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HomeMy WebLinkAboutAgenda Packet 1996/10/01 Tuesday, October 1, 1996 4:00 p.m. II.! r'Cr:'~I:"! !..:nf",'}~' ppn'1!ty of porjury that} p"" em"~.;)/c< h. ~' ;' , of Chu;<J, Vista in ti1C 0,- Jii:e 0";' re (), .Jd ei'1~ ! J:os'.e:j tUs /\t;cn<;~~/t~~ ';) :1 th.] Bull-s:iin BJard at the Pub!jCO,::.?rvl~,s b1J .'."In; .mOat City Hall.,!:,.... DATED. ~~/5/ SIGNED 0/ ~~ . Re1!Ular Meetin~ of the City of Chula Vista City Council Council Chambers Public Services Building CALL TO ORDER 1. ROLL CALL: Councilmembers Aleyy _, Moot _, Padilla _, Rindone _' and Mayor Horton _" 2. PLEDGE OF ALLEGIANCE TO THE FLAG. SILENT PRAYER 3. APPROVAL OF MINUTES: None submitted. 4. SPECIAL ORDERS OF THE DAY: a. Special presentAtion to the Mayor and City Council by Jim Fergus of the Chula VistA Downtown Business Association. "''''''''''''' Effective April I, 1994, there have been new amendments to the Brown Act. The City Council must now reconvene into open session to report any final actions taken in closed session and to adjourn the meeting. Because of the cost involved, there will be no videotaping of the reconvened portion of the meeting. However, final actions reported will be recorded in the minutes which will be available in the City Clerk's Office. "''''**''' CONSENT CALENDAR (Items 5 through 9) The staff recommenrlations regarding the following items listed under the Consent Calenrlar will be enacted by the Council by one motion without discussion unless a Councilmember, a member of the public or City staff requests that the item be pulled for discussion. If you wish to speak on one of these items, please fill out a "Request to Speak Form" available in the lobby and submit it to the City Clerk prior to the meeting. (Complete the green form to speak in favor of the staff recommendation; complete the pink form to speak in opposition to the staff recommenrlation.) Items pulled from the Consent Calendar will be discussed after Board and Commission Recommendations and Action Items. Items pulled by the public will be the first items of business. 5. WRITTEN COMMUNICATIONS: a. Letter from the Acting City Attorney stating that there were no reportable actions taken in Closed Session on 9/24/96. It is recommended that the letter be received and filed. b. Resignation from the Human Relations Commission - Elsie Hashimoto. It is recommended that the resignation be accepted with regret and the City Clerk be directed to post immediately according to the Maddy Act in the Clerk's Office and the Public Library. Agenda -2- October 1, 1996 6. RESOLUTION 18442 APPROVING AGREEMENT WITH THE CITY OF CmCAGO, ADMINISTRATORS FOR A PUBLIC TECHNOLOGIES INCORPORATED GRANT, FOR SERVICES RELATED TO TELECENTER RESEARCH AND OPERATIONS, ACCEPTING AND APPROPRIATING $25,000 TO THE ENERGY CONSERVATION FUND TELECENTER BUDGET AND HIRING AN INTERN ill - In pursuit of additional funding to help offset general Telecenter operations and services costs, staff applied for a grant from Public Technology, Inc. (PTI) in the spring of 1996. PTI is a non-profit organization which operates as the "research and development" division of the National League of Cities. It represents and promotes progressive and entrepreneurial city and county government operations in the United States. Chula Vista was one of nineteen local agencies that received funding from PTI. The City of Chicago entered into a cooperative agreement with the U.S. Department of Energy to administer the Grants for PTI. Staff recommends approval of the resolution. (Environmental Resource Manager) 4/5th's vote required. 7. RESOLUTION 18443 ACCEPTING CALIFORNIA DEPARTMENT OF EDUCATION ADULT BASIC EDUCATION SECTION 321 GRANT FUNDS A WARDED TO THE CHULA VISTA LITERACY TEAM, APPROPRIATING FUNDS, AND AMENDING FlSCAL YEAR 1996/97 BUDGET TO INCLUDE A .18 FULL TIME EQUIVALENT POSITION - On 6/11/96, Council ratified the Library's application for Adult Basic Education, Section 321 grant funds to be awarded over a two-year period, FY 1996/97 and FY 1997/98. First year grant funds, in the amount of $5,840, have been awarded to the Library and will be used to conduct learner needs assessments and progress evaluations and to provide additional hours of supervision and training in the Literacy Center computer learning lab. Staff recommends approval of the resolution. (Library Director) 4/5th's vote required, 8. RESOLUTION 18444 RATIFYING THE LffiRARY'S APPLICATION FOR CALIFORNIA STATE LffiRARY LITERACY PROGRAM TRANSITION GRANT FUNDS, ACCEPTING THE GRANT AWARD, APPROPRIATING FUNDS, AND AMENDING THE FlSCAL YEAR 1996/97 BUDGET TO INCLUDE .85 POSITIONS - Due to the elimination of U.S. Department of Education, Title VI Library Literacy Grant funds from the 1996/97 federal budget, the California State Library is offering a one-time transition grant opportunity to programs who have received federal grants in FY 1995196. These funds are intended to allow literacy programs to continue the work begun under Title VI while affording them time to secure future alternative funding sources. Chula Vista will use these funds to continue a model program begun in 1994 to identify and aid adult learners with language-based learning disabilities, commonly referred to as dyslexia. Staff recommends approval of The resolution. (Library Director) 4/5th's vote required. 9. RESOLUTION 18445 APPROVING CLOSURE OF THIRD A VENUE FROM "E" TO "G" STREETS FOR THE THIRD A VENUE FESTIVAL ON OCTOBER 6, 1996, W AIVING SIDEWALK SALES ORDINANCE, AND WAIVING BUSINESS LICENSE TAXES FOR DOWNTOWN BUSINESS ASSOCIATION AND VENDORS PARTICIPATING IN EVENT - The Chula Vista Downtown Business Association is requesting permission to close Third Avenue between "E" and "G" Street in order to conduct the Third Avenue Festival on Sunday, 10/6/96, from 5:00 a.m. to 8:00 p.m. This will be the sixth annual festival. The festivities for this event will include live entertainment along with approximately 100 arts, crafts, and food booths. Staff recommends approval of the resolution. (Director of Community Development) · · · END OF CONSENT CALENDAR. . . Agenda -3- October 1, 1996 PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES The following items have been advertised and/or posted as public hearings as required by law. [fyou wish to speak to any item, please fill out the "Request to Speak Form" available in the lobby and submit it to the City Clerk prior to the meeting. (Complete the green form to speak in favor of the staff recommendation; complete the pink form to speak in opposition to the staff recommendation.) Comments are limited to five minutes per individual. 10. PUBLIC HEARING ORDINANCE 2690 11. PUBLIC HEARING ADOPTING OTAY RANCH PRE-ANNEXATION DEVELOPMENT AGREEMENT BALDWIN BUILDERS - The purpose of this item is to present a development agreement with Baldwin Builders. On 6/25/96, the Planning Commission and Council considered a series of development agreements with Village Properties, United Enterprises, Greg Smith, and the Foundation. (The Foundation agreement was subsequently split into three separate agreements.) The remaining party who is a property owner of a portion of the Otay Ranch property is Baldwin Builders, which is the trustee for the bankruptcy. Staff recommends Council place the Ordinance on first reading. (Deputy City Manager) Continued from the meeting of 9/24/96. ADOPTING OTAY RANCH PRE-ANNEXATION DEVELOPMENT AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND BALDWIN BUILDERS (first readin~) NOTICE USE OF COPS FUNDING PER AB 3229 - CITIZENS OPTION FOR PUBLIC SAFETY FOR LOCAL LAW ENFORCEMENT SERVICES During the 1996/97 budget process, Council authorized the Police Department to pursue funding for Community Oriented Policing projects. The State budget was adopted appropriating $356,408 to the City as a result of Assembly Bill 3229, Brulte. This bill allocates State money to the local agency for purposes of the Citizens Option for Public Safety COPS Program. Staff recommends approval of the resolution. (Chief of Police) RESOLUTION 18446 ACCEPTING $356,408 FOR LOCAL LAW ENFORCEMENT FROM THE STATE BUDGET TO PAY FOR POLICE PERSONNEL AND RELATED EQUIPMENT TO BE IDENTIFIED 12. PUBLIC HEARING REGARDING EXISTING AND PROPOSED RATES AND CHARGES FOR COX COMMUNICATIONS' BASIC SERVICE TIER AND ASSOCIATED EQUIPMENT AND CABLE PROGRAMMING SERVICES TIER, AS SUBMITTED BY COX COMMUNICATIONS TO THE CITY VIA FEDERAL COMMUNICATION COMMISSION (FCC) FORMS 1235, 1240 AND 1205 - In May 1996, Cox Communications instituted a $3.79 increase in its Cable Programming Services tier. This charge is subject to FCC regulation, thus any complaints must be filed with the FCC. At the same time, Cox proposed to raise its Maximum Permitted Rates for the Basic Service Tier, which is subject to City regulation. Both of these changes were based on costs to upgrade Cox's infrastructure. Further cost-based increases in Maximum Permitted Rates were requested in July, along with decreases in the rates for associated equipment/installations. Staff recommends approval of the resolution. (Principal Management Assistant Young) RESOLUTION 18447 DISAPPROVING UPGRADE-RELATED INCREASES IN MAXIMUM PERMITTED RATES FOR THE BASIC SERVICE TIER; DIRECTING STAFF TO FILE A COMPLAINT WITH THE FCC ON BEHALF OF LOCAL SUBSCRIBERS REGARDING UPGRADE-RELATED INCREASES IN THE CABLE PROGRAMMING SERVICE TIER RATES; APPROVING PROPOSED COST-BASED RATE DECREASES FOR ASSOCIATED EQUIPMENT; AND APPROVING PROPOSED COST- BASED INCREASES IN THE MAXIMUM PERMITTED RATES FOR THE BASIC SERVICE TIER Agenda -4- October I, 1996 ORAL COMMUNICATIONS This is an opportunity for the general public to address the City Council on any subject matter within the Council's jurisdiction that is not an item on this agenda for public discussion. (State law, however, generally prohibits the City Council from taking action on any issues not included on the posted agenda.) If you wish to address the Council on such a subject, please complete the yellow "Request to Speak Under Oral Communications Fonn" available in the lobby and submit it to the City Clerk prior to the meeting. Those who wish to speak, please give your name and address for record purposes and follow up action. Your time is limited to three minutes per speaker. BOARD AND COMMISSION RECOMMENDATIONS This is the time the City Council will consider items which have been forwarded to them for consideration by one of the City's Boards, Commissions and/or Committees. None submitted. ACTION ITEMS The items listed in this section of the agenda are expected to elicit substantial discussions and deliberations by the Council, staff, or members of the general public. The items will be considered individually by the Council and staff recommendations may in certain cases be presented in the altemative. Those who wish to speak, please fill out a "Request to Speak" fonn available in the lobby and submit it to the City Clerk prior to the meeting. Public comments are limited to five minutes. 13. RESOLUTION 18439 WAIVING IMMATERIAL DEFECTS, ACCEPTING BIDS AND AWARDING CONTRACT FOR "PARKING LOT IMPROVEMENTS FOR EUCALYPTUS PARK (PR-211)" - On 9/4/96, bids were received. Tbe general scope of the project includes improving the parking lot adjacent to the American Legion's building at Eucalyptus Park. Tbe work includes, traffic control, removal of alligatored pavement areas and replacement with asphalt concrete pavement, AC leveling courses, P.C.C. pad for trash receptacle, P.C.C. drainage swale, asphalt concrete berm, drainage ditch, splash wan, crushed aggregate base, and other miscellaneous items of work as shown on the plans. Staff recommends approval of the resolution awarding the contract to MJC Construction - Chula Vista. (Director of Public Works) Continued from the meeting of 9/24/96. ITEMS PULLED FROM THE CONSENT CALENDAR This is the time the City Council will discuss items which have been removed from the Consent Calendar. Agenda items pulled at the request of the public will be considered prior to those pulled by Councilmembers. Public comments are limited to five minutes per individual. OTHER BUSINESS 14. CITY MANAGER'S REPORTtS) a. Scheduling of meetings. 15. MAYOR'S REPORTtS) a. Ratification of appointment to the Resource Conservation Commission _ Bob McAlister. b. Setting a future Council workshop on permit streamlining/business responsiveness/standards of service. Continued from the meeting of 9/24/96. Agenda -5- October I, 1996 16. COUNCIL COMMENTS Councilmember Rindone a. Assignment of Department Oversight within the City Manager's Office as of 10/1196. Council member Alevv b. Report on relocation of Minor Leagne Baseball Club to Chula Vista. ADJOURNMENT The meeting will adjourn to (a closed session and thence to) the regular City Council meeting on October 8, 1996 at 6:00 p.m. in the City Council Chambers. A Regular Meeting of the Redevelopment Agency will be held immediately following the City Council meeting. ***** CLOSED SESSION Unless the City Attorney, the City Manager or the City Council states otherwise at this time, the Council wiU discuss and deliberate on the following items of business which are pennitted by law to be the subject of a closed session discussion, and which the Council is advised should be discussed in closed session to best protectthe interests of the City. The Council is required by law to return to open session, issue any reports oj final action taken in closed session, and the votes taken. However, due to the typical length of time taken up by closed sessions, the videotaping wiU be tenninated at this point in order to save costs so that the Council's return from closed session, reports of final action taken, and adjournment wiU not be videotaped. Nevertheless, the report of final action taken wiU be recorded in the minutes which wiU be available in the City Clerk's Office. 17. CONFERENCE WITH LEGAL COUNSEL REGARDING: 1. Existing litigation pursuant to Government Code Section 54956.9 · Christopher vs. the City of Chula Vista. · SNMB, L.P. vs. the City of Chula Vista and MCA. 2, Anticipated litigation pursuant to Government Code Section 54956.9 . Metro sewer issues. PUBLIC EMPLOYEE RELEASE - Pursuant to Government Code Section 54957. PUBLIC EMPLOYEE APPOINTMENT - Pursuant to Government Code Section 54957. . City Attorney Agenda -6- October 1, 1996 CONFERENCE WITH LABOR NEGOTIATOR - Pursuant to Government Code Section 54957.6 · Agency negotiator: John Goss or designee for CVEA, WCE, POA, IAFF, Executive Management, Mid-Management, and Unrepresented. Employee organization: Chula Vista Employees Association (CVEA) and Western Council of Engineers (WCE), Police Officers Association (POA) and International Association of Fire Fighters (IAFF). Unrepresented employee: Executive Management, Mid-Management, and Unrepresented. 18. REPORT OF ACTIONS TAKEN IN CLOSED SESSION ***** ~~~ ~{~ =--~ ~~ 01Y OF 0tlJIA VISTA MFMOR A NDITM September 25, 1996 TO The Honorable Mayor and City Council J\ ~ John D. Goss, City Manager~ ~ ~ \ City Council Meeting of October 1, 1996 FROM SUBJECT This will transmit the agenda and related materials for the regular City Council meeting of Tuesday, October 1, 1996. Comments regarding the Written Communications are as follows: 5a. This is a memo from the Acting City Attorney regarding actions taken in Closed Session on September 24, 1996. IT IS RECOMMENDED THAT THIS LETTER BE RECEIVED AND FILED. 5b. IT IS RECOMMENDED THAT ELSIE HASHIMOTO'S RESIGNATION FROM THE HUMAN RELATIONS COMMISSION BE ACCEPTED WITH REGRET AND THE CITY CLERK BE DIRECTED TO POST IMMEDIATELY ACCORDING TO THE MADDY ACT IN THE CLERK'S OFFICE AND THE LmRARY. ~~~ ~ ~~~~ OlY OF CHUIA VISTA OFFICE OF THE CITY A TIORNEY Date: September 25, 1996 To: From: The Honorable Mayor and City Council Ann Y. Moore, Acting City Attorney f'~- Re: Report Regarding Actions Taken in Closed Session for the Meeting of 9/24/96 The City Council met in Closed Session to discuss Public Employment Discipline, Public Employment Release and labor negotiations. The Acting city Attorney hereby reports to the best of her knowledge from observance of actions taken in the Closed Session of September 24, 1996, there were no actions that are required to be reported under the Brown Act. AYM: 19k C:\lt\clo5sess.no ~~~J 276 FOURTH AVENUE. CHULA VISTA. CALIFORNIA 91910 . (619) 691-5037 . FAX (619) 585-5612 'i~y PooI.ca....-~PiP/I September 23, 1996 TO: Beverly Authelet, City Clerk FROM: Armando Buelna, Assistant to the Mayor and Council ~ SUBJECT: RESIGNATION FROM THE HUMAN RELATIONS COMMISSION This is to inform you that Elsie Hashimoto has verbally resigned from the Human Relations Commission. Please place this item on the next available agenda to allow the City Council to formally accept her resignation. ab cc: Karen Wooten, Human Relations Commission Secretary 0b-j ~ Page I, Item Date: October 1. 1996 COUNOL AGENDA STA1EMENT Resolution / X.y i ~Pproving agreement with the City of Chula Vista and the City of Chicago, administrators for a Public Technologies Incorporated grant, for services related to Telecenter research and operations, accepting and appropriating $25,000 to the Energy Conservation Fund Telecenter budget and hiring an intern ill. Submitted ~: Barbara Bamberger, EnvirO~~ Resource Manage)..,. ~~ Reviewed ~: City Manager.jC4 ~ ~~\ (4/Sth vote: Yes X No_) In pursuit of additional fimding to help offset general Telecenter operations and services costs, staff applied for a grant ITom Public Technology, Inc. (PT1) in the spring of 1996. PTI is a non-profit organization which operates as the 'research and development' division of the National League of Cities. It represents and promotes progressive and entrepreneurial city and county government operations in the United States. Chula Vista was one of nineteen local agencies that received fimding ITom PTI. The City of Chicago entered into a cooperative agreement with the U.S. Department of Energy to administer the Grants for PTI. Staff is recommending approval of the contract with the City of Chicago. Item TItle: RECOMMENDATIONS: Approve agreement with the City of Chicago for services related to Telecenter research and operations, accepting and appropriating $25,000 to the Energy Conservation Fund Telecenter budget and hiring an intern ill. BOARDS/COMMISSION RECOMMENDATIONS: The Telecenter Task Force has been supportive of identifYing additional grants to continue operating the Telecenter. DISruSSION: In the spring of 1995, staff applied for grant fimding ITom the Public Technology Inc., Urban Consortium Energy Task Force to offset general Telecenter operations and services costs. PTI accepted the application and agreed to provide $25,000 to the City. These fimds will be used for the creation of a technology transfer guide book that will be used by other local city/government agencies in the United States. The fimding will also pay for existing staff full time for 6 months and a new intem The intern will be a .1 FIE intem ill position at 8 hours per week for 6 months and some additional operational costs. The first Telecenter opened in August of 1994 in the Eastern portion of Chula Vista, the second Telecenter opened in February of 1995, in downtown Chula Vista. The Telecenter's goals are to, (a) facilitate the use of hi-tech telecommunications, (b) provide a greater quality of life for Chula Vista residents by reducing commute time to and ITom work, ( c) reduce traffic congestion. The Telecenters reduce vehicular trips, traffic congestion, improve air quality, promote the use of technology and offer training, improving communications between the business community and the global information network. i? - / Page 2, Item Date: October 1. 1996 The main focus of the first year of telecenter operations was to learn how to attract and retain telecommuters, run the center effectively, and develop partnerships with partners such as universities and business service providers. Substantial time was committed to initial set-up activities. The Telecenters were recognized nationally & statewide by many agencies. In addition, the Telecenters were part of a case study for the U.S. Environmental Protection Agency's Office of Policy, Planning, and Evaluation to determine progress towards goals committed to in the Climate Change Action Plan of 1993. In year two, the Telecenter concept is being refmed and emphasis is on expanding operations and increasing telecommuter occupancy. Like any small start-up business, the fIrst three years of a new product are a struggle. We are moving toward self-sufficiency; in just two years since opening, the City has generated over $33,000 in revenue through Telecenter usage. The PTI fImds will defiay existing staff costs and other direct costs such as postage, printing, travel and telephone costs. Staff is recommending approval of the agreement and budget therefor. 01y of Cbicl1fo Omtrnct Sco.pe of WOIk Under contract with the City of OJicago, the City of Chula Vista will provide management and administrative oversight for the day-to-day operations of the Telecenter. Chula Vista staff will collect market data, operational experience, and product performance records which will be valuable to other agencies interested in implementing similar programs. The City of Chula Vista will be awarded $25,000 to produce a guidebook that can be used by other jurisdictions interested in developing and implementing a telecenter. The City will: 1: Conduct background researeh I.I: Examine the experience of other California hased Telecenters through researching existing studies and conducting interviews with other Telecenters. Compare elements with other Telecenters successes and failures and report on the differences. 1.2: Evaluate overall Telecenter effectiveness hased on occupancy rates, shared-usage partnerships, and energy savings. 2: Pelfonn evaluation of demonstrated eneIgy savings through vehicle miles of travel (VMI) data coIlectiolL 2.1: Track and evaluate Telecenter usage and travel distance information through collecting survey information and daily telecenter sign in logs. 3: Develop a Guide Book that can be moo by other jurisdictions interested in developng and implelllenting a Telecenter. 3.1: Prepare an executive summary that will be attached to the fmal guidebook. t. "') ':>'-...... Page 3, Item Date: llioher 1. 1996 3.2: The guide book will include: A. Project Description B. Criteria for locating telecenters C. Start up and General Operations D. Marketing a telecenter E. Training and educating Managers and their Employees at developing a successful telecommuting program F. Evaluation criteria used in tracking energy savings G. General Pro's and Con's of Building a Telecenter in Your Jurisdiction FISCAL IMPACf: There is no impact to the General Fund. Upon approval, the City will receive $25,000 in fimding from the City of Chicago. This will increase the telecenter budget by $25,000 and will be appropriated from the Energy Conservation Fund into a new account 280-2802. AfuwhrnPJ)js: 1. Budget 2. City of Chicago, Department of Environment ContrrJct and Work PlI11l for PTI's Urban Consortium -- Energy Task Force Energy Technology Grant Program --; Ii.- -_) Page 4, Item Date: October I. 1996 Attaclunent I Energy ConselVation Fund Telecenter Project 280-2802 AccOImt Catego')' Total Amowrt 5105 Hourly Wages $19,658 Telecenter Director........................................ $17,930 Intern 111..................................................... $ 1.728 5141 Pers (8.31%) 1,490 5143 Medicare (1.45%) Pars (3.75%) 285 5145 65 5221 Travel 1,500 200 5301 Office Supplies Printing and Binding 590 5212 5252 Telephone 912 5218 Postage 300 WfAL: $25,000 !c-y RESOLUTION NO. 1%1/7,;) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND THE CITY OF CHICAGO, ADMINISTRATORS FOR A PUBLIC TECHNOLOGIES INCORPORATED GRANT, FOR SERVICES RELATED TO TELECENTER RESEARCH AND OPERATIONS, ACCEPTING AND APPROPRIATING $25,000 TO THE ENERGY CONSERVATION FUND TELECENTER BUDGET AND HIRING AN INTERN III WHEREAS, in pursuit of additional funding to help offset general Telecenter operations and services costs, staff applied for a grant from Public Technology, Inc. (PTI) in the spring of 1996; and WHEREAS, PTI is a non-profit organization which operates as the "research and development" division of the National League of Cities; and WHEREAS, PTI represents and promotes progressive and entrepreneurial city and county government operations in the united States; and WHEREAS, Chula vista was one of nineteen local agencies that received funding from PTI; and WHEREAS, the city of Chicago entered into a cooperative agreement with the U. S. Department of Energy to administer the grants for PTI; and WHEREAS, staff is recommending approval of the contract with the City of Chicago. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby approve the Agreement between the City of Chula vista and the City of Chicago, administrators for a Public Technologies Incorporated grant, for services related to Telecenter research and operations, a copy of which is on file in the office of the City Clerk as Document No. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista is hereby authorized to execute said Agreement for and on behalf of the city of Chula Vista. BE IT FURTHER RESOLVED that the City Council does hereby accept and appropriate $25,000 from the Energy Conservation Find into Account 280-2802 as set forth n Attachment 1. 1 ti. ~~ BE IT FURTHER RESOLVED that said funding will also pay for staff which will include one .05 FTE staff person at 40 hours per week for a total of 6 months, one .01 FTE Intern III position at 8 hours per week for 6 months and some additional operational costs. Presented by Approved as to form by Barbara Bamberger, Environmental Resource Manager ~JIhCU a7~~ fIR- .. Jr//( a ~~/. '- A nc . Moore, ~ting i Attorney C:\rs\grant.pti 2 ~~/; ~.."_: , . CitI of Chicago Richard M. D~I.y, MaIor ()4o:!'~rtmtnt or [a\'ironmcnt Hrnry L Hendtr50n Commissioner 1wtnt)'.firlh Floor 30 North LaSall, Str,,1 Chicago. Illinois 60602-2575 (312) 744.7606 (Vnice) (312)744-6451 (FAX) (312) 744.35g6 (ITY) frr:: ENERGY TASK FORCE URBAN CONSORTIUM MEMORANDUM TO: PROJECT DIRECTORS CO ULTANTS RE: Year XVIII Contractual and Fiscal Guidelines Contract Preparation DATE: July 29, 1996 Enclosed is a copy of the Energy Task Force Year XVIlI Administrative and Reporting Guidelines. Each city/county receiving Energy Task Force funding is required to execute a contract with the City of Chicago and to comply with these guidelines. Please review this document carefully. As you may know, a meeting of all Project Directors is held at the beginning of each grant year to initiate the research program. This year's "kick-off' meeting is now being planned for September 18-21, 1996, in Chicago, Illinois. We would like to give you an opportunity to review the guidelines. prepare contraCtual and fiscal materials, and obtain signatureS prior to this initial meeting (if possible). The preparation of these items in advance of this Fall meeting will significantly expedite the contract process. Please submit one copy of the contract with five (5) fully executed signature pages. Fully'txecuted contracts with the City of Chicago require work programs, project budgets 'II1d other contractual language as 'Petified in the guidelines. Conti1.tLs al~~ require the signature of responsible officials from your city/county, the Chairman of the Energy Task Force, and City of Chicago officials. ... ... ~. / / Please bring the following completed documents to the kick-off meeting (if possible). 1. Contract Agreement (One Copy) 2. Signature Pages (5 Originals) 3. Work program (as per information from PTI, Inc. sent under separate cover) (One Copy) 4. Project Budget Cover Page (One Copy) 5. Budget Summary (One Copy) 6. Budget Justification (One Copy) 7. Personnel (One Copy) 8. Overhead Rate Approval (One Copy - This form was included in your RFP package) 9. Signature Authorization and Depository Designation (Two Originals) 10. Fiscal Representative (Two Copies) . (Please see sample contract package) Your work program will be subject to peer review, led by your Unit Manager. I will be available to answer questions regarding contractual and procedural issues. Even though some work program and budgetary details may be modified as a result of the peer review, such modifications can typically be accommodated within the bounds ofUCETF contracts. We therefore urge you to not delay on the preparation and execution of a contract within your jurisdiction, and to bring with you as much of your completed contractual documentation as possible. Good Luck with your Year XVIII project. We look forward to another exciting and productive year. If you have any questions prior to the meeting, please contact me (312)744-3637. See you in Chicago! Enclosure cc: Mike Lindberg 2- INTRODUCTION The Contractual Guidelines provide all the necessary information to complete your Contract. This includes the Form Instructions and an example of the Contract. CONTRACT INSTRUCTIONS This section contains the format for the official contract between the City of Chicago and all cities, counties and consultants for the Year Eighteen Energy Task Force Grant. Please use the contract form contained in this section. The final contract, signed by your Mayor or Chief Executive Officer, must be notarized. The City of Chicago requires that your organization provide one copy of the contract document, and five original notarized signature pages. Upon completion of the formal contract process, a copy of the contract with all signatures will be returned to your jurisdiction. Do not make changes to the contract. Any changes will require an individual review of the entire contract and its terms by various departments of the City of Chicago, and may result in a delay in the award of the contract and receipt of funding by your agency. If you require changes to the contract, call Unda Davis at (312)744-3637 or bring these changes with you to the kick-off meeting. 1 .3 Your entire contract, when submitted to Chicago, will consist of: A. One original Contract Agreement containing five (5) notarized original signature pages. B. Documentation of signature authorization if someone other than the Mayor City Manaaer or Chief Executive Officer of a municipalitv executes the Aareement. (Attachment 1 page .A- example of signature authorization letter.) The following attachments will be provided: Exhibit .Q. - DOE Publications Requirements. Exhibit..E... - DOE Equal Employment Requirements (The Assurance of Compliance with the Department of Energy Regulation Under TItle VI of the Civil Rights Act of 1964). ~ (5) originals should be attached to vour contract.) Exhibit..E - Contract Regulations. The following documentation should be provided by your organization as an attachment to each of the submitted Contract Agreements. Exhibit A - Work Program. Exhibit B - Budget Package. A complete paqkage of all the items needed for the preparation of the Contract Agreement is included. Five copies of the signature page should be submitted with oriainal i signatures. Exhibits (A) and (B) shall be identical to the final work program and budget ~ 2 approved by your Unit Manager. You have recently been mailed instructions on preparing that work program and budget by Public Technology, Inc. All sianature oaoes are to be orooerty notarized. Note that notarY siQnature. seal and exoiration date of commission should be cited. Energy Task Force Consultants must provide the following documentation in addition to those listed above: a. Exhibit C - Contractor's Affidavit b. Schedule C-1 (Letter of Intent from MBENVBE to perform as Subcontractor, Supplier and/or Consultant) c. Schedule D-1 (Affidavit of MBENVBE Goal Implementation Plan) 3 <)' ATTACHMENT 1 SAMPLE AUTHORIZATION LETTER OFFICE OF THE MA VOR CITY OF ELM DATE Linda Davis Assistant to the Commissioner City of Chicago Department of Environment 30 N. LaSalle Street, Suite 2500 Chicago, Illinois 60602 Dear Ms. Davis: This is to certify that Mr. John Doe of the City of Elm's Department of Public Works, has signature authorization for all matters related to the Urban Consortium Energy Task Force Grant. Sincerely, Robert Johnson Mayor -6- 4 . Agreement Between The City of Chicago (Department of Environment) and City of Chula Vista Pursuant to year 1997 of the Urban Consortium -- Energy Task Force Energy Technology Grant Program Effective October 1.1996 to December 31.1997 Richard M. Daley Mayor ( 7 -,- . ARTICLE 1- ARTICLE 2. ARTICLE 3. 3.01 3.02 3.03 3.04 3.0S 3.06 3.07 3.08 3.09 3.10 3.11 ARTICLE 4. ARTICLE 5. ARTICLE 6. 6.01 6.02 6.03 6.04 ARTICLE 7. ARTICLE 8. ARTICLE 9. ARTICLE 10. ARTICLE 11. 11.01 11.02 11.03 ARTICLE 12. 12.01 12.02 ( TABLE OF CONTENTS EMili INCORPORATION OF RECITALS 2 DEFINITIONS . . . . . . . 2 DUTIES AND RESPONSIBILITIES OF THE CONTRACTOR 2 Scope of Project . Personnel . . . . Non-Discrimination Insurance . . . . Indemnity . . . . . . . . Termination for Convenience Non-Expendable Personal Property . Disadvantaged Business Enterprises Audit Requirement .,. Subcontracts . . . . . . . . . . . Environmental compliance . . . . . SPECIAL CONDITIONS FOR CONSTRUCTION REPORTS . . . COMPENSATION Compensation . Reduction of compensation Non-Appropriation Program Income PUBLISHING DPRESENTATIONS . EQUAL EMPLOYMENT OPPORTUNITY PERIOD OF CONTRACT . . . . . . . . Commitment 2 3 3 4 8 8 9 9 10 10 11 11 12 12 12 13 14 14 14 15 lS lS EVENTS OF DEFAULT, REMEDIES, TERMINATION, RIGHT TO OFFSET. SUSPENSION Events of Default Defined Remedies . . . . . . No Damages for Delay . . . GENERAL CONDITIONS . Whole Agreement . . . . . . Modifications and Amendments i -'8.... lS lS 16 18 18 18 18 12.03 12.04 12.05 12.06 12.07 12.08 compliance with all Laws Governing Law . Severability Interpretation Nonassignability Authority 18 19 19 19 19 20 20 ARTICLE 13. NOTICES ARTICLE 14. INCORPORATIONS BY REFERENCE 20 Execution Page Exhibits A through F ii C{- . . AGREEMENT THIS AGREEMENT ("Agreement") is entered into this l~t day of Octnbpr ,1996 by and between the CITY OF CHICAGO (hereinafter referred to as the "City"), a municipal corporation existing under the Constitution of the State of Illinois, acting through its Department of Environment ("Department") and (hula Vista a City of the State of California (hereinafter referred to as the "Contractor") . RECITALS WHEREAS, pursuant to Title 31 U.S.C. 56301 et sea., the City of Chicago, through the Energy Task Force of the Urban Consortium, has entered into a cooperative agreement with the U.S. Department of Energy to administer Energy Technology Grants; and WHEREAS. the City is responsible for the administration of the Energy Technology Grants, and coordinates and communicates the results of the Energy Task Force program among member Cities and Counties of the Urban Consortium; and WHEREAS. federal procurement regulations, as codified in 10 C.F.R., Subpart C, 5600.200 et sea. provide that the City, in its fiscal agency capacity, may process subgrants for member local governments and other applicants in accordance with the City's normal grant and contract procedures; and WHEREAS, it is the objective of the Energy Task Force Program ("Program") to develop and undertake unit projects that will develop urban energy-related technologies that will be transferable to other geographic areas and projects; and ~EAS, the Contractor proposes to: Docu~ent the resul~s of the City of Chula Vista Telecenter project, producing a ~uldebook.that wlll provide guidance on how to make Telecenters work. This gUldebook wlll be transferrable to other City/Government agencies in the U.S. (the "Project"); and ~~1S, the Department has conducted negotiations with the Contractor and the Contractor has agreed to perform all work and services as set forth in this Agreement in order to develop the urban energy-related technology described above (the .Services"), and the Contractor represents that it possesses the necessary capabilities and resources and is ready, willing and able to enter into this Agreement and to provide the SerVices in accordance with the terms and conditions of this Agreement to the full satisfaction of the City; 1 ...w - /D--- NOW THEREFORE, the parties hereto do mutually agree as follows: ARTICLE 1. INCORPORATION OF RECITALS THE ABOVE RECITALS ARE EXPRESSLY INCORPORATED IN AND MADE A PART OF THIS AGREEMENT AS THOUGH FULLY SET FORTH HEREINBELOW. . ARTICLE 2. DEFINITIONS .commissioner" means the commissioner of the Department of Environment of the City or his representative duly authorized in writing to act for the Commissioner in connection with this Agreement. "project" means the project and/or work to be completed by the Contractor, as described in the recitals and as further described in Exhibit A, which is attached hereto and incorporated herein by this reference. .purchasing Agent" means the Purchasing Agent of the City whose duties and responsibilities are more particularly described in the Municipal Purchasing Act for Cities of 500,000 or More population as contained in the Illinois Municipal Code, 65 ILCS 5/8-10-1 et sea., as amended. "R.isk Hanager" means the Risk Manager of the City whose duties and responsibilities include, but are not limited ~o, the review and approval of insurance for City contractors. .Services" means, collectively, the work, services, duties and responsibilities described in Article 3 and 1hthibit A of this Agreement and all work necessary to complete such work, services, duties and responsibilities. ARTICLE 3. DUTIES J.ND RESPONSIBILITIES OF TRE coNTRACTOR 3.01 Scope of PrOject The Contractor agrees to Perform the project and/or work as set forth in the .description of project and/or description of work program" and the budget ~ry which are attached hereto as Ryhibit A and Ii respectively, and are incorporated by reference as if fully set forth here, in a 1IIIU1J1er that is .atisfactory to the City. \ 2 ~ /1- . 3.02 Personnel If assignment of personnel to the project is required for the proper completion of the Project or is otherwise required by this Agreement, then the Contractor agrees to immediately assign and to maintain a staff of competent personnel which is fully equipped and qualified to perform the Services required by this Agreement. The salaries of employees of the Contractor performing work under this Agreement must be paid unconditionally and not. less often than once a month without deduction or rebate on any account except only such payroll deductions as are mandatory by law or permitted by the applicable regulations issued by the Secretary of Labor pursuant to the "Anti-Kickback Act" of June 13, 1934 (48 Stat. 948; 62 Stat. 740; 63 Stat. 108; Title 18 U.S.C. Section 874; and Title 40 U.S.C., Section 276 (c). The Contractor agrees to comply with. all applicable .Anti-Kickback" regUlations and to insert appropriate provisions in all subcontracts covering work under this Agreement to insure compliance with such regulations. The contractor also agrees that it will be responsible for the submission of affidavits required thereunder except as the Secretary of Labor may specifically provide for variations of or exemptions form the requirements thereof. 3.03 Non-Discr~m~p.tion A. Federal Reauir~ments In discharging the responsibilities specifically required by the terms of this Agreement, it will be an unlawful employment practice for the Contractor (1) to fail or refuse to hire or to discharge any individual, or otherwise to discriminate against any individual with respect to his compensation, or the terms, conditions. or privileges of his employment, because of such individual's race, color, religion, sex, age, handicap or national origin; or (2) to limit, segregate, or classify its employees or applicants for employment in any way which would deprive or tend to deprive any individual of employment opportunities or otherwise adversely affect his status as an employee, because of such individual's race, color, religion, sex, age, handicap or national origin. In discharging the responsibilities specifically required by the terms of this Agreement, the Contractor agrees to comply with the Civil Rights Act of 1964, .2 U.S.C. sec. 2000 et sea. (1981), as emended. In such compliance, attention is called to: Bxec. Order No. 11,246 (30 Ped. Reg. 12,319 (1965), nprinted in .2 U.S.C. 2000(e) note, as .~"ded by Bxec. ~er No. 11,375, 32 Ped. Reg. 14,303 (1967) and by Bxec. Order No. 12,086, .3 Ped. Reg. 46,501 (1978)); the Age Discrimination Act, .2 U.S.C. sec. 6101- 6106 (1981); the Rehabilitation Act of 1973, 29 U.S.C. sec. 793- 3 1'2- ,- 794 (1981); the Americans with Disabilities Act, 42 U.S.C. 512101 et sea.; and to 41 C.F.R. Part 60 et sea. (1990). B. State Reauirements In discharging the responsibilities required by the terms of this Agreement, the Contractor agrees to comply with the Illinois Human Rights Act, 775 ILCS 5/1-101 et sea., as amended and any rules and regulations promulgated .in accordance therewith, including, but not limited to, the Equal Employment Opportunity Clause, 5 Ill. Admin. Code 5750 Appendix A. Furthermore, the Contractor agrees to comply with the Public Works Employment Discrimination Act, 775 ILCS 10/0.01 et sea., as amended. C. City Reauirements In discharging the responsibilities specifically required by the terms of this Agreement, the Contractor agrees to comply with the Chicago Human Rights Ordinance, ch. 2-160, section 2-160-010 fi ~ of the Municipal Code of Chicago, as amended. Further, the Contractor agrees to furnish and to cause each of its subcontractor(s) to furnish such reports and information as requested by the Chicago Commission on Human Relations. D. Subcontractors Reauired to Comulv The Contractor hereby agrees that all of the provisions set forth in this Section 3.03 will be incorporated in all Subcontracts entered into with any suppliers of materials, furnishers of services, subcontractors of any tier, and labor organizations which furnish skilled, unskilled and craft union skilled labor, or which may provide any materials, labor or services in connection with this Agreement. The Contractor agrees to cause its Subcontractors to execute such certificates as may be necessary in furtherance of these provisions. Such certifications will be attached and incorporated by reference in the applicable Subcontracts. In the event that any -Subcontractor is a partnership or joint venture, the Contractor will also include provisions in its subcontract insuring that the entities comprising such partnership or joint venture will be jointly and severally liable for its obligations thereunder. 3.04 Insurance A. %J1surance to be Provided by. the Contractor The Contractor agrees to procure and to maintain at all times, at the Contractor's own expense, during the term of this Agreement, and until final acceptance of all of the work and/or Services 4 - / ~- covered under this Agreement, the types of insurance specified below, with insurance companies authorized to do such business in the State of Illinois covering all Services to be performed under this Agreement, whether performed by the Contractor or by its subcontractors" The Contractor may, subj ect to the review and approval of the Risk Manager, provide self-insurance. The kinds and amounts of insurance required are as follows: 1. Workers's ComDensation and OccuDational Disease Insurance Worker's Compensation and Occupational Disease Insurance in accordance with the laws of the State of lllinois, or any other applicable jurisdiction, covering all employees who are to provide any work or services under this Agreement. Employer's liability coverage will be included and will have limits of not less than $100,000 per each accident or illness. Coverage extensions will include: all states endorsement, alternate employer and voluntary compensation endorsement, when applicable. 2 " Commercial Liabilitv Insurance . Commercial Liability Insurance or equivalent with limits of not less than $500,000 per occurrence, combined single limit, for bodily injury, personal injury, and/or property damage liability. Coverage extensions will include the following: all premises and operations, products/completed operations (for a minimum of two (2) years following project completion), explosion, collapse, underground, independent contractors, cross liability, and contractual liability (with DQ limitation endorsement). Independent contractors, and contractual liability coverages are to be included. The City of Chicago, its employees, elected officials, agents and representatives are to be named as additional insureds, on a primary, noncontributory basis for any liability arising directly from the work. 3. Automobile Liabilitv Insurance When any motor vehicles (owned, non-owned and hired) are used in connection with the work to be performed, the Contractor will provide Comprehensive Automobile Liability Insurance with limits of not less than $500,000 per occurrence, combined single limit, for bodily injury and property damage. "The City of Chicago is to be named as an additional insured on a primary non-contributory basis. 5 ILl ,- 4. Professional Liabilitv Insurance When any architects, engineers. construction managers or consultants perform work in connection with the Services to be rendered under this Agreement, Professional Liability Insurance covering acts, errors and/or omissions will be maintained with limits of not less than $500,000. Coverage extensions will include contractual liability. When policies are renewed or replaced the policy retroactive date must coincide with or precede the start of the performance of the Services under this Agreement. A claims-made policy which is not renewed or replaced must have an extended reporting period of two (2) years. 5. Self Insurance To the extent permitted by law, the Contractor may self insure for the insurance requirements specified above, it being expressly understood and agreed that, if the Contractor does self-insure the insurance requirements enumerated above, the Contractor will bear all risk of loss for any loss which would otherwise have been covered by insurance policies, and the self insurance program will comply with at least the insurance requirements as stipulated above. B. Related Requirements The Contractor agrees to furnish the City of Chicago, Department of Purchases, Contracts and Supplies, Room 403, l.2l. North LaSalle Street, Chicago, Illinois 60602, original Certificates of Insurance evidencing the coverages stated above and renewal certificates of insurance, or such similar evidence, if the coverages have an expiration or renewal date during the term of this Agreement. The Contractor agrees to submit evidence of insurance on the City of Chicago Insurance Certificate of coverage Form (copy attached) prior to initiating the Services pursuant to this Agreement. The City will not allow the Contractor to commence work and/or Services under this Agreement until all insurance is purchased and evidence of it is received and approved by the City. The receipt of any certificate of insurance does not constitute agreement by the City that the insurance requirements of this Agreement have been fully met or that the insurance policies indicated on the certificate are in compliance with all Agreement requirements. The failure of the City to obtain certificates or other evidence of insurance from the Contractor before permitting the Contractor to commence work will not be deemed to be a waiver by the City, and the Contractor will remain under the continuing obligation to maintain the coverages and to supply the certificates. 6 -/.<)"- The Contractor agrees to advise all insurers of the provisions of this Agreement regarding insurance. Non-conforming insurance will not relieve the Contractor of its obligation to provide insurance as specified in this Agreement. . Non-fulfillment of the insurance obligations may constitute a violation of this Agreement. The Contractor agrees to carry all insurance/self-insurance specified above until all services and or work required to be performed by this Agreement are satisfactorily completed. Failure to carry or keep such insurance in force will constitute a default of this Agreement, and the City maintains the right to stop work until proper evidence of insurance is provided. The Contractor agrees to require all subcontractors to carry the insurance required herein, and the Contractor may, at its option, provide the coverage for any or all subcontractors and if so, the e~idence of insurance submitted will so stipulate. Any and all deductibles on referenced insurance coverage will be borne by the Contractor. The City maintains the right to modify, delete, alter or change these requirements. . Insurance policies will provide for sixty (60) days prior written notice to be given to the City in the event coverage is substantially changed, canceled, or non-renewed. Any and all deductibles and/or self-insured retentions on referenced insurance coverages will be borne by the Contractor. The Contractor, and each subcontractor, agrees that all insurers will waive their rights of subrogation against the City, its employees, agents, elected officials, and representatives. The Contractor expressly understands and agrees that any coverages and limits furnished by the Contractor will in no way limit the Contractor's liabilities and responsibilities specified within this Agreement or by law. The Contractor expressly understands and agrees that any insurance or self-insurance programs maintained by the City will apply in excess of and will not contribute to insurance provided by the Contractor pursuant to the terms of this Agreement. The Contractor understands and agrees that the insurance coverages required by this Agreement will not be limited by any limitations expressed in the indemnification language contained in this Agreement, or by any legislative limitation on such indemnity provided for or referenced in any indemnification provision of this Agreement. The Contractor expressly understands and agrees that any 7 - Ib - insurance protection furnished by Contractor hereunder will in no way limit its responsibility to indemnify and save harmless the City under the provisions of this Agreement. If the Contractor, or any of its subcontractors, desires additional coverage, higher limits of liability, or other modifications for its own protection, the Contractor or such subcontractor will solely be responsible for the acquisition and cost of such additional protection. The City's Risk Management Department retains the right to modify, delete, alter or change these insurance requirements at any time. 3 .05 ZDdemni ty To the extent not prohibited by law, the Contractor agrees to defend, indemnify and hold the City, its officers, officials, agents and employees, completely harmless from and against any and all liabilities, losses, suits, claims, judgments, fines or demands of every kind and nature (including all reasonable costs for investigation, reasonable attorneys' fees, court costs and expert fees) arising directly or indirectly out of, as a consequence of, or incidental to the Contractor's performance or non-performance of this Agreement or the enforcement thereof, including without limitation: the enforcement of this indemnification provision; the acts or omissions of any of the Contractor's officers, agents, employees. subcontractors, licensees or invitees; liabilities arising by reason of injury or death of any person, damage to property, or patent or copyright infringement; and/or violation of any applicable laws, statutes or ordinances of the federal, state or local government, upon notice from the City of any claim or liability which the City believes to be covered under this provision. The Contractor will defend all suits brought upon such claims and lawsuits and will pay all costs and expenses incidental thereto, but the City will have the right, at its option and expense, to participate in the defense of any suit, without relieving the Contractor of any of its obligations hereunder. This paragraph will survive expiration or early termination of this Agreement. 3.06 '1'exmina tion for Convenience The City may terminate this Agreement, or any portion thereof to be performed, at any time by a notice in writing from the City to the Contractor. If the Agreement is terminated by the City, as provided berein, the Contractor will deliver to the City all finished or unfinished documents, data, studies, and reports prepared by Contractor under this Agreement. payment for the work performed before the effective date of such termination will be 8 ~ 17 - based upon a proration of the work actually performed by Contractor to the date of termination. Such proration will be mutually agreed upon by the commissioner. the Purchasing Agent and Contractor. payment made by the City pursuant to such agreed-upon proration will be in full settlement for all Services rendered under this Agreement. 3.07 Non-Expendable Personal Property . The Contractor agrees to comply with all Federal, State and Local laws and ordinances regarding property management including, but not limited to, the following: The Contractor agrees to request and receive written authorization from the City prior to the purchase of tangible personal property having a useful life of more than one year and an acquisition cost of $300 or more per unit with funds received pursuant to this Agreement ("Non-expendable Personal Property"). The parties agree that all Non-expendable Personal Property will be the property of the City to the extent that such property is not the property of the Federal Government. The Contractor will maintain a current inventory listing of such Non-expendable Personal Property and will deliver a copy of such listing to the City on an annual basis. The Contractor further agrees to return all Non-expendable Personal Property to the City upon the termination of the Project. However, upon the receipt of the final inventory of all such property, the City may elect to allow such property to remain in the possession of the Contractor if the City, in its sole discretion, determines that the Non-expendable Personal property is necessary for the performance of any new or other services by the Contractor for the City. 3.08 Disadvantaged Business Ente:prises CClllllllitment It is the policy of the City of Chicago that local businesses certified as Disadvantaged Business Enterprises (WDBE") shall have the maximum opportunity to participate fully in the performance of all City contracts. The Purchasing Agent has determined that the nature of the Services to be provided under this Agreement are such that neither direct nor indirect subcontracting opportunities will be practicable or cost-effective. Therefore, there will be no stated goals for DBE participation resulting from this Agreement. This determination is being made pursuant to Section 2-92-450 of the Municipal Code of Chicago.o 9 - I~ - 3.09 Audit Requirement All contractors are required to obtain an audit. Contractors receiving $25.000 or more in total Federal awards must submit an audit conducted in accordance with OMB Circular A-133, the Compliance requirements set forth in OMB Compliance Supplement, and any additional testing and reporting required by the U.S. Department of Housing and Urban Development. Contractors receiving total federal awards of less than $25,000 are required to submit a copy of their organization-wide audited financial statements, conducted in accordance with Government Auditing Standards. If an A-133 audit is required. it must cover the time period specified by OMB Circular A-133 and its implementing regulations. If an organization-wide audited financial statement is required, the audit must, at a minimum. cover the time period in which the Contractor is receiving financial assistance from the City. Audit reports must be completed within six months after the end of the Contractor's fiscal year. The Contractor agrees to submit the audit to the Department of Purchases, Contracts and Supplies and the City Comptroller's Office - Special Accounting Division within thirty days after being received by the Contractor. Contractors receiving over $100.000 must also send a copy of the audit, within the same time frame, to: Federal Audit Clearinghouse Bureau of the Census 1201 E. lOth St. Jeffersonville, IN 47132 Further, the Contractor agrees to submit, with the audit, a report which comments on the findings and recommendations in the audit, including corrective action planned or taken. If no action is planned or taken, no explanation must be included. Copies of written cOlllllUI1ications on non-material compliance findings will be submitted to the abovementioned parties. The City and the Department of Energy retain the right to independently audit the Contractor. If the Contractor is found in non-compliance with these audit requirements, by either the City or federal agency, the Contractor may be required to refund any financial assistance received from the City or federal agency. 3.10 Sabcoatracts The contractor agrees that all subcontracts will be submitted by the Contractor to the City for- approval. All subcontracts and all approvals of subcontractors, regardless of their form, will be 10 Iq - deemed to be conditioned upon performance by the subcontractor in accordance with the terms and conditions of this Agreement. If any subcontractor fails to observe the terms and conditions of this Agreement to the satisfaction of the City, the City will have the absolute right upon written notification to rescind approval forthwith and to require the performance of this Agreement by the Contractor personally or through any other City-approved subcontractor. The approval of subcontractors in the performance of the Services required by this Agreement will under no circumstances operate to relieve the. Contractor of any of its obligations or liabilities under this Agreement. . Upon entering into any subcontract, Contractor will furnish the City with five copies of such subcontract for distribution to the Purchasing Agent and the Department. All subcontracts will contain provisions that require the Services to be performed in strict accordance with the terms and conditions of this Agreement, and every subcontract will provide that the subcontractor are subj ect to all of the terms and conditions of this Agreement, including the rights of the City to approve or disapprove of the use of any subcontractor. Provided that such subcontracts do not prejudice any of the City's rights under this Agreement, and do not affect the quality of the Services to be rendered in any way, subcontracts may contain different provisions than are provided in this Agreement. 3.11 Environmental Compliance The Contractor agrees to comply with all standards and policies relating to energy efficiency which are issued in compliance with the Energy Policy and Conservation Act, Pub. L. 94- 163. In addition, if the amount of the compensation under this Agreement equals or exceeds $100,000, then the Contractor agrees to comply with all applicable standards, orders, or requirements issued under Section 306 of the Clean Air Act (42 U.S.C. 1857(h)), Section 508 of the Clean Water Act (33 U.S.C. 1368), Executive Order 11738, and Environmental Protection Agency regulations (40 CFR part 15) . ARTICLE 4. SPECIAL CONDITIONS FOR CONSTRUCTION In the event that the Project involves or includes any construction or rehabilitation of structures, then the Contractor agrees to comply with the following requirements: A. The Contractor will comply with all portions of Executive Order 11246 of September 24, 1965, which is entitled, -Bqual Employment Opportunity, - as amended by Bxecutive Order 11375 of October 13, 1967, and as supplemented in Department of Labor regulations (41 CFR Chapter 60) ; 11 "2.0 - .' B. The Contractor will comply with the requirements of the Copeland "Anti-Kickback" Act (18 U.S.C. 874) as supplemented in Department of Labor regulations (29 CFR Part 3); C. The Contractor will comply with the requirements of the Davis-Bacon Act (40 U.S.C. 276a to a-7) as supplemented by Department of Labor regulations (29 CFR Part 5); D. The Contractor will comply with the requirements of Sections 103 and 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 327-330) as supplemented by Department of Labor regulations (29 CFR Part 5); and E. The Contractor will comply with all bond requirements as set forth in Department of Energy regulations, 10 CFR Section 600.236 (h), as applicable. In the event of a dispute over the applicability of any such bond requirement, the Contractor agrees that the dispute will be submitted to the purchasing Agent of the City for resolution. The decision of the Purchasing Agent will be final and binding. ARTICLE 5. REPORTS The Contractor agrees to prepare and complete in a timely manner such formal reports as may be required by the City for the project. An original and two copies of each report will be sent to the Chairman of the Energy Task force, addressed to: Mike Lindberg, Commissioner of Public Affairs, 1120 S.W. 5th, Suite 414, portland, Oregon, 97204: additionally one copy will be sent to City, c/o Linda Davis, Assistant to the Commissioner, Department of Environment, 30 North LaSalle Street, Suite 2500, Chicago, Illinois 60602. Failure of the Contractor to submit its report(s) in a timely manner may resul t in retention of funds pending the submission of the report(s). ARTICLE 6. COMPENSATION 6.01 Compensation As consideration for the performance of the work a:nd/or Services as required by this Agreement, the City will issue payments to the Contractor from funds received by the City from the Department of Energy in accordance with the budget SU1llll&ry which is attached hereto as Exhibit B, which exhibit is fully incorporated herein by reference, provided that: (a) The maximum amount to be paid to the Contractor for all Services and undertakings to be performed under this Agreement will not exceed the sum of _$25 .000 12 2f""' - ""2-1 - (b) payment under this Agreement will be made under Fund No. as established by the City Comptroller. All billings for payment must be supported by documents required under the fiscal guidelines as to expenditures incurred in accordance with this Agreement. and which conform to the budget summary attached hereto as Exhibit B. . (c) The City will retain twenty (20) percent of the Contractor's final payment pending the submission of a complete report on the project by the Contractor. Such retainage will be released to the Contractor upon the satisfactory completion of the report. as determined by the City. . 6.02 Reduction of compensation If, subsequent to the execution of this Agreement. anticipated federal funding should be reduced for any reason, then the City reserves the right upon written notice to the Contractor to reduce or modify the amount of the payments to be issued to the Contractor under this Agreement. If federal or state appropriations should be reduced to such an extent that, in the sole discretion of the City, no funds will be available to compensate the Contractor under this Agreement. then the City will provide notice of such occurrence to the Contractor. Such notice will constitute notice of termination for convenience in accordance with Section 3.06 of this Agreement. If, pursuant to a reduction in federal funding, the City reduces the compensation to be paid to the Contractor under this Contract, the Contractor will have thirty (3D) days from the date of the receipt of such written notice to submit a revised work program, budget or any other necessary document (the -Revised submittals") to the City reflecting the reduction in the compensation and accordingly modifying the Services to be performed. The City will have the discretion to modify the Revised Submittals as it may deem appropriate in order to realize the goals of the Agreement. The Revised submittals will be reviewed by the Purchasing Agent and the Office of Budget and Management and upon their final approval will become a part of this Agreement superseding the previous documentS. In the event that the Contractor fails to submit Revised submittals or submits Revised Submittals which are not acceptable to the City, then, unless the City in writing grants a further period of time for the contractor to submit Revised submittals, the Contractor will be obligated to perform. the Agreement as originally executed for the reduced compensation.' . 13 ":2-"2- -- .'. 6.03 Non-Appropriation Funding for this Agreement is subject to the availability of federal funds and the appropriation thereof by the City Council of the City. In the event that no funds or insufficient funds are appropriated and budgeted in any City fiscal period for payments to be made under this Agreement, the City may notify Contractor of such occurrence and this Agreement will terminate on the earlier of the last day of the fiscal period for which sufficient appropriation was made or whenever the funds appropriatea. for payment under this Agreement are exhausted. No payments will be made or due to the Contractor under this Agreement beyond those amounts appropriated and budgeted by the City to fund payments hereunder. 6.04 Program XDcome The Contractor agrees to return to the City all gross income received by the Contractor which is directly generated from the use of funds received from the United States Department of Energy ("DOE") in the Project (the "Program Income"), and agrees to do so in such form and manner as is stipulated by the City. Program Income includes, but is not limited to, the following: (a) proceeds from the disposition by sale or long term lease of real property purchased or improved with DOE funds; (b) proceeds from the disposition of equipment purchased with DOE funds; (c) gross income from the use or rental of real or personal property acquired by the Contractor with DOE funds, less the cost incidental to the generation of such income; (d) gross income from the use or rental of real property owned by the Contractor that was constructed or improved with DOE funds, less the costs incidental to the generation of such income; (e) proceeds from. the sale of obligations secured by loanS made with DOE funds; (f) interest earned on funds held in a revolving fund account; (g) interest earned on program income pending disposition of such income; and (h) funds collected through special assessments made against properties owned and occupied by households of low and moderate income persons where such assessments are used to recover all or part of the DOE portion of a public improvement. All other Program Income retained by the Contractor must be expended in compliance with DOE regulations. ARTICLE 7. PUBLISHING The Contractor agrees to follow all publishing regulations and reporting requirements established by the U. S. Department of Energy, which regulations and requirements are attached and incorporated herein as ~yhibit D. 14 - :L~ - ARTICLE 8. REPRESENTATIONS The Contractor represents and warrants that the Contractor has not employed any person solely for the purpose of soliciting or procuring this Agreement, and has not made, and will not make, any payment or any agreement for the payment of any commission, percentage brokerage, contingent fee or other compensation in connection with the procurement of this Agreement. . If the Contractor is a private entity of any description, then the Contractor further represents that completed and has provided a Contractor's Affidavit to the completed copy of which attached hereto as Exhibit incorporated by reference as if fully set forth herein. legal it has City, a C and ARTICLE 9. EOUAL EMPLOYMENT OPPORTUNITY During performance of this Agreement, the Contractor agrees to comply with all Equal Employment Opportunity regulations as established by the U.S. Department of Energy, attached hereto as Annendix F. ARTICLE 10. PERIOD OF CONTRACT The Agreement will take effect as of October 1. 1996 and continue through December 31. 1997 However, the Agreement may be extended for ..an additional period of time by mutual agreement of the parties, subject to the availability of funds under the applicable Energy Task Force Grant. Any and all extensions of this Agreement will be subject to the terms and conditions of Section 11.02 of this Agreement. ARTICLE 11. EVENTS OF DEFAULT. REMEDIES. TERMINATION. RIGHT TO OFFSET. SUSPENSION 11.01 Events of >>afau1t >>efiDed The following will constitute events of default: A. Any material misrepresentation, whether negligent or willful and whether in the inducement or in the performance, made by the Contractor to the City. B. Any material failure to perform any of its obligations under this Agreement including, but not limited to, the following: . 1. Failure to perform the services required of such 15 - 24 - party by this agreement with sufficient personnel and equipment or with sufficient material to ensure the performance of said services; 2. Inability to perform the services required of such party satisfactorily as a result of insolvency, filing for bankruptcy or assignment for the benefit of creditors; 3. Failure to promptly re-perform within a reasonable time services required to be performed by this Agreement that were rejected as erroneous or unsatisfactory; 4. Discontinuance of the party for reasons reasonable control; services required of such not beyond Contractor's 5. Failure to comply with a material term of this Agreement; and 6. Any other acts specifically and expressly stated in this Agreement as constituting event of default. C. The Contractor's default under any other agreement it may presently have or may enter into with the City during the term of this Agreement. The Contractor acknowledges and agrees that in the event of a default under this Agreement the City may also declare a default under any such other agreements. 11.02 It_edies Upon the City's determination that an event of default has occurred, the City will give notice of such occurrence to the Contractor in accordance with the terms of this Agreement. If the Contractor fails to cure such event of default within thirty (30) calendar days after receipt of such notice given, or if the Contractor has failed, in the sole opinion of the City, to cO"""""nce and continue diligent efforts to cure the event of default, or if the event of default cannot reasonably be cured within thirty (30) calendar days after receipt of notice of default, then the City may, in the sole discretion of the City, declare the Contractor to be in default under this Agreement. The Contractor agrees that the decision to declare the Contractor to be in default is within the sole discretion of the Purchasing Agent, that such decision will be final and binding, and that neither that decision nor the factual basis for it will be subject to review or challenge. If the Purchasing Agent determines that the Contractor is in default under this Agreement, written notification of such J.6 -:L<)- determination will be provided to the Contractor, and such notice will include notice of the decision of the Purchasing Agent to terminate this Agreement, if such decision is made. Upon the receipt of such notice as provided herein, the Contractor agrees to discontinue any services, unless otherwise directed in the notice, and agrees to deliver all materials accumulated in the performance of this Agreement, whether completed or in the process, to the City. At such time the City may invoke any or all of the following remedies: A. The right to take over and complete the Services or any part thereof as agent for and at the cost of the Contractor, either directly or through others. The Contractor will have, in such event, the right to offset from such cost the amount it would have cost the City under the terms and conditions of this Agreement, had the Contractor completed the Services; B. The right to terminate this Agreement as to any or all of the Services yet to be performed effective at a time specified by the City; C. The right of specific performance, an injunction or any other appropriate equitable remedy against the Contractor; D. The right to money damages; E. The right to withhold all or any part of the Contractor's compensation hereunder; and F. The right to deem the defaulting the Contractor non-responsible in future contracts to be awarded by the City. If the City considers it to be in its best interests, it may elect not to declare defa1,1lt or to terminate the Agreement hereunder. The parties acknowledge that this provision is solely for the benefit of the City and that if the City permits the Contractor to continue to provide the Services despite one or more events of default, the Contractor will in no way be relieved of any of its responsibilities, duties or obligations under this Agreement nor will the City waive or relinquish any of its rights. The remedies under the terms of the Agreement are not intended to be exclusive of any other remedies provided, but each and every such remedy will be cumulative and will be in addition to any other remedies, existing now or bereafter, at law, in equity or by statute. No delay or omission to exercise any rigbt or power accruing upon any event of default will impair any such right or power nor will it be construed as a waiver of any event of default or acquiescence therein, and every such right and power may be 17 2b- exercised from time to time and as often as may be deemed expedient. 11.03 No Damages for Delay The Contractor agrees that it will make no claims against the City for damages. charges, additional costs or fees for any lost profits or costs incurred by reason of delays or hindrances by the City in the performance of its obligations under this Agreement. ARTICLE 12. GENERAL CONDITIONS 12.01 Whole Agreement This Agreement, including the attached Exhibits A through ~ will constitute the entire agreement between the parties, and no warranties, inducements, considerations, promises or other inferences will be implied or impressed upon this Agreement that are not expressly addressed herein. No variation or amendment of this Agreement and no waiver if its provisions will be valid unless in writing and signed by the duly authorized officers of the Contractor and the City. This Agreement supersedes all other agreements between the parties. 12.02 Modifications and Amendments No changes, amendments, modifications, cancellation or discharge of this Agreement, or any part hereof, will be valid unless in writing and signed by the parties hereto, or their respective successors and assigns. For purposes of this section where an official, agent or employee of a business entity has committed any offense under this section on behalf of such an entity and pursuant to the direction or authorization of a responsible official thereof, the business entity will be chargeable with the conduct. 12.03 Compliance with all Laws The Contractor agrees to comply with all applicable laws, ordinances and executive orders and regulations of the federal, state, local and city government, which may in any manner affect the performance of this Agreement. Specifically, the Contractor agrees to comply with all the provisions of the U.S. Department of Energy Regulations, including, but not limited to, the Uniform Administrative Requirements contained in 10 C.P.R. 5600.200 et sec. and in 41 C.F.R. 5105-71.1 et sea. (attached hereto as ~Yhibit F), the provisions of the Grant Agreement between the City and the U.S. Department of Energy, 'and all other applicable federal, state and ~ 18 - ll- local laws and regulations. 12.04 Governing Law This Agreement will be interpretation in accordance Illinois. governed as to performance and with the laws of the State of 12.05 Severability If any provision of the Agreement is held or deemed to be or in fact is illegal, inoperative or unenforceable on its face or as applied in any particular case in any jurisdiction or jurisdictions or in all cases because it conflicts with 'any other provision or provisions hereof or any constitution, statute, municipal ordinance, rule of law or public policy, or for any other reason, such circumstances will not have the effect of rendering the provision in question inoperative or unenforceable in any other case or circumstance, or of rendering any other provision or provisions herein contained illegal, invalid, inoperative or unenforceable to any extent whatever. The invalidity of anyone or more phrases, sentences, clauses or sections contained in this Agreement will not affect the remaining portions of this Agreement or any part thereof. . 12.06 Interpretation Any headings in this Agreement are for convenience of reference only and do not define or limit the provisions hereof. Words importing the singular number will include the plural number and vice versa, unless the context will otherwise indicate. All references to any exhibit, appendix or document will be deemed to include all supplements and/or amendments to any such exhibits, appendixes or documents entered into in accordance with the terms hereof and thereof. All references to any person or entity will be deemed to include any person or entity succeeding to the rights, duties, and obligations of such person or entity in accordance with the terms of this Agreement. In the event of any conflict between this Agreement and any exhibits hereto, the terms of the Agreement will be deemed to control. 12.07 Nonassignability Contractor agrees that it will not assign ali or any part of its work or responsibilities under this Agreement without the prior written consent of the Purchasing Agent and the Commissioner; but in no case will any such consent relieve Contractor of its obligations under this Agreement. Any transfer or assignment 19 J.. <($" - " without the prior written consent of the Purchasing Agent will constitute an event of default under this Agreement and will be void as far as the City is concerned. The City reserves the right to assign any funds or claims due or to become due under this Agreement, in whole or in part, or any interest therein. 12.08 Authority The City has been authorized to enter into this Agreement in accordance with and subject to the provisions of the Municipal Purchasing Act for Cities of 500,000 or More population, as contained in the Illinois Municipal Code, 65 ILCS 5/8-10-1 et sea., as amended, and pursuant to City ordinance passed by the City Council of the City of Chicago on the twenty sixth day of October, A.D. 1988. Execution of this Agreement by the Contractor is authorized by a resolution of its Board of Directors, if a corporation, or by a resolution or ordinance of its governing body, and the signature(s) of such person signing on behalf of the Contractor have been made with complete and full authority to commit the Contractor to all the terms and conditions of this Agreement. ARTICLE 13. NOTICES All notices and communications provided herein should be directed to Mike Lindberg, Commissioner of Public Affairs, 1120 S.W. 5th, Suite 414, Portland, Oregon, 97204, by first class mail. All notices and communications to the City should be directed to Linda Davis, Assistant to the Commissioner, Fiscal and Administrative Services, Department of Environment, 30 North LaSalle Street, Room 2500, Chicago, Illinois 60602. All notices and communications to the Contractor should be directed to: ALL NOTICES AND COMHONICATIONS WILL BE J)1I'VM1m RECEIVED TDEE (3) J)AYS AFTER BEING HAXLED IN ACCORDANCE WITH THIS PROVXSION. ARTICLE 14. INCORPORATIONS BY REFERENCE This Agreement is subj ect to and incorporates, herein by reference the provisions contained in the U.S. Department of Energy's publishing requirements, Exhibit D; the federal Equal 20 29 Employment Opportunity regulations, Exhibit E; and the U.S. Department of Energy's Contract Regulations, Exhibit F. 21 -~C>- ~ -- -----.- IN WITNESS WHEREOF, THE PARTIES HAVE CAUSED THIS AGREEMENT TO BE EXECUTED AS OF THE DATE FIRST WRITTEN ABOVE. Recommended By: CI1Y OF CHICAGO By: Mayor commissioner of Environment Comptroller Approved as to form and legality: Purchasing Agent Assistant Corporation Counsel Chair, Urban Consortium Energy Task Force CONTRACTOR By: Name: Title: Attest: Name: Title: Subscribed and sworn to before me this day of , 19_ Notary Public My Commission expires: - =3\-- . Exhibit A Project Description/Description of Work Program ..~ .. ~L. ~ Urban Consortium Energy Task Force 1996/97 Work Program Telecenters - The Workplace of the Future Revised on 9/24/96 Transportation and Sustainable Urban Energy Submitted By: City of Chula Vista, California Department of Administration Environmental Resources Division - 3~ ,- Urban Consortium Energy Task Force /996/97 Work Plan Project Title: Cit.. efChH1a "iF:ta TeleseRter Telecenter'.f The Worknlaceofthe Future Proposal Type and Topic: Technolo~v Transfer Transportation and Sustainahle Urban Ener~v 1. Abstract Purpose of the project: The telecenters are being evaluated to determine their effectiveness as an alternative mode of transportation and as a method to reduce trips. The telecenter study examines the potential impact on mode shift and user acceptability to determine the effectiveness of telecenters. The purpose of the telecenter project is to: . Serve as a pilot that will provide "lessons learned" to other jurisdictions interested in developing telecenters. . Reduce automobile trips, traffic congestion, energy consumption and air pollution by replacing vehicle miles traveled (VMT) with the movement of information through state-of- the-art telecommunications technology. . Monitor and evaluate activities at the telecenter for their transportation, air quality and energy reduction impacts. . Provide a neighborhood-based alternative work environment for workers to telecommute, which leads to an enhanced quality of life for commuting workers. The problem to resolve: The San Diego region includes some of the most congested transit corridors in Southern California. The City ofChula Vista has a population of 155,450 residents and is the second largest City in San Diego County. It is home to the U.S. ARCO Olympic Training Center and a state-sponsored SMARTCommunity project aimed at establishing a city-wide, on-line community services network to citizens. It is also a bedroom community to the City of San Diego. Due to local demographics, inadequate public transportation to employment centers, and demands of multi-worker households, single vehicle trips are growing twice as fast as the population. Chula Vista is home to one of the largest new town projects in the Country, comprised of23,500 acres (34 square miles) planned for an estimated 24,000 dwelling units. Over the next 25 years, the City of Chula Vista will experience a 75% increase in population. Due to these issues, there are serious traffic, air quality and other environmental consequences that need to be addressed in Chula Vista. In order to be proactive in addressing these serious traffic, air quality and related environmental issues in this and other future development projects, Chula Vista's Environmental Resources Division initiated an innovative public/private partnership in November of 1993 - the "Neighborhood Telecenter." Located in residential neighborhoods, telecenters provide telecommuting workspaces for residents, reducing travel time, air pollution and energy use. 2 - ~y- Urban Consortium Energy Task Force 1996/97 Work Plan Project Title: . Cip' AfrRHIa "i5ta Te1eeeRter Telel!enter's The Worknlacl! Q,fthe Future Proposal Type and Topic: Technoloev Transfer Tran!iinortation and SU!iitainahle Urban Enerev The potential benefits from problem resolution: Local governments play an important role in developing, testing and applying new alternatives that can assist in traffic reduction and energy savings. In this project that will be transferable to other jurisdictions, we propose to conduct a research study on what has been learned so far on the successes and failures of operating telecenters as an alternative mode of transportation. The telecenters are a new planning tool to: . Provide professional work spaces with computers, fax/modems, telephones, and fax machines for residents to perform their job and stay in touch with their main office. . Reduce air pollution and traffic congestion on the region's highway and road infrastructure. . Promote economic development by providing suburban residents an opportunity to stay in their communities, resulting in retail and restaurant dollars spent in the community they live, rather than in the workplace. . Provide an alternative to commuting to work -- it allows local residents to commute using telecommunication technology. The general research process and participants for the project: The project will bring together expertise from various agencies, such as the Transportation Management Associations, the County of San Diego Air Pollution Control Department, and Ride Link of San Diego. The City of Chula Vista Telecenters have provided data and are included in studies that are being done by the University of California, Davis, Institute. of Transportation Studies, the San Diego Association of Governments, and the Southern California Telecommuting Partnership. T elecenter staff plans to utilize UC Davis' studies, conducted for the past two years, as well as investigate other published studies that have been or are being done on other telecenters. Interviews will be conducted with other telecenters in California, examining the reasons why some centers have closed. Finally, research and analysis will be made on actual energy savings, which results from the end user-the telecommuter. The number of trips reduced is based on the occupancy of the telecenter and the variety of users it attracts. The project will measure and evaluate what kind of impact telecenters have on reducing Vehicle Miles Traveled (VMT). In order to do this, we will collect survey data from the following telecenter users: . City of Chula Vista community members (telecommuters) . Small start-up businesses targeting South Bay clientele (renters) 3 _ ~c;- _ Urban Consortium Energy Task Force 1996/97 Work Plan Project Title: Cit' efChyla \liMa TBIBGIRter T6ecenter's The Worko!ace Q.fthe Future Proposol Type and Topic: Technolo2v Transfer Transportation and Sustainable I1rban Enervv . Off-peak hour users (partners). In order to maintain high occupancy rates, the telecenter is developing a variety of partnerships for evening hour and weekend use of its conference room, classroom and workstations, through added public services like distance learning, telemedicine, videoconferencing, teleshopping, computer training and more. 2. Research Objectives The overall goal of the research is to evaluate if telecenters are a viable option for trip reduction, resulting in energy savings. Specific objectives to support this goal are: . To identify existing private and public sector programs, products and services related to telecommuting. . To identify the successes and failures of the City ofChula Vista Telecenters as well as the status of other California telecenters, focusing on telecenters that have closed and evaluating the reasons why those programs did not work. . To increase the occupancy rates at both telecenters and determine the overall travel savings. 3. Research Plan This work will build on the Chula Vista Telecenters' successes and failures as well as what other telecenters in California have experienced to date. The current project seeks to address why some telecenters have closed, while others continue operating. Telecenter staff will interview Southern California telecenters that have closed (LaMesa, Modesto, Davis, and Vacaville-Ulatis) in order to evaluate the reasons why some centers have not worked. The project will bring together expertise from various agencies, some of which the telecenters have provided data for telecenter studies that are underway, such as the University of California, Davis, Institute of Transportation Studies, the San Diego Association of Governments, and the Southern California Telecommuting Partnership. Energy savings data from the telecenter project will serve as a model for other cities throughout the country which seek alternative modes of transportation. The telecenter project will be monitoring telecenter energy savings through tracking a reduction in Vehicle Miles Traveled of telecommuters, renters and partners. The following steps will be taken to evaluate the telecenters accomplishments: I. Evaluate Chula Vista telecenter operations to date and develop recommendations for changes or improvements for future telecenter developments. 2. Identify and list reasons why other California telecenters have failed and if there are any possible solutions to their failures. 4 3~- Urban Consortium Energy Task Force 1996/97 Work Plan Project Title: rip' RfCl::nda "1!i;ta TeleeeRte!r Teleceftter's The Worknlace Q.fthe Future Proposal Type and Topic: Techno102v Transfer Tram;nortat1on and Sustainable Urban Ener'tv 3. Collect evaluation data that will include sign-in attendance logs for both Chula Vista telecenter sites. This data will identify vehicle miles of travel saved. 4. Track Chula Vista telecenters' occupancy rates, resulting in any measured improvement in energy savings through calculated reductions in vehicle miles traveled. 5. Track Chula Vista telecenters' marketing responses to evaluate what sort of marketing techniques (newspaper, radio, direct mail, etc.) get the best response for the telecenters. The marketing responses are tracked by first asking all clients that contact the telecenters how they heard about it, and then adding them to the telecenters database. 6. Compile data on operating costs for the Chula Vista telecenters and evaluate, based on operations to date, how much it costs to build a telecenter and operate it. 7. Compile data on revenue brought into the Chula Vista telecenters to date and evaluate how viable it is that the telecenters will achieve self sufficiency through revenue opportunities. 4. Task Descriptions TASK 1: Background Research 1.1: Examine the experience of other California based telecenters through researching existing studies and conducting interviews with other telecenters. Compare elements about the other California telecenters' successes and failures with the City of Chula Vista telecenters. 1.2: Evaluate overall telecenter effectiveness based on occupancy rates, shared-usage partnerships, and energy savings. TASK 2: Evaluation of demonstrated Energy Savings through vehicle miles of travel (VMT) data collection. 2.1: Track and evaluate telecenter usage and travel distance information through collecting survey information and daily telecenter sign in logs. TASK 3: Develop a FiBal Report Guide Book that will be the final report and can be used by other jurisdictions interested in developing and implementing a Telecenter. Also Prepare an Executive Summary that will be attached to thefinal Guide Book. 3.1: Pfe]9are 8 fiB&l repeR iftshuliag e8ek-gre1Uld researea fiREliBgs eft \~/aat has heeft leamed sa far e8 tlte Slieeesses &BEl faih:lfes ef 8fJef8.ting teleeeRtefS as 8:R alteFBaave made ef1fanSp9Ftatie9:. 3.2: DevelsfJ a BRaI 'epert tkat 68ft Be \l5ea hy teleeeater maR8gers &. these iftterestea is aeveleping teleeeRters. 5 - 3\- Urban Consortium Energy Task Force /996/97 Work Plan Project Title: Cit,:/ FIr CRula "ista TeleseRter Tele~enler'... The WnrknlQ~e of/he Future Proposal Type and Topic: Technolo~y Transfer TransDortal;on and Sustainable tIman Ener~v 5. Organization and Management Plan The City of Chula Vista acts as project manager, and provides management and administrative oversight for the day to day operations of the centers. The City provides regular progress reports to all primary funding providers. City staff members regularly report to the City Manager and City Council on the progress of the telecenters. Staff also work with a citizens advisory committee on various management and operational issues. The Organizational Chart for Telecenter management is as follows: , I City Manager I I CITY COUNCIL Fundin Sources Cox Cable, APCD, CEC via SANDAG I UC-DavislCaltrans I I Environmental Resource Manager I j TELECENTER AD HOC TASK FORCE Telecenter DirectorfTelecenter Technology Director 6. Work Statement and Schedule TASK 1: Background Research Activity Period: Months 1-6 TASK 2: Evaluation of demonstrated Energy Savings through vehicle miles oftravel (VMT) data collection. Activity Period: Months 1-10 TASK 3: Develop a FiRal RepeR tllat will iBelllde a Guide Book that will be theflnal report and can be used by other jurisdictions interested in developing and implementing a telecenter. Also Prepare an Executive Summary that will be attached to theflnal Guide Book. Activity Period: Months 6-12 6 _~"1S - Urban Consortium Energy Task Force 1996/97 Work'Plan Project Title: Cif?' RfCl:n:ila "ista TelessRter TI!/e(!l!ftll!r'S The Workpla~l!ofl"l! Futur/! Proposal Type and Topic: TechnoloiY Transfer Tran~portation and Sustainable lJrban Enervv A tirneline for execution of these tasks, along with scheduled reports and meetings, is attached on the following page 7. RepsFt Guide Book Description 1. Project Description 2. Geals aRa OBjeetiyes Criteriafor locating Telecenters 3. Start up and General Operations 4:- IBeelRe ana Bnf3eRses fer T eleeeater Operatisas ~ CIulla Vista teleeenter BHsiRess J'!lan ~ Ckl:da \Tista teleeeater Rlarb~tiRg plan 7. Marketing a Telecenter 8. Training and educating Managers and their Employees at developing a successful telecommuting program. 9. Prejeetea Baerg)' 8a-viRgs aRa VMT BeRefits Evaluation criteria used in tracking energy savings 1 g. Prej eet ResHlts 11. ReeemrneflaMieRs aRa Oeser/MieRs (LesseRs Leamea) General Pros and Cons of Building a Telecenter in your Jurisdiction The final Fef*IR Guide Book will be transferable to other jurisdictions and can be used as a gHiaeeeek how to guide. In addition, the City will add it to their telecenters Internet Home Page (www.ci.chula-vista.ca.us ). 8. Resumes Attached. - ?'Ci - 7 . . - I ><1 r b3 0 ~ Z l- I-- 0 ~ 0 >< , ~ ., D- r j W "i- f/) C) . ". :;) c( r- ..J :;) , , >< ~, .- Z , :;) ~ - > I C(. ==1 0:1 D- c( >< 0: c( == IX! W ~ t- Z en c( en .... ~ <<Do I-- ~w ....0 ~ Z I- 0 0 - D- >< fI) W ~ f/) ~ fI) ~ 0: 0: ~ 0 UI W ~ en CI 0: ... ... C( =-c: fI) ... CI) CI) :E t: "t:I . .:!-c:-c: := 10 8. fI) ~ t: III III ~ ::I (/) CI) ~ III ::I ::I ~ e >- 0: ::100 W ~ (/) ~ e' iij ~ 2'E'E i z ~ ! t: UlNM ::::i ~ III i! ....1. w IX! W Il. I! I 21 t- . .. - - yo,.... . DOE F 4620 I U.S. o.p."""."t of e"..-gy Ot-oIe~I/OINo {fJ4.P3J Budget Page 1'10-1.&00 AJt ~ E6"""s A,. oc.or.'. (Se-e rev8fH fOf Inlll'\.lctlCn$) OMS 8..,.ae... O'S'CIo....'. $q:'.""'t'l1 on Ft....'W OAG.-.NIz..,.,TION I City of Chula Vista Telecenter a..o;et Paoe "'0 1 PRINCIPAL INvES1,G...rOA (PlyPROJECT DIRECTOR tPO) Barbllra Bamberger "eQ~II*, Ovr"1OI'I 14 (....Ol'lrfls) ... SENIOI=! PE=1S0NNEl PI/PO c.o-PJ's r:aC'\.l!f'y _no~' 5.1'1001 Au""..,., ~"= '1oII"OJ AeQ....sleO FII"dIG'."I~ CLa$I:.Kh HDI,.t_,., wttn "'Ie. "'.7 ShOw I'\UmOer '" blaca.llslJ CAL ACAO SUMR .., ApcI4CaI'lI ",OOE 1 Project Manaapr _ d~n:ro .hr~h~", 17 Q~n nn 2 3 . 5 6 , I OTMEFlS (LI$T INDIVIDuALLY ON eUDGET EXPLANATION PAGE, 7 I ) TOTAL SENIOR PERSONNE!..11-6) B OTl-lE~ PE~SONNEL. (SHOW NUMeE~S IN e=....cK[jS) , I ) POST OOCTOFlAl ASSOCIATES 2 ( I 01...[1=1 PFiOHSSIC)NALS ('TECMN!CIAN PFlOG~"~~MEJ:I ETC I 3 (V I G.A:>uATE STUOE..rTS ' ~.,o ~" . ( I UNOEFlGFiAOUA.TE STUDEN'TS 5 I ) SECr:;:., "RIAL . CLE~ICAl I 6 ( ) OT..,E;::I. I TOTAL SAJ..,A.!=;\ES ANO WAGES (A. B) C ~;:tINGE BENE=!":'S (IF' CH"~GED AS OI~ECT COSTS\ iOTAl SAL"'F;iES. wAGES AND FFlING~ eENE;::TS (A . S . c) 10 /,:I;J:! nn D. PE;::IM,t..NE"''' ECUIPMENT (I.IS" ITEM AND DOu.AA AMOUNT FOFl; EACM :':'::'.11 I I I TOTA.L. PERM....NEN'T EOUIPMEN'T E.TRAVEL. 1. OOMEST1C (INCL. CANADA AND U S POS5=SSIONSI ?nnnnn 2. FOREIGN TOTAl "rRAvEI. ? nnn F TRAINEE/P....RTICIP....NT COSTS t. STIPENDS (ilemlze........ typeI . ICKalS on budge! .,.urcallOn Pl9'1 2. TUmON & FEES 3. TRAINEE TRAVEL. 4. OTHER (luItv ."In Of'! ~tioft NOel I TOTAL. PARTICIPANTS ( ) TOTAl. COST G OTHE~ D'~ECT COSTS 1. MATERIAI.S AND SUPPL.IES 100.00 2. ~8LICA71ON COSTS/DOCUMENTATION/OISSEM'NATION 'OA, nn 3 CONSUL TANT SE~VICES I . COMPUTE~ '4DPI SE~VICES I 5 SU8CONT~ACTS I 6 OTHE~ (PostaQe, telechone) , Ann nn I TOT AI. OTHER DIRECT COSTS 1_R41 nn H TOT "I. DIREC" COSTS (A THROuGH 0) $23 499.00 I P INOI?~CT COS~ ,SPECIF' RATE A~-' I roo gr.= r1nge bene S/Medicare) hrly wg $16.30 x 1100 hrs= 1,411.10 Gro~t~h:Ec~~g?lfoedicare) Hrly wg $9 x 192 hrs = B9.90 J TOTAL. DIRECT AND INOtREeT COSTS (H . I) t?1; nnn nn I I K ......OUNT OF ANY REQUIRED COST.$H,t.RINC FRO'" NON.FEDERAL. SOURCES 1 $25.000.00 I BUDGET EXPLANA TlON PAGE FOR FORM ER 4620 ] Please provide detailed data, in narrative form, to support each Cost Category as follows: 1. PERSONNEL . a. Identify each position to be supported under the proposed award by title. Project Manager Graduate Student b. Briefly, specify the duties of professionals to be compensated under this project. Project Manager: Responsible for facilitating the overall project to ensure that it is conducted in accordance with the approved work plan, budget and schedule. Also responsible for the day-to-day management and operation of the project, writing the technical documents, and submission of quarterly reports. c. State the amounts oftime, such as hours or percentage oftime, to be expended by each position under this project. Project Manager: 95% Graduate Student: 5% d. State the amount of compensation to be paid each employee, student, or assistant under this project. . Project Manager: $17,930.00 Graduate Student: $1,728.00 e. State wether the proposed compensation is consistent with that paid other personnel engaged in sim ilar work both within and outside your organization. Yes, it is consistent. 2. FRINGE BENEFITS a. Indicate the basis for computation of rates, including the types of benefits to be provided. Project Manager's Benefits include Medicare and PERS which total 7.87% of salary Graduate Student's Benefits include Medicare (.251 % of salary) and PARS (.648% of salary) 3. TRAVEL a. Identify total Foreign and Domestic Travel as separate items. Domestic Travel: $2,000.00 - 4'2 ,- b. Indicate the estimated number of trips, points of origin and destination, and purpose of travel. Two (2) Unit Meetings Origin: From San Diego to PTI-UCETF Destination c. For each trip, itemize the estimate of transportation and/or subsistence costs. Airfare, Hotel, Meals and Ground Transportation: $1,000.00 x I participant = $1,000.00 x 2 trips = $2,000.00 d. Specify the basis for computation of each type of travel expense (e.g., current airline ticket quotes, past trips ofa similar nature, federal government or organization travel policy, etc.) Based on PTI-UCETF proposed budgeted amount. 4. EOI JlPMENT a. Indicate the estimated unit cost for each item to be purchased. Does not apply. b. Provide the basis for cost estimates. Does not apply. c. Briefly justify the need for items of equipment to be purchased. Does not apply. 5. MATERIALS AND StJPPI.IES a. Itemize materials and supplies estimates by nature of expense. Office supplies (paper, diskettes, binders, etc.): $100.00 b. Provide the basis for cost estimates or computations (e.g., vendor quotes, prior purchase of similar or like items, etc.). Based on prior purchase ofsimilar or like items. 6. CONTRACTS AND StJBGRANTS a. Describe the products to be acquired, and/or the professional services to be provided. Professional services will be provided by City Staff. _ 1/2_ .' . b. Provide a brief justification for the use of the contractors selected. Does not apply. c. For professional services contracts, state the amounts oftime to be devoted to the project, including the costs to be charged to this proposed grant award. Professional services that will be granted by City Staff will be provided at no cost to this proposed grant award. Graduate Student will work: $9.00 @ 8 hours per week for 6 months d. Are any sole source contracts contemplated? Provide sufficient detail for justification of the use of a single source for contracts in excess of $25,000. Does not apply. . 7. OTHER a. List items by major type. Publication costs!documentation! dissemination & Printing: Telephone: Postage: $ 341.00 $ 1,200.00 $ 200.00 b. Provide the basis for cost estimates or computations. Based on forcasted expenses. c. State whether contingency reserves are included in this category. Does not apply. 8. INDIRECT COSTS a. State whether the amount requested is based on a rate approved by a Federal Agency. Does not apply. b. If no indirect cost agreement approved by a Federal Agency exists, state the basis for the amount requested. Does not apply. , . - "-'\4 ... - _._- ..Barbara Btunberger...........Z939 Cowley Wq #E....._.....S_ Diego...... C...... 9Zll 7....... 619. Z 76. 1010... OBJECTIVE To develop IIIId ovenee IDlemallonal eonselVallon proJeeb IBIder the ....piees of a non- lovemmental organization. PROFESSIONAL EXPERIENCE ENVIRONMENTAL RESOURCES MANAGER City of ClnJa v," ClnJa v...... Cllifarr1i4 lJ91-prr>nU Directs the City', environmental planning efforts to bring innovative conservation po1icies and programs forward to the City Council and region Initiated regional cc:otourism task force for San Diego Bay Implemented long-range environmental business development project to promote environmental technology transfer (first economic development effort designed to encourage environmentally.sultainable businesses to loutc along the U.S.- Mexican border) Staffed park planning, refuge p1anning and other wildlife management efforts Initiated selection of Chula Vista as one of fourteen cities throughout the world participating in international municipal effort to reduce "sreenhouse sases" through the implementation of a local Carbon Dioixide Reduction Plan Develops and manages projects supporting electric &. alternative fuel vehicle development and consumer use within the City Managing the complete development and utilization of tv.'o telecenters ~ bi~tech telecommuting centen bringing tithe work to the worker instead of the other way around", CO:-;SERV A TIO!'> COORDINATOR SUrra CIMb. Sa Diqo ChttpIer Sa Diqo, c.Iifr/rrtill '''7-1''1 Researched, developed and authored legislatiiDO em various environmental iuues for all levels of lovemment relatiDS 10 ......se. enollY, lCIOurcc m....sement ud other environmenta1 policy issues Ac\cd as press liaisDO; developed I1Ory~lines on environmenta1 issues for local media Represented Sierra Club policies at public bearings at every leve] of lovemment and to the media . Orpnized and implemented c:oa..rvation campaiPI aDd CIIviroDmentaJ lelillaticm 011 bebalf of 16,000 member chapter . Coordiuted political efforts for aadoned _didates. public ",Iatioos for iBitiative campaiBns~ . Authored moolbly aaviroamaatal colum. for The HI S/e"", .....paper. u well u op-cd articles for Ibe Los Anselea Time. and San Dieso U.ioo; 81Ie.1 .peaker 011 televiliDD. radio, and at public appearances RESEARCH ASSIST.4.NT.~1N em. NATURE RKSERV~ NitIwe .R..- AMIbtIriI7. ,...1 1'16 . first American admitted to atudy Leopard behavior aDd manasement uader nDowned laraeli ",searcber, Oion llani. . Succe..fiIIly tracked and analyzed bebavionl patterns of spotted leopard.. . Operated .tate-or~tbe..rt telemetric: equipment to compile and record stlustical data - Lf~ .-. DIRECTOR OF COMMUNITY ORGANIZING Eon SitU BOIl';". Action Coali,ion. MiluJ_lue Wucoftlin 1111-15 Fonnulated r.ir-bousing poJicies for low-income neighborhood organization. Managcd and directed fair-boulinS research ltudy. resulting in the creation of anti.redhninslawl. . Developed grals-roots leadership to effect politica1 changes for low-income community. . Authored arants and contracted with businesses. gcnerating 535,000 of funding eontribunons. Coordinated neighborhood watch programs. and anti~rime public relations campaign. iocreasing membership by 7S-/.. ASSISTANT POLITICAL EDUCATION DIRECTOR. AIPAC btnican 1...1 hh1ic A/fllirs a. L ,._. ............. D.C. s--r 1"3 . Researched and analyzed political education programs aimed to generate grass-roots leadership. Assisted in the development and organization of nation at policy conference designed to enhance United States-Israel relations. Coordinated workshops and seminars. resulting in the participation of over 1 SOO members throughout the United States, APPOINTMENTS and AWARDS Appointed by EPA Secretary Browner to the Governmental Advisory Committee to advise on the implementation of the North American Commission on Environmental Coorperation under NAFT A Department A wards: 1996 Energy Conservation A ward. SDGEINRDC 1994 "Sustainable Lifestyles" award.. County of San Diego 1996 ACES (Assuring Compliance with Energy Standards) Awards. California Building Officials Award 1994 "Community Acitivism" Award - San Diego Sima Club 1990.91 national recipient of the Oerman Marshall Fund of the United States Environmental Fellowship Program. Recipient of the 1989 "Outatandin8 Youn8 Women of America" Award. . Named in the "Who's Who of Ca1ifomia" pubJication. SKILLS Computo. ope..__: excel, wonlperfect 6.0, intemet, etc. IAnpa,es: Hob,"" apaniah (readin8 le.el only) EDUCATION Valvenlly of Wbcolllin . Mldian. Bachelor of Science: Economics Empha.is: EDviraDmeatal Studies 1980 . 1984 Valvenlly of Callfo_a - S.. DIeco EII_IoD 1988 . 1995 Onduate le.ol ........ in En.i....m..taI '06ey ad NelOn! ResouIU Manas-..t ~ Yb-- Angie L. Jarchow _;109 Keats Street #2 San Diego, CA 92106 EDUCATION Humboldt State University Bachelor of Ans Major: Journalism (Focus in Marketing) (619) 223-9225 Arcata. CA May 1990 1994 - Present PROFESSIONAL EXPERIENCE 1992-1994 1990 - 1992 1991 1988 - 1989 QUALIFICATIONS City of Chula Vista San Diego. CA Telecenter Director Directs. operates and markets the City's telecenters project. The City bas two bi-tecb telecommuting centers bringing "the work to the worker instead of the other way around. KITS Cameras, Inc., Corporate Office Kent. W A Advenising Coordinalor Plan and maintain budgeting. marketing strategies and goals. Maintain production schedules. company profit planners. and reliable communication cbannels. Coordinate the communication. distribution, placement and quality control of aU advertising materials. Verify ac=acy of all print media and that they match product mixes and promotionaJ plans. regional pricing and special offels. Administer scheduling. logistics. communication and distribution ofpromotionaJ programs to 120 KITS Cameras retail stores through memos and phone contact. Verify advertising invoices for payment. Prepare monthly reports. tracking deparunent accruals and plocessing and claiming COOP advertising funds. Develop special promotional ideas for stores such as camera classes. video classes and photo contests. F. Robert Bell & Assoc. Prudhoe Bay. AK Office Manager Duties included office management, payroll, weekly and monthly cost reports. monthly invoicing, da1a input and word processing. Faulkner, Banfield, Dougan & Holmes Lega/ DocumLnlS Clerk Anchorage. AK Alaska Petroleum Contractors Summer Hire/Secrelary Prudhoe Bay. AK Highly Inquisitive, confident. and a fast learner with excellent oral and written communication skills. Computer Literate on IBM and Macintosh. Extensive experience with WordPerfect 5.1. Miaasoft Word & Exctl. Lotus 1.2,3. Quattro Pro, R-Base and mainframe environments. Team Worker; keep department managers informed on status of projects. including delays. changes, and potential opportunities. Coordinate logistics of promotions md advertising copy with other bome office departments at Kits Cameras. EdltinglProoftng, bighly accurate md detail oriented. Redesigned IDd maintained all IIIdtess blocks for SS newspaperS that KITS Cameras advatises in. Assisted with production of semi-mnual. four color catalogs ranging from 8 to 36 pages in length. Responsible for organizing all product sku's. descriptions &: regional pricing md gathering those products for photo shoots. AdditionaUy responsible for writing copy. monitoring ~""Hnes, store locations, and all shipping of the fiyer in direct conjunction with the printer. Coordinate Special Projects md events; ereated a system to keep Irack of KITS Cameras stores that offer I-Hour pbotofmisbing and develq)ed a signage package IDd memo to promote this to the customer. Created a Grmd Opening signage package for DeW KITS stores, u well as a lignage inventory book for those stores already DpeII. Generated a signage an:bive system for out-of-date promotiODaI atore signage. and ~JlDized entire sigoage room to ma"imi7" efficiency. Set up Ad Codes on mainframe for product downloading to mail store cash registtzs for each promotion, allowing sales reports to be analyzed for each product adwrtised. Volunteer _ American Cancer Society, Eureka, CA. Created a newsletter IDd organized fund-raising for a public relations campaign (1990). . Volunteer _ Eureka Veterinarian Clinic. Eureka, CA. Prepared a Spring newsletter (1989). ReporterlBroadcaster KHSU-FM. Student-run radio station. Covered the Eureka Boaro of Supervisors weekly meetings md broadcasted local newS (1990). Reporter/Advertising Osprey. HSU. Served two semesters selling advertising space, writing articles and plrticipating in the production of this magazine. - \...j'l - . Exhibi t B Budget summary . r y~ ___ " CITY OF CH IC~GO PROJECT BUDGEi ~IIIII of PrOJect City of Chula Vista Telecenter N.... lGaress. ana Z1p coae of aelegate agency Barbara Bamberger, Environmental Resource Manager City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 TYPE OF ,linTY - 1s tne ent1t)' I (C:/leClt appllC10le oox or oozes/: ~ C1~y Oepartllllnt .0 Puelic "gency o Prhlte (nonprClf1t) 0 Private (Profit "Iking) o NeigllOorI'C0c1-0u.a o Other METiOD OF ALLOCATION - If cost is to be shared by Gthers aclc1 an apllnltory s~lt...nt -"icn ic1entifies the shlring entity (or entities) lna the IIIItftOd of al1 oCltian. FUND rIG SOURCE (ChICk) o DEPAR'MHT CF ENERGY o ~"er (P1I.se hpllin) FOR OIICAIiO USE ONLY Grlnt progr.. Category OIscr1pt1ve Title ~oe Nu_I' Fund I AciY1ty Nllliler . - YCj ,- BUDGET SUMMARY FOR CHICAGO USE ONLY FUND NO: CONTRACT NO: NAME OF PROJECT NAME OF DELEGA'IEAGENCY City of (hula Vista . A. B C. D. E. COST CATEGORY ACCOUNT DOE 01HER TOTAL COST NUMBER SHARE OF COST SHARE Salaries (5105) OOOS $19,658.00 $19,658.00 ~~B:' gr'll 1 o.n no FrinEe BeDefits M D 143 0004 1.840.00 """.. POSIaI!e (5218) 0130 ':Inn.nn -ann nn CoasulClJl1S 0140 --- --- Priming 1'i:71" 0150 'ion nn can nn Eaunnnellt Relnal 0157 --- --- S~.=uc;ons 0166 --- --- Tecimical Mee1in2s 0169 --- --- Tel=hcme (5252) 0186 Cll2.nn Q12 nn Travel I<;??" 0245 , enn nn ' r;nn nn Local TI.......... e.tioD 0270 --- --- COI~.."",hle ~lies I 0350 ?nn nn .,nn nn Office MaehiDes 0422 --- --- Overhead 0801 --- --- TOTAL: 25. nn 25 000.00 . $UBMI1"IED BY: SIGNATURE (DATE) Bob Powe", Director of Finance . NAME ud 'nn.E ( Type ex Prim) APPROVAL: BY cmCAao (DATE) . UJIda Davis, Asllt. CO the C-., DepartlKnt of EDY1~Dt NAME ud 'nn.E (Type or Prim) ," -$0- rrrv Ar.~NrY PERSONNEL N.me of Project: Cit of Chula Vista Telecenter N.me oft.-d ACOOCY: Cit f N.me of Delecl1e ACeDCY: C it of Chu 1 a Vis ta FOR CHICAGO USE ONLY FuDd No: c:omna No: (a) (II) (c) ~ (c) (1) CI> ..) No. I'IIoiIiaa_T1IIc "'- ..r No. of DOE OIlIer TOTAL of ...." per ... ..... .... cosr Pen. ..oo!! 1 Project Manaaer 1494.16 50% 12 17930. nn 1 Graduate Student/Intern 288.00 6 17'R -nn! '7'Rnn ---. ,,,~c,, nn IC/;<.R nn - ,. 111ILn nrl 'CAn nn . . Project Mar's benefits: PER~= 8.31% and Medicare=I.45~. which total 9.76% of salary. Intern' benefits: PARS=3.75% and Medicare=I.45% which total 5.20% of salary. - -.' -. 21498.0n. 21498.00 F-133-" <F--_I, Cl)-13) -,.,.......,..- For CbIc::qo Use 0DIy FUND NO. CONTRACT. No. RTmr.FT TTI~'TWT(,ATTnN Nome of Project Cit of Chula Vista Teleten er NomeofDe1epteA&eDCY City of Chula Vista for eow::b coot CIIecorY. provide . cIeIaiIecI breakdown of ..pec>d....... 1ISiD& die accouIIIllUlllben mil tides from: CITY OF CHICAGO ACCOUNT/OBJECT CODE USTINO FOUND ON PAGE 48 ~""'I Cost Cale&OI)' B. C. D. E- . . C.u-It....., Travel. eIC. \ Aod. No. USDOE Otber Sbare TacaJ Cost Postage (5218) 0130 300.00 300.00 Printing (5212) 0150 590.00 590.00 Guidebook Telephone (5252) 0186 912.00 912.00 Travel (5221) 0245 1500.00 1500.00 Two Unit Meetings for one person @ 750.00 each Supplies (5301) 0350 200.00 200.00 Paper, diskettes, Binders, etc... . TOTAL: 3626.00 nn - '"5'2- - Exhibit C Contractor's Affidavit (For UCETF Consultants) "3 -:s ~ Exhibit D Department of Energy Publication Requirements . ~y DOE PUBLICATION ~OUIRE~TS The following reflec~s ~e curren~ available materials on federal and 'DOE regulations pertaining to publication. All cities, counties, and consultants .ust comply with these regulations. C-- cc- - TECHNICAL PROGRESS REPORT/TOPICAL REPORT/FINAL TECHNICAL REPORT . The scientific, technical, and practical information that results from DOE-sponsored energy research, development, and demonstration (RD&D) Ictivities must be reported fully and promptly to OOE in order to provide the information to industry, educational institutions, and other interested members of the public. The TeChnical Progress Report, the Topical Report and the Fiscll Technicll Report ere used for this purpose. These reports ere shailer in format they differ in their scope and specific content. Technical Progress Report The Technical Progress Report is the principII lIeans by which DOE Ind the public Ire informed of the technicll results achieved on its RD&D projects during specified time periods. This report summarizes the work performed during the reporting period and the technicll results' achieved, includi ng scientific and technological findings. Current technical problems, if any, are described Ind suggested corrective action is included. The report should 11so indiclte the work to be undertaken during the next reporting period. Topicll Report The Top1cll Report is I comprehensive technicll report used either to document new scientific or technolog1cll findings or to describe the results obtlined in a specific task or phlSe of I contract. It summlrizes the work Ictivities of the task or phlse or those Ictivit1es leading to the new scientific or technological findings Ind provides I comprehensive description of the results aChieved. It must be a complete. stand-II one report. including necesSlry tlbu1ltions of dati. figures. photographs. pertinen~ references and b1bl1ographic citations. Final Technical Report The Final Technical' Report is a comprehensive report of the results achieved 4uring the l1fe of a contract. It is I technically oriented account of the investillltion, su...r1zing all wo rk act k1.t 1 es pe rfo r.ed duri nil tile ent ire li fe of th e contract and providi ng a cOllprehnsive description of the results achi eved. It Ihould allo include necessary tabu1ltions of dlta, f1l1ures, photographl, pertinent references. and bibl1 ographic citations. . - $6 - Forma t Except for the cover and title page, no format is specified. However. elch Technical Report must contai n It least tne following (1) Cover. (2) Title Page. (3) Table of Contents. (4) Distribution list. (5) Abstract (200 words or less). (6) Concise Description of Project. Ind (7) Body of Report. Technical Report covers Ind title plges must contain the following information: (1) Classification (if specified in the contract). (Z) DOE Reprt Number (IS specified in tile contract). (3) Report Title. (4) Type of Report Ind Period Covered. (5) Date of Report. (6) Nlme and Address of Reporting Orglnization. (7) Author, (8) Contrlct Number. Ind (9) DOE Sponsorship Credit. The title plge 11so aust belr the distribution code specified in the contrlct. . The DOE legal discllimer will appelr on the inside front cover or title plge of each. Technicll Report. 110ng with the standard notice of lYailability from the National Technicll Information Center (except for Liquid Metal Fast Breeder Reactor reports. lVa Hable from DOE). Unless otherwi se speci fied in the contrlct. the legll dfsc1lim~r slll11 read: lonCE This report was prepareel as an account of wort sponsored by an agenc)' of tile united States 'oyernaent. leitller tile United Stites nor any Igency thereof. nor any of their employees. aates. any warranty. expressed or 1.p11 eel. or asnaes any 1egll "ab111ty or respons1bl1ity for any th1rd party's use or the results of such ne of alii hforaat1n. apparatn. product or ,rocess dhctos" 1a th1s report. or represents that 1ts ue by such th1rd party would .ot 1.fr1nge pr1.ately DIm" r1ghts. . The ..1n body of eacll report sh.11 be prefaced by an .bstract of no .ore than ZOO words. The abstract shl11 be of the 1nforalt1,e rltller than the.descrfptf~e or tndicattye type. un1ess tile nature of tile report prec1udes the preparatton of an tnforalthe abstract (e.g.. reports wtth ..ny contrtbutors. btbHoguplltes, etc). Use of the Internattona1 Syst.. of Untts ($1) is encouraged. Custo.ary equha1ents .t11 be parenthettca"y fncluded f0110wfng the 51 unfts. - 5,- JOURNAL ARTICLES AND TECHNICAL PAPERS ODE encourages the dissemination of the results of research thrOugh publication in recognized scientific journals and by participation in appropriate conferences and symposia. In some cases, DOE may require that any paper or article based on the contract effort be submitted to DOE for review and patent clearance prior to presentation or publication. This requirement w111 be included in the contract when applicable and five ,copies of each .anuscript will be submitted to DOE for review. DOE requires that all articles submitted for PUblication be accompanied with a notice to the publisher (and any other recipient) stating that, the Government retains its right to nonexclusive royalty-fr'ee license in and to any copyright coveri ng the paper. Acltnowl edgement of DOE sponsorship in all publications and proceedings is also required. If the effort under I DOE contract is such that results (interim of final) should be published or presented, certain associated costs .ay be proposed for inclusion in the project budget. These would include appropriate conference costs, page charges or other printing ISsessments 1evied by recognized scientific j,ournals, and costs incurred in obtaining a limited supply of reprints. The number of reprints require will be established separately in each contract. . There is no speci al DOE fol'lllt for articles or papers. . . '5"~~ A p pe nd 1 It C (3) Promptly notify the Contracting Officer in writing upon the award of any subcontract conUining a Patent Rights clause by identifyi ng the Subcontractor, the work to be performed under the subcontract. and the dates of award. and estimated completion. Upon the request of the Contracting Officer. the Contractor Shall furnish a copy of the subcontract to such requestor. (f) Publication In order that information concerning scientific or technical developments conceived or fi rst actually reduced to pract ice in the course of or under the contract is not prematurely published so IS to adversely affect patent interest' of OOE. , the Contractor agrees to submit to the Patent Counsel for i patent review a. copy of each paper 60 days prior to its i intended publication date. The Contractor may publish such I information after expiration of a 60-day period or SuCh I longer period IS mutually agreed to. ARTICLE C-v RIGHTS IN TECHNICAL DATA (a) Definitions (2) -Technical Data- .ans recorded information. regardless of form or chlracteristic. of I scientific or technical nature. It mlY. for exa.ple, document research, experimentll, devel oplllentll. or demonstration. or engineering work. or be uSlble or used to define I design or process. or to procure. produCe. support: ..intlin. or ope rite mlterial. The dau lilY be graphic or pictorial delineations or related perfor..nce or design type docullents or computer software (includi ng documentltion). EXlllples of technicll dati include research and engineering dltl. engineering drawings and ISsociated asts. specificltions. standards. process sheetl. ..nul\s. technicll reports. catalog it ell identificl~ion. Ind related infor..tion. Technicll dati as used. herein dOeS not include finlncial reports. cost InalyslS, and other inforllUion incident 11 to contract adllinistration. .Proprietlry Dltl- lie Ins technical dltl which embody trade secrets deYeloped at priYlte expense. such IS design procedures or techniques, ch..icll compositions of .aterials. or .Inuflcturing methods, ,rocesses, or treltllents, including IIi nor aodifications thereof. ,roYided thlt such dati: (i) Are not-generllly known or IYlillble from other sources without obligltion concerning their con- fident ia11 ty: (1) -~- SUBMYT FYVE ORYGYNALS Exhibit ~ DOE Equal Employment Requirements and Assurances . -CdJ~ DOE F 16005111-901 OMS Control No. 1910-0400 U.S. DEPARTMENT OF ENERGY ASSURANCE OF COMPLIANCE Nondiscrimination of Federally Assisted Programs The City of Chula Vista (Hereinafter called the "Applicant") HEREBY AGREES to comply with Title VI of the Civil Rights Act of 1964 ,Pub. L. 88-352). Section 16 of the Federal Energy Administration Act of 1974 (Pub. L. 93-275). Section 401 of the Energy Reorganization Act of 1974 (Pub. L 93438). Title IX of the Education Amendments of 1972. as amended (Pub. L 92.318. Pub. L 93:568. and Pub. L 94-482). Section 504 of the Rehabilitation Act of 1973 (Pub. L. 9:':1-112). thE Age Discrimlna"on Act of 1975 (Pub. L 94-135). Title VIII of the Civil Rights Act 01 1968 (Pub. L. 90.284). the Department of Energy OrganIzation Act 01 1977 (Pub. L 95-91). and the Energy Conservation and Production Act 01 1976. as amended (Pub. L. 94-385). In accordance WIth the above laws and regulations issued pursuant thereto. the Applicant agrees to assure that no person in the UMed States shall. on the ground of race. color. national origin. sex. age. or handicap. be excluded from participation in. be dented tile oeneltts of. or be otherwise subjected to discrimination under any program or activity in which the Applicant receives Federal assistance from the Department of Energy. Applicability and Period of Obligation In the case of any service. financial aid. covered employment. equipment. property. or strUcture provided. leased. or improved with Federal assistance extended to the Applicant by the Department of Energy. this assurance obligates the Applicantfor the period during which Federal assistance is extended. In the case of any transfer of such service. financial aid. equipment. property. or structure. this assurance obligates the transferee lor tile period during which Federal assistance is extended. If any personal property is so provided. this assurance obligates the App40cant lor the period during which it retains ownership or possession 01 the property. In all other cases. this assurance ObIogates the Applicant for the period during which the Federal assistance is extended to the Applicant by the Department of Energy Employment Practices Where a primary objective of the Federal assistance is to provide emQIOyment or where the Applicant's employment practices affect the delivery of services in programs or activities resulting trom Federal assistance extended by the Department. the Applicant agrees not to discriminate on the ground of race. colOr. nallOnal origin, leX, age. or handicap. in Its employment practices. Such employment practices may include. but are not ~lnI1ed to. recruitment. recruitment advertising. hiring. layoff or tennination, promotion, demotion. transfer, rates of pay. Ifaltllng ana participation in upward mobility programs; or other fonms of compensation and use of facilities. Subreclplent Assurance The Applicant shall require any individua1. organization. or other entity WIth whom it subc:OntraCts. subgrants. or subleases for the purpose of providing any service. financial aid. equipment. pr~. or structure to comply with laws cited above. To this end. the subrecipient shall be required to sign a written assurance torm. however. the obligation or both recipient and subrecipient to ensure compliance is not relieved by the collechon or SUbmission 01 written assurance fonms. Data Collection and Access to Records , The Applicant agrees to compile and maintain Information pertalNng to programs or IICIivities developed as a result of the Applicanfs receipt of Federal assiSfanC8 from the Department 01 Energy. Such informaIiOn shall include. but is not limited to. the following: (1) the manner in which selYioes _ or will be pi Cl.oded and related dafa l18()esSI'Y for determining whether any persons are or will be denied such ser.ices on the basis of prohbted Cltscrimination; (2) the population eligible to be served by race. color, national origin. sex, age, and handicap; (3) data regardII'Ig covered ....lpIoyment Including use or planned use 01 bilingual pubfic contaCI emplOyeeS serving beneficiaries of the program where necessary to permit effective partiCipation by beneficiaries unable to speak or understand English; (4) the IOcatlOfl of existing or proposed facilities connected with the program and retated information adequate for determining Whether the location has or will have the effect of unnecessarily denying access to any person on the basis of prohibited discriminatIOn: 151 the present or proposed membership by race. color. -G:"I - ational origin. sex. age. and handicap. in any planning or advisory body which is an integral part of the program; and (6) any jditional written data determined by the Department of Energy to be relevant to its obligation to assure compliance by ocipients with laws cited in the first paragraph of this assurance. .he Applicant agrees to submit requested data to the Department of Energy regarding programs and activities developed by 1e Applicant from the use of Federal assistance funds extended by the Department of Energy. Facilities of the Applicant neluding the physical plants. buildings. or other structures) and all records. books. accounts. and other sources of information ,ertinent 10 the Applicant's compliance with the civil rights laws shall be made available for inspection during normal business ,ours on request of an officer or employee of the Department of Energy, specifically authorized to make such inspections, nstructions in this regard will be provided by the Director. Office of Equal Opportunity. U.S. Department of Energy. -his assurance is giVen in consideration of and of the puroose of Obtaining any and all Federal grants. loanS. contracts excluding 'procurement contracts). property, discounts. or' other Federal assistance extended after the date hereto. to the >,pplicants by the Department of Energy, including installment payments on account after such data of application for Federal ISsistance which are approved before such date. The Applicant recognizes and agrees that such Federal assistance will be ,xtended in reliance upon the representations and agreements made in this assurance and the United States shall have the . ight to seek judicial enforcement of this assurance. This assurance in binding on the Applicant. its successors. transferees. md assignees. as well as the person whose signature appears below and who is authorized to sign this assurance on behalf )f the Applicant. Date) (Name of Applicant) . (AdIhss) (AIIIhoriZed 0IficiaI) ( ) (AppIicInI'S TIOIIphOI_ Number) . ,t;, :" . \;: ." .... .j ',' , ' . ~:~ ... ~ \,..., "!':€: :.. ,...... I.i, . . ... . t. '. . ":~".""- f,-;' - . ,,,:, - "." .. " .,. :- ~. ~~ .. "'I:!i.. -: :.:;; " ~-. ,it "/ ~"l;' ~, :.~. .... . '. ~t' .;- l '::; .:c.,:"'.r ...'.,: ,.'" ..' ..,. ~.;. ~'... .. '.. .... 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Iii fCI!g: li="':! . ..c..g Icg I'o! il:!ic ...t.~ - -"8" 1'''' l~i --0 $II!!.~' ~a~i~, lI;i i"r. , ! ~i'f~ !'11t~liit\\\~\\'~\\\\\\~ \ !!~!II ilill&!ti"~S' :&II'&~ i~i~SIl M~i~a 0 !..!~og(~!i ii~i'l!." III..H"~1 ~hSB" ...H a aIJlifiil!!5: fl~!:!iil! I !I-!l'~gw~l-ag~ -oo~ "gll,,- ig:~lgi1~Ei:j ~f~lirliif~E Hli! 1!-J!J81 I 'l~i~"I~ Jii:lai(!~illO ~i;:!!1~~ !~_~=~Ii!rl!l 8_0 gi:~. ~",,,'g ;~'Ii !I"~a,,c~~ . ... ~ . ~!:J!i8:1~lilfli!li51IsJi:~!lfl!fiJlff!fi~IIIJ!ff~iili~~Ie ~~...._..~o_; ~-nl!; Sf" a -.~a~~!i" -e-~o ~p-- i= J~I!li~i:~I!i:a!;fl~i~:I!! lif~~~i~! t:~i~ieii iJ!i~li;:~f= : ~Il"l-;;!g -I :~ .~e Ii i5g-~ ~.. c*-i-l g~I;III~I"~: ~ I ;~ if! ~~ !~i~i..jt! (I !t~i!;~~ ~~~:fg. I~ :ti~!~(1ila5. :1 ~ -'BY ~ ) COUNCIL AGENDA STATEMENT ITEM TITLE: ITEM MEETING DATE 10/111996 55'}; .~ R I. J,. 7' -' . C I." . eso utlOn acceptmg a 110rma Department of Education Adult Basic Education Section 321 grant funds awarded to the Chula Vista Literacy Team, appropriating funds, and amending FY 1996-97 budget to include a .18 FTE position. 7 SUBMITTED BY: Library Directo0'of? tI; ~\ REVIEWED BY: City Manage~ ~~~te: YES --X- NO ~ The Chula Vista Public Library applied for California Department of Education ABE Section 321 funds for each ofFY 1996-97 and FY 1997-98. The primary purpose of these grant funds is to improve the quality and responsiveness of programs which enable adults to acquire basic literacy skills. The first year grant of $5,840 has been awarded to the Library. The award is divided into two parts. The base grant ($3,500) must be used for supplemental staff development, assessment, and/or networking. The remaining funds ($2,340) are calculated based on the number of learner attendance hours, and these may be used for staff development and/or other enhancements to program quality. RECOMMENDATION: That Council adopt the resolution accepting California Department of Education Adult Basic Education Section 321 grant funds awarded to the Chula Vista Literacy Team, appropriating funds, and amending FY 1996-97 budget to include a .18 FTE position. BOARD/COMMISSION RECOMMENDATION: On January 24, 1996 the Library Board of Trustees voted to continue support for the Library's ABE Section 321 application. (ATTACHMENT A.) DISCUSSION: On June 11, 1996, Council ratified the Library's application for ABE 321 grant funds to be awarded over a two year period. (ATTACHMENT B.) The first year grant funds will be used to support conducting leamer needs assessments and progress evaluations, (a .18 FTE clerical aide) and to provide additional hours of supervision and training in the Literacy Center computer learning lab. FISCAL IMP ACT: Accepting this grant will provide $5,840 to implement this program in FY '96-97 through the Chula Vista Literacy Team. The grant has been approved for a two-year period, based upon submission of an annual continuation request. The fiscal portion is approved for a one-year period but is renewable annually through FY 1997-98. Funds cannot be used to supplant the current volunteer tutor program. These funds will be appropriated into fund 260-2605. (ATTACHMENT C). 7) RESOLUTION NO. ) f( i 1 J RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING CALIFORNIA DEPARTMENT OF EDUCATION ADULT BASIC EDUCATION SECTION 321 GRANT FUNDS AWARDED TO THE CHULA VISTA LITERACY TEAM, APPROPRIATING FUNDS, AND AMENDING FY 1996-97 BUDGET TO INCLUDE A .18 FTE POSITION WHEREAS, the Chula vista Public Library applied for California Department of Education ABE Section 321 funds for each of FY 1996-97 and FY 1997-98; and WHEREAS, the primary purpose of these grant funds is to improve the quality and responsiveness of programs which enable adults to acquire basic literacy skills; and WHEREAS, the first year grant of $5,840 has been awarded to the Library and is divided into two parts: the base grant ($3,500) must be used for supplemental staff development, assessment, and/or networking and the remaining funds ($2,340) are calculated based on the number of learner attendance hours, and these may be used for staff development and/or other enhancements to program quality; and WHEREAS, on January 24, 1996, the Library Board of Trustees voted to continue to support the Library's application for ABE Section 321 grant funds. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby accept California Department of Education Adult Basic Education section 321 grant funds awarded to the Chula vista Literacy Team. BE IT FURTHER RESOLVED that the FY 1996-97 budget is amended to include a .18 FTE position by appropriating $5,840 into Fund 260-2605 as set forth in Attachment C. Presented by Approved as to form by David Palmer, Library Director ,.1ftI;jJI1/ ~ ,d::~i!r-~ An . Moore, \ll(cting ity ,y Attorney C:\rs\abe321.grt '7~~ ATTACHMENT A Library Board of Trustees - 3 - January 24, 1996 arena. The YMCA currently has a soccer arena on its Paseo Ranchero and Paseo Magda site, which serves between 1,200 to 1,400 children per year. The YMCA is planning to move the soccer arena to the library site while its new facility was being built, probably in early 1998. The library would ultimately benefit as its site would be improved and utilities brought in at no cost to the City. The City could then install a temporary facility to serve the Rancho del Rey community. YMCA staff is currently negotiating with the Sweetwater School District for joint use of their soccer fields at the middle school soon to be constructed. Director Palmer suggested that the Library Board support a two-year agreement with an option to renew for one year, with a six month notice to vacate. MSUC Donovan/Alexander) that the Library Board supports a two year agreement with the YMCA with an option to extend it for one year and a six month escape clause. ACTION C. Literacy ABE Section 321 Grant MSUC (AlexanderlDonovan) that the Library Board supports the Literacy Team's application for ABE, Section 321 grant funds. (Trustee Viesca arrived at this time 3 :30 pm) ACTION A. 1996-97 Budget Dawn Herring, City Budget Manager, reported to the Trustees that the City is transitioning to a more performance based budget. The budgets will be input on a new local area network-based system which will allow staff to use information in many different ways. The new system will also have the ability to evolve to future City needs. The City Manager has asked departments to prepare potential 10% budget cuts. Staff will go back to Council in February or March to get feedback on their priorities before the budget is finalized. (Trustee Williams arrived at this time 4:00 pm) Chair Clover-Byram asked if the City took into consideration revenue from new stores and businesses such as the new Wallmart. Mrs. Herring stated that the City Manager did indeed take this revenue into consideration. 1/> / ~ AITACHMENT B Minutes June 11,19% Page 3 requesting pennission to conduct a Fi~stas Patrias special event on Sunday, September 15, 1996, in and around Bayside Park, As a co-sponsor of the event, the City is applying for a Tidelands Activity Permit from the San Diego Unified Port District, which contains indcmnitkation language. Staff recommends approval of the resolution. (Director of Parks and Recreation and Chief of Police) 9, RESOLUfION 18330 APPROVING THE RENEWAL OF THE AGREEMENT WITH THE SWEETWATER UNION HIGH SCHOOL DISTRICT FOR JOINT USE OF THE LIBRARY FACILITY AT EASTLAKE HIGH SCHOOL - The original three-year agreement providing for the joint use of the EastLake High School Library wilJ expire on 6/30/96, On 12/19/95, Council directed Library staff to negotiate a renewal of the joint use agreement with School District staff, Staff recommends approval of the resolution, (Library Director) Councilmember Rindone abstained from participation in order to avoid a conflict of interest due to his employment by the Sweetwater Uninn High School District. 10, REPORT APPLICATION OF THE CHULA VISTA PUBLIC LIBRARY FOR CALIFORNIA DEPARTMENT OF EDUCATION, ADULT BASIC EDUCATION, SECTION 321 FUNDING FOR THE TWO-YEAR PERIOD FISCAL YEAR 1996/97 AND FISCAL YEAR 1997/98 THROUGH THE CHULA VISTA LITERACY TEAM - The Cbula Vista Public Library has applied for $5,840 in California Department of Education, ABE Section 321 funds for fiscal years 1996/97 and 1997/98 (subject to availability of funds from the federal government). The funds wilJ be used to improve the yuality and responsiveness of programs which enable adults to acquire basic literacy skilJs. Staff recommends Council accept the report and ratify the Library's application for California Department of Education Adult Basic Education. Section 321 funding. (Library Director) * * END OF CONSENT CALE~DAR * * PUBLIC HEARINGS AND RELATED RESOLt.:TlONS AND ORDINANCES 11. PUBLIC HEARING CONSIDERATION OF COAST AL DEVELOPMENT PERMIT NUMBER 70 FOR CONSTRUCTION OF A 35-FOOT HIGH FREESTANDING SIGN H THE BROADWAY ENTRY TO CHANNELSIDE SHOPPING CENTER The sign IS exempt from 'he California Environmental Quality Act hy a Class 11 (a) exemption. On 7/25/94, the Design Review COlIuru'tee reviewed and approved the sign with a maximum of five panels. The Coastal Commission approved a Local Coastal Program (LCP) amendment on 5/7/96. to allow freestanding signs up to 35 reet in height within the Inland Parcel, Suharea 4 of the LCP. Staff recommends approval of the resolution. (Director of Community Dt:vtdupmc:nt) RESOLUfION 18331 AUfHORIZING THE ISSUANCE Of COASTAL DEVELOPMENT PERMIT NUMBER 70 FOR A 35-FOOT HIGH FREESTANDING SIGN AT THE BROADWAY ENTRY TO CHANNELSIDE SHOPPING CENTER Councilmembdr Alevy stated he would abstain from partit..::ipation in order to avoiJ a contlict of interest as Gatlin was a client of his firm. Councilmember Moot stated he would ;;"nstain from participation in order to avoid a conflict of interest as Gatlin was also a client of his tirm. This heing the time and place as advertised, the puhlit..:: heanng was Jc-..:JareJ opc:n. There heing no puhlic testimony, the public bearing was declared closed. RESOLUfION 18331 OFFERED BY COUNCILME~IBER RINDO:'olE. reading urthe text wu.s waived. pu.ssed and approved 3-0-0-2 with Alevy and Mout ahstaining, ORAL COMMUNICATIONS . Marie Sackett. 609 Mariposa Circle, Chula Vista. CA, W.lS not pr:-",.:nt ..'" hen ...:aJkJ to the dais. 7-1 ABE SECTION 321 FUNDS FY 1996-97 I 0/ 1/96 BUDGET ACCOUNT: 260-2605 5105 Hourly Wages 5143 Medicare 5145 PARS 5201 Professional Services TOTAL: / 7~L-y $3,325. $115. $60. $2.340. $5,840. ATTACHMENT C COUNCIL AGENDA STATEMENT ITEM ~ MEETING DATE 10/1/96 R 1, / f:1j '/ (fy' h L'b ' 1" C C l'C ' eso unon ran mg tel rary s app lcatlOn lor a llorma State Library Literacy Program Transition Grant funds, accepting the grant award, appropriating funds, and amending the FY 1996-97 budget to include .85 positions. SUBMITTED BY: Library Director 1)-.:)\t\~./ REVIEWED BY: City Managerj8 ~ ~ (4/5ths Vote: YesX-No_) Due to the elimination of U.S. Departmen~ofEducation Title VI Library Literacy grant funds from the 1996-97 federal budget, the California State Library offered a one-time transition grant opportunity to programs who had received federal grants in FY 1995-96. Transition grants are intended to allow literacy programs to continue the work begun under Title VI funding, while affording time to research and secure futlJre alternative funding sources, Turn-around time from notification of this grant opportunity to the application and actual awards was unusually swift. ITEM TITLE: RECOMMENDATION: That Council adopt the resolution ratifying the application, accepting the California State Library Literacy Program Transition Grant funds, appropriating funds, and amending FY 1996-97 budget to include .85 FTE positions. BOARD/COMMISSION RECOMMENDATION: It is expected that the Library Board of Trustees will support the California State Library Literacy Program Transition Grant application at their meeting of September 25, 1996. DISCUSSION Grant funds will be used to continue our model program, begun in 1994 under a Title VI grant, to identify and aid adult learners with language based learning disabilities, commonly referred to as dyslexia. The program requires recruihnent of 40 volunteer tutors who will be trained to use instructional materials and techniques specially designed for this population, Training and extensive support will be provided to both new and existing tutors by a.72 instructor and a.13 clerical aide. We will also offer small group classes for adult learners who are awaiting a l-to-l match. Additional funds will be spent on staff development and training. During the grant period, identification of alternative funding support for this program is a primary goal. FISCAL IMPACT: $30,000 will be received to implement this program through the Chula Vista Literacy Team, The grant period is October 1, 1996 through September 30, 1997. These funds will be appropriated into fund 260-2604. (See Attachment A) These funds carmot be used to supplant the existing tutor reading program. 'if) RESOLUTION NO. )1(-;/<<1 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA RATIFYING THE LIBRARY'S APPLICATION FOR CALIFORNIA STATE LIBRARY LITERACY PROGRAM TRANSITION GRANT FUNDS, ACCEPTING THE GRANT AWARD, APPROPRIATING FUNDS, AND AMENDING THE FY 1996-97 BUDGET TO INCLUDE .85 POSITIONS WHEREAS, due to the elimination of U. S. Department of Education Title VI Library Literacy grant funds from the 1996-97 federal budget, the California State Library offered a one-time transition grant opportunity to program who had received federal grants in FY 1995-96; and WHEREAS, transition grants are intended to allow literacy programs to continue the work begun under Title VI funding while affording time to research and secure future alternative funding sources; and WHEREAS, the Library Board of Trustees voted to support the California State Library Literacy Program Transition Grant application at its meeting of September 25, 1996. NOW, THEREFORE, BE IT RESOLVED the city Council of the City of Chula Vista does hereby ratify the Library's application for California State Library Literacy Program Transition Grant funds and accept the grant award. BE IT FURTHER RESOLVED that the City Council does hereby amend the 1996-97 budget to include .85 positions. BE IT FURTHER RESOLVED that the $30,000 received to implement this program through the Chula vista Literacy Team will be appropriated in Fund 260-2604 as set forth in Attachment A. Presented by Approved as to form by David J. Palmer, Library Director f~5J~[(.1tfr~ ~ An . Moore, Ac ng Cit~ ' Attorney C:\rs\litgrant. :;r~,;L TITLE VI TRANSITION GRANT FY 1996-97 10/1/96 BUDGET ACCOUNT: 260-2604 5105- Hourly Wages .72 Instructor .13 Clerical Aid $22,555 5141 - PERS 1,510 (7.345% plus $24.18 Survivors Benefits) 5143 - Medicare (1.45%) 329 5145 - PARS (3.75%) 86 5201- Professional Services 5.520 TOTAL $30,000 6~_3 ATTACHMENT A COUNCIL AGENDA STATEMENT /f{'I~'; Item ----.L Meeting Date 10/01/96 ITEM TITLE: RESOLUTION APPROVING CLOSURE OF THIRD AVENUE FROM "E" TO "G" STREETS FOR THE THIRD AVENUE FESTIVAL ON OCTOBER 6, 1996, WAIVING SIDEWALK SALES ORDINANCE, AND WAIVING BUSINESS LICENSE TAXES FOR DOWNTOWN BUSINESS ASSOCIATION AND VENDORS PARTICIPATING IN EVENT Community Development Director l S /' ~ City Manager: 1 ~11 / / / ~ , Ki (4/5ths Vote: Yes_ NoX) SUBMITTED BY: REVIEWED BY: BACKGROUND: The Chula Vista Downtown Business Association is requesting permission to close Third Avenue between "E" and "G" Streets in order to conduct the Third Avenue Festival on Sunday, October 6, 1996, from 5:00 a.m. to 8:00 p.m. This will be the sixth annual festival. The festivities for this event will include live entertainment along with approximately 100 arts, crafts, and food booths. RECOMMENDATION: That the City Council adopt a resolution which: 1. Allows the closure of Third Avenue from "E" to "G" Streets and adjacent side streets to the alleyway on October 6, 1996, subject to conditions listed in Exhibit A of the resolution; and, 2. Waives the City's sidewalk sales ordinance; and, 3. Waives business license taxes for the DBA and vendors taking part in the event. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: The Downtown Business Association (DBA) is requesting the following: . The closure of Third Avenue between "E" and "G" Streets on Sunday, October 6, 1996 from 5 a.m. to 8 p.m.; and, . A waiver of sidewalk sales ordinances; and, . A waiver of business license taxes for DBA and vendors taking part in the event. The closure of Third Avenue will affect the flow of traffic in the downtown area. The DBA will be required to coordinate with the City's Traffic Engineer and prepare a traffic detour plan to the Traffic Engineer's specifications. The City's transit system will also be affected. The Transit Coordinator's staff has agreed to the closure as long as "E" and "G" Streets remain passable for traffic. The DBA is aware of this stipulation and will abide by it. 9--) Page 2, Item if Meeting Date 10/01/96 In order to control noise levels and avoid excessive noise, the DBA has agreed to limiting the hours of band performances and monitoring locations and noise levels of live entertainment (see condition #4). The DBA has requested that the business license tax for promotional events be waived for the Festival. The taxes involved include a $5 assessment to the sponsoring organization (DBA) and a requirement that each vendor have a Chula Vista business license. (The cost would be $12.50 for any vendor without a current City business license.) In the past, the City has waived the business license tax for the DBA and vendors taking part in the one day event in order to encourage participation. The rationale for waiving the fee is that the Festival is expected to attract several thousands of people to the Chula Vista Downtown area which will promote the downtown businesses. The resulting effect will be the generation of additional commercial activity and increased sales tax revenue to the City. Waiving the business license taxes will encourage vendor participation. Since having a large number of vendors will help insure the success of the 1996 Third Avenue Festival, staff recommends the waiver. It is recommended that the City Council approve the DBA's request subject to the following conditions: 1. The DBA shall provide for adequate traffic and crowd control, as determined by the City's Traffic Engineer and Police Department. The cost will be shared by the DBA and the City (approved by Council 5/7/95); 2. The DBA shall provide adequate litter control during and after the event, including professional street sweeping. Expenses for this service will be paid by the DBA; 3. The DBA shall notify all property owners and tenants (including businesses and residents) that will be affected by the street closure. The notification must be done seven days prior to the event date; 4. The DBA will be responsible for taking measures to insure that the noise generated by the event's activities does not reach an excessive level; the DBA will undertake the following measures in order to implement this condition: A) DBA shall continually monitor noise levels of performing bands, stereos, and other sound-emitting devices and will make adjustments as needed. B) A plan showing the location of the performing stages will be submitted for Community Development staff review and approval prior to the event. C) All band performances shall be limited to the hours of 10 a.m. to 5 p.m. D) The DBA shall incorporate these rules into the contracts with all event participants and make sure that they abide by them. 7-2 Page 3, Item 1 Meeting Date 1 % 1/96 5. In order to meet the requirements of the Fire Marshall, the alleyways between "E" Street and "G" Street, east and west of Third Avenue, shall remain open and unobstructed for the purpose of fire apparatus access in the event of an emergency. The Fire Marshall has required that all food-cooking vendors have a 2A 1 OBC-type Fire Extinguisher readily available in their booths; 6. In order to meet the requirements of the Fire Marshall and the Transit Division, "E" and "G" Streets must remain open to traffic; 7. The Downtown Business Association must provide, 10 days prior to the Festival, evidence of general liability insurance in the amount of $1 million, in the form of a certificate of insurance and policy endorsement satisfactory to the City, naming the City of Chula Vista as additional insured; and 8. The Downtown Business Association must execute an agreement to hold the City harmless from any liability stemming from Festival activities in the street. FISCAL IMPACT: The City will incur the administrative costs of processing this request. The DBA has requested that the business license taxes be waived for the festival. The taxes involved are a fee of $5 to the sponsoring organization (DBA) and a $12.50 tax for each participating vendor that does not currently have a Chula Vista business license. By waiving these taxes, the City will forego approximately $900 in fees. On May 7, 1996, the City Council approved a budget to provide public services for the event. (pb) M:\HOME\COMMDEV\STAFF.REP\10-01-96\tcfest96.113 [September 25, 1996 (12:18pm)] 9-~? RESOLUTION NO. J:?Ljjl~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING CLOSURE OF THIRD AVENUE FROM "E" TO "G" STREETS FOR THE THIRD AVENUE FESTIVAL ON OCTOBER 6, 1996, WAIVING SIDEWALK SALES ORDINANCE, AND WAIVING BUSINESS LICENSE TAXES FOR DOWNTOWN BUSINESS ASSOCIATION AND VENDORS PARTICIPATING IN EVENT WHEREAS, the City Council of the City of Chula Vista established a Business Improvement Area on November 16, 19671 which created the Downtown Business Association; and WHEREAS, the Downtown Business Association has requested to close Third Avenue from "E" to "G" Streets including adjacent side streets to the alleyway in order to conduct the 1996 Third Avenue Festival on October 6, 1996; and WHEREAS, the Downtown Business Association has requested a waiver of the City's Sidewalk Sales Ordinance so that the Downtown Business Association can conduct the 1 996 Third Avenue Festival; and WHEREAS, the Downtown Business Association has also requested a waiver of the Business License Tax for promotional events for the Downtown Business Association and vendors participating in the 1996 Third Avenue Festival. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby find, order, determine and resolve that the City Council of the City of Chula Vista approves the closure of Third Avenue from "E" to "G" Streets on October 6, 1996 for the purpose of the Downtown Business Association conducting the 1996 Third Avenue Festival subject to the conditions listed in Exhibit A, attached hereto as though fully contained herein. BE IT FURTHER RESOLVED that the City Council of the City of Chula Vista approves the requested waiver of the City's Sidewalk Sales Ordinance so that the Downtown Business Association can conduct the 1996 Third Avenue Festival on October 6, 1996. BE IT FURTHER RESOLVED that the City Council of the City of Chula Vista approves the requested waiver of the City's Business License Tax for the Downtown Business Association and all vendors taking part in the 1996 Third Avenue Festival on October 6, 1996. Presented by Approved as to form by &.c~~ Chris Salomone Director of Community Development d{IJ:l;tJ} fJ! C'Uv&-~t4-r7-~?'1r . Ann r U ., Acting City Attorney [(PRS! M:\HOME\COMMDEV\RESOS\ClQSURE.RES (September 25,1996 (12:13pm)) 1-/1 Resolution October 1. 1996 Exhibit A Conditions of Approval for the Closure of Third Avenue from "E" to "G" Streets on October 6, 1996 by the Downtown Business Association: 1 . The DBA shall provide for adequate traffic and crowd control, as determined by the City's Traffic Engineer and Police Department. The cost will be shared by the DBA and the City (approved by Council 5/7/95); 2. The DBA shall provide adequate litter control during and after the event, including professional street sweeping. Expenses for this service will be paid by the DBA; 3. The DBA shall notify all property owners and tenants (including businesses and residents) that will be affected by the street closure. The notification must be done seven days prior to the event date; 4. The DBA will be responsible for taking measures to insure that the noise generated by the event's activities does not reach an excessive level; the DBA will undertake the following measures in order to implement this condition: A) DBA shall continually monitor noise levels of performing bands, stereos, and other sound-emitting devices and will make adjustments as needed. B) A plan showing the location of the performing stages will be submitted for Community Development staff review and approval prior to the event. C) All band performances shall be limited to the hours of 1 a a.m. to 5 p.m. D) The DBA shall incorporate these rules into the contracts with all event participants and make sure that they abide by them. 5. In order to meet the requirements of the Fire Marshal, the alleyways between "E" Street and "G" Street, east and west of Third Avenue, shall remain open and unobstructed for the purpose of fire apparatus access in the event of an emergency. The Fire Marshal has required that all food-cooking vendors have a 2A 1 aBC-type Fire Extinguisher readily available in their booths; 6. In order to meet the requirements of the Fire Marshal and the Transit Division, "E" and "G" Streets must remain open to traffic; 7. The Downtown Business Association must provide, 1 a days prior to the Festival, evidence of general liability insurance in the amount of $1 million, in the form of a certificate of insurance and policy endorsement satisfactory to the City, naming the City of Chula Vista as additional insured; and 8. The Downtown Business Association must execute an agreement to hold the City harmless from any liability stemming from Festival activities in the street. 9~-~ COUNCIL AGENDA STATEMENT City Council Meeting )4- 'l'{- Ordinance ~ - Adopting otay Ranch Pre-Annexation Development Agreement Between the City of Chula vista and Baldwin Builders SUBMITTED BY: Deputy City ManagerG1~ REVIEWED BY: City Manager (~ 4/5 Vote: Yes No~ This item was continued on ~st 20, 1996 so that staff might re- review the Agreement to make sure it provides the appropriate protection against the circumstances that occurred in San Marcos on the Palomar Project and also to address any provisions that might be relevant to problems resulting from development stoppage in the st. Claire development in Chula vista. A number of changes are suggested as discussed herein. This agenda statement is an addendum to the original agenda statement forwarded to you on August 20. The original is attached for your information as well. Item No. /{/ Date 10/0l796 ITEM TITLE: RECOMMENDATION: That the City Council place the ordinance on First Reading. BOARD/COMMISSION RECOMMENDATION: The Planning Commission recommended approval of the Agreement, 5-0, on August 14, 1996. DISCUSSION: In re-examining the Development Agreement, the basic premise stated by staff at the August 20 City Council meeting was sustained. The premise was that this is a development agreement at a broad micro- level applying to a piece of property which at this time only has an adopted General Plan and General Development Plan and no entitlements. As such, most of the basic provisions of the Agreement are unchanged. However, staff has scrutinized closely the sections dealing with future discretionary changes, improvements required by a subdivision map and future formation of assessment districts and public financing mechanisms. Further, a couple of protective statements with regard to st. Claire are recommended as well. A. Chanqes to Insure Greater Protection Aqainst Likelihood of San Marcos Paloma Concerns. Two sections have been strengthened. section 7.4, Improvements Required by a Subdivision Map, has been clarified as to the circumstances where the Developer can utilize a reimbursement district for public improvements. The circumstance is where the /t!~- - / improvement is a requirement of a tentative map and is the responsibility of either another party or is being oversized. The City's consideration to process the request does not limit the City's ability to approve or reject the District in its discretion. The second section which has been strengthened is Section 14, Districts, Public Financing Mechanisms. The revised language more clearly states that while the City may be obligated to initiate, process and take an action on the formation of any public financing districts, it is not obligated to approve any such district in its discretion. Further, specific reference to community facility districts (Mello Roos) is deleted. The City has never used Mello Roos to finance city public improvements nor does it have any intent to do so at this time. Future consideration is not prohibited, however, should the Council wish to consider it. At this time the school districts are the only entity using Mello Roos Districts in Chula vista. Lastly, two changes are made to sections 7.2 and 5.2.1 to clarify that the dedication requirement for the project and the actual time frame as to when development occurs could be impacted should there be any future change to the Growth Management Ordinance. It is not anticipated that there would be any significant change to the threshold standards and it is not expected that any such future change would delay a project but the possibility should be protected. B. Chancres to Address st. Claire Issue A new section, Assurance of Compliance, 7.9, has been added to protect the City in the future against project non-compliance. The section states the City will not take any action on a Future Discretionary Applications by an Owner unless the City is assured that the Owner is in full compliance with all governmental requirements as to any real property covered by the Development Agreement. A new second section, Complete Construction, 7.10, addresses the scenario where building permits have been issued and development has stopped. It states that if the City has determined that a nuisance or fire or safety hazard exists, then the Developer agrees to take appropriate steps to cure the nuisance. If he/she does not, then the city can step in and cure the nuisance at the Developer's sole cost and expense. In section 14, Public Financing Mechanisms, a phase has been added to require the developer to comply with the terms of any assessment district or other financing mechanism and make timely payments thereon. The city retains its rights to take any actions legally authorized to guarantee payment as well. Attached also is a copy of a letter from Baldwin Builders explaining further their position in San Marcos and with regard to the st. Claire Project and the bankruptcy action. The letter dated September 12, 1996 was addressed to the Mayor and Council. j/ - ) ,L,-/ ~ Fiscal Impact It isn't possible to quantify the value of the Agreement to the City or the other parties. Through annexation and the related property tax, sales tax, etc., the City will realize significant benefits. Likewise, the Developers benefit from the vesting and certainty provided by the Agreement to be able to get loans and sell and develop the Property in accordance with current and future approvals. The value of the Agreement is significant to both parties but is not quantifiable. bald113 /{/~ j ORDINANCE NO. .2/, 'II) AN ORDINANCE OF THE CITY OF CHULA VISTA ADOPTING OTAY RANCH PRE-ANNEXATION DEVELOPMENT AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND BALDWIN BUILDERS WHEREAS, a City of Chula Vista application to have the otay Valley Parcel included within City's sphere of influence was approved on July 1, 1996 by the Local Agency Formation Commission; an.d WHEREAS, the development of the Otay Valley Parcel will require substantial public improvements phased over a period of time; and 'WHEREAS, California Government Code S65867.5 et seq. provides authority for cities to enter into development agreements; and WHEREAS, CEQA review is not required for the development agreement since an in-depth review occurred when the environmental review was approved for the Otay Ranch General Development Plan and adopted by the City on October 28, 1993. (Lonq Beach Sav. & Loan v. Lonq Beach Redevel., 232 Cal.Rptr. 772, 881-2 [1986]); and WHEREAS, the Planning commission held a public hearing on August 14, 1996 to consider the pre-Annexation Development Agreement and the City Council held a public hearing on August 20, 1996 to consider the Pre-Annexation Development Agreement; and WHEREAS, city Council has found that this Pre-Annexation Development Agreement is consistent with the city's General Plan arid all applicable mandatory and optional elements thereof as well as other applicable policies and regulations of the City; and WHEREAS, the Planning Commission and City Council have reviewed the Pre-Annexation Development Agreement and recommend its approval. NOW, THEREFORE, the city Council of the City of Chula Vista ordains as follows: SECTION I: Pre-Annexation Development Agreement for a portion of the otay Valley Parcel. In accordance with Section 65867.5 of the Government Code, the City council of the City of Chula vista has approved that certain document entitled "Pre-Annexation Development Agreement" for a portion of the otay Valley 1 /0 -,;J Parcel with Baldwin Builders, on file in the office of the City Clerk as Document No. SECTION II: The Mayor of the City of Chula Vista is hereby authorized and directed to execute said Agreement for and on behalf of the City of Chula vista. SECTION III: This ordinance shall take effect and be in full force on the effective date of annexation as set forth in the Pre-Annexation Development Agreement. Presented by Approved as to form by George Krempl, Deputy City Manager ~Y-~~q- Ann Y. Moore, Acting City Attorney C:\or\baldwin.or 2 /!;;--~ ....... ..'-......."'_ '" __n..' BALDWIN BUILDERS !() I Septco+r 12, 1996 Vsa: J'.~' '3. IIDI1 ()wmi&tIt DIIiwry no HoDorabJe SIddey HDrtOll, Mayor ofTbe ~ ofCbula VIItI, .., )Ui>"rI of1bl City COllaeU (:nY OF CHtJLA VISTA 276 Pourth Avaaae QBJIa V1Jta, CA 91910 J!.e: I , I)eIr Mayor HDrIcD ad MemberI oftbc City Couaoi1: 0tI.y 'R...........- · - ..inn DewIIopMIIt Af1-- twPADA"' Bd-- tile ~ of l"hI.r. V.... md 'RJoIdwIB Builden 11Us letter it wrkteo ill reprc1 to the Publio Heariaa wIIioh wia held beJbre you 011 Au..- 2.0, ~996 Cor your oouideration of Ipprcml of the above ....s 1IIIUeI'. ~ you ue...... n,-'-of~I"Wt.ofthoPIIOI'III jII'Oj~1a SlalMItooI. uwellu a , ,_...... of tho SID Mar1;os CIty Q,omdl IpDke It the bauing. Tbe prlncIpal QCD:Cm -v' vi tjy tU ~. ... that BalclwiII Bui1derI bid DOt lived up to tbeIr obIIptIou ill tbe Paloma ~ Tbe lIIQOII(Iuy issue was tile Mello-Roo. rollback. ~ I ar1~ cbiDs tho '-iDs. tile ~ MeIIo-'RDoI8Gtion tbat WII beiDa v_A~ by tbe City of SID !rfBrco& it QIIIItruy to law md cauld IWI1t in 1bI boIId holden dedariJII a cIefauh ~ woulcI DOt bI ofbtuih to our ~ or the r'-'~JI. I bllieve you ....111 provided with oopIeI oftbo m~ from tbo SID Marcos City V-..... - SpeciIJ BODCl C<<IaseI .jdWIas the SID Man:oI City CouIII:ilIpiDlt the Idicm the SIn Marcos CIty C-oomdt was .;tt.....ptl"l to .......1IIb. AI... bavt t'".m''''Y IIatecI, - ue wiltiIIa to -..ork with tbIIm IIePldiDI tills ieIuo but it IIIUIt 110 done In I ~ that cIooI DOt jtIopIrdiII8 the w-:'IJ MtIlo-RDoI .......-....n.. . I . . ....... . -0- We Ibare ad 'IJIIISentIDd the prabI- ....pICleed by tho nrI.,- ad.. I . i'IJ oaurt appcoval 10 COIIIfI'-1bIualiPdwt b.~tatol')' wbIch wu __ _ ...,ped by our 1"'1 dlctMO"S, Dur\IIs tbe ....00UIt bearina we are Ie It'. approval to rwtIn ~ of the pIdiIlly ooaIP1.cw' 16111 HoIt,A,gu..1nW. CAIIMOIS (114) 16l).11OO.hc (7lf) 1SUg11 'Iho HoDor8bJoMayw aDd ~ oftbo Cky Coundl Pase2 ,,_'-120 1996 ba........f uIIiP lit TelearaPh CqoB wIIidI, IfIIIiD, WIIItIrted IllllItOpp!d by the preYious ........ IlAl't ofBa1ctwiD BuilderL w. haw oaIJ a-n IavoIve4 with ... proietti'" till last three UId ~rlllO-.'I.1IId are -Idaa dRir-IY to ItteIDpt to IIriIII BIIdwia ...... ..Iato aD opera&ioDll mode II1II to CKnliltato tho.~ hou... oa tboIe ..~ wbidL have DOt _lIlY ~ 1br lit Jeut" last 1IIne ~... As JOIlIIIIJ receD, lit the JUDl2.5th JoiDt MIIIdDs orb CbuIa Villa City CoIrJPIIDd till ".....!oIe eo.-:..aoa. we qreedtv IUppOrt till - ][..08 of our ~ iIIIo tile Oty UId 1he City .,.nll to JIOIOIIete 11\ aoocS Gdth UIiIIa due "''1ir'- to IIIter Do · n-IopmeIIt AgnIomC11t with BaIdwia "-!door&. From tbIt dIte we hive IIlPportI!d the .......-Iftl1l1111 aD. we.. ukiDsl& tbat 1he 0Iy StIff aDd City Cov....., boDor tbeIr oomI(IOiIC\iDI 0.:-",,,:'.... ade tv 111. As was........ f by Jolm Oou lit till ""8'- 20th beariD& the City will provide tile ~ dIat wiIl....dbO) OW' tilture deYtlo~ 011 till 'bDcb" the time ofb pro 0 I 1"1 of_ SPA ud TIIdatift 'fngt Maps ibr our property. wbicb, 10m the DJtb(matlon we have .oc:e:~ tom the City. will require lit least two (2) years to complete. IfJOll haw aDJ questlOIIS reprcIIDa b Ibove pIeue com-rJ" me. We look A. ....4 to a positive J'eIOIution oftbia JII8tter at our S..- 17, 1M bearing. Vffly truly your&, WUlc:m 00: 101m 00It, City ~"91', 01y ofCllula VISta (1Iia: ftI.,-J-"''' 0\."". delivery) DaWI ~.,,\ TruICOe(YIa: &v.I...llo) Oeny II1D1riska. Special pl........ Projecta }.6.~.... CIty af'Oda Vata (vi&: ~;)o & O\._..;pt c!IIivIry) Jim 1oPcnI\. CEO. BIhhrin BuiIden o.orse Kremp!, DepInY CIty '--r. at)' otCllula VISta (via: &~ " CMnIsht cJe1io- ,) PRE-ANNEXATION DEVELOPMENT AGREEMENT THIS PRE-ANNEXATION DEVELOPMENT AGREEMENT ("Agreement") is made effective on the date hereinafter set forth below by and among the CITY OF CHULA VISTA ("city") and BALDWIN BUILDERS, a California corporation, ("Baldwin"), who agree as follows: 1. RECITALS. This Agreement is made with respect to the following facts: 1. 1 Owner. The owners of the properties subj ect to this Agreement (hereinafter collectively referred to as "Owner" or as "Developer") are as follows: 1.1.1 Baldwin is the Owner of approximately 1204 acres of undeveloped real property ("the property") in the incorporated area of the county, described in Exhibits "A" and "C", attached hereto and incorporated herein by this refer- ence. Portions of the Property are located in villages 10, 11, Planning Area 12 and the University site of the otay Ranch Property. 1. 1 . 2 The "Property" is part of a larger area commonly known, and referred to herein, as "the otay Valley Parcel of Otay Ranch." 1. 1. 3 Baldwin Builders is an entity in a ChaDter 11 BankruDtcv t:lroceedina in case number ND 95-13057-RR at U.S. BankruDtcv Court at Santa Barbara where the bankruDtcv trustee. David Gould. obtained a court order aDDrovina the emDlovment of Jimmv D. Johnson. as set forth in Exhibit "D". 1.2 city. The City of Chula vista is a municipal corporation with Charter city powers incorporated within the county. 1.3 Code Authorization and Acknowledaments. 1.3.1 City is authorized pursuant to its Charter, self-rule powers, and California Government Code sections 65864 through 65869.5 to enter into development agreements for the purpose of establishing certainty for both City and owners of real property in the development process. 1.3.2 City enters into this Agreement pursuant to the provisions of the california Government Code, its home- rule powers, and applicable city ordinances, rules, regula- tions and policies. 1.3.3 City and Owner intend to enter into this agreement for the following purposes: 1.3.3.1 To assure adequate public facilities at the time of development. -1- 1.3.3.2 To assure development in accordance with city's capital improvement plans. 1.3.3.3 To provide certainty to Owner in the development approval process by vesting the permitted use(s), density, intensity of use, and the timing and phasing of development as described in the Development Plan, which is defined in Paragraph 2.4 of this Agree- ment, in exchange for OWner's entering into this Agree- ment and for its commitment not to challenge the Annex- ation described below. 1.3.3.4 To permit achievement of city growth management goals and objectives. 1.3.3.5 To allow City to realize significant economic, recreational, park, open space, social, and public facilities benefits for the city, some of which are of regional significance. 1.3.3.6 To provide and assure that the City receive sales tax revenues, increase in the property tax base, residential housing and other development, sewer, water and street facilities. 1.3.3.7 This Agreement will provide and assure that the city receives public facilities in excess of project generated impacts and such facilities shall be of supplemental size, number capacity or length, which shall be provided earlier than could be provided either by funds from the City or than would strictly be necessary to mitigate project related impacts at any development phase. 1. 3.3.8 To enable the City tQ secure title to the land within the boundaries of the Property necessary to complete the Chula vista greenbelt system and the Otay Ranch Open Space Preserve as both are defined in the Chula vista General Plan. 1.3.3.9 Because of the complexities of the financing of the infrastructure, park, open space, and other dedications, and regional and community facilities, and the significant nature of such facilities, certainty in the development process is an absolute necessity. The phasing, timing, and development of public infrastructure necessitate a significant commitment of resources, planning, and effort by Owner for the public facilities financing, construction, and dedication to be success- fully completed. In return for Owner's participation and commitment to these significant contributions of private resources for public purposes and for Owner's agreement not to challenge the Annexation described below, city is willing to exercise its authority to enter into this Agreement and to make a commitment of certainty for the development process for the property. -2- 1.3.3.10 In consideration of Owner's agreement to provide the significant benefits and for Owner's agreement not to challenge the Annexation described below, city hereby grants Owner assurances that it can proceed with development of the Property in accordance with city's ordinances, rules, regulations, and policies existing as of the effective date of this Agreement subject to section 5.2.1 below. owner would not enter into this Agreement or agree to provide the public benefits and improvements described in this Agreement if it were not for the commitment of City that the Property subject to this Agreement can be developed in accordance with city's ordinances, rules, regulations, and policies existing as of the effective date of this Agreement subject to Section 5.2.1 below. 1.4 The Annexation. On July 1, 1996, the Local Agency Formation Commission ("LAFCO") approved annexation of Sphere of Influence Planning Area 1 "The otay Parcel" I Planning Area 2 "Inverted L" and the Mary Patrick Estate Parcel (see Attachment "B"). 1.5 Schere of Influence. On February 5, 1996 and July 1, 1996 the Local Agency Formation commission approved the inclusion of Planning Area 1, "The otay Parcel", into the City Sphere of Influence (Sphere of Influence Planning Area 1 "The Otay Parcel", Planning Area 2 "Inverted L" and the Mary Patrick Estate Parcel - see Attachment "B"). 1.6 Plannina Documents. On October 28, 1993, City and County adopted the Otay Ranch General Development Plan/Subregional Plan ("the GDP") which includes the Otay Ranch Village Phasing Plan, Facility Implementation Plan, Resource Management Plan and Service Revenue Plan, for approximately 23,000 acres of the otay Ranch, including the Otay Valley Parcel and the Property. 1.7 citv Ordinance. adoption by the city council of Ordinance No. Agreement. , 1996 is the date of 2690 approving this 2. DEFINITIONS. otherwise requires: 2.1 "Annexation" means the proposed annexation of that portion of the otay Ranch which is to be annexed into the City as depicted on Exhibit "B". In this Agreement, unless the context 2.2 "City" means the City of Chula vista, in the County of San Diego, State of California. 2.3 "County" means the County of San Diego, State of California. 2.4 "Development Plan" means the GDP. -3- 2.5 "GDP" means the General Development Plan/Subregional Plan for the Otay Ranch, described in Paragraph 1.6, above. 2.6 "owner" or "Developer" means the person, persons, or entity having a legal and equitable interest in the Property, or parts thereof, and includes Owner's successors-in-interest. 2.7 "Project" means the physical development of the private and public improvements on the Property as provided for in the Existing Project Approvals and as may be authorized by the city in Future Discretionary Approvals. 2.8 "Property" means the real property described in Paragraph 1.1.1. 2.9 The "Term" of this Agreement means the period defined in Paragraph 3, below. 2.10 "Builder" means developer to whom Developer has sold or conveyed property within the Property for purposes of its improvement for residential, commercial, industrial or other use. 2.11 "CEQA" means the California Environmental Quality Act, California Public Resources Code section 21000, et seq. 2.12 "city Council" means the city of Chula vista City Council. 2.13 "Commit" or "Committed" means all of the following requirements have been met with respect to any public facility: 2.13.1 For a public facility within the city's jurisdictional boundaries and a responsibility of the develop- er. 2.13.1.1 All discretionary permits required of the Developer have been obtained for construction of the public facility; 2.13.1.2 Plans for the construction of the public facility have all the necessary governmental approvals; and 2.13.1.3 Adequate funds (i.e., letters of credit, cash deposits, performance bonds or land secured public financing, including facility benefit assessments, Mello-Roos assessment districts of similar assessment mechanism) are available such that the City can construct the public facility if construction has not commenced within thirty (30) days of issuance of a notice to proceed by the Director of Public Works, or construction is not progressing towards completion in a reasonable manner as reasonably deemed by the Director of Public Works. -4- 2.13.2 For a public facility within the city's jurisdictional boundaries, but to be provided by other than Developer. 2.13 .2.1 Developer's proportionate share of the cost of such public facility as defined in the existing Project Approvals and Future Discretionary Approvals has been provided or assured by Developer through the payment or impositions of development impact fee or other similar exaction mechanism. 2.13.3 For public facility not within city's jurisdictional boundaries: 2.13.3.1 Developer's proportionate share of the cost of such public facility as defined in the existing Project Approvals and Future Discretionary Approvals has been provided for or otherwise assured by Developer to the reasonable satisfaction of the Director of Public Works. 2.14 "Development Impact Fee (DIF)" means fees imposed upon new development pursuant to the city of Chula vista Development Impact Fee Program, for example, including but not limited to the Transportation Development Impact Fee Program, the Interim SR-125 Development Impact Fee Program, the Salt Creek Sewer DIF and the Public Facilities DIF. 2.15 "Existing Project Approvals" means all discretionary approvals affecting the Project which have been approved or established in conjunction with, or preceding, the effective date consisting of, but not limited to the GDP, the Chula vista General Plan, the otay Ranch Reserve Fund Program adopted pursuant to Resolution 18288, and the Phase I and Phase II Resource Management Plan (RMP), as may be amended from time to time consistent with this agreement. 2.16 "Final Map(s)" means any final subdivision map for all or any portion of the Property other than the Superblock Final Map ("A" Maps). 2.17 "Future Discretionary Approvals" means all permits and approvals by the city granted after the effective date and excluding existing Project Approvals, including, but not limited to: (i) grading permits; (ii) site plan reviews; (iii) design guidelines and reviews; (iv) precise plan reviews; (v) subdivisions of the Property or re-subdivisions of the Property previously subdivided pursuant to the Subdivision Map Act; (vi) conditional use permits; (vii) variances; (viii) encroachment permits; (ix) sectional Planning Area plans; (x) Preserve Conveyance Plan and (xi) all other reviews, permits, and approvals of any type which may be required from time to time to authorize public or private on- or off-site facilities which are a part of the Project. -5- 2.18 "planning Commission" means the Planning commission of the City of Chula vista. 2.19 "Preserve Conveyance Plan" means a plan that will, when adopted, set forth policies and identify the schedule for transfer of land and/or fees to be paid to insure the orderly conveyance of the otay Ranch land to the Preserve Owner Manager. The purpose of the plan is to fulfill the obligations to convey resource sensitive land, per the criteria contained in the phase I and II Resource Management Plans and to mitigate environmental impacts of the otay Ranch Project. 2.20 "Public Facility" or "Public Facilities" means those public facilities described in the otay Ranch Facility Implementation Plan. 2.21 "Subdivision Map Act" means the California Subdivision Map Act, Government Code section 66410, et seq., and its amendments as may from time to time be adopted. 2.22 "Substantial Compliance" means that the party charged with the performance of a covenant herein has sufficiently followed the terms of this Agreement so as to carry out the intent of the parties in entering into this Agreement. 2.23 "Threshold" means the facility thresholds set forth in the City's Municipal Code section 19.19.040. 3. nEM. This Agreement shall become effective as a development agreement upon the effective date of the Annexation (the "Effective Date"); provided, however, that if the Annexation does not occur on or before January 1, 1997, this Agreement shall be null and void. Any of the foregoing to the contrary notwith- standing, from the date of first reading of the ordinance approving this Agreement, and unless or until this Agreement becomes null and void, Owner shall be bound by the terms of Paragraph 4. The Term of this Agreement for purposes other than Paragraph 4 shall begin upon the Effective Date, and shall continue for a period of twenty (20) years ("the Term"). The term shall also be extended for any period of time during which issuance of building permits to Developer is suspended for any reason other than the default of Developer, and for a period of time equal to the period of time during which any action by the City or court action limits the processing of future discretionary approvals, issuance of building permits or any other development of the property consistent with this Agreement. 4. OWNER AGREEMENT TO ANNEXATION. challenge any action taken by the city to Parcel into the City. Owner agrees not to annex the otay Valley 5. VESTED RIGHTS. Notwithstanding any future action or inaction of the City during the term of this Agreement, whether such action is by ordinance, resolution or policy of the City, -6- Owner and Developer shall have a vested right, Drovided however the develoDer is not in default of its o~liaations under this Aaree- ~, AnA except as may be otherwise provided in this section 5, to construct the Project in accordance with: 5.1 Existing Project Approvals, subject to the following requests for modifications, if approved by the City: 5.1.1 city shall reasonably consider in its discretion with proper environmental review a request by the owner for any modifications to the land use designations in the General Development Plan for the Property. 5.1.2 City will notice the owner, as required by law, of any actions which involve the formation of assessment districts, development impact fees or other discretionary actions affecting the Property. In addition, City will use its reasonable best efforts to contact the Owner regarding any pending discretionary actions pertaining to the Property as early as possible in the process and involve the Owner in appropriate meetings related thereto. owner acknowledges that City will not be in breach of this Agreement for failure to provide notice to OWner other than notice as required by law. 5.1.3 If the interchange improvements at otay Valley Road and I-80S are needed to serve the Project, the City will hold appropriate hearings to consider an amendment to its Transportation Phasing Plan (TPP) and Development Impact Fee (DIF) Program to include said improvements as may be deemed appropriate by the city to accommodate the project phasing. The city agrees to reasonably cooperate and work with CALTRANS to complete plans for said interchange improve- ment. 5.1. 4 city shall initiate contact and diligently pursue discussions with the county of San Diego and the city of San Diego to determine the number, scheduling and financing of the otay River road and bridge crossings. 5.1.5 city shall allow the owner for purposes of processing entitlements to proceed with planning of the property on a first come first served basis, with other prop- erties in the area of the Annexation. In addition, II reauested bv the aDDlicant if Reeeeeary the City shall, with proper environmental review, consider in its discretion an amendment to the village phasing Plan to facilitate the planning and development of the properties covered by this Agreement. 5.1.6 To the extent any of the foregoing com- mitments of City are embodied in changes to the Development Plan or the rules, regulations, ordinances, resolutions, policies, conditions, environmental regulations, phasing controls, exactions, entitlements, assessments, and fees applicable to and governing development of the Property, -7- whether adopted before or after the Effective Date, such changes shall be deemed applicable to the Property without change to this Agreement. 5.1.7 city shall diligently process any amend- ments, applications, maps, or other development applications. 5.1.8 City may make such modifications or amendments to the Existing Project Approvals/Future Discre- tionary Approvals, as may be ordered by a court of competent jurisdiction. 5.2 DeveloDment of ProDertv. The development of the Property will be governed by this Agreement and Existing project Approvals and such development shall comply and be governed by all rules, regulations, policies, resolutions, ordinances, and standards in effect as of the Effective Date subject to the provisions of Section 5.2.1 below. The City shall retain its discretionary authority as to Future Discretionary Approvals, provided however, such Future Discretionary Approvals shall be regulated by the Existing project Approvals, this Agreement, and city rules, regulations, standards, ordinances, resolutions and policies in effect on the Effective Date of this Agreement and subject to section 5.2.1. Notwithstanding the foregoing, the city may make such changes to the city's Growth Management Ordinance applicable to the Project as are reasonable and consistent with the purpose and intent of the existing Growth Management Ordinance and which are generally applicable to all private projects citywide or east of 1-805 or within a specific benefit, fee or reimbursement district created pursuant to the California Government Code. 5.2.1 New or Amended Rules. Requlations. policies. Standards. Ordinances and Resolutions. The City may apply to the Project, including Future Discretionary Approv- als, new or amended rules, laws, regulations, policies, ordinances, resolutions and standards generally applicable to all private projects east of 1-805 or within a specific benefit fee or reimbursement district created pursuant to the California Government Code. The application of such new rules, or amended laws, regulations, resolutions, policies, ordinances and standards will not unreasonably prevent or unreasonablv delay development of the Property to the uses, densities or intensities of development specified herein or as authorized by the Existing Project Approvals. The city may also apply changes in City laws, regulations, ordinances, standards or policies specifically mandated by changes in state or federal law in compliance with section 13.3 herein. 5.2.2 Developer may elect with city's consent, to have applied to the project any rules, regulations, policies, ordinances or standards enacted after the date of th\s Agreement. Such an election has to be made in a manner consistent with section 5.2 of this Agreement. -8- 5.2.3 Modifications to Existina Proiect ADDrovals. It is contemplated by the parties to this Agreement that the City and Developer may mutually seek and agree to modifications to the Existing project Approvals. Such modifications are contemplated as within the scope of this Agreement, and shall, upon written acceptance by all parties, constitute for all purposes an Existing Project Approval. The parties agree that any such modifications may not constitute an amendment to this Agreement nor require an amendment to the Agreement. 5.2.4 Future Discretionarv ADDrovals. It is contemplated by the parties to this Agreement that the City and Developer may agree to Future Discretionary Approvals. The parties agree that any such Future Approvals may not consti- tute an amendment to this Agreement nor require an amendment to the Agreement. 5.3 Dedication and Reservation of Land for Public PurDoses. Except as expressly required by this Agreement or the Existing Project Approvals and Future Discretionary Approvals and excepting dedications required within the boundaries of any parcel created by the subsequent subdivision of the Property as required by the Subdivision Map Act, no dedication or reservation of real property within or outside the Property shall be required by city or Developer in conjunction with the Project. Any dedications and reservations of land imposed shall be in accordance with section 7.2 and section 7.8 herein. city acknowledges that Developer will not be required to dedicate land for the sole purpose of satisfying an obligation of Otay Ranch, L.P., a California limited partnership, Tiger Development Two, a California limited partnership, Tigerheart, Inc., a California corporation or its general partner, Village Development, a California general partnership, or their successor(s) interest hut DeveloDer understands that DeveloDer shall be reauired to satisfY its obliaations as reauired bv Existina and Future Discretionarv ADDrovals. 5.4 Time for Construction and ComDletion of Proiect. Because the California Supreme Court held in Pardee Construction ComDanv v. citv of Camarillo (1984) 27 Cal.3d 465, that the failure of the parties to provide for the timing of development resulted in a later-adopted initiative restricting the timing of development to prevail over such parties' Agreement, it is the intention of the parties to this Agreement to cure that deficiency by specifically acknowledging that timing and phasing of development is completely and exclusively governed by the Existing Project Approvals, including the Chula vista Growth Management Ordinance. The purpose of the Chula vista Growth Management Ordinance is to "control the timing and location of development by tying the pace of development to the provision of public facilities and improvements to conform to the City's threshold standards." (Municipal Code Section 19.09.010A.7) The findings in support of the Growth Management Ordinance conclude that the ordinance "does riot affect the number -9- of houses which may be built." (Municipal Code Section 19.09.0108.3) Therefore, the parties acknowledge that the Chula vista Growth Management Ordinance completely occupies the topic of development timing and phasing and expressly precludes the adoption of housing caps, urban reserves or any other means by which the rate of development may be controlled or regulated. The City agrees that the Developer shall be entitled to, apply for and receive all permits necessary for the development of property, consistent with the Growth Management ordinance, Existing Project Approvals, Future Discretionary Approvals and this Agreement. 5.5 Benefit of vestina. Nothing in this Agreement will be construed as limiting or impairing Developer's vested right, if any, to proceed with the development and use of the Property pursuant to the Federal and state Constitutions, and pursuant to statutory and decisional law. 5.6 Vestina of Entitlements. All rights conferred by this Agreement vest with the Effective Date hereof. The approval of Future Discretionary approvals shall not be deemed to limit Developer's rights authorized by this Agreement, and once such approvals are obtained they shall be vested to the same extent as the Existing project Approvals provided DeveloDer is not in default of its obliaations under this Aareement. 6. DEVELOPMENT PROGRAM. 6.1 processina of Future Discretionarv ADDrovals. City will accept and diligently process development applications and requests for Future Discretionary Approvals, or other entitlements with respect to the development and use of the Property, provided said applications and requests are in accordance with this Agreement. city costs for processing work related to the Project, including hiring of additional City personnel and/or the retaining of professional consultants, will be reimbursed to City by Developer. 6.2 Lenath of Validitv of Tentative Subdivision MaDS. Government Code section 66452.6 provides that tentative subdivision map(s) may remain valid for a length up to the term of a Develop- ment Agreement. The City agrees that tentative subdivision map(s) for the property shall be for a term of six (6) years and may be extended by the city council for a period of time not to exceed a total of twenty (20) years and in no event beyond the term of this Agreement. 6.3 Pre-Final MaD DeveloDment. If Developer desires to do certain work on the Property after approval of a tentative map (for example, grading) prior to the recordation of a final map, it may do so by obtaining a grading and/or other required approvals from the City which are authorized by the city prior to recordation of a final map. ~~e Deermit mav be aDDroved or denied bv the citv in accordance wi th citv's MuniciDal Code. reaulations and policies and Drovided DeveloDer is in comDliance with this A~~ee;ent and with the terms of all Existina and Future Discretion- -10- ary ADDrovals. In addition. the DeveloDer shall be reauired to post a bond or other reasonably adequate security required by City in an amount determined bv the city to assure the rehabilitation of the land if the applicable final map does not record. 6.4 Final MaDS. 6.4.1 "A" MaDS and "B" MaDS. If Developer so elects, the City shall accept and process a master subdivision or parcel map ("A" Map) showing "Super Block" lots and backbone street dedications. "super Block" lots shall be consistent with the GDP and subsequent sectional Plan Area plans, and shall not subdivide land into individual single- family lots. All "Super Blocks" created shall have access to dedicated public streets. The City shall not require improve- ment plans in order to record a final map for any "A" Map lots, but the City shall require bonding for the completion of backbone facilities prior to recording in an amount to be determined by the city. Following the approval by city of any final map for an "A" Map lot and its recordation, Developer may convey the "Super Block" lot. The buyer of a "Super Block" lot ~ saall then process final improvement plans and grading plans and a final map ("B" Map) for each "Super Block" lot which the City shall process if such documents are in comDliance with the city's MuniciDal Code. standard Dolicies. and the aDDlicable tentative maD. The "B" Maps shall be in substantial conformance with the related approved "A" Map. In the instance of the multi-family dwelling unit areas, a separate tentative subdivision map may be submitted to the City and the "B" Map(s) for these areas may be submitted to the City after the city planning Commission approves said tentative subdivision map. 6.4.2 Recordation of Final Subdivision MaD in Name of Builder or Third Party. Developer may, if it so elects, convey to a Builder or third party any "super block" lot(s) shown on the recorded Superblock Final Map. In such case, the Builder or third party will (i) process any neces- sary final improvement and grading plans and a final map for each such "super block" lot ("B" maD), which map City shall accept and process if such maD is in comDliance with the city's MuniciDal Code. standard Dolicies. and the aDDlicable tentative maD. as subsequent phases in a multi-phase project, (ii) enter into a subdivision improvement agreement with city with respect to the sUbdivision improvements which are required for such super block lot, and (iii) provide security and insurance satisfactory to City for the completion of the subdivision improvements. 6.4.3 Recordation of Final Subdivision MaD in DeveloDer's Name: Transfer of Obliaations Under Subdivision ImDrovement Aareement(s) . If Developer so elects, it may defer the conveyance of any super block lot to a Builder or third party until after the final map of such super block lot has been recorded. If Deve~oper elects to proceed in this -11- manner, it will enter into city's standard subdivision improvement aqreement(s) with City for the improvements required as a condition to the approval of such map(s). Upon sale to a Builder or third party, if such Builder or third party assumes Developer's obligations under the improvement aqreement and provides its own security and insurance for the completion of the subdivision improvements satisfactory to the city and as approved by the city, Developer shall be released from liability under the subdivision improvement agreement(s) and Developer's security shall be released. 6.4.4 Transfer of Riahts and Obliaations of DeveloDment. Whenever Developer conveys a portion of the Property, the riqhts and obliqations of this Aqreement shall transfer in accordance with section 15 herein. 7. DEVELOPER'S OBLIGATIONS. 7.1 condition to DeveloDer' s Obliaations to Dedicate. Fund or Construct Public Facilities. Developer aqrees to develop or provide the public improvements, facilities, dedications, or reservations of land and satisfy other exactions conditioninq the development of the Property which are set forth hereinbelow and bv the Existina and Future Discretionarv Accrovals. The obliqations of the Developer pursuant to this Aqreement are conditioned upon: (i) the city not beinq in default of its obliqations under this aqreement; and (ii) the city not unreasonablv preventinq or unreasonably delaying the development of the property; and (iii) ~fte ~greemeR~ kaviftg Ret ~eeR aaspeRsed ift respeRse ~e ekaRgea iR B~a~e SF federal la~, aRd (iv) ~Be Gi~y's e81i~a~iefta fta~iR' Re~ ~eeft B~Bpeftaea p~rB~aft~ ~B See~ieft 13.2. If the Aareement has been susDended in resconse to chanaes in state or federal law or due to the City's obliaations beina suscended cursuant to section 13.2. said obliaations of Develocer shall be suscended for the same ceriod of time. 7.2 Dedications and Reservations of Land for Publicpurcoses. The policies by which property will be required to be reserved, dedicated or improved for public purposes are identified in the Existinq Project Approvals. A more precise delineation of the property to be preserved, dedicated or improved for public purposes shall occur as part of Future Discretionary Approvals consistent with develoD.ent of DroDertv as set forth in section 5.2 herein. ~e EJlis~ift9 Pr8jee~ Apprevals. 7.3 Growth Manaaement Ordinance. Developer shall commit the public facilities and City shall issue buildinq permits as provided in this section and in accordance with Bxistina proiect ADDrovals and Future Discretionarv ADDrovals. The City shall have the riqht to withhold the issuance of building permits any time after the City reasonably determines a Threshold has been exceeded, unless and until the Developer has mitiqated the deficiency in accordance with the City's Growth Management Ordinance. -12- Developer agrees that building permits may be withheld where the public facilities described in the Existing Project Approvals/ Future Discretionary Approvals required for a particular Threshold have not been committed. In the event a Threshold is not met and future building permit issuance may be withheld, the notice provisions and procedures contained in Section 19.09 .100C of the Municipal Code will be followed. In the event the issuance of building permits is suspended pursuant to the provisions herein, such suspension shall not constitute a breach of the terms of this Agreement by Developer or City. Furthermore, any such suspension which is not caused by the actions or omissions of the Developer, shall toll the term of this Agreement as provided for in section 16.12 of this Agreement, and suspend the Developer's obligations pursuant to this Agreement. 7.3.1 Reauired condemnation. The city and Developer recognize that certain portions of the Resource 9peft Epaee Preserve and of the public facilities identified in the Existing Project Approvals/Future Discretionary Approvals are required to comply with City requirements and are located on properties which neither the Developer nor the City has, or will have, title to or control of. with respect to such land for public facilities, the city shall identify such property or properties and at the time of filing of the final map commence timely negotiations or, where the property is within the city's jurisdiction, commence timely proceedings pursuant to Title 7 (commencing with S 1230.010) of Part 3 of the Code of Civil Procedure to acquire an interest in the property or properties. Developer's share of the cost involved in any such acquisition shall be based on its proportionate share of the public facility as defined in the Existing Project Approvals/Future Discretionary Approvals. Notwithstandina the foreaoina. nothing in this Agreement shall be deemed to preclude the city from requiring the Developer to pay the cost of acquiring such off-site land. For that portion of the cost beyond the Developer's fair share responsibility of the land needed for public facilities, the City shall take all reason- able steps to establish a procedure whereby the developer is reimbursed for such costs beyond its fair share. 7.3.2 Information Reaardina Thresholds. Upon Developer's written request of the city Manager, the City will provide Developer with information regarding the current status of a Threshold. Developer shall be responsible for any staff costs incurred in providing said written response. 7.4 Imnrovements Reauired bv a Tentative Subdivision Man. As may be required pursuant to the terms of a tentative subdivision map aDDroval, it shall be the responsibility of Developer to construct the improvements required by ll!. a subdivision map. Where Developer is required to construct a public improvement which has been identified as the responsibility of another party or to provide public improvements of supplemental size, capacity, number or length benefiting property not within the tentative sUbdivision -13- ~, city shall process for consideration to _DDrove or deny in its .01e discretion a reimbursement agreement ~ ~ the Developer in accordance with the citv'. MuniciDal Code and Article 6 of Chapter 4 of the Subdivision Map Act, commencing with Government Code section 66485, and Section 7.5, below. This does not oreclude the DeveloDer or the citv from considerina alternative financina mechanisms. 7.5 ~ac~~~ties Which Are the Obliaations of Another Partv. or Are f ;;;iv~ si~e: caoacitv. Lenath or Number. Developer may offer to advance monies and/or construct public improvements which are the responsibility of another land owner, or outside the city's jurisdictional boundaries, or which are of supplemental size, capacity, number or length for the benefit of land not within the Property. city, where requesting such funding or construction of oversized public improvements, shall consider after a public hearing, contemporaneous with the imposition of the obligation, the formation of a reimbursement district, assessment district, facility benefit assessment, or reimbursement agreement or other reimbursement mechanism. 7.6 Pioneerina of Facilities. To the extent Developer itself constructs (Le., "pioneers") any public facilities or public improvements which are covered by a DIF Program, Developer shall be given a credit against DIFs otherwise payable, subject to the city's Director of Public Works reasonable determination that such costs are allowable under the applicable DIF Program. It is specifically intended that Developer be given DIF credit for the DIF Program improvements it makes. The fact that such improvements may be financed by an assessment district or other financing mechanism, shall not prevent DIF credit from being given to the extent that such costs are allowed under the' applicable DIF Program. Notwithstanding the foregoing, if an assessment district is used to finance said improvements and the developer has been paid back its costs, DIF credit shall be given to those property owners assessed for said improvements. 7.7 Insurance. Developer shall name City as additional insured for all insurance policies obtained by Developer for the Project as pertains to the Developer's activities and operation on the project. 7.8 other Land owners. Developer hereby agrees to dedicate adequate rights-of-way within the boundaries of the property for other land owners to "pioneer" public facilities on the property; provided, however, as follows: (i) dedications shall be restricted to those reasonably necessary for the construction of facilities identified in the city's adopted public facility plans; (ii) this provision shall not be binding on the successors-in- interest or assignees of Developer following recordation of the final "super Block" or "A" Map; and (iii) the City shall use its reasonable best efforts to obtain agreements similar to this subsection from other developers and to obtain equitable reimburse- ment for Developer for any excess dedications. -14- ~.~ ~.suranee or CO.Dlianee. owner aeknowledae. that :: Ci:v ~; t: -i~fi~ed :: ::: will not take anv action on anv or ar': .~~~c~v s or t Discretionarv ADDrovals under this :~:::.:t~ ;;, _~ ::~~f~:::~f: :2: amendment. thereof. until and ~I:s ~ ~:::- - - e that the owner is not in default :f th:; i i ;;';e; th1; Aa~e_ent ineludina ))ut not limited o s set forth in section 7.10 and 14. 7 . ~ ComDlete construction. DeveloDer aarees to d~l~aen~~: ~~~~let~ ~i~s~ru~ti~~ ~~ce a bui~dina Dermit has been ~ss;e~ ;~ ....;.uuer~ -the.. is v ed bv th1s Aareement. Should ~7~~~o~~i~~ t~~D ~t~e ~uf =~I~ffni Dermi~s have been issued bv the 1~ ~~':" ~u~ ~~~ 1. _t_ iscret10n determines has created a ~~isance o~ ~~~; ;~ ~a;e~~:;z~d. t~e develoDer aarees to take ~ucn ~eDs 1e....~a~. t_ __r t e nU1sanee or hazard. Should ~evelo~er ;~~~ ~i do so t~ ~hse city's satisfacti~n. the city maY ake w at est deems ec sarv to cure the nU1sance or hazard ~t develoDer's sole cost and eXDense. 8. DEVELOPMENT IMPACT FEES. 8.1 Existina DeveloDment ImDact Fee proaram PaYments. Developer shall pay to the city a DIF, or construct improvements in lieu of payment, for DIF improvements which are conditions of a tentative subdivision map upon the issuance of building permits(s), or at a later time as specified by city ordinance, the subdivision Map Act, or Public Facility Financing Plan (PFFP). The DIF will be in the amount in effect at the time payment is made and may only be increased pursuant to section 8.6 herein. 8.2 Other UndeveloDed ProDerties. The city will use its reasonable best efforts to impose and collect, or cause the imposition and collection of, the same DIF program on all the undeveloped real properties which benefit from the provision of the public facility through the DIF program, or provided as a condition of project Approvals. 8.3 Use of DeveloDment ImDact Fee Proaram. The DIF amounts paid to the city by Developer and others with respect to the Area of Benefit shall be placed by the City in a capital facility fund account established pursuant to California Government Code sections 66000-66009. The city shall expend such funds only for the Projects described in the adopted fee program as may be modified from time to time. The city will use its reasonable best efforts to cause such projects to be completed as soon as practica- ble; however, the city shall not be obligated to use its general funds for such Projects. 8.4 Withholdina of Permits. Developer agrees that city shall have the right to withhold issuance of the building permit for any structure or improvement on the Property unless and until the DIF is paid for such structure or improvement. -15- 8.5 DeveloDment ImDact Fee Credit. Upon the completion and acceptance by the city of any public facility, the city shall immediately credit Developer with the appropriate amount of cash credits ("EDUstl) as determined by Developer and city. However, if the improvements are paid for through an Assessment District, the city shall credit the Developer with the appropriate number of Equivalent Dwelling unit Credits (EDUs). Developer shall be entitled to apply any and all credits accrued pursuant to this subsection toward the required payment of future DIF for any phase, stage or increment of development of the Project. 8.6 Modification of DevelODment ImDact Fees. The parties recognize that from time to time during the duration of the Agreement it will be necessary for the city to update and modify its DIF fees. Such reasonable modifications are contemplated by the city and the Developer and shall not constitute a modification to the Agreement so long as: (i) the modification incorporates the reasonable costs of providing facilities identified in the Existing or Future Project Approvals; (ii) are based upon methodologies in substantial compliance with the methodology contained in the existing DIF programs; or other methodology approved by the city council following a public hearing; (iii) complies with the provisions of Government Code sections 66000-66009. 8.7 standards for Financina Obliaations of Owner. In connection with the development of the property, the following standards regarding the financing of public improvements shall apply: 8.7.1 OWner shall pay its fair share for the interchanges descr ibed in Paragraph 5. 1. 3 , based upon the number of dwelling units or equivalent dwellings of develop- ment allowed on the Property as compared to the total dwelling units or equivalent dwelling units allowed on properties served by such interchanges. 8.7.2 Owner shall participate in the DIF Program for the otay Valley Parcel with other owners in proportion to the total dwelling units or equivalent dwelling units allowed on the property as compared with the total of such units allowed on properties in that particular DIF or by some other equitable methodology decided by the city Council. 8.7.3 The city shall diligently pursue the requirements that the Eastern Territories' DIF requires offsite third parties and adjacent jurisdictions to bear their fair share of all otay River Valley crossings. 9. CITY OBLIGATIONS. 9.1 Urban Infrastructure. To the extent it is within the authority and ability of the city to provide, City shall accommodate urban infrastructure to the project, consistent with Existing Project Approvals. Where it is necessary to utilize city property to provide urban infrastructure consistent with the -16- Existing Project Approvals, the city agrees to make such land available for such uses, provided that the City if it so chooses is compensated at fair market value for the property. To the extent that the provision of urban infrastructure is within the authority of another public or quasi-public agency or utility, the City agrees to fully cooperate with such agency or agencies to accommo- date the urban infrastructure, consistent with Existing Project Approvals. Urban infrastructure shall include, but not be limited to gas, electricity, telephone, cable and facilities identified in the otay Ranch Facility Implementation Plan. 9.2 Sewer CaDaci tv. The City agrees to provide adequate sewer capacity for the project, upon the payment of ordinary and necessary sewer connection, capacity and/or service fees. 10. ANNUAL REVIEW. 10.1 citv and OWner ResDonsibilities. City will, at least every twelve (12) months during the Term of this Agreement, pursuant to California Government Code 565865.1, review the extent of good faith substantial compliance by Owner with the terms of this Agreement. Pursuant to California Government Code section 65865.1, as amended, OWner shall have the duty to demonstrate by substantial evidence its good faith compliance with the terms of this Agreement at the periodic review. Either city or Owner may address any requirement of the Agreement during the review. 10.2 Evidence. The parties recognize that this Agreement and the documents incorporated herein could be deemed to contain hundreds of requirements and that evidence of each and every requirement would be a wasteful exercise of the parties' resources. Accordingly, Developer shall be deemed to have satisfied its good faith compliance when it presents evidence of substantial com- pliance with the major provisions of this Agreement. Generalized evidence or statements shall be accepted in the absence of any evidence that such evidence is untrue. 10.3 Review Letter. If OWner is found to be in com- pliance with this Agreement after the annual review, City shall, within forty-five (45) days after OWner's written request, issue a review letter in recordable form to OWner ("Letter") stating that based upon information known or made known to the council, the city Planning Commission and/or the City Planning Director, this Agreement remains in effect and OWner is not in default. OWner may record the Letter in the Official Records of the County of San Diego. 10.4 Failure of Periodic Review. City's failure to review at least annually OWner's compliance with the terms and conditions of this Agreement shall not constitute, or be asserted by City or OWner as, a breach of the Agreement. 11. DEFAULT. -17- 11.1 Events of Default. A default under this Agreement shall be deemed to have occurred upon the happening of one or more of the following events or conditions: 11.1.1 A warranty, representation or statement made or furnished by owner to city is false or proves to have been false in any material respect when it was made. 11.1.2 A finding and determination by city made following a periodic review under the procedure provided for in California Government Code section 65865.1 that upon the basis of substantial evidence owner has not complied in good faith with one or more of the terms or conditions of this Agreement. 11.1.3 city does not accept, timely review, or consider requested development permits or entitlements subaitted in accordance with the provisions of this Agreement. 11.1. 4 All e~!\er remedies at law or in equity which are consistent with the provisions of this Agreement are available to City and Owner to pursue in the event there is a breach provided, however, neither party shall have the remedy of aonetary damages against the other except for an award of litigation costs and attorneys fees. 11.2 Procedure UDon Default. 11. 2.1 upon the occurrence of default by the other party, city or Owner may terminate this Agreement after providing the other party thirty (30) days written notice specifying the nature of the alleged default and, when appropriate, the manner in which said default may be satis- factorily cured. After proper notice and expiration of said thirty (30) day cure period without cure, this Agreement may be terminated. In the event that city's or owner's default is not subject to cure within the thirty (30) day period, city or Owner shall be deemed not to remain in default in the event that city or owner commences to cure within such thirty (30) day period and diligently prosecutes such cure to completion. Failure or delay in giving notice of any default shall not constitute a waiver of any default, nor shall it change the ti.e of default. Notwithstanding any other provision of this Agreement, city reserves the right to formulate and propose to owner options for curing any defaults under this Agreement for which a cure is not specified in this Agreement. 11.2.2 city does not waive any claim of defect in performance by owner if, on periodic review, City does not propose to modify or terminate this Agreement. 11.2.3 subject to Paragraph 16.12 of this Agreement, the failure of a third person shall not excuse a party's nonperformance under this agreement. -18- 11.2.4 Remedies Upon Default. In the event of a default by either party to this Agreement, the parties shall have the remedies of specific performance, mandamus, injunc- tion and other equitable remedies. Neither party shall have the remedy of monetary damages against the other; provided, however, that the award of costs of litigation and attorneys' fees shall not constitute damages based upon a breach of this Agreement where such an award is limited to (i) the costs of litigation incurred by the City, and (ii) the "fee" equivalent of City's costs for the services attributable to litigation and representation by the City Attorney, including assistants and staff. 12. ENCUMBRANCES AND RELEASES ON PROPERTY. 12.1 Discretion to Encumber. This Agreement shall not prevent or limit Owner in any manner at OWner's sole discretion, from encumbering the Property, or any portion of the Property, or any improvement on the Property, by any mortgage, deed of trust, or other security device securing financing with respect to the Property or its improvement. 12.2 Mortaaaee Riahts and Obliaations. The mortgagee of a mortgage or beneficiary of a deed of trust encumbering the Property, or any part thereof, and their successors and assigns shall, upon written request to city, be entitled to receive from City written notification of any default by Owner of the performance of Owner's obligations under the Agreement which has not been cured within thirty (30) days following the date of default. 12.3 Releases. City agrees that upon written request of Owner and payment of all fees and performance of the require- ments and conditions required of OWner by this Agreement with respect to the Property, or any portion thereof, City may execute and deliver to Owner appropriate release(s) of further obligations imposed by this Agreement in form and substance acceptable to the San Diego County Recorder and title insurance company, if any, or as may otherwise be necessary to effect the release. City Manager shall not unreasonably withhold approval of such release(s). 12.4 Obliaation to Modifv. City acknowledges that the lenders providing financing for the Project may require certain modifications to this Agreement and City agrees, upon request from time to time, to meet with Owner and/or representatives of such lenders to negotiate in good faith any such requirement for modification. City will not unreasonably withhold its consent to any such requested modification. 13. MODIFICATION OR SUSPENSION. 13.1 Modification to Aareement bv Mutual Consent. This Agreement may be modified, from time to time, by the mutual consent of the parties only in the same manner as its adoption by an -19- ordinance as set forth in California Government Code sections 65867, 65867.5 and 65868. The term, "this Agreement" as used in this Agreement, will include any such modification properly approved and executed. 13.2 Unforeseen Health or Safetv Circumstances. If, as a result of facts, events, or circumstances presently unknown, unforeseeable, and which could not have been known to the parties prior to the commencement of this Agreement, city finds that failure to suspend this Agreement would plaee ~he ~e8ideft~8 af Gi~y 1ft a severe aRa i..e.ia~e e.e~geRa} _8 ~keir have an imDact on the immediate health or safety of the citv's residents or the city. The followina shall occur: 13.2.1 Notification of Unforeseen circumstances. Notify Developer of (i) city's determination; and (ii) the reasons for City's determination, and all facts upon which such reasons are based; 13.2.2 Notice of Hearinq. Notify Developer in writing at least fourteen (14) days prior to the date, of the date, time and place of the hearing and forward to Developer a minimum of ten (10) days prior to the hearings described in section 13.2.3, all documents related to such determination and reasons therefor; and 13.2.3 Hearinq. Hold a hearing on the deter- aination, at which hearing Developer will have the right to address the City Council. At the conclusion of said hearing, city may take action to suspend this Agreement as provided herein. The City may suspend this Agreement if, at the conclusion of said hearing, based upon the evidence presented by the parties, the City finds failure to suspend would plaee ~e resideftta sf ~fte Ci~y 1ft a severe afta i..edia~e emer~eftey ~e ~heir heal~h a~ 8afe~y. have an imDact on the immediate health or safety of the city's residents or the city. 13.3 Chanqe in state or Federal Law or Requlations. If any state or federal law or regulation enacted during the Term of this Agreement, or the action or inaction of any other affected governmental jurisdiction, precludes compliance with one or more provisions of this Agreement, or requires changes in plans, maps, or permits approved by City, the parties will act pursuant to Sections 13.3.1 and 13.3.2, below. 13.3.1 Notice: Meetinq. The party first becoming aware of such enactment or action or inaction will provide the other party(ies) with written notice of such state or federal law or regulation and provide a copy of such law or regulation and a statement regarding its conflict with the provisions of this Agreement. The parties will promptly meet and confer in a good faith and reasonable attempt to modify or suspend this Agreement to comply with such federal or state law or regula- tion. -20- 13.3.2 Hearina. If an agreed upon modification or suspension would not require an amendment to this Agree- ment, no hearing shall be held. otherwise, the matter of such federal or state law or regulation will be scheduled for hearing before the city. Fifteen (15) days' written notice of such hearing shall be provided to Developer, and the city, at such hearing, will determine and issue findings on the modification or suspension which is required by such federal or state law or regulation. Developer, at the hearing, shall have the right to offer testimony and other evidence. If the parties fail to agree after said hearing, the matter may be submitted to mediation pursuant to subsection 13.3.3, below. Any modification or suspension shall be taken by the affirma- tive vote of not less than a majority of the authorized voting members of the city. Any suspension or modification may be subject to judicial review in conformance with subsection 16.19 of this Agreement. 13.3.3 Mediation of DisDutes. In the event the dispute between the parties with respect to the provisions of this paragraph has not been resolved to the satisfaction of both parties following the City hearing required by subsection 13.3.2, the matter shall be submitted to mediation prior to the filing of any legal action by any party. The mediation will be conducted by the San Diego Mediation Center; if San Diego Mediation Center is unable to conduct the mediation, the parties shall submit the dispute for mediation to the Judicial Arbitration and Mediation Service or similar organization and make a good faith effort to resolve the dispute. The cost of any such mediation shall be divided equally between the Developer and city. 13.4 Natural Communities Conservation Act (NCCP). The parties recognize that Developer and the City are individually negotiating agreements with the United States Fish and wildlife Service ("USF&W") and the California Department of Fish and Game pursuant to the ongoing regional effort to implement the Natural Communities conservation Act ("NCCP"), locally proposed to be implemented through the Multi-Species Conservation Program ("MSCP"). The parties further recognize that implementation of the agreements may necessitate modification to the Existing Project Approvals. The parties agree to utilize their best efforts to implement these agreements, once executed, through the timely processing of modifications to the Existing Project Approvals as they relate to the Property. The Developer agrees to pay the reasonable City cost for processing work related to the modifica- tions. Once such modifications are obtained they shall be vested to the same extent as Existing Project Approvals. 14. DISTRICTS. PUBLIC FINANCING MECHANISMS. This Agreement and the Existing Project Approvals recognize that assessment districts, community facility districts, or other public financing mechanisms, may be necessary to finance the cost of public improvements borne by this Project. If Developer, -21- pursuant to the Existing Project Approvals/Future Discretionary Approvals, is required bY the city to install improvements through the use of assessment districts, BB..~fti~y faeili~y die~pie~e, or other public financing mechanisms, the City shall initiate and take final action to aDDrOy. or d.ny eeftel~de appropriate proceedings for the formation of such financing district or funding mechanism, under applicable lawsL eP ordinances. or DOlici... Developer may request that the city. but the city i. not obliaat.d to. utilize any other financing methods which may become available under City laws or ordinances. All costs associated with the consideration and formation of such financing districts or funding mechanisms shall be paid by Developer subject to reimbursement, as may be legally authorized out of the proceeds of any financing district or funding mechanism. DeveloDer shall comDlv with the terms of any assessment districts or other financina mechanisms so aDDroved by the city for PrODertv covered bv this Aareement and shall make timelY Davments as reauired bv said financina mechanism. The city retains its riahts to take any actions leaallv authorized as it deems aDDroDriate to auarantee Davment. 15. ASSIGNMENT AND DELEGATION. 15.1 Assianment. Owner shall have the right to transfer or assign its interest in the Property, in whole or in part, to any persons, partnership, joint venture, firm, or corpora- tion at any time during the Term of this Agreement without the consent of City. Owner also shall have the right to assign or transfer all or any portion of its interest or rights under this Agreement to third parties acquiring an interest or estate in the Property at any time during the Term of this Agreement without the consent of City. 15.2 Deleaation/Release. In addition, Owner shall have the right to delegate or transfer its obligations under this Agreement to third parties acquiring an interest or estate in the Property after receiving the prior written consent of the ci ty Manager, which consent shall not be unreasonably withheld ~ delayed or conditioned. Provided. however. the city may deny such deleaation and release if the city determines that the Derformance of such obliaation would be ieoDardized bY such transfer. Once the City Manager has consented to a transfer, delivery to and acceptance by the City Manager of an unqualified written assumption of Owner's obligations under this Agreement by such transferee shall relieve Owner of the obligations under this Agreement to the extent the obligations have been expressly assumed by the transferee and as aDDroved bV the city. Such transferee shall not be entitled to amend this Agreement without the written consent of the entity that, as of the Effective Date, is Owner, which consent shall not be unreasonably withheld, delayed, or conditioned. The entity that is Owner as of the Effective Date, however, shall be entitled to amend this Agreement without the written consent of such transferee. 16. MISCELLANEOUS ~ROVISIONS. -22- 16.1 Bindina Effect of Aareement. Except to the extent otherwise provided in this Agreement, the burdens of this Agreement bind, and the benefits of this Agreement inure, to city's and Owner's successors-in-interest and shall run with the land. 16.2 Relationship of citv and OWner. The contractual relationship between city and Owner arising out of this Agreement is one of independent contractor and not agency. This Agreement does not create any third-party beneficiary rights. 16.3 Notices. All notices, demands, and correspondence required or permitted by this Agreement shall be in writing and delivered in person, or mailed by first-class or certified mail, postage prepaid, addressed as follows: If to City, to: City of Chula vista 276 Fourth Avenue Chula Vista, CA 91910 Attention: city Manager If to Owner, to: Attention: Mr. Jim Johnson Baldwin Builders 16811 Hale Avenue Irvine, CA 92606 City or Owner may change its address by giving notice in writing to the other. Thereafter, notices, demands, and correspondence shall be addressed and transmitted to the new address. Notice shall be deemed given upon personal delivery, or, if mailed, two (2) business days following deposit in the united states mail. 16.4 Rules of construction. In this Agreement, the use of the singular includes the plural; the masculine gender includes the feminine; "shall" is mandatory; "may" is permissive. 16.5 Entire Aareement. Waivers. and Recorded statement. This Agreement constitutes the entire understanding and agreement of city and OWner with respect to the matters set forth in this Agreement. This Agreement supersedes all negotiations or previous agreements between City and OWner respecting this Agreement. All waivers of the provisions of this Agreement must be in writing and signed by the appropriate authorities of city and OWner. Upon the completion of performance of this Agreement, or its revocation or termination, a statement evidencing completion, revocation, or termination signed by the appropriate agents of city shall be recorded in the Official Records of San Diego county, california. 16.6 proiect as a Private Undertakina. It is specifically understood by City and Owner that (i) the Project is a private development; (H) city has no interest in or responsibilities for or duty to third parties concerning any improvements to the property until City accepts the improvements pursuant to the provisions of the Agreement or in connection with subdivision map approvals; and {Hi) OWner shall have the full -23- power and exclusive control of the Property subject to the obligations of Owner set forth in this Agreement. 16.7 IncorDoration of Recitals. The recitals set forth in Paragraph 1 of this Agreement are part of this Agreement. 16.8 CaDtions. The captions of this Agreement are for convenience and reference only and shall not define, explain, modify, construe, limit, amplify, or aid in the interpretation, construction, or meaning of any of the provisions of this Agreement. 16.9 Consent. Where the consent or approval of city or OWner is required or necessary under this Agreement, the consent or approval shall not be unreasonably withheld, delayed, or con- ditioned. 16.10 Covenant of CooDeration. cooperate and deal with each other in good other in the performance of the provisions city and Owner shall faith, and assist each of this Agreement. 16.11 Recordinq. The City Clerk shall cause a copy of this Agreement to be recorded with the Office of the County Recorder of San Diego County, California, within ten (10) days following the Effective Date. 16.12 Delav. Extension of Time for Performance. In addition to any specific provision of this Agreement, performance by either City or Owner of its obligations hereunder shall be excused, and the Term of this Agreement and the Development Plan extended, during any period of delay caused at any time by reason of any event beyond the control of city or Owner which prevents or delays and impacts city's or OWner's ability to perform obligations under this Agreement, including, but not limited to, acts of God, enactment of new conflicting federal or state laws or regulations (example: listing of a species as threatened or endangered), judicial actions such as the issuance of restraining orders and injunctions, riots, strikes, or damage to work in process by reason of fire, floods, earthquake, or other such casualties. If city or Owner seeks excuse from performance, it shall provide written notice of such delay to the other within thirty (30) days of the commencement of such delay. If the delay or default is beyond the control of city or OWner, and is excused, an extension of time for such cause will be granted in writing for the period of the enforced delay, or longer as may be mutually agreed upon. 16.13 Covenant of Good Faith and Fair Dealinqs. No party shall do anything which shall have the effect of harming or injuring the right of the other parties to receive the benefits of this Agreement; each party shall refrain from doing anything which would render its performance under this Agreement impossible; and each party shall do everything which this Agreement contemplates that such party shall do in order to accomplish the objectives and purposes of this Agreement. -24- 16.14 ODeratina Memorandum. The parties acknowledge that the provisions of this Agreement require a close degree of cooperation between City and Developer, and that the refinements and further development of the Project may demonstrate that minor changes are appropriate with respect to the details of performance of the parties. The parties, therefore, retain a certain degree of flexibility with respect to those items covered in general under this Agreement. When and if the parties mutually find that minor changes or adjustments are necessary or appropriate, they may effectuate changes or adjustments through operating memoranda approved by the parties. For purposes of this Section 16.14, the city Manager, or his designee, shall have the authority to approve the operating memoranda on behalf of city. No operating memoranda shall require notice or hearing or constitute an amendment to this Agreement. 16.15 Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element. 16.16 Amendment or Cancellation of Aareement. This Agreement may be amended from time to time or canceled by the mutual consent of City and Owner only in the same manner as its adoption, by an ordinance as set forth in California Government Code section 65868, and shall be in a form suitable for recording in the Official Records of San Diego County, California. The term "Agreement" shall include any such amendment properly approved and executed. City and Owner acknowledge that the provisions of this Agreement require a close degree of cooperation between them, and that minor or insubstantial changes to the Project and the Development Plan may be required from time to time to accommodate design changes, engineering changes, and other refinements. Accordingly, changes to the Project and the Development Plan that do not result in a change in use, an increase in density or intensity of use, cause new or increased environmental impacts, or violate any applicable health and safety regulations, may be considered minor or insubstantial by the City Manager and made without amending this Agreement. 16.17 EstoDDel certificate. Within 30 calendar days following a written request by any of the parties, the other parties to this Agreement shall execute and deliver to the requesting party a statement certifying that (i) this Agreement is unmodified and in full force and effect, or if there have been modifications hereto, that this Agreement is in full force and effect as modified and stating the date and nature of such modifications; (ii) there are no known current uncured defaults under this Agreement, or specifying the dates and nature of any such default; and (iii) any other reasonable information requested. The failure to deliver such a statement within such time shall constitute a conclusive presumption against the party which fails to deliver such statement that this Agreement is in full force and effect without modification, except as may be represented by the requesting party, and that there are no uncured defaults in the -25- performance of the requesting party, except as may be represented by the requesting party. 16.18 Severabilitv. If any material provision of this Agreement is held invalid, this Agreement will be automatically terminated with neither party bearing any liability hereunder. Notwithstanding the foregoing, within 15 days after such provision is held invalid if the party holding rights under the invalidated provision affirms the balance of this Agreement in writing, this Agreement shall not be terminated. This provision will not affect the right of the parties to modify or suspend this Agreement by autual consent pursuant to Paragraph 12.4. 16.19 Institution of Leaal Proceedina. In addition to any other rights or remedies, any party may institute legal action to cure, correct, or remedy any default, to enforce any covenants or agreements herein, or to enjoin any threatened or attempted violation thereof; to recover damages for any default as allowed by this Agreement or to obtain any remedies consistent with the purpose of this Agreement. Such legal actions must be instituted in the SUperior Court of the County of San Diego, State of California. 16.20 Attornevs' Fees and Costs. If any party commences litigation or other proceedings (including, without limitation, arbitration) for the interpretation, reformation, enforcement, or rescission of this Agreement, the prevailing party, as determined by the court, will be entitled to its reasonable attorneys' fees and costs. 16.21 Hold Harmless. Developer agrees to and shall hold city, its officers, agents, employees and representatives harmless from liability for damage or claims for damage for personal injury, including death, and claims for property damage which may arise from the direct or indirect operations of Developer or those of its contractors, subcontractors, agents, employees or other persons acting on Developer's behalf which relate to the Project. Developer agrees to and shall defend City and its officers, agents, employees and representatives from actions for damage caused or alleged to have been caused by reason of Developer's activities in connection with the Project. Developer agrees to indemnify, hold harmless, pay all costs and provide a defense for City in any legal action filed in a court of competent jurisdiction by a third party challenging the validity of this Agreement. The provisions of this section 16.21 shall not apply to the extent such damage, liability or claim is caused by the intentional or negligent act or omission of City, its officers, agents, employees or representatives. 17. AUTHORITY. The City has entered into this Agreement based upon Baldwin's representation that it has the authority to enter into this Agree- ment. -26- SIGNATURE PAGE TO PRE-ANNEXATION DEVELOPMENT AGREEMENT. Dated this ____ day of , 1996. "CITY" CITY OF CHULA VISTA By: SHIRLEY HORTON, MAYOR "OWNER" BALDWIN BUILDERS, a CA corporation By: I hereby approve the form and legality of the foregoing Pre- Annexation Development Agreement this day of , 1996. Ann Moore, Interim City Attorney City of Chula vista By: -27- THE BAlDWIN COMPANY EXHIBIT A ~~~ -~- ~ ~ CI1Y OF CHULA VISTA PLANNING DEPARTMENT 7{10/96 , I --I I I L_, ..J I l..... .., I \' -,} \ \--J J J t'~ o z w <.:> w -I ~ '" "'"tJ Vi c: .- ::I > 0 ",m :;> .s::.:=: UU '" - ",- C> -ou > 11I.c: ",...", _ "'::> ::I~- ~ 0.- UtIJ..:: "tJ '" "tJ C:C: "'0 E::: '" E><", 0"'", uc:", !!)C:... n::CI:CI: Ii - . o :z c ra 0 ... .- (J)'" ._ ca- m>.~ ra C .. - - :S::Ji; .-.s:: ~ ioo w~(1) o~ ~"5 .- C o ra ~ >- ra ... o - c: "tJC> I1IE "'~ Ou c.",,,, 0- C> ...111... c..OCl: z~ ;.: ftI: "tJ c> c: ... ",-CI: ...J.!!:!~ >-U'C "'!!);:, _c..;:; OtIJtIJ ~m :I I: ~~ ~t ~~! c:;> ; ~/~ It ~::s ! '/( 0 uf ~ u~ c ... I.: '" oS !i N- -I c I _dI I I I u"" EXHIBIT "C' I 1 PRE-ANNEXATION DEVELOPMENT AGREEMENT Olav Vallev Parcel 643-C70-C1 Baldwin Builders 219.68 Olav Vallev Parcel 643-C70-C3 Baldwin Builders 611.43 0Ia,' Vallev Parcel 644-CSO-C6 Baldwin Builders 160.11 Olav Vallev Parcel 644-C80-C7 Baldwin Builders 212.97 TOTAL 1.204.19 :.a .J 81115EP. D.1~::> !J.47R1......"n-E US< c:x;)I'PFN'( IRYlt€:.... ........-.-.n NO.6e5d'.,p.~r4 ~. .' .- ".- . f.~.:> ---..... - - 1 LIW%S R. ~AU [saR ,43"lJ ~'IPH .. PJtACJlEK (P~o Hac Vie. '.ndin;) MGDaKOT'f. WXWO . DDY 104' eent~ 'a~~ laet. tulta 3400 toe Ant.le., Cll1fornil 1006'-'201 4 Tele>>boner ('10) 1".4110 I ['ropo...) CO~fI..l tOI' Davia G~l., Cbaptar ~r ~~F::?~~ 101' Deb1:ou I.\1.DWltl ,un,gus &n4 L\1DWIN IU%LDINr~ c:.:.. -. . COnaACTOltl - -';I" . )' , . t 10 11 1.2 U u n Ie 17 I., U 10 21 II n It "If II .7 .1 J I , I' MAYZ3- ~ ~. Exhibit D IWU_ '. . WITEg nWI'I1 IIJf1CatJP'J'CY COURT clN'l'W. DI8'1'JaCl' or CN:.UOIUtU . ! IA1.DWIN 1IUIt.DtslS, a california ) corporation I an4 1I~WI" ) tUn.DING CONTMCTOU. . ) ~11to"Dl. ~1alt.d 'artn.rahlp.) ) I ) i ) Jft re D.~tol'. . ~'"~,.... ca.. Ro.. KD 'e.l'057-~ &ft4 IQ) 15-UO.I._ (Jointly ~dmlni.te...d Ond... c... .0. ND .5-10'S'-") Qaptu U OJtr)D UPROVXMG DCPLOomrr COM'fJt.\CJ' 1InwlD 'BUSTE!: NO) tTDCKY EI. ",OIDCIOM . . ... 0' '" -...~. b.l~-' ~14f'H"'1'--'t-L I,....i.,.t:;IK 1.".I.,A"111'1J .I'(Y.I'L-- -' ... . . .......""""""'" '0-""; . 2. 'Ihe COlan h. conaiden4 t:M .oti_ 0' "pUQUan aM I AppU.c.~1on ot Davi4 10\&14 to ..,10' .J~ D. .Jobnaon U Q1., , beoll\!Y8 Ortloo~ of ~ ..u~., ~in~ AMn4M.ft~ &ad eo-oni.OM . to AppU_~10" ot David '.1114 '0 IIIpl"1 I's.y D. "oblwon .. ~hr . beouUvo OfUcer of ~. Iftate., an4 ua liecura1:iona .f "iay D. . .John.em, K. rnlS410 "i.., Catho~1no 111"1.., and David oola14 1n 7 OUPPOR thor.ot, .. von a. .11 o~.otlona '=hUOq. . "b. COUZ't, UNl1rq ~.t 900eS caiola. &K18t. to lI'ant S!I. . APpl1oa~1an, bor.brl . 10 C OaDEU, tbat ~,AppUeaUon, .0 uandad 1a .ppnYM .... 11 ~. It 18 f\ll'tbar, _ ~.' 11 O~DEC, tba' all o~jooticma are overrul.d v..I;.R1)'. It l' b "'"har, J.4 OItDDID, thn "ia)' D. I'ohnaoD, &II lai. Cl&pacUr .. ~ 2.' De~OZ'OI Ollar "OeNtiVl OfUcer I' all~rba4 to __~ ..c:rov 11 in'~CJtiol\o, 9Z'Mt tl0ecS8 and Nlatad dOCll8enU fol' Nl.. in tb. 17 oZ'41"a~ oollno of ~dno.., .. voll a. ,.1.. ,Z'ov!oIM11 .ppz,o....1I u ~ U. 'In.t.. aftd ~1' COIll't. 15 Z'l' II 10 ON>!ItID. ROB'N L R'BlET 10 DA'1'EDI 11 aa U Ie II .11 ., ,U MAYU. I'OUIt Ir. "Non' QI1'l'1D ItA"U aurD.UP:CV .rGDG1 , c u"....""~~..., -I- 1~/~1/1996 15:19 6 7 . , 10 11 12 13 U 15 16 17 18 19 20 n 22 \ c: Lt- C; c:. c: -' 7l466~M2l~ JIM .JCJ-tIS()-I PAGE ~2 . :liD ~ F" j:n. ........;.' :;;"; ~';1 : ' ", ':~':'::'i~TJ '" '''I'_I~ .I:..a , ". I.. .__....__~. . , 1 ~i. R. Landau (SaN 143391) Joaepn S. saracnek (Pro Hae Vice) a seth T. ~arpinski (SaN 13774" McDERMOTT, WILL , !MERY J Z04' Century 'ark East, suite 3400 Los Anqel.., California '0067 4 ()lO) 277-4110 Attorneys for David Gould, ,<:!Iaptar 11 Tcust · r.f.MTf;1!:JJ ;-J i ,<; :IO~ :; , L..a~"'--:'.'. ..... J VIIn'aD ''U.'US IAlfUt1I"J'CY o~'!'-"'t......'.i~:';:;:"" I h_.'.... J - CZ~L DJ_TaICT OF CALIFORBIA ..' .... ; In t"e: ) ) ) ) ) I, ) '- ) , ) , ) " , ) ) ) ) ) ) I I Case Nos. NO 95.13057RR and ND ".13058M BALDWIN BUILDERS and BALDWIN 8U!LDING CONTRACTORS. a California liaited partner$hip, ChIopt.er 11 (Jointly Ad~ini.ter.d Under Case No. ND 95-13057RR) 8\111JI.!MD'1'AL OaDP Ito. 1 AllfIIORUI!lG 1'98 CHAP'rP 11 nust'u '1'0 sau CDtAIII 'RO"RTIII FREI ~ CLIAR) ISt'ABLt..llfC JaOeIDUR.. ro. DlSPOSITIOK OF S&L2 .aOCBIDS; DD 1'011 ALLOCA'UON OF .acc.1D8 MOHG IIB~IIIC8' LIIN CIoAJKAII'1" Debeors. Taxpayer Identification Nunber& 95.2403206 and -0336107, respectively. Date: TiM: Place: septa_ber 3D, 1"6 10:00 ..11\. CourtrOOJ:l 104 222 East Carrillo Stroat Santa Barbara, CA 93101 i" - 8~ ~ On SepteAlber 30, 19,. at 10:00 iI.lI. in tna courtroom of ....It. !': ib. HOhorable Robin L. ~1blet,:united States .ankruptcy Jud9a, tne C~t ~on.lderad the eonte.ted'.atter crea~ad by the objection of Fire..n's Fund Xnsurance Company ("I'FIC", and Aaerican Insurance 0-' , ~p.dy ("":JC") t.o the Ngt1ee ~t Addition of Honoes filed by the dhapter 11 Truste.. David COU1~ (t.he "Truet..e",. which notice 1. lD/~1/1996 15:19 7l466DM21D JIM JtJ-tISCJ'I PAGE D3 11 12 13 14 15 16 17 18 19 20 U 22 \ 23 24 25 2' 27 a8 1 would aake additional Ho... (as defined in the 5.1. Alloea~ion Z O~er) .Ubj.~t to the .Order Autho.i;i~ the Chapter 11 Trustee to ) Sell Certain Proper tie. Free and Clear: E.~abli.hi"9 Proc.d~re. 4 for Disposition of Sale Prooeeds; and tor Allocation ot Pro~eed. 5 bonq Meehanics' Co!en claill.nts," entered .7'11y 19, 1911' (the .S.1. · Allceatipn Order-). Appearance were mad. a$ noted on the record. 7 The court, havinv considered the natter, tne objection of . P~IC and AIC and the raply Of the Trustee, and 900d oe~se , appear!nq therefor for the rea.or.s stated or. the record; ~.;, -,... 10 11' IS HIa..y oaCIIRID 'I'HI<!':' 1. The HOlies ftt.ntiUed by legal description attacbed to thil' Order a. !xhlbit A (the "Added Homee") ara hereby added toO the procedure. Of the lale Allocation-order; 2. ~itle to an:A~ded Hone will pas. to the pu~ch..er tree and cl.ar of the Clai~$-.nd interests only of the Subcontractors end the DIP II and Tl Credit Providers and no~ of any other Int4re.ti ). Sate. of the Added Hoae. pursuant to the ~erac of this Order .hall be (ree end-'Clear of only the liens and int.~..~. of the DIP II and T1 Credit Providers and 'the Claia$ of the , ' Subcontractors a. defined in the Sale AllOcation Order, and not of any other interest. clai.. ~t the subcontractors ahall "I- apeCifically include but ahall not be limited to Clai.. ot tho.. SWbcontractore identified on' ~~ibit B hereto, all such SUbcontraotore having been ..~~ed with the Tru.t..'. Notice. Any ''i Subcontractor that .ubsequentlY render. services or d.liverc 90od. -, ,,;' 'Defined ter'lla harein _hall have the .allle ....nino; .. contained in t.h. S.l. Allocation Ord.~. ! - 1A\'_\O"\I'LUOI.'_IIlL.OII a , , l~{~!{l~~b 1~:1~ 1'7 1e 19 20 21 22 23 24 2' 26 27 28 ( Lqbbt:lt:lq;':UJ .JIM~ PAGt: 114 1 ;2 th~t did not previously receive notice of the Notice .hall also bOUnd by ~e eer.. h.r.o~ provi~in9 a copy ot ~hl. Or4er Is bel 3 personally .erved upon suoh subcontractor prior to the delivery of 4 8uch goodS or rendition of such servioes; and !5 4. The proce4~I;'~s for QllOC4ltion of proceeds a_n, , aechenIo.' l1en clai.ant. and e.t.bli.hl~ procedure. tor '7 dispoaition of .ale proceeds provided tor in the sale AllocatIon · Order, a oOpy of which is attached to and incorporated in th~. i Order a. E~hlb1t C, as well as'all other term. or the sale ~~, ,.. 10 AllocatIon Order .. aoditied .~ further order of this Court, ea.1l 11 express IV apply to the .ale of any Added Home.. 12 13 Datltd: IEP.' 1111& 14 ROBltl L RISLET ROBIN L. RIBLE'l' UMITED nATES IAIIXRUPTCY JUDG! 15 U "., (l.^, \ }1./\...x. i At" ,/ '.! jhl~C", -.J%C.p c{':Q tf .1 i ;,1i;lfct. 1. . v_J "':U L I " 1 . . (". 'I,. ~~ I"~. ...t' u.,r p. ~ ,I t, , " , "-,, t, ~.,' ... 1J...r;;J ,,), ,. . r~ VI . I . I -- /,/ , .: ~ ' t. ' I '.. 'I,:. '1 j. 'c;-;<~~t..' '-- r . . I I .'-1 . '1 fI ,i) "'/I'!'.!.} ,t.) I' " . (!;' ", I. . I JA'lI'!' .,A il.l "II )"~J1cJ-J ....."'.,".'" ,- ./ .~.L/~." v~. "/': f\ 4'" '1'1 I'.' clJ'r . ; './ f (+- ','J,.'. '- <, ~!:\ /" - :,' (! 'i rJ. .t I ,II' . ':! !'f~: " ,: ~t'li,{ ,;..-' ---~ t1.,() "t. (\ {((." \i!' J , --- L'~~\.'I\"U"11IO\50D1tm.C'1 J 1!1/!11/199& 15:19 71466!1!1421!1 JIM Ji:tt'GUi t"A~ 'J:' ,t. .-- - .. ....1.. . ..... r "'.. !. 'j .~. >0-::' .. ..l'. '0 ,~ 1:>'..1;- .- ..J . ...."'.:' T" eA\.OWIN COM~ioHY 7Ia3Jt1 ".. TOTAL ~OWg Re lolA/NINO ...tulter PIIOIIUCT t!!eB WilD Lm !.2!! , HOUIES Or.... Counc, "01:011 "'If "'_0 :1 38 0 H Nl'ov. ""k 3 J6 0 3Q s.,..-_ '11';'" 1olo:I1'1 . 0 . 11ft Dllto COUtII'f D-. Aka-te 3 22 I) ~l ~..... VIIt> . I~ 0 10 'l'oIego..,., CroaaIngs . U 0 .~ T.;'9""" CIONllt8' . II ~ :1 TOI8O...rt- C,.",. I 14 0 ,. .....,.~ CIII"'" ,. J 2t 0 JI .1 OIM' Ar~o_. C;QMOO Alllllfl,q Condo 1 0 1 ~~ '.,0- ROIII"""III "'\'NoI< 1 0 , TO"., ...... CO"". 'IGmY ,."". ColI. 1 ~ 1 M__ >10.,. "'._~ Ho_ , 0 1 TOTAL HOUIa 'III 0 ~1!6 WI2 VOIII"I COUnl\' o_cr "';'. We&! \In/~ 38_ 0 31 Ac,es " t'VU!CIT '\ 1~/61/1996 15:19 7l466~M21~ JIM JCI-tI5O'I PAGE ~6 ....:, :.--'- ~ ....I"...... ,.. . I ..... "''' -;1". . ... .... ..._ 'w a........ '''..'... .. .,-.. TI"f aAL~!\I COM~i\NY TOTAL C4.0'!D 1tI""'"'HQ ......!''!2:!J9T__ -~_ _ I'IIoUE_ .~,_ ..19!!... _ JQTI_ ,"VfNfOIU' 0'.... C.""tr P~I'GI' Mit1a $u"''"' ~." IpM" MOOel. T ) U o 11 ) . .... Oiev. c..n., Dol r.!... :;:....1 0eI M.. . , ~...- M_Of a 4 '7 ;It . 21 . I r"1;1& ,1 . \ . . COUNCIL AGENDA STATEMENT ITEM // MEETING DATE 10/1/96 ITEM TITLE: Public Hearing to notice use of COPS Funding per AB 3229 Citizens Option for Public Safety for Local Law Enforcement Services Resolution /&"7'i'1::ccePting $356,408 for Local Law Enforcement from the state budget to pay for police personnel and related equipment to be identified Chief of pOlice~~v/ City Manager0J/~ (4/5THS VOTE: YES~ NO ~tlJ SUBMITTED BY: REVIEWED BY: During the 1996-97 budget process, Council authorized the Police Department to pursue funding for Community Oriented Policing projects. The state budget was adopted appropriating $356,408 to the City of Chula Vista as a result of Assembly Bill 3229, Brulte. This bill allocates state money to police departments for purposes stipulated by the Citizens Option for Public Safety (COPS) Program. RECOMMENDATION: That Council hold a public hearing to notice use of COPS funding to pay for "front line police services" and adopt a Resolution accepting $356,408 from the state budget. (This action does not put the City at risk or obligate it to accept the funds.) BOARDS/COMMISSION RECOMMENDATION: The state appropriation requires a Regional Oversight Committee's approval of the funds prior to disbursement. In response, an Oversight Committee was established in San Diego County. The Commi t tee recommends approval of the state local law enforcement funds as proposed. The San Diego County Oversight Committee is comprised as follows: 1) One municipal Police Chief - Rick Emerson, CVPD 2) The County Sheriff - B. Kolender 3) The District Attorney - P. pfingst 4) The County's Administrative Officer - Lawrence Prior, III 5) One City Manager - J. Bowersox, poway /)- / PAGE 2, ITEM MEETING DATE 10/1/96 II BACKGROUND: The California Legislature, with support of Governor Wilson, enacted AB 3229 (Chapter 134) into law during the 1996 legislature and state budget session. The legislation allocated $100 million statewide to local Police Departments, County Sheriffs and District Attorneys. Of this money, $75 million was divided among patrol- responsible law enforcement agencies, $12.5 million was distributed equally to Sheriffs for county construction and operation and the remaining $12.5 million was divided among all District Attorneys in the state for criminal prosecution. The funds for local law enforcement were divided on a $2.30 per capita basis. Based on this formula, Chula Vista was allocated $356,408 to fund "front line police services." DISCUSSION: As part of the Police Department's on-going effort to obtain COPS funding and minimize the cost of police services to the General fund four grant programs (including AB 3229) will be forwarded to Council for consideration on October 8, 1996. A summary of these programs (AB 3229, COPS Universal Hiring, Domestic Violence and the Federal Local Law Enforcement Block Grant) is attached to serve as a reference point in reviewing these agenda statements. In brief, together these programs provide $1.2 M in new funds for supplemental local law enforcement services. The funds are to be used to supplement and not supplant. Some of the grant monies require a local match and have future fiscal implications to the General fund. Staff will address these issues in the Agenda statements to be forwarded to Council on October 8, 1996. AB 3229 - Citizens Option for Public safety is one of four grant programs to be forwarded to Council for consideration on October 8, 1996. However, in order to be eligible for funding, AB 3229 - Citizens Option for Public Safety stipulates that 1) a public hearing be held in September noticing the intent to use these funds for local law enforcement services; and 2) that a plan for the use of the funds be approved by Council within 60 days of the public hearing. The police department was advised of this requirement in late September and was unable to meet the public hearing notice requirements. As a result, this public hearing is scheduled for this meeting. Staff does not anticipate any appropriation problems as a result of this action. 1/- .2, PAGE 3, ITEM /1 J/J);/jt MEETING DATE As mentioned above, the agenda item with staff's recommendation for specific use of the funds will be forwarded to Council on October 8, 1996. This will provide Council with the opportunity to review use of these funds in the context of all grant opportunities available at this time. In the interim, the police department recommends that the City Council accept the state allocation and approve, in concept, potential use of the funds for personnel and equipment costs related to the expansion of the "front line police services. " Staff will describe the short and long term implications of proposed personnel or equipment purchases to be funded by this appropriation in the agenda items to be forwarded. In the event, Council chooses not to accept staff's recommendation for use of these funds, Council is under no obligation to accept the State appropriation per AB 3229. FISCAL IMPACT: Acceptance of the funds would make $356,408 available for local law enforcement needs. The funds have a 25% in-kind contribution requirement; thus, no impact to the General Fund. However, the funds must be used to supplement local law enforcement not supplant. Reoccurring costs to the City would depend on the use of the funds. Fiscal implications will be described in agenda items to be forwarded to Council. ATTACHMENT 1 - Summary of New Grant Opportunities <> / / ~ -_'? RESOLUTION NO. /:11) Lj t. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING $356,408 FOR LOCAL LAW ENFORCEMENT FROM THE STATE BUDGET TO PAY FOR POLICE PERSONNEL AND RELATED EQUIPMENT TO BE IDENTIFIED WHEREAS, during the 1996-97 budget process, Council authorized the Police Department to pursue funding for Community Oriented Policing projects; and WHEREAS, the $356,408 to the City of 3229, Brulte; and state budget was adopted appropriating Chula Vista as a result of Assembly Bill WHEREAS, said bill allocates state money to the local agency for purposes of the citizens Option for Public Safety (COPS) Program; and WHEREAS, the City Council held a public hearing on October 1, 1996 to review and accept COP Funding per AB 3229. NOW, THEREFORE, BE IT RESOLVED the City Council of the city of Chula Vista does hereby accept $356,408 for local law enforcement from the state budget to pay for police personnel and related equipment and appropriate said funds to Fund 214 Supplemental law Enforcement Services Fund. Presented by Approved as to form by Richard P. Emerson, Chief of Police (~.ml u.{c.e-L?1-- ~:Z:i; iu..~y A . Moore, ~ctlng C t~~ Attorney c: \rs\AB3229.COP I) ~ 1/ ATTACHMENT 1 SUMMARY OF NEW POLICE GRANT FUNDING OPPORTUNITIES Grant Title Amount Local Status Recommended Use Match of Funds AB 3229 - Citizens $356,408 In-kind To be $122,364 to offset Option for Public Services disbursed local match for 6 Safety (State Budget October 1996 officers under Appropriation) Universal Hiring Grant; $10,000 for Upgrade of Agt. to Sgt for Domestic Violence Grant $184,044 for equipment; & $50,000 for services. Universal Hiring $450,000 Spreadsheet Disbursement Pay for 6 Officers Grant - Pays partial over three Attached of A ward salaries & benefits years Pending for 6 new officers over three years. Domestic Violence $150,000 $30,000 in- A warded; Pay for one Grant - Pays for one to renewed kind funds may be Sergeant, one Agent, one Admin. annually services drawn pending Admin. Office Office Asst III, and for three Council's Assist. III, and $30,000 in years Approval contractual services contractual services with Children's with Children's Hospital Hospital for Family Protection Services (Federal) Local Law $257,401 10% local Award & Pay $94,618 for Enforcement Block match disbursement one Animal control Grant - Pays for ($25,741) of funds Officer, .5 Crime personnel, overtime, pending Prevention equipment, enhanced Council's Specialist; .5 Grant security measures. Approval Writer; $10,000 for A ward based on overtime; $95,783 Crime Rate and equipment and distributed on a per $57,000 in security capita basis. measures. //~ _? ATTACHMENT 1 CONTINUED UNIVERSAL fiRING PROGRAM COST The COPS Universal Hiring Program authorizes funding under the Crime Bill for six additional police officers for Chula Vista. Up to a maximum of $75,000 per officer is provided over a three year period. The grant offsets approximately 57%,50% and 36% of the City's salary and benefit costs per position for the three-year funding period. On the fourth year, the City would pay the full cost associated with each position added. The following is a breakdown of the cost of adding new police officers. The cost for adding one new officer under the COPS Universal Hiring Grant Program is as follows: Year 1 Year 2 Year 3 Total - 3 Yr. Federal Share $27,033 (57%) $26,662 (50%) $21,248 (36%) $ 74,943 City Share 20,394 (43%) 26,661 (50%) 37,773 (64%) $ 84,828 Total $47,427 $53,323 $59,021 $159,771 The personnel cost for adding six new officers is as follows: Source Year 1 Year 2 Year 3 Total - 3Yr Federal Share $162,198 $159,972 $127,488 $449,658 City Share2 122,364 159,966 226,638 $508,968 Total $284,562 $319,938 $354,126 $958,626 2The City's share is to be offset by COPS funding per AB 3229 _ Citizens Option for Public Safety. J//~ ITEM TITLE: A. B. COUNCIL AGENDA STATEMENT .} Item ) ~ Meeting Date 10/1/96 Public Hearing Regarding existing and proposed rates and charges for Cox Communications' Basic Service Tier and associated equipment and Cable Programming Services Tier, as submitted by Cox Communications to the City via Federal Communication Commission (FCC) Forms 1235, 1240 and 1205. Resolution /6 Y ~ 7 1) Disapproving upgrade-related increases in Maximum Permitted Rates for the Basic Service Tier; 2) Directing staff to file a complaint with the FCC on behalf of local subscribers regarding upgrade-related increases in the Cable Programming Service Tier rates; 3) Approving proposed cost-based rate decreases for associated equipment;and 4) Approving proposed cost-based increases in the Maximum Permitted Rates for the Basic Service Tier. SUBMITTED BY: Principal Management Assfi~ Young~ REVIEWED BY: City ManageJ~ ~ ~\ (4/5ths Vote: Yes_ NoX) In May 1996, Cox Communications instituteH$3.79 increase in its Cable Programming Services (CPS or "expanded service") tier. This charge is subject to FCC regulation, thus any complaints must be filed with the FCC. At the same time, Cox proposed to raise its Maximum Permitted Rates for the Basic Service Tier, which is subject to City regulation. Both of these changes were based on costs to upgrade Cox's infrastructure. Further cost-based increases in Maximum Permitted Rates were requested in July, along with decreases in the rates for associated equipment/installations (e.g. charge per installation; rental of decoder boxes, remote controls). A study by Public Knowledge, Inc. of Cox's methodology in spreading its upgrade costs called into question both the Basic and CPS share of the upgrade. That same study found the cost-based increases to be appropriately justified. Accordingly, staff is presenting a recommendation to deny and/or protest the questionable upgrade-related rates, approve the equipment rate decreases and approve the cost-based service charge increases. On those portions of the rate requests with which the City disagrees, the FCC is the final arbiter. Should Cox wish to institute such rate increases above the City's objections, they would be required to file an appeal with the FCC in conjunction with any rate increase. If the FCC finds in the City's favor, any overcharges would be subject to refund by Cox. RECOMMENDATION: That Council: 1. Conduct the public hearing; and 2. Adopt the resolution: 1) Disapproving upgrade-related increases in Maximum Permitted Rates for the Basic Service Tier; 2) Directing staff to file a complaint with the FCC on behalf of local subscribers regarding upgrade-related increases in the Cable Programming Service Tier rates; 3) Approving proposed cost-based rate decreases for associated /~~/ Item , Page 2 Meeting Date 10/1/96 equipment; and 4) Approving proposed cost-based increases in the Maximum Permitted Rates for the Basic Service Tier. NOTE: On September 26, staff received verbal notice from Cox that they would not be pursuing the cost based equipment and monthly rate changes at this time. Upon receipt of written confirmation of this withdrawal, staff would recommend deferral of parts 3 and 4 of the resolution. BOARD/COMMISSION RECOMMENDA nON: N/ A BACKGROUND Rate Structures and Subscribership Cable service rates are structured and regulated as follows: Table I: Tiers of Service SERVICE TIER EXAMPLES REGULATION Basic Cable Broadcast networks, Local Franchising Government Access, WGN, Authorities (Cities) C-SPAN, TBS Cable Programming Service CNN, ESPN, A&E, Bravo, Federal Communications MTV, Disney, Nickelodeon Commission Premium Charmels, Pay- HBO, Showtime, Viewers Unregulated per-view and other "a la Choice, ESPN-2 (see carte" services discussion below), Turner Classic Movies The 1992 Cable Act provided local cable television franchising authorities with limited ability to regulate Basic Cable and certain associated equipment rates. Limitations on Basic Cable rates are intended to protect residents who want just bare-bones television service from paying higher prices due to technological or other barriers to effective competition. Under the terms of the 1992 Cable Act and City Council action, Chula Vista's limited rate regulation authority became effective September 1, 1993. Rates for expanded tiers, which include such charmels as CNN, ESPN and MTV, are now known as "Cable Programming Services" and are regulated by the FCC upon the filing of complaints by subscribers, submitted through a local franchising authority. Rates for premium and pay-per- view charmels, such as Cinemax or HBO, are not regulated by any agency under the Cable Act of 1992. With the lesser rate regulation applied to CPS and premium services like HBO and Showtime, cable companies can theoretically make up for the regulated nature of Basic Cable by effectively marketing the optional programming. /.2 - d- Item , Page 3 Meeting Date 10/1/96 In Chula Vista, Cox currently has 823 customers receiving Basic Cable only, with 33,484 receiving Basic + Expanded (marketed as 'Cox Classic') service. Thus, of Cox's 34,713 residential customers, only 2.4% receive Basic Cable only. (These totals do not include 1,229 commercial customers such as restaurants and bars, which typically subscribe to expanded service). Ongoing Cable Rate Deregulation The Federal Telecommunications Act of 1996 was signed into law in February. It has since been followed by a number of proposed, interim and final regulations which are the tip of the iceberg in terms of how this landmark law will be interpreted and implemented in the coming years. In terms of cable rate regulation, this law continues to allow for local regulation of Basic Cable rates until such a time as effective competition is reached. Cable Programming Service regulation by the FCC also continues, but with a sunset date of March 31,1999. It is assumed that by that date, and probably much sooner, there will be a host of new competitors providing similar services. These services may be delivered by telephone companies, via fiber optics, via satellite, or through "open video systems" which are pass-through companies facilitating customers striking their own deals with entertainment retailers. Regardless of what form this "effective competition" takes, the mere presence of an alternative with sufficient capacity and market share would be considered by the 1996 Act to be evidence that local (Basic Cable) and federal (CPS) rate regulation is no longer necessary. Locally, Chula Vista Cable is judged to have effective competition based on the market share held by Cox. Federal law thus allows Chula Vista Cable free rein to set their own rates on the assumption that if they priced themselves too high, customers could switch to Cox. However, since Chula Vista Cable has a much smaller customer base and area of service, it does not serve to give Cox "effective competition" and thus Cox's rates are still regulated. DISCUSSION Maximum Permitted Rates When filing for rate increases with the local franchise authority or FCC, cable companies can request designation of a Maximum Permitted Rate (MPR). In practice, Cox has not charged for cable service at the full MPR. Their MPRs as of 1/1/96, the changes that have been proposed in them, and the actual rates currently assessed are as shown in Table 2. As of 1/1/96, Cox was charging $1.68 less than their Maximum Permitted Rate ($24.88 - $23.20). When they began charging their upgrade-related increased rates in May, they were charging $2.11 more than their previous MPR, but $3.65 less than their requested increase in the MPR. Although some rate increase would be expected following an MPR increase, it is difficult to predict what cable rates will be in the aftermath of these various rate filings. Based on past J~ ~-:; Item , Page 4 Meeting Date 10/1/96 experience and considerations of what the market will bear, it is unlikely that Cox will seek to increase the actual rates to the full MPR. BASIC CABLE CPS (EXPANDED TOT AL:BASIC+CPS SERVICE) (COX CLASSIC) MAXIMUM PERMITTED RATES MPR as of 1/1/96 $7.74 $17.14 $24.88 Upgrade-related $1. 73 $4.03 $5.76 MPR increase request (Form 1235) Cost-related MPR $2.00 $0.04 $2.04 increase request (Form 1240) TOTAL MPR $11.47 $21.21 $32.68 Requested: I ACTUAL RATES I Rates Charged as of $7.30 $15.90 $23.20 1/ 1/96 Rates Charged as of $7.30 $19.69 $26.99 5/1/96 (Current rates) Actual Increase to $0 $3.79 $3.79 date: Table 2: Maximum Permitted Rates (MPR) vs. Actual Rates Upgrade-Based Rate Proposal (1235 Filing) Under FCC rules, cable companies may file for rate increases for either: 1) costs related to service or infrastructure upgrades or 2) increased costs of doing business. Earlier this year, Cox filed a rate increase request related to upgrades to their transmission facilities from 450 megahertz (MHz) to 750 MHz. From this upgrade, a 100 MHz increase (from 450 to 500) was activated in the form of new channels and services. It is this "used and useful" portion of the upgrade that Cox proposed assessing to the Basic and CPS service tiers. ).2 - Y Item , Page 5 Meeting Date 10/1/96 The rate proposal was for an increase in the Maximum Permitted Rates for Basic Cable of $1.73 per month and for Expanded (or CPS) rates of$4.03 per month. The actual rates for Basic cable remain unchanged at $7.30 per month. CPS charges were increased in May from $15.90 to $19.69 (an increase of $3.79 of the total $4.03 of the requested MPR). In cooperation with San Diego, Poway. National City, La Mesa and Imperial Beach, Chula Vista once again contracted with Public Knowledge, Inc. to perform a detailed review of Cox's rate proposals (at a cost of $200 per form per city -- $400 for Chula Vista for the 1235 and 1240 review). That review found the cost-spread to be flawed (see Attachment #1). In essence, the upgrade has been used primarily to provide new premium services, while the costs have been assessed primarily to non-premium services. Based primarily on this review and also on customer complaints received by the City, I staff recommends filing a formal complaint with the FCC. As a postscript, subsequent to Public Knowledge's discussions with Cox and sending them a copy of the attached report, Cox has since notified the City (See attachment # 4) that it intends to realign their channel line-up effective September 30 to place ESPN-2 and the History Channel (added for an additional charge after the upgrade) on the CPS-tier. They also plan to add two new channels to the Basic Tier. These changes may serve to mitigate the overcharge, but based on the months the overcharge has been in effect, staff would still recommend proceeding with the FCC complaint. Cost-based Rate Proposal (1240 Filing) The subsequent proposal received in July contained two requests: 1) an additional inflation and operating cost-based increase in maximum permitted monthly rates, and 2) a decrease in equipment and installation rates (see discussion of Form 1205 below). The cost-based proposal would increase the Maximum Permitted Rates for Basic Cable by $2.00, and increase the maximum permitted CPS rates by $0.04. This is a combination of projected inflation costs (as per FCC procedures), "true-up" for variation in previous inflationary estimates, and adjustments for changes in the channel line-up. True-up adjustments do not typically enable full after-the-fact cost recovery. Thus, cable companies have an incentive to project their inflationary costs ahead of time. An increase in the MPRs based on projected inflation allows companies to raise their rates as additional costs are incurred and minimize any cost-recovery loss through the true-up process. Public Knowledge's report found the methodology followed in Cox's cost-based MPR increase proposal to be appropriate. 1 Typically, when customers have complaints about their cable rates, they complain to their cable companies rather than to the franchising authority (city). This may be due to a lack of understanding of who oversees a franchise and to federal moves toward deregulation. However, current FCC regulations require at least two customer complaints be received by a city before a complaint may be filed with the FCC. Chula Vista's proposed FCC complaint follows complaints by two city employees who are also Chula Vista customers of Cox Communications. ---- ).2 - S /' Item , Page 6 Meeting Date 10/1/96 Although Cox has stated that there is no plan to increase the actual rates at this time, they would have the discretion to charge their MPRs at any time. If the City were to object to an MPR increase and Cox were to increase their rates in spite of that action, the matter would be adjudged by the FCC, with refunds ordered if appropriate. Eauiument and Installation Cost-Based Rate Prouosal 0205 Filing) The following chart shows the proposed changes in equipment and installation charges. Due to the fact that the Chula Vista, National City and Imperial Beach rates in each case were proposed to decrease from the current rates, staff from these three cities concurred in not requesting a detailed evaluation of this proposal by Public Knowledge. In the cities of La Mesa and Poway, Cox had originally proposed increasing the equipment and installation charges to bring them up to the level charged elsewhere in the county. That proposed increase has since been postponed. If it were to be revisited, the detailed review to be undertaken by those agencies would serve as a valuable benchmark for the south bay cities to use in evaluating their own equipment and installation rates. (NOTE: These rates were last analyzed in 1994 and found by Public Knowledge to be justified). It is staff's recommendation that these lower rates be approved. Table 3: Equipment Rates (1205 Filing) Current Proposed Change Installation (unwired) 43.00 31.03 -$11.97 Installation (pre-wired) 22.00 15.52 -$6.48 Add'l Outlet (@ installation) 30.00 20.17 -$9.83 Add'l outlet (after install.) 30.00 23.28 -$6.72 UpgradelDowngrade 10.50 2.00 -$8.50 Decoder rental/month 2.94 2.51 -$0.43 Converter rental/mo. 1.51 1.40 -$0.11 Remote rental/mo. .35 .28 -$0.07 /.2~? Item , Page 7 Meeting Date 10/1/96 Feedback received from Cox As of this writing, Cox has taken the position that all rate filings represented appropriate cost distributions to the various service tiers. They have been provided copies of the draft FCC complaint and the Public Knowledge report and have yet to give any specific comments. They have, however, given verbal notice that they will be postponing the cost-based changes in their equipment and monthly MPRs. A written confirmation of this action is expected on Friday, September 27 and will be provided to Council on the dais. Actions under consideration: Other Cities The Cities of Chula Vista, National City, Imperial Beach, La Mesa, Poway and San Diego cooperated in the hiring of Public Knowledge to review the cost-based filing. Public Knowledge confirmed, as discussed above, that the cost-based increases were appropriately justified. Assuming Cox pursues these increases as originally planned, those cities anticipate action to approve those cost-based MPR increases in the near future. The upgrade-based rate increases applied only to Chula Vista, National City and Imperial Beach, with the same apparent overcharge in each case. At this time, National City and Imperial Beach have yet to take a position on filing an FCC complaint on the CPS increase or rejecting the Basic cable MPR increase. Recommended Action The various FCC forms involve complex formulas to determine allowable rate increases. The FCC suggests that cities should proceed to make rate determinations in good faith, and have indicated that they will defer to the franchising authority's decision if it is supported by a reasonable basis. Based on the review by Public Knowledge, it appears that the formulas for a cost-based increase were applied correctly, but those for an upgrade-based increase were not. Staff has concluded that the City has made a good faith effort to properly interpret the FCC regulations and that it is appropriate to take action at this point. Staff recommends proceeding with the various recommendations embodied in the resolution. Subject to written confirmation from Cox that they are deferring action on their cost-based equipment and MPR filings, staff would recommend deferring action on parts 3 and 4 of the resolution. If Cox disagrees with the City's action, it may appeal the decision directly to the FCC. To date, staff has received no formal or informal response from Cox on the draft FCC complaint. If Cox has any further input regarding the FCC Complaint, it will be attached to the complaint prior to mailing per FCC regulations. )2-7 Item , Page 8 Meeting Date 10/1/96 Notice Provisions/Schedule for Review Notice of this public hearing has been published in a newspaper of general circulation for two weeks, with additional notice of the hearing and the draft FCC complaint provided to Cox. The published notice specified that the hearing concerned 1) changes to the MPRs, not the actual rates charged, 2) decreases in the equipment and installation rates, and 3) consideration of a complaint to the FCC regarding a previous rate increase that is subject to FCC, not City regulation. Since the rates Cox is seeking to increase are Maximum Permitted Rates only, the notice clarified that the effective date of any rate increases is unknown and subject to Cox's discretion (with no further filing required) once the MPRs are approved. According to FCC noticing provisions, Cox is to be afforded a 30 day review period prior to a CPS-tier complaint being filed with the FCC. That review period has now been in effect for approximately 19 days (draft complaint mailed on September 11). Unofficially, Cox also received an advance copy of the Public Knowledge report on August 27. It is staffs opinion that this should be sufficient time for Cox to provide reasonable input for the City's purposes in filing the CPS-tier complaint. If in the next ten days Cox provides some further response to the City's draft complaint to the FCC, staff will attach this response to the official complaint, per FCC requirements. The timing of this report is meant to accommodate the FCC's process for filing a complaint about Cable Programming Service rates. It is also meant to coincide with Cox's planned October 1 cost-based increase in the Maximum Permitted Rates for Basic and CPS cable services. According to FCC rules, a complaint on CPS rates would need to be filed within 180 days of a rate increase, while first allowing for Cox to review the draft complaint for a period of 30 days. With the increased rates effective May 1, the 180 day deadline would occur on October 28. To facilitate Cox's 30 day review, they were sent a copy of the draft FCC complaint by certified mail on September 11. If Council concurs with staff s recommendation to file the FCC complaint, that complaint would only be filed following the conclusion of the 30 day notice period and any further response from Cox. FISCAL IMP ACT: The impact on customers' cable bills from these actions will depend upon final rulings by the FCC and on Cox's rate setting decisions within their Maximum Permitted Rates. It is not incumbent upon the City as franchising authority to determine what the precise charge per service tier should be, but rather to rule on the appropriateness of the charges as proposed. The FCC is not likely to rule against Cox's entire upgrade-based increase, but they may mitigate that increase as it applies to Basic and CPS service tiers. If appropriate, they may also order refunds. Since the actual Basic Cable rates have not been changed (only the MPRs were raised), no refunds would be due following any rulings on the Basic increase denial. If Cox were to raise fees in conjunction with filing an appeal of the City's action on Basic rates, such refunds might be required. ) )-K . /' Item Meeting Date , Page 9 10/1/96 Regarding CPS rates, Cox increased these by $3.79 in May. If the FCC decides in the City's favor, customers may be due a refund of as much as $3.79 for each month the higher rates were in effect. As indicated above, a ruling against the entire increase is unlikely. In addition, with the Form 1240 cost-based increases in the MPRs already filed (at $2.00 and $0.04 for Basic and CPS, respectively), Cox would likely be able to structure their future charges to absorb any mandated refunds. The range of possible Maximum Permitted Rates once any upgrade-based appeals have been decided would be between $26.92 (representing 100% FCC disapproval of the upgrade-based filing, which, as discussed above, is unlikely) and $32.68 (representing full approval). Generally, for each dollar of monthly fee increases or decreases, the annual cost/savings to Chula Vista's 34,300 Cox customers is $411,000. It should also be noted that since some customers in multi-family residences received discounted bulk-rates on their cable service which were not subject to the May rate increases, these rates would, in turn, not be subject to refunds. In terms of City revenues, since the franchise fee paid by Cox is 3%, franchise revenue might be reduced or increased slightly via the recommended action and subsequent FCC rulings. Staff has not given any consideration to the potential impact of rate regulation on these fees in conducting the rate regulation function. Attachments: 1. Report from Public Knowledge, August 27, 1996 2. Cox Communications, Fonn 1235 Upgrade-based rate increase request 3. Cox Communications, Fonns 1215 and 1240 Cost-based equipment rate decrease request and Cost-based service rate increase request 4. Letter from Cox Communications, August 30, 1996 5. Draft Complaint to Federal Communications Commission (Form 329, protesting upgrade-based rate increases) M:\HOMEIADMIN\CABLE\COXI13.101 /2-7 RESOLUTION NO. /)(I/Lj? RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA 1) DISAPPROVING UPGRADE-RELATED INCREASES IN MAXIMUM PERMITTED RATES FOR THE BASIC SERVICE TIER; 2) DIRECTING STAFF TO FILE A COMPLAINT WITH THE FCC ON BEHALF OF LOCAL SUBSCRIBERS REGARDING UPGRADE-RELATED INCREASES IN THE CABLE PROGRAMMING SERVICE TIER RATES 3) APPROVING PROPOSED COST-BASED RATE DECREASES FOR ASSOCIATED EQUIPMENT; AND 4) APPROVING PROPOSED COST-BASED INCREASES IN THE MAXIMUM PERMITTED RATES FOR THE BASIC SERVICE TIER WHEREAS, in May 1996, Cox Communications instituted a $3.79 increase in its Cable Programming Services (CPS or "expanded service") tier which charge is subject to FCC regulation, thus any complaints must be filed with the FCC; and WHEREAS, at the same time, Cox proposed to Maximum Permitted Rates for the Basic Service Tier, subject to City regulation; and raise its which is WHEREAS, both of these changes were based on costs to upgrade Cox's infrastructure; and WHEREAS, further cost-based increases in Maximum Permitted Rates were requested in July, along with decreases in the rates for associated equipment/installations (e.g. charge per installation; rental of decoder boxes, remote controls); and WHEREAS, a study by Public Knowledge, Inc. methodology in spreading its upgrade costs called into both the Basic and CPS share of the upgrade; and of Cox's question WHEREAS, said study also found the cost-based increases to be appropriately justified; and WHEREAS, accordingly, staff is presenting a recommendation to deny and/or protest the questionable upgrade- related rates, approve the equipment rate decreases and approve the cost-based service charge increases; and WHEREAS, on those portions of the rate requests with which the city disagrees, the FCC is the final arbiter and should Cox wish to institute such rate increases above the city's objections, they would be required to file an appeal with the FCC in conjunction with any rate increase; and 1 jv2 ~/t' WHEREAS, if the FCC finds in the City's favor, any overcharges would be subject to refund by Cox. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula vista does hereby 1) disapprove upgrade-related increases in maximum permitted rates for the basic service tier; 2) direct staff to file a complaint with the FCC on behalf of local subscribers regarding upgrade-related increases in the cable programming service tier rates 3) approve proposed cost-based rate decreases for associated equipment; and 4) approve proposed cost- based increases in the maximum permitted rates for the basic service tier. Presented by Approved as to form by ~ T)JI~~ JJo""r- ~ Moore, ~ctin~c~V-~ Attorney Gerald Young, Principal Management Assist C:\rs\cable.inc 2 /;2 - II Al6-27-1996 14'48 PUlLIC 1<1'0" = .I.~llw~ ......... PUBLIC KNOWLEDGE~ ATTACHMENT #1 3510SUNRIDGE DR. S. SALEM. OR 97302 (503) 581-<1878 PAX (503) 581.2026 28~ N.E. STAN'roN PORTLAND, OR mI2 (503) 1H7-7273 FAX (503) 1H7-7323 August 27, 1996 Mr. Gerald Y0W!8 City ofClJla Vista 276 Fourth Avawc CIm!a VlSta, CA 91910 Mr. Bob Ham City of Imperial. Beach 825 Imperial Beach Blvd. JJnperial B~ CA 91932 Ms. Leslie D_ and Mr. Park Morris City ofNationa1 City 1243 National City Blvd. National City, CA 91950 Dear Mr. Young, Mr. H8in, Ms. Deese aDd Mr. Monis: I have rrMewed the Federal I'nmmnnic;aUons Commission (FCC) Fonn 1240. (dated June 24,1996) and Form 1235 (corrected FonD. dstedMay t, 1996) submitted to the CitMII of Chula VlSta, Imperial BCllQh, and National City (franchising authorities) by Cox Coon""mjcatiODB (Cox). The purpoae of the Form 1240 is to set me;><imum permitted nates for basic 1CI'Vic:e and cable prow ..1"";"8 servicea (CPS) fOr a projected period (m this case, the period between October I, 1996 and September 30, 1997). The purpoae of the Form 1235 is to adjust I1Ita for cable DBtwork upgrades - Cox seelca to apply the Form 1235 to add an "upgnde" in...etOeDt to the mavin."" permitted mea det.d:miDed on ita Form 1240. The Cox fi\ingJ were identical. for these three ftancbising authorities. 1be fta/tr.hiAing authorities direc:t1y rc:auJato bllSic service mOl; the FCC regu1atc8 CPS rates, but UDder c:erWn eonditiona ftancbisinS authorities may IJis8er an FCC ~cw of the CPS rate by filing a proper complaint. 1 reviewed the Cox Form 1240 for compliance with the FCC rulea. chochrl the c;ak:ulati0DB, and a..-.oiI the ~ of certain IaIy data. Under the FCC rules Cox may adjust its mwYinnun permitted I1Ita to account for inflation, cbaDgea in external coatS (fOr .xarnpIe, pro8J8ll11Wq1J;....()ft COIU), IJId cIwme1lUlditiODB or deletion1. I twnd no material problems in the Form 1240. Under the Form 1240 system, the ftm:hising authorities wID have an opportunity a year fiom now to compare aotuaI COIUl I CONSUL71NCi AND lNI'ORMAT/OfV Sl!RV1C1IS FOR PUBlJC MANIIGl!MENT EX(,'/iI.UNCF. 1 . .. .. .. ~ ,:'." J~ -/2 ..I, ~ AL.G-27-10:r36 14' 4'" t"Ul:LJ.1. N'f ." t'1-.x. .L~OII~,"..,J r-.u..... to certain coats that Cox projcctod in this filing and to make adjustmllt1ts ICCOrdinsJY in the prospective maximUM pelmitted basic IeIVice rates for the sublcqueDt period. While 1 found the m.,.;nnlll\ I'""mitted basic service rate of$9.74 detamined OD the Form 1240 acceptable, 1 diHgroo with the inct... that Cox lOOks to Jdd to this rate and to the CPS rate based on the Form 1235 fiIinI tOr cable netWork upgrtdea. Cox roporta that it upsraded its cable system I<<IIinS tbeIe tnnl'biting authorities; provioualy the $yIteID had 450 MHz capacity, aDd now Cox reports 750 MHz. with SSG MHz 1ICtivated. TIaIa there wu a reported inc:reue of 100 MHz in ac:tMtccI capacity. I do not believe that Cox properly allocated the COSts of the upgnde in deterIDinin8 rate acIjuatmenU for regulated Nrvi~ on the Form 1235. P-,p'IWrlteMcca iDdudc the baic MrYice tier, which is cliIcc;t\y regulated by the fi'I",,1ti,.;ni IUthoritics, IDCI the CIbIc programming MrYi~ tier (CPS), which is replatcd by the FCC. RmIsonS that the Cc>>c allocations were not proper inc1udc the following: . The FCC roles dearly provide that subscribers should not pay for plant that is not used and uscfuI (see, for instaDcc, Second Report and Order, YIIBt Order OD llcconsidcration, and Further Notice of Proposed RulemaJdn& FCC 9S-S02, rdcascd January 26, 1996,136). In this case, 66.67 percent of the upgrade (200 MHz of the 300 MHz upgrade) is not wmntly II8cc! IJId useful. Yet Cox eo<duded only 20 pen:ent of the upgrade cost as not used and useful. The Cox rationale is that an upgrade to only sso MHz would aDepIly have cost about 80 percent as much (Cox estimate) as the ectual upgrac1e to 7S0 MHz. Thus Cox has lIppIied morglnal cost concepts to its aUOCItiOD (the contention that the marginal COlt of the 1ut 200 MHz of capacity addition is leas than the COSt of the first 100 MHz afthe upgrade). HOMNer, the FCC rules spccific:al1y require ajWly distributed cost aDocation methodology (- Report and Order and Further Notice ofProposcd Rulemaking. FCC 94-39, nrleuod March 30, 1994, , 226 11:). Under this approach, each unit of Jdded capacity should be treated as ifit COP the _ as the otbcr units of added capacity; ooe-tbird of the cost should be allocated to the firJt 100 MHz (which is used and weful), and two- thirds of the cost to the last 200 MHz (which is not used and useftaI). Unless the fiilly clistnlluted aUOCItion approach is applied, the rates paid by subsoribers to regulated savices included in the 100 MHz activated portion of the upgrade will include a disproportionately large share of cost compared to those: who ultimately use MlVices (Iilc.eIy to primarily be unrogt,l.t....) provided in the remaining ZDD MHz once it is activated; that is, there will be CfOIS tubsidics. . Once it had c:xd.uded 20 percent of the upsrW cost tor the 200 MH% not currendy activated. Cox allocated the mnainin& cost basccI on the total channel count by aervice tier (basic, CPS, .nd aD other) after the upgl'lde. Cox reports 74 activated chIIImcIs afttJrtheupgradc. including 18 buic, 41 CPS, and IS "other." So, Cor eownp1e, about 24.3 pm:ent (18 divided by 74) of the residual upgrade cost that Cox reported 116 used and useftaI was allocated to the basic tier. Yet Cox did not Idd Jm: basic -......J, in the upgrade _ there were 18 basic chaDnols both before and lifter. Upgnde colt8 may 2 .' . . /;1 / (/? Ii FI..O-27-1996 14' 56 PUlLIC I<IGLEDGE l:>tJ..:!<:t1"("r.323 P. fI4 be passed thrOUgh to IUbl<<ibeB only iflhc operator cIeJI10nItrates that the capital inveat1l1Ont aauaJly benefits ~bsa iben to regulatad services (Report and Order and FurtberNoticc: ofP>vposed '..1......"'''8. FCC 94-39, released March 30, 1994,' 287). In this cue, there is no demoDJtrBtecl benefit to basic service aubllClibers IIince the dwmcl allocation for the basic tier wu not changed by tho uppdo. ThcnCore, DOne of tho upgrade coat sbould be aIloc;etod to basic. Further, the aUocation between CPS and other seMcoa sbouIcI be bued on the cIwmel adcIitiODll directly usociatecl with the upgrad~ DOt thole on tile ayIItem ovcn11 (Cox IIready retXMII'I tbroush iU benchmark rates fbr' 1hc dIIIuae\J awiIIble before the uparade). . Cox did not indicate IIIX projmed revenue for the aetiv8ted c:apecity iavoM:d in the upgrade. The furm iDltructiona eaU for the operator to report projeQtod adverti&iDg, conuniIaion, 8Dd leased ICCOD reYCDICS, lIII0111 others. Cox'. clwmd Jin&.up indicates that two of tile 8ddecI chaJmels ue home shopping, and one isleued accoss; others undoubtedly r:arry advertising insertions for which Cox will be QIJIIIPCIISIted. If reported, projected revenue would be an ofISet to upgrade costs sbown on the Form 1235. The Cox projeetion or no added revenue is simply implausible based on the indicated clwme1 additions. . On previous FCC Form 1210s Cox Iw reported c1wmel additions on the CPS tier and increued its maximum permitted rates for 1hc CPs tier under the FCC's "caps" method for treating addoc1 c:bInnels. Cox bad used its fun S 1.20 "cap" (plus programming costs) for the added cbannds before filing this Form 1235. All but one of the channels that Cox added under the "csps" method wae IDIIdc available by the additioDall00 MHz that Cox actMted in 1hc upgnde iiom 450 MHz to SSO MHz (one channel was added before the upgn<le). By now cl.nning the upgrade oost that in part reIa1es to the CPS capacity usociated with the "cap" rate additions Cox would be reoo~ twice for the adcIed CPS c:apIICity. oooe in the "cap" addition and qain in the upgrade oost allocated to the CPS tier. This result could not bave reasonably been the FCC's intent, and ihould be c\lIriiied by an FCC review of this concern. As a consequence ofthelO concema, I recommend the following actions fur the thmchising authorities. . Approve a $9.741110'"""'111 permitted rate for basic service (ex:c:luding fi'anchise fees), but deny Cox III1Y addition to this maximum pennitted basic service me based on the Form 1235. . Submit a Form 329 complaint to the FCC regarcIing tile CPS tier. This complaint - ~ a ftanchisiJJg 1IUthority, but requires that at least two ~bBCribers have complained to the !iancbilling IIUthority within cortain time tram.. after the openIior bas c:.honv.d CPS rates (see attac\uneIIt); Cox reported a CPS rate increase in May, 1996. The FCC sbouId then resolve the proper allocation ofupgrade oosts to the CPS tier. 3 , , ..----- ',- ~._-'"- .~- /.2-/7 FU:;-27-1996 14':;e PUBLIC KHJI.. EDGE l:><>.><:trrr.JG) P.f15 P1eue contaet me at 503-287-7273 if you have any quflfltiOns. Sincerely, ~C.~ Jay C. Smith President, Public Know1edse. IDe. 4 TOTA... P.es /:2 ~ /_~ ATTACHMENT fr/~ #2 ' March 22, 1996 5159 Federal BOlJle',.ard San Diego, CalilQrnla 92105-5486 161911639151 Mr Jim Thomson Assistant City Manager City ofChula Vista 276 Fourth Avenue Chula Vista, CA 91910 cox COMMUNICATIONS Re Non-Upgraded Customers Dear Mr Thomson. In late February 1996, the Federal Communications Commission approved FCC Form ]235 This new form allows cable companies to recover costs associated with significant cable system upgrades which benefit customers of regulated cable services. Cox Communications San Diego's completed FCC Form 1235 is enclosed for your review. Customers who currently receive only our "Limited Basic" service will not be imDacted whatsoever by this filin~ Their monthly basic cable rate of$7.30 per month will remain unchanged Although the FCC Form 1235 permits significant increases in both the Basic and CPS levels of service, it is Cox's goal to achieve a uniform rate, in other words, Cox will simply charge customers in your city the same as those of all other surrounding cities who have similar levels of service The rate for the Cable Programming Services tier will increase by $3.79 This rate change is due to the recovery of our investment in the recent cable system upgrade For upgraded customers with a combined level of Basic plus CPS, that total monthly rate will be $26.99, as it is in surroundmg cities Enclosed please tind one copy of FCC Form 1235 that is being filed thirty (30) days prior to the aforementioned increase in the rate Cox charges for Cable Programming Services Also enclosed is a copy of the notice sent to our subscribers describing these changes. If you have any questions, please feel free to call me. Sincerely, w ons ce and Administration Enclosure FCC Form ]235, Customer Notice -I- /;2 -)~ March 22, 1996 Cox Communications 5159 Federal Boulevard San Diego, California 92105.5486 161911&3.9251 Non-Upgraaea l,;ustomers RE: YOUR UPCOMING CABLE UPGRADE & MONTHLY PRICES cox Dear Customer: COMMUNICATIONS In a recent bill, you received information about new channels and prices related to Cox's cable TV system upgrade. Please disregard that notice as the pricing information was incorrect. The following information will apply to your cable service once the additional upgraded channels are activated in your area The new revised price for Cox Classic service will be $26.99 per month. This adjustment will not be reflected on your bill, however, until you receive the new channels. A list of the new channels appears below. The cost for Cox Limited Basic will remain at the current low price of $7.30 per month. This adjustment will bring your billing to an equal level with that of all other upgraded households. We recognize concerns regarding price adjustments. Please be assured that this price is consistent with the Cox Classic price currently paid by Cox customers throughout San Diego County who receive the many new programs and services made possible through the upgrade Thank you for your continued business. Cox Communications is working hard to provide our customers with superior service. If our cable service is not meeting your expectations, please call us at 262-1122. Our representatives are available 24-hours- a-day, every day We can help youl Sincerely, William K. Geppert Vice President/General Manager NEW CHANNELS Ch. 62 Encore' Ch. 63 Travel Channel Ch. 64 Gems (Spanish Language) Ch. 65 MTV Latino (Spanish Language) Ch. 66 Home Shopping Network Ch. 67 ValueVision Ch. 68 IX Ch.69 Mind Exten. University Ch. 70 Outdoor Life Ch. 71 Continuous Hits 3" Ch. 72 ESPN2' Ch. 73 The History Channel' Ch.74 Turner Classic Movies' Ch. 75 Leased Access Ch.76 Continuous Hits 4" I Available in a package for an additional charge of $315 per month plus equipment II Pay-Pee-View Service -.;2- 1r'J.- /7 March 22, 1996 5159 Federal Boulevard San Diego Calr10rnia 92105.5486 (619)2639251 Mr. Jim Thomson Assistant City Manager City ofChula Vista 276 Fourth Avenue Chula Vista, CA 91910 cox COMMUNICATIONS Re' Upgraded Customers Dear Mr Thomson. In late February 1996, the Federal Communications Commission approved FCC Form 1235. This new form allows cable companies to recover costs associated with significant cable system upgrades which benefit customers of regulated cable services. Cox Communications San Diego's completed FCC Form 1235 is enclosed for your review. Customers who currently receive only our "Limited Basic" service will not be imDacted whatsoever by this filing Their monthly basic cable rate of $7.30 per month will remain unchanged. Although the FCC Form 1235 permits significant increases in both the BasIC and CPS levels of service, it is Cox's goal to achieve a uniform rate, in other words, Cox will simply charge customers in your city the same as those of all other surrounding cities who have similar levels of service The rate for the Cable Programming Services tier will increase by $255 This rate change is due to the recovery of our investment in the recent cable system upgrade For upgraded customers with a combined level of Basic plus CPS, that total monthly rate will be $2699, as it is in surrounding cities Enclosed please find one copy of FCC Fonn 1235 that is being filed thirty (30) days prior to the aforementioned increase in the rate Cox charges for Cable Programming Services Also enclosed is a copy of the notice sent to our subscribers describing these changes. If you have any questions, please feel free to call me. Sincerely, W~ William J Fitzsl m ns Director of Finan Enclosure FCC Form 1235, Customer Notice -3- /J-ff March 22, 1996 Cox Communication~ 5159 Federal Boulevard San Diego. California 92105 5486 Upgraded ItMrJfNers RE: YOUR RECENT CABLE UPGRADE & MONTHLY PRICES cox Dear Customer' COMMUNICATIONS As you know, the price you pay for Cox Classic service was adjusted when the addi- tional upgraded channels were activated in your area. This price was based upon then current federal rate regulations governing cable TV system upgrades But because of local circumstances governing cable TV in your area, even the new, higher price was artifically low for the services you are receiving. New federal telcom- munications rules recognize this inequity and, in fairness to all of our customers, we are adjusting your price accordingly. We recognize concerns regarding price adjustments. Please be assured that this price is consistent with the Cox Classic price currently paid by other Cox customers through- out San Diego County who are receiving our upgraded service. This adjustment will bring your billing to an equal level with that of all other upgraded households The new revised price for Cox Classic service will be $26.99 per month. This adjustment will be reflected on your next bill received after April 22nd. The cost for Cox Limited Basic will remain at the current low price of $7.30 per month. Thank you for your continued business. Cox Communications is working hard to provide our customers with superior service. If our cable service is not meeting your expectations, please call us at 262-1122. Our representatives are available 24-hours- a-day, every day. We can help you! Sincerely, William K Geppert Vice PresidentlGeneral Manager -L) - I ~-l1 -- . Federal Communications Commission Washington, D.C. 20554 Approved by OMB 3060-0688 Abbreviated Cost of Service Filing For Ceble Network Upgrades Community Unit or System Operating Name l~ommunitY Unit 10 . CUID(s) I Date of Filing Cox Communications San Diego CA0329 3/15/96 Name of Cable Operator COX Communications San Diego Mailing Address 5159 Federal Blvd. City I~tate l~iP Code San Diego California 92105-5486 Ownership of Franchise or System (Place an "XM to the teft or the appropriate answer,): X CoCorp Subchapter S Pannership Sole Proprietor Other Person to contact regarding this form: William Fitzsimmons Telephone I;ax Number (619) 266-5410 (619) 266-5540 Loca! Franchising Authority City of Chula Vista Mailing Address 276 Fourth Avenue City I~tate 1 Zip Code Chula Vista California 91910 This form is being filed for: (Check. One) X Pre - Approval OR Final Approval Note: If Final Approval filing, attach all Pre.Approval filings, if any, relating to the upgrade. Scope of Filing: (Check One) x Pre - Approval OR System Level Note: Cable System is defined in Section 602(7} of the Communications Act. -5- Page! or8 {J.-;<'6 FCC Form 1~35 February 1996 Federal Communications Commission Washington, D.C. 20554 Approved by OMS 3060...Q688 Abbreviated Cost of Service Filing For Cable Network Upgrades Part 1, Qualification for Upgrade Rate Adjustment A. Significanca of Upgrade Qualification 1. Does the upgrade meet the minimum technical specifications described in the Instructions for Part 1 Qualification for Upgrade Rate Adjustment, Line 1? x Yes No 2. If "No" was answered in question 1, attach a brief description of how subscribers to Basic and Cable Programming Service Tiers will benefit form the capital improvements. 3. Complete the following items to determine the cost of the capital improvement as a percentage of rate base (Investment in cable property, plant and equipment for the area over which the improvement will be usedl: A. B. C. The net upgrade rate base Total rate base after upgrade Percentage of upgrade to total rate base $ $ 27,298 41,754 65.38% B. Used & Useful Qualification If this form has been completed for a pre-approval, please skip to line 3. 1. . Has the upgrade been completed? Yes No 2. If question 1 was answered "yes" enter the date the upgrade was completed and began providing service to subscribers of regulated services: 3. If the Phased-in Approach is elected, attach a description of the subsections involved and the projected dates on which the upgrade will be completed and providing service to subscribers of rate regulated services within those subsections. Imperial Beach Sa n tee Chula Vista National City No,'-95 Feb-96 May-96 May-96 -fo- Page 2 ol:OS t;;l. - al FCC Fonn 123.:- February 1996 Federal Communications Commission Washington, D,C. 20554 Approved by OMB 3060-0688 Abbreviated Cost of Service Filling For Cable Network Upgrades Part II. Upgrade Revenue Requirement Computation (a) (b) (e) 1. 2. BST f!:~-::'~' ._~iit.~~;;,;+; JI._..... ,,~ Net Upgrade Rate Base (Worksheet A, line 4e) Return on Investment a. Rate of Return Percentage b. Computed Return on Upgrade Rate Base (line 1 x Line 2a) Allowance for Income Taxes a. Federal Income Tax Rate b. State Income Tax Rate c. Computed Return on Upgrade Rate Base (line 2b) l' d. Interest expense related to upgrade (Worksheet A, line ge) e. Distributions (Non.C Corp. Filers Only) f. Contributions (Non-C Corp. Filers Only) ;.., 3. ....~., ;---~;...".-..~ .::1t:'.";..:."_::::......~ 35.00% 9.30% 597,601 248.336 :-;. ii~~...~- .~ !E;.~~-:;?-: "'~"'"'f. "'~~.~ ~~;..:"':'-:' 4. g. Return Amount subject to income tax h. Income Tax Allowance Projected Net Impact of Upgrade on Operating Expenses (Worksheet A. line 8e) Net Revenue and Income Adjustments Related to Upgrade (Worksheet A, Line 12e) Total Upgrade Revenue Requirement (Line 2 + 3 + 4 + 5) 349,264 795,546 4":'0~~-v:- :~~~. 7..:. .' ~ _n. r ;,?'. ~/'-~~'~;- 257,371 586,233 459.9i3 1.047,717 0 0 -~-=--._.- 5. -~.. -'_~.;"~,' ,~:tc!r ;.~,~- ~-*I ~_...~ f~~ 7\'~~ . -.." ":;;'.';- 1.314.9-15 2.995,152 :'1_:$.-:-.:":;':::::-..' ~-::~~<;~~'.i:.""'.o':.' 6 ",-:.:-;,i~.~~:'.:::~ Part III. Allocation of Upgrade Revenue Requirement to Basic and Cable Programming Service Tiers 10) Ibl lei BST CPST.l CPST . 2 Total 1 Upgrade Revenue Requirements. (Part II, Line 6) 1,314.945 2.995.152 4,310.096 2. Number of Subscribers 63,229 61.920 3. Annual Revenue Requirement Per Sub (Line 11 Line 2) 20_7965 48.3713 69 !679 4. Monthly Network Upgrade Add-on (Line 3 I 12) 17330 40309 57640 5. Selected method of subscriber recovery: (Check One) . Provide description for allocation of CPST Revenue Requirement to CPS Tiers: CERTIFICATION STATEMENT WILLFUL FALSE STATEMENTS MAKE ON THIS FORM ARE PUNISHABLE BY FINE AND/OR IMPRISONMENT IU.S. CODE TITLE lB, SECTION 10011. AND/OR FORFEITURE IUS CODE, TITLE 47, SECTION 5031. I certify that the statements made in this form are true and correct to the best of my knowledge and belief. and are make in good faith. Name and Title of Person Completing this Form: Sign tute;' If. William Fitzsimmons. Director of FinfJnct & Administration Date: 3/15/96 Telephone Num er (619) 266-5-11 - '7~ Pagl.: 3 018 FCC Form 1235 February 1996 I ~ -~~ Federal Communications Commission Washinglon, D.C. 20554 Approved by OMS 3060.0688 Abbreviated Cost of Service Filing for Cable Network Upgrades Name of Operator: Cox Communications San Diego CUID (s): CA0329 Worksheet A Cost Assignments and Allocations (part 1) Date of Filing: 3/15/96 ($ OOO's) Directly Assigned Cost Elements Balance Ib) Line Number and Description la) BST CPST - 1 CPST - 2 All Other 1. Plant and Equipment 26,076 5,215 2. Allowance for Funds Used During Construction 1,222 244 3. Other Adjustments 0 0 4. NET UPGRADE RATE BASE (Sum Lines 1 - 3) 27,298 0 0 0 5,460 PROJECTED: 5. Change in Plant Related Operating Expenses 7] 0 6. Change in Plant Related Support Expenses 0 0 7. Upgrade Related Depreciation Expense 2,275 455 8. PROJECTED NET IMPACT OF UPGRADE ON OPERATING EXPENSES (Sum Lines 5 - 7) 2,346 0 0 0 455 9. INTEREST EXPENSE RELATED TO UPGRADE ],276 255 PROJECTED: 10. Other Cable Revenue 0 11. Other Adjustments 0 12. NET REVENUE AND INCOME ADJUSTMENTS RELATED TO UPGRADE (Sum Lines 10 - 11) 0 0 0 0 0 --1- Page"; o! 8 I :A - ,;(3 FCC Form 1235 FebruaJ) 1996 ,. I Federal Communications Commission Washing'on, D.C. 20554 Approved by OMS 3060-0688 Abbreviated Cost of Service Filing for Cable Network Upgrades Name of Operator: Cox Communications San Diego CUIO (s): CA0329 Worksheet A Cost Assignments IInd Alloclltions (part 2) Date of Filing: 3/15/96 ($ ODD's) Allocated Cost Elements Allocation (c) Key Line Number and Description BST CPST - 1 CPST - 2 All Other (d) 1. Plant and Equipment 5,074 11,558 4,228 1 2. Allowance for Funds Used During Construction 238 542 198 I 3. Other Adjustments 0 0 0 4. NET UPGRADE RATE BASE (Sum Lines 1 - 3) 5,312 12,100 0 4,427 PROJECTED: 5. Change in Plant Related Operating Expenses 17 39 14 1 6. Change in Plant Related Support Expenses 0 0 0 7. Upgrade Related Depreciation Expense 443 1,008 369 I 8. PROJECTED NET IMPACT OF UPGRADE ON OPERATING EXPENSES (Sum Lines 5 - 7) 460 1,048 0 383 9. INTEREST EXPENSE RELATED TO UPGRADE 248 566 207 I PROJECTED: 10. Other Cable Revenue 11. Other Adjustments 12. NET REVENUE AND INCOME ADJUSTMENTS RELATED TO UPGRADE (Sum Lines 10 -11) 0 0 0 0 -.9- Page 5 of8 l?.-~L[ FCC Foml 1235 February J 996 Federal Communications Commission Washington, D.C. 20554 Approved by OMB 3060..0688 Abbreviated Cost of Service Filing for Cable Network Upgrades Name of Operator: Cox Communications San Diego CUID (5): CA0329 Worksheet A Cost Assignments and Allocations Date of Filing: 3/15/96 ($ OOO's) Total Cost Elements (e) Line Number and Description BST CPST - 1 CPST - 2 All Other 1. Plant and Equipment 5,074 11,558 0 9,444 2. Allowance for Funds Used During Construction 238 542 0 443 3. Other Adjustments 4. NET UPGRADE RATE BASE (Sum Lines 1 . 3) 5,312 12,100 0 9,886 PROJECTED: 5. Change in Plant Related Operating Expenses 17 39 0 14 6. Change in Plant Related Support Expenses 0 0 0 0 7. Upgrade Related Depreciation Expense 443 1,008 0 824 8. PROJECTED NET IMPACT OF UPGRADE ON OPERATING EXPENSES (Sum Lines 5 - 71 460 1,048 0 838 9. INTEREST EXPENSE RELATED TO UPGRADE 248 566 0 462 PROJECTED: 10. Other Cable Revenue 0 0 0 0 11. Other Adjustments 0 0 0 0 12. NET REVENUE AND INCOME ADJUSTMENTS RELATED TO UPGRADE (Sum Lines 10 -11) 0 0 0 0 (part 3) -/0- Page 6 of 8 /'J.~M FCC Fonn 1235 February 1996 Federal Communications Commission Washington, D.C. 20554 Approved by OMB 3060..0688 Abbreviated Cost of Service Filing for Cable Network Upgrades Worksheet B: Allocation Key Name of Operator: Cox Communications San Diego Page 1 of 1 Franchise CUID: CA0329 Organizational Level: Date of Filing: 3/15/96 Allocation Allocation Methodology Dascription Key (a) (b) 1 Channels Post-Rebuild Channels Percentages Basic 18 24.32% CPS 41 55.41 % NCPS-alacarte 4 5.41% NCPS-Premium II 14.86% 74 100.00% I , , , - 11- Pag~ 7 of 8 )::z-~~ FCC Form 1235 February 1996 Federal Communications Commission Washington, D.C. 20554 Approved by OMB 3060-0688 Abbreviated Cost of Sarvice Filing For Cable Network Upgrades Worksheet C: Supplemental Data Name of Operator: Cox Communications San Diego Page: of Franchise CUID: CA0329 Date of Filing: I 3/15/96 Org Level: Date of Report: I For each of the following property and equipment categories state the gross depreciable balance resulting from the upgrade along with the average depreciation life which comprise the property and equipment balance reponed in Worksheet A. Cost of Method of Description Upgrade Years Depreciation 1. Headend 2. Transmission Facilities and Equipment 3. Distribution facilities (Trunk, drops, etc.) 4. Circuit Equipment (amplifiers, power boosters, etc.) 5. Maintenance Facilities (garages, warehouses, etc.) 6. Maintenance Vehicles and Equipment 7. Buildings (office) 8. Office Furniture and Equipment 9. Total Upgrade Rate Base If you wish to disaggregate any of the above because they are not readily combined or if you wish to add others not shown, report such below: Cost of Method of Line Number Description Upgrade Years Depreciation 10. (Specify) Aerial Distribution 6,028,399 12 Straight-Line 11. (Specify) Underground Distribution 8,440,771 12 Straight-Line 12. (Specify) System Design & Engineering 727,686 12 Straight-Line 13. (Specify) Aerial Fiber Distribution 1,605,978 12 Straight-Line 14. (Specify) Underground Fiber Distribution 6,786,574 12 Straight-Line 15. (Specify) Optical Electronics 2,486,104 12 Straight-Line ~/2- Page 80f8 J;;Z-;Z? FCC Form 1235 February 1996 Assumptions I I i , I I ! Assumptions used in Worksheet A 1 I I I I I I I i , I i I I I Column (a) - Total Assigned Costs i , , i i i I Line 2 - Allowance for Funds Used Under Construction I I I Assumes that total rebuild costs of$26,075,512 is spent evenly over a 10 month period (June 95 through April 96). I I , I Actual Calculation: i i I I I I 1$26,075,512 x 11.25% /12 months x 5 months - $1,222,000. , I I I I I Line 5 - Plant related Operating Expenses I I Estimated annual net increase in power costs of $71,148.1 i I T i ! I I , I Line 7 - Upgrade related depreciation expenses. I i I I i ,All upgrade costs are depreciated on a 12 year straight-line basis. I , , I I , I I I I I Line 9 - Interest Expense , , ;Assumes a capital structure of 55% debt a 8.5% cost if debt. This is consistent with the FCC's assumption in detennining the allowed 11.25% rate ofretum on rate base. , , Column (b) - Directly Assigned Costs Elements , i Other i I . , Although the rebuild will increase plant capacity from 450mhz to 750 MHz, only 550 , MHz will be activated immediately, the additiona1200 MHz capacity will be reserved for future use. The incremental cost of this additional capacity (approximately 20% of the total cost) has been directly assigned to the OTHER ! category . -,,/3- Page 1 ),--:<.fr 5159 Federal Boulevard San Diego. California 921055486 161912639251 May 1,1996 cox COMMUNICATIONS Mr. Jim Thomson Assistant City Manager City of Chula Vista 276 Founh Avenue Chula Vista, CA 9]910 Re FCC Form 1235 - Correction Dear Mr. Thomson: Enclosed please find a correction to page 3 of8 for the recently filed FCC Form ]235. The change is to Pan III, line 5 where we inadvertently omitted checking off the method of subscriber recovery we elect If there is anything else that I can do for you, please let me know Sincerely, W~ff994?!~/;r7~ William J Fitzsimmons Director of Finance ~/ 'f- )))-)).7 Federal Communications Commission Washington, D.C 20554 Approved by OMB 3060-0688 Abbreviated Cost of Service Filling For Cable Network Upgrades Part II. Upgrade Revenue Requirement Computation (a) (b) (e) eST CPSTs eST CPSTs 5. 586,233 1. Net Upgrade Rate Base (Worksheet A, Line 4e) 2. Return on Investment a. Rate of Return Percentage b. Computed Return on Upgrade Rate Base (Line 1 x Une 2a) 3. Allowance for Income Taxes a, Federal Income Tax Rate b. State Income Tax Rate c. Computed Return on Upgrade Rate Base (Line 2b) d. Interest expense related to upgrade (Worksheet A, Line ge) e. Distributions (Non-C Corp. Filers Only) f. Contributions (Non-C Corp. Filers Only) g. Return Amount subject to income tax h. Income Tax Allowance Projected Net Impact of Upgrade on Operating Expenses (Worksheet A, Line Be) Net Revenue and Income Adjustments 4. 459.973 1.047,117 Related to Upgrade (Worksheet A, Line 12e) 6. Total Upgrade Revenue Requirement (Line 2 + 3 + 4 + 5) o 2,995,152 ~ Part III. Allocation of Upgrade Revenue Requirement to Basic and Cable Programming Service Tiers 101 (bl lei BST CPST -, CPST - 2 Total 1. Upgrade Revenue Requirements. (Part II, Line 6) 1,314,945 2,995.152 4.310.096 2. Number of Subscribers 63,229 61.920 3. Annual Revenue Requirement Per Sub (Une 1 I Line 2) 20.7965 483713 69.1679 4. Monthly Network Upgrade Add-on (Line 3 I 12) ] 7330 4.0309 5.7640 5. Selected method of subscriber recovery: I x I x I . Provide description for allocation of CPST Revenue Requirement to CPS Tiers: CERTIFICATION STATEMENT WILLFUL FALSE STATEMENTS MAKE ON THIS FORM ARE PUNISHABLE BY FINE AND/OR IMPRISONMENT (U.S. CODE TITLE' B. SECTION 1001). AND/OR FORFEITURE (US CODE. TITLE 47. SECTION 503). 1 certify that the statements made in this form are true and correct to the best of my knowledge and belief, and are make in good faith. Name and Title of Person Completing this Form: Signat 3/15/96 ( !<~~- William Fitzsimmons. Director of Finance & Administration Date: -/5'- page3 of 8 FCC Form 1235 February 1996 / :< - 3~ ~~~ :: rdh _ ~- ~- ~~~~ CllY OF CHUlA VISTA OFFICE OF THE CITY MANAGER May 16,1996 Mr. William 1. Fitzsimmons Director of Finance Cox Communications 5159 Federal Blvd. San Diego, CA 92105-5486 RE: Extension of Review Period for Cox Communication's FCC Form 1235 Dear Mr. Fitzsimmons: On March 25, 1996, the City of Chula Vista received your March 22 letter transmitting your FCC Form 1235, which is dated March 15, 1996. As you know, Cox had inadvertently omitted checking off the method of subscriber recovery that Cox was electing on item 5 of part III on page 3 of the FCC Form 1235. Based partially on this incomplete aspect of Cox's Form 1235 and partially on a discussion I had with another representative of Cox, I was under the misunderstanding that Cox was not intending to increase the rate for the Basic Service Tier or the maximum permitted rate for the Basic Service Tier. At that time, I thought that Cox intended to allocate all of the subscriber recovery shown on the Form 1235 to the Cable Programming Service Tier. In subsequently discussing this issue with you later in April, I learned for the first time that Cox was actually intending to increase the maximum permitted rate for the Basic Service Tier, so I asked you to send me a corrected version of page 3 of the FCC Form 1235. On May 6, 1996, the City ofChula Vista received your letter dated May 1 transmitting the corrected page 3 which does indicate on part III, Item #5 that the selected method of subscriber recovery selected by Cox involves both the Basic Tier and the Cable Programming Service Tier. I therefore consider May 6, 1996 to be the date that Chula Vista officially received the Form 1235 that indicated Cox intended to increase its maximum permitted rate for the Basic Tier. This letter is to advise you that as provided for in Section 76.933 of the FCC Rules, the City ofChula Vista is extending the review period by an additional ninety days (i.e. through September 3, 1996) in order to obtain additional information and perform a thorough review of the Form 1235. Please contact me at 691-5031 if you have any questions. Thank you for your assistance in clarifying this issue. 1i']Y' 1m Th7!--- Deputy City Manager JT:dt -/ ~-' M \HOME\ADWN\J1\FORMI235.COX 276 FOURTH AVENUE' CHULA VISTA' CALIFORNIA 91910 . (619) 691-5031 . FAX (619) 585.5612 .j;~P\::I!;1~~P'tf" 1:1-81 ATTACHMENT #3 JUL 8 1996 July 2, 1996 5159 Federal Boulevard San Diego, California 921055486 (6191263.9251 Mr. Jim Thomson Deputy City Manager City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 cox COMMUNICATIONS Re: Annual Notice of Rate Adjustment Dear Mr. Thomson: Enclosed please find FCC Forms 1205 and 1240 in connection with Cox Communications San Diego's annual rate notification for its Basic Cable Services and regulated equipment tiers, effective October I, 1996. With this FCC form 1240 filing, in conjunction with form 1235 filed on March 22,1996, Cox will increase the maximum permitted rate (MPR) on Basic from $9.47 to $11.47. The $2.00 MPR increase is due to past and projected expenses related to $.35 in inflation, $.12 in external costs, $1.20 in channel moves, and $.33 in true- up adjustments. Also effective October I, 1996, Cox will increase the maximum permitted (MPR) rate on the Cable Programming Services (CPS) tier from $2Ll7 to $21.21. The $.04 MPR increase is due to $.48 in inflation, $.41 in channel additions, $.33 in external costs, ($1.24) in channel moves, and $.06 in true-up adjustments. At this time. Cox Communications does not plan to increase the rates currently charged to our customers for Basic and/or CPS levels of service. The enclosed form 1240 rate filing involves only the setting of MPRs. However, please note that based upon the enclosed Form 1205, we will adiust our equipment rates charged to our customers to the new MPR, effective October I, 1996. The new hourly service charge will be $31.03. The new monthly decoder rate will be $2.51; converters will be $1.40; and remotes will be $.28. Please feel free to contact me if you have any questions. Sincerely, Enclosure: FCC Forms 1205, 1240 ---j 7- ! :;{ - 3~ COX COMMUNICATIONS CHANGE IN REGULATED RATES FCC FORM 1240 (AND ASSOCIATED FCC FORM 1210 AND 1235) BASIC CPS TOTAL Form 1210-Upgraded (Filed 11115195) $ 7.74 $ 17.14 $ 24.88 Form 1235 (Filed 3/22/96) 1.73 4.03 5.76 Current MPR as of 4/22/96 9.47 21.17 30.64 Form 1240 (Filed 7/3/96) 9.74 17.18 26.92 Form 1235 (Filed 3/22/96) 1.73 4.03 5.76 New MPR as of 1011196 11.47 21.21 32.68 Change in MPR 2.00 0.04 2.Q4 -/'3-- )/) -33 Federal Communications Commission Washington,D.C 20554 FORM 1205 DETERMINING REGULATED EQUIPMENT AND INSTALLATION COSTS "EQUIPMENT FORM" ommumty mt enll e, \ I 0 ca e system CAOJ29 07/01/96 Name 0 a e perator at"o onn ubml!SlOn COX CABLE SAN DIEGO almg peralo' 5159 FEDERAL BLVD. Ity SAN DIEGO Namcan It eo person comp etJng William Fitzsimmons. Director of Finance & Administration eep onenum Fa."Num or ameo Lac ranc Ismg ulonty 619-266-5410 619_266_5540 CITY OF CHULA VISTA MalmgA TeSSO ran ISIng U onty 276 FOURTH AVENUE '" CHULA VISTA 1. This form is being liIed: [Enter an "x" in the appropriate box] Din conjunction with FCC Fonn 12()O, FCC Fonn [220, or FCC Fonn 122<; Attach the completed FCC Fonn 1200, FCC Fonn [220, or FCC Fonn 1225 to the front of this fonn OR [KJln order to fu]tiU FCC rulcs requiring an annual filing of this fonn Enterthe date on which you last filed this fonn I 02128/9<; I(mm/ddlyy) Nole This should be the date on which the rates last justified, bv using either FCC Fonn J'n or the prior filing of this fonn, were in dfcct 2, Enter the date on which you dosed your books for the fiscal year reftected in this form: Note ThiswiJlindicatetheendofthe ]2-month fiscaJ year fo, which vou are filing this fonn 3. Indicate the corporate status of your cable system [Enter an "x" in the correct box] ~c_co"om"o" SubchaptcrScorporation Partnership Sole Proprietorship Other[Plcascc'<plainbc]ow] Pagel .//7- Exrel40Win,Version2.0 J2!3J/95 Approved by OMB3060-0592 E><p;rc,.4110N1 ICmm/ddlyy) FCCFonn ]205 May 1994 );;{-3t Fr:d~roI Communications Commission Wenington,D,C.20554 SCHEDULE A: CAPITAL CO!ITS OF SERVICE INSTALLATION AND MAINTENANCE OF EQUIPMENT AND PLANT a,ntenanc( therl. ther ~. A Equ;pmenlandP]ant Vehicles Tools Facilities (Specifybdow) (S....c;Cybdow) B Gros. Book Vaiue SI,202,51<J00 $405.942,00 $]51,36500 C A,cumu!atedDel'reciation S264,&43,00 S202.'71OO S105,955.oo D Dcfe=dTa.'<C. (S30,569,00) SJ3,312 00 S3,409,00 E Net Book Value [B-(C+D)] S96i,240.00 R>\Ie of Return G Calculatio" ,,(Gru$$-UP Rtlle G' fr:der:LIlncomeT:Lx Rate G2 Swe Income T a.x R.;u~ OJ Net Total InoomeT<l.X Rate {(G!+G2)-{GI X 02)[ G' AdjusunenCtoR.ctlectlnten:SlDcduaibility G4, ActuaJlntere$tAmount SI0,039,097.oo G4b Total Net AsSl:IS S260,518,&41,00 G" Base Return on [nvesunent Amount [G4b ~ f] 129,308,310 G4d Intcn:stDcductibilityF;u;tor[G4a/G4c1 GO Effi:ctiveTa.xR= [G3 ~(!-G4d1] [C-CarpsskiptaG11 Go Adjustments for Non.C Co'VOrations GOd Base: Return an Investment Amounl (G4c] Gob DIStributions GOo Conlributions(maynolcxcecdG6b) GOd Returns Subject to Income T:LX [G6a-G6b+G6c) GOo ReturT\5 Percentage Subject 10 Income Ta.... [G6dIG63] G1 Gross-Up Rate [C.corps: 1/(1.05) Other: Il(l-(GS:,,: G6e>H H G/'OUCd,UI'R=ofR.cNm{fxG7[ (>-1541 Return on Investment Grossed_Up forTa.xcs[E ~ H! SI49.1S3-.l141 S26,13! 11~5 $6,4114905 00.00 00.00 Cum:nt Provisian far Dcprcciation $264,84800 $8U81,00 S1.56800 K AMwlCapitaICo'<ts[!+ll S414;OH8141 $101,319.1185 S14,OJ9.49a5 SOW 50.00 , GRAND TOTAL Jsum or Line K enln""! SS35.,J93,OSYT BasI. SjlCcify:Othcr] Specity:Otherl. A Annual 01" Expense. fur Svc. Insto.JL and Maine. of Equip S7,585,Q38,00 B GRAND TOTAL [sum or Line Aentrin[ $'9,633,359,00 Bas 2. Supplies S666,llO.oo Spccify:Other2. Specity: Other] Outaide labor, Auto Operate, NOlI ~mcd con\'<:rtel'S,Misc Support Cost. (Spccifybclow) 00.00 Pagel -;20- Excc!4,OWin, Vel'Sion2,O )-;.-35 Approved by: OMB 306M592 expin:.:4130197 FCC Form 1205 M3y]994 Feder;s! Communication! Commission Wuhiagton,D.C. 20554 ApprovcdOy'OMB306()...(1S92 E;~pirc:s: 4130191 SCHEDULE C, CAPITAL COSTS OF LEASED CUSTOMER EQUIPMENT A Equipm"nt Remole 1 RemOI" 2 Remol") Converler I Converter 2 Converter 3 Other Equip , Tot;IJ Maintl:nallo:/Serv;ce Hours (AttaclI E.,-pI3l1ation) 13,348 4.720 31.525 C TotaJ II ofUniu in Service 245,)23 50.938 273,716 D Gross Book Value 1.958.376 3,923.502 35,714,361 Ae<:umulabOdDcprc:cianon 1,188,481 2.914,937 23.126.2]2 Defem:dTa.".:s 59,483 121,449 118.911 G NctBookVaJue (D-(E-.-f)1 $110,406,00 so 00 H Grosl"d-UpRatcofRcturnIFrnmSchcd A,LineHI iUS4t Return on Investmenl Grolsed-Up forT:w:s (G ~ HI $109,458,951 $0,00 SO.OO $121.287411.87 :U.828.1'I5 so 00 SO.OO Cum:nt Pmvision for Dc:pn:ciation 299,136 581,318 5,239,436 K Annual CapiuJCMtS[t+JI S4OS,S94,9S1 SO.OO so 00 $7OS,60S S1.Q68,.231 SO.OO $0.00 GRAND TOTAL '"um o( Line Kallri",,[ $8,1.5,431.7923 IkIIJ, SCHEDULE D: A....ERAGE HOURS PER INSTALLATION A. A"""""e Hours per Unwircd Home IrmaIlalion (.nach an e>q>Jarullion) , , Ave",!!" Hours per Pr<:-Wircd Home lnstallation (attach an explanation) " C. Ave"'!!e Hours per Additional Connection Installation IU. Time oflnitiaJ Installation (attach an e~plarullion) 0,65 D Ave"'!!e Houn per Additional COMecUoo InstaIlarion Requiring ScpamIc Installation (anndI 311 expbn.uion) 0.7S E Otherlnstall.uion (by1!emType) [!em I. ISpeci(y:) Ave",!!" Hours per In.lallation (attach an e.~planation) I 0.65 t!em2.(Specify:J Avcrage H""rs per Install.uion (attacllanexpl;JtUltion) I 0.2S ttcm3.(SpeeifycJ Aver.\ge Hours per InstaJ~on (attach an explanation) I 0,7S - ';::21 - Pag,,) E1<ccI40Win, Version20 );). -3~ FCCFofTrl 120S May 1994 Federal Communicuions Commiuion Washingtoo,D.C. 20554 Approved by' OMS 3060-0~92 Expi='4130197 WORKSHEET FOR CALCULATING PERMITTED EQUIPMENT AND INSTALLATION CHARGES STEP A. Hourly s..n.ice Charge I TouJ CapiuJ Cmu oftnstallation:md Maintenance [Schedule A, 80" II 2 TouJ Annu31 OpcJ1lting E"pense,fur Installation and Maintenance [Schedule B, Bo" 2] 3 TouJ Capit3l Costs and OpcnuingExpcnses for Installation and Mainlenance [Line I + Line 21- Cuswmer EI1uipmcnt and Installation Pcm:ntlgc (attu;h an e:tplanation). Ann...u Customer EI1uipmcnl Maintcl1ance and Installation Costs, Excluding Com of Leased EI1uipmcnl [Lino: 3 .X Line 4J Total uoor Hours fur Maintcl1ance and IlISIallation of Cu!rtomer EI1uipmcnl and Se.....iccs (attu;h explanalion) Haurly Scrvicc CharJle (HSC) (Line 5/Linc 6) $535,393.0837 SQ.fi.38,J59.00 SI0,173,752 I SIO,!1J,13-2 317,827 $3\;033<} METHOD OF BILLING fOR INSTALLATIONS (pia... an "s" in thc appropriate bas, hmaUations billed by the hourbascd 00 the HSC calcul:1fcd in Line 7. X InsWla1ions billed as" nandard clwgc. STEP B. In,taUation Cha!1:c 8. UlllfonnHSCfurall;nstallations(From Step A,!ine7) OR A~c~e Cbarge for Installa1ion Type. ,;. ,,1 HSC[linc7] U. A~eragc: H....n per Unwircd Horne Installation (Sdtcdule 0, Line A) aJ. Ctwgc per Unwinod. Home Installation [3.1 "all S]],&339 I. .t. Unwi~ Home Installar.ion bP~i~HolnClnstaJlation bl. HSC [Line 1] b2. A~ Haul'! pcr Prc-wi~ Home Installation (Schedule D, Line B) b3 Charge pcrPrc_in:d Horne Installation[bl "b2] $31.0339 oJ c. Additional Ulnncaion IlISIaIlation ar. Tlmc oflni~ InsQIlation eI.HSC{Linc71 c2. Ave~e Haul'! per Additional Conncctioolnstallauon at Time of Init Install, !Schedule 0, Unc C] c3.Chary;cpcrAdditionalCanncc:tianlnstdlational.Timeof lniti3.l1nstdlationlc!xc21 $)l.O339 O.t'i~ d.Additional ConnectionlnstaUation RcquiringScpar.w:lnstallation dl.HSC[Line71 dl. A~g. Moun pcr Additianal Connection Installation Rcq. Scpo Install. {Schedule 0, l.ine 01 d3 Chary;epcrAdditionaiConnc<:tion Installation RcquiringScpal'3tClnstallationldl Kd21 $31.0339 tl75 e OtherlnstallaUon.(A..pccilicdinScheduleD,l.incE) eLHSC[Line71 ~. Avenge Hours pcr llISIallation of Item I (Schedule 0, Line E.1!em IJ c3. Clwgcpcr InstaJlationofltem 1 [e!" ell S31.0339 O.6~ ~ HSC(Linc7[ e~ Average Hours per Installa1ion ofltem 2 [Schedule 0, Line E,IICm 2) .:6. Chargc pcr installation of Item 2{c4" e~1 531.0319 O,2~ e7. HSC [Line 71 cH. Ave~e Houl'! per Installation of IICm 3 {Schedule 0, Line E. l!em 3] ~. Clwgcpcr Installa1ionofltcm 31c7 ,.cHl 531.0319 O.7~ --2,;<- Page 4 &;ccI4.0Win, Vcrsion2,0 FCC Form 1205 May 19901 I'J. -37 f<:d~r.U Communicar.ions Commission Washingcon,D.C. 20554 TEPI. Ch.'1.es orluoedlUmotes . , (C.lcul.lcscpnalc.Jyforuchsicnifiundydiffcrcnllypc) Rcmolcl RemO{~ 2 RemoIC:3 " Tow Ma.inlC:nan='S~rvice Hours [CotNsponding column from Sch.:dlll~ C, Lin~ H[ 13348 " 0, II. HSCILine7j $JLOH9 $3t.OH9 S3LOH9 n TomJ Maintenanc:eJServicc Cost fLine 10.~ Lin~ II] SoII4.14IU684 50.00 SO 00 13 Annual CapimJ Costs [Co=sponding column from Sch.:du!~ C, Line K] $408,59.4:"951 "'.00 $0;00 " TomJ CostofRemolC: lLine 12 + Line 131 5812,835;5253 $0.00 "'.00 IS. NumberofUoits in S~rvicc [Corrnpondim! column from Schedule C, Line CI 245323 O. 0 " Un;tCost [Line 14/Linc ]5] 53.354] $0,00 "'.00 11. Race per Month [Line 161(12)] $0.2795 50:00 SO;{jQ [STEP D.--r"arres (or lused Con~ertcr ... . Con~rter2 , (C.leulale$ep.r'lc.Jyforeachsicnifiundydifferenltype) C<!f!~ertcr I Convener) " TomJ MainlC:nanc:eJServicc Hours [Com:sponding column from Schedule C. Line HI 4720 3751j. O~ 19 HSC [Line 7) S3I;0339 S31.0339 $3L0339 20 TDmJMainlenOlllCCl'ServiccCost [Line IS" 19) $146,480:033'2 51,164,541.2916 SQOO 2! Annual CwimJ COSlS [ColTCspondinll column from Schedule C. Line K) S708.605- S7,068;13t "'00 " TomJ CostofCon~rtcr{Une 20+ Line 211 5855;086 58,132,779 $0.00 B Number of Units in Semcc [Com:sponding column from Schedule C, Line CI 50938. 273716. O. " UnilCo$!. [Line 22/Linc 23] 1.16.7168- $30.0713 SO.OO " RaleperMonth [Linc24/(12)1 SL39119 SU065 "'.00 STEP E. Chutes ror Olher Leued uip....enl 26. Tow MainlC:nancclService Hours [Corresponding column from Schedule C. Line HI H HSC [Line 7] 28 TomJMainl(:nancclServiceCo$!. [Linc26 " Line H] 29 Annual CapimJ COSlS [Correspondin <;o!umn from Schedule C. Line KI 30 Tow CostorEquipmenl [Line 28+Unc291 31 NumberofUnits in Service [Com:spondillg column from Schedule C, Line CJ n. UnitCosl [Un~301Line31] 33 R31eperMonth [Line 321(12)[ o $310339 "'.00 $It{l() SO.OO: o "'.00 "'.00 METHOD OF BILLING FOR CHANGING SERVICE TIERS OR EQUIPMENT {pl.COIan "s";n the appropri.te bllSl X as 3. Nominal Clwge (Enter the nominal charge: in LIne 34) as 3. Uniform Hourly Service C/wie as "" A....~e Cbarge (EnlC:rthe Average Hours ror Changing Servicc Tiers iu LIne 36b) STEP f. Charres (or Chaneine Sen-iu Tien or Equipment 34 Nominal CharJ!e for Changing Service Tiers Ir~ouusc""ese3.Ia1inglC3.leofchargcs.pl_an-".inthebox;J[thenghl. OR 35 Uniform Hoo.Irly SeNicc Clwge OR $2.00 ., )6 A~e"'!leChargeforCh.angin Se....iceTiers 36a.HSC{Line71 36b. A....rage Hours co Cbmge Servicc Tiers 36c,A....rageClLargerorChangingSCrviceTiers{Linc363xLinc36b[ $31.0339 -~3- Page 5 Exc.:14,O\1lin, Version 2.0 J:)-~ Apprnv<:db}..OMB3060-0S<,)2 Expin::s,4/30!97 FCC form 1205 May 1994 Federal CommuniQtjoos Commission Washingron,D,C.20SS4 WORKSHEET FOR CALCULATING TOTAL EQUIPMENT AND INSTALLATION COSTS 1 Tot:tJ Capita! C05Uoflnst1.llationand MainrenanCl: [Schedule A. Bo.~ I) 2. Total AnnI1;l] Operating E.~pcn5Cs for 1nstai1,w0ll and Maintenance [Schedule B, Bo:< 2) 3 TotalAMI1;I] C3lIital Costs o(lnn"Jlation and Mainlc:nanCl: IUne] + Une 2] ~ Cunamer Equipment and Install.uion Pcromli1gc (attach e:<plan.uion) 5 Annl1;l] Customer Equipment Mi1intenance and Install.uion Costs, Excluding Cons of~ Equipment [Line3:<Une-l1 6 Total C3lIibl Corts of Leased Customer Equipment [Schedule C, Bo:< 3[ 7 Annual C!WOmer Equipment and InstailatiOll Costs [Line 5 + Line 6] S Pcn:entage AUoc:ltion to FranclllSC An:n (see;nstruaions) 9 Allocated Annun! Eq,npment and Installation Cost [Une 1:< Line 8] 10. Monthly Equipment and Installation Cost [Line 9/(!21] II Number of B.a.ic Subs<:ribc:rs in Franchise 12. Monthly Equipmenland Installation Cost Subscriber [Line 101 Line III J) Inflation AdjumnentFnctor[Sc.: Insuuctious] 1~ Adjusted Monthl~' Equipment and InstaJ!ation Cost per Subscriber [Line 12:< Line I ~J P~6 -C:<Cj- Excel 4.0 Win, Version 2.0 Approvedby:OMB3060-0592 Expi~:4I30191 :sJ35,3'?30S31 59,6-38,359.00 S]I),173,752 , $10,173,152 UJ'85,432 $IU59,1S4- L $11,.3:S9.1&4 $1,529,931.99- 466,687 n2783 , $3.27&3 );< 31 FCCFonn ]205 May 1994 Fcdo:r:aJ Communications Commission Washingtan.D.C.20534 Approved by. OMS 3060-0592 E:~pin:s: 4130197 SVMMARY SCHEDULE CurTUlt[quipm.nl.ndlnOIllU.tionR.lu PCmlittc<l A~. , ~eoforCablcSc...icclnSlallariono ;LHourly~[StcpA,Line71 "'.1 b.A~erageLnsta!lationChanteo' , Installation of Unwin:d Home. [Step S, Line 9:>3 [ SJ);1I3 2.lnnaIlalionafP~redHomcs[SIc'pB,Line9b31 -SU.52 3,InstallalionofAdditionalConnectionsalTimeoflnitiallnstallalion[StepB,Linege3] S20,17 ~ Installation of Addilian3! Connectians Requiring Sc-par.u.: Instal! [Step B, Line 9d3] $23.28 ; OtIIetlnnallaliono(specifo.'){SIc'pB,uncs9cl,9c6,Qe9] , .$20.11 b n76 , rn.28 , Month!y Chaise far L=.sc af RcmOk Controls [SIc'p C, une 17, columns :>.-<:[ Remme Comn:>l Type !' SO_2K Remote Control T,,,., 2- $IJ:OQ Remote Cantrol T~"., 3: $0,00 3 Monthly Charge fot Lease ofCon~ener So,..,o [Step D, une 25, columns :>.-<:] Con~tt>:rBoxTypeL Sl.40 Con...-c-ncr Box T~"., 2: .$1.51 Con~ttcTBoxTy?C3 SO.OO , Monthly Chat!;cfarr..:-afOthcrEquipment[Stcp E,Line33] Other Equipment {SoccifV) so.ool s ClwJ!e forChaaging Toers (if any) [Sceo F, Line 34, 3~ ar 36.:[ :$2.001 LABOR COST AND POLICY CHANCES IndiCl1C youranswcrtothc fullowinl thn:cqucstians by p!acing an "x" in theappropriale box I Have you indudcd die labor oosu associated with.ubscribercable drops in yourcl>arges forinitiaJ instaJlalion ? [K]YES DNO 2 Ha'e~'ouca:piwizcdthc!:>bor=MSOCi31Cdwith.ubsc:riberc:ablcdrops' [TIYES DNO 3 [fy"uh2~filedthi.fo""bef"re,luoveyouchan8edanypoli<:y,cg.,COSI;Jo;COunlin8arconalloc:r.tianlh<1t<:ausc. an iru:n:asc: in theCOst5 included in the computation afcquipmcaland installalians chargeS? DYES (You mustalt;>l;h afuJl cxplan;1(ion) [K]NO CERTIFICATION STATEMENT WILLFUL FALSE STATEMENTS MADE ONTIiIS FORM ARE PUNISHABLE BY FINE AND/OR IMPRISONMENT (U,S. CODETTTLE 18, SEcnON 1001), ANDIOR FORFEmJRE (U.S, CODE, TITLE 47, SEcnON 503) I a:nify thai u.c SWCmen'-' made in Ibi, folR1 arc uu<: and CQm:<:t to the bcn afmy knawledge and belief, and arc NameoflbeCabJcOpctatQr Signature Co~ Comllluniuuon. S.n Diq:a "'" Tolle - D25- Page 1 Exce140Win, Versian20 )';J.-I{D FCC Farm 1205 May 1994 Federal Communications Commission Washington. DC 20554 Approved by OMB 3060-0685 FILING DATE FOR THIS FORM FCC FORM ]240 UPDATING MAX]MUM PERMITTED RATES FOR REGULA TED CABLE SERVICES ( ) Cable Operator: Name of Cable Operator Cox Communications Maihng Address of Cable Operator 5159 Federal Blvd. City I~tate I ~IP Code San Dieeo Ca 92105 YES NO Ix YES NO Ix 1. Does this filing involve a single franchise authority and a single community unit? If yes, complete the franchise authority information below I and enter the associated CUID number here: 2. Does this filing involve a single franchise authority but multiple community units? If yes, enter the associated CUIDs below and complete the franchise authority infonnation at the bottom ofthis page: 3. Does this filing involve multiple franchise authorities? If yes, attach a separate sheet for each franchise authority and include the following franchise authority information with its associated CUID(s): Franchise Authority Information: Name of Local Franchising Authority See Attached: National City, Chula Vista, Imperial Beach, Santee Mailing Address of Local Franchising Authority City State IZIP Code Telephone number Fax Number 4. For what purpose is this Form 1240 being filed? Please put an "X" in the appropriate box. a. Original Form 1240 for Basic Tier b. Amended Form 1240 for Basic Tier c. Original Form 1240 for CPS Tier d. Amended Form 1240 for CPS Tier ~ TO 10/01/96 I 09/30/97 (mm/yy) TO 10/01/95 I 06/30/96 (mm/yy) YES NO X 5. Indicate the one year time period for which you are setting rates (the Projected Period). 6. Indicate the time period for which you are performing a true-up. 7. Status of Previous Filing of FCC Form 1240 (enter an "x" in the appropriate box) a. Is this the first FCC Form 1240 filed in any jurisdiction? I b. Has an FCC Form 1240 been filed previously with the FCC? If yes, enter the date ofthe most recent filing: I YES X (mmldd/yy) NO X (mmldd/yy) FCC Fonn 1240 January 1996 c. Has an FCC Form 1240 been filed previously with the Franchising Authority? If yes, enter the date of the most recent filing: Page] -c:?6- I ~ - If! Federal Communications Commission Washington, DC 20554 Approved by OMB 3060-0685 8. Status of Previous Filing of FCC Form 1210 (enter an "x" in the appropriate box) a. Has an FCC Form 1210 been previously filed with the FCC? I If yes, enter the date ofthe most recent tiling: I YES NO X 11/15/95 (mm/dd/yy) YES NO X 11/15/95 (mm/dd/yy) YES NO X 07/15/94 (mm/dd/yy) YES NO X 07/15/94 (mm/ddlyy) YES NO X (mm/dd/yy) b. Has an FCC Fonn 1210 been previously filed with the Franchising Authority? If yes, enter the date ufthe most recent filing: 9. Status of FCC Form 1200 Filing (enter an "x" in the appropriate box) a. Has an FCC Form 1200 been previously filed with the FCC? If yes, enter the date filed: b. Has an FCC Form 1200 been previously filed with the Franchising Authority? If yes, enter the date filed: to. Cable Programming Services Complaint Status (enter an "x" in the appropriate box) a. Is this fonn being filed in response to an FCC Form 329 complaint? If yes, enter the date of the complaint: 11. Selection of "Going Forward" Channel Addition Methodology (enter an "x" in the appropriate hox) DCheek here if you are using the original rules [MARKUP METHOD]. ~Check here if you are using the new, alternative rules [CAPS METHOD]. If using the CAPS METHOD, have you elected to revise recovery for channels added during the period May 15, 1994 to Dee 31, 1994? YES NO X 12. Headend Upgrade Methodology "'NOTE. Operators must certify to the Commission their eligibility to use this upgrade methodology and attach an equipment list and depreciation schedule. DCheck here if you are a qualifying small system using the streamlined headend upgrade methodology. Line Part I: Preliminary Information Module A: Maximum Permitted Rate From Previous Filing a b c Line Description Basic Tier 2 Tier 3 d Tier 4 e TierS A I Current Maximum Pennitted Rate 1 $7.741 0 ue : u SCrI ers lD a b c d e Line Line Description Basic Tier2 Tier3 Tier 4 TierS BI Average Subscribership For TrueMUp Period 1 32,630 31,808 B2 Average Subscribership For TrueMUp Period 2 83 Estimated Average Subscribership For Projected Period 63.058 61,500 MdlBSb "b $t7.141 h" 1 I Module C: Inflation Information Line Line Description Cl Inflation Factor For True-Up Period 1 [Wks I] C2 Inflation Factor For True-Up Period 2 [Wks 1] C3 Current FCC Inflation Factor 1.0218 1.02t6 -,;[7- FCC Form 1240 January 1996 Page 2 ) ~ - Lj:t... Federal Communications Commission Washington, DC 20554 Approved by OMB 3060-0685 0 ue : a cu atm!! t e ase Rate a b e d e Line Line Description Basic Tier 2 Tier 3 Tier 4 Tier 5 Dl Current Headend Upgrade Segment Dl Current External Costs Segment $0.4427 $5.6771 03 Current Caps Method Segment $0.0000 $1.5000 04 Current Markup Method Segment $0.0000 $0.0000 05 Current Channel MovementJDeletion Segment $0.0000 $0.0000 06 Current True-Up Segment 07 Current Inflation Segment 08 Base Rate [AI-OI-Dl-DJ-04-DS-06-D7] $7.2973 $9.9629 M dID C I I h B Part II: True-Up Period Module E: Timin Information Line Line Description EI How long is the True-Up Period? (" 1" for "Less than or equal to 12 months" or first time filers, "2" for "Greater than) 2 month If" I", answer E2 and EJ. If "2", answer E4 and E5 E2 Number of Months in the True-Up Period E3 Number of Months between the Filing date of this Form 1240 and the end of the last Projected Period E4 Number of Months in the second part of the True-Up Period Eligible for Interest E5 Number of Months in the second part of the True-Up Period Ineligible for Interest ! 9 3 0 ule F: MaxImum ermItte ate or True-Up Period 1 a b e d e Line Line Description Basic Tier 2 Tier3 Tier 4 Tier 5 FI Caps Method Segment For True.Up Period I [Wks 2] $1.5000 F2 Markup Method Segment For True-Up Period 1 [Wks 3] F3 Chan Mvmnt Deletn Segment For True-Up Period 1 [Wks' 4/5] $0.1344 ($0.1379) F4 True-Up Period I Rate Eligible For Inflation [D8+Fl+F2+F3] $74317 $11.325 F5 Inflation Segment for True-Up Period I [(F4*C I )-F4] $0.162 $0.2469 F6 Headend Upgrade Segment For True-Up Period 1 [Wks 6] F7 External Costs Segment For True-Up Period 1 [Wks 7] $0.4664 $5.6962 F8 True-Up Segment For True-Up Period I F9 Max Perm Rate for True-Up Period 1 [F4+F5+F6+F7+F8) $8.0601 $17.2681 Md P dR F 0 ue : aXlmum ermItte ate or rue- In erlO a b e d e Line Line Description Basic Tier2 TierJ Tier 4 TierS Gl Caps Method Segment For True-Up Period 2 [Wks 2] G2 Markup Method Segment For True-Up Period 2 [Wks 3] G3 Chan Mvmnt Deletn Segment For True-Up Period 2 [Wks' 4 5] G4 TU Period 2 Rate Eligible For Inflation [D8+F5+G I +G2+G3] G5 Inflation Segment for True-Up Period 2 [(04*C2)-04] G6 Headend Upgrade Segment For True-Up Period 2 [Wks 6] G7 External Costs Segment For True-Up Period 2 [Wks 7] G8 True-Up Segment For True-Up Period 2 G9 Max Perm Rate for True-Up Period 2 [04+05+06+07+08] M dIG M P dR F T UP' d2 -<28'- FCC Form 1240 January 1996 Page 3 }:J. -~3 Federal Communications Commission Washington, DC 20554 Approved by OMB 3060-0685 0 ue : rue- Jp lIustment alculation a b c d e Line Line Description Basic Tier 2 Tier 3 Tier 4 TierS Adjustment For True-Up Period 1 HI Revenue From Period 1 $2,143,791.00 $4,901,853.825 H2 Revenue From Max Pennitted Rate for Period 1 $2,367,020.896 $4,943,309.6339 H3 True-Up Period I Adjustment [H2-HI] $223.229.896 $41,455.8089 H4 Interest on Period I Adjustment $15,960.7196 $2,964.0499 Adjustment For True-Up Period 2 H5 Revenue From Period 2 Eligible for Interest H6 Revenue From Max Penn Rate for Period 2 Eligible For Interest H7 Period 2 Adjustment Eligible For Interest [H6-H5] H8 Interest on Period 2 Adjustment (See instructions for formula) H9 Revenue From Period 2 Ineligible for Interest HIO Revenue From Max Penn Rate for Period 2 Ineligible for Interes HI! Period 2 Adjustment Ineligible For Interest [H IO-H9] Total True-Up Adjustment H12 Previous Remaining True-Up Adjustment $0.0000 $0.0000 H13 Total True-Up Adjustment [H3+H4+H7+H8+Hll+HI2] $239,190.6156 $44,419.8588 HI4 Amount of True-Up Being Claimed This Projected Rate Period $239,190.6156 $44,419.8588 HI5 Remaining True-Up Adjustment [H13-HI4] ($0.0000) ($0.0000) M d I H T U Ad" c Part III: Projected Period Module I: New Maximum Permitted Rate a b e d e Line Line Description Basic Tier2 Tier3 Tier 4 TierS 1I Caps Method Segment For Projected Period [Wks 2] $1.9073 12 Markup Method Segment For Projected Period [Wks 3] 13 Chan Mvmnt Deletn Segment For Projected Period [Wks 4/5] $1.2096 ($1.2409) 14 Proj. Period Rate Eligible For Inflation [D8+F5+G5+II+12+13) $8.6689 $10.8762 15 Inflation Segment for Projected Period [(I4*C3)-14] $0.1872 $0.2349 16 Headend Upgrade Segment For Projected Period [Wks 6] 17 External Costs Segment For Projected Period [Wks 7] $0.563 $6.0106 18 True-Up Segment For Projected Period $0.3161 $0.0602 19 Max Pennitted Rate for Projected Period [14+15+16+17+18] $9.7353 $17.182 1I0 Operator Selected Rate For Projected Period Note: The maximum permitted rate figures do not take into account any refund liability you may have. 1fyou have previously been ordered by the Commission or your localfranchisingauthority to make refunds. you are not relieved of your obligation to make such refunds even if the permitted rate is higher than the contested rate or your current rate. Certification Statement WILLFUL FALSE STATEMENTS MADE ON THIS FORM ARE PUNISHABLE BY FINE AND/OR IMPRISONMENT (U.S. CODE TITLE 18, SECTION 1001), AND/OR FORFEITURE (US. CODE, TITLE 47, SECTION 503). Signature Date Name and Title of Person Completi Telephone number 619 266-5410 William Fitzsimmons, Director of Finance & Administration Fax Number 619 266-5540 Page 4 d;2f - FCC Fonn 1240 January 1996 ) ~ 'lfL[, Federal Communications Commission Washington, DC 20554 Worksheet 1 - True-Up Period Inflation For instructions, see Appendix A of Instructions For FCC Form 1240 Question I. How long is True-Up Period 1. in months? Question 2. How long is True-Up Period 2, in months? Page I Line Period FCC Inflation Factor 101 Month 1 2.22% 102 Month 2 2.22% 103 Month 3 2.22% 104 Month 4 2.16% 105 Month 5 2.16% 106 Month 6 2.16% 107 Month 7 2.16% 108 Month 8 2.16% 109 Month 9 2.16% 110 Month 10 III Month II 112 Month 12 113 tver:j!fe \J)flatifr Factor for 1.0218 rue- p eno 114 Month 13 lIS Month 14 116 Month 15 117 Month 16 118 Month 17 119 Month 18 120 Month 19 121 Month 20 122 Month 21 123 Month 22 124 Month 23 125 Month 24 126 tver:j!fe \J)flatif~ Factor for rue. p eno -30 - /").-46 Approved By OMB 3060-0685 9 FCC Form 1240 January 1996 Federa] Communications Commission Washington, DC 20554 Approved By OMB 3060-0685 Worksheet 2 - Caps Method True-Up Period, Tier 2 True-Up Projected Period Period X Question 1. Indicate the period for which this worksheet i~ being used. (Put an "X" in the appropriate box.) Question 2. Indicate the tier for which this worksheet is being used. (Put an "X" in the appropriate box.) Basic Tier 2 X Tier 3 Tier 4 Tier 5 Question 3. How long is the first period, in months, for which rates are being set with this worksheet? Question 4. How long is the second period, in monthsJor which rates are being set with this worksheet? 9 2 3 4 5 6 7 8 9 Previous Current Operators Operator's Total License Total Net Cap For License Fee F R Total Caps Line Period Regulated Regulated Change Channels Cap For Reserve Used ee eserve Operators Adjustment Channels Channels Added License Fees Used Cap Used 201 Previous $0.30 $1.20 $1.50 Month 202 Month 1 $0.30 $1.20 $1.50 203 Month 2 $0.30 $1.20 $1.50 204 Month 3 $0.30 $1.20 $1.50 205 Month 4 60 61 $0.00 $0.00 $0.00 $0.30 $1.20 $1.50 206 Month 5 $0.30 $1.20 $1.50 207 Month 6 $0.30 $1.20 $1.50 208 Month 7 $0.30 $1.20 $1.50 209 Month 8 $0.30 $1.20 $1.50 210 Month 9 $0.30 $1.20 $1.50 211 Month 10 212 Month I] 213 Month 12 214 Avera e Period 1 Ca s Method Ad"ustment $1.5000 215 Month 13 216 Month 14 217 Month 15 218 Month 16 219 Month 17 220 Month 18 221 Month 19 222 Month 20 223 Month 21 224 Month 22 225 Month 23 226 Month 24 227 Avera e Period 2 Ca s Method Ad"ustment -31 FCC Form 1240 January 1996 Page 2 ) :1- Lfl Federal Communications Commission Washington, DC 20554 Approved By OMB 3060-0685 Worksheet 2 - Caps Method Projected Period, Tier 2 Question 1. Indicate the period for which this worksheet is being used. (Put an "X" in the appropriate box.) True-Up Projected Period Period X Question 2. Indicate the tier for which this worksheet is being used. (Put an "X" in the appropriate box.) Basic Tier 2 Tier 3 Tier4 Tier 5 X Question 3. How long is the first period, in months,for which rates are being set with this worksheet? 12 Question 4. How long is the second period. in months,for which rates are being set with this worksheet? 0 2 3 4 5 6 7 8 9 Previous Current Operators Operator's Total License Total Line Period Regulated Regulated Ne' Cap For Cap For License Fee Fee Reserve Operators Total Caps Change Channels Reserve Used Adjustment Channels Channels Added License Fees Used Cap lJsed 201 Previous $0.30 $1.20 $1.50 Month 202 Month 1 $0.30 $1.20 $1.50 203 MonthZ $0.30 $1.20 $1.50 204 Month 3 $0.30 $1.20 $1.50 205 Month 4 61 61 0 $0.20 $0.34 $0.64 $].40 $2.04 206 Month 5 $0.64 $1.40 $2.04 207 Month 6 $0.64 $1.40 $2.04 208 Month 7 $0.64 $1.40 $2.04 209 Month 8 $0.64 $1.40 $2.04 210 Month 9 $0.64 $1.40 $2.04 211 Month 10 $0.64 $1.40 $2.04 212 Month II $0.64 $1.40 $2.04 213 Month 12 $0.64 $1.40 $2.04 214 Avera e Period I Ca s Method Ad"ustment $].9073 -.3~- FCC Form 1240 January 1996 Page 2 1f7-'lj-Z Federal Communications Commission Washington, DC 20554 Approved By OMB 3060-0685 Worksheet 4 - Residual True-Up Period For instructions, see Appendix A of Instructions For FCC Form 1240 Question 1. Indicate the period for which this worksheet is being used. (Put an "X" in the appropriate box.) True-Up Period Projected Period x Line Line Descri tion a Basic Period One b Tier 2 c TierJ d Tier 4 c TierS 401 Average Permitted Charge $7.3000 $17.1233 402 Average External Costs $0.4664 $5.6962 403 Average Total Per Channel Adjustments after 5/14/94 $1.5000 for Channels Added Using Caps Method 404 Average Tier Residual [401-402-403] $6.8336 $9.9271 405 Average Channels per Regulated Tier 19.0000 41.6666 406 Average Caps Method Channels per Tier 0.0000 9.6666 407 Average Remaining Channels [405-406] 19.0000 32.0000 408 Average Period 1 Per Channel Residual [404/407] $0.3597 $0.3102 Period Two 409 Average Permitted Charge 410 Average External Costs 411 Average Total Per Channel Adjustments after 5/14/94 for Channels Added Usine: CaDS Method 412 Average Tier Residual [409-410-411] 413 Average Channels per Regulated Tk:r 414 Average Caps Method Channels per Tier 415 Average Remaining Channels [413-414] 416 Average Period 2 Per Channel Residual r412/415] Page I - 33~ FCC Form 1240 January 1996 ) ~ - 4~ Federal Communications Commission Washington, DC 20554 Approved By OMB 3060-0685 Worksheet 4 - Residual Projected Period Question I. Indicate the period for which this worksheet is being used. (Put an "X" in the appropriate box.) True-Up Period Projected Period x Line Line Oescri tion a b Basic Tier 2 Period One c Tier3 d Tier4 c TierS 401 Average Permitted Charge $7.7400 $17.1400 402 Average External Costs $0.5630 $6.0106 403 Average TotaJ Per Channel Adjustments after 5/14/94 $1.9073 for Channels Added Using CaDs Method 404 Average Tier Residual [401-402-403] $7.1770 $9.2220 405 Average Channels per Regulated Tier 23.0000 38.0000 406 Average Caps Method Channels per Tier 0.0000 8.0000 407 Average Remaining Channels [405-406] 23.0000 30.0000 408 Average Period 1 Per Channel Residual [404/407] $0.3120 $0.3074 Page 2 - 3Y- FCC Form 1240 January 1996 ) '). - If? Question 2. I Federal Communications Commission Washington, DC 20554 Approved By OMB 3060-0685 Worksheet 5 - Channel Movement and Deletion True-Up Period, Basic Tier For instructions, see Appendix A ofInstructions For FCC Form 1240 Question 1. Indicate the period for which this worksheet is being used. (Put an "X" in the appropriate box.) I True-u~ Period (Put an "X" in the appropriate box.) Tier 3 I Projected Period Indicate the tier for which this worksheet is being used. B~iC I Tier 2 I Tier 4 Tier 5 Question 3. How long is the first period, in months, for which rates are being set with this worksheet? Question 4. How long is the second period, in months, for which rates are being set with this worksheet? 501 502 503 504 505 506 507 508 509 510 511 512 513 514 9 1 2 3 4 Line Residual of Channels Deleted Residual of Channels Moved From Tier (added) to Tier Net Per-Channel Cost Adjustment [Column 2- Column I) Cumulative Net Per- Channel Cost Adjustment Period Previous Period Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month II Month 12 Avera e Period 1 Channel Movement and Deletion Ad'ustment $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $1.2096 $1.2096 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $1.2096 $0.1344 515 Month 13 516 Month 14 517 Month 15 518 Month 16 519 Month 17 520 Month 18 521 Month 19 522 Month 20 523 Month 21 524 Month 22 525 Month 23 526 Month 24 527 Avera e Period 2 Channel Movement and Deletion Ad'ustment - 2s-- FCC Form 1240 January 1996 Page 1 ;"-bO Question I. Indicate the period for which this worksheet is being used. (Put an "X" in the appropriate box.) I True-u~ Period Question 2. Indicate the tier for which this worksheet is being used. (Put an "X" in the appropriate box.) I Basic I Ti; 2 I Tier 3 I Federal Communications Commission Washington, DC 20554 Approved By OMB 3060-0685 Worksheet 5 - Channel Movement and Deletion True-Up Period, Tier 2 For instructions, see Appendix A oflnstructions For FCC Fonn 1240 Projected Period Tier 4 Tier 5 Question 3. How long is the first period, in months, for which rates are being set with this worksheet? Question 4. How long is the second period, in months, for which rates are being set with this worksheet? 9 1 2 3 4 Line Residual of Channels Deleted Residual of Channels Moved From Tier (added) to Tier Net Per-Channel Cost Adjustment IColumn 2- Column 1] Cumulative Net Per- Channel Cost Adjustment Period 501 502 503 504 505 506 507 508 509 510 511 512 513 514 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 ($1.2409) Previous Period Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Avera e Period t Channel Movement and Deletion Ad"ustment $1.2409 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 ($1.2409) ($0.1379 515 Month 13 516 Month 14 517 Month 15 518 Month 16 519 Monthl7 520 Month 18 521 Month 19 522 Month 20 523 Month 21 524 Month 22 525 Month 23 526 Month 24 527 Avera e Period 2 Channel Movement and Deletion Ad"ustment Page 2 -->/- -Dt7 FCC Form 1240 January 1996 }~'5L Question 1. Indicate the period for which this worksheet is being used. (Put an "X" in the appropriate box.) I True-Up Pedod Question 2. Indicate the tier for which this worksheet is being used. (Put an "X" in the appropriate box.) I B~ic I Tier 2 I Tier 3 I Federal Communications Commission Washington, DC 20554 Approved By OMB 3060-0685 Worksheet 5 - Channel Movement and Deletion Projected Period, Basic Tier For instructions, see Appendix A ofInstructions For FCC Form 1240 Projected Period x Tier 4 TierS Question 3. How long is the first period, in months, for which rates are being set with this worksheet? Question 4. How long is the second period, in months, for which rates are being set with this worksheet? 12 o 2 3 4 Line Residual of Channels Deleted Residual of Channels Moved From Tier (added) to Tier Net Per-Channel Cost Adjustment (Column 2 ~ Column IJ Cumulative Net Per-Channel Cost Adjustment Period 501 502 503 504 505 506 507 508 509 510 51i 512 513 514 Previous Period $1.2096 $1.2096 $1.2096 $1.2096 $1.2096 $1.2096 $1.2096 $1.2096 $1.2096 $1.2096 $1.2096 $1.2096 $1.2096 $1.2096 Month I Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month II Month 12 Avera e Period I Channel Movement and Deletion Adjustment $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 Page 1 -37- FCC Fonn 1240 January 1996 ) :;z -5:C Federal Communications Commission Washington, DC 20554 Approved By OMB 3060-0685 Worksheet 5 - Channel Movement and Deletion Projected Period, Tier 2 For instructions, see Appendix A ofInstructions For FCC Form 1240 Question I. Indicate the period for which this worksheet is being used. (Put an "X" in the appropriate box.) I True-Up Period (Put an "X" in the appropriate box.) Tier3 I Projected Period x Question 2. Indicate the tier for which this worksheet is being used. I Basic I Ti; 2 I Tier 4 Tier 5 Question 3. How long is the first period, in months, for which rates are being set with this worksheet? Question 4. How long is the second period, in months, for which rates are being set with this worksheet? 12 o 2 3 4 Line Residual of Channels Deleted Residual of Channels Moved From Tier (added) to Tier Net Per-Channel Cost Adjustment [Column 2- Column I) Cumulative Net Per-Channel Cost Adjustment Period 501 502 503 504 505 506 507 508 509 510 511 512 513 514 ($1.2409) ($1.2409) ($1.2409) ($1.2409) ($1.2409) ($1.2409) ($1.2409) ($1.2409) ($1.2409) ($1.2409) ($1.2409) ($1.2409) ($1.2409 ($1.2409) Previous Period Month 1 Month 2 Month 3 Month 4 Month 5 Montb6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Avera e Period I Channel Movement and Deletion Ad'ustment $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 -3g~ FCC Form 1240 January 1996 Page 2 ):J -t;3 Federal Communications Commission Washington, DC 20554 Approved By OMS 3060-0685 Worksheet 7 - External Costs True-Up Period For instructions, see Appendix A of Instructions For FCC Fonn 1240 True-Up Period Projected Period Question 1. For which time period are you filling out this worksheet? [Put an "X" in the appropriate box.] x Question 2. How long is the first period, in months, for which rates are being set with this worksheet? Question 3. How long is the second period, in months, for which rates are being set with this worksheet? 9 Line Line Description Basic Tier 2 Period 1 Tier3 Tier 4 TierS External Costs Eligible for Marknp Cost of Programming For Channels Added Prior to 701 5/15/94 or After 5/15/94 Using Markup Method For $119.573.00 $1,499,951.00 Period 702 Retransmission Consent Fees For Period 703 Copyright Fees For Period 704 External Costs Eligible For 7.5% Markup $119,573.00 $1,499,951.00 705 Marked Up External Costs $128,540.9750 $1,612,447.3250 External Costs Not Eligible for Markup 706 Cable Specific Taxes For Period $8,434.53 $18,200.79 707 Franchise Related Costs For Period 708 Commission Regulatory Fees For Period 709 Total External Costs For Period $136,975.5050 $1,630,648,1150 710 Monthly, Per-Subscriber External Costs For Period I $0.4664 $5.6962 Period 2 External Costs Eligible for Markup Cost of Programming For Channels Added Prior to 711 5/15/94 or After 5/15/94 Using Markup Method For Period 712 Retransmission Consent Fees For Period 713 Copyright Fees For Period 714 External Costs Eligible For 7.5% Markup 715 Marked Up External Costs External Costs Not Eligible for Markup 716 Cable Specific Taxes For Period 717 Franchise Related Costs For Period 718 Commission Regulatory Fees For Period 719 Total External Costs For Period 720 Monthly. Per-Subscriber External Costs For Period 2 -39~ Page 1 FCC Fonn 1240 January 1996 ) ~ - 5t Federal Communications Commission Washington, DC 20554 Approved By OMB 3060-0685 Worksheet 7 - External Costs Projected Period For instructions, see Appendix A of Instructions For FCC Form 1240 True-Up Period Projected Period Question 1. For which time period are you filling out this worksheet? [Put an "X" in the appropriate box.J X 12 o Question 2. How long is the first period, in months, for which rates arc being set with this worksheet? Question 3. How long is the second period, in months, for which rates are being set with this worksheet? Line Line Description Basic Tier 2 TierJ Tier4 Tier5 PerIO External Costs Eligible for Markup Cost of Programming For Channels Added Prior to 701 5/15/94 or After 5/15/94 Using Markup Method For $385,839.00 $4,103,797.00 Period 702 Retransmission Consent Fees For Period 703 Copyright Fees For Period 704 External Costs Eligible For 7.5% Markup $38S,839,00 $4,103,797,00 705 Marked Up External Costs $414,776,9250 $4,411,581,7750 External Costs Not Eligible for Markup 706 Cable Specific Ta.'xes For Period $11,246.04 $24,267.72 707 Franchise Related Costs For Period 708 Commission Regulatory Fees For Period 709 Total External Costs For Period $426,022,9650 $4,435,849,4950 710 Monthly, Per-Subscriber External Costs For Period I $0,5630 $6,0 t 06 -~()- FCC Form 1240 January 1996 Page 2 I ~ -5b Federal Communications Commission Washington, DC 20554 Approved By OMS 3060-0685 Worksheet 8 - True-Up Rate Charged For instructions, see Appendix A ofInstructions For FCC Form 1240 Question 1. How long is the True-Up Period I, in months? Question 2. How long is the True-Up Period 2, in months? 9 a b c d e Line Line Description Basic Tier2 Tier3 Tier 4 Tier 5 801 Month 1 $7.3000 $15.3900 802 Month 2 $7.3000 $15.3900 803 Month 3 $7.3000 $15.3900 804 Month 4 $7.3000 $17.1400 805 MonthS $7.3000 $171400 806 Month 6 $7.3000 $171400 807 Month 7 $7.3000 $17.1400 808 Month 8 $7.3000 $19.6900 809 Month 9 $7.3000 $19.6900 810 Month 10 811 Month II 812 Month 12 813 Period 1 Average Rate $7.3000 $171233 814 Month 13 815 Month 14 816 Month 15 817 Month 16 818 Month 17 819 Month 18 820 Month 19 821 Month 20 822 Month 21 823 Month 22 824 Month 23 825 Month 24 826 Period 2 Average Rate Page 1 -.1./1- FCC Fonn 1240 January 1996 ):2 -~ t COX COMMUNICATIONS Franchise Authority Information: Name of Local Franchising Authority CUID(s) City of National City CA0419 Mailing Address of Local Franchising Authority 1243 National City Blvd. City State I ~IP Code National City Ca 91950 Telephone number Fax Number (619) 691-5044 (619) 336-4376 Name of Local Franchising Authority CUID(s) City ofChula Vista CA0329 Mailing Address of Local Franchising Authority 276 Fourth Avenue City State I ~IP Code Chula Vista Ca 91910 Telephone number Fa.x Number (619) 691-5044 (619) 691-5171 Name afLocal Franchising Authority CUID(s) City ofIm perial Beaeh CA0421 Mailing Address of Local Franchising Authority 825 Imperial Beach City State ~IP Code Imperial Beach Ca 91932 Telephone number Fax Number (619) 423-8300 (619) 429-9770 Name of Local Franchising Authority CUID(s) City of Santee IcA0337 Mailing Address of Local Franchising Authority 10601 Magnolia Avenue City State I~IP Code Santee Ca 92071 Telephone number Fax Number (619) 258-4100 (619) 562-0649 -.Jf~- ) ~ -62 95 Oct Nay Dec 96 Jan Feb Mar Apr May Jun 96 Oct Nay Dec 97 Jan Feb Mar Apr May Jun Ju1 Aug Sep COX COMMUNICATIONS PROGRAMMING EXPENSE BY MONTH Chula Vista, National City, Imperial Beach, Santee BASIC CPS Subs Rate Cost Subs Rate Cost 32,630 0.3979 12,983 31,808 5.2498 166,986 32,630 0.3979 12,983 31,808 5.2498 166,986 32,630 0.3979 12,983 31,808 5.2498 166,986 32,630 0.4118 13,437 31,808 5.2345 166,499 32,630 0.4118 13,437 31,808 5.2345 166,499 32,630 0.4118 13,437 31,808 5.2345 166,499 32,630 0.4118 13,437 31,808 5.2345 166,499 32,630 0.4118 13,437 31,808 5.2345 166,499 32,630 0.4118 13,437 31,808 5.2345 166,499 32,630 119,573 31,808 1,499,951 63,058 0.5099 32,153 61,500 5.5607 341,983 63,058 0.5099 32,153 61,500 5.5607 341,983 63,058 0.5099 32,153 61,500 5.5607 341,983 63,058 0.5099 32,153 61,500 5.5607 341,983 63,058 0.5099 32,153 61,500 5.5607 341,983 63,058 0.5099 32,153 61,500 5.5607 341,983 63,058 0.5099 32,153 61,500 5.5607 341,983 63,058 0.5099 32,153 61,500 5.5607 341,983 63,058 0.5099 32,153 61,500 5.5607 341,983 63,058 0.5099 32,153 61,500 5.5607 341,983 63,058 0.5099 32,153 61,500 5.5607 341,983 63,058 0.5099 32,153 61,500 5.5607 341,983 63,058 385,839 61,500 4,103,797 -43- )7. -5? '1,_) . Basic Premium & PPV in bold Available forlldd charge COX COMMUNICATION SOUTH CHANNEL LINE UP BY DATE Start True-up End True-up StortProjeded End Projected 10/1/95 1/1/96 6130/96 10/1196 IOfl/97 USA USA USA USA USA ESPN ESPN ESPN ESPN ESPN . KCOX . KCOX . KCOX . KCOX . KCOX . KTLA . KTLA . KTLA . KTLA . KTLA . XETV . XETV . XETV XETV . XETV . KNSD . KNSD . KNSD . KNSD . KNSD . KFMB . KFt>.IB . KF:>'!B . KFMB . KFMB . KUSI . KUS! . KUSI . KUSI . KVSI . KGTV . KGTV . KGTV . KGTV . KGTV . KPBS . KPBS . KPBS . KPBS . KPBS . XEWT . XEWT . XE\VT . XEWT . XEWT . KCOP . KCOP . KCOP . KCOP . KCOP . KITY . KITY . KITY . KITY . KITY Showtime Showtime . SNEAK . SNEAK . SNEAK UBO UBO . KBNT . KBNT . KBNT Cinemax Cinemax . COUNTY GOVT . COUNTY GOVT . COUNTY GOVT . C-SPAN2 . C-SPAN2 . C-SPAN2 . C-SPAN2 . C-SPAN::! Family Family Family Family Family . XHAS . XHAS . XHAS . XHAS . XHAS . C-SPAN . C-SPAN . C-SPAN . C-SPAN . C-SPAN Viewers Choice Viewers Choice . WEATHER . WEATHER . WEATHER . ITVI1IEV . ITV/MEV . ITViMEV . ITViMEU . ITViMEU . Calif1GovtAcces . Calif/GovtAcces . Calif/GovtAcces . Calif/GovtAcces . CaliffGovtAcces . Qye . Qve . QVC . QVC . Qve . WGN . WGN . WGN . WGN . WGN . TBS . TBS . TBS . TBS . TBS Lifetime Lifetime Lifetime Lifetime Lifetime NASA/PRIME NASAlPRI\IE NASAlPR![I.,IE NASAIPRIME NASAlPRHv!E MTV MTV MTV 1\.!TV MTV CNN CNN eNN eNN eNN Headline News Headline News Headline News Headline News Headline News A~.fC MdC A~IC AMC AMC TNT TNT TNT TNT TNT Discovery Discovery Discovery Discovery Discovery Leaming Learning Learning Learning Learning KBNT KBNT PREVIEW PREVI EW PREVIEW Prime Deportiva Prime Depor1iva Prime Depor1iva Prime Deportiva Prime Deportiva Inlernational International International Intemational International BET BET BET BET BET A&E A&E A&E A&E A&E Bravo Bravo Bravo Bravo Bravo CNBC CNBC G;gC CNBC CNBC Weather Weather SCI-FI SCI-FI SCI-FI TNN TNN Tl','}.i TNN TNN VIII VHI \'HI V!-11 VHI Nickelodeon Nickelodeon !\id.etodeon Nickelodeon Nickelodeon Comedy Comedy Comedy Comedy Comedy E E E E E Cartoon Cal1oOI1 Cartoon Cartoon Cal1OOI\ Faith & Values Faith & Values Faith & Values Faith& Values Faith & Values Disney Disney Disney Disney Disney Prevue Pn,'\lle Showlime Showtime Showtime Sci-Fi Sci~Fi IIRO IIGO IIBO Sneak Sneak Cinemax Cinema~ Cinemax Court Court Viewers Choice Viewers Choice ViewersChoicc IIlItChoice lIotChoice lIotChoice llotChoice lIotChoice Showtime2 Showtime2 Showtime2 Showtime2 Showtime2 11B02 11802 IIR02 11802 IIR02 Cimemax2 Cimemax2 Cimemax2 Cimemax2 Cimemax2 nn OIT CMT CMT CMT EI1core Encore Encore Encore Elleore Travel Travel Tlal'd Travel Travel Gems Gems Ge<ns Gems Gems MTVLatino ~nVLatinL) Coun Court Court HSN HSN IIS~ HSN HSN Value Vision Value Vision Value Vision VallleVisil1n Value Vision FX FX FX FX FX MEV MEV MElI MEV ~!EU OlltdoorLife OlltdoorLife Outdoor Life Outdoor Life OllldoorLife ContinuoIJsllits3 ContinollosHits3 Continuousllits3 Continuous Hits 3 Continuollsllits3 ESPN2 ESPN2 ESPN2 ESPN2 ESPN2 History History History History History TeM TCM TeM TCM TeM LeassedAceess Leas~ed Access LeassedAcccss LeassedAccess ContinuouslIits4 Conlinuollsllits4 Continuous Hits4 Continuuus IIits4 Continuousllits4 SEGA SEGA SEGA Continuousllits Cuntinuousllits ContinuOlIsllits Continuous llits Continuousllits Ch" 2 3 4 5 6 7 , , 10 II 12 13 14 15 16 17 I' I' 20 21 22 23 24 25 26 27 28 29 30 31 32 33 " 35 36 37 38 39 40 41 42 43 44 45 46 47 4S 49 50 51 52 53 54 55 56 57 " " 60 61 62 63 " 65 66 67 68 69 70 71 72 73 74 75 76 78 99 ChannclCollnt Basic " 19 " " 2J er, 41 42 33 3< 38 -1-jif - Other 15 15 16 )~ -69- 16 16 Total 75 76 77 77 77 ./ I ATTACHMENT #4 SEP 5 Ice,s August 30, 1996 Cox Communications 5159 Federal Boulevard San Diego, California 92105-5486 161912639251 Me. John Goss City Manager City of Chula Vista 276 Fourth Avenue Chula Vista CA 91910 CO~ COMMUNICATIONS Dear Mr. Goss: RE: NEW PROGRAMMING AND CHANNEL CHANGES Cox Communications strives to give our customers as many progranuning options as possible. That's why, effective September 30, 1996, Cox Communications will be offering new choices to our customers, including: "SAN DIEGO'S I5"/Cox Channel 15 For the first time in San Diego history, cable and broadcast news operations will combine efforts to offer local news 24-hours a day on Cox Channel 15. "San Diego's 15" will offer repeated broadcasts of KGTV/Channel lO's news progranuning and will simulcast coverage of breaking news. Beginning September 30, 1996, San Diegans will have the convenience of getting greater access to in-depth local news by watching Cox Channel 15. MSNBC/Cox Channel 39 Cox is also proud to announce the launch ofMSNBC on Cox Channel 39. MSNBC combines Microsoft's legendary computer software expertise with NBC's worldwide news operation to feature up-to-the-minute news from around the globe using three media technologies: broadcast, cable television and the Internet. MSNBC will begin airing on Cox Channel 39 on September 30, 1996. The History Channel/ESPN2 Cox Communications strives to constantly bring more value to our customers. In the past, Cox subscribers were charged a premium for The History Channel and ESPN2, but as of September 30, 1996, this award- winning programming will be included in the progranuning line-up for Expanded-Basic Tier customers at no extra charge. The History Channel will feature educational documentaries, mini-series and movies on Cox Channel 73 and ESPN2 will be aired on Cox Channel 38. In order to provide these new progranuning opportunities to our customers, changes in the channel line-up will be occurring. Details on those changes are included in the enclosed notice which will be sent to all of our customers. If you have any questions or require additional information, please feel free to contact me at 266-5203. - ,/-5 - )()-!;D ,~, COX COMMUNICATIONS MSNBC AND SAN DIEGO'S NEWS Coming September 30th, 1996 ' , CHANNEL 15 COME TO :-- new serVJces, San Dieg , N ' Cox (ommumcations is Proud t CU~ channel 15, featuring lo~a~ ne ewsfi Channel 15, an exclusive loca~ announ~e the addnion (>I J\\" ws rom KGTV-JO, 24 hours a d news cannel, will debut O!1 j dd' ay n a Jtion, MSNBC 'JJ , WI come to C C orgamzation to embrace three media te ox ommunications on channeJ 39 bnngs you UP-to-the-minute n fi chnologJes - broadcast, cable a d h j' As the only l1e\\, ews rom around the globe, n t e nternet - MS " Be Also, ESPN? and Th H' S - e ,story Ch I' eptember 30th, makin th ' anne wtiJ move to OUr Cox E channel 38, Finallv du; t em avatiable to all Cox Expanded cust xpanded Jevel of servkL on will switch chann~; POSiti~ Contractual agreements, KTLA-5 ando:;~y' ESPN2 will be found on ns, -14 (soon to he KS\"BI (over) YOUR CONNECTION TO THE FUTUR' "r' " ---- (0 On September 29th, Faith & Values channel 51 ceases showing strictly praise and worship programming and becomes a ne~ channel calkd Odyssey, As a result of this change, and the addition of new channels, Odyssey will not be carried effective September 30th. In addition, Continuous Hits 1 will no longer be carried on our lineup, and Continuous Hits 3 will now share time on channel 99. Continuous Hih "J, will run from 6A.M, to 10 PM.. As part of this change, the International Channel will move to channel 71 , and Prime Deportiva will move to channel 72. Finally, Sneak Prevue will move to channel 51, offering Pay-Per- Vt ~,\ previews and programming information. " \ FOR MORE INFORMATION, CALL 262-1122 ~76- I'}.- 01 ~~~ 4...J(t--~ ~~~.;E ATTACHMENT #5 CllY OF CHUiA VISTA OFFICE OF THE CITY MANAGER September II, 1996 Mary Tietz Goverrunent Relations Manager Cox Communications RE: Form 1235, 1240 and 1205 Rate Requests, Draft 329 Complaint; Public Hearing This letter is to inform you that in regard to the various rate filings received from your company, the Chula Vista City Council is tentatively scheduled to hold a public hearing on Tuesday, October 1. The meeting will be held at the City Council Chambers, 276 Fourth Avenue, beginning at 4:00 p.m. Attached to this letter is a draft FCC Form 329 Complaint. It is staffs understanding that an advance copy of the Public Knowledge report included in this complaint was also provided to Mr. William Fitzsimmons and Jack Jacobs on August 27. Based on any initial reading of that report or of the draft herein provided, we look forward to receiving Cox's comments within the next 30 days as provided by FCC regulations. After that date, if a complaint still appears justified, it would be filed with the FCC in conjunction with any written comments submitted to the City by Cox. In reviewing the forms submitted, the City's consultant found the 1240 to be satisfactorily completed. The 1205 filing, as it did not present rate increases for Chula Vista customers, was not subject to their review. The primary concerns to be raised by staff at the public hearing will be I) the appropriateness of the spread of upgrade costs via the 1235 to Basic and CPS tiers and 2) the justification for filing an FCC Form 329 complaint on the upgrade-based CPS rates. As this can be both a technical and bureaucratic process, I look forward to working with you to clarify any of the issues in question to present the most balanced and informative report possible for our Council's consideration. In addition to any written comments you may have, I am fully available to discuss these matters with you by phone at 585-5649. I can also be reached via fax at 585-5612. Sincerely, ffi~-#~2:: Gerald Y g Principa M gement Assistant Attachments: Draft Fonn 329 Complaint Public Knowledge report, August 27, 1996 Public Hearing Notice for October I, 1996 ce: City Council William Fitzsimmons, Cox Communications, Director of Finance Jack Jacobs, Cox Communications, Financial Analyst -Jf 7- 276 FOURTH AVENUE. CHULA VISTA' CALIFORNIA 91910 . (619) 691-5031 . FAX (619) 585.5612 ?~ .."'*""-... ! "J - 0 ~ (:M?AFr) Federal Communications Commission Approved by OMB 3060-05<49 FCC FORM 329 CABLE PROGRAMMING SERVICES RATE COMPLAINT FORM PLEASE READ THE INSTRUCTIONS PRIOR TO COMPLETING THIS FORM All of the requested information must be provided to enable us to consider the complaint. Incomplete filings cannot be processed and will be returned. Franchise Authority Name: Street Address: City of Chula Vista 276 Fourth Avenue City Chula Vista Phone Number: State CA Zip Code 91910 (619) Cable System Name: Street Address: 691-5031 Cox Communications 5159 Federal Blvd. San Diego State CA Zip Code 92105-5486 City Phone Number: FCC community unit identifier number for cable system. CA0329 Subscriber complaints regarding a rate increase to the cable programming services tier(s) were received by the local franchise authority within 90 days of the effective date of the increase. (If no, the complaint cannot be filed.) YES NO - Specify in detail the cable programming services tier being complained about: CPST-1 The complaints referred to Indicate the following Increase(s): Current rate: J 19.69 Effective date of increase: Prior rate: J 15.90 5/01/96 (month, day, year) Were any channels added to or dropped from the cable programming services tier concurrent with the Increase In the rate? YES NO Indicate the number of channels added: 0 o Indicate the number of channels dropped: - Jrg- FCC FORM 329 ) ~ -~3 April 1_ , j Federal Communications Commission Approved by OMB 3060-0549 CERTIFICATIONS: By signing this form the local franchise authority certifies to the FCC that, to the best of its knowledge and belief, the following is true and correct: 1) The local franchise authority has received subscriber complaints in accordance with the Commission's rules regarding a rate increase to the cable programming services tier(s) provided by the cable system within 90 days of the date of the increase first appearing on the subscriber's cable bill. 2) Consistent with the requirements of this form, the cable system was provided a draft copy of this form by certified mail and given a minimum of 30 days from that date to give the local franchise authority a rate justification on the appropriate FCC Form or, alternatively, a certification that it is not subject to rate regulation. 3) Consistent with the requirements of this form, this information provided by the cable system is attached to and made a part of this filing by the local franchise authority. If no such attachments are filed with this form, the franchise authority certifies that the cable system operator failed to file the appropriate information with the local franchise authority within the specified time period, and requests that the FCC act upon the information as submitted. 4) In the event additional information relevant to the filing of this FCC Form 329 is obtained by the local franchise authority prior to the Commission taking final action thereon, the local franchise authority will immediately notify the Commission of such additional information and provide the same to the Commission. 5) The local franchise authority has filed this complaint with the Commission within 180 days of the date the rate increase became effective. Date Name Signature FCC NOTICE TO INDMDUALS REQUIRED BY THE PRIVACY ACT AND THE PAPERWORK REDUCTION ACT The solicitation of personal information k1 this form is authorized by the Communications Ad of 1934, as amended. The Commission win use the information provided in this form to determine the reasonableness of a cable company'. rates. In reaching that determination, or for low enforcement purposes, k may become neoosslry to provide personlllnformation contained in this form to Inother govemmentageney. All information provided in this form will be available for public Inspection, subject to local requirements. IndiYiduats are not raquirld to respond to coUectionl of Information that do not contain a valid Office of Management and Budget (OMB) control number. Public reporting for this collection Is .stimated to average 45 minutes per tiling. Including the time for _leWing Instructions, searching existing data .ourees, gathering and maintaining the data needed, and completing the collection of Information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for Nducing the burden. to the Federol Communication. Commission. Records Management Branch. Washington, DC 20554. Do Q21..nd completed forms to this oddre.. THE FORGOING NOTICE IS REQUIRED BY THE PRIVACY ACT OF 1974, P.L. 93-579. DECEMBER 31, 1974. U.S.C. 552a(e)(3), AND THE PAPERWORK P.!:DUCTION ACT OF 1995, P.L. 104.13, MAY 22,1995.47 U.S.C. 3507 ~.).j 7- FCC FORM 32~ ))~1 April 1996 INFORMATION MEMORANDUM #/J. October 1, 1996 FROM: The Honorable Mayor and City Council ,ll~ John D. Goss, City Manage~ ~~ ~\ Gerald Young, Principal Management Assistanr Item #12: Cox Communications Public Hearing: Continue until 10/15 TO: VIA: SUBJECT: At the request of Cox Communications, tonight's rate hearing is being recommended for continuance until Tuesday, October 15. As confirmed in the attached letter, Cox has postponed their proposed October 1 changes in equipment/installation rates and maximum permitted rates until a date uncertain, subject to further 30 day notice to the City. The two week continuance will allow them to complete their review of the City's draft FCC complaint and should not impact Council's discretion to approve or deny any proposed rate changes. If Council has any questions, City staff and a representative from Cox Communications will be available at the meeting. Attachment c:coxinfo.101 OCT !;Ii '96 1!12:4SPM COX EXEC STR'T fRX 619a66-5555 P.2/2 51,. FodooJIIIoIMd s.. Diogo, Cal.... 112'~ 1&1812D-~1 October 1,1996 cox CO..VIUCAT".' Mr. 0craI4 Young PriDci.pal MalIageJJ"""' A1II1yst at}' ofClmJa VISta 276 Fourth AVCIIIle C1uIa VISta, CA 91910 BE: AJeDda Item 12/Cox Com"'D1Jiulio...~,1I'CC F01'llll1235, lZ40 aad 1205 DeBrMr. YOung; Cox CommnftiNotiom IIPPlcciates your willingness to recomrlV!lll1 a two-week C()1II'in"I"'c\! of Ageuda Item 12. We will be submitting written '" ........nh pcrWuing to the city's dtaft FCC Form 329 eomplaiDt within the pre&eribed 3()..(1ayreview period as provided by FCC reguhstions. You can anticipate receiviDB those written comments DO lata' than October 10, 1996. In a&.1ition, Cox ComrmmiNltinns will not be dIanging equipment m1 jmt"tlarinu raws on October 1, ] 996 as was c;omnn..w...t...! 'to the ciJ:y in our FCC Form 1205 fiIiDg da1ed hme 28, 1996. In iICCOIdance with FCC regulations, we wiD. notify the city 3~ys in advam;c ohllY regulated rate changes included in the FCC Forms 1205, 1235 m1124O. If)'Ou have any questions of require Idditiona1 infol'Jllltion, please don't besitJlte to call me at 266-5410. WILLIAM FITZS1MMONS Director ofFinaDu m1 AdmiDistration CoxComuumications -'", I:' COUNCIL AGENDA STATEMENT Item /3 Meeting Date 10/1/96 ITEM TITLE: Resolution / :513 '1 Waiving immaterial defects, accepting bids and awarding contract for "Parking Lot Improvements for Eucalyptus Park in the City ofChula Vista, CA (PR-2ll)". SUBMITTED BY: Director of Public Works ~ Director of Parks & Recre!tf;n REVffiWED BY, Cby M""""~ 't ~ This item was continued from the meeting of September 24, 1996 in order to respond to questions from the Council related to staff costs and redo the Fiscal Impact statement. (4/5ths Vote: Yes_NoX) At 2:00 p.m. on September 4, 1996 in Conference Room 2 and 3, the Director of Public Works received bids for "Parking Lot Improvements in Eucalyptus Park in the City of Chula Vista, CA (PR-2ll)." The General scope of the project includes improving the parking lot adjacent to the American Legion's building at Eucalyptus Park. The work includes, traffic control, removal of alligatored pavement areas and replacement with asphalt concrete pavement, AC leveling courses, P.C.C. pad for trash receptacle, P.C.C. drainage swale, asphalt concrete berm, drainage ditch, splash wall, crushed aggregate base, and other miscellaneous items of work as shown on the plans. RECOMMENDATION: That Council: 1. Waive minor irregularity in low bid (lack of signing second sheet showing the list of subcontractors) . 2. Accept bids and award contract to MJC Construction - Chula Vista in the amount of $31,427.50. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: The City Council on February 6, 1996 approved a project to renovate the parking lot and restripe the lot to maximize the parking for the American Legion and upper ball fields at Eucalyptus Park. The existing parking lot has large areas of failure due to improper drainage and the parking /~~~/ Page 2, Item_ Meeting Date 10/1/96 striping is not maximized for space available. This project will correct the deficiencies in the parking lot, improve the drainage facilities and maximize the available parking in the area. Bids were received from seven contractors to perform the work as follows: Contractor MJC Construction - Chula Vista SRM Contracting and Paving - San Diego Angus Asphalt, Inc. - Santee Star Paving, Inc. - San Diego American Asphalt & Concrete, Inc. - Spring Valley Frank and Son Paving, Inc. - Chula Vista Performance Paving, Inc. - San Diego Bid Amount $31,427.50 $33,694.50 $41,198.10 $41,910.00 $43,980.70 $44,472.00 $49,480.00 The low bid by MJC Construction is below the Engineer's estimate of $37,410.00 by $5,982.50 or 16 %. Staff received excellent bids for the proposed work. The Engineer's estimate was based on prices received on similar work in the last several years. Although this particular firm has not performed construction work with the City of Chula Vista, the owner, while working with another firm has performed satisfactory work while working for the City. The staff costs (design & inspection) are estimated to total about $11,400 or about 36% of the contract amount. This ratio between staff cost and construction cost is typical of projects of this small size. It should be noted that this high ratio can be attributable to two major factors. The first, is the fact that all projects, regardless of their size, require certain basic effort in bidding (i.e. surveying, preparation of plans, specifications and awarding of the contract). Second, is the fact that although the number of hours spent on a small project may be minimal, once the full cost recovery factor is computed, the total tends to elevate the staff cost disproportionally (i.e. this project, as of September 6, 1996 required 85 hours at a basic staff cost of $2033.80; but when the FCR factor is computed, this amount becomes $5,383.32). It is also typical of projects of this size for inspection staff costs to equal or exceed the design cost. Prevailing Wage Statement The source of funding for this project is Park Acquisition and Development Funds and participating funds provided by the American Legion. No special minority or women-owned business requirements were necessary as part of the bid documents. Disadvantaged businesses were encouraged to bid through the sending of notice to contractors through various trade publications. /-'--5 -'~ Page 3, Item_ Meeting Date 10/1/96 Disclosure statement Attached as Exhibit A is a Contractor's Disclosure Statement. Environmental Status The Environmental Review Coordinator has determined that this project is categorically exempt under Class 1, Section 15301 (b) of the California Environmental Quality Act (minor alternations of existing public improvements or public structures). Financial Statement FUNDS REQUIRED FOR CONSTRUCTION A. Contract Amount $31.427.50 B. Staff Costs (Staff and design) $11,400.00 C. Contingencies (approximately 10%) $ 3,172.50 TOTAL FUNDS REQUIRED FOR CONSTRUCTION $46,000.00 FUNDS AVAILABLE FOR CONSTRUCTION A. American Legion Parking Lot Renovation (PR-211) $27,600.00 B. American Legion funds (PR-21I ) $18.400.00 TOTAL FUNDS AVAILABLE FOR CONSTRUCTION $46,000.00 MJC Construction inadvertently failed to sign the second sheet of their list of subcontractors in the bid documents when submitted (See Exhibit B). This item was discussed with the City Attorney's office and determined to be a minor irregularity. The lack of this completed document, did not, however, provide an advantage to the low bidder. Therefore, staff recommends waiving the minor irregularity. FISCAL IMPACT: Implementation of this project will require the expenditure of about $46,000. Sufficient funds to cover this expenditure were appropriated in the FY 96-97 Capital Improvement Program budget. After completion, the improvements will minimize maintenance costs by reducing erosion of an existing slope within the park area. However, this reduction in maintenance cost is difficult to quantify since we don't have accurate records of maintenance needs of that slope. J3/~3 Attachments: Exhibit A - Exhibit B - M;\HOME\ENGINEER\AGENDA\MJC .8LH Page 4, Item_ Meeting Date 10/1/96 City of Chula Vista Disclosure Statement Letter of explanation from contractor /3-1 RESOLUTION NO. / ~1j..J 7 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING IMMATERIAL DEFECTS, ACCEPTING BIDS AND AWARDING CONTRACT FOR "PARKING LOT IMPROVEMENTS FOR EUCALYPTUS PARK IN THE CITY OF CHULA VISTA, CA. (PR-211)" WHEREAS, at 2:00 p.m. on September 4, 1996 in Conference Room 2 and 3, the Director of Public Works received the following seven bids for "Parking Lot Improvements in Eucalyptus Park in the City of Chula vista, CA (PR-211)." Contractor Bid Amount MJC Construction - Chula vista SRM contracting and paving - San Diego Angus Asphalt, Inc. - Santee Star Paving, Inc. - San Diego American Asphalt & concrete, Inc. - Spring Valley Frank and Son Paving, Inc. - Chula vista Performance Paving, Inc. - San Diego $31,427.50 $33,694.50 $41,198.10 $41,910.00 $43,980.70 $44,472.00 $49,480.00 WHEREAS, the low bid by MJC Construction is below the Engineer's estimate of $37,410.00 by $5,982.50 or 16% and staff recommends awarding the contract to MJC Construction; and WHEREAS, MJC Construction inadvertently failed to sign the second sheet of their list of subcontractors in the bid documents when submitted; and WHEREAS, the city Attorney's office determined it to be a minor irregularity which did not provide an advantage to the low bidder and staff recommends waiving the minor irregularity; and . WHEREAS, the source of funding for this project is Park Acquisition and Development Funds and participating funds provided by the American Legion and no special minority or women-owned business requirements were necessary as part of the bid documents; although disadvantaged businesses were encouraged to bid through the sending of notice to contractors through various trade publications; and WHEREAS, the Environmental Review Coordinator has determined that this project is categorically exempt under Class 1, Section 15301 (b) of the California Environmental Quality Act 1 /' /3-~ (minor alternations of existing public improvements or public structures). NOW, THEREFORE, BE IT RESOLVED the City Council of the city of Chula Vista does hereby waive minor irregularity in low bid (lack of signing second sheet showing the list of subcontractors) . BE IT FURTHER RESOLVED that the City Council does hereby accept the seven bids and awards the contract to MJC Construction - Chula vista in the amount of $31,427.50 for "Parking Lot Improvements for Eucalyptus Park in the city of Chula vista". BE IT FURTHER RESOLVED that the Mayor of the city of Chula Vista is hereby authorized and directed to execute said contract for and on behalf of the City of Chula vista. Presented by Approved as to form by Cc-.- VJ ~ Ann Y. Moore, Acting City Attorney John P. Lippitt, Director of Public Works C:\rs\.jc.bid 2 Is -/ 4. s. 6. ~lflt3', f1 --~. - 'I1D cn'Y or CIIVL\ VISTA DISCLORJa& STATDIEHT You lie ftq\Jired 10 file. $..- of DiIcIooare of cenaia G"_&ip.. ,,_-'''' r po. on ~ maaen wbich will require cliJcreUoaary acUDD DD die put of die CItJ COaao:iI ;-...i c " ~ _:...... r:. ~ ---....... bodies. 1be fOUowiq iDfomwion IIIUIt be dbcloeecl: ' _ _ _ _ 1. List !be DaIlIes of ~ persous baviu8 . fi"""";1I1 iIIIereIC in !be JIR\-" wbJcb is !be subject of !be W" e.,., 0_, ~, Ccmtnctor, 1IIbcoat."'-Iw, DWeria1sapplier. .:TAVIFR. ::)1 NE~F2.. .... L...or"~ 2. If lIlY penon- identified pumJaIIt to (I) above is a corporation or partDmhip, list !be DaIlIes of all individuals DWDiDa IIIOIe than 10" of !be shares in !be corporation or DWIIiD& any partDmhip interest in !be putDersbip. 3. If any person- idemified pumJaIIt to (1) above is IIOn-protit 01'l"munon or a trust, list !be DaIlIes of any penon SCIViJJB IS diRctor of !be IIOn-protit organization or IS trustee or beneficiary or trustor of !be trust. Have you bad more than $2S0 worth of business transacted with any, member of !be City staff, Boards, ('nmmimoDS, Cnmmittees, and Council within !be put twelve month? Yes _ No)( If yes, pleue indicate person(s): Pleue identify each and every person. including lIlY ageDts, employees, consultants, or iDdepeDdeut CoDlrlctors who you have assigned to represent you before !be City in this matter. :::r A \J I&J<, :1lMENE L Have you and/or your officers or ageDts, in !be aggregate, CODtributed more than $1,000 to a Council m_~ in !be curreat or ~i.., election period? Yes _ No ~ If yes, state which Council m_hers(s): . ... (NOTE: .ttt..."-cJ add1t1ona1 JIII&'II . -..,.) . . . Date:-9-.3-q~ '~IO()/\ ....)~ S' of CouInctor/Applic.ont - :iA\lIf:Q) ..il HF klF"Z-- J_:? -? Print or typnsme of Contnctor/App1icant - l!mJm. is dll,/fned as: "Any individ1uJl, firm, co-ptl1'tIIer$hip, joint VDIt/u'e, associadon, social club, fratemol organiQJtion, corporation, urate, trJIst, r<<dver, syndictlU, this and any other county, city or country, city municipality, di.rtrlct, or other political SllbdMsi01l, or any other group or combination acting as a unit. {;;<t"13IT S "ECEIVEJ liy 0'" C.HUl~ VISTA ENr.I'-=::::RIIIG DEPT 96 SEP 10 PH 3: 29 CONSTRUCTION September 10,1996 CITY OF CHULA VISTA ENGINEERING DEPT. ATT. SHALE HANSON PROJECT: Parking Lot Improvement Eucalyptus Park In regards to the second page of the above mentioned contract, that 1 did not sign. The reason being an overlook on my behalf. I did read the contract in full, and simply thought that I had already signed it. I apoligize for any inconvinience. "..:- Sincerely, Javier Jlm~nez-owner /3 ~ fS' COUNCIL AGENDA STATEMENT Item Meeting Date 10/01/96 /tb Report Proposal to Relocate the Palm Springs Suns Baseball Club to Chula Vista SUBMITTED BY: Community Development Director (. S ' REVIEWED BY: City Manage& (4/5ths Vote: Yes_ NolL) BACKGROUND: Early in September, City staff was contacted by the owners of the Palm Springs Suns, Minor League Baseball Club, concerning the tearns possible relocation to Chula Vista, The owners are most interested in relocating to this area because of the weather, proximity of other clubs in California, and proximity to Mexico which could be a beneficial market area (see letter, Exhibit A). ITEM TITLE: City staff met with the owners of the Club and toured potential sites in the City. This report provides the Council with the current status of discussions with the owners and the potential impacts to the City in hosting a professional minor league baseball team. RECOMMENDATION: That Council accept the report and direct staff as to Council's interest in further considering relocation of the baseball club to Chula Vista, including the financing of a stadium. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: The owners of the Palm Springs Suns are willing to move their Western Baseball League franchise to Chula Vista provided that the City, Port District, or other entity construct a 4000 seat stadium for the 1998-1999 baseball season. A site of approximately 10 acres is required to accommodate the stadium and ample parking. The owners toured possible sites in the City with staff and have currently determined that two sites would adequately meet their needs; a site on Port District property on the Bayfront at the intersection of G Street and Sandpiper Way, and a privately owned site adjacent to the proposed Water Park on the Otay Rio Business Park. There are other potential locations that will be analyzed in the near future. The cost of developing the stadium will be approximately $3.5 million and must include ample parking, a public address system, concession areas, scoreboard and meet ADA requirements in accordance with league standards. Under one scenario, construction of the stadium could be financed through the issuance of municipal bonds which would require payments of approximately $350,000 a year to retire the bonds over twenty years. The Sun's have indicated that they would enter into a five year lease with an additional five year option for the facility. )~b~/ 1/ Page 2, Item Ji: h Meeting Date 1 % 1/96 Revenues to cover debt service land maintenance would come from the following sources: EVENTS SOURCE ATTENDANCE # OF CARS $ PER CAR $ PER EVENT 45 WBL games 2000 - 2.2 = 910 x 2.00 $1,820.00 100 Pro soccer Winter baseball 2000 - 2.2 = 910 x 2.00 1,820.00 12 Football 3000 - 2.2 = 1364 x 2.00 2,728.00 5 Miscellaneous - (concerts, fireworks) 4000 - 2.2 = 1818 x 2.00 3,636.00 163 TOTAL EVENTS YEARLY TOTAL PROJECTED REVENUE $314,816.00 'Additional sales tax revenue projected from yearly souvenir sales = $26,800.00 This revenue projection may be optimistic, assuming additional usage by professional sports teams which mayor may not exist locally as viable entities, and concerts which may be problematic to produce due to noise impacts across the bay and upon local neighborhoods. This projection also assumes that the stadium will be in use almost every other night. This would require management and maintenance responsibility, and costs - most of which will be attributable to the owner of the stadium. Since most of the events will be in the evening, another major consideration will be the cost of lighting the facility. Finally, the ownership of the stadium will be responsible for liability, repair, replacement and debt service for the duration of the bonds. The Suns proposal includes a lease term of five years with an additional option period which will depend upon their success in the San DiegolTijuana market areas. Obviously, staff needs to analyze and investigate further the experience of other stadiums and their jurisdictions to fully appreciate the advantages such a facility would bring to our community. Benefits to the Community The community stands to benefit from the proposal due to the availability of a multi-functional facility, the extensive marketing efforts proposed by the Suns organization and the interface with local businesses and service organizations. If the team is successful, it may become a source of community pride, sponsor of local youth activities, and a component of a broader economic development effort. A multi-use stadium facility will likely be available for use by local schools, youth organizations and service clubs on a fee or gratis basis when professional sports events are not scheduled. The facility may also be used for public presentations, events and concerts. Extensive marketing and tie-ins with local businesses including advertising, food service, maintenance, construction and sports related retail will have a positive economic impact if the team is successful. As a major draw of spectators, the stadium should also have a positive impact upon neighboring commercial land uses at both locations cited above. While the facility itself may not be profitable, its overall impact on the community may be very positive. J~ ~ -2 Page 3. Item /tc)) Meeting Date 10/01/96 The proposal to relocate the Suns to Chula Vista warrants further exploration in consideration of the benefits which mav accrue to the City if the franchise is successful. However, if the City is to participate in developing the stadium, there are substantial financial obligations and risks which must be carefully analyzed. This will, most likely, require the hiring of expert consultants to assist City staff. Recent newspaper articles about the experience of Lake Elsinore in developing a stadium have highlighted the worst case scenario of local sponsorship. Other venues such as Rancho Cucamonga have shown these facilities to be of great community worth, both economically and as a source of local pride and identity. FISCAL IMPACT: The cost to the City in further exploring this proposal will include staff time and consultant costs to assist in developing a financial feasibility study. The latter is estimated to cost $15,000. If the City wishes to sponsor development of a stadium through the issuance of municipal bonds, there could be financial obligation and risk involved in the operation and maintenance of the facility, as well as the guarantee of debt service payments estimated at $350,000/year (some, or all of which would be offset by revenues). (fk) M:\HOME\COMMDEV\STAFF.REP\10-08-96\sunsbaI1.113 (September 26, 1996 (3:23pm)) ./ j. h '/ ~) 619-323-7867 (SUNS) FAX 619-323-8649 1901 E. Baristo Rd., Palm Springs, CA 92262 Members of the Western Baseball League September 12, 1996 \' '--'--C(-)~;t/:l:;:llY(~l~~~; k'L,;i [\~T~PTI'r~J1 """'~~ SEP I 6 1996 \ I --' I i ! Mr. Kevin Towers, General Manager San Diego Padres P. O. Box 2000 San Diego, California 92112 .--.------'--' ~.. Dear Kevin: The Suns are seriously considering a move to Chula Vista after weeks of very positive discussions with ci1;y officials. We will have a stadium built for us on one of two sites in Chula Vista, with a temporary location on the same site. Jimmy Lee Soloman from the Commissioner's office reiterated that we do not need approval to move since our league is not a member of the National Association, and that we should deal directly with the Padres on public relations pertaining to the two teams coexistence. It is our intention to be proactive with the Commissioner's office and the Padres to promote baseball in San Deigo. Our decision is primarily based on the wide range of opportunities close to the border for the franchise to offer baseball to lower to middle income families, many of whom are not in a position to consider Major League baseball an option for their entire family. We have been assured by the Western League office that, upon receipt of the Padres 1997 schedule, our home games will be carefully planned around the Padres home schedule. Our intent is not to threaten, but to enhance, awareness and love for the sport. We believe that there is something almost magical about the way baseball can take us out of ourselves for a time and separate us from our worries and cares. This philosophy can only benefit all of baseball. We provide the introduction to the sport and build fans through our "family entertainment" approach both on and off the field. Independent minor league baseball appeals to a different market, a market that must be groomed to take the next step up. We share the philosophy with many young, successful athletes who are motivated by a desire to be the best they can be rather than simply better than anyone else. We view the competitor not as an adversary or an enemy to be defeated at all costs, but as a partner sharing a goal, a catalyst that prompts both of them to do their very best. The Suns will bring many positives to the South Bay area that will enhance the growth of professional baseball in the area. Freedom of movement between Mexico and the U.S. presents a wonderful opportuni1;y for many to enjoy baseball who may otherwise be excluded. We believe that the opportuni1;y to enjoy professional sports should be shared by everyone. Our intent is to form a cooperative relationship that would be based on the following: I. Cultivate fans A. Many fans have turned to independent baseball to keep their best memories alive. The Suns can help cultivate these fans, many of whom were affected by the Major League Baseball strike, to become open to Major League Baseball again through a cooperative marketing and public relations project. B. People who are not baseball fans many times will go to independent minor league games for the fun and entertainment. Many, especially the younger ones, become baseball fans. C. A non-competitive schedule would help satisfY baseball appetites while Padres are on /;i} ~i the road. The Suns will work with the WBL to develop their schedule around the Padres schedule. D. Me><ican fans who can now ride the trolley to Chula Vista to enjoy baseball in 1997 will be able to ride the trolley eKtension in 1998 to Jack Murphy Stadium. The Suns are now forming an alliance with cloud 9 Shuttle and San Diego Transit to shuttle fans from the Trolley stations to the games with the theme "Take the Trolley to the Ballgame". II. Cultivate players A. Several alumni of DiCarlo teams who have played in the major leagues include Ariel Prieto, Darnell Coles, Jeff Conine, Greg Colbrun, Troy Percival, Todd Burns, Mike Warren, John DeSilva, and chuck Carr. other notables include Euclides Rojas, Tom Benedickt, Rod Poissant, and Denny Schaeffer. B. Independent minor league baseball, from its rebirth in 1993 has, according to Howe Sports Data, placed well over 100 players in major league organizations. It can also serve as an opportunity for recently released major leaguers to eKtend their careers and be resigned. A case in point is Darryl Strawberry who the Suns worked very hard to sign in 1996, and who eventually signed with the St. Paul Saints, and then at mid-season with the Yankees. C. Suns have signed players with the A's, the Angels, Boston, Florida, and the Dodgers since their inception in 1994. D. With the talent available in the San Diego area the Suns could be very helpful in developing local talent that could eventually be signed by the Padres. E. The Suns have been involved for over a year in negotiations with the Pacific Coast Me><ican Winter League to finally bring a team to the United States. This would allow the Padres to view the entire Me><ican talent pool as its visiting teams come to Chula Vista. It would also allow a Winter location close to home to develop talent in the Winter league. We are interested in cooperating with the Padres in this area as well. III. Successful history of minor league teams close to major league teams: A. The Seattle Mariners have both Tacoma (AAA) and Everett (Short A). B. The phillies have Scranton (AAA) and Redding (M) C. Boston has Pawtuckett (AAA) and Lowell, Massachusetts (Short A). D. Many major league teams have one or more teams not affiliated with their organizations close to them, including the Long Beach Riptide of the Western League and the St Paul Saints of the Northern League. Prejudice and discrimination are reversible because both come from fear. Our intent is to sidestep negatives and get down to being good neighbors and working together toward the betterment of the game and the organizations. It is our feeling that we know our craft, we communicate clearly, and we have open minds. I look forward to meeting with you soon to discuss our move to Chula Vista and other issues of interest. We intend to be proactive with the Commissioners office and the Padres. Sincerely, ~IZL'~ Don DiCarlo President cc: John Moores, Padres principal owner Larry Lucchino, Padres President Priscilla Oppenheimer, Padres Director of Minor Leagues John Goss, Chula Vista City Manager Chris Salamone, Chula Vista Economic Development Scott Alevy, Chula Vista City Council David Baron, Attorney at Law r-;::::::n n n nc;:::::-; /("!!',~ Miffi LiGUi;B~Eii~. : Jib Members of fhe Western Baseball League ~ L, -- SEP-19-1996 13:22 PALM SPRINGS SUNS B-BALL 619 323 8649 P.02 Alt01HlsfS AT LAS' -,,""""" 111<"" 1,.-.0< 1,.)0.... C".....A.C<>IA>N 1\IOtI TAnOUtTt l:ANnN 'WAr, Sum !.I, P,.L~ SrlI.......l:!\I~HIINIA 911la '"""~ (JI9~ J,U-In1 ...." 111-IIC1 September 19, 1996 / ~;1D o. nft'D'J! John D. GOBS, City Manager . City of Chula Vista... . ..'"'.......... ..,,,,-- 276 Fourth Avenue "1" 'pO"'",,: " ".' Chula Vist., C.lifo~nia' 91910 (~~..' -. .,") e::,:' Deer Mr. GOBS: This letter o~ intent sets forth ~he basic terms and , ' . conditions under wbi~h the Palm springs Suns will move its Wester~ Baseball League franchise to the City of Chula Vista. This letter confirms some basic understandings between the parties and contemplates more formal negotiations, which will ultimately culminate in a for~l writ~en agreement and, most likely, a DCA. This letter will confirm that the Palm SprinQs Suns are willing to move their team from the Palm Springs area to Chula Vista provided a 4,OOO-seat .tadium is built and ready for occupancy by the beginning of the 1998-99 seaton. It i& understood that the ~ost of the facility will be approximately $3.~ Million and will have a capacity of 4,000 seats with sufficient parking to accommodate the tea~'s patrons. The facility shall include certain specified improvement. and sdhere to prOVided specifications for a public address system, scorobo.rd, concession facilities and adherence to all ADA handicap regulations. The parties have tentatively aqreed on the possibility of two sites, one near Dtai Ranch, which facility is near the ~nited States Olympic Training Facility and will be built in conjunction with a proposed 20,OOO-seat MCA amphitheater and Roqinq Waters complex. The other site. is identified as the eOrt Authority Ipcation. 1GIK.!Dt.~1iI~OV'.Zft ,;: /11> /w J ..1 . , SEP-19-1996 13:22 PALM SPR I NGS SUNS B-BALL 619 323 8649 P.03 John D. Goss, City Manag@r City Of Chula Vista September 19, 1996 Page 2 The Palm Spring~ suns have agreed and will use Chula Vista in the name ot the team. The team will siqn a long-term leaee in the new facility pro~ided it is built to our specification8 a8 generally referenced 8bove. The team will use its best efforts to become involved in bringing the first ~erican fraRchise of the Mexican Leaque to the United States in the City of Chu1a Vista for winter league play. The team would also be prepared to give the City, for at least the first year of operation. 50 tickets pet game for marketing and promotional purposes for the City. .m' ,..:... ~,..,....'._.. . ....-. The t..m will"'6bt~litj;pp:g'.ij.~l f6i: the lI\o~e fr.",(:'th~:itg~fe.rn Baseball Leaque and will commit to play a minimum of 45 regular season game., plus winter lea~e and oth.~ special even~s as can be scheduled. The team would a1ao like to have the right to use the parking lot and field adjacent to the stadium for other community event~ such as community baseball C~Ps' 3-on-J basketball, volleyball, roller hockey. softball, soccer and championship regional high school football tournaments, as a community service. This letter of intent is not intended to bind either side, but eeta forth t.I.. colAllli. tment of the Palm sprinqsSuns w1~h respect to the establishment of a Western ~asebal~ League frlltlchise in Chula V.ista, CalifoJ:nla. .. ~ery truly yours, DL5:wda c: Mr. Donald A. DiCarlo Idllufw::Ai1,o\,.,ag,. Un! " jJ).-? .' , , -1