HomeMy WebLinkAboutRDA Agenda Packet 2006/05/09
I declare under penalty of perjury that I am
employed by the City of Chuta Vista in the
Office of the City Clerk and that I posted this ~ ~ r,t..-
nt o:q~~e~:~~~ board according to :~~
~~& slgned/. !Iti:c;/;;-
. LHLJLA VISTA
Stephen C Padilla, Mayor/Chair
Patricia E. Chavez, Council/Agency Member David D. Rowlands, Jr., City ManagerlExecutive Director
John McCann. Council/Agency Member Ann Moore, City Attorney/Agency Counsel
Jerry R. Rindone, Council/Agency Member Susan Bigelow, City Clerk
Steve Castaneda, Council/Agency Member
SPECIAL MEETING OF THE CITY COUNCIL, REDEVELOPMENT AGENCY AND
PUBLIC FINANCING AUTHORITY OF THE CITY OF CHULA VISTA
May 9, 2006
6:00 P.M.
(Immediately following the City Council Meeting)
Council Chambers
City Hall
276 Fourth Avenue
CALL TO ORDER
ROLL CALL: Council/Agency Members Castaneda, Chavez, McCann, Rindone, and
Mayor/Chair Padilla
CONSENT CALENDAR
(Item 1)
The Council/Agency will enact the Consent Calendar staff recommendations by
one motion, without discussion, unless a Council/Agency Member, a member of
the public, or City staff requests that an item be removed for discussion. Jf you
wish to speak on one of these items, please fill out a "Request to Speak" form
(available in the lobby) and submit it to the City Clerk prior to the meeting. Items
pulled from the Consent Calendar will be discussed immediately following the
Consent Calendar.
1. APPROVAL OF MINUTES of February 7, February 14, February 21, March 7,
and March 21, 2006.
Staff recommendation: Council approve the minutes.
ACTION ITEM
The Item listed in this section of the agenda will be considered individually by the
Council/Agency, and is expected to elicit discussion and deliberation. Jfyou wish
to speak on any item, please fill out a "Request to Speak" form (available in the
lobby) and submit it to the City Clerk prior to the meeting.
2. CONSIDERA nON BY THE CITY COUNCIL AND REDEVELOPMENT AGENCY
OF APPROVAL OF AN AGREEMENT WITH THE ACCOUNTING FIRM OF
MORELAND & ASSOCIATES, INC., TO PROVIDE AUDITING SERVICES
Section 1017 of the Chula Vista Charter requires an annual independent audit of the City.
The current five-year agreement with Caporicci & Larson, LLP tenninated with
completion of the June 30, 2005 audit report. A Request for Proposals to provide
auditing services for the City, Redevelopment Agency, and Chula Vista Redevelopment
Corporation was sent to 40 auditing finns. Four proposals were received and evaluated
by a five-person selection committee. (Finance Director/Treasurer)
Staff recommendation: Council adopt the following resolution:
JOINT RESOLUTION OF THE CITY COUNCIL AND THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
APPROVING AN AGREEMENT WITH THE ACCOUNTING FIRM OF
MORELAND & ASSOCIATES, INC. TO PROVIDE AUDITING SERVICES,
AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT
OTHER BUSINESS
3. CITY MANAGER/DIRECTOR'S REPORTS
4. MAYOR/CHAIR'S REPORTS
5. COUNCIL/AGENCY MEMBER'S COMMENTS
ADJOURNMENT City Council adjourns to the Regular Meeting of May 16,2006 at 6:00
p.m. in the Council Chambers; Redevelopment Agency adjourns to the
Regular Meeting of May 16, 2006 following the City Council Meeting;
and the Public Financing Authority adjourns until further notice.
In compliance with the
AMERICANS WITH DISABILITIES ACT
The City of CllUla Vista requests individuals who require special accommodations to access, attend, and/or participate in a City
meeting. activity. or service request such accommodation at least forty-eight hours in advance Jor meetings and jive days for
scheduled sen'ices and activities. Please contact the City Clerk for specific information at (6/9) 691-5041 or
Telecommunications Devicesfor the DeaJ(TDD) at (619) 585-5655 California Relay Service is also available/or the hearing
impaired.
Page 2 CounciVRDA Agenda
http://www.chulavistaca.gov
May 9, 2006
MINUTES OF ADJOURNED REGULAR MEETINGS OF
THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY AND
A SPECIAL MEETING OF THE PUBLIC FINANCING AUTHORITY
OF THE CITY OF CHULA VISTA
February 7, 2006
4:00 P.M.
Adjourned Regular Meetings of the City Council and the Redevelopment Agency and a Special
Meeting of the Public Financing Authority of the City ofChula Vista were called to order at 6:00
p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California.
ROLL CALL
PRESENT: Agency/Authority/Councilmembers Castaneda, Chavez, McCann,
Rindone, and Chair/Mayor Padilla
ABSENT: Agency/ Authority/Councilmembers: None
ALSO PRESENT: Executive Director/City Manager Rowlands, Agency/Authority/
City Attorney Moore, City Clerk Bigelow
At 6:01 p.m., Chair/Mayor Padilla recessed the meeting. He reconvened the meeting at 6:22
p.m., with Agency/Authority/Councilmembers Castaneda and Rindone absent from the dais.
PUBLIC COMMENTS were taken out of order and heard following Items I and 2.
PUBLIC HEARING OF THE CITY COUNCIL/PUBLIC FINANCING AUTHORITY
1. CONSIDERATION BY THE CITY COUNCIL OF THE CITY OF CHULA VISTA
AND THE CHULA VISTA PUBLIC FINANCING AUTHORITY OF THE
EXECUTION, SALE AND DELIVERY OF CERTIFICATES OF PARTICIPATION IN
ORDER TO FINANCE CERTAIN PUBLIC CAPITAL IMPROVEMENTS
Pursuant to City Charter Section 1017, an annual audit is performed of the City's
financial records. Presented for acceptance were the Audited Financial Statements for
the fiscal year ended June 30, 2005, as prepared by the independent audit firm of
Caporicci & Larson. Both the City's and the Agency's Annual Financial Reports received
unqualified (clean) opinions ftom the independent audit firm. (Finance Director)
(Director of Finance)
Notice of the hearing was given in accordance with legal requirements, and the hearing was held
on the date and at the time specified in the notice.
Chair/Mayor Padilla opened the public hearing. There were no members of the audience
wishing to speak.
JAt
PUBLIC HEARING (Continued)
Agency/Authority Attorney Moore requested that the item be continued to February 14, 2006,
due to further research required as to whether or not Council! Authority/ Agencymember
Castaneda has a potential conflict of interest with regard to property he is purchasing that is
presently in escrow.
ACTION:
ChairlMayor Padilla moved to continue the hearing to February 14, 2006, at the
request of the City Attorney. Agency/Authority/Councilmember McCann
seconded the motion, and it carried 3-0-2, with Agency/Authority/Councilmember
Rindone abstaining because he owns property within 500 feet of the Civic Center
project; and Agency/Authority/Councilmember Castaneda abstaining due to a
potential conflict of interest because he recently entered into escrow on a property
that may be within 500 feet.
At 6:25 p.m., Agency/Authority/Councilmembers Rindone and Castaneda returned to the dais.
ACTION ITEM
2. CONSIDERATION BY THE CITY COUNCIL/REDEVELOPMENT AGENCY OF
WITHHOLDING ALL FUTURE STIPENDS FOR MEMBERS OF THE CHULA
VISTA REDEVELOPMENT CORPORATION (CVRC) FOR A PERIOD EQUAL TO
THE PERIOD THE STIPEND WAS PAID TO CURRENT MEMBERS PRIOR TO
THE FIRST CVRC MEETING BEING HELD
At the Council meeting of January 24, 2006, Councilmember Rindone requested that a
resolution be prepared authorizing all future stipends to current members serving on the
Chula Vista Redevelopment Corporation (CVRC) board to be withheld, effective
February 1,2006, for a period equal to the number of months that stipends were paid to
current members prior to the first CVRC meeting. (Assistant City ManagerlDirector of
Community Development, Director of Finance)
ACTION:
Agency/Authoirty/Councilmember Rindone offered Council Resolution No.
2006-034 and Redevelopment Agency Resolution No. 2006-1934, headings read,
texts waived:
JOINT COUNCIL RESOLUTION NO. 2006-034 AND
REDEVELOPMENT AGENCY RESOLUTION NO. 2006-1934, OF
THE CITY OF CHULA VISTA TO WITHHOLD ALL FUTURE
STIPENDS FOR MEMBERS OF THE CHULA VISTA
REDEVELOPMENT CORPORATION (CVRC) FOR A PERIOD
EQUAL TO THE PERIOD THE STIPEND WAS PAID TO CURRENT
MEMBERS PRIOR TO THE FIRST CVRC MEETING BEING HELD
The motion carried 5-0.
Page 2 - Council/Redevelopment Agency/Public Financing Authority Minutes
hap;/ /\vw\v.r hula vistaca. go\,
February 7, 2006
/II,J--
PUBLIC COMMENTS
Don Rickard spoke about ongoing traffic and speeding problems on Oaklawn Avenue, between
K and L Streets. He also spoke of a homecare facility next door to his home that he believes is a
drug rehabilitation facility. He expressed concern about who controls treatment for the
occupants of the facility, stating that there have been fights resulting in calls for ambulance and
police services. He was also concerned about the presence of a daycare center located directly
behind the rehabilitation facility. Mayor Padilla referred the matter to Constituent Services
Manager Zaneta Encarnacion.
CITY COUNCIL/REDEVELOPMENT AGENCY WORKSHOP
3. WESTERN CHULA VISTA REVITALIZATION: POPULATION, MARKET AND
HOUSING TRENDS
The focus of the City Council/Redevelopment Agency workshop was on the competing
priorities between the need for economic revitalization in western Chula Vista and the
potential effects urban revitalization may have on population and housing. The potential
loss of rental housing was addressed, and staff provided policy alternatives for the
Council/Agency to consider in addressing the balance of revitalization efforts with the
needs of the City's lower income residents.
At 6:41 p.m., Chair/Mayor Padilla announced that he would be leaving the meeting, and handed
the gavel to Agency/Authority/Councilmember McCann. He then left the meeting and did not
return.
Assistant City Manager Smith, Housing Manager Mills, and Real Property Manager Ryals gave
a presentation on western Chula Vista revitalization and its effects on population, housing, and
market trends.
Jim Doud asked the procedure for businesses required to relocate as part of a redevelopment
project. Real Property Manager Ryals responded that there are guidelines similar to those
followed for residential tenants, and that he would supply the information to Mr. Doud.
Norma Runyan expressed concern with the condition of industrial establishments from Palomar
to L Street and speeding vehicles in that area; and also mentioned the need for additional curbs
on Naples and L Street. In addition, she asked about rumors that some mobilehome park would
be closed. Housing Manager Mills replied that no applications are currently on file with the City
to close a mobilehome park. She added that the City has heard, via the public, of two trailer
parks along Broadway that may be changing ownership and possibly closing, but the City has
received no confirmation ofthis.
Jackie Lancaster requested that redevelopment decisions be citizen driven, rather than market
driven; and expressed concern about families that would be displaced as a result of
redevelopment. She also expressed opposition to high-rise development on the bayfront.
Page 3 - COlmcillRedevelopment Agency/Public Financing Authority Minutes
httJli[}vww .chula v.:..istaca. gQY
February 7,2006
/1;-3
CITY COUNCIL/REDEVELOPMENT AGENCY WORKSHOP (Continued)
Laura Hunter, representing the Environmental Health Coalition (EHC,) urged the Council to
direct staff to look at all the recommendations regarding the Housing Policy issues and, in
particular, to amend the outdated condominium conversion policy. She stated that EHC would
not support the expansIon of the redevelopment project area without further discussing how it
would work. Ms. Hunter recommended that the City focus and prioritize as much of its
affordable housing efforts on low- and very low-income rental units in the next five year cycle,
and raise additional funding for this by increasing the percent of tax increment for affordable
housing to 30 percent. She stated that it was important to have a case manager who can relate to
people in order to assist them through the process.
Patricia Aguilar, representing Crossroads II, stated that the City has a moral obligation to ensure
that low income, elderly, and disabled community members are provided for. She endorsed
staffs recommendations, with the following additional comments: (1) consideration should be
given to including more residential areas in the redevelopment project area boundaries in light of
the applicability of eminent domain; (2) a cap should be set on fees that can be paid in lieu of
building units; (3) condominium conversion projects should provide 10 percent in affordable
units; (4) a short term rental assistance program should be developed and funded; (5)
condominium conversions on the east side should be limited in order to retain housing stock; (6)
community impact reports should be required on a project-by-project basis; and (7) private
developers should be required to provide relocation assistance to the most vulnerable
populations. Ms. Aguilar asked the Council to enact the staffs recommendations along with the
Urban Core Specific Plan or the Housing Element.
Nick Aguilar expressed the need for a revenue source to fund staff s proposals and to attract
more revenue-generating facilities and activities to provide funding for subsidized housing. He
encouraged greater emphasis on competing and attracting subsidized housing funds at both the
state and federal levels. He also suggested a social services element to provide service programs
for low-income residents, such as transportation and entertainment. Additionally, he
recommended collaboration between the City and local schools to provide a learning resource
facility; and with the San Diego County Social Services Department to provide counseling and
employment training.
Steve Palma suggested that, although he does not support the use of eminent domain, the City
purchase the numerous storage facilities located south of Main Street and develop the land as a
park. He expressed his desire to see more Community Development Block Grant funds allocated
to improvements in the Otay area and on Third Avenue near Oxford. He also said he was
pleased to see the adoption of the City's 20/20 General Plan.
Anne Wilson, Director of Real Estate Development for Community Housing Works, stated that
staffs recommendations are important to protect, preserve, and provide opportunities to the
residents. She supported the need for the Council to take action to help encourage and provide
incentives to property owners to sell to non-profits; and to use available subsidies to maintain
affordable housing over time. Regarding the expansion of redevelopment areas, she urged the
Council to look at the ability of those areas to sustain increased growth and revitalization. She
also mentioned how rarely eminent domain has been used in the City, stating that the power of
friendly condemnation is really important in assembling sites in redevelopment areas and in
providing tax incentives. She encouraged the Council to facilitate affordable housing
development within the Urban Core early in the revitalization process, and also encouraged land
banking.
Page 4 - Council/Redevelopment Agency/Public Financing Authority Minutes
httD: //\\'\\'\v.c hula vistaca. gu\:,
February 7, 2006
1ft -f-
CITY COUNCIL/REDEVELOPMENT AGENCY WORKSHOP (Continued)
Earl Jentz spoke about market rate affordable housing and suggested that the Growth
Management Oversight Commission look at thresholds that would provide controls in the event
that the market gets overheated; and also look at the vacancy rate that is published tWIce a year
through the apartment association magazine. He also recommended that staff compile applicant
data as to how many units were there before, what the rates were, and the number of new units
being provided. Additionally, he believed that if the vacancy rate were high, there should be no
controls; and a partial moratorium should be implemented when vacancy rates needed to be
slowed down.
Mr. Scott referred to the population characteristics of the report, stating that the County of San
Diego has estimated an increase in population of 803,805 over the next 25 years, with Chula
Vista expected to absorb I I percent of the growth. He questioned the City's projection of a 22
percent population increase on the west side. He also addressed housing ownership patterns and
expressed concern about the conversion of apartment units to condominiums on the west side
and the proposed rules associated with the inclusionary policy.
Katherine Lembo, representing South Bay Community Services, spoke in support ofreducing the
low and moderate-income target for affordable housing and consideration of taking over a motel
or hotel to develop affordable housing. She also suggested that the number of bedrooms for low
income housing be increased to three and four, and she commented on the importance of land
banking.
City Manager Rowlands stated that the objectives discussed would only occur with development
in the City. He stressed the importance of constructive, honest, tree-flowing dialogue between
the City and the community in order to accomplish the City's many goals.
With regard to eminent domain, Agency/Authority/Councilmember Rindone asked staff to
document in the report when eminent domain has been used and for what purpose.
Agency/Authority/Councilmember Castaneda suggested that Policy No.6 be included to address
the preservation of existing housing units serving the lowest income residents. He expressed the
need to provide incentives to rental housing owners to upgrade their properties in exchange for
commitments on rent stabilization. He also recommended that the Growth Management
Oversight Commission review the number of units that are consumed by redevelopment, new
development, and non-redevelopment areas, and their impacts on the very lowest income
families; and also look at the existing housing stock and how to efficiently serve those who are
most in need.
Agency/Authority/Councilmember Rindone stated that nothing was mentioned about schools in
the report; and he suggested that future workshops be conducted with each school district to
examine future growth and higher densities.
No formal action was taken on this item.
Page 5 - Council/Redevelopment Agency/Public Financing Authority Minutes
http://www ,chulavistaca. goy
February 7,2006
/fJ-5
OTHER BUSINESS
4. CITY MANAGER REPORTS
There were none.
5. MAYOR'S REPORTS
There were none.
6. COUNCIL COMMENTS
There were none.
ADJOURNMENT
At 9:03 p.m., Deputy Mayor McCann adjourned the meeting to a Regular Meeting of the City
Council on February 14, 2006 at 6:00 p.m. in the Council Chambers; and thence to a Regular
Meeting of the Redevelopment Agency on February 21, 2006 at 6:00 p.m. in the Council
Chambers, following the City Council Meeting. The Public Financing Authority was adjourned
until further notice.
-~~i~
Susan Bigelow, MMC, City Clerk
Page 6 - Council/Redevelopment Agency/Public Financing Authority Minutes
hj.!P..;L'lY.w~:..:"~Jmlavistaca.gOV '/ /)
/11- Lf/
February 7, 2006
MINUTES OF ADJOURNED REGULAR MEETINGS OF
THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY AND
A SPECIAL MEETING OF THE PUBLIC FINANCING AUTHORITY
OF THE CITY OF CHULA VISTA
February 14,2006
6:00 P.M.
Adjourned Regular Meetings of the City Council and the Redevelopment Agency and a Special
Meeting of the Public Financing Authority of the City ofChula Vista were called to order at 9:44
p,m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California.
ROLL CALL
PRESENT: Agency/Authority/Councilmembers Castaneda, Chavez, McCann,
Rindone, and Chair/Mayor Padilla
ABSENT: Agency/Authority/Councilmembers: None
ALSO PRESENT: Executive Director/City Manager Rowlands, Agency/Authority/
City Attorney Moore, City Clerk Bigelow
CONSENT CALENDAR
(Item I)
I. CONSIDERATiON OF ACCEPTANCE BY THE CITY COUNCIL,
REDEVELOPMENT AGENCY AND PUBLIC FINANCING AUTHORITY OF
AUDITED FINANCIAL STATEMENTS FOR FISCAL YEAR ENDED JUNE 30, 2005
Pursuant to City Charter Section !O17, an annual audit is perfonned of the City's
financial records. Presented for acceptance are the Audited Financial Statements for the
fiscal year ended June 30, 2005, as prepared by the independent audit finn of Caporicci
& Larson, Both the City's and the Agency's Annual Financial Reports received
unqualified opinions from the independent audit finn. (Finance Director)
Staff recommendation: Council/Agency/Authority accept the audited financial
statements for fiscal year ended June 30, 2005.
ACTiON:
Agency/Authority/Councilmember Rindone moved to accept the audited financial
statements for fiscal year ended June 30, 2005. Chair/Mayor Padilla seconded the
motion, and it carried 5-0,
PUBLIC COMMENTS
There were none.
PUBLIC HEARING OF THE CITY COUNCIL/PUBLIC FINANCING AUTHORITY
2. CONSIDERATiON BY THE CITY COUNCIL OF THE CITY OF CHULA VISTA
AND THE CHULA VISTA PUBLIC FINANCING AUTHORITY OF THE
EXECUTiON, SALE AND DELIVERY OF CERTiFICATES OF PARTiCIPATiON IN
ORDER TO FINANCE CERTAIN PUBLIC CAPITAL IMPROVEMENTS (Continued
from February 7, 2006)
/8-/
PUBLIC HEARING (Continued)
Adoption of the resolutions approves funding for the second component of the Civic
Center Complex renovation (Public Services Building) and interior exhibit improvements
in the Nature Center. (Finance Director)
Notice of the hearing was given in accordance with legal requirements, and the hearing was held
on the date and at the time specified in the notice.
Chair/Mayor Padilla opened the public hearing.
Agency/Authority/Councilmember Rindone stated that he would abstain from voting on Items
2A and 2C, because his residence is within 500 feet of the Civic Center complex. He then
recused himself and left the dais at 9:46 p.m.
Items 2A and 2C were taken out of order and discussed prior to Items 2C and 2D.
Agency/Authority/Councilmember Castaneda expressed the need to update the development fees
as soon as possible and to begin discussions with developers.
With no members of the public wishing to speak, Chair/Mayor Padilla closed the public hearing.
ACTION:
Agency/Authority/Councilmember Castaneda offered Council Resolution No.
2006-051 and Public Financing Authority Resolution No. 2006-010, headings
read, texts waived:
A. RESOLUTION NO. 2006-051, RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF CHULA VISTA MAKING REQUIRED
FINDINGS AUTHORIZING THE EXECUTION AND DELIVERY OF
DOCUMENTS RELATING TO THE SALE AND DELIVERY OF NOT
TO EXCEED $20,000,000 2006 CERTIFICATES OF PARTICIPATION,
(CIVIC CENTER COMPLEX PROJECT PHASE 2),
APPROPRIATING THE NET PROCEEDS THEREOF TO THE CIVIC
CENTER COMPLEX PROJECT (GG-200), AND AUTHORIZING
REIMBURSEMENT OF UP TO $4,296,950 TO THE PFDIF FUND
FROM PROCEEDS OF THE SALE OF THE CERTIFICATES OF
PARTICIPATION, AND AUTHORIZING AND DIRECTING CERTAIN
ACTIONS IN CONNECTION THEREWITH
C. PUBLIC FINANCING AUTHORITY RESOLUTION NO. 2006-010,
RESOLUTION OF THE PUBLIC FINANCING AUTHORITY OF THE
CHULA VISTA PUBLIC FINANCING AUTHORITY APPROVING
THE EXECUTION AND DELIVERY OF DOCUMENTS IN
CONNECTION WITH THE SALE AND DELIVERY OF THE 2006
CERTIFICATES OF PARTICIPATION (CIVIC CENTER PROJECT-
PHASE 2) IN A PRINCIPAL AMOUNT NOT TO EXCEED
$20,000,000, AND AUTHORIZING AND DIRECTING CERTAIN
ACTIONS IN CONNECTION THEREWITH
The motion carried 4-0-1, with Agency/Authority/Councilmember Rindone
abstaining because his residence is within 500 feet of the Civic Center complex.
Page 2 - CounciURedevelopment Agency/Public Financing Authority Minutes
http://www.chulavistaca.gov
February 14,2006
/13-:+
PUBLIC HEARING (Continued)
Agency/ Authority/Councilmember Rindone returned to the dais at 9:59 p.m.
ACTION:
Agency/ Authority/Councilmember McCann offered Council Resolution No.
2006-052, and Public Financing Authority Resolution No. 2006-011, headings
read, texts waived:
B. RESOLUTION NO. 2006-052, RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF CHULA VISTA MAKING REQUIRED
FINDINGS AUTHORIZING THE EXECUTION AND DELIVERY OF
DOCUMENTS RELATING TO THE SALE AND DELIVERY OF NOT
TO EXCEED $2,500,0002006 CERTIFICATES OF PARTICIPATION
(NATURE CENTER PROJECT), APPROPRIATING THE NET
PROCEEDS THEREOF TO THE NATURE CENTER PROJECT (GG-
175) AND AUTHORIZING REIMBURSEMENT OF UP TO $1,536,949
TO THE GENERAL FUND FOR MONIES PREVIOUSLY SPENT ON
THE PROJECT FROM THE SALE OF THE CERTIFICATES OF
PARTICIPATION, AND AUTHORIZING AND DIRECTING CERTAIN
ACTIONS IN CONNECTION THEREWITH
D. PUBLIC FINANCING AUTHORITY RESOLUTION NO. 2006-011,
RESOLUTION OF THE CHULA VISTA PUBLIC FINANCING
AUTHORITY APPROVING THE EXECUTION AND DELIVERY OF
DOCUMENTS IN CONNECTION WITH THE SALE AND DELIVERY
OF THE 2006 CERTIFICATES OF PARTICIPATION (NATURE
CENTER PROJECT) IN A PRINCIPAL AMOUNT NOT TO EXCEED
$2,500,000 AND AUTHORIZING AND DIRECTING CERTAIN
ACTIONS IN CONNECTION THEREWITH
The motion carried 5-0.
OTHER BUSINESS
3. CITY MANAGER/DIRECTOR'S REPORTS
There were none.
4. MAYOR/CHAIR'S REPORTS
There were none.
5. COUNCIL/AGENCY MEMBER'S COMMENTS
There were none.
Page 3 - Council/Redevelopment AgencylPublic Financing Authority Minutes
http://www.chulavistaca.gov
February 14, 2006
j/!3r3
CLOSED SESSION
There was none.
ADJOURNMENT
At 10:00 p.m., Chair/Mayor Padilla adjourned the meeting to the Regular Meeting of February
21,2006 at 6:00 p.m. in the Council Chambers.
~tu-t~[::J D )
Susan Bigelow, MMC, City Clerk
Page 4 - Council/Redevelopment Agency/Public Financing Authority Minutes
http://www.chulavistaca.gov
/13-4
February 14, 2006
MINUTES OF ADJOURNED REGULAR MEETINGS OF
THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY
OF THE CITY OF CHULA VISTA
February 2 1,2006
6:00 P.M.
Adjourned Regular Meetings of the City Council and the Redevelopment Agency of the City of
Chula Vista were called to order at 9:00 p.m. in the Council Chambers, located in City Hall, 276
Fourth Avenue, Chula Vista, California.
ROLL CALL:
PRESENT: Council/Agency Members: Castaneda, Chavez, McCann, Rindone and
Mayor/Chair Padilla
ABSENT:
Council/Agency Authority Members: None
ALSO PRESENT: City Manager/Executive Director Rowlands, City Attorney/
Agency Counsel Moore, and City Clerk Bigelow
CONSENT CALENDAR
(Item 1)
1. RESOLUTION NO. 2006-060, RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CHULA VISTA WAIVING A POTENTIAL CONFLICT OF INTEREST
WITH RESPECT TO PROPOSED REPRESENTATION OF SUPERIOR READY MIX
CONCRETE
Former Senior Assistant City Attorney Glen R. Googins requested that the City Attorney
confirm that Mr. Googins' prospective representation of Superior Ready Mix Concrete
did not present a conflict of interest that must be waived pursuant to California Rules of
Professional Conduct 3-31 OeD). The decision to waive a potential conflict of interest lies
with the City Council. Although there is always the potential for future conflict, it does
not appear at this time that the interests of Mr. Googins' prospective client are adverse to
the City. Accordingly, it is recommended that the City Council waive any potential
conflict arising trom the limited scope of the proposed representation. (City Attorney)
Staff recommendation: Council adopt the resolution.
ACTION:
Chair/Mayor Padilla moved to approve stars recommendation and offered the
Consent Calendar, heading read, text waived. The motion carried 5-0.
PUBLIC COMMENTS
There were none.
/c-/
OTHER BUSINESS
2. CITY MANAGLR/DIRECTOR'S REPORTS
There were none.
3. MA YOR/CHAIR'S REPORTS
There were none.
4. COUNCIL/AGENCY MEMBER'S COMMENTS
There were none.
ADJOURNMENT
At 9:01 p.m., Chair/Mayor Padilla adjourned the meeting to the Regular Meeting of March 7,
2006 at 4:00 p.m. in the Council Chambers.
~1~MC~r~
Page 2 Council/RDA Minutes
http://www.chulavistaca.gov 1
/ c> ;;A
February 21,2006
MINUTES OF ADJOURNED REGULAR MEETINGS OF
THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY
OF THE CITY OF CHULA VISTA
March 7, 2006
4:00 P.M.
Adjourned Regular Meetings of the City Council and the Redevelopment Agency of the City of
Chula Vista were called to order at 6:16 p.m. in the Council Chambers, located in City Hall, 276
Fourth Avenue, Chula Vista, California.
ROLL CALL:
PRESENT: Council/Agency Members: Castaneda, Chavez, McCann, and Rindone
ABSENT: Council/Agency Authority Members: Chair/Mayor Padilla (excused)
ALSO PRESENT: City Manager/Executive Director Rowlands, City Attorney/
Agency Counsel Moore, and City Clerk Bigelow
CONSENT CALENDAR
(Item 1)
1. APPROVAL OF MINUTES ofJanuary 10,2006.
Staffrecommendation: Council approve the minutes.
ACTION:
Agency/Councilmember McCann moved to approve staff's recommendation and
offered the Consent Calendar, heading read, text waived. The motion carried 4-0.
ITEMS REMOVED FROM THE CONSENT CALENDAR
There were none.
PUBLIC COMMENTS
There were none.
ACTION ITEM
2. CONSIDERATION BY THE CITY COUNCIL AND THE REDEVELOPMENT
AGENCY OF AUTHORIZING THE CITY MANAGER/EXECUTIVE DIRECTOR TO
SIGN A PETITION PROPOSING THE RENEWAL AND EXPANSION OF THE
DOWNTOWN CHULA VISTA PROPERTY-BASED BUSINESS IMPROVEMENT
DISTRICT ON BEHALF OF THE CITY AND AGENCY
I D-I
ACTION ITEM (Continued)
The City of Chula Vista owns property located within the proposed Property Based
Business Improvement District (PBm) boundaries. The Downtown Chula Vista PBm is
legally required to petition all property owners located within the proposed PBID
boundaries as part of its renewal process. Adoption of the resolution authorizes the City
Manager to sign the PBm petition on behalf of the City for all City-owned parcels
located within the proposed PBm boundaries. (Assistant City Manager/Community
Development Director)
Agency/Councilmember Castaneda stated that he would abstain from discussion and voting on
the item due to property he recently purchased that is within 500 feet of the proposed PBm area.
Senior Community Development Specialist Jones presented an overview of the PBID.
Stan Jasek, Director of the Downtown Business Association, introduced Kristin Lowell,
Assessment Engineer for the PBm renewal, and Dr. Richard Freeman, Senior Minister for the
Community Congregational Church and Downtown Business Association board member. Mr.
Jasek reported that as a result of the Urban Core Specific Plan's vision for the downtown area,
the Downtown Business Association will now be referred to under a new name, Third Avenue
Village Association.
Ms. Lowell discussed the technical aspects of the PBID.
Dr. Freeman explained that the PBm would continue to provide enhanced maintenance,
economic development, knowledge and expertise, problem solving, communications, advocacy,
and marketing.
Mr. Jasek spoke about the City's rapid growth and the reliance on assistance from associations
and volunteers to enhance the downtown district.
Pamela Bensoussan talked about her participation on the Design Committee for the Third
Avenue Village Association, and the long list of projects that the group is working on and will
bring forward in the future for Council consideration.
Patricia Aguilar, representing Crossroads II, reported that Mr. Jasek previously presented the
proposed PBID to the Crossroads Steering Committee, who voted unanimously to support both
the renewal and expansion of the PBID. Ms. Aguilar believed that Third Avenue is the heart of
the City and expressed her desire to see the area revitalized and thrive without losing its unique
character. She urged the Council, on behalf of Crossroads II, to authorize the City Manager to
sign the petition on behalf of the City.
ACTION:
Agency/Councilmember Rindone offered Council Resolution No. 2006-077 and
Redevelopment Agency Resolution No. 1935, heading read, text waived:
Page 2 - JI. CounciVRDA Minutes
http://www.chulavistaca.gov / V - d-
March 7, 2006
ACTION ITEM (Continued)
COUNCIL RESOLUTION NO. 2006-077, AND REDEVELOPMENT
AGENCY RESOLUTION NO. 1935, RESOLUTION OF THE CITY
COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY
OF CHULA VISTA AUTHORIZING THE CITY MANAGER!
EXECUTIVE DIRECTOR TO SIGN THE PETITION PROPOSING THE
RENEWAL AND EXPANSION OF THE DOWNTOWN CHULA
VISTA PROPERTY-BASED BUSINESS IMPROVEMENT DISTRICT
ON BEHALF OF THE CITY AND AGENCY
The motion carried 3-0- I, with Agency/Councilmember Castaneda abstaining due
to property that he recently purchased that is within 500 feet of the proposed
PBm area.
OTHER BUSINESS
3. CITY MANAGER/DIRECTOR'S REPORTS
There were none.
4. MAYOR/CHAIR'S REPORTS
There were none.
5. COUNCIL/AGENCY MEMBER'S COMMENTS
There were none.
ADJOURNMENT
At 6:49 p.m., Agency/Councilmember McCann adjourned the meeting to the Regular Meeting of
March 14, 2006 at 6:00 p.m. in the Council Chambers.
-~~~'t'~
Susan Bigelow, MMC, City Clerk
Page 3 - It. CouncillRDA Minutes
http://www.chulavistaca.gov I b -3
March 7, 2006
MINUTES OF ADJOURNED REGULAR MEETINGS OF
THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY
OF THE CITY OF CHULA VISTA
March 21, 2006
6:00 P.M.
Adjourned Regular Meetings of the City Council and the Redevelopment Agency of the City of
Chula Vista were called to order at 7:28 p.m. in the Council Chambers, located in City Hall, 276
Fourth Avenue, Chula Vista, California.
ROLL CALL:
PRESENT: Council/Agency Members: Castaneda, Chavez, McCann, Rindone and
Padilla
ABSENT: Council/Agency Authority Members: None
ALSO PRESENT: Assistant City Manager Thomson, City Attorney Moore, and
Senior Deputy City Clerk Peoples
CONSENT CALENDAR
(Item I)
Agency/Councilmembers Castaneda and Rindone announced that they would abstain from
voting on Items IA and IB, due to the proximity of their properties to the redevelopment area.
I A. RESOLUTION NO. 2006-089, RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CHULA VISTA APPROVING THE BORROWING OF FUNDS BY THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FROM
CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY AND
PROVIDING OTHER MATTERS RELATING THERETO
B. AGENCY RESOLUTION NO. 2006-1936, RESOLUTION OF THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA AUTHORIZING
AND DIRECTING EXECUTION OF LOAN AGREEMENT RELATING TO THE
ISSUANCE OF CERTAIN BONDS BY THE CALIFORNIA STATEWIDE
COMMUNITIES DEVELOPMENT AUTHORITY, APPROVING OFFICIAL
STATEMENT RELATING TO SUCH BONDS, AND AUTHORIZING AND
APPROVING OTHER MATTERS RELATING THERETO
As part of the effort to balance the 2005/2006 budget of the State of California,
redevelopment agencies are again obligated to make payments totaling $250 million to
the Educational Revenue Augmentation Fund (ERAF). The Chula Vista Redevelopment
Agency's 2005/2006 ERAF obligation is $900,367. The CRA/ERAF Loan Program
allows agencies to spread the payment over the next ten years. The Agency participated
in this program in 2005 and is proposing to participate again in 2006. Under this year's
program, the Agency's total borrowing would not exceed $1,100,000. Annual payments
are not anticipated to exceed 17% of the Agency's ERAF obligation, or approximately
$153,062. (Finance Director)
Staff recommendation: Council/Agency adopt the resolutions.
/ E- /
CONSENT CALENDAR (Continued)
ACTION:
Agencymember/Deputy Mayor McCann moved to approve staffs
recommendation and offered the Consent Calendar, headings read, texts waived.
The motion carried 3-0-2, with Agency/Councilmembers Castaneda and Rindone
abstaining on Items lA and lB, since they live within 500 feet of the
redevelopment area.
ITEMS REMOVED FROM THE CONSENT CALENDAR
There were none.
PUBLIC COMMENTS
There were none.
OTHER BUSINESS
2. CITY MANAGERlDIRECTOR'S REPORTS
There were none.
3. MAYOR/CHAIR'S REPORTS
There were none.
4. COUNCIL/AGENCY MEMBER'S COMMENTS
There were none.
ADJOURNMENT
At 7:30 p.m., Council/Agency Member Padilla adjourned the meeting to the Regular Meeting of
April 4, 2006 at 4:00 p.m. in the Council Chambers.
cx~~~~
Lori Anne Peoples, CMC, Senior Deputy City Clerk
Page 2 - Jt.CounciIlRDA Action Agenda http://www.chu1avistaca.gov I E - d-
March 21, 2006
JOINT CITY COUNCIL/REDEVELOPMENT AGENCY
AGENDA STATEMENT
ITEM: :A
MEETING DATE: 5/09/2006
ITEM TITLE:
JOINT RESOLUTION OF THE CITY COUNCIL AND
THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA
VISTA APPROVING AGREEMENT WITH THE ACCOUNTING
FIRM OF MORELAND & ASSOCIATES, INC. TO PROVIDE
AUDITING SERVICES AND AUTHORIZING THE MAYOR TO
EXECUTE SAID AGREEMENT
SUBMITTED BY: Director of FinancelTreasureF..-/l~
REVIEWED BY: City Manager 11 ~7J ^ (4/5ths Vote: Yes _NoL)
Section 1017 of the Chula Vista Charter requires an annual independent audit of the City.
The current five-year agreement with Caporicci & Larson, LLP terminated with completion
of the June 30, 2005 audit report. A Request for Proposals to provide auditing services for
the City, Redevelopment Agency, and Chula Vista Redevelopment Corporation was sent
to 40 auditing firms. Four proposals were received and evaluated by a Five-person
selection Committee composed of the Director of Finance, Assistant Director of Finance,
the Fiscal Operations Manager, Accountant and a Fiscal & Management Analyst from the
Office of Budget and Analysis.
RECOMMENDATION:
That Council adopt the resolution approving the agreement with the audit firm of Moreland
& Associates, Inc. for fiscal years 2005-06, 2006-07, and 2007-08, with the option to
extend for two additional one-year periods.
BOARDSICOMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
Forty audit firms were mailed a Request for Proposal to audit the financial transactions of
the City of Chula Vista, Redevelopment Agency, and Chula Vista Redevelopment
Corporation (Attachment A). Four proposals were received and evaluated by the
Selection Committee based on the following criteria:
A. Organization, size, and structure of the audit firm.
B. Qualifications and experience of staff to be assigned to the City's audit.
C. Audit firm's understanding of the work to be performed and
comprehensiveness of audit work plan.
D. Cost.
2-1
Page 2, Item
Meeting Date
~
5/09/06
The Finance Department followed Municipal Code 2.56, Ordinance No. 2517 and Council
Policy NO.1 02-05 in the consultant services selection process.
RFP Evaluation Results
Technical
Score Pricing Score Total Score
Firm (80 pts Max) (20 pts Max) (100 points) Price
Moreland &
Associates 72.6 5 77.6 $ 75,000
Caporicci & Larson 69.4 20 89.4 $ 50,000
Lance, Soli &
LunQhard 58.4 10 68.4 $ 64,170
RAMS CPA 55.0 15 70.0 $ 60,600
The table above displays the results of the Audit Selection Committee's scoring. The
City's previous auditors, Caporicci and Larson had the highest total score of 89.4 when
including additional points for their low bid of $50,000.
The runner-up is Moreland and Associates with a total score of 77.6. Moreland had the
highest technical score of 72.6 but also was the high bid among the four proposals
received and consequently received low points for pricing. After a careful review of all
proposals, the selection committee determined that Moreland had the best-qualified
personnel to be assigned to the City's audit. Additionally, the firm is on the cutting edge in
the development of new accounting pronouncements and could expertly guide the city
through the implementation of evolving internal control and reporting requirements.
As discussed above, the primary basis of the ratings was the proposing firms technical
competence. After the technical scores were compiled additional points were awarded
based on the price of the proposal. While the cost of the service is important pricing is
indeed a secondary concern. Based on this the selection committee recommends the
contract for Audit Services be awarded to Moreland and Associates because they are the
most technically responsive bidder.
Because the City has been audited by Caporicci & Larson (C&L) for the past 5 years, the
Selection Committee is not recommending this firm to continue to be the auditor of the
City. While C&L has done an excellent job for the City and has a very good reputation
throughout the State, the Selection Committee thought it prudent to go with a new audit
firm.
While having not submitted the lowest bid, Moreland & Associates did rank highest on
technical merit. Moreland & Associates will provide the City a new perspective from an
outside audit standpoint that should validate how the City conducts business.
2-2
Page 3, Item
Meeting Date
'""\
-
5/09/06
About Moreland & Associates
Moreland & Associates, Inc. is a large regional CPA firm providing auditing, consulting and
accounting services across the State of California. Over 95% of their work involves
services to local government clients--the balance is other not-for-profit clients. Established
in 1978 by Michael Moreland, the firm has grown to over fifty employees and providing
services from offices in Newport Beach and San Marcos. Their San Marcos office will
provide services to the City of Chula Vista.
The firm's success in providing professional services to the governmental industry is in
part due to the firm's dedication to the development and implementation of the accounting
and auditing issues relating to this specialized accounting environment. Mr. Moreland and
his staff members donate hundreds of hours each year to professional accounting and
government finance organizations such as the California Society of Municipal Finance
Officers, Government Accounting Standards Board, Governmental Finance Officers
Association, American Institute of Certified Public Accountants, and the California Society
of Certified Public Accountants.
The firm lists several clients locally, which include the Cities of Encinitas, Escondido and
Poway.
FISCAL IMPACT:
The cost of the audit for the fiscal year ended June 30, 2006, will be $75,000 (compared to
$55,783 this year). Fees for fiscal year ended June 30,2007 and June 30, 2008 will be
$78,000 and $81,000 respectively.
Of the total fees, $54,000 will be paid from the General Fund, $13,000 from the
Redevelopment Agency, and $8,000 from Community Development Block Grant. The
necessary appropriations will be included as part of the annual budget process.
2-3
\rmando Martinez & Co
165 Church Ave
. =hula Vista, CA 91910
3rown Kaufman & Associates
.50 Cayuga St Ste I
;alinas, CA 93901-2684
=harles Z. Fedak & Co. CPA's
, ,081 Orange Ave, 2nd Floor
=ypress, CA 90630
)eloitte Haskins and Sells
'01 B Street #1900
;an Diego, CA 92101
olizabeth Tractenberg, CPA
0680 W Pico Blvd #260
,os Angeles, CA 90064
Cemper CPA Group LLP
; 168 Collins Dr #B
vferced, CA 95348
,ance, Soli & Lunghard, CPA's LLP
~03 N. Brea Blvd., Suite 203
kea, CA 92821-4056
vIBIA MuniServices Company
400 K Street, Suite 212
;acramento, CA 95814
vIoreland & Associates, Inc.
201 Dove Street, Suite 680
~ewport Beach, CA 92660
'orter and Company, CP As
,160 Telegraph Road, #203
fentura, CA 93003
Armanino McKenna LLP
12667 Alcosta Blvd #500
San Ramon, CA 94583
C G UhIenberg LLP
333 Twin Dolphin Dr Ste 230
Redwood City, CA 94065-1416
Conrad and Associates
1100 Main Street, Suite C
Irvine, CA 92614
Deloitte LLP
350 South Grand Ave #200
Los Angeles, CA 90071-3406
Ernst & Young
4370 La Jolla Village Dr, Suite 500
San Diego, CA 92122-1249
Kevin W. Harper, CPA
3002 Seriana Court
Union City, CA 94587
Mann, Urrutia, Nelson, CPAs
2515 Venture Oaks Way, Ste 135
Sacramento, CA 95833
McGladrey & Pullen
3880 Lemon Street, Ste 400
Riverside, CA 92501-3667
Municipal Auditing Services, LLC
PO Box 3465
Pinedale, CA 93650
Price Waterhouse Coopers LLP
750 B Street, Suite 2900
San Diego, CA 92101
2-4
ATTACHMENT A
Benedict & Associates
24326 Mission Blvd #5
Hayward, CA 94544
Caporicci & Larson
3184-D Airway Ave
Costa Mesa, CA 92626
Damore Hamric & Schneider AlC
2856 Arden Way #200
Sacramento, CA 95825-1379
Diehl, Evans and Company
2965 Roosevelt Street
Carlsbad, CA 92008
Grant Thornton LLP
1000 Wilshire Blvd #300
Los Angeles, CA 90017
KPMG, LLC
750 B Street, Suite 1500
San Diego, CA 92101-8191
Marcia Fritz & Company,CPAs
5530 Birdcage St #200
Citrus Heights, CA 95610-7621
Moreland & Associates
570 Rancheros Dr. Suite 260
San Marcos, CA 92069
Navarro & Associates
2831 Camino del Rio South
San Diego, CA 92108
Richard D. Garman & Assoc. AlC
10061 Talbert Ave #200
Fountain Valley, CA 92708-4742
ATTACHMENT A
Rogers, Anderson, Malody & Scott,
LLP
290 North D Street Ste 300
San Bernardino, CA 92401
Stoltey & Associates
PO Box 57
Los Olivos, CA 93441-0057
Watts, Campbell, Chi & Baker
7419 North Cedar #103
Fresno, CA 93720
Whittaker and Company
3010 Old Ranch Pkwy Ste 330
Seal Beach, CA 90740-2764
Schmidt Bettencourt & Medeiros
LLP CPAs
865 Geer Road
Turlock, CA 95380-3311
Teaman, Ramirez & Smith, Inc.
4201 Brockton Avenue, Ste 100
Riverside, CA 92501
West & Associates
2550 5th Ave Suite 103
San Diego, CA 92103
Moss, Levy & Hartheim
9107 Wilshire BLVD, Suite 320
Beverly Hills, CA 90210
2-5
ATTACHMENT A
Singer Lewak Greenbaum et al
10960 Wilshire Blvd #1100
Los Angeles, CA 90024-3702
Vavrinek Trine Day & Co.,LLP
8270 Aspen St.
Rancho Cucamonga, CA 91729-
2900
West Rhodes & Roberts
3104 4th Ave
San Diego, CA 92103
ATTACHMENT A
AGENCY RESOLUTION NO.
AND
COUNCIL RESOLUTION NO.
JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
APPROVING AN AGREEMENT WITH THE ACCOUNTING FIRM OF MORELAND
& ASSOCIATES, INC. TO PROVIDE AUDITING SERVICES AND AUTHORIZING
THE MAYOR TO EXECUTE THE AGREEMENT.
WHEREAS, Section 1017 of the Chula Vista Charter requires an annual
independent audit of the City; and
WHEREAS, the current five-year agreement with Caporicci & Larson, LLP
terminated with the completion of the June 30, 2005 audit report; and
WHEREAS, a Request for Proposals to provide auditing services for the City, the
Redevelopment Agency and the Chula Vista Redevelopment Corporation was sent to 40
auditing firms; and
WHEREAS, four proposals were received and evaluated by a five-person
selection committee and the selection committee recommends selection of Moreland &
Associates, Inc.
NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista and the Redevelopment Agency of the City ofChula Vista approve the Agreement
with the audit firm of Moreland and Associates, Inc. to provide auditing services for
fiscal years 2005-2006, 2006-2007, and 2007-2008, with an option to extend for two
additional one-year periods, a copy of which shall be kept on file in the Office of the City
Clerk.
BE IT FURTHER RESOLVED that the City Council of the City ofChula Vista and the
Redevelopment Agency of the City of Chula Vista authorize the Mayor of the City of
Chula Vista to execute the Agreement on behalf of the City and the Redevelopment
Agency.
PRESENTED BY
APPROVED AS TO FORM
y~~-, tLt~
Ann Moore
City Attorney
Dana M. Smith
Assistant City Manager/Community
Development Director
J:lAttorneylELISAlReso for Moreland Auditing Services.doc
2-6
THE ATTACHED AGREEMENT HAS BEEN REVIEWED
AND APPROVED AS TO FORM BY THE CITY
ATTORNEY'S OFFICE AND WILL BE
FORMALLY SIGNED UPON APPROVAL BY
THE CITY COUNCIL
.
~tL /~~
Ann Moore
City Attorney
Dated: .5 I.~J 0 &
j I
AGREEMENT WITH THE ACCOUNTING FIRM OF
MORELAND & ASSOCIATES, INC. TO
PROVIDE AUDITING SERVICES
2-7
Agreement between
City of Chula Vista, the Redevelopment Agency of The City Of Chula Vista
and
Moreland & Associates, Inc.
for Auditing Services
This agreement ("Agreement"), dated May 9, 2006 for the purposes of reference only, and
effective as of the date last executed unless another date is otherwise specified in Exhibit A,
Paragraph 1 is between the City-related entities as is indicated on Exhibit A, paragraph 2, as such
("City" and "Agency"), whose business form is set forth on Exhibit A, paragraph 3, and the entity
indicated on the attached Exhibit A, paragraph 4, as Consultant, whose business form is set forth
on Exhibit A, paragraph 5, and whose place of business and telephone numbers are set forth on
Exhibit A, paragraph 6 ("Consultant"), and is made with reference to the following facts:
Recitals
Whereas, Section 1017 of the City Charter requires the City Council to appoint an
independent auditor to audit the annual fmancial statements of the City; and,
Whereas, Consultant warrants and represents that they are experienced and staffed in a
manner such that they are and can prepare and deliver the services required of Consultant to City
within the time frames herein provided all in accordance with the terms and conditions of this
Agreement;
Page 1
2-8
Obligatory Provisions Pages
NOW, THEREFORE, BE IT RESOLVED that the City and Consultant do hereby
mutually agree as follows:
I. Consultant's Duties
A. General Duties
Consultant shall perform all of the services described on the attached Exhibit A,
Paragraph 7, entitled "General Duties"; and,
B. Scope of Work and Schedule
In the process of performing and delivering said "General Duties", Consultant shall also
perform all of the services described in Exhibit A, Paragraph 8, entitled" Scope of Work and
Schedule", not inconsistent with the General Duties, according to, and within the time frames set
forth in Exhibit A, Paragraph 8, and deliver to City such Deliverables as are identified in Exhibit
A, Paragraph 8, within the time frames set forth therein, time being of the essence of this
agreement. The General Duties and the work and deliverables required in the Scope of Work and
Schedule shall be herein referred to as the "Defined Services". Failure to complete the Defined
Services by the times indicated does not, except at the option of the City, operate to terminate
this Agreement.
C. Reductions in Scope of Work
City may independently, or upon request from Consultant, from time to time reduce the
Defined Services to be performed by the Consultant under this Agreement. Upon doing so, City
and Consultant agree to meet in good faith and confer for the purpose of negotiating a
corresponding reduction in the compensation associated with said reduction.
D. Additional Services
In addition to performing the Defined Services herein set forth, City may require
Consultant to perform additional consulting services related to the Defined Services ("Additional
Services"), and upon doing so in writing, if they are within the scope of services offered by
Consultant, Consultant shall perform same on a time and materials basis at the rates set forth in
the "Rate Schedule" in Exhibit A, Paragraph II (C), unless a separate fixed fee is otherwise
agreed upon. All compensation for Additional Services shall be paid montWy as billed.
Page 2
2-9
E. Standard of Care
Consultant, in perfonning any Services under this agreement, whether Defined Services
or Additional Services, shall perfonn in a manner consistent with that level of care and skill
ordinarily exercised by members of the profession currently practicing under similar conditions
and in similar locations.
F. Minimum Limits of Insurance
Consultant must maintain limits no less than:
I. General Liability:
(Including operations,
products and completed
operations, as applicable.)
2. Automobile Liability:
3. Workers' Compensation
Employer's Liability:
$1,000,000 per occurrence for bodily injury, personal injury and
property damage. If Commercial General Liability insurance with a
general aggregate limit is used, either the general aggregate limit
must apply separately to this project/location or the general
aggregate limit must be twice the required occurrence limit.
$1,000,000 per accident for bodily injury and property damage.
Statutory
$1,000,000 each accident
$1,000,000 disease-policy limit
$1,000,000 disease-each employee
4. Professional Liability or $1,000,000.00 each occurrence
Errors & Omissions Liability: $2,000,000 policy aggregate
Deductibles and Self-Insured Retentions
Any deductibles or self-insured retentions must be declared to and approved by the City. At the
option of the City, either the insurer will reduce or eliminate such deductibles or self-insured
retentions as they pertain to the City, its officers, officials, employees and volunteers; or the
consultant will provide a financial guarantee satisfactory to the City guaranteeing payment oflosses
and related investigations, claim administration, and defense expenses.
Other Insurance Provisions
The general liability, automobile liability, and where appropriate, the worker's compensation policies
are to contain, or be endorsed to contain, the following provisions:
1. The City ofChula Vista and the Redevelopment Agency of The City OfChula Vista, their
officers, officials, employees, agents, and volunteers are to be named as additional insureds
with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on
Page 3
2-10
behalf of the consultant, where applicable, and, with respect to liability arising out of work or
operations performed by or on behalf of the consultant's including providing materials, parts
or equipment furnished in connection with such work or operations. The general liability
additional insured coverage must be provided in the form of an endorsement to the
contractor's insurance using ISO CG 2010 (11/85) or its equivalent. Specifically, the
endorsement must not exclude Products / Completed Operations coverage.
2. The consultant's General Liability insurance coverage must be primary insurance as it
pertains to the City and the Redevelopment Agency, their officers, officials, employees,
agents, and volunteers. Any insurance or self-insurance maintained by the City or The
Redevelopment Agency, their officers, officials, employees, or volunteers is wholly separate
from the insurance of the contractor and in no way relieves the contractor from its
responsibility to provide insurance.
3. Each insurance policy required by this clause must be endorsed to state that coverage will not
be canceled by either party, except after thirty (30) days' prior written notice to the City by .
certified mail, return receipt requested.
Coverage shall not extend to any indemnity coverage for the active negligence of the
additional insured in any case where an agreement to indemnifY the additional insured would be
invalid under Subdivision (b) of Section 2782 of the Civil Code.
Consultant's insurer will provide a Waiver of Subrogation in favor of the City and the
Redevelopment Agency for each required policy providing coverage during the life of this
contract.
If General Liability, Pollution and/or Asbestos Pollution Liability and/or Errors & Omissions
coverage are written on a claims-made form:
The "Retro Date" must be shown, and must be before the date of the contract or the beginning of
the contract work.
I. Insurance must be maintained and evidence of insurance must be provided for at
least five (5) years after completion of the contract work.
2. If coverage is canceled or non-renewed, and not replaced with another claims-
made policy form with a "Retro Date" prior to the contract effective date, the
Consultant must purchase "extended reporting" coverage for a minimum of five
(5) years after completion of contract work.
A copy of the claims reporting requirements must be submitted to the City for review.
Acceptability of Insurers
Insurance is to be placed with licensed insurers admitted to transact business in the State of
California with a current A.M. Best's rating of no less than A V. If insurance is placed with a
Page 4
2-11
surplus lines insurer, insurer must be listed on the State of California List of Eligible Surplus Lines
Insurers (LESLI) with a current A.M. Best's rating of no less than A X. Exception may be made for
the State Compensation Fund when not specifically rated.
Verification of Coverage
Consultant shall furnish the City with original certificates and amendatory endorsements effecting
coverage required by this clause. The endorsements should be on insurance industry forms, provided
those endorsements or policies conform to the contract requirements. All certificates and
endorsements are to be received and approved by the City before work commences. The City
reserves the right to require, at any time, complete, certified copies of all required insurance policies,
including endorsements evidencing the coverage required by these specifications.
Subcontractors
Consultants must include all sub-consultants as insureds under its policies or furnish separate
certificates and endorsements for each sub-consultant. All coverage for sub-consultants are
subject to all of the requirements included in these specifications.
F. Security for Performance.
(I) Performance Bond.
In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to
provide a Performance Bond (indicated by a check mark in the parenthetical space immediately
preceding the subparagraph entitled "Performance Bond"), then Consultant shall provide to the
City a performance bond in the form prescribed by the City and by such sureties which are
authorized to transact such business in the State of California, listed as approved by the United
States Department of Treasury Circular 570, http://www.fms.treas.gov/c570, and whose
underwriting limitation is sufficient to issue bonds in the amount required by the agreement, and
which also satisfY the requirements stated in Section 995.660 of the Code of Civil Procedure,
except as provided otherwise by laws or regulations. All bonds signed by an agent must be
accompanied by a certified copy of such agent's authority to act. Surety companies must be duly
licensed or authorized in the jurisdiction in which the Project is located to issue bonds for the
limits so required. Form must be satisfactory to the Risk Manager or City Attorney which
amount is indicated in the space adjacent to the term, "Performance Bond", in said Paragraph 19,
Exhibit A.
(2) Letter of Credit.
In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to
provide a Letter of Credit (indicated by a check mark in the parenthetical space immediately
preceding the subparagraph entitled "Letter of Credit"), then Consultant shall provide to the City
Page 5
2-12
an irrevocable letter of credit callable by the City at their unfettered discretion by submitting to
the bank a letter, signed by the City Manager, stating that the Consultant is in breach of the terms
of this Agreement. The letter of credit shall be issued by a bank, and be in a form and amount
satisfactory to the Risk Manager or City Attorney which amount is indicated in the space
adjacent to the term, "Letter of Credit", in said Paragraph 19, Exhibit A.
(3) Other Security
In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to
provide security other than a Performance Bond or a Letter of Credit (indicated by a check mark
in the parenthetical space immediately preceding the subparagraph entitled "Other Security"),
then Consultant shall provide to the City such other security therein listed in a form and amount
satisfactory to the Risk Manager or City Attorney.
1. Business License
Consultant agrees to obtain a business license from the City and to otherwise comply with
Title 5 of the Chula Vista Municipal Code.
2. Duties of the City
A. Consultation and Cooperation
City shall regularly consult the Consultant for the purpose of reviewing the progress of
the Defined Services and Schedule therein contained, and to provide direction and guidance to
achieve the objectives of this agreement. The City shall permit access to its office facilities, files
and records and to the Office facilities, files and records of the Redevelopment Agency by
Consultant throughout the term of the agreement. In addition thereto, City agrees to provide the
information, data, items and materials set forth on Exhibit A, Paragraph 10, and with the further
understanding that delay in the provision of these materials beyond 30 days after authorization to
proceed, shall constitute a basis for the justifiable delay in the Consultant's performance of this
agreement.
B. Compensation
Upon receipt of a properly prepared billing from Consultant submitted to the City
periodically as indicated in Exhibit A, Paragraph 18, but in no event more frequently than
monthly, on the day of the period indicated in Exhibit A, Paragraph 18, City shall compensate
Consultant for all services rendered by Consultant according to the terms and conditions set forth
in Exhibit A, Paragraph 11, adjacent to the governing compensation relationship indicated by a
"checkrnark" next to the appropriate arrangement, subject to the requirements for retention set
Page 6
2-13
forth in paragraph 19 of Exhibit A, and shall compensate Consultant for out of pocket expenses
as provided in Exhibit A, Paragraph 12.
All billings submitted by Consultant shall contain sufficient information as to the
propriety of the billing to permit the City to evaluate that the amount due and payable thereunder
is proper, and shall specifically contain the City's account number indicated on Exhibit A,
Paragraph 18 (C) to be charged upon making such payment.
3. Administration of Contract
Each party designates the individuals ("Contract Administrators") indicated on Exhibit A,
Paragraph 13, as said party's contract administrator who is authorized by said party to represent
them in the routine administration of this agreement.
4. Term.
This Agreement shall terminate at the end of City of Chula Vista Fiscal Year 2007-2008,
unless the Agreement is extended for an additional two years at the complete discretion of the
City. The City shall give the Consultant notice of its intent to extend the Agreement in writing at
least 30 days after the conclusion of the FY 2007-2008 audit.
5. Liquidated Damages
The provisions of this section apply if a Liquidated Damages Rate is provided in Exhibit
A, Paragraph 14.
It is acknowledged by both parties that time is of the essence in the completion of this
Agreement. It is difficult to estimate the amount of damages resulting from delay in
performance. The parties have used their judgment to arrive at a reasonable amount to
compensate for delay.
Failure to complete the Defined Services within the allotted time period specified in this
Agreement shall result in the following penalty: For each consecutive calendar day in excess of
the time specified for the completion of the respective work assignment or Deliverable, the
consultant shall pay to the City, or have withheld from monies due, the sum of Liquidated
Damages Rate provided in Exhibit A, Paragraph 14 ("Liquidated Damages Rate").
Time extensions for delays beyond the consultant's control, other than delays caused by
the City or the Redevelopment Agency, shall be requested in writing to the City's Contract
Administrator, or designee, prior to the expiration of the specified time. Extensions of time,
when granted, will be based upon the effect of delays to the work and will not be granted for
Page 7
2-14
delays to minor portions of work unless it can be shown that such delays did or will delay the
progress of the work.
.
6. Financial Interests of Consultant
A. Consultant is Designated as an FPPC Filer.
If Consultant is designated on Exhibit A, Paragraph 15, as an "FPPC filer", Consultant is
deemed to be a "Consultant" for the purposes of the Political Reform Act conflict of interest and
disclosure provisions, and shall report economic interests to the City Clerk on the required
Statement of Economic Interests in such reporting categories as are specified in Paragraph 15 of
Exhibit A, or if none are specified, then as determined by the City Attorney.
B. Decline to Participate.
Regardless of whether Consultant is designated as an FPPC Filer, Consultant shall not
make, or participate in making or in any way attempt to use Consultant's position to influence a
governmental decision in which Consultant knows or has reason to know Consultant has a
financial interest other than the compensation promised by this Agreement.
C. Search to Determine Economic Interests.
Regardless of whether Consultant is designated as an FPPC Filer, Consultant warrants
and represents that Consultant has diligently conducted a search and inventory of Consultant's
economic interests, as the term is used in the regulations promulgated by the "Fair Political
Practices Commission, and has determined that Consultant does not, to the best of Consultant's
knowledge, have an economic interest which would conflict with Consultant's duties under this
agreement.
D. Promise Not to Acquire Conflicting Interests.
Regardless of whether Consultant is designated as an FPPC Filer, Consultant further
warrants and represents that Consultant will not acquire, obtain, or assume an economic interest
during the term of this Agreement which would constitute a conflict of interest as prohibited by
the Fair Political Practices Act.
E. Duty to Advise of Conflicting Interests.
Regardless of whether Consultant is designated as an FPPC Filer, Consultant further
warrants and represents that Consultant will immediately advise the City Attorney of City if
Page 8
2-15
Consultant learns of an economic interest of Consultant's which may result in a conflict of
interest for the purpose of the Fair Political Practices Act, and regulations promulgated
thereunder.
F. Specific Warranties Against Economic Interests.
Consultant warrants and represents that neither Consultant, nor Consultant's immediate
family members, nor Consultant's employees or agents ("Consultant Associates") presently have
any interest, directly or indirectly, whatsoever in any property which may be the subject matter of
the Defmed Services, or in any property within 2 radial miles ITom the exterior boundaries of any
property which may be the subject matter of the Defined Services, ("Prohibited Interest"), other
than as listed in Exhibit A, Paragraph 15.
Consultant further warrants and represents that no promise of future employment,
remuneration, consideration, gratuity or other reward or gain has been made to Consultant or
Consultant Associates in connection with Consultant's performance of this Agreement.
Consultant promises to advise City of any such promise that may be made during the Term of
this Agreement, or for 12 months thereafter.
Consultant agrees that Consultant Associates shall not acquire any such Prohibited
Interest within the Term of this Agreement, or for 12 months after the expiration of this
Agreement, except with the written permission of City.
Consultant may not conduct or solicit any business for any party to this Agreement, or for
any third party which may be in conflict with Consultant's responsibilities under this Agreement,
except with the written permission of City.
7. Hold Harmless
Consultant shall defend, indemnify, protect and hold harmless the City and the
Redevelopment Agency, their elected and appointed officers and employees, ITom and against all
claims for damages, liability, cost and expense (including without limitation attorneys fees)
arising out of or alleged by third parties to be the result of the negligent acts, errors or omissions
or the willful misconduct of the Consultant, and Consultant's employees, subcontractors or other
persons, agencies or firms for whom Consultant is legally responsible in connection with the
execution of the work covered by this Agreement, except only for those claims, damages,
liability, costs and expenses (including without limitations, attorneys fees) arising ITom the sole
negligence or sole willful misconduct of the City or the Redevelopment Agency, their officers,
employees. Also covered is liability arising from, connected with, caused by or claimed to be
caused by the active or passive negligent acts or omissions of the City or the Redevelopment
Agency, their agents, officers, or employees which may be in combination with the active or
Page 9
2-16
passive negligent acts or omissions of the Consultant, its employees, agents or officers, or any
third party.
.
With respect to losses arising from Consultant's professional errors or omissions,
Consultant shall defend, indemnity, protect and hold harmless the City and the Redevelopment
Agency, their elected and appointed officers and employees, from and against all claims for
damages, liability, cost and expense (including without limitation attorneys fees) except for those
claims arising from the negligence or willful misconduct of City or the Redevelopment Agency,
their officers or employees.
Consultant's indemnification shall include any and all costs, expenses, attorneys fees and
liability incurred by the City, their officers, agents or employees in defending against such
claims, whether the same proceed to judgment or not. Consultant's obligations under this
Section shall not be limited by any prior or subsequent declaration by the Consultant.
Consultant's obligations under this Section shall survive the termination of this Agreement.
1. Indemnification and Hold Harmless Agreement.
With respect to any liability, including but not limited to claims asserted or costs, losses,
attorney fees, or payments for injury to any person or property caused or claimed to be caused by
the acts or omissions of the Consultant, or Consultant's employees, agents, and officers, arising
out of any services performed involving this project, except liability for Professional Services
covered under Section X.2, the Consultant agrees to defend, indemnity, protect, and hold
harmless the City and the Redevelopment Agency, their agents, officers, or employees from and
against all liability. Also covered is liability arising from, connected with, caused by, or claimed
to be caused by the active or passive negligent acts or omissions of the City or the
Redevelopment Agency, their agents, officers, or employees which may be in combination with
the active or passive negligent acts or omissions of the Consultant, its employees, agents or
officers, or any third party. The Consultant's duty to indemnity, protect and hold harmless shall
not include any claims or liabilities arising from the sole negligence or sole willful misconduct of
the City or the Redevelopment Agency, their agents, officers or employees. This section in no
way alters, affects or modifies the Consultant's obligation and duties under Section Exhibit A to
this Agreement.
2. Indemnification for Professional Services.
As to the Consultant's professional obligation, work or services involving this Project,
the Consultant agrees to indemnity, defend and hold harmless the City and the Redevelopment
Agency, their agents, officers and employees from and against any and all liability, claims, costs,
and damages, including but not limited to, attorneys fees, losses or payments for injury to any
person or property, caused directly or indirectly from the negligent <lcts, errors or omissions of
Page 10
2-17
the Consultant or Consultant's employees, agents or officers; provided, however, that the
Consultant's duty to indemnify shall not include any claims or liability arising from the
negligence or willful misconduct of the City or the Redevelopment Agency, their agents, officers
and employees.
8. Termination of Agreement for Cause
If, through any cause, Consultant shall fail to fulfill in a timely and proper manner
Consultant's obligations under this Agreement, or if Consultant shall violate any of the
covenants, agreements or stipulations of this Agreement, City shall have the right to terminate
this Agreement by giving written notice to Consultant of such termination and specifying the
effective date thereof at least five (5) days before the effective date of such termination. In that
event, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and
other materials prepared by Consultant shall, at the option of the City, become the property of the
City, and Consultant shall be entitled to receive just and equitable compensation for any work
satisfactorily completed on such documents and other materials up to the effective date of Notice
of Termination, not to exceed the amounts payable hereunder, and less any damages caused City
or the Redevelopment Agency by Consultant's breach.
9. Errors and Omissions
In the event that the City Administrator determines that the Consultants' negligence,
errors, or omissions in the performance of work under this Agreement has resulted in expense to
City or the Redevelopment Agency greater than would have resulted if there were no such
negligence, errors, omissions, Consultant shall reimburse City or the Redevelopment Agency for
any additional expenses incurred by the City or the Redevelopment Agency. Nothing herein is
intended to limit City's or the Redevelopment Agency rights under other provisions of this
agreement.
10. Termination of Agreement for Convenience of City
City may terminate this Agreement at any time and for any reason, by giving specific written
notice to Consultant of such termination and specifying the effective date thereof, at least thirty
(30) days before the effective date of such termination. In that event, all finished and unfinished
City Original documents and other materials described hereinabove, shall be returned to City
and the Redevelopment Agency as it's sole and exclusive property, except all working papers
which will be retained by Consultant. If the Agreement is terminated by City as provided in this
paragraph, Consultant shall be entitled to receive just and equitable compensation for any
satisfactory work completed on such documents and other materials to the effective date of such
termination. Consultant hereby expressly waives any and all claims for damages or compensation
arising under this Agreement except as set forth herein.
11. Assignability
Page 11
2-18
The services of Consultant are personal to the City, and Consultant shall not assign any
interest in this Agreement, and shall not transfer any interest in the same (whether by assignment
or novation), without prior written consent of City.
City hereby consents to the assignment of the portions of the Defined Services identified
in Exhibit A, Paragraph 17 to the subconsultants identified thereat as "Permitted Subconsultants".
12. Ownership, Publication, Reproduction and Use of Material
All reports, studies, information, data, statistics, forms, designs, plans, procedures,
systems and any other materials or properties produced under this Agreement shall be the sole
and exclusive property of City, exceptfor all audit workpapers which remain the property of
the Consultant. No such materials or properties produced in whole or in part under this
Agreement shall be subject to private use, copyrights or patent rights by Consultant in the United
States or in any other country without the express written consent of City. City shall have
unrestricted authority to publish, disclose (except as may be limited by the provisions of the
Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any
such reports, studies, data, statistics, forms or other materials or properties produced under this
Agreement.
The audit working papers are the property of the Consultant.
13. Independent Contractor
City is interested only in the results obtained and Consultant shall perform as an
independent contractor with sole control of the manner and means of performing the services
required under this Agreement. City maintains the right only to reject or accept Consultant's
work products. Consultant and any of the Consultant's agents, employees or representatives are,
for all purposes under this Agreement, an independent contractor and shall not be deemed to be
an employee of City or the Redevelopment Agency, and none of them shall be entitled to any
benefits to which City employees are entitled including but not limited to, overtime, retirement
benefits, worker's compensation benefits, injury leave or other leave benefits. Therefore, City
will not withhold state or federal income tax, social security tax or any other payroll tax, and
Consultant shall be solely responsible for the payment of same and shall hold the City harmless
with regard thereto.
14. Administrative Claims Requirements and Procedures
Page 12
2-19
No suit or arbitration shall be brought arising out of this agreement, against the City
unless a claim has first been presented in writing and filed with the City and acted upon by the
City in accordance with the procedures set forth in Chapter 1.34 of the Chu1a Vista Municipal
Code, as same may from time to time be amended, the provisions of which are incorporated by
this reference as if fully set forth herein, and such policies and procedures used by the City in the
implementation of same.
Upon request by City, Consultant shall meet and confer in good faith with City for the
purpose of resolving any dispute over the terms of this Agreement.
15. Attorney's Fees
Should a dispute arising out of this Agreement result in litigation, it is agreed that the
prevailing party shall be entitled to a judgment against the other for an amount equal to
reasonable attorney's fees and court costs incurred. The "prevailing party" shall be deemed to be
the party who is awarded substantially the relief sought.
16. Statement of Costs
In the event that Consultant prepares a report or document, or participates in the
preparation of a report or document in performing the Defined Services, Consultant shall include,
or cause the inclusion of, in said report or document, a statement of the numbers and cost in
dollar amounts of all contracts and subcontracts relating to the preparation of the report or
document.
17. Miscellaneous
A. Consultant not authorized to Represent City
Unless specifically authorized in writing by City or the Redevelopment Agency,
Consultant shall have no authority to act as City's or Redevelopment Agency's agent to bind City
or the Redevelopment Agency to any contractual agreements whatsoever.
B. Consultant is Real Estate Broker and/or Salesman
If the box on Exhibit A, Paragraph 16 is marked, the Consultant and/or their principals
is/are licensed with the State of California or some other state as a licensed real estate broker or
salesperson. Otherwise, Consultant represents that neither Consultant, nor their principals are
licensed real estate brokers or salespersons.
C. Notices
Page 13
2-20
.
All notices, demands or requests provided for or permitted to be given pursuant to this
Agreement must be in writing. All notices, demands and requests to be sent to any party shall be
deemed to have been properly given or served if personally served or deposited in the United
States mail, addressed to such party, postage prepaid, registered or certified, with return receipt
requested, at the addresses identified herein as the places of business for each of the designated
parties.
D. Entire Agreement
This Agreement, together with any other written document referred to or contemplated
herein, embody the entire Agreement and understanding between the parties relating to the
subject matter hereof. Neither this Agreement nor any provision hereof may be amended,
modified, waived or discharged except by an instrument in writing executed by the party against
which enforcement of such amendment, waiver or discharge is sought.
E. Capacity of Parties
Each signatory and party hereto hereby warrants and represents to the other party that it
has legal authority and capacity and direction from its principal to enter into this Agreement, and
that all resolutions or other actions have been taken so as to enable it to enter into this
Agreement.
F. Governing LawNenue
This Agreement shall be governed by and construed in accordance with the laws of the
State of California. Any action arising under or relating to this Agreement shall be brought only
in the federal or state courts located in San Diego County, State of California, and if applicable,
the City of ChuIa Vista, or as close thereto as possible. Venue for this Agreement, and
performance hereunder, shall be the City ofChula Vista.
[end of page. next page is signature page.]
Page 14
2-21
Signature Page
to
Agreement between City ofChula Vista and Moreland &Associates, Inc.
for Audit Services.
IN WITNESS WHEREOF, City and Consultant have executed this Agreement thereby
indicating that they have read and understood same, and indicate their full and complete consent
to its terms:
Dated:
,200_
City of Chula Vista
by:
Stephen Padilla, Mayor
Dated:
,200_
Redevelopment Agency
by:
Stephen Padilla, Mayor
Attest:
Susan Bigelow, City Clerk
Approved as to form:
Approved as to form:
Ann Moore, City Attorney
Ann Moore, Redevelopment Agency
Dated:
~y~~~
Ka ryn Beau,
Engagement Partner
Exhibit List 10 Agreement
() Exhibil A.
Page 15
2-22
Exhibit A
to
Agreement between
City of Chula Vista
and
Moreland & Associates, Inc.
1. Effective Date of Agreement: May 10, 2006
2. City-Related Entities:
(x) City ofChula Vista, a municipal chartered corporation of the State of California
(x) Redevelopment Agency of the City of Chula Vista, a political subdivision of the
State of California
() Industrial Development Authority of the City ofChula Vista, a
()
Other:
form]
, a [insert business
3. Place of Business for City:
City of Chula Vista,
276 Fourth Avenue,
Chula Vista, CA 91910
4. Consultant: Moreland & Associates, Inc.
5. Business Form of Consultant:
( ) Sole Proprietorship
( ) Partnership
( x ) Corporation
6. Place of Business, Telephone and Fax Number of Consultant:
570 Rancheros Drive, Suite 260
San Marcos, California 92069
Voice Phone (760) 752-3390
Fax Phone (760) 752-3395
Page 16
2-23
7. General Duties:
A. Scope of Work to be performed
The audit exarrlination shall not include a detailed audit ofal! of the transactions recorded in the accounts of the
City, unless otherwise herein specified, but will be based upon tests of accounting records and other supporting
evidence for selected periods during the fiscal year under review sufficient to enable the contracting independent
auditor to express an infonned written opinion on:
1. The financial position of the various funds of the City.
2. The propriety of accounting principles followed.
3. Compliance with applicable laws.
4. The financial accountability of officers and employees.
Organizations to be Audited:
i. City ofChula Vista (the "City")
ii. Redevelopment Agency of the City ofChula Vista (RDA)
iii. City of Chula Vista Public Financing Authority (PF A)
IV. Chula Vista Redevelopment Corporation (CVRC), a 501c3 corporation.
Additional Special Audits and Services
i. Financial and compliance audits required by the Single Audit Act of 1996.
Ii. Independent Accountant's Report on Agreed-Upon Procedures Applied to the Appropriations
Limit Schedule.
iii. Independent Accountant's Report on Agreed-Upon Procedures Applied to State-Local
Transportation Partnership Programs.
iv. Transient Occupancy Tax revenues relating to a sample of 5-7 motels and hotels in the City.
v. Preparation of the Annual State and Federal Tax Return for the "CVRC".
B. Auditing Standards To Be Followed
The contracting independent auditor shall review the financial records and all the various funds of the city and
prepare all the financial statements in confonnance with generally accepted auditing standards as set forth by the
American Institute of Certified Public Accountants, the standards for financial audits set forth in the U.S. General
Accounting Office's Government Auditing Standards (2003), the provisions of the Single Audit Act of 1996 and
the provisions of U.S. Office of Management and Budget (OMB) Circular A-133, Audits of State, Local
Governments and Non-Profit Organizations.
C. Reports to be Issued
Following the completion of the audit of the fiscal year's financial statements, the auditor shall issue:
I. A Comprehensive Annual Financial Report (CAFR) for City in the required fonnat for the "Certificate of
Achievement for Excellence in Financial Reporting" ITom the Government Finance Officers Association
(GFOA) of the United States and Canada, and the California Society of Municipal Finance Officers
association (CSMFO).
2. A Financial Statement Report for the Redevelopment Agency and the City ofChula Vista Public Financing
Authority.
3. A report on the fair presentation of the financial statements in conformity with generally accepted accounting
principles for all entities listed above.
4. A report on compliance and on the internal control over financial reporting based on an audit of fmancial
Page 17
2-24
. 5.
6.
7.
8.
9.
10.
statements perfonned in accordance with Government Auditing Standards. (Single Audit).
A report on compliance with requirements applicable to each major program and internal control over
compliance in accordance with OMB Circular A-133 (Single Audit).
A schedule of findings and questioned costs (Single Audit).
A report on compliance (including the provisions contained in the guidelines for compliance audits of
redevelopment agencies) and on the internal control over financial reporting based on an audit of financial
statemeets perfonned in accordance with Governmeet Auditing Standards. (RDA).
A report on compliance and on internal control over financial reporting based on an audit of financial
statements perfonned in accordance with government auditing standards. (PF A).
A report on compliance with specific requirements applicable to the State-Local Transportation Partnership
Program.
In the required reports on internal controls the auditor shall communicate any reportable conditions found
during the audit. A reportable condition shall be defined as a significant deficiency in the design or
operation of the internal control structure which could adversely affect the organization's ability to record,
process, summarize, and report financial data consistent with the assertions of management in the
financial statements.
II. Tax returns for the Chula Vista Redevelopment Corporation for each Fiscal Year audited. Filled by the to the
IRS by their required deadline.
12. Printing, binding and delivery of the following copies of each audit report:
50 copies - City Of Chula Vista CAFR
40 copies - Redevelopment Agency Audit Report
20 copies - Chula Vista Redevelopment Corporation
20 copies - Public Financing Authority
20 copies - Single Audit Report
In addition to the Final hard copies listed above en electronic version of the reports are to be provided in
Adobe Acrobat PDF fonnat to the City.
13. A copy of the Single Audit Report is required to be sent to the Federal Audit Clearinghouse.
Reportable conditions that are also material weaknesses shall be identified as such in the report. Non-reportable conditions
discovered by the auditors shall be reported in a separate letter to management, which shall be referred to in the reports on
internal controls.
The reports on compliance shall include all instances of noncompliance.
Auditors shall be required to make an immediate written report of all irregularities and illegal acts or indications of
illegal acts of which they become aware to the City Council, City Manager, City Attorney and Director of Finance.
8. Scope of Work and Schedule:
A. Detailed Scope of Work:
1. Budget
In accordance with provisions of the Charter of the City ofChula Vista, it is the duty of the City Manager
to prepare and submit to the Council the annual budget and such reports as may be required by that body.
The outside auditor shall examine the fmal budget document as approved by the City Council and compare
the estimated revenues and appropriations as shown in the budget document with the eetries recorded on
the reveeue ledger and the appropriation ledger maintained by the Finance Department.
Page 18
2-25
2. Funds
The auditor shall examine the City Charter, ordinances or resolutions, and minutes of the City Council
pertaining to all funds of the City to detennine the purpose of each fund and the proper disposition of all
funds revenues, expenditures, and year-end balances. The auditor shall examine the various fund
transactions and balances in each fund and prepare the appropriate financial statements for the audit
report.
3. Verification of Cash and Securities
a. Cash and Checks: The auditor shall count all cash and checks in the Finance Department
as of June 30. The auditor shall subsequently be satisfied that all items counted and
verified are deposited in the City's depository bank. Investment securities owned by the
City and held in safekeeping by the City's various banks and financial institutions shall be
verified as to their existence as of June 30.
Written confumation shall be obtained ITom all City depositories of balance on hand at June 30.
b. Surprise Cash Counts: The auditor shall make, during the year, at least two surprise cash counts of
the funds in the Finance Department in cooperation with staff members.
c. Collateral Pledged for Funds on DeDosit: The auditor shall examine the records of pledged collateral
and make such tests of depository bank pooled collateral operations as may be necessary to express
an opinion as to the legal sufficiency of the collateral to safeguard the City of Chula Vista's bank
deposits.
d. Accounting Records: The auditor shal] examine the City's internal accouotiog and administrative
controls to determine that accounting procedures are adequate to safeguard assets and provide
reasonable assurance of proper recording of financial transactions.
4. Assets
a. Cash and Investroents: Treasury and investment operations are the responsibility of the Finance
Department. The auditors shall verifY the cash balances and the existence of the investments. The
investments market value shall be reviewed and compared to book value. The auditor shall review
balances as of June 30 and investments earnings recorded during the fiscal year. The footnote
disclosure shall be in compliance with GASB 31 and 40.
b. Fixed Assets: The auditor shall examine the procedures for recording the acquisition of and the
disposal of property owned by the City. The auditor shall compare the annual inventories of property
with the controls maintained by the Finance Department. The auditor shall review the transactions
involving fixed assets to the extent necessary to assure that accouotabi1ity for fIXed assets is
maintained.
5. Liabilities
a. Accounts Pavable: The auditor shall make a sufficient examination of accounts payable to enable
them to determine that, in general, they bear evidence of verification and approval with suppotting
documents such as purchase orders, vendor's invoices, receiving reports, transportation bills,
cootracts and other documents where necessary. The auditor shall also be satisfied that the claims
were charged against the proper departmental appropriations and that funds were available at the
Page 19
2-26
date the purchase was made.
b. Bonded Debt: The auditor shall examine the amount of bonded debt of the City and the
outstanding debt determined by the auditor should be reconciled to the accounting records of the
City by fimd and amount outstanding on June 30.
c. Reserves for Uncompleted Purchase Orders and Encumbrances: The auditor shall examine
documents supporting reserves for uncompleted purchase orders and encumbrances to determine
that such reserves are adequate and properly recorded.
.
d. Other Liabilities and Deferred Credits: The auditor shall be satisfied as to the fairness of the
accounts representing other liabilities and deferred credits.
6. Fund Balances
The auditor shall examine revenues and expenditures by funds and analyze the
changes in fund balances for the financial statement of each fund in the audit
report.
7. Single Audit Act
The independent auditor shall perform a financial and compliance audit under the Single Audit Act of
1996. The audit shall be made in accordance with the Standards for Audit of Governmental
Organizations, Programs, ActNities, and Functions, issued by the U.S. General Accounting Office, and
the provisions of the U.S. Office of Management and Budget (OMB) Circular A-133, Audits ofState,
Local Governments and Non-Profit Organizations.
The City has determined that the United States Department of Housing and Urban Development wiIl fimction as the
cognizant agency in accordance with the provisions of the Single Audit Act Amendments of 1996 and U.S. Office of
Management and Budget (OMB) Circular A-133, Audits of State and Local Governments and Non-Profit
Organizations. The schedule of expenditures of federal award and related auditor's report, as well as the reports on
the internal controls and compliance are not to be included in the CAFR, but are to be issued separately.
B. Date for Commencement of Consultant Services:
( x ) Same as Effective Date of Agreement
( ) Other:
C. Dates or Time Limits for Delivery of Deliver abies:
. Deliverable No. I: City ofChula Vista CAFR:October 3] for each year audited
. Deliverable No.2: RDA Financial Statement October 31 for each year audited
. Deliverable No.3: Single Audit Report:
October 31 for each year audited
Page 20
2-27
. Deliverable No.4: CYRC Tax Returns:
Filled by the IRS required deadline for each year audited
D. Date for completion of all Consultant services: To be on-going as the City or the
Redevelopment Agency requires guidance in
carrying out their fmancial and administrative
duties. But not to extend more than the
completion of each years fmished Financial
Reports as listed on pages 17 & 18.
9. Materials Required to be Supplied by City to Consultant:
The City will prepare the following statements and scbedules for the auditor. Additional statements or schedules
may be prepared if mutually agreed upon in advance.
. General Purpose Financial Statements
o Cash and Investments
o Cash with Fiscal Agent/Trustee Transactions
o Interest Income detail
o Operating Transfers/ Residual Equity Transfers
o Arbitrage Calculations
o Schedule of Fixed Asset Transactions
o Compensated Absences
o Schedule of Long-term Debt Transactions
o Bank Reconciliation
o Budget Transfers
o Property Tax Schedule
o TOT Monthly Revenue by Source
o Loans Receivable & Payable
o Accounts Receivable & Accounts Payable
o Advances Receivable & Payable between Funds
o Reconciliation of General Fund & RDA Fund Balances
o PERS Summary of Covered Payroll and Contributions
. Single Audit
Schedule of Federal Financial Assistance (SFFA)
. Redevelopment Agency
o Balance Sheets
o Statement of Revenues and Expenditures
o Loans Receivable & Payable
o Advances Receivable & Payable between Funds
Work Area, Telephones, Photocopying and FAX Machines
The City will provide the auditor with reasonable work space, desks and chairs. The auditor will also be provided
with access to a telephone line, photocopying machine and FAX machine.
Long Distance telephone and/or FAX communications will be charged to the auditor.
Page 21
2-28
.
10. Compensation:
A. (x) Single Fixed Fee Arrangement.
F or performance of all of the Defined Services by Consultant as herein required, City
shall pay a single fixed fee in the amounts and at the times or milestones or for the De1iverab1es
set forth below:
Single Fixed Fee Amount: $75,000, payable as follows:
Milestone or Event or Deliverable Amount or Percent of Fixed Fee
City of Chu1a Vista Audit
Redevelopment Agency of Chula Vista
Chu1a Vista Redevelopment Corporation
Public Financing Authority
Single Audit Report
Transient Occupancy Tax Audit
CVRC Federal and State Tax Returns
Appropriations Limit
State and Local Transportation Programs
32,000
8,000
4,000
4,000
8,000
14,000
1,000
1,000
3,000
For fiscal years 2006/07 and fiscal year 2007-08 will be $78,000 and $81,000 respectively. For
the two option years after that, the compensation will be increased by the lessor of the increase in
the Consumer Price Index -All Urban (Dec to Dec) or 5%.
Rate Schedule .
( ) 1. Interim Monthly Advances. The City shall make interim monthly
advances against the compensation due for each phase on a percentage of
completion basis for each given phase such that, at the end of each phase
only the compensation for that phase has been paid. Any payments made
hereunder shall be considered as interest tree loans which must be returned
to the City if the Phase is not satisfactorily completed. If the Phase is
satisfactorily completed, the City shall receive credit against the
compensation due for that phase. The retention amount or percentage set
forth in Paragraph 19 is to be applied to each interim payment such that, at
2-29
Page 22
the end of the phase, the full retention has been held back from the
compensation due for that phase. Percentage of completion of a phase
shall be assessed in the sole and unfettered discretion by the Contracts
Administrator designated herein by the City, or such other person as the
City Manager shall designate, but only upon such proof demanded by the
City that has been provided, but in no event shall such interim advance
payment be made unless the Contractor shall have represented in writing
that said percentage of completion of the phase has been performed by the
Contractor. The practice of making interim monthly advances shall not
convert this agreement to a time and materials basis of payment.
B. () Phased Fixed Fee Arrangement.
For the performance of each phase or portion of the Defined Services by Consultant as
are separately identified below, City shall pay the fixed fee associated with each phase of
Services, in the amounts and at the times or milestones or Deliverables set forth. Consultant
shall not commence Services under any Phase, and shall not be entitled to the compensation for a
Phase, unless City shall have issued a notice to proceed to Consultant as to said Phase.
Phase Fee for Said Phase
l. $
2. $
3. $
( ) 1. Interim Monthly Advances. The City shall make interim monthly
advances against the compensation due for each phase on a percentage of
completion basis for each given phase such that, at the end of each phase
only the compensation for that phase has been paid. Any payments made
hereunder shall be considered as interest free loans which must be returned
to the City if the Phase is not satisfactorily completed. If the Phase is
satisfactorily completed, the City shall receive credit against the
compensation due for that phase. The retention amount or percentage set
forth in Paragraph 19 is to be applied to each interim payment such that, at
the end of the phase, the full retention has been held back from the
compensation due for that phase. Percentage of completion of a phase
shall be assessed in the sole and unfettered discretion by the Contracts
Administrator designated herein by the City, or such other person as the
City Manager shall designate, but only upon such proof demanded by the
Page 23
2-30
City that has been provided, but in no event shall such interim advance
payment be made unless the Contractor shall have represented in writing
that said percentage of completion of the phase has been performed by the
Contractor. The practice of making interim monthly advances shall not
convert this agreement to a time and materials basis of payment.
C. ( ) Hourly Rate Arrangement
For performance of the Defmed Services by Consultant as herein required, City shall pay
Consultant for the productive hours of time spent by Consultant in the performance of said
Services, at the rates or amounts set forth in the Rate Schedule hereinbelow according to the
following terms and conditions:
(I) () Not-to-Exceed Limitation on Time and Materials Arrangement
Notwithstanding the expenditure by Consultant of time and materials in
excess of said Maximum Compensation amount, Consultant agrees that
Consultant will perform all of the Defined Services herein required of Consultant
for $ including all Materials, and other "reimbursables"
("Maximum Compensation").
(2) () Limitation without Further Authorization on Time and Materials
Arrangement
At such time as Consultant shall have incurred time and materials equal to
("Authorization Limit"), Consultant shall not be entitled to
any additional compensation without further authorization issued in writing and
approved by the City. Nothing herein shall preclude Consultant from providing
additional Services at Consultant's own cost and expense.
Rate Schedule
Category of Employee
of Consultant
Name
Hourly
Rate
Partner
$150
Manager
$110
Senior
$80
Page 24
2-31
Professional Staff
Clerical
$70
$35
( )
Hourly rates may increase by 6% for services rendered after [month], 20 ,
if delay in providing services is caused by City.
II. Materials Reimbursement Arrangement
For the cost of out of pocket expenses incurred by Consultant in the performance of
services herein required, City shall pay Consultant at the rates or amounts set forth below:
(x) None, the compensation includes all costs.
Cost or Rate
() Reports, not to exceed $
() Copies, not to exceed $
() Travel, not to exceed $
() Printing, not to exceed $
() Postage, not to exceed $
() Delivery, not to exceed $
() Long Distance Telephone Charges,
not to exceed $
() Other Actual Identifiable Direct Costs:
, not to exceed $
, not to exceed $
12. Contract Administrators:
City: Maria Kachadoorian, Director of Finance/Treasurer
Consultant: Kathryn Beseau, Engagement Partner
13. Liquidated Damages Rate:
( ) $_ per day.
( ) Other:
14. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest
Code:
( ) Not Applicable. Not an FPPC Filer.
Page 25
2-32
( ) FPPC Filer
( ) Category No. I. Investments and sources of income.
( ) Category No.2. Interests in real property.
( ) Category No.3. Investments, interest in real property and sources of
income subject to the regulatory, permit or licensing authority of the
department.
( ) Category No. 4. Investments in business entities and sources of income
which engage in land development, construction or the acquisition or sale
of real property.
( ) Category No.5. Investments in business entities and sources of income of
the type which, within the past two years, have contracted with the City of
Chula Vista (Redevelopment Agency) to provide services, supplies,
materials, machinery or equipment.
( ) Category No.6. Investments in business entities and sources of income of
the type which, within the past two years, have contracted with the
designated employee's department to provide services, supplies, materials,
machinery or equipment.
( ) Category No.7. Business positions.
( ) List "Consultant Associates" interests in real property within 2 radial miles of Project
Property, if any:
15. ( ) Consultant is Real Estate Broker and/or Salesman
16. Permitted Subconsultants:
Page 26
2-33
18 Bill Processing:
AO Consultant's Billing to be submitted for the following period of time:
( x) Monthly
( ) Quarter! y
( ) Other:
BO Day of the Period for submission of Consultant's Billing:
( ) First of the Month
( ) 15th Day of each Month
( ) End of the Month
( ) Other:
CO City's Account Number: Various
19 Security for Performance
( ) Performance Bond, $
( ) Letter of Credit, $
( ) Other Security:
Type:
Amount: $
(x) Retention. If this space is checked, then notwithstanding other provisions to the
contrary requiring the payment of compensation to the Consultant sooner, the City
shall be entitled to retain, at their option, either the following "Retention
Percentage" or "Retention Amount" until the City determines that the Retention
Release Event, listed below, has occurred:
(x) Retention Percentage: 10%
( ) Retention Amount: $
Retention Release Event:
(x) Completion of All Consultant Services
( ) Other:
Page 27
2-34