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HomeMy WebLinkAboutAgenda Packet 1996/10/15 Tuesday, October 15, 1996 6:00 p.m. "I declare I:Inder penalty of perjury that I am employed by the City of Chula Vista in the Office of the City Cler~ and that I posted this Agenda/Notice on the Bulletin Board at the Public Services Bu;~din~ ~ at City Hall on DATEDdO"I/-tiJ~ SIGNED . ~~ " Rel!Ular Meetinl! of the City of Chula Vista City Council Council Chambers Public Services Building CALL TO ORDER 1. ROLL CALL: Councilmembers Alevy _, Moot _, Padilla _, Rindone _, and Mayor Horton _' 2. PLEDGE OF ALLEGIANCE TO THE FLAG. SILENT PRAYER 3. APPROVAL OF MINUTES: October 1, 1996 4. SPECIAL ORDERS OF THE DAY: a. Oath of Office: Joseph Noble - Civil Service Commission (Commission appointment). b. Terry Thomas, President of the International Friendship Commission, wiIl give an update on the forthcoming visit of the Japanese delegation from our sister city, Odawara, Japan. c. Special presentation to the Mayor and Council by Superintendent Ed Brand, Sweetwater Union High School District, on the Advanced Curriculum through Technology Grant project. d. I Love A Clean San Diego is an affiliate of Keep America Beautiful and one of the Leading Environmental Public Education and Advocacy groups in Southern California. They have selected the City of Chula Vista as Environmental Government Partner of the Year. Michelle Moreno, Executive Director of I Love A Clean San Diego, will present the award to the Mayor and Council. ***** Effective April 1, 1994, there have been new amendments to the Brown Act. The City Council must now reconvene into open session to report any final actions taken in closed session and to adjourn the meeting. Because of the cost involved, there will be no videotaping of the reconvened portion of the meeting. However, final actions reported will be recorded in the minutes which will be -available in the City Clerk's Office. ***** CONSENT CALENDAR (Items 5 through 10) The staff recommendations regarding the following items listed under the Consent Calendar will be enacted by the Council by one motion without discussion unless a Councilmember, a member of the public or City staff requests that the item be pulled for discussion. If you wish to speak on one of these items, please fill out a "Request to Speak 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.) 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. Agenda -2- October 15, 1996 5. WRITTEN COMMUNICATIONS: a. Letter from the Deputy City Attorney stating that there were no reportable actions taken in Closed Session on 10/8/96. It is recommended that the letter be received and filed. 6. RESOLUTION 18456 AMENDING THE CITY OF CHULA VISTA VOLUNTARY TIME OFF (VTO) POLICY - In adopting the budget, Council approved several changes to the VTO Policy that will serve as a benefit to employees. Those changes are: increasing the allowable VTO per pay period to ten hours for those employees who work eight hour days; allow VTO to be taken in one-half hour rather than one hour increments; overtime and VTO will be allowed in the same pay period, however, not in the same week. These changes will not affect Mid-Management and Executive employees who must still take VTO in full day increments. Staff recommends approval of the resolution. (Director of Human Resources) 7. RESOLUTION 18457 (1) APPROVING CLOSURE OF CENTER STREET BETWEEN THIRD A VENUE AND CHURCH A VENUE ON THURSDAY AFTERNOONS BETWEEN 2:00 P.M. AND 7:00 P.M. FOR FARMERS' MARKET SUBJECT TO CONDITIONS; (2) WAIVING BUSINESS LICENSE FEES FOR PARTICIPATING VENDORS; AND (3) APPROPRIATING $2,500 FOR ADVERTISING - On 10/3/95, the City approved the closure of Center Street between Third Avenue and Church Avenue to accommodate a Farmers' Market on Thursday afternoon from March 1995 to October 1995. The Market is now so popular with the residents, the sponsoring organization, Chula Vista Downtown Business Association (DBA) and the City would like to extend it to be year-round. To implement the extension, the street closure and business license waiver must be authorized and the DBA has requested fmancial assistance for advertising. Staff recommends approval of the resolution. (Director of Community Development) 4/5th's vote required. 8. RESOLUTION 18458 ACCEPTING FILING OF ENGINEER'S REPORT BY THE CITY ENGINEER ON THE COST OF CONSTRUCTION AND SETTING NOVEMBER 12, 1996 AT 6:00 P.M. AS THE DATE AND TIME FOR PUBLIC HEARING ON ASSESSMENTS - On 7/25/96, pursuant to the Improvement Act of 1911, Council awarded a contract in the amount of $53,108 (including contingencies) for the alley improvements from "J" Street to Kearney Street between Elm Avenue and Second Avenue to Fox Construction Company. The work is now completed and improvements have been accepted by the City Manager. Staff recommends approval of the resolution. (Director of Public Works) 9. RESOLUTION 18459 APPROVING THE SECOND AMENDMENT TO RESTATEMENT OF THE AGREEMENT WITH SMITH AND KEMPTON FOR ADVOCACY AND PLANNING SERVICES IN CONNECTION WITH TRANSPORTATION FACILITIES AND THE EASTERN CHULA VISTA STRATEGIC PLAN AND APPROPRIATING $178,000 FROM THE TRANSPORTATION DEVELOPMENT IMPACT FEE FUND - On 8/8/95, Council approved an agreement with Smith and Kempton to implement steps in Agenda -3- October 15, 1996 the East Chula Vista Strategic Plan. A first amendment to that agreement was approved on 1/23/96. A significant amount of progress has been made towards completing the tasks contained in the agreement and first amendment. The date of completion contained in the first amendment extended the contract to 1/23/97. Not all of the work is complete and, therefore, a second amendment to the contract needs to be approved to complete the tasks. Staff recommends approval of the resolution. (Director of Public Works) 4/5th's vote required. 10. RESOLUTION 18460 APPROVING COOPERATIVE PROJECTS WITH THE COUNTY OF SAN DIEGO AND APPROPRIATING FUNDS - There are two road projects in the Bonita area that the County of San Diego is processing which have small portions in the City. The projects are: (1) Chip Seal of Sweetwater Road; and (2) Construction of a third west bound lane at Plaza Bonita Road and Bonita Road. The County has requested City financial participation for the portions of work within City limits. Staff recommends approval of the resolution. (Director of Public Works) 4/5th's vote required. * * * END OF CONSENT CALENDAR * * * PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES The following items have been advertised and/or posted as public hearings as required by law. If you 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. 11. PUBLIC HEARING ORDINANCE 2690 12. PUBLIC HEARING ADOPTING OTAY RANCH PRE-ANNEXATION DEVELOPMENT AGREEMENT WITH 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 10/1/96. ADOPTING OTAY RANCH PRE-ANNEXATION DEVELOPMENT AGREEMENT BETWEEN THE CITY OF CHULA VIST A AND BALDWIN BUILDERS (first reading) REGARDING EXISTING AND PROPOSED RATES AND CHARGES FOR COX COMMUNICATIONS' BASIC SERVICE TIER AND ASSOCIATED EQUIPMENT AND CABLE PROGRAMMING SERVICE 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 Agenda -4- October 15, 1996 its Cable Programming Services tier. This charge is subject to FCC regulation, thus any complaints must be filed with the FCC. At the same time, Cox proposed to raise its Maximum Permitted Rates for the Basic Service Tier, which is subject to City regulation. Both of these changes were based on costs to upgrade Cox's infrastructure. Further cost-based increases in Maximum Permitted Rates were requested in July, along with decreases in the rates for associated equipment/installations. Staff recommends approval of the resolution. (Principal Management Assistant Young) Continued from the meeting of 10/1196 RESOLUTION 18447 DISAPPROVING UPGRADE-RELATED INCREASES IN MAXIMUM PERMITTED RATES FOR THE BASIC SERVICE TIER; DIRECTING ST AFF 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 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 Form" 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 staffrecommendations may in certain cases be presented in the alternative. Those who wish to speak, please fill out a "Request to Speak" form available in the lobby and submit it to the City Clerk prior to the meeting. Public comments are limited to five minutes. 13. REPORT STATUS OF PLANNED IMPROVEMENTS TO THE I-80S/TELEGRAPH CANYON ROAD INTERCHANGE - In February 1996, staff initiated design efforts aimed at implementing the final phase of planned improvements at the 1- Agenda -5- October 15, 1996 80S/Telegraph Canyon Road interchange. This project is the top pnonty interchange improvement among those currently programmed in the Eastern Area Development Impact Fee Program. The primary objective of the project is to improve the flow of traffic along eastbound Telegraph Canyon Road through the interchange, thereby complementing previous improvements made for westbound travel. Staff recommends Council accept the report and direct staff to proceed with environmental studies. (Director of Public Works) 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 REPORT(S) a. Scheduling of meetings. 15. MAYOR'S REPORT(S) a. Discussion of City Attorney process. Continued from the meeting 10/8/96. 16. COUNCIL COMMENTS Council member Rindone a. Request for assignment of Department Oversight within the City Manager's Office as of 10/1/96. Continued from the meeting of 10/1/96. b. Research request on Internet E-mail. ADJOURNMENT The meeting will adjourn to (a closed session and thence to) the regular City Council meeting on October 22, 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. ***** Agenda -6- October 15, 1996 CLOSED SESSION Unless the City Attorney, the City Manager or the City Council states otherwise at this time, the Council will discuss and deliberate on the following items of business which are pennitted by law to be the subject of a closed session discussion, and which the Council is advised should be discussed in closed session to best protect the interests of the City. The Council is required by law to return to open session, issue any reports of final action taken in closed session, and the votes taken. However, due to the typical length of time taken up by closed sessions, the videotaping will be tenninated at this point in order to save costs so that the Council's return from closed session, reports of final action taken, and adjournment will not be videotaped. Nevertheless, the report of final action taken will be recorded in the minutes which will be available in the City Clerk's Office. 17. CONFERENCE WITH LEGAL COUNSEL REGARDING: 1. Existing litigation pursuant to Government Code Section 54956.9 . Christopher vs. the City of Chula Vista. 2. Anticipated litigation pursuant to Government Code Section 54956.9 . Metro sewer issues. PUBLIC EMPLOYEE RELEASE - Pursuant to Government Code Section 54957 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 ***** October 9, 1996 MEMO TO: Carla Griffin, City Clerk's office ~';J Patricia salvaCiOKMaYOr/council office FROM: SUBJECT: SPECIAL ORDERS OF THE DAY - OCTOBER 15, 1996 Terry Thomas, President of the International Friendship Commission, will give an update on the forthcoming visit of the Japanese delegation from our sister city Odawara, Japan. 4 b - I ~~~ iiiaiiii ~~~~ ---- CllY Of CHUlA VISTA OFFICE OF THE CITY ATTORNEY Date: From: October 9, 1996 The Honorable Mayor and City Council Glen R. Googins, Deputy City Attorney~ To: Re: Report Regarding Actions Taken in Closed Session for the Meeting of 10/8/96 The city Council met in Closed Session to discuss issues and Public Employment Release. Metro Sewer The Deputy City Attorney hereby reports to the best of his knowledge from observance of actions taken in the Closed Session of October 8, 1996, there were no actions that are required to be reported under the Brown Act. GRG:lgk C:\lt\clossess.no ~~/ 276 FOURTH AVENUE. CHULA VISTA. CALIFORNIA 91910 . (619) 691-5037 . FAX (619) 585-5612 llY f'<>sIWwner Aeo,dod P"", ~/~a~/' October 9, 1996 SUBJECT: The Honorable Mayor and City Council 1(\\ John D. Goss, City Manage~ ~ ~Il\ City Council Meeting of October 15, 1996 TO: FROM: This will transmit the agenda and related materials for the regular City Council meeting of Tuesday, October 15, 1996. Comments regarding the Written Communications are as follows: Sa. This is a letter from the Deputy City Attorney reporting that there were no reportable actions taken by the City Council in Closed Session on October 8, 1996. IT IS RECOMMENDED THAT THIS LETTER BE RECEIVED AND FILED. JDG:mab COUNCIL AGENDA STATEMENT ITEM 6 MEETING DATE 10/15/96 ITEM TITLE: RESOLUTION 1'3tI~Amending the City of Chula Vista Voluntary Time Off (VTO) Policy. SUBMITTED BY: DIRECTOR OF HUMAN R~~URCES t,G REVIEWED BY: CITY MANAGE~ ~ ~\ (4/5th Vote: Yes_ NoXI In adopting the budget, Council approved several changes to the Voluntary Time Off Policy that will serve as a benefit to employees. Those changes are: . Increasing the allowable VTO per pay period to 10 hours for those employees who work 8 hour days. . Allow VTO to be taken in % hour rather than 1 hour increments. . Overtime and VTO will be allowed in the same pay period; however, not in the same week. These changes will not affect Mid-Management and Executive employees who must still take VTO in full day increments. RECOMMENDATION: Adopt the attached resolution amending the Voluntary Time Off Policy to provide for 10 hours of VTO per pay period in a minimum of % hour increments; and allow overtime and VTO in the same pay period, though not in the same week. BOARD/COMMISSION RECOMMENDATION: N/A DISCUSSION: Prior to finalization of the budget, several City employees presented suggestions for revising and, in their opinion, improving the existing Voluntary Time Off Policy. Those aforementioned suggestions will allow employees more flexibility in the utilization of Voluntary Time Off to facilitate child care; enable employees to have more flexibility scheduling in courses and seminars; allow some employees the ability to reduce their 1 Co - I workday by % hour in order to meet a myriad of needs; and provides that necessary overtime not be restricted by VTO in the same pay period. Voluntary Time Off Policy adopted by Council 5/25/93 has been successful in that it's allowed employees some flexibility in designing their work week while providing some cost-savings to departments. It has presented few administrative complications and in those departments where it is utilized, it has been successful. This staff opinion that these additional changes will have no negative impact on departments and will allow employees flexibility that could make a significant difference meeting their needs. FISCAL IMPACT: While the proposed changes may have some positive fiscal impact for the City, until employees actually take advantage of the these policy changes, it is impossible to determine the amount of savings to be recognized. While that savings resulting from these changes may not be significant, the policy overall has provided not only the positive fiscal impact, but has been a factor in raising employee morale. 2 to- 2 RESOLUTION NO.~& RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE CITY OF CHULA VISTA VOLUNTARY TIME OFF (VTO) POLICY WHEREAS, in adopting the budget, Council approved the following changes to the Voluntary Time Off POlicy that will serve as a benefit to employees: · Increasing the allowable VTO per pay period to 10 hours for those employees who work 8 hour days. · Allow VTO to be taken in 1/2 hour rather than 1 hour increments. · Overtime and VTO will be allowed in the same pay period; however, not in the same week. WHEREAS, this change will not affect Mid-Management and Executive employees who must still take VTO in full day increments. NOW, THEREFORE, BE IT RESOLVED the city Council of the ci ty of Chula Vista does hereby amend the City of Chula Vista Voluntary Time Off (VTO) Policy as shown on Exhibit "A". Presented by Approved as to form by Candy Emerson, Director of Human Resources C:\rs\policy.vto (p-3- I COUNCIL POLICY I CITY OF CHULA VISTA SUBJECT: Revising the vro POLICY (Volunteer Time POLICY EFFECTIVE Off Policy) NUMBER DATE PAGE 10/15/96 1 of 1 ADOPTED BY: Resolution No. 18456 I DATED: Employees in permanent and permanent part-time positions may elect to take up to the equivalent of 1 work day off per pay period without pay for personal reasons, subject to staffing needs, * and with the prior approval of their Department Head. FLSA - Covered employees may take VTO in increments of Ih hour, and FLSA - Exempt employees (Executives and Middle Managers) must take VTO in full day increments. Credit toward sick leave, vacation and retirement will not be affected. VTO shall apply toward time in service for step advancement, completion of probation and seniority for purposes of layoff. VTO shall not apply toward accumulated hours for overtime. VTO shall be granted without requiring employees to first use accumulated vacation, sick leave and compensatory time off. The City retains the right to revoke or modify this policy and any VTO granted hereunder at anytime. * 10 hours per pay period; 9 hours for a 9 hour regular workday and 10 hours for a 10 hour workday, Fire Suppression personnel may take up to 24 hours in a 24 day duty cycle. &-Lf COUNCIL AGENDA STATEMENT REVIEWED BY: Item~ Meeting Date 10-15-96 Resolution I Zt.fc; 7 (1) Approving Closure Of Center Street Between Third Avenue And Church Avenue On Thursday Afternoons Between 2:00 p.m. and 7:00 p.m. For Farmers' Market Subject To Conditions, (2) Waiving Business License Fees For Participating Vendors; And, (3) Appropriating $2,500 for Advertising Community Development Director ( _~ ' City ManagO~ ~~ (4/5ths Voto: VosX- No_J ITEM TITLE: SUBMITTED BY: BACKGROUND: On October 3, 1995, the City of Chula Vista approved the closure of Center Street between Third Avenue and Church Avenue to accommodate a Farmers' Market on Thursday afternoons from March 1995 to October 1995. The Market is so popular with the residents, the sponsoring organization (Chula Vista Downtown Business Association) and the City would like to extend it to be year-round. To implement the extension, the street closure and business license waiver must be authorized and the DBA has requested financial assistance for advertising. RECOMMENDATION: That the City Council adopt a resolution: 1. Approving the closure of Center Street between Third Avenue and Church Avenue on Thursday afternoons for a fourteen month period from November 1996 through December 1997 between 2:00 p.m. and 7:00 p.m. for the Farmers' Market subject to conditions, 2. Waiving the business license fees for the vendors participating in the Farmers' Market; and, 3. Appropriating $2,500 to the Chula Vista Downtown Business Association for Advertising. BOARDS/COMMISSIONS RECOMMENDATION: In 1995, when the Market was recommended to be relocated to Center Street, the Town Centre Project Area Committee and the Safety Commission reviewed the proposal and recommended approval. DISCUSSION: Last year, when the DBA made the decision to relocate the Market from Third Avenue, the decision also was made to close the Market during the winter months (November through February) because of the problem and cost of lighting the area after dark and the reduced revenue generation during the winter. Because many Market customers and participating farmers have 1, \ Page 2, Item f1 Meeting Date 10-15-96 requested that the Market continue through the winter, the DBA has reevaluated the decision to close this winter. There are three significant obstacles that the DBA has identified: lighting, security, and advertising costs. The DBA President, Dave Rossi, met with SDG&E and found that two lights can be mounted on existing poles adjacent to Center, Street. The cost for electricity and installation will be about $500. The Association will pay for this cost. The DBA will need assistance with security and advertising. It will be dusk to dark after 5:00 p.m. during the winter. The Market ends at 6:00 p.m. and clean-up usually ends between 6:30 and 7:00 p.m. Since the event is an open market, many of the customers are seniors, and customers will park their vehicles off the main avenue, security is a concern. The DBA is requesting that the police increase their patrol of the area after dark while the market operates and that a Senior Patrol team be assigned to the vicinity between 5:00 p.m. and 7:00 p.m. The DBA established the Market as a promotional event to bring people to the Downtown and expose them to the stores, restaurants and services available. It has been successful in that respect. The Farmers' Market is not a direct money-making operation for the Association. And, as indicated earlier, it was closed during the winter last year to reduce annual average costs. To make the Market work, the DBA has renegotiated their current contract with their Market manager in order to reduce operational costs during the lower revenue winter months. The Association has relinquished their percentage of proceeds from the Market sales between November and March and the Market manager has relinquished his guaranteed salary and will be paid based on commission only. Since the farmers will participate only if a reasonable amount of sales are reached weekly, the success of the market will largely depend on adequate advertisement of the event. The DBA estimates that an advertising budget of $3,000 could provide adequate media coverage for November through February. Advertising will include ads in the Star News and Union Tribune and printing for flyers. The DBA has indicated that the Association's budget cannot absorb the full advertising cost. The DBA can contribute $500 toward advertising and is requesting that the City assist by contributing the balance of $2,500. The DBA plans to operate the Market within the Center Street right-of-way as it is currently operating subject to conditions in Exhibit A of the attached resolution. FISCAL IMPACT: The DBA will assume all costs for the operation of the Market and evening lighting and a portion of the advertising expense. If the City agrees to contribute toward advertisement of the Market, the direct cost to the City will be $2,500. City funds are available in the Council's Contingency Account No. 100-0730-5399 or by appropriation of funds from the General Fund Reserve. Revenue from the parking meters located along the portion of Center Street proposed for closure will be lost. Those revenues include income from (8) 1-hour meters and (10) 10-hour meters for about 4 hours per week; however, those revenues will most likely be transferred to the public 1-2- Page 3, Item ~ Meeting Date 10-15-96 parking lot located in the back of the Third Avenue businesses in the vicinity of the market and will most likely be increased as a result of the market which will off-set the loss. The lost parking revenue is estimated to be $13.60 per week and the increased parking lot revenue is estimated to be $10.50. Estimated Lost Revenue Street Parking 10 spaces x $.10 x 4 hrs. = $ 4.00 8 spaces x $.30 x 4 hrs. = $ 9.60 $1 3.60 Estimated Increased Revenue Adjacent Parking Lot 351 spaces x $.10 x 4 hrs. = $10.50 The market accommodates about 14 vendors. Annual business license fees per vendors is $52.50. If the City waives the business license fees for those vendors participating in the market, a maximum of $735 in revenue will not be remitted for the year. However, it is anticipated that the market will stimulate a increase in sales within the Downtown which should in turn result in a net increase in area sales tax to the City. It is expected that the increase in sales tax will off-set any loss in business license revenue. (PS) M:\HOME\COMMDEV\STAFF.REP\ 1 0-15-96\fmktext.113 [October 9, 1996 (12:02pm)] IThe adjacent public parking lot at Church and Center Street has 71 metered spaces at $.10 an hour. The lot is normally half full. Based on the current Farmer's Market parking patterns, it is anticipated that the Church and Center parking lot will be full during the Market hours. That means it can be expected that during the Market an additional 35 spaces will be occupied at $.lO/hr. for 3 hrs. (3 p.m. to 6 p.m. while the meters are in operation). 1-3- RESOLUTION NO. Ji.!:12t1 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING CLOSURE OF CENTER STREET BETWEEN THIRD AVENUE AND CHURCH AVENUE ON THURSDAY AFTERNOONS BETWEEN 2:00 P.M. AND 7:00 P.M. FOR FARMERS' MARKET SUBJECT TO CONDITIONS, WAIVING BUSINESS LICENSE FEES FOR PARTICIPATING VENDORS; AND, APPROPRIATING $2,500 FOR ADVERTISING WHEREAS, the City Council of the City of Chula Vista established a Business Improvement Area on November 16, 1971 which created the Downtown Business Association; and, WHEREAS, the Downtown Business Association has requested to close Center Street between Third Avenue and Church Avenue on Thursdays between 2:00 pm and 7 pm in order to conduct a certified Farmers' Market special event; and, WHEREAS, the Downtown Business Association has requested a waiver of the Business License Fee for the vendors taking part in the Farmers' Market special event; and, WHEREAS, the Downtown Business Association has requested $2,500 for advertising the Farmers' Market during the months of November and December 1996 and January and February 1997; and, WHEREAS, the proposed Farmers' Market special event will further the Redevelopment effort within the Town Centre I Project Area; and, NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby find, order, determine and resolves: as follows: 1. That Center Street shall be closed to vehicular traffic between Third Avenue and Church Avenue on Thursday afternoons between 2:00 pm and 7:00 pm for a Farmers' Market special event between November 1, 1996 and December 31, 1997, subject to sooner revocation in the sole discretion of the Council, subject to conditions attached hereto as Exhibit A as though fully contained herein; and, 2. The City's Business License Fee for the vendors participating in the Farmers' Market is hereby waived; and, 3. Two-thousand, five hundred dollars ($2,500) from the City Council Contingency Account 100-0730-5399 to the Downtown Business Association is hereby appropriated for Farmers' Market advertising. Presented by Nt.. ~~ ~mone Community Development Director Approved as to form 'l~L.\ EXHIBIT A CONDITIONS OF APPROVAL 1 . The subject street closure shall be permitted for fourteen months from November 1, 1996 to December 31, 1997 unless sooner revoked (in the sole discretion of the City Council) to accommodate the Downtown Farmers' Market. At the end of that time, the Farmers' Market shall be evaluated by the Community Development Director and findings shall be reported to the City Council. The City Council, at that time, may consider an extension of the street closure for the continuation of the special event for the next year. 2. All vendors or activities to take place within the closed street right-of-way, other than those approved herein shall be approved by the Community Development Director prior to their participation in the Farmers' Market. Approved Vendors and Activities a) Certified Farmers' Market 1 b) Arts and Crafts hand made by the seller c) Promotional activities that enhance the Market but do not detract from the Downtown business environment or create significant noise, congestion, or safety hazards d) Downtown Business Association (DBA) merchants and businesses in good standing may sell or demonstrate merchandise and services that are currently sold within their Downtown premises. 3. The DBA shall provide, set-up and remove all signs, barricades, temporary traffic control devices related to the Farmers' Market and street closure in a timely manner (set-up completed no later than 3:30 p.m. and removal completed no later than 7:00 pm). All traffic control devices, signs, and barricades shall be placed in accordance with the sign placement plan approved by the City Traffic Engineer shall conform to the State of California traffic control requirements. 4. The DBA will be responsible for the coordination and implementation of all activities and regulations related to the street closure and Farmers' Market and the appropriate City Chula Vista departments and staff and any applicable County, State, or Federal requirements. 5. The DBA shall provide evidence of comprehensive general liability insurance with per occurrence coverage (a) in minimum coverage amounts approved by the City, (b) issued by an insurance company approved by the City, and (c) with a policy endorsement satisfactory to the City, naming the City of Chula Vista as additional insured. 6. The DBA shall execute an agreement to hold the City harmless from any liability from the activities within the street right-of-way and resulting from the Farmers' Market special event. 1 A certified Farmers' Market is a location approved by the County Agricultural Commissioner, where certified farmers offer for sale only those items they grow themselves. Only the immediate family and salaried employees of a certified producer may act for and sell the products of that producer. Items include fresh and dried fruits and herbs, vegetables, nuts, honey, eggs house plants and cut flowers, jerky, fresh fish, olives and baked goods. 'l,S 7. The DBA shall be responsible for implementing the following Storm Drain Pollution Prevention Program for the Downtown Farmers' Market: a) Debris and/or other pollutants shall not be swept or otherwise made/allowed to go into storm drain inlets or facilities at any time. b) The street right-of-way shall be thoroughly swept and all solid debris shall be placed in containers following the close of the Farmers' Market. c) The street and sidewalks may be washed with water to prevent health hazards. d) This plan may be revised as necessary to prevent, control, or eliminate the discharge of pollutants to the storm drain system resulting from the outdoor activities of the downtown Farmers' Market. 8. This permit shall be subject to such additional conditions and modifications as may be deemed necessary or appropriate by the City in order to protect the public health, safety, and welfare. [m: \hom e \com md ev\resos \ farm m kt. res] 'l,LP COUNCIL AGENDA STATEMENT Item--L Meeting Date 10/15/96 ITEM TITLE: Resolution 1645<<taccepting filing of Engineer's Report by the City Engineer on the cost of construction and setting November 12, 1996 at 6:00 p.m. as the date and time for a public hearing on an assessment district for alley improvements east of Second Avenue. Director of Public Works rrt/' City Manager~ ~ @I (4/5ths Vote: Yes_NoX) SUBMITTED BY: REVIEWED BY: On July 25, 1995, pursuant to the Improvement Act of 1911, also known as the 1911 Block Act, the City Council by Resolution No. 17979 awarded a contract in the amount of $53,108 (including contingencies) for the alley improvements on the alley east of Second Avenue from J Street to Kearney Street to Fox Construction Company. The work is now completed and improvements have been accepted by the City Manager. A resolution must now be approved to accept filing of the Engineer's report on the cost of construction and to set the public hearing on the assessments. RECOMMENDATION: That Council adopt a resolution: 1) Accepting filing of Engineer's Report by the City Engineer on the cost of construction of the alley improvements on the alley east of Second Avenue from J Street to Kearney Street. 2) Setting November 12, 1996, at 6:00 p.m. as the date and time for public hearing on the proposed assessments for the alley improvements on the alley east of Second Avenue from J Street to Kearney Street. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: On November 23, 1993 the City Council accepted a petition signed by the majority of the affected property owners to form a special assessment district (1911 Block Act) for the construction of the alley improvements just to the east of Second Avenue and located between J Street and Kearney Street. On May 16, 1995 Council held a public hearing and approved the formation of Assessment District 93-01. r~ I Page 2, Item~ Meeting Date 10/15/96 On July 25, 1995 Council awarded the contract for the alley improvements to Fox Construction. Fox Construction Company completed the construction of alley improvements on October 30, 1995. A final inspection was made, all work was found to be completed in accordance with the contract plans and specifications and to the satisfaction of the City Engineer. The improvements have been accepted by the City Manager. Staff has now received, and the City has paid, all the contractual invoices for this project and completed the accounting of the expenditures. If the assessments are approved by Council, the City will be reimbursed $52,172 of the construction cost by the various property owners over a 10-year period. A public hearing is proposed to be set for November 12, 1996 at 6:00 p.m. to take testimony on the assessments after which the actual assessments may be levied on the various parcels. Funds for this project were included in the FY95/96 budget for project STL-220. The improvements were financed by the City and AD 93-01 was formed pursuant to the 1911 Block Act to obtain reimbursement for the improvement and other miscellaneous costs in accordance with Council Policy Number 505-01. The Act is a financing mechanism which authorizes local agencies to impose assessments on benefitting properties to fund the construction of public improvements. The property owners have an option of paying local assessments during the 30 day pay-off period following confirmation of assessments. If the assessments are not paid during that time or are deferred, the City will collect the unpaid balance in semiannual installments over a period of ten (10) years at an interest rate of 7% per annum. Property owners may pay the balance of their assessments at any time during the ten year repayment period without penalty. In response to property owner's concerns, the City Council approved Resolution # 17980 (attached), establishing the criteria to qualify for deferral of the payment of their assessments to lessen the financial impact and other financing options. Qualifying property owners who request deferred payment and meet the criteria established by Council Resolution 17980 must enter into a deferral agreement with the City. Staff will review deferral applications between the period of November 13 through December 12, 1996. Should any property owner within the district meet one of the criteria provided in Resolution 17980, a deferral agreement will be prepared and brought before City Council for approval. In accordance with the provisions of Chapter 13 of the Improvement Act of 1911 of the Streets and Highways Code of the State of California any deferral of assessments shall be approved by a Council Resolution. 7-2 Page 3, Item~ Meeting Date 10/15/96 Accepting the Engineers Report and setting a date for public hearing on the assessments is the first step in finalizing this project and setting the assessments. Other future actions by the City are outlined below: NOTICING & FUTURE ACTIONS ACTION DATE 1. Council Meeting (tonight's agenda) a). Accept filing of Engineer's Report b). Set Public Hearing on Engineer's report 10/15/96 2. Notice of Public Hearing to Property Owners mailed out 10/17/96 3. Council Meeting a). Public Hearing on Engineer's Report b). Adopt Resolution Confirming Engineer's Report c). Adopt Resolution for Notice of Lien 11/12/96 4. File Assessment Diagram 11/12/96 a). City Clerk b). County Recorder 5. Deferral period for qualifying property owners begins 11/13/96 6. Notice of Assessment & Begin 30 day pre-payment period 11/14/96 7. End deferral period for qualifying property owners 12/12/96 8. End 30 day Pre-payment period 12/13/96 9. Council Meeting (for property owners qualifying for deferrals, if any) 01/07/97 a). Adopt Resolution approving deferral agreements 10. Due Date of First Billing 04130/97 All property owners within this assessment district of 17 parcels have been sent a copy of this report and have been mailed copies of tonight's report to City Council meeting. FISCAL IMPACT: The following is a breakdown of all costs associated with the project f-J Page 4, Item~ Meeting Date 10/15/96 Table I - Costs for Alley Budgeted Contract Actual Funded Amount Award Cost By Construction $65,500 $53,108 $51,099 Assessment District * Miscellaneous $6,500 $5,392 $1,073 Assessment (10% contingency) District PROPERTY OWNERS' SHARE OF PROJECT $52,172 Assessment COSTS District * * Staff $24,000 $24,000 $15,212 General Fund Project Total $96,000 $82,500 $67,384 AD & GF CIP # 600-6001-STL-220 * Cost includes postage, advertising, blueprinting etc. ** Staff costs (A Y-091) includes engineering design and inspection costs. The property owners share of the improvements excludes the contribution by the City for staff costs as authorized by Council Policy #505-01. The City's General Fund has financed the up front cost of constructing the improvements by appropriating $72,000 under CIP Project #STL-220 and budgeting another $24,000 in in-kind staff contribution. Through the assessment district formation process, the City will be reimbursed the $52,172 construction costs encumbered with 7% interest per annum over a period of ten (10) years through AD 93-01. City staff cost including engineering design, inspection and district formation was approved as a $24,000 in kind contribution. Only $15,212 of the original amount was spent which will be absorbed by the City in accordance with Council Policy #505-01. Although $96,000 was budgeted for this project, the final cost was only $67,384 (70%) of the fund total ($52,172 + $15,212). This was accomplished due to the excellent construction bids received and reduced staff time needed to complete this project. The construction costs savings of$19,834 (27.5%) ($72,006- $52,172) in unused appropriated funds for this project will be returned to the General Fund. In addition to the cost summarized above, the City will maintain the concrete alley improvements. Attachments: A. Engineer's Report ' B. Map for AD 93-01 . ~L C. Resolut~on 179802 f ~ i D. ResolutIon 17979 ~ ~( E. Resolution 1789,1:../ F. CIP Detail STL-220 M:\HOME\ENGINEER\AGENDA \AD93-O I.BOB ~-4 October 3, 1996 File No. 0725-1O-AD93-01 AGENCY: City of Chula Vista PROJECT: 1911 Block Act - Alley Improvements from "J" Street to Kearney Street between Elm Avenue and Second Avenue TO: City Council, City of Chula Vista SUBJECT: ENGINEER'S REPORT PURSUANT TO THE PROVISIONS OF CHAPTER 27 OF THE "IMPROVEMENT ACT OF 1911" AND SPECIFICALLY SECTION 5882 The City Council of the City of Chula Vista, State of California, had initiated proceedings pursuant to the provisions of Division 14, Part 2, Chapter 1 of the "Improvement Act of 1911", and Chula Vista Municipal Code, Section 17.07 to pave an alley from J and Kearney Streets and between Elm and Second Avenue. At the Council meeting of July 25, 1995, by Resolution 17919, a contract was awarded in the amount of $53, 108.00 to the Fox Construction Company. Said alley improvements have now been completed and the proposed assessments are stated herein. CHRONOLOGY: November 23, 1993, Resolution 17316 accepted petition signed by majority of affected property owners to form special assessment district. March 28, 1995, Resolution 17849 approved boundary map for proposed boundaries of AD 93-01. March 28, 1995, Resolution 17850 ordering installation of improvements. May 9 & 16, 1995, Public Hearings, Resolution 17894, on Resolution of Intention to form special assessment district. May 25, 1995, Resolution 17980 approved deferral of payments, established criteria for deferrals and delegating authority to defer. June 14, 1995, received eight bids for improvements. July 25, 1995, Resolution 17979 accepting bids and awarding contract to Fox Construction Co. October 24, 1995, construction started. November 10, 1995, construction completed. December 6, 1995, Notice of Completion recorded. February 7, 1996, City Manager accepted improvements. -1- f~s CONSTRUCTION COSTS Total Contract Cost Incidental Expenses Staff Cost Construction Total $51,099.00 $ 1,073.00(1) $15,212.00(2) $67,384.00 (1) Postage, advertising and blueprinting costs. (2) Staff cost (AY-091) from point of inception to 9/12/96 ($9,507.46 x 1.6). Total cost of project is $67,384.00. Costs assigned to AD 93-01 is $52,172.00 (Contract cost + Incidental expenses). ASSESSMENTS Assessments = Total construction cost ($)/total frontage (ft) x frontage on alley (ft) No. APN Name Frontage Estimated Proposed (ft) Assessment(l) Assessment 1 573- 351-03 Marrufo 115.00 $6,999.00 $5,071.30 2 573-351-04 Hirtzel 60.00 $3,652.00 $2,645.88 3 573- 351-05 Huggins 60.00 $3,652.00 $2,645.88 4 573-351-06 Miller 60.00 $3,652.00 $2,645.88 5 573-351-07 Monge 60.00 $3,652.00 $2,645.88 6 573-351-08 Gilman 60.00 $3,652.00 $2,645.88 7 573-351-09 Iwashita 60.00 $3,652.00 $2,645.88 8 573-351-11 Vega 116.54 $7,093.00 $5,139.22 9 573-351-13 Marrufo 100.00 $6,086.00 $4,409.80 10 573-351-16 Unger 50.00 $3,043.00 $2,204.90 11 573-351-17 Murphy 50.00 $3,043.00 $2,204.90 12 573-351-18 Hall 50.00 $3,043.00 $2,204.90 13 573-351-19 Norton 50.00 $3,043.00 $2,204.90 14 573-351-20 Artische 50.00 $3,043.00 $2,204.90 15 573-351-21 Janiec 50.00 $3,043.00 $2,204.90 16 573-351-22 King 100.00 $6,086.00 $4,409.80 17 573-351-23 Ochoa 91.55 $5,572.00 $4,037.20 TOTALS 1,183.09 $72,006.00 $52,172.00 TABLE 1 - PROPOSED ASSESSMENTS FOR AD 93-01 (1) Per City Council Report dated 3/28/95. -2- (~(P The proposed assessments are lower than those originally projected in March 1995 because of the lower bid received for the construction of improvements. FUTURE COUNCIL ACTIONS On the same date that the public hearing is held to review assessments, then pursuant to the 1911 Block Act, the assessments will be confirmed by the City Council. FISCAL IMPACT The City will finance the construction of improvements ($52,172) and will be reimbursed by the property owners over a period of ten (10) years. City staff cost including engineering design, inspection and district formation ($15,212) will be absorbed by the City. (m: \home\engineer\agenda \ad930 1 er. bob) -3- ~-~ ~. r.1 U :.( -~. . ~i ~ - . ;, i · ~'. : ~f;1 _ ~, - .: ~ .;;, t ~ 'Ii ~.'l. " ~1 , I ..') 1..., canrr till, ftZ YmIIIf ., ~ PIOPOID ~ '~., or m &II~ -T"T DJmUt'T em " CIN Ya'U. ClOwn' or 1lJl1IIDO. IrAft or CWP'OUIA. 'AS A;P'IIOt"D 1'1 !XI em CDVNCI. or _ an ., CIM.l ftJU Io' " IICUI.AI IIDTDIO 1IlIDOr. ~ .. ........ 8a ., . ._. 81 DIGWnOJI II'D ~ r; :i .. ., ,-. It '" II: ~~ 1IID1____mr__.cm.-.a___ .; r or . .... I . 1m .... 11I"I II 4IIUIA tIIIA ~T'" -- lilT or I\'.oft .. 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C5 = E a: .!! ::: 'li 'i 'm aJiii,!(\I ... ~'O;~~1l a.CQ) (\10 Q..2 -g i CD - CdOQ)-~'O ==2E~'O.2 ~1!!5ii~- 88ld~U; Q) ... C C C ~.s::. :t:: .2 .2 QI U:I'Cl<<;t)Cl SStiSE21! Ul-aj01ii- $.g;:'-CE .....C-O .!! .!!.! Q) .g U E .E~~'~~-8 01:'0"01- . QlQ)c- t\ t:Eoi"':N"~ gjldE~~.~ c~~gj>-Q)~ ~CDC31QgQ) CD-CdIll~CDE u.mQ)CD~>1Il ;;:::U;:'QI-'01Il =X,c.s::..!'QCdQ) ~1Il~;:~=la ",)Cd<(I'Cl>~1'Cl .s: Cl c '> 8. .., III z C( ..J - -- 2 _ _ _L _ _ , , , ~ ab Ol it .s: c .12 t) 2 1ii c o U '0 c CD ~ ..;. Ol it .s: I: Cl "Xi o iii E '2 ~ ii CD = W I '" '~~''a I z o J::: < ~ ~ f l.() ~ t 1 ~ , \ , , ;; i l i 2 t/I ~ ~ RESOLUTION NO. 17980 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE DEFERRAL OF THE PAYMENT OF ASSESSMENTS, ESTABLISHING THE CRITERIA TO QUALIFY FOR DEFERRAL. AND AUTHORIZING THE MAYOR TO SIGN THE DEFERRAL AGREEMENTS FOR ASSESSMENT DISTRICT NO. 93- 01 WHEREAS, the proposed improvements for the construction of alley improvements from J Street to Kearney Street between Elm Avenue and Second Avenue are being financed through the formation of Assessment District No. 93-01 (AD 93-01) pursuant to the 1911 Block Act; and WHEREAS. the Act is a financing mechanism which authorizes local agencies to impose assessments on benefited property to fund the construction of public improvements; and WHEREAS, at a public hearing held on May 25. 1995. Council directed staff to bring to Council a resolution allowing the property owners to defer the payment of their assessments; and WHEREAS, the property owners have the option of paying the total assessment during the 30-day pay-off period following the confirmation of assessments, planned for the end of 1995; and WHEREAS, if the assessment is not paid at that time, the City shall collect the . unpaid balance in semiannual installments in conjunction with the collection of City taxes and in accordance with the Resolution of Intention. the balance shall be paid over a period of ten (10) years at an interest of 7 % per annum; and WHEREAS, in response to property owners concerns, Council directed staff to identify additional alternatives that may allow the deferral of the payment of the assessments and lessen the financial impact of the proposed assessments; and WHEREAS, according to the provisions of Chapter 13 of the "Improvement Act of 1911" of the Streets and Highways Code of the State of California any deferral of assessments shall be approved by a Council Resolution; and WHEREAS, staff recommends that the following alternatives be approved by Council: . Semi-annual payments (interest only) and payment of the principal at the end of a 1 O-year term or at the time the property is transferred, whichever occurs first. At the end of the 10 years Council may grant, on a case-by-case basis, a time extension to fulfill the payment obligations. r-Cf Resolution No. 17980 Page 2 . One payment (principal and accumulated interest) at the_ eod of a 1 O-year term or at the time the property is transferred, whichever occurs first. At the end of the 10 years Council may grant, on a case-by-case basis, a time extension to fulfill the payment obligations. WHEREAS, staff also recommends that Council require that property owners sh.all meet one of the following Criteria ("Criteria") to qualify for deferral: 1. Have an income less than or equal to the HUD Very Low Income standards as contained in the City's Master Fee Schedule. 2. A demonstrated financial hardship approved by Council. (For example, a senior citizen, retired, and unable to pay the assessment.) WHEREAS. qualifying property owners that elect a deferred payment plan shall enter into a deferral agreement with the City upon confirmation of assessments. NOW, THEREFORE. BE IT RESOLVED the City Council of the City of Chula Vista does hereby approve the Criteria for granting a deferral of the payment of assessments, and authorizing the Mayor or City Manager in his/her discretion. to sign the deferral agreements for Assessment District No. 93-01 upon application and proof of satisfaction of the required Criteria. Presented by Bruce M. Boogaar. City Attorney V/~ hn P. Lip itt !6irector of Public Works i ~l D ~---._- Resolution No. 17980 Page 3 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 25th day of July, 1995, by the following vote: AYES: Councilmembers: Alevy, Moot, Padilla, Rindone, Horton NA YES: Councilmembers: None '~ ABSENT: Councilmembers: None ABSTAIN: Councilmembers: None ATTEST: . /; 1 (I /"'; '_____/ / : Iii . 1~ K)Jj'1.'{~: (~. I If t 7-1 Pel Beverly IA. Authelet, City Clerk STATE OF CALIFORNIA COUNTY OF SAN DIEGO ss. CITY OF CHULA VISTA I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do hereby certify that the foregoing Resolution No. 17980 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 25th day of July, 1995. Executed this 25th day of July, 1995. ~~C) a-dt, Beverly Authelet, City Clerk cg- I' '::':-12 recc- "'.L'i ... ... - p' B ~.i c, ~ .... ::'~,,) 1. F l"O"...1.<l ,/ 'C r:...r-- 1 ~~~~},- .~... .. ~ ) } ) r RESOLUTION NO. 17979 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BID AND AWARDING CONTRACT FOR "CONSTRUCTION OF ALLEY IMPROVEMENTS FROM J STREET TO KEARNEY STREET BETWEEN ELM AVENUE AND SECOND AVENUE IN THE CITY OF CHULA VISTA, CALIFORNIA (STL- 220)" WHEREAS, at 2:00 p.m. on June 14, 1995, in Conference Room 3 in the Public Services Building, the Director of Public Works received the following eight bids for "Construction of Alley Improvements from J Street to Kearney Street between Elm Avenue and Second Avenue in the City of Chula Vista, California (STL-220)": Contractor Bid Amount 1- Fox Construction - San Diego $53,108.00 2. Marquez Constructors, Inc. - Spring Valley 59,430.50 3. Basile Construction, Inc. - San Diego 66,915.50 4. Carolyn E. Scheidle - Contractor - La Mesa 69,436.00 5. Frank & Son Paving, Inc. - Chula Vista 72,512.05 6. Interwest Pacific, LTD. - San Diego 73,127.60 7. Hammer Construction Company - Chula Vista 73,414.80 8. ortiz Corporation - Chula Vista 77,365.00 WHEREAS, the low bid by Fox Construction - San Diego is below the Engineer's Estimate of $77,150 by $24,042 or 31.2% and staff has reviewed the low bidder:s qualifications and references to do the work and found them to be satisfactory and recommends that the contract be awarded to Fox Construction; and WHEREAS, the Environmental Review Coordinator has reviewed the work involved in this project and has determined the project is a Class I exemption under Section 15301 from California Environmental Quality Act requirements; and WHEREAS, the source of funding for this project is general funds and contractors bidding this project were not required to pay prevailing wages to persons employed by them for the work under this contract; and WHEREAS, no special minority or women business owned requirements were necessary as part of the bid documents, however, disadvantaged businesses were encouraged to bid through the sending of the Notice of Contractors to various minority trade publications. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES HEREBY FIND, DETERMINE, ORDER AND RESOLVE AS FOLLOWS: Section 1. That the City Council concurs in the determination that this project is categorically exempt under Class 1, Section 15301 of the California Environmental Quality Act, and directs the Environmental Review Coordinator to file, or ratifies the filing of, a notice of exemption for this project. .~ 1~ /1- Resolution No. '7979 Page 2 .... Section 2. That the City Council does hereby accept the bid of Fox Construction as responsive. ) Section 3. The City Council awards the contract for "The Construction of Alley _ Improvements from J Street to Kearney Street between Elm Avenue and Second Avenue in th~ City of Chula Vista" to Fox Construction in the amount of $53,' 08.00, the lowest responsible bidder which submitted a responsive bid to the approved specifications. The contract, known as Document No. C095-122, is on file in the office of the City Clerk. Section 4. The Mayor of the City of Chula Vista i hereby authorized and directed to execute said contract for and on behalf of the City of ula Vista. pp vet t rm :J Presented by J f n P. Lippitt lrector of Public Works } 1-.1~ ...._ ",,,,___.__ ,"._. ~...._" _' ,....:,~~~,.___,_._ '__dO."~"~ , Resolution' No. 17979 Page 3 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California. this 25th day of July, 1995, by the following vote: AYES: Councilmembers: Alevy, Moot, Padilla, Rindone, Horton NAYES: Councilmembers: None ABSENT: Councilmembers: None ABST AIN: Councilmembers: None ,d;v/dv : JrztiJVJ Shirlee Horton, Mayor ATTEST: /1 \'--.. ..~: ././"! / . -~-' ~(.. / r....,~~.'...4..ll..... '/. (r(;,,-,J..~-.....:t Beverly A. Authelet. City Clerk STATE OF CALIFORNIA COUNTY OF SAN DIEGO ss. CITY OF CHULA VISTA I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do hereby certify that the foregoing Resolution No. 17979 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 25th day of July, 1995. Executed this 25th day of July, 1995. .1) . c2-- · ~,.J () I~af Beverly/A. Authelet, City Clerk 1- I Lf RESOLUTION NO. 17894 RESOLUTION OF THE CITY COUNCil OF THE CITY OF CHUlA VISTA MAKING FINDINGS AT PUBLIC HEARING PURSUANT TO CHAPTER 27 OF THE "IMPROVEMENT ACT OF 1911" REGARDING THE FORMATION OF ASSESSMENT DISTRICT 93- 01 NOW I THEREFORE, THE CITY COUNCil OF THE CITY OF CHUlA VISTA DOES HEREBY FIND, DETERMINE, ORDER AND RESOLVE AS FOllOWS: SECTION 1. Findinas: The City Council does hereby find as follows: A. The City Council of the City of Chula Vista, California, has instituted proceedings pursuant to the provisions of Chapter 27 of the "Improvement Act of 1911 being Division 7 of the Streets and Highway Code of the State of California for the construction of certain authorized improvements in a special assessment district known and designated as Assessment District No. 93-01. B. Notice has been given in the manner and form as required by law and specifically Article II, Part 3, of Division 7 of the Streets and Highway Code, and a Certificate of Compliance is on file in the office of the City Clerk. C. A public hearing has been held and all testimony and evidence heard relating to the work of improvement as proposed for the Assessment District, and the legislative body is desirous at this time to proceed. SECTION 2. That all protests of every nature are hereby overruled and denied. SECTION 3. The Superintendent of Streets is hereby directed to proceed and cause the construction of the works and improvement in said Assessment District if said construction is not commenced within sixty (60) days after notice is given to the property owner (by 5/27/95) to so cause the work to be done. SECTION 4. That the works of improvement shall be done and carried through and financed pursuant to the provisions of Chapter 27 of the "Improvement Act of 1911", and for all particulars a!; to these proceedings, reference is made to the Resolution ordering the ins.:~lIation of the public improvements and instructing the Superintendent of Streets to give notice. ( ~-(~ Resolution No. 17894 Page 2 SECTION 5. The works of improvement and project shall be financed pursuant to the provisions of Chapter 27, and the City shall collect each assessment remaining unpaid following the expiration of a 30 day cash collection period. Said balance shall be payable over a period of 10 years at an interest rate of 7% per annum. The City shall collect the unpaid balance of any assessment on the district properties semi-annually in conjunction with collection of City taxes, excepting those properties for which a payment deferral has been approved. The collection of assessments on these properties shall be in accordance with the payment schedule stipulated in their deferral agreement. Presented by Ap o~ d as to f r ~~ ~ Bruce M. Boogaard City Attorney ) ;"..;,-~.... ' ) 1-ILP ~ 't -"---'-'-,--- --....... ... .".~ Resolution No. 17894 Page 3 PASSED, APPROVED and ADOPTED by the City Council of the City of Chula Vista, California, this 16th day of May, 1995, by the following vote: YES: Councilmembers: Alevy, Moot, Padilla, Rindone, Horton NOES: Councilmembers: None ABSENT: Councilmembers: None ABSTAIN: Councilmembers: None Shirley Horton, Mayor ATTEST: Vicki C. Soderquist, Deputy City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) I, Vicki C. Soderquist, Deputy City Clerk of the City of Chula Vista, California, do hereby certify that the foregoing Resolution No. 17894 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 16th day of May, 1995. Executed this 16th day of May, 1995. " Vicki C. Soderquist, DeptJty City Clerk '" ; . ~ I ( g-II? RESOLUTION No.l~(/5?' RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING FILING OF ENGINEER'S REPORT BY THE CITY ENGINEER ON THE COST OF CONSTRUCTION AND SETTING NOVEMBER 12, 1996 AT 6:00 P.M. AS THE DATE AND TIME FOR A PUBLIC HEARING ON AN ASSESSMENT DISTRICT FOR ALLEY IMPROVEMENTS EAST OF SECOND AVENUE WHEREAS, on July 25, 1995, pursuant to the Improvement Act of 1911, also known as the 1911 Block Act, the City Council by Resolution No. 17979 awarded a contract in the amount of $53,108 (including contingencies) for the alley improvements on the alley east of Second Avenue from J Street to Kearney Street to Fox Construction Company; and WHEREAS, the work is now completed and improvements have been accepted by the City Manager; and WHEREAS, a resolution must now be approved to accept filing of the Engineer's report on the cost of construction and to set the public hearing on the assessments. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula vista does hereby accept the filing of Engineer's Report by the City Engineer on the cost of construction of the alley improvements on the alley east of Second Avenue from J Street to Kearney Street. BE IT FURTHER RESOLVED that the City Council does hereby set November 12, 1996 at 6:00 p.m. as the date and time for public hearing on the proposed assessments for the alley improvements on the alley east of Second Avenue from J Street to Kearney Street. Presented by Approved as to form by John P. Lippitt, Director of Public Works C:\rs\AD9301 ~-J9 COUNCIL AGENDA STATEMENT Item~ Meeting Date 10/15/96 ITEM TITLE: Resolution Approving the second amendment to and restatement of the agreement with Smith & Kempton for advocacy and planning services in connection with transportation facilities and the Eastern Chula Vista Strategic Plan and appropriating $178,000 from the Transportation Development Impact Fee Fund SUBMITTED BY: Director of Public wor~. REVIEWED BY: City Manager\.Xi ~ ....", (4/5ths Vote: Yes X No~ On August 8,1995 Council approved an agreement with Smith & Kempton to implement steps in the East Chula Vista Strategic Plan. A first amendment to that agreement was approved on January 23,1996. A significant amount of progress has been made towards completing the tasks contained in the agreement and first amendment. The date of completion contained in the first amendment extended the contract to January 23,1997. Not all of the work is complete and, therefore, a second amendment to the contract needs to be approved to complete the tasks begun by the August 8,1995 agreement. Completion of this work is essential for implementation of the Transportation Development Impact Fee Program and has been supported by the major developers. RECOMMENDATION: That Council approve the resolution approving the second amendment to and restatement of the agreement with Smith & Kempton, authorize the Mayor to execute said agreement, and appropriating funds for the contract. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: When Council held the public hearing on the proposed update for the Transportation Development Impact Fee program (TransDIF) in November, 1993, several of the property owners recommended that the City set up a "Developers Advisory Committee" to work closely with staff on administration of the TransDIF and to provide more input. They also recommended that the City retain a consultant with expertise in identifying and obtaining supplemental sources of funding for transportation facilities. As a result, staff issued a Request for Proposals (RFP) for such a consultant and the contract was awarded to D. J. Smith in May of 1994. Attached is a copy of the agenda statement and resolution from that meeting as Exhibits A and B. The scope of work under that contract, which is now completed, included four tasks. Those tasks were: 1) Existing plan/program review to allow consultant to fully understand Chula Vista's transportation expectations and needs. 2) Develop a strategy (Strategic Plan) for providing the required major street improvements for the eastern area of Chula Vista. The strategic plan defined the network of required Gf-l Page 2, Item ~ Meeting Date 10/15/96 transportation improvements; cost estimates for all projects; an implementation schedule reflecting construction needs, phasing requirements and available funding; and identifying potential additional funding for the required improvements. 3) Undertaking an advocacy effort to identify and secure alternative sources of funding for transportation improvements. 4) Ongoing involvement in transportation issues in the South Bay, including toll road progress and issues, Otay Mesa and NAFTA issues as they relate to Chula Vista, and other transportation developments in the South Bay as they relate to Chula Vista. As indicated, the Strategic Plan, which identifies short and long term tasks to assure completion of the needed transportation facilities, is complete. The Strategic Plan included a separate Action Plan which summarized implementation efforts needed to be undertaken. City staff and the Developers Advisory Committee worked closely with the consultant on the strategic plan and action plan and identified three specific tasks which the Committee believed were the highest priority and should be undertaken in fiscal year 95/96. Those tasks were: 1. Pursue a Federal Demonstration Project for Orange Avenue; 2. Provide comprehensive program management for expedited implementation of the 1-805 Interchanges at Telegraph Canyon Road, Orange Avenue and Palomar Street; and 3. Assure that SR-125 retains sales tax (Transnet) funding and pursue other state/federal funding options. Council approved an agreement with Smith & Kempton on August 8, 1995 and an amendment to that agreement on January 23,1996 to work towards completion of those tasks. Knowing that the process through CalTrans to implement the 1-805 interchanges would probably take longer than one year to complete, the agreement contained a provision that allowed for additional services past the original 12 month period by mutual agreement for another 12 month period. During the last year, Smith & Kempton prepared a demonstration grant package for $2.5 million in funding for Orange Avenue. In addition, meetings with the staff from the offices of Congressmen Filner and Bilbray generated a joint request for including Orange Avenue as a demonstration project in the National Highway System (NHS) legislation. Congress subsequently decided that no demonstration projects would be included in either the NHS or annual transportation appropriations legislation. This item will be pursued as appropriate in the future if there appears to be any possibility of such a demonstration project. Significant progress was made in project development activities for interchange improvements planned at 1-805 at Telegraph Canyon Road, Palomar Street, and Orange Avenue. Smith & Kempton prepared a Request for Proposals, reviewed consultant submittals, organized the consultant interview process, and assisted in the selection of the Rick Engineering team to perform engineering and environmental services. Twelve monthly meetings have been held with CalTrans to date resulting in the completion of: q-2- Page 3, Item ~ Meeting Date 10/15/96 1. An overall work strategy. 2. A Travel Forecast Report for Telegraph Canyon Road and Orange Avenue interchanges. 3. Draft geometric plans for the Telegraph Canyon Road interchange. 4. Conceptual geometric plans for the Orange Avenue interchange. 5. Alternative interchange concepts for the Palomar interchange. 6. A draft Traffic Operations Report for the Telegraph Canyon Road and Orange Avenue interchanges. Project advocacy efforts for the SR-125 toll road were extensive over the past year. Smith & Kempton managed advocacy efforts that resulted in SANDAG successfully obtaining $155 million in new revenue for NAFTA related projects in the South County area. The $132 million in funding for SR-125 Sweetwater segment was a critical element in the financial feasibility of the SR-125 toll road. Key efforts included briefing California Transportation Commission (CTC) members (Senators Peace and Kelley, Assembly Member Alpert) and staff. Presentations before the CTC both in Sacramento and in Los Angeles (San Diego elected officials and business representatives) was organized and coordinated testimony was prepared. To complete the process begun by last years contract, approval of a second amendment is necessary to extend the time to allow for the completion of the work for the 1-805 interchanges and to adjust the compensation to reflect the scope of work. Staff did not request new proposals based upon competitive bidding for this work because Smith & Kempton have been the project managers since the work began on the 1-805 interchanges. As a result, staff believes that Smith and Kempton are uniquely qualified to offer the services required. In addition, these services are being offered at reasonable rates. To change project managers at this point in the process would be impractical and inefficient. The same can be said for project advocacy since Smith and Kempton have already established relationships on behalf of the City for SR-125 and Orange A venue funding with high level staff members of Caltrans, California Transportation Commission, SANDAG and have had several meetings with legislators. They were also instrumental in achieving SR-125 as a statewide significant project, therefore, assuring funding for the San Miguel Connector and not depending as much on a Transnet funding base that doesn't have enough money to complete all the regional projects. Staff doesn't believe it advisable to change consultants in the middle of the process and accordingly, the resolution approving this amendment contains a statement that the consultant selection process has been waived on this basis. The contract provides for up to 18 months work on the 1-805 interchange projects and a minimum of 12 months advocacy assistance with the ability to extend work beyond the 12 months if funds are available. The amendment will be retroactive to August 1, 1996 with the termination date at such time as approval has been obtained from CalTrans or February 1, 1997, whichever occurs first. All obligatory provisions of the contract remain the same. All changes are contained in Exhibit" A" of the agreement. This contract contains two major components toward the goal of obtaining supplemental funding for transportation projects and for assuring construction of the critical freeway interchange projects needed to provide the necessary circulation system capacity. 0- ~ Page 4, Item ~ Meeting Date 10/15/96 Task 1. Program Management for 1-805 Interchanges $90.000. This task is to provide the necessary services to manage the project development activities associated with interchange improvements planned on I-80S at Telegraph Canyon Road, Palomar Street, and Orange Avenue. These projects are the Developers Advisory Committee's highest priority in order to provide the necessary highway capacity to permit continued growth. Since these locations are under the jurisdiction of CalTrans, their procedures need to be followed in order to construct the necessary improvements. These procedures require the preparation of a Project Study Report (PSR) and a Project Report (PR). These documents, which can be combined under CalTrans' regulations, includes an environmental document and other information which allows these projects to move into the final design stage. Smith & Kempton will provide/monitor/advocate the following under the proposed agreement: 1. Provide Program Management Services to complete Project Development Documents for the 1-805 Interchanges; 2. Pursue State or Federal Funding for Orange Avenue; and 3. Address Implementation Issues relative to the SR-125 toll road. Under Item 1 above, Smith & Kempton will oversee the preparation of combined Project Study Report/Project Report (PSR/PR) documents for the I-805/0range Avenue project. The PSR/PR document includes an environmental document (i.e., typically a mitigated negative declaration, unless significant environmental impacts are involved), allowing these better-defined projects to move directly into the final design stage upon completion. For the I-805/Palomar Street interchange, Smith & Kempton will oversee preparation of both an Access Approval Report (AAR) and a Project Study Report (PSR) for this interchange. The AAR is designed to provide an up-front review of the interchange concept by FHW A and CalTrans, prior to the initiation of a PSR. Much of the work prepared for the AAR will be directly translated into the PSR. Should an acceptable interchange configuration not be approved by FHW A in the AAR, Smith & Kempton will terminate activities on Milestone 2 - the preparation of a Project Study Report. The preparation of a AAR and PSR will allow for the selection of a preferred interchange configuration at a more conceptual level prior to initiation of the more detailed technical studies that are required at the Project Report stage. Smith & Kempton will take the lead in the following activities related to the preparation of encroachment permit, PSR/PR and PSR documents: 1. Development of Implementation Team and Developer Advisory Committee meeting schedules; 2. Preparation of agenda statements; 3. Oversight of consultant work products and schedules; 4. Coordination between City, Consultants, and CalTrans; and 5. Troubleshooting problems and/or project constraints. q-~ Page 5, Item ~ Meeting Date 10/15/96 The work is to be paid as a fixed fee based on a montWy basis. Task 2. PrQject Advocacy ($68,000) Part A: Pursue State or Federal Fundin~ for Oran~e Avenue The objective of this advocacy effort is to pursue $2.55 - 5.1 million in funding for construction of Olympic Parkway (Orange Avenue) between the Olympic Training Center (OTC) and Hunte Parkway. The Smith & Kempton team will monitor and respond to regional, state, and federal funding opportunities that may be present in the next year. These include: 1. Federal demonstration grant through ISTEA reauthorization; 2. Mid-cycle STIP programming focused on "on-the-shelf" projects; and 3. 1998 STIP programming. SB 1505 (Kopp) addressing STIP reform failed this year. That Bill would have allowed this project to compete for two new funding categories: the "regional choice" and the "economic development" programs. The regional choice program, would have encompassed 80% of the available transportation funding provided by the State, and would have been available for virtually all project categories. As the title suggests, regional choice projects would have been selected by SANDAG. As the bill was structured, the California Transportation Commission (CTC) would have had discretion over 10 percent of the regional choice program (e.g., 8% of the total funding available), but could have only identified replacement projects that are located on the National Highway System. The economic development program, which would have encompassed 5 % of the available transportation funds, would have been administered by the Secretary of Business, Transportation & Housing. Eligible projects would have been those that would foster economic development. There is a very good chance that there will be a mid-year RTIP and the opportunity would then be available to seek funding. Also, SB 1505, or a bill similar to it, could be introduced in January of 1997. Part B: Address Implementation Issues Relative to SR-125 Toll Road The Smith & Kempton team will take the lead in providing a comprehensive approach to implementation issues of concern to the City of Chula Vista and the Developer Advisory Committee relative to the SR-125 toll road. The following issues regarding the implementation of the SR 125 project are among those that will be addressed: q~5 Page 6, Item ~ Meeting Date 10/15/96 1. How phasing or segmenting affect the adjacent street system, phasing of local development, etc.; 2. The level of tolls and toll "credits" for local residents; 3. Whether and how congestion pricing will be applied; 4. How, when, and under what terms and conditions the right-of-way will be conveyed by local developers; and 5. The details of specific interchange design issues. The Smith & Kempton team will work with City staff, the Developer Advisory Committee, and CTV to document outstanding implementation issues, provide recommendations on their resolution, and carry out those recommendations where appropriate. With respect to troubleshooting activities, Smith & Kempton will attend regular meetings to monitor the status of the project and provide assistance as needed. The Smith & Kempton team will also work with CTV to support their efforts for obtaining a credit guarantee through either federal, state, regional, or local funding mechanisms. Coordination Process Two standard meeting dates each month are established as part of this contract. The suggested dates and meeting purposes are summarized below. · 2nd Friday of each Month: 1. Monthly Project Development Team meetings for all three 1-805 interchanges (10:30 a.m., 1:00 p.m., 2:30 pm) 2. Lunch Briefings as necessary · 4th Friday of each Month: 1. Monthly Progress Meeting 2. Meetings on Funding Advocacy Issues 3. Follow-up focused troubleshooting meetings on 1-805 interchanges 4. Attendance at SANDAG Board meetings as necessary FISCAL IMPACT: The contract is proposed for 18 months for the 1-805 management program and one year for the SR-125 advocacy with provisions to extend beyond one year if funds are available. Smith and Kempton have been paid $268,788.29 for their first two years of service. When the TransDIF was updated in November, 1993, it included an increase in the "administration" component from 4% to 5% to provide sufficient funds for the consultant. The additional 1 % component is proposed to remain in effect for as long as necessary to provide this type of consultant. From January 1, 1994 when the additional 1 % fee went into effect, the City has collected approximately $26,540 representing 1/5 of the administrative portion of the TransDIF fees q-tp Page 7, Item 3- Meeting Date 10/15/96 collected (1 % of 5 % ). However, the collection of the total administrative fee is sufficient to provide the funds necessary to finance this agreement. The additional 1 % would need to stay in effect as long as the expenditures remain higher than the actual collections. The total of the TransDIF is approximately $85 million and the 1 % total would be $850,000. Thus, over the life of the DIF the full amount is available to offset these expenditures. The total recommended contract is $158,000.00. The $158,000 is broken down as follows: $90,000 for 1-805 program management, which includes $75,000 for labor costs and $15,000 for expenses. The SR-125 advocacy services are as follows: $68,000 with $63,000 for labor costs and $5,000 for expenses. There is an additional $20,000 that is being requested to be appropriated as a contingency to cover unexpected work. The contract allows for the SR-125 advocacy to be extended beyond one year at $4,500 per month if funds are available. The $20,000 contingency may be needed for additional advocacy work or unanticipated work related to the 1-805 projects. Therefore the contract plus contingency amounts to the $178,000 appropriation being requested. There are sufficient funds available in the Transportation Development Impact Fee fund. These funds should be appropriated to fund 621-6212-5201. As the consultant is successful in obtaining additional funding beyond that already available to the City, the cost of both the TransDIF and Interim SR-125 Facility DIF will be decreased by an unknown amount. Attachments: Exhibit A - Agenda Statement 5/17/94 Exhibit B - Resolution 17484 Exhibit C -Agenda Statement 8/8/95 Exhibit D -Resolution 17995 Exhibit E - Agenda Statement 1/23/96 Exhibit F - Resolution 18189 y~ /~ HX-037 M:\HOMEIENGINEERIAGENDAIDlFSTRTS.W AU q-~ " . l COUNCIL AGENDA STATEMENT ITEM TITLE: ,Jb.ItJ q Item-.:t:I. Meeting Date 5/K194 Resolution 1?'1? ? Approving an agreement with D. J.'lmith Associates for ad .'oclcy and planning serVices in connecr.on with the Transportation Development impact Fee and appropriating $90.000 nom the Transportation Development Fee Fund Directo~ of Public Works I . EXHIBIT A SUBMlI lED BY: REVIEWED BY: City Manager (4/5tbs Vote: Yes..x...No-> This item involves retaining a consultant with expertise in funding of transportation facilities. The consultant, working with staff and the property owners, would develop a program for funding transportation facilities from sources other than developer fees, and would then aggressively seek such funding. RECOMMENDATION: That Council approve the resolution approving an agreement with D. J. Smith Associates, authorize the Mayor to execute said agreement, and appropriating funds for the contract. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: When Council held the public hearing on the proposed update for the Transportation Development Impact Fee Program in November 1993, several of the property owners recommended that the City retain a consultant With expertise in identifying and obtaining supplemental sources of funding for transportation facilities. As a result of this suggestion, staff issued a Request for Proposals (RFP) for such a consultant. The initial time period for submittal of proposals was approximately one month, ending January 31, 1994, It which time the City received two proposals. At this time. staff became. aware of two fums that received information regarding the proposal through third parties. fairly late in the proposal period. Since the fums seemed highly qualified and the City wanted to get the best possible selection of potential consultants, the proposal period was extended to February 25. During this period, the two fums submitted propoSals bringing the total to four fums. The four fums, and the original dollar cost of their proposal. are IS follows: D. 1. Smith Associates De Leon, Cather &. Company BSI Consultants, Inc. Linda Morshed Associates S9O.ooo S7S.000 S21,780 S168.oo0 q -ct . Page 2, Item ~ 11 Meeting Date~ .' /1 All four proposing teams were interviewed by a committee consisting of City staff (Public Works Director John Lippitt, City Engineer Cliff Swanson, and Senior Civil Engineer Steve Thomas) and the property owners (Baldwin, Eastlake, McMill~ and Sunbow). The fundamental criteria that the committee used to evaluate proposals involved evaluation of the proposers previous experience at obtaining funds for ,?ublic works projects, d~onstrated understanding of the City's transportation needs and the proposal to assist the City in dealing with other agencies and the ~ll road project. The committee determined that the rums of D. J. Smith Associat~ and Morshed and Associates were considered highly qualified and requested clarification of the proposals. The other two rums were judged to be not qualified, and were eliminated from further consideration. The basis of the determin&tion was a consensus that the proposers did not have a team with "advocacy" type experience. The subject proposers would identify and process applications for funding from existing, well established sources, a task that staff believes it can perform. The goal of this program is to identify or create new sources of funding. The nature of the clarification was to allow the proposing fums to eliminate or refme aspects of the proposals that staff considered unnecessary or to eliminate components that City staff could provide (engineering services for example). This clarification would also hopefully eliminate the disparity in price, and allow the fums to be judged in an equitable fashion on a similar proposal. As a result of the clarification process, Morshed reduced their proposal cost to $60,000 compensation plus $16,000 for expenses for a total contract value of $76,000. It should be noted here that the expenses are estimates rather than fum expeditures. Actual expenses should not exceed estimated expenses. c_ Following the clarification, the committee recommended that D. J. Smith be awarded the contract, despite the fact that Morshed's cost proposal was lower. Considerations cited in the selection process included: 1. Local exnerience. D. 1. Smith Associates has been actively involved in transportation issues locally and at the State level. They have worked on the Proposition 108 ("The Passenger Rail and Clean Air Bond Act of 1990") and Proposition 111 ("The Traffic Congestion Relief and Spending Limitation Act of 1990") campaigns for the governor, and have worked with SANDAG and local elected officials in developing and refming the County's sales tax transportation program. DJ. Smith and Andy Sch1aef1i both have strong working relationships with SANDAG Executive Staff and many of the area legislators. 2. Local FamiliaritvlLocal Presence. A big component of the D. J. Smith Team is their sub consultant, Urban Systems Associates (USA). USA has been involved in . transportation planning in the San Diego region since 1979, and their principal Andy Sch1aefli has been involved for over 30 years. They have been involved in planning for Rancho del Rey, Eastlake and Otay Ranch with the City of Chula VISta. The Morshed rum originally proposed Boyle Engineering u the local presence~ however, this component was eliminated in the "clarification process," when it was determined by staff and Ms. Morshed that City staff could provide most civil engin~g services for the project. . q-q. 3. Page 3, Item.t:i:!!' C} Meeting Date 5{l8"/94 ,-1.. Track record. Both fums demonstrated excellent track records. Agencies that have retained either fum spoke highly of their abilities. ( Taking all of the above into consideration, the consensus of the committee was that the two teams demonstrated strong ~abilities at both State and Federa1levels. The committee highly valued the local connections and experience of the D.1. Smith team and recommended that the City retain that fum, even though they were not the low bidders. The consensus point of view was that a fum with Mr. Smith's experience should be able to obtain such substantial sums that the price difference betWeen the two fmalists is dwarfed. The scope of work for the proposed contract contains three major components towards the goal of obtaining supplemental funding for transportation projects. One additional componenet (Task 4) allows the consultant to assist the City in overseeing transportation developments with other agencies and the toll road program. . Task 1. PlanIPro2ram Review This task involves review of existing documentation programs and all related planning area data, including traffic projections and development projections to allow consultant to fully understand Chula Vista's transportation expectations and needs. Task 2. Strate2ic Plan This task is to develop a strategy for providing the required improvements for the Eastern territories of Chula Vista. As a part of this effort. consultant will identify planned projects in terms of scope, cost and schedule. This document will define a practical, phased approach to project implementation that will be coupled with an achievable fmancing plan. The strategic plan will be developed under two separate scenarios, one utilizing the existence of the proposed toll road (SR-125), and one excluding the toll road. The strategic plan will defme the network of required transportation improvements the Eastern Territories and will include scope descriptions for all projects at a sufficient level of detail to- reasonably assess costs. The fmal document will also include cost estimltes and an implementation schedule which will reflect constnlction needs, phasing requirements and available funding (or potential available funding). This task will also involve working with other agencies to identify potential additional funding for required improvements. It is recognized that a goal of this task is to maximize the availability and timing of any and all lOurCe5 of funding for transportation facilities 1ask 3. Advocacv Effort This task involves an ongoing effort to identify and secure alternative soUrces of funding for.. transportation improvements for the Eastern Territories, with the focus being coordinated with the development of the Strategic Plan, and funding opportunities identified in development of the pl~. . The level of activity associated with this task will vary in intensity from month to month, but this work will proceed on a constant basis in parallel with the other tasks. C\ - 10 (- , Pale 4, Item~ Cj MeetiDI Date 5/J.6794 n Task 4. Monitorinl! This task involves ongoing involvement in transportation issues in the South Bay, including Toll road progress and issues, Otay Mesa and NAF:T A issues as they relate to C~ula Vista, and transportation developments in the South Bay as they relate to Chula VISta. As a part of this : activity, consultant will attend meetinr;s with City Staff and property OWl1erB (In a m;JnthIy basis, or as requested by the City, not to exceed twelve meetings during the duration of this one year contract. This task will also involve general assistance on issues related to project management and process resolution. The fee compensation proposal involves compensation at $78,000 for a one year contract. Additional travel expenses are estimated to be approximately $12,000 for the year, including trips from Sacramento to Chula Vista and to Washington, D.C. Such expenses will be reimbursed as they occur. The total cost for the contract is $90,000. As stated above, the purpose of retaining the consultant is to obtain funding for transportation related projects, from sources not readily available to the City. At this point, it is impossible even speculate as to the amount of funding that the consultant may develop, but based on discussions with staff from other agencies, all of the agencies are very pleased with the results, and continue to retain the consultants. Staff believes, as do the property owners, that the ~st of this contract is money well invested. FISCAL IMP ACT: The contract is initially for a period of one year, with extension options. If the rust year produces satisfactory results, staff may recommend that the contract be renewed on a yearly basis for a maximum of three years. At the hearing in November (on the TOIF update), staff proposed that the "administration" component of the TOIF be increased by 1% (from 4% to S%) to provide sufficient funds for such a consultant. The additional 1% component is proposed to remain in effect for as long as it is necessary to provide for this type of consultant. The CIP did not include funds for this service, however, there are sufficient funds available in the Transportation Development Impact Fee fund. These funds should be appropriated to account 621-6212. As the consultant is successful in completing the scope of work, additional funding beyond that already available to the City for Transportation DIF and SR-12S projects will be made available. This will lower the cost of both the TOIF and SR-12S DIF fees by an unknown amount. CST:HX.cD1 WPC lL~\AClENDA\DJSMrIH g - ( I - - '--' . e)(hi'bi+ B .' RESOLUTION NO.1 7484 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AGREEMENT WITH D. J. SMITH ASSOCIATES FOR ADVOCACY AND PLANNING SERVICES IN CONNECTION WITH THE TRANSPORTATION DEVELOPMENT IMPACT FEE AND APPRO~RIATING .90,000 FROM THE TRANSPORTATION DEVELOPMENT FEE FUND ' WHEREAS, when Council held the public hearing on the proposed update for the Transporation Development Impact Fee Program in November 1993, several of the property owners recommended that the City retain a consultant with axpertise in identifying and obtaining supplemental sources of funding for transportation facilitie.s; and, WHEREAS, as a result of this suggestion, staff issued a Request for Proposals (RFP) for such a consultant; and, WHEREAS, four firms submitted proposals as follows: BSI Consultants, Inc. . 90,000 75,000 21,780 D. J. Smith Associates De Leon, Cather & Company Linda Morshed Associates 168,000 WHEREAS, all four proposing teams were interviewed by a committee consisting of City staff (Public Works Director John Lippitt, City Engineer Cliff Swanson, and Senior Civil Engineer Steve Thomas) and the property owners (Baldwin, EastLake, McMillin and Sunbow); and, WHEREAS, the committee determined that the firms of D. J. Smith Associates and Morshed and Associates were highly qualified and requested clarification of the proposals; and, WHEREAS, the nature of the clarification was to allow the proposing firms to eliminate or refine aspects of the proposals that staff considered unnecessary or to eliminate components that City staff could provide (engineering services for example); and, WHEREAS, ta king local experience, local familiarity nocal presence and track record into consideration, the consensus of the Committee recommended that the contract be negotiated with O. J. Smith Associates. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby approve an agreement with D. J. Smith Associates for advocacy and planning services on connection with the Transportation Development Impact Fee, known as document Cf-I2- ftesolLfLion No. 17484 . Page 2 l. III. ,~ \.....J i .1 number C094-o65, a copy of which is on file in the office of the City Clerk. BE IT fURTHER RESOL VEO that the Mayor of the City of Chula Vista is hereby authorized and directed to execute said document for and on behalf of the City of Chula Vista. BE IT fURTHER RESOLVED that the sum of .90,000 is hereby appropriated from the Transportation Development fee fund into Account 621-6212:- 5..2c: , ohn P. Lippitt ." irector of Public Works Approved as to for I ~ Bruce M. Boogaard City Attorney JJ Presented by .! .. q-l~ . \. , w,__ ( Resolution No.1 7484 .' Page 3 PASSED, APPROVED and ADOPTED by the City Council of the City of Chula Vista, California, this 17th day of May, 1994, by the following vote: YES: Councilmembers: fox, Honon, Moore, Nader NOES: Councilmembers: None ABSENT: Councilmembers: Rindone ABSTAIN: Councilmembers: None ...J~~~ Tim Nader, Mayor ATTEST: r- '. \ \" \ -4 ,\.'C '- ~'-~'......\:. 1/ \J....,\ Vicki C. Soderquist, ty City Clerk STATE.OF CALIFORNIA) COUNTY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) I, Vicki C. Soderquist, Deputy City Clerk of the City of Chula Vista, California, do hereby certify that the foregoing Resolution No. 17484 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 17th day of May, 1994. Executed this 17th day of May, 1994. C1-/4 - This Page Blank- I \. COUNCIL AGENDA STATEMENT ~ \\ /) eXH(BIT." C Item-.J:t q Meeting Date 8/8/95 SUBMITTED BY: Resolution \' qq 5' Approving an agreement with Smith & Kempton for advocacy and planning serviCes in connection with transportation facilities and the Eastern Chula Vista Strategic Plan and appropriating $81,000 from the Transportation Development Impact F~ Fund . Director of Public wor~ City Manager (4!5ths Vote: Yes..x..No--> ITEM TITLE: REVIEVVED BY: On May 17, 1994, the City Council approved an agreement with D.J. Smith and Associates for advocacy and planning services in connection with the Transportation Development Impact Fee program. The advocacy and planning services were contracted for as a result of the recommendation of the major property owners w~o are responsible for the fee as they build in eastern Chula Vista. As a result of that contract, the consultant, who has changed the name of the fIrm to Smith & Kempton, prepared an East Chula Vista Strategic Plan which set out a strategy for completing the transportation improvements in the eastern area of the City. The developers have requested that an agreement be entered into to provide the necessary consulting services to undertake some of the next steps identified in the strategic plan. RECOMMENDATION: That Council approve the resolution approving an agreement with Smith & Kempton, authorize the Mayor to execute said agreement, and appropriating funds for the contract. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: When Council held the public hearing on the proposed update for the Transportation Development Impact Fee program (TransDIF) in November, 1993, several of the property owners recommended that the City set up a "Developers Advisory Committee" to work closely with staff on administration of the TransDIF and to provide more input. They also recommended that the City retain a consultant with expertise in identifying and obmining supplemental sources of funding for transportation facilities. As a result, staff issued a Request for Proposals (RFP) for such a consultant and the contract was awarded to D. J. Smith in May of 1994. Attached is a copy of the agenda statement and resC?lution from that meeting as Exhibits A and B. The scope of work under that contract, which is now completed, included four tasks. Those tasks were: 1) existing plan/program review to allow consultant to fully understand Chula .Vista's transportation expectations and needs. 2) develop a strategy (Strategic Plan) for providing the required improvements for the eastern territories of Chula Vista. The strategic plan defmed the network of required transportation improvements; cost estimates for all projects; an implementation schedule Cf-Is Page 2, Item t\- C) Mee~ Date 8/8/95 reflecting construction needs, phasing requirements and available funding; and identifying potential additional-funding for the required improvements. l_ 3) undertaking an advocacy effort to identify and secure alternative sources of funding for transportation improvements. -.J 4) ongoing involvement in transportation issues - in the South Bay, including toll road progress and issues, Otay Mesa and NAFTA issues as they relate to Chula Vista, and other transportation developments in the South Bay as they relate to Chula Vista. In recognition that some of the tasks to be undertaken and strategic plan alternatives which would be developed, would require a multi-year program, the contract with D. J. Smith provided that by mutual agreement the contract may be modified to provide for additional services extending past the initial 12 month period. As indicated, the Strategic Plan, which identifies short and long term tasks to assure completion of the needed transportation facilities, is complete. The Strategic Plan included a separate Action Plan which summarized implementation efforts needed to be undertaken. City staff and the Developers Advisory Committee worked closely with the consultant on the strategic plan and action plan and identified three specific tasks which the Committee believed were the highest priority and should be undertaken in fIScal year 95/96. Those tasks are: 1) Pursue a Federal Demonstration Project for Orange Avenue, 2) Provide comprehensive program management for expedited implementation of the I-80S Interchanges, and 3) Assure that SR-125 retains sales tax (fransnet) funding and pursue other state/federal funding options. . Staff and the Developers Advisory Committee discussed the work to be done and whether or not it could be done by existing City staff. Both tasks 1 and 3 require extensive political contacts and knowledge of the Federal process for obtaining funds for demonstration projects. Staff does not have that type of knowledge, although certain technical information, which is needed for the submittal, can and will be supplied by staff. Staff also looked into the possibility of using our existing legislative advocates, Advocation Inc., for these efforts. In discussions with them they concurred with the developers that the frrm of Smith & Kempton had more experience in transportation related areas necessary for these tasks. Further, the developers wanted someone with this specific transportation experience who could work on developing the whole transportation program as Smith & Kempton is capable of doing. Advocation, Inc. indicated a willingness to assist with contacts as needed. On task 3, the Developers Advisory Committee indicated that, due to the importance of these items to their continued development in the eastern area of the City, this process should be expedited. With the amount of work to be done to manage the RFP process for Engineering services to complete the interchange studies and process the studies through CalTrans, staff could not complete the effort within the time frames requested by the developers. In addition, the amount of time and effort to process the studies through CalTrans and to obtain design C{-I (p- l Page 3, Item.::ll ~ Meeting Date 8/8/95 exceptions from the Federal Highway Administration (FHW A) added to the need for someone other than staff to manage the process. Staff also looked at the desirability to go through a separate RFP process to select the project manager. This process would have taken considerable time and the Developers Advisory Ccmmittee felt that such a delay would be unacceptable: especially when Smith & Kempton --.J developed the action plan, were familiar with the City's needs, had extensive experience in this area, had been selected through the RFP process and the original contract anticipated such an extension. Last, staff looked at the possibility of requiring the developers to contract directly for this work without going through the City. As indicated above, when the Transportation DIF was revised in November, 1993, the developers made certain requests based on meetings they held among themselves under the auspices of the Construction Industry Federation. Those meetings did not produce a single acceptable solution to the issues. They did, however, serve to clarify the unresolved issues and to produce three suggestions which were incorporated into the TransDIF update. One of these was that the City retain a consultant with expertise in identifying alternative funding sources and fmding ways to expedite funding. Because they were unable to work out a mutually acceptable method of performing these tasks without going through the City, the developers proposed that the consultant be paid from the TransDIF support funds. They concurred in the increase to the Admini!lltrative fee as the only acceptable method of equitably spreading the costs. Based on that decision, City staff, with the support and assistance of the property owners steering committee, negotiated a scope of work and contract with Smith & Kempton. D. J. Smith & Associates recently changed the name of the fIrm to Smith & Kempton. Other than the name change, there is no other change in the fIrm in so far as it affects the work with the City of Chula Vista. City staff and the developers are dealing with the same three people as when the fIrm was D. J. Smith & Associates. City staff and the property owners believe that it is appropriate to extend this contract because the previous work was satisfactory and the fum has extensive knowledge of the action plan and the work needed. In addition, the same reasons the fIrm was initially selected are still true. The scope of work for the proposed contract contains three major components toward the goal of obtaining supplemental funding for transportation projects and for assuring construction of the critical freeway interchange projects needed to provided the necessary circulation system capacity. One additional component, which is spread over the three tasks, is a specifIed coordination process to insure the tasks are carried out in a timely manner. Task 1. Federal Demonstration PrOlect for Oranee Avenue The ultimate purpose of this task is to obtain Federal funding to construct Orange Avenue in order to lower the cost of completing the needed TransDIF streets and, consequently, lower the._ TransDIF fee. This task involves the consultant taking the lead in pursuing the inclusion of the Orange Avenue project from the TransDIF as a demonstration project in the National Highway System (NHS) legislation being considered in Washington D. C. The identifIcation of this project in the NHS legislation will not result in a direct allocation of funds for the project. It will, however, put the project "in line" for consideration in subsequent, annual appropriations legislation at such time as Congress decides to fund demonstration projects. t1- I '1 Page 4, Item if:.- C} Meeting Date 8/8/95 Even though it is not anticipated that any Federal funds could be allocated to this project this fIScal year, there is a considerable amount of work needed to initiate the process and get it before our Legislators to get their support. This task anticipates only the fIrst years work in attempting to obtain this funding and would need to be extended in subsequent years depending on support or lack of support from our Federal Legislators. These steps include meetings with Congre~siona1 representatives, preparation of a project description and map, complete a project -J description package for submission to the House Transportation and Infrastructure Committee, tracking of possible bills, coordinating testimony and preparation of presentation materials. Long range activities, which would occur beyond the passage of the NHS bill and the actions of the Appropraitions Committee through 1996. The budget for this task is $18,000 and is to be paid as a fIxed fee on a monthly basis. ( '...... - Task 2. Pr02ram Mana2ement for 1-805 Intercban~es. This task is to provide the necessary services to manage the initial project development activities associated with interchange improvements planned on 1-805 at Telegraph Canyon Road, Palomar Street, and Orange Avenue. These projects are the Developers Advisory Committee's highest priority in order to provide the necesary highway capacity to permit continued growth. Since these locations are under the jurisdiction of CalTrans, their procedures need to be followed in order to construct the necessary improvements. These procedures require the preparation of a Project Study Report (PSR) and a Project Report (PR). These documents, which can be combined under CalTrans' regulations, includes an environmental document and other information which allows these projects to move into the fInal design stage. The CIP budget includes project TF147, 1-805 Project Study Report. This project was put in the CIP budget to provide mapping and trip forecasting to CalTrans to prepare a project study report for the ultimate improvements at several interchanges on 1-805. Much of the mapping work has been completed and provided to CalTrans. However, subsequently, the Governor has mandated cuts to CalTrans' staffmg and, as a result, they have informed us that, if we are still interested in the projects, we need to complete the required reports as a City project. The Developers Advisory Committee believes that these may be some of the most critical remaining links in the circulation system and that the Caltrans PSRlPR procedure is critical. However, because of past diffIculties in working with CalTrans on items like this and the City's own resources, staff does not believe we can efficiently undertake these efforts without assistance. Therefore, this task was proposed by staff and the Committee to have Smith & Kempton act as an extension of, and assist, staff. Under this item they will assist in the pr~paration of the RFP's, selection of a Consulting Engineering fInn, preparation of draft agenda st,::.tements, and coordination between the City, consultants and CalTrans. Included in this item is the need to obtain design exceptions to pennit a half diamond interchange (on and off ramps to the north only) at Palomar Street which CalTrans is opposing. The consultant is particularly suited to this task. Mr. Will Kempton, partner, was formerly Executive Director of the Santa Clara County Traffic Authority responsible for putting together a public-private partnership involving CalTrans and consulting engineers to accelerate delivery of project work on several highways under CalTrans' jurisdiction funded with a bond issue approved by S,anta Clara County voters. He has also been employed in high level positions with CalTrans headquarters. t1-l<6 Page 5, Item tt- ~ Mee~ Date 8/8/95 The budget proposal for this task is $109,600 and includes 13 sub-tasks. These sub tasks, which are either done directly by the team or are managed/facilitated by them, are: a. Refme Project development approach b. Draft traffic report c. Preparation of RFQIRFP d. Final traffic report e. Selection of consultants f. Technical studies for PSRlPR g. Draft PSRlPR h. Palomar Interchange - draft conceptual approval report (CAR) i. Draft environmental document for PSRlRPs j. Palomar interchange - fmal CAR k. Palomar interchange - draft PSR 1. Final PSRlPRs m. Draft fesign exceptions - Palomar interchange (" The work is to be paid as a fixed fee based on a monthly basis. Task 3. SR-125 Project Advocacy This task is for the consultants to monitor pending state and federal legislation for any funding opportunities that may arise through new legislation and to be available to facilitate advocacy efforts being taken by the developer advisory committee related to the implementation of SR-125 from SR-94 to the Otay Mesa Border Crossing. The developer advisory committee efforts are occurring separately from the consultants work program and involves a wide variety of entities to support obtaining local funding. The Smith & Kempton team will be available to facilitate these advocacy efforts when coordination is needed with state level agencies and/or elected officials. The budget proposal for this task is $26,400 and is to be paid as a fixed fee on a monthly basis. The total projected cost of the contract is $154,000 broken down as described above plus an additional $12,000 for travel expenses. The 95/96 budget for the TransDIF anticipated extending this contract and included $85,000. However, this amount was included in the budget request before the Strategic Plan was completed and the developers had an ability to review the work accomplished. Subsequently they have completed that review, discussed their proposed priorities with City staff and the consultant. After the tasks were identified and the contract negotiated the amount now totals $166,000. Therefore, an additional $81,000 is required to fund the proposed agreement. One of the purposes of this contract is to begin the process of obtaining funding for transportation related projects from sources not readily available to the City. At this point it is impossible even to speculate as to the amount of funding that the conSultant may develop. However, staff and the developers believe that this contract is money well invested toward completion of critical links in the system and in efforts to position the City to receive additional outside funding. Because the work tasks are fluid and, with the exception of only a few subtasks within Task 2, have no defmitive endproduct, it is structured as a phased (by each of the three tasks) fixed fee &1-1 q \~ Page 6, Item tt ~ M~ting Date 8/8/95 contract payable in twelve equal monthly installments. This is similar to the retainer type pay arrangements with Advocation. Inc. for similar type services. As a result of the twelve equal monthly payments.. if the consultants workload in the early part of the contract period is less than 1I12th in each month of the total work to be done. they could be paid a disproportionately high share; of the total payment relative to work completed. If the -..J consultant were then to default on the contract. we would have paid more proportionately in dollars than we received in services. In order to minimize this risk the contract contains language that requires the consultant to fue a monthly statement of services performed which will be reviewed by staff and the Developers Advisory Committee. If there are concerns over the lack of performance upon review of these statements. the contract contains provisions to terminate the agreement with a thirty day notice. FISCAL IMPACT: The contract is proposed to extend for one year. with an extension option for one a(lditional year in line with the original contract. Smith and Kempton have been paid $82.788.29 for their first year services. When the TransDIF was updated in November. 1993. it included an increase in the "administration" component from 4% to 5 % to provide sufficient funds for the consultant. The additional 1 % component is proposed to remain in effect for as long as necessary to provide this type of consultant. The 1995/96 budget included $85.000 for this item. The total recommended contract is $166.000 requiring an additional $81.000. There are sufficient funds available in the Transportation Development Impact Fee fund. These funds should be appropriated to fund 621. From January 1. 1994 when the additional 1 % fee went into effect. the City has collected approximately $15.040 representing 115 of the administrative portion of the TransDIF fees collected (1 % of 5%). However. the collection of the total administrative fee is sufficient to provide the funds necessary to fmance this agreement. The additional 1 % would need to stay in effect as long as the expenditures remain higher than the actual collections. The total of the TransDIF is approximately $85 million and the 1 % total would be $850.000. Thus. over the life of the DIF the full amount is available to offset these expenditures. As the consultant is successful in obtaining additional funding beyond that already available to the City. the cost of both the TransDIF and Interim SR-125 Facility DIF will be decreased by an unknown amount. Attachments: Exhibit A - Agenda Statement S/I7/94 Exhibit B - Resolution 17484 Exhibit C - Draft Action Plan elated March 23. 1995 BX~7 lIl:\bamc\qiDecr\a8eada \dj1lDlfb.cb. Cl- 20 ........;;:..::.~ '~........~...I,.- ~~~-. ~'" .~.:..". 'If"'~' "...-....--...............-----..- -.. ~.~.- . \, jJ'. txt-\rBfT D RESOLUTION NO. 17995 H X., 037 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AGREEMENT WITH SMITH & KEMPTON FOR ADVOCACY AND PLANNING SERVICES IN CONNECTION WITH TRANSPORTATION' FACILITIES AND THE. EASTERN CHULA VISTA STRATEGIC PLAN AND APPROPRIATING $81,000 FROM THE TRANSPORTATION DEVELOPMENT IMPACT FEE FUND WHEREAS, on May 17, 1994, the City Council approved an agreement with D.J. Smith and Associates for advocacy and planning services in connection with the Transportation Development Impact Fee program; and WHEREAS, the advocacy and planning services were contracted for as a result of the recommendation of the major property owners who are responsibl~ for the fee as they build in eastern Chula Vista; and WHEREAS, as a result of that contract, the consultant, who has changed the name of the firm to Smith & Kempton, prepared an East Chula Vista Strategic Plan which set out a strategy for completing the transportation improvements in the eastern area of the City; and WHEREAS, the developers have requested that an agreement be entered into to provide the necessary consulting services to undertake some of the next steps identified in the strategic plan. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista doe~ hereby approve an agreement with Smith & Kempton for advocacy and planning services in connection with transportation facilities and the Eastern Chula Vista Strategic Plan. A copy of the Agreement is on file in the office of the City Clerk known as Document No. C095-128. BE IT FURTHER RESOLVED that the Mayor is hereby authorized to execute said agreement on behalf of the City of Chula Vista. BE IT FURTHER RESOLVED that $81 ,000 is hereby appropriated from the Transportation Development Impact Fee Fund and trans rred to Acc t 621-6212. n P. Lippitt ector of Public Works ~ Presented by -- ;;------- q-2-' ;...l<.".........,~.;,~-,., """"-~....~~--- Resolution No. 17995 Page 2 . . - '~"'''''.'''__ihIIIoIii''I,Ift~\... PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 8th day of August, 1995, by the following vote: AYES: Councilmembers: Alevy, Moot, Padilla,'Rindone, Horton NA YES: Councilmembers: None ABSENT: Council members: None ABSTAIN: Councilmembers: None -dI~~ Shi y Horton, Mayor ATTEST: STATE OF CALIFORNIA COUNTY OF SAN DIEGO SSe CITY OF CHULA VISTA I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do hereby certify that the foregoing Resolution No. 17995 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 8th day of August, 1995. Executed this 8th day of August, 1995. g- 2 L- COUNCIL AGENDA STATEMENT \\_ / J .b-x H I BIT t:: ITEM TITLE: IteEn ,4:r C) Meeting Date 1/23/96 Resolution I g /89 Approving first amended agreement with Smith and Kempton for transportation consulting services and appropriating an additional $20,000 from the T~portation Development Impact Fee fund Director of Public of wor~ City Manager (4/5ths Vote: Yes-X- No-> SUBMITTED BY: REVIEWED BY: On August 8, 1995 the City entered into an agreement with Smith and Kempton to provide transportation consulting services in the form of program management and advocacy services. The advocacy services portion did not include a substantial effort related to State Transportation Improvement Program (STIP) which is proposed to include funds for SR-125. It has become. apparent to staff that, due to competition for STIP funding, there is a need for the City to be more proactive in assuring funding and clearances for the SR-125 facility, since it is vital to the orderly development of the overall Chula Vista Transportation system. The proposed amendment to the contract will allow Smith and Kempton to assist the City in this regard. RECOMMENDATION: That Council approve the resolution appropriating funds and approving the amendment to the agreement with Smith and Kempton BOARDS/COMMISSIONS: N/A DISCUSSION: On August 8, 1995 the City entered into an agreement with Smith and Kempton to provide transportation consulting services. The major components of that contract involved Smith and Kempton's effort on behalf of the City: 1. To pursue funding of a Federal Demonstration Project for Construction of Orange Avenue. 2. Provide comprehensive program management for planning and implementation of three I-80S Interchanges. 3. Assure that SR-125 retains sales tax (fransnet) funding and pursue other federal/state funding options. Item 3 of the effort did not anticipate a substantial effort on other sources of funding, however recent events have changed the environment for funding. Staff is now aware of the opportunity to secure substantial funding for the SR-125 facility in the State Transportation Improvement Plan (STIP). Staff has concluded that SR-125 is an essential facility in the orderly growth and development of Chula Vista. Studies and reports analyzing the City transportation system estimate that the City will have no remaining transportation capacity beyond approximately 2007. C1- 2~ Page 2, Item ffr CJ Meeting Date 1/23/96 The State Transportation Improvement Prov:ram (STIP) The California Transportation Commission (CTC) updates the State Transportation Improvement Program (STIP) every two years. The 1996 STIP process began in the summer of 1995, with requests by the CTC for updated programming information from Regional Transportation Planning Agencies (RTP A) throughout the State and Caltrans. The STIP process is an iterative one which began in September of 1995, allowing several opportunities for adjustment b.~ed on reaction from CTC staff. The process will be completed in March of 1996 with the adoption of a new STIP. The STIP process has traditionally been an opportunity for RTPA's and Caltrans to amend projects that are already in the program and add new projects. A projected shortfall in the State Highway Account has resulted in the need for the eTe to reduce the 1996 STIP by 10 to 20 percent. Not only will this require that no new projects be added in the 1996 STIP, but the eTC has directed the RTPA's to prioritize t.;e remaining projects identified in their 1994 STIP and anticipate that project deletions would occur for projects in the bottom 10 to 25 percent by dollar value. This will allow the eTe to delete an estimated $500-770 million of projects state-wide from the 1994 STIP. Despite these extraordinary circumstances, Caltrans has proposed the addition of $276 million in new NAFT A-related projects in the 1996 STIP. Caltrans has identified these potential additions to the 1996 STIP as "new projects with Statewide significance". This includes $125 million for SR- 125 and $17 ~illion for Otay Mesa Road in San Diego County. If the SR-125 toll road project is canceled, it is likely that the $125 Million would be redirected to fund SR-905. Should the CTe decide to include these new NAPT A-related projects in the 1996 STIP, it would require the deletion or delay of an equivalent value of currently programmed projects. Most of the projects that would be deleted or delayed to allow for the new NAFT A-related projects are located in Los Angeles and Orange County. The proposal by Caltrans to fund $276 million in NAFTA-related projects was discussed in depth ~t a Border Transportation Summit in Otay Mesa on December 8, 1995. Summit participants included federal, state, and local elected officials impacted by the border infrastructure crisis. Mayor Horton testified at this summit. While the Summit participants supported the proposal to provide $276 million in new STIP funds for the NAFTA-related projects, concern was raised over why Caltrans did not propose to program any funds to SR-905 in the 1996 sm. Based on CaltranS' response that the segment ofSR-125 proposed for ftmding (e.g., north of the toll road project to SR- 94) had a much higher level of project readiness than SR-905 which makes it a stronger candidate for funding, the participants agreed unanimously to support the sm recommendations. CaltranS is continuing to work with advocates for SR-905, however, to respond to their desires to provide some initial funding in the 1996 STIP for the project. Based on feedback received by CTG staff on the proposal to add these NAFT A-related projects to the sm, it is anticipated that there will be significant opposition at upcoming CTC hearings. This includes two hearings in January and one hearing m March at which the CTC will take testimony on the 1996 STIP. q - ?-tf Page 3, Item ffJ ~ Meeting Date 1/23/96 The Contract Work Profram The work program proposed to be added to the existing Smith and Kempton contract outlines a focused advocacy effort designed to support the provision of new funding for NAFT A-related projects in the 1996 STIP. The effort involves: . 1. Develop a strategy for both the public hearings and subsequent meetings with CTC Staff and individual commissioners, to in.clude presentations at the CTC hearings. 2. Coordinate the actual presentations, including development of coordinated testimony to establish the overall need for this NAFT A funding 3. Provide ongoing advocacy by monitoring the STIP process with CTC staff and evaluating the impact of San Diego region testimony and other influencing factors In the development of CTC staff recommendations. 4. Attend the March, 1996 adoption hearings to monitor potential last minute events. or changes. The proposed additional budget for this effort is $20,000. Should the effort be successful, Chula Vista could realize the benefit of $125 Million in needed transportation facility. Council must appropriate the funds. There are sufficient funds in the Transportation Development Impact Fee Account to fund this project. Staffhas met with the major property owners, and they concur with the need for this effort, and that it is an appropriate expenditure from the TransDIF. The current Smith and Kempton contract is for $ 166,000. This amendment will raise the value of the contract to $ 186,000. Smith and Kempton had a previous contract with the City to develop a strategic plan for transportation facilities. This contract, valued at $90,000 was completed in approximately June, 1995. FISCAL IMP ACT: The cost of the program is an additional $20,000 over the original contract price. The source of funds is the TransDIF. The TransDIF account has sufficient funds available to finance this amendment. The funds should be appropriated to account number 621-6212-5201. This is the account used to pay the existing contract with Smith and Kempton. Staff costs associated with administration of the contract will be minim~]. F:\HOME\ENGINEER\AGENDA\SM_K_AGR.CST File: 0730-9S HX"()37 0'~ '2~ - This Page Blank - . \'.j/ ExHIDtT F RESOLUTION NO. 18189 0~~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING FIRST AMENDED AGREEMENT WITH SMITH & KEMPTON FOR TRANSPO"RTATION CONSULTING SERVICES AND APPROPRIATING AN ADDITIONAL $20,000 FROM THE TRANSPORTATION DEVELOPMENT IMPACT FEE FUND. WHEREAS, on August 8, 1995, the City entered into an agreement with Smith and Kempton to provide transportation consulting services in the form of program management and advocacy services; and WHEREAS, the advocacy services portion did not include a substantial effort related to State Transportation Improvement Program (STIPl which is proposed to include funds for SR-125; and WHEREAS, it has become apparent to staff that, due to competition for STIP funding, there is a need for the City to be more proactive in assuring funding and clearances for the 5-125 facility, since it is vital to the orderly development of the overall Chula Vista Transportation system; and WHEREAS, the proposed amendment to be contract will allow Smith and Kempton to assist the City in this regard. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby approve the First Amended Agreement with Smith & Kempton for transportation consulting services, a copy of the Amendment is on file in the office of the City Clerk as Document No. C096-009. BE IT FURTHER RESOLVED that the Mayor is hereby authorized to execute said agreement on behalf of the City of Chula Vista. BE IT FURTHER RESOLVED that $20,000 is hereby appropriated from the Transportation Development Impact Fee Fund and transferred to Account 621-6212-5201. Presented by Bruce M. Boogaard City Attorney ~!~ J~n P. Lippitt Public Works Director q - 2(p It . Resolution 18189 Page 2 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 23rd day of January, 1996, by the following vote: AYES: Councilmembers: Alevy, Moot, Rindone, Horton NA YES: Councilmembers: None ABSENT: Councilmembers: Padilla ABSTAIN: Councilmembers: None ATTEST: !:::f. ~h~k STATE OF CALIFORNIA COUNTY OF SAN DIEGO 55. CITY OF CHULA VISTA I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do hereby certify that the foregoing Resolution No.1 8189 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 23rd day of January, 1996. Executed this 23rd day of January, 1996. ()~ . Authelet, City Clerk q - 2'1 SECOND AMENDMENT AND RESTATEMENT OF AGREEMENT BETWEEN CITY OF CHULA VISTA AND SMITH & KEMPTON FOR TRANSPORTATION CONSULTING SERVICES This agreement ("Agreement"), dated O~/ ~ /$?9'0 for the purposes of reference only, and effective as of the date last executed unless another date is otherwise specified in Exhibit A, Paragraph 1 is between the City-related entity as is indicated on Exhibit A, paragraph 2, as such ("City"), whose business form is set forth on Exhibit A, paragraph 3, and the entity indicated on the attached Exhibit A, paragraph 4, as Consultant, whose business form is set forth on Exhibit A, paragraph 5, and whose place of business and telephone numbers are set forth on Exhibit A, paragraph 6 ("Consultant"), and is made with reference to the following facts: Recitals Whereas, on May 17, 1994, Consultant entered into a one year contract with City dated May 17, 1994 in response to a Request for Proposals to provide Transportation Consulting Services, and Whereas, the initial contract was in response to a Request for Proposals for such a consultant; and Whereas, Consultant has worked with City and a developers committee to formulate a transportation strategic plan; and Whereas, The work under the initial contract is now completed and developers and City wish to proceed with the next phase of the contemplated work; and Whereas, That phase of work was begun under the agreements approved by Resolution 17995 on 8/8/95 and amended by Resolution 18189 On January 23,1996; and Whereas, The work approved by Resolutions 17995 and 18189 has not all been complete due to the length of time it has taken to process the work and the scope of work required by CalTrans; and Whereas, Consultant has a unique knowledge and understanding of the work remaining to be accomplished; and Whereas, The work needs to be complete in order to implement the Transportation Development Impact Fee Program; and Whereas, Additional SR-125 advocacy efforts are desired after obtaining STIP Funds for SR-125 Sweetwater Portion; and M: \home\engineer\ Traffic\ 1864.96 Page 1 (>J, J~ t;'~Y ~'6 1- Whereas, developers and City have reviewed proposal from Consultant for continuation of the work; and Whereas, City staff has determined the proposal to be responsible and has negotiated an agreement based on the proposal; and Whereas, it would be disruptive and inefficient to follow the consultant selection process to obtain another consultant to perform the tasks called for in this Second Amendment; and Whereas, Consultant warrants and represents that they are experienced and staffed in a manner such that they are and can prepare and deliver the services required of Consultant to City within the time frames herein provided all in accordance with the terms and conditions of this Agreement; OBLIGATORY PROVISIONS PAGES NOW, THEREFORE, BE IT RESOLVED that the City and Consultant do hereby mutually agree as follows: 1. Consultant's Duties A. General Duties Consultant shall perform all of the services described on the attached Exhibit A, Paragraph 7, entitled "General Duties"; and, B. Scope of Work and Schedule In the process of performing and delivering said "General Duties", Consultant shall also perform all of the services described in Exhibit A, Paragraph 8, entitled" Scope of Work and Schedule", not inconsistent with the General Duties, according to, and within the time frames set forth in Exhibit A, Paragraph 8, and deliver to City such Deliverables as are identified in Exhibit A, Paragraph 8, within the time frames set forth therein, time being of the essence of this agreement. The General Duties and the work and deliverables required in the Scope of Work and Schedule shall be herein referred to as the "Defined Services". Failure to complete the Defined Services by the times indicated does not, except at the option of the City, operate to terminate this Agreement. C. Reductions in Scope of Work City may independently, or upon request from Consultant, from time to time reduce the Defined Services to be performed by the Consultant under this Agreement. Upon doing so, City and Consultant agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with said reduction. M: \home\engineer\ Traffic \ 1864.96 ~ (C?_ j' Page 2 D. Additional Services In addition to performing the Defined Services herein set forth, City may require Consultant to perform additional consulting services related to the Defined Services ("Additional Services"), and upon doing so in writing, if they are within the scope of services offered by Consultant, Consultant shall perform same on a time and materials basis at the rates set forth in the "Rate Schedule" in Exhibit A, Paragraph 11 (C), unless a separate fixed fee is otherwise agreed upon. All compensation for Additional Services shall be paid monthly as billed. 2. Standard of Care Consultant, in performing any Services under this agreement, whether Defined Services or Additional Services, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations. A. Insurance Consultant represents that it and its agents, staff and subconsultants employed by it in connection with the Services required to be rendered, are protected against the risk of loss by the following insurance coverages, in the following categories, and to the limits specified, policies of which are issued by Insurance Companies that have a Best's Rating of "A, Class V" or better, or shall meet with the approval of the City: Statutory Worker's Compensation Insurance and Employer's Liability Insurance coverage in the amount set forth in the attached Exhibit A, Paragraph 9. Commercial General Liability Insurance including Business Automobile Insurance coverage in the amount set forth in Exhibit A, Paragraph 9, combined single limit applied separately to each project away from premises owned or rented by Consultant, which names City and Applicant as an Additional Insured, and which is primary to any policy which the City may otherwise carry ("Primary Coverage"), and which treats the employees of the City and Applicant in the same manner as members of the general public ("Cross-liability Coverage"). Errors and Omissions insurance, in the amount set forth in Exhibit A, Paragraph 9, unless Errors and Omissions coverage is included in the General Liability policy. B. Proof of Insurance Coverage. (1) Certificates of Insurance. Consultant shall demonstrate proof of coverage herein required, prior to the commencement of services required under this Agreement, by delivery of Certificates of Insurance demonstrating same, and further indicating that the policies may not be canceled without at least thirty (30) days written notice to the Additional Insured. M: \home\engineer\ Traffic \ 1864.96 Page 3 ~ ,5)- / U (2) Policy Endorsements Required. In order to demonstrate the Additional Insured Coverage, Primary Coverage and Cross-liability Coverage required under Consultant's Commercial General Liability Insurance Policy, Consultant shall deliver a policy endorsement to the City demonstrating same, which shall be reviewed and approved by the Risk Manager. 3. Security for Performance. (1) Performance Bond. In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide a Performance Bond (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Performance Bond"), then Consultant shall provide to the City a performance bond by a surety and in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Performance Bond", in said Paragraph 19, Exhibit A. (2) Letter of Credit. In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Letter of Credit"), then Consultant shall provide to the City an irrevocable letter of credit callable by the City at their unfettered discretion by submitting to the bank a letter, signed by the City Manager, stating that the Consultant is in breach of the terms of this Agreement. The letter of credit shall be issued by a bank, and be in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Letter of Credit", in said Paragraph 19, Exhibit A. (3) Other Security In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide security other than a Performance Bond or a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Other Security"), then Consultant shall provide to the City such other security therein listed in a form and amount satisfactory to the Risk Manager or City Attorney. I. Business License Consultant agrees to obtain a business license from the City and to otherwise comply with Title 5 of the Chula Vista Municipal Code. 4. Duties of the City A. Consultation and Cooperation City shall regularly consult the Consultant for the purpose of reviewing the progress of the Defmed Services and Schedule therein contained, and to provide direction and guidance to achieve M: \home\engineer\ Traffic\ 1864.96 Page 4 ~ C;'~// the objectives of this agreement. The City shall permit access to its office facilities, files and records by Consultant throughout the term of the agreement. In addition thereto, City agrees to provide the information, data, items and materials set forth on Exhibit A, Paragraph 10, and with the further understanding that delay in the provision of these materials beyond 30 days after authorization to proceed, shall constitute a basis for the justifiable delay in the Consultant's performance of this agreement. B. Compensation Upon receipt of a properly prepared billing from Consultant submitted to the City periodically as indicated in Exhibit A, Paragraph 18, but in no event more frequently than monthly, on the day of the period indicated in Exhibit A, Paragraph 18, City shall compensate Consultant for all services rendered by Consultant according to the terms and conditions set forth in Exhibit A, Paragraph 11, adjacent to the governing compensation relationship indicated by a "checkmark" next to the appropriate arrangement, subject to the requirements for retention set forth in paragraph 19 of Exhibit A, and shall compensate Consultant for out of pocket expenses as provided in Exhibit A, Paragraph 12. All billings submitted by Consultant shall contain sufficient information as to the propriety of the billing to permit the City to evaluate that the amount due and payable thereunder is proper, and shall specifically contain the City's account number indicated on Exhibit A, Paragraph 18 (C) to be charged upon making such payment. 5 . Administration of Contract Each party designates the individuals ("Contract Administrators") indicated on Exhibit A, Paragraph 13, as said party's contract administrator who is authorized by said party to represent them in the routine administration of this agreement. 6. Term. This Agreement shall terminate when the Parties have complied with all executory provisions hereof. 7 . Liquidated Damages The provisions of this section apply if a Liquidated Damages Rate is provided in Exhibit A, Paragraph 14. It is acknowledged by both parties that time is of the essence in the completion of this Agreement. It is difficult to estimate the amount of damages resulting from delay in performance. The parties have used their judgment to arrive at a reasonable amount to compensate for delay. Failure to complete the Defined Services within the allotted time period specified in this Agreement shall result in the following penalty: For each consecutive calendar day in excess of the time specified for the completion of the respective work assignment or Deliverable, the consultant shall pay to the City, or have withheld from monies due, the sum of Liquidated Damages Rate provided in Exhibit A, Paragraph 14 ("Liquidated Damages Rate"). M: \home\engineer\ Traffic\ 1864.96 Page 5 ~ 5: -/2- Time extensions for delays beyond the consultant's control, other than delays caused by the City, shall be requested in writing to the City's Contract Administrator, or designee, prior to the expiration of the specified time. Extensions of time, when granted, will be based upon the effect of delays to the work and will not be granted for delays to minor portions of work unless it can be shown that such delays did or will delay the progress of the work. 8. Financial Interests of Consultant A. Consultant is Designated as an FPPC Filer. If Consultant is designated on Exhibit A, Paragraph 15, as an "FPPC filer", Consultant is deemed to be a "Consultant" for the purposes of the Political Reform Act conflict of interest and disclosure provisions, and shall report economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 15 of Exhibit A, or if none are specified, then as determined by the City Attorney. B. Decline to Participate. Regardless of whether Consultant is designated as an FPPC Filer, Consultant shall not make, or participate in making or in any way attempt to use Consultant's position to influence a governmental decision in which Consultant knows or has reason to know Consultant has a financial interest other than the compensation promised by this Agreement. C. Search to Determine Economic Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant warrants and represents that Consultant has diligently conducted a search and inventory of Consultant's economic interests, as the term is used in the regulations promulgated by the Fair Political Practices Commission, and has determined that Consultant does not, to the best of Consultant's knowledge, have an economic interest which would conflict with Consultant's duties under this agreement. D. Promise Not to Acquire Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will not acquire, obtain, or assume an economic interest during the term of this Agreement which would constitute a conflict of interest as prohibited by the Fair Political Practices Act. E. Duty to Advise of Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will immediately advise the City Attorney of City if Consultant learns of an economic interest of Consultant's which may result in a conflict of interest for the purpose of the Fair Political Practices Act, and regulations promulgated thereunder. M: Ihomelengineerl Trafficl 1864.96 Page 6 ,~ 5 ---I \ -~~ F. Specific Warranties Against Economic Interests. Consultant warrants and represents that neither Consultant, nor Consultant's immediate family members, nor Consultant's employees or agents ("Consultant Associates") presently have any interest, directly or indirectly, whatsoever in any property which may be the subject matter of the Defmed Services, or in any property within 2 radial miles from the exterior boundaries of any property which may be the subject matter of the Defined Services, ("Prohibited Interest"), other than as listed in Exhibit A, Paragraph 15. Consultant further warrants and represents that no promise of future employment, remuneration, consideration, gratuity or other reward or gain has been made to Consultant or Consultant Associates in connection with Consultant's performance of this Agreement. Consultant promises to advise City of any such promise that may be made during the Term of this Agreement, or for 12 months thereafter. Consultant agrees that Consultant Associates shall not acquire any such Prohibited Interest within the Term of this Agreement, or for 12 months after the expiration of this Agreement, except with the written permission of City . Consultant may not conduct or solicit any business for any party to this Agreement, or for any third party which may be in conflict with Consultant's responsibilities under this Agreement, except with the written permission of City . 9. Hold Harmless Consultant shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attorneys' fees) arising out of the conduct of the Consultant, or any agent or employee, subcontractors, or others in connection with the execution of the work covered by this Agreement, except only for those claims arising from the sole negligence or sole willful conduct of the City, its officers, or employees. Consultant's indemnification shall include any and all costs, expenses, attorneys' fees and liability incurred by the City, its officers, agents, or employees in defending against such claims, whether the same proceed to judgment or not. Further, Consultant at its own expense shall, upon written request by the City, defend any such suit or action brought against the City, its officers, agents, or employees. Consultants' indemnification of City shall not be limited by any prior or subsequent declaration by the Consultant. 10. Termination of Agreement for Cause If, through any cause, Consultant shall fail to fulfill in a timely and proper manner Consultant's obligations under this Agreement, or if Consultant shall violate any of the covenants, agreements or stipulations of this Agreement, City shall have the right to terminate this Agreement by giving written notice to Consultant of such termination and specifying the effective date thereof at least five (5) days before the effective date of such termination. In that event, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by Consultant shall, at the option of the City, become the property of the City, and Consultant shall be entitled to receive just and equitable compensation for any work satisfactorily M: \home\engineer\ Traffic\ 1864.96 Page 7 ~ 7~/1 completed on such documents and other materials up to the effective date of Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused City by Consultant's breach. 11. Errors and Omissions In the event that the City Administrator determines that the Consultants' negligence, errors, or omissions in the performance of work under this Agreement has resulted in expense to City greater than would have resulted if there were no such negligence, errors, omissions, Consultant shall reimburse City for any additional expenses incurred by the City. Nothing herein is intended to limit City's rights under other provisions of this agreement. 12. Termination of Agreement for Convenience of City City may terminate this Agreement at any time and for any reason, by giving specific written notice to Consultant of such termination and specifying the effective date thereof, at least thirty (30) days before the effective date of such termination. In that event, all finished and unfinished documents and other materials described hereinabove shall, at the option of the City, become City's sole and exclusive property. If the Agreement is terminated by City as provided in this paragraph, Consultant shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials to the effective date of such termination. Consultant hereby expressly waives any and all claims for damages or compensation arising under this Agreement except as set forth herein. 13. Assignability The services of Consultant are personal to the City, and Consultant shall not assign any interest in this Agreement, and shall not transfer any interest in the same (whether by assignment or novation), without prior written consent of City. City hereby consents to the assignment of the portions of the Defined Services identified in Exhibit A, Paragraph 17 to the subconsultants identified thereat as "Permitted Subconsultants" . 14. Ownership, Publication, Reproduction and Use of Material All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced under this Agreement shall be the sole and exclusive property of City. No such materials or properties produced in whole or in part under this Agreement shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express written consent of City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such re- ports, studies, data, statistics, forms or other materials or properties produced under this Agreement. 15. Independent Contractor City is interested only in the results obtained and Consultant shall perform as an independent contractor with sole control of the manner and means of performing the services M: \home\engineer\ Traffic \ 1864.96 ~ , ~ 7.'--/~~ Page 8 required under this Agreement. City maintains the right only to reject or accept Consultant's work products. Consultant and any of the Consultant's agents, employees or representatives are, for all purposes under this Agreement, an independent contractor and shall not be deemed to be an employee of City, and none of them shall be entitled to any benefits to which City employees are entitled including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Therefore, City will not withhold state or federal income tax, social security tax or any other payroll tax, and Consultant shall be solely responsible for the payment of same and shall hold the City harmless with regard thereto. 16. Administrative Claims Requirements and Procedures No suit or arbitration shall be brought arising out of this agreement, against the City unless a claim has first been presented in writing and filed with the City and acted upon by the City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may from time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used by the City in the implementation of same. Upon request by City, Consultant shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 17. Attorney's Fees Should a dispute arising out of this Agreement result in litigation, it is agreed that the prevailing party shall be entitled to recover all reasonable costs incurred in the defense of the claim, including costs and attorney's fees. 18. Statement of Costs In the event that Consultant prepares a report or document, or participates in the preparation of a report or document in performing the Defmed Services, Consultant shall include, or cause the inclusion of, in said report or document, a statement of the numbers and cost in dollar amounts of all contracts and subcontracts relating to the preparation of the report or document. 19. Miscellaneous A. Consultant not authorized to Represent City Unless specifically authorized in writing by City, Consultant shall have no authority to act as City's agent to bind City to any contractual agreements whatsoever. B. Consultant is Real Estate Broker and/or Salesman If the box on Exhibit A, Paragraph 16 is marked, the Consultant and/or their principals is/are licensed with the State of California or some other state as a licensed real estate broker or salesperson. Otherwise, Consultant represents that neither Consultant, nor their principals are licensed real estate brokers or salespersons. M:\home\engineer\Traffic\l864.96 Page 9 ~ 9~/t 20. Notices All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified herein as the places of business for each of the designated parties. A. Entire Agreement-Supersedes Previous Agreements This Agreement, together with any other written document referred to or contemplated herein, embody the entire Agreement and understanding between the parties relating to the subject matter hereof. Neither this Agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. This agreement supersedes the original contract approved by Resolution 17995 and the First Amendment approved by Resolution 18189. B. Capacity of Parties Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. c. Governing Law/Venue This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the federal or state courts located in San Diego County, State of California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City of Chula Vista. [end of page. next page is signature page.] M:\home\engineer\Traffic\1864.96 Page 10 ~ 5'//7 SIGNATURE PAGE TO SECOND AMENDMENT AND RESTATEMENT OF THE AGREEMENT BETWEEN CITY OF CHULA VISTA AND SMITH & KEMPTON FOR TRANSPORTATION CONSULTING SERVICES IN WITNESS WHEREOF, City and Consultant have executed this Agreement thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: Dated: ,19_ City of Chula Vista By: Shirley Horton, Mayor Attest: Beverly Authelet, City Clerk Approved as to form: Ann Moore, Interim City Attorney Dated: ,19_ Exhibit List to Agreement (X) Exhibit A ( ) Exhibit B M: \home\engineer\ Traffic\ 1864.96 ~ 5' --- //;( Page 11 EXHIBIT A TO SECOND AMENDMENT AND RESTATEMENT OF AGREEMENT BETWEEN CITY OF CHULA VISTA AND SMITH & KEMPTON 1. Effective Date of Agreement: August 1,1996 2. City-Related Entity: (X) City of Chula Vista, a municipal chartered corporation of the State of California () Redevelopment Agency of the City of Chula Vista, a political subdivision of the State of California () Industrial Development Authority of the City of Chula Vista, a ( ) Other: form] , a [insert business ("City") 3. Place of Business for City: City of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910 4. Consultant: Smith & Kempton 5. Business Form of Consultant: ( ) Sole Proprietorship (X) Corporation 6. Place of Business, Telephone and Fax Number of Consultant: 980 Ninth Street, Suite 1560 Sacramento, CA 95814 Voice Phone (916) 446-5508 Fax Phone (916) 446-1499 () - ~ c;)~ Ie.) ~}-I ( I / M: \HOME\ENGINEER \ TRAFFIC\1865B. 96 7. General Duties: Consultant will take the lead role in pursuing State and federal funds for the Orange A venue project. Consultant will also take a lead role in managing the initial project development activities associated with interchange improvements planned on I-80S at Telegraph Canyon Road, Palomar Street, and Orange A venue. Consultant will further address implimentation issues for the SR-125 facility. 8. Scope of Work and Schedule: a. Detailed Scope of Work: Task 1 1-805 Program Management Smith & Kempton will take a lead role in managing the completion of the following project development activities associated with interchange improvements planned on 1-805 at Telegraph Canyon Road, Palomar Street, and Orange Avenue. · Telegraph Canyon Road: Encroachment permit or PSR/PR documents Orange Avenue: PSR/PR documents · Palomar Street: PSR documents Preliminary studies conducted by the Rick Engineering team on the Telegraph Canyon Road interchange at 1-805 have indicated that an encroachment permit process is appropriate, allowing for the accelerated completion of this process. Smith & Kempton will manage the work to be completed by Rick Engineering either through completion of the encroachment permit process or through completion of the PSR/PR document as appropriate. Smith & Kempton will oversee the preparation of combined Project Study Report/Project Report (PSR/PR) documents for the I-80S/Orange Avenue project. The PSR/PR document includes an environmental document (Le., typically a mitigated negative declaration, unless significant environmental impacts are involved), allowing these better-defined projects to move directly into the final design stage upon completion. For the I-80S/Palomar Street interchange, Smith & Kempton will oversee preparation of both an Access Approval Report (MR) and a Project Study Report (PSR) for this interchange. Smith & Kempton will oversee the preparation of an MR, which is designed to provide an up-front review of the interchange concept by FHWA and Caltrans, prior to the initiation of a PSR. Much of the work prepared for the MR will be directly translated in the PSR. Should an acceptable interchange configuration not be approved by FHWA in the MR, Smith & Kempton will terminate activities on Milestone 2 - the preperation of a Project Study Report. M: \HOME\ENGINEER\ TRAFFIC\1865B.96 SMITH & KEMPTON Page 2 ~ 9~:-2-v The preparation of a AAR and PSR will allow for the selection of a preferred interchange configuration at a more conceptual level prior to initiation of the more detailed technical studies that are required at the Project Report stage. Smith & Kempton will take the lead in the following activities related to the preparation of encroachment permit, PSR/PR and PSR documents. · Development of Implementation Team and Developer Advisory Committee meeting schedules, Preparation of agenda statements, Oversight of consultant work products and schedules, · Coordination between City, Consultants, and Caltrans, and Troubleshooting problems and/or project constraints. Task 2 Advocacy Services Part A Pursue State or Federal Funding for Oranoe Avenue The objective of this advocacy effort is to pursue $2.55-5.1 million in funding for construction of Olympic Parkway (Orange Avenue) between the Olympic Training Center (OTC) and Hunte Parkway. The Smith & Kempton team will monitor and respond to regional, state, and federal funding opportunities that may be present in the next year. These include: . Federal demonstration grant through ISTEA reauthorization · Mid-cycle STIP programming focused on "on-the-shelf' projects · 1998 STIP programming Should SB 1505 (Kopp) addressing STIP reform pass, this project could compete for two new funding categories: the "regional choice" and the "economic development" programs. The regional choice program, which would encompass 80% of the available transportation funding provided by the state, would be available for virtually all project categories. As the title suggests, regional choice projects would be selected by SANDAG. As the bill is currently structured, the California Transportation Commission (CTC) would have discretion over 10 percent of the regional choice program (e.g., 8% of the total funding available), but could only identify replacement projects that are located on the National Highway System. The economic development program, which would encompass 5% of the available transportation funds, would be administered by the Secretary of Business, Transportation & Housing. Eligible projects are those that would foster economic development. Part B: Address Implementation Issues Relative to SR-125 Toll Road The Smith & Kempton team will take the lead in providing a comprehensive approach to implementation issues of concern to the City of Chula Vista and the Developer Advisory Committee relative to the SR-125 toll road. The following issues regarding the implementation of the SR 125 project are among those that will be addressed: ~ 9 ----2- / I ~ M: \HOME\ENGINEER \ TRAFFIC\ 1865B. 96 · How phasing or segmenting affect the adjacent street system, phasing of local development, etc., . The level of tolls and toll"credits" for local residents, · Whether and how congestion pricing will be applied, · How, when, and under what terms and conditions the right-of-way will be conveyed by local developers, and . The details of specific interchange design issues. The Smith & Kempton team will work with City staff, the Developer Advisory Committee, and CTV to document outstanding implementation issues, provide recommendations on their resolution, and carry out those recommendations where appropriate. With respect to troubleshooting activities, Smith & Kempton will attend regular meetings to monitor the status of the project and provide assistance as needed. The Smith & Kempton team will also work with CTV to support their efforts for obtaining a credit guarantee through either federal, state, regional, or local funding mechanisms. Coordination Process Two standard meeting dates each month are established as part of this contract. The suggested dates and meeting purposes are summarized below. · 2nd Friday of each Month: 1. Monthly Project Development Team meetings for all three 1-805 interchanges (10:30 AM, 1 :00 PM, 2:30 PM) 2. Lunch Briefings as necessary · 4th Friday of each Month: 1. Monthly Progress Meeting 2. Meetings on Funding Advocacy Issues 3. Follow-up focused troubleshooting meetings on 1-805 interchanges 4. Attendance at SANDAG Board meetings as necessary The Smith & Kempton team will coordinate a montWy progress meeting on the fourth Friday of each month as feasible and/or conference call with City staff and the Developer Advisory Committee. The team believes that two monthly meeting dates will be required, at a minimum, to adequately move forward the project development process for the 1-805 interchange projects. More frequent meetings may be required, once consultants are selected, in the early stages of the process. This will be accomplished as needed by setting meetings on the Thursday preceding the above meeting dates. These regular meetings will be augmented by special meetings in between for necessary trouble shooting and project advocacy. M: \HOME\ENGINEER \ TRAFFIC\1865B. 96 SMITH & KEMPTON Page 4 ~ q ~~ /) I ~ .1/ This coordination process is not considered a separate task, but shall be considered part of the two tasks included herein. The Smith & Kempton team will file a monthly statement of services performed outlining progress on each of the above tasks. Said statement shall be reviewed by staff and Developer Advisory Committee to determine whether satisfactory progress has been made on each task. A determination of unsatisfactory progress may be grounds for termination of this contract under paragraph 10, Termination of Agreement for Convenience of City, of the agreement. b. Date for Commencement of Consultant Services: () Same as Effective Date of Agreement (X) Other: August 1,1996 c. Dates or Time Limits for Delivery of Deliverables: N/A d. Date for completion of all Consultant services: By no later than February 1, 1998 9. Insurance Requirements: (X) Statutory Worker's Compensation Insurance (X) Employer's Liability Insurance coverage: $1,000,000. (X) Commercial General Liability Insurance: $1,000,000. () Errors and Omissions insurance: None Required (included in Commercial General Liability coverage). () Errors and Omissions Insurance: $250,000 (not included in Commercial General Liability coverage). 10. Materials Required to be Supplied by City to Consultant: N/A 11. Compensation: a. (Not Applicable) Single Fixed Fee Arrangement. .~ Page 5 M: \HOME\ENGINEER\ TRAFFIC\1865B .96 L) -:2- -; , /'" For performance of all of the Defined Services by Consultant as herein required, City shall pay a single fixed fee in the amounts and at the times or milestones or for the Deliverables set forth below: Single Fixed Fee Amount: , payable as follows: Milestone or Event or Deliverable Amount or Percent of Fixed Fee b. (X) Phased Fixed Fee Arrangement. For the performance of each phase or portion of the Defmed Services by Consultant as are separately identified below, City shall pay the fixed fee associated with each phase of Services, in the amounts and at the times or milestones or Deliverables set forth. Consultant shall not commence Services under any Phase, and shall not be entitled to the compensation for a Phase, unless City shall have issued a notice to proceed to Consultant as to said Phase. Budget for activities by work task as indicated below:. Task Fee for Said Phase 1. Program management Interchanges for 1-805 $60,000 - Payable in 12 equal monthly installments of $5,000 per months for first 12 month. Then $15,000 Payable in 6 equal monthly installments of $2,500 per month for subsequent six months unless project is completed sooner. 2. SR-125 Project Advocacy $36,000 - Payable in 6 equal monthly installments of $6,000 for six months then $27,000 payable in 6 equal payments of $4,500 for a subsequent 6 months. Project maybe extended beyond one year at the $4,500 monthly rate if funds are available. ~ 9-:2Y' M:\HOME\ENGINEER\TRAFFlC\1865B.96 SMITH & KEMPTON Milestone or Event or Deliverable Amount or Percent of Fixed Fee TASK 1 (1-805 Program Management) Completion of the Telegraph Canyon Road encroachment permit or PSR/PR documents, the Orange A venue PSR/PR document and $60,000 the Palomar interchange Access Approval Report After completion of the Telegraph $15,000 Canyon/Orange Avenue at 1-805 projects complete the Palomar interchange PSR/PRdocuments 12. Materials Reimbursement Arrangement For the cost of out of pocket expenses incurred by Consultant in the performance of services herein required, City shall pay Consultant at the rates or amounts set forth below: ( ) None, the compensation includes all costs. () Reports, not to exceed $ : Not Applicable (N/ A) () Copies, not to exceed $ :N/ A () Travel, not to exceed $ :See Below () Printing, not to exceed $ :N/A () Postage, not to exceed $ :N/ A () Delivery, not to exceed $ : N / A () Long Distance Telephone Charges, not to exceed $ .N/A (X) Other Actual Identifiable Direct Costs: Transportation/Lodging to and from Sacramento will be compensated on an actual cost basis for Meals, Lodging and transportation costs. Transportation/lodging costs not to exceed $20,000. Cost or Rate Total contract amount not to exceed $158,000. In addition to the contract amount, an additional $20,000 may be paid to Consultant for unexpected work if authorized in writing by the City Engineer. 13. Contract Administrators: City: Clifford Swanson, City Engineer Public Services Building 276 Fourth Avenue Chula Vista, CA 91910 (619) 691-5021 M: \HOME\ENGINEER\ TRAFFIC\ 1865B. 96 SMITH & KEMPTON ~ 7'~)5 Consultant: Will Kempton Smith & Kempton 980 Ninth Street, Suite 1560 Sacramento, CA 95814 14. Liquidated Damages Rate: Not Applicable ( ) $ ( ) Other: per day. 15. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: (X) Not Applicable. Not an FPPC Filer. () FPPC Filer () Category No.1. Investments and sources of income. () Category No.2. Interests in real property. () Category No.3. Investments, interest in real property and sources of income subject to the regulatory, permit or licensing authority of the department. () Category No.4. Investments in business entities and sources of income which engage in land development, construction or the acquisition or sale of real property. () Category No.5. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the City of Chula Vista (Redevelopment Agency) to provide services, supplies, materials, machinery or equipment. () Category No.6. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the designated employee's department to provide services, supplies, materials, machinery or equipment. ( ) Category No.7. Business positions. () List "Consultant Associates" interests in real property within 2 radial miles of Project Property, if any: None M: \HOME\ENGINEER\ TRAFFIC\ 1865B. 96 SMITH & KEMPTON f, Page 8 ~ .9-2~ 16. (Not Applicable) Consultant is Real Estate Broker and/or Salesman 17. Permitted Subconsultants: Urban Systems Associates 18. Bill Processing: a. Consultant's Billing to be submitted for the following period of time: ( X) Monthly () Quarterly () Other: Weekly b. Day of the Period for submission of Consultant's Billing: ( X) First of the Month () 15th Day of each Month () End of the Month () Other: End of week c. City's Account Number: 19. Security for Performance ( Not Applicable) () Performance Bond, $ () Letter of Credit, $ () Other Security: Type: Amount: $ () Retention. If this space is checked, then notwithstanding other provisions to the contrary requiring the payment of compensation to the Consultant sooner, the City shall be entitled to retain, at their option, either the following "Retention Percentage" or "Retention Amount" until the City determines that the Retention Release Event, listed below, has occurred: () Retention Percentage: % () Retention Amount: $ Retention Release Event: () Completion of All Consultant Services () Other: END EXHIBIT" A" M: \HOME\ENGINEER\ TRAFFIC\ 1865B. 96 SMITH & KEMPTON n _ j J r::1.---' 9- ) / ~l / .7--/ RESOLUTION NO.~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE SECOND AMENDMENT TO AND RESTATEMENT OF THE AGREEMENT WITH SMITH & KEMPTON FOR ADVOCACY AND PLANNING SERVICES IN CONNECTION WITH TRANSPORTATION FACILITIES AND THE EASTERN CHULA VISTA STRATEGIC PLAN AND APPROPRIATING $178,000 FROM THE TRANSPORTATION DEVELOPMENT IMPACT FEE FUND WHEREAS, on August 8, 1995, the City Council approved an agreement with Smith and Kempton to implement steps in the East Chula vista Strategic Plan; and WHEREAS, a significant amount of progress has been made towards completing the tasks contained in that agreement; and WHEREAS, not all of the work is complete and therefore an amendment needs to be approved to complete the tasks begun by the August 8, 1995 agreement; and WHEREAS, completion of this work is essential for implementation of the Transportation Development Impact Fee Program and has been supported by the major developers; and WHEREAS, the firm of Smith & Kempton have been the project managers for that 1-805 interchange projects and provided advocacy services for the City since August of 1995; and WHEREAS, it would be impractical and disruptive to the process and inefficient to rebid the scope of work contemplated by the subject Agreement due to the unique qualificiations of Smith & Kempton; and WHEREAS, Consultant has performed well as project managers and advocates, are highly capable to perform the duties required of this contract and offer their services at reasonable rates. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula vista does hereby approve the Second Amendment and Restatement of the Agreement wi th smi th & Kempton for transportation consulting services, a copy of the Agreement is on file in the office of the City Clerk as Document No.____. BE IT FURTHER RESOLVED that in light of the recitals above, and in accordance with Municipal Code Section 2.56.070, the formal Consultant Selection Process is hereby waived for this contract. BE IT FURTHER RESOLVED that the sum of $178,000 is hereby appropriated from the Transportation Development Impact Fee Fund 621 into Fund 621-6212-5201. ~ 9'-27 BE IT FURTHER RESOLVED that the Mayor is hereby authorized to execute said agreement on behalf of the City of Chula vista. Presented by Approved as to form by C:\rs\Smith&.Kem John P. Lippitt, Director of Public Works (), ,J..eX 5!/ 2- ~ _~-I / COUNCIL AGENDA STATEMENT Item 10 Meeting Date 10/15/96 ITEM TITLE: Resolution ~pproving Cooperative Projects with the County of San Diego and Appropiating Funds SUBMITTED BY: Director of Public WorkS~_1 REVIEWED BY: City ManageUl:\ 'o~~ (4/5ths Vote: Yes-X-No-.J There are two road projects in the Bonita area that the County of San Diego is processing which have small portions in the City of Chula Vista. The projects are: 1. chip seal of Sweetwater Road and 2. construction of a third west bound lane at Plaza Bonita Road and Bonita Rd.. The County has requested City financial participation for the portions of work within city limits. RECOMMENDATION: That Council Approve the Resolution approving City participation in the two road projects and expending $5,000 from the unexpended portion of Project STL-230, Pavement Overlay Program, and appropiating $25,000 from the Traffic Signal Fund. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: Chip Seal Project The County of San Diego Public Works Department is chip sealing several streets in the Bonita area. Sweetwater Road has been chip sealed between Willow Street and SR-54 except for a small portion in Chula Vista jurisdiction adjacent to the Optimist House and field. This 1200 ft. section could be chip sealed by a change order with the County contractor for a price of approximately $5,000. The County is willing to process the change order if the City is willing to pay. City staff could not prepare the necessary plans and specification documents, advertize for bids, award a contract and have the work done for $5,000 (including construction cost and inspection costs). The costs amounts to approximately $0.10 per square Ft. Also a project this small will result in higher bid prices. Bonita Rd. at Plaza Bonita Blvd. Chula Vista recently completed widening Bonita Rd.. between Plaza Bonita Rd.. and 1-805 in order to provide for 3 travel lanes on the north side. However, just east of the intersection, there are only two travel lanes in the westbound direction. This project will add an additional lane for It) - ( Page 2, Item_ Meeting Date 10/15/96 the westbound direction, therefore resulting In 3 lanes lining up with the additional lane constructed by Chula Vista. The additional lane will be approximately 300 ft. long. Part of the project is within the jurisdiction of Chula Vista. The work involved in Chula Vista involves relocating a traffic signal pole and rebuilding the curb return. The county has requested that we pay for the costs of the work within Chula Vista. It is proposed that we pay actual cost not to exceed $25,000. Staff believes that the extra lane will be beneficial to Chula Vista residents using this intersection because it will allow three lanes to go through the intersection instead of two lanes currently. This project will improve the capacity of the traffic carrying capacity of the intersection. FISCAL IMPACT: The cost to the City for these two projects will be approximately $30,000. There will be virtually no additional maintenance costs in the future for the Bonita Rd.. project, the pavement life of the Sweetwater chip seal will be extended therefore lowering future maintenance costs. There will also be considerable savings to the City by including these projects in the County work program. Attachment: Map - Chip Seal Widening Project M: \HOME\ENGINEER\AGENDA \countagr .jpl. J6 -:< iii ~ a ~JG~L' ,c,;(\f;o, ~ ~~. ~ ~~'R V 6 ~~;. ~ :,J.). ~ ~ I ~~~~\)V ~ i>J ) ~ ::: :0...-:. ......~".>-:. ~ '<( ...... .... :: ~, - -r1C!J1\7 ~-,~ W O~~::.B~,&A ~;y \ ~ I~ CJ) W7\' ~~ ~ '" r ~ &~ ~ ~ ll. a~->- ~,.~~ ~m; 1\ ~ ,,~~~ ~ M' \ ~ l - 0::" \ CI'<'" ", ~ >~Q':, ~~ ~ J: :~~P1.~1~'; ll~ ~ 'tL ~~ "" 0 ll.~w '\' 1; r A ~~~ ~Y' 9.\"'~ ~~ ~ :1 _ ~ ~ "~~ ~~~~ -t...:. v ~ \ ~.1.!k'\ ~ -, ,,\ ~ ~ 1 u...~ eH , ~ '& ~~ >~~ ';A' ~ '\~}' ~\ ~ .'Y/::') ~1 ~ ~ P x.-~\. L.Y"""~ -< ~u <~~t'1 ~~~ v~ i?h- l~::;--- a- ~"i'it ~~~L~"" r; ~y A~'V~ ~ "" ___ ~ -rl ~ \~~--U' .-. .l~'- \~~ ~~ It ~"~ ~~ ~ VJ~m~ ~:rrg C) h ~ ~i~q~ ~ ~L -- ~~ ~~ :P\WX~ a~y ~~~L-J _u 1- I.'... "~ ~~~ 0:: '~L'S @)i If ,~ \~J~'~~~ g~1I0~ a. 0., \ ~ J~\-r~ k 11==1 ~~:l ~ ~ 1-- ~ ~- '- ~.~~\: ~ ~t \V€, ~~rI~ ~ ~'-L\\ 1 ~t--~ \. ~rJ ~ lill:1~I~ ~ ~ ~'C ~ "r;.L' 1~ ~ · I ~~\~,~~ ~ ~l"L~~ ~ rn~\fr\~~ 'I, i:.n l~ ~~ ~ .-- ~ ~~~ ~ L.-rl ~ ~ z~ ID~ ~-w; ~~\~ 16 - 3 RESOLUTION NO.~{) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING COOPERATIVE PROJECTS WITH THE COUNTY OF SAN DIEGO AND APPROPRIATING FUNDS WHEREAS, the County of San Diego is processing two road projects in the Bonita area which have small portions in the City of Chula Vista: 1. Chip Seal of Sweetwater Road and 2. Construction of a third west bound lane at Plaza Bonita Road and Bonita Rd. WHEREAS, the County has requested City financial participation for the portions of work within City Limits; and WHEREAS, the cost to the City for these two projects will be approximately $30,000, however, there will be virtually no additional maintenance costs in the future to Bonita Road and the pavement life of the Sweetwater Chip Seal will be extended thereby lowering future maintenance costs. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby approve the Cooperative Projects with the County of San Diego. BE IT FURTHER RESOLVED that the City Council does hereby expend $5,000 from the unexpended portion of Project STL-230, Pavement Overlay Program and appropriates $25,000 from the Traffic Signal Fund. Presented by Approved as to form by John P. Lippitt, Director of Public Works C:\rs\coop.sd (0-1 -# /1 COUNCIL INFORMATIONAL MEMO DATE: October 15, 1996 TO: The Honorable Mayor and City COU:l\..~embers . John Goss, City Manager SJ. \j).'k~' ~. \)_ .--/ Jerry J. Jamriska, Special Plannin't Projects Manager, tay Ranch VIA: FROM: RE: Responses to Councilman Rindone's Questions The City Council was scheduled to consider a Development Agreement for Baldwin Builders on October 1, 1996. At that hearing, a 9-page report was presented in response to several questions Councilman Rindone raised pertaining to the St. Claire Subdivision and the proposed Tentative Map for Otay Ranch. Due to the length of the report, Council continued the Development Agreement and comments on the responses until October 15, 1996. Since the continuance, staff has taken the opportunity to expand the responses and reformatted the memo by attaching the current set of conditions being proposed for the Otay Ranch Tentative Map instead of referring to them in the body of the response. 1. "Please provide specific new proposals that would be added at the Tentative Map stage that will strengthen map conditions, added security and additional guarantees. · General Response: The proposed conditions of approval for the Tentative Map have been bolstered since the Planning Commission approval on August 14, 1996. The conditions have been elaborated upon in an attempt to provide further assurances to the City that necessary public infrastructure associated with the Otay Ranch project will be properly constructed in a timely fashion. Following is an overview of the additional conditions that have been added or the existing conditions that have been modified in order to address the City's concerns. In addition, the Proposed Conditions of Approval are attached to this informational memo for your early review. The attatched Tentative Map conditions represent just one in a series of regulations imposed upon Otay Ranch properties as such properties go through the entitlement process. Relative to SPA One, it is important to review the controls imposed on the SPA One and PFFP processes. It is also worth explaining how the Development Agreement compliments and supplements conditions and safeguards imposed through the more traditional discretionary approvals. ccinfo-12.doc ))-( The Honorable Mayor and City Council October 15, 1996 Page 2 SPA PlaIVPFFP: The Otay Ranch GDP was an unusually specific General Plan level document. The Otay Ranch GDP is much more precise than any other eastern territory GDP. The GDP and related Resource Management Plan, Facility Implementation Plan, Village Phasing Plan and the Environmental Impact Reports impose numerous precise development standards and requirements for the Otay Ranch properties than other master-planned communities. As a consequence, the SPA One Plan and other related documents are also more precise. Because of the fmancial difficulties evidenced by the applicant early in the processing of SPA One, staff became even more aware of the need to precisely delineate the applicant's performance requirements and to draft SPA conditions and the PFFP to best protect the City's interest. This concern was heightened even further when West Coast Land Fund initiated foreclosure proceedings last December. Staff requested an additional continuance on the Tentative Map to revise and prepare additional conditions. As a consequence of these issues and concerns, the SPA One is unusually precise as evident by imposition of 146 Tentative Map Conditions of approval. Of greater consequence is the detail and requirements contained in the SPA One PFFP. The PFFP contains very precise trigger points for all public infrastructure improvements. For example, the PFFP precisely defines the location, timing and funding for local parks to ensure their timely completion. Another example is a very specific delineation of which road segments must be completed by development phase. This analysis depicts three phasing scenarios which ensure that the City's interests are served, regardless of project phasing through Village One, Village Five, or through both villages. Performance of the road construction is tied to a specific number of dwelling units granting the City the authority to withhold further entitlements if timely performance does not occur. Similar trigger points are established for schools, requiring the applicant to provide school sites at or before specific unit counts. Funding of the schools is assured through the establishment of a Mello Roos district before approval of the initial final map in SPA One, to the satisfaction of the school districts. Similar trigger points are established for drainage, sewer and water facilities. At all times, the City retains the authority to stop entitlement approvals if timely performance of the PFFP trigger points are not adhered to. It is important to note that all regulatory language in the PFFP is repeated in the SPA Conditions of Approval which have been executed by the applicant and recorded against the land. This action notifies all potential purchasers of the property of the trigger point requirements. Specific Responses: The first paragraph on Page One of the Proposed TM Conditions has been modified in order to give first priority to the City over any other lien holders in cases where the applicant is required to provide easements to the City for any purpose. This would serve to put the City in a "first place position" in the event that additional foreclosures ccinfo-12.doc )/-:2- / ' The Honorable Mayor and City Council October 15, 1996 Page 3 occur. The condition also requires that any land granted in fee to the City shall be free and clear of any and all encumbrances. Condition #3 (page 2) is a general condition which gives the City the authority to withhold building permits, revoke or modify any existing approvals, deny or further condition any additional requests should the applicant fail to perform the conditions of approval. This condition is not new and has been in place prior to approval by the Planning Commission. Conditions #7 and #23 (pages 2 and 5, respectively) link the Tentative Map requirements to the Development Agreement for Village Development and require that SR-125 right of way be granted when requested by the City. Condition #28 (pages 5 and 6) requires the applicant to enter into an agreement with the City prior to approval of the first "A" Map to perform certain obligations such as but not limited to funding transit stops, fair share of the pedestrian bridges and not protesting any future regional assessments for the transit stops. Since the agreement will be in place prior to the "A" Map (i.e., prior to subdivision of buildable lots) the City will have the assurance that the "master developer" will pay their fair share of these improvements which are more regional in nature and applicable to the overall Tentative Map. Conditions #101 and #102 (pages 21 and 22) require the developer to enter into agreements with the City prior to approval of each "B" Map in which they agree that the City may withhold building permits if threshold standards are exceeded or if improvements noted in the PFFP are not completed. By requiring the agreement at the "B" Map, all current and future developers of Otay Ranch will have to agree to this concept. Conditions #75, 80 and 81 deal with the prOVISIOn and design of neighborhood and community parks. Conditions #80 and #81 require the developer to pay PAD fees for both Neighborhood and Community Parks which will ensure that funds are in place for acquisition and development of the identified parks. This is slightly modified from the Planning Commission approval, which did not require PAD fees for the Neighborhood Parks. Condition #75 requires the developer to enter into a three party agreement with the City and the design consultant and to deposit monies into an account to fund the cost of the consultant. This will ensure that monies are always available to guarantee a smooth flow of work through the construction document phase. Condition #92 is a new condition which requires the developer to place a cash deposit with the City in order to guarantee the maintenance of open space landscape and irrigation improvements, prior to their acceptance by the City. The amount of the deposit would be equivalent to the estimated cost of maintaining the open space area for a period of six months. This condition assures that funds will be immediately available should the developer be in a position where they cannot perform the needed maintenance. ccinfo-12.doc ) //~S The Honorable Mayor and City Council October 15, 1996 Page 4 Conditions #103 and #104 deal with affordable housing and require dedication of three acres of land for affordable housing at the super block map stage (((A" Map) rather than at a later time with the ((Bn Map. The housing agreement will also be required to be completed with the ((An Map. These conditions ensure that the land will be set aside early in the process prior to any buildable lots being approved. Condition #108 is a new condition and requires the developer to provide, prior to the approval of the first "B" Map, security satisfactory to the City to guarantee the construction of certain roadway and pedestrian facilities. In addition, prior to the approval of the first final "B" Map, the developer shall submit and obtain approval by the City of an improvement phasing schedule which will identify the timing of construction of all facilities noted in condition #108. The improvement phasing schedule may also include the timing of payment of fees. Condition #116 is a condition which requires the developer to submit an ((A" Map and to dedicate all backbone facilities at this stage. The backbone facilities for this tentative map are outlined specifically in the table associated with Condition #108. This condition also guarantees that the noted facilities will be dedicated at the ((B" Map stage should for any reason an ((A" Map not be completed. 2. KHow would these new Tentative Map conditions prevent or eliminRte a repeat of the St. Claire construction issues? Please be specific.JI1 General Responses: Development Agreement Through traditional discretionary approvals (General Plan, SPA Plan and Tentative Map), requirements are imposed as a condition of project approval which relate to the impact caused by the development. As discussed above, staff has carefully crafted appropriate Tentative Map Conditions of Approval to ensure the timely provisions of the facilities to serve each increment of development. However, the City is prohibited from imposing project conditions which do not reasonably relate to the project approval. Thus, the City cannot impose a condition on a project which would require the provision of an improvement that goes beyond the impact caused by the individual project (this is often referred to as the nexus issue). The nexus issue has not been a major concern where the City has been confident that a master developer will be able to buildout a project. However, where the stability of the master developer is in question or where the City has reason to believe that the project might be sold to a series of smaller home builders, the nexus issue becomes a major consideration. The fear is that the City may be legally unable to require an individual home builder, whose project reaches an established trigger point to satisfy the condition because the required improvement goes beyond the impact caused by the individual project. There is a particular problem with respect to backbone facilities. Staff has been pursuing a two-pronged strategy to anticipate and resolve this nexus and backbone facilitity provision issues. The strategy requires: 1) the use of the Development Agreement to avoid the nexus problem; and 2) require the timely posting ccinfo-12.doc //-'1 The Honorable Mayor and City Council October 15, 1996 Page 5 of adequate security to ensure the funding of backbone facilities which serve more than one smaller project areas. The Development Agreement is being utilized to overcome future nexus issues. A property owner, through the Development Agreement, can bind himself and his successors-in-interest to provide improvements or satisfy conditions that go beyond the "nexus" impacts of the individual project. Relative to the SPA One project, staff has negotiated, with the applicant, to include three key provisions in the Development Agreement. The first prOVlSIOn included an express statement by the applicant in the Development Agreement that the applicant is specifically responsible to provide the backbone infrastructure within the SPA One area as defined in the PFFP. This agreement is specific to the applicant and cannot be satisfied until actual performance occurs or until the requirement is expressively released by the City of Ch ula Vista. The second provision included in the Development Agreement is a requirement that the applicant provide for the posting of timely and adequate security to the satisfaction of the City, to ensure completion of the backbone facilities. The third component of the Development Agreement requires that the applicant secure an agreement from the lien holders which expressly states that the provisions of the Development Agreement bind the lien holders should a lien holder assume title to the property through foreclosure or other means of transfer. This ensures that the Development Agreement's obligations to provide for backbone infrastructure will be performed regardless of the fate of the applicant and regardless of any future claims that there is no nexus between the condition and the proposed development. Tentative Map: As discussed above, staff is concerned that the City have adequate assurances that backbone facilities will be provided in a timely manner should property be foreclosed upon, the applicant sell the property, in part or in whole, or the property owner be unable to perform. The development conditions have been drafted to address the nexus issue and to contractually bind the lien holder in the event of foreclosure, as discussed above. Staff is proposing that Tentative Map conditions expressly identify backbone facilities which could be in jeopardy should the property owner encounter the problems discussed above. Relative to the SPA One project, the backbone facilities to be required prior to "B" Map approval are required in Condition #108. To ensure that there is adequate and timely security for the backbone facilities, staff is recommending that Tentative Map conditions be included which require the posting of necessary backbone security as a requirement of the appropriate fmal map. Under this ccinfo-12.doc --- //j ~__S The Honorable Mayor and City Council October 15, 1996 Page 6 system, a final map cannot be approved and legally buildable lots cannot be created until the City has adequate security for the backbone facilities. Landscape Maintenance Problem: In some instances, bonding is an inadequate remedy because of the time necessary to access the bonds. St. Claire is a perfect example. In that instance, timely and adequate bonds were provided for the landscaping, but the bonds have been of little value once Baldwin Builders stopped construction and maintenance. As a consequence, staff is recommending that future Tentative Maps be conditioned to require cash deposits for certain landscape and improvement requirements. With this condition, should the developer stop work, the City can readily and quickly access the cash deposits to continue the necessary maintenance and avoid the St. Claire problem. Assessment District Problem: The Development Agreement is being utilized to help avoid a similar problem experienced in San Marco's Paloma project. In Paloma, the applicant failed to make timely payment to the County Facility Assessment District. The proposed Development Agreement language requires the applicant to comply with the terms of assessment district or other fmancing mechanisms. Failure to comply with assessment district terms would place the applicant in breach of the Development Agreement enabling the City to withhold additional entitlements and eliminating the City's obligation to comply with the Development Agreement. The following table is added to assist Council in comparing the requirements of the City of Chula Vista with the City of San Marcos as it relates to the policies and standards of development: San Marcos Chula Vista Otay Ranch Utilized Mello- Roos CFD to CV does not utilize Mello- Consistent with City policy finance parks, schools and a Roos CFD for any public CFD for elementary school fire station facilities. Only the School has been formed. District utilizes CFDs. Assessment District to fund To date, the developer has infrastructure may be not requested the formation formed at the request of of an Assessment District. developer and must be City is under no obligation approved by City Council. to authorize formation of Typically formed prior to district. any occupancy and used for backbone streets, sewer and water facilities. Subdivision improvement Consistent with City policy bonds required for all public improvements. Developer ccinfo-12.doc J/~t/ The Honorable Mayor and City Council October 15, 1996 Page 7 has three years to complete all improvements and if not, the bonds can be called ID. CFD and property taxes Council policy that Consistent with City policy exceed 2% of assessed value combined property taxes of homes and Assessment District fees may not exceed 2% of original assessed value of home at time of sale. Baldwin became delinquent No CFDs except for schools. Consistent with City policy in payment of their fair share of the CFD Specific Responses: The conditions noted in question #1 above ensure that backbone facilities will be dedicated with the "A" Map or the super block map. The "A" Map does not confer any tangible development rights to the applicant. It simply subdivides the larger tentative map into smaller areas which could readily be sold to guest or merchant builders. Sometimes it is also known as a financial parcel map. While the conditions of approval and existing City policy adequately protect the City with regard to provision of public facilities, the question of the timely completion of homes is still an issue. Typically, bonds are not posted to ensure completion of single family homes. There is little the City can do to guarantee that any builder will finish each and every home they have started constructing. However, staff has added to the Development Agreement (Section 7.11), a requirement that should construction stop the City, at its sole discretion may take whatever steps it deems necessary to cure the nuisance or hazard at Developer's sole cost and expense. Staff has also added condition #92 to the Tentative Map whereby the City can use a cash deposit to maintain 6. awhy has the Otay Ranch Project Team not done a ~globa1 analysis# of the Otay Ranch Project that was drafted on the premise of a project under the control of a single property owner? Is this true?>> The term. "global analysis" is a term. that is not generally used in City and Regional Planning circles. A more appropriate planning term. would be "General Plan" analysis. The Otay Ranch General Development Plan (GDP) is part of the City of Chula Vista's General Plan. As such, the GDP is a legal and binding guide to the future development of the City and environs. The GDP, while prepared and paid for under one company, always contemplated multiple ownership and multiple developers. For example, the Resource Management Plan (RMP) was prepared specifically recognizing existing and potential multiple ownerships of land. Council may recall that the RMP had a series of maps (15 +/-) delineating conveyance of resource land, over time, to the Preserve Owner;M:anager (paM). These maps recognized multiple ccinfo-12.doc //- 7 The Honorable Mayor and City Council October 15, 1996 Page 8 ownerships and was designed to prove that the Conveyance Plan could work with different property owners. The calculation of the amount of land to be conveyed (1.188 acre&ldevelopable acre) is applicable whether there is one or one hundred property owners. However, the City Council and the Board of Supervisors deleted reference to those maps at the time of adoption. When the Otay Ranch General Development Plan (GDP) was approved by the City Council in October of 1993, the entire 23,000-acre property was under the unified "planning control" of The Baldwin Company given to them through a variety of entities. Many of these entities had, and still have, ownership control (i.e., SNMB, VE, G. Smith), but the planning control for the Ranch was still vested with the Baldwin Company. Village Development, et.al. are still the majority property owners. The Otay Ranch Project Team has always tracked changes in ownership and their effects on the property and plan. The Otay Ranch ownership changes have been reported to the Planning Commission and City Council on various occasions. Our analysis at that time, as well as today, indicates that the Otay Ranch GDP and all its supporting documentation, reports and environmental findings would not hinder the successful implementation of the Otay Ranch GDP with a multiplicity of property owners. The Otay Ranch GDP is implemented through a series of SPA Plans. Therefore, development of the Ranch is not dependent on the single ownership of the entire 23,000 acres. The processing of individual Sectional Planning Area (SPA) plans and Tentative Maps are the place where multiple owners have a voice in the proceedings and designs. Each SPA could be under a different ownership and the City Council will still have the power to achieve the successful implementation of the Otay Ranch GDP. This control will be met under the requirements of Section 19.48.020 B of the PC-Planned Community zone which requires that all land within the PC zone be held in one ownership or under unified control, and Section 19.48.070 C of the City Code which requires all development to be in substantial conformity with the adopted GDP. Just as the General Plan for the City contains multiple property owners, the GDP will be implemented with multiple property owners. This was planned from the very beginning. In addition, every property owner, whether owning property today or tomorrow, has the legal right to apply for a change in the City's General Plan, GDP, SPA, Tentative or Final maps. This right to apply, does not in itself, change the basic principle in which the GDP was designed. Only the City Council can change this basic principle--not a change in property ownership or a change in a property line. The Baldwin Company has always planned on selling portions of the Ranch prior to development, so multiple ownerships were always anticipated in the future development of the Otay Ranch. Village Development is still advocating that concept since the filing of Chapter 11 proceedings. The Otay Ranch GDP plans the development of the Ranch in a series of villages. These villages are tied together by common themes and standards in the GDP Overall Design ccinfo-12.doc )J-F(. The Honorable Mayor and City Council October 15, 1996 Page 9 Plan, Facilities Implementation Plans, Village Phasing Plan and the Service Revenue Plan. The SPA plans will further refme these themes and standards in the required Village Design Plan and Public Facilities Financing Plan (PFFP). The PFFP and all the Development Agreements approved by Council requires. that the public facilities be provided in order to maintain threshold standards regardless of ownership. As the Ranch develops either with multiple developers in SPA One or multiple owners of the Otay Ranch, the timely provision of public facilities is will always be required. While a formal paper on "The Global Analysis of the impact of multiple property owners on the Otay Ranch Project" has not been prepared, it has always been evident that multiple ownership of land is and was a possibility. This potential is and has been reflected in the GDP, Annexation Application, SPA One documents, Tentative Map and its conditions, and the Development Agreement. There is no need. for a "Global Analysis" and no amendments are necessary to any of the adopted documents of the City. While not part of the series of questions, the following is presented to Council for their information: 7. Financial Status of Village Development (as of October 8, 1996) At this point in time, Village Development is one month delinquent. On September 25, 1996, $35,997.42 was due and payable. Village Development representatives anticipates the September payment will be paid on or before October 15, 1996. . Attachment: Conditions of Approval ccinfo-12.doc //-7' ATTACHMENT 2 TENTA TIVE MAP - OTA Y RANCH VILLAGES 1 & AND PHASE lA OF VILLAGE FIVE CONDmONS OF APPROVAL Unless otherwise specified or required by law: (a). the conditions and Code requirements set forth below shall be completed prior to the related final map as determined by the Director of Planning, Parks and Recreation and the City Engineer; (b). unless otherwise specified, "dedicate" means grant the appropriate easement, rather than fee title. Where an easement is required the applicant shall be required to provide subordination of any prior lien holders in order to ensure that the City has a first priority interest in such land unless otherwise excused by the City. Where fee title is granted or dedicated to the City, said fee title shall be free and clear of all encumbrances, unless otherwise excused by the City. The tentative map and all conditions herein are predicated on a previously approved Development Agreement. Prior to approval of each final map (including an "A" Map) all property owners shall formally consent to the applicability of the Development Agreement. Should conflicting wording or standards occur between these conditions of approval, any conflict shall be resolved by the City Manager or designee. GEl\r:ERAL/PRELIMINARY 1. Comply with all requirements and guidelines of the Parks, Recreation Open Space and Trails Plan, Public Facilities Financing Plan, Ranch Wide Affordable Housing Plan, Spa One Affordable Housing Plan, and the Non-Renewable Energy Conservation Plan, unless specifically modified by the appropriate department head, with the approval of the City Manager. These plans may be subject to minor modifications by the appropriate department head, with the approval of the City Manager, however, any material modifications shall be subject to approval by the City Council. 2. All of the terms, covenants and conditions contained herein shall be binding upon and inure to the benefit of the heirs, successors, assigns and representatives of the Developer as to any or. all of the Property. For purposes of this document the term "Developer" shall also mean "Applicant" . 3. If any of the terms, covenants or conditions contained herein shall fail to occur or if they are, by their terms, to be implemented and maintained over time, if any of such conditions fail to be so implemented and maintained according to their terms, the City shall have the right to revoke or modify all approvals herein granted including issuance of building permits, deny, or further condition the subsequent approvals that are derived from the approvals herein granted, institute and prosecute litigation to compel their compliance with said conditions or seek damages for their violation. The applicant shall be notified 10 days in advance prior to any of the above actions being taken by the City and shall be given the opportunity to remedy any deficiencies identified by the City. CCI022CN.DOC Printed: 10/9/96 j/-/C} Attachment 2 - Viii & IA Page 1 4. Applicant shall indemnify, protect, defend and hold the City harmless from and against any and all claims, liabilities and costs, including attorney's fees, arising from challenges to the Environmental Impact Report for the Project and/or any or "all entitlements and approvals issued by the city in connection with the Project. 5. The applicant shall comply with all applicable SPA conditions of approval. 6. Any and all agreements that the applicant is required to enter in hereunder, shall be in a form approved by the City Attorney. 7. The terms, conditions and time limits associated with this tentative map shall be consistent with the Development Agreement approved by Ordinance # 2679 by the City Council on July 16, 1996 ("Development Agreement") and as amended on October 22, 1996. 8. The applicant shall comply with the terms of the Conveyance Agreement, adopted by Resolution # 18416 by the City Council on October 22, 1996 ("Conveyance Agreement"). ENVIRONMENTAL 9. Prior to the approval of each final "B" Map, the applicant shall implement all applicable mitigation measures identified in EIR. 95-01, the CEQA Findings of Fact for this Project (Exhibit *) and the Mitigation Monitoring and Reporting Program (Exhibit *). 10. Prior to the approval of each final "B" Map, the applicant shall comply with all applicable requirements of the Phase 2 Resource Management Plan (RMP) as approved by the City Council on June 4, 1996 and as may be amended from time to time by the City. 11. Prior to the approval of each final "B" Map, the applicant. shall comply with the appropriate in lieu fee program to be adopted by the City Council. 12. The Applicant shall comply with any applicable requirements of the California Department of Fish and Game, the U.S. Department of Fish and Wildlife and the U.S. Army Corps of Engineers. DESIGN 13. The secondary access in the southern portion of Neighborhood R-30 shall be surfaced with "grass-crete", "turf-block" or some other comparable material unless otherwise approved by the Planning Director and Fire Chief Bollards shall be provided instead of the locking gate noted on the map. The bollards shall be located closer to the terminus of the cul-de-sac (parker Mountain Road), rather than adjacent to Santa Rosa Drive. 14. Any proposed monumentation/signage shall be consistent with the Village Design Plan and shall be reviewed and approved by the Planning Director prior to approval of the appropriate final map. CCI022CN.DOC Printed: 1019/96 //~// Attachment 2 -Viii & IA Page 2 15. In addition to the requirements outlined in the City of Chula Vista Landscape Manual, privately maintained slopes in excess of 25 feet in height shall be landscaped and irrigated to soften their appearance as follows: one 5-gallon or larger size tree per each 150 square feet of slope area, one I-gallon or larger size shrub per each 100 square feet of slope area, and appropriate groundcover. Trees and shrubs shall be planted in staggered clusters to soften and vary the slope plane. Landscape and irrigation plans for private slopes shall be reviewed and approved by the Planning Director prior to approval of the appropriate final map. 16. A comprehensive wall plan indicating color, materials, height and location shall be reviewed and approved by the Planning Director prior to approval of any final map. Materials and color used shall be compatible and all walls located in corner side-yards or rear yards facing public or private streets or pedestrian connections shall be constructed of a decorative masonry and/or wrought iron material. A revised acoustical analysis indicating if view fencing, such as a combination of masonry and wrought iron, is allowable at the ends of cul-de-sacs backing up to Telegraph Canyon Road, East Orange Avenue and Paseo Ranchero, shall be prepared prior to submittal of the wall plan indicated above. If such fencing is allowable per the final acoustical analysis it shall be provided at the ends of the following streets: Parker Mountain Road, Geyserville Street, Jamestown Drive, Moss Landing Avenue, Porterville Ct., San Dimas Ct., Hanford Ct., Rocklin Ct., Colton Ct., Rincon Point, Santa Inez Ave., Traver Ct., Vernon Ct., Lindsay St., Applegate St. and Dunsmuir Ct. View fencing shall be provided at the ends of all other open cul-de-sacs where a sound wall is not required. Any combination free standing/retaining walls shall not exceed 8.5 feet in height. The applicant shall submit a detail and/or cross section of the maximum/minimum conditions for all "combination walls" which include retaining and free standing walls. Said detail shall be reviewed and approved by the Director of Planning prior to the approval of t.he first final map. The maximum height of all retaining walls shall be 2.5 feet in height when combined with freestanding walls which are six feet in height. A 2-3 foot separation shall be provided between free standing and retaining walls where the combined height would otherwise exceed 8.5 feet. 17. Lots backing or siding onto pedestrian paseos or parks shall be provided with view fencing, such as three feet of wrought iron on top of a three foot masonry wall, subject to approval by the Fire Marshal and the Planning Director. 18. Should the applicant propose an amendment to the Otay Ranch General Development Plan to reduce density within the Village Cores at some time in the future, the provision of additional alley product shall be analyzed and considered concurrently with said amendment. 19. The Design Review Committee shall review and approve the elevations of all homes backing and siding onto Telegraph Canyon Road in Neighborhood R-5. CCI022CN.DOC Printed: 10/9/96 ) / -- / ,J- Attachment 2 - Viii & I A Page 3 20. A minimum of thirty percent of all 55 x 105 feet lots in each final map shall be provided with Hollywood driveways. The applicant agrees to process an amendment to the Planned Community District Regulations for SPA One to reflect said requirement. STREETS, RIGHT-OF-WAY AND PUBliC IMPROVEMENTS 21. Dedicate for public use all the public streets shown on the tentative map within the subdivision boundary. The applicant shall enter into an agreement to guarantee the COnstruction of all street improvements required by the PFFP for that particular phase prior to the approval of the first final "B" Map within that designated phase. 22. Secure in accordance with Section 18.16.220 of the Municipal Code, as necessary, the construction and construct full street improvements for all on-site and off-site streets deemed necessary to provide service to the subject subdivision. Said improvements shall include, but not be limited to, asphalt concrete pavement, base, concrete curb, gutter and sidewalk, sewer, reclaimed water and water utilities, drainage facilities, street lights, signs, landscaping, irrigation, fencing and fire hydrants. Street cross sections shall conform to the cross sections shown on the Tentative Map. All other design criteria shall comply with the current Chula Vista Design Standards, Chula Vista Street Design Standards, and the Chula Vista Subdivision Manual unless otherwise conditioned or approved herein. Exhibit A indicates the relationship between the Otay Ranch SPA One roadway designations and the approved City designations in the Circulation Element of the General Plan for purposes of determining the appropriate design standards for all streets within SPA One. Should the City Engineer deem that the construction of sidewalks along the offsite portions of East Orange Avenue and East Palomar Street west of Pas eo Ranchero is not necessary to provide service to the subject subdivision, their construction may be delayed. The developer shall dedicate on the appropriate final "B" Map, the right-of-way to extend Carmel Avenue, Santa Lucia Road, Santa Flora Drive, Gold Run Road, Applegate Street, Livingston Avenue and Grayson Court to the easterly subdivision boundary of Village One. The City Engineer and the Planning Director may waive this requirement if it is demonstrated that a street does not need to be extended to provide access to the adjacent property. Unless otherwise approved by the City Engineer, the developer shall provide a cul-de-sac at the end of all proposed street stubs along the subdivision boundary. The City Engineer may approve the installation of a temporary turnaround at the end of those streets that might be extended in the future to provide access to the adjacent property. 23. In accordance with the pre-Annexation Development Agreementthe developer shall grant to the City fee title to the right-of-way for SR 125. Said right-of-way shall be contained in a lot granted to the City for open space, transportation and other public purposes. The right-of-way shall be granted at such time as requested by the City. CCI022CN.DOC Printed: 10/9/96 II-I) --- Attachment 2 - ViII & IA Page 4 24. As part of the improvement plans associated with the final "B" Map which triggers the installation of the related street improvements, install a fully activated traffic signal including interconnect wiring at the following intersections: a. East Palomar Street and Paseo Ranchero b. East Palomar Street and La Media Road c. East Palomar Street and East Orange Avenue d. East Orange Avenue and Paseo Ranchero e. East Orange Avenue and La Media Road Install underground improvements, standards and luminaries with construction of street improvements, and install mast arms, signal heads and associated equipment as determined by the City Engineer. 25. Submit to and obtain approval by the City Engineer of striping plans for all collector or higher classification streets simultaneously with the associated improvement plans. 26. Design all vertical and horizontal curves and intersection sight distances to conform to the CalTrans Highway Design Manual. Sight visibility easements shall be granted as necessary to comply with the requirements in the CalTrans Highway Design Manual. 27. Plant trees within all street parkways which have been selected from the revised list of appropriate tree species described in the Village Design Plan which shall be approved by the Directors of Planning, Parks and Recreation and Public Works. The applicant shall provide root control methods per the requirements of the Parks and Recreation Director and a deep watering irrigation system for the trees. An irrigation system shall be provided from each individual lot to the adjacent parkway. The improvement plans, including final selection of street trees, for the street parkways shall be approved by the Directors of Planning, Parks and Recreation and the City Engineer. 28. Enter into an agreement with the City, prior to approval of the first final "A" Map, where the developer agrees to the following: a. Fund and install Chula Vista transit stop facilities when directed by the Director of Public Works. The improvement plans for said stops shall be prepared in accordance with the transit stop details described in the Village Design Plans and approved by the Directors of Planning and Public Works. b. Not protest the formation of any future regional benefit assessment district to finance the Light Rail Transit. c. Fund its fair share of the cost of construction of the two pedestrian bridges connecting Villages One to Village Two and Village Five to Village Six as determined by the City Engineer based on the proportionate benefit received from the improvements. The developer shall also identify the financing mechanism to be used to fund said cost. CCI022CN.DOC Printed: 10/9/96 //~Jtf Anachment 2 - ViII & IA Page S 29. Grant in fee to the City the right-of-way for the Light Rail Transit as indicated on the approved Tentative Map. Said right-of-way shall be contained in lots granted to the City for open space, transportation, and other public purposes. Said lots shall not extend across street intersections unless approved by the City Engineer. Include said lots in an open space district. 30. Guarantee the construction and enter into an agreement to construct the pedestrian bridge connecting Village One to Village Five in accordance with improvement plans approved by the City prior to approval of the final map that requires construction of La Media Road betWeen East Palomar Street and East Orange Avenue. The developer shall be responsible for the construction of said bridge and may seek, with the concurrence of the City, repayment from other benefiting property owners through a reimbursement district. 31. In the event the Federal Government adopts ADA standards for street rights-of-way which are in conflict with the standards and approvals contained herein, all such approvals conflicting with those standards shall be updated to reflect those standards. Unless otherwise required by federal law, City ADA standards may be considered vested, as determined by Federal regulations, only after construction has commenced. 32. Prior to approval of any finaI map that requires the construction of Santa Madera Avenue between Telegraph Canyon Road and Morgan Hill Drive ("Temporary Roadway"), in order to access the final map property, the developer shall accomplish the following: a. Obtain all permits and agreements with the environmental regulatory agencies required to construct the "Temporary Roadway". b. Obtain a construction permit from the City approving the necessary modifications to the existing improvements in Telegraph Canyon Road including the provision of a fully activated traffic signal as directed by the City Engineer. c. Create and implement a financing plan where the developer agrees to: 1. Perform the following: a. Restore the median improvements and remove the traffic signal as directed by the City Engineer to provide only right-in/right-out access at said intersection. This work shall be performed at such time as La Media Road between Telegraph Canyon Road and East Palomar Street is opened for public use. b. Remove to the satisfaction of the City Engineer the remammg "Temporary Roadway" improvements required to close said intersection , at such time as a permanent road connecting Filmore Street in Village One to East Orange Avenue is opened for public use. CCI022CN.DOC Printed: 10/9/96 ----- ) /-- /~ Attachment 2 - ViII & IA Page 6 2. Restore the Telegraph Canyon Road improvements and regrade the area to be consistent with the streetscape of Telegraph Canyon Road and the drainage channel as directed by the City Engineer and Director of Parks and Recreation. 3. Install signs as directed by the City Engineer, indicating that the "Temporary Roadway" will be closed once the pennanent road connecting Filmore Street in Village One to East Orange Avenue is opened for public use. 4. Provide a Notice in any residential disclosure document that the "Temporary Roadway" will be closed once the pennanent road connecting Filmore Street in Village One to East Orange Avenue is opened for public use. 5. Provide bonds in the amount determined by the City Engineer to guarantee the following: a. Restoration of the median improvements and removal of the traffic signal required to provide only right-Wright-out access at said intersection. Said bonds shall be provided prior to approval of the final map requiring the construction of La Media Road between Telegraph Canyon Road and East Palomar Street. b. Removal of the remaining temporary improvements required to close said intersection and restoration of the area as directed by the City Engineer and Director of Parks and Recreation. Said bonds shall be posted prior to approval of the final map for Village One Core or any unit thereof 6. Provide for all costs associated with the vacation of the "Temporary Roadway" 33. As part of the improvement plans associated with the first final ''B'' Map which triggers the construction of Paseo Ranchero, La Media or Santa Paula Drive provide the necessary modifications to the applicable existing traffic signals including interconnect wiring at the following intersections: a. Telegraph Canyon Road at St. Claire Drive b. Telegraph Canyon Road at Otay Lakes Road c. Telegraph Canyon Road at Paseo Ranchero Install underground improvements, standards and luminaries with construction of street improvements and install mast arms, signal heads and associated equipment as determined by the City Engineer. 34. Include the right of way for the proposed "Temporary Roadway" (Santa Madera Avenue between Telegraph Canyon Road and Morgan Hill Drive) in a separate lot. In the appropriate final CCI022CN.DOC Printed: 1019196 J///t Attachment 2 - Viii & IA Page 7 "B" Map, as determined by the City Engineer, grant said lot in fee to the City for open space, transportation, and other public uses. 35. Guarantee the construction and enter into an agreement to construct, prior to the approval of any final "B" Map for Neighborhoods R-15, 16, 17, 18, 19, CPF-l, 2, 3, C-l or 2 or any unit thereof; the construction of a permanent public road connecting Filmore Street in Village One to East Orange Avenue as depicted on the Tentative Map. This road shall have a right-of-way width of 40 feet and be designed and constructed to City standards for residential streets except that it shall nave a width (curb to curb) of 26 feet and sidewalk only on one side. 36. Provide (1) twenty feet setback on driveways from property line to garage and (2) sectional roll-up type garage doors at all properties fronting on streets where cul-de-sacs are 150 feet or less in length except as provided for in the Planned Community District Regulations or approved by the City Engineer and the Planning Director. 37. Not install privately owned water, reclaimed water, or other utilities crossing any public street. This shall include the prohibition of the installation of sleeves for future construction of privately owned facilities. The City Engineer may waive this requirement if the following is accomplished: a. The developer enters into an agreement with the City where the developer agrees to the following: I. Apply for an encroachment permit for installation of the private facilities within the public right-of-way. 2. Maintain membership in an advance notice such as the USA Dig Alert Service. 3. Mark out any private facilities owned by the developer whenever work is performed in the area. The terms of this agreement shall be binding upon the successors and asSIgnS of the developer. b. Shutoff devices as determined by the City Engineer are provided at those locations where private facilities traverse public streets. 38. Grant on the final "B" Map containing the paseo between Neighborhoods R-8 and R-9 a 60- 'wide easement for street right-of-way and other public purposes. The paseo improvements shall be constructed within said easement. Prior to approval of the same final map the developer shall accomplish the following: a. Guarantee the COnstruction of the paseo improvements (if public) as directed by the Director of Planning, Director of Parks and Recreation, and City Engineer. CCI022CN.DOC Printed: 10/9/96 J/- ) 7 A1tachment 2 - ViiI & I A Page 8 b. Enter into an ~greement with the City where the developer agrees to construct street improvements for vehicular access within the 60-foot easement in accordance with improvement plans approved by the City Engineer if vehicular access is needed in the future. 39. Include in separate lots the right-of-way required to accommodate the future grade separation at the intersections of (1) Telegraph Canyon and Otay Lakes Road, and (2) East Orange Avenue and Paseo Ranchero. These lots shall be granted in fee to the City for Open Space, transportation, and other public purposes on the appropriate final ''B'' Map, as detennined by the City Engineer. 40. Residential Street Condition A as denoted on the cover page of the tentative map is the preferred section and shall be implemented on all residential streets, excluding the alley product, unless otherwise approved by the City Engineer and Planning Director. 41. The applicant shall submit a conceptual design for the bridge connections between Village One and Village Five which indicates materials, height, location, etc. Said design plan shall be reviewed and approved by the Planning Director prior to approval of the final "B" Map that requires construction of La Media Road between East Palomar Street and East Orange Avenue. 42. Requested General Waivers 1, 2 and 3 and Specific Waiver 3, as indicated on the cover sheet of the tentative map, are hereby approved. Specific Waivers 1 and 2 are approved subject to th~ condition that one-way circulation be provided at the north-south streets adjacent to parks P-4 and P-5, unless otherwise approved by the City Engineer. 43. The applicant shall submit and obtain approval from the City Engineer and the Planning Director of a final conceptual design of the proposed traffic circles prior to approval of the first final "B" Map. The developer shall submit striping, signage and landscape plans for all traffic circles indicated on the tentative map. In the event the traffic circles are-not approved, some type of alternative enhanced landscaping and/or entry statement at those intersections, acceptable to the City Engineer and the Planning Director, shall be identified prior to approval of the first final "B" Map. 44. Unless otherwise approved by the City Engineer, the developer shall provide sewer stubs extending to the easterly subdivision boundary of Village One at the following locations: (1) all the street stubs proposed along said boundary, and (2) at those locations where right-of-way dedication is required to extend Carmel Avenue, Santa Lucia Road, Santa Flora Drive, Gold Run Road, Applegate Street, Livingston Avenue and Grayson Court to said subdivision boundary. 45. Prior to approval of the first final "B" Map the developer shall submit and obtain the approval of the City Engineer of a design study of the connection of the sewerline shown on the tentative map as ending at the northerly end of Gold Run Road to an approved public sewer system. 46. Right-of-way for the light rail transit line shall provide for spiral curves as required by MTDB and approved by the City Engineer. CCI022CN.DOC Printed: 10/9/96 )///6 Attachment 2 -ViII & 1 A Page 9 GRADING AND DRAINAGE 47. Provide a setback, as determined by the City Engineer, between the property lines of the proposed lots and the top or toe of any slope to be constructed where the proposed grading adjoins undeveloped property or property owned by others. The City Engineer shall not approve the creation of any lot that does not meet the required setback. The developer shall submit notarized letters of permission to grade for all off-sit~ grading. 48. Submit a list of proposed lots with the appropriate grading plan indicating whether the structure will be located on fill, cut or a transition between the two situations unless otherwise approved by the City Engineer. 49. Comply with all the provisions of the National Pollutant Discharge Elimination System (N"PDES) and the Clean Water Program. 50. Provide runoff detention basins or any other facility approved by the City Engineer to reduce the quantity of runoff from the development to an amount equal to or less than the present lOa-year frequency runoff 51. Provide "as built" improvement and storm drain plans in DXF file format to the satisfaction of the City Engineer. 52. Grant on the appropriate final "B" Map a 15 feet minimum drainage and access easement for stormdrain lines located between residential units unless otherwise directed by the City Engineer. All other easements shall meet City standards for required width. 53. Prior to approval of (1) the first final "B" Map or grading permit.for land draining into the Poggi Canyon or (2) the first final "B" Map or grading permit which requires COnstruction of Santa Madera between Telegraph Canyon Road and Morgan Hill Drive ("Temporary Roadway"), the developer shall: a. Guarantee the construction of the applicable drainage facility, as follows: 1. Runoff detentionldesiIting basin and naturalized channel in Poggi Canyon; or 2. Runoff detention Basin in Telegraph Canyon Channel The developer shall be responsible for obtaining all permits and agreements with the environmental regulatory agencies required to perform this work. b. Prepare a maintenance program including a schedule, estimate of cost, operations manual and a financing mechanism for the maintenance of the applicable facilities. Said program shall be subject to approval of the City Engineer, the Director of Parks and Recreation, and the applicable environmental agencies. CCI022CN.DOC Printed: I 0/9/96 //--/51 Attachment 2 - ViII & I A hgc 10 c. Enter into an agreement with the City of Chula Vista and the applicable environmental agencies (Fish and Game, Fish and \VlIdlife) wherein the parties agree to implement the maintenance program. d. Enter into an agreement with the City where the developer agrees to the following: 1. Provide for the maintenance of the proposed detention basin in Telegraph Canyon and the proposed naturalized channel and detention basin in Poggi Canyon until such time as maintenance of such facilities is assumed by the City or an open space district. 2. Provide for the removal of siltation in the Telegraph and Poggi Canyon Channels (including detention basins) until all upstream grading within the development is completed and erosion protection planting is adequately established as determined by the City Engineer and Director of Parks and Recreation. 3. Provide for the removal of any siltation in the Telegraph and Poggi Canyon Channels (including detention basins) attributable to the development for a minimum period offive years after maintenance of the facility is assumed by the City or an open space district. 54. Enter into an agreement with the City, prior to approval of the first final "B" Map or grading pennit for land draining into the existing Telegraph Canyon Channel, where the developer agrees to perform the following activities within the portion of said existing channel extending from Paseo Ladera to the eastern subdivision boundary: a. Provide for the removal of siltation until all upstream grading. within the development is completed and erosion protection planting is adequately established as determined by the City Engineer and Director of Parks and Recreation. b. Provide for the removal of any siltation attributable to the development for a minimum period of five years after maintenance of the channel is assumed by the City or an open space district. 55. Ensure that brow channels and ditches emanating from and/or running through City Open Space are not routed through private property and vice versa. 56. Provide a graded access (12 feet minimum width) and access easements as required by the City Engineer to all public storm drain structures including inlet and outlet structures. Improved access as determined by the City Engineer shall be provided to public drainage structures located in the rear yard of any residential lot. 57. Provide a protective fencing system around (1) the proposed detention basins at Telegraph Canyon and Poggi Canyon, and (2) inlets and outlets of storm drain structures, as directed by the City CCI022CN.DOC Printed: 10/9/96 / /./;Lv Attachment 2 - Viii & lA . Page 11 Engineer. The final design and types of construction materials shall be subject to approval of the Director of Planning and the City Engineer. 58. Designate all drainage facilities draining private property to the point of connection with public facilities as private. 59. Provide a 6 inch thick concrete access road to the bottom of the proposed detention basins. This access shall have a minimum width of 12 feet, a maximum slope of 8%, and a heavy broom finish on the ramp as directed by the City Engineer. 60. Obtain a Letter of Map Revision (LOMR) from the Federal Emergency Management Agency revising the current National Flood Insurance Program maps of the Telegraph Canyon Channel to reflect the effect of the proposed drainage improvements. The LOMR shall be completed prior to acceptance by the City of the proposed detention facility. 61. Provide graded maintenance access roads along both sides of the proposed onsite and off site portions of the Poggi Canyon Channel. The width of said roads shall be 12 feet unless otherwise approved by the City Engineer. The final dimensions and location of the access roads shall be as determined by the City Engineer. 62. Obtain, prior to approval of the first final "B" Map, the approval of the Director of Public Works to any amendment necessary to make the Master Drainage plan consistent with the approved Tentative Map. 63. Prior to the installation of the regional trail, install a fence along those portions of (1) the existing maintenance access roads along the Telegraph Canyon Channel, and (2) the proposed maintenance access roads of the Poggi Canyon Channel, which are propo~ to be incorporated into the Regional Trail System. The fence shall be erected only at those locations where its installation will not interfere with the normal channel maintenance. The specific locations where the fence will be allowed and the fence details shall be as determined by the City Engineer and Director of Parks and Recreation 64. Prepare and obtain approval by the City Engineer, Director of Planning, and Director of Parks and Recreation of an erosion and sedimentation control plan and landscape!IITigation plans as part of the grading plans 65. Landform grading, similar to what has been proposed along Telegraph Canyon Road and consistent with City policy, shall be implemented adjacent to all off-site major roads. 66. Indicate on all affected grading plans that all walls which are to be maintained by open space districts shall be constructed entirely within open space lots dedicated to the City. 67. Prior to the approval of the grading plans proposing the grading of the area that would accommodate the future grade separated intersections at East Orange AvenuelPaseo Ranchero CCI022CN.DOC Printed: 10/9/96 //---;1-/ Attachment 2 - ViII & IA Page 12 and Telegraph Canyon Road/Otay Lakes Road, the developer shall submit a design study, acceptable to the City Engineer, of the grading required for said grade separated intersections. 68. The grading plans for the intersection at East Orange Avenue/Paseo Ranchero shall include a partial grading of the area that would accommodate the eastbound on-ramp and off- ramp and the westbound on-ramp of the future grade separated intersection. The elevations and extent of the required grading shall be determined by the City Engineer to~ (1) allow in the future the construction of any additional grading necessary for the ultimate intersection configuration, and (2) construct the Poggi Canyon Channel at its ultimate location. 69. Prior to approval of the grading and/or improvement plans proposing the construction of the culvert under La Media Road at the crossing with the Telegraph Canyon Channel, the developer shall submit a study acceptable to the City Engineer demonstrating that the proposed culvert will be capable of handling the design flow in the event said culvert needs to be extended in the future in conjunction with the grading for a grade separated intersection at Telegraph Canyon Road/Otay Lakes Road. SE\VER 70. Provide an improved access road with a minimum width of 12 feet to all sanitary sewer manholes. The roadway shall be designed for an H-20 wheel load or other loading as approved by the City Engineer. 71. Grant on the appropriate final "B" Map a 20 feet minimum sewer and access easement for sewerlines located between residential units unless otherwise directed by the City Engineer. AIl other easements shall meet City standards for required width. PARKS/OPEN SP A CEIWILD LIFE PRESERVATION General 72. The SPA one project shall satisfy the requirements of the Park Land Dedication Ordinance (PLDO). The ordinance establishes a requirement that the project provide three (3) acres ofIocal parks and related improvements per 1, 000 residents. Local parks are comprised of community parks and neighborhood parks. Pedestrian parks are an integral component of the plan and shall receive partial park credit as defined below. A minimum of two thirds ( 2 acres/I, 000 residents) of local park requirement shall be satisfied through the provision of turn-key neighborhood and pedestrian parks within SPA One. The remaining requirement (1 acre/1,000 resi4ents) shall be satisfied through the payment of fees. 73. All local parks shall be consistent with the SPA One PFFP and shall be installed by the Applicant. A construction schedule, requiring all parks to be completed in a timely manner, shall be approved by the Director of Parks and Recreation. 74. All local parks shall be designed and constructed consistent with the provisions of the Chula Vista Landscape Manual and related Parks and Recreation Department specifications and policies. CCI022CN.DOC Printed: 10/9/96 //-;1-;2- Attachment 2 - ViI 1 & 1 A Page 13 75. The applicant shall enter into a Chula Vista standard three party agreement with the City of Chula Vista and design consultant(s), for the design of all aspects of the neighborhood and community parks in accordance with the Master Plan whereby the Parks and Recreation Director selects the design consultant(s), to be funded by the applicant. The cost for the consuItant(s) shall be established and said amount deposited into an account prior to any work being initiated by the consultant. The agreement shall include, but not be limited to, master planning, design development phase, construction document phase and construction supervision phase for the park sites. The construction docu-ments shall reflect the then current requirements of the City's Code/Landscape Manual requirements. 76. The Applicant shall receive surplus park credit to the exient the combined park credit for neighborhood parks, pedestrian parks, the town square park and the community park exceeds the 3 acres per 1,000 residents standard. This surplus park credit may be utilized by the Applicant to satisfy local park requirements in future SPAs. 77. The Applicant and the City shall mutually agree on a PAD fee reimbursement schedule in coordination with the adopted construction schedule. Milestones will be established for partial reimbursement during the construction process. The City may withhold up to 20% of the park construction funds until the park has been completed and accepted. Reimbursement of PAD fees shall include the interest accrued by the City on said PAD fees minus the City's cost of processing and administering this reimbursement program. 78. Grant in fee all designated public park lands at such time as is necessary to implement the requirements of the PLDO and the PFFP. 79. Pedestrian Parks (also known as mini-parks): Pedestrian parks less than five acres, as identified in the SPA One Plan, shall be maintained by a funding entity other than the City's General Fund. Pedestrian parks shall receive a minimum of 25% and a maximum of 50% park credit, as determined by the Director of Parks and Recreation pursuant to the City wide small park credit criteria which shall be approved by the City Council. 80. Neighborhood Parks: a. In addition to those PAD fees required by Condition #81, the Applicant shall pay PAD fees based on a formula of 2 acres per 1,000 residents for the first 500 dwelling units. In the City's sole discretion, PAD fees may be required for units in excess of the first 500 dwelling units, or in the alternative: b. Prior to the approval of the first final map which creates residential lots (UB" Map), the applicant shall enter into a supplemental agreement where the applicant agrees to construct the first neighborhood park in SPA One, in a location determined by the Director of Parks and Recreation, no later than issuance of the building permit for the SOOth dwelling unit. The agreement shall also provide the following: 1. The level of amenities required in the first phase of construction of the first neighborhood park shall be determined by the Director of Parks and Recreation in conjunction CCI022CN.DOC Printed: 1019196 )J -:;2- 3 Anac1unent 2 - ViiI & IA Page 14 with the park master planning effort required by the City of Chula Vista Landscape Manual. Said level of amenities shall be equivalent to five acres of neighborhood park improvements as described in the PLDO ordinance and the Park Master Plan as approved by the Director of Parks and Recreation. The applicant shall complete construction of the first phase of the first neighborhood park within six (6) months of commencing construction of said park. 2. Prior to issuance of the building permit for the 1 1 50th dwelling unit, the Director of Parks and Recreation shall determine the level of amenities required for the second phase of construction of this park consistent with the PLDO and the Park Master Plan, or in lieu of the second phase, require the construction of another neighborhood park at a different location. 3. At no time following completion of construction of the first phase of the first neighborhood park shall there be a deficit in "constructed neighborhood park" based upon 2 acres/I,OOO residents. Applicant shall agree that the City may withhold the issuance of building permits should said deficit occur. For purposes of this condition, the term "constructed neighborhood park shall mean that construction of the park has been completed and accepted by the Director of Parks and Recreation as being in compliance with the Park Master Plan, but prior to the mandatory 9-12 month maintenance period. This condition is not intended to supersede any of the City's maintenance guarantee requirements. 4. The Applicant shall receive reimbursement of PAD fees, proportionate to what has been constructed, should they deliver a turn-key park which has been constructed in accordance with the Parks Master Plan. c. The applicant shall grant to the City, at the "A" Map stage, an irrevocable offer of dedication for all neighborhood parks shown on the Tentative Map. 81. Community Parks: a. Prior to approval of each final "B" Map the Applicant shall pay PAD fees for the Community Park based upon a formula of 1 acre per 1, 000 residents, until such time as a turn- key facility has been accepted by the Director of Parks and Recreation. Said turn-key facility is subject to the reimbursement mechanism set forth below. b. The first Otay Ranch Community Park, to satisfy SPA One demand, shall be located in Village 2 as identified in the GDP. c. The Applicant shall identify the relocation, if any, of the Village 2 Otay Ranch Community Park prior to issuance of the building permit for the 1, 150th dwelling unit. Said relocation may require an amendment to the Otay Ranch General Development Plan. d. Notwithstanding that the community park requirement (1 acre/I,OOO residents) shall be satisfied through the payment of P AD fees, the Applicant shall commence construction of the first phase of the Community Park prior to issuance of the building permit for the 2,650th dwelling unit. The first phase of construction shall include, but not be limited to, improvements such as a CCI022CN.DOC Printed: I 0/9/96 /1 ~ J- i Attachmen12 - ViiI & IAiPage I S graded site with utilities provided to the property line and an all weather access road acceptable to the Fire Department. e. The Applicant shall commence construction of the second phase of the Community Park prior to issuance of the building permit for the 3,OOOth dwelling unit. Second phase improvements shall include recreational amenities as identified in the Park Master Plan. f The Community Park shall be ready for acceptance by the Director of Parks and Recreation for maintenance prior to issuance of the building permit for the 3,900th dwelling unit. g. If the Director of Parks and Recreation determines that it is not feasible for the Applicant to commence construction of the first phase improvements of the community park prior to issuance of the building permit for the 2,650th unit, then the Director of Parks and Recreation shall have the option to utilize the PAD fees for said improvements, or to construct another park facility, east of the I-80S Freeway within an acceptable service radius of SPA One, as set forth in the GDP. h. The Applicant shall provide a maintenance period of 9-12 months in accordance with the City of Chula Vista Parks and Recreation Department policy. i. The Applicant shall receive reimbursement ofP AD fees, proportionate to what has been constructed, excluding the cost of construction of the all weather access road, for the community park should they deliver a turn-key facility to the City in accordance with the Community Park Master Plan. 82. Trails/Open Space: a. All trails shall connect to adjoining existing and/or propqsed trails in neighboring development projects, as determined by the Director of Parks and Recreation. b. The two connector trails from Neighborhoods R-24 and R-25 in Village Five to Telegraph Canyon Road shall be combined into one trail in Open Space Lot 37 and shall connect to the regional trail in one location. c. The maximum gradient for connector trails shall be 10%. Steeper grades of up to 12% for short runs of 50 feet may be permitted subject to the approval by the Parks and Recreation Director. d. The graded section upon which the connecting trails are constructed shall be 10 feet in width. Six feet shall be provided for the trail bed, with a 2 foot graded shoulder on either side. e. Landscape and irrigation plans for the transit right-of-way shall be reviewed and approved by the Parks and Recreation Director in conjunction with the landscape plans for East Palomar Street. CCI022CN.DOC Printed: 10/9/96 J/~;2~ Anacluncnt 2 - ViII & I A Page 16 83. Community Gardens: a. Community Gardens shall be consistent with the guidelines in the SPA One Parks, Recreation, Open Space and Trails Master Plan, including creation of the Community Garden Committee and their responsibilities. b. Water lines shall be stubbed from the nearest open space water meter to the site(s) in order to facilitate development of the Community Gardens. c. Community Garden sites shall be consistent with those identified on the tentative map. d. Maintenance of Community Gardens shall be funded by an Open Space Maintenance District, Homeowner's Association or other funding mechanism approved by the Director of Parks and Recreation and the City Engineer. e. Community Gardens shall not receive park credit. OPEN SPACE/ASSESSMENTS 84. Prior to the approval of the first final "B" Map, the developer shall: a. Submit and obtain approval of the SPA One Open Space Master Plan from the Director of Parks and Recreation. The Open Space Master Plan shall be based upon the approved Concept and Analysis Plan, the requirements of which are outlined in the City of Chula Vista Landscape Manual and include but are not limited to elements such as final recreational trail alignments and fencing and phasing. b. Request the formation of an Open Space District pursuant to the 1972 Landscaping and Lighting Act for the Otay Valley Parcel of the Otay Ranch. This district formation shall be submitted to Council for consideration prior to appr.oval of the first final map. Maintenance of the open space improvements shall be accomplished by the developer for a minimum period of one year or until such time as accepted into the open space district by the Director of Parks and Recreation. If Council does not approve the open space district formation, some other financing mechanism shall be identified and submitted to Council for consideration prior to approval of the first final map. c. Submit a list of all OT A Y RANCH SPA One facilities and other items to be maintained by the proposed district. Separate lists shall be submitted for the improvements and facilities to be maintained by the Open Space District and those to be maintained by a Homeowner's Association. Include a description, quantity and cost per year for the perpetual maintenance of said improvements. These lists shall include but are not limited to the following facilities and improvements: 1. AIl facilities located on open space lots to include but not be limited to: walls, fences, water fountains, lighting structures, paths, trails, access roads, drainage structures and landscaping. Each open space lot shall also be broken down by CCI022CN.DOC Printed: 1019/96 II/' J? Attachment 2 - ViII & I A Page 17 the number of acres of turf, inigated, and non-irrigated open space to aid in the estimation of a maintenance budget thereof 2. Medians and parJ..'Ways along East Orange Avenue (onsite and off site), Paseo Ranchero, La Media Road, East Palomar Street (onsite and off site) and all other street parkways proposed for maintenance by the open space district or Homeowners' Association. 3. The proposed detention basin in Te]egraph Canyon and the fair share of the maintenance of the existing naturalized Te]egraph Canyon Channel east of Paseo Ladera as determined by the City Engineer based on the proportional benefit received from the improvements. This includes but is not limited to the cost of maintenance and all costs to comply with the Department of Fish and Game and Corps of Engineers permit requirements. 4. The proposed detention basin and naturalized channel in Poggi Canyon. This includes but is not limited to the cost of maintenance and all cost to comply with the Department of Fish and Game and the Corps of Engineers permit requirements. 5. Community Gardens 6. Pedestrian Bridges. 7. The proportional share of the maintenance of the median and parkways along that portion of Telegraph Canyon Road adjoining the development as determined by the City Engineer. 8. All proposed facilities and improvements (excepting street improvements) within the 60-foot wide easement to be dedicated to the City for right-of-way at the following locations: (1) between Neighborhoods R-8 and R-9, and (2) at the proposed connection to EastLake Parkway (between the two Otay Water District Parcels. d. Submit an initial deposit of $15,000 to begin the process of fonnation of the open space district. All costs of formation and other costs associated with the processing of the open space relating to this project shall be borne by the developer. e. Provide all the necessary infonnation and materials (e.g., exhibits, diagrams, etc.) as determined by the City Engineer to prepare the engineer's report for the proposed open space district. 85. Include in the CC&Rs, if applicable, the obligation of the Homeowners' Association to maintain all the facilities and improvements within the open space lots rejected by the City prior to the approval of the final map containing said Jots. CCI022CN.DOC Printed: I 0/9/96 //--2) Attachment 2 - ViiI & I A Page 18 86. Grade a level, clear area at least three feet wide (face of wall to top of slope), along the length of any wall abutting an open space district lot, as measured from face-of-wall to beginning of slope, said area as approved by the City Engineer and the Director of Parks and Recreation. 87. Ensure that all buyers ofIots adjoining open space lots containing walls maintained by the open space district sign a statement, when purchasing their homes, stipulating that they are aware that the walls are on City property and that they shall not modify or supplement the wall or encroach onto City property. These restrictions shall also be incorporated in the CC&Rs for each lot. 88. Agree to not protest formation or inclusion in a maintenance district or zone for the maintenance of landscaped medians and scenic corridors along streets within and adjacent to the subject subdivision. 89-. Grant in fee to the City on the appropriate final map, all open space lots shown on the tentative map and execute and record a deed for each of the lots to be maintained by the City through the open space district. Provide on the final map a certificate, pursuant to section 66477.2(a) of the Subdivision Map Act, rejecting those open space lots to be maintained by the Homeowner's Association. 90. Provide documentation, prior to the approval of the first final ''B'' Map, to the Director of Planning and the City Engineer that an annexable Mello-Roos District, or other financing mechanism approved by the Sweetwater High School District and the Chula Vista Elementary School District has been established to provide for construction of schools. 91. Fund the revision of the Public Facilities Development Impact Fee (PFDIF) Program, which shall be prepared by the City, as directed by the City Manager or his designee, and approved by the City Council prior to approval of the first final "B" Map. The developer shall receive 1 00% credits towards future PFDIF fees for funding this update. Provide a deposit of $20,000 to begin this process. All cost of revising the PFDIF shall be borne by the developer. 92. Prior to issuance of any grading permit which includes Landscaping and Irrigation (L & I) improvements to be installed in an open space lot to be maintained by the open space district, the developer shall place a cash deposit with the City which will guarantee the maintenance of the L & I improvements, prior to City acceptance of said improvements, in the event the improvements are not maintained to City standards as determined by the City Engineer and the Director of Parks and Recreation. The amount of the deposit shall be equivalent to the estimated cost of maintaining the open space lots to City standards for a period of six months as determined by the City Engineer. Any unused portion of said deposit could be incorporated into the open space district's reserve at such time as the maintenance of the open space lot is assumed by the open space district. 'VATER 93. Provide to the City a letter from Otay Municipal Water District indicating that the assessmentslbonded indebtedness for all parcels dedicated or granted in fee to the City have been paid or that no assessments exist on the parcel(s). CCI022CN.DOC Printed: 10l9/96 !/~;L7 A11.aclunent 2 - Vii 1 & 1 A Page 19 94. Present verification to the City Engineer in the fonn of a letter from Otay Water District that the subdivision will be provided adequate water service and long tenn water storage facilities. EASEMENTS 95. Grant to the City a JO' wide easement for general utility purposes along public street frontage of all open space lots offered for dedication to the City unless otherwise approved by the City Engineer. 96. Indicate on the appropriate "B" Map a reservation of easements to the future Homeowners' Association for private stonn drain and private sewer facilities within open space lots as directed by the City Engineer. 97. Obtain, prior to approval of any final B" Map, ail off-site right-of-way necessary for the installation of the required improvements for that subdivision thereto. The developer shall also provide easements for ail on-site and off-site public drainage facilities, sewers, maintenance roads, and any other public facilities necessary to provide service to the subject subdivision. 98. Notify the City at least 60 days prior to consideration of the final map by City if off-site right- of-way cannot be obtained as required by the Conditions of approval. (Only off-site right-of-way or easements affected by Section 66462.5 of the Subdivision Map Act are covered by this condition.) After said notification, the developer shall: a. Pay the full cost of acquiring off-site right-of-way or easements required by the Conditions of Approval of the tentative map. b. Deposit with the City the estimated cost of acquiring said right-of-way or easements. Said estimate to be approved by the City Engineer. c. Have all easements and/or right-of-way documents and plats prepared and appraisals complete which are necessary to commence condemnation proceedings as detennined by the City Attorney. d. Request that the City use its powers of Eminent Domain to acquire right-of-way, easements or licenses needed for off-site improvements or work related to the final map. The developers shall pay all costs, both direct and indirect ina.med in said acquisition. The requirements of a, b, and c above shall be accomplished prior to the approval of the appropriate Final Map. 99. Grant easements to subsequent owners pursuant to Section 18.20.150 of the City Code on any final map that proposes private utilities or drainage facilities crossing property lines as directed by the City Engineer. CCI022CN.DOC Printed: 1019/96 )/--;L7 Anacluncnt 2 - ViII & I A Page 20 100. Grant to City on the appropriate final "B" Map two foot access easements along the rear and side property line of lots adjoining walls to be maintained by the open space district. The locations of these easements shall be as required by the Director of Parks and Recreation and the City Engineer to provide adequate access for maintenance of said walls. AGREE:MENTSIFINANCl.t\L 101. Enter into a supplemental agreement with the City, prior to approval of each final "B" Map, where the developer agrees to the following: a. That the City may withhold building permits for the subject subdivision if anyone of the following occur: 1. Regional development threshold limits set by the adopted East Chula Vista Transportation Phasing Plan have been reached. 2. Traffic volumes, levels of service, public utilities and/or services exceed the threshold standards in the then effective Growth Management Ordinance. 3. The applicant does not comply with the terms of the Reserve Fund Program. b. That the City may withhold building permits for any of the phases of development identified in the Public Facilities Financing Plan (pFFP) for Otay Ranch SPA One if the required facilities, as identified in the PFFP or as amended by the Annual Monitoring Program, have not been completed. c. Defend, indemnify and hold harmless the City and its agents, officers and employees, from any claim, action or proceeding against the City, or its agents, officers or employees to attack, set aside, void or annul any approval by the City, including. approval by its Planning Commission, City Councilor any approval by its agents, officers, or employees with regard to this subdivision provided the City promptly notifies the subdivider of any claim, action or proceeding and on the further condition that the City fully cooperates in the defense. d. Hold the City harmIess from any liability for erosion, siltation or increased flow of drainage resulting from this project. e. Ensure that all franchised cable television companies ("Cable Company") are permitted equal opportunity to place conduit and provide cable television service to each lot on public streets within the subdivision. Restrict access to the conduit to only those franchised cable television companies who are, and remain in compliance with, all of the terms and conditions of the franchise and which are in further compliance with all other rules, regulations, ordinances and procedures regulating and affecting the operation of cable television companies as same may have been, or may from time to time be issued by the City ofChuIa VISta. CC1022CKDOC Printed: 10/9/96 /1 ~_j [; Attachment 2 - ViiI & IA Page 21 f Include in the Articles of Incorporation or Charter for the Homeowners' Association (BOA) provisions prohibiting the BOA from dedicating or conveying for public streets, land used for private streets without approval of 100% ofall the BOA members. 102. Enter into an supplemental agreement with the City prior to approval of the first final "B" Map, where the developer agrees to the follov.~ng: a. Participate, on a fair share basis, in any deficiency plan or financial program adopted by SANDAG to comply with the Congestion Management Program (CMP). b. To not protest the formation of any future regional impact fee program or facilities benefit district to finance the construction of correctional facilities. 103. Prior to approval of the first final "A" Map, the applicant shall grant in fee three (3) acres of buildable land acceptable to the City of Chula Vista within Village One of SPA One of the Otay Ranch in order to satisfy the affordable housing implementation measure contained in the approved Otay Ranch GDP (ref GDP; Section B.2, Pg. 242) and the terms of an existing agreement adopted by Resolution #17737. In addition, said existing agreement, dated December 1, 1994, shall be amended to pennit the land dedication within Village One. 104. Prior to approval of the first "A" Map, or as otherwise detennined by the Director of Planning, within SPA One and consistent with the City's Housing Element, Ranch-Wide and SPA One Affordable Housing Plans, the applicant shall enter into and execute with the City an Affordable Housing Agreement ("SPA One Affordable Housing Agreement") containing, but not limited to, the following provisions: (a.) The obligation to provide the total number of low and moderate income units required under the City's Affordable Housing Program, based on the number of dwelling units contained within the Master Tentative Map for. SPA One; (b.) Identify the overall number of dwelling units within the Master Tentative Map for which the applicant can receive final map approval prior to the applicant selecting and guaranteeing, to the City's satisfaction, final affordable housing site(s); (c.) The number of dwelling units within the master tentative map area which can receive building pennit authorizations prior to the applicant obtaining building pennits for a specified number of the required low income units; and (d.) A description of what information must be provided in subsequent Project Level Affordable Housing Agreements. Upon its approval by the City, the terms and conditions of the SPA One Affordable Housing Agreement shall become conditions of this resolution, and is hereby incorporated herein by this reference. 105. The Applicant shall pay, prior to approval of the first "B" Map, their proportional share, as detennined by the Director of Parks and Recreation, of a collaborative study analyzing local park needs for the area east of the 1-805 Freeway. 106. The Applicant shall enter into an agreement with the City, prior to approval of each final "B" Map, where the applicant agrees to ensure that all insurance companies are pennitted equal opportunity to go out to bid to provide a Cooperative Homeowner's Insurance Program (CHIP). CCI022CN.DOC Printed: 1 0/9/96 J/-~3 / Attachment 2 - ViI 1 & 1 A Page 22 107. LEFT BLANK INTENTIONALLY 108. Prior to the approval of the first final "B" Map, the developer shall submit and obtain approval by the City of an "Improvement Phasing Schedule" which will identify the timing of construction of all backbone facilities noted in the following table. The Implementation Phasing Schedule shall be consistent with the PFFP. ITEM TO BE INCLUDED IN PHASING FACILITY SCHEDULE * Acquisition/Dedication of off site right of way East Palomar Street between Paseo Ranchero * Construction of full street improvements and La Media Rd. and between La Media Rd. and East Orange Ave. * Acquisition/Dedication of the off site portions Paseos in Villages One and Five including the of open space lots containing the paseos paseo between Neighborhoods R-8 and R-9 *Construction of full paseo improvements *Payment of Telegraph Canyon Basin Drainage For areas covered by: backbone streets and all DIF common areas which include, but are not limited to: parks, schools, paseos and open space lots * Construction of pedestrian bridges Pedestrian bridge connecting Village One to Village Five, Village One to Village Two and Villa.ge Five to Villa.ge Six *Removal of temporary improvements "Temporary Roadway" (Santa Madera Avenue *Restoration of the area to original conditions between Telegraph Canyon Road and Morgan Hill Drive *Construction offull street improvements Permanent public road connecting Filmore St. to East Oran.ge Ave. . *Construction offull improvements Transit stop facilities in Villages One and Five * Acquisition/Dedication of off site drainage Poggi Canyon Channel (onsite and off site ) and easement detention basin *Construction and maintenance (prior to City acceptance) *Construction and maintenance (prior to City Telegraph Canyon Channel detention basin acceptance) * Acquisition/Dedication of offsite sewer Poggi Canyon Sewer Interceptor (onsite and easement off site ) * Upgrading of the existing Poggi Canyon Interceptor required to accommodate C. V. T. 96-04 flows *Construction of the improvements required to connect C. V. T 96-04 to the existing Poggi Canyon sewer improvements (near 1-805) *Installation of interconnect wiring Traffic signals along Telegraph Canyon Rd. at CCI022CN.DOC Printed: 10/9/96 11- ~? ') ,.;r-- Anaclunent 2 - Viii & 1 A Page 23 the intersections with St. Claire Dr., Otay Lakes Rd. and Paseo Ranchero *Construction of full landscaping and irrigation Open space lots improvements * Construction of full trail improvements Re.gional trail system Security satisfactory to the City shall be provided for the above backbone facilities when their construction is triggered as identified in the approved Improvement Phasing Schedule. In addition to the foregoing, security satisfactory to the City shall be provided to guarantee the construction of the following First Phase Backbone Facilities: 1.) One-half of the improvements in East Palomar Street between Paseo Ranchero and La Media including the two full traffic circles in Village One prior to approval of the first "B" Map for Village One. 2.) The remaining improvements in East Palomar Street within Village One at the time the trigger point is reached in the PFFP for the corresponding "B" Map. 3.) Full improvements in East Palomar Street between La Media and East Orange Avenue in Village Five at the time the trigger point is reached in the PFFP for the corresponding "B" Map. 4.) Fair share of full improvements for the pedestrian bridge connecting Village One to Village Five and fair share of one half of the improvements for the pedestrian bridges connecting Village One to Village Two and Village Five to Village Six, prior to the approval of the first final "B" Map. . The amount of the security for the above noted improvements shall be 110% times a construction cost estimate approved by the City Engineer if improvement plans have been approved by the City, 150% times the approved cost estimate if improvement plans are being processed by the City or 200% times the construction cost estimate approved by the City Engineer if improvement plans have not been submitted for City review. SCHOOLS 109. Prior to the approval of the first final "B" Map, the applicant shall prepare and submit an application for an amendment to the Otay Ranch General Development Plan replacing the Village Seven High School location with a site in either the area west of Paseo Ranchero in Village One or the northern portion of Village Two The applicant shall enter into a supplemental agreement prior to approval of the first final map in which applicant agrees to the following: The City shall not issue building permits for more than 1,400 units within SPA One until the City has acted on the proposed plan amendment unless the District consents to the further issuance of such permits. The Applicant shall deliver to the School District a graded. high school site including utilities provided to the site and an all weather access road acceptable to the District prior to issuance of CCI022CN.DOC Printed: 10/9/96 )/-_J ;5 Attachment 2 - ViI I & IA Page 24 the 2,650th building permit (504 students) or upon written request by the District not prior to 1,800 permits. The all weather access road shall also be acceptable to the Fire Department. This schedule is subject to modification by the School District as based on District facility needs. 110. The Applicant shall deliver to the School District, a graded elementary school site including utilities provided to the site and an all weather access road acceptable to the District, located within Village One, prior to issuance of the SOOth residential building permit (150 students). The all weather access road shall also be acceptable to the Fire Department. This schedule is subject to modification by the School district as based on District facility needs. Ill. The Applicant shall deliver to the School District, a graded elementary school site including utilities provided to the site and an all weather access road acceptable to the District, located within Village Five, prior to issuance of the 2,500th residential building permit (750 students). The all weather access road shall also be acceptable to the Fire Department. This schedule is subject to modification by the School District as based on District facility needs. 112. The applicant shall deliver to the School District, a graded elementary school site including utilities provided to the site and an all weather access road acceptable to the District, located west of Paseo Ranchero, prior to issuance of the 4,500th residential building permit (1,350 students). The all weather access road shall also be acceptable to the Fire Department. This schedule is subject to modification by the School District as based on District facility needs. l\USCELLANEOUS 113. Include in the Declaration of Covenants, Conditions and Restrictions (CC&Rs) provisions assuring maintenance of all streets, driveways, drainage and sewage systems which are private. The City of Chula Vista shall be named as party to said Declaration authorizing the City to enforce the teImS and conditions of the Declaration in the same manner as any owner within the subdivision. The CC&R's shall also include language which states that any proposal by the HOA for dedication or conveyance for public purposes of land used for private streets will require prior written approval, in a fOIm approved by the City Attorney, of 100% of all the Homeowners' Association members. 114. Submit copies of Final Maps and improvement plans in a digital fOImat such as (DXF) graphic file prior to approval of each Final Map. Provide computer aided Design (CAD) copy of the Final Map based on accurate coordinate geometry calculations and submit the infoImation in accordance with the City Guidelines for Digital Submittal in duplicate on 5-1/4" HD or 3-1/2" disks prior to the approval of each Final Map. 115. Tie the boundary of the subdivision to the California System -Zone VI (1983). 116. Prior to approval of the first final map, the developer shall submit and obtain the approval of the City of a master final map ("A" Map) over the entire tentative map area showing "super block" lots corresponding to the units and phasing or combination of units and phasing thereof. Said "A" map shall also show the backbone street dedications and utility easements required to serve the "super block" lots. All "super" block lots created shall have access to a dedicated public street. Said "A" map shall not be considered the first map as indicated in other conditions of CCI022CN.DOC Printed: 1019/96 /1- 3 { Anaclunent 2 - ViI 1 & 1 A Page 2S approval unless said map contains single family lots or a subdivision of the multiple family lots shown on the tentative map. A lot line adjustment, if utilized in accordance with City standards and procedures, shall not be considered the first "A" Map. The subsequent development of a multiple family lot which does not require the filing of a "B" Map shall meet, prior to issuance of a building permit for that lot, all the applicable conditions of approval of the tentative map, as determined by the City Engineer. Construction of non-backbone streets adjacent to multiple family lots will not need to be bonded for with tne final "A" Map which created such lot. However, such improvements will be required to be constructed under the Municipal Code provisions requiring construction of street improvements under the design review and building permit issuance processes. In the event of a filing of a final map which requires oversizing (in accordance with the restrictions of state law and City ordinances) of the improvements necessary to serve other properties, said final map shall be required to install all necessary improvements to serve the project plus the necessary oversizing of facilities required to serve such other properties. If for any reason an "A" Map is not done, the developer shall, prior to the first final map ("B" Map), dedicate right of way for all backbone facilities related to but not limited to Conditions # 21, 23, 24, 28, 30, 32, 33, 35, 38, 53, 54, 84, 91, 102, 107, 108 and 119 and bond for those facilities in order to guarantee their construction. If any of these facilities are off site improvements, the developer shall comply with Conditions # 96 and 97 and may request that the City form a reimbursement district to reimburse such costs beyond its fair share. 117. Signage shall be provided at Bouquet Canyon Drive and the pedestrian paseo in Village Five and at Stanislaus Drive and the pedestrian paseo in Village One which alerts motorists to a pedestrian mid-block crossing. A signage plan indicating the location and content of said signs shall be reviewed and approved by the Planning Director prior to approval of the appropriate final "B" Map, as determined by the Planning Director and City Engineer. 118. The Applicant shall secure approval of a Master Precise Plan for the Village One and Village Five Core Areas, prior to submitting any development proposals for commercial, multi- family and Community Purpose Facility areas within the SPA One Village Cores. 119. Pursuant to the provisions of the Growth Management Ordinance (Section 19.09 of the CYMC) and the Otay Ranch General Development Plan (GDP), the Applicant shall complete the following: (1.) Fund the preparation of an annual report monitoring the development of the community of Otay Ranch. The annual monitoring report will analyze the supply of, and demand for, public facilities and services governed by the threshold standards. An annual review shall commence following the first fiscal year in which residential occupancy occurs and is to be completed during the second quarter of the followlng fiscal year. The annual report shall adhere to those guidelines noted on page 353, Section D of the GDP/SRP; and (2.) Prepare a five year development phasing forecast identifying targeted submittal dates for future discretionary applications (SPAs and tentative maps), projected construction dates, corresponding public CCI022CN.DOC Printed: 10/9/96 ~ ) / - ---?/~ Attachment 2 - ViiI & IA Page 26 facility needs per the adopted threshold standards, and identifying financing options for necessary facilities. 120. The owners of each Village shall be responsible for retaining a project manager to coordinate the processing of discretionary permit applications originating from the private sector and submitted to the City of Chula Vista. The project manager shall establish a formal submittal package required of each developer to ensure a high standard of design and to ensure consistency with standards and policies identified in the adopted SPA Plan. The project manager shall have a well rounded educational background and experience, including but not limited to land use planning and architecture. 121. The applicant shall submit copies of any proposed C. C. and R's for review and approval by the Director of Planning and the City Engineer prior to approval of each final "B" Map. 122. Fully accessible handicap access shall be provided at the ends of the following cul-de-sacs: Artesia Street, Glendora Court, Calistoga Avenue, Monte Sereno Avenue, Antioch Avenue, Coalinga Court, Westmoreland Street, Cordelia Street, Iowa Hill Court, Live Oak Street, Marion Court, Lodi Court, Larkspur Court, Santa Lucia Road, Parker Mountain Road, Sheep Ranch, Meeks Bay Drive, Harrills Mill Avenue and V o1cano Creek Road. Access via stairs shall be provided at the ends of the following cul-de-sacs: Stanislaus Drive, Amador Street, W oodsford Court, Lockeport Court, Clovis Court, Millbrae Court, Mayfield Court, Cache Creek Road, Jedediah Road, Kingsburg Avenue and Lassen Peak Street 123. The CPF-2 site located within Village One, shall be considered a floating designation and shall be located in Neighborhood R-15. Project design for this site will be submitted, reviewed and approved by the Director of Planning concurrently with the Precise Plan for this area. 124. If developer desires to do certain work on the property after approval of the tentative map but prior to recordation of the applicable final ''B'' Map, they may do so by obtaining the required approvals and permits from the City. The permits can be approved or denied by the City in accordance with the City's Municipal Code, regulations and policies. Said permits do not constitute a guarantee that subsequent submittals (i.e., final "B" Map and improvement plans) will be approved. All work performed by the developer prior to approval of the applicable "B" Map shall be at developer's own risk. Prior to permit issuance, the developer shall acknowledge in writing that subsequent submittals (i.e., final ''B'' Map and improvement plans) may require extensive changes, at developers cost, to work done under such early permit. The developer shall post a bond or other security acceptable to the City in an amount determined by the City to guarantee the rehabilitation of the land if the applicable final "B" Map does not record. PHASING 125. If the applicant modifies the SPA One approved phasing plan, the applicant shall submit to the City a revised phasing for review and approval prior to approval of the first final ''B'' Map. The PFFP shall be revised where necessary to reflect the revised phasing plan CCI022CN.DOC Printed: 10/9/96 /l~_] b Attachment 2 - Viii & I A Page 27 126. If phasing is proposed within an individual map or through multiple final maps, the developer shall submit and obtain approval for a development phasing plan by the City Engineer and Director of Planning prior to approval of any final map. Improvements, facilities and dedications to be provided with each phase or unit of development shall be as determined by the City Engineer and Director of Planning. The City reserves the right to require said improvements, facilities and/or dedications as necessary to provide adequate circulation and to meet the requirements of police and fire departments. The City Engineer and Planning Director may, at their discretion, modify the sequence of improvement construction should conditions change to warrant such a revision. 127. The Public Facilities Finance Plan or revisions hereto shall be adhered to for the SPA and tentative map with improvements installed in accordance with said plan or as required to meet threshold standards adopted by the City of Chula Vista. The PFFP identifies a facility phasing plan based upon a set of assumptions concerning the location and rate of development within and outside of the project area. Throughout the build-out of SPA One, actual development may differ from the assumptions contained in the PFFP (i.e., the development ofEastLake III). Neither the PFFP nor any other SPA One document grant the Applicant an entitlement to develop as assumed in the PFFP, or limit the SPA One's facility improvement requirements to those identified in the PFFP. Compliance with the City of Chula Vista threshold standards, based on actual development patterns and updated forecasts in reliance on changing entitlements and market conditions, shall govern SPA One development patterns and the facility improvement requirements to serve such development. In addition, the sequence in which improvements are constructed shall correspond to any future Eastern Chula Vista Transportation Phasing Plan or amendment to the Growth Management Program and Ordinance adopted by the City. The City Engineer may modify the sequence of improvement construction, in compliance with City ordinances, should conditions change to warrant such a revision. Concurrent with the approval of the first final map approved after the approval of the PFFP for the EastLake ill GDP Area, the applicant shall update, at the applicant's expense and subject to a Reimbursement Agreement, the SPA 1 PFFP and agrees that the City Engineer may change the timing of construction of public facilities including without limitation, the nature, siZing, extent and timing for the construction of public facilities caused by SPA One, shall become a condition for all subsequent SP A One entitlements, including tentative and final maps. CODE REQUIRKMENTS 128. Comply with all applicable sections of the Chula Vista Municipal Code. Preparation of the Final Map and all plans shall be in accordance with the provisions of the Subdivision Map Act and the City of Chula Vista Subdivision Ordinance and Subdivision Manual. 129. Underground all utilities within the subdivision in accordance with Municipal Code requirements. 130. Pay the following fees in accordance with the City Code and Council Policy: a. The Transportation and Public Facilities Development Impact Fees. b. Signal Participation Fees. CCI022CN.DOC Printed: 10/9/96 / ! -~] ') A1tachmcnt 2 -ViiI & lA Page 28 c. All applicable sewer fees, including but not limited to_sewer connection fees. d. Interim SR-125 impact fee e. Telegraph Canyon Sewer Basin DIP. f Poggi Canyon Sewer Basin DIP as may be adopted by the City in the future. g. Telegraph Canyon Basin Drainage DIP. h. Reimbursement District for Telegraph Canyon Road Phase 2 Undergrounding. Pay the amount of said fees in effect at the time of issuance of building permits. 13 1. Comply with all relevant Federal, State, and Local regulations, including the Clean Water Act. The developer shall be responsible for providing all required' testing and documentation to demonstrate said compliance as required by the City Engineer. 132. Ensure that prospective purchasers sign a "Notice of Special Taxes and Assessments" pursuant to Municipal Code Section 5.46.020 regarding projected taxes and assessments. Submit disclosure form for approval by the City Engineer prior to Final Map approval. 133. Comply with Council Policy No. 570-03 ifpump stations for sewer purposes are proposed. 134. Comply with Council Policy No. 522-02 regarding maintenance of natural channels within open spaces. 135. The applicant shall comply with all aspects of the City ofChula Vista Landscape Manual. 136. The Applicant shall comply with Chapter 19.09 of the Chula Vista Municipal Code (Growth Management) as may be amended from time to time by the City. Said chapter includes but is not limited to: threshold standards (19.09.04), public facilities finance plan implementation (19.09.090), and public facilities finance plan amendment procedures (19.09.100). The applicant acknowledges that the City is presently in the process of amending its Growth Management Ordinance to add a proposed Section 19.09.105, to establish provisions necessary to ensure compliance with adopted threshold standards (particularly traffic) prior to construction of State Route 125. Said provisions will require the demonstration, to the satisfaction of the City Engineer, of sufficient street system capacity to accommodate a proposed development as a prerequisite to final map approval for that development, and the applicant hereby agrees to comply with adopted amendments to the Growth Management Ordinance. 137. Upon submittal of building plans for small lot single family (5,000 square feet or less as defined in the City of Chula Vista Design Manual) residential development, plans shall clearly indicate that 750 square feet of private open space will be provided. CCI022CN.DOC Printed: 1019/96 11~3'~ Anaclunent 2 - Viii & I A Page 29 138. The applicant shall apply for and receive a take permit from the appropriate resource agencies or comply with an approved MSCP or other equivalent 10(a) permit applicable to the property. 139. All proposed development shall be consistent with the Otay Ranch SPA One Planned Community District Regulations. GATED AREAS The following conditions will be included in the final Resolution only if the City Council specifically approves the provision of gates in the Tentative Map. 140. Any gates proposed on the tentative tract map are not considered to be approved unless and until specifically approved by the City Council. 141. Parks located within gated areas shall not receive park credit. 142. Include all private streets in separate lots. Provide on the appropriate final "B" Map a certificate granting to the City a public utility easement over the entire private street lots. 143. Designate all streets within gated communities as private. Design of said streets shall meet the City standards for public streets unless otherwise approved by the City Engineer. Private street cross sections shall conform to those shown on the Tentative Map. 144. Provide at all private streets with controlled access, the following fe'!tures: a. Gates as approved by the City Engineer and the Planning Director. Gates shall be located to provide sufficient room on the private roadway to queue without interrupting traffic on public streets. b. A turn around at the location of the gate. The size and location of said turn around shall be approved by the City Engineer. c. A border between public street and private street delineated through the use of distinctive pavements. d. Provisions shall be made for emergency vehicle access as directed by the Police Chief and Fire Marshall, including but not limited to proposals for staffing, "opticon" or keypad system e. A dedicated parking space for the gate attendant. CCI022CN.DOC Printed: 10/9/96 ) / ---] / Anachment 2 - Viii & IA Page 30 145. Include the right-of-way for any private portion of the "Temporary Roadway" (Santa Madera Avenue between Telegraph Canyon Road and Morgan Hill Drive) in a separate lot. In the appropriate final "B" Map, grant said lot in fee to the City for open space and other public uses and include language in the City's Clerk Statement rejecting said lot and noting that Section 66477.2(a) of the Subdivision Map Act provides that an offer of dedication shall remain open and subject to future acceptance by the City. The City Clerk's Statement shall also indicate that the Council action rejecting the lot will be rescinded and the open space lot accepted at such time as a public road connecting Filmore Street in Village One to East Orange Avenue is opened for public use. 146. The gating of all subdivided areas approved for gates shall not impact the necessary interlinkage of public roads and pedestrian access as determined to be required by the Director of Planning and Director of Public works. 147. The gating of subdivided areas shall be prohibited when such gating limits or prohibits public vehicular access to any area not previously authorized to be gated. CCI022CN.DOC Printed: 10/9/96 J!'~ L/~- Attachment 2 - ViII & I A Page 31 #;; COUNCIL INFORMATIONAL MEMO DATE: October 10, 1996 TO: The Honorable Mayor and City Council Members VIA: John Goss, City Manager FROM: Gerald J. J Otay Ranch ecial Planning Projects Manager, RE: Village Development a. .a. Baldwin Builders Bankruptcy Hearings At the September 24, 1996 City Council meeting, Council directed staff to provide a report concerning the status of the bankruptcy action involving Otay Ranch Properties. The following is a response to the request: 1. Baldwin Builders Bankruptcy Baldwin Builders flled for Chapter 11 Reorganization in July 1995. Baldwin Builders owns approximately 2,000 acres within Otay Ranch (Village l1/Salt Creek area and Otay Mesa). This property is not located within the SPA One or fIrst Tentative Map area of Otay Ranch. Upon bankruptcy, Baldwin Builders was owned and managed by Jim and AI Baldwin. In May of 1996, the Bankruptcy Trustee took over management of Baldwin Builders. Since then, neither the Baldwin brothers nor Village Development have had any authority, responsibility or ability to make any decisions for Baldwin Builders projects or property. The Bankruptcy Trustee (David Gould) and court appointed Baldwin Builder Manager (Jim Johnson) have had management control and responsibility. On September 30, 1996, the Bankruptcy Court approved a request by Baldwin Builders (David Gould and Jim Johnson) to proceed with construction of homes within the St. Claire Project. a. Baldwin Buildere,IVillage Development - Inter Company Agreement For the past 23 years, The Baldwin Company has been broadly organized into two separate entities: Village Development and Baldwin Builders. Village Development (including afflliated organizations of The Otay Ranch, L.P. and Tiger Development Two, both owners of portions of Otay Ranch) has served as the entitlement arm of The Baldwin Company. That is, Village Development acquired, pla1llled and received entitlements for raw lands. Baldwin Builders served as the home building arm of The Baldwin Company, acquiring property from Village Development, building and selling homes. The relationship between Village Development and Baldwin Builders was memorialized in an Inter Company Agreement which ceinfo-13.doc ) /~ t/ J The Honorable Mayor and City Council October 10, 1996 Page 2 granted Baldwin Builders certain rights of first refusal to acquire Village Development property. Village Development was never included in the Baldwin Builders bankruptcy and, as such, is not in anyway under the jurisdiction of the Bankruptcy Court. As part of the Baldwin Builders bankruptcy, however, last February, the Bankruptcy Court approved an agreement between Baldwin Builders and Village Development clarifying the relationship between the two entities. The purpose of the agreement was to clarify the rights, liabilities and obligations of each entity. In exchange for a transfer of Village Development assets to Baldwin Builders, Baldwin Builders released and indemnified Village Development from all liabilities and actions. Subsequently, Baldwin Builders alleged that the provisions contained in the Inter Company Agreement granting Baldwin Builders the right to acquire property from Village Development were unaffected by the February court approved release. Village Development argued that the February court approved release voided the Inter Company Agreement. The dispute caused Baldwin Builders to seek a relief from the Bankruptcy Court prohibiting Village Development from selling Village Development properties to a third party. The court denied this request, issuing instead a Temporary Restraining Order and Preliminary Injunction that simply affirmed the existence of the Inter Company Agreement and set the matter for a full hearing in March 1997. Until and unless the order is modified at the later hearing, the Bankruptcy Court ruled that: (1) Baldwin Builders has a first right of refusal to purchase Village Development land, but only in accordance with the following terms: Village Development must notify Baldwin Builders of any third party agreements to purchase Village Development land and, within 10 days of the notification, Baldwin Builders must respond to the notification and either elect not to purchase the property or to purchase the property on the same terms offered by the third party purchaser; and (2) Baldwin Builders has an option to purchase Village Development land at a fair market value even if Village Development has not received an offer to purchase from a third party, but the option must be exercised on an all cash basis. 2. Tiger Development Two Bankruptcy Tiger Development Two is a limited partnership affiliated with Village Development and owned by Jim and AI Baldwin. West Coast Land Fund held a promissory note from Tiger Development Two securing approximately 1,061 acres ccinfo-13.doc Jj/1L The Honorable Mayor and City Council October 10, 1996 Page 3 of land within Otay Ranch. In February 1996, Tiger Development Two was placed in involuntary bankruptcy. The bankruptcy action stayed any West Coast Land Fund foreclosure of the property. In July 1996, the Bankruptcy Court ruled that West Coast Land Fund could proceed with the foreclosure action and, in August 1996, West Coast Land Fund did foreclose on the property and took title to the land. Last month, Tiger Development Two filed a notice with the Bankruptcy Court seeking dismissal of the bankruptcy action since Tiger Development Two's only asset, the 1,061 acres of Otay Ranch property, had been foreclosed upon. A hearing on the motion is set for October 21, 1996. 3. Bank of America Notice of Foreclosure On September 16, 1996, Bank of America and The Otay Ranch, L.P. successfully restructured the debt owed to Bank of America and executed a "forbearance agreement" which avoided a foreclosure sale. The Otay Ranch, L.P. is an affiliate of Village Development and is owned and managed by Jim and AI Baldwin. The Otay Ranch, L.P. owns most of SPA One. The forbearance agreement contains certain conditions with which the borrower (The Otay Ranch, L.P., et. al.) must comply or the foreclosure process could proceed. Bank of America would not disclose the content of those conditions. My understanding of the agreement is that The Otay Ranch, L.P. is obligated to make periodic payments. On September 23, 1996, the City was once again notified that Bank of America would be conducting a foreclosure sale on October 9, 1996. Representatives of The Otay Ranch, L.P. indicated this notice is procedurally necessary in order for Bank of America to avoid jeopardizing any of its rights, but that all conditions of the forbearance agreement have been met and no foreclosure sale will take place on October 9, 1996. 4. Financial Status of Village Development (as of October 10, 1996) At this point in time, Village Development is one month delinquent. On September 25, 1996 $35,997.42 was due and payable. Village Development representatives anticipates the September payment will be paid on or before October 15, 1996. ccinfo-13.rloc J /- is ~. RESOLUTION NO. I %;.J,/? 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 raise its Maximum Permitted Rates for the Basic Service Tier, which is subject to City regulation; and 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. of Cox's methodology in spreading its upgrade costs called into question both the Basic and CPS share of the upgrade; and 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 /c2 -)tJ 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 ~ v J)}l ~ ~ fJr~~ r-- ~ Moore, ?cting c~ Attorney Gerald Young, Principal Management Assist C:\rs\cable.inc 2 /;2 -'IJ ~ K.Jj-C!'(-1~ J...."'tO I.~."'" I~-.r--- "'-....~ PUBLIC KNOWLEDGEe ATTACHMENT #1 3510 SUNRIDGE DR. S. SALEM. OR 97302 (503) 581-0878 PAX (503) 581-2026 28~ N.R. STAN'roN POll1UND, OR 9'n12 (503) 1H7-7Z73 PAX (SO" 287-7~23 AquBt 27. 1996 Mr. Gcnld Young City of(hda Vista 276 Pourth Avenue CImla Vista. CA. 91910 Mr. Bob Hain City of Imperial Beach 825 Imperial Beac:h Blvd. Imperial Beach. CA 91932 Ms. Leslie Dcac and Mr. Park Moma City ofNaticmal City 1243 National City Blvd. Nationa1 City, CA919S0 DearMr. Young. Mr. Ham, Ms. Deese md Mr. Morria: I have nMewed the F~cral ConnnllnicaU0n5 Commission (FCC) Fonn 1140, (dated June 24, 1996) and Form 1235 (correctecJ FonD dated May 1. 1996) submitted to the Cities of Chula VISta, Imperia1Beaeh. UlClNational City (ianchising authorities) by Cox ~micatiODS (Cox). The purpose oftbe Porm 1240 is to set ...,nmllm permitted rGa for buic ICI'Yice and cable proaatll.1N1\S .-vic:a (CPS) for a projected period (m this case, the period between October 1,1996 aDd Septembcr30, 1997). The purpollC ofthc Form 1235 is to adjust rateI for cable oetwork upgrades - Cox Meb to apply the Form 123510 add an "upgrade" inclemeDt to the maximnn permitted rates determiDecl on ita Form 1240. The Cox fi1inp were identical for these three franchising authorities. The fi'1l1'r.hiaing authorities directly rcpJato buic service rat.; the FCC regt1late- CPS rates, but UDder certain conditiODJ ftanddsina authori1ica may triger an FCC ~cw of the CPS rate by fiJ.iq a proper complaint. 1 ~ the Cox Form 1240 for compliance with the pce JUl. chet:bld the ~lJ1tiODl, and uses_ the reuoaablta88I of ~ key data. Under the PCC roles Cox may adjust its ftI-mnmu pcrmittecl rata to account tor inflation, cbaqeI in cxterDI1 00'" (fix' aunple, program acquiIitinn COllI). ud dwmeI additiODl or deletioII5. 1 fouDd no matcriaJ problema in tho Form 1240. UDder the Fonn 1240 I)'Item, the 6mcbiq authorities wID have an oppartuDity . ywr jiom now to compare actual 00" I I CONSUL'17NG AND lNl'O/lMATICJIV SlIRVIC:.:m' FOR ruBlJC IrtANItGZMENT J!XCJ!LlF.NCF. t . .' - . . .. ,.. . ~... . . / J -- )1-.-1 Ie- .. Fl.6-27-1996 14=49 PI.lJ:Lll; ~ ~l~ .L~rr~ r.~ .. to certain COltS that Cox projc:ctod in this filiDg and to make adjustmema accordiDaly in the prospective maximum ,..mued buic teMce l8tel for the sublcqucmt period. Wbile 1 found the miximl11ll permitted basic IllVicc rate of$9.74 detaminod on the Form 1240 acceptable, 1 ctiHgroe with the iDcremeata that Cox seeks to add to this rate and to the CPS rate based 011 the Form 1235 filiog for cable notWOJ'k upsndea. Cox reportI that it upgraded its cable system lIMns theM &antft~ authorities: previOUlly tho syateID had 450 MHz capldty. and ROW Cox nportl750 MHz, with SSO MHz 8Ctivated. 11ua there wu a reported increue of 100 MHz in activated capacity. I do DOt believe that Cox properly lUoc;ated the QOItI oftbe upgrade ill cIetermiDina rate acIjustmenta tbr nguJated ..mccs OIl the Form IDS. ReauJJted terViCCl iDdude the baic .mce tier. which is dircc;t1y regulated by the i1Dchieing authorities. aDd the cable propmmins aeMces tier (CPS), which is replatcd by the FCC. buonS that the Cox aUocations were DOt proper iDclude the ft111owin8: . The FCC mica dearly provide that IUbscriben .hould DOt pay for plant dUIt is not uaed and UJdb1 (see. for instaDce, Second kcport and Order. Ysnt Order OIl Reconsideration, and Further Notice of Proposed RulemaIdn& FCC 95-S02, released Jamwy 26, 1996.136). 111 this ~ 66.67 peroent of the upgrade (200 MHz of the 300 MHz upgrade) knot c:urrently used aDd uadW. Yet Cox C'Xdudecl only 20 percent oCtile upgrade cost u not uMd and UHfW. The Cox ntionale is that an upgrade to only SSO MHz would aI1eJecUy have cost about 80 perQCftt u much (Cox estimate) as the actual upgrade to 7S0 MHz. Thus Cox haa applied morglnaJ cost concepts to a aUocation (the c;onteDtion that the rnargiDal COlt oftbe Jut 200 MHz of capacity addition i,l... than the COSt oftbe first 100 MHz aftbe upgrade). HO'MNeI', the FCC rules .pedSca11:y require afiJly dlstribJIlfUI cost aDocation lMtbodology (see Report and Order and FurtherNoti~ ofPropoecd llulemaking, FCC 94-39, nieuod March 30, 1994~ 1 226 fE). Undertbil approach, each UDit of added capacity should be treated as ifit costa the same as the other units of added ~ OM-third of the ooat abould be allocated to the &nt 100 MHz (which is uaed and usdW). and two- thirds of the colt to the lut 200 MHz (which il DOt uled ancI useful). UaJeu the fbIIy distnDuted aUooat1on approach is applied, the rates paid by sublOrt"bcn to Rgl,I.qd aavices inc;luded in the 100 MHz activated portion oftbe upgrade will include a disproportionately tarae sbare of colt compaml to those who ultimately uae IOI'Vices (likely to primarily be unregu1atecl) provided in the remaining 200 MHz once it is activated; tballs, there wiD be CfOIIlUblidics. . Once it had cxduded 20 perccat oCtile up.- coil tor the 200 MHz not currendy 1Ctivat.ed, Cox allocated the remaiDina cost baled on the total c:hannel count by HrYice tier (buio, CPS. and aU other) der the upgrade. Cox repoI1I74 activated ~1umftcls aftertbeuparade. irPu4ina 18 buio. 41 CPS, aDd 15 Kother." So. toreamp1e, about 24.3 pert:eDl (18 divided by 74) of tile residua! upgrade COlt that Cox reported. uaed IIDd usefW was 1ll00llted to the basic tier. Yet Cox did not Idd IDX buio ~HlvJ. in the upsrade - there wen 18 buic cbamao1a both Wore _ after. Upande coati may 2 . .".. '" '. /~/A-(1- Fl.G-27-1996 14150 fUEL I C IQOd EOOf' 1~("(~ P. EI4 be passed thrOUgh to IUb.mben only iflbc operator derDoa8tnItel that the capital investmOl1t aetuaDy beMfi18 IUbICrlben to reau1ated .mcea (Report 8nd Order aDd Purtber Notice orPropoAd ~1ri--8, FCC 94-39. released March 30t 1994, 1 287). In tbiI cue, there is DO demonJU8tecl benefit to baic ..-vioo IUblClibers Iince the channel allocation for the baaie tier wu not cbanpcI by the uppde. n.cnf'oro. DOne of the upgrade COIllbould be anoc.tM to basic. Further, the allocation between CPS aod other set'\lieel sboukl be baled oo1he c:Iwmel additiODl directly uaociated with the upgrade, DOt tho. on tbe l)'Ilem cmn1l (Cox IIready I8CCMn throuah itJ beochmark rates far the cbanDela availIble before tho upgrade). . Cox did not indicate IDX projceted rneaue for the amMtecl eapacity iavolwd in the upgrade. The form iDltnactioas ca11 for the apcntor 10 report projeQocI adwrtiIiD& commiuiDn, aud leased accea revemes. IIDDDI others. Cox's cIwlIlel ~up iDcIioatea that two of tile IddecI ~ are home shopping, aad OM is 1eued access; othera undoubtedlY carry advertisiDs in8ertions for which Cox will be~. If' report~ projected revenue would be aa ofiset to upgrado costIlhOWD on the Porm 123 S. The Cox projection of DO added revenue is limply implausible based on the indicated dlannel MlditioPS. . On previous FCC Form 12101 Cox baa reported dwmeI additions OIl the CPS tier and increased its maxiDJm permitted rates for the CPS tier under the FCC's "RJ)S" method for treating addccJ chanDels. Cox bacl used its tUn S 1.20 -cap" (plus programming COltS) tor the added channels before filing this Form 123S. All but one of the channels that Cox added UDder the "c;aps" method ~ made available by the additional 100 MHz that Cox ICti'wted in the upgrade fiom 450 MHz to SSO MHz (one channel was added before the upgrade). By now claiming the upgrade ClOst that in part re1Ues to the as ~ usociated with the "cap" me additions Cox would be recovering twice for the lidded ers aip8dty, once in the "cap" addition aDd apin in the upgrade coat aDocated to the CPS tier. nus result could not have reuonabIy been the FCC", intent. and Ihould be clarified by III FCC review otthis concern. As a conJeqUel'lC8 of these QOIICCllI, I reoommcnd the following ldions for the ftanchiaiDg authorities. . Approve a $9.74 mp;rmnn permitted rateforbuic service <_dueling franchise fees). but deny Cox any addition to tbiJ maximum permitted basic service rate hued OIl the Form 123S. . Submit a Form 329 GOmplaint to the PCC reprcJinS the CPS tier. 11Iis cornp1alnt must C)01DO a hncbi..IIUthority, but requiRs that at least twO 1a1b8criber1 have complained to the fnncbiIina authority within certain time hm- after the operator has chanpd. as rata (_ attachJnrIIl); Cox reported I CPS rate iDcreue in May. 1996. Tbc PCC IhouId thin resolve the proper allocation ofupp1lde coJtl to the CPS tier. 3 : .------ '.- ..- ..---- ),}---/l/3 R..C-27-1 ~ lqi ~ r~A\.o N"Il---"'--....""\.A- Pleue contaCt Ole at S03-281-7273 if you have uy questions. SiDcerely. rAC.~ Jay C. Smith President. Public ICnowIedae. Inc. 4 TDTA.. P.05 J;l-A~J ATTACHMENT #2 ~~ March 22, 1996 5' 59 Federal Boulevard San Diego, California 92105,5485 1619\ 263-9251 Mr Jim Thomwn Assistant City Manager City of Chula 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 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 impacted 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 $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 surrounding 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, ons ce and Administration Enclosure: FCC Form 1235, Customer Notice // -1- );;} A>:-) March 22, 1996 Cox Communications 5159 Federal Boulevard San Diego, California 92105.5486 (61912flljlZ51 Non-Upgraaea customers 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 you! Sincerely, William K. Geppert Vice PresidenUGeneral 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 fX 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** · Available in a package for an additional charge of $3,15 per month plus equipment ** Pay-Per-View Service -.;2- !~ - t~ I /f,~ t; March 22, 1996 5159 Federal Boulevard San Diego. California 92105.5486 (619i 263.9251 Mr. Jim Thomson Assistant City Manager City of Chula Vista 276 Fourth Avenue Chula Vista, CA 9]910 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 impacted 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 $2.55. This rate change is due to the recovery of qur 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 surrounding cities. Enclosed please find 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. William J. FitzSl m ns Director of Finan Enclosure: FCC Form 1235, Customer Notice -3- jd. PI': March 22, 1996 Cox Communications 5159 Federal Boulevard San Diego, California 92105.5486 Upgraded t~~?6rners 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 -if - I ~ J\ .\ ,.... '-. Federal Communications Commission Washington, D.C. 20554 Approved by OMB 3060-0688 Abbreviated Cost of Service Filing For Cable Network Upgrades Community Unit or System Operating Name I~ommunity Unit 10 - CUID(s) IDate 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 .X. to the left or the appropriate answer.): X C.Corp Subchapter 5 Partnership Sole Proprietor Other Person to contact regarding this form: William Fitzsimmons Telephone I~ax Number (619) 266-5410 (619) 266-5540 Local Franchising Authority City ofChula Vista Mailing Address 276 Fourth AHnue City I~tate lZiP Code Chula Vista California 919]0 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 lor8 t" tA, rcc Form 1~35 Fe bruary 1996 Federal Communications Commission Washington, D.C. 20554 Approved by OMB 3060-0688 Abbreviated Cost of Service Filing For Cable Network Upgrades Part 1. Qualification for Upgrade Rate Adjustment A. Significance 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 used): 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 Santee Chula Vista National City Nov-95 Feb-96 May-96 May-96 -&,- Page 2 01'1\ l~- p. I -. FCC Form 123~ February 1996 .:. Federal Communications Commission Washington, DC. 20554 Approved by OMB 3060-0688 Abbreviated Cost of Service Filling For Cable Network Upgrades Part II. Upgrade Revenue Requirement Computation 1- 2. 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) d. Interest expense related to upgrade (Worksheet A. Line ge) e. Distributions (Non-C Corp. Filers Only) f. Contributions (Non-C Corp. Filers Onlyl 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) 3_ 4_ 5.. 6 (a) (b) (e) BST CPSTs 6~'.}~ .2~~; ~'il.... ."": ~. 35.00% 9.30% ':{" - .~[ '. 597,601 248,336 1,361,201 565,655 ~~~:; ~;;!;,J.J-;- .~~:::-;.,' ~~c~ ~~_~ .~:'- ~ 349,264 795,546 .&S..s~-r~:.- :~t~,. ~~~ .- - --.-.,. 1<".' r_::~.: 257.371 586,233 --z.:'" -- ,-- ....--- - --.......--.. -- ... 459.9i3 1.047,717 ....-'n. '.or.::~,..~rJ.; . . .-....:. 1.- .....~ ~. T_ i "-.~~---'...'.--._,' '., ~~~..-,--~-~., - f~j\~' o 1.314.945 o 2.995.152 ~,,' ":.";~'..,.; ~~~i--"?~:'.~:-:i.. ~1A-~~~-::~~--.-.: ~.~t"~,~~" Part Ill. Allocation of Upgrade Revenue ReqUirement to Basic and Cable Programming Service Tiers 1. Upgrade Revenue Requirements' (Part II. Line 6) 2. Number of Subscribers 3. Annual Revenue ReqUirement Per Sub (Line 1/ Line 2) 4. Monthly Network Upgrade Add-on (Line 3 I 12) 5. Selected method of subscriber recovery: (Check One) (a) lb) (c) BST CPST.1 CPST . 2 Total 1.314.945 2.995.152 4.310.0Q6 63.229 61.920 207965 48.3i13 6916 i9 1.7330 4.0309 5.7640 . Provide description for allocation of CPST Revenue Requirement to CPS Tiers: CERTIFICATION STATEMENT WILlfUL FALSE STATEMENTS MAKE ON THIS FORM ARE PUNISHABLE BY FINE ANDIOR IMPRISONMENT (U.S. CODE TITLE 18. SECTION 1001 l. A'I\ID/OR FORFEITURE (US CODE. TITLE 47. SECTION 503). I cenify 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;' Ii Telephone Num Willillm Fitzsimmons, Director of Finance & Administration Date: 3/15/96 - '7 '-' 11..- {r\ ' t- /~. / / ' FCC Form 1235 F~bruar:- 1996 Pag~ 3 of S Federal Communications Commission Washington, 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 (b) Line Number and Description (a) 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 71 0 6. Change in Plant Related Support Expenses 0 0 7. Upgrade Related Depreciation Expense 2,275 . 455 B. PROJECTED NET IMPACT OF UPGRADE ON OPERATING EXPENSES (Sum Lines 5 - 7) 2.346 0 0 0 455 9. INTEREST EXPENSE RELATED TO UPGRADE 1,276 255 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- Pag~ 4 of 8 1"-- p, !, FCC Form 1235 Fe bruary 1996 '-. 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 (s): CA0329 Worksheet A Cost Assignments end Allocations (part 2) Date of Filing: 3/1 5/96 ($ OOO's) Allocated Cost Elements Allocation (c) Key Line Number and Description eST 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 1 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 1 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 1 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 of 8 lA-r\'\~' FCC Fom) 1235 FebruaT) 1996 Federal Communications Commission Washington. D.C. 20554 Approved by OMB 3060-0688 Abbr~viated Cost of Service Filing for Cable Network Upgrades Name of Operator: Cox Communications San Diego CUID (s): CA0329 Worksheet A Cost Assignments and Allocations Date of Filing: 3/15/96 ($ 000'8) Total Cost Elements (e) Line Number and Description eST 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) 5,3]2 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 ],008 0 824 8. PROJECTED NET IMPACT OF UPGRADE ON OPERATING EXPENSES (Sum Lines 5 - 71 460 ],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 l~- h/ FCC Form 1235 February 1996 Federal Communications Commission Washington, D.C. 20554 Approved by OMS 3060-0688 Abbreviated Cost of Service Filing for Cable Network Upgrades Worksheet B: Allocation Key Name of Operator: Cox Communications San Diego Page I of I Franchise CUID: CA0329 Organizational Level: Date of Filing: 3/15/96 Allocation Allocation Methodology Description Key (a) (b) 1 Channels Post-Rebuild Channels Percentages Basic 18 24.32% CPS 41 55.41% NCPS-alacarte 4 5.41% - NCPS-Premium 11 14.86% 74 100.00% I , I -11-- Page 70r8 )~ /' I~ M' \> I FCC Form 1235 February 1996 Federal Communications Commission Washington. D.C. 20554 Approved by OMS 3060-0688 Abbreviated Cost of Service Filing For Cable Network Upgrades Worksheet C: Supplemental Data Name of Operator: Cox Communications San Diego Page: of Franchise CUID: CA0329 I Date of Filing: I 3/15/96 Org Level: I 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 reported 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) B. 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 "" ) -;;L - Page 8 of 8 J;;<- {\,\lP FCC Form 1235 February 1996 /' Assumptions i I I I I I I i I , I Assumptions used in Worksheet A i I , I I I i I I I , I I I I Column (a) - Total Assigned Costs I I I i I I I Line 2 - Allowance for Funds Used Under Construction I IAssumes that total rebuild costs of$26,075,512 is spent evenly over a 10 month period (June 95 through April 96). i I IActual Calculation: i I I i I I IS26,075,512 x 11.25% /12 months x 5 months = SI,222,000. I I I I I I I Line 5 - Plant related Operating Expenses 1 I iEstimated annual net increase in power costs of $71,148.1 I I I I I I I : Line 7 - Upgrade related depreciation expenses. I : I I ! iAIl upgrade costs are depreciated on a 12 year straight-line basis. i I i I i I f ! I I I : : Line 9 - Interest Expense : ! I ;Assumes a capital structure of 55% debt a 8.5% cost if debt. This is consistent with the FCC's assumption in determining the allowed 11.25% rate ofretum on rate base. I I ; I Column (b) - Directly Assigned Costs Elements . ! Other i ; Although the rebuild will increase plant capacity from 450mhz to 750 MHz, only 550 MHz will be activated immediately, the additional 200 MHz capacity I 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 i category . : .//3- )~ 0' (I Page: May 1,1996 Mr. Jim Thomson Assistant City Manager City ofChula Vista 276 Fourth Avenue Chula Vista, CA 91910 Re: FCC Form 1235 - Correction Dear Mr. Thomson: 5159 Federal Boulevard San Diego, California 921055485 16191263-9251 cox COMMUNICATIONS Enclosed please find a correction to page 3 of8 for the recently filed FCC Form 1235, The change is to Part 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, (tI~ff<3-tr4'J~/;r~ William J. Fitzsimmons Director of Finance -/ LJ- I /) ~\ 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 , . Net Upgrade Rate Base (Worksheet A. Line 4e) 2. Return on Investment e. Rate of Return Percentage b. Computed Return on Upgrade Rate Base (Line 1 x Line 2e) 3. Allowance for Income Taxes e. 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 n. Income Tax Allowance 4. Projected Net Impact of Upgrade on Operating Expenses (Worksheet A. Line 8e) 5. Net Revenue and Income Adjustments Related to Upgrade (Worksheet A, Line 12e) 6. Total Upgrade Revenue Requirement (Line 2 + 3 + 4 + 5) (8) (b) (e) eST CPSTs eST CPSTs 459.973 1,047,717 o 1,314,945 o 2,995,152 ~~., ""1O~. t ----' ~>:._....:..../~~~~;. Part III. Allocation of Upgrade Revenue Requirement to Basic and Cable Programming Service Tiers ,. Upgrade Revenue Requirements. (Part II, Line 6) 2. Number of Subscribers 3. Annual Revenue Requirement Per Sub (Line 1/ Line 2) 4_ Monthly Network Upgrade Add.on (Line 3 / 12) 5. Selected method of subscriber recovery: (e) (b) (c) BST CPST - 1 CPST - 2 Total 1,314,945 2,995,152 4,310,096 63,229 61,920 20.7965 48.3713 69.1679 1.7330 4.0309 57640 x x . 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 18. 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 William Fitzsimmons. Director of Finance & Administration Date: 3/15/96 c ~~~- -/5'- Page 3 of8 \S1 . , FCC Form 1235 Februar) 1996 '\/ ):; -.~ ~~~ ~~ ~~~~ ---- 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. ~eIY' Jim ThT!-- Deputy City Manager JT:dt -/~~ MIHOMEIADMIN\J1\FORM 1235 COX 276 FOURTH AVENUE. CHULA VISTA. CALIFORNIA 91910 . (619) 691-5031 . FAX (619) 585-5612 .>:~ PQQ~~p~ I :J - f~ -)1 ATTACHMENT #3 JUL 8 t~.......,.., 1:J:~r) July 2, 1996 5159 Federal Boulevard San Diego. California 92105-5486 1619) 263-9251 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 1, 1996, Cox will increase the maximum permitted (MPR) rate on the Cable Programming Services (CPS) tier from $21.17 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 adjust our equipment rates charged to our customers to the new MPR, effective October 1, 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 '-/7- , t, \ 1:;- {\ · COX COMMUNICATIONS CHANGE IN REGULATED RATES FCC FORM 1240 (AND ASSOCIATED FCC FORM 1210 AND 1235) BASIC CPS Form 1210-Upgraded (Filed 11/15/95) $ 7.74 $ 17.14 Form 1235 (Filed 3/22/96) 1.73 4.03 Current MPR as of 4/22/96 9.47 21.17 Form 1240 (Filed 7/3/96) 9.74 17.18 Fonn 1235 (Filed 3/22/96) 1.73 4.03 New MPR as of 10/1/96 11.47 21.21 Change in MPR 2.00 0.04 - IS- TOTAL $ 24.88 5.76 30.64 26.92 5.76 32.68 2.04 );;- f\> Federal Communications Commission Washington, D.C. 20554 FORM 1205 DETERMINING REGULATED EQUIPMENT AND INSTALLATION COSTS "EQUIPMENT FORM" CAOJ19 nIlor COX CABLE SAN DIEGO 31 InS nIlor ress 0 5159 FEDERAL BLVD. Ity SAN DIEGO I eo penon comp elIDS IS rm: William Fiasim..OIII, Director of Fiaance " A . eep nenum r ...... 619-:166-5410 ran Ismg o~' CITY OF CHULA VISTA 109 ran ISIng u o~. ress 0 176 FOURTH AVENUE It}" CHULA VISTA ate 0 onn lO :'IllSSlon 07/01/96 ax urn r 619-:166-5540 1. This form i. Mini filed: (Enter an ..... in the approprdirbelt) Din conjunction "ith FCC Form 1200, FCC FORO 1220, ",fCC form 1225. Attach the eompleted FCC Fonn 1200. FCC form 1220. arfCC Form 1225 10 the front olthis Ionn OR [~}n order 10 fulfill FCC rules requiri,,!! an annualliling ofllois form Enter the date on which you last filed this fonn I 02128/95 I(mmlddlyy) Note: This should be the date on which the rates lastjustificd, by using either FCC Fonn 393 or the prior filing of this fonn, were in effect 2. Enter the date on which you dosed your books for ttw fisaI )"aT reOected in this form: Note: This will indicate the end of the 12~onth fiscal yczb which you are filing this fann. 3. Indiute the corporate statuI of your able sy__ fF..nkr _ ":J:ff in the correa hO:l1 ~c-corpol1llion Subchapter S c;:orporation Partnership Sole Proprietorship Other [Please explain belO\\) Pagel -It:;- Excel 4.0 Win, Version 2.0 12131/95 I <mmlddlyy) 11 ?) ./ ) ~ _ f\CF Approved by: OMB 3060-ll592 Expires: 4130/97 FCC Fonn 1205 May 1994 FoderaI Communic:ations Commission WaoIlialU>n. D.C. 211Sst "' . A Equipment and Plant Vehick-s Tools (Specify beiow) B Gross Book Value SI.202.519.00 S405.942.00 S151.l6500 C Accwnu1arcd DqJrceiation S264.148.00 $102.971.00 SI05.955.00 D Defcrml T...... (S30.569.00) SJ3.Jn.00 S3.409.00 E Net Book Value (B-{C+DlJ S'J6I.240.00 F Rate of Return G ClIlnJation ofGf'Ols.flp Role GI FccIcr.illncomc Ta."( Rate G2 _ Iocomc T.., Role GJ Net TotlIlnc:om. T.., Ralc ((GI+G2HGI ,G2)] G4 Adjustment to Reflect Intcrnl Deductibility G-l. A.ctuaJ Inlefnt Amount G-lb ToQ! Net Assets G4. IIasc: Return on Investment Amoun, (G4b , FJ G4d bucn:st Dcduaib;li,v Foetor (G4oIG-l<:1 as Eft'ccti.. Tax Role (GJ, (1-GOd)IIC-COrps skip to G71 G6 Adjustments for Non-C Corporations G6a Base R.cIwn on Investment Amount {G4cl G6b Distributions G6< CcoItribulioas (may no' ..- G6b) G6d Returns Subjcc:t to In..... TaxlG6a-G6b+G6c1 G6< Returns Pcra:ntage Subjm to Income T.., IG6dlG6al G7 Gross-Up RaI<: IC-Corps: III 1,(;5) Other III HG5 , G6<))1 H Gn>uo:d-Up Role or Rcwrn (F , G71 Return on Invcsunent Gtoned-Up forT....(E, H] S149,1I5.1747 $16.131.7115 16.471.4905 $0.00 $000 c.m:nt Provision for Dcpt1:Cialion S264.14800 sauuoo S7.56100 K AmwaI Capital Costs (I+JI 5414.il331747 SI07.319.7115 "114.0394905 $0.00 "SO 00 L GRAND TOTAL Isum or Liac K ,,"',;es' SS35,393.OB37 Bolo 1. Specify: Odoc.r I. Specify: Odoc.r 2. A AmwaI Op. Exflcn.... for S.C. Install. ODd Moin!. of Equ;p. Supplies $666.220.00 S7,.s85.931.00 B GRAND TOTAL (sum or Liac A ent,;esl S9,6J1,l59.00 Bo12. Specify 0IIIcr 1. 000Isidc labor. AlIlO Opclw. NaG __ -..........M'... Support Cost. Specify: Odoc.r 2. -;2 0- Pale 2 ~ 4.0 Wm, Version 2.0 D< )Y I )v;.- ApptovccI by: OMB 3060-0592 Expi...: 4130197 $0.00 FCC Form 1205 May 1994 Federal Communic:atioos Commission Waobiagtoo, D.C. 20SS4 ApprcMd ~, OMS 306O-OS92 E.""i...: 41301'17 SCHEDULE C, CAPITAL COSTS OF LEASED CUSTOMER EQUIPMENT A Equipment Remo1e I Rcmoc~ 2 Remote ) Convener 1 Converter 2 ConvC'RCr ) Other Equip. B TocaI Mainl<llancclServicc Hours (Attlch E.'1'lanation) 13,348 4,720 37,S2S C Total M ofUniu in Sctvicc 24S,323 SQ,938 273,716 0 Gross Book Value 1,9S8,376 3,923,S02 3S,714,361 A<<umuJaud Dq...cciation 1,118,487 2,974,937 23,126,212 Dekm:d Ta.... S9,413 122,449 711,977 G Net Book Value (D-(E..F}} H Grossed-Up IWo: of Return IF...... Schcd. A, Lin. HI Return on In....,.... Grossed-Up for T..., IG. HI SI09,~1.9S7 $0.00 $0.00 SI27,287.4m suu.m $0.00 $0.00 Cum::n1 ~ion for Orcpreci;won 299,136 SlI,318 ',239,436 K Annual Capilal Com (I .. J) S4Oll,~;9S7 $0.00 $0.00 SlOll.60.S $7,068,231 $0.00 $0.00 L GRAND TOTAL lsum of Line K entries) sa.1as.c1.79U 80s J. SCHEDULE D: A VER~GE HOURS PER INST ALLA TION A. A"".... Houn peT Unwircd Home InsWlation (_ an cqJIanation) I. B A""noge Houn per ......Wircd Home InsWlation (_ an explanation) O.S C. AveaRC Houl'$ per Additioul Connection Installation at TUIIC of Initial Insa.lLation (anxh an explanation) 0.6S 0 A""rage Houn per AdclitiOClai Conneclion InsWlation R<qairia8 Sq>uolo InsWlation (olIacl1 an explanation) 0.7S E. OOer InslaIlation (by hem T~l'C'). Item I. (Specify) Average Hoors 'PCT installation (:attach an expbnaUon) 0.6S lIem 2. (Specif,,) Average Houn peT Installation (attach an explanation) 0.2S II.... 3 (Specif>") Average Houn per Installation (attach an explanation) 0.7S ..... ;;2 / '-' / P~el Ex=14.0 Won, Version 2.0 );).- f\ ; FCC Fonn 120' May 1994 Federal Communicalioos Commiuion W............ D.C. 20554 WORKSHEET FOR C...LCUL...TING PERMITTED EQUIPMENT ...ND INST...LLATION CHARGES STEP A. Hourly Service Ch_rce I. TOl3i CapiloJl Costs of Installation and MoiDlenance (Schedul. .... ~, 11 S535.393.0S17 2 TOl3i Annual Operating E.._ lOr 1nslaIlation and Mai.........ISchcdul. B. 80. 21 $9,638.359.00 3. TOl3i CapiloJl Costs and Operalial ElqJcascs lOr 1nslaI1atioa and Main....... (Line I + Line 21. SIO,173,7S2 . Customer Equipment and Installation Pen:cntage (mach an explanation), I S. "-uoJ c......... Equipment Mai......... and 1nslaI1atioa Costs, E..audia. Costs of La.d Equipcacnt (Line 3 , Line 41 SIO,I73,752 6. T-' Ubor Haws lOr Maiatcaanee and 1nslaIlation of C.-am.. Equipment and Setvi... (aaach ~on) 327,S27 7. Hourly Setvio: ClwlI. (tISC) (Line SILine 6) S3 1.0339 MEntOD OF BILLII'iG FOR INST...LLATIONS (pl....n ..... in the .ppropria.. box) Iamllatioas billed by the: hour _ on 1he HSC cal_ in Line 7. X _lati... billed as. -.danl cIw;e. STEP a lnatau.tioa Ch.rc. 8. u.iinrm HSC..... all installations (From Saop A, Iiae 7) OR Average Cbarge for Installation T\i ala .a. Un.i.m:I Home lnstaJlation .1. HSC ILine 71 aI. A'W3Ic Houn per Unwired Home lutaJt.tion (Scbcdulc 0, Line A) 03. ChatJe per Un..;n:d Ham.1aml1atioa 1.1 ,all b. ~red Hoene InstaJlation bl. HSC (Lin. 71 b2. ......... Hours per P.-.;n:d Hame InslaIlalion (Sdocdule D, Lin. B) b3. Ciuuw< per P..-win:d Ham. InsWIation (b J , b2) c. Additioaal Coancction InscalWiOll ou: Tunc of lnitiallastallation .1. HSC ILine 71 02. ......... Hours per AdditioGal c-ion 1.....1ation.. Tlnle of Inil Iamll. IScbcdul. D, Line CJ cJ. Chaop: per Additional Coaacaion _lation.. T_ of Initial .......Ialion lei x .21 d. Additional Connection Iamllatioa Rcquiria Scpar-= IaataIlotion dl. HSC [Lioe 71 42. "'vg. Haws per Additional Coaacaion Installation Roq. Scp. .......1. IS_I. D, Line DJ d3. 0..... per Additional Coaacaion laatallation ~ri.g Scpar.ue Installation Id 1 x d2) e. OdI., I.....lali... (.... specified in Sdledul. D, Line El: .1. HSC [Line 71 c2. ...ve.... Hour> per 1nslaI1ation of I.... I [Sc:bedulc D. Lioe E. Item II .3. ChatJe per Installation oft.... I (el xc21 ... HSC ILine 71 c5...._ Hour> per 1nslaIIalion of Item 21Schcdulc D, Line E."em 21 06. o....cper 1nslaIJotion of Item 2 [c4 xeS] e7. HSC [Line 71 d.......... Hour> per 1nslaIlation of Item 3 IScbcdulc D. Line E.ltem 31 09. o....c per 1nslaIlalion of Item 3 le7 x 081 -c2~- ..... 4 ExccI4.0 Will, Vmioa 2.0 I~ - " " (\. ;/ f Aw<oved by: OMB )06O-llS92 Expires: 4/30197 FCC Form 120S May 1994 fcdcra.l Communica:tiOftS Commission WashinBtOO, D.C. 20"4 STEP C. CharJa or ju.Hd Remota . . . (Calculate scpantt'ty for each sipificandy different type) Rcmok I Remote 2 Remote 3 10. Total Main~cclScrvicc Hours (Com:spoDding column from ~uJe C. Line 81 13348. o. O. II. HSC IUne 71 SJl.ill39 531.0339 SJ 1.0339 12. TDIaI MainlCllan<Cls"",iee Coo [Line 10. Un. III S414,14~H614 SO.OO ' ,. SCcOO 13. Annual CapiuJ Costs rColTCSpOndiAg column from Schedule C. Line KJ s.<ot._.1>S7 50.00 SO.GO ... TolaI Cost .fRemote [Line 12 + Line 13) $822.83'.:5253 SO.OO $0.00 U. Number .fUnits in Servi.. [Com:spondin. ODlumn from Scbedule C, Line C] .. ,24'323. O. O. 16. U.it Cost [Line 14IUne 1'1 SJ.3S41 SO 00 SO.ilO 17. Rao: per M""th (Line 161(12)) 50.279' 50.00 $0.00 (STEP D. Ch..... for ...1<11 Con..rter Bo... a . . (C.lcul.te .......tely for eoeb oipir.....tly diff....... type) c...verter I Converter 2 c...verter 3 18. TolaI Main.....a:/S<lVi.. Hours [Correspondi.. ODIumn from Sehedul. C. Line B) 4720. . 37'25. O. 19 HSC (Line 7) , S31.0H9 SJ 1.0339 J;3L0339 20 TDIaI MainlCllan<ClSe",iee CDSl riine 18. 191 SI46,4&O.0331 SI.I64,547.2976 $0.00 21. Annual Cal>ital Costs [ColftSllCl"Clin. ODIumn from Schedul. C, Un. K] 570&,605 $7,061,231 $O:llO 22. TolaI Cost ofC""verter IUne 20+ Une 211 SI.S'.ill6 S&.2'32,779 SMO 23 Number of Units in Service (ConaDODdine. column from Scheduje C. Line CJ '0938. 273716. O. 24. Unit CDSl IUnelllLine 231 516.716& SJO.ll77& 50.00 2' Role per Month lUll< 24/(12)) 51.39&9 $2.'06' 50.00 STEP E. Cha.... for Other Leated Equip.....t 26. TolaI MainlCll&DOelScrviee Hours (Com:spondin. ODIumn from Schedul. C, Lin. BI 0 27. HSC ILine 71 SJI.0339 2&. TDIaI MainlcDana:iS<JVi.. Coo [Line 26 . Un. 271 SO.oo 29. Annual Cal>ital Cnsts ICorresponding ODIumn from Schedul. C, Un. KJ 50.00 30. TolaI CDSl.f Equipment JLine 28+Line 29) SO.OO 31. Number of Units in Service (Com:spondinl. column from Schedule C. Line C) 0 32. Unit Cost [Line 301Lin. 31] 50.00 33. Rao: per 101_ [Une 321( 12)) 50.00 METHOD OF BILLING FOR CHANCING SERVICE TIERS OR EQUIPMENT (pl_.n "," in the .ppropri.te bo'l X OJ, Nominal Chars. (En"" the nominal dwi. in Line 34) .. a UniConn Hourly Service Charie as an Average CharJc (EntcTthe AVCI1IIC Hours (or Changing Service liers in Line 36b) STEP f. o.af'ICS (or Chaollhl ~rvi('e Taers or Equipment J4. Nominal C . for Chon ing s"",iee lim If YOU use an csa1aIing scale of c:haracs.. place an -:'(" in the box at the right. OR 3'. UniConn Hourly SelVice CiwB. OR 36 Average C c for Changing Service Tien 36a. HSC [Lin. 71 36b. Avcl3le Hours to Change Servic:c lien 36c. Average ChatJe (or ChanginS Service Ttcrs (Line 36:1. x Line 36bl -;;l..3- Paa. , ~ ..1 ) :; - -~\; , E.ee14.0 W'IA, V...ion 2.0 Approved by: OMB 3_92 Expi...: 4130197 FCC Fonn 120~ May 1994 fcdenJ Communications Commission WashiqIon, D.C. 205S4 ~ by: OM8 3~592 &pi...: 4130197 WORKSHEET FOR CALCULATING TOTAL EQUIPMENT AND 'INSTALLATION COSTS I. TOlOI ~ Costs of Installation and Main_ (SdIodule A, 80, II $535.;93.0137 2. Totol A-..l Operating E.'qlCftSC, fo, Installation ond ............. (Sc:hodule 8, 8.. 21 59.6J1,359.00 3. Totol_ Capilal Costs oflnstallalion and Maio_(Line I + Line 21 510,173,752 ~. ClISlOmCr fAluipmentllld InslaIlation Pen:enlllge (all:I<h .""llIlation). I. 5. Annual c-omcr Equipment Maintenance _d InstalIaI:ioa Costs. Exdudintr Costs or Leued Equipment 510.173,752 [Une3.Une~1 6. TOlOI ~ Costs ofLcucd C_e' Equipment (SdIodule C, 80, 31 .. SI.115,4J2 7 Annual C"""",or Equipment and lnslallation Costs ILisIe S + Line 61 511.3S9,114 I. Pcn:enlOB. Allocalion to FllUlcMc Area (see ~l I. 9. Alloc:ar.c:d AmluaI fAluipment and Installation Cost [Une 7 . Une II 511.l'9.114 10. Monthly EquipmCllt ond Installation Cost (Line 9/ (12)1 51.529,931.99 II NumbcrofBasic Subsc:ribcn in F~chisc:: _,617 12. _Iy Equq>mcnl and InslaIlalion Cost per Subscriber (Lisle 10 / Line III 5U783 13 JnfWioa Adjustment Faccor [See InstnIctionsl I. I~. Adjusted Monthly EquipmClltlnd Inslallalion Cost per _be, (Line 12, Lioe 131 $3.2783 -C:<'I- ..... 6 Ex<el4.0 Wlll, Vasion 2.0 );2- fA FCC Fono 120S May 1994 federal Communicaioas Commission Wlliliagton, D. C. 20554 SUMMARY SCHEDULE Current EquiptMnt and Inmllation Ralu IPormiucd I Actual I. ClwJcs for Cabl. Service Iastallabons .. Hourly R-. [S,"" A. Line '1 .....1 b. A..... _Iolion ChonIes: I. __ of UnwilOd Homes [Sle1l B. Line 903] ..... S3J;03 2.1astaI_ ofPrewilOd Homes IS,"" B. Line 9b3] ... $1,,'2 l. lastallaion of Addilioaal C-Uons.. Tim. of Initiallastallalion IS,"" B. Line 9031 ... l2Q11 ~.1nsIal1ali0ll of AddilioGol ConDeetiOllS Requiring Separale _IIScp B. Line 9d3] $23.21 j Other InsIallalions (lpOCifv) [Scp B. Lines 903, ~, ge9] .. no.11 b $1.16 . $23.21 , M....dd~' Charce for Lease ..f_ COIIlrOIs IS,"" C, Lin. 1" eol....... .-01 _ COII1JOI T~". I: $D.21 _ COII1JOl T~". 2: $0.00 _ COIIlrOI Type: 3: SO.DO l. Maaddy CIwJ. for Lease ofCOO.....r 80... [Slep 0, Line 2', columns"'l COIl'WCncr Box T~"DC I: $1.40 Cae~r Box T~'PC 2: l2.SI c....n..!Iax T~". 3: $O.DO 4 _I~' Charce for Lease of Other Equipment IS,"" E. Lin. 33) Other Equi_t (Soecit'yl SO 00 I s. a...... for a.-.io. Tiers (u_) IS,"" F. Line 34. 3S 0' 360) $2.00 I . LABOR COST Al'iD POLICY CHANCES a..tic:Me your answer 10 the followiBa duee qucstiofts by placiaa an .x. ia cbc ~riatc bo:,< 1. Have ,vu indudcd che labor COlIU auoc:iafcd with subscriber cable drops in your charges for initial inslallatian'? WYES DNO ffi~ eapitali=l1hc w.o, c:osu......ialed ..;m subscribe, cobl. drops' DNO ). If)'OU IIavc filed dUs form bcfon::.1I:IYC you chanacd any policy. e.g.. case aocoanting or cost allocation that causes an incn:asc in the costs iadudal in the -........on of cqaipaoc:al and iostaIlalions ebat1les7 DYES (You...........na lUll ~on) WNO CERTlnCA TlON ST ATEMEl'o'T wnLFUL FALSE STATEMENTS MADE ON TIllS FORM ARE PUNISHABLE BY FINE AND/OR IMPRISONMENT (U.s. CODE mu: la. SEmON 1001), AND/OR FORfEITURE (U.S. CODE, TITLE 41, SEmON S03). I catify dm dac: lQ&anents __ in this farm are INe and conea to the best of my knowledge Md belief. and an: _ of!be CabI. Opc:_, Siena.". c.. C....-iuti.... S- o.. Title - 025- '" ~14.0 Win, Venion 2.0 ) ;z. - f\- Appn>vod by: OMS 3~92 Expi...: 4130197 V: FCC Farm 12M May 1994 -'1,...- , . Federal Communications Commission Washington, DC 20554 Approved by OMB 3060-0685 FILING DATE FOR TIllS FORM FCC FORM 1240 UPDA TING MAXIMUM PERMITTED RATES FOR REGULA TED CABLE SERVICES ( ) Cable Operator: Name 0 Cable Operator Cox Communications Mailing Address of Cable perator 5159 Federal Blvd. City San Di 0 State Ca ZIP ode 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 belowl 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 information at the bottom ofthis page: I 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, Imoerial Beach, Santee MaIling Address ot 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 x X TO 1 % 1/96 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? b. Has an FCC Form 1240 been filed previously with the FCC? If yes, enter the date of the most recent filing: I YES X (mm/ddlyy) NO X (mm/ddlyy) FCC Form 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: I Page I - 016- /r I;;. - ~\ . a. Is this form being filed in response to an FCC Form 329 complaint? I If yes, enter the date of the complaint: I 11. Selection of "Going Forward" Channel Addition Methodology (enter an "x" in the appropriate box) DCheck here if you are using the original rules [MARKUP METHOD]. IK]Check here if you are using the new, alternative rules [CAPS METHOD]. If using the CAPS METHOD, have you elected to revise recovery for channels added during the period May 15, 1994 to Dec 31, 1994? Federal Communications Commission Washington, DC 20554 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 of the most recent filing: I b. Has an FCC Form 1210 been previously filed with the Franchising Authority? I If yes, enter the date of the most recent filing: I 9. Status of FCC Form 1200 Filing (enter an "x" in the appropriate box) a. Has an FCC Form 1200 been previously filed with the FCC? I If yes, enter the date filed: I b. Has an FCC Form 1200 been previously filed with the Franchising Authority? I If yes, enter the date filed: I 10. Cable Programming Services Complaint Status (enter an "x" in the appropriate box) YES X 11/15/95 YES X 11/15/95 YES X 07115/94 YES X 07/15/94 YES YES Approved by OMB 3060-0685 NO (mmlddlyy) NO (mmlddlyy) NO (mmlddlyy) NO (mmlddlyy) NO X (mmlddlyy) 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. Part I: Preliminary Information Module A: Maximum Permitted Rate From Previous Filing a b c Line Line Description Basic Tier 2 Tier 3 A 1 Current Maximum Permitted Rate I $7.74 I $17.14 I I DCheck here if you are a qualifying small system using the streamlined headend upgrade methodology. d Tier 4 e TierS MdlBSb 'b h' I 0 ue : u SCrl ers iD a b c d e Line Line Description Basic Tier 2 Tier 3 Tier 4 TierS BI Average Subscribership For True-Up Period 1 32,630 31,808 B2 Average Subscribership For True-Up Period 2 B3 Estimated Average Subscribership For Projected Period 63,058 61,500 Module C: Inflation Information Line Line Description CI Inflation Factor For True-Up Period 1 [Wks 1] C2 Inflation Factor For True-Up Period 2 [Wks I] C3 Current FCC Inflation Factor - cQ 7-- Page 2 )~ - I h\ f\/'/ 1.0218 1.0216 FCC Form 1240 January 1996 Federal Communiations Commission Washington, DC 20SS4 Approved by OMS 3060-0685 0 ue 0 a cu a mg e ase ate 0 a b c d e Line Line Description Basic Tier 2 Tier 3 Tier 4 TierS 01 Current Headend Upgrade Segment 02 Current External Costs Segment $0.4427 $5.6771 OJ Current Caps Method Segment $0.0000 $1.5000 04 Current Markup Method Segment $0.0000 $0.0000 05 Current Channel MovementlDeletion Segment $0.0000 $0.0000 06 Current True-Up Segment D7 Current Inflation Segment 08 Base Rate [AI-0]-D2-D3-D4-D5-D6-07] $7.2973 $9.9629 MdlDCI If th B R Part II: True-Up Period Module E: Timin Information Line Line Description EI How long is the True-Up Period? ("I" for "Less than or equal to ]2 months" or first time filers, "2" for "Greater than 12 month If" I", answer E2 and E3. If "2", answer E4 and ES 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 ue 0 aXlmum erml e ae or rue- Ip erlo 0 a b c d e Line Une Description Basic Tier 2 Tier 3 Tier 4 TierS Fl Caps Method Segment For True-Up Period I [Wks 2] $1.5 000 F2 Markup Method Segment For True-Up Period] [Wks 3] F3 Chan Mvmnt Oeletn Segment For True-Up Period I [Wks' 4/5] $0.1344 ($0.1379) F4 True-Up Period I Rate Eligible For Inflation [D8+F I +F2+F3] $7.4317 $11.325 F5 Inflation Segment for True-Up Period] [(F4*CI)-F4] $0.162 $0.2469 F6 Headend Upgrade Segment For True-Up Period I [Wks 6] F7 External Costs Segment For True-Up Period I [Wks 7] $0.4664 $5.6962 F8 True-Up Segment For True-Up Period I F9 Max Perm Rate for True-Up Period I [F4+F5+F6+F7+F8] $8.060] $17.268] MdlFM p Ott d RtF T U p 0 dl 0 ue 0 aXlmum erml e ae or rue- Ip erIo 0 a b c d e Line Ulle Description Basic Tier 2 Tier 3 Tier 4 TierS GI Caps Method Segment For True-Up Period 2 [Wks 2] G2 Markup Method Segment For True-Up Period 2 [Wks 3] G3 Chan Mvmnt Oeletn Segment For True-Up Period 2 [Wks' 4 5] G4 TU Period 2 Rate Eligible For Inflation [D8+F5+G]+G2+G3] G5 Inflation Segment for True-Up Period 2 [(G4*C2)-G4] G6 Headend Upgrade Segment For True-Up Period 2 [Wks 6] G7 External Costs Segment For True-Up Period 2 [Wks 7] G8 True-Up Segment For True-Up Period 2 G9 Max Perm Rate for True-Up Period 2 [G4+G5+G6+G7+G8] M diG M p Ott d RtF T U p 0 d2 -c:2.8'- Page 3 ). FCC Form 1240 January 1996 );2- f\ Federal Communications Commission Washington, DC 20554 Approved by OMB 3060-0685 MdlHT U Ad" C I I 0 ue . rue- Jp I.lustment a cu atlOn " a b c d e Line Line Description Basic TierZ Tier 3 Tier 4 TierS Adjustment For True-Up Period 1 HI Revenue From Period I $2,143,791.00 $4,90 1,853.825 H2 Revenue From Max Permitted Rate for Period I $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 Perm 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 Perm Rate for Period 2 Ineligible for Interes HII Period 2 Adjustment Ineligible For Interest [HIO-H9] Total True-Up Adjustment HI2 Previous Remaining True-Up Adjustment $0.0000 $0.0000 HI3 Total True-Up Adjustment [H3+H4+H7+H8+HI I+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 [HI3-HI4] ($0.0000) ($0.0000) Part III: Projected Period Module I: New Maximum Permitted Rate a b c d e Line Line Description Basic Tier 2 Tier 3 Tier 4 TierS II 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+11 +12+13] $8.6689 $10.8762 15 Inflation Segment for Projected Period [(14*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 Permitted Rate for Projected Period [14+15+16+17+18] $9.7353 $17.182 Operator Selected Rate For Projected Period . 110 Note: The maximum permitted rate figures do not take into account any refund liability you may have. lfyou have previously been ordered by the Commission or your localfranchising authority 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, SECTIO~ 10~1), AND/OR FORFEITURE (U.S. CODE, TITLE 47, SECTIO.N 503). Telephone number 619 266-5410 Fax Number 619 266-5540 Page 4 :;z f' - -rl' );J. ~ ~ / ~J FCC Form 1240 January 1996 Federal Communications Commission Washington, DC 20554 Worksheet 1 - True-Up Period Inflation For instructions, see Appendix A ofInstructions For FCC Form 1240 Question I. How long is True-Up Period I, in months? Question 2. How long is True-Up Period 2, in months? Page 1 Line Period FCC InOation 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 10 111 Month 11 112 Month 12 113 tver~e \lJf1atiPr Factor for 1.0218 rue- p eno 114 Month 13 115 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 ~ver~e \Jlf1atiP~ Factor for rue- p eno - 30 -- IrJ - (A-); Approved By OMB 3060-0685 9 FCC Form 1240 January 1996 Federal Communications Commission Washington, DC 20554 Approved By OMB 3060-0685 Worksheet 2 - Caps Method True-Up Period, Tier 2 Question I. Indicate the period for which this worksheet is being used. (Put an "X" in the appropriate box.) Question 2. Indicate the tier for which this worksheet is being used. (Put an "X" in the appropriate box.) Basic Tier 2 X True-Up Projected Period Period 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 months, for which rates are being set with this worksheet? 9 2 3 4 5 6 7 8 9 Line Previous Regulated Channels Current Regulated Channels Operators Cap For Channels Added Total Caps Adjustment Operator's Total License License Fee Cap For Reserve Used Fee Reserve License Fees Used Total Operators Cap Used Net Change Period 201 202 203 204 205 206 207 208 209 210 211 212 213 214 Previous Month Month I Month 2 Month 3 Month 4 60 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month II Month 12 A vera e Period I Ca 61 SO.30 SI.20 SI.50 SO.30 SI.20 S 1.50 SO.30 S 1.20 S 1.50 SO.30 SI.20 S 1.50 $0.00 $0.00 $0.00 SO.30 SI.20 S 1.50 SO.30 $1.20 S 1.50 $0.30 $ 1.20 $ 1.50 $0.30 $ 1.20 S 1.50 $0.30 $ 1.20 51.50 SO.30 51.20 S 1.50 S1.5000 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 -31 - FCC Form 1240 January 1996 Page 2 " ):J.- f~ Federal Communications Commission Washington, DC 20554 Approved By OMB 3060-0685 Worksheet 2 - Caps Method Projected Period, Tier 2 Question I. Indicate the period for which this worksheet is being used. (Put an "X" in the appropriate box.) Question 2. Indicate the tier for which this worksheet is being used. (put an "X" in the appropriate box.) True-Up Projected Period Period X Basic Tier 2 Tier 3 Tier 4 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 Net Cap For Cap For License Fee Fee Reserve Operators Total Caps Channels Channels Change Channels License Fees Reserve Used Used Cap Used Adjustment Added 201 Previous 50.30 51.20 51.50 Month 202 Month I 50.30 51.20 51.50 203 Month 2 50.30 51.20 51.50 204 Month 3 50.30 51.20 51.50 205 Month 4 61 61 0 $0.20 $0.34 50.64 51.40 $2.04 206 Month 5 50.64 51.40 52.04 207 Month 6 50.64 51.40 52.04 208 Month 7 50.64 51.40 52.04 209 Month 8 50.64 51.40 52.04 210 Month 9 50.64 51.40 52.04 211 Month 10 50.64 51.40 $2.04 212 Month II 50.64 51.40 $2.04 213 Month 12 50.64 51.40 52.04 214 A vera e Period 1 Ca 51.9073 -3;;;z- J~- 1 i\J~" r' 1..' FCC Fonn 1240 January 1996 Page 2 Federal Communications Commission Washington, DC 20554 Approved By OMB 3060-0685 Worksheet 4 - Residual True-Up Period 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.) True-Up Period Projected Period x Line Line Descri tion a Basic Period One b Tier 2 c Tier 3 d Tier 4 e TierS 401 Average Permitted Charge 57.3000 517.1233 402 Average External Costs 50.4664 55.6962 403 Average Total Per Channel Adjustments after 5/14/94 51.5000 for Channels Added Usin!! CaDS Method 404 Average Tier Residual [401-402-403] 56.8336 59.9271 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 I Per Channel Residual [404/407] 50.3597 50.3102 Period Two 409 Average Permitted Charge 410 Average External Costs 411 Average Total Per Channel Adjustments after 5/14/94 for Channels Added Usin~ Caps Method 412 Average Tier Residual [409-410-411] 413 Average Channels per Regulated Tier 414 Average Caps Method Channels per Tier 415 Average Remaining Channels [413-414] 416 Average Period 2 Per Channel Residual [412/415] Page I - 33- vi J~ - ~p ! FCC Form 1240 January 1996 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 Descri tion 8 Basic Period One b Tier 2 c Tier 3 d Tier 4 e TierS 401 Average Permitted Charge 57.7400 517.1400 402 Average External Costs 50.5630 56.0106 403 Average Total Per Channel Adjustments after 5/14/94 51.9073 for Channels Added Using Caos Method 404 Average Tier Residual [401-402-403] 57.1770 59.2220 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] 50.3120 50.3074 Page 2 - 3'1- );2.- [\. )). ~ , FCC Form 1240 January 1996 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 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 True-Up Period, Basic Tier For instructions, see Appendix A ofInstructions For FCC Form 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 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 50.0000 50.0000 50.0000 50.0000 50.0000 50.0000 50.0000 50.0000 50.0000 51.2096 Previous Period Month I Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 51.2096 Month 10 Month II Month 12 Avera e Period I Channel Movement and Deletion Ad'ustment 50.0000 50.0000 50.0000 50.0000 50.0000 50.0000 50.0000 50.0000 51.2096 50.1344 515 Month I3 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 - 3s-- FCC Form 1240 January 1996 Page I x )" - ~'.' 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 Tier3 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 Form 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 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 SO.OOOO SO.OOOO SO.OOOO SO.OOOO SO.OOOO SO.OOOO SO.OOOO SO.OOOO SO.OOOO (S1.2409) Previous Period Month I Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 $1.2409 Month 10 Month II Month 12 Avera e Period 1 Channel Movement and Deletion Ad'ustment SO.OOOO SO.OOOO 50.0000 SO.OOOO SO.OOOO 50.0000 SO.OOOO 50.0000 (51.2409) (SO. 1379) 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 Page 2 -36- FCC Form 1240 January 1996 ,\ Ja'~' Question I. Indicate the period for which this worksheet is being used. (Put an "X" in the appropriate box.) I True-Up Period Question 2. Indicate the tier for which this worksheet is being used. (Put an "X" in the appropriate box.) I S;iC I Tier 2 I Tier 3 I 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? 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 Tier 5 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 ]) Cumulative Net Per-Channe Cost Adjustment Period 501 502 503 504 505 506 507 508 509 510 511 512 513 514 51.2096 51.2096 51.2096 51.2096 5].2096 51.2096 51.2096 51.2096 51.2096 51.2096 51.2096 51.2096 51.2096 51.2096 Previous Period Month I Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month JO Month II Month 12 Avera e Period] Channel Movement and Deletion Ad'ustment 50.0000 50.0000 50.0000 50.0000 50.0000 50.0000 50.0000 50.0000 50.0000 50.0000 SO.OOOO 50.0000 Page I -37- FCC Form 1240 January 1996 ) ~ - ~.:'. Question 1. Indicate the period for which this worksheet is being used. (Put an "X" in the appropriate box.) I True-Up Period Question 2. Indicate the tier for which this worksheet is being used. (put an "X" in the appropriate box.) I 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 Projected Period, Tier 2 For instructions, see Appendix A ofInstructions For FCC Form 1240 Projected Period X 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 IJ 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) ($1.2409) (SI.2409) (SI.2409) (51.2409) (S 1.2409) (51.2409) (51.2409) (S 1.2409) (S 1.2409) (51.2409 ($ 1.2409 Previous Period Month I Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month II Month I2 Avera e Period 1 Channel Movement and Deletion Ad'ustment SO.OOOO SO.OOOO 50.0000 SO.OOOO 50.0000 50.0000 SO.OOOO 50.0000 50.0000 $0.0000 $0.0000 SO.OOOO -3g- FCC Form 1240 January 1996 Page 2 I'() - p,,-, Federal Communications Commission Washington, DC 20554 Approved By OMB 3060-0685 Worksheet 7 - External Costs True-Up Period For instructions, see Appendix A ofInstructions For FCC Form 1240 True-Up Period Projected Period Question I. 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 Tier 3 Tier 4 TierS External Costs Eligible for Markup Cost of Programming For Channels Added Prior to 701 5/15/94 or After 5115/94 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 51,499,951.00 705 Marked Up External Costs 5128,540.9750 51,612,447.3250 External Costs Not Eligible for Markup 706 Cable Specific Taxes For Period 58,434.53 $18,200.79 707 Franchise Related Costs For Period 708 Commission Regulatory Fees For Period 709 Total External Costs For Period 5136,975.5050 51,630,648.1150 710 Monthly, Per-Subscriber External Costs For Period I 50.4664 55.6962 Period 2 External Costs Eligible for Markup Cost of Programming For Channels Added Prior to 7I1 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 - 69-' Page 1 J )~- ~\ \ FCC Form 1240 January 1996 Federal Communications Commission Washington, DC 20554 Approved By OMB 3060-0685 Worksheet 7 - External Costs Projected Period For instructions, see Appendix A ofInstructions For FCC Form 1240 True-Up Period Projected Period Question I. For which time period are you filling out this worksheet? [Put an "X" in the appropriate box.] X 12 o 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? Tier 2 Tier 3 Tier 4 Line Line Description Basic 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 $385,839.00 54,103,797.00 705 Marked Up External Costs $414,776.9250 $4,411,581.7750 External Costs Not Eligible for Markup 706 Cable Specific Taxes 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 54,435,849.4950 710 Monthly, Per-Subscriber External Costs For Period 1 50.5630 56.0106 -~o- I ~- I i\/lH FCC Form 1240 January 1996 Page 2 Federal Communications Commission Washington, DC 20554 Approved By OMB 3060-0685 .Worksheet 8 - True-Up Rate Charged For instructions, see Appendix A oflnstructions For FCC Form 1240 Question I. 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 Tier 2 Tier 3 Tier 4 TierS 801 Month I $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 Month 5 $7.3000 $17.1400 806 Month 6 $7.3000 $17.1400 807 Month 7 $7.3000 $17.1400 808 Month 8 $7.3000 $19.6900 809 Month 9 $7.3000 $19.6900 810 Month IO 811 Month II 812 Month 12 813 Period I Average Rate $7.3000 $17.1233 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 -ijl- FCC Form 1240 January 1996 ){l- ,~ j 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 of Chula Vista CA0329 Mailing Address of Local Franchising Authority 276 Fourth Avenue City State I~IP Code Chula Vista Ca 91910 Telephone number Fax Number (619) 691-5044 (619) 691-5171 Name of Local Franchising Authority CUID( s) City of Imperial Beach CA0421 Mailing Address of Local Franchising Authority 825 Imperial Beach City State I~IP Code Imperial Beach Ca 91932 Telephone number Fax Number (619) 423-8300 (619) 429-9770 Name of Local Franchising Authority CUID(s) City of Santee CA0337 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 --'1::2..- 1:1- r f\ ~ - 95 Oet Nov Dee 96 Jan Feb Mar Apr May Jun 96 Oet Nov Dee 97 Jan Feb Mar Apr May Jun Jul Aug Sep COX COMMUNICA nONS 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 -2;3- )-;._ ~ol) {{ . Basic Pnmium & PPV in bold Available foradd charge Chn 2 3 4 5 6 7 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 3~ 35 36 37 38 39 40 41 42 43 4~ 45 46 47 ~8 49 50 51 52 S3 5~ 55 56 57 58 59 60 61 62 63 6~ 65 66 67 68 69 70 71 72 73 74 7S 76 78 99 COX COMMUNICATION SOUTH CHANNEL LINE UP BY DATE Start True-up End True-up Start Projected End Projected 10/1/95 t/I/96 6130/96 101t/96 10/1/97 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 . KFMB . KFMB . KFMB . KFMB . KUSI . KUSI . KUSI . KUSI . KUSI . KGTV . KGTV . KGTV . KGTV · KGTV . KPBS . KPBS . KPBS . KPBS · KPBS . XEWT . XEWT . XEWT . XEWT . XEWT . KCOP . KCOP . KCOP . KCOP . KCOP . KTTY . KTTY . KTTY . KTTY 'KTTY Showlime Showtime . SNEAK . SNEAK · SNEAK HBO HBO . KBNT . KBNT . KBNT Cinemax Cinemax . COUNTY GOVT . COUNTY GOVT . COUNTY GOVT . C-SPAN 2 . C-SPAN 2 . C-SPAN 2 . C-SPAN 2 . C-SPAN 2 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 . ITVIMEU . ITV/MEU . ITVIMEU . ITVIMEU . ITVIMEU . CaliflGo\1 Acces . CaliflGovt Acces . CaliflGovt Acces . CaliflGovt Acces . CalifJGovt Acces . QVC . QVC . QVC . QVC . QVC . WGN . WGN . WGN . WGN . WGN . TBS . TBS . TBS . TBS . TBS Lifetime Lifelime Lifetime Lifetime Lifelime NASAlPRI:-1E NASAlPRlME NASAlPRlME NASAlPRIME NASAlPRlME MTV MTV MTV MTV MTV CNN CNN CNN CNN CNN Headline News Headline News Headline News Headline News Headline News AMC AMC AMC AMC AMC TNT TNT TNT TNT TNT Discovery Discovery Discovery Discovery Discovery Leaming Learning Learning Leaming Learning KBNT KBNT PREVI EW PREVIEW PREVI EW Prime Deponi"a Prime Deponiv. Prime Deporti"a Prime Deponiva Prime Deporti"a International International International International International BET BET BET BET BET A&E A&E A&E A&E A&E Bravo Bravo Bravo Bravo Bravo CNBC CNBC CNBC CNBC CNBC Weather Weather SCI.FI SCI.FI SCI-FI TNN TNN TN~ INN TNN VHI VHI VHI VHI VHI Nickelodeon Nickelodeon Nickelodeon Nickelodeon Nickelodeon Comedy Comedy Comedy Comedy Comedy E E E E E Cartoon Cartoon Cartoon Canoon Cartoon Faith & Values Faith & Values Faith & Values Faith & Values Faith & Values Disney Disney Disney Disney Disney Pre vue Prevue Showtime Showtime Showtime Sci-Fi Sci-Fi IIBO IIBO IIBO Sneak Sneak Cinemax Cinemax Cinemax Court Court Viewers Choice Viewers Choice Viewers Choice IIot Choice HOI Choice lIot Choice Hol Choice HOI Choice Showlime2 Showlime2 Showtime2 Showtime2 Showlime2 HB02 IIB02 HB02 IIB02 IIB02 Cimemax2 Cimcmax2 Cimemax2 Cimemax2 Cimemax2 CMT CMT CMT CMT CMT Encore Encore Encore Encore Eocore Travel Travel Travel Travel Travel Gems Gems Gems Gems Gems MTV Lalino MTV Latino Court Court Court HSN HSN HSN HSN HSN Value Vision Value Vision Value Vision Value Vision Value Vision FX FX FX FX FX MEU MEU MEU MEU MEU Outdoor Life OUldoor Life Outdoor Life Outdoor Life Ouldoor Life Conlinuous HilS J Continuous Hits J Continuous Hils 3 Continuous Hils 3 Continuous Hits 3 ESPN2 ESPN2 ESPN2 ESPN2 ESPN2 History History Hislory History Hislory TCM TCM TCM TCM TCM Leassed Access Leassed Access Leassed Access Leassed Access Continuous Hits 4 Continuous Hits 4 Conlinuous Hits 4 Conlinuous lIits 4 Conlinuous Hits 4 SEGA SEGA SEGA Continuous Hils Conlinuous Hils Continuous Hits Continuous Hils Continuous lIits Channel Count Basic 19 19 23 23 23 CPS 41 42 38 38 ~.- \~l 38 -lfLj - Other 15 15 16 )~ - 16 16 Total 75 76 77 77 77 a ATTACHMENT #4 SEP 5 [qc,~ August 30, 1996 Cox Communications 5159 Federal Boulevard San Diego. California 92105-5486 16191263-9251 Mr. John Goss City Manager City of Chula Vista 276 Fourth Avenue Chula Vista CA 91910 cox COMMUNICATIONS Dear Mr. Goss: RE: NEW PROGRAMMING AND CHANNEL CHANGES Cox Communications strives to give our customers as many programming options as possible. That's why, effective September 30, 1996, Cox Communications will be offering new choices to our customers, including: "SAN DIEGO'S 15"/CoI 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 IS" will offer repeated broadcasts of KGTV/Channell0's news programming 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/COI 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 ChanneUESPN2 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 programming 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 programming 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- );1.- p_~-l :- , .../ COX COMMUNICATIONS MS~BC AND SAN DIEGO'S NEWS Commg September 30th 1996 . CHANNEL 15 COME TO :-- new services. San Dieg~'s N ,Cox Commumcations is proud 10 ( 0.\ channel 15. featuring local n:ws ~ Channel 15, an exclusive local ~:noun~e the add i Ii on "I ,,,,, ws rom KGTV-IO, 24 hours a da . ws cannel, will debut 0" In addition, MSNBC w'll y, o ' , 1 come to Co C r~amzat1on to embrace three m' x oI?munications on channel bnngs you up-to-the-minute ne edlafj technologIes - broadcast, cable and t~9I' As the only lle\\' ws rom around the globe. e nternet - MS', BC Also, ESPN2 and The H' September 30th, makin lstory ~hannel will move to our Co channel 38. Finally, du; ::~m avarlable 10 all Cox Expanded cu~o;::randed level .of service 01 WIll switch channel Posilion~ntractual agreements, KTLA-S and KT;v.ESPN2 wtll be found on , -14 (soon to he KSV'B) (over) YOUR CONNECTION TO THE FUTUR . -. c On September 29th, Faith & Values channel 51 ceases showing strictly praise and worship programming and becomes a new channel called 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 Hit, , will run from 6 A.M. to 10 P.M.. 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 -Vi cOX previews and programming information. FOR MORE INFORMATION, CALL 262-1122 .' r... \': '. -.Jjf:, -- ;<', \ / ~- A- ~~~ ~ ~~~~ ell\' Of CHUlA VISTA OFFICE OF THE CITY MANAGER ATTACHMENT #5 September ] ], 1996 Mary Tietz Government Relations Manager Cox Communications RE: Fonn 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 \\ri]] 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 1) 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. Sincere}y, ~~#:~:!2:: Gerald Y Principa M gement Assistant Attachments: Draft Fonn 329 Complaint Public Knowledge report, August 27, ]996 Public Hearing Notice for October I, 1996 cc: City Council William Fitzsimmons" Cox Communications, Director of Finance Jack Jacobs, Cox Communications, Financial Analyst -If 7-- 276 FOURTH AVENUE. CHULA VISTA. CALIFORNIA 91910 . (619) 691-5031 . FAX (619) 585.5612 I "c--\ ~ - (1.- 4 ' .,~ ,.~...,.. ! (beAFT) Federal Communications Commission Approved by OMB 3060.0549 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 State Phone Number: (619) 691-5031 Cable System Name: Cox Communications Street Address: 5159 Federal Blvd. CA Zip Code 91910 City Phone Number: San Diego State CA Zip Code 92105-5486 FCC community unit identifier number for cable system. C A 0 3 2 9 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: --.Ire - FCC FORM 329 ) ~ _ (17 r April 1H6 Federal Communications Commission Approved by OMS 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, 8 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 ~ith 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. Name Signature Date FCC NOTICE TO INDMDUAlS REQUIRED BY THE PRIVACY ACT AND THE PAPERWORK REDUCTION ACT The solicitation of personal infonnation in this fonn is authorized by the Communications Ad of 1834. as amended. The Commission wm u.. the information provided in this fonn to detennine the reasonablen... of a cable company's ratel. In ..aching that detennin.tion. or for law enforcement purposes. . NY become MClaury to provide peraoftll ilfofmltion contained In this form to .nother govemment agency. AIIlnformltion provided In this fonn will be available for public Inspection, subject to local requirements. Individuals are not required to respond to collections of InfolTnltion that do not corain a valid Office of Management and Budget (OMB) control number. Public reporting for this collection" estimlted to average 45 minutes per tiling, Including the time for ~O illtNctions. ...rching existing data sources. gathering and maintaining the d.ta needed. and completing the collection of Information. Send comments regarding this burden estimlte or any other IIpect of this collection of ilfofmltion. ilcluding suggestions for reducing the burden, eo the Federal Communic:ltions Commission. ReCOrdl "anagement Branch. Washington. DC 20554. Do!!2! send completed forms to this address THE FORGOING NOnCE IS REQUIRED BY THE PRIVACY ACT OF 11174. P.L. 83-57&, DECEMBER 31. 1874, U.S.C. 552.(e)(3). AND THE PAPERWORK P~UCTION ACT OF 19i15. P.L. 104-13. MAY 22, 1895.47 U.S.C. 3507. -ijr;- "FCC FORM 32~ ...' /'; ):J. - A/oJ April 1 t96 ,... OCT Ell '96 02:45PM COX EXEC STI=ft rRX 619/266-5555 P.2/2 51!lB FtdetJI80181n1 s.n Diego, ClI~ 8Z1lJ5.648S 1&191283-9251 Attachment #6 October 1, 1996 cox COMMUNIUT"'" Mr. Gcral4 Young PImpal MaDagemenr ADal)m <:sty ofClmJa Vuta 276 Fomth AVCDUC Omla VISta, CA 91910 .;.. ......: RE: ApDda Item lUCox Co1lllll1lJJieadODS~:~CC POI'IDJ 1235, l1AO aad 1205 Dear Mr. Young: Cox Commnnicatiom appreciates your willingness to recommend a two-week continuauoe of Aseoda Item 12. We will be submittir'8 written ""',....P.1.t!l pc:rtaioiDg to the "r'a draft FCC Form 329 complaiDt within the preacribed 3<kIayreview period as provided by FCC regulations. You can anticipate receiviDg those written comments no later than Oc;tobcr 10. 1996. In a&tiWn, Cox Commnmcations will not be cDngjng equipment and Dt$tion Iatcs on . October t 1996 as WBS comrmmicated to the city in our FCC Form 1205 filiJg dated June 28. 1996. In accordance with FCC regulations. we wiD. notify the city 3o...days in advance ofmy regulated rate chanSes included in the FCC Forms 1205, 1235 and 1240. H you have any questions of require additional iofolJDlltioD, please don't hesitate to call me at 266-5410. .' ,j '! .if" WILLIAM FITZSIMM:ONS Director ofFinaDu and AdmiDistration Cox Communications "'"f ~. I:' ;: f: i., , r {2- l\ i)Y OCT 1121'96 04: 23PM COX EXEC STRF"F FAX 619/266-5555 P.2 li1. FtcHIIIlluIMtd ll8n DiIg:J. r.Am1a 1Z1l!i-64llll 18181 ZSH261 A TT ACt-/ /l1@JT 7 cox COMMUNICATIONS October IOJ 1996 Mr. Gerald Young Prineipal Management Analyst City of ChuIa VJBta 276 Fourth Avenue Cb.u1a Vista' CA 91910'" r ~i:'" ~ 2--:-.~".~~~:r:~ "T;-' '.'1/2':,1';- BE: Cox CommuBicatioDI' FCC Form 1235/Draft 329 Complaint Dear Mr. Young: , In response to the draft FCC Form 329 Complaint submitted by the City to Cox CotnnmnicatioDS on September 11, 1996, we are submitting the enclosed letter to Mr. Jay Smith of Public Knowledge and a revised FCC Form 1235. We wm look fmward to diacussing this matter further at the Chula VISta City CoUIlf;il on October IS, 1996. If you have any questions of require additional information, please don't hesitate to call me at 266-5410. Sincerely, , U/P~~ . WIL~J. lMMONS Director of F' and Administration Cox Coft11'n11nications ,/ " ) :2- .; 1\ . . ,/ ~j'" OCT 10'96 04: 23PM COX EXEC STRFF FRX 619/266-5555 P.3 5158 flderalloulmrd Sill DIIIlD. CIIfomIlIllCJl5.5Ull (&19) 2lI3-t2S1 cox COMMUNICATIINS October 10. 1996 VIA FAC~ AND-->,r-- ITR~T CLASS ~nl ._.,~ , c%/2'~,:;- Mr. lay Smtih , /I. PrNtdem: Public KDowledgcJ IDe. 5510 Swuidge Dr. S. Salem. Oregon V1302 h: C~Co~n~d~Sm~8m . FCC Form J235 and Parm 1240 !We filiD&s Deal Mr. Smith: We ba~ rcvicwccl ,.our August 27. 1996. JeIW to the Cilias of Cbula Vista, Im.pcria1 Boach, I.1Kl NaIiDnal Clf;)' regardiDI Cox Cnmmnmcatioas SID DicIO'1 C"Cox's"') PCC 'orm 123' and Form 1240 rate fWDgl for rboso communities. This letter discusses levcal of the issues addressed in your lotmr which we ~ieve c~irtel die FecIera1 Co~mum"tiomI Commiufonls (1ba "CommissioD'ltJ) Nics sad policies rcgardiq Porm 1235 ratl: mings u they pel'tlil1 to your analysis IlDd our rcceat discussions. You Sl1Qest In your leUer that Cox may not adjust rates for add.cIcl cable prop"'''''''. MrVice (..CP~~) tier cll.rmeJa UDdor &be R"psll method and also file a :Fonn 123S co mtloct network upgrade COltS. Lc1ter at 3. However, the Commiuioll bas stated specifically thae the Form 1235. Network Upgrade memo401ogy dtJU penml operatOr. to KCOWC for the QOII[S /2/ A ----s(p OCT 1121'96 1214: 23PM COX EXEC STAFF Fl=lX 619/2.6-5555 i P.4 Mr. Jay Smith October 10, 1996 Pap 2 , of IUlmaDtll1 uetwork UPFades above aDd beyODd any arijua1menb made puIIUaDt to tho ~rklpric:e cap appro-:h.lI , In the O'mmt-IioD'. report IZKI ardor adoptiQg bUotim cost of service mIaI,,1' die Commi.lioA ad0pre4 an abbreviatld COlt of service Ibowq for .)'staID uWiOlk \IPIfI'CIeI. 'l'bIIl Comml..w,; ot lhIt tiulllllld dIIt. ~ !be _ IppI'<IOI:h: . . . operator[a] would be permiuecl to set. rate buecl on two elemeaD. Tba tinl element is die be~1un.~ IUI, U~ve.med by the Rate Order 111III ,. price cop. Tbt *<md elemODt will be. capiTal improvemem acId-cm. 7k '. of ,.- tWQ 11_111' willyi'I!J,th JIItlZimIIm Gllowtlble 7r1I, thtlr _./at 1M ch/l,,~;tD ,"b.r~". ",c~/:V lnurlm 0Nt Older, 9 FCC Red at 4676 (~Iddad). The (;nmftti.siOD rairenred tblI policy in its, order adoptiDg fiAI1 ;0$1 of ~ ruJII: *'!be recoverable aJDOtmt of IUOh capital ~Iovementl may be added to a sy.teal'. beDchmarlr rate, (J,J fldjWtM by tIN pnu cap, to aaier- a mqm,WD. permiu.cl rare. "11: ThuI, it. eIe&r r.bat tbo CollUlfMioD ~ for operaton to reeover eItemI1 costs, Wlatiollt aDd soms-forward Qha,,"e\ addltiODl uDder the price cap., lid addidODll 'fsradc coati UDder a cost-baIId approach.' .' t ' liThe rust benchmark approadI wu adopced in 19". S" R6p0rl tmd Onl" aII1l FunMr NfJl;" oJ 1'I'Op(J8ed RuleIftGldn8. 8 peer Red 5631 (1993). Tbe Cmn""ttioD revt,ed ita hI!ncIImIrlc8 and adopted its quanat)' prke ~ap methodology (11011I wiQl PCC Form 1210) in its S.COlId OrtUr on kctmIitHTtIIItm,'OJI7th bporttG1r4 Ortis', IUIIl FUih. NtJtI~ 'of Pl'OJIfJ'ed RlMmakinf, 9 pee Red 4119 (1994Y~ The anm1I1 ,price cap methodology, for UII with FCC FOl1D 1240, was adople4 by tbe COIIUDlIIioll in its Thirttath Ortkr 011 Rseon.ritUTGlioR. 11 FCC Red 388 (1995). 4' 11 .Rel'Ofl fJ1Id O'*'.w Frm/It, M .. .... of PnJpoIItJ ~, 9 FCC Rc:cl 4527 (19M) C.lntllrim COlt OnltIr"). . ... , 3./ 5<<0114 bpon tMId 0,.,.. FIr. 0r4u tmlUCOMidlllTltUm. euul PwtIMr NOlI" qf ~~. 11 FCC Red 2a2O. Z21(1!lll6) ('FIMJ CoIl 0nIer') (..... !I The Co1ftnl1..ioD~s viJioD.Of tbJI tw9 PI'OIlI rate HttlDg med1odo1olY wu fInt voiced In ill wit of.me. IIOlko of~ ~: w. also ~Ueit C4'~ 011 W~tb.ar wel.. ,"'blilb an abbreviated COIt-of-lItViCe IhowlDa for .ipificant pmapectiw cap' expendiluRl used to improve tbe quality 0 (.oadmJ,",. .. t::'. II / '} ~A/ -- d . ,+ OCT 113 ~96 B4:24PM COX EXEC STAFF FAX 619/266-5555 P.5 Mr. Jay Smith October 10, 1996 Pqo3 I I I You alao IUglest iD your leUer that autiacriber beDetits arc tied dimctlylDd so1e1y to tbe Id4ttion of ~lDDet. to a system. You conclude, dJenfore, tbat: . . .' there Is DO demonstrated beDafit to bask service SUbscribers since the rJlA1InA1 ~ltioD for Iha baaic tier \WI DOt chaDgecI by die upgrade. 1'IJadn. DODD of 1110 uPSrade aolts sbould be alkatlld to basic. Furtbar, the allocation botwten as aDd other services should. be buecl on the cluamtel addidoDs directly assocJatcd. with me upgrade. . . . =-at~:S~~dIIl:~:=~=;:'~aId and FtnGI ~,:0TdeT. I~;~, ~ _~~:901t of scrvice ruJl!Ih.l-i~ proeeetU"11 cloeI the CommillllOD ~unciate sUch a polley. lDdeeci, if ID operatOr were mquiNd to IdcI c".'I'DU!1s 81 a coodition of impl~ I rare inaeasc UDder tbe F011D 123s med1odolol)'. it Ia rouoDlble,fO ..Iumc such a policy would have been stated clearly by the ComealniaD:1t Pive faetors determine the pelmiuibillf1 of network upgrade COJCS, amDIII Cbem is tbat the operator must demoDstrafa tbat lAIbscriben will beDefit "tbrougb. improvemears ill tbe teplared service subject to the rare mc.re.. "f/ "ImprovememsH e.ocompass several variables, DOl just the addition of M"11IH!la. Por example, Cox is uppadiDg kI syscem to a tiber-rich lIFe network, which is mOte e.xpemive but mbsllDtia11y more reliable tIw1 the !I (. . .cODtinued) service or to provicleaclclidODalIen'1ces. Under this abbreviated showiDl, opemon setldtlJ to n1so ra_ to recover the COits of a plloDed upsrade would .Ib.mit only the costs of tile uppade. . . . /TIM C08ts of 1M up,rtIIIe WOIlId tMn be tIIJdMl to 1M I"fa p,rmUt,d UIIdI, tlat benchmtJJt and JJrlc~ t:Ilp tlJ1P1'OtlCh to Cbe extmlt COllI could not he recovered UDder tbat ~. ImPlcmMltAr;on of Sec:ticms of The ~le Television CoDIumer Protection add Competttiou MI of 1992 0:- Rate RDplati~ N<<iCc'uj Propolld RlII,mtIIcing, MM Db. No. 93-215. pee gs-3$3 (rei. Jul. U;. 1m) , 7S ,(emphasis. added). ~ It is also rolevant tbat the. Conuniqion', 20 ceat p~ tap metlJodology wu ba8ecI on historicalllUlVOY data fIOm 1986 to 1991. Duriag that period. VCIY few cable operators were. CODIuuctiDg fiber pJaDt, aDd tberefore the cap could not IDcoEpOratC ~ ttsubstantfal,. upgrade co... Si;(rh OtWr DnRecOn.Jid'rafton. Ffft1t R'PDrt and ONle" and SewnlIJ NOltce oj Proptm4 RUl~, 10 FCC.Red 1226, 1300 (lW4). 41 I"terlm Colt OnUr, 0 FC:C 'RGd .1 "7~. ! '7 - A. # t) (>,."L- ,~- OCT 10 ' 96 04: 25PM COX EXEC STRFF FAX 619/266-5555 P.6 Mr. lay Smith October 10, 1996 Pap 4 pnMoUlly-usecl pn:domilWUly coaxJa1 plam. The fiber CODfiguration that Cox is deploym, is rtmlucJ.:ar, and dms . flilme of ODIIl00p will DOt reIUlt in loss of se1'Vice to 1Ubtcrlben. ~ tba attIdlec:l charta delDODSuate, tho ilaelSe in fiber plaut iD. the system has impro't'at Iyatem reliability subltaDtially. :Fiber also prcwides bitter stpal quality to mcxe lUbaeriben over 1arpr. ~ite arcas.wlthout .ipal degradation (clue, for example, to IUCCeIIive DeCIIIU'y ampliflcador1). The attached Declaration from Stephen D. Gautereax, Vice President of Tc:c:1mica] DevtlopmoDt. atteIII to both system reliability aad sipIl quality iDdicatiDI that tba ay.rem's cmicr to noise ('IClNU) rado improved from ~ C/N to 48 C/N when dte 750 MHz fiber uppade wu implemeutcd. 'Ibe lntriDIic value of I pIdicu.1ar IIddccI chaDnel may lC1UaUy. be less tbID the value to s~ribers of such improveme.atl in aylfaD rc1iabUity a,nd ~ipI1 quality., d',,"'" :,.1 . '-'r::"':- --: .r:-c. f~f :,,~'.,'" (~I"~(-;:," BeClQij' subacrlbetltD any COX lerVlceS - iDc1udiDg pleviously available scrvic:eI - derive substaDtial beDefirs from CoX'.lystmn upgrade, costs Ibould be al1o;ated baed on rota! cbaJpv!1&, DOt just added dwmoll. Thus, your com:luIi011 that tbo allocadoD of COllI llIIlOftI b8sic,' CPS, aDd "other" RmAllhoulc1 be bucd OD chNmels dinctly 1I1lnr.1.1II(f widl tile UParade, is iDconai-tont with tbe Commission's poal. On a related. bsue, you stale mat Cox's allOCltlon of costs is improper 'because Cox sccb to recover the ~ of certain pJam that is DOt .used ad usefUl.. You derermiDed tbat bK1018 Cox i& 0Dl)' 4lusma" , the capIGi~ of the tlnt 100 MHz of tbc 300 acIcIkiOJlal MHz of capadty by which tbe .ystan bas bleD b1cIeased (i. ,., fIom 450 MHz capad1J before the upande to 750 MHz after tbe upgrade), Cox may only claim !bat 33 S of tba uparad$ 111lIed aDd usofu1 BOd I11UJI e.xclude.67.. Thorefore, you CODCbIde that Cox's exclusion of only r about 20" of the upgrade COSt is improper.V . Youjuatily your position by... that the Commission'. ru1ts provide that lI&each unit of acklcd capacity ahou1d bo ll'eated IS if. it costs the same u the other UDlU of added ca~. .. .. Lcuer at 2. Thus: . . . unless the tully distributed alloeadOD approach is appHeel, the rates plld by sublCriber8 10 tegulatld ~s included. in die 100 MHz activated portion of the upgrade wiD InClude a cllaproporUonate1y tarp tbare of eost compamcl to those who ultiq,Atcly 1HC aervat (likely to primarily be umegulared) III..... 11 While Cox'. iDitJal filiq excluded about 201 of the costs, it baa IIIleDdod 1m flUna to excludo 27~ of d1eIe CO&u.c:ox complltcd itI27~ allocation based on the llIoca1'8Cl COst to CODlttUcta ,SO MHztysteQl. Because Cox is. in tact, comuuctlDa a 7'0 MHz sysrem, tbc, lDc1uded pordon of_ capaQt)' <-.t which il used ~ U8efu1) I. SSG divided by 750 t;J<< ?:i "'. ~01 /,J- - It /S I ,. OCT 10'96 04: 25PM COX EXEC STAFF FFlX 61~/266-5555 P.? Mr. Jay Smitb Oc:rober 10, 19M PapS provided ill tile ~2bli. 200 MHz once it is ICtivared: that is. theIe wlJl be ClOSI IUbli4iaI. We believe tbat yoa have mi&iQterpreted ~ rlVftmiuioll's replatiODl reaarcIiDa th8 allocatlon of upgrade COlts. As a prelimiM'ry matter, Cox allOt merely ~.. . 4SO MHz I)'Item to 1SO MHz capacity; it iI.replGcinl iu precJomialDtly coaxial pJaat with ... of-cbe-art fiber optic plat. This tiot 1DIderliea Cox's COlt aU~ 1IUIthodoloJy. ad Ie entirely cODSistent with the ~mm;IIloD'. rules. As dileulled above. the adcIad value of uparadiJJa plant iI DOt merely in the added ~Amlel capacity. While it might appear that tbt only .ffect of tho UPlfade 911 to i..raIaase Cox', system capacity. pedlaps tile groatest valUe of the upJl'~e is in ru quaJjW aud mliabWIY.of Cox'. aervlce dellv;ry lY~rem. Iven rhouJh buic IUb~ril)e,n sciU ~ye.the c~,_:taivecl prior to the uparme, the plant over which thole sUvicea are cleJiven:d II ot lipjClCa11d)' botter quality. In fact, it II often till ease tbac mbscn"bers value tile quality ad re1iabilliy of Able service tI:IID die .,.ldQD of . M.IWIA1. COX has reVised its Form 1235 co take into cODSidcn.tion your po.idols tbaC DOl all plant Is .uaedanc! usofu1" by reviaiDt ital1location based all Cox'. used IDd UII.fu1 pordOD (up to S50 MHz) of the 750 MHz baDdwickIl. Tbus. a ~ of tbc uppa4ed pJam (In Cox's reviaecS ~se, 73"> it .uled aDd 1IIItbl." PiDaUy, your latter iDdieatel dIat Cox's Porm 1235 does I10t reflect the effect of advertising sales I'IvtII.Ie. Cox's ilmeJneDtal advertisJDg reveuue aasociated With POnD 1235 c.baJmellddltiolll toCa1a approximatDly $130,000 ."""llIy. The _~bed miaed P0l1ll1235 Rflo;ta adjusanctl buccl on. t.hia eptmlltM aclvertiliDl l'evcmue II well as Ihc Cox's ~UIUD_ to the UICd and useful aUoCadcm from 80S to on". CIIaDgiDg the UJed ad uaefW allocation reduce. the add-cm poltions of Cox'. basic ra1e ftom 51.73 to 11.59 and die CPS tier rate trom $4.03 CO 53.6995. ~QumiDg for tbe ad revenue further reduceI rile add- on pordoD to tl1e CPS rare from 53.6995 10 $3.S1S. We hOpe dIat tbis letter addI:ases yourcoacems reaardiDI Cox'. Form 123511lte filiD.g. Should yo\& have IIl)'quea1icmB."p1aue contaCt me. and AdmiIaIaIradoD ~1...... oc: Ch1 of C1mla Vilfa 1 )'1_ H' ,...L- I OCT 10 ' 96 04: 26PM CQA..~~....~Tf(f. ~~ S1-~f..~9i?=2???Syetem Rttlability P. 8 Fiber Mlle. i ! 8OCIO 1000 7225 8000 1000 4000 I......,..,., Miles I 8000 2000 100D 0 'OIl 1990 1., ,. 1898 ,* ,. ,... "'NO'" ...... 1.....~1 88.'" 99..17'ft1 fHUIS09'e .,"" a.14IM 1t,~ 1989 '890 1891 10_ 1M3 '114 ,. 1996 l ( 'I - A -Jl . /,~ OCT 10 ' 96 04: 28PM COX EXEC STAFF FAX 619/266-5555 1 P.9 Q~M'.~l1~ OF S~ GAtrI"RlmA.UX 1. My name it S~ GauteteIUX IIUl I'am Vice-Presidom TechaUcal J)ev~ of Cox CommUDlcdons San Dieao r'Cox'- 2. I hav.~-ciBht years oflold IDCl maaagement ~e at __ San Dieao S)'ItoD1 (qSystem") m4 fbr the last fourIema)'C11'8 have been mspomib1e for all Sntem enameeriDJ. coastruotioD, IUd uppac1e activides. 3. I have read the forcsoinJ ltUortO Mr. Jay Smith dated Oetober 10, 1996" ucl declare the followias: 4. I ba.vCt.oveueerl the upgrade ofCox~..SystoDl1iom a 450 MIU systaID to a 750 MHz .~,~ OlD Itteatto the boldtstbafliive ~tecl:&an the UPII'Ide. s. !be ~pI4e IUbatantially mcr.aed the Jeliability ottbo Cox SyBem. 1. When tbe cable plant wu uplf8decl to 450 MHz in 1990 to 1 90J, . &or opdo nctwork'wu CODStNcted whiGh decreasecl the number of amplificn in cue. from over 30 to 16. TIaue ueuwae c:oDItnIGted ~l12i!\. Dine flber optic NCeivm with eaoh DOCIe seMclDs apptOXimately 12,000 homes. 0. of the nugor lOurcel of outIpI in. cable network Is ampUfter fail~. With the mma18 .ofamp1t8ers reduced iDhIlf,customeD are ablI to receive a higher cJoplO.of reliability. b. .DuriDa 1995 and 1996. thiI.ame plant WII upareded to 7S0 MHz. ADotber level ofrolia'biliiy wu aobievId durins this upgrade. The Dum_ otfi'bcr optic nodes was iD.creuccl from nine to 143 nodes. The IWD1bcr of 8I1lplifim in caa4e clecreu.cl to six ampliAen. The averap Dumber ofhomea served from. node was Nduce4 to ~ 100 homes per node. c. Any timo the Il\ID1b. of amplifiers in cascades is JeCluced, the 1II0le reliabl. the network. AdditioD&11y, abet optic IlriDgs" were installed duriq t1w 750 MH% upgrade. 1'hcIe J'iDaI wen iDltalled tal euble cbo IyIteD1 to continue ~ operate in the ewnt of I fiber taImre. With the fUrther reductioD in amplifier GIft.. Illd the iDIt:aIl.tlcm offiblJ' riD&I. the cahle network has become atate-of-tbe-ert. d. Whenever a cable Outlp occmrs in our network. detailed lop aze kept indiG&tiq the locadon ofth.e outIge. the time the ouUIp occuzzed, the time it wu beds the 1eAJ1:b gf1he outage, mcItbo Dumber of CUIIOlllOl' hours a:fIrcted. UaIq those lop in the major zip co4es otthe 450 MHz to 7.50 MHz uppade _as a refeIlDCI, the customer ou1ap hoW'll have docreuecI dramatically. Dur1D.s. 17 mODth time .Deriocl :&om J_~ lQ9S thro1Wt Ma:v of 1 fH. the cu.&en:IW o'*F ):2 ~- fl (p)--- OCT 10 ' 96 04: 28PM COX EXEC STAFF FAX 619/266-5555 P.10 J.~?:': . .2- o. houra per month in thoIIlNIS wa 14,909 ~ ho\ll8 of outages (Ill)' outIFI caused by \IPIfIClt activi~ cbiD.a this time paiod ha .. RIDOVIKi from these total.). Ak tho 750 MHz uppede wu aomplete&l the total customer ou. houra wumduccd to 700 hours per IIlOIlfb (1.1IiDg the time period. from 1... 1996 to Sept<<mbor 14.1996). 'lbiI clramatic decrease in WIIDmer 0'" baUD 1\Bther illustrates tblenbI"-d reliability oftba cable plat after aompIedOl1 of the 7S0 MHz uppde. Tho lifo cxpec:tanoy aftbe cable netwoJt has been uteDded by four or five ,.. by tbllnDn.tion of all new fiber. opto elec:troDicl, IDlplifierl. ad aaooiatod cquipmG. ..;l.l.i.&.o.. ,\','J.:.;" ''''III'' 6. ThouJJBl'lCll SI.lbICaD.tlally iDcrtUed86MCe quality in tU Cox System. The roclucticm. of IIQPliiler Clade. im:reued. quality ofreceptiolL .AJsytiDw a cabJe telmsioD sipa1 is lIIJpli1ied the quality of the IiaDal d_pdc.. Recluciq the c1iatage and the IIUDlber of amPlifieD that lipl. travel increIICI dw qUllity ofrecepdolL \ Tbese sipals om be ~ by canier to no1Be rCCIN'j ratios. 11lose zad08 were 45 C/N during the 450 ~ upgrade ad improved to 48 CIN duriDs the 750 MHzuppde. t,.~ .:' Durb1a tbo 7S0MHz UPsredOtl1e, deliF of tho c:able p'11D1 Jueludecl ~.il\l tile sigtllll8ve11 at the clirec1i0lll1 tips (the point 011 the street whm'a the hcNIe ckop . attac1w to the Cable cIiatri~ODP1ant) to allow tba lIec.essary sipal for IICOD.d outletl in the homes. Seconc1azyoudeta needed 10 be ooDsicJerecl dudDa: tho design of the 150 MHz plat. ,. I affirm that fIctIltated herem. co tr\Je aud correct to the belt of ft1Y kDow1edae. iDfonaation wi belief. ~g . . _c " ... ~-..-~~ / Title: Vice-PJwsident. .: Tedmica1 Development Cox CommUDicatioDS Sm DiclO 7. .. b. c. /cl -r'[p) oc;:-- ~-?96-:-iJ';29PMCOX EXEC STRFF FRX 619/266-5555 Com Unit or Vstem perating NalM Cox CO_unlcatloD. SaD Diego Name of Ca . perator Cox CODUDunkation. San Diego Img 519 Peden! Blvd. City San Diego Ownerthlp of Partnership -'F\II/II ",I\il' Ld ~ ":'~'1 for: ICheck One) x Abbreviated C08t of Service FlHng For Cable Network Upgra.s S1ate Call1oruia to the left or the appropriate answet.): Subchapter S Sole Proprietor . :~:C F.....' ',.( . Pre - Approval :OR Note: "PIn.1 A v.1 filing; attagh all Pre-Approval filings, If any, rel~g to the upgrade. , ,~ ng: (Check One) x Note: cable System i. defined in Section 802(7) of the Communications Act. Pre - Approval OR Page 1 of8 ( .(i /.2 -!+/If'' Approved byP _ 11)060.0688 pCode 92105-5416 Other FInal Approvel SVttem Level FCC Poma 1235 FGbruary 1996 6"T"~JWUW~"!'~~ EXEC STAFF FAX 619/266-5555 ~_..3&....~. _t"J,; .4pproved byez-'ANO-06II' Abbreviated Cost of ServIce ,.lIing Por CIIb1e Network Upgrade. Part 1. Qudfloltlon for Upgrade ftllte Adjustment A. lignlflC8nce of Upgrade OualJflcll'tlon 1. Does the upgrade meet the minimum teohnlcal specifications described In the Instruction. for Part 1 Qualification for Upgrade Rate Adjustment, Line 1"? x Ve. No 2. If UNo. was answered In question 1, attach a brief d~SC" rlption of how subscribers to Bale and Cable Programming Service Tier. will benefit form the caplt I Improvements. ,I: _",;. ...~d., :~'.1l~,.~<., .,a._''lf.'~,;'' -. ."~ 3. ro' ,1 r/'I~J'- I Complete the following Items to determine the coat of the capital improvement as a percentage of rate ba. (Investment In cable property, pllnt and eqUIPmr,nt for the area over which the Improvement will be uHd) : I A. B. C. ',;;-:( The net upgrade rate base Total rate base after upgrade Percentage of upgrade to total rate base . . 27~" 41. 54 GUS" B. Used" U.eful Qu,llficatlon ' If this form has be.n completed fOr a pre-approval, PI~ase skip to line 3. 1. Hu the upgrade been completed? VH No. If quntlon 1 .... .ns.....d .y... ente, the - the t, grade was completed and began providing service to subscribers of regulated services: ' >, . " If the Phased-In Approach II elected, attach a description of the subsections invol"ed end the projected dartes on which the upgrade will be completed and. providing .ervlce to subscribers of rat. regulated services within those subsections. 2. 3. Imperial Belch Santee ChulaVlIta NationalCUy Nov-" Feb-M == I , I \ PlIO 2 0'" 1c1-A/ ,./ >, (p . PCCPorm 1235 J~l:m1uy 1996 &_.I~"'IIW1~U~~I"C3X EXEC STl=lFF Fl=lX 619/266-5555 QQ:.JJL.~. ~~ Appmed bye:.!.2s060-0688 Abbreviated COM of Servioe filUng For C.ble Network Upgrades evenue Requirement Computetlon (a) (b) (0) BST CPST. 8ST cps-r. 1. 2. Net Upgrldl R<<Ce BI.I (Worksheet A, Un. 4el Retum on Investment a. "11:8 at RetUrn Percentege b. Computed F1e1um on UPGrldl Rate Ba.. IUne 1 x Une 2a} Allowance for Income Taxes e. Federal Income Tax Rate b. Stat. Income Tax Rato c. Computed Return on Upgrade Rate Base (Lin. 2b) d. Intere8t Ixpense related to upgrade (Workatleet A. Line eel e. Distributions INon-C Corp, Flier. Onlyl f. Contribution. (Non-C C;orp. PUer. Only)..... g. Return Amount:~~b)~~ to Incomet,l( h. Income Tax Allowance Projected Net Impact of Upgrade on Operating Expens.. (Worklheet A, Une 8el Nit Revenue and Incom. AdJuBlmenta Related to Upgrldc. (Worksheet A, Line 12~.1 Total Upgrade Pltvenul Requirement (Line 2+3+4+81 3. ,;i<.""",," Ii';' 4. 15. 6. .2 1. Upgrade Revenue Requirements · (Part II, Line 81 2. Number of Subscribe,. 3. AnnUli Revenue Requirement Per Sub (Un. 11 Un. 21 4. Monthly Network Upgrade Add-on (Une 3 /12) 5. Selected method of ~ub8oribllr recovery: (Cheok Onll, ':! I ' , .. jill · Provide cleaorlption for allool'tion of CPST Revenue Requirement to CP8:Tiers: 11 '':' CERTIFICATION STATEMENT .:1 ;:iq d'; 3I1S196 Pase 3 ofB Pee Porm 1235 FcbNI!'Y 1996 /"7_1{ . ~ 11.'-- /' i ~--l ~lA'.~4! ~~t1L.~m< EXEC STAFF FAX 619/266-5555 ~.JllllI'~II. c;~. m:l34 Approved by~~Oo06" Abbreviated CDtt of S.rvlce Filing far Clbla Network Upgrade. .rator: Cos olb.untc.tiou San DIe CA0329 5IH Worksheet A C08t Assignrnen1:ll MCI AlJooatlone (part 1 ) ($ OOO'e) Line Numbe, .nd Descr! tlon Balance (a) Directly Assigned Cost Elements (b) BS CPST . 1 CPST . er 26.07G 1.222 o 27.291 o o II. '\.~ ..1 ,<I " ':' I" 5. - ~ ( 7r.:f~ 71 6. . 0 7. 2.27S e. 2,346 0 0 0 607 9. INTERIST EXPENSE RELATED TO UPGRADE 1.276 340 10. (130 " . 12. 0 (130) 0 0 FCC Form 123$ P.4ot8 Pabmty 1996 /<:J- ~ A'~/Y 1 Qr:Ll'(!~:11! ~~~~'X EXEC STAFF FAX 619/266-5555 ~clbye6.~.e. Abbreviated Cost of Service Filing for Cable Network Upgrades Name of Operator: Cox Commauteadons Sau DteRo c-UIO (s): CA032' Worksheet A Colt Anlgnmentl and Allocationa (partZl Date of Filing: 3I1SIH ($ 000'8) Allocated Cost Element' Allocation (a) Key Une Number and Description eST CPST - 1 CPST - 2 All Other (d) , 1. Plant and Equipment 4,651 10,S9S 3.876 1 2. Allowance for Fund' Used During Conltruction 218 497 112 ~ I, 13. Other Adjustments 0 0 0 4. TEl' UPGRADE RAT! BASE CS-um Un.. 1 - 3) 4,869 11,091 0 4.058 PROJECTED: 5. Change In Plan:" '',''''-ted Operattn'd" Expent.'f'" ;'1-..',; :,j-'"../ 17 39 14 1 8:' Change In Plant :.Aelated Support'Expensei '.... ' . 0 0 0 7. Upgrade Related Depreciation Expense 406 924 338 1 8. PROJECTID NET IMPACT OF UPGRADI ON OPERATING EXPENSES (Sum Lines 5 - 71 '" 423 964 0 353 9. INTER.IT EXPENSE RELATED TO UPGRADe 228 519 190 1 PROJECTED: 10. Other Cable "evenue j 11. Other Adjuatmentt . 12. NIT REVENUE AND INCOME ADJUSTMeNTS RELATED TO UPGRADE (Sum LInes 10 -11) 0 0 0 0 / '} - A '- (fi <~ FCC Form 1235 February 1996 Paso 5 orB CiT1j::~[':l1!~ EXEC STAFF FAX 619/266-5555 Approved by~,.~..o"' Abbreviated Coat of aervlce Filing for Cable Network Upgt;ldn Name of OEMIr.tor: Cox ConamualcatloDI San DIep CUID (if: CA032' WOrklheM A eo. Assignments and AIIooa1I Date of Filing: 3/15196 (. 000'1) Total Colt Elements (e) Line Number and Description BST CPST . 1 CPST - 2 All Other """", 1. Plant and EQuipment 4,651 10.595 0 10.830 2. Allowance for FundI Used During Construction 218 497 0 S08 3. Other AdJu8tmtnts 14. NET U .-.._E RATIIASE (Sum Un.. 1 - 3) 4,869 lUJJl 0 11.337 PROJECTED; 6. Chanae in Plant,B ,fated Operatin'd"Expen.U." M'", .!6k><i 17 39 0 14 8. Change In Plant'A Hated Support.Excenlei'" 'ir., ' :,,:: 0 0 0 0 7. UDClrade "ellted I epreclatlon Expense 406 !)24 0 94' 8. PROJECTED NET IMPACT OP UPGRADI ON OPERATING EXPINSES (Sum Un.. 5 -7). .: , 423 964 0 9$9 9. INTIRlaT EXPEN.... RILATED TO UPGMDE 228 519 0 530 PROJECTED: 10. Orher Cable "evenue " 0 (30) 0 0 11. -Other Adjustments " , , 0 0 0 0 112. REVENUE AND INCOMI ADJUSTMINTS RELATED TO UPGRADE (Sum Lines 10 -1') 0 (130) 0 0 ona (part I) FCC POtID 1235 Page 6 of8 Febnllry 1996 (''), j,-l-A/ ! ~~~~~::~~PM~~OX EXEC STRFF FAX 619/266-5555 Name of Operator: Franchise CUID; Organiz.tional Level: Date of Filing: AIooMlon Ke (a) 1 Upgrades Cox CommunlcatioDI Sa. D1el0 CA03%9 3/15196 Page 1 ,Allocation Methodology D..crlption \ (b) Channel. Basio ,,' .,~IiON>-' , ,~,; ( .,'",;4:.;:. eps" . ,. ~ .' :~=(:: NCPS~/~:: ,I NCPS..Pmnium Post--R.ebuUd CIwmeJs 18 41 4 11 74 p. 7 on - 1/( () /;2-f{/. Apprcmd by~JOCio.o681 of f, PeroentapI 24.32% SS.41% 5.41% 14.86% 100.0096 Fa: PonD 1235 Pobnw'y 1996 ". .o.~~'!I'.Mtd'J'r~FtI.~ox EXEC STl=lFF Fl=lX 619/266-5555 ~.J....t.~ U. .~.. Approved by e:..lE!J060.06.. Abbreviated Coat of a.rvice Filing Far Cable Network Upgrades Worksheel C: Supplemental DIIte 5JM For Noh of the following property and equipment oategorie. state the gross depreciable balance resulting from the upgrade ", along with the averaae depreciation lif. which Clomprls. the property and equipment balence reported in Worksheet A. Cost of Method of .,. " """ ".., ~.lli.< .1ilI..........,.. "",\>.'; (...1 ~',. ,.,' DeacrlDtlon :i'PHl ii'/'f "-', ,..-(- f-!), ',1.': /:'(jF 1~: :~I;:r " \ ",;"" Uparade Year. DeDreel.tion 1. Headend 2. Tran.mllllon Flcllltl.. and Equipment 3. DI.tribution facilities (Trunk, drop., etc.) 4. Circuit YClulDment (amplifiers, power booster., etc.) 5. g-.lnt.nance Facilities (garages, warehou'88, etc.) 8. M.lntenanoe Vehicles and Equipment -, 7. uildlnas (offloe) .' 8. ffice Fumiture.nd Equipment .... 9. otal Upgrade Rate. Bas. If you wish to dia.lIl1reglllte any of the .bow becauI, they Ire not readily combined or It yOU wish to add others not .hown, report auch belOWI Cost of Method of.. Years 12 12 12 12 12 12 S1t hplofl FCC Porm 1235 FebruaIy 1996 /~ - It '/ { OCT HI ' 96 04: 33PM COX EXEC SHFF Fro< 619/266-5555 Amunptioos AlnmptJOIIIi UHCIID WorlWulet A COIUDUl (a) - Total Anlptd COI.. Line 2 - Allowance for Funds Used Under Construotion Allumea that total rebuild Clom ofS2C5.075.512 i. spenleveoly cmr a 10 month period (June 95 tbrouah Aprll96). Actual Calou1ation : 126.0'75,512 x 11.2S~ 112 motdbJ x 5 mcmths - $1,222,000. LiDo 5 . P1aat 1'Olatcci Opcratfn& Bxpen.CI ildma1Id annual net mcrellle III power COSh of $71,148. LiDo 7 . uparaclt related dcprociatiol\ txpeJII88. All uPlf8de oosta fI1'e depreciated OD a 12 year straight-line balla. Lillo , . Interest ExpcnIc . A~C!. a cepifa1 ~ of S5l)f~'6t aJ.~~~ if abc. 'Ihi. iI oouisteat with the FCC. ,*\imPtion in ~ the .uowoa J J;25%~ ofrcCUrD on ra1Ie bu.. Column (b) . Directly Alllped Colts BlemeDlI Other Although the rebuild wlU inc::rcase plant capedty ft'om 4S0mbz to 7S0 MHz, 0Dl)' SSO ~ wUl be actlvated immed.iam1y" t1\e additioDal200 MHz capacity will'" reserwd for fiJtute uae. ThO .lncnmantal COlt ofthil adcUt10nal capacity (aPProXimately 20% of tho total coat) baa been directly assianed to the OTHBR cate.,.". .... .\;: '...<.l Pqol );2 - ~ .rj ] 1(;1- P.19 Item #12 Meeting Date 10/' 5/96 AMENDMENT TO RESOLUTION #18447 -- Cox Communications: In the Cox Communications public hearing tonight, staff will be recommending two amendments to the resolution. The first of these will clarify the intent of the resolution. The second is in response to Cox's request for additional time to discuss alternative rate structures with staff. The form of this second item allows for any alternative agreement to be brought back to Council on October 22, but if no agreement can be reached, it authorizes the actions contained in the initial resolution. Staff recommends the following text be added to Resolution #18447: 1) "BE IT FURTHER RESOLVED that the intent of these actions is to authorize Cox Communications to institute Maximum Permitted Rates for Basic cable at $9.74 per month, to approve Maximum Permitted Rates for regulated equipment and installation costs as detailed in Form 1205 as attached hereto and incorporated herein by reference and to file a complaint with the Federal Communications Commission (FCC) regarding Cox Communications' CPS-tier Maximum Permitted Rates to the extent that they exceed $17.18 per month." 2) "BE IT FURTHER RESOLVED that Council hereby authorizes staff to continue to discuss the subject rate requests with Cox Communications, with any complaints to the FCC tabled until the conclusion of those discussions, but in no case tabled beyond October 23. If alternative terms can be structured to the satisfaction of both parties, they shall be brought back to Council on October 22 for final consideration." Staff recommends approval of the resolution as amended. Presented by Approved as to form by ~/ :/ /-'11 - ~~/ ff/-<~,'/ Gerald y 9l-n1gJ./'Pt1ncipal Management Assistant c/-~- ~ . ~~~. At!orney_ // \ \ --------.- \ / / 1111), .- ./' u. .1/ r:::r- / I t I' ITEM #12 --- OVERHEADS EXHIBIT A: PROPOSED RATES: DETAIL BASIC CABLE CPS (EXPANDED TOT AL:BASIC+CPS SERVICE) (COX CLASSIC) ORIGINAL PROPOSAL -- 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 REVISED PROPOSAL -- MAXIMUM PERMITTED RATES I MPR as of 1/1/96 $7.74 $17.14 $24.88 Upgrade-related $1.59 $3.52 $5.11 MPR increase request (Form 1235) Cost-related MPR $2.00 $0.04 $2.04 increase request (Form 1240) TOTAL MPR $11.33 $20.70 $32.03 Requested: ACTUAL RATES CHARGED As of 1/1/96 $7.30 $15.90 $23.20 Increase 5/1/96 $0 $3.79 $3.79 Total $7.30 $19.69 $26.99 ;; -fA 10 l r/) 5 I-'l ~ r/) o e: ~ ~ P4 f:-I I-'l P4 ~ ~ N 0\ \0 N ~ ~ ~z <0 ~~ OOE-' >~ ~oo ~O U~ ~ o Uz ~o ~~ OOE-' ~~ >00 ~~ ~ o U ~z zO """"~ ~c ~oo O~ ~ ~ ~ t= ~ ~ ~~ ::g~ ;:J6 ~oo ~~ (\)0 .Du B~ (\) ';>-. 00..0 -S"'O c:: (\) (\) c:: U ..... ~ g p..(\) +-'~ g"'O X ~ N 0\ \0 N ~ N 0\ \0 N ~ (\) ul~ (\) (\) ~ I-< I-< g S ..... ;:j-g 8~ 'x"'" ro ~ 8tl u 0 .t;i U rn 00 .;S t:: u~ x.2 o U o .S ~ ~ t- o C"-. 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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. B. Resolution I (ti41 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 ~. stant Young <Z I ) REVIEWED BY: City Manager~ ~t; /? '(4/5ths Vote: Yes_ No X) In May 1996, Cox Communications institute Va $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 1L.--A- 'If" Item \ ~ , Page 2 Meeting Date 10/15/96 equipment; and 4) Approving proposed cost-based increases in the Maximum Permitted Rates for the Basic Service Tier. BOARD/COMMISSION RECOMMENDATION: N/ A BACKGROUND Rate Structures and Subscribership Cable service rates are structured and regulated as follows: Table 1: 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 Channels, 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 channels 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 channels, 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. 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 l'2f A I Item l1-- , Page 3 Meeting Date 10/15/96 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 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. r '- ~ If ~ ;it Item I ~. , Page 4 Meeting Date 10/15/96 BASIC CABLE CPS (EXPANDED TOTAL: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. 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 . (/ {2- p: - · Item l t-- , Page 5 Meeting Date 10/15/96 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, 1 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. J 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--d.. I . Item \ 7- , Page 6 Meeting Date 10/15/96 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. Equipment and Installation Cost-Based Rate Proposal (1205 Filing) The following chart shows the proposed changes in equipment and installation charges. Due to the fact that the Chu1a 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 Upgrade/Downgrade 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 -f{ Item t ~ , Page 7 Meeting Date 10/15/96 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 their formal response is attached (See Attachment #7). Cox has reported that they are not planning to make any changes in their equipment/installation or cost-based monthly service charges until some future date. These changes would be subject to 30-days prior notice to the City. However, since they would be changing those rates according to the FCC forms already submitted to the City, it would be appropriate to act on those filings now. Staff recommends that the City Council approve the resolution as presented. 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. / ,'--/\ - , Item I.~, Page 8 Meeting Date 10/15/96 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 staff's 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 r'2--A Item !t----, Page 9 Meeting Date 10/15/96 fees in conjunction with filing an appeal of the City's action on Basic rates, such refunds might be required. 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, Form 1235 Upgrade-based rate increase request 3. Cox Communications, Forms 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) 6. Letter from Cox Communications, October 1, 1996 7. Letter from Cox Communications, October 9, 1996 M:\HOME\ADMIN\CABLE\COXl13.tl5 /~1 (7.--A--\ I COUNCIL AGENDA STATEMENT Item~ Meeting Date 10/15/96 ITEM TITLE: Report on Status of Planned Improvements to the I-80S/Telegraph Canyon Road Interchange. SUBMITTED BY: Director of Public Work~ ~ REVIEWED BY: City Manage'\1:\ ~&J\ In February of 1996, staff initiated design ;ftbhs aimed at implementing the final phase of planned improvements at the I-80S/Telegraph Canyon Road interchange. This project is the top priority interchange improvement among those currently programmed in the Eastern Area Development Impact Fee Program. The primary objective of this project is to improve the flow of traffic along eastbound Telegraph Canyon Road through the interchange, thereby complementing previous improvements made for westbound travel. Initial work efforts conducted in concert with Caltrans' staff have focused on defining the capacity and safety problems that need to be addressed and identifying improvement options to address each of those problems. A community meeting was held on August 22, 1996, at the Elks Lodge on Telegraph Canyon Road to obtain input from residents in the area. The next stage in the process is to prepare environmental studies and identify a preferred alternative. Construction of the preferred alternative, expected to cost approximately $1 million, is programmed for the 1996/97 fiscal year. Staff has prepared this report to update council on that progress. RECOMMENDATION: That the City Council accept staffs report regarding the status of planned improvements to the I-80S/Telegraph Canyon Road interchange and direct staff to proceed with environmental studies. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: The purpose of this project is to improve the flow of traffic along eastbound Telegraph Canyon Road through the interchange at 1-805. The project is needed because of a combination of capacity problems and safety concerns that exist at the intersection. These problems, shown on Exhibit A, are described as follows: A. There is only one through lane for eastbound traffic at the interchange. B. Eastbound traffic in the inside through lane is trapped into the left turn pocket. C. The proximity of the traffic signals along Telegraph Canyon Road at Halecrest Drive and the northbound ramps results in inefficient operations and reduced service levels. D. Vehicles turning left into Halecrest Drive queue up into the intersection of Telegraph Canyon Road and the northbound ramps because of the limited stacking distance. E. Vehicles turning right from the northbound off-ramp attempting to access the left turn I ~--, I~ Page 2, Item _ Meeting Date 10/15/96 pocket to Halecrest Drive often create a safety hazard by cutting across eastbound through traffic. It should be noted that, although Telegraph Canyon Road is a City street, this segment is within the limits of Caltrans' freeway and the City can only do the improvements which are approved by Caltrans. Caltrans can require the City to do additional work which they deem necessary as part of any permit they may issue to perform work within their area. One additional problem shown on the Exhibit 'A' which is not on Telegraph Canyon Road itself, but is a problem in Caltrans' view is the lack of stacking capacity on the northbound off ramp. A series of improvement options was developed to address each of the above capacity problems and safety concerns. These options are based on a review of design opportunities and constraints as well as their effect on projected traffic conditions along the Telegraph Canyon Road corridor. Any combination of the following improvement options could be included in the preferred project alternative. 1. Widen eastbound Telegraph Canyon Road to provide a second eastbound through lane at the interchange. 2. Reconfigure eastbound Telegraph Canyon Road to eliminate the trap lane. 3. Add a raised median on the south side of the Halecrest left turn median to prohibit access from the northbound off-ramp. 4. Signalize the existing access to the adjacent shopping center located midway between Halecrest and Crest. 5. Close the median at Halecrest and prohibit all left turn movements at this intersection, maintaining the traffic signal to provide gaps for vehicles turning right from Halecrest onto westbound Telegraph Canyon Road. 6. Widen the northbound off-ramp to provide two right turn lanes onto Telegraph Canyon Road. The project purpose and need, as well as the above improvement options were presented at the community meeting held on August 22, 1996. Input was provided by over 40 residents in the area. The comments can be generally summarized as follows. A. There was substantial opposition to the closure of the median at Halecrest. Residents want to maintain the left turn access into Halecrest. B. Residents asked if alternative measures could be considered, including constructing ramps at J Street, realigning the northbound off-ramp to connect to Halecrest, closing driveways to the shopping center and gas stations on Halecrest, removal of the southbound loop off-ramp, and signal timing modifications. C. Several residents complained about current problems of speeding cars and nOIse on ( ?J- 2-- Page 3, Item t?r Meeting Date 10/15/96 Halecrest and other neighborhood streets. D. Several residents and businesses were concerned that prohibiting left turns into Halecrest would create a significant problem for emergency vehicle and truck access. Truck access to the shopping center and gas stations was identified as a particularly difficult problem which could affect an even larger area due to required rerouting of large semi trucks making deliveries to the center and service stations. Those trucks would have to be completely rerouted because u- turns could not be made by those vehicles. Based on input received at the community meeting, two additional improvement options were developed and are in addition to items 1-6 above: 7. Prohibit left turn movements out of Halecrest onto Telegraph Canyon Road (note: this is an alternative to option #5 described above). 8. Improve the shopping center driveway at the new signalized access to facilitate increased traffic flows in and out of the center. Based on the above improvement options two possible alternatives were subsequently developed by staff. Alternative 1 (Exhibit B) is the original proposal based on Caltrans' initial input and includes improvement options 1-4, 6, 8 and full median closure at Halecrest (option 5). After reviewing the concerns brought out at the public meeting, particularly those of the local businesses requiring large semi-truck access, staff no longer recommends this alternative. Alternative 2 (Exhibit C) includes improvement options 1-4, 6 and 8 as described above, but only a prohibition of left turns out of Halecrest onto eastbound Telegraph Canyon Road by constructing a partial median with turn pocket which allows eastbound left turning movements onto Halecrest (option 7). Staff believes that this alternative appears to address the majority of the resident's and business' concerns and is recommending this as the preferred alternative. Caltrans, which initially required the closure of Halecrest (alternative 1) must approve this change to the proposed work. Staff has presented this alternative to Caltrans' staff for their input and they have given their preliminary approval of this alternative. Environmental studies to be conducted will address potential impacts to air quality, noise, traffic, visual, hazardous materials, etc. Exhibit D shows the proposed signalization work at the shopping center entrance with the possible driveway widening to facilitate traffic flow. The next steps for the process are summarized as follows: 1. Complete environmental studies. 2. Conduct community meeting/public hearing. 3. City Council approval of preferred project. 4. Prepare final design plans. Staff noticed all owners and residents a minimum of 1000 feet from the project for the August 22,1996 public forum. On the east side ofl-80S north of Telegraph Canyon Road, the notices were sent beyond the 1000 foot mark to include all homes south of "J" Street and west of Crest and Lori Lane. That notice was sent to nearly 1000 property owners and/or residents. Notice of tonight's Council 1~.~ Page 4, Item I '} Meeting Date 10/15/96 consideration of this report was sent to that same list. FISCAL IMP ACT: The funding for this overall project is split into three different accounts depending on the phase of work. The three phases of work are: 1) Project Management, 2) Project engineering and design, and 3) construction. For the first phase of the work the City, working with the development community, has hired the firm of Smith and Kempton to act as project managers and liaison with Caltrans for this and two other freeway interchange projects as well as transportation advocacy. This phase of the project is funded in the operating budget under account 621-6212 from Transportation Development Impact Fees (TDIF). The total funding to date for Smith and Kempton's current contract for the project management and advocacy, which includes this interchange, is $186,000. That amount also includes project management work on two other interchange projects (Orange Avenue and Palomar Street) and advocacy towards obtaining funding for SR-12S and Orange Avenue. An amendment to the contract approved by Council in August, 1995 is necessary to oversee completion of the work on the Telegraph Canyon/I-80S interchange as well as the other interchanges and is a companion item on this agenda. The proposed amendment provides an additional $178,000 in funding for completing the project management activities on these three interchanges and continued transportation advocacy. The engineering work to complete the Project Reports (PR) and Project Study Reports (PSR) on these three interchanges, as required by Caltrans, and the subsequent contract plan and specification preparation for the Telegraph Canyon Road and Orange Avenue interchanges, is being done by Rick Engineering. This part of the project was funded from TDIF funds in the CIP budget as project No. STM327 (I-80S Project Study Report(s)/Project Report). The total amount budgeted for all of this phase of the work, including study work at the other two interchanges, is $SSO,OOO. In addition, the CIP budget includes project STM-304 (I-80S/Telegraph Canyon Road Interchange Improvements Phase II) to fund the construction of these improvements. That project, which totals $1,700,000 in TDIF funds, includes $8S0,000 through the current fiscal year. The remaining funding is proposed to be included in the FY 1997/98 CIP budget. Other CIP projects are proposed to complete the construction of the other two interchanges. Attachments: Exhibit A - Existing Conditions Exhibit B - Improvement Alternative 1 Exhibit C - Improvement Alternative 2 Exhibit D - Shopping Center Entrance Improvements M:\HOME\ENGINEER\AGENDA \805TCR.CLS File 0730-95-HX037 0735-10-STM327 f?J--4 .[".~:.'.'.'." If ,;. . . .Ii! :..c.:.:::::: .........,:.::..~,:~}f. :WF:~',;;J,~ ilL i.. ." .C' :: : ',: )/~'.'.}::"'" I.L /. '<iL ~'.........,. ',:~ 'f,:."...,';.':,'" .., .::::::::...... .' .' . .,:...,... ....:.... ...,} ;': , . ,"0 ...::.:... .-' ..,.:-:::;;.,. ~.' ":. 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",:..., ,':,;;;;::: :;;;::i:::;:::, ,'::;;::' ",,," ,/, wi",' , , c::; (;) it~~:::,;'::',~",:, _ _ ::-",::,:,,",::::;;:,::,,:.:,~' .... e:;: .' ......, ........ ,.NoRtHaOUND Off,ftAt.4I'.:",;'/ .:: '.' ~2l ~~ ....~~ .~fS Czj9:. ....................D~ ~~ ......'... :.~,~:::;~.::;:{~. . '. . liP;, ...,:$, .:: ...~ <; , ,:<, ;,,~,{'.~)' .. ',.:- .!.~~/.:.. --:/ ...::::..:.... . 1 ',.:./ .../(:X(~. ........7J.:~~?. ,.....'..., ,....1."........... ............ .~;}.........""................:.. .......,.,.t:80S \ N1€.~S ,,~"".'i.~ ~(~ -.- ~-..~ ~~~~ ~ I~ CIlY OF CHUlA VISTA COlTNCIL INFORMATIONAL MRMORANDlTM October 9, 1996 TO The Honorable Mayor and City coun: 6~~ Jobo D. Goss, City Manager .JL'1 U _~ 1\ Request for Information on Departmental Oversight within the City Manager's Office FROM SUBJECT At the October 1, 1996 Council meeting, Councilmember Rindone requested information on current departmental oversight assignments within the City Manager's Office. Following is the current departmental assignments for the Assistant City Manager and the Deputy City Manager along with an attached listing of current project assignments. These lists are provided for your information. DEPARTMENTAL ASSIGNMENTS Assistant City Manager Deputy City Manager Police Parks & Recreation Fire Library Planning Personnel Public Works Risk Management Engineering Nature Center Building and Housing Finance Community Development Environmental Resource Manager Transit Management & Information Systems Agenda Resource Conservation Coordinator Legislative Program Public Information Office M:\HOME\ADMIN\SID\ASSIGN .MEM /(P Cl-( ASSIGNMENTS OF PROJECTS IN CITY MANAGER'S OFFICE City ManaQ:er Oversight of all projects Bayfront negotiations Otay Ranch jurisdiction ACM Morris Maior Projects: Sharp/Columbia HCA contract negotiations SDG&E Corporation Yard negotiations Computer Aided Dispatch/800 MHZ Sewer: Clean Water Program - general Negotiations with City of San Diego/AFFORD re: new metro sewer contract Ombudsman Legislative Activities: Sacramento lobbyist Legislative Program overview RFP for advocate MSCP University Site Fire Station 4 Hartson's ambulance service Contract extension RFP for service provider Cardrooms Review of license violations by Chula Vista Bay Club Limited Disaster Preparedness General Administration . City Council liaison/staff support City CounciV Agency agendas Agenda meetings Review and sign off Day-to-day city operations Oversight of assigned departments Delivery of technical services (DOTS)- coordination of meetings Personnel Issues DisciplinarylPersonnel actions Labor negotiations Economic Development City Corporation Yard sale BECA/Westem Regional Bioprocessing Center Hi- Tech/Bio- Tech IDEC Water Park Auto Park - Phase II fG tL - (;L Land Use San Miguel Ranch Sunbow General Corporation Yard negotiations (altern SDG&E site) Otay Ranch: St. Claire Interagency Liaison Interagency Water. Task Force SDG&E School Districts Pacific Bell DCM Krempl CIP/Budget Capital Improvement Project Major Projects: Solid waste issues/transfer station Public info., contract admin., Chamber Visito Center Otay Valley Regional Park Otay Ranch Annexation Otay Ranch Development Agreements Otay Ranch Tentative Map Environmental Environmental Resource Manager Air quality programs - telecenter, alternative fuel vehicles CO2 reduction and greenfleets program Telecommuting Fuel cell buses Recycling programs Administration General Oversight of assigned departments Council agenda review - support Discipline/Personnel issues Transportation Transportation development phasing ordinanc Daley Rock Quarry follow-up MIS/Library Technology/Smart Communities coordination M:\HOME\ADMIN\ASSIGN.MGR - October 9, 1996 INFORMATION MEMORANDUM SEP 2 6 September 24, 1996 TO: Councilman Jerry R. Rindone / A~ John D. Goss, City ManagerJU. ~ ~'l Louie' . Director of Management and Information service# olleen M. Kelly, Admims r. nalyst II~ Research Request on Internet E-mail VIA: FROM: The purpose of this memo is to respond to your request for additional information on a recent E-mail article dealing with alleged conditions at the Otay landfill. Staff has reviewed the Internet e-mail entitled "Chula Vista agrees to smelly deal", which was retrieved from the Internet on September 17, 1996. The item was posted on a server entitled "Electriciti", owned and operated by a locally based Internet Service Provider. The author of the article, who uses the title "sdissues", is a client of this company. A company spokesperson declined to reveal the identity of this client, but did offer that individual's direct e-mail addresswhichis..sdissues@sdissues.com... The City Attorney's office was asked if libel and slander laws were applicable to Internet communication and received an affirmative response from Mr. David ShoHs who is serving the City on a contract basis. Mr. Sholis noted that in order for something to be considered libelous or slanderous, it must be a statement of fact and not simply an expression of opinion. Careful examination of the article would be required by the City Attorney staff to determine whether there are grounds for legal action. > Should you wish to pursue this course of action, a formal Council referral would be in ~ ------ - - - attachment: E-mail message of 9/17/96 cc: Shirley Horton, Mayor Councilmember John Moot Councilmember Scott Alevy Councilmember Steve Padilla llo b- I PoIution in Chula VISta http://www.electriciti.com/-sdissueslcv1.html Chula Vista agrees to smeJly deal Casey Stengel would have known how to describe just how fouled up the county's trash system is. It was Stengel, as manager of the hapless 1961 Mets basebaH team, who looked down his bench and wondered, "Doesn't anyone here know how to play this game?" Given all the recent self-induced calamities in the countis trash system, that is a question many in San Diego are beginning to ask about the County Board of Supervisors -- the group in charge of fixing what many are describing as the most ill-managed trash system in America. Consider some of the latest misadventures at the county -- and yes, despite the headlines about the trash crisis, there are still plenty of strange dealings that have not made their way into your local daily or business paper. The Otay Landfill, for example, just took taxpayers for a $10 million bath. This fiasco began in the early '90s, when the federal government seized the assets of Great American Savings, one of San Diego's largest Savings and Loan. Among the assets was a 600-acre piece ofland next to the Otay LandfiH. In 1993, the feds sold the land to an outfit managed by PacWest Group for $10.5 million. Soon after, an environmental report prepared for PacWest found the land was contaminated with poisonous landfiH gas, methane and polluted water from the adjacent county-operated Otay Landfill. "Hazardous substances have been identified on the subject property," said a report marked CONFIDENTIAL, obtained from the FDIC and prepared for PacWest by Robert Johnson of San Diego-based GEOCON Environmental Consultants. "The environmental concerns associated with iandfiH gas include the explosive nature of methane. Landfill gas also typically contains hazardous substances and gas that are transported by landfiH gas. " In other words, if the methane from the landfill doesn't blow you up, the "benzene, methyl chloride, hydrogen sulfide, and other gases" will poison you. The report goes on to describe pollutants in the water, and says clean-up would cost anywhere from $10 million to $15 million. That's when the PacWest asked for -- and received with interest -- its money back. Earlier this summer, the land went back on the market, and sold for $251,000, said government spokesman Steve Katsanos. A loss to the taxpayers of more than $10 million, Katsanos said. Not only did the taxpayers get soaked, the County of San Diego has gone back for more. As part of an annexation agreement for the 20,OOO-acre Otay Ranch project, the County of San Diegodemanded that the City of Chula Vista de-annex the Otay landfill from the city's jurisdiction and environmental control. However, with a few ... unusual caveats. The agreement calls for Chula Vista to allow the county to run the Otay landfill "without limitation, restriction, or interference." And, the pact says, Chula Vista must ignore any "dust; noise; vibrations; and any or all chemicals or particles suspended (permanently or temporarily) in the air and wind including but not limited to methane gas; odors; fumes; fuel particles; excrement from seagulls; and the free and unobstructed passage of below the surface ofleachate and other pollutants -- now and in the future." Exactly what PacWest found when it bought the property next door. The nasty stuff that is still there. 10f3 f (0 h- 2- 09/17/96 08:26:47 ----..---- -,.~---..... Ppllution in Chula Vista http://www.electriciti.com/-sdissueslcv1.htmf If, in the future, the City of Chula Vista decides that there are environmental problems at the Otay landfill that are too big to ignore -- as has occurred at the San Marcos, Ramona, and many other landfills in California -- and ifit tries to seek remedies for these problems, then the pact states that Chula Vista "shall pay for all of the County's costs associated with the (landfill) closure." That's a ticket worth tens ofmilIions of dollars. "This is not just a recipe for environmental disaster, its a reward for not enforcing the law" said Rick Hinkle, who brought these documents to the attention of the Chula Vista City Council via e-mail. "But they still haven't replied, he says. To other constituents, Chula Vista Mayor Shirley Horton denied that the city is giving up any environmental protections at the landfill. She also assured her constituents that, under the County's control, the landfill will be safe, and clean, and economical. "That's a joke," said Hinkel . "For the last month the County has been in court with the City of San Marcos, and they have said over and over again that San Marcos is unreasonable because they actually expect the county to live up to its word and run a safe landfill. They say in court that running a clean landfill all the time is impossible. That's what they told the state regulators, too, by the way, who didn't listen and fined the County more than $100,000 for polluting a stream near the San Marcos landfill. Well, that isn't what they are saying in Chula Vista. They are saying they can run a clean dump. And I'm a little surprised people down there are not listening to what happens outside ofChula Vista. If the county's record is any indicator, they'll hear about it sooner or later." The problems in Chula Vista are just the tip of trash problems throughout the County. To solve this crisis, instigated by the failure of a $130 million recycling plant in San Marcos, County Supervisors set up a Solid Waste Authority (SW A) to t~ke over the system. But recent correspondence between the SW A and the County reveal that rather than working together to solve the problem, the two sides are just steps away from declaring war on each other. "Information has reached my desk this afternoon that the Authority's efforts to obtain a rating for its bond issue have been seriously and perhaps irreparably injured by someone inside the County," wrote SW A lawyer Betty Burnett in an August 30 letter to County Counsel lohn Sansone. That someone she identifies as William Kelly of the County Auditor's office. Burnett says that Kelly told a bond rating service that the SW A will have to use the proceeds from its first revenue bond to repay the county tens of millions of dollars the county has recently invested in subsidizing the trash system. (Earlier this year, County Supervisors underwrote over $100 million in a buyout of the recycling plant in San Marcos. The County now wants to be repaid.) The bond rating people didn't want to hear that. Kelly's statements that the SW A had major debts, even before it officially took over the landfill system, were "irresponsible and unethical in my opinion, and apparently a deliberate act of sabotage designed to irreparably injure the Authority's credibility and ability to access the bond market," according to the letter. Those sound like fightin' words. And if these differences are not resolved, several county supervisors have said publicly that the County of San Diego will have to follow the example of Orange County and declare bankruptcy. And oae more fly in the ointment: Some legal experts fear that the federal government may presp-nt the County -- or the Solid Waste Authority -- with a bill for the $10 million it just lost at the Otay Landfill. A fact so far undisclosed on the County and SW A bond disclosure statements. 20f3 lrob - ~ 09/17/96 08:27:01 p,oDution in Chula VISta http://www.electriciti.com/-sdissueslcv1.htmJ Perhaps the City Council of Chula Vista wi11lend a hand. Again. Because, apparently alone among major cities in this county, this City Council is convinced that despite reams of evidence to the contrary, the San Diego County Board of Supervisors do, indeed, know how to play this game. Back to [San Diego Issues Home Page] [e-mail us your thoughts) ~ 30f3 t l, b- 4 09/17/96 08:27:02