni Code EDU EDU OSD No. 31 $407.00 $0.00 $407.00 $416.36 $416.36 $262.00 $90,390 Telegraph Canyon Estates Staff recommends that the assessment remain the same as FY 95196 plus a cpr of 2.3% as set forth in the Chula Vista Municipal Code. However, staff recommends a collectible of $262 per EDU, which is less than the assessment of $416.36 per EDU, utilizing the fund balance to make up the difference. Funds are available to do this because of saving from prior years and turnover of improvements did not occur until January of 1996. The reserve under this recommendation will be 10%, and will increase to 50 % over five years pursuant to Municipal Code. The General Fund will be reimbursed $13,047 for City staff services from the Open Space District Fund for FY 1996-97. FY 95/96 Proposed Proposed FY94-95 FY 95/96 FY95-96 Assmtwl FY96-97 FY 96-97 FY 96-97 Assmtl Collection! Assmtl CPI per Assmtl Collection! Revenue EDU EDU EDU Muni Code EDU EDU Bay Boulevard Open $889.00 $31.00 $1,291.00 $1,320.69 $1,320.69 $1,311.00 $13,110 Space Maintenance Distict Note: Costs of this district are shared between four commercial properties. Staffrecommends that the assessment remain the same as FY 95196 plus a cpr of 2.3% as set forth in the Chula Vista Municipal Code. However, staff recommends a collectible of $1,311 per EDU, which is less than the assessment of $1,320.69 per EDU, utilizing the fund balance to make up the difference. Funds are available to do this because of prior years' saving and by adjusting the reserve balance. The reserve under this recommendation I~ -II Page 12, Item_ Meeting Date 5/21195 will be 61 %. The General Fund will be reimbursed $8,129 for City staff services from the Open Space District Fund for FY 1996-97. FY 95196 Proposed Proposed FY94-95 FY 95196 FY95-96 Assmt wi FY96-97 FY 96-97 FY 96-97 Assmt! Collectionl Assmtl CP1 per Assmtl Collectiorti Revenue EDU EDU EDU Muni Code EDU EDU Town Center Open $45.00 $39.00 $45.00 $46.04 $46.04 $12.00 $1,000 Space Maintenance District Note: Methodology spread based on 1/2 of the valuation and 1/2 the front footage. Staff recommends that the assessment remain the same as FY 95/96 plus a cpr of 2.3 % as set forth in the Chula Vista Municipal Code. However, staff recommends a collectible of$12 per EDU, which is less than the assessment of $46.04 per EDU, utilizing the fund balance to make up the difference. Funds are available to do this because of prior years savings and by adjusting the reserve balance. The reserve under this recommendation will be 65 %. The General Fund will be reimbursed $20,977 for City staff services from the Open Space District Fund for FY 1996-97. ~ The public hearings will be noticed pursuant to Government Code 6063 which requires that notice be published at least once a week for three weeks 10 days before the second public hearing. OSD's I and IS, proposed for assessment increases above the range previously noticed, have more stringent notice requirements. Staff will mail notice of the hearings to all open space districts. The notice will inform the resident of his/her district, the current year assessment, the cpr adjustment and the proposed assessment for FY 96/97. The 2 districts (OSD 1 & 15) which are proposed for assessment increases, will be notified that any increase in assessment above the cpr adjustment may be overruled by a majority protest. The Parks and Recreation Department will conduct information meetings for all property owners within each district this month. At the meeting, staff will explain the proposed budget to interested owners (approximately 10,000 properties will receive notice). Plans, specifications, and assessment roll are on file in the Public Works/Engineering office. FISCAL IMPACT: Staff costs associated with the open space program are generated by Parks and Recreation, Public Works, and Data Processing. Contractual costs ($859,700) are outlined in Attachment A. These costs are recovered through the Open Space District collectible, causing no net fiscal impact. The total General Fund reimbursement for City staff services from the above listed Open Space District Funds for FY 1996-97 is estimated to be $280,300. Attachments: A Cost Summary B District Maps M:\HOME\ENGINEER\AGENDA \OSROLDDS ), -- '" .J RESOLUTION NO. J8300 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE ENGINEER'S REPORTS FOR THE FY 1996-97 SPREAD OF ASSESSMENTS FOR CITY OPEN SPACE MAINTENANCE DISTRICTS 2-9, 11, 14,15,17,18,20,23,24,26,31, BAY BOULEVARD AND TOWN CENTRE, DECLARING THE INTENTION TO LEVY AND COLLECT ASSESSMENTS AND SETTING JUNE 18, 1996 AT 6:00 P.M. AND JULY 16, 1996 AT 6:00 P.M. AS THE DATES AND TIMES FOR THE PUBLIC HEARINGS WHEREAS, pursuant to Article 4, Chapter 1, Part 2 of Division 15 of the California Streets and Highways Code, also known as "Landscaping and Lighting Act of 1972" and Chula Vista Municipal Code Chapter 17.07, the City Engineer prepared and filed the annual reports for all existing Open Space Maintenance Districts in the City; and WHEREAS, these reports were prepared by the City Engineer or under his direction and are presented to Council for approval in order to proceed with public hearings set for June 18 and July 16, 1996, in accordance with the Landscaping and Lighting Act of 1972". The reports cover the following districts: 1. Open Space District Nos. 2-9, 11, 14, 15, 17, 18, 20, 23, 24, 26 and 31. 2. Bay Boulevard and Town Centre Landscaping Districts WHEREAS, the Parks and Recreation Department will conduct an informal meeting for all property owners within each district at which time staff will explain the proposed budget; and, WHEREAS, the proposed assessments for Fiscal Year 1996-97 are as follows: 1 IP- -13 TABLE 2 PRIOR FY'S YS. FY 96/97 ASSESSMENT/COLLECTIBLE AND % CHANGE OSD FY 95/96 Proposed Proposed FY 94/95 FY 95/96 Assmnt wi FY 96/97 FY 96/97 FY96/97 Assmntl Assmnt! cpr per Assmntl Collection/EDU Revenue EDU EDU Muni Code EDU 2 $34.00 $39.00 $39.90 $39.90 $34.00 $8,466 3 267.00 267.00 273.14 273.14 232.00 29,464 4 282.00 282.00 288.49 288.49 277.00 58,170 5 243.00 275.00 281.33 281.33 275.00 33,550 6 136.00 136.00 139.13 139.13 65.00 10,530 7 95.00 95.00 97.19 97.19 90.00 9,360 8 430.00 434.00 443.98 443.98 441. 00 48,510 9 101.00 123.00 125.83 125.83 123.00 47,232 11 83.00 84.00 85.93 85.93 85.00 112,288 14m 270.00 270.00 276.21 276.21 273.00 238,154 15 234.00 240.00 245.52 265,00(4) 265.00 15,105 17 124.00 124.00 126.85 126.85 1.00 46 18 293.00 293.00 299.74 299.74 228.00 88,361 20'S) 203.00'1) - - - - Zone I DB 36.67 45.28 46.32 46.32 46.32 - Zone 2 RC .19 3.44 3.52 3.52 3.52 - Zone 3 H 3.73 4.90 5.01 5.01 5.01 - Zone 4 BC 18.25 18.25 18.67 18.67 18.67 - Zone 5 r 187.62 275.15 281.48 281.48 281.48 - Zone 6 II 0 211.41 216.27 216.27 216.27 - Zone 7 III 9.39 130.50 133.50 133.50 133.50 - Zone 8 NDB 0 30.09 30.78 30.78 30.78 - Zone 9 TCC 0 23.89 24.44 24.44 24.44 - 23 335.00 335.00 342.71 342.71 63.00 3,519 24 432.00 502.00 513.55 513.55 377.00 15,080 26 394.00 394.00 403.06 403.06 302.00 5,738 31 407.00 407.00 416.36 416.36 262.00 90,390 33(3) NA NA NA 1029.00 686.00 4,116 Bay Blvd. 889.00 1291.00 1320.69 1320.69 1311.00 13,110 Town Centre 45.00 45.00 46.04 46.04 1.00 1,000 (I) Represented average residential assessment in SPA 1. (2) Assumes Sweetwater Authority does not pay (pending agreement). m Per Resolution No. 18127, assessment and collectible set for FY 96/97 (first year assessment). (4) Assessment increase is 6% ($19.48/EDU subject to majority protest). (S) Collectible to be adjusted upon analysis of data by Parks & Recreation 2 '" - IJf NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby approve the Engineer's reports for the FY 1996- 97 spread of assessments for City Open Space Maintenance Districts 2-9, 11, 14, 15, 17, 18, 20, 23, 24, 26, 31, Bay Boulevard and Town Centre, a copy of which is on file in the office of the City Clerk, and declare its intention to levy and collect assessments. BE IT FURTHER RESOLVED that the City Council does hereby set June 18, 1996 at 6:00 p.m. and July 16, 1996 at 6:00 p.m. in the Council Chambers, City of Chula Vista, 276 Fourth Avenue, Chula Vista, California as the dates and times for the public hearings on said assessments. Presented by directed to 6063. BE IT FURTHER RESOLVED that the publish said assessments pursuant to Go John P. Lippitt, Director of Public Works C:\rs\OSEngRpt.all 3 /'- - 15 COUNCIL AGENDA STATEMENT Item: " Meeting Date: 5/21/96 ITEM TITLE: Resolution 1830 I Approving Open space Encroachment Permit to the Clark Real Estate Group at Rancho del Rey Business Park Lot 6 and 25 SUBMITTED BY: Director of Parks and Recre~ REVIEWED BY: City Manage~ ~ 'W;\ (4/5ths Vote: Yes _ No ..xJ On March 13, 1996, the Clark Real Estate Group (Cinema Star), applied for an open space encroachment permit (Attachment "A") to regrade approximately 4,500 square feet of open space land at the south edge of Rice Canyon adjoining Lot 6 and 25 of Rancho Del Rey Business Park. STAFF RECOMMENDATION: That Council approve Encroachment Permit Number OS-95-03 and authorize the Director of Parks and Recreation to issue said permit. BOARD/COMMISSION RECOMMENDATION: Not Applicable. DISCUSSION: The Clark Real Estate Group is planning to build a multi-plex Cinema Star theater on Lots 6 and 25 in the Rancho Del Rey Business Park. These lots are east of the Price Club Store on Terra Del Rey. The Developer is proposing to refinish the elevations of Lot 6 and 25 to establish on large building pad for the theater and parking lot. The finished elevations at the canyon edge will be raised from 4 feet to 8 feet to blend with the new finish elevation of lot 6. Once graded, the open space area will be planted with native vegetation to complement the existing Rice Canyon natural habitat. Temporary irrigation will be provided to establish growth. The Open space area is on a flat extension of Lot 6 and is void of any vegetation (Attachment "B"). The Departtnent has reviewed the applicant's request and recommends approval with the following conditions : 1. Planting on graded open space slopes must be approved by the Departtnent's Landscape Architect. 2. Applicant will provide temporary irrigation from their own system to establish vegetation. 3. Graded area to be maintained a minimum of three years or upon acceptance by Department's Landscape Architect. 4. Existing Open Space irrigation equipment must be protected. If equipment needs to be relocated, down time must be minimized. FISCAL IMPACT: All costs associated with this project will be borne by applicant. Attachments: "A" - Open Space Encroachment Permit "B" - Open Space area to be encroached [NETWORK:-AI13-encroch.113-May 8,1996] I 1"3- I RESOLUTION NO. ,a 301 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING OPEN SPACE ENCROACHMENT PERMIT TO THE CLARK REAL ESTATE GROUP AT RANCHO DEL REY BUSINESS PARK LOT 6 AND 25 WHEREAS, on March 13, 1996, the Clark Real Estate Group (Cinema Star) applied for an open space encroachment permit to regrade approximately 4,500 square feet of open space land at the south edge of Rice Canyon adjoining Lot 6 and 25 of Rancho Del Rey Business Park; and WHEREAS, Parks and Recreation has reviewed the applicant's request and recommends approval subject to conditions. NOW, THEREFORE, BE IT RESOLVED the City Council of the city of Chula vista does hereby approve an Open Space Encroachment Permit to the Clark Real Estate Group at Rancho del Rey Business Park Lot 6 and 25 in the form presented subject to the following conditions: 4. 5. 6. Presented by 1. Planting on graded open space slopes must be approved by the Department's Landscape Architect. 2 . Applicant will provide temporary irrigation from their own system to establish vegetation. 3. Graded area to be maintained a minimum of three years or upon acceptance by Department's Landscape Architect. Existing Open Space irrigation equipment must be protected. If equipment needs to be relocated, down time must be minimized. All costs associated with the permit and the conditions thereto shall be borne by the permittee. Such other terms and conditions set forth in the Open Space Encroachment Permit. Approved as to form by Jess Valenzuela, Director of Parks and Recreation C:\rs\clark.enc 1'3 -~ .~~................................:...........................................~~~,~u~.J\.I........... ~hen recorded, please .ail this to: This apace for ..corder'. use, only Chula Vllta Perks and .ecreltlor. ~e~t. Open Spice Encrolchment City of Chula Vista P.O. lox 1087 Chull Vlltl, CA 92012 I I I I I I I ........................................................................................................... AUTHORIZATION FOR ENCROACHMENT IN CITY OPEN SPACE LAND Encroach.ent Permit WOo OS-Q5/f6--3 Application Fee: Receipt No: I "'?{!,r!C62 l'?< ; [/ ( yr ) Inlpactlon fee: S .,clipt 110: Pursuant to Chlpter 17.08 of the Chull Visu MunicipII Cod., perllinion fa hereby granted to: Craig W. Clark to do work within I portion of open ,plce land belonging to the City of Chull Viltl. All t.rms Ind conditions of this permit IS to the permittee Ihlll be I burden upon per.ittee's land Ind shall run with the Lind. All condi~ions Ipply to permittee Ind III II.i;nl or lucc...or. in int.rest. ~here.s, the permittee h~s requested the permhsion of the City of Chula Yllta to open .pace land adjacent. to and for the direct benefit of the Lots 6 and 25 Rancho Del Rey Business Park property: encr.olch on the City following described (Allessors Plrcel No.(s) 640-293-22/03 ) to do the followln; work: Regrade approximately 4500 square feet of existing open space at the south edge of Rice Canyon adioininq Lot6 of RDR Business Park (see attached exhibits). Finish elevations at the canyon edqe will be raised from 4 to 8 feet to blend with the new finish elevations of Lot 6. Once graded, the subject area will be planted with native material to blend in with the existinq Rice Canyon natural qrowth. irrigation will be provided to establish qrowth. Temporary Mow, therefor., In consideration of their mutuIl promis.s, .nd other lood Ind yalulble conliderltion, the plrti.s hereto 18~ee IS follows: Perm;lsion (I hereby grlnted to install the .bov....nttoned encrolchaent on the r'll property of the City described above In accordanc. with the following conditions: 1. Slid (nstallltton Ihlll, (n no ..ay (nterf.re with Iny .xlsttng utility, (ncludinliil Itor. drain lines own.d and ..Inulned by the City. Any chang.. of Iny uttl tty due to the inlullltion of the per.lttee'l private facilltiel Ihall be at the IDle expenle of the permittee. The encrolchment Ihall be Inltllled Ind lIaintlined in I life Ind Ilnitary .ann.r II deterllined by the City. 2. Mlintenlnce, removal or relocation of the Ibove'"mentioned (nstlllltion of the private flciLities .hall be the lole relponsibiLity of the per.ittee, or l.llee It no expense to the City. WPC '5BOR (Rov; sed 11'90) 13-3 Pig. , of Z " Attachment A-2 3. Slid In.tlllltion .hlll conform to the Itlndlrd. of the City of Chull Yiltl end Ihlll conform to the regutetions I' let forth herein: h..", ~ I" eN I'IAJ"cl (!> l-,..",~"", .~ ~ A"",,h. teet \,"-"''''-\ ~,,\ n,"\~""'- ~^~ ,..",... r...." A' OuJN .:s'i,-Tf"" ~ ~.s.lPIb\ish. V"'CJ.e1V'r-t.~ G\'<....cl~ Af<,..c.... --+u b.. r"Y'ctvn.b'~J A n"'''''''lmWY\ c.{ -\-h..-~", '71>,,"-.3 ' 0.~ rJ cce +ItNC-"L b 1> ""eM.i'~ L,.,."d..'!iC Brd" fee . ~ ~')<(Jh~''t (')~_S'/"'""-"- ,,-,,'7-;""';' $.?""'> ,....-rt,< Prb~/~. .t::f'. ~__I,.......L, '" t-"-- 7 fZ.<-.4>fA,J.c.".l,.. c..v-.... fu->"""-t.. ~ k /rIvt..... "11 z.t"d. Thi. perMit fa revocable upon thirty (30) dlYs written not1ce to~t per.ltt... and upon luch notice, the tnltalt.tlon ~.t be reaoved, or relocated, .1 ..y be apecfffed by the pe~fttor at per.ltt.e'. e.pen.e It the Illd time. If thl permittee fIlii to remove or reloclte the encrolchment within the period II lotted, the City may clu.e luch work to be done end the cOlt thereof Ihlll be Impoled "' I lfen upon the permittee's propertYa I. \AS, ~ r ~<?J t r ~'}\14.." fl ...(rGn, t k. Y"' 2. 3. Plrmlttee hereby egrle. to inde..nffy end hold hlrmle.. the City of Chull Yilte, el Indemnitee, Ita elective and appointive boards, officer., Igentl and .-ploy..., fr. any Liability for da..ge or claims for damage for personal injury, includinlil death, a. weLl .. frora claf., for property damalile vh t ch ..y arhe from th i. p~r,.i t, whether due to operatf Dna of per.htee, ,Dr by a lubcontractor, or aubcontractors, or by anyone of .~re persons directly or Indirectly .-ployed by, or acting a. agent for permittee, or any .ubcontractor or lubcontractors, or frOll fnd.....h..'. nelilligence. 'ermittee alii reel to, and Ihall' defend the City of Chula Vi Ita and ttl electtv. and ~ppointive ~.rdl, officers, alilentl and employees, from any luits or actions by law, or Inequity for da.aliles caused, or alleged to have been caused, by reason of the afore.aid operations. The undersililned permittee hereby accepts the foregoing encroach~nt permit upon the terms above set forth and a"rees to all of the conditions and cov,nantl on itl plrt to be perforlled. It is understood and a"reed thlt, in addition to the above conditions, all applicable condhions of the City of Chull Vista Code are incorporated herein by ref.rence al ,tf ..t out tn full. It h furth.r agreed that if any plrt of this tnterferes with the future ule of the right of wly by the generll public, it must be removed, or reiocated, a. designated by the City, at the Ixpense of the permittee. DIRECTOR OF PARKS AND RECREATION CITY OF CHULA VISTA Sign .y Date 3 -I ~ - Cfb Oate AUelted by: (Appliclnt: Attlch approprllte notlry acknowledgment) .everly A. Authelet," City Clerk NOTE: Permittee i. to lubmlt e check or money order peyeble to County of SIn Diego in the emount of 15 for firlt plge, S2 for elch Iddltionll plge, including Jurlt, for recordltion of thfl permit. "PC 1SS0R (Reviled "190) 13-~ PIge 2 of 2 ~'I l!rOO ......... -d'I'-"'- l() EB~ C\I 0 Z <( (0 . ~ . 0 1__ ~ -.J ! >- Z W <{ ....I a: 0... -.J W . 0 II ~I ~I II Z~ ~~ . ~' ~ i ~ 1.1 ~ i m ~h '"I ;: I t ~I- ~t ! :. 1- ~ ~ ; i! I ~~ I e"e '.~ h~ ..'~ .i!" "~i;"'" I'."" iE= a ~ ~ ~ I i I i~ i u ~i~I;~g ~!! ~I ;j ~~u 1m ~ ~!i!! I ~!in ~i Jin ~ it . ._..8 _.o.~.! ~!i!I _ ~.". Ii... ;~.!... ..... ~o ...... - - - -- 8 "'~~~ ",;i ..Ii"'~ Z5 Attachment B-1 . ~ g 13-5 llir m i n!! ! I . i Attachment B-2 o ..; n . o .... o o ~ ..: ~ . ~ . of," ' " "1'\1 \ 1\1,11 I.III! ~ II \ 'III ~~i~ ; I .' ... I (I _w . \ ~-=. I I .... >' '" 3O"W :5ICI.O!S' N OJ'2~' '" ~ i ! t ~ -51 ~ " I . I o .. ", I /3-' I COUNCIL AGENDA STATEMENT Item -.1i ITEM TITLE: Meeting Date 5/21/96 Resolution 1& ~O~uthorizing the Issuance and Sale of Not to Exceed $151,000,000 Aggregate Principal Amount of Industrial Development Refunding Revenue Bonds of the City of Chula Vista to Refund Certain Bonds Issued by the City of San Diego to Finance Costs of Certain Gas and Electric Facilities for San Diego Gas and Electric Company; Authorizing the Execution and Delivery of an Indenture of Trust and a Loan Agreement Providing for the Issuance of the Bonds and the Repayment of the Loan of the Proceeds Thereof, Respectively; and Related Matters SUBMITTED BY: Director of FinanceAA'o City Attorney ~~ REVIEWED BY: City Manager\..J~ .~~\ (4/STHS Vote: Yes_NoX) San Diego Gas & Electric Company ("SD~~:) has requested that the City take the necessary steps to assist them in refinancing up to three series of Industrial Development Bonds (IDBs), similar to the financing the City did for SDG&E in 1992. Last month Council adopted an ordinance allowing refinancings of this nature and passed a resolution setting a refinance participation fee at .25 percent of the principal amount, payable a the time of issue. This Bond Resolution authorizing the issuance and sale of up to $151 million ofIDBs is the second step in the process. SDG&E is simultaneously working with the City of San Diego on the same three refinancings, and intends to make a decision further along in the process as to which city will be asked to do each of the refinancings. RECOMMENDATION: Adopt the resolution which authorizes the issuance and sale of revenue bonds to refinance industrial development bonds. BOARDS/COMMISSIONS RECOMMENDATION: Not Applicable. DISCUSSION: SDG&E has submitted a request to work with the City to qualify Chula Vista to possibly refinance three series of IDBs that become callable in the near future. Originally SDG&E indicated an interest in qualifying Chula Vista for two series, but have since added the possibility of a third series for $44 million. SDG&E is simultaneously going through the process to quality the City of San Diego for the same refinancing. SDG&E's intention is to leave their options open as to which city will be requested to do the actual refinancing, based on what they think is best for them at that time. On April 16, 1996, the Council adopted Ordinance No. 2669 amending Chapter 3.48 of the Chula Vista Municipal Code to permit the refinancing of regional utility projects upon a finding JLI-/ Page 2, Item Meeting Date 5/21/96 of City benefit. Tonight's action is the next step in the process and authorizes the issuance and sale of up to $151,000,000 refunding revenue bonds. Specifically it does the following: 1. Finds that the gas transmission and distribution facilities and electric generation, transmission and distribution facilities to be refinanced with the proceeds of the Bonds shall directly benefit the citizens of Chula Vista. 2. Authorizes Bonds to be issued in one or more series in an aggregate principal amount not to exceed $151, ()()(), ()()(). 3. Approves the Indenture of Trust and Loan Agreement providing for the repayment by SDG&E of the loan of the proceeds of the revenue bonds. -;..: The Loan A~reement is between the City of Chula Vista and SDG&E. It provides that the City will loan the proceeds of the revenue bonds to SDG&E to repay the loans with respect to the bonds previously issued by the City of San Diego and that the loan repayment amounts by SDG&E will be sufficient to pay the principal and interest on the bonds issued by the City. Any bonds issued by the City on behalf of SDG&E will be limited obligation revenue bonds and will not constitute an indebtedness a~ainst the ~eneral credit or taxin~ power of the City or the State of California. Payment of the bonds will be solely from and secured by a pledge of revenues to be received from SDG&E pursuant to the Loan Agreement. * The Indenture of Trust is between the City of Chula Vista and the Trustee (to be named at a later date) and provides that the Trustee will keep records of the bonds issued, administer the bond proceeds in accordance with the Loan Agreement, receive loan repayments from SDG&E, and make the required payments to the bond holders. If Council approves tonight's Resolution, there is a 60 day protest period. Because of the City of San Diego's concern over Chula Vista refinancing bonds originally issued by the City of San Diego, it could be San Diego will file a protest. Also following tonight's action, SDG&E will determine the next step. Initially SDG&E anticipated the next step to be a judicial proceeding in Superior Court to validate the issuance of the bonds. They have since determined that the validation step may be unnecessary. The decision whether to proceed with or without the validation step is still being evaluated. If no validation is required or following the validation proceeding, SDG&E will make a final determination of which city will proceed with each of the three refinancings. If SDG&E decides to proceed with the City of Chula Vista for any of the refinancings, City Council will be asked to adopt a Resolution to approve the Official Statement, Bond Purchase Agreement and the specifics of the bond financing. Bonds would then be issued. * Copies of documents available for review in the City Clerk's Office. I~~~ Page 3, Item Meeting Date 5/21/96 FISCAL IMPACT: SDG&E will reimburse the City for any staff costs and administrative expenses associated with this process whether or not Chula Vista ultimately does the refinancing. SDG&E also pays all legal counsel, financial advisors and bond issuing costs directly, including counsel representing City of Chula Vista interests. Per the .25% fee set in April, if Chula Vista does the refinancing, the fee would be $110,000 for the $44 million issue, $203,375 for the $81.35 million issue and $62,500 for the $25 million issue. Any fees paid would be revenue to the City's General Fund. fm:\daIa\memoa\director\sdge-2.113 /<I. - 3 )11-1 RESOLUTION NO. l'i 3l)J.. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE ISSUANCE AND SALE OF NOT TO EXCEED $151,000,000 AGGREGATE PRINCIPAL AMOUNT OF INDUSTRIAL DEVELOPMENT REFUNDING REVENUE BONDS OF THE CITY OF CHULA VISTA TO REFUND CERTAIN BONDS ISSUED BY -THE CITY OF SAN DIEGO TO FINANCE COSTS OF CERTAIN GAS AND ELECTRIC FACILITIES FOR SAN DIEGO GAS & ELECTRIC COMPANY, AUTHORIZING THE EXECUTION AND DELIVERY OF AN INDENTURE OF TRUST AND A LOAN AGREEMENT PROVIDING FOR THE ISSUANCE OF THE BONDS AND THE REPAYMENT OF THE LOAN OF THE PROCEEDS THEREOF, RESPECTIVELY, AND RELATED MATTERS WHEREAS, the City of Chula vista (the "City") is authorized pursuant to its Charter and Chapter 3.48 of the Municipal Code of the City (the "Municipal Code") to assist in financing or refinancing utility facilities located within and without the city; and WHEREAS, the Municipal Code provides that the City may issue revenue bonds payable exclusively from the revenues derived from such utility facilities in order to provide funds to finance or refinance such facilities; and WHEREAS, the Municipal Code provides that such revenue bonds shall be secured by a pledge of the revenues out of which such bonds shall be payable; and WHEREAS, pursuant to Ordinance No. 2669 adopted on April 16, 1996, the city has amended Chapter 3.48 of the Municipal Code to authorize the city to issue refunding revenue bonds to refund bonds previously issued by other issuers to finance utility facilities location within and without the City; and WHEREAS, the City of San Diego has previously issued its 1986 Series A, 1986 Series B, and 1987 Series A Industrial Development Bonds (the "Prior Bonds") and loaned the proceeds thereof to San Diego Gas & Electric Company (the "Company") to finance certain gas and electric utility facilities located within and without the City (collectively, the "Projects"); and WHEREAS, the City has determined that it is desirable to assist the Company in refinancing a portion of the cost of the acquisition, construction and installation of the Projects through the issuance and sale of one or more series of refunding revenues bonds of the city, in a aggregate principal amount not to exceed $151,000,000 (the "Bonds"), and the loan of the proceeds thereof to the Company to repay the loans with respect to the Prior Bonds; and 1 Jq.-~ WHEREAS, the bonds will be issued under and pursuant to, and are to be secured by, an Indenture of Trust in substantially the form before this meeting (the "Indenture"), by and between the city and a bank or trust company acceptable to the Company and the officers of the city executing the Indenture, as trustee (the "Trustee"); and WHEREAS, the proceeds of the Bonds will be loaned to the Company for the purposes described above pursuant to a Loan Agreement in substantially the form before this meeting (the "Loan Agreement"), by and between the City and the Company, whereby the Company will covenants and agree to make payments to the Trustee (as assignee of the City's rights under the Loan Agreement) sufficient to pay the principal of, premium, if any, and interest on the Bonds when the same become due and payable, and to make such other payments and satisfy such other obligations as may be required therein and in the Municipal Code. NOW, THEREFORE, BE IT RESOLVED by the City council of the city of Chula Vista, California as follows: SECTION 1. SECTION 2. The City Council hereby finds and determines that the foregoing recitals are true and correct and that the gas transmission and distribution facilities and electric generation, transmission and distribution facilities to be refinanced with the proceeds of the Bonds shall directly benefit the citizens of the City by reducing the costs of providing utility service within the City and thereby reducing the rates to be paid by industrial, commercial and residential utility customers within the city. In order to refinance the costs of the Project and refund the Prior Bonds, the Bonds are hereby authorized to be issued in one or more series in an aggregate principal amount not to exceed $151,000,000 pursuant to one or more Indentures in substantially the form which is Exhibit A, a copy of which is on file in the office of the City Clerk, and containing substantially the terms and provisions set forth therein. The Mayor and the city Clerk are hereby authorized and directed to execute, attest, seal and deliver the Indenture with such additions or changes in said form as such officers may recommend or approve upon consultation with the City Attorney and bond counsel to the City, the approval of such additions or changes to be evidenced conclusively by the execution and delivery of the Indenture. 2 It.f-~ SECTION 3. SECTION 4. SECTION 5. SECTION 6. The Mayor and the City Clerk are hereby authorized and directed to execute, attest, seal and deliver the Bonds as provided in the applicable Indenture, including the use of facsimile signatures on the Bonds. The Bonds may be issued in one or more series, shall be designated as City of Chula vista Industrial Development Refunding Revenue Bonds (San Diego Gas & Electric Company), and shall (i) be in such denominations; (ii) bear such date or dates; (iii) mature at such time or times; (iv) bear interest at such rate or rates, (v) be in such form and have such series designations; (vi) carry such registration privileges; (vii) be executed in such manner; (viii) be payable at such place or places within or without the State of California; (ix) be subject to such terms of redemption; and (x) be subject to such other terms and conditions, all as provided in the applicable Indenture, as finally executed. The City shall lend the proceeds of the Bonds to the Company to refinance a portion of the cost of the Project and refund the Prior Bonds pursuant to one or more Loan Agreements in substantially the form which is Exhibit B, a copy of which is on file in the office of the City Clerk, containing substantially the terms and provisions (including repayment provisions) set forth therein. The Mayor and the City Clerk are hereby authorized and directed to execute, attest, seal and deliver the Loan Agreement with such additions or changes in said form as such officers may recommend or approve upon consultation with the City Attorney and bond counsel to the city, the approval of such additions or changes to be evidenced conclusively by the execution and delivery of the Loan Agreement. It is hereby found, determined and declared that the Bonds and interest and premium, if any, thereon shall never constitute a debt or liability or a pledge of the faith and credit of the City within the meaning of any constitutional or statutory provision or limitation and shall not directly or indirectly or contingently obligate the City to levy or to pledge any form of taxation whatever therefor or to make any appropriation for their payment. The Bonds and interest and premium, if any, thereon shall be payable solely and only from the revenues derived from the Loan Agreement. All actions heretofore taken by the officers and agents of the City with respect to the financing of 3 N-l SECTION 7. SECTION 8. SECTION 9. SECTION 10. Presented by the project and the authorization and issuance of the Bonds are hereby approved, confirmed and ratif ied, and the Mayor, the City Manager, the Director of Finance and the City Clerk, or any of them, or their duly authorized designees, are hereby authorized and directed to execute, attest, seal and deliver any and all documents, including but not limited to those described in the Indenture and the Loan Agreement, and do any and all things, deemed necessary to effect the issuance and delivery of the Bonds and the execution and delivery of the Loan Agreement and the Indenture and to carry out the intent and purpose of this resolution and otherwise necessary to carry out the financing of the Project. All consents, approvals, notices, orders, requests and other actions permitted or required by any of the documents authorized by this resolution, including without limitation any of the foregoing which may be necessary or desirable in connection with any default under or amendment of such documents, any transfer or other disposition of the Project, any substitution of credit enhancement for the Bonds or any redemption of the Bonds, may be given or taken by the Director of Finance without further authorization by the City Council, and the Director of Finance is hereby authorized and directed to give any such action consent, approval, notice, or request and to take any such action which such officer may deem necessary or desirable to further the purposes of this resolution and the financing of the Project. The provisions of this resolution are hereby declared to be severable and if any section, phrase or provision shall for any reason be declared to be invalid, such declaration shall not affect the validity of the remainder of the sections, phrases and provisions. All resolutions or parts herewith, if any (of which City), are hereby repealed conflict. thereof in conflict none are known to the to the extent of such This resolution shall become effective immediately. Approved as to form by Robert Powell, Director of Finance C:\rs\sdge.bnd 4 14- g- May 16, 1996 TO: The Honorable Mayor and City coun{~~ City Manager.J5) ~X~ on May 21, 1996 dJuncil Agenda FROM: John D. Goss, SUBJECT: Item No. ~ The resolution, indenture of trust and loan agreements that are attachments to this item are being prepared by the offices of Jones, Hall, Hill and White, bond counsel, and will be delivered separately as soon as they have been received. JDG:mab COUNCIL AGENDA STATEMENT Item IS- Meeting Date 5/21/96 ITEM TITLE: Resolution Authorizing the Issuance and Sale of Not to Exceed $130 million Aggregate Principal Amount of Polution Control Refunding Revenue Bonds of the City of Chula Vista to Refund Certain Bonds Issued by the California Pollution Control Financing Authority to Finance Costs of Certain Gas and Electric Facilities for San Diego Gas and Electric Company; Authorizing the Execution and Delivery of an Indenture of Trust and a Loan Agreement Providing for the Issuance of the Bonds and the Repayment of the Loan of the Proceeds Thereof, Respectively; and Related Matters SUBMITTED BY: Director of Fi.nance}-f~ City Attorne~!!o C' ~ REVIEWED BY: City Manager J~ ~ ./! (4/5THS Vote: Yes_No_XJ San Diego Gas & Electric Company ("SDG&E") has requested that the City take the necessary steps to assist them in refinancing up to five series of Pollution Control Revenue Bonds (PCBs), similar to the other refinancing item for Industrial Development Bonds on your agenda tonight. Last month Council adopted an ordinance allowing refinancings of this nature and passed a resolution setting a refinance participation fee at .25 percent of the principal amount, payable a the time of issue, for those refinancings contemplated at that time. SDG&E is simultaneously working with the California Pollution Control Financing Authority (CPCF A) on this transaction, and intends to make a decision further along in the process as to whether the city or CPCF A will be asked to act as the issuer. RECOMMENDATION: Adopt the resolution which authorizes the issuance and sale of revenue bonds to refinance outstanding pollution control bonds and sets the participation fee. BOARDS/COMMISSIONS RECOMMENDATION: Not Applicable. DISCUSSION: SDG&E has submitted a request to work with the City to qualify Chula Vista to possibly refinance five series of outstanding PCBs that are either already callable, or will become callable in the near future. The company proposes to refinance all five series of outstanding bonds through a single new refinancing issuance of approximately $130 million. SDG&E is simultaneously going through the process to qualify the CPCFA, the original issuer of the outstanding bonds, for the same refinancing. SDG&E's intention is to leave their options open as to which city will be requested to do the actual refinancing, based on what they think is best for them at that time. The resolution of intent authorizes the issuance and sale of up to $130 million in refunding t C;.../ Page 2, Item Meeting Date 5121/96 revenue bonds and: 1. Finds that the gas transmission and distribution facilities and electric generation, transmission and distribution facilities to be refinanced with the proceeds of the Bonds shall directly benefit the citizens of Chula Vista. 2. Authorizes Bonds to be issued in one or more series in an aggregate principal amount not to exceed $130 million. 3. Approves the Indenture of Trust and Loan Agreement providing for the repayment by SDG&E of the loan of the proceeds of the revenue bonds. The Loan A~reement is between the City of Chula Vista and SDG&E. It provides that the City willloan the proceeds of the revenue bonds to SDG&E to repay the loans with respect to the bonds previously issued by the CPCFA and that the loan repayment amounts by SDG&E will be sufficient to pay the principal and interest on the bonds issued by the City. Any bonds issued by the City on behalf of SDG&E will be limited obligation revenue bonds and will not constitute an indebtedness a!!ainst the general credit or taxin\: power of the City or the State of California. P~ment of the bonds will be solely from and secured by a Dled!!e of revenues to be received from SDG&E pursuant to the Loan Agreement. The Indenture of Trust is between the City of Chula Vista and the Trustee (to be named at a later date) and provides that the Trustee will keep records of the bonds issued, administer the bond proceeds in accordance with the Loan Agreement, receive loan repayments from SDG&E, and make the required payments to the bond holders. If Council approves the Resolution, there is a 60 day protest period during which time anyone may file a protest challenging the validity of the proposed transaction. If SDG&E decides to proceed with the City of Chula Vista as the issuer, Council will be asked to adopt a Resolution to approve the Official Statement, Bond Purchase Agreement, and the specifics of the bond financing in order to consummate the refinancing, as well as set the participation fee. FISCAL IMPACT: SDG&E will reimburse the City for any staff costs and administrative expenses associated with this process whether or not Chula Vista ultimately does the refinancing. SDG&E also pays all legal counsel, financial advisors and bond issuing costs directly, including counsel representing City of Chula Vista interests. In addition, if Chula Vista is selected as the issuer, the participation fee would result in between $325,000 and $429,000 in unanticipated General Fund revenue. fia:\drita\memoa\ditoctor\sdge-pcb.113 tr;-~ COUNCIL AGENDA STATEMENT Item No. lie Meeting Date 5-21-96 ITEM TITLE: Resolution \ <( ~O~ of the City Council of the City of Chula Vista Recertifying the Final Second-Tier Environmental Impact Report (FEIR 95-01) and Addendum for the Otay Ranch Sectional Planning Area (SPA) One Plan making certain Findings of Fact pursuant to the California Environmental Quality Act, adopting a Mitigation Monitoring and Reporting Program, adopting a Statement of OVerrid~a~iO SUBMITrED BY: Special Planning Projects Manager, Otay ~cb.~,t REVIEWED BY, City M@,""" J'i 1 ~~ <"""'" Vote, y.._No~J ----' The California Environmental Quality Act provides that, at least 10 days before certifying a final EIR, a lead agency "shall provide a written proposed response to a public agency on comments made by that agency". The Otay Ranch Project staff faxed the proposed responses on Monday, May 7, 1996, to twelve (12) public agencies. City Council considered and approved Resolution 18284 on May 14, 1996. RECOMMENDATION: Adopt Resolution of the City Council of the City of Chula Vista Recertifying the Final Second-Tier Environmental Impact Report (FEIR 95-01) and Addendum for the Otay Ranch Sectional Planning Area (SPA) One Plan making certain Findings of Fact pursuant to the California Environmental Quality Act, adopting a Mitigation Monitoring and Reporting Program, adopting a Statement of Overriding Considerations. BOARD/COMMISSION RECOMMENDATION: Not applicable. DISCUSSION: The California Environmental Quality Act provides that, at least 10 days before certifying a final EIR, a lead agency "shall provide a written proposed response to a public agency on comments made by that agency". Staff faxed the proposed responses on Monday, May 7, 1996, to twelve (12) public cba-113A.dQC &'16J96 \10-1 Page 2, Item No. Meeting Date 5-21-96 agencIes. City Council considered and approved Resolution 18284 on May 14, 1996. While no public agency requested additional time nor appeared before Council during the EIR discussion, staff is of the opinion that to be abundantly safe, City Council should recertify the Final Second-Tier Environmental Impact Report (FEIR 95-01) and Addendum for the Otay Ranch Sectional Planning Area (SPA) One Plan making certain Findings of Fact pursuant to the California Environmental Quality Act, adopting a Mitigation Monitoring and Reporting Program, adopting a Statement of Overriding Considerations. FISCAL IMPACT: None. Attachments: Resolution eir-a113.doc 5/16;96 Ib-~ RESOLUTION NO. 18304 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA RECERTIFYING THE FINAL SECOND-TIER ENVIRONMENTAL IMPACT REPORT (FEIR 95-01) AND ADDENDUM FOR THE OTAY RANCH SECTIONAL PLANNING AREA (SPA) ONE PLAN WHEREAS, the City of Chula Vista ("City") circulated a request for proposals to prepare an environmental impact report for the Otay Ranch SPA One Plan and selected the firm of Cotton/Beland/Associates out of nine candidate firms to prepare the Environmental Impact Report (EIR). On January 30,1995, the City, Cotton/Beland/Associates and the Otay Ranch L.P. entered into a three party contract where the City managed the preparation of the EIR, Cotton/Beland/Associates prepared the EIR and the Otay Ranch L.P. reimbursed the City for the full cost of EIR preparation; and WHEREAS, the firm of Cotton/Beland/Associates has prepared a Draft Second-tier Environmental Impact Report (DEIR 95-01). a Recirculated Second-tier Draft EIR and an Addendum on the Otay Ranch SPA One Plan, Annexation of Planning Areas 1, 3 and the Ranch House, General Development Plan Amendments, PC Zone Changes and Prezoning; and WHEREAS, this Second-tier EIR, the Recirculated Second-tier Draft EIR and Addendum incorporates, by reference, two prior EIRs: the Otay Ranch General Development Plan/Subregional Plan (GDP/SRP) EIR 90-01 and the Chula Vista Sphere of Influence Update EIR 94-03 as well as their associated Findings of Fact and Mitigation Monitoring and Reporting Programs. Program EIR 90-01 was certified by the Chula Vista City Council and San Diego County Board of Supervisors on October 28, 1993, and the Sphere of Influence Update EIR 94-03 was certified by the Chula Vista City Council on March 21, 1995; and WHEREAS, the Chula Vista Planning Commission held duly noticed public hearings on November 8,1995 and November 15, 1995 in the Council Chambers, 276 Fourth Avenue. These hearings were continued by a motion of the Planning Commission to March 27, 1996 and March 28, 1996, at which time the Planning Commission took public testimony on the adequacy of the information in the DEIR 95-01, the Recirculated DEIR and Addendum. The Planning Commission closed the public hearing and directed that the Final Environmental Impact Report be prepared including the responses to the comments received on the DEIR, the Recirculated DEIR and Addendum, the Findings of Fact, the Mitigation Monitoring and Reporting Program and the Statement of Overriding Considerations and; WHEREAS, the City Council of Chula Vista held a workshop regarding the project and all its components on April 30, 1996 and a duly notice public hearing on May 14, 1996, the City Council certified the EIR as adequate in compliance with CEOA. The City now desires to recertify this document to assure compliance with Public Resources Code ~21 092.5(a); and NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL of the City of Chula Vista does hereby find, determine, resolve and order as follows: 16-3 Resolution 18304 Page 2 I. RECORD OF PROCEEDINGS The proceedings and all evidence introduced before the Planning Commission and the City Council at their public hearings on the Draft EIR, the Recirculated EIR and Addendum held on November 8,1995, November 15, 1995, March 27,1996 and March 28,1996, their public hearings held on this Project on November 15, 1995, March 27,1996, April 10, 1996 and April 24, 1996 and the minutes and resolutions resulting therefrom, are hereby incorporated into the record of this proceeding. These documents, along with any documents submitted to the decision-makers, including documents specified in Public Resources Code Section 21167.6, subdivision(s), shall comprise the entire record of proceedings for any claims under the California Environmental Quality Act ("CEQA") (Pub. Resources Code ~21000 et seq.). The comments, oral and written submitted, as made either by EastLake or their attorneys, Luce, Forward, Hamilton & Scripps, that relate to CEOA's procedural and substantive compliance were withdrawn by EastLake and their attorneys and are not a part of this record of proceedings. II. FEIR CONTENTS That the FEIR consists of the following: A. Final Environmental Impact Report 95-01, including the Recirculated sections B. The Addendum for the Detachment for the Otay Landfill C. Appendices I-IV to the Final Environmental Impact Report D. Technical studies E. Information incorporated in the responses to comments F. Additionally, this FEIR and Addendum was prepared in concert with two prior Program EIRs: the Otay Ranch GDP/SRP EIR 90-01 and the Sphere of Influence Update EIR 94-03 as well as their attendant documents. III. FEIR REVIEWED AND CONSIDERED That the City Council of the City of Chula Vista has reviewed, analyzed and considered the FEIR 95-01 and Addendum and the environmental impacts therein identified for this Project. IV. CERTIFICATION OF COMPLIANCE WITH CECA That the City Council does hereby find that FEIR 95-01 and Addendum, fully comply with CEOA and CEQA Guidelines (California Code Regulations, Title 14, ~ 15000 et seq.), and the Environmental Review Procedures of the City of Chula Vista. V. INDEPENDENT JUDGMENT OF CITY COUNCIL That the City Council finds that the FEIR 95-01 and Addendum reflects the IIoA Resolution 18304 Page 3 independent judgment of the City of Chula Vista City Council. VI. NOTICE OF DETERMINATION That the Environmental Review Coordinator of the City of Chula Vista is directed after City Council approval of this Project to ensure that a Notice of Determination filed with the County Clerk of the County of San Diego. These documents, along with any documents submitted to the decision-makers, including documents specified in Public Resources Code Section 21167.6, subdivision(s), shall comprise the entire record of proceedings for any claims under the California Environmental Quality Act ("CEQA") (Pub. Resources Code ~21000 et seq.). Presented by G( i'O " Gerald Jamriska, Manager Special Planning Projects Bruce M. Boogaa City Attorney ! Ie. -s COUNCIL AGENDA STATEMENT Item 11- Meeting Date 5/21/96 ITEM TITLE: Public Hearing: Draft City of Chula Vista Subarea Preserve Plan for the Multiple Species Conservation Program (MSCP) SUBMITTED BY: Director of Planning &( REVIEWED BY: City Manager~'~ ~~ (4/5ths Vote: Yes_No X) In June 1995, the City Council authorized ~~f t;70rward comments on the preliminary draft of the Multiple Species Conservation Program, which was prepared by the City of San Diego, and would apply to lands within the City of San Diego, County of San Diego, City of Chula Vista, and several other jurisdictions within the southern and central portion of western San Diego County, In addition, the City Council authorized staff to prepare a draft subarea preserve plan for the City of Chula Vista, which could be included in the final draft MSCP and associated Environmental Impact Report / Environmental Impact Statement (EIR/EIS) which is being prepared for the program, In November, Council provided specific direction to staff regarding inclusion of policies in the draft MSCP pertaining to the University Site designated in the Otay Ranch General Development Plan, The following report summarizes the status of the major issues raised by the City Council in August regarding the draft MSCP, as well as summarizing the contents of a draft City of Chula Vista Subarea Preserve Plan, including consideration of policies regarding the Otay Ranch University Site, It should be noted that the preliminary draft MSCP Subarea Plan which was forwarded to the City Council last week has been substantially revised in response to comments received from the Resource Conservation Commission, US Fish and Wildlife Service (USFWS), California Department of Fish and Game (CDFG), and certain property owners. RECOMMENDATION: That the City Council: I) tentatively endorse the policy positions taken by the San Diego City Council for inclusion in the final draft MSCP Plan, and direct staff to continue to monitor City of San Diego actions on unresolved issues and return with a final report once these actions are completed; 2) provide direction to staff regarding policies to be included in the draft MSCP subarea plan pertaining to the Otay Ranch university site; and 3) direct staff to forward the draft MSCP subarea plan to the City of San Diego for evaluation in the final draft EIR/EIS for the overall MSCP plan. / / - I Page 2, Item _ Meeting Date 5/14/96 BOARDS/COMMISSIONS RECOMMENDATION: The Planning Commission held a workshop regarding this matter on May 8, but did not take any action at this time. The Resource Conservation Commission considered this matter on May 13. Their preliminary comments on the preliminary draft subarea plan are incorporated in the revised draft which is attached. However, the RCC did not make an overall recommendation on the draft plan at this time. DISCUSSION: In June 1995, the City of Chula Vista completed its review of the draft MSCP Plan and draft EIR/EIS. Following discussion of this Plan and EIR/EIS, the City Council authorized staff to forward a letter to the City of San Diego containing comments regarding a number of policy issues which were of concern to the City (see Attachments 1 and 2). At the same time, the County of San Diego Board of Supervisors prepared a series of "deal/negotiation points" which were similar in scope to the policy issues brought forward by the City of Chula Vista. These policy issues and "deal/negotiation points" were discussed by a committee of elected officials representing the City of San Diego, County of San Diego, City of Chula Vista and other MSCP participants, and formed the basis for policy negotiations which have been conducted between the local jurisdiction staffs and wildlife agency staffs since that time. In its action on April 23, 1996, directing staff to complete preparation of the final draft MSCP, the City of San Diego City Council provided policy direction to its staff regarding many of the major policy issues which had been brought forward during review of the previous draft plan. The City of San Diego's positions on these issues are described in Attachment 3, which includes a memorandum from Mayor Susan Golding setting forth a preliminary agreement among the City of San Diego, US Department of the Interior, and State Resources Agency regarding "Guiding Principles of the Multiple Species Conservation Program" (dated April 22, 1996), as well as a memorandum from Councilwoman Judy McCarty addressing these issues. Among the major issues addressed in Mayor Golding's preliminary agreement are: 1) financing / funding / acquisition; 2) assurances / species coverage; 3) preserve management and biological monitoring; and 4) local regulations and preserve design. The City Council took action to approve the recommended positions on most of these issues on April 23. Also included is a notice listing unresolved issues which will be further discussed by the San Diego City Council on Tuesday, May 28 (tentative). Our staff has reviewed the policy positions which have been endorsed to date by the San Diego City Council, as reflected in these attachments, and find that they adequately address many of / '? ~ ..1- Page 3, Item _ Meeting Date 5/14/96 the concerns previously expressed by the City of Chula Vista. We would recommend that our City Council tentatively endorse these policy positions, and direct staff to continue to monitor actions being taken by the City of San Diego on these issues and return with a final report once the City of San Diego has completed its review and actions regarding the unresolved issues. It should be emphasized that the City Council will have a further opportunity to review all of these issues in greater detail once the final draft MSCP Plan is completed. Chula Vista Subarea Preserve Plan In addition to participating in the review and formulation of policy positions as described above, City of Chula Vista staff has also prepared a draft Subarea Preserve Plan to be included in the final draft MSCP, and evaluated in conjunction with the final draft MSCP EIRlEIS (see Attachment 4). The City of Chula Vista Subarea Preserve Plan addresses the entire Chula Vista General Plan Area, and includes three main components: 1) existing incorporated areas; 2) Gtay Ranch; and 3) the Bonita area, including San Miguel Ranch. The draft Subarea Preserve Plan has been drafted to conform to guidelines set forth by CDFG for the preparation of subarea plans under the State's Natural Community Conservation Program (NCCP). However, in light of certain key policy issues associated with the Subarea Preserve Plan, staff has included reference to two "alternatives" within Gtay Ranch and San Miguel Ranch: Alternative 1: reflects existing General Plan and adopted General Development Plan land use and open space designations. Alternative 2: would result in additional permanent open space being included in the final plan in certain key locations, provided that terms of tentative agreements pertaining to land use designations of other parcels andlor land acquisition by the federal government are met. With regard to Gtay Ranch, the key locations which would be preserved under Alternative 2 include portions of Villages 13 (Resort Village), 14 (Proctor Valley village), and 15 ("south of the lake"), all of which are east of the Gtay Reservoir. The Baldwin Company has requested certain land use considerations, involving transfers of residential density to the Western Parcel and development within areas previously designated as open space on the Western Parcel, as a trade-off for preservation of these key locations. These proposals would require approval of a GDP amendment by the City and County, and are listed in Section 4.5.1.2 of the draft Subarea Plan. With regard to key locations on the Gtay Ranch owned by property owners other than the Baldwin Company, these properties are subject to a tentative agreement whereby the federal government is pursuing possible purchase of these properties. (" :2 I ,,:) Page 4, Item _ Meeting Date 5/14/96 In response to a specific request by Council when the MSCP was discussed at the Council workshop on Otay Ranch on April 30, staff has had preliminary discussions with representatives of the property owners of Village 15 ("south of lake") regarding a possible modified plan which would reduce overall development within this area to further meet biological objectives, but still provide an opportunity for development of estate-type housing within this area. Our preliminary discussions have indicated that this approach may be feasible; however, additional analysis by the property owner is needed prior to submitting a specific proposal, and discussions with the wildlife agencies would also need to occur regarding this option. Staff will continue to pursue this option with the property owners and the wildlife agencies during the coming months. In addition, under Alternative 2, staff is recommending that a specific delineation of the University Site east of Salt Creek Canyon which would minimize impacts to habitats within this area be included for study. The most recent proposal made by City staff would limit the area to be included in the University Site, based on specific biological and planning criteria which have been recommended by the City's consultant, and would result in a site of approximately 288 acres, in addition to Villages 9 and 10 (see Attachment 5.) However, staff from CDFG and USFWS have not agreed to this approach at this time. Staff is awaiting further response regarding this proposal, or other options which could be pursued with regard to the proposed University Site. With regard to San Miguel Ranch, the key location to be preserved under Alternative 2 would be the area of the Northern Parcel which is currently designated for development of up to 357 dwelling units under the City's previously adopted General Development Plan. The project applicant has submitted two revised plans (one reflecting the Proctor Valley alignment of SR-125, and the other reflecting the Citizens Advisory Committee alignment) which would eliminate development from the Northern Parcel and would allow a greater number of residential dwelling units on the Southern Parcel than are allowed under the previously approved GDP. Staff is currently evaluating these plans, and will be forwarding recommendations to the Planning Commission and City Council regarding them later this year. In general, the draft Subarea Preserve Plan reflects either existing approved plans or tentative agreements between individual property owners and the City. The exceptions include: 1) certain properties located along the Otay River, west of Otay Ranch, which are within the focused planning area of the Otay Regional Park Plan; and 2) certain properties located near San Miguel Ranch, which are unincorporated and do not have development plans at this time. These properties have been designated for possible future inclusion in the preserve, consistent with their designation as "open space" in the City's General Plan. However, in light of the fact that these property owners have not prepared plans or negotiated tentative agreements with the ;'/-1 Page 5, Item _ Meeting Date 5/14/96 wildlife agencies and the City at this time, they are designated as "minor amendment" areas, which means that they can be included in the Plan at a later date without requiring a major amendment to the MSCP Plan. It should be noted that staff has been in recent discussions with Watson Land Company regarding updating the final draft Subarea Plan to include specific designations for its property, so a minor amendment would not be required (see attached correspondence) . Next SteDs Following authorization by the City Council to forward the draft City of Chula Vista Subarea Preserve Plan to the City of San Diego for inclusion in the final draft MSCP and EIR/EIS, the City of San Diego and its consultants will require approximately 3 to 4 months to complete these documents. Once they are completed, they will be brought back for further review and public hearings by the City of Chula Vista and other participating jurisdictions in August or September 1996. In addition, it would be necessary for the City to enter into an Implementation Agreement, as well as approving necessary General Development Plan amendments and ordinance amendments, in order for the MSCP Subarea Plan to be fully implemented. FISCAL IMPACT: The final draft MSCP Plan will include an updated fiscal and economic analysis of the overall program. Attachments: 1) Letter to Dave Flesh, City of San Diego, from City of Chula Vista, dated July 27, 1995, regarding Final Draft MSCP. 2) Letter to John Kovac, City of San Diego, from City of Chula Vista, dated July 10, 1995, regarding Draft Joint EIR/EIS for MSCP. 3) MSCP Policy Positions, City of San Diego. 4) Draft City of Chula Vista Subarea Preserve Plan for the Multiple Species Conservation Program, dated May 9, 1996. 5) Recommended Policies for Use in Delineating a University Site; 6) Correspondence regarding Draft Subarea Plan. (F9\MSCP.All) - .- / //~ i COUNCIL INFORMATION MEMO -h1 May 21, 1996 SUBJECT: The Honorable Mayor and City Council \\r\ John Goss, City Managerj~ ~ ~ \ Bob Leiter, Director of Planni~?t'" Tables and maps for MSCP Subarea Plan (Agenda Item 11) TO: VIA: FROM: Attached are tables containing acreage estimates representing vegetation totals for the draft Chula Vista MSCP Subarea Plan. Please replace pages 37 and 38 of the Administrative Draft text. These figures have been extracted from biological data contained in the City's Geographic Information System (GIS), and represent the two alternatives addressed in the Subarea Plan text. A graphic representation of the proposed preserve boundaries was forwarded to you prior to last week's meeting (Figure 2 identified in text). Slides of the Subarea Plan map will be available at tonight's meeting for reference. Also attached are exhibits representing the Baldwin Company's Tentative Agreement with the resource agencies. 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N I I ~ ~ j ~ . . ~ . . .,.....c > ( < ~ ! 0 ! ... . ~ \\ ~ ~ 1\ r' ~ .... = ~L~' '/~ . -- ~" j i?'>-' . ... ~~ ~~~; .. ~ '0 '-', . '\1.;,.. " , ) ,. ,', '''#' . ',,--, I.. -.' '.'r ,. .. ~. 11 . , , ' '- -, . " " ~ .. - ., ". . , , Vo"* . ":..." : < . .::. ;I ,'. ',".n' _.'" '~"~ >~/ ... ~ '~":':> ,,;'.' \ . ," <.I,.":",~', '-'j", _' , ".", ,. "\';0, ' "--.' 1, ~.~..".. ."~L~,l,>>>...~IJ".,,.~'"\~l,~,>"""\" ". "",.,>" .,,',:\\' ,}""'J' 'j ,# I BALDWIN TENTATIVE AGREEMENT - ExHiBIT 3 I ",:~:} ..~.,? -- '#" ./ ~ Very Low Density I)-I) Low Density Resic L I ... I '",U1_U",tlinm n EXHIBIT 4 VILLAGE 5 ( /- i ,. -:;$::>'. '..~i.. ...~\.. ..~.-:;t'~ _, ~~~~ - , -~:-MI t:i-L.~ '...,[:.! r;1"'91'~'~. .~:;,... 5 !~,..;"":{;:;.~.:~ . I - :~.. 6. - -. ~ . . . i\ ~. S...--.... ~ ~ V'. . '- }\!( OT. .' . f,Y- '0-.. ~ ,.r.,. ..", ,,0 rr."~'-... ~ ~ ...- '--.~' -.- - A~ VILI The Honorable Shirley Horton Mayor City of Chula Vista 276 Fourth Ave. Chula Vista, CA 91910 Subject: MSCP Dear Mayor Horton and City Council Members: As you know, the EastLake III area has been actively dry farmed for generations, and it is entitled with a General Development Plan and Development Agreement. We are concerned that the MSCP Subarea Plan not preclude current farming activities and in the future, development as identified in the GDP. Prior to the adoption of the final Subarea Plan and the Implementation Agreement, we request the following items be addressed: 1. While property in EastLake III is not included in the preserve boundaries, it is subject to the policies outlined in the Subarea Plan, should sensitive species be identified. We request that EastLake III be designated a Tier IV Agricultural Land in the Plan. We are very concerned that the Plan, as written now, leaves open for interpretation that barley fields be designated "non-native" grassland, thus requiring mitigation for land that is dry farmed. The process for deciding what Tier-level a property falls into, is not specified. We recommend that the adopted General Development Plan and associated EIR should be the basis for determining this important designation. In regards to section 7.2.2, Agricultural Exemption, the plan should clarify that this reference is for agriculture lands within the preserve boundary. 2. The Subarea plan, as written, could preclude EastLake from constructing parks or other active uses that are allowed by the Adopted EastLake III General Development Plan, in areas adjacent to the preserve. As written, the Plan would allow jurisdictions other than Chula Vista to determine uses in the open spaces in EastLake that are adjacent to a preserve area. We believe the Plan should reserve for Chula Vista and the adopted GDP, the ability to specifY uses on land adjacent to preserve areas. Specifically, Sections 6.2 and 6.3 are unclear as to the buffer requirements for lands adjacent to the preserve and should be clarified to allow the adopted GDP to be the guide. ) 7-/( ~~'( ~",.,." 6 ... ..... ..... fASTLAKE DEVELOPMENT COMPANY 900 lane Avenue Suite 100 Chula V1sta, CA 91914 (619) 421.0127 FAX (619) 421-1830 Mayor Horton May 21, 1996 Page 2 3 . Section 4.1.1. 8 should clarify that preserve lands in EastLake are located in EastLake Hills and owned by the EastLake I Homeowner's Association. This land was studied under EIR 81-3 (noted in 4.1.1.8.1). However, all other areas in EastLake, specifically EastLake III, have been studied under subsequent EIR's such as 86-4 and EIR 89-9. 4. Section 6.5.4 should be clarified to contemplate the extension of Orange Avenue, east to the Olympic Training Center. 5. Section 7.2.4.1 suggests that all mitigation requirements generated within the Chula Vista Subarea must be mitigated within the Chula Vista Preserve. The nature of our relationship with Western Salt facilitates the opportunity to mitigate possible EastLake impacts on other Western-owned properties outside of the Chula Vista Subarea. This draft plan should contemplate that potential scenario and not restrict how mitigation is achieved. 6. On Table 3, the chart indicates that ifzero (-0-) acres ofland are taken of non-native grassland, then a one (1) acre mitigation is required outside of the preserve boundary. Perhaps this should be reexamined. 7. Section 9.1 of the Plan suggests that minor adjustments to the plan require USFWS approval. In the event that minor grading impacts in EastLake Woods changed the Plans boundary, it should be the goal of the Subarea Plan to allow that change to be entirely within the City's jurisdiction. Thank you for your consideration of these comments. li~ Project Manager KW:sg f:Iesbare\katy\mscpS2I.doc J 7- / ~----- Jtzv...11 california Native plant ~txNet~ '96 PlAY 21 119 :06 San Diego Chapter PO Box 1390 San Diego, CfWf,pcfJ1]cf VIS! J my CLERK'S BFFIC: Chula Vista City Council 276 Fourth Avenue Chula Vista, CA 91910 May 21, 1996 Re: Draft City of Chula Vista Subarea Preserve Plan for the Multiple Species Conservation Program Dear Councilmembers: The San Diego Chapter of the California Native Plant Society has reviewed material for the draft City of Chula Vista Subarea Preserve Plan for the Multiple Species Conservation Program, The information available to us was incomplete at the drafting of this letter and our comments are therefore incomplete in reference to adequacy of habitat protection (Tables I and 2), map lines, an implementation agreement, and policy directions recommended by City of San Diego Councilmembers, Maps of the preserve design were not available for our review and our comments are directed at what we presume are the proposed preserve boundaries, Our concerns and comments follow, The Sweetwater River is a significant biological linkage and as such should be included within the preserve, Information on the Sweetwater Valley Regional Park directs one to Section 3,2,2.4 for additional discussion but we can find no such section in the copy of the Subarea Preserve Plan available to us, We have no maps to check on preserve status for this riparian area The document is deficient in numbers, We have blank spaces for acreages throughout the document including Tables I and 2, It is not clear that Riparian forest, Riparian scrub, Southern coastal salt marsh, and Maritime succulent scrub are adequately conserved, The restoration component for Maritime succulent scrub in the Otay Ranch development has been removed and development will now be permitted west of Paseo Ranchero but it is not clear that there has been additional protection elsewhere for this habitat. The long term preservation of this habitat can only be provided in the south bay, We request a more adequate analysis of preservation of these habitats, The Salt Creek area contains major populations of Opuntia parryi var, serpenhna, Please verify in map format that Salt Creek is included in the preserve and that the Opuntia is fully protected from upslope disturbances (ie, there is no development on mesas between the Lower Otay Reservoir and the Salt Creek area), /7-/? ~ ~ Dedicated to tve preservation of California native flora We prefer the subarea plan alternative two. We do not object to the loss of the highly disturbed vernal pools in the Sensitive Resource Study Area as additional compensation for development losses in other areas if transplantation of the A{yosurus minimus var. apus occurs but we do object to the loss of the large Acanthomintha ilicifolia (San Diego thommint) population in this same study area. San Diego thornmint populations are known to fluctuate dramatically in numbers ITom year to year. Small populations are subject to local extinction and the long tenn viability of the species necessitates preservation of the large populations of this species. This is the only large thommint population in the south bay. We are of the understanding that protection ofa single hill adjacent to Otay Lakes Road would conserve this state listed endangered species. We request this preservation to ensure long tenn viability of this listed species. Legally defensible habitat plans must provide long tenn viability of listed species. We thank you for the opportunity to comment on this Subarea plan and wish all data had been available for review in a timely manner so that we could ensure the validity of our comments. If we can be of further assistance do not hestitate to contact us at 270-9573. Sincerely, ,,$ ORDINANCE NO.~' ., 3 .J.... AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CI-{ULA VISTA TO ADOPT AN AMENDMENT TO CHAPTER .J!f48 OF THE MUNICIPAL CODE RELATING TO THE ,,~,"PLANNED COMMUNITY (PC) ZONE (pCA 96-02); APPROVE ./ THE PREZONING OF APPROXIMATELY 600.09 ACRES TO .'~ -{' THE PC ZONE, PUBLIC/QUASI-PUBLIC (PQ) ZONE ~ 'n.n::; A <;iJU~JTl T1T~ AT (A) 7(\>JP (r"'~ t\&. A) _. " WHEREAS, applications for an amendment to the Planned Community (PC) Zone and for prezoning 600.09 acres of presently unincorporated land were filed with the City of Chula Vista Planning Department on October 10, 1995 by the City of Chula Vista ("Applicant"), and; WHEREAS, the Municipal Code does not presently allow for the application of the PC Zone on parcels less than 50 acres in size, and; WHEREAS, the annexation of Planning Areas 1 and 3 and the Ranch House (Exhibit II) will create a need for the application of the PC Zone on parcels of less than 50 acres ("Project"), and; WHEREAS, the wording of said amendment to Chapter 19.48 is attached as Exhibit I to this ordinance, and; WHEREAS, LAFCO policy requires that prior to a city annexing property, said property must be prezoned. Thus, the proposed prezoning has been requested in order to bring those certain parcels of Otay Ranch Planning Areas 1 and 3 and the Ranch House, which are to be annexed to the City, into conformance with LAFCO policy ("Project"), and; WHEREAS, those parcels to be prezoned PC are identified by their Assessor Parcel Numbers as: 585-150-02,595-050-05,595-050-06,595-070-26, 641-030-03, 641-030-09,641- 030-10, 641-060-02, 641-060-03, 643-020-40, 643-020-41, 643-020-45, 643-020-46, 643-020- 47, 645-030-03, 645-030-04, 645-030-05, 645-030-06, 645-030-07, 645-030-08, 645-030-09, 645-030-10,645-030-11,645-030-12, 645-030-1)a=d 645-030-14\ as shown on Exhibit II, and; -.L.Q~ t, "'1/-0 f.O-d ~ WHEREAS, those parcels to be prezoned PQ are identified by their Assessor Parcel Numbers as: 643-020-08, 643-020-13, 643-020-25, 643-020-26, 643-020-27 and 644-070-04, as shown on Exhibit II, and; '.YII~~:& A ~, th~t Falgil to '98 jJF919ReEl A is i8entiti~ by AI3;);{.;.;););Vl P4H.,,1;;1IJliRlhPT h.i.:1:. ...Q68 86, 413 131IVWII VII J!.}(hioh II, Gud, WHEREAS, the Planning Commission set the time and place for hearings on said Project and notice of said hearings, together with its purpose, was given by its publication in a newspaper of general circulation in the City and its mailing to property owners and tenants within 1,000 feet of the exterior boundaries of the property at least 10 days prior to the hearing, J7-V Ordinance No. Page 2 and; WHEREAS, the hearings were held at the time and place as advertised on November 8, 1995 and November 15, 1995 in the Council Chambers, 276 Fourth Avenue, before the Planning Commission. Said hearings were continued to March 27, 1996, April 10, 1996 and April 24, 1996 by a motion of the Planning Commission at which time, said hearings were thereafter closed, and; WHEREAS, the Environmental Review Coordinator has conducted a Second-tier Draft Environmental Impact Report (EIR) EIR 95-01, a Recirculated Second-tier Draft EIR and Addendum, and Findings of Fact and a Mitigation Monitoring and Reporting Program have been issued to address environmental impacts associated with the implementation of the Project, and; WHEREAS, the Second-tier EIR, the Recirculated EIR and Addendum incorporates, by reference, two prior EIRs: the Otay Ranch General Development Plan/Subregional Plan (GDP/SRP) EIR 90-01 and the Chula Vista Sphere of Influence Update EIR 94-03 as well as their associated Findings of Fact and Mitigation Monitoring and Reporting Program. Program EIR 90-01 was certified by the Chula Vista City Council and San Diego County Board of Supervisors on October 28, 1993, and the Sphere of Influence Update EIR 94-03 was certified by the Chula Vista City Council on March 21, 1995, and; WHEREAS, to the extent that these findings conclude that proposed mitigation measures outlined in the Final EIR and Addendum are feasible and have not been modified, superseded or withdrawn, the City of Chula Vista hereby binds itself and the Applicant and its successors in interest, to implement those measures. These findings are not merely informational or advisory, but constitute a binding set of obligations that will come into effect when the City adopts the ordinance approving the Project. The adopted mitigation measures are express conditions of approval. Other requirements are referenced in the Mitigation Monitoring and Reporting Program adopted concurrently with these Findings and will be effectuated through the process of implementing the Project. NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL of the City of Chula Vista does hereby find, determine, resolve and order as follows: I. PLANNING COMMISSION RECORD The proceedings and all evidence introduced before the Planning Commission at their public hearing on the Draft EIR, the Recirculated EIR and Addendum held on November C:\PCA_PCZ.DOC ~-d-. )7-~\ Ordinance No. Page 3 8, 1995, November 15, 1995, March 27, 1996 and March 28, 1996, their public hearings held on this Project on November 15, 1995, March 27, 1996, April 10, 1996 and April 24, 1996 and the minutes and resolutions resulting therefrom, are hereby incorporated into the record of this proceeding. In accordance with Public Resources Code Section 21167.6, these documents, along with any documents submitted to the decision makers, shall comprise the entire record of the proceedings for any claims under the California Environmental Quality Act (CEQA). II. ACTION The City Council hereby approves the ordinance to amend the Planned Community Zone finding that it is consistent with the City of Chula Vista General Plan and that the public necessity, convenience, general welfare and good zoning practice supports the amendment to the PC ZOne, attached as Exhibit I. The City Council hereby approves the prezoning of 600.09 acres to the PC ZOne, PQ ZOne and the A ZOne as more full identified in Section III herein, and identified by their Assessor Parcel Numbers as: 585-150-02,595-050-05, 595-050-06, 595-070-26, 641- 030-03,641-030-09,641-030-10,641-060-02,641-060-03, 643-020-40, 643-020-41,643- 020-45,643-020-46,643-020-47,645-030-03,645-030-04,645-030-05,645-030-06,645- 030-07,645-030-08,645-030-09,645-030-10,645-030-11,645-030-12,645-030-13,645- 030-14,643-020-08,643-020-13,643-020-25, 643-020-26, 643-020-27, 644-070-04 and 644-060-06 finding that the public necessity, convenience, general welfare and good zoning practice supports the prezoning of said parcels, attached as Exhibit II. III. PREZONING That the property with Assessor Parcel Numbers 595-050-05 and 595-050-06, consisting of approximately 7.5 acres, generally located 2,300 feet west of Proctor Valley Road and 3,800 feet north of Proctor Valley Road, as diagrammatically presented on the area map attached hereto as Exhibit II, be prezoned Planned Community. That the property with Assessor Parcel Numbers 643-020-40, 643-020-41, 643-020-45, 643-020-46, 643-020-47 and 595-070-26, consisting of approximately 128.84 acres, generally located on the east side of the proposed SR 125 alignment, approximately 4,500 feet south of Telegraph Canyon Road, as diagrammatically presented on the area map attached hereto as Exhibit II, be prezoned Planned Community. C:\PCA_PCZ.DOC L,A,--J ~ ) 'l~{' Ordinance No. Page 4 That the property with Assessor Parcel Numbers 645-030-03, 645-030-04, 645-030-05, 645-030-06,645-030-07,645-030-08,645-030-09,645-030-10,645-030-11,645-030-12, 645-030-13 and 645-030-14, consisting of approximately 59.54 acres, generally located east of the planned extension of Paseo Ranchero and north of the City of San Diego boundary, as diagrammatically presented on the area map attached hereto as Exhibit II, be prewned Planned Community. That the property with Assessor Parcel Number 644-060-06, consisting of approximately 136.47 acres, generally located on the north side of Otay Valley Road, on the east side of Rock Mountain Road for a distance of approximately 300 feet, as diagrammatically presented on the area map attached hereto as Exhibit II, be prezoned ~.;~-IL;f'n -1 Cc.~... ~OW."'4.u.."""'1 That the property with Assessor Parcel Numbers 643-020-08,643-020-13,643-020-25, 643-020-26 and 643-020-27, consisting of approximately 56.77 acres, generally located south of Telegraph Canyon Road on the west side of proposed SR 125, as diagrammatically presented on the area map attached hereto as Exhibit II, be prezoned Public/Quasi-Public. That the property with Assessor Parcel Number 644-070-04, consisting of approximately 19.59 acres, generally located approximately 500 feet south of Rock Mountain and east of the planned extension of La Media Road, as diagrammatically presented on the area map attached hereto as Exhibit II, be prezoned Public/Quasi-Public. That the property with Assessor Parcel Number 641-030-03, consisting of approximately 9.9 acres, generally located on the north side of East Palomar Street approximately 1,400 feet west of Paseo Ranchero, as diagrammatically presented on the area map attached hereto as Exhibit II, be prezoned Planned Community. That the property with Assessor Parcel Number 641-030-09, consisting of approximately 7.82 acres, generally located south of Telegraph Canyon Road, approximately 2,000 feet west of the intersection of Paseo Ranchero, as diagrammatically presented on the area map attached hereto as Exhibit II, be prewned Planned Community. That the property with Assessor Parcel Number 641-030-10, consisting of approximately 1.82 acres, generally located south of Telegraph Canyon Road, approximately 2,000 feet west of the intersection of Paseo Ranchero, as diagrammatically presented on the area map attached hereto as Exhibit II, be prezoned Planned Community. C:\PCA_PCZ.DOC ~~ /.~ J7-sp / Ordinance No. Page 5 IV. CERTIFICATION OF COMPLIANCE WITH CEQA That the City Council does hereby find that FEIR 95-01 and Addendum, the Findings of Fact, the Mitigation Monitoring and Reporting Program and the Statement of Overriding Considerations are prepared in accordance with the requirements of the CEQA, the State EIR Guidelines and the Environmental Review Procedures of the City of Chula Vista. V. EFFECTIVE DATE A. The ordinance to amend the PC Zone shall take effect and be in full force the thirtieth day from its adoption. .,.6- B. The zoning of those parcels to PC~Q aM-JoIr shall become effective at the same time that the annexation becomes effective. VI. ATTACHMENTS All attachments and exhibits are incorporated herein by reference as set forth in full. Presented by Approved as to form by Gerald Jamriska, Special Planning Projects Manager Cl_ -(lt0\.'o'-<... (~~ Bruce M. Boogaard, City Attorney A: \CCfI_ ord\pca ""pc_.doc Attachments: Exhibit I Exhibit II C:\PCA_PCZ.DOC ~~ ~ j'J~&- CITY COUNCIL AGENDA STATEMENT Item~ Meeting Date 5/21/96 ITEM TITLE: PUBLIC HEARING: TO CONSIDER COASTAL DEVELOPMENT PERMIT #69 FOR THE CONSTRUCTION OF SEGMENT OF CALTRANS' BAYSHORE BIKEWAY FROM F STREET NORTH TO D STREET AND APPROXIMATELY 100 LINEAR FT UNDER THE 1- 54/1-5 ON RAMP commMunity D~evelopme~r\,~ector C.s, City anager Pv(j J\,J{ , ~, (4/5ths Vote: Yes Council Referral No, No XI N/A SUBMITTED BY: REVIEWED BY: BACKGROUND: Staff is recommending continuation of the public hearing to complete discussions and coordination with associated jurisdictions; namely, Coastal Commission, National City, CalTrans and the Fish and Wildlife Service. RECOMMENDATION: Postpone the public hearing to a date to be announced and renotice the public hearing at the appropriate time. [c:lwp51Ibuchanlal13slcdp69.a13] 1~ -, CITY COUNCIL AGENDA STATEMENT Item 1<1 Meeting Date 5/21/96 ITEM TITLE: PUBLIC HEARING: TO CONSIDER COASTAL DEVELOPMENT PERMIT #70 FOR THE CONSTRUCTION OF A 35-FOOT HIGH, 24- FOOT WIDE FREESTANDING SIGN AT THE BROADWAY ENTRY TO CHANNELSIDE SHOPPING CENTER Community Developmen: (\r~ctor L ~S , City ManagerJ1 ~ ~\ u ./ ' (4/5ths Vote: Yes _ No .1LJ Council Referral No. N/A SUBMITTED BY: REVIEWED BY: BACKGROUND: The applicant has requested that the project be rescheduled to the June 11, 1996, City Council meeting to allow additional time for the applicant to complete and submit the appropriate project plan diagrams and supplemental information. RECOMMENDATION: To continue the public hearing to June 11, 1996. [c:lwp51Ibuchanla113slcdp70.a13] \q-I COUNCIL AGENDA STATEMENT Page 1, Item: .;;)D Meeting Date: OS/21/96 ITEM TITLE: Public Hearing: PCM-96-14: Amendment to the Rancho del Rey Sectional Planning Area (SPA) I Plan for approximately 27 .15 acres by combining the Employment Park lA and Employment Park lB Districts into a single Employment Park District, and modifying the permitted, conditionally permitted and prohibited land uses allowed therein - Cinti Land Planning representing various property owners Ordinance ~6 'l s;- Amending the land use district map established by the Rancho Del Rey Sectional Planning Area I Plan by 1) creating one land use district from two existing land use districts by combining said two districts, 2) redesignating approximately 27.15 acres of land into the newly created land use district, 3) deleting two existing land use districts, and 4) modifying the permitted, conditionally permitted and prohibited land uses applicable thereto for the newly created land use district SUBMITTED BY: Director of Planning pi REVIEWED BY: City Manager 11 ~ 1G (4/5ths Vote: Yes_NoX) On behalf of various property owners along the eastern and northern portions of Tierra del Rey, Cinti Land Planning is requesting that the parcels currently designated under the Rancho del Rey Sectional Planning Area I Plan (SPA I) as Employment Park I-A and Employment Park I-B (EP-IA and EP-IB) be combined into a new district called, simply, Employment Park. This would entail creating the new land use district and deleting the two old ones. The current land uses listed for the Employment Park Districts in the land use matrix found in Chapter IX: Business Center Districts of the Planned Community Regulations for SPA I would also be somewhat modified, with some uses deleted, some new ones added and others amended. The locator map and the revised plan for this area can be found in Exhibit la and Ib, and the revised Chapter IX land use matrix can be found in Exhibit 2. The original Employment Park Districts Regulations are attached as Exhibit 3. The Environmental Review Coordinator has determined that the project falls under the purview of EIR-87-01 and EIR-92-02 and that an addendum to these environmental impact reports is the only environmental document required for this project. This addendum is on file in the Planning Department under IS-96-11. RECOMMENDATION: That Council approve the amendments in accordance with the attached Draft City Council Ordinance. :lP -\ Page 2, Item: Meeting Date: 05/21/96 BOARDS/COMMISSIONS RECOMMENDATION: At its 4/24/96 meeting, the Planning Commission voted 5-0 recommending that Council approved the requested amendment. DISCUSSION: 1. Site Characteristics: At present, the subject area is generally developed with office and limited manufacturing land uses. Exhibit 4, titled Amendment Key Map, shows the locations of each land use currently existing or proposed for subject properties. Currently, the land uses in this area are: Parcel No. 22 & 03 04 20 21 06 24 26 17 16 15 12 23 Land Use Vacant* EDD, State of California Vacant SDG&E Substation Office building Vacant Pacific Southwest Association of Realtors Health Services Office buildingl manufacturing Vacant Vacant Vacant Land Use Classification Conditional use* Conditional use Open for development Conditional use Permitted use Open for development Permitted land use Conditional use Permitted land use Open for development Open for development Open for development *Parcels 22 and 03 are to be combined and will be developed as a multi-plex theater by Cinema Star Theaters The development pattern to date is clearly office/service oriented with some limited industrial and manufacturing. The proposed changes to the land use districts and the permitted and conditionally permitted uses take the existing land uses into consideration, provide for additional limited industrial uses, and yet provide flexibility for the property owners to attract somewhat more diverse types of land uses. 2. Zoning and Land Use: Site: North: South: East: West: Zoning PC (Planned Community) PC PC PC PC ~D-~ Land Use Various office, limited industrial Open Space (Canyon) Vacant Residential Utility (SDG&E ROW) Retail (Price Club) Page 3, Item: Meeting Date: OS/21/96 Surrounding land uses will not be affected by the proposed changes, nor will the proposed changes be affected by surrounding land uses because the same character of development which has been established will continue. 3. Proposal: The applicant is requesting the combining of the EP-IA and EP-lB Districts of the Rancho del Rey SPA I Plan into a new district to be called the Employment Park District. In effect, the EP-IA and EP-lB Districts are being deleted and a new EP District created to replace them. This requires amending the Land Use Districts Map from the Rancho del Rey SPA I Plan shown in Exhibit lb, and amending the land uses which will be permitted, conditionally permitted or prohibited under the new land use district listed in Exhibit Z. 4. Analvsis: The proposed changes to the SPA I Plan would bring the PC Regulations more into line with the existing and planned land uses in the Employment Park. In addition, the general desire to have limited industrial uses in the same area is not diminished. At the same time, the initiative to develop on the vacant parcels is enhanced. Exhibit 2 is the revised land use matrix of the permitted, conditionally permitted and some prohibited land uses for the new Employment Park District. When reviewing each land use under the current EP-IA and EP-lB it was determined to use the less restrictive of the three options: permitted, conditionally permitted or prohibited. Thus, if for example a land use in the EP-IA district was a conditionally permitted use but a permitted use in the EP-IB district, under the EP District this same use is permitted. The very first land use listed under A. Manufacturing falls under this category. Given the established land uses in the area, certain land uses originally listed in the land use matrix have been deleted because they do not fit the character of development. For example, land use B.Z. Moving and Storage Firms, is now a prohibited use, indicated by "N." In this instance, it was determined that large moving vans pulling into and out of the Tierra del Rey neighborhood does not appear to lend itself to the existing pattern of development, so this land use is now prohibited. The most significant change, besides the combining of the EP-IA and EP-lB Districts into a single EP District, is that property owners will now have more flexibility in attracting the types of uses which are considered to be of the same nature as the established pattern of development, yet the general purpose of the EP District as a limited industrial area is held intact. 5. Conclusion: Staff has concluded that the proposed changes remain in conformity with the General Plan's goals of developing this area as limited industrial, yet provides additional flexibility to the property owners consistent with this goal. FISCAL IMPACT: All amendment costs are covered by developer deposit; no fiscal impact to the City. ~o-3 Page 4, Item: Meeting Date: OS/21/96 Attachments: I. City Council Ordinance No. _ 2. Planning Commission Resolution No. PCM-96-14 3. Disclosure Statements Exhibits: la. Locator Map lb. Land Use Districts Map from The Rancho del Rey SPA I Plan 2. Revised Permitted, Conditionally Permitted and Prohibited Land Uses from Chapter IX-A: Employment Park District 3. Original Employment Park Districts Regulations 4. Amendment Key Map JP-~ ORDINANCE NO. ~l" 1~ AN ORDINANCE OF THE CITY OF CHULA VISTA AMENDING THE LAND USE DISTRICT MAP ESTABLISHED BY THE RANCHO DEL REY SECTIONAL PLANNING AREA I PLAN BY 1) CREATING ONE LAND USE DISTRICT FROM TWO EXISTING LAND USE DISTRICTS BY COMBINING SAID TWO DISTRICTS, 2) REDESIGNATING APPROXIMATELY 27.15 ACRES OF LAND INTO THE NEWLY CREATED LAND USE DISTRICT, 3) DELETING TWO EXISTING LAND USE DISTRICTS, AND 4) MODIFYING THE PERMITTED, CONDITIONALLY PERMITTED AND PROHIBITED LAND USES APPLICABLE THERETO FOR THE NEWLY CREATED LAND USE DISTRICT A. RECITALS 1. Project Site WHEREAS, the parcel which is the subject matter of this ordinance is diagrammatically represented in Exhibit A attached hereto and incorporated herein by this reference, and for the purpose of general description herein consists of approximately 27.15 acres currently designated as the Employment Park 1A and Employment Park 1B Districts, and is located in Rancho del Rey, Sectional Planning Area I ("SPA I"), east and north of Tierra del Rey and along two side streets called Amena Court and Canarios Court ("Project Site"); and, 2. Project Applicant WHEREAS, a duly verified application for a Miscellaneous Amendment was filed with the Planning Department of the City of Chula Vista on November 3, 1995 by Cinti Land Planning on behalf of various property owners ("Applicant"); and 3. Project Description; Application for a Miscellaneous Amendment WHEREAS, Applicant requested an amendment to SPA I to combine approximately 27.15 acres in Rancho del Rey currently designated as the Employment Park IA and Employment Park IB Districts into one Employment Park District, and modifying the permitted and conditionally permitted uses applicable thereto as described in Exhibit "B" attached hereto and incorporated herein ("Project"); and 4. Planning Commission Record on Application. ~-~ WHEREAS, the Planning Commission held an advertised public hearing on the Project on April 3, 1996 and continued said public hearing until April 24, 1996 at which time the Planning Commission voted 5-0 (with two commissioners absent) recommending that the City Council approve the Project in accordance with Resolution PCC-96-14; and WHEREAS, from the facts presented to the Planning Commission, the Commission has determined that the Project is consistent with the City of Chula Vista General Plan and that public necessity, convenience, and good zoning practice support the Project; and 5. City Council Record of Application WHEREAS, a duly called and noticed public hearing on the Project was held before the City Council of the City of Chula Vista May 21, 1996 to receive the recommendation of the Planning Commission, and to hear public testimony with regard to same. NOW, THEREFORE the City Council of the City of Chula Vista does hereby find, determine, and ordain as follows: B. PLANNING COMMISSION RECORD The proceedings and all evidence on the Project introduced before the Planning Commission at their public hearing on this Project held on April 24, 1996 and the minutes and resolution resulting therefrom, are hereby incorporated into the record of this proceeding. C. ENVIRONMENTAL DETERMINATION The Environmental Review Coordinator determined that the Project falls under the purview of EIR-87-01 and EIR-92-02 and that an addendum to these environmental impact reports is the only environmental document required for this Project, as documented in IS-96-11. Based upon the recommendations of the Environmental Review Coordinator, the City Council does hereby adopt the Addendum issued on IS-96-11. D. CERTIFICATION OF COMPLIANCE WITH CEQA The City Council does hereby find that the environmental determination of the Environmental Review Coordinator was reached in accordance with requirements of the California Environmental Quality Act, the State EIR Guidelines, and the Environmental Review Procedures of the City of Chula Vista. E. EXTENT OF APPLICABILITY ;;)..D-to The Employment Park Designation can be shall applied to any areas added to the affected parcels, thus resulting in the enlargement of the gross square footage of said parcels, through a subdivision map, parcel map, or lot line adjustment. F. COPIES TO BE PROVIDED Applicant shall provide fifty (50) copies of the amended pages to the Planning Department within thirty (30) days of the date of the approval of this Ordinance. G. COUNCIL ACTIONS The City Council of the City of Chula Vista hereby amends the SPA I by establishing a new land use district called "Employment Park"; deleting two existing land use districts called Employment Park-l-A and Employment Park-]-B; redesignating the Project site as set forth in Exhibit "A" from Employment Park-]-A and Employment Park-1B to "Employment Park", and amending the permitted, conditionally permitted and prohibited land uses applicable thereto as set forth in Exhibit "B". H. FINDINGS The City Council hereby finds that the Project described above is consistent with the City of Chula Vista General Plan and that the public necessity, convenience and general welfare and good zoning practice support this action. I. EFFECTIVE DATE OF THIS ORDINANCE This Ordinance shall take effect and be in full force the thirtieth day from its adoption. ~rn Bruce M. Boogaard City Attorney Presented by Robert A. Leiter Director of Planning N:\shamd\attomey\9614cc.ord ;)..D-l EXHIBIT "B" RANCHO DEL REY SECTIONAL PLANNING AREA I PLAN CHANGES TO THE PLANNED COMMUNITY REGULATIONS FOR THE EMPLOYMENT PARK DISTRICT PCM -96-14/1S-96-11 CHAPTER IX: BUSINESS CENTER DISTRICT CHAPTER IX-A: EMPLOYMENT PARK DISTRICTS IX-A. 0 Purpose In addition to the objectives outlined in Chapter VII, the Employment Park Districts arel~ included to provide for a quality working environment and to achieve a harmonious mixture of uses which might otherwise be considered incompatible when located in close proximity. Activities are intended to promote employment opportunities in manufacturing, service, research and development, engineering, wholesale, and limited retail trade. In addition, the Employment Park Districts-ftfe!~ structured to advance the following objectives: To reserve appropriately located areas for industrial use and protect these areas from intrusion by dwellings and other non-harmonious uses; To protect residential and commercial uses from noise, odor, dust, smoke, light intrusion, truck traffic and other objectionable influences and to prevent fire, explosion, radiation and other hazards incidental to certain industrial aRa aliteffiEJbile service/repair activities; To promote sufficient open space around industrial structures to protect them from hazard and to minimize the impact of industrial operations on nearby residential districts; To minimize traffic congestion and avoid overloading utilities by restricting construction of buildings of excessive size in relation to the amount of land around them; and, To promote high standards of site planning, architecture and landscape design for Hgftt lii'Ail'#U industrial and commercial developments within the City of Chula Vista. A. Employment Park E~t~lndustrial/Office District (EP-M:) This district is intended as an area fer Rf Hgftt !!m!!~industrial uses, W~!\:!~!!!9!Bq~~t~~~ !i,u~9~M@I!im~u!PY large scale) research aRe specialized man~f~7turin~organi~tions,an~ ~i~~~R!~ad~i~ist~~tiV~~~~ ..R~or~s~ional. office~,.. .:lflieh.e~~ ..~yp~tm!!~9rml!#!9iji!+!Y ~~i~~p~~~....~!!9W~...t\:f...!!~J1~1i?P.....iJ:~!!~f......m~.......~~W\Bt......iMl\~!...meet high performance and development standards. ~-l RDR SPA I Amendment Page #2 IX-A.! PERMITTED AND CONDITIONAL USES The following uses shall be permitted uses where the symbol "P" appears and shall be ~!'tl~it~~f~i~~~~~.[~.!t~.l~ihce.:. P.e. :.....~.f. ii:::~. f..:i~ii~~!~ii~;ii~~i~iii~i~~ h."..... ..d. ."~G""""t".".t.h ." .11...'... ''''''I........,,,..,,.. ..t'."" kJ..........".......U.. ...I'.'..d...'..... ...,..,.;I.)\!. !'!9.,e.,!!.J\.s.9. ;.".~.,gP%~.;". Y...j..'.;".j.j.m!,!~p,.,9.,W.,).1i'.g.II2lli.,.,.,.,.,.,.,.,.!'!i""'.'9~f!!w...'Qn.Y!!!!.QW'.'~Qf";."...I1.!s~e..'...jyses; ............................ ,. ...... ..............--.....--,--.................. ... EP-lA -l1il1iitjid Industrial/Office District EP IB IHellstrial District LAND USE L\ND USEEfi,f~!..l(!}~~NmPARK DISTRICT EP-lA EP 1B A. Manufacturing 1. Manufacturing, compounding, assembly or treatment of articles or merchandise from the following iW~~i,f#Rl previously prepared typical materials; SlieR as canvas, cellophane, cloth, cork, felt, fiber, fur, glass, leather, paper (no milling), precious or semi-precious stones or metals, plaster, plastics, shells, textiles, tobacco, wood, and yearns; novelty items (not including fireworks or other explosive type items) p 2. fi,f!m!!rnp\!!i!i~,.....,..*~g.......~~$~mv~y....,..'..Qf Electrical.. .. ~!ffi;~ii;~!. .. and ..related parts~; electrical appliances, motors ~~g~il~!~f~~~lle~~~I~;~~~~~~ p!~~~I~,.....................~q!!!pm~pW.........;...;.....ffttHtr, telcvi3ioH, fJRSflegrllfJR afld comfJ\ltcrs ;,'.'., electronic precision instruments;.. medical and dental instruments; timing and measuring instruments; audio machinery; visual machinery; eosmetics, drags, perf\lffi0s, toiletries aBfl S611fJ (Hot iflellldiBg rcfiBiBg or reBflcriBg sf flit ()[ oils) p P db - )D RDR SPA I Amendment Page #3 LAND USE LAND USE EN1!PE€PrNfEN!r!PAiRK. DISTRICT ,.."..".,.....'EP:}.:A..".".,.'.'..Elf 1 B 3; '.....'.'.'.'...'...'..liMt~~~~r11'~I...ii~8~P9H!&8f 1~I~ti~R~ri~lii~~~~~~t~~1 !P9!gp~.m~r#fin,i!g.."Qr....t~!J4~t!!jgqt t~~9I9!I~> p :h4t/Furniture upholstering NP.'."'(( 4op'Rubber and manufacturing metal stamp P 5-;-6: \ \ Laboratories, chemical;t~~!ib?~ijq q#y#lqpm~p! &.-7tLaboratories , dental, electrical, optical, mechanical and medical P +.-S:?Laboratories; research#!11;1 !;I~y~lqpm~j;jL experimeRtal, film, dectronictesting and mechanical P &~;Machine shop and sheet metal shop N 9010iPlastics and other synthetics .. manufacturing c B. Storage and Wholesale Trades 1. Mini-storage, pliblic storage and storage wareholises 2. ~. ti~t~~~~ri~~~t.~.~.a. g......~...,.....'im.....f..~..r.b.m.('j.\~. 1.~~. t. gb!!9 ................................."............... ......... N 3. ~~~!~9'.~i!q'.Pf!Y~1~....~~i!9!li&i~1~Ei~!~ _1!~";~lr~~li~R~i~r~1~ W!!tt~9~1~~~9r..'.'.ji. g.... e.,.. ?y....'~....\....g.,.~.....' ....................".......".".............. . m db - l \ p p G p p p G p p RDR SPA I Amendment Page #4 LAND USE LAND USE EMPL;(1X1'MEN1ERAiR.K: DISTRICT ......................................-.,...--,-................................ ............EP=lA.. ..EPIB 3. Bllildiag materials aaa IllmBer storage yards aad or coatractor's yt!I'tffl N 4. Bllilaiag Equipment sales and rentals C 5. Pllblic aoo privatc bllildiHg material sales yards, scryice yards, storage yards, aoo eqllipmeat realal N 6. MiHOr auto repair (moved to Sect.C) N Hi ..I...~q!#~!ij..........9.i~ij~~\!dqti..........qp#~~iq~ trllckiHg yards, termiaals aoo distriblltiag OIJeratioas NC...i..i..... C. Service and Commercial 1. Animal hospital and veterinary elinic and/or office C 2. Minor auto repair/.s.....~idj:i~~;#!~!i!gii!g ~q9!)...$~jjytq~~......ji~.....~m9g......~~$~!~g...~iid !gMgn4#i!Mf~911!t!~~ .. .. NC................. 2. Alltomobile aRd/or tnick services N 3. Blueprinting and photocopying p 4. Cleaning and dyeing plant N 5. Eating and drinking establishments: a. RestaurantS, restauran4 with cocktail lounges, coffee shop&, and full delicatessen$ (may serve aleoholic beverages) .@I!f!!~t~II@.!!!~ K~9i!!~~......~lj~!!......~$......;~~i1!~...@ sii!)iiii~.~..~i1ppl~m~9#A...tr~rfj/;j ;;)P-~ G G p C G N G C p G RDR SPA I Amendment LAND USE Page #5 LAND USE EN1PLC)XTNlENiEl'ti\iQ!I{i DISTRICT ...........,"........-,.-.,.-.,-,...,---,.,.,.--.....--------...,................ EP4A ..EPIB ..~ry~'*~!~j.........i...............~9.................. ......&~ty ~p~!fi9~#QP~;...........i...wi!b ...i.........lli~ ~ijiia:!tIQiiii)tJ~~&iiml~;i... NO....... N b. Refreshment stands & snack bars within a building as~p accessory jjj@ to a. permitted ...... ,. Rt.........~RP~jr!q~!A!y..........p~tmjr!!iq use. p G 6: ................I!!%!iJ1!!....~~I~~...gf...p#~y...j~m$....$\.\.i,j~....!i.ii ~~1'11f~I~I~llr~~r~li~I~~ ~HPP!i~~ ... ... ...... .. .. .. .. .. .. .. .. .. .. ...... .. .. ...... . C.. ': 8. KeHHe13 [see under Accessory Uses] N C 907t\Medical and dental offices and clinics; medical, optical and dental laboratories, fl6f including the manufacture of pharmaceutical or other products for general sale or distribution N -w"$!Newspaper publishing, printing, and distribution, general printing and lithography C G +-h~iiAdministrative and executive offices; .. .... professional office for lawyers, engineers, architects; financial offices including banks, real estate and other general business offices p G 1211): All)' etfler re3el\i'eh, light lfl!lffi!faewriBg or office \lse '.vhieh is aeterm.iaea by the PlanniHg Com.m.i3sion to be ef tfle slime geHeral eharaeter liS the abo'te fJerm.ittea \l3e3 {See Section G, Unlisted Uses below P P ;)..D - \'3> RDR SPA I Amendment Page #6 LAND USE LAND USE BNfPJS0MNfBN1FFm:RKi DISTRICT ..'.'.".".'.EP=iA'..""."'."".'EP".lB H~!:I; Exterminating services N .f411iiPlant nurseries and the sale of related hardware items provided they are clearly incidental and secondary to the plant nursery. Plant nurseries shall be allowed only on the peripheral areas of the EP-I- Wfle ~i~ti\itit, so as to not disrupt the continuity of the professional and administrative office land uses C +51:MRadio and television broadcasting, ;~~t~~~i~tif4i~;j~...II_R\~f~ fRf.'.'.~"~R~~tj?~I.'...~~~'.'~~rW1t...!9.'.' qg~i~~r~(ji.....'.....'Qiiji*,!~~i......~.....~~pWiiM~ ~RIj9jBBj!~I.Y~~~~U!i!~!~r~q~!r~i;\! C 16. Retail commercial WAeli ift StlfJport of a permitted er eeliaitiBfuH Hse [Moved to Section E, Accessory Uses] C Ht3;Retail distribution centers and manufactures's outlets which require extensive floor areas for the storage and display of merchandise, and the high volume, warehouse-type sale of goods and uses which are related to and supportive of existing on-site retail distribution centers of manufacturer's outlets. Conditional use permit applications for the establishment of retail commercial uses, eoverca 811J!Itp~(jpi\~Ii.!i:ir~~ by the City Councilsubsequeniio its receipt of recommendations thereon from the Planning Commission ~-1~ N N G p G RDR SPA I Amendment Page #7 LAND USE Lf.ND USE ENIPE(JrirNfENmRiAJR:K: DISTRICT ........................ .........EP4A.. . Ep.IB -l-8M"Sale of beer or alcoholic beverages for consumption on the premises only where the sale is incidental to the sale of food and accessory to tfte J~Ifi~i~~~~!tSe 9f9q!14itiQt\~!!x P D. Public and Semi-Public Uses 1. Day nurseries, day care schools and nursery schools C 2. Educational institutions, public or private including vocational schools C 3. Post offices and post office terminals P 4. Public utility pumping stations, equipment building and installations NO 5. Recreation, private, semi-private, or commercial;!!j8I!m!!ji.m9y!~I:!1~!!!!] C 6. Public and quasi-public uses appropriate to the district, such as professional, business and technical schools of a public service type, but not including corporation yards, storage or repair yards and warehouses C 7. Schools and studios for arts and crafts; photography, music, dance and art galleries, in accordance with the provision of Section 19.58.220 CVMC C ~-IS- G 8 8 p 8 8 8 8 RDR SPA I Amendment Page #8 LAND USE LAND USE E&fPlliE>Y"NfEN!TBi\RK DISTRICT ..............."...-.........-,--,...........,.............................. ...EP-+AEPIB E. Accessory Uses 1. Accessory structures and uses located on the same lot as ~ permitted or a conditionai!y p~~t~guse p 2. Accessory uses and buildings customarily appurtenant to a permitted use, such as incidental storage facil ities p 3. Commercial parking lots and parking garages, III accordance with Section 19.62.010 to 19.62.130 CYMC C 4. Incidental servIces for employees on a site occupied by a permitted or conditionai1y@;iij:ij~ttf9 use, including day.. .. care, recreational facilities, showers and locker rooms p 5. Office condominium p 6. DeRtal practices opeR to the pllelie as aR aceessory IIse (Rot to exceea 35 % of the total comb inca floor area ae'/Btea tB aeRIal malft1faetllriag, laboratories aRa other aeRtal relatea IIses, Br 15 % Bf tile tetal BllilcliRg area whichever IS less) [See Sect. C.?] p ~;Roof mounted satellite dishes subject to the following standards or conditions: p a. The dish shall be screened using appropriate matching architectural materials or parapet walls; d-D - )lo p p G p G C p RDR SPA I Amendment Page #9 LAND USE LAND USE BNfPE.QX\NIBN1FF'ARJC DISTRICT ......"....".....................-....................,............. .. .............EP4A ...EPIB b. Dishes shall be of a neutral color, matchijig the building qp!pr4!)'j'tt~*#!t~, or as otherwise approved by the City; c. A building permit shall be ref!liifea\)~tiiiii#il; d. No advertising material shall be allowed on the satellite dish antenna. Satellite dish antennae containing advertising material shall be considered signs. 6-:-7:iWatchman's or caretaker's living ..... .... quarters only when incidental to and on the same site as a permitted or conditionailyp~9~~1!~9 use p p +:!fWholesale business storage or warehouse for products of the types permitted to be manufactured in the district p p 9; .....................flft~~~E~I~il~_I~I~~OO 9ry~~r!ij!iiiyqllfljq I? ~9,/Retail commercial when iR StlfJport ef I*q9~~~QtYJ9 a permitted or ~pi\~~Y9r~!!Yp~!'#\jt\iig use p F. Temporary Uses 1. Temporary uses as prescribed In Chapter XI qltIiI~ilqqiiriiJ;iiit p p dD - \1 RDR SPA I Amendment Page #10 LAND USE LAND USE E~~~~W~'~~~l~ l~ISTRICT $'~ ......i.......yi:l~t~q...JJ~9!J..JJ~!i!j ~i!i;!~~m~~~...~r.~..*p~liq~tiqni..any other r~s~~r~h, Hgft(!!W!]!1e.... ...Ill~nufact~ri?g; $~tyi4~ or office use MrHI!1~qgl!~jl[~ 'N~i~~.. . iG... 8e~~~.ffiiRed by the Aq~i~~ iirzo.r.........~.~ft.p.i~. ~O.i.I~lj!~~~....~.o.~..~......f. S. C. if.). ii~i~~~;.....~ P. pq#~PP....~.....................9.J.i....t.&.~. Z.......i9!MI!~*. ct.... .m........!n..........i. 8....Jt. ii......ta.........fl.$..... (1........'..............6.... ..........h............ .1......................... ...... ..,.. ........ . .... ......t...1 ..11....... ... .t ......... .j.......t.......w.....th....p . n.. n.. 1..11... . .~".." ... "".a:p.. P . e""... ". . ". g lill!~~!~~i.....~1j~......~~~ti~......b~.......~[...ih~'!.~~;i1e generai . character as die above uses. T......p................!1~RRn. $. !..!Je.........r~g...gi!....~...~tP.Y..t9~~P~Mipji z,................ ...................h Iliil~I'~~fl1~llil~~I~~I.I~11 ci(i.i!<liti91!~lyp~rmi~~qmtPrq~1t\1!il. IX-A.2 PROPERTY DEVELOPMENT STANDARDS - EMPLOYMENT PARK The following property development standards apply to all land and buildings other than accessory buildings authorized in this district. Any legal lot may be used as a building site, except no building permit shall be issued for any lot having a lot size less than 10,000 square feet. A. General Requirements The following requirements are minimums unless otherwise stated: Development Standard l. Lot area, net sq. ft. (OOO'S)I Lana Use~mp!9yw~l!t~I~District EP-+AEP iif.... ... 40 4G 2. Lot width (feet) 100 -He 3. Lot depth (feet) 150 +.sG 4. Front yard setback (feet) ~4QI~ 5. Side yard setback, each (feet) 10 .Hj 6. Public street ROW setback (feet) 20 ~ IMap for condominium development does not ne~d to meet lot area requirement. Minimum lot area may be reduced to 10,000 sq. ft. for master planned building complexes with Precise Plan approval. Such Precise Plan shall be for a total area of no less than 60,000 sq. ft. d;lD - I f) RDR SPA I Amendment 10. Building height, maximum' Page #11 60 6G 10 W 20 :w A3 A 50 59 7. East "H" St. ROW setback (feet) 8. Rear yard setback (feet) 9. Rice Canyon top of slope setback (feet) 11. Maximum lot coverage' (% of net lot) B. Special Requirements 1. Along all street frontages situated across from any residentially zoned property, a minimum three foot high landscaped earthen berm shall be constructed. Along all other lot lines adjacent to residential districts, a maximum eight (8) foot high wall may be constructed if required following Planning Director review. Fences should blend in with the site's architecture. 2. S treetscapes shall be enhanced to provide an easy transItion from the street to the building. Patios, circulation and parking spaces can be included in setback areas to help buffer adjoining parcels from one another. 3. Reciprocal ingress and egress, circulation and parking arrangements shall be required where possible and feasible to facilitate vehicular movement between adjoining properties and to limit superfluous driveways. IX.3 GENERAL PERFORMANCE STANDARDS The following performance standards are general guidelines intended to describe the overall minimum design standards for the Employment Park. The design guidelines provided in Chapter VI of the SPA Plan provide specific recommendations. A. Landscaping In all Employment Park Districts the required front and exterior side (street side) yard setbacks shall be landscaped. Parking, driveways, and other decorative hardscape areas will be permitted within the required rear yard, interior side yard, East "H" Street, and Rice Canyon top-of-slope 2Heights which vary from these standards may be approved via a Conditional Use Permit and Site Plan approval. 3 A = 45 feet or 3 stories, whichever is less. 40pen space lots of other special setbacks along East "H" Street shall be included in the adjacent building lot area for purposes of the lot coverage calculation. ;;uJ - {CJ RDR SPA I Amendment Page #12 LAND USE LAND USE EMPJk<JWNtBNiFBAl'tKi DISTRICT .........................................-----.------.-.--....----................. EP:}A.. ....EPIB setbacks. Landscaping shall consist predominantly of plant materials and shall be irrigated by automatic sprinklers. All planting and irrigation shall be in accordance with the City's Landscape Manual and the Employment Park Design Guidelines. All landscaping shall be permanently maintained in a clean, healthy and thriving condition, free of weeds, trash and debris. B. Equipment All ground mounted mechanical equipment, including heating and air conditioning units and trash receptacle areas, shall be completely screened from surrounding properties. C. Utilities All utility connections shall be designed to coordinate with the architectural elements of the site so as not to be exposed except where required by utility provider. D. Lighting All light sources shall be shielded in such a manner that the light is directed away from streets and adjoining properties. Illuminators shall be integrated within the architecture of the building. E. Electrical Disturbance, Heat and Cold, Glare No use except a temporary construction operation shall be permitted which creates changes in temperature or direct glare, detectable by the human senses without the aid of instruments, beyond the boundaries of the site. No use shall be permitted which creates electrical disturbances that affect the operation of any equipment beyond the boundaries of the lot. F. Fire and Explosive Hazard All storage of and activities involving inflammable and explosive materials shall be provided with adequate safety and fire fighting devices to the specifications of the Uniform Fire Code. All incineration is prohibited. Adequate smoke detectors shall be installed in all new construction. G. Noise The a=ptable outdoor noise exposure levels, measured at the property line, for the Employment Park Districts are given in the table below. (See Chapter 19.66 CVMC for definitions and additional details.) ~o -C)D RDR SPA I Amendment Page #13 Exterior Noise Limits* Receiving Land Use District 7 am - 10 pm 10 pm - 7 am EP 1 EP 2 Distticti , ;, :":-:'-:-,--:--'--:--'--'''' 70 dbA 70 dbA *Environmental Noise - Leq in any hour *Nuisance Noise - not exceeded at any time H. Odor No use shall be permitted which created odor in such quantities as to be readily detectable beyond the boundaries of the site. I. Radioactivity In all Employment Park Districts, the use of radioactive materials shall be limited to measuring, gauging and calibration devices, and medical X-ray diagnostic equipment. J. Vibration No use except a temporary construction operation shall be permitted which generates inherent and recurrent ground vibration perceptible, without instruments, at the boundary of the lot on which the use is located. K. Condominium Conversion In any Employment Park District, the conversion of a project to condominium ownership shall meet all the requirements of the zone to the maximum extent possible. Specific City Council waiver shall be required where the zone requirements cannot be met. L. Air Pollution There shall be no emission on any site, for more than one minute in any hour, of air contaminants which, at the emission point or within a reasonable distance of the emission point, is as dark or darker in shade as that designated as No. 1 on the Ringelman Chart as published in the United States Bureau of Mines Information Circular 7718. M. Outdoor Storage Outdoor storage areas shall be entirely enclosed by visual barriers to adequately screen views from the external boundaries of the property. Olb-.:L\ RDR SPA I Amendment Page #14 N. Energy Conservation Buildings shall be located on the site to provide adjacent buildings adequate sunlight for solar access when practical. Buildings should be designed to minimize energy consumption. O. Toxic Materials No land or building shall be used or occupied in any manner which creates an unhealthful, dangerous, noxious or otherwise objectionable condition due to the use, storage or proximity to toxic materials. P. Liquid or Solid Waste The discharge or deposit of liquid or solid wastes shall be subject to the provisions of Section 19.66.150 CVMC. R. Aesthetic Standards 1. All uses at the perimeter of the Employment park Districts shall be landscaped to provide a buffered transition to adjacent uses. 2. Visual appearance shall be a principal consideration in the approval of Conditional Use Permits, especially any uses involving outdoor storage or activity. Consideration should be given to all prospective vantage points, including residential areas at a higher elevation. IX.4 SIGNS No sign or outdoor advertising structure shall be permitted in any Employment Park District except as provided in Chapter XII or herein. ~-~ COUNCIL AGENDA STATEMENT Item d.-\ Meeting Date 5/21/96 ITEM TITLE: Public Hearing: PCM-94-04; Consideration of a street name change for the segment of East Orange A venue between Hunte Parkway and Wueste Road. SUBMITTED BY: Resolution approving a street name change for the segment of East Orange Avenue between Hunte Parkway and Wueste Road to "Olympic Parkway" ~ If .-v , '"Iiv' Director of Planning ,/ fv' t5c.1j (p ~~ Yes No _XJ REVIEWED BY: Staff requests continuance of this item until May 28, 1996. (m:\home\planning\luis\pcm94-04.a13 ) d.\ -I COUNCIL AGENDA STATEMENT Item Q) ~ Meeting Date S/21/22 ITEM TITLE: Ordinance ~b 16 Amending Schedule X, Section 10.48.050 of the Chula Vista Municipal Code - Decreasing State Law Speed Limits in certain areas, and establishing a speed limit of 40 mph on Paseo Ranchero from East H Street to Telegraph Canyon Road Resolution \~~5 Amending Schedule II, Section 10.52.030 of the Chula Vista Municipal Code - Special Stops Required - Through Streets and Stop Intersections, creating an all-way stop at Paseo Ranchero and East J Street. REVIEWED BY: City Manager~ b-O SUBMITTED BY: Director of Public Works ---z (4/Sths Vote: Yes_NoX) The City Engineer has determined that in the interest of minimizing traffic hazards and traffic congestion, and for the promotion of public safety, the speed limit on Paseo Ranchero between East H Street and Telegraph Canyon Road be decreased from a Prima Facie 55 mph to establish a 40 mph speed zone, and install an all-way stop at Paseo Ranchero and East J Street due to limited sight distance available. RECOMMENDATION: That the City Council: 1) place an Ordinance on first reading, amending Schedule X of the Chula Vista Municipal Code, Decreasing State Law Speed Limit in Certain Areas from a Prima Facie 55 mph, and establishing a 40 mph speed limit on Paseo Ranchero from East H Street to Telegraph Canyon Road based on engineering and design criteria not readily apparent to motorists, and; 2) adopt a Resolution authorizing an all-way stop at the intersection of Paseo Ranchero and East J Street. BOARDS/COMMISSIONS RECOMMENDATION: The Safety Commission, at their meeting of 3/14/96, voted MSUC (Miller/Smith), to approve staff's report, support staff's recommendation and recommend to the Council to: 1) place an Ordinance on first reading, amending Schedule X of the Chula Vista Municipal Code, Decreasing State Law Speed Limit in Certain Areas from a Prima Facie 55 mph, and establishing a 40 mph speed limit on Paseo Ranchero from East H Street to Telegraph Canyon Road and; 2) adopt a Resolution authorizing an all-way stop at the intersection of Paseo Ranchero and East J Street. DISCUSSION: Paseo Ranchero, from East "H" Street to Telegraph Canyon Road was recently opened to through traffic. When the road was initially opened, staff recommended that traffic be stopped on East "J" Street only. The purpose of this was to observe traffic patterns on an "unconstrained" Paseo Ranchero before determining the need for stop signs on Paseo Ranchero. Staff has completed this ~-/ Page 2, Item_ Meeting Date Sf?] /qfi study and concludes that an all-way stop on Paseo Ranchero and East J Street is appropriate. At the City Council meeting of January 23, 1996, the Council requested information on the desirability of the all-way stop at this intersection. The City Engineer has determined the need to decrease the prima facie (unposted) speed limit on Paseo Ranchero between East H Street and Telegraph Canyon Road from 55 mph to a posted speed zone of 40 mph to comply with the California Vehicle Code (CVC), Section 40803, Speed Trap Evidence. Section 40803 requires evidence that a Traffic and Engineering Survey has been conducted within five years. Staff has completed new surveys which are in effect as of 2/28/96, and will expire on 2/20/01. Every 5 years the existing speed limits will either be verified, increased or decreased depending on the results of the survey investigations. The Engineering and Traffic Surveys should contain sufficient information to document that the conditions of CVC Section 627 have been complied with and that other conditions not readily apparent to a motorist are properly identified. The attached Engineering & Traffic Survey recommends a 40 mph speed limit based on a 40 mph design speed for a vertical curve inthe vicinity of East J Street. On January 1, 1997, the prima facie speed limit will increase to 65 mph, except for two lane roadways which will maintain the 55 mph prima facie speed limit. Physical Conditions Paseo Ranchero south of East H Street ranges in width from 54' to 74' curb to curb and is a Class I Collector street with no residences fronting on the roadway, except for a portion along the Villa Pahnera Subdivision. These homes do not have a direct driveway onto Paseo Ranchero but are served through a private roadway, Circulo Verde. Most of Paseo Ranchero is striped with a painted median and is built with a raised median at each end near East H Street and near Telegraph Canyon Road. There are two lanes of traffic in each direction with left turn pockets at intersections. The design speed of this street is 45 mph except for a 750' vertical curve which starts 100' north of East J Street, crests at the extension of the north curbline of East J Street, and ends approximately 650' south of East J Street. The design speed for this vertical curve is 40 mph. Traffic counts recently completed on this roadway show an Average Daily Traffic (ADT) count in this area is 2,370 vehicles per day. On the south side of the intersection of Paseo Ranchero and East J Street are two parcels which have yet to be developed. The parcel on the southwest corner is planned for a future elementary school. No scheduled opening date has yet been confirmed. A middle school is planned to be built on the parcel located on the southeast corner. A letter from Mr. Thomas Silva, Director of Planning for the Sweetwater Union High School District is attached. In his letter, Mr. Silva expressed the district's support of staff's recommendation to reduce the speed limit and install the all-way stop and informed us that this middle school is anticipated to be open in the Fall of 1998. The parcel on the northeast corner is a residential area in which the homes will not front on either Paseo Ranchero or East J Street, but will have access from a separate residential street. The northwest corner is the Villa Palmera Subdivision which was completed around 1990. There are 76 homes within this subdivision most of which are accessed through Circulo Verde, a local private street which commences at the north side of East J Street, meanders in a northeasterly direction through the subdivision and terminates at the west side of Paseo Ranchero. There is ~~ -;t Page 3, Item_ Meeting Date 5/21/96 another private street, Zarza Corte, off of East J Street which serves the remaining homes. It is not anticipated that there will be any homes built in the undeveloped parcels fronting on Paseo Ranchero which will have direct driveway access to Paseo Ranchero. Staff has investigated the available sight distance for the intersection of Paseo Ranchero and East J Street. Results of this investigation show that motorists eastbound on East J Street have somewhat of a restricted view of northbound Paseo Ranchero vehicles. The sight distance for motorists westbound on East J Street at the subject intersection is more restricted by physical barriers, and cannot be improved to the point where it can provide adequate safe stopping sight distance. This is due in part to the topography along the middle school property which necessitated the installation of a guardrail. This guardrail reduces available sight distance westbound East J Street motorists have of northbound Paseo Ranchero vehicles. All other approaches do have adequate sight distance. The Engineering and Traffic Survey for Paseo Ranchero recently completed by staff in accordance with the Basic Speed Law (Exhibit A), and The Speed Limit Establishment Process (Exhibit B), shows an 85th percentile speed of between 48 mph and 49 mph. Based on the Engineering and Traffic Survey, it has been determined that the speed limit be posted at 40 mph due to limited visibility and the vertical curve at the intersection with East J Street. This condition creates a traffic situation that is not readily apparent to motorists and adequately justifies the reduction of the speed limit from 45 mph to 40 mph. Roadway conditions taken into consideration, staff recommends the 40 mph speed limit as the appropriate speed limit for conditions in order to comply with the California Vehicle Code requirements. Speed limits are generally established at the nearest 5 mph interval below the 85th percentile speed, but can be reduced another 5 mph if there are conditions which are not readily apparent to motorists. If speed limits are established artificially too low, this roadway is considered a speed trap and police radar enforcement of the posted speed limit cannot be legally conducted. Although an all-way stop evaluation completed for the subject intersection shows that the intersection has an excellent safety record, this is primarily because it was not until this January that the roadway was opened as a through street for public use, and the previous two-legged intersection that did not connect through, is now a four-legged intersection with through traffic. The reduced sight distance at this intersection cannot be mitigated unless an all-way stop is installed because there is a need for the guardrail. Therefore, staff is recommending that this intersection be controlled by an all-way stop due to the unusual conditions warrant and the adjacent land use. Currently, there are stop signs which stop eastbound and westbound traffic on East J Street for Paseo Ranchero. The all-way stop will add additional signs to stop southbound and northbound Paseo Ranchero traffic for East J Street. CONCLUSION: Based on the above data, it has been determined that the appropriate speed limit on Paseo Ranchero should be posted at 40 mph in accordance with the California Vehicle Code ~~-3 , I Page 4, Item_ Meeting Date 5/14/96 requirements. The current survey will expire in February 2001. It is recommended that the City of Chula Vista Municipal Code be revised as follows: 10.48.050 Schedule X - Decreased Speed Limits in Certain Areas Name of Street Beginning At Ending At Proposed Speed Limit Paseo Ranchero* East H Street Telegraph Canyon Road 40 mph * All-way Stop to be installed at East J Street and Paseo Ranchero. All area residents, the Safety Commission Chair, School Districts and churches have been notified of tonight's City Council meeting. FISCAL IMPACT: The cost to place signs and pavement legends is $1,000.00. Exhibit A Exhibit B Exhibit C Basic Speed Law The Speed Limit Establishment Process Enforcement Attachment A - Attachment B - Attachment C - Attachment D - Attachment E - Attachment F - Attachment G- Area Plat Minutes from March 14, 1996 Safety Commission Meeting, excerpt Engineering and Traffic Survey Radar Speed Surveys California Vehicle Code Sections All-Way Stop Evaluation Letter from Mr. Thomas Silva, Director of Planning SUHSD File No.: 0760-95-CY029 DMW:FXR:dmw M:\HOME\ENGINEER\AGENDA\PASRNCHO.DMW ~~-4 , , EXHIBIT A Basic Sneed Law Speed limits in California are governed by the California Vehicle Code, Sections 22348 through 22413, and Section 22350, The Basic Speed Law, of the Vehicle Code. This Basic Speed Law provides that no person shall drive a vehicle upon a highway at a speed greater than is reasonable or prudent, having due regard for weather, visibility, traffic and the surface and width of the highway, and in. no event at a speed which endangers the safety of persons or property. The basic speed law is founded on the belief that most motorists are able to modify their driving behavior properly, as long as they are made aware of the conditions around them. Section 22358.5 of the Vehicle Code states that it is the intent of the Legislature that physical conditions such as width, curvature, grade and surface conditions, or any other condition readily apparent to the driver, in the absence of other factors, would not require special downward speed zoning. The speed limit normally should be established at the first five mile per hour increment below the 85th percentile speed. However, in matching existing conditions with the traffic safety needs of the community, engineering judgement may indicate the need for a further reduction of five miles per hour. The factors justifying such a further reduction are the same factors mentioned above. Whenever such factors are considered to establish the speed limit, they should be documented on the speed zone surveyor the accompanying engineering report. In determining the speed limit which is most appropriate to facilitate the orderly movement of traffic and is reasonable and safe, important factors are prevailing speeds, unexpected conditions, and accident records. Traffic regulations are based upon observations of the behavior of groups of motorists under various conditions. Generally speaking, traffic regulations that reflect the behavior of the majority of motorists are found to be most successful. Laws that arbitrarily restrict the majority of drivers encourage wholesale violation of posted restrictions, lack public support and usually fail to bring about the desired changes in driving behavior. This is especially true of speed zoning. Before and after studies consistently demonstrate that there are no significant changes in traffic speeds following the posting of new or revised speed limits. California Vehicle Code (CVC) Sections 22357 and 22358 authorize local authorities to establish intermediate prima facie speed limits on streets and roads under their jurisdiction, on the basis of an Engineering and Traffic Survey. These state laws permit local authorities to lower the maximum speed limit (currently 55 M.P.H., however, as of after March 31, 1996, this prima facie speed limit will increase to 65 M.P.H.) or to raise business or residence district speed limits (25 mph) on the basis of an Engineering and Traffic Survey. These "intermediate limits" between 25 and 65 mph must be posted to define clearly the limits of the zone and the prima facie speed limit established. Speed Trap-Section 40802(b) provides that prima facie speed limits established under Sections 22352(b)(1), 22354, 22357, 22358 and 22358.3 may not be enforced by radar unless the speed limit has been justified by an Engineering and Traffic Survey within the last five years. An "Engineering and Traffic Survey" is required where enforcement involves the use of radar or other electronic speed measuring devices, under CVC 40802(b). ~~-s EXHIBIT B The Sneed Limit Establishment Process Speed limits should be established preferably at or near the 85th percentile speed, which is defined as a speed exceeding that which 85 percent of the traffic is moving. The 85th percentile is often referred to as critical speed. Speed limits higher than the 85th percentile are not generally considered reasonable and safe and limits significantly below the 85th percentile do not facilitate the orderly movement of traffic. Speed limits established on this basis conform to the consensus of those who drive highways as to what speed is reasonable and safe, and are not dependent on the judgement of one or a few individuals. Realistic speed zones will invite public compliance by conforming to the behavior of the majority and by giving a clear reminder to the non-conforming violators. These realistic zones will also offer an effective enforcement tool to the Police Department by clearly separating the occasional violator from the reasonable majority. The basic intent of speed zoning is to influence as many drivers as possible to operate at or near the same speed, thus reducing the number of conflicts created by wide differentials in operating speeds. Only when roadside development results in traffic conflicts and unusual conditions which are not readily apparent to drivers, are speed limits somewhat below the 85th percentile warranted. Realistic speed zoning is a Traffic Engineering tool used to derive the best traffic service for a given set of conditions. While the basic speed law states that no person shall drive at a speed greater than is reasonable or prudent, the majority of drivers comply with this law, and disregard regulations which they consider unreasonable. It is only the top fringe of drivers that are inclined to be reckless and unreliable, or who have faulty judgement and must be controlled by enforcement. Speed limits set at or slightly below the 85th percentile speed provide law enforcement officers with a means of controlling the drivers who will not conform to what the majority considers reasonable and prudent. Experience has shown that the 85th percentile speed is the one characteristic of traffic speeds most nearly conforming to a safe and reasonable speed limit. Speed limits set higher than the critical speed will make very few additional drivers "legal" for each 5 M.P.H. that the posted speed limit is increased. Speed limits lower than the critical speed will make a large number of reasonable drivers "illegal" for each 5 M.P.H. increment that the speed limit is reduced. For practical purposes, the 5 M.P.H. increment at or immediately below the 85th percentile is the numerical value best selected for the posting of a realistic and legally enforceable speed limit. ~ ~_lo EXHmIT C Enforcement Concurrence and support of enforcement officials are necessary for the successful operation of a restricted speed zone. Realistic speed zones tend to minimize public antagonism toward police enforcement of obviously umeasonably low speed limits. By posting and enforcing the appropriate speed limits, local authorities invite the public to comply with the reasonable behavior of the majority of the public, while giving a clear reminder to the non-conforming violators. These regulations also offer an effective enforcement tool for the local police by clearly distinguishing the intentional violator from the reasonable majority. The establishment of a speed limit of more than 5 mph below the 85th percentile (critical) speed should be done with great care as this may make violators of a disproportionate number of the reasonable majority of drivers. M:\HOME\ENGINEER\TRAFFIC\ENFORCE.FXR ~-1 ORDINANCE NO. ~~(~ AN ORDINANCE AMENDING SCHEDULE X, SECTION 10.48.050 OF THE CHULA VISTA MUNICIPAL CODE - DECREASING STATE LAW SPEED LIMITS IN CERTAIN AREAS AND ESTABLISHING A SPEED LIMIT OF 40 M.P.H. ON PAS EO RANCHERO FROM EAST H STREET TO TELEGRAPH CANYON ROAD WHEREAS, the City Engineer has determined that in the interest of minimizing traffic hazards and traffic congestion, and for the promotion of public safety, the speed limit on Paseo Ranchero between East H Street and Telegraph Canyon Road be decreased from a Prima Facie 55 mph to establish a 40 mph speed zone, and install an all-way stop at Paseo Ranchero and East J Street due to limited sight distance available; and WHEREAS, staff has completed a Traffic and Engineering Study as required by State Law which recommends a 40 mph speed limit based on a 40 mph design speed for a vertical curve in the vicinity of East J Street; and WHEREAS, the Safety Commission, at its March 14, 1996 meeting, voted to approve staff's recommendation and recommend to the city Council to decrease state law speed limits. NOW, THEREFORE, the City Council of the City of Chula vista does ordain as follows: SECTION I: That Schedule X of section 10.48.050 of the Chula Vista Municipal Code is hereby amended to include the following changes: SCHEDULE X - DECREASED SPEED LIMITS IN CERTAIN AREAS Proposed Name of Beginning Ending At Speed Street At Limit Paseo East H Telegraph 40 MPH Ranchero* Street Canyon Road *All-way stop to be installed at East J Street and Paseo Ranchero. SECTION II: This ordinance shall take effect and be in full force on the thirtieth day from and after its adoption. Presented by /7ved a /~~ Boo Attorney John P. Lippitt, Director of Public Works C:\or\speed.dec ;).;;;.A - I RESOLUTION NO. '~~DS RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING SCHEDULE II, SECTION 10.52.030 FOR SPECIAL STOP REQUIRED - THROUGH STREETS AND STOP INTERSECTIONS, CREATING AN ALL-WAY STOP AT PASEO RANCHERO AND EAST J STREET WHEREAS, the City Engineer has determined that in the interest of minimizing traffic hazards and traffic congestion, and for the promotion of public safety, the speed limit on Paseo Ranchero between East H Street and Telegraph Canyon Road be decreased from a Prima Facie 55 mph to establish a 40 mph speed zone, and install an all-way stop at Paseo Ranchero and East J Street due to limited sight distance available; and WHEREAS, the Safety Commission, at its meeting of March 14, 1995, voted to recommend that the city Council authorize an all-way stop at the intersection of Paseo Ranchero and East J Street. NOW, THEREFORE, BE IT RESOLVED the City council of the City of Chula Vista does hereby amend Schedule II, section 10.52.030 for Special stops Required - Through Streets and stop Intersections - to add the following: 10.52.030 SCHEDULE II - SPECIAL STOPS REQUIRED - THROUGH STREETS AND STOP INTERSECTIONS Name of stop Intersection Traffic Stopped Signs Street On Paseo East J Street BOTH * Ranchero BE IT FURTHER RESOLVED that the Police Department, City Clerk and Director of Public Works are directed to maintain a copy of the schedule on file and to make same available to the public upon request. Presented by ~7ved as /~~ John P. Lippitt, Director of Public Works Bruce M. Attorney o form by J C:\rs\stopsign.II .,)~BJ 1 COUNCIL AGENDA STATEMENT Item d. ~ Meeting Date 5/21/96 ITEM TITLE: Report denying citizen request for All-Way Stop at East J Street and Paseo Ladera, over ruling the recommendation of the Safety Commission to install the All-Way Stop. SUBMITTED BY: Director of Public Works REVIEWED BY: City Manage~ ~ ' U......., (4/5ths Vote: Yes_NoX) Based on the provisions of the Safety Commission Policy, adopted by resolution of the City Council on March 14, 1995, whenever the Safety Commission and the City Engineer differ on the recommendation of a traffic related issue, both parties have the right to appeal the matter to the City Council for final resolution. This report, denying the request for an all-way stop at the intersection of East J Street and Paseo Ladera, is the City Engineer's appeal to over rule the recommendation of the Safety Commission to install an all-way stop at this intersection. This is a companion item to the setting of the speed limits on East J Street and Paseo Ranchero, and the all-way stop at the intersection of of East J Street and Paseo Ranchero. RECOMMENDATION: That the City Council: 1) accept staff's report, and deny the recommendation of the Safety Commission to install an all-way stop at the intersection of East J Street and Paseo Ladera; and 2) direct staff to continue to monitor traffic in this area and re- evaluate this intersection for an the all-way stop in 12 months. BOARDS/COMMISSIONS RECOMMENDATION: The Safety Commission, at their meeting of March 14, 1996, voted MSUC (Miller/Smith), to approve establishing the speed limit on East J Street from River Ash Drive to Paseo Ranchero at 35 mph based on the Engineering and Traffic Survey and to address the concerns expressed by area residents, have staff perform All-Way Stop evaluations at the intersections of East J Street/Paseo Ladera and East J Street/Cordova Drive, and return at the April 1996 Safety Commission meeting with a report on these two (2) intersections. The Safety Commission, at their meeting of April 11, 1996, voted 4-2-1 with Chair Liken and Commissioner Cochrane voting no and Commissioner Acton absent to install the all-way stop at the intersection of East J Street and Paseo Ladera due to the landscaping and utility boxes in the vicinity and that eventually there would be a need for this all-way stop since Paseo Ladera is the access to Telegraph Canyon Road. The Safety Commission did not recommend an all-way stop at the intersection of East J Street and Cordova Drive. ~~I Page 2, Item_ Meeting Date 5/21/96 DISCUSSION: Staff recently completed an all-way stop evaluation for the intersection of East J Street and Paseo Ladera. The subject intersection is aT-intersection with Paseo Ladera extending from the south curbline of East J Street, south to Telegraph Canyon Road. There is an existing stop sign stopping northbound Paseo Ladera traffic for the East J Street through traffic. In this area, Paseo Ladera is 44' wide two lane roadway with a bike lane on both sides and posted "No Parking". Paseo Ladera has an ADT of approximately 1,500 vehicles per day. East J Street in this area is a 50' wide roadway with parking on both sides of the street, a two way left turn lane in the center and an ADT of 2,400. The missing segment of East J Street from River Ash Drive to Paseo Ranchero has recently been opened to through traffic in January 1996. For this intersection, an all-way stop evaluation was conducted utilizing the existing City Council policy. This evaluation, which assessed points to various traffic factors, revealed that this intersection received a total of 6 points out of a possible 54 points, where thirty (30) points minimum are required to justify the installation of an all-way stop. Stop signs are not used to control speed, but rather to assign the right of way at congested intersections. Most of the points assessed to this evaluation are attributed to the fact that 32 % of the entering volume is on Paseo Ladera. Generally all-way stops operate best when volumes on each approach are equal and where there is a pattern of correctable right angle accidents. A review of the accident history for this intersection from January 1, 1991 to present (a period of over five years), shows only one reported accident. This accident occurred on February 1, 1991 at approximately 12:30 P.M. and involved a single northbound vehicle which ran off the road and hit a fixed object. Three persons were injured in this accident. We have had no other reported accidents at this intersection. An all-way stop would not have prevented this accident. The available sight distance at this intersection was also investigated and field observations show that the sight distance is not restricted to the east, but is restricted to the west by landscaping. The city has sent a letter to the property owner at the southwest corner to trim and maintain the landscaping which presents an obstruction to visibility. Since the subject intersection has an excellent safety record and volumes are relatively low, and there is no demonstrated congestion or pedestrian crossing problem, staff cannot justify the installation of the all-way stop at this time (see attached all-way stop evaluation). If the landscaping is kept trimmed and clear of the intersection so that the sight distance is kept at a maximum, staff feels that there is no need for the all-way stop at this time. At the Safety Commission meeting, the area resident's expressed some concerns regarding the prevailing speed of traffic. Staff and the Police Sergeant explained the Basic Speed Law and the Speed Trap Law and that there is currently no posted speed limit in this area. The residents expressed a desire for continuous police enforcement of the posted speed limit, which is pending before the City Council at the present time. The proposed speed limit for this area of East J Street is 35 mph voted 4-2-1 Chair Liken and Commissioner Cochrane voting no and Commissioner .!). -!-~ d- Page 3, Item_ Meeting Date 51?1 196 Acton absent, to install an all-way stop at the intersection of East J Street and Paseo Ladera. Both staff and the Commission concurred that Paseo Ladera is more likely to have an all-way stop instead of at Cordova Drive. Since the area is undergoing changes at this time, and East J Street has just been opened to through traffic recently, staff would like to see this area; 1) have the established speed limit posted and enforced, and 2) allow the area to become developed to near ultimate conditions before considering additional restrictions being imposed on traffic in this area. Staff will continue to monitor traffic in this area, and, due to the new subdivision in the vicinity, will re-evaluate the all-way stop at this intersection in 12 months. All area residents, schools, businesses and the Safety Commission Chair, Mr. John Liken, have been notified of tonight's City Council meeting and the mailing list is attached for Council's information. FISCAL IMPACT: The cost to install signs and pavement legends is $1,000.00. Attachment: All-way stop study for East J Street/Paseo Ladera Area Plat Minutes of the Safety Commission Meetings of 3/14 & 4/11, 1996 (Excerpt) File No.: 0760-95-CY029 DMW:FXR:dmw d.~3 (M:\HOME\ENGlNEER\AGENDA\EJSTPLRA.DMW) COUNCIL AGENDA STATEMENT Item ~~ ~ Meeting Date 5/21/96 ITEM TITLE: Ordinance ~1o'11 Amending Schedule X under Section 10.48.020 of the Chula Vista Municipal Code - Speed Limits in certain zones, and establishing a speed limit of 35 mph on East J Street from River Ash Drive to Paseo Ranchero SUBMITTED BY: Director of Public Works REVIEWED BY: City Managew bvx- .t. o .--.? (4/Sths Vote: Yes_No..xJ Based on the provisions of the California Vehicle Code Section 40803, and pursuant to authority under the Chula Vista Municipal Code section 10.48.020, the City Engineer has determined that in the interest of minimizing traffic hazards and traffic congestion, and for the promotion of public safety, the speed limit on East J Street between River Ash Drive and Paseo Ranchero be established at 35 mph. This is a companion item to the all-way stop at East J Street and Paseo Ladera. RECOMMENDATION: That the City Council place the Ordinance on first reading, amending Schedule X, Designated Speed Limits, as authorized by Section 10.48.020 of the Chula Vista Municipal Code, as proposed to be revised, establishing the speed limit of 35 mph on East J Street from River Ash Drive to Paseo Ranchero. BOARDS/COMMISSIONS RECOMMENDATION: The Safety Commission, at their meeting of 3/14/96, voted MSUC (Miller/Smith), to approve staff's report, support staff's recommendation and recommend to the Council, to place an ordinance establishing the speed limit on East J Street from River Ash Drive to Paseo Ranchero at 35 mph and to have staff perform All-Way Stop evaluations at the intersections of East J Street and Paseo Ladera and East J Street and Cordova Drive, and return at the April 1996 Safety Commission meeting with a report on these two (2) intersections. The Safety Commission at their meeting of April 11, 1996 voted 4-2-1 with Chair Liken and Commissioner Cochrane voting no and Commissioner Acton absent to install the all-way stop at the intersection of East J Street and Paseo Ladera, contrary to staff's recommendation to not install the stop sign. Under a recent Council policy, if the Safety Commission and staff are not in agreement, the item will automatically go to the City Council. Staff anticipates bringing the item to Council by the end of May. DISCUSSION: The City Engineer has determined the need to establish a posted speed limit on East J Street between River Ash Drive and Paseo Ranchero at 35 mph to comply with the California Vehicle Code (CVC), Section 40803, Speed Trap Evidence. Section 40803 requires ;\:;8 ~ I Page 2, Item_ Meeting Date 5/21/96 evidence that a Traffic and Engineering Survey has been conducted within five years. Staff has completed a new survey which is now in effect as of 2/28/96, and expires on 2/23/2001. Every 5 years the existing speed limits will either be verified, increased or decreased depending on the results of the survey investigation. The Engineering and Traffic Survey should contain sufficient information to document that the conditions of CVC Section 627 have been complied with and that other conditions not readily apparent to a motorist are properly identified. Phvsical Conditions East J Street in this area ranges from 36' to 50' width curb to curb and is a residential collector street with residences fronting on both sides of the roadway. Most of East J Street is striped with a two-way left turn lane striping, leaving one lane in each direction with parking on both sides of the street. Without street lights, the roadway design speed of this street exceeds 35 mph except in one location where it would be 30 mph. This section east of Paseo Ladera, between Cabo Capote and Camino Miel, at Camino Atajo, has a 200 foot sag vertical curve with a design speed of approximately 30 mph. The design speed is defined as the speed at which a driver's eye height of 3.5' above the roadway can see a 6" high object in the roadway and come to a complete stop. With a sag type vertical curve, night time visibility can be enhanced with a street light and the design speed deficiency eliminated. At this location of the vertical curve, there is an existing street light standard in this area which benefits night time users. Due to this method for determining design speeds, motorists do not have any difficulty seeing other motorists or pedestrians in this area. The Average Daily Traffic (ADT) on East J Street in this area is 2,520. Because portions of this section of East J Street are newly opened to the public, we have no accident history for the entire length. On the portions that have existed for the past five years, we have no reported accidents within that time period. The Engineering and Traffic Survey for East J Street recently completed by staff in accordance with the Basic Speed Law (Attachment A), and the Speed Limit Establishment Process (Attachment B), shows an 85th percentile speed of between 37 mph and 40 mph. We have no accident rate to compare to the statewide average of 2.07 A VM (accidents per million vehicle miles) for similar roadways in the State of California. Based on the above data, it has been determined that the speed limit should be posted at 35 mph in order to comply with the California Vehicle Code requirements or else this roadway is considered a speed trap and police radar enforcement of the posted speed limit cannot be legally conducted. The following sections describe how staff determined the most appropriate speed limit for this roadway. Area Resident's Concerns At the Safety Commission meeting, the area resident's expressed some concerns regarding the prevailing speed of traffic. Staff and the Police Sergeant explained the Basic Speed Law and the Speed Trap Law and why there is a need to have justification for the posted speed limit. The residents expressed a desire for continuous police enforcement of the posted speed limit, which is occurring, and requested all-way stops be considered at the intersections of East J Street and Paseo Ladera; and East J Street and Cordova Drive. At the Safety Commission meeting of April 12, 1996, the Safety Commission voted 4-2-1 Chair Liken and Commissioner Cochrane voting ~:~ B..~ Page 3, Item_ Meeting Date 5/21/96 no and Commissioner Acton absent, to install an all-way stop at the intersection of East J Street and Paseo Ladera. Enforcement Concurrence and support of enforcement officials are necessary for the successful operation of a restricted speed zone. Realistic speed zones tend to minimize public antagonism toward police enforcement of obviously unreasonably low speed limits. By posting and enforcing the appropriate speed limits, local authorities invite the public to comply with the reasonable behavior of the majority of the public, while giving a clear reminder to the non-conforming violators. These regulations also offer an effective enforcement tool for the local police by clearly distinguishing the intentional violator from the reasonable majority. The Police Department does have a protocol for streets in which the speed limit has been changed. This protocol includes increased enforcement by both the traffic bureau and the uniformed patrol division for several weeks, depending on the need, and includes both warnings and citations when appropriate. The police department also sets up the SMART unit (speed display trailer) in the area in an effort to educate the public in recognizing that the speed limit has been changed. This trailer also displays the vehicle's speed, thus providing a warning to the motorist. The recent police enforcement in this area has resulted in both citations and warnings. The establishment of a speed limit of more than 5 mph below the 85th percentile (critical) speed should be done with great care as this may make violators of a disproportionate number of the reasonable tnajority of drivers. With all of this infortnation taken into account, staff has carefully reviewed the facts as they relate to the posting of speed limits on East J Street and recommends the proposed change at this time to 35 mph. City staff has proposed language for new legislation which would revise the California Vehicle Code to include a new defmition for residential collector streets, like East J Street. The revisions would establish a 30 mph prima facie speed limit in these areas by the definition of a residential collector street and not by the prevailing speed of traffic. With a prima facie speed limit, there is no need for an Engineering/Traffic Survey to be conducted in order to post/enforce the 30 mph speed limit by radar. CONCLUSION: Recently, Chapter 10.48 of the Chula Vista Municipal Code was amended to establish one schedule (Schedule X) of designated speed limits to be maintained in the offices of the city engineer. Therefore, the list of all speed limits will be maintained in new Schedule X, Designated Speed Limits. Based on the above data, it has been determined that the appropriate speed limit should be posted at 35 mph in accordance with the California Vehicle Code requirements. The current survey will expire in February of 2001. It is recommended that the speed limit be established as follows: ol.~a.~ Page 4, Item_ Meeting Date 5/21/96 10.48.020 Schedule X - Designated Speed Limits Name of Street Beginning At Ending At Proposed Speed Limit East J Street River Ash Drive Paseo Ranchero 35 mph All area residents, schools, businesses and the Safety Commission Chair, Mr. John Liken, have been notified of tonight's City Council meeting and the mailing list is attached for Council's information. FISCAL IMPACT: The cost to install signs and pavement legends is $1,000.00. Attachment: Attachment A - Basic Speed Law Attachment B - Speed Limit Establishment Process Exhibit A - All-way stop study for East "J" Street/Paseo ladera Exhibit B - Area Plat Exhibit C - Engineering and Traffic Survey Exhibit D - Radar Speed Surveys Exhibit E - California Vehicle Code Sections Exhibit F - Minutes of the Safety Commission Meetings of 3/14 & 4/11, 1996 (Excerpt) File No.: 0760-95-CY029 DMW:FXR:dmw (M :\HOME\ENGlNEER\AGENDA \EEASTJST .DMW) ~ ~ P.:> ..:'1 ATTACHMENT A Basic Sneed Law Speed limits in California are governed by the California Vehicle Code, Sections 22348 through 22413, and Section 22350, The Basic Speed Law, of the Vehicle Code. This Basic Speed Law provides that no person shall drive a vehicle upon a highway at a speed greater than is reasonable or prudent, having due regard for weather, visibility, traffic and the surface and width of the highway, and in no event at a speed which endangers the safety of persons or property. The basic speed law is founded on the belief that most motorists are able to modify their driving behavior properly, as long as they are made aware of the conditions around them. Section 22358.5 of the Vehicle Code states that it is the intent of the Legislature that physical conditions such as width, curvature, grade and surface conditions, or any other condition readily apparent to the driver, in the absence of other factors, would not require special downward speed zoning. The speed limit normally should be established at the first five mile per hour increment below the 85th percentile speed. However, in matching existing conditions with the traffic safety needs of the community, engineering judgement may indicate the need for a further reduction of five miles per hour. The factors justifying such a further reduction are the same factors mentioned above. Whenever such factors are considered to establish the speed limit, they should be documented on the speed zone surveyor the accompanying engineering report. In determining the speed limit which is most appropriate to facilitate the orderly movement of traffic and is reasonable and safe, important factors are prevailing speeds, unexpected conditions, and accident records. Traffic regulations are based upon observations of the behavior of groups of motorists under various conditions. Generally speaking, traffic regulations that reflect the behavior of the majority of motorists are found to be most successful. Laws that arbitrarily restrict the majority of drivers encourage wholesale violation of posted restrictions, lack public support and usually fail to bring about the desired changes in driving behavior. This is especially true of speed zoning. Before and after studies consistently demonstrate that there are no significant changes in traffic speeds following the posting of new or revised speed limits. California Vehicle Code (CVC) Sections 22352(b)(1), 22354, 22357, 22358 and 22358.3 authorize local authorities to establish intermediate speed limits on streets and roads under their jurisdiction, on the basis of an Engineering and Traffic Survey. These state laws permit local authorities to lower the maximum speed limit (currently 55 mph, however, as of January 1,1997, this prima facie speed limit will increase to 65 mph) or to raise business or residence district speed limits (25 mph) on the basis of a Engineering and Traffic Survey. These "intermediate limits" between 25 and 65 mph. must be posted to clearly defme the limits of the zone and the speed limit established. Speed Trap-Section 40802(b) provides that speed limits established under Sections 22352(b)(1), 22354, 22357 and 22358 may not be enforced by radar unless the speed limit has been justified by an Engineering and Traffic Survey within the last five years. An "Engineering and Traffic Survey" is required where enforcement involves the use of radar or other electronic speed measuring devices on roadways which are not excluded under CVC 40802(b). d-'3B ' 5 ATTACHMENT B The Speed Limit Establishment Process Speed limits should be established preferably at or near the 85th percentile speed, which is defmed as a speed exceeding that which 85 percent of the traffic is moving. The 85th percentile is often referred to as critical speed. Speed limits higher than the 85th percentile are not generally considered reasonable and safe and limits significantly below the 85 percentile do not facilitate the orderly movement of traffic. Speed limits established on this basis conform to the consensus of those who drive highways as to what speed is reasonable and safe, and are not dependent on the judgement of one or a few individuals. Realistic speed zones will invite public compliance by conforming to the behavior of the majority and by giving a clear reminder to the non- conforming violators. These realistic zones will also offer an effective enforcement tool to the police by clearly separating the occasional violator from the reasonable majority. The basic intent of speed zoning is to influence as many drivers as possible to operate at or near the same speed, thus reducing the number of conflicts created by wide differentials in operating speeds. Only when roadside development results in traffic conflicts and unusual conditions which are not readily apparent to drivers, are speed limits somewhat below the 85th percentile warranted. Realistic speed zoning is a traffic engineering tool used to derive the best traffic service for a given set of conditions. While the basic speed law states that no person shall drive at a speed greater than is reasonable or prudent, the majority of drivers comply with this law, and disregard regulations which they consider unreasonable. It is only the top fringe of drivers that are inclined to be reckless and unreliable, or who have faulty judgement and must be controlled by enforcement. Speed limits set at or slightly below the 85th percentile speed provide law enforcement officers with a means of controlling the drivers who will not conform to what the majority considers reasonable and prudent. Experience has shown that the 85th percentile speed is the one characteristic of traffic speeds most nearly conforming to a safe and reasonable speed limit. Speed limits set higher than the critical speed will make very few additional drivers "legal" for each 5 mph that the posted speed limit is increased. Speed limits lower than the critical speed will make a large number of reasonable drivers "illegal" for each 5 mph increment that the speed limit is reduced. For practical purposes, the 5 mph increment at or immediately below the 85th percentile is the numerical value best selected for the posting of a realistic and enforceable speed limit. ;}:~ ~- 10 ORDINANCE NO. ;::A~ '11 AN ORDINANCE AMENDING SECTION 10.48.020 OF THE CHULA VISTA MUNICIPAL CODE, INCREASING STATE LAW SPEED LIMITS IN CERTAIN AREAS AND ESTA- BLISHING A SPEED LIMIT OF 35 M.P.H. ON EAST "J" STREET FROM RIVER ASH DRIVE TO PASEO RANCHERO WHEREAS, based on the provisions of the California Vehicle Code section 40803, and pursuant to authority under the Chula vista Municipal Code Section 10.48.020, the City Engineer has determined that in the interest of minimizing traffic hazards and traffic congestion, and for the promotion of pUblic safety, the speed limit on East "J" Street between River Ash Drive and Paseo Ranchero be established at 35 M.P.H.; and WHEREAS, the Safety Commission at its meeting of March 14, 1996 voted to approve staff's recommendation and recommend that the City Council adopt an Ordinance increasing the speed limits. NOW, THEREFORE, the City Council of the city of Chula Vista does ordain as follows: SECTION I: That Schedule IX of section 10.48.020 of the Chula vista Municipal Code, Increasing State Law Maximum Speed Limits in Certain Areas, is hereby amended to include the following changes: 10.48.020 Schedule IX - Increased Speed Limits in Certain Areas Name of Street Beginning At Ending At Proposed Speed Limit East J Street River Ash Paseo Ranchero 35 M.P.H. Drive SECTION II: This ordinance shall take effect and be in full force on the thirtieth day from and after its adoption, or when the appropriate signs are erected giving notice of th maximum speed limit, whichever occurs last. ~to Presented by John P. Lippitt, Director of Public Works Bruce M. Attorney C:\or\speed.inc ...l~B ~l THIS PACE BLANK ~sB- <t COUNCIL AGENDA STATEMENT ,terr:ill Meeting Date 5/21/96 ITEM TITLE: Resolution \'5 ~\o Approving the creation of the Border Environmental Commerce Alliance (BECA) Microloan Program and delegating authority to the City Manager and/or his designee to implement same Community Developme~birector ( S. \ ,""'"' City ManagerjG. \~ / (4/5ths Vote: Yes_No_) SUBMITTED BY: REVIEWED BY: BACKGROUND: The City Council and the EDC have directed staff to investigate and develop financial assistance tools for Chula Vista businesses as part of the City's economic development efforts. To that end, staff is bringing forward a proposed Border Environmental Commerce Alliance Microloan Program (MLP) tonight and continues to investigate the Housing and Urban Development (HUD) Section 108 Loan/Loan Guarantee Program. The proposed MLP is designed to benefit a targeted business cluster in Chula Vista - i.e. start-up environmental businesses who are tenants of our Border Environmental Business Cluster (BEBC) incubator. The BEBC is the incubator component of the Border Environmental Commerce Alliance (BECA) program. Its purpose is to nurture start-up environmental companies and to ensure their success. One major barrier to a developing start-up company is access to capital. In anticipation of this need, in May 1995 staff recommended and Council approved the set-aside of $50,000 in FY 1995/96 Community Development Block Grant (CDBG) funding as an initial capitalization of a BEBC revolving loan fund. In that application, staff indicated that we would return with specific loan program guidelines and a request for additional CDBG funds. BECA opened July 1996. Now that the BECA and the BEBC incubator are operating (with 14 tenants), staff has identified a specific capital need that can be addressed by limited City funding, and with minimal risk and administration costs. The proposed MLP is designed to provide short-term gap financing associated with BEBC tenant accounts receivables or contracts. It is structured to build upon two existing San Diego area microloan programs (CDC and ACCION), but offers more liberal terms to meet the tenants' unique needs. Specifically, the MLP will provide City guarantees up to $25,000 in exchange for reduced requirements related to minimum time in business and to maximum loan amount. RECOMMENDATION: That Council: 1) Approve the creation of the BECA Microloan Program (MLP); 2) Authorize the City Manager or his designee to execute the attached agreement between the City, the Banker's Small Business Community Development Corporation (COG) and the CDC Small Business Finance Corporation; 3) Authorize the City Manager or his designee to execute a similar future agreement between the City and ACCION International, subject to approval by the City Attorney's office; 4) Authorize the Community Development Department Director to appoint a Chula Vista MLP Advisory Committee; and 5) Delegate the City Manager or the Community Development Department Director as his designee, the final City approval authority for each Chula Vista guarantee prior to submitting the application to the CDC or ACCION Loan Committees for final action. BOARDS/COMMISSIONSRECOMMENDA TION: On March 6, 1996 the Economic Development Commission endorsed the proposed Microloan Program and a related FY 1996-1997 CDBG application for $75,000 of additional capitalization. :;:(~ - \ Page 2, Item_ Meeting Date 5/21/96 On March 8, 1996 the Border Environmental Commerce Alliance (BECA) Advisory Board (which includes both Mayor Horton and Council member Moot) also endorsed the MLP and a related FY 1996-1997 CDBG application for $75,000 of additional capitalization. DISCUSSION: EXECUTIVE SUMMARY: A recent California Association for Local Economic Development (CALED) survey revealed that approximately 64% of all California cities provide direct business loans as part of their economic development efforts. A majority of these utilize Community Development Block Grant funds to capitalize their loan programs. The proposed BECA MicroLoan program would be capitalized with $125,000 in CDBG funds ($50,000 in FY 1995/96 CDBG monies have already been approved). However, these funds will not be used to establish a City administered direct loan program, but rather to provide BEBC tenants borrowing from existing lenders additional collateral, i.e. loan guarantees. The City's guarantee would be a maximum of $25,000 per loan and limited to contract financinq, i.e. loans collateralized by existing accounts receivables and/or contracts. Therefore, the risk of default is very low. The City will not act as a lender but rather as a technical assistance provider (through BECA staff) and loan guarantor (using CDBG funds only). The Banker's CDC and/or ACCION will continue to act as the lender and to provide all credit analysis and servicing for each loan made to BEBC tenants. Because of the City's guarantee, the CDC and ACCION terms will be modified to meet the unique needs of our start-up tenants. An example of a typical loan would be $8,000 to purchase a piece of equipment and the raw materials necessary to allow a tenant to complete a contract. The loan would be for six months and repayment might include three initial interest-only payments, followed by three principal and interest payments to retire the debt. Generally speaking, repayment of the loan would be made from contract progress payments received by the borrower. The BEBC Manager would identify eligible MLP loan candidates, coordinate with the lender staff in packaging the loan application, provide technical assistance to the applicant, and take all recommended loan applications to a Chula Vista MLP Advisory Committee. The City's MLP Advisory Committee will be responsible for looking at the stability of the business, verifying each contract and any additional pledged collateral, and recommending whether or not the City should guarantee the loan. As noted, the lender will be responsible for loan packaging and credit analysis. Finally, the loan application will be submitted to the lender's own Loan Committee which will focus on credit worthiness and underwriting criteria and make the final award determination. The City will receive a fee for providing technical assistance, as well as a closing fee for each loan that is approved. The proposed program allows tenants access to funds which they otherwise would not have, and the City and lending partners share both the risk and loan fee revenues, providing an attractive program for all parties concerned. The following sections discuss the program in much greater detail. A. Tenant Financing Needs To identify incubator tenant needs, staff spoke with the National Business Incubation Association (NBIA), incubator managers, and our own tenants. Each source identified accounts receivable and contract financing as important start-up business needs. Contract financing provides a "gap loan" to a company which has obtained a contract for goods or services and needs capital for items such as special equipment or staff to fulfill the contract. The contract itself serves as collateral. Accounts Receivable financing (also for working capital or equipment) assigns existing receivables (payments due the company) as collateral. Key features of an Accounts Receivable/Contract Financing program include: 1) Small loan amounts (averaging between $7,500 and $10,000); 2) Short ~ ~ ~a-. Page 3, Item_ Meeting Date 5/21/96 loan term (typically less than 6 months; maximum 2 years); 3) Loan Repayments tied to contract progress payments; and 4) Controlled disbursement of funds to the borrower. Several incubators indicated success in implementing account receivables and contract loan programs. Generally, the incubator managers we spoke with initially capitalized their programs with between $150,000 and $250,000. S. Existing Microloan Programs The Banker's Community Development Corporation (CDC) and ACCION International (ACCION) are the only lenders in the San Diego region offering contract and accounts receivables lending to small business. The Banker's CDC is a consortium of San Diego area bankers which have pooled funds to make small community-based loans (consistent with CRA requirements). The Bankers CDC is affiliated with and administered by the CDC Small Business Finance Corporation (SBFC), the largest SBA lender in the nation. ACCION is an international micro lender which opened one of it's five U.S. locations recently in San Diego. ACCION's U.S. Network provided $1.7 million in 1995 to support small business development. Neither of these two microlenders currently meet the unique needs of BEBC tenants. Problematic existing requirements include: 1) Minimum time in business of one year; 2) Maximum loan amount of $35,000 and $25,000, respectively; 3) and difficult collateral requirements. C. Proposed SESC Microloan Program (MLP) 1. Revised Underwritinq Criteria The proposed MLP builds on the existing CDC and ACCION microloan programs by modifying the three underwriting criteria listed above to meet the specific needs of BEBC tenants. Attachment A outlines the existing CDC and ACCION programs as well as the new terms of the proposed MLP. MLP terms include: 1) Reducing the required time in business from one year to six months; 2) Increasing the maximum loan amount from $35,000 to $70,000 for businesses in operation for one year or more, and to $50,000 for businesses in operation less than one year; and 3) Altering the collateral requirements to include the City's CDBG and where applicable SBFC's guarantee. 2. Citv and Small Business Finance Corporation Guarantees In exchange for these new terms, the City, and in some cases the CDC Small Business Finance Corporation (SBFC), will provide limited loan guarantees. The City will guarantee up to 50% of each MLP loan to a maximum dollar amount of $25,000. The City's guarantee shall be secured by a Certificate of Deposit of equal amount. The CDC Small Business Finance Corporation (SBFC) will pledge an additional guarantee when the borrower is less than one year in business or when the loan exceeds $60,000 as follows: a) In order to meet the CDC's requirement for a 100% guarantee on loans to businesses in operation less than one Year, the SBFC will match the City's guarantee, of up to $25,000, for a total maximum loan of $50,000 to this type of start-up borrower. d.~; 3 Page 4, Item_ Meeting Date 5/21/96 b) In order to continue to limit the COC's exposure to no more than $35,000 on loans to companies in business for more than one vear, the SBFC will provide an additional guarantee on loans over $60,000. For example, for a maximum $70,000 loan, the City would guarantee $25,000, the SBFC would guarantee $10,000, leaving the Banker's COC with a maximum exposure of $35,000. NOTE: A risk analysis of the City's exposure from the loan guarantees follows in Section 0 below. 3. Administration As indicated above, the City's role will be as a guarantor, not a lender. The lending agency for each loan - i.e. COC or ACCION - will be responsible for loan packaging and servicing. In general, City BEBC staff will assist tenants to obtain the loan and will provide ongoing technical assistance. The specific roles and responsibilities of the MLP partners are outlined in the attached contracts between the City and COC and are summarized below. The City's duties include: ,/ Initial financial needs assessment of BEBC tenants and identification of eligible MLP applicants. ,/ Technical assistance to BEBC tenants prior to their submission of an application and during the term of the loan (see Section 4 below). ,/ Submission to Chula Vista MLP Advisory Committee and forwarding loan recommendation. ,/ Monitoring tenant performance over the life of the loan. The lending partner's duties include: ,/ Packaging the loan. ,/ Submission to lender's Loan Review Committee and final loan determination. ,/ Maintaining the loan documents. ,/ Servicing the loan. ,/ Providing all accounting statements to the City and borrower. ,/ Collecting on debt in case of a default. NOTE: Council will be notified about MLP activity as part of the Quarterly EOA Reports. 4. City (BECA) Technical Assistance As noted, one of the City's key duties under the proposed partnership is to provide technical assistance to each loan recipient. When a tenant is accepted into the incubator, a "Needs Assessment" is conducted by the BEBC staff. This assessment identifies the company's needs and establishes progress milestones in four areas: 1) Management (e.g. develop business plan); 2) Financing (e.g. forecast future financial needs); 3) Marketing (e.g. competitor analysis); and 4) Technology (e.g. product research and development). If during this process a tenant appears to be a candidate for the MLP, a parallel process will begin. This process will consist of: 1) Loan preparation; and 2) A financial management training program. This includes 5 modules: 1) skill assessment, 2) training in financial statements and projections, 3) training in debt financing, and 4) training in basic accounting/bookkeeping and cash flow management. The cash flow management module uses the Profit Link computer sOflware, and entails ongoing monthly financial reviews that involve BEBC staff and ~~-\f I . I Page 5, Item_ Meeting Date 5/21/96 an outside accountant. The technical assistance program is a critical element in minimizing the risk of default (see Exhibit C to the Agreement). 5. Citv Fees & Interest The City receives a guarantee fee and a technical assistance fee. These fees cannot exceed $1,500 in the aggregate on anyone loan. The guarantee fee is 2.5% of the City's guarantee amount, with a maximum of $875, and is due once the loan is approved by the lender. (This fee can be paid out of loan proceeds.) The Technical Assistance fee is a direct function of the loan term; Le. the longer the term the greater the fee, up to $875 maximum. The technical assistance fee is calculated in the following manner: i) $75 per month for each of the first three months ii) $75 per quarter for each subsequent quarter iii) $125 following loan close-out and submission of the final report to the lender It is important to note the significance of the Technical Assistance program provided to loan recipients by the BEBC, in terms of ensuring loan repayment success. The CDC, for example, normally requires that borrowers pay $1,500 for an outside technical assistance consultant. By structuring the MLP so that the BEBC provides the technical assistance at the same (or less) cost, all players benefit. The tenant receives financing with better terms, the lender and City's risks are reduced, and the MLP generates a revenue stream to the City's BECA program based upon in-house expertise. The BECA program will also receive the interest earned by the CD being held in the bank during the term of the loan. 6. Chula Vista MLP Advisory Committee As noted above, staff is recommending that the proposed MLP program include the formation of a Chula Vista MLP Advisory Committee to be appointed by the Community Development Department Director. Staff will advise Council about appointments to the MLP Advisory Committee before they are effective. After consulting with various sources, including representatives of the City/County Reinvestment Task Force (which works with regional lenders), Chula Vista EDC Commissioner John Munch of Union Bank, and Directors of CDC and ACCION, the recommended size is 5 members, with 2 from local lending institutions, 2 from regional lenders, and 1 local business representative. The City MLP committee's purpose is to: 1) confirm that the proposed activities are consistent with the company's business plan; 2) ensure that the contracts are valid and in place; and 3) evaluate the viability of the collateral being pledged by the applicant. Following the receipt of a recommendation from the MLP Advisory Committee, each loan application would require approval by the City Manager (or the Community Development Department Director as his designee) prior to being submitted for consideration to the lender. The lender's staff and loan committee will review the application in terms of credit worthiness and make the final determination. The MLP Advisory Committee would be appointed by and advisory to staff, allowing maximum confidentiality of each applicants financial and product information and the ability to call meetings promptly as needed to process an application. Two precedents exist for similar committees. The City's Community Housing Improvement Program (CHIP) includes a Loan Advisory Committee consisting of representatives from various City departments. This Advisory Committee makes final determinations regarding housing loan awards. Additionally, the City's former Commercial Rehabilitation Loan Program included an Advisory Committee ~4:-S ! , Page 6, Item_ Meeting Date 5/21/96 appointed by the Downtown Business Association (DBA) and composed of DBA members. This Committee made final determinations regarding City CHIP loans. Similarly, the MLP Advisory Committee needs to be flexible and able to respond quickly. For example, under the two City-sponsored incubator programs which the MLP is modeled after, the Incubator Manager is authorized to approve loans under $5,000. The Board of Directors, who are appointed by the Incubator Manager, authorize all other loans. D. Risk to the City 1. Risk Mitiqation Every CDBG dollar put up by the City is theoretically at risk. (No General Funds are at risk.) However, several mitigating factors are incorporated in the proposed MLP program to minimize City exposure. These include: 1) Quick turn around on the money (e.g. maximum term of 2 years); 2) Small loan amounts (averaging between $7,500 and $10,000); 3) Intensive training and follow-up throughout the loan term; and 4) Controlled disbursements to ensure that loan proceeds are expended in a manner consistent with the loan documents. The average default rate for the two incubator Contract/Accounts Receivables programs surveyed was approximately 1.5% (i.e. 1 out of 150 loans; & 2 out of 58 loans). The Small Business Administration (SBA) reports a nationwide default rate of approximately 2.0%. (See Attachment B for more information.) In addition to the mitigation factors above, risk is significantly reduced because the City will receive 50% of all collateral dollars collected by the lender (after collection costs) in a default situation. So, taking a "worst case" type of example, if a borrower defaults on a $10,000 loan, with $9,000 still outstanding, and the Banker's CDC collects $3,000 in collateral from the borrower (after paying for the costs of debt collection) the $3,000 is shared 50% to CDC and 50% to City to reduce the City's guarantee obligation. The City's guarantee in this case would be reduced from $5,000 to $3,500. 2. Default Procedure If there is a default by a BEBC borrower, the following chain of events occur; 1) The lender notifies both the borrower and the City; 2) After thirty (30) days, the City, borrower, and lender meet to discuss alternatives to immediate debt collection proceedings; 3) If no acceptable alternative exists, the lender requests City authorization to begin debt collection process; 4) Any collections made reduce the original City guarantee (I.e. 50% guarantee = 50% collections shared); and 5) If the lender uses it's best efforts and exhausts all debt collection remedies, it may request City authorization to collect the Certificate of Deposit. Once the lender has been made whole, the City can continue debt collection proceedings to recover any amounts paid by the City to CDC under its guarantee. E. Capitalization As previously stated, Council approved $50,000 in FY 1995/96 CDBG funds as an initial capitalization of a BEBC loan fund. The initial CDBG application stated staffs intention to request additional capitalization in future CDBG funding cycles. Staff has submitted a request for an additional $75,000 in FY 96/97 CDBG funding as part of the upcoming CDBG public hearing process (in May of this d4:--~ Page 7, Item_ Meeting Date 5/21/96 year). The request for additional funds is based upon current absorption of the incubator (14 tenants) and plans to open an addition 10,000 square feet to accommodate a total of at least 24 tenants by this time next year. If each of those 24 tenants were to need an average loan of $10,000, we would need $120,000 to provide a 50% guarantee of the total $240,000 loan demand. Currently, two tenants have expressed a strong interest in participating in this program. One of these, Metallic Power, needs approximately $30,000, requiring a $15,000 City guarantee, to compete contracts that are valued at over $500,000. The loan proceeds will be used to hire additional staff, purchase equipment, and buy raw materials. Without a loan, Metallic Power will be unable to complete the terms of the contract and will be forced to renegotiate each contract, jeopardizing each award. F. Timing/Lender Approvals of Agreement The attached Agreement was approved by the Banker's Small Business CDC Board on April 10, 1996. ACCION has informally agreed to essentially the same terms and will be calling an executive committee meeting to formally approve the agreement within the next 30 days. Staff is recommending that Council take action regarding this program tonight in order to meet the immediate needs of Metallic Power. FISCAL IMPACT: The MLP will be primarily administered by the two partner lending agencies. The BEBC Manager, a City position funded by the Economic Development Administration grant, will provide direct tenant assistance with limited program oversight by Economic Development staff. No additional staff will be required. In the case of a default, limited support may be needed from the City Attorney's office. The MLP will be funded exclusively by CDBG dollars, including $50,000 in FY 1995/96 CDBG funds already approved by Council. Staff has submitted a request for an additional $75,000 in FY 1996/97 CDBG funding that will be considered as part of the CDBG application and public hearing process in May of this year. As with any loan program, and particularly those associated with start-up companies, there is an element of risk. However, by limiting City guarantees to short-term accounts receivables/contract financing, controlling the disbursement of funds, and requiring borrowers to participate in a comprehensive BEBC technical assistance program, risk is significantly reduced. Under the worst possible scenario, all CDBG cash guarantees could be lost. More realistically, and based upon the experience of other similar programs, a default rate of 1 to 2 percent is expected. The program will generate loan fees. While both loan amounts and terms will vary greatly, assuming that 25 loans averaging $8,000 and having a term of approximately 8 months are funded, BECA will collect fees of approximately $11,000 annually. [(MD) c:\wp51\documenl\685,96 (May 16, 1996)] ATTACHMENTS A - BECA MicroLoan Program Agreement w/Exhibits A, B, C and D B - Business Incubator MicroLoan Programs ~L\:...1 THIS PAGE BlANK ~4 -f{ RESOLUTION NO. I&- 30l.", RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE CREATION OF THE BORDER ENVIRONMENTAL COMMERCE ALLIANCE MICRO LOAN PROGRAM AND DELEGATING AUTHORITY TO THE CITY MANAGER AND/OR HIS DESIGNEE TO IMPLEMENT SAME WHEREAS, the City Council and the EDC have directed staff to investigate and develop financial assistance tools for Chula vista businesses as part of the City's economic development efforts; and WHEREAS, staff is bringing forward a proposed Border Environmental Commerce Alliance Micro Loan Program (MLP) and continues to investigate the Housing and Urban Development (HUD) section 108 Loan/Loan Guarantee Program; and WHEREAS, the proposed MLP is designed to benefit a targeted business cluster in Chula vista i.e. start-up environmental businesses who are tenants of our Border Environmental Business Cluster (BEBC) incubator; and WHEREAS, the BEBC is the incubator Border Environmental Commerce Alliance (BECA) purpose is to nurture start-up environmental ensure their success; and component of the program and its companies and to WHEREAS, one major barrier to a developing start-up company is access to capital and in anticipation of this need, staff recommended and Council approved the set-aside of $50,000 in FY 1995/96 Community Development Block Grant (CDBG) funding as an initial capitalization of a BEBC revolving loan fund; and WHEREAS, in that application, staff indicated that we would return with specific loan program guidelines and a request for additional CDBG funds; and WHEREAS, now that the BECA and BEBC are operating (with 12 tenants), staff has identified a specific capital need that can be addressed by limited City funding, and with minimal risk and administration costs; and WHEREAS, the proposed MLP is designed to meet short-term financial needs associated with BEBC tenant accounts receivables or contracts and is structured to build upon two existing microloan programs (CDC and ACCION), but offering more liberal terms to meet the tenants' unique needs. 1 d-l\--.C1 NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula vista does hereby approve the creation of the BECA Micro Loan Program (MLP) and authorize the City Manager to execute the Border Environmental Commerce Alliance Micro Loan Program Agreement between the city and the Banker's Small Business Community Development Corporation (CDC) in the form presented, with such minor clarifications as may be approved by the City Attorney, the executed version of which shall be kept on file in the office of the city Clerk as Document No. BE IT FURTHER RESOLVED that the city Manager, or his designee, is authorized to take all necessary and appropriate actions to implement the MLP and the related agreements, including: (a) Appointing an advisory Chula Vista Loan Review Committee. (b) Approving each Chula Vista guarantee prior to submitting the application to CDC. (c) Execution of an Agreement related to Technical Assistance and City Guaranty for approved loans. BE IT FURTHER RESOLVED that the City Manager, or his designee, is authorized to execute a substantially similar MLP Agreement with ACCION International, subject to approval by the City Attorney, and to take similar implementing actions with respect thereto. Presented by Approved as to form by (D~. ~/ Chris Salomone, Director of Community Development C:\l"'s\lIicrolon 2 ~Y - /() ~~d~ ATTACHMENT A BORDER ENVIRONMENTAL COMMERCE ALLIANCE MICRO LOAN PROGRAM AGREEMENT This BORDER ENVIRONMENTAL COMMERCE ALLIANCE MICRO LOAN PROGRAM AGREEMENT ("Agreement") is entered into effective as of March , 1996, by and between the CITY OF CHULA VISTA, a chartered municipal corporation in the State of California ("City"), BANKERS SMALL BUSINESS COMMUNITY DEVELOPMENT CORPORATION OF SAN DIEGO COUNTY, a California corporation ("CDC"), and CDC SMALL BUSINESS FINANCE CORPORATION, a California corporation ("SBF"), with reference to the following facts: RECITALS A. WHEREAS, effective February 15, 1995, the U.S. Department of Commerce, Economic Development Administration ("EDA") awarded the City a $2,000,000 grant for the Border Environmental Commerce Alliance ("BECA") Project; B. WHEREAS, one key component of BECA is the Border Environmental Business Cluster ("BEBC"); the focus of the BEBC is to support and nurture the development of environmental businesses ("Target Companies"); C. WHEREAS, one tool necessary to accomplish this goal is to provide Target Companies with access to affordable start-up financing; D. WHEREAS, City provide such financing Environmental Commerce Program"); a summary of Exhibit A. staff has commonly Alliance the Loan developed a loan program to referred to as the Border Micro Loan Program ("Loan Program is attached hereto as E. WHEREAS, City staff has identified CDC as one lending partner who is locally based, possesses the necessary skills and experience, and has the systems in place to act as a lender in the Loan Program; F. WHEREAS, CDC has agreed to act as a lender and SBF has agreed to act as a guarantor in accordance with the terms of the Loan Program and this Agreement and CDC and SBF, respectively, warrant and represent that they are sufficiently experienced and staffed to deliver the services and assistance described within this Agreement in a timely and high quality manner. u. WHEREAS, on June 13, 1995, pursuant to Resolution No. 17918, City approved $50,000 Development Block Grant funding as an initial installment of the Loan Program; Ci ty Council in Community capitalization NOW, THEREFORE, in consideration of the above Recitals, the mutual obligations set forth herein, and other valuable consideration, the receipt and sufficiency of which the parties hereby acknowledge, the parties hereby mutually agree as follows: 1 tY)y-// AGREEMENT 1. Tarqet Companv Assessment and Execution of Technical Assistance Aareement. City shall assess the financial needs of Target Companies and provide Target Companies with information regarding the Loan Program, all in accordance with policies and procedures established by City. City shall provide each Target Company that desires to participate in the Loan Program with a copy of the form Agreement Governing Technical Assistance Program (the "Technical Assistance Agreement") attached hereto as Exhibit B. No changes to the form Technical Assistance Agreement shall be permitted without the express written approval of both City and CDC. Each Target Company shall be required to execute the Technical Assistance Agreement as a condition to its participation in the Loan Program. Upon the execution by a Target Company of the Technical Assistance Agreement, City and CDC also agree to execute such agreement and to abide by the provisions thereof. Unless otherwise agreed by the parties, the Technical Assistance Program to be implemented thereunder shall substantially conform with the City's five module BEBC Financial Management Technical Assistance Program, a summary of which is attached hereto as Exhibit C. 2. Implementation of Approved Loan. In the event that CDC approves a Target Company's loan application in accordance with the Loan Program and the applicable Technical Assistance Agreement (each an "Approved Loan"), the parties agree as follows: account 2.1 Escrow. ("Escrow" ) CDC shall establish a separate escrow for each Approved Loan with [an escrow company approved by City and mutually approve all Escrow instructions. CDC]. City and CDC shall 2.2 Loan Documents; Fundinq. CDC shall provide the approved Target Company (hereinafter "Borrower") with a set of loan documents ("Loan Documents") in the form attached hereto as Exhibit Q. No changes to the Loan Documents shall be permitted without the express written approval of both City and CDC. To the extent of any conflict between this Agreement and any of the Loan Documents, the provisions of this Agreement shall govern. Prior to the close of Escrow, provided that all Borrower conditions to close have been satisfied, CDC shall execute the appropriate Loan Documents as the "Lender" thereunder, and arrange for the full and timely funding of the Approved Loan. Any and all terms and conditions reflected in the Loan Documents for an Approved Loan shall fall within the range of terms and conditions set forth in the Loan Program attached hereto as Exhibit A. 2 9;;~/-/.:2- 2.3 City Guaranty and Pledqe of Funds. 2.3.1 In General. City shall guarantee repayment of fifty percent (50%) of the outstanding principal balance of each Approved Loan, not to exceed $25,000 for anyone loan ("City Guaranty") . In order to memorialize such obligation, for each Approved Loan City shall execute and deposit into Escrow a guaranty agreement ("Guaranty Agreement") in the form attached hereto as Exhibit E. No change to the Guaranty Agreement shall be permitted without the express written approval of both City and CDC. To the extent of any conflict between this Agreement and any Guaranty Agreement, the provisions of the Guaranty Agreement shall govern. 2.3.2 Pledqe of Funds. In order to secure the City Guaranty with respect to each Approved Loan, the City shall make a cash security deposit ("Security Deposit") for the benefit of CDC into the Approved Loan escrow account in an amount ("Guaranty Amount") equal to the City Guaranty obligation. The City shall make the Security Deposit by no later than the date falling three (3) business days after the date City receives written evidence of (a) the purchase by CDC of the Certificate of Deposit to be acquired in connection with the Approved Loan in accordance with Section 2.3.3 hereof, and (b) the satisfaction of all other conditions to the close of such Approved Loan. Provided that CDC has purchased the required Certificate of Deposit in accordance with Section 2.3.3 hereof, CDC may utilize the Security Deposit to fund the Approved Loan at closing. If, for any reason, an Approved Loan does not close, the entire Security Deposit will be refunded to the City without offset or deduction. 2.3.3 Purchase of Certificate of Deposit. Prior to the closing of each Approved Loan, CDC shall purchase a Certificate of Deposit with a face value equal to the corresponding Guaranty Amount and, unless otherwise agreed by the parties, a maturity date determined by the City, not to exceed six (6) months. A separate Certificate of Deposit shall be purchased for each and every Approved Loan. Each Certificate of Deposit shall be purchased from San Diego National Bank. Each Certificate of Deposit shall designate the City and CDC as its joint beneficiaries and, except as otherwise provided herein, the signatures of both parties shall be required to dispose of the proceeds thereof. Interest accrued under a Certificate of Deposit shall accrue for the sole benefit of the City. Each Certificate of Deposit purchased shall "rollover" and otherwise remain in effect until its disposition pursuant to Section 2.3.5 or 2.5.2 hereof, as applicable. 2.3.4 Adiustment of Guarantv Amount. The maximum amount owed by the City to CDC under any City Guaranty shall never exceed the corresponding Guaranty Amount. There shall be no adjustments to a Guaranty Amount as a result of the capitalization of outstanding interest or other upward adjustment to the principal balance owed under a corresponding Approved Loan whether authorized by the Loan Documents or otherwise. 3 ~y~ /--? 2.3.5 Disposition of Certificate of Deposit Proceeds. Upon the repayment of all outstanding principal due under an Approved Loan, any and all right, title and interest held by CDC in the corresponding Certificate of Deposit shall automatically be released and conveyed to the City as the City's sole property. Upon City's request, CDC agrees to execute and provide to the City (or its designee) any documentation City deems necessary or appropriate to reflect such release and conveyance. Under this Section City shall bear the costs, if any, arising as a result of the liquidation of the Certificate of Deposit prior to its maturity date. 2.4 SBF Guarantv and Pledqe of Funds. 2.4.1 In General. SBF shall guarantee repayment of certain Approved Loans ( "SBF Guaranty") in accordance with the following terms and conditions: (a) Where the subject Borrower has been in operation for at least six (6) months (the minimum requirement under the Loan Program), but not more than twelve (12) months at the time of funding of the Approved Loan, SBF shall guarantee repayment of fifty percent (50%) of the outstanding principal balance thereof, not to exceed, for anyone loan, a maximum guarantee amount of $25,000. (b) Where the subject Borrower has been in operation for twelve (12) or more months at the time of funding of the Approved Loan, and the principal balance of the Approved Loan exceeds $60,000, SBF shall guarantee repayment of a portion of the principal balance thereof ("SBF Guaranty Amount"), which amount, when added to the amount of the initial City Guaranty Amount, and this sum is subtracted from the initial principal balance of the Approved Loan, leaves an unguaranteed principal balance of not to exceed $35,000. For example: if the principal balance of an Approved Loan is $70,000, and the initial City Guaranty Amount is $25,000, the corresponding SBF Guaranty Amount would be $10,000. (c) In order to memorialize its guaranty obligation hereunder, for each Approved Loan to be guaranteed, SBF shall execute and deposit into escrow a guaranty agreement in a form approved by City and CDC. No change to this agreement shall be permitted without the express written approval of all parties hereto. To the extent of any conflict between this Agreement and any such guaranty agreement, the provisions of this Agreement shall govern. 2.4.2 Purchase of Certificate of Deposit. Prior to the closing of each Approved Loan for which SBF is obligated to provide a guaranty pursuant to Section 2.4.1 hereof, in order to secure the corresponding SBF Guaranty, SBF shall purchase a Certificate of Deposit with a face value equal to the corresponding SBF Guaranty Amount. Each Certificate of Deposit shall be purchased from a bank approved by SBF and CDC. Each Certificate of Deposit shall designate SBF and CDC as its joint beneficiaries and, 4 ~l;/-I( except as otherwise provided herein, the signatures of both parties shall be required to dispose of the proceeds thereof. Interest accrued under a Certificate of Deposit shall accrue for the sole benefit of the SBF. Each Certificate of Deposit purchased shall "rollover" and otherwise remain in effect until its disposition pursuant to Section 2.4.4 or 2.5.3 hereof, as applicable. 2.4.3 Adiustment of Guarantv Amount. The maximum amount owed by SBF to CDC under any SBF Guaranty shall never exceed the corresponding Guaranty Amount. There shall be no adjustments to a SBF Guaranty Amount as a result of the capitalization of outstanding interest or other upward adjustment to the principal balance owed under a corresponding Approved Loan whether authorized by the Loan Documents or otherwise. 2.4.4 Disposition of Certificate of Deposit Proceeds. Upon the repayment of all outstanding principal due under an Approved Loan, any and all right, title and interest held by CDC in the corresponding SBF Certificate of Deposit shall automatically be released and conveyed to the SBF as SBF's sole property. Upon SBF's request, CDC agrees to execute and provide to SBF (or its designee) any documentation SBF deems necessary or appropriate to reflect such release and conveyance. Under this Section SBF shall bear the costs, if any, arising as a result of the liquidation of the Certificate of Deposit prior to its maturity date. 2.5 Loan Default Proceedinqs. 2.5.1 Initial Notice and Discussions. CDC shall notify City in writing of any default by a Borrower under the Loan Documents. Within a reasonable period of time after receiving such notice, City shall attempt to meet with Borrower in order to discuss the cause of such default, and to encourage Borrower to promptly cure same. In the event that a Borrower default remains uncured for a period of thirty (30) days after the occurrence thereof, CDC shall cooperate with City in order to schedule a meeting or meetings between City, Borrower and CDC at which the parties agree to meet and confer regarding possible alternatives to the immediate pursuit by CDC of debt collection remedies. Notwithstanding the foregoing, if CDC fails to notify the City or a Borrower regarding any default under an Approved Loan, such failure alone shall not constitute a default by CDC under this Agreement. 2.5.2 Available Remedies. If after a reasonable period of meeting and conferring in accordance with Section 2.5.1 hereof, Borrower's default remains uncured and the parties have not mutually agreed on an alternative to CDC's pursuit of debt collection remedies, upon obtaining City's prior written approval, which such approval shall not be unreasonably withheld or delayed, CDC shall be entitled to pursue any and all remedies against Borrower available under the corresponding Loan Documents, or otherwise available at law or in equity (collectively, the "Conventional Remedies"). CDC shall use its good faith best 5 P;:!;//L; efforts to pursue the Conventional Remedies against the Borrower. In the event that CDC exhausts such efforts without the full satisfaction of the amounts owed thereto under the Loan Documents, CDC shall notify the City in writing and, subject to obtaining City's prior written approval, which such approval shall not be unreasonable withheld or delayed, CDC shall have the right to enforce the corresponding Guaranty Agreement against the City in accordance with the terms thereof. In the event that CDC does so elect to enforce the Guaranty Agreement, CDC agrees that (a) if a corresponding SBF Guaranty exists (i) it shall simultaneously pursue its remedies thereunder in accordance with the terms of Section 2.5.3 hereof; (b) to the extent of the Guaranty Amount collected by CDC from the City, City shall be subrogated to any and all of CDC's Conventional Remedies; (c) CDC shall, nonetheless, exercise its best efforts to cooperate with City in its pursuit of recovery of the Guaranty Amount, plus costs, against the Borrower; and (d) to the extent that CDC had recovered or recovers amounts due and payable from the Borrower, after deducting any and all reasonable costs awarded in connection therewith, CDC shall offset against the Guaranty Amount payable to the City, or pay to City, as appropriate, a share of such recovered amount ("City's Share of Debt Collection Proceeds") equal to the product of the recovered amount multiplied by a fraction, the numerator of which shall be the Guaranty Amount at the time of the closing of the corresponding loan, and the denominator of which shall be the original principal amount of such loan. For example, if the original Guaranty Amount for an Approved Loan was $25,000, the original principal amount of such loan was $50,000, and CDC was able to collect $33,000, through collateral or similar recovery, in a debt collection action against the Borrower, $3,000 of which was compensation fqr CDC's debt collection costs, the maximum Guaranty Amount payable by City to CDC under the corresponding Guaranty Agreement would be reduced by $15,000 (50% of $30,000 = $15,000) from $25,000 to $10,000. Notwithstanding the foregoing, in no event shall the City's Share of Debt Collection Proceeds exceed the Guaranty Amount collected from the City by CDC under the Guaranty Agreement. 2.5.3 SBF Guarantv. SBF agrees that in the event that City approves CDC's right to pursue a City Guaranty in accordance with Section 2.5.2 hereof, and an SBF Guaranty exists with respect to the subject Approved Loan, SBF will be deemed to have authorized CDC to pursue its rights to the Certificate of Deposit funds securing SBF's obligations under the corresponding SBF Guaranty. Upon CDC's request, SBF agrees to execute and provide to CDC (or its designee) any documentation CDC deems necessary or appropriate to reflect SBF' s deemed authorization hereunder. Under this Section CDC shall bear the costs, if any, arising as a result of the liquidation of the Certificate of Deposit prior to its maturity date. 2.5.4 Coordination Between Citv Guarantv and SBF Guarantv. Notwithstanding the foregoing, if at the time CDC is authorized to pursue a City and SBF Guaranty pursuant to Sections 2.5.2 and 2.5.3 hereof the sum of the applicable City Guaranty Amount and SBF Guaranty Amount (the "Guaranty Sum") is greater than 6 ~~/? the then outstanding principal balance under the subject Approved Loan (the "Outstanding Balance"), SBF's liability under the SBF Guaranty shall be reduced, but not below zero, by the positive difference between the Guaranty Sum and the Outstanding Balance. For example, if the original principal balance of an Approved Loan is $70,000, the corresponding City Guaranty Amount is $25,000, the corresponding SBF Guaranty Amount is $10,000, and at the time of default the outstanding principle balance after collecting on the borrowers collateral is $30,000, in the event that CDC is authorized to pursue the corresponding City and SBF Guarantees as provided above (a) the City Guaranty Amount shall remain $25,000; and (b) the SBF Guaranty Amount shall be reduced from $10,000 to $5,000 (the $10,000 SBF Guaranty Amount less the positive difference between the Guaranty Sum and the $30,000 Outstanding Balance, leaves an SBF Guaranty Amount of $5,000.) 2.6 Loan Servicinq. CDC shall be solely responsible for servicing each Approved Loan in accordance with the Loan Documents, the provisions of this Agreement and all applicable laws and regulations. CDC agrees to provide City with a concurrent copy of any and all billing statements or notices sent to Borrower in connection with such loan serving, at City's request. 3. Remedies: Termination Riqhts. 3.1 Remedies for Breach. In the event a party is in breach of its obligations under this Agreement, the non-breaching party may notify the breaching party of such breach in writing. The breaching party shall have until fifteen (15) days after receipt of such notice to cure such breach. In the event the breaching party fails to cure such breach within this 15-day period or, if the breach is not reasonably curable during such period, the breaching party fails to diligently commence to cure such breach during such period and thereafter fails to reasonably pursue such cure to completion, then the non-breaching party shall be entitled to declare a default under this Agreement and pursue any and all remedies available thereto at law or in equity. For purposes of this Agreement, a breach by a party under a Technical Assistance Agreement, under a set of Loan Documents or under a Guaranty Agreement shall also considered to be a breach hereunder. 3.2 Termination Due to Lack of Fundinq. The parties acknowledge and agree that City's ability to conduct the Loan Program and fulfill its obligations under any and all agreements and obligations related thereto (including, without limitation, this Agreement, each Guaranty Agreement and each Technical Assistance Agreement) (collectively, the "Loan Program Obligations"), are contingent upon the receipt of sufficient funding from third party funding sources. Accordingly, in the event that all or any portion of such funding is no longer received by the City and or allocated by the City to its Loan Program Obligations, City shall have the right, upon fifteen (15) days written notice to CDC, to terminate this Agreement. Upon such termination, neither party shall have any further obligations hereunder, except that the parties executory Loan Program 7 ~? -' Obligations with respect to Approved Loans that have already closed shall continue in full force and effect. 3.3 Termination for Convenience. Each shall have the right, for any reason whatsoever, upon thirty (30) days written notice to the other party, to terminate this Agreement. Upon such termination, neither party shall have any further obligations hereunder, except that the parties executory Loan Program Obligations with respect to Approved Loans that have already closed shall continue in full force and effect. 4. Indemnitv. CDC agrees to protect, defend, indemnify and hold harmless the City, its Council members, officers, employees, agents and representatives, from and against, any and all claims, costs, damages, liabilities or losses, including, without limitation, attorneys' fees and court costs, which are claimed or pursued by a Target Company, a Borrower or any other third party, which are caused, directly or indirectly, by any breach of contract, negligent act or omission, or wilful misconduct by CDC in connection with the Loan Program, the Loan Documents or this Agreement. 5. General Provisions. 5.1 Amendment. Notwithstanding any provision to the contrary, all changes to this Agreement and/or to any Guaranty, Note or other Exhibit, the forms of which are attached hereto, must be approved in advance by each of CDC, City and SBF. 5.2 Assiqnment. This Agreement may not be transferred, assigned, and/or pledged by either party without the express written consent of the other party, which consent may be withheld in such party's sole discretion. 5.3 Attornevs Fees. In the event that any party hereto shall institute any action or proceeding to enforce, construe, or interpret any rights granted hereunder, the prevailing party in such action or proceeding shall be entitled, in addition to any other relief granted by the Court or other applicable judicial body, to reasonable attorneys' fees and court costs. 5.4 Authoritv. Each party to this Agreement expressly warrants that he, she or it has the authority necessary to execute this Agreement. 5.5 Bindinq Upon Successors and Assiqns. This Agreement and the covenants and conditions contained herein shall apply to, be binding upon, and inure to the benefit of the respective heirs, administrators, executors, legal representatives, approved assignees, successors, and agents of the parties hereto. 5.6 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument. 8 ~ c2 t/-/ c5 5.7 Exhibits. Any and all exhibits attached hereto are hereby incorporated herein by this reference. 5.8 Further Assurances. Each party hereto agrees to execute, acknowledge, deliver, file, and record such further certificates, documents and instruments and to do all such further acts and things as may be reasonably necessary to carry out the intent and purposes of this Agreement. 5.9 Governinq Law and Construction. This Agreement has been delivered and accepted and deemed to have been made in San Diego County, California. This Agreement shall, in all respects, be interpreted, enforced, and governed by and under the laws of the State of California. This Agreement is to be deemed to have been jointly prepared by the parties, and any uncertainty or ambiguity existing herein shall not be interpreted against any of the other parties, but according to the application of the rules of interpretation of contracts, if any such uncertainty or ambiguity exists. In the event that any suit or action is brought to enforce any of the provisions of this Agreement or to interpret same, the venue will be any court of competent jurisdiction sitting in San Diego County, California. 5.10 Notice. All notice and other communications between CDC and City required or permitted, shall be in writing and shall be delivered, sent by telecopy or sent by certified mail, return receipt requested, to the following addresses: If to CDC or SBF: 5353 Mission Center Road, Suite 218 San Diego, CA 92108 Attention: Arthur Goodman If to City: City of Chula Vista 276 Fourth Avenue Chula Vista, California 91910 Attention: Cheryl Dye Each party may change the address for purposes of this Agreement, by giving written notice to the other of the new address. Should any party fail to notify the other in writing of a change in address, any notice sent at the last address properly communicated shall be considered proper notice and constitute faithful performance of the duty to give notice under this Agreement. 5.11 Severabili tv. The provisions of this Agreement are severable and should any provision be, for any reason, unenforceable, the balance shall, nonetheless, be of full force and effect. 9 .~ ,;J tj// '7 5.12 Time is agrees that time is of covenants and conditions of the Essence. Each party expressly the essence in the performance of all of this Agreement. 5.13 No Third Part v Beneficiaries. There shall be no third party beneficiaries of any of the obligations, terms and conditions set forth in this Agreement. [Next Page is Signature Page] 10 ~ d-f-d-~l ,~ [Signature Page] IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the date first set forth above. Dated: . BANKERS SMALL BUSINESS COMMUNITY DEVELOPMENT CORPORATION OF SAN DIEGO COUNT By' Nam Title: ... By:' Name: Title: .' Dated: CDC SMALL BUSINESS FINANCE CORPORATION, a California corporat' n~- ,./ ...-: _/:/7:/ d 0" / By'" ...----- ".-_....._~ t"__ . ~-' '.", ..,; "'~ - - - ~:::---... Name: ' Title: _ Dated: CITY OF CHgLA VISTA By: Name: Title: Attest: City Clerk Approved as to form: City Attorney N:\shared\attorney\mic-loan.A3 11 ~ <~ tj-c2 / , ' ;' EXHIBIT A Border Environmental Commerce Alliance Micro Loan Program Criteria Description Purpose of funding Contract financing for: Working Capital, Equipment, and Fixtures. Company must have been in operation for at least six (6) months and a tenant of the BEBC for at least three (3) months. $50,000 for business in operation less than one year. Eligibility Maximum Loan Amount Interest Rate $70,000 for businesses in operation more than one year. Fixed: Prime + 3.5% Fees $300 Processing Fee (Lender) 2.5% of City Guarantee (City Closing Fee) 3.0% Servicing Fee (Lender) Up to $875 Technical Assistance Fees (City) Zero (0) to Two (2) Years Term Co llateral Business owner must have good credit. Demonstrated ability to repay. Assignment of Contracts: Equal or greater to value of loan amount (including City 50% guarantee), personal guarantee of principles in the business. Additional Qualifications 12 ~3 ,--'}J! ---,--} ..) This page blank. ~ dJJ/-c2 L/ EXHIBIT B AGREEMENT GOVERNING TECHNICAL ASSISTANCE PROGRAM This Agreement Governing Technical Assistance Program ("Agreement") is entered into as of , 199 , by and between Bankers Small Business Community Development Corporation of San Diego County ( "Lender") , ( "Appl icant ",), and the City of Chula Vista, a chartered municipal corporation ("City"), and is made with reference to the following facts: RECITALS A. Applicant is a tenant in the Border Environmental Business Cluster program ("BEBC") operated by City. B. As part of the BEBC, City developed the Border Environmental Commerce Alliance Micro Loan Program ("Loan Program") and entered into that certain Micro-Loan Enterprise Agreement with Lender dated March ,1996 (the "Enterprise Agreement") to provide lender services in connection therewith. C. Applicant has applied to Lender for commercial financing under the Loan Program pursuant to a loan application dated: ("Subject Loan") . D. As a condition, among others, of providing commercial financing to Applicant, Lender requires that Applicant participate in the City's technical assistance program ("Technical Assistance Program") pursuant to which a designee of the City will provide Applicant with technical business counseling and related training. E. The objectives of the Technical Assistance Program are to provide Lender with an assessment of Applicant's accounting system and credibility of financial statements presented for loan approval and to assist Applicant in understanding basic accounting systems and recordkeeping in order to meet financial information requirements of Lender for the duration of the Subject Loan. F. Lender, Applicant and City enter into this Agreement for the purpose of specifying the terms and conditions of the Technical Assistant Program including, but not limited to, its interrelationship with the Subject Loan, and agree that the Technical Assistance Program shall be governed by the terms of this Agreement. NOW, THEREFORE, in consideration agreements contained herein, and consideration, the parties agree of the mutual covenants and for other good and valuable as follows: 1 ~/ } U/.-1 (7 t-T-- / c././ AGREEMENT 1. Applicant's Initial Loan Application. In connection with Applicant's initial loan application, Applicant shall meet with Lender's loan officer for a determination of financing eligibility. Applicant shall complete and provide to Lender the initial financing application and financial statements and tax returns as specifically requested by Lender. 2. Lender's Referral of Applicant to City. Upon Applicant's submittal of the initial loan application, Lender will consult with City in order to determine the need for Applicant to participate in the Technical Assistance Program in accordance with the terms and conditions of this Agreement. In the event that Lender and City mutually agreed that Applicant shall be required to participate, Applicant shall comply with all terms and conditions set forth hereinbelow. 3. Phase 1 Technical Assistance - Loan Application. The parties agree that the following shall occur in connection with Applicant's submittal of his loan application for the Subject Loan ("Phase 1"): a. City's Initial Review. Five business days prior to submittal of Applicant's initial loan application, Applicant shall give City access to Applicant's business accounting system and financial records for the purpose of reviewing and verifying the accuracy of Applicant-prepared financial information, including financial statements and tax returns. In addition, City shall review and assess the sufficiency of Applicant's accounting system and financial records. b. City's Initial Report to Lender. After completion of City's initial review and analysis of Applicant's accounting system and financial records, City shall immediately submit a written report to Lender of his findings and recommendations regarding the financial information submitted to Lender by Applicant and the nature and sufficiency of Applicant's accounting and financial recordkeeping system. c. Presentation of Loan Application to City Advisorv-Loan Committee. City shall present Applicant's loan application to City's Advisory Loan Committee at such time that it, in its sole discretion, is satisfied with the information provided by Applicant regarding the sufficiency of Applicant's accounting system and accuracy of Applicant's financial statements and tax returns. d. Presentation of Loan Application to Loan Committee. Lender's loan officer shall present Applicant's loan application to Lender's Loan Committee at such time that (a) the City's 2 ~ c:2 t/ ~ ol j" , .' Advisory Loan Committee has recommended approval of the loan, and (b) it, in its sole discretion, is satisfied with the sufficiency of Applicant's accounting system and accuracy of Applicant's financial statements and tax returns. 4. Phase 2 Technical Assistance - Loan Approval and Fundinq. Upon approval of Applicant's loan application by Lender's Loan Committee and funding the parties agree as follows: a. Term of Phase 2 Technical Assistance. City shall provide technical business counseling and related training to Applicant in the manner specified herein, commencing from the date of loan disbursement and continuing for the life of the loan. b. Nature of Phase 2 Technical Instruction and Assistance. During Phase 2 City shall assist and advise Applicant in comprehension of the following accounting-related concepts: (1) preparation of basic financial statements; (2) analysis of basic financial statements; (3) use of basic financial ratios including, but not limited to, Current Ratio, Quick Ratio, Accounts Payable Turnover, Accounts Receivable Turnover, Inventory Turnover and Debt-To-Worth [leverage] Ratio; (4) preparation of projections for loan applications, and (5) compilation and interpretation of trend analyses. In performing the above-referenced technical training and instruction, City may, but is not required to, read Applicant- prepared financial statements, propose changes to Applicant- prepared financial statements, provide Applicant with financial statement formats and/or advise Applicant on the selection of computer accounting-related software packages. However, the parties acknowledge that City, in performing the above-referenced training and technical assistance, shall not be required to, nor shall they generate, prepare or submit financial statements on behalf of Applicant, make material modifications to client- prepared financial statements, and/or provide automated bookkeeping services. c. Applicant's Requirement to Submit Financial Statements to Lender. For each of the first three months following loan disbursement, within 30 days of each month's end, Applicant shall submit to Lender monthly financial statements in a form satisfactory to Lender (including income statements and balance sheets). For each three month period thereafter, within 30 days of the end of each such quarter, Applicant shall submit to Lender quarterly financial statements in a form satisfactory to Lender (including income statements and balance sheets). Applicant shall submit to City the above-required monthly financial statements each month for the duration of the loan within 30 days of each month's end. 3 ~. ,;2 '1-;2 '/ d. City's Written Evaluation. Within 30 days following completion of Phase 2, City shall provide to Lender a written evaluation, in a form acceptable to Lender, of Applicant's comprehension of technical assistance training. 5. Payment of Fees. The parties acknowledge and agree that the fees for City's services hereunder shall be payable as follows: a. Citv Guaranty Fee. Applicant acknowledges and agrees that in the event the Subject Loan is approved by Lender, Applicant shall be obligated to pay to City a fee equal to 2.5% of the City's maximum liability under any City guaranty to be provided by City in connection with the Subject Loan. (For example, if the City is guaranteeing $5,000 of a $10,000 loan, Applicant's fee obligation to City under this Section would be $125.) Such fee shall be payable out of Applicant's Loan proceeds at the loan closing. b. City's Phase 2 Technical Assistance Fee. Applicant acknowledges and agrees that in the event the Subject Loan closes, Lender shall retain up to $875 from Applicant's loan proceeds (depending upon the loan term) which will be paid by Lender to City for City's Phase 2 technical assistance work as follows: (i) $75 per month for a period of three months following Applicant's submittal of the Section 4.c required monthly financial statements to Lender; (ii) $75 per quarter for each subsequent quarter of the Subject Loan term following Applicant's submittal of the Section 4.c. required quarterly financial statements to Lender, and (iii) $125 following City's submittal and Lender's approval of City's evaluation report required by Paragraph 4.d. c. Adiustment of Fees Withheld From Subiect Loan Proceeds. The parties acknowledge and agree that Lender may adjust the amount retained from Applicant's loan proceeds to a lesser amount in the event grant proceeds, if any, are used to pay, in whole or in part, any of City's fees. The parties further acknowledge that nothing contained herein shall be construed as an agreement or promise by Lender to contribute or use grant proceeds to pay all or any portion of City's fee. 6. Applicant's Dutv to Cooperate. Applicant covenants and agrees with Lender that, while this Agreement is in effect, Applicant will permit City and/or City's agent to access Applicant's accounting system and financial records at Applicant's place of business. Applicant shall cooperate with City to schedule City's review and assessment of Applicant's accounting system and financial statements required under Phase 1. Further, Applicant shall cooperate with City in scheduling and receiving the technical accounting instruction and training from City required under Phase 2. 4 ~ -l-;/ /'-J...?' '- '1, 7. City's Technical Assistance Services. For the sole benefit of Lender City hereby acknowledges and agrees to: a. Cooperate with Applicant in scheduling sufficient meetings at Applicant's place of business in order to accomplish and complete Phase 1 and Phase 2 technical assistance objectives; b. Make an initial written report to Lender regarding Applicant's accounting system and financial statements in order for Lender to present Applicant's loan application to Lender's Loan Committee; c. Complete and submit a written evaluation regarding Applicant's technical assistance training and comprehension of financial reports to Lender upon completion of Phase 2; and d. Accept, in full satisfaction of City's services under this Agreement, the sums set forth in Section 5 hereof. 8. No Guaranties. Warranties or Representations. Applicant acknowledges and agrees that nothing contained in this Agreement shall be deemed a guaranty, warranty or representation, express or implied, by Lender and/or City, to Applicant concerning the benefits of the Technical Assistance Program. Neither Lender nor City make any covenants, representations or warranties with respect to the Technical Assistance Program. without limiting the generality of the foregoing, Lender and City make no guaranties, warranties or representations whatsoever, nor shall they have responsibility, with respect to: a. Applicant's comprehension of the technical assistance training provided by City; b. The adequacy of Applicant's accounting system and/or financial records for any other loan application made by Applicant; c. Unless and until specifically approved by Lender's Loan Committee, Applicant's eligibility for the Subject Loan; d. Applicant's ability to repay the Subject Loan in accordance with the express terms of same; e. The future profitability of Applicant's business; f. Profit, loss and/or benefit that may result directly or indirectly from the Technical Assistance Program; 5 ~ c;2Y-c29 g. The legality of any action taken by Applicant in connection with his accounting system, financial recordkeeping and/or preparation of tax returns; h. Providing, generating, preparing or submitting Applicant's financial statements; i. Making any material modifications directly to Applicant-prepared financial statements; j. Providing automated bookkeeping services to Applicant; and k. Providing tax advice or tax return services. 9. Acknowledqements of Applicant. Applicant acknowledges, agrees, warrants and represents the following: a. That in executing this Agreement, Applicant is not relying on any representation of Lender and/or City, except as may be expressly set forth in this Agreement; b. That the person signing this Agreement on behalf of Applicant had the authority to execute, deliver, bind and perform this Agreement; c. That Applicant shall take any action reasonably requested by Lender and/or City to effectuate the terms of this Agreement, including, but not limited to, providing City with access to his place of business, accounting system and financial records; d. That Applicant's participation in the Technical Assistance Program is an express requirement of Lender in reviewing Applicant's loan application and/or approval of same; e. That neither Lender nor City has made any commitment to Applicant regarding the eligibility and/or approval of the Subject Loan; and f. That nothing contained herein requires City to generate, prepare or submit financial statements, make material modifications to Applicant-prepared financial statements, provide tax advice, tax return services, or provide automated bookkeeping services to Applicant. g. Applicant is solely responsible for complying with its obligations under this Agreement. Applicant waives any and all claims for damages or losses against City which may arise directly or indirectly, as a result of a default by Applicant hereunder, and Applicant hereby releases City from any such claims. 6 r~ ;J2f rJC h. Under the Enterprise Agreement between City and Lender, City may be guaranteeing 50%, up to a maximum $25,000, of the Subject Loan for the benefit of Lender. In connection with such guaranty Lender is required to provide City with copies of all statements, bills and notices provided to Applicant in connection with same. Applicant has been provided with a copy of the Enterprise Agreement, has reviewed same, and acknowledges and agrees with all provisions thereof. Applicant further acknowledges and agrees that the performance of the obligations in the Enterprise Agreement by City and Lender are for the sole benefit of City and Lender and Applicant is not, and hereby waives and releases any rights as, a third party beneficiary thereunder. 10. Applicant's Release of Lender and City. As further consideration for this Agreement, Applicant and his respective heirs, estates, successors and assigns, hereby forever and irrevocably release and discharge Lender, City and their respective officers, representatives, agents, employees, counsel, predecessors, successors, affiliates and assigns, from any and all claims, demands, suits, cross-complaints, debts, damages, offsets, defenses, and assertions of any kind and nature whatsoever, whether known or unknown, whenever or however arising, which relate to the matters arising out of or in connection with the Technical Assistance Program. 11. Civil Code S 1542 Waiver. In connection with the foregoing, Applicant hereby expressly waives any and all rights he may have under Section 1542 of the California Civil Code which states: A general release does not extend to claims a creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him, must have materially affected his settlement with the debtor. Applicant hereby waives and relinquishes any claims and benefits which he has or may have under Section 1542 of the Civil Code of California to the full extent that he may lawfully waive such rights and benefits. Applicant acknowledges that he is aware that he may hereafter discover facts in addition to, or different from, those which he now knows or believes to be true with respect to the matters released in Paragraph 11 above, but it is his intention to release any and all matters, disputes, and differences, known or unknown which heretofore may have existed, or hereafter may exist as specified in Paragraph 11 above, and in furtherance of this intention, the release given herein shall be and remain in effect as a full and general release of the matters specified therein notwithstanding the discovery or existence of any additional or different facts. 7 ~ ,J- 7'~/7 ( , '~ 12. Indemnification. Applicant agrees to indemnify, protect, defend and hold Lender and City and any of their officers, agents, employees and counsel, harmless from and against any and all liabilities, claims, actions, damages, expenses, costs (including reasonable attorneys' fees) of any kind, arising out of, pertaining or relating to, the Technical Assistance Program and/or this Agreement. 13. Relationship Between Lender and City; No City Representations or Warranties re Applicant. The parties hereto expressly acknowledge that City is not an agent or employee of either Lender or Applicant hereunder, but is acting solely on behalf of itself in the implementation of its BEBC Loan Program. Furthermore, Lender acknowledges and agrees that the City makes no representations or warranties as to the accuracy or completeness of the information provided by Applicant hereunder or otherwise in connection with the Subject Loan. Lender agrees that in deciding whether to approve the Subject Loan, Lender is relying solely on its own investigation of the Applicant and the information provided thereby. As further consideration for this Agreement, Lender and its heirs, estates, successors and assigns, hereby forever and irrevocably release, discharge and agree to indemnify, protect, defend and hold harmless City and its officers, representatives, agents, employees, counsel, predecessors, successors, affiliates and assigns, from any and all claims, demands, suits, cross-complaints, debts, damages, offsets, defenses, costs (including attorneys' fees and court costs) and assertions of any kind and nature whatsoever, whether known or unknown, whenever or however arising, which relate to the matters arising out of or in connection with the Technical Assistance Program and Lender's decision to approve the Subject Loan. 14. Confidentiality. The parties agree that all information provided by Applicant to City and Lender in connection with the Technical Assistance Program is to be used solely in connection with the Technical Assistance Program and Lender's review and/or approval of Applicant's loan application. Except as necessary to fulfill each parties duty hereunder, or otherwise required by law, including, without limitation, the Public Records Act, City and Lender shall keep the information provided by Applicant hereunder confidential. 15. Default. The happening of any of the following events shall constitute default under the terms of this Agreement: 8 ~ ~i/:?2 a. The failure of Applicant to promptly cooperate with City in City's Phase 1 review and analysis of Applicant's accounting system and financial reports; b. The failure of Applicant to promptly cooperate with City in City's Phase 2 technical business accounting training; and c. Any other default as defined under the terms of the Subject Loan documents. Upon default, Lender shall be entitled to, without further notice, declare the entire balance of the Subject Loan immediately due and payable in full and enforce the Subject Loan and/or pursue any collateral pledged for the Subject Loan; provided, however, any such action shall be taken subject to the terms and conditions of the Enterprise Agreement between the City and Lender. 16. Termination. This Agreement shall terminate, without further notice, upon: a. Denial of Applicant's loan application; and b. The performance by Applicant of all its obligations hereunder. In addition, Lender may, at its sole option, terminate this Agreement upon Applicant's failure to cooperate with City in Phase 1 and/or Phase 2 technical assistance. Any election of Lender not to exercise its rights to terminate this Agreement under this paragraph upon the happening of any event giving rise to a right to terminate, shall not be deemed a waiver of Lender's right to subsequently terminate this Agreement. If Lender, in its sole discretion, elects to terminate this Agreement pursuant to this paragraph, then this Agreement shall be of no force or effect and shall be null and void except that any and all of Applicant's and Lender's release and/or indemnification agreements set forth hereunder shall survive termination of this Agreement. Nothing contained in this paragraph shall preclude Lender from also declaring a default under Paragraph 16 hereinabove. 17. Notice. All notice and other communications between Lender, City and Applicant, required or permitted, shall be in writing and shall be delivered, sent by telecopy or sent by certified mail, return receipt requested, to the following addresses: 9 .~ c1tf- :3 J !( If to Lender: Bankers Small Business Community Development Corporation of San Diego County 5353 Mission Center Road, Suite 218 San Diego, CA 92108 If to City: City of Chula Vista 276 Fourth Avenue Chula Vista, California 91910 Attention: If to Applicant: Each party may change the address for purposes of this Agreement, by giving written notice to the others of the new address. Should any party fail to notify the others in writing of a change in address, any notice sent at the last address properly communicated shall be considered proper notice and constitute faithful performance of the duty to give notice under this Agreement. 18. Attornevs' Fees. In the event that any party hereto shall institute any action or proceeding to enforce, construe, or interpret any rights granted hereunder, the prevailing party in such action or proceeding shall be entitled, in addition to any other relief granted by the Court or other applicable judicial body, to reasonable attorneys' fees and court costs. 19. Advice of Counsel. The parties acknowledge and agree that they have had the opportunity to be represented by independent counsel in the negotiation, preparation and the execution of this Agreement and that each of them have read this Agreement and has had the opportunity to have it fully explained by his, her or their counsel prior to its execution and is fully aware of its contents and legal effect. 20. Bindinq Upon Successors and Assiqns. This Agreement and the covenants and conditions contained herein shall apply to, be binding upon, and inure to the benefit of the respective heirs, administrators, executors, legal representatives, assignees, successors, and agents of the parties hereto. 10 ~ L~{-~?f 21. Severabi1itv. The provisions of this Agreement are severable and should any provision be, for any reason, unenforceable, the balance shall, nonetheless, be of full force and effect. 22. Governinq Law and Construction. This Agreement has been delivered and accepted and deemed to have been made in San Diego County, California. This Agreement shall, in all respects, be interpreted, enforced, and governed by and under the laws of the State of California. This Agreement is to be deemed to have been jointly prepared by the parties, and any uncertainty or ambiguity existing herein shall not be interpreted against any of the other parties, but according to the application of the rules of interpretation of contracts, if any such uncertainty or ambiguity exists. In the event that any suit or action is brought to enforce any of the provisions of this Agreement or to interpret same, the venue will be any court of competent jurisdiction sitting in San Diego County, California. 23. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument. 24. Time is of the Essence. Each party expressly agrees that time is of the essence in the performance of all covenants and conditions of this Agreement. 25. Assiqnment. Each party to this Agreement expressly warrants that he, she or it has the authority necessary to execute this Agreement. Further, Applicant acknowledges that this Agreement may not be transferred, assigned, and/or pledged by Applicant to any other party. 26. Amendment. This Agreement may not be and shall not be deemed or construed to have been modified, amended, rescinded, cancelled, or waived, in whole or in part, except by written instrument signed by the parties hereto. 27. Gender and Person. As used in this Agreement, the masculine, feminine or neuter gender and the singular and plural shall be deemed to include the other whenever the context so indicates. 11 ~2rj~._T~ ~ 28. Future Assurances. Each party hereto agrees to execute, acknowledge, deliver, file, and record such further certificates, documents and instruments and to do all such further acts and things as may be necessary to carry out the intent and purposes of this Agreement. 29. Effective Date. This Agreement is made effective as of the date set forth hereinabove. 30. Entire Aqreement; Relationship with Enterprise Aqreement. This Agreement is the entire agreement between the parties with respect to the subject matter hereof and all prior or contemporaneous agreements, whether oral or in writing, are hereby superseded; provided, however, as between City and Lender, this Agreement shall be subject to the terms and conditions of the Enterprise Agreement which, in the event of a conflict with the terms and conditions of this Agreement, shall govern. [Next Page is Signature Page] 12 .-2 '--]~ ~- [SIGNATURE PAGE] IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date set forth adjacent to their names. Dated: BANKERS SMALL BUSINESS COMMUNITY DEVELOPMENT CORPORATION OF SAN DIEGO COUNTY By: Name: Title: Dated: APPLICANT By: Name: Title: Dated: CITY OF CHULA VISTA By: Name: Title: [(MD) C;\WP51\DOCUMENT\mic-loan.b (April 26, 1996)] 13 ,;2;/-7;J ~ ~~~ ~W)~~y~ -RCf"'\'\' EXHIBIT C Border Environmental Business Cluster (BEBC) Micro-Enterprise Loan Program . Debt Financing Assistance Process Overview A Premise of Reduced-Risk Through Technical Assistance · The City of Chula Vista and the Border Environmental Business Cluster (BEBC) are proposing a joint Micro-Enterprise Loan Program as an extension and enhancement of the existing Bankers Small Business Community Development Corporation (CDC) program. · This enhanced lending program will be a tightly-focused effort, designed to link the complementary experience and expertise of the BEBC and Bankers CDC programs. Specifically, it will utilize the small business lending expertise of the Bankers CDC, and the Business "Incubation" and Technical Assistance expertise of the BEBC. · This lending program is a natural combination of the two organizations because both are built around a premise of reducing risk through technical assistance. In particular, the existing Bankers CDC program utilizes an enforced technical assistance requirement to reduce the risk of loan default. Similarly, the BEBC program utilizes an array of on-site business consulting and other technical assistance services to reduce the risk of business failure for its tenant companies. · In other words, the proposed Micro-Enterprise Loan Program will build upon this premise by incorporating the key components of both programs. · The BEBC Micro-Enterprise Loan Program further limits risk by directly linking loans to existing contracts or accounts receivables of tenant companies. The importance of this is amplified by the fact that these contracts or receivable can be tightly-monitored due to the daily contact between the BEBC staff and the tenant companies The BEBC Technical Assistance Program · The entire BEBC "incubator" program is based upon increasing the success rate of start- up companies by providing a closed entrepreneurial environment with flexible and reasonably priced office space, shared office equipment, and a full-time professional staff of on-site business counselors and technical specialists. ;J2/~~] / /1-.;)9 '. · Upon acceptance into the BEBC, each company undergoes a Needs Assessment with the staff. Over roughly a four week period, this Assessment will identitY specific needs and milestones for the company in four areas: (I) Management, (2) Financing, (3) Marketing, and (4) Technology Based upon the Assessment, a Strategic Action Plan is developed which summarizes the necessary actions and milestones for the company on a quarterly basis. In essence, the action plans mirrors the company's business plan, with practical action items for both the tenant co'mpany and the staff Progress is measured on a regular basis, with formal Quarterly Reviews held between the staff and the company every three months. Ideally, the Action Plan outlines a complete path leading to the company's successful "graduation" from the BEBC. The Financing Assistance Process · When a candidate for the Micro-Enterprise Loan Program is identified during the N.eeds Assessment, an additional financing assistance process begins. This consists of: (1) a loan preparation and packaging component, and (2) a financial management training program. · The loan preparation and packaging component consists of arranging preliminary meetings with lenders, ensuring the preparation of a complete and accurate loan application, and presenting the final package to the lender. · Currently with the packaging process, the tenant company participates in the Financial Management Technical Assistance Program. This training program is designed as a series offive modules: (I) a Tenant Skills Assessment, (2) Financial Statements and Projections Training, (3) a Debt Financing Overview, (4) Basic Accounting and Bookkeeping Training, and (5) Cash-Flow Management Counseling. · A determination is made during the Skills Assessment Module as to which of the remaining four Modules are necessary. In all cases, the Cash-Flow Management Module is utilized. · The Cash-Flow Management Module is a vital component because it incorporates both: (I) pre-loan training sessions based upon the widely-used Profitlink package, and (2) on- going monthly Financial Reviews that involve the tenant company, the BEBC staff, and a staff-approved accountant. ,;2i'~ 1/0 ~ I ~EBC Debt Financing Assistance Pro' ~s r ;~, ';-,~ Loan Process Overview W.t.tbltk!1<1 ~ . Needs Assessment StafTreviewscompany'sltBtWIandnecds Staff and tenant develop aclion plan W"~dmlJ12 ~ . Loan Packaging and Training Ternm! begins financial management training Staff et1$ures competency with financial statementll Staff IIIId tenant e.xplore all financing options Lendcrl)) 1$ chosen, and IOllllpackagc is prepared -, ~ . On-going Financial Mgmt. Assist. "" ...... Monthly financial management 1ISs!!lt8llce WIth staff Interface Wltlt outside consultanl (8CO;)unting, etc.) ~"'''''''.' . . .. ,- ~ . , . , "~-......., ~ "~ 1-';~.,_!, P.",'" Loan Process - Month I lIIyWeeklFour CompJ_1Diria.I Need! MMIIrQC:Qt IfFioaodDgb Neoesurr.BepPmmcill MaDa~TI1Iiniai:(Pro6tIiDt.c.hfiow.dc.) Week 0"" TeD&DtA(>ceptocl ~ 8t11fT~NeodsAases.wml ~=~ :-j"llv ":' -..:d L ~,.."'.... . , . . .' , . , -";iiJ"~"'" ~.' .. ~ ....~.,!I.",>+ Loan Process - Month 3 Weeks 8 thru 10 Between Weeks 10 thru 12 ~Fiullo&IlPJdagc SutmitLomhcbp IOO1dFormalMeetingWIlb.~.) hi.titIo hIt+Lom Am.tmce P'Io&rm1 , ~ ~ I~, -~~.. ",., 0... .~ '" II ~" <.., Needs Assessment NeoIs A~ent Management Financing -.. Strategic Action Plan Marketing Technology ~ G ---. ..~ -ij;;,"'-- ~~~ -=-'- "''''''---- ~."'...... . . - . ," .. "r ~oi._:":/i;Hi~i: ~~I~. Loan Process -Month 2 By Week 8 Weeks 4 thru 6 Prcpam 12 to 24 MoaIh c.htIow Staremcm And 0Iha- F"mmclaI St:Itement8 ExpIoreA1IF~in&OptiCHaIl'__ ~t-.,IIombnax:.ACOON.IIBBC.._.._ ~ ~ financial Management Tainiog Ddcrmiae Best Lea4iDa: Option Prdimim:y Meetiap willi Lenders ~- o=o-:.-~ COSllfl...PfD~~~'" ~, :~ ,'&AI;"_~ ..~~~. Post-Loan Financial Management Months 4 thru End ofTerm ! I MonlhlyFitllDC\aI ~Rm-Wltb.BEDCManaaer A.cdBu.ineuDcve1oplnClltSpooIalist EmurtRqubrMccdnEs W"1tb.~ C-ompcy CosItIaum on PaIh to OraduIti.on Profit~bllty .~~ 0_ m_ II'" . w_ JY'~.y/ /1 L I 3 ... ;$ !o< :.: "' => - '" :.: ):;; - t~u t::-::; ~ . . . &n:!- ... <t u ~ ~ f1J g,~~ ~ g .~ ~ . . . s.n:!- '2 !to; ~.~ ~ g,~!- G ~ ~ ~ ~ .... '" - '" = o ~ ~~ '" = .5 0 ~ '"8 ~< - '" .s":::\ = 0; "'1;; e .... sri} .... ";: = ~ .... '" ." .... o ~ ;~i, t . . . . . &~f- '::t- ~.~ eo . . . ""~ 0' ~!to; t:!.~ ~ . . . 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'" 8 .~ ep:::zuww '"' LOAN REQUEST SUMMARY &mp 1(; EXHiBIT 0 Borrower; -< -.. lender: Bankers Small BusIness CDC of San Diego County Ine. 5353 MiSSIon Cenler Road, SUfle 218 San Diego, CA 92108 . .1:" ..... " AMOUNT REQUESTED: PREPAID FINANCE CHARGES: Credfl Report: Points: Tech. Asst. Fees: . MULTIPLE ADVANCE LOAN (FIXed Rate) Finane<>d $43,000.00 In Cash 25.00 1,290.00 1,500.00 SECURITY ImEREST CHARGES: Tille Reg/slrallon: UCC Fees: 20.00 500 NOTE AMOUNT: $45,840.00 $0.00 PAYMENT CALCULATION: IntereS! Method: 3651365 Revolving (YIN): No Disbursemenl Date: 1G-16-1995 ArS!lnt Payment Date: 12-41-1995 Due Dale: 11-41-1998 Inl Paymenl Period: Monthly IntereS! Rate: 12.250 Credit Insurance: None In 35 regular payment of $1,0:11.08 each and one Irregular last payment estimated at ~ ~. Borrower's first payment Is due 30 days aIIer loan proceeds ere disbursed, and atl subsequent paymenls ere due on the same day of each month aIIer IhaL Borrower's final payment due Will be for all principal end all 8CCI1Ied Interest not yet paid. Paymenls inclUde prtnclpal end Interest. APR FINANCE CHARGE AMOUNT FINANCED TOTAL OF PAYMENTS 18.561% $11,~68.84 e $43,025.00 $54,393.84 e COLlATERAL: TIlled Collateral. PoC!r~~,o..y Coflateral. UCC - FInancIng Slatement Collateral. LOAN FILE NAME: COCOOOS3 NOTICE: This loan Request SUmmery Is for Informational pu~ only and does not obllgale lender In any way to make this loan or any other loan 10 Borrower. TIle fees end c:I1arges listed aIIove ere estimates onty: and, If . loan Is made, different or additional fees end c:I1arges may be Imposed. e means estimate ;eRPRO. Reg. u.:s. PaL & T.M. Off.. V... a.16C1(e)IllS CFIA'oServlcea, tnc. ANrlghtarcserve4lCA-A10 COCOOOs3.lN CS.OYLJ -'0 A ~ -21/:-";/7 ~:53, / '.-'f PROMISSORY NOTE References In the ~haded area ata for Lender's usa onfv and do notlmillhe a Borrower: Lender: Bankers Small BusIness CDC of San DIego County Inc. 53s3 Mission Center Road, SuIte 2111 .. San DIego, CA 82108 ._0. -. _. >._...~.~ !Y.::s-. Principal Amount: $45,840.00 Interest Rate: 12.250% Date of Note: October 16, 1995 PROMISE TO PAY. . M1d .... _.. . . ..... ("Bo<rowet"') promise to pay to Banketa Small BusIness CDC at San DIego County Ioc. ("Lender"). 01' onIer, In lawful money at the UnIted Slates of Ame<Ic:a, IIIe principal emount of Forty Five Thousand EIght Hundred Forty & 00/100 Dollars ($45,uo.oo1 01' so much as may be outstanding, together with Interest .. the rate at 12.250% per .......m on IIIe unpaid outsIandlng prtncIpaI balance 01 each IIdVance. Inlerest shall be calculated from IIIe dale 01 each IIdvence until _ment at each IIdvance. PA YMEHT. Borr_er will pay this loan In IICCOI'dance with the following payment schedule: In 35 regular payment 01 $1,0:11.08 each IUICI one Irregular last paymenl es/Imalecl .. $>> JlAU6. Borr_er'alltsl payment Is due 30 clays aller loan proceeds are disbursed, IUICI all subsequent paymenls are due on the same clay of each month alter IhaL ~er'sllnol ~enl due wlU be lor oil prlnclpallUICI all acc:ruecIlnlerest nol yel paid. P.,ymenls Include principal _net Interest. . Inlarest on this Note is compulad on a 3651365 simple Inlerest basis; that is, by applying the ralio 01 the annuallnlarest rate <MIl' the nymber 01 days In a ~, multiplied by the ouIstanding principal balance, mlAfiplied by !he actual number 01 days the principal balance Isoulslandlng. Borrower wi! pay Lender at Lendal's address shown above or al such other pleci; as Lender may deslgnale In writing. Unless oIhe<wIse agreed or l8QuIrad by applicable taw, payments will be applied first 10 any unpaid cc~.cIion costs and lale c:harges, then 10 unpaid InIerast. and any remaining amount 10 principal. . PREPA YMEHT; MINIMUM INTEREST CHARGE. Borrower agrees thaI all loan lees and olher prepaid finance charges are earned fully as 01 tha dale of the loan and wiI not be subject 10 refund upon early paymenl Cwhelher voluntary or as a result 01 dafault), excepl as oIherwise 18Q~ by law. In any ellen~ 8I/IIn upon full prepayment 0I1his Note, BOITower undatsIands thai Lender Is wiled 10 a minimum Interest charge 01 $100.00. Other than BOITower's obligation 10 pay any minimum Interest charge, BOITower may pay without penally aI or a portion 01 the amount owed _ than II Is due. Early paymenls will ~ unless agreed 10 by Lender In writing, _ BOITower 01 BOITowe<'s obligation 10 continue 10 malee pa~ under the payment schedule. Rather, they wiD reduce the principal balance due and may resullln BOITOwer making fewer payments. LATE CHARGE. "a payment Is 10 clays 01' more lale, Borrower wi! be charged 5.000% 01 the unpaid portion olllle regutarty scheduled payment or $10.00, whichever Is grealer. OEFAU..T. 8OITower will be In default II any 01 the loIIowing happens: Cal Borrower IaIs 10 make any peyment when due. (b) 8OITower bteaks any promise BOITower has made to Lender, or 8OITower tails 10 perfcrm prompUy al !he time and sIric:tIy In the manner proIIided In Ihis NoIe or any agreement related 10 Ihis Note. or In any other agreement or loan Borrower has with Lender. (cl 8OITower delalAts under any Joen. -.sloe 01 credit. securfly agraeme~ purchase or sales agreement. or any other agreement, In favor 01 any other c:rediIor or person thai may materially aIIect any 01 8OITower's property or 8OITower's ability 10 repay Ihis Note or perform IIonower's ob&gaIions Under Ihis Note or any 01 the Related Documents. (d) Any representation or statement made or furnished 10 Lender by Borrower or on 8OITower's behaIIls false or ml$leadlng In any material NSpecI. Ce) BOITower dies or bacomes InsoNent, a r~ Is appointed lor any part 01 8OITower's proper1y; 8OITower. makes an assignment lor the benefiI 01 CRIdiIors, or any poooeedl''II1s c:ommenc:ed either by 8OITower or IIgOInsl8OITower under any bankruptcy or ~ laws. (I) Any aediIor Iries to lake any 0I8OITower's property on or In which Lender has a Ian or security InIerast. ThIs Inducles a g8rn1shment 01 any 01 Bo..~ _Ills with Lender. (gl Any 01 the _Is described In this delault sec:tion 00I:In with respecllo any guarantor 01 this Nola. (h) Lender In good IaIIh deems Itself Insecure. . " any deIauIt, other than a delaulln payment, Is curable and . 8OITower has noI been gIwn a noIIce 01 a bt8ac:h of the same pnMsIon 01 this Note wtthln the preceCling ......... (12) monIhs, II may be cured Cand no........ 01 delaul will haw occ:urrad). 8OITower, after NC8ivIng wrIteR notice tom Lender demanding cure 01 such delault: (a) cures the delaul wtIhIn IIteen (15) days; or (b). the cure noquns mont than Iifteen (15) clays, ImmadIatelyln/tiates steps which Lender deems In Lendeo'sscle discretion to be suffic:Ient to an the delaul and therealferconlinues lUICIocmp'.I.. aI I88SonIIbIe and 1'0< ""'Y steps sulfic:ient 10 produce compliance as soon as reasonably practical. LENDER'S RIGifTS. Upon delault. Lender may declare the entire unpaid princ:IpaJ balance on this Note IUICI aI accrued unpaid Interest immediately due. wIIhouI noIic:e, Slid then 8OITower will pay that IlmounL Upon IIonower's faJI.... 10 pay aI amounIs declared due pursuant 10 this section, Inc:Iucing faI.... 10 pay upon inal maturity, Lender, aI ti option, may also, . pennitted under appIIc:abIe law, do ana or both 01 the foIowfng: (al inc<8asa the Interest ..te on this Note s.ooo ~ge points, IUICI (b) add any unpaid accrued Inlerest to principal and such sum will _1nIerest ............. unti paid althe rate proIIided In this Hole (Inc:Iucing any ...1 ,. '$ rate). Lender may '*- or pay someone else 10 help coIecIthIs Hole . 8OITower does noI pay. 8OITower also will pay Lender that amount. ThIs Includes, 1Ibjec:t 10 any ImIIs under appIIc:abte law, I..endet's aIIomeys' lees and I..endet's legal e>penses Whether or noIthere Is a IaW$Ull, inducing aIfomeys' lees IUICI legal e>penses lor banlcrupfcy pclC08edlngs Concluding aIIarts 10 modify or vacate any automa6c stay or injunction). SW".....IUICI any anliclpated posI-judgment COllection services. 8OITower also... pay any court costs, In addition to aI other sums prOIIIded b'/ law. ThIs Nole .... been deUvered 10 Lender and accepted by Lender In IIIe Slate 01 California. If theni Is . lawsuit, ~'!" agrees upon Lender's request to submit to IIIe Jurlsdlcllon of !he courts at San OIego County, !he Slate at Call1ornla. (Initial Here .y,t- ) Lender and Borrower hereby waiYa the right to any Jury .... In .any action, pooceeding, or counterctaJm brought by either Lender or 8OITower agalnslthe other. SWjec:t 10 the pcovIsIons on arbIttation. this Note ahal be gowmed by and . consIrued In accordance with the laws 01 the Slale 01 Calfomla. . DISHONORED ITEM FEE. 8OITower will pay a fee to Lender 01 $15.00 . 8OITower makes a paymeni on 8onow<<'s loan and the chec:k or. Pl88u1hor12ed charge with which Booower pays Is laler dishonored. . UNE OF CREDIT. This Nole evIdenoes a SltaJght Ine 01 c:redIt.Onoe the toIaI amount 01 principal has been advanced, Boriower Is not entiUed 10 Urthar loan advances. Advanoes under this Note, as we! as direcIions.~ payment tom 8OITower's accounts, may tie requested orally or .. writing by 3orrower or by an aulhorl2ed person. Lender maY, but Mad ~ l8QuIra Ilia! all oral requests be confirmed In writing. 8OITower agn>es to be liable lor II sums either: (a) advanced In a<:cordance with \Ije InsIruc:tions 01 an aulhodzed person or (bl c:rediIed 10 arry 01 Bonower's&a:ounls with Lender. rha UnpaId princ:IpaI balance owing on this Note al any time may be 8IIIdenced by endorsemenis on this Note or by Lender'slntemaJ records, Including JaIIy CX>mpuIer ptIn\-outs. Lender wiD haw no obligation to advance funds under this Note It (al BOITower or any guatanlor Is In delaul under the enns of this Note or anY aoreemen' that BotTower or anv nt,._ftf_ ..- MMh . _A- ,...,.,..A'r.'-' e--;~7-_.) -; V 47 3'7 r2~-7 / 10-16-1995 Loan No ..., - " PROMISSORY NOTE , ~, . ,: (Continued) .' Pagl '" -:;. Or revcke such guaranlol's guarantee 0/ !his Note ar airy other loan 'wiI/t l.endeI: 'Cd) Borrower has appIed funds pnMcIed panuan/ III IhIs Note ,,':/ c.:" "' PLWpOSeS' other than !hose authcrlz8d by Lender, or (e) lender In good IaIIh deems IIseII rns-.. _1hIs Note or arrY _ _,...d belw< ":."''''l.enderand8om>wer.'' .'. '." : ,. ......,.., '.. . c' ARBITRATION. Lender and Borrower aglee !hat all disputes, claims and controversies belween "'em, """Iher individual, joint, or cIaoa .. .' ~ nalure, arising !rom this Nole or olhetwlse.lncludlng "Ithout IImIIaIlon conlnlcl and tort dlspules, IIIIaII be _Italed pursuanllo !he Rulea !he AmerIcan Arbllrallon Assoc:IaIJon, upon req~ 01 either party. No act III IaIce or dispose 0/ any COlaw" securing !his Nola sh8I consIiM ' wafwt 0/ !his llbilrallon agreenienl or be prohibited by IhIs IrbIIraIlon agreemenL ThIs Includes,. wiIhouIlmitallon, obtaining lnJuncIIYe ..... 0 temporary I8SIraIning ordet; invoicing a power 0/ sale under any deed 0/ IrusI or mortgage: obIaIn/ng a Writ oIaltachmenl or ImpooJtiOn 0/ a rec:eIYet; ~ any rights relating III I*$Of1aI property,lncIucIng IaJdng or disposq!g 01 such property with or wiIhouI judicial prgcess _0110 MIele 9 !he'UnIform CommerdaJ Code. Ant disputes, c:IeIms, or __ concerning !he lawlulness or reasonableness 01 any act. or """"""" 01 any rig concemIng any ccIIalaral sect.ring !lis Nole, including any claim 10 rescind, reform, or ~ modfy a"1 aQr8llm8nl relating III the cellale . securing !lis Note. sh8I also be arbIIraled; ptOIIIded '- IhalIIO arbIIralor shaJ haIIIIthe right or the power III enjoin or I8SIrain any act 01 a party. lender and Bonoww agree thai In Ihe even! 01 an action lot jucIIcIaIlcrecIcsure P\If$IIIInI III CaIIcmIa Code 01 0viI Prooed... SectIon T.26, any similar pIOIIIsIon In any other slate, Ihe c:ornmencer-.. 01 such an action wiI no! consIiIuIe a wafwt 0I1he r!ghIlo arbIIrale and the cotOt sheI rei III arbIIraJIon as much 01 such acIIon,.1ncIucIng counIen:IaIms, as lawluly may be reIemId III arbIIration. Judgment upon a"1_ """""eel by., arbIIralor may be anIered In a"1 coUrt having Jto1sdIctIon. NoIhIng In IhIs Note sheI preclude a"1 party from see/dng equitable ..... from a cotOt compe/eId jurfscIction. The slalule 0/ imitations, MIoppeI, """-. laches, and sfmiIai' doctrines which wWd oIhetwIse be appIcabIe In an adk b<oughI by a party sheI be applicable In any llbilration ptOCee(Ing. and the cemmell"........ 01 an arbIIration Plocee.:Ing sheI be deemed I """""""'. oI.an action lot Ihese _ The Federo/ ArbIIration Act sheI apply 10 Ihe c:onsIrucIIon, InIlNJ>relation. and ".0"""''' 01 It arbIIration pnMsIon. .. .' GENERAL PROVISIONS. lender may delay or forgo ..tIoo~'II any ollis rights or f8III8dIeS UIider IhIs Nola wIIhout 1osIng!hem. Bc........ and III - person who signs, guaran'- or 8ncIcrses !lis Note, 10 Ihe extenI aIowed by Ia... YIIIIIie any applicable sIaIuIe 01 imitations, ~, clemancllot peyment. prolesl and notice 01 dishonor. Upon any change In Ihe Ienns 0I1hIs Note. and unless oIhenoIse 8>CpI8SSIy sIaIed In wrftfng. . party' who signs !lis Note, ..""ther, as maker, guarantor, eccommodation maker or endorser. shaI be released !rom 1abiIIy. AI such perties agree "" Lender may ...- or exIencI (repea/edIy and lot a"1 length 01 time) !his loan, or release any party or guarantor or coIaleraJ; or 1rnpU, tal 10 I8IIIz upon or periecllencIer's secunly InI8r8SlIn Ihe coIalelaJ; ancIlake any other acIIon deemed necessary by lender wiIhouIlhe coiIsenI 01 or notice I anyone. AI such perties agree IhaI Lender may modify !his loan wiIhouIlhe consent 01 or notice 10 AJ1)'CtMI other than Ihe party with ..hom II> modification Is obligaJfons under !lis Note 118 jcInI and S8IIe<aI. PRIOR TO SI S NOTE, EACIf BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE. EACIf BORROWEI AGR~ MS OF THE NOTE AND ACKNOWlEDGES RECEIPT OF A COMPlETED COPY OF THE NOTE. . X-", ,...... _. .. r..e- .~ FIQd Rail. Line 0' cr.. LASER PAD. R-o, u.s. PaL. T.M. Off.. Vw. "" 18d (t:) 1 PIS CFtf'rOSlrYlc".1nc. Alrlghtsr....-veclICA-D20 COC00053.LN C5.OVLJ '. " v' ~ -" .--:..... '"'. ';.. -':;.-.~... , " :~, '; -~ ~..~-<';::.,.. ":.. . . '. :-- ~-~;V:;;~;/";':::?~~":;~::<;~'~;'"'~~;:~~~~::l~;~'~~'~;;~;;~~1~i~.~,~~.;r;;'~;ij:~'l;i~~i'Ji',.'~',3;:~'':IT,C;:~.. fi"'~.~Ii''''~';)W'''i,I:,:f,,'!!.<1fjJ;l:Hil~\~~~mii~'~f;/,,'.U~jt''J'i i'.N'~m'; ')r:;;\~'.'C!.X'i1)~'~~",O',:, .2,., ,1>1.:::.: tf?~~~f~)~'~~ ,.~Jr~:1'1~1~:O~~(';~?: 1~3!.~~~11"~:~~1~$: ~~_ ," :"" ",'.;'~H,~~,,_ - ~~~:;!. .... -.,'_ . ...\ c-.'-,. ,.:"~J,-C~_~:._~.____.. _ _ hg-01:~IZ80HA i'iCd.E __ , ;A-'::f~t//L/~ ", " 0<' 'J\.., p'............,...I'iv ,","'ri': ,.;:...~;;.-\,"'-:'....',..I,. .'~: :'-~'.'-"".'fl~~\,.>Oi.r;;q::~;~:~~(')!.;:\"~1;;'?.'.:'-:~.-,~:'~':~...., ,,,, " ..",' ',j ,,,,. ." ,', . ."" ':: ".""" ,."., "'I~'':' c, '~P''''.U'''' !'''''<'''''~"'"'!:'i'''i C,': .G<,.;.~. w""~.~ OJ ao<,o..\\"'.A<>:r"""!":.,.~,, ,.., "',. ,....1 'C',,,,",& ,^, 0'."" ":"","-'~I 'I: ',,~ c,,' ~. "II" ,..;;;)w....",,""'; ,,,,,,,,"""',,-,...,'1)(1? '" ... n,.; t>,~.<it c.!I' "\~,"~""",.,,,,);y :;.~,.tl<'f" C<."". f,,~~",;;~j"8USINESS lOAN;'AGREEMENP>rool)t1l, " '.',',' ,c,O""",\,,,' .", :,'~"'f""'" ,. .... . . -''''''~o" ''''''',,'00' <7"""' ". '1>"Z!"'i~V,!~i":'l' . ~. .~ ""WOO:...;oci.. H~..,.....cZ II' ";.. :""~." 5 " ~'. ~;~ ~~, /."" . .,'.' '~'-., '. bRi -of ihis document to .. . Lender: . Bankers s...;... Business COC ()f San Dte;o Coci.iiy' JnC.: 'r" ,,' ',' Ce ,.r, '5353 MIssIon Cenler Road, SttIIe 218 C,,, ". ,,' ", :'." '" ". ',.'C'.'" San DIego, CA t2108 ~ '" Sorrower:~:" ~~:-.:,~ 1::;\..~~:- ,:::,,';. ~~..... ,l" ~;fjlu:. '~ ~;. .~{:~ I;J'_" ,.....' ~ ...~, ,I,:", ~, ,', ~- . ..,. ,,,;. .,:~. >~~ . , ') ~ ,~; c\.: ":!-' ~f '-{''OJ.' .' . .-,~_. ~ ..~--......~ ..,-~.,. "-, -.. ~ " . 'r.- ;:.~ -:~ '. __ ' . '. ,'-, .,t, .J.:',j;'~ ~ _ ,:,.;, 1'.IO..u.,' .,... THIS BUSINESS LOAN AGREEMENTbelween- , .- .(end '>,~. .. "~endBanketsSmatlBuslnOsS'Cnc()fSanDlego County Inc. ("'Lende<j Is made - executed 011 the foIIowIng.1erm$ _ -/lions. IIoIrGI\U lias receiVed pfIo< com.Relclalloens ftom Lender 0( lias Ilflll/leclIo Lender 10< a COIIImeR:Iet loan 0( Ioens IIIId oilier IInancIat ~ IncIuct1ng those ""'Ich may be cIescrtbed on 8lI'f exhibit 0( SChedule IIIt8ched 10 this Aareement. All such loans end IInancIat --Ions, !ogelller wtth all fUtute Ioens _ IInancIaI -_lions from Lender 10 BoITower, ...e referred 10 In this AGreement lnctIvtctually as the """'. _ COIlecUvety as the "1.oans. . BoITower understands - agrees that: (al In granUng, '_ng, 0( extending 8lI'f Loan, Lender Is relying upon Bonower's 'eptesetllatlons, warranties, and agreements, as set forth In this Ag<eemenl; (bl the aranUng, renewing, 0( extenc:llngot any ....... by Lender at all Urnes stIaIt be subJect 10 Lender-a COle Judgment end dlscrellon; end (cl all SUCh Loans _ be _ _ remain SUbJect 10 the IoIIowtng tenns and -1IIons or this AgrcenlenL TERM. This ~nt shall be etfectiw as 0/ October 16, 11195, and shall continue .........,. unti a-Indebtedness 01 Borrower 10 Lender has been performed In tuI and the paI1ies terminate ihis AQleerne.d In writing, DEFINITIONS. The following words shaIIltaw the toIowing "".","1gS when used In this Aoreernent. Terms not oIhenNfse defined In this ~ shall haw the IManlngs allribuled 10 such terms In the Uniform ConvnerciaI Code. N _"''''''" 10 dollar amounts shall "-" amounts In IawfIA money 0/ the Un/led Stales of America.. AgreemenL The word .Aoreemenr means this BusIness loan AQteernerd, as this Business loan Agreement may be amended or modified from time 10 time. together with al exhibits and schedufes allached to this Business loan AQrMrnent from lime 10 lime. ' Borrower. The word "Borrower IMans TIII10Chy Ascher and Karen Ascher. The ~ "BOffOWe(' also Inctudes, as 8I'P"coble, .. subsIctiatIes and affiliates of Borrower as provided below In the patagraph titled "SubsIdIaries and Alfiliales,. . , CERClA. The word "CERQA"lMans the ~ Envftonmenfal Response, Cornpens.,tion. and UobIiIy Act of 1980, as a__ CoIlaletal. The ~ "CoIIaterar IMans and inclUdes without imitation .. prcperty and assets granled as coIIalenll S8CIMfty for a Loan, Whether real or personal prcperty. Whether granted direcIty or lndir8cay, Whether granted now or In the fullM... and Whether granted In Ihe form ()f a S8CIMfty Interest, mortgage, deed of IrusI, assignment, pledge, ChatIeI rnotIgage, chattellrusl, factofs lien, equipment IrusI, conditional sale, trust ~ len. chatge, len or IiUe retention conIIacI, lease or conslg..me.d Intended as a S8CIMfty devIoe. or any other sectriy or lien """""" Wltars-, Whether created by law, conIracI, or othi<wIse. ERISA. The ~ "ERISA. means the ~ Retinlrnent Income Security Act of 1974, as a__ Event of Default. The words "EY8nI 01 Default" "-" and Include any of the EYSnts 0/ Deta~ set fOlth below In the sec:IIon titled "EVENTS OF DEFAULT," Gtantor. The word "Granlo<" means and includeS each and 81 0/ the !*SOns or entities granting a Security ........... In any Coaar..rat for the Indebledness.lncluding without Imitation 81110<.<.__ granting such a SecUriIy InIeresL ' G........lor. The ~ "Guatantor'" meanS and Inctudes without Imitation. each and .. 0/ the auarantors, SUI8ties, and accornrnodation par1ies In conneclion wilh any Indebtedness. . Indebtedlle$S. The word 'ndebtedness. means and inclUdes without imitation 81 loans, Iogether with 81 other obligations, debts and IabIities of Borrower to Lender, or any one or """" 0/ them, as weI as.. claims by Lerider against Borrower, or any one or """" 0/ them; whether now or hereafter e>dsIing. voIunlaly or InvoIuntaJy, due or no! due, absolute or oontIngent, liquidated or unliquidated; Whether Borrower may be IabIe individually or jointly with others; Whether Bo..v.... may be obligated as a aunntor. surely, or oIherwise; Whether __, ~ SUCh Indebtedness may be or henIafter may beco!ne ban1Id by any sIaIute 0I1mIta1ions; and whether SUCh Indebtedness may be or hereafter may become oIhetwIse unenton:eabIe.. ' Lender. The ~ 'l8nder" - Bankers SrnaI Business COC 0/ San DIego County Inc., Is ""~ ors and assigns. , Loan. The ~ 'loan" or 'loans" means and Includes any and .. c:ornrnen::faI loans and inancfaI &CCOmnIodaIions from Lender 10 110......... Whether now or henIafter existing, and howeY8r e.fdenced, lncIucIng wtIhout imitation those loans and inancfaI Accom"oOdoIlIons described ""n or described on any IIXhIbII or sc:heckN atIadIed 10 ihis ~ torn Ime 10 Irne. ' Hole. The ~ 'Note. means BomIww's PfOI11/ssofy note or notes, . any, oMdencIng Bo........ts lo8n obIigallons In fa_ 01 Lender, as weI as any substitute, """'~'m..d or I8financ:Ing note or notes lheretor. Related Documents. The words 'Related Documents" mean and Include wtIhout IrnIIaDon .. PRJrnIssory notes, -CI8dit &QIeernents, loan agreements, guaranties, sectriy alii-is, mortgages, deeds .0I1rusI, and .. other InsIrurnents, a_Is and documents. whaIher now or hereafter 8JdsIing. 8J8CUIed In COMecIion with the Indebtedness. " Security AareemenL The words "SacurIIy Aoreernenr "-" and Include wIthOut Irnllation anyaareements; I"CIIIises, ...;.."".nts, aRanaernents. Understandings or other a_Is; whether created by law, oontnIct, or oIherwtse, 8IIIdencIng. oo-ning. Iel>f8Senting. or creating a Security fnterest . - .' - . ~....- ,- ;.t -~; _ .... -. . _ _:- . , Securtty fnterest. The words "SacurIIy Inlelesr "-" and IricIude wtIhout IrnIIation any type of coIIaIenII sectriy: Wheih8r In the form ()f alien, , chatge, mortgage, deed ()f Wst, assignment, pledge, chattel morIgage, challel Wst, facto(s lien, equlpmentlrusl, conditional sale, tusll1ICe1pt, lien or DUe "'Iention conIracI, lease or consignment Intended as a aectMfIy cfeoAce. 0< any other sectriy or lien InIeresI WhaIsoeY8r, whetherUcreated by law, conIracI, or oI!IeIWIse. ~ ." ..' SARA. The Word "SARA. - the Superfund Amef.d;".,.,.s' and'Reauthortration Act 0/ 1986 as now 0< hereaft,;.. a~ - .." -" , '- '" ~. .., ~' " - . El'RESEHTA TlOHS AND WARRANTIES. Borrower I'eI><1ISents 8nct wanBnts to Lender as of the dale of this AQreemenr and as 0/ the dale 0/ each sbursement of loan po cc.eds: . LJ --a-r J / / / / organization. Borrower Is a numbe< 0/ individuals borrowing for comine.t:ial P"'Poses. ~ -->- V" c2 '7 --7 V 10-16-1995 Loan No BUSINESS I,.OAN AGREEMENT (ConUnued) Page AuIhOflzaIlon. The 8X8CUIIon, delivery, and pedOI.."""'" 01 this ~ and .. Relaled Documents by 1Icfrower,Io !he _10 be IIX8CUI& deIIver8cI or perIco..o..J by 8QfTower, have been d\JIy authorized by 8I118C8SSa1y action by Borrowet; do not reqPre,1I>8 consent or apptO\l8/, 81'1'/ other person, regulatory authcri1y or go\I8mIn8ntaI body; and do notconllcl will>, result In a vk>Iation or. or consIIIuIe a deIa~ undw <a) 81 provision oIarTf agreement or other Instrument binding upon _ or (b) 81'1'/ law, governmental regulation. court dacrae. or order appIcab< 10 Bon-oww. FInancIaIInIonnaIlon. Each financial slalemenl 0I1Icfrower suppled 10 Landat truly and comPlalely discIosad 8c0T0war's IInancIaJ c:oncIIion . 01 !he dal8 01 !he slal8ment, and Ihara has been no malarial aclveBe changa In Borrower's lnanclal condilfon subsaquenllo !he data 0111>8 IIICI! ~ InanciaI slalamanl suppIIad 10 Lendar. IIcfrower has no malarial conlfnoanl obIgalfons exceplas disdosad In S!JC/IIInancIaJ slalements. legal eitect. ThIs Agreement consIflutas, and 81'1'/ Instrument or ~ ""I'*ed _ 10 be given by IIcfrower when ""'-ad w; consIiIuIa, legal, vaId and bIncIng oblgallons 01 Bon-oww enIorceeble -">sI Borrower In accordance with IhoIr respedIva Ianns. . Propef1Ies. Except as conlamplaled by this Agraament or as pI8'JiousIy tIIscIosad In Borrower's financial slalamants or In WriIIng 10 Landat and ., accepled by Landat, and excepIlor property tax Ians lor Iaxas not pl8S8nlly dua and payable, Borrower owns and has good IiIIe 10 aI 0 Borrower's propao1ies free and dMr 0181 SecwiIy Inlelasls, and has notllX8CUled 81'1'/ SIIC\.IiIy documents or IInancIng sIatemeoiIs relating 10 suet properties. NI 0I8orrower's properties _tilled In ao..o..<If's legal name, and Bon-ower has notl!S8d. or IIIect a lnanclng slalement Under, 8IIj other name tor at least Ihe last five (5) )'GalS. Hazardous Substances. The !arms "hazardous waste; "ha2ardous substance," "disposal; "IaIaase.. and """'lanecInoIaasa,. as US8d In .... AgrMmeoIl, shaI ha.... Ihe same meanings as sat fofIh In !he "CERO..A," "SARA,.1I>8 Ha2ardous Materials TranspOftalfon Act, 49 U.s.c. SecIIor 1801, et saq.;!he Rasocm:e Conservation and RacoYary Act, 49 U.s.c. Section 6001, et saq., Chaplets 6.511vough 7.7 01 DIvisIon 20 01 tho CaIIomIa Health and Salaty Coda, Section 2S1co. et saq., or oIher appIOc:able stale or Fadarallaws, rules, or regulalfons adopted PlnUlnlIo 811) 0111>8 foregoing. ~ as discIosad 10 and acItnowIadgad by Landat In writing, IIcfrower represanIs and wanants lhal: (a) OwIng !he parfod 0/ Borrower's 0WI18IShIp 0I1he propattlas, Ihera. has been no usa, g&neI8lfon, menuI8cIura, sIoraga, lraalmenl, ""'rosa/, I8Iaase or IlnaI8ned I8Iaase 01 81'1'/ hazardous waste or substance by 81'1'/ parson on, Under, or about 81'1'/ 01 the properties. (b) Borrower has no k~ 01, Of IBaSOfI 10 -.... that there has been (1) 81'1'/ usa, I1811Rlfon,manufactura, sIoraga, lraalmenl, disposal, noIaasa, or Ihraalanecl raIaa:sa 01 81'1'/ hazardous wasla or substance byarTf prior owners or occupanls oIarTf 0I1he prop&l1ias. or (i) 81'1'/ actual or Ihraalaneclllgallon or c:IaJms 0181'1'/ kind by 81'1'/ - .elating to such mailers. (c) Neither Borrower nor 81'1'/ IenanI. contractor, aganl or other authorized user 01 81'1'/ 01 the propertiesshal usa, ganarala, manulactura, store. Iraa~ dispose 01, or release arTf ha2ardous waste or substance on, under, or about any 01 the propartfes; and 81'1'/ such actMIy shaI be conducIed In compianca with aI applcabla -... slate. and local laws, regulations, and ordinances, Including without Imitation those laws, regulallons and ordinances d8sc.ib..d above. _ authorizes Lander and lis aganls 10 antar upon the properties 10 make such /nspacIIons and lasts as Lander may daam approprlale to delarmlna compIianca 01 the propao1ies wilh this S8CIIon 01 the AgreamenL ArrJ Inspections or lasts made by Lander shaI be at Borrower's 8>p8nS8 and lor Lender's purposes 0tItf and shaI not be construed 10 create 81'1'/ responsibility or lability on the part oILandat 10 Borrower or 10 arTf oIher person. The representations and warranties contained herein Bra based on Borrower's due diIiganca In Inveslgating the properties lor hazardous waste. Borrower hereby (a) raIaasas and waiws 81'1'/ future claims against Lander lor Indemnity or contribution In the awnt BorrOWfl becomes labia lor claanup or other costs Under arTf such laws, and (b) &graas 10 indemnify and hokt harmJass Lander against 81'1'/ and 81 claims,/ossas, labilities, damages, panaJIias, and _ which Landat may diracIIy or IncIIracIIy susIaJn or sufi... resulting from a breach 01 this saction 01 the AQI_d or as a consaquanca 01 81'1'/ use. gatWBtion, manufactura. storage, disposal, raIaa:sa or Ihraalenad release OCC\A'I'Ing prior 10 80rr0wer's ownership or Interest In the plop&I1ias. whether or notlhe same was or should ha.... been known 10 Borrower. The prOllis/ons 01 this S8CIIon 01 the Agraamant, inclUdIng the obligalfon 10 1ndamniIy, shall sLWVfve the paymoint 01 the Indabledness and the larmlnation or explralfon 01 this Agraament and shaI not be allacled by landar's acquisition 0181'1'/ Interest In arTf 01 the prop&l1ias. Whether by foreclos...a Of oIherwisa. UUgallon and Claims. No lilgation, claim, InwsIgation, admfnlslrallve prOC88dlng or similar 8CIIon (including those for unpaid Iaxas) -">sI Borrower Is pending or Ilvaalanad, and no other .....nl has occurrad which may malarially adversely alfact Borrower's ftnanclal condition or properties, other lhan lligation, claims, or other .....nls, U arTf,lhat ha.... baan crosclosac:t to and acknowlectged by Lander In writing. Taxes. To the best 01 Borrower's knowladga, altax ralLms and rapcrIs 01 Borrower that are or -.. required 10 be IiIecI, ha.... been IiIecI, and aI taxas, 8SS8SSrnanls and oIher IIO\I8InmantaI charges ha.... been paid In IuI, """"PI those pl8S8nlly baing or 10 be contasIed by IIcfrower In good lailh In the Ofdinary COI.IS8 01 buslnass and lor which adequata resarws ha.... been provided . . Uen PrIorIty. Unless othelwlsa PI8vIousty ,"""""ect 10 Lender In writing. Borrower has not anlarad Inlo or granled arTf Sacurity Agreements, or parmllled the filing or attachment 01 any .Seemly Inlarasls on or affecting 81'1'/ 01 !he Collateral cfiractIy or IndIracIly S8CUring rapa}'ll18nt 01 Borrower's loan and Nota. thai would be prior or that may in arTf way be superior 10 landar's SecwiIy Inleresls and rlghls In and 10 such Collateral Binding ElfecL ThIs Agreement, the Nola and aI Sacurity Agraamenls diracIIy Of Indiraclly S8CUring repayment 01 80rr0wer's Loan and Nola Bra binding upon IIcfrower as - as upon 80rr0wer's $' ~ : In, reprasanta!ives and assigns, and 8I81aga/1y anIorcaabJa In accordanca wiIh IhoIr raspactiw Iarms. Commercial Purposes. IIcfrower Inlancls 10 usa the loan ploc-!:o solely for busInass 0. commercial ralalact pwposas. Employee Benent Plans. Each employee benaIit pta,i as io which _ may ha.... arTf IiabIIiJy c:ompIIM.1n aI maiarial respacIs with aI applicable I8C11*arnants 01 law and regulations, and (1) no RaporIabIe E_ nor Prohibilect TranS8CIIon (as dafinacf In ERISA) has 0CCImId wiIh I8Sp8cI to 81'1'/ such plan, . (i) IIcfrower has not wilhdrawn !rom 81'1'/ such plan or Irolialed slaps 10 do so. and (ii) no slaps ha.... been taken 10 Iarmlnal8 any such plan. ., . . . .. '"0 ~ . . Investment Comparry Ad IIcfrower Is not an '1rIIIestment con'l."1Y" or a company"controlled" by an '1rrvastment cornp&ny". WiIhIn 11>8 rnaerWng ~ 01 the '1IY8sIment Company Act 011940, as 8m8ndacI. . , ,. ,r.I<-i; Public UUIIty Holding Company AcL Borrower Is nota "holding company", or a ~ company" oIa "holding company", or an "8111a18.0I a "holding cornp&ny" or oIa "subskliary company" 01 a "holding cornp&ny", within the ,meaning 01 the PubIc UlilityHoklng ComparTf Act 011935, 8Samandad. .....,.. ,.. .-., ..., ._.__...",,,,,~,,-~.,,-,,,~.."'n-o.-., d ";).., ,. t Regulations G. T and U. Borrower Is not Jlngagad prIncfpatiy, or as 0f18 .01 lis Important 1icIMIki$,' In the bUsIness.' otextendlng cradillorJhe ." ---"," purpose 01 pwchasIng. or wrYfrg margin stock {wiIhIn_~ meanIrig 01 R.egulaBons G, T 8fI.d, U 0{ ilia Board 01 GovemoisollhCt FadaraI.!!eseMt '" ."..}':~:~~m),', ':."';.",,:~;"T~ -:"H';~.':2rfc':I;'T\~:;,:;.; ~,;.}.. .'; U';!;~:~:'~1':~,f~Ii}'i;'.;X;L'L~i'.;ji..')iD~:;L::1 "A .. ..'~.(~~...Locallonol BorroWer's;~ ancI.:l;IjOcords.:'.The c:hf.eI P~.oIbusl.nOssol BorrOWiir.and thoi-olfica"or 'oIIiCiSWhara Borrower keeps Is ",U'''.'i records concamIng the CoIIaIaralIs Iocaled at 2051 GIas96W Avenue, Cardi" by the Sea. CA 92007. ,- '.-.-'~ -.--.--- _.---" '"',~ . "._, f!" . .--.- . Infonnotlon. NllnIOfmalion heratof".'a or. contamporaneousJy herewith hmisIied by. BOIIowarlo Lender lor the purposes 01 or In connection with this Agreement or arTf transaction conlan\platacr hereby Is, and .. Information heraan... fumIshad by or on baha" of Borrower to Lender wiI be, true and accurate in every material respect on the date as 01 which such information is dat~ or ~fied: and none of such information is or wiD be incomplete by omitting 10 slate any material lacl ne<:essaty to make such InlormaUon nor rrrisJaading:A--3"7 ;2 ~~ y? . o. . ' " ,-'+ :.._-.~; 'r';"';"o.; ,~~,.(:~",,,;';{;'<' ,.,.:i. ."..'(.......':It:.';...':,. .";;,:'.~'~~, .;~~. ~"~~:~~'.~';~" :'J~l:': ?::"~!"",~~~t:...: i(.~;;..')';~' , ;;5";.>~;k~{;...,..~ "":;,, f~'.T"'" '~""'B"U' ""N"E"'S' 'S" "L'<O"At<loN*A""G'" R'EltEM'- E"'N' r-:i, J"'tp;, 2,:..... <>;'O"~~"",\.'.;' I>'~;r..",;, I."". . .' .10-16-1 . UC?P'- roi..' . ~'" '/;'J,r..;u,q'J V'" SI . . . . Page ~ loan No ."" t" . ). . ",).. .c' ':"-oj (Continued),IJ..IEoUr '. om;, n~';": ,\(,;o"'..I"~ ,.',,;;n.J.~ ".~:(':;.~U ,<:.1 p.'>.;}. ....,..,.~). "'1 t~PI"^:"::'" "':"'" :', f*' c~"....~.-:;"I c;~ f.'(){)\.IC: ;.' ''''','.' .",. -.. \",,; 1"" I .~ :.A,,......:-..J{'....Jt :ftry!1 rA-' C<;~th:Cf '-, "_,', "", ': (~r~'!l.tI".! 'J~lo. H' w::;:".-.l.-"''C;O~,'...r4.1t'' t, '" _ . _"""'~ ...,,{,;'. ;o;;t;!,,".:rr:.J)~..iJt';' r~',)-'-'1"'!';._ ...... ~'r ) Survival. of. RepresenlaUon 'and WalTaiiUes. .. BOIToWer understands 8!1d "gr~ thai Lender Is .relying upon !he 8boIie "'P<eSentations and warran)ies,In..exle!)di~, Loan'.~vances to BoiTower:.'Borrower' further'agrees lhat the. foregoing ,~tions and W8nanfies shall be continuing'in nalure and shall remain.in full. force and effect until SUCh Ime as Boirowe<'s Loan and Nof!.shaI! be paid In tua;"'untilthIs"" . Agteementshalfbe.tennina~.iR.the~~above.wNct~"""lsthe~Io~~"":~J.:/~!~:::~~'~'~"~_~ I ~~'1~")' '~"'R: ~ ,- d' 'C"<. ,\"';p,.; .:, ,I:: -. on t-__., - -, r. ,. '0...,. '.. ..j ,. .,.~,,- ';'.\r. "., ..._,_, ",.". '''1'' '~'i'~" ',-'J '.~ AFFIRMAnl(E ~s. ~cownants and aor-wIth f.endetlhal; WhIIethis~~ Is In efIect, Bonowerwll: . . .... '" -.'.' -. \... - - " ., ".-\1. UtlII8fIo9. Promplly Infoem lendet In WI1ting of (a) aI malerlala~ changes in Bonowet'slnanclal condition, and (b) alltigation and doIms ., and .. _lened litigation and doIms affecting Bonower or ~ Guarantor. '"""'" could malerially affect !he financial COndition of &rro-- or the . ' fina~~onofanyGuarantor.,.... 'C'," . '" .,"., , > ~, .. 'c..... , ..'" ,'. .." FInancIaI'Recotds. MaInIaJn Its ~ and Ncords In accordancie with generaIy accepIed accounting prfnc:Ip/es, applied on .: conoistenI basIs.' and pannit lendet 10 e>camIne and audit 110100,,",,'5 books and records at allIIaSOn8bIe limes. . FInancIal SIaIements. Furrish lender with. as soon as awIabIe, bulln no _ lale< then sixty (60) days after !he end of eachliscaJ _. Borrower's balance ~ and Income slalemenl for the _ ended. prepared by Borrower, 8Iicf. as soon as available, but In no _ lale< fhan thirty (30) days atler the end of each fiscal quarler, 8orrower's balance sheet and profit and loss slalement for the perfocf ended, prepared and certified as COfTIICt 10 the best Icnowfedga and her"" by BOITOWeI's chief InanciaJ offioer or oilier officer or pet$On accepIabIe 10 lender. No lnanciaf teporfs RlQulred 10 be provided under this AQn>ement shall be prepared In accordance with ge'*BIIy accepted 8CCOUnIing pr'.'1Cip/eo, applied on a COt '-<, nt basis. and certified by Bonower as being true and conecl Additional Information. Furrish such additionallnfonn;ttion and slalemenls, lists of assets and IabIities, agings of I8C8IvabIes and payables. Inventory schedules, budgets. forecasIs, tax returns. and oilier AIpO<Is with respecllo Bonowet's lnanclal condition and business oPerations as lender may RlQuest from time 10 time. fnsurance. MaIntain fire and oilier risk Insurance, public lability Insurance, and such oilier Insurance as lender may RlQuIre with respecI to Boirowe<'s properties and operations. in foem, amounls, COIIaIIIges and with Insurance companies reasonably 8CC8plable 10 Lender. BomIwar, upon RlQuest 01 lender. wiI ~ to Lender from time to lime the policies or certificales of Insurance In form "'sfacfory to Lender. IncIucing stipulations lhal CClllenlges wi not be cancelled or diminished wfthout at Ieas!Ien (10) days' prior wr1IIen no6ce 10 lender. In connecIIon with aI policies COII8ring assels in which Lender holds or Is offered a security InteresI for the Loans. ~ wi provfde lander with such loss payable or other endorsements as lender may RlQufn!. Insurance Reports. Furnish 10 lender, upon RlQuest of Lender, reports on each existing Insurance policy showing such Infonnation as Lender may reasonably RlQues~ Including wilhout lmilation Iha following; (a) the name of !he Insurer, (b) Iha risks Insured; (c) !he amounl of the policy; (d) lhe pn>perties Insured; (e) the then current propet1y values on the basis of which Insurance has been obtained, and'the manner of delermining those values; and (I) lhe expiration dale of the policy. In addition, upon RlQuest of Lender (howewr not more oIIen lhan annualy). 8O<Tower will heYII an /ndependenl appraiser satisfacfory 10 lander dalermlne, as ~ble, the actuaJ cash value or nlplacemenl cost of any CoIIaleral GuaranUes. Prior to disbursement of any Loan proceeds. furnish executed guaranties of Ihe Loans In favor of lander. on lender's fonns, and In the amounl and by the guaranlor named below: !!,uaranlor Amount $45,1140.00 other Agreements. Comply with allarms and concfiUons of .. oilier a",__1is, whether now or hereafIer existing. between Bonower and any oIher party and notify lendet Immedialely In writing of any defalM In connection with any oIher SUCh 8gfMmenIs. loan ~ Use.. Loan "'oceedoo solely for 80rr0we(s business operations, unless specificaly consenIed 10 the conIraty by lander in writing. Taxes, Charges and liens. Pay and discharge When due aI of Its Indebtedness and obligations, inc:fuding without imitation aI ~~ess"""lis, taxes, QCMImmenIal charges, levies and liens, of rwery kind and nature. Imposed upon ao.,<>-r or Its properties. Income, or proIiIs, prior 10 the dale on which penalties wotAd attach, and a. lawful doIms Iha~ If unpalcf, might become a ten or charge upon any of 80rr0wer's prcperties. Income, or profils. Provided howewr, 8O<Towar wID not be RlQuIred 10 pay and dIscherga any SUCh _essmaut.1ax, charge, Ievy,ten or doIm so long as (a) the legality of the same shall be contested in good IaIIh bYapprcpriate "'ooeedIngs. and (b) Bonower shall heYII esIabished on Its booIcs adequate -- with respecI to SUCh conlesled -ommecll, lax, charge, levy. Ian. or doIm In accordance with genaraIy accepted aocounting pracIIces. Borrower. upon demand of Lender. wllumIsh 10 lender avkIence of payment of the ~m"""lis, taxes, charges, levies. lens and doIms and wiI aulhc:xlm the approj)riale IIOV8IMIenfaf oIficIaIlo deIIwr 10 lender al any Ime a wriIfen sfaIement 01 any assessments, taxes, chatges.1evles.1ens and doIms against Boirowe<'s pI~ Income. or profits. '. Pedormance. Perfoem and COIIIjiIy with alterms. c:ondiUons, and prOIIis/ons see Iof1h In this Agi_d and In aI oilier Instruments and agreements between BomIwar and lender In a II1\8Iy manner, and promplly notify lander If ~ learns of the 0CCUInInCe of any _ '"""'" constitutes an Evenl of Defauft under !his Agreement. Operaffons. Stbs1antiaIy maJnIaIn Its presenlexecutive and ~ personnel; conduct Its business afIUs In a reasonable and prudent manneo: and In CC>q)Iance with aI appIcabIe federal, state and municipal laws, onIinances, rUes and regulations nlSpllCling, Its "'_lies. charfe<s. businesses and operalions, fncfuding wfthout Imitation, compliance with the Americans W"" ""obl'itiet Ad and with aI minimum funding standards and oIher RlQuirements of ERISA and oilier laws app/Icab/e to Boirowe<'s employee benefit plans. '. Inspection. PermIt ernp/c>yees or agenls of lender al any Na$OnabIa Ime 10 /nspec:f any and aI COIaIeral for the lc8n or Loans and8orrower's oIher pn>perties and 10 examine or audit Bonowet's books, accounts, and records and to make copies and memoranda of BOITOWW's books, IICCOUnls, and I8COrds. If Borrower now or at any time hereatler maJnlalns any records (including without imitation oomputer generated records and oomputer software programs lor the generation of such records) in the possession of a third party. BomIwar. upon ,RlQuest of lander. she. notify such party 10 permit lenderlree access 10 such records at aI reasonable times and 10 provide lender with copies of any records " may RlQuesI. aI at 8O<Tower's expense.' '.. . . Compliance Cer1Incate. Unless waived In writing by Lender, pnMde Lender at leas! aMUaRy' and at the lime of each disbursement 01 Loan ploceedoo with a,cerlllicate executed by Borrowe(s chief lnanclaf officer, or oilier officer or person acceptable 10 lender, certqlng that Ihe I8pr8Senlations and wananties see forlh In !his Agreement are true and COfTIICt as of Ihe dale of the certificate and Iur1her cer1ifyIng fha~ as of Ihe dale of the cerfificate. no Event of Defauft exIsIs under this AgreecMirt. .~ ;22/-L/6 10--16-1995 loan No , . ) BUSINESS LOAN AGREEMENT (Continued) Page , , . AddJIIonaI Assurances. Make, execute and deI'N to lender sUCtiP<Dmisscoy notes, mOftgages, ~ 01 trust. S8CIJriIy alll8eme.lb, Inane ' 'slal8menb, InsIrumenb, doc:umenb and - __ as lender '" lis domeys may reasonably RlQUl!SlIo av!deI... and secur8the La and 10 pef1ecIaI Security InIeresIs.. , NEGATIVE COVENANTS. Botrower - and agr_ With lender thaI while this Agreement Is In 8IIecI,. Borroww shaI not, wfthout the po Wlillen consent 01 lander: > , Indebtedness and liens. (a) Except lor lrade debtlnclmod In the normal COUI$8 01 business and IndebI8dnass 10 Lender contemplated by I Agreeman~ creale,lncur '" assume Indebtedness lot boo.OIoIId money,lncIudIng capilalleases, (b) sell, 1ransIar, mortgage, assign, pIedge,..... \If8J1I a secunly Inlereslln, '" encumber any 01 Be>m>wer's assets, '" (c) seI with racourse any 01 Be>m>wer's IICCOW>Is, excepllo lender. ConUnu11y 01 Ope<allons. (a) Engage Ii>'any business acIIvIIIes subsla:nllally difIerent than those In which Bo..,,_ Is presenlly engaged, '" I ceese operallons, Iquldate, merge, 1ransIar, acquire '" consoIIdale With any _ entily, chenge ownarshIp, dissoIIIe '" IransIar '" seI CoIIaIe out 01 the ordInaIy COUI$8 01 business. Loans, AcqublUons and Guaranties. (a) lean, ImIest In '" advance money '" asseb, (b) Purchase, _ '" acquire any InIerest Ii> any oIt enIerprIse '" entity, '" (c) Incur, any obIgation as surely '" guaranlor _than Ii> the ordinary course 01 business. CESSATION OF ADVANCES. II Lender has made any commiImant 10 make any loan 10 Botrower whether under II1Is Agreema,d '" Under any 011> agreement, lender shaI have no obligation 10 make loan Advances '" 10 dIsbIrse loen ptoc:eed$lI: (a) Botrower '" any Guaranlor Is Ii> default """ the terms 01 this AQleement or eny 01 the Related Documents '" any _ agreement thalBorroww or any Guarantor has With Lender, (b) Borrow dies, becomes Incompelent or InsoIvenI, files a petition Ii> banknJplcy '" similar ptOC88(ings, or Is adjudged a benluupl; (c) lllere 0CCIn a maler, adIIe<se change In Borrower's lnancIaJ -.dition, In the InancIaJ condiIIon 01 any Guaranlor, 'co: In the value 01 any CoIa'- securing any Loen; (, any Guetanler seeks, claims '" 0IhenvIsa ~Is 10 ImII, mocify '" I8IIOIce such GuatanIor's guaranty 01 the loan '" any _loan With Lender, , (e) lender In good IaiIh deems iIseIIlnsecure _Ihough no EII8nI 01 Delault shaI have occurred. EDUCATIONAl PROVISIONS. see allached Addendum B, "~. GovernIng Technical Assistance Prognun", allached hetaIo and made a pi henIoI. " ADOENDUM TO PROMISSORY NOTE. Please '- the adden!lum 10 promissory noIe tilled "Addilionallnlerest" dachad hereto and made a PI hereof. EVENTS OF DEFAUlT. Each 01 the following shaI consIiIute an Event 01 Delault under this Agreement: Default on IndebtednesS.: Fail... 01 Botrower 10 make any payment when due on the loans. Other Delaults. Fail... 01 Botroww '" any Granier 10 comply With or 10 pefform when due any _ Ierm, obligation, covenant", condiIo contained In'this AQleemet. '" Ii> any 01 the Relaled Documenls, or tail... 01 Botrower 10 comply with or 10 pedorm any _ IIIrm, obIgallor covenant or condition conIaIned Ii> any _ agreement between lender and Botrower. Default In F/lv", 01 ThIrd PartIes. Should Botroww or any GranIer default under any loan, extension 01..-. secunly agreement, purchase t sales allleenl8o" '" any - agree~ In favor 01 any other Cleditor or person lhat may malorialy ailed any 01 Botrowe(s properiy c Botrower's '" anY GranIor's ability 10 repay the loans or perform their respective obligations under !his Agreement or any of Ihe Relale< Documents. False Stalements. Any wananly, raptesentation, or slalament made or furnished 10 Lender by '" on behalf of Botroww or any Granier under iii: Agreement or the Related Documents Is Iaise or mlsleaclng In any malarial respect, either now '" a'lhe time made or Iumished. DelecUve CoIlalerallzalJon. ThIs Agreement or any 01 the Related Documenls ceases 10 be In IuI Ion:e and allec:l (including IaBur8 01 al>) SecI.rity Agreemanllo creale a vaId and pefIech,d Security Interest) a' any 6me and lor any reason. Insolvency. The death 01 Borrower or the dissolution or termination 01 Borrower's existence as a going business, Insolvency, appointment 01. receivw lor any part 01 Borrower's properiy, any assignment lor Ihe benefit 01 creditors, any Jype 01 creditor -out, or Ihe commencetnenI of any proceeding under any l!ankruplcy or InsoIII8ncy laws by or egalns! Botrower. Credit", or FortellUre Proceedings. Commencement 01 IorecIosIn or forfeiture proceedings, _ by judIc:faJ proc:eedlng, seIJ-heIp, repro...sion or any - method, by any creditor of Botroww, any creditor 01 any Grantor ageinstany coIa_ securing the Indebtedness, or b) any governmenlaJ agency. ThIs Includes a gamJshmen~ al1achmen~ or levy on or 01 any 01 Botrowe(s deposit accounls with lender. Howa...... this EY8nI 01 Delault shal not apply W there Is a good fafth diopule by Botrower or Grantor, as the case may be, as 10 the valdily or reasonabIeneu 01 the claim which Is the basis 01 the crediler or forfeiture proceeding, and W Botrower or Grantor gives lender written notice 01 the credIor or forfeil... proceeding andlumlshes reserves or a surely boncIlor the credilor or forfeiture proceeding sao;,.lacto.y 10 Lender. Events AllecUng Guarantor. Any 01 the pt1ICa<Ing events occurs With respect 10 any Guaranler 01 any 01 the Indebtedness or such Guarantor dies or becomes Incompelenl. Lender, at its option, may. but shaI not be required 10, permit the Guarantor"s _Ie 10 assume uncondillonaly !he obligalfons arising Under the guaranty In a manner ....."'ctory 10 lender, and,ln doing so, Ctn the Event 01 Default. Insecurlly. lender,ln good faith, deems iIseII inoectn: RIDhIIo CUte. "any default, other lhan a Default on IncIebIedness, Is curable and II Botrower '" Grantor, as the case may be, has not been given a notice oIa sImiIat default wiIhIi'Ilhe pt8C8dIng twelve (12) months, II may be cured (and no EveN of DeIauIt wiI have OCC:uned) W Botroww " '.., '" GranIer, as the caSe may be, after receiving written notice from lender demanding Ctn 01 such default (a) cUres !he delault within Mean (15) H'" " clays; ",. (b) lithe CUre requfriIs '-II lhan fiIIeen (15) clays, Immediately lnitiales steps which Lender deems In lender's sole dlscration 10 be "; ,~. suIficIent 10 cure the default and IhereaIIer conIInues and compIeles allII8SOn8bIe and II8C8SSaIy slaps sullic!enl1o produce compIance as soon ~~'~f~'~~~~l'88SOnabb'pradfcaL C;',-,;\'~' ..:;~" ~. ":',"" "_ '.~ '-., ...... > c~ EFFECT OF AN EVENT OF DEFAUlT. II any Event 01 Delault shaI _, aI commitments and obligations 01 lender under Ihis AQI_. or the . Related Oocumenls or any other agreeme,. Immedlalely willermlnale (including any obligation 10 make loan Advances or disbursements). and, at 'f', ,'- ~t';Lenc:Ier's option, aI loans ImmedIaIely wiI become d.... and payable, aI wiIhoUt nollce <;f any Idndto BOfTO'IiW, """"'" thetln the case 01 en Event 01 -,4)eIaun oflhe type ~ Ii>the""~~ob$actionaboY8;such acceIerationShelbe automatic and~!'J>IIonaI.', , ,,'.'.,,'u,*, "":' , ' "'Mi~EOUSP.RoVr'sioNS:;:-n.eloicwingmJsca::aileoUS'~';;;a.;.rt'oithI$~";";~ ";'; '>' ' """i-';' ""'~H...\:! .,":. ,. ~.~.. .. . .. ,_ ,. . ',., _ ",. '. _ _. : en" "Amendments. This'Agrioiineni; tDgBlher wlih any ReIa'.ed !><>tu"""!1s, conotitules ,the entire understanding andagreemen' 011118' parties as 10 the _matters 'M." fcr1!> Iry)hls Ag1eemenL,-No allenltion-oI cr a~menllo thiS Agreement shall be elfective unleo$ given In writing and signed by the =:"~~~-- party or parties sought 10 be charged or bound by the alteration or amendment , __ " , : ~'n" Ie (:- Applicable lajv. This Agreement has '1een ,deliverecl1o lender and lic"a:pled' by lender In the Slate 01 Calilomla. "there Is a lawsuit, JQ';:'..t.e- J 8orrowe.!....g~ upon lender.s request 10 submit to the JU'!SdJClJon 01 the courts or San Diego County.1he Slale of California. (InUlal 'Here ,'11--.' "'Co\.) Lender and Borrower hereby wa~ the nghl to any jury trial in any action. pr~no.. or counterclaim brouohl fw ~t"- l--A- bt Bofr6wer 300iMI the othM ~..hl--e t... lhA _...._w-.r.......... -~,.~..,- "";J .J / I /(7 ~~ " , A cJ~,- .;27-7/ 10-16-1995 Loan No BUSINESS LOAN AGREEMENT (Continued) Page 5 with the laws of the Slale of Calnornia. ArbItrallon. Lender and Borrower agree lhat all disputes, claims and controversies between them, whether indIvidUal, joint, 0( class In nalure, arising from thIs Agreement or otherwise, including WIthout IImltallon contract and tori disputes, shalt be _ated IMUSUant to the Rules of the American Arbitration Assoctatlon, upon request of either party. No act to take Of' dispose 01 any CoIIaIeraJ shaI constitute a waiver of this asbltration agreement or be prohibfted by this asbltration agr_L ThIs Includes, \'.'!thout imitation, oblafnlng Injunctive rel"oer or a temporary resnlning order, Invoking a power 01 sale under any deed 0I1rusI or moc1gage; oblafning a writ 01 altaclunent or impos/uon 01 a recei-o or exercising any rights relating to personal prnperIy, Including laking or disposing 01 such property with or without JUdicIal process pursuant to Articfe g 01 the Uniform Commercial Code. Any disputes, claims, or c:onIrOII8I'Sie OO"08..IIng the laWfulness or fB8SOnabIeness 01 any act, or -.:Ise of any right, concemIng any CoIIaIeraJ, Including any claJm to rescind. ""orm, or otherwise modify any agreement relating to the CoIIaIeral, shal atso be asbItraled, provided how_that no asbItralor shaI have the right or the _10 enjoin or resInIIn any act 01 any party. Lender and Borrower agree thaI In tha event 01 an action for JUdicIal foreclosure pursuant to California Code 0/ 0viI Procedure Section 726, or any similar provision In any other stale, the commencement 0/ such an action Will no! oonsutute a waiver 0/ the righllo asbItrate and the court'shaI ""er to _tion as much 0/ such action, Including counterclaims, as lawfully may be .-red 10 asbItration. Judgment upon any award randered by any asbItrator may be entered In any court havfng)u1sdiction. Nothing In this Agteement shaJ preclude any party from seeking equitable relief from a court 01 competent Juriscroclion. The slatute 01 limitations, estoppel, waiver, laches, and similar doc:IrInes which WOUld otherwise be applicable in an action brought by a party shall be applicable In anyasbltration prooeeding, and the oomme""""*,, 0/ an asbItration I"oc-ding - shaD be deemed the commencement 0/ an action for these purposes. The Federal _tion Act shal apply 10 the consltuction, Interpretation, and enforcement of this arbitration provision. Capllon Headings. Caption '-dings In this Agreement 818 for conwnienoe purposes only and are not 10 be used 10 interpret or define the provisions of lhis AgreemenL Mulliple Parties. All ob6gat;ons 0/ BOITower under this Agreemenl shan be joint and several, and al ""erenoes 10 Borrpwer shaJ mean each and every BOITower. ThIs means lhal each oIIhe persons signing below Is responsible for all obligations in this AgreemenL Consent 10 Loan Partic/pallon. BOITower agrees and consents to l.ender's sale or transfer, whether now or later, 01 one or more pasticipation Inlerests Iii the Loans 10 one or more plXChasars, whether related or unrelated 10 Lender. Lender may provide, without any limitation Whatsoever, 10 any one or more purchasers, or potential purchasers, any Information or knowledge Lender may have about Borrower or about any o/har matter relating 10 !he Loan, and Borrower hereby waives eny righls to privacy ft may have with respeclto such matters. Borrower addiUonaay waives any and an nolices or sale or part;c;paUon Inleresls, as weft as an notices of any repurchase of such par1icipation Inferests. BOITOW8r atso agrees that the purchasers of any such participation Inleresls will be considered as the absoiute OWners 0/ such Interests In the Loans and will have an the righls granled under the part;c;palion agreement or agreements governing !he sale of such participation Interests. Borrower fUrther waives al righls of ollsel or counlerclalm that ft may have now or taler agalnst Lender or agalnsl any purchaser 0/ such a perticlpetion In/erest and uncondiUonany egrees that either Lender or such plMchaser may enrorce BOITower's obligation under the Loans irrespective 01 the faBure or Insolvency of any holder 01 any interest in the Loans. BO<Tower further agrees that the purchaser 01 any such perticipetion InIerests may enforce lis Interests irrespective 01 any personal claims or defenses that BOITOW8r may have againsl Lender. Costs and Expenses. BOITower agrees 10 pay upon demand an of Lender's out-oI-pocket expenses, inclUding attorneys' fees, incurred In connection wilh the preparation, execution, enforcement and collection 0I1hIs Agreement or In connac/ion with the Loans made pursuant 10 this Agreement Lender may pay someone else 10 help cotlect the Loans and 10 enforce this Agreement. and Borrower Will pay thet amounL ThIs Includes, subject 10 any imits under applicable law, l:ender's attorneys' fees and Lender's legal expenses, whether or no! there Is a lawsuit, including attorneys' lees for bankruplcy proceedings (including efforts 10 modify or vacate any automatic slay or Injunction), appeafs, and any anticipaled post-judgment collection $erVices. Borrower atso will pay any court costs, In addition to an other sums provided by law. Notices. IIJ/ notioes required to be given under this Agreement shan be given in writing and shal be effective When actually deIi-.d or when deposited wilh a nationany recognized overnighl courier or deposited in the Unilect Stales mal, first class, poStage prepaid, addtessad 10 the partY 10 whom the notice Is 10 be given al the address shown above. Any party may change lis address for notioas under this Agteement by giving fonnaJ wriIIen notice 10 the olher parties, sPecifying thai the purpose of the I}OIioe Is 10 change the perty's address. To the extent permitted by applicable law, ft there Is more than one Borrower, notice 10 any 8O<Tower will oons6tute notice to.. Bonv_s. For notice purposes, Borrower agrees 10 keep Lender Inlormed at an times 0/ BOITOWer's current acldress(es). , SeverabilItY. If a court 01 competent /urisdiction finds any proviston 01 this AQleemenllo be Invaiid or unenforteabIe as to any person or circumstance, such finding shal no! render that proviston Invalid or unenfon:eable as 10 any o/har persons or drcumstanoes. If feasible. any such offending provision shea be deemed 10 be modified 10 be within the limits 01 enfOfC88bitify or valicfoty; '-,II the offending proviston cannot be SO modified, II shal be slriclcen and .. other provisions 0I1hIs ~d In al o/har respects shal remain valid and enfon:eable. SUbsidiaries and Affiliates of Borrower. To the extent the conle>d 01 any provisions of this Agreement makes. appropriate, Including without limitation any represenlation, wananty or covenant, the word '1!onower as used herein shal Include .. subsidiaries and affiliates 01 Borrower. Notwithstanding the foregoing ~, under no circumstances shan this Agreement be consfruecIlo require Lender to make any Loan or other IinancIaJ aooommodetion 10 any subsidiary or affiroate 01 Borrower. su--ces~ and Assigns. NI covenants and agteeme"ts conIafned by or on behalf 0/ Borrower'shaJ bind lis... t [, ors and assigns and shall Inure 10 the benefit of Lender,IIs~. mtors and assigns. Borrower shaI not, '-, have the rigid to assign Is rights under this Agreement or any Inleresllhereln, without the prior wriIIen consent 01 Lender. SUrvival. NI wananlies, represenlations, and covenants made by 8O<Tower In this AQlaement or In any certificate or o/har InsIrument daf_ by BO<Tower 10 Lender under this Agreemenl shaI be consIdered,1o have been relied upon by Lender and wiI suMve the making 01 the Loan and delivery 10 Lender of the Related Documents, regardless 01 any Investigation made by Lender or on Lencler's behati. TIme Is 01 the Essence. Time Is of lhe essence in the performance 01 this Acitaemeut. Waiver. Lender shan no! be deemed 10 have waived any rlghls Under this Agreement unless such waiver Is given In writing and signed by Lender. No delay or omission on the part 01 L8nder In exercising any right shaI operate as a waiver 01 such right or ar;y other righL A waiver by Lender of a provision of this Agreement shaI no! preJucfooo or constituta a w~ 01 Lender's rigid ofherwise 10 demand $IricI compliance with that provision Or any o/har provision of this AgreemenL No prior waiver by lender, nor any COUISe 01 dealing '*-n Lender and Borrower, or belween Lender and any Grantor, shall oons6tute a waiver 01 any 01 Lender's rights or 01 any obligations 01 Borrower or 01 any Grantor as 10 any future Itansactions. Whenever Ih8 COI1S8RI 01 Lender Is required !/IIC;Ier this Aoreement, the granting 01 such consenI by Lender In any instance shan no! consutute continuing consent In subsequent Instances Where such oonsent Is required and In .. cases such consenI may be granted or withheid In the SOle discretion 01 Lender. ' ~;j,--/L;?' 10-16-1995 loan No , .~: . BUSINESS LOAN AGREEMENT' , " (Continued) , Pag, BORRO WLEDGES HAVING READ ALL THE PROViSIONS OF THIS BUSINESS LOAN AGREEMENT ~ AND EACH BORRow S. THIS AGREEMENT IS DATED AS OF OCTOBER 18.199S. "'" , x x . . . , y . ", \n. '" .'~' __~ x 01 San DIego County Inc. 'J.- O.Reo. u.s. PIIt. & T.M. 0".. YW.3.tldtc)1805 CFIProServIC...1nc. Aat1ghb'......cLICA-C40CDCOOO53.1.N cs.OVl.) . .;-,~ ~ - ~ :t. d. " -'--' ~ .. r_ . ~Y-:_~J ,. '^ ;.., - \..:',- "., POWER OF ATTORNEY I, " the bona fide registered owner of the following described molor vehicle: 19M VoIk, . . .. " hereby irrevocably appoint Bankers Small Business COC of Siln Diego County Inc. of 5353 Mls.slon Center Road, Suite 218, San Diego, California S2108. or any.officer thereof, as my attorney with fuU authority to execute and r8COI"d any and sa Instruments. affidavits. .certificates of title. renewals, and other documents necessary to effect registration. transfer of We, application for title, and 10 evidence Bankers Sman Business CDC of San Diego County Inc.'s security Interest In the above described motor vehicle, and to do such other things as may be proper perlainlng 10 the title or licensing of lhe motor W!hicIe, In my place and stead. This Power of AUorney shan not lermlnale or otherwise be affected by my subsequent disability or Incapacity. The undersigned certifies thelthe transf... of this W!hicIe Is not In violation of Article 5, Division 7, of the Vehicle Code relating 10 the Suspension of registration of motor vehicles involved in accidents. I further agree to guarantee and save the State of California, the Registrar of Molor Vehicles, and lhe Director of Motor Vehicles trom aU responsibUity which might accrue from the issuance of California registralion or transfer of such vehicle. Note: An allorney In fact cannol make an affidavit or certificate of Ihe truth of facts unknown to him, Signed this 161h day of October, 1995. GRANTOR: x~ d delivered In the presence of: x LASER PAO, Reg. U.S. Pat. & T.M. Off.. V... 3.1" (c) 1$85 CFI PrOServiCe., Inc. AU rights reUIVed.ICA_ESO CDCOOO53.LN CS.OV,-! ~.;2:/~~;:L ," COMMERCIAL GUARANTY Borrower: ..,. Lender: . .... ,'. Guarantor: , AMOUNT OF GUARANTY. The amount 01 this Guaranty Is Twenty Thousand Six Hundred EIghty Nine & 7aI1oo Oollars ($20,689.78). CONTINUING GUARANTY. For good and Valuable cons/deralion, _. . .., ("'Guarantor"') absolutety and uncondlllonally guarantee~ and promises to pay to . - ~,"nder.) or Its order, In legal lender 01 the United States 01 Amertca, the Indebtedness (as that term Is defined below) 01 Dale We,snnans ("tIofluwer"') to Lender on the terms and condilions set lorth in this Guaranty. The obligations of Guaranlor under Ihis Guaranty are continuing. DEFINITIONS. The loUowIng words shaft have lhe loUowing meanings when used in lhis Guaranly: Borrower.' The word 'Bon-ow<<' means Date Welshhans. Guarantor. The word "'Guarantor'" means Dale We!shhans. Guaranty. The word "'Guaranty'" means this Guaranty between Guaramor and Lender dated December 17. 1993. tndebtedness. The word 'ndebtedness. is used in its most comprehensive sense 8nd means and Includes any and all of Borrow81's liabilities. obligations. debls, and indebtedness to Lender. now exisling or hereinaller incurred or created, Including, wi1hout timilation, an loans, advances. interest, costs. debts. overdraft indebtedness, credit card indebtedness, lease obfigations, olOOr obligations, and liabilities of Borrower, Of any of them. and any present or future judgmenls against Borrower, or any of !hem; and whether any such Indebtedness is volunlariJy or involuntarily Incurred, due or not due, absolute or contingent, liquidaled or untiquidated, determined or undetermined; whether Borrower may be liable IncfMdually or joinlly wilh others, or primarily or secondarily. or as guarantor or surely; whether recovery on the Indebtedness may be or may become barred or unenforceabJe against Borrower for any reason whatsoever: and whether the Indebtedness arises from Iransacfions which may be voidable on account of infancy, insanity, uUra vires, ()( otherwise. lender. The word '1..e~ means --.. '.'Inc., its SI.IOOeSSOf'S and assigns. MAXtMUM LIABILITY. The maximum liability of Guarantor under this Guaranty shall not exceed at anyone lime $20,689.78 plus all costs and expenses 01 (a) enlorcement of this Guaranty and (b) collecl/on and sale 01 any cotlateral securtng this Guaranty. The above limifalion on liability is not . restriction on Ihe amount of the Indebtedness of Borrower 10 lender either in the aggregate Of at anyone time. II Lender presenfty holds one or more guaranlies, or hereafter receives additional guaranlies from Guarantor, !he righls of lender under aD guaranlies shan be cumutative. This Guaranly shaD not (untess specUlCaUy provided below to the contrary) affect or invatidate any such other guaranties. The liability of Guarantor wiu be lhe aggregate liability of Guarantor under the terms of this Guaranty and any such other unlerminaled guaranties. NATURE OF GUARANTY. Guarantor's liability under this Guaranty shall be open and continuous lor so long as this Guaranty'remains in lorce. Guarantor Intends to guarantee at all times !he performance and prompt payment when due, whether at maturily or eartier by reason of acceleration or othecwise. of all Indebtedness wilhin the timils set lorth In the preceding section 01 !his Guaranty. Accordingly. no paymenls made upon the Indebtedness wi11 cflSCharge or diminish the continuing IiabUIty of Guaranlor in connection with any remaining portions of the Indebtedness or any 01 the Indebtedness which subsequenUy arises or Is tihereafter Incurnad or contracted. Any manied person who signs !his Guaranly as lhe Guarantor hereby expressly agrees that recoutse may be had against both his or her separate property and oommunity property. DURATION OF GUARANTY. This Guaranty wilt take effect when received by lender wi1hout the necessity of any acceptance by Lender, or any notice to Guarantor or to Borrower, and will continue In lull force unfif all Indebtedness Incurred or contracted belore reoeIpt by lender of any notice 01 revocation shall have been fully and finaay paid and satisfied and an oIher obrogations of Guatanlor under !his Guaranty shea heve been performed In lull. 1/ Guarantor elects 10 revoke this Guaranty, Guarantor may onty do so In writing, Guarantor's written notice of revocation must be delivered to Lender at the address of lender lisled above or such other ptace as lender may designate In writing. Wrillen revocation 01 this Guaranty will apply only 10 advances or new Indebtedness crealed after actual receipt by lender 01 Guaranlor's written revocation. For this purpose and wi1hout timilation. the term .new Indebtedness. does not Include Indebtedness which at !he time 01 notice 01 revocation is contingen~ untiquidaled. undetermined or nol due and which tater becomes absolute, tiquidaled, determined or due. This Guaranty will continue to bind Guarantor for aIIlndebledness incurred by Borrower or oommilled by lender prior 10 receipt 01 Guarantor's wrilten notice 01 revocation. including any extensions, renewals, substitutions or modifications 01 the Indebtedness. AI renewals, extensions, substitutions. and modifications 01 !he Indebtedness granted alter Guatantor's revocation, are contemplated under this Guaranty and, specifocally wi11 not be considered to be new Indebtedness. This Guaranty shell bind the estate of Guarantor as 10 Indebtedness created both belore and alter !he death or Incapactty of Guarantor, regardless of lencIer's actuaf notice 01 Guarantor's dealh. Subject 10 the loregolng, Guarantor's executor or administrator or other legal represenlative may terminate this Guaranty In !he same manner in which Guarantor might have terminated II and wi1h the same effecl Release 01 any other guarantor or termination of any other guaranty 01 the Indebtedness shall not affect the liability 01 Guarantor'under this Guaranty. A revocation received by lender trom 8nyone or more Guarantors shaa not affect the liability 01 any remaining Guarantors under this Guaranty. It Is anllclpaled that fluctualtons may occur In the aggregate amount of Indebtedness covered by this Guaranty, and It Is specifically acknowledged and agreed by Guarantor that reducl/ons In the amount 01 Indebtedness, even to zero dollars ($0.00), prtor 10 wrttten revocation 01 this Guaranty by Guarantor shall not constitute a termlnallon 01 this Guaranty. This Guaranty Is binding upon Guarantor and Guarantor's heirs, successors and assigns so long as any 01 the guaranteed ' Indebtedness remains unpaid and even thOUgh the Indebtedness guaranteed may from time to time be zero dollars ($0.00). GUARANTOR'S AUTHORIZATION TO LENDER. Guarantor authorlZllls I..endei': either belore or alter any revocation h8teot. without notice or demand end without lessening Guarantor's Dablllty under this Guaranty, from time 10 Orne: (a) prfor to revocation as set forth above, 10 make one or more additIOnal secured 01' unsecured loans to Borroolrer, .to lease equipment or other goods 10 lIomIwer, or othetwlse 10 extend ' ., additIOnal credit to lIomIwer; (b) to alter, compromise, renew, extend, accelerate, or otherwise change one or more Dines the lime for?: payment or other terms 01 the tndebtedness or any part of the Indebtedness, Including tncreases and decreases of the rate of Inferest on the A " tndebtedness; extensions may be repeated and may be for longer than the !,o1g1na1 loan term; (c) to take and hold securtty for the payment or ::-',;:, "Chis Guaranty or the Indebtedness, and eXdlange, enforce. waive, fait or decide nol to perfect, and release any such securtty, with or wlthqul , , ' the substitution of new collateral; (d) to release, substitute, agree not to sue, 01' deal with anyone or more of Borrower's sureties, endorser$, " , 01' other guarantors on any terms or In any manner Lender may dloose; (e) to determine how, when and what application 01 payments end ~ ;2'/--~J 12-17-1993 Loan No COMMERCIAL GUARANTY (Continued) Page 2 credits shall be made on the Indebtedness; (I) to apply such see.unly and direct the order or manner or sale thereof. Including without IImlt.tlon, .ny nonJudlcJoI sole permitted by the terms otthe controlling security agreemenlor deed Ollrusl, as lender In Its discretion may determine; (g) to sell, Iransler, assign. or grant participations In a/l or any part Of the Indebledness; and (h) 10 assign or Iranster this Guaranty In whole or In part~ GUARANTOR'S REPRESENTATIONS AND WARRANTIES. Guarantor represents and warrants to lepder that (a) no representations or agreements of any kind have been made 10 Guarantor which would limit or qualify in any way the terms of thIS Guaranty; (b) this Guaranty is executed al BOfTOWer'"S request and not at the requesl of Lender, (c) Guaranlor has not and will not. without the prior wri"en consent of Lender. seD, 'ease, assign. encumber, hypothecate, Iransfer, or otherwise dispose ot all or subslantially all ot Guarantor's assets, or any interest therein; Cd) Lender has made no represenlation to Guaranlor as to the creditworthiness of Borrower; (e) upon Lender's request, Guarantor will provide 10 Lender financial and credil Information In form acceplable 10 Lender, and all such financial Information provided to Lender Is !rue and correct in all material respads and fairly presents the financial condition of Guarantor as of Ihe dates thereof, and no material adverse change has occurred In !he financial condffion of Guaranlor since the dala of the financial statements; and (I) GuaranlO( has established adequate means of obtaining from Borrower on a continuing basis infOf'mation regarding Borrower's financial condition. Guarantor agrees to keep adequately informed from such means of any facts, events. or circumslances which might In any way affeel Guarantor's risks under !his Guaranly, and Guaranlor further agrees that absent a request 'or Information, lender shan have no obrig8tion to disclose 10 Guaranlor any information or documents acquired by Lender in Ihe course of its relationship with Borrower. GUARANTOR'S WAIVERS. Except as prohibited by applicable law, Guarantor waives 'any right 10 requlra Lender 10 (a) make any presenlrnent, protes~ demand, or notice of any kind, including nolice 01 change of any terms of repayment of lhe Indebtedness, default by Borrower or any other guarantor Of surety, any action or nonaction taken by Borrower, lender, or any other guarantor Of' surety of Borrower. Of the creation of new Of addilionallndebtedness; (b) proceed against any person, including Borrower, belore proceeding egalnst Guaranlor; (c) proceed againsl any COIIaIeral for the Indebtedness, Including Borrower's collateral, before proceeding against Guaranlor; (d) apply any payments or prooaeds received against the Indebledness in any order; (e) give notice of the terms, time, and place of any sale of the coIIaterat pursuant to the Uniform Commerciat Code or any other law governing such sale; (f) dISClose any information aboulthe Indebtedness, the Borrower, Ihe coIIaleral, or any other guaranlor or surety, or about any aclion or nonaction of lender; or (g) pursue any remedy or course of action in lender's power whatsoever. Guaranlor also waives any and all rights or defenses arising by reason of (h) any disability or oIher defense of Borrower. any other guarantor or surety or any olher person; 0) lhe cessation from any cause whatsoever, olher than payment In lull, of the Indebtedness; 0> the apprlCStion of proceeds of lhe Indebtedness by Borrow.... for purposes olher than the purposes understood and Intended by Guarantor and Lender; (k) any act Of omission or commission by lender which direclly or incflfecUy results in Of contributes to the discharge of BOITower or any other guarantOi or surety. or the Indebtedness. or the loss or release of any corlateral by operation of law or otherwise; (I) any statute of IimUations in any action under this Guaranty or on the Indebtedness: or (m) any modifICation or change in terms of the Indebtedness. whatsoever. including without limitation. the renewal. extension. acceJeration. or other change In the time payment of the Indebtedness is due and any change in the interest rale. and including any such modification or change in terms after revocation of this Guaranty on Indebtedness incurred prior to such revocation. Until sQ Indebledness is paid in full, Guaranlor shall have no right of subrogation, and Guarantor waives any defense Guarantor may have based upon any election of remedies by Lender which limits or destroys Guarantor's subrogation rights or Guaranlor"s rights 10 seek reimbursement from Borrower or any other guarantor or surety, including without limitation, any Joss of rights Guarantor may suffer by reason of any rights or protections of Borrower in connection with any anli-deficiency laws or other laws limiting or discharging the Indebtedness or Borrower's obrtgations (including, without imitation, Sections 726, 580b.. and 5BOd of the California Code of Civil Procedure). Until aU Jndebtedness is paid in fun. Guarantor wajyes any right to enforce any remedy lender may have against Borrower or any olher guarantor. surely. or other person. and fur1her. Guaranlor waives any right 10 participate in any coMateral for the Indebtedness now or hereafter held by lender. /I now or hereafter (a) Borrower shall be or become insolvent, and (b) the Indebtedness shall not at all times until paid be tully secured by coDaleral pledged by Borrower, Guarantor hereby forever waives and relinquishes in favor of lender and Borrower, and their respective successors, any claim or right to paymenl Guaranlor may now have or hereafter have or acquire against Borrower. by subrogation or otherwise, so that al no time shall Guarantor be or become a "credilor" 01 Borrow.... within the meaning 0' 11 U.S.C. section 547(b), or any successor pr01lision 01 the Federal bankruptcy laws. GUARANTOR'S UNDERSTANDING WITM RESPECT TO WAIVERS. Guarantor warrants and agrees that aach oIlhe waivws salforth above Is made with Guaranlor's fun knowledge of its significance and consequences and that, under the circumstances, Ihe waivws ora reasonable and not cont(ary 10 public policy or law. II any such waiver Is determined 10 be conlrary 10 any appflCBble law or public pdq, such wah,er shaD be effective only to Ihe extent permi/led by law or public policy. . SUBORDINATIDN OF BORROWER'S DEBTS TO GUARANTOR. Guaranlor agrees that Ihe Indebtedness of Borrower 10 lender, whether now existing or hereaft.... created, shall be prior to any ctaim that Guarantor may now have or hereafter acquire against Borrower, whether or not Borrower becomes insolvent. Guarantor hereby expressly subordinates any ctaim Guaranlor may have against Borrower, upon any account whatsoever, to any ctaim lhal lender may now or hereafter have against Borrower. In Ihe event of insolvency and consequent Iquidetion of Ihe assets of Borrower, through bankruptcy, by an assignment for the benefit of credilors, by voIunlary Iquidation, or otherwise, the assets 01 Borrower applicable to the payment of the ctaims of both Lender and Guarantor shan be paid 10 Lender and shan be first applied by Lender 10 Ihe Indebtedness of Borrower to lender. Guarantor does hereby assign to lend.... all ctaims which " may have or acqulra against Borrower or against any assignee or trustee In bankruptcy of Borrower; provided however, that suCh assIgnmenl shan be effective only tor Ihe purpose of assuring 10 Lender tun payment in legal lender of the Indebtedness. II Lender so requests, any notes or crecrrt agraements now or heraatler avidenclng any debts or obligations of Borrower 10 Guarantor shan be marked with a legend that the same are subject to !his Guaranty and shan be delivered to lender. Guaranlor agrees, and Lender hereby Is authorized, In Ihe name 01 Guarantor, from time to time 10 exacuIe and fila financing slatements and continuation statements and to 8X8CUte such other dOCuments and 10 lake such other actions as Lender deems nacessary or appropriate to perfect, presen.e and enforce its rights under this Guaranly. MISCB..l.ANEOUS PROVISiONS. The following miscellaneous pi01/isions ora a part 01 this Guaranty: Integration, Amendment. Guarantor wanants, represents and agrees lhat this Guaranty, Iogelher with any exhibits or schedutes Incorporated herein" fully Incorporates !he agfaements and Underslandings of Guarantor with Lender with respect 10 Ihe subject maft.... hereof and aD prior negotiations, drafts, and ofher extrinsic communications between Guarantor and Lender shall have no evidentiary affect whatsoeI/W. Guarantor lurther agrees that Guarantor has read and luny understands Ihe terms of this Guaranty; Guarantor has had Ihe opportunity 10 be advised by Guarantor's aUorney with respect 10 IhIs Guaranty; Ihe Guaranly tuny retIecIs Guarantor's intentions and parol &vidence Is not required 10 Interpret Ihe terms of this Guaranly. Guarantor hereby Indemnifies and holds Lender harmless from aD losses, claims, damages, and costs (oncIuding Lender's allorneys' fees) suffered or Incurred by Lender as a result of any breach by Guarantor of Ihe warranties. reprasenlations and a_ts of this paragraph. No alleration or amendment to !his Guaranty shall be effective unless given In writing and signed by lhe parties sought to be charged or bound by lhe aneration or amendment. . . Applicable Law. This Guaranty has been defivered 10 lender and accepled by lender In the Stale of Cafitornia. If Ihera Is a IaWf,Uil,J;uarantor agrees upon lender"s request 10 sub...... to lhe jurisdiction of !he cour1s of San Diego Coun~' <;tate of Cal"ornia.(tnltlol Here -<. .' _ ..:-, Lender and Guaranlor hereby waive .'. right to any J~ trial In any .~on, p;i:'t~ 't~ctaim brought by either lender.or Guarantor ~ c2 y-~_sY 12-17-1993 Loan No COMMERCIAL GUARANTY (Continued) Page 3 against Ihe other. SUbject to Ihe provisions on arbitration, this Guaranty shall be governed by and construed in accordance with the laws of Ihe State of California. Arbitration. Lender and G"Jarantor agree that all disputes. claims and controversfes between them, whether Individual. 'oint. or class In nature. arising from this Guaranty or otherwise, including without limitation contract end tort disputes, Shall be arbitrated pursuant to the Rules of the American ~itratlon Association, upon request of either party. No act to take or dispose af any CoUaleral shaH constihrle 8 waiver of this arbitration agreement or be prohibited by thiS arbitration agreement. This indudes. without limitation, Obtaining injunctive relief or a temporary reslraining order; invoking a power of sale under any deed 01 trust or mortgage; oblaining a wril of atlachment or imposJtion of a receiver; or exercising any rights relaijng to personal property, including laking or disposing of such property with or withouljudicial process pursuant to Article 9 of the Uniform Commercial Code. Any disputes. claims. or controversies concerning the lawfulness ()( reasonableness of any act. ()( exercise of any right, concerning any Collateral, including any claim 10 rescind, reform, or otherwise modify any agreement relating to Ihe CoIlaleral, shall also be arbitrated, provided however that no arbitrator shan have lhe righl or !he power 10 enjoin or restrain any act of any party. Lender and Guaranlor agree thai In the evenl 01 an action for judicial foreclosure pursuanlto CaUfornia Code 01 CivIl Procedure Section 726, or any similar provision in any other state, the commencement of such an aelion wiU not constitute a waiver of the right to Sfbitrale and the court shall refer to arbitration as much of such action, including counterclaims, as lawfully may be referred to arbitration. Judgment upon any award rendered by any arbitralor may be enlered In any court having jurisdiction. Nolhing In this Guaranty shan preclude any party from seeldng equitable relief from a court of compelent jurisdiction. The slalute of ijmilalions, esloppel, waiver, laches, and similar doctrines which would otherwise be applicable in an acijon broughl by a party shall be applicable in any arbilralion proceeding, and the commencemenl of an arbitraijon proceeding shall be deemed the commencement of an action for these purposes. The Federal Arbitration Act shaD apply to the construction, interpretation, and enforcement of this arbitration provision. Attorneys' Fees; Expenses. Guarantor agrees to pay upon demand aD of Lender's costs and expenses, including attorneys'lees and Lendets legal expenses, incurred in connection with the enforcement of this Guaranly. lender may pay someone else \0 help enforce this Guaranty, and Guarantor shall pay the costs and expenses of such enforcement. Costs and expenses include Lender's attorneys' tees and legal expenses whether or not lhere is a lawsuit, induding attorneys' fees and legal expenses for bankruptcy proceedings (and including efforts 10 modify or vacate any automatic stay or injunction), appeals, and any anticipated post-judgment collection services. Guarantor also shan pay aU court costs and such addmonaJ fees as may be directed by the court. Notices. Except lor revocalion no!ices by Guaranlor, all nolices required 10 be given by either party to lhe other under this Guaranty shan be In writing and shan be effective when actuaRy delivered or when deposiled in the United States mail, first class postage prepaid. addressed to the party 10 whom the notice is to be given at the address shown above or to such other addresses as either party may designate to the other in writing. All revocation notices by Guaranlor shan be in wriijng and shall be effecijve only upon delivery to Lender as provided above In lhe secijon ijtled "DURATION OF GUARAIIITY." If there is more than one Guarantor, nolice to any Guarantor will consmule nob to all Guaranlors. For nab purposes, Guaranlor agrees to keep lender inform~ at all times of Guarantor's current address. Interpretation. In all cases where there is more than one Borrower Of' Guarantor, then aU words used in this Guaranty in the singular shall be deemed to have been used in the plural where the context and construction so require; and where there is more than one Borrower named in this Guaranty or when this Guaranty is executed by more than one Guarantor, the words "'Borrower" and "Guaranto(" respeclively shaD mean all and anyone or more of them. The words "Guarantor," "Borrower," and "Lende(" inctude the heirs, successors, assigns, and transferees of each of lhem, Caplion headings In lhis Guaranty are for convenience purposes only and are not 10 be used 10 inlerprel or define !he provisions of this Guaranty. If a court of competent jurisdiction finds any provision of this Guaranty to be invalid or unenforceable as to any pet$Ol1 or circumstance, such finding shall not render that provision invalid or unenforceable as to any other persons or circumstances, and aU provisions of this Guaranty in all other respects shall remain valid and enforceab&e. If anyone or more of Borrower or Guarantor are corporations or partnerships, it is not necessary for Lender to inquire inlo the powers of Borrower or Guarantor or ot the OffICers, directors, partners, or agents acting or purporting to act on their behalf, and any Indebtedness made or created in reliance upon the professed exercise of such pOWefS shall be guaranteed under this Guaranty. Waiver. Lender shan not be deemed to have waived any rights under this Guaranty unless such waiver Is given In wriijng and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operale as a waiver of such righlor any other righl A waiver by lender of a provision 01 this Guaranty shall nol prejudice or constnule a waiver of lender's righl othetwise to demand strict compliance with that provision or any other provision of this Guaranty. No prior waiver by Lender, nor any COUI$e of deaUng between Lender and Guarantor, shan consijtute a waiver of any of Lender's rights or of any of Guarantor's obligaijons as 10 any tulure transactions. Whenever !he consent of Lender Is required under this Guaranty, the granijng of such consent by lender in any inslance shaD nol consmule conijnuing consent 10 subsequent inslances where such consenl is required and In all cases such consenl may be granled or withheld In !he sole discreijon of Lender, EACH UNDERSIGNED GUARANTOR ACKNOWlEDGES HAVING READ All THE PROVISIONS OF THIS GUARANTY AND AGREES TO ITS TERMS. IN ADDITION, EACH GUARANTOR UNDERSTANDS THAT THIS GUARANTY IS EFFECTIVE UPON GUARAHTOR'S EXECUTION AND DElIVERY OF THIS GUARANTY TO lENDER AND THAT THE GUARANTY Will CONTINUE UNTil TERMINATED IN THE MANNER SET FORTH IN THE SECTION TI'Tl.ED "DURATION OF GUARANTY," NO FORMAl ACCEPTANCE BY lENDER IS NECESSARY TO MAKE THIS GUARANTY EFFECTIVE. THIS GUARANTY IS DATED Dr;CEM9,ER 17, 1993. GUARAHTOI}' - .' X__ ---'- .. . ,.. lENDER: - ~-:' .~"'!:'- , By: -fri ;Auth razed Odicer . ~ ~ c2;1--~7 AGREEMENT TO PROVIDE INSURANCE Borrower: Lender: BANKERS SMAIL BUSINESS CDC OF SAN DIEGO COUNTY INC. 5353 MISSION CENTER ROAD, SUITE 218 SAN DIEGO, CA ';1108 INSURANCE REQUIREMENTS. We,'. . rand ("'G<anto<"), unde<stand lhat Insurance ~ge Is Alquired In connection with the extending of a loan or the providing 01 other financial accommodations to us by lender. These Alquiremenis are set forth In the security documents. The following minimum insurance ~ges must be provided on the following described collateral (the "CoIIa1eral"): CoIlater..: All Inventory . equipment and Axtu~es. Type. All risks, Including fire, lheft and liability. Amounl. $1.000,000.00. BasIs. Replacement value. Endoroemenls. lender's loss payable clauoe With stipulation that ~age will not be cancelled or diminished Without a minimum of len (10) days' prior written nolice 10 lender. Deductlbles. $500.00. INSURANCE COMPANY. We may obtain Insurance from any insurance company we may choose thai Is reasonably acceptable to Lender. We understand that credit may not be denied so4e1y because insurance was not purchased through lender. FAILURE TO PROVIDE INSURANCE. We agree 10 ~ to lender, thirty (30) days from the dale 01 this Agreement, evidence of the required 'nsurance as provided above, with an ellec~ve date of October 16, 1995, or earlier. We acknowledge and egree that II we tail to provide any required insurance or lail to continue such insurance in force, lender may do so al our expense as provided in the applicable security documenL The cost of any such insurance, al the oplion of lender, shaU be payable on demand or shan be added to the Indebledness as provided In lhe security documenL WE ACKNOWlEDGE THAT IF LENDER SO PURCHAses ANY SUCH INSURANCE, THE INSURANCE WILL PROVIDE LIMITED PROTECTION AGAINST PHYSICAL DAMAGE TO THE COLLATERAL, UP TO THE BAlANCE OF THE LOAN; HOWeVER, OUR EaunY IN THE COLlATERAL MAY NOT BE INSURED. IN ADDITION, THE INSURANCE MAY NOT PROVIDE ANY PUBLIC LIABILITY OR PROPERTY DAMAGE INDEMNIFICATION AND MAY NOT MEET THE REQUIREMENTS OF ANY FINANCIAl RESPONSIBILITY LAWS. AUTHORIZA TI . or purposes of insurance coverage on the Collateral, we authorize Lender to provide 10 any person (including any Insurance agent or comp ny) al Information lender deems appropriate, whe!her regarding the Collateral, the loan or other financial accommodations, or both. WE ACKNO 4VING READ ALL THE PROVISIONS OF THIS AGREEMENT TO PROVIDE INSURANCIE AND AGREE TO ITS TERMS. THIS AGR ~ENT S DATED OCTOBER 16, 1995. GRANTOR:, I I' <6 x " x x DATfE: AGENT'S NAME: Manager ADDRESS: 4a3O Del Mar Avenue, San DIego, CA 82107 INSURANCE COMPANY: Johnson & Woolley Insurance POLICY NUMBER(S): RAS7810095647 EFFECTIVE DATES: COMMENTS: FOR LlENDER USE ONLY INSURANCE VERIFICATION PHONE: LAseR~O. Reg. U.5. Pat. & T.M. Off.. V... 3.Ukl(c) 1HS CFIProServtc...Inc. Altighlare.erwd.ICA-I10 COCOOOS3.LN CS.OVL) Ll.~ r21/cs? ~.-' '-' DISBURSEMENT REQUEST AND AUTHORIZATION Borrower: . :.:~" Lender: BANKERS SMAIL BUSINESS COC OF SAN DIEGO COUNTY INC. 53<' MISSION CENTER ROAD, SUITE 21. SAN DIEGO, CA 92108 LOAN TYPE. This is a FIXed Rala (1~~ Non-RevoMng Una 01 Credit Loan 10 an Individual for $45,840.00 due on N"""""'- I, 1998. PRIMARY PURPOSE OF LOAN. The primary purpose of this loan Is for (please Initial): o ~X--(,..- Personal. Family, or Household Purposes or Personal Invesfment. Business (Including Real Estale Investmenf). SPECIFIC PURPOSE. The specifIC purpose of this loan is: PrOllide WOt1<ing capital and equipment for stal'l-""P of restaurant __lions. DISBURSEMENT INSTRUCTIONS. Bo<<ower understands lhat no loan proceeds will be disbUfSed until an of Lender's conditions for making the loan have been satisfied. Please disbUfSe !he loan proceeds of $45,840.00 as follows: Undisbursed Funds: Other Charges Financed: $20.00 Tille Registration $5.00 UCC Fees Tolal Financed Prepaid Finance Charges: $25.00 Credit RepOl1 $1,290.00 Points $I.soo.00 Tech. Assl Fees $43,000.00 $25.00 $2,815.00 Nole Principal: $45,840.00 FINANCiAl CONDITION. ~y IGNING THIS AUTHORIZATION, BORROWER REPRESENTS AND WARRANTS TO LENDER THAT THE INFORMATION/pROVID VE IS TRUE AND CORRECT AND THAT THERE HAS BEEN NO ADVERSE CHANGE IN BORROWER'S FINANCiAl CONDITION DISCLOSED IN BORROWER'S MOST RECENT RNANCIAl STATEMENT TO LENDER. THIS AlInIORlZATlON IS DATED OCTOBER 16 '5. BORROWER: x _. - ~, - ~x FkecI Rate. Line Of eredeL LASERPAO. R-o. U.S.PaL & T.M. Ofl.. v...a.1edfcJ 1885 CFI ProServfce&, tnc. Aatlghllr..wved.(CA-I2OCDCOOOSUNCS.OVLI '~2f~~? i -, VERIFICATION OF LIFE INSURANCE POLICY Borrower: .t Lender: Bankers Small Business COC Of San DIego County Inc. 6353 Mission Cenler Road, SUite 21. San Diego, CA 12108 .. . TO: American Slale Llle Insurance 500 N. Meridian Streel Indianapolis, Indiana 46204-1275 DATE 10-16-1995 POLICY NO. Dear Sir Of' Madam: LIFE OF The above-described ile Insurance policy has been sUbmilfed 10 us as collateral security lor loans or olher financiaf aocommodaIions. Will you please furnish us wflh \he loIlowfng InformaUon on life Insurance PoflCy Number 255042. A copy oIlhis feller Is enclosed lor your reply. Bankers Small Business CDC 01 San DIego County Inc. By: 1. Is premium payable: DAnnually DSemi-Annually DOuart8l1y DMonlhly DOIher: 2. Amount of such premium: $ Dale 10 which premium is paid: 3. Cash value al dale 10 which premium Is paid: $ 4. Accumufaled dividends in addition 10 cash value:$ 5. Principal Amounl of loans or tiens on policy. $ 6. Accrued unpaid Inferesl on above loans or liens al 7. Inleresl al_ '" has been paid In advance 10 (dalet.. 8. Are there any exisUng assignments of record? DNO UYes If yes, pfease explain below. Name of holder of Interest: Address: 9. Does lhe policy have automatic premium loan provisions? QN;OYes 10. Is lhe policy payabfe in a lump sum? DNo Dyes II no, pfease ",,!!!:,in below. 11. Is Insured receiving benefits under dlsabitity I'<<>\'!sions al \his date? UNo Dyes If yes, pfease explain below. 12. Beneficiary DesignaUon: EXPlANATIONS: '" will be due \rom (dale): . . DATE /I CO ., NAME Slale Life Insurance BY (0ItIcIaI Signature) ereby requests I wIIh \he above Information. ~ tETURN TO: Bankers Small Business CDC of San DIego County loe. 6353 Mission Center Road, SuIte 218 San Diego, CA tl210a ,. .-:;:. '.," THIS copy TO BE RETURNED TO LENDER .... . " . . 'i~ '" t . 1'><, , . . ,-LASeR PAO. Reg. u.s.....t.. & T.M. Off.. v... a.1edfc) UttsCFI ProSwvtcea.1nc. _ "." ..-.- - ~","-"--'- -., -~. .",. .,. " . AnAfghtaRehrWd.. ~ d f/ ~:.5----g- ^ AGREEMENT TO PROVIDE INSURANCE Borrower: " Lender: BANKERS SMALL BUSINESS COC OF SAN DIEGO COUNTY INC. ' 5353 MISSION CENTER ROAD, SUITE 21a SAN DIEGO, CA e210S .' .. .,,~.. ...~.. . Grantor: .,.~-~ -, ~ . _.._ .0- . INSURANCE REQUIREMENTS. I, ("Granlatj, understand thaI Insurance COWIf'IIge Is required In connection wtth /he exlending 01 a loan CK /he pmviding 01 oIher financial accommodalions 10 TunoIhy FISCher and Karen Asche< ("BOITowerj by lender. These requlremenls are set lorth in /he security documents. The loIowing minimum Insurance COWIf'IIg&S musl be prOllided on !he loUowing de$a;bed COllateral (the "Collateral"): Collateral: 198,( Volk, VIN .' '.. .".. "'~'.": 1,- . -t.: Type. Comprehensive and collision. AmounL FuR insurable value. BasIs. Replaoement value. Endorsements. Lender's loss payabfe ctause with stipulation that coverage will no! be cancelled CK diminished wtthout a minimum of len (10) days' priCK written notice 10 Lender. Collaleral: 19a5 Toy!, VIN " '. : .. _ ... C'.. Type. Comprehensive and collision. AmounL FutI insurable value. Basis. Replaoemenl value. Endorsements. Lender's loss payable ctause with stiputation that COWIf'IIge will not be cancelled CK diminished wtthout a minimum of len (10) days' prior written notice 10 Lender. INSURANCE COMPANY. I may obtain Insurance /rom any Insurance company I may choose thai Is reasonably aooeptable 10 lender. I understand /hal c:redn may noI be denied solely because Insurance was no! purchased through Lender. FAILURE TO PROVIDE INSURANCE. I agree 10 deIi_1o Lendar,lhIt1y (30) days /rom lhe date of !his Agreemen~ evidence 0I/he required insurance as provided above, wtth an effective dale 01 October 16, 1995, CK eat1ier. I acknowiedge and agree lhat n llal 10 provide any required insurance CK /ail 10 continue such Insurance In ICKoe, lender may <10 SO al my expense as proWled In !he app(ocable security documenL The cost 01 any SUCh insurance, at the option of Lender, shan be payable on demand CK shaG be added 10 !he Indebtedness as provided In /he securtty document I ACKNOWLEDGE THAT IF LENDER SO PURCHASES AI>N SUCH INSURANCE, THE INSURANCE Will PROVIDE UMITED PROTECTION AGAINST PHYSICAl DAMAGE TO THE COLlATERAl, UP TO THE BALANCE OF THE LOAN; HOWEVER, MY EQUITY IN THE COLlATERAl MAY NOT BE INSURED. IN ADDmON, THE INSURANCE MAY NOT PROVIDE AI>N PUBLIC UABIUTY OR PROPERTY DAMAGE INDEMNIFICATION AND MAY NOT MEET THE REQUIREMENTS OF AI>N FINANCIAl RESPONSIBIUTY LAWS. AUTHORIZATION. FCK purposes 01 Insurance COWIf'8ge on /he Collateral, I aulhori2e Lender 10 provide to any person ~nc:luding any Insurance agent CK company) al Info<rnation lender deems appropriate, whether regarcino /he Collateral, the loan or other financial accommodations, CK both. I ACKNOWLEDGE HAVING READ ALL THE PROVISIONS OF THIS AGREEMENT TO PROVIDE INSURANce AND AGREE TO ITS TlERMS. THIS AGREEMENT IS DATED OCTOBER 16,1995. GRA'l,T9R: x "- . . x the presence of: .. x FOR ,lENDER USE ONLY INSURANCE VERIFICATION PHONE: DATE: AGENT'S NAME: Manager ADDRESS: 4S3O Del Mar Avenue, San DIego, CAe2107 INSURANCE COMPAI>N: Johnson & WOolley Insurance POlICY NUMBER(S): RAS7a10095647 EFFECTIVE DA1ES: COMMENTS: . . ". - .- . - -. . ~ -'. ...,..~ ..""; ASEI;\ PRO..... u.s. Pat. & T.M. Off... v... a.,edtc) 'tt85CFI ProServicec.1nc.. ".rtghisl'eMrWd.(CA-f'O COCOOo$U.N C5.OVLJ . ~ ;2l/~/ -~- .-. - .- ..::;.~;- '5 '~::; , ....,. ADDENDUM TO PROMISSORY NOTE Additional Interest This Addendum is attached to and made a part of that Promissory Note dated payable by ("Borrower") to Bankers' Small Business CDC of San Diego County,. Inc. ("Lender"). All references in the Promissory Note, this Addendum or any related loan agreement, security agreement or other document (the "Loan Documents') to the 'Note" shall mean both the Promissory Note and this Addendum. In consideration for Lender extending credit to Borrower, as evidenced by this Note, and as additional compensation to Lender for extending such credit without which Lender would not extend such credit, Borrower agrees to the following additional provisions: 1. As additional interest and without affecting Borrower's obligation to repay principal and fixed interest owing under this Note and any other amounts due under the Loan D9Cuments, Borrower agrees to pay Lender percent L-%) of the increase in Borrower's 'Gross Sales" from and after the date of this Note, as calculated and set forth in Exhibit 'A" to this Addendum. 'Gross Sales" means all revenues from the sale, lease or other disposition of any product manufactured, assembled or sold by Borrower or the rendering of any service by Borrower, and any finance charges to customers in connection therewith. "Gross Sales" do not include sales tax receipts required to be accounted for by Borrower to any government or governmental agency. There shall also be deducted from Gross Sales the amount of any actual refunds or credits made by Borrower for returned merchandise, provided the sale of such merchandise was previously included by Borrower in Gross Sales. Gross Sales shall also include all Gross Sales previously defined made by any person or entity controlled by or under common control with Borrower, its controlling persons, shareholders, partners or other beneficial owners, and any spouse of any of the foregoing people (an 'Affiliate"). Gross Sales shall be calculated using the method of accounting practices used by Borrower on the date of this Note, except with Lender's prior written consent. 2. Additional Interest shall accrue as Gross Sales are made from and after the date of this Note and shall continue to accrue until the end of the calendar month in which this Note is paid in full. 3. The amount of Additional Interest payable shall not exceed ten percent (10%) of the original principal amount of the Note. The calculation of the amount of Additional Interest due will be pro-rated for any period less than a full fiscal year. The numerator of the fraction will be the number of the months of such period forwhich Additional Interest is payable and the denominator will be twelve (12). . . \4. Borrowers may prepay this Note in whole or in part at any time except that prepayment in full must be made at the,end of a calendar month and . ..~_'" r (' ~ c2J/'--~t:" accompanied by all accrued Additional Interest. Prepayment will not reduce the amount of Additional Interest due under this Note. 5. Borrower shall keep: (i) full and accurate books of account and records in accordance with this Note and otherwise with generally accepted accounting principals consistently applied, including, without limitation, a sales journal, general ledger, and all bank account statements showing deposits of Gross Sales revenue; (ii) all invoices and billings with regard to the Gross Sales, credits, refunds, and other pertinent transactions (including the Gross Sales of any Affiliates); and (iii) detailed original records of any exclusions or deductions from Gross Sales (including any exclusions or deductions from Gross Sales of any Affiliate). These books, receipts, and records shall be kept for a period of two (2) years after the close if each fiscal year, and shall be available for inspection and audit by lender and lender's representatives at all times during regular business hours. In addition, on request of lender or lender's representatives, Borrower agrees to furnish copies of Borrower's state and local sales and use tax returns, if required to be filed by Borrower. 6. The increase in Gross Sales will be measured against the "Benchmark" which is defined as follows: The Benchmark is the Base amount established at inception of the loan from available financial data supplied by the "Borrower" using either one of the following two calculations: 1) . If interim financial data available covers a period of 6 months or less from "Borrowers" most recent tax return, then Benchmark will equal a monthly average gross sales figure derived as follows: Gross Sales (Tax Returns) + Gross Sales (Interim Financial) X 12 Total Number of Months Calculated 2) If interim financial data available covers a period of more than 6 months from "Borrowers" most recent tax return, then Benchmark will be calculated as follows: Gross Sales (Interim) X 12 Number of Months of Interim Statement For either calculation, Borrower shall furnish .Lender with a statement, to be .' certified as correct by Borrower or the employee of Borrower authorized so to '" ',,' ~ dY~k / certify, that sets forth Borrower's Gross Sales for the period just concluded including any authorized exclusions and deductions. . 7. .Borrower" agrees to file an annual Tax Return in a timely manner, and provide a copy to .Lender" within 30 days of filing. If an annual Tax Return is not available on its required filing date, then borrower shall fumish Lender a statement of Borrower's Gross Sales made during the previous fiscal year, or any partial fiscal year, including any authorized deductions (Annual Sales Statement). Such Annual Sales Statement shall be certified as correct by Borrower, or if Borrower is a corporation, by an authorized officer of Borrower. With each Annual Sales Statement, Borrower shall pay to Lender as Additional Interest an amount as calculated on attached Exhibit "A". If the Tax Return or Annual Sales Statement shows that during the previous fiscal year Borrower paid more Additional Interest than it was obligated to pay under the terms of this Note, the amount of this overpayment shall be applied to the next installment or installments of Additional Interest due or, if the Borrower has paid this Note in full, Lender shall refund to Borrower the full amount of this overpayment within thirty (30) days of Lender's receipt of the statement. 8. Once with respect to each fiscal year and witt]in two (2) years after its end, whether this Note has been paid in full, Lender may cause an audit of Borrower's business by an independent accountant of Lender's own selection, and if any Tax Retums or Annual Statement of Gross Sales for the fiscal year made by Borrower to Lender is found to be more than five percent (5%) less than the amount of the Borrower's actual Gross Sales for the period covered by such statement, Borrower shall immediately pay to Lender the cost of the audit and any Additional Interest shown to be payable by Borrower, together with interest from the original due date at the default rate specified in the Note; otherwise, the cost of this audit shall be paid by Lender. 9. If Borrower fails to provide to Lender a Tax Return or Annual Sales Statement at the time and in the manner specified in this Note, this failure shall constitute a default under this Note, and Lender shall have the right, in addition to any other rights or remedies it may have under this Note, to conduct an audit to determine these sales, and Borrower shall immediately reimburse Lender for the cost of the audit on written demand by Lender. If at any time Borrower causes an audit of Borrower's business to be made by an independent accountant, Borrower shall furnish Lender a copy of the report of this audit at no cost to Lender within ten (10) days after Borrower's receipt of the audit report. 10. The acceptance by Lender of any monies paid to Lender by Borrower as Additional Interest as' shown by a Tax Return or Annual Sales Statement furnished by Borrower shall not be an admission of the accuracy of such statement, or of the sufficiency of the amount of Additional Interest payments. Lender shall be entitled at aoy time within two (2) years from the end of the fiscal year for which any of the Additional Interest payments were payable to question the sufficiency of the amount paid and the accuracy of the statements furnished by Borrower. Borrower shall, for such period of two (2) years;' , including the two (2) years following payment of this Note, keep safe and intact ~,-2Vr-~,-2 all of the records, books, and accounts required under this Note, and shall upon request make these records available to Lender, Lender's auditor, representative, or agent for examination at any reasonable time during this period. 11. If payment of this Note is accelerated by Lender because of Borrower's default, then from and after the time of such default, the Additional Interest shall be deemed to be an amount based upon the average of the Additional Interest that has accrued to Lender under this Note during the twelve (12) months preceding the acceleration, unless the acceleration occurs within one (1) year from the date of this Note, in which event the previous months shall be used as the basis of this average plus any Additional Interest lender in good faith believes is due based on its sole and subjective estimate of Borrower's Gross Sales. 12. Neither the provisions in this Addendum for the computation of Additional Interest, not anyone or more agreements contained in this Note, is intended, deemed, or construed to create a partnership between lender and Borrower, to make them joint venturers, to make lender in any way responsible for the debts or losses of Borrower, or to make lender liable to Borrower or any other party except solely as a lender under the "loan Documents." Agreed to this day of ,19_. By: ~ ;2(-tfJ POWER OF ATTORNEY I, ., the bona fide registered owner 01 the following described motor whicle: 19M VoIk, . .. ,. .. . ;, hereby irrevocably appoint Bankers Small Business CDC of San Diego County Inc. of 5353 MIssion Center Road, Suite 218, San Diego, Caflfornla 82108, Of any-Officer thereof, as my attorney with full authority to execute and record any and aU instruments. affidavits, .certificates of tiUe, renewals. and other documents necessary to effed registration, transfer of tiUe. application for title, and to evidence Bankers Sma. Business COC 01 San Diego County roc.'s security Intereslln the abow described molor whicle, and to do such other things as may be proper pertaining to the title C!f licensing of the motor ...hicIe, In my place and slead. This Power 01 Marney shel noIlerminale or olherwise be affected by my subsequent disability or Incapacity. The undersigned certifies that the transfer of this ...hide Is nolln violation of Article 5. Division 7, of the Vehicle Code I1IIating to the Suspension of registration of motor IIIIhicIes Involwd In accidents. I further agree to guarantee and sa... the State 01 Calffornia, the Registrar of Motor Vehicles, and the D~ecIor of MoIor Vehicles trom al r_onsibifdy which might accrue from the issuance of CalifOC'nia. registration or transfer of such vehicle. Note: An attorney In fact cannot make an affidavit or certifICate of the truth of facts unknown to him. Signed this 16th day Of October, 1995. GRANTOR: x , LASER PAO.Reg. U.$. PaL &. T.M. Off.. Ver. 3.1Sd (c) 1 SKIS CFI PrOServlces. tnc. AUrighlsre.erved.ICA_ESO COCOOO53.1N CS.OVL) ~ ,2r-~L/ <. EXHIBIT E GUARANTY This GUARANTY (the "Guaranty") is made as of 199__ by the City of Chula Vista, a chartered municipal corporation in the State of California ("Guarantor") whose address is 276 Fourth Avenue, Chula Vista, CA 91910, in favor of Banker's Small Business Community Development Corporation, Inc., a California corporation ("Holder"), whose address is 5353 Mission Center Road, Suite 218, San Diego, CA 92108. This Guaranty is entered into pursuant to that certain Border Environmental Commerce Alliance Micro Loan Enterprise Agreement between Guarantor, Holder and CDC Small Business Finance Corporation dated ,. 1996 (the "Enterprise Agreement") . 1. Guarantv Commitment. In order to induce Holder to loan to ("Borrower") the sum of DOLLARS ($ ) to be evidenced by a Promissory Note executed by Borrower and payable to Holder of even date herewith ("Note"), Guarantor guarantees to Holder and to its successors, endorsees, and assigns, payment of a portion of the principal amount of the Note (the "Guaranty Amount") as determined hereunder and subject to the terms and conditions hereof. The Note, together with any and all other documents executed by Borrower and Holder in connection therewith shall be referred to herein collectively as the "Loan Documents". 2. Guarantv Amount. In accordance with Section 2.3.1 of the Enterprise Agreement, the Guaranty Amount hereunder shall initially be DOLLARS ($ ). The maximum amount owed by Guarantor to Holder hereunder shall never exceed such amount. The Guaranty Amount may be adjusted in accordance with the terms and conditions of Section 5 hereof. There shall be no adjustments to a Guaranty Amount as a result of the capitalization of outstanding interest or other upward adjustment to the principal balance owed under the Note whether authorized by the Loan Documents or otherwise. 3. Securitv. This Guaranty is secured by a certificate of deposit purchased in accordance with Section 2.3.3 of the Enterprise Agreement ("Certificate of Deposit"). Upon the repayment of all outstanding principal due under the Note, any and all right, title and interest held by Holder in the Certificate of Deposit shall automatically be released and conveyed to the Guarantor as the Guarantor's sole property. Upon Guarantor's request, Holder agrees to execute and provide to the Guarantor (or its designee) any documentation Guarantor deems necessary or appropriate to reflect such release and conveyance. 1 ~ /' ;2V/~ 5> C 4. Nature of Guarantv; Conditions and Limitations. The liability of Guarantor on this Guaranty is a guaranty of collection and not of payment! and is conditional or contingent on (a) the genuineness, validity, regularity, or enforceability of the Loan Documents or other instruments relating to the obligations hereby guaranteed; and (b) subject to the terms and conditions of Section 5 hereof, the pursuit by Holder of any remedies that it now has or may hereafter have under the Loan Documents. Furthermore, Guarantor shall not be liable under this Guaranty to the extent of: (a) Any material modification, interpretation, or stipulation between any Borrower and Holder, or their respective successors and assigns, with respect to the Loan Documents without Guarantor's written approval; or (b) Holder's waiver of or failure to enforce any of the terms, covenants, or conditions contained in the Loan Documents, or any modification of the Loan Documents without Guarantor's written approval; or (c) Any release of any real or personal property or other security then held by Holder for the performance of the obligations hereby guaranteed without Guarantor's written approval; (d) Any additional obligations created under a new loan or other agreement between Borrower or Holder. 5. Loan Default Proceedinqs. As a condition precedent to the enforcement of this Guaranty, Holder shall follow the procedures terms and conditions set forth in Section 2.5 of the Enterprise Agreement which such Section is incorporated herein by this reference. Upon satisfaction of the procedures, terms and conditions of Section 2.5 of the Enterprise Agreement, and subject thereto, Holder shall be entitled to obtain a portion of the proceeds of the Certificate of Deposit in an amount equal to the Guaranty Amount then in effect, less (a) any adjustments provided thereunder, and (b) any early withdrawal penalties or fees charged by the bank issuing such Certificate of Deposit. The collection procedures under this Section 5 shall be Holder's sole remedy under this Guaranty. 6. Applicabilitv of Civil Code Title 13. Except to the extent otherwise provided herein, or in the event of a conflict, in which case the terms of this Guaranty shall govern, the provisions of California Civil Code Title 13, Sections 2787, et seq, shall apply to govern the relationship between Guarantor and Holder created hereby. 7. Notice. serve any notice, Whenever the parties hereto desire to give or demand, or request with respect to this 2 ~~~# < , Guaranty, each such communication shall be in writing and shall be effective only if it is delivered by personal service or mailed by registered or certified mail, postage prepaid, return receipt requested, addressed as set forth in the first paragraph of this Guaranty. Such communications sent shall be effective when they are received by the addressee thereof; but if sent by registered or certified mail, they shall be effective three (3) days after being deposited in the United States mail. Each party hereto may change its address for such communications by given notice to the other party in conformity with this paragraph. 8. Successors and Assiqns. This Guaranty shall be binding on Guarantor, its heirs, representatives, administrator, executors, successors, and assigns and shall inure to the benefit of and shall be enforceable by Holder, its successors, and assigns. 9. Governinq Law. This Guaranty shall be governed by and construed in accordance with the laws of the State of California. 10. Severability. Every provision of this Guaranty is intended to be severable. In the event any term or provision hereof is declared to be illegal or invalid, for any reason whatsoever, by a court of competent jurisdiction, such illegality or invalidity shall not affect the balance of the terms and provisions hereof, which terms and provisions shall remain binding and enforceable. 11. Time of the Essence. Time is of the essence under this Guaranty and any amendment, modification, or revision of this Guaranty. 12. Entire Aqreement. Except as provided in any other written agreement now or at any time hereafter in force between Holder and Guarantor, this Guaranty, subject to the terms and conditions of the Enterprise Agreement shall constitute the entire agreement of Guarantor with Holder with respect to the subject matter hereof, and no representation, understanding, promise, or condition concerning the subject matter hereof shall be binding on Holder unless expressed herein. 13. Attornevs Fees. In the event that any party hereto shall institute any action or proceeding to enforce, construe, or interpret any rights granted hereunder, the prevailing party in such action or proceeding shall be entitled, in addition to any other relief granted by the Court or other applicable judicial body, to reasonable attorneys' fees and court costs. 3 ~ ~f-;;? [SIGNATURE PAGE] IN WITNESS WHEREOF, Guarantor has executed this Guaranty as of the year and date first above written. GUARANTOR: City of Chula Vista, a chartered municipal corporation By: Title: ACKNOWLEDGED AND AGREED: Banker's Small Business Community Development Corporation, Inc. By: Title: N,\SHARED\ATTORNEY\MIC~LOAN.E2 4 ~,;LI/~Y Wz U)<( 00 D.....J O::LL KO ...J <( LL:J_ OZW o::zel We(~ m;n W ::Ez> :J<(<( Zo ...J I- ...Jw :JI- ~~ W C WW eI!::! ~~ we( :(9 vi '" -u ~S: > ;::R,"ijj?ft o 00 R~(") "E '" '" E.!!! a.- .- a. c.5::Ja. :> C" '" :>W", .o r-- ... N o .o ~ - o :; o IX) .o '0 :; o N ~ o o .o- '" '" o o .o- r-- '" '" LL E ro Oz ~ '" '" ::Ee( mE ;>, >-"x N 0::0 N .. ,;, w...J E ~ I- 0 0 Z 0 0 0 0_ i= ~ 0 0 0 ...J;:5 .o N ~ '" <(- '" I-...J ~~ n: e( u '" '" m U)1ij ~ '" ~ elw 0", 5: ~.9- ZU a. a. ~ .- . (; ~ -0:: OJ:: C:J Uf!! ~uo Zo - 0 :J _ '" ~U) (!)'" - 1:: c: m <= <( .. 0 c~ m~a. UCJ) CJ)(!)CJ) " ;>, <= 0:: .. '" 0 LLO '" (5 01- <= <= we( :; J:: 0 D..m U '" ~G .. I- -- '" .- J:: ::!!: <=.s '" .. Q) I :;;0:: 0:: LLO 01- w<( ::Em e(:J zU ::!!: E .. J:: .. "'E z.f: ro <(ED m~.. miD;;: ~ ;>, "'''' 0", " -"I:: - C g e- Q) ~ "5~"E13 Q.) c:: Q.) ._ I-Wua:: 01---;;) c;7"- ATTACHMENT B ~ M. ~ . " ~ ~ w ~ E 8 ~ '8. j o 6" ~ RESOLUTION NO. l ~ 31Yl RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING ADDITIONAL FUNDS FOR PERSPECTIVE LITIGATION NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula vista does hereby appropriate $60,000 from the unappropriated balance of the General Fund to Account 100-0150- 5202 to pay for perspect~ litigation. pre"~rrx r 0 'OJ Bru e M. Boogaard, City At 60-( 7'