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Home My WebLink AboutAgenda Packet 2006/06/13 ""~::8.;..; ,-,,,(101 penaity oj p9rjury "[[1..1, i c.:n ~(~ ed by the City of Chula Vista in the :' ~ ~ e City Clerk and that I posted this .....,. ~ ~~ n the bulletin board according to ~~~~ . {CITY OF t requ r ments. CHULA. IC'T r,ah V~.~ Stephen C. Padi Ila, Mayor Patricia E. Chavez, Councilmember David D. Rowlands, Jr., City Manager John McCann, Councilmember Ann Moore, City Attorney Jerry R. Rindone, Councilmember Susan Bigelow, City Clerk Steve Castaneda, Councilmember June 13,2006 6:00 P.M. Council Chambers City Hall 276 Fourth Avenue CALL TO ORDER ROLL CALL: Councilmembers Castaneda, Chavez, McCann, Rindone, and Mayor Padilla PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE SPECIAL ORDERS OF THE DAY · DID YOU KNOW...ABOUT THE FIRE DEPARTMENT'S NEW FIRE SAFETY HOUSE? Presented by Justin Gipson, Fire Marshal. CONSENT CALENDAR (Items 1 through 9) The Council will enact the Consent Calendar staff recommendations by one motion, without discussion, unless a Councilmember, a member of the public, or City staff requests that an item be removed 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. Items pulled from the Consent Calendar will be discussed immediately following the Consent Calendar. 1. APPROVAL OF MINUTES of May 4, 2006. Staff recommendation: Council approve the minutes. 2. WRITTEN COMMUNICATION Letter of resignation from Tracy Means, Member of the Resource Conservation Commission. Staff recommendation: Council accept the resignation and direct the City Clerk to post the vacancy in accordance with the Maddy Act. 3. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA RATIFYING CITY STAFF'S ACTION ON APPROVING CHANGE ORDER NO.2 WITH METROPOLITAN CONSTRUCTION TO COMPLETE THE "CMP STORM DRAIN PIPE REHABILITATION" PROJECT (DR-165), AND TRANSFERRING THE AMOUNT OF $18,146 FROM CAPITAL IMPROVEMENT PROJECT "WESTERN CHULA VISTA INFRASTRUCTURE" (GG-188) TO DR-165 FOR SAID PURPOSE (4/5THS VOTE REQUIRED) In November 2005, the Council awarded a contract in the amount of $194,774 for the storm drain pipe rehabilitation project. During the course of construction, staff discovered that the existing pipe at the Fig/Guava site had a low point just below an existing block wall. Adoption of the resolution approves a change order for the additional work required to complete the project. (General Services Director) Staff recommendation: Council adopt the resolutions. 4. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS, A WARDING THE CONTRACT FOR THE "MEMORIAL BOWL RENOVATIONS IN THE CITY OF CHULA VISTA, CALIFORNIA (PR-272)" PROJECT TO C.D.M. CONSTRUCTION, INC. IN THE AMOUNT OF $119,302.90, AUTHORIZING AN INTER-PROJECT TRANSFER OF RCT FUNDS FROM AN EXISTING PROJECT, GG-166, "HVAC EQUIPMENT UPGRADES," AND REDUCING THE APPROPRIATION OF STATE RECREATION GRANT FUNDS (4/5THS VOTE REQUIRED) Three sealed bids were received for the Memorial Bowl Renovations project. Adoption of the resolution accepts the bids, awards the contract and transfers funds for the project, the scope of which primarily includes rehabilitation of the amphitheater seating, walls, and walkways and the installation of a new dedication monument within Memorial Park. (General Services Director) Staff recommendation: Council adopt the resolution. 5. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING THE FINAL REPORT OF EXPENDITURES FOR THE "EMERGENCY DRAINAGE FACILITY REPAIR WORK. ON FIRST A VENUE, BETWEEN H STREET AND SHASTA STREET," AND RATIFYING THE ACTIONS OF THE CITY MANAGER AND DIRECTOR OF GENERAL SERVICES FOR MAKING AND EXECUTING A CONTRACT FOR SAID EMERGENCY REPAIR WITH T.e. CONSTRUCTION COMPANY, INC. (4/5THS VOTE REQUIRED) In February 2005, the Police Department notified Public Works Operations that a sinkhole caused by failed storm drain facilities had developed along First Avenue, between H Street and Shasta Street. In accordance with emergency provisions ofthe City Charter staff contracted the services of T.C. Construction Company, Inc. for the repair. The rePair was completed and the street reopened to ve~icular traffic in !une 2005. Adoption of the resolution accepts the final report of expendItures for the repaIr work and ratifies the actions of the City Manager and General Services Director to execute the contract. (General Services Director) Staff recommendation: Council adopt the resolution. Page 2 - Council Agenda http://www.chulavistaca.gov June 13, 2006 6.A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING FOR FILING THE FINAL ENGINEER'S REPORT FOR ASSESSMENT DISTRICT 2004-1 (DIXON DRIVE) B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING THE DEFERRAL OF ASSESSMENTS AND ESTABLISHING THE RATE OF INTEREST OF FIVE PERCENT PER YEAR AND THE FINANCING PERIOD OF A MAXIMUM OF TEN YEARS APPLIED TO THE DEFERRALS FOR ASSESSMENT DISTRICT 2004-1 (DIXON DRIVE) C. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE PLACEMENT OF A LIEN ON THE ASSESSED PROPERTY AND THE COLLECTION OF THE ASSESSMENT AT THE SAME TIME AND IN THE SAME MANNER AS OTHER CITY TAXES ARE COLLECTED FOR ASSESSMENT DISTRICT 2004-1 (DIXON DRIVE) In September 2005, the Council awarded a contract in the amount of $574,433.75 for the "Dixon Drive Between Naples Street and Oxford Street in the City of Chula Vista, California (STL-302)" project to Scheidel Contracting and Engineering Inc. The work is now complete, and adoption of the resolutions accepts the filing of the Engineer's Report on the cost of construction, approves the deferral of assessments, establishes the rate of interest and financing period applied to deferrals for assessment, and authorizes the collection of assessments on the County tax roll. (General Services Director) Staff recommendation: Council adopt the resolutions. 7. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ESTABLISHING THE APPROPRIATIONS LIMIT FOR THE CITY OF CHULA VISTA FOR FISCAL YEAR 2006/2007 Article XIIm of the California Constitution, approved by the voters in 1979 and commonly referred to as the Gann Initiative, requires each local government to establish an appropriations limit by resolution annually. The purpose of the limit is to restrict the spending of certain types of revenues to a level predicated on a base-year amount and increased annually by an inflation factor. Adoption of the resolution establishes an appropriations limit of $446,907,029 for Fiscal Year 2006/2007. (Finance Director) Staff recommendation: Council adopt the resolution. 8. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA MAINTAINING THE EXISTING CITY INVESTMENT POLICY AND GUIDELINES The City has an existing Investment Policy and Guidelines to ensure the prudent management of idle cash. State law requires that the Investment Policy and Guidelines be adopted by resolution of the City Council on an annual basis, after being reviewed to ensure consistency with the overall objectives of preservation of principal, liquidity, and yield, and its relevance to current law and financial and economic trends. (Finance Director) Staff recommendation: Council adopt the resolution. Page 3 - Council Agenda http://www .chulavistaca.gov June 13, 2006 9. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WANING THE FORMAL CONSULTANT SELECTION PROCESS, APPROVING AN AGREEMENT WITH THE CENTRE FOR ORGANIZATION EFFECTIVENESS FOR STAFF PROFESSIONAL DEVELOPMENT CONSULTANT SERVICES, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT The proposed agreement is the second consultant assignment with The Centre this fiscal year. It provides management and executive leadership academies for the City. Since the total consultant fee for both agreements exceeds $50,000 this fiscal year, Council approval is required. Staff has recommended that the Council waive the formal consultant selection process and enter into the second agreement with The Centre based on the group's qualifications and experience, the limited market for this expertise, and satisfactory work performed on previous professional staff development consultant assignments. (Human Resources Director) Staff recommendation: Council adopt the resolution. ITEMS REMOVED FROM THE CONSENT CALENDAR PUBLIC COMMENTS Persons speaking during Public Comments may address the Council on any subject matter within the Council's jurisdiction that is not listed as an item on the agenda. State law generally prohibits the Council from taking action on any issue not included on the agenda, but, if appropriate, the Council may schedule the topic for future discussion or refer the matter to staff. Comments are limited to three minutes. PUBLIC HEARINGS The following items have been advertised as public hearings as required by law. If you wish to speak on any item, please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. 10. CONSIDERATION OF AN AMENDMENT TO THE MASTER FEE SCHEDULE TO INCREASE THE NATURE CENTER ADMISSION FEE The Nature Center's current admission fees became effective in September 2003, following the opening of the David A. Wergeland Shark & Ray Experience and Eagle Mesa exhibits. Admission fees have been re-evaluated in anticipation of the completion of the latest major expansion and upgrade of exhibits. It is recommended that the fees be modestly increased after the grand re-opening in July. (Nature Center Director) Staff recommendation: Council conduct the public hearing and adopt the following resolution: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE MASTER FEE SCHEDULE TO INCREASE THE NATURE CENTER ADMISSION FEE EFFECTIVE FOLLOWING THE OPENING OF THE WERGELAND FAMILY DISCOVERY CENTER Page 4 - Council Agenda http://www.chulavistaca.gov June 13, 2006 11. CONSIDERATION OF APPROVAL OF A TENTATNE MAP TO SUBDNIDE 14.58 ACRES AT 825 EAST PALOMAR STREET INTO A ONE-LOT CONDOMINIUM PARCEL (pCS 06-02; APPLICANT: LDM SUNBOW, LLC) LDM Sunbow, LLC, submitted an application for a tentative subdivision map to convert 336 existing apartments to a condominium project containing 336 individually-owned residential units, known as Missions at Sunbow. Adoption ofthe resolution approves the tentative map and its conditions. (Planning and Building Director) Staff recommendation: Council conduct the public hearing and adopt the following resolution: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AND ESTABLISHING CONDITIONS OF A TENTATNE MAP TO DNIDE INTEREST IN 14.58 ACRES AT 825 EAST PALOMAR STREET FOR A ONE-LOT CONDOMINIUM PARCEL CONTAINING 336 RESIDENTIAL UNITS ACTION ITEMS The items listed in this section of the agenda will be considered individually by the Council, and are expected to elicit discussion and deliberation. If you wish to speak on any item, please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. 12. CONSIDERATION OF APPROVAL OF THE PUBLIC WORKS OPERATIONS DEPARTMENT'S STRATEGIC BUSINESS PLAN (Continued from May 23, 2006) In developing a Strategic Business Plan for Public Works Operations, several issues were identified that will affect the department in the next five years. Staff has established goals to address those issues proactively and has developed performance measures to track the progress in achieving those goals. (public Works Operations Director) Staff recommendation: Council adopt the following resolutions: A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE PUBLIC WORKS OPERATIONS DEPARTMENT'S STRATEGIC BUSINESS PLAN B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FISCAL YEAR 2006 BUDGET BY APPROPRIATING $96,600 FROM THE AVAILABLE BALANCE OF PUBLIC FACILITIES DEVELOPMENT IMP ACT FEE FUND TO PURCHASE EQUIPMENT (4/5THS VOTE REQUIRED) Page 5 - Council Agenda http://www .chulavistaca.gov June 13,2006 13. CONSIDERATION OF ADOPTION OF A HOLIDAY FESTIVAL GUIDELINES POLICY The Council requested that the City Attorney prepare a Council Policy to provide guidance to the Recreation Department for the selection process participation in the City's Annual Holiday Festival. (City Attorney) Staff recommendation: Council adopt the following resolution: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING A COUNCIL POLICY REGARDING HOLIDAY FESTIVAL GUIDELINES 14. CONSIDERATION OF AWARD OF CONTRACTS FOR POLICE INITIATED TOWING AND STORAGE SERVICES AND AMENDMENTS TO THE POLICE- INITIATED TOWING SERVICE RATE SCHEDULES The Police Department recently completed a request for proposal process to select qualified towing operators to provide police initiated towing and impound services. Four companies were selected. Adoption of the proposed resolutions awards the contracts for police-initiated towing and storage services, amends the rate schedule, and authorizes the department to make annual changes to the rate schedule. (Police Chief) Staff recommendation: Council adopt the following resolutions: A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING PROPOSALS AND AWARDING CONTRACTS FOR POLICE INITIATED TOWING AND STORAGE SERVICES B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE POLICE INITIATED TOWING SERVICE RATE SCHEDULE, ELIMINATING THE TOW REFERRAL FEE AND IMPLEMENTING A TOW LICENSE FEE, AND AUTHORIZING THE POLICE DEPARTMENT TO MAKE ANNUAL CHANGES TO THE POLICE INITIATED TOWING SERVICE RATE SCHEDULE OTHER BUSINESS 15. CITY MANAGER'S REPORTS . Discussion regarding the status of the Jade Bay Mobilehome Park bankruptcy proceedings. (Assistant City Manager Smith) 16. MAYOR'S REPORTS . Ratification of appointment of Jeff Justus to the Design Review Commission. 17. COUNCIL COMMENTS Page 6 - Council Agenda http://www .chulavistaca.gov June 13, 2006 CLOSED SESSION Announcements of actions taken in Closed Session shall be made available by noon on Wednesday following the Council Meeting at the City Attorney's office in accordance with the Ralph M Brown Act (Government Code 54957. 7). 18. CONFERENCE WITH LEGAL COUNSEL REGARDING SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(b) One Case 19. CONFERENCE WITH LEGAL COUNSEL REGARDING INITIATION OF LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9( c) One Case 20. CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(a) Reyes v City of Chula Vista (USDC 05 CV 2309) ADJOURNMENT to the Adjourned Regular Meeting of June 15, 2006 and thence to the Regular Meeting on June 20, 2006 at 6:00 p.m. in the Council Chambers. In compliance with the AMERICANS WITH DISABILITIES ACT The City of Chula Vista requests individuals who require special accommodations to access, attend, and/or participate in a City meeting, activity, or service request such accommodation at least forty-eight hours in advance for meetings and five days for scheduled services and activities. Please contact the City Clerkfor specific information at (619) 691-5041 or Telecommunications Devices for the Deaf (TDD) at (619) 585-5655. California Relay Service is also availablefor the hearing impaired. Page 7 - Council Agenda http://www .chulavistaca.gov June 13, 2006 MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA May 4, 2006 6:00 P.M. An Adjourned Regular Meeting of the City Council of the City of Chula Vista was called to order at 6:08 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Councilmembers: Castaneda, Chavez, McCann, Rindone, and Mayor Padilla ABSENT: Councilmembers: None ALSO PRESENT: Assistant City Manager Thomson, Assistant City Attorney Hull, and Assistant City Clerk Norris PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE WORKSHOP 1. MOBILEHOME PARKS IN CHULA VISTA The Council explored mobilehome park matters with the mobilehome park community. Assistant City Manager Thomson introduced Planning and Building Director Sandoval; Assistant Director of Building and Housing Remp; Chris Anderson, Field Operations Manager for the State Department of Housing and Community Development; and Housing Manager Mills. Councilmember Castaneda thanked the Mayor and City Manager for expediting the workshop. He stated that the Council would be diligent in working with staff to address any issues and forging a working relationship with the mobilehome residents. Councilmember Chavez announced that translation services were available for the meeting. The following members of the public ceded their time to Fred Dufresne: James P. Cucinotta, Jean Lorenz, Trish Smith, Helen Thompson, Dorie Radichel, Connie V. Seelig, Buster Blair, Ann Umbrell, Dennis Holland, Evelyn Holland, Joan Cucinotta. Mr. Dufresne expressed concern with the lack of enforcement of state laws related to mobilehome parks. He stated that the mobilehome parks and mobilehomes have deteriorated, and that park owners are supposed to enforce the state's Title 25 and health and safety codes. He stated that the City's Code Enforcement staff must enforce laws set by the legislature and not interpret the laws as they feel appropriate. He said that dealers are moving mobilehomes onto I lots without permits or inspection by park managers or code enforcement staff to confirm the accuracy of plot plans. Mr. Dufresne displayed photographs of what he believed to be violations of mobilehome health and safety codes, and he expressed concern about fire truck accessibility because of the narrow separation between units. He stated that after violations are reported to the City, permits are granted after the fact, with no fines imposed. Mobilehomes are being placed on lots that are too small in every park in the City; and since many of the park owners are their own realtors, they buy and sell homes, put in new ones, double the price for the homes, and raise new renta to whatever price they want. He also stated that park owners are not permitting mobilehome owners to sell their homes inside the parks; they want the homeowners to move the mobilehomes, or alternatively, the mobilehome owners are forced to sell their homes at a cut-rate price. Mr. Dufresne said that the residents want the City to follow the law. Mayor Padilla asked staff to address some of the many issues raised by Mr. Dufresne regarding compliance with conditional use permitting, inspections, compliance and enforcement on lot delineations, and separation and distance between mobilehomes. Assistant Director of Building and Housing Remp explained that, in consultation with the State, it was determined that the City is in compliance with the state code. He gave assurance that the City's responsibility is to confirm that when an application is received, it meets the minimum state requirements, as well as conduct a City-instituted pre-inspection at no charge to the installer to confirm that a mobile unit fits on the proposed lot and that the minimum set-back requirements are met. Regarding conditional use permits (CUPs), of the 32 parks in the City, only five or six mobilehome parks have CUPs. Under state law, those conditions cannot affect anything within the park. The state's Title 25 mandates what may take place within the boundary of the park, and state law supersedes. Regarding inspection enforcement, the City has conferred with the state and confirmed that the interpretation used by the City is correct. With reference to lot lines, Mr. Remp explained that until 1979, the park owner, under state law, could modify the location oflot lines with no permission from anyone. State law was recently changed to require adjacent property residents to sign off on changes in lot lines. Chris Anderson, Field Operations Manager for the State Department of Housing and Community Development, explained that the Mobilehome Parks Act is different in the State of California than most building codes and cannot be amended by local government. He stated that there is a key statute in the code that sets the preemption of the Mobilehome Parks Act throughout the state, along with the regulations adopted by the State Department of Housing and Community Development. Regarding separation issues, he explained that the manufactured home comes from the factory sometimes with eaves, sometimes without eaves. Those eaves are the projections referred to in the code and cannot be included in the separation; that is part of the Manufactured Housing Construction Safety Standards and Manufactured Housing Act. Regulations regarding awnings are included in the Mobilehome Parks Program. He stated that a non-combustible awning can be installed to the lot line, and the separation between that awning and a non-combustible awning on the adjacent lot is three feet, according to Title 25. He added that there is an exemption for the placement of stairs; they are also permitted to the lot line. Mayor Padilla questioned to what degree the City has latitude with respect to land use planning authority, since Chula Vista is a charter city; and he asked if the City's regulations could be Page 2 - Council Minutes http://www.chulavistaca. gOY May 4, 2006 stricter than State law. Assistant City Attorney Hull responded that generally, the Mobilehome Park Act supersedes any City ordinance, although there are provisions of the Act that allow the City to have certain provisions in place, which staff could look at. Mayor Padilla felt there must be some way that local government can control densities and associated health and safety impacts. He suggested that staff come back to address this issue. Mr. Anderson responded that there are provisions in the health and safety code that provide local government with a lot of authority, including density. Title 25 preempts setbacks and separations. Mayor Padilla then suggested lobbying should be done in Sacramento. Councilmember Castaneda believed there were conflicting rules, and there may be separation rules in the code that are not being enforced. He also suggested that, after hearing from the public and staff, the Council could come back and know exactly what can be done to resolve some of the issues. The following members of the public ceded their time to Teressa Weddle: Sharon Yates and Bud Yates. Teressa Weddle felt that mobilehome park owners gave concessions to some residents and not to others. She stated that the City has not been responsive in addressing the health and safety concerns raised. She believed that there was prejudice against mobilehomes and that the separation should be the same as it is for houses. She expressed the need for state representatives to come to the parks to ensure compliance, and the need to have lobbyists go to the legislature and address the issues. She was hopeful that the City would look into the matter and get clear- cut answers to the issues raised. Norma Runyan agreed with the statements made by Mr. Dufresne, and stated that within the last six months, mobilehomes have been jammed in the park where she resides. She asked about the City's plans for redevelopment of Industrial Boulevard. She stated that the residents want the area to be cleaned up and curbs and landscaping installed. She asked if the City planned to take the mobilehome park through eminent domain. Planning and Building Director Sandoval responded that the land use designation has not changed recently, and the City has no plans to remove the park. Barbara Nunnelee, from Jade Bay Mobilehome Park, stated that in 2002, the park changed the residency from seniors to all-ages. She stated that the park does not have the capacity or the facilities to accommodate children. She spoke about a number of violations by the park owner that have not been corrected, including poor condition of streets, replacement of sewage pipes, no security, no fencing, speed limit not posted, and an unsanitary swimming pool. She stated that the owner refuses to accept new buyers and park applications. She felt that the residents were prisoners of their own homes who cannot sell their homes, and who are abused and harassed. Ms. Nunnelee stated that the residents recently received a notice of intent by the owner to close the park on April 26, 2007, citing bankruptcy. She questioned whether the owner has the right to do this and asked Council for its help on the issue. Councilmember Castaneda requested that the City's Housing Department work with the State of California to determine what options are available for the residents of Jade Bay Mobilehome Park. He requested a report be brought back very quickly. Housing Manager Mills explained Page 3 - Council Minutes http://www .chula vistaca. gOY May 4, 2006 that staffhas enlisted the help of outside counsel, and will get back to the Council as soon as they have information. Mayor Padilla also stated that the City needed to do something sooner rather than later to help the Jade Park residents. Steve Molski spoke about the safety hazards associated with the close proximity of homes to one another. He stated that park owners are making a large amount of money from rent, and the mobilehome owners pay for their own sewer, trash, and maintenance of their lots. He felt that park owners did not care about the welfare of the residents. He stated that no land had been set aside by the City for additional mobilehome parks. Mr. Molski expressed the need for the City to protect seniors. Dorothy Arsenault stated that she recently became a mobilehome owner and resident, but was not aware of the potential for problems, including the possibility of park closures and the doubling of rents by park owners, who she felt did not consider the lives of the residents. She suggested changes in the codes to inform buyers of some of the perils associated with moving into mobilehome parks. Suzanne Steffy, a resident of Continental Country Club, stated that the residents, most of whom are elderly, live in fear because of restrictions, harassment, intimidation and invasion of privacy by the park managers. She asked the Council for help in learning about their rights and possibly mediation. Councilmember Chavez asked staff to address mediation services. Housing Manager Mills replied that many issues are tenant-landlord related, and are regulated by state law. She stated that staff has crafted a Request for Proposal for an ombudsman to help residents understand their rights, listen to the issues, and provide referrals. Michelle Rewerts asked for humanitarian treatment of the residents of the trailer parks on Broadway, stating that the per-unit cost to re-house residents in new trailers would be far less than the cost of apartment or condo units. She stated that the Smart Growth people, SANDAG and the Housing Commission have no answers as to what to do with displaced, low-income residents. She requested that the City find a solution before people are put on the street by City- mandated closures of trailer parks on Broadway. Jacquie Day, a resident of Otay Lakes Lodge and a real estate agent, stated that she had a mobilehome listed for sale, and was misled by the park management when she asked what could be done with the lot that, at the time, a single-wide mobilehome occupied. She was informed that the maximum mobilehome size allowed would be a 20-foot by 50-foot unit. However, the lot currently has a 26-foot by 59-foot mobilehome on it. She also stated that the agent from the manufacturing company lied to her and did not obtain the necessary permits. She recommended that the manufactured home sellers be educated as to the rules, and that the park management inspect the lot to assure compliance with the mobilehome size for the assigned lot. Joan Johnson stated that trailer parks should also be considered as communities. She spoke about the large amount of space in the eastern portion of the City near transit routes that could be utilized for trailer park residents, and she asked the City to give these residents a break and a chance to remain in the City. Ted Kennedy, a resident of a trailer park on Broadway, expressed concern that should redevelopment occur in the area, thousands of residents would be displaced with nowhere to go. He stated that people want to live in Chula Vista. He asked the City to provide competent Page 4 - Council Minutes http://www .chulavistaca. gOY May 4, 2006 assistance to residents, and that they be compensated to the full extent of the law should they have to leave. He spoke of the need for answers from the City about taking homes, and to provide a distinction between mobilehome owners and mobilehome renters. Cristy Vaul, a resident of Continental Country Club, presented a letter to the Mayor from her physician that addressed the psychosocial stress she was experiencing as a result of harassment by the park manager. She stated that she has a 13-year old dog, and also adopted a small dog, but was sent a letter by the park manager telling her she could not keep the adopted dog. She stated that all the residents are being harassed by the manager, and she asked the Council to help the residents and protect the senior citizens so they can live the rest of their lives in peace. Mayor Padilla requested that staff obtain copies of any written correspondence to Cristy Vaul regarding the issue with her adopted dog, stating that even though he may not have the authority to help with her situation, he would personally call the park owner. Jackie Lancaster spoke about discouraging answers she has received regarding the waiting list for alternative housing or rental assistance, should mobilehome or trailer park residents be displaced. She believed that 14 of the 36 mobilehome parks would be replaced with high-rise buildings, leaving thousands of displaced residents. She asked what would happen to seniors who would have to be relocated, and stated that the City should make provisions for the citizens prior to construction. She stated that Proposition C on the June ballot is supposed to protect mobilehome parks and trailer parks from being taken through eminent domain, but that only protects the homeowners if the park owner does not want to sell. Mayor Padilla stated that it was important to ensure that accurate information was given, and some of the statements by Ms. Lancaster were untrue. He asked staff to respond to some of Ms. Lancaster's statements. Planning and Building Director Sandoval responded that the City has no provisions to move the mobilehome parks; that the City is not a developer and, therefore, will not be building high-rises. Mayor Padilla asked if there were any plans to give this property to developers for high-rises. Mr. Sandoval responded negatively. Mayor Padilla requested confirmation that most ofthis land is not in a redevelopment area and is not subject to eminent domain power. Mr. Sandoval confirmed that the City would have no authority to do that. Mayor Padilla asked if staff was aware of any developers trying to purchase these parks. Mr. Sandoval responded negatively. Mayor Padilla then assured the community that people would not be displaced; and that the Council is not in favor of taking homes. He requested that staff follow up with Jackie Lancaster to make sure that everyone had accurate information with regard to the City's use of eminent domain. At 8:06 p.m., Mayor Padilla announced that there would be a short recess. At 8:23 p.m., Mayor Padilla reconvened the meeting with all Councilmembers present. Daniel Cacho, representing Don Luis Estates and President of the Chula Vista Mobilehome Park Owners Association, stated he did not feel the industry was being treated fairly regarding the City ordinance, which he believed was resident-driven. He stated that the mobilehome park industry was the only business in the City under rent control, with no protection against market risks and law suits, and that cannot earn fair market rents. He stated that the City should investigate some of the claims and issues made against the parks by residents. He explained that the City keeps tightening the ordinance, which he believed would lead to the loss of mobilehome Page 5 - Council Minutes http://www .chulavistaca. gOY May 4, 2006 parks and the displacement of residents, with long-term consequences. He felt that the City should provide incentives to park owners to upgrade the parks and attract good residents. Mr. Cacho referenced an article in the Union Tribune that stated that the City spent two million dollars in legal fees. He felt that the rent control ordinance created problems the way it was written, and created poor relations between residents and park owners. Councilmember Castaneda clarified that the City has not spent two million dollars in legal fees. He stated that the City ordinance allowed mobilehome park owners to make a fair and just profit, and he would support all efforts to address issues and provide health and safety for the residents. Mayor Padilla stated he wanted the ordinance to be stricter when it was drafted and wanted rent increases to be based on inspection compliance, but he was not able to get a consensus. He stated that there are good park owners, but added that the issues raised are important and that he would continue to be an advocate for citizen protection against victimization and abuse. Linda Sundberg, representing Chula Vista Mobilehome Park residents, expressed concern about the lot line issues. She spoke about a slanderous letter that the residents received from Bill Wright, of Wright Manufactured Homes Inc., stating that the residents have been complaining about property lines, but that the company has only tried making the park better. She explained that she was denied a permit to build a deck on her property, because according to the plans on file with the City, there was not enough room between the front of her mobilehome and the street. She said that Mr. Wright had not only moved the lot lines, the mobilehome was facing a different street than the plans provided to the City showed, and he had changed the address without notifying the City. Ms. Sundberg stated that the residents need a state-qualified surveyor to come to the park and re-establish the correct lot lines. She begged the City for help on the matter; she stated that this company has taken the park down, and the residents have done all they can do. Armando Rudametkin, representing Chula Vista Mobile Home Park, stated that seniors do not count. He explained that lot lines have been adjusted, and one mobilehome is so large that it has overtaken the space that was available for the residents to walk through or have small social gatherings. Mr. Rudametkin was hopeful that this meeting would be the beginning of something for the residents. Emilia Perez, representing Bay Scene Mobile Home Park, stated that she does not know what to do about all the violations that exist in this park. She stated that the park owner wants to increase the rent by 60 percent over what the City permits. She explained that the park streets are neglected, and the gas lines and electricity are in poor condition. The park owners charge residents for park maintenance but do not maintain the property. She asked the Council for help on the matter and invited Councilmembers to visit the park. Diana Isaacs, a resident of Palms Mobile Home Park, stated that the change in trash collection has resulted in an increase to residents from $12.12 to $17.80 for the trash bill. She expressed concern about the park sewer system that has flooded on numerous occasions, and the residents are being blamed for the problem. She requested assurance that somebody would contact the property manager to address these issues. Page 6 - Council Minutes http://www . chulavistaca. gOY May 4, 2006 Doug Scott, a contractor for many of the manufactured homes in the City, stated that he applies for appropriate permits for jobs, and that the City's Planning and Building Department follows the requirements of Title 25. However, Title 25 does not dictate the size of a home that goes on a specific lot. He stated that most of the homes he has dealt with do fit the lot. He realized that the City needs to address the issues raised regarding setbacks, but the complaints should be valid. Enrique Camacho, representing Bay Scene Mobile Home Park residents, expressed concern with increased rents by eight to thirteen percent each time a new park owner comes in. He stated that the park manager is never on-site on the weekends, the park is poorly maintained, and the manager is hiring non-professionals for repair work in the park. He suggested that if the owner cannot maintain the park, then let the residents purchase the park and maintain it. He asked Council for their help on the matter. Deputy Mayor McCann stated that the City needed to ensure that all health and safety codes are followed. He also requested a written legal opinion regarding the issue of separations between the units. Regarding Industrial Boulevard, he believed the City should look at establishing a capital improvement project, potentially with the use of community development block grant funding, to help install curbs and gutters. He also requested that the City look into creating a pamphlet to make new residents aware of their rights and responsibilities, as well as contact information if an issue should arise. In regards to relocation, not only for mobilehome owners, but also as a result of redevelopment, he suggested the implementation of a policy to give priority to displaced residents as the City builds new affordable housing and new affordable senior units. Councilmember Rindone requested a report to Council with an analysis of code enforcement activities, including types of fines imposed, and where the fines were imposed. He requested that staff examine the possibility of having an ombudsman and/or a hotline to serve as a referral service for people to contact when they do not know where to go for answers. Regarding the Jade Bay Mobilehome Park, he requested a succinct report to the Council regarding the roles of the City, as well as the roles that are not the City's, and the possible impacts of the bankruptcy. He also requested that staff look at the possibility of implementing a "mapping size" of each mobilehome lot to determine the maximum size mobilehome for that particular lot, the cost of which could be shared, not necessarily borne entirely on the City. Councilmember Castaneda directed the City Attorney to report to the Council within 60 days on the land use issues raised and what the City can do to ensure that there are consequences when someone installs a mobilehome without a permit or breaks the rules. He also requested that the City have its lobbyist try to affect some rules at the state level. With regard to the Jade Bay Mobilehome Park issue, he requested a report back to the Council within two weeks with some tangible solutions for the residents. Councilmember Chavez indicated that the Community Development Department IS already looking into the possibility of an ombudsman for the City. Page 7 - Council Minutes http://www .chulavistaca. gOY May 4, 2006 Mayor Padilla requested that the City find a way to help the Jade Bay Mobilehome Park residents, at least with information. He also requested that more funds be allocated toward enforcement personnel and legal personnel to enable the City to enforce the rules. He stated that the legal staff needed to determine what the City can do to regulate the land use issues. He believed that the City needed to do more work on the conversion ordinance, on relocation assistance, on tightening up the rent review ordinance, and on enforcement. PUBLIC COMMENTS There were none. ADJOURNMENT At 9:49 p.m., Mayor Padilla adjourned the meeting to the Regular Meeting on May 9, 2006 at 6:00 p.m. in the Council Chambers. dPhMP-~~ Donna Norris, CMC Assistant City Clerk Page 8 - Council Minutes http://www .chula vistaca. gOY May 4, 2006 RECEIVED Tracy L. Means, A.A.E. 1241 Calle Tesoro Chula Vista, CA 91915 (619) 271-4002 "QS ~ -5 P 1 :43 CITY OF CHULA VIST!-\ lDHY C4..ERK'S OFFiCE June 5, 2006 Office of the City Clerk 276 Forth Avenue Chula Vista, CA 91910 RE: Letter of Resignation Resource Conservation Commission Attention: Loraine Bennett Effective immediately, I must resign as Vice-Chair of the Resource Conservation Commission. I have recently accepted out of state employment and unfortunately, will be unable to fulfill my obligation to the City of Chula Vista. I have appreciated the opportunity to serve my community, and will deeply miss this very progressive City and the wonderful people who live, work, and play here. Thank you, Tracy L. Means 2- ~.~~~_._"'"'"~--,"--~~"-;_._"----~~-,-~---,......_---,.- COUNCIL AGENDA STATEMENT Item ::3 Meeting Date 6/13/06 ITEM TITLE: Resolution Ratifying City staff s action on approving Change Order No.2 with Metropolitan Construction to complete the project CMP Storm Drain Pipe Rehabilitation Project (DR-165) and transferring the amount of $18,146 from CIP "Western Chula Vista Infrastructure" (GG-188) to DR-165 for said purpose. SUBMITTED BY: Director of General Services City Manager 11 ~ 7l R (4/5ths Vote: Yes l No ~ REVIEWED BY: On November 22, 2005, the City approved Resolution No. 2005-380 awarding a contract in the amount of $194,774 to Metropolitan Construction, for the "CMP Storm Drain Pipe Rehabilitation Project" (CIP No. DR-165). During the course of construction, staff discovered at one of the sites for this project (the Fig Avenue and Guava Avenue location) that the existing CMP pipe had a low point just below an existing block wall. The design process did not account for this field condition and therefore the required pipe size would now come out above the ground. Additional work is required to complete the project. Change Order No.2 (Attachment A) is for items of work not originally included in the project design, but necessary to complete the project in accordance with City standards. Approval of tonight's resolution will ratify staffs action approving Change Order No.2 for said project valued at $39,825.64 in accordance with the City Council Policy No. 574-01 and as presented in the Council Information Item submitted on March 21, 2006 (Attachment B). RECOMMENDATION: That Council adopt resolution. BOARDS/COMMISSION: N/ A DISCUSSION: As part of an ongoing program to rehabilitate corrugated metal drainage pipe (CMP) throughout the City, staff have identified a number of storm drain facilities, which are deteriorated and are in need of rehabilitation. The CMP Storm Drain Pipe Rehabilitation Project (DR-165) removed and replaced CMP drainage facilities. Per the formal bidding process, staff invited companies to submit proposals to provide construction services for the CMP Rehabilitation Storm Drain Pipe Rehabilitation Project (DR- 165). The scope of work included the replacement of 430 lineal feet of Corrugated Metal Pipe (CMP). The project rehabilitated three locations of the City's system of corrugated metal storm drain pipes. The general scope of the project involved the removal and replacement of existing corrugated metal pipe, including all labor, material, equipment, tools, transportation, mobilization, traffic control, removal and disposal of existing improvements, and other work necessary to construct the project in accordance with City standards. On October 12, 2005, '::?' / '-" - ! Page 2, Item ~_ Meeting Date 61n'i06 General Services staff received two bids, and the lowest responsive bidder was Metropolitan Construction. Council awarded a contract per Resolution 2005-380 in the amount of $194,774 plus contingencies in the amount of $29,220. Change Order No.1 - During the course of construction at the 1245 Monserate Avenue location, staff decided to adjust the design and location of the proposed curb-outlet and catch basin. This modification to the existing design was so that the property owner's front yard would not be impacted significantly. The change was done without jeopardizing the integrity of the storm drain improvements and meeting all City requirements. Change Order No.2 - During the course of construction, staff discovered that the existing CMP pipe had a low point just below an existing block wall at the Fig and Guava location. This unexpected field condition does not allow water to flow and work properly as a storm drain system, and would force water to flow towards the middle of the pipe instead of from one end to the other. The design did not account for this field condition and, therefore, the required pipe size would now come out above the ground. The design has been adjusted so that the property owner's backyard would be impacted minimally, the storm drain improvement meets all City .requirements and the improvement remains within the City's existing easement. The additional work will include the cutting of an existing block wall footing, re-alignment of proposed pipe, backfilling and re-trenching, concrete curbs, slurry backfill, and some construction delays. The above mentioned design issue and other field condition resulted in a change order that exceeds the Director of Public Works authorized limits set per Council Policy No. 574-01. Said Council Policy also states the following: "In those cases where the City Manager and Director of Public Works determine that the public health and safety are involved or a substantial claim could be submitted by the contractor for delays, the City Manager may exceed the above amounts provided for both individual change orders or the aggregate amount of change orders. Staff directed the Contractor to proceed with the work because of the reasons stated below and as stated on the Council Information Item submitted on March 21,2006. · The improvements proposed are storm drain related and the construction took place in the ramy season. · Delays could compromise public safety as trenches would have to remain open. · Delays would involve substantial additional claims by the Contractor for remobilization, insurance, bonds, construction site maintenance, etc. Therefore, staff recommends transferring $18,146 from the available balance of the "Western Chula Vista Infrastructure Program" (GG188) to the DR-165 CIP project. With respect to Change Order No.2, the location of the work is located within 500 feet of property owned by Councilmember Rindone. FISCAL IMPACT: There is no impact on the General Fund as the funds for these improvements have been provided for as part of the Western Chula Vista Infrastructure Financing Program. Staff recommends a transfer in the amount $18,146 to complete the capital improvement project DR-165. 2-2- ~. Page 3, Item ) ~ Meeting Date 6/13106 . CONSTRUCTION COST & ADDITIONAL WORK A. Base Construction Cost $194,774.00 B. Change Order No.1 $7,540.00 C. Change Order No.2 (rounded to nearest dollar) $39,826.00 TOTAL $242,140.00 FUNDS REQUIRED A. Contract Amount (per Resolution 2005-380) $194,774.00 B. Contingencies (per Resolution 2005-380) $29,220.00 C. Transfer from (GG188) Western Chula Vista Infrastructure $18,146.00 TOTAL $242,140.00 Attachment(s): A. Change Order No.2 B. Council Information Item dated March 21, 2006 M:\General Services\GS Administration\Council Agenda\DRl65 CMP Storm Drain Rehab\Change order 2, 6-13-06.doc 3-3 ~~~ =-~~.:=: ~~~~ ---- ATTACHMENT, .A ellY OF CHUlA VISTA DEPARTMENT OF PUBLIC WORKS OPERATIONS Date: April 12, 2006 File No. 0735-DR-165 CHANGE ORDER NO.2 CONTRACT: CMP STORM DRAIN PIPE REHABILITATION PROGRAM, FY '04/'05, (DR 165) CONTRACTOR: FILMEX, (DBA METROPOLITAN CONSTRUCTION) The following changes shall be made to the referenced contract between CITY OF CHULA VISTA and METROPOLITAN CONST. (Contractor), in accordance with City Council Resolution No. 2005-382, dated November 22, 2005. A. Additional Items due to re-design of Storm Drain System / Guava Avenue and Fig Avenue resulting from conflicts between design and field conditions Additional Unit Unit Total No. Description QTY Tvpe Cost Increase 1 Remove & Replace Portion of Existing Wall Footing, including dowel and rebar 1.00 LS $3,650.00 $3.650.00 2 Replace D-25 lid with a New Grated Lid for overflow relief of storm drain 1.00 EA $650.00 $650.00 3 Install C-905 pipe to tie Catch Basin & 18" HDPE; PCC encased & covered 1.00 LS $2.650.00 $2,650.00 4 Install 12" x 6" curb with (21 #4 rebars horizontal reinforcement alone side pipe 1.00 LS $7.000.00 $7,000.00 5 Install #4 rebar dowels and fence anchors for curb and fence construction 1.00 LS $1.200.00 $1,200.00 6 Excavate and Backfill trench due to a[k]nment re-desiqn of storm drain 1.00 LS $5.500.00 $5,500.00 7 Slurry backfill for re-alioned trench within 631 Fig Ave 1.00 LS $3.950.00 $3,950.00 8 Re-desion delavs. remobilization costs 1.00 LS $3.100.00 $3.100.00 SUBTOTAL AMOUNT INCREASE (A): $27,700.00 B. Additional Costs due to re-design of Storm Drain System / Monserate Avenue .resulting from conflicts between design and field conditions Additional Unit Unit Total No. Descriation QTY Type Cost Decrease 1 18" HOPE section installed, cut, removed & discarded due to re-desion 20.00 LF $225.00 $4.500.00 2 Re-mobilization From Guava to Monserate and re-desiqn delay costs 1.00 L.S. $7,625.64 $7.625.64 SUBTOTAL AMOUNT INCREASE (B): $12,125.64 CHANGE ORDER NO.2 NET INCREASE $39,825.64 ORIGINAL CONTRACT AMOUNT: PREVIOUS CHANGE ORDERS: CHANGE ORDER NO. 2/NCREASE TO CONTRACT TOTAL CONTRACT AMOUNT: $194.774.00 $7.540.00 $39.825.64 $242,139.64 This contract change order will add nine (9) WORKING DAYS to contract due to additional re-design work and time delays. The agreed upon total days and price included all costs for furnishing all tools, labor. materials. equipment. incidental costs and fees for performing the work in this contract change and no additional compensation will be due. It is agreed by the undersigned that this work shall be performed and materials furnished in accordance with the original (base) contract, Green Book speCifications and applicable standard drawings. ~,~ If'""" ORDER BY RICHARD HOPKINS Ass!. Director of PW OPS ~ ACCEPTED BY JOSE ORTIZ FILMEX. dba Metropolitan Construction APPROVED BY DAVE BYERS Director of PW OPS 1800 Maxwell Rd. Chula Vista, CA 91911 Phonp (619) 397-6000 Page 1 of 1 3-4' ~,,~ PRIDE ATWORK www.chulavista.gov @ Post.Consumer Recycled Paper A'TIACHMENT, 13 ~{f?- -.- ~~.=:-- General Services Department Informational Item CllY OF CHUIA VISfA March 21, 2006 File: DR-165 - 1 TO: The Honorable Mayor and City Council Jack Griffin, Director of General Services ~~- .41 '77~' Dave Rowlands, City Manager {JI 1)-CL Y If\ FROM: VIA: SUBJECT: Change Order for (DR 165) CMP Rehabilitation Project As part of an ongoing program to rehabilitate corrugated metal drainage pipe (CMP) throughout the City, staff have identified a number of storm drain facilities which are deteriorated and are in need of rehabilitation. Per the formal bidding process, staff invited companies to submit proposals to provide construction services for the CMF Rehabilitation Storm Drain Pipe Rehabilitation Project (DR-165). The scope of work included 430 lineal feet ofCMP. The general scope of the project involves the removal and replacement of existing corrugated metal pipe, including all labor, material, equipment, tools, transportation, mobilization, traffic control, removal and disposal of existing improvements, and other work necessary to construct the project in accordance with City standards. On 11/22/05 per Resolution No. 2005-380 Council awarded said project to Metropolitan Construction in the amount of$194,774. During the course of construction, staff discovered at one of the sites for this project (the Fig Avenue and Guava A venue location) that the existing CMP pipe had a low point just below an existing block wall. This unexpected field condition would force water to flow towards the middle of the pipe instead of from one end to the other. It is believed that said condition for the existing pipe was built in the 1960's. The design process did not account for this field condition and therefore the required pipe size would now come out above the ground. The design has been adjusted so that the property owner's backyard experiences the least possible impact, that the storm drain improvement meets all City requirements and that the improvement remains within the City's easement. The additional work will included the cutting of an existing block wall footing, re-alignment of proposed pipe, backfilling and re-trenching, concrete curbs, slurry backfill, and some construction delays. . The above mentioned design issue and other field condition differences will result in a change order that exceeds the Director of Public Works authorized limits set per Council Policy No. 574-01. Staff estimates that said change order will be in the range of $30,000 to $40,000. Staff has directed the Contractor to proceed with the work because of the following reasons: . Delays could compromise public safety as trenches would have to remain open . The improvements proposed are storm drain related and the construction is taking place in the rainy season J :\Roberto Y\temp\dr I 65\info item. doc B&PC.Q08 (11102) 3-E; · Delays would involve substantial additional claims by the Contractor for remobilization, insurance, bonds, construction site maintanace, etc. It is the intent of staff to ratify the actions taken for this project as stated in said Council Policy (attached). J:\Roberto Y\templdr165\info item.doc B&PC-008 (11102) ;3--G, COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: CHANGE ORDERS - DIRECTOR OF PUBLIC WORKS POLICY NUMBER 574-01 EFFECTIVE DATE 12-12-00 PAGE 10f1 ADOPTED BY: Resolution No. 12507 I DATED: 06-03-86 AMENDED BY: Resolution No. 2000-335 (09-26-00), Resolution No. 2000-451 (12-12-00) BACKGROTJNn During the course of work on many City public works pr.ojects,it becomes apparent that certain changes must be made in the contract to obtain the finished product in its desired form. PlJRPOSF. Since most of these changes are of a minor nature which do not change the scope of the project or affect the public health, safety, or welfare, delegating limited authority to approve change orders would result in significantly expediting these public works projects. POIJr.V The Director of Public Works is hereby delegated limited authority to approve change orders for work being done under City public works contracts, as follows: 1. All change orders, except for those change orders exceeding or causing the exceedence of the amounts specified herein, shall be processed and approved by the Director of Public Works in accordance with the applicable project specifications. 2. No individual change order shall increase or decrease the original contract amount by more than $50,000. 3. The aggregate amount of all change orders shall not increase the contract amount by more than the amount specified below: Original Contract Range Maximum Aggregate Increase in Change Orders Up to $100,000 $100,000 to $1,000,000 More than $1,000,000 10% of the original contract amount $10,000 plus 7% of the original contract amount over $100,000 $73,000 plus 5% of the original contract amount over $1,000,000 The Director shall also be authorized to increase the time allowed for contract completion in association with any change order granted under this policy. 4. All change orders involving changes in the scope of project, increases of contract amounts greater than outlined above or aspects concerning the public health, safety, or welfare, shall be submitted to the City Council for consideration. In those cases where the City Manager and Director of Public Works determine that the public hea~th and safety are involved or a substantial claim could be submitted by the contractor for delays, the Clty Manager may exceed the above amounts provided for both individual change orders or the aggregate amount of change orders. The change order shall be submitted to the Council at the next regular Council meeting for ratification. . 3--7 RESOLUTION NO. 2006- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA RATIFYING CITY STAFF'S ACTION ON APPROVING CHANGE ORDER NO. 2 WITH METROPOLITAN CONSTRUCTION TO COMPLETE THE "CMP STORM DRAIN REHABILITATION PROGRAM" PROJECT (DR-165), AND TRANSFERRING THE AMOUNT OF $18,146 FROM CIP "WESTERN CHULA VISTA INFRASTRUCTURE" (GG-188) TO DR-165 FOR SAID PURPOSE WHEREAS, as part of an ongoing program to rehabilitate corrugated metal drainage pipe (CMP) throughout the City, staff has identified a number of storm drain facilities, which are deteriorated and are in need of rehabilitation. CMP Storm Drain Pipe Rehabilitation Program (DR-165) Project will remove and replace those drainage facilities at three locations; and WHEREAS, City Council of the City of Chula Vista approved resolution 2005-380 on October 12, 2005 awarding a construction contract to Metropolitan Construction, Spring Valley, California in the amount of $194,774 for the CMP Storm Drain Pipe Rehabilitation Program (DR-165) Project; and WHEREAS, during the course of construction, staff discovered at one of the sites for this project (the Fig Avenue and Guava Avenue location) that the existing CMP pipe had a low point just below an existing block wall. The design process did not account for this field condition and therefore the required pipe size would now come out above the ground. Additional work is required to complete the project; and WHEREAS, staff directed the Contractor to proceed with the work for the reasons stated below and as previously stated in the Council Information Item submitted on March 21, 2006. . The improvements proposed are storm drain related and the construction took place in the rainy season. . Delays could compromise public safety as trenches would have to remain open. . Delays would involve substantial additional claims by the Contractor for remobilization, insurance, bonds, construction site maintenance, etc.; and WHEREAS, available fund exists in the '~Western Chula Vista Infrastructure Program" (GG 18 8) to complete the additional work. /y 3--; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby ratify city staffs action on approving Change Order No.2 with Metropolitan Construction to complete the "CMP Storm Drain Rehabilitation Program" Project (DR-165), and transfer the amount of $18,146 from CIP "Western Chula Vista Infrastructure" (GG-188) to DR-165 for said purpose. Presented by Approved as to form by ~<:ur~~\ Ann Moore City Attorney Jack Griffin Director of General Services J:\AltomeyIRESOIENGlNEERINGIDRI65 Roso 4.doc ::;) c.. ., -d ~-- ~/ COUNCIL AGENDA STATEMENT Item If Meeting Date: 6/13/06 ITEM TITLE: Resolution Accepting bids, awarding the contract for the "Memorial Bowl Renovations in the City of Chula Vista, California (PR- 272)" Project to C.D.M. Construction, Inc. in the amount of $119,302.90, authorizing an interproject transfer ofRCT funds from an existing project, GG 166 "HV AC Equipment Upgrades" and reducing appropriation of State Recreation Grant funds. SUBMITTED BY: Director OfGe:(- service~ G,l}, City Manager 'II .In- y (4/5ths Vote: Yes-X-No-> REVIEWED BY: On May 17, 2006, at 11 :00 a.m., the Director of General Services received three (3) sealed bids for the "Memorial Bowl Renovations in the City of Chula Vista, California (PR-272)" Project. The scope of work primarily includes the rehabilitation of the amphitheater seating, walls, and walkways and the installation of a new dedication monument within Memorial Park in the City of Chula Vista. RECOMMENDATION: That Council adopt the resolution. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: On February 22, 2005, the Chula Vista Rotary Foundation has graciously offered to assist in financing a portion of the renovation to the Memorial Bowl in the amount of $100,000 and will be provided for in five annual payments of $20,000. This generous offer was in coordination with the Rotarian International's 100th anniversary celebration. General Services staff prepared plans and specifications for the Memorial Bowl Renovation Project. On April 28, 2006 the City advertised for contractors to bid on the construction of the contract for the "Memorial Bowl Renovations in the City of Chula Vista, California (PR-272)" Project. On May 17,2006 at 11 :00 a.m. three (3) bids were received and publicly opened. The three bid proposals received were from the following companies: C.D.M. Construction, Inc. 1244 Greenfield Drive .~ El Cajon, CA 92021 Precise Construction Management 3970 Tynebourne Circle San Diego, CA 92130-1219 4-1 4- Page 2, Item: I Meeting Date: 06/13/06 Steven's Construction 125 East 17th Street National City, CA 91950 Bid Results Bids from the contractors were received as follows (Bids sorted by bid amount): CONTRACTOR BASE BID C.D.M. Construction, Inc. $119,302.90 Precise Construction Management $128,670.00 Steven's Construction $143,625.00 Staff thoroughly reviewed all bids and it was determined that the lowest bidder for the proj ect did meet the 'Bid Proposal' requirements. The lowest responsive bid for the project was submitted by C.D.M. Construction, Inc. The C.D.M. Construction, Inc. contractor's License Number is 735279 and is clear and CUITent. Staff has reviewed the bid and is recommending awarding the contract to C.D.M. Construction, Inc. in the amount of$119,302.90. The low bid by C.D.M. Construction, Inc of $119,302.90 is 7% over the Engineer's estimate of $111,400. The Engineer's estimate was based on average unit prices for similar types of work completed recently. However, we have noticed an increase in materials costs throughout the City, thus resulting in higher bids than anticipated. General Services Department Staff checked the references required by the project specifications that the contractor submitted. All references submitted were verified and their work has been satisfactory. In addition, C.D.M. Construction has done work for the City ofChula Vista and their work was found to be satisfactory. In addition, approval of this resolution authorizes the expenditure of all available contingencies for the project. According to City Council Policy No. 574-01, if a change order exceeds the cumulative contract change order aggregate an10unt allowable to be approved by the Director of Public Works Operations, City Council approval is required. However, approval of tonight's resolution will increase the Director of Public Works Operations' authority to approve change orders as necessary up to the contingency amount of $11,140, authorizing staff to expend all available contingencies and increase the value of the contract as necessary due to unforeseen circumstances. Unforeseen circumstances (i.e. poor sub grade, utility conflicts, increase of construction quantities, etc.) may cause an increase in quantities beyond what was anticipated during the preparation of the project specifications. Often times, additional areas are repaired beyond what is anticipated due to the failing area increasing in size and unseen construction changes. As a result, additional material is required to repair the areas and may lead to a necessary "Change Order" to the contract. This is a typical situation with all construction projects. The location of the work for this project is located within 500 feet of property owned by Councilmember Castaneda. 4-2 j} Page 3, Item: i-i- Meeting Date: 06/13/06 Environmental Status The Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act and has determined that the project qualifies for a Class 1 categorical exemption pursuant to Section 15301(d) (Existing Facilities) of the State CEQA Guidelines. Thus, no further environmental review is necessary. Disclosure Statement A copy of the contractor's Disclosure Statement is attached. Prevailinl! Wa2e Statement The project is being partially financed with State Recreation Grant funds. Based on the cunent project funding guidelines, the contractors bidding this project are required to pay prevailing wages to persons employed by them for the work under this project. Fiscal Impact Due to the donation by the Chula Vista Rotary Foundation, staff is recommending that the original grant funds appropriated to the project in the amount of $200,000 be reduced by $65,000 and replaced with RCT funds from an existing project. Staff is further recommending a total amount of $100,000 in RCT funds to be transferred from existing project GG166 whereby the ReT fund will be fully reimbursed by the donation. The tables below detail the funds required and the funds available for the projects: FUNDS REQUIRED FOR CONSTRUCTION A. Contract Amount (C.D.M. Construction, Inc.) $119,302.90 B. Contingencies $11,629.10 C. Soil Testing $10,000.00 D. City Oversight (Administration and Inspection) $94,068.00 TOTAL FUNDS REQUIRED FOR CONSTRUCTION $235,000.00 FUNDS AVAILABLE FOR CONSTRUCTION A. State Recreation Grant ($200,000 - $65,000) $135,000.00 B. Transfer from GG166 (RCT funds) $100,000.00 TOT AL FUNDS A V AILABLE FOR CONSTRUCTION $235,000.00 There are sufficient funds in the approved project budget to fully offset all costs with no impact to the General Fund. Upon completion of the project, only routine City maintenance will be required. Attachment: A - Disclosure Statement M:\Gcner:ll Serviccs\GS Adminislration\Council Agenda\!l<lemorial Bowl\Al13 PR272 Memorial Bowl Renovationl Rev.doc 4-3 City of Chula Vista Disclosure Statement ATTACHMEJ'H _~ Pursuant to Council Policy 101-01, prior to any action upon matters that will require discretionary action by the Council, Planning Commission and all other official bodies of the City, a statement of disclosure of certain ownership or fmancial interests, payments, or campaign contributions for a City of Chula Vista election must be filed. The following information must be disclosed: 1. List the names of all persons having a fmancial interest in the property that is the subject of the application or the contract, e.g., owner, applicant, contractor, subcontractor, material supplier. 1(00{ W~e~ \t-~ldent CO\1n Ie Lec\kze;4tif, Mon~ 2. If any person * identified pursuant to (1) above is a corporation or partnership, list the names of all individuals with a $2000 investment in the business (corporation/partnership) entity. ~l Lecl~k- ~ Ledblm 3. If any person* identified pursuant to (1) above is a non-profit organization or trust, list the names of any person serving as director of the non-profit organization or as trustee or beneficiary or trustor of the trust. t.l{Pi 4. Please identify every person, including any agents, employees, consultants, or independent contractors you have assigned to represent you before the City in this matter. Rud.1.J led . MT~ T-if~ tie ~ld 5. Has any person * associated with this contract had any financial dealings with an official * * of the City ofChula Vista as it relates to this contract within the past 12 months? Yes_ NoL If Yes, briefly describe the nature of the financial interest the official * * may have in this contract. 15 C:\Documents and Settings\SiIviaC\Local Settings\Temporary Internet Files\OLKF\Memorial_Bowl_SpecsJinal.doc 4-4 6. Have you made a contribution of more than $250 within the past twelve (12) months to a current member of the Chula Vista City Council? No -X Yes _ If yes, which Council member? 7. Have you provided more than $340 (or an item of equivalent value) to an official * * of the City of Chula Vista in the past twelve (12) months? (This includes being a source of income, money to retire a legal debt, gift, loan, etc.) Yes _ No L If Yes, which official** and what was the nature ofitem provided? Date:~ J;L ~ Person is defIDed as: any individual, fIrm, co-partnership, joint venture, association, social club, fraternal organization, corporation, estate, trust, receiver, syndicate, any other county, city, municipality, district, or other political subdivision, -or any other group or combination acting as a unit. ** Official includes, but is not limited to: Mayor, Council member, Planning Commissioner, Member of a board, commission, or committee of the City, employee, or staff members. 16 C:\Docurnents and Settings\SilYiaC\Local Settings\Ternporary Internet Files\OLKF\Mernorial Bowl Specs Final.doc 4-5 . - - - RESOLUTION NO. 2006- RESOLUTION ACCEPTING BIDS, AWARDING THE CONTRACT FOR THE "MEMORIAL BOWL RENOVATIONS IN THE CITY OF CHULA VISTA, CALIFORNIA (PR-272)" PROJECT TO e.D.M. CONSTRUCTION, INe. IN THE AMOUNT OF $119,302.90, AUTHORIZING AN INTERPROJECT TRANSFER OF RCT FUNDS FROM AN EXISTING PROJECT, GG 166 "HV AC EQUIPMENT UPGRADES" AND REDUCING APPROPRIATION OF STATE RECREATION GRANT FUNDS WHEREAS, On February 22, 2005, the Chula Vista Rotary Foundation graciously offered to assist in financing a portion of the renovation to the Memorial Bowl in the amount of $100,000; and WHEREAS, this amount will be provided for in five annual payments of $20,000; and WHEREAS, City staff has prepared specifications for the "Memorial Bowl Renovation in the City of Chula Vista, California (PR-272)" project and advertised the project; and 'WHEREAS, On May 17, 2006 at 11 :00 a.m., the Director of General Services received and opened sealed bids from three contractors for the construction phase of the "Memorial Bowl Renovation in the City ofChula Vista, California (PR-272) project; and WHEREAS, the low bid by C.D.M. Construction, Inc. of $119,302.90 IS $7,902.90 (7.0%) above the Engineer's estimate of$111,400.00; and WHEREAS, the work to be done consists rehabilitation of the amphitheater seating, walls, and walkways and the installation of a new dedication monument within Memorial Park in the City of Chula Vista; and WHEREAS, based upon average prices for similar types of work completed during the last three years, staff has reviewed the low bid and is recommending awarding the contract to C.D.M. Construction Inc.; and WHEREAS, The Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act and has determined that the project qualifies for a Class 1 categorical exemption pursuant to section 15301 of the State CEQA Guidelines; and WHEREAS, with an interproject transfer ofRCT funds from an existing project, GG166 "HV AC Equipment Upgrades" and by reducing appropriation of State Recreation Grant funds, there are sufficient funds to fully offset all costs associated with the construction of this project, with no impact to the General Fund. 4-6 NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Chula Vista does hereby award a contract in the amount of $119,302.90 for the construction of the "Memorial Bowl Renovation in the City of Chula Vista, California (PR-272)" Project to C.D.M. Construction, Inc. Presented by Approved as to form by ~'J\\\\~\~~~~ Ann Moore City Attorney Jack Griffin Director of General Services H:\AttomeyIFinal Resos\2006\6 13 06\PR272 Memorial Bowl Reso 061306.doc 4-7 COUNCIL AGENDA STATEMENT Item 5 Meeting Date: 6/13/06 ITEM TITLE: Resolution Accepting the final report of expenditures for the "Emergency drainage Facility Repair Work on First Avenue, Between "H" Street and Shasta Street" and ratifying the actions of the City Manager and Director of General Services for making and executing a contract for said emergency repair with T.C. Construction Company, Inc. SUBMITTED BY: Director of GeI?-eral Services ~.9,>Y- REVIEWED BY: City Manager f /~ Y ~ (4/5ths Vote: YesXNo.J On February 19, 2005, the City of Chula Vista Police Department alerted the Department of Public Works Operation regarding a sinkhole that had developed along First Avenue, between "H" Street and Shasta Street. The sinkhole and surrounding areas were immediately secured by City staff to prevent any other potential problems and to ensure public safety. The sinkhole was created by failed storm drain facilities (112 inch by 75 inch Corrugate Metal Pipe Arch (CMPA) and a 24 inch Corrugated Metal Pipe (CMP). In accordance with the emergency provisions of Section 1009 of the City Charter, City staff contracted the services of T.C. Construction Company, Inc. (General Engineering Contractor License No. 402459) for the repair. The repair was completed and the street was open to vehicular traffic on June 21, 2005. An Informational Item was submitted in March 2005 (Attachment 1) and another one in June of2005 (Attachment 2) with the progress of the project and with the plan to come back to Council with a final report after the full cost of the project was identified. This report represents the total expenditures for the repair. RECOMMENDATION: That Council adopt the resolution. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: At 3:45 p.m. on Saturday, February 19, 2005, the City of Chula Vista Police Department alerted the Public Works Department regarding a sinkhole that had developed along First Avenue, between "H" Street and Shasta Street. The sinkhole measured approximately six (6) feet in diameter and depth, as measured from nearest adjacent street elevation, and was situated within the traveled way of First Avenue. The sinkhole and surrounding area were immediately secured by City staff to prevent any other potential problems and to ensure public safety. After assessment of the situation, it was determined that the sinkhole resulted from failure of storm drain facilities resulting from the overall age of the facilities and the heavy rainfall and debris flowing through the drainage system. It appeared that the sinkhole was formed by high velocity storm flows and debris that eroded the flowlines of the drainage facilities and, subsequently, 5-1 r-- Page 2, Item ? Meeting Date 6/13/06 began eroding the underlying soils which created a void. Subsidence of the overlying soils and street improvements then occurred due to the existing void beneath the drainage facilities. The failed storm drain facilities included a Il2-inch by 75-inch Corrugated Metal Pipe Arch (CMP A) that served as a main trunk line for conveying storm runoff through the Central Basin and a 24-inch diameter Corrugated Metal Pipe (CMP) that was tributary to the CMPA section of storm drain. In accordance with City Charter Section 1009 and based upon the urgent necessity for the preservation of life, health and property and as explained in the Informational Items sent on March and June 2005, City staff contracted the services ofT.C. Construction Company, Inc. to stabilize the sinkhole so that no further damage would be caused by the rains and to install the needed ultimate improvements. A copy of the Agreement and change orders are provided as Attachment 3. The stabilizing work included removal of the soils to the depth of the voids, and pumping approximately ten cubic yards of concrete in the voids beneath the failed drainage facilities and over the top of the pipe arch. A 4-inch thick reinforced concrete bottom was also placed in the CMP A to prevent any further failure of the surrounding soils and trench plates capped off the hole at the surface. The ultimate improvements included removing all of the affected CMPA and CMP within the influence of the First Avenue roadway and replacing it with a concrete box culvert and reinforced concrete pipe, respectively. All constructed drainage facilities were sufficiently sized to handle the highest seasonal flows that could potentially reach the new facilities. The Director of General Services and the City Manager agreed with the recommendation of staff on the necessity to proceed with the emergency repair for the following reasons: · It minimized public inconvenience and safety hazards to the general public. To expedite construction and to minimize hazards to the general public the street was closed for the duration of the repair. · It will mitigate a potential total collapse of the existing CMP due to incoming rain storms that could cause serious damage to health and property. Without this improvement, the soil around the CMP A would have continued to erode. More of First Avenue, surrounding private residences and even H Street could have been lost. Being able to repair the facility and at the same time verifying the limits of the sub-surface damage to mitigate them was necessary for the safety of the general public. The Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Statutory Exemption pursuant to Section 15269 (Emergency Projects) of the State CEQA Guidelines. Thus, no further environmental review is necessary. FISCAL IMPACT: The total expenditures for the emergency drainage facility repair work were funded from the "Western Chula Vista Infrastructure" (GG-188) account and are broken down as follows: 5-2 ~ Page 3, Item S Meeting Date 6/13/06 Item Amount Base Contract T.C. Construction Com an , Inc.) $ 399,650.00 Stabilization Work & Change Orders $ 23,643.13 Hudson Safe T Lite $ 5,106.68 Sweetwater Water Authorit $ 6,451.81 Cit Staff $ 115,000.00 Mactec (Geotechnical) $ 7,184.54 South Ba Fence Inc. $ 2,810.00 Commonwealth land Title $ 1,275.00 RCP Inc. $ 436.30 It should be noted that the prioritization of the known CMF has been completed and 50% of the most urgent pipe segments (red flags) have been replaced by City forces and through CIP projects. It should also be noted that the closed-circuit televising (CCTV) inspection also discovered additional CMF lines that still need to be inspected. Staff will return to Council at a later date to present a full report Attachments: 1 - March Council Informational Item 2 - June Council Informational Item 3 - Agreement and change orders M:\General Services\GS Administration\Council Agenda\DR 166 - First Ave. Emergency Drainage Facility Repair\A 113-1 Rev 060 I 06.doc 5-3 }-\'IT,ACHMENT / ~~f? ~ ~~"""'=:l-""" ~--""",-~ CllY Of CHUIA VISTA COUNCIL INFORMATIONAL ITEM March 7,2005 TO: The Honorable Mayor and City Council Dave Rowlands, City Manage6ft \) r.i Jack Griffin, Director of General Services~. /l _ Dave Byers, Director of Public Works Ope'h[ti.on~v/ EMERGENCY DRAINAGE FACILITY REPAIR WORK ON FIRST AVENUE, BETWEEN "H" STREET AND SHASTA STREET VIA: FROM: SUBJECT: At 3 :45 p.m. on Saturday, February 19, 2005, the City of Chula Vista Police Department alerted the Department of Public Works Operations regarding a sinkhole that had developed along First Avenue, betvveen "H" Street and Shasta Street. The sinkhole measured approximately six (6) feet in diameter and depth, as measured from nearest adj acent street elevation, and was situated within the traveled way of First Avenue. The sinkhole and surrounding area were immediately secured by City staff to prevent any other potential problems and to ensure public safety. Fortunately, no City staff or citizens were injured as a result of the sinkhole. After assessment of the situation, it was determined that the sinkhole resulted from fallure of storm drain facilities resulting from the overall age of the facilities and the heavy rainfall flowing through the drainage system. It appeared that the sinkhole was formed by high velocity storm flows that eroded the flowlines of the deteriorated drainage facilities and, subsequently, began eroding the underlying soils which created a void. Subsidence of the overlying soils and street improvements then occurred due to the existing void beneath the drainage facilities. The failed storm drain facilities included a l12-inch by 7S-inch Corrugated Metal Pipe Arch (CMP A) that served as a main trunk line for conveying storm runoff through the Central Basin and a 24-inch diameter Corrugated Metal Pipe (CMP) that was tributary to the CMPA section of storm drain. 5-4 In accordance with the emergency prOVISIon of Section 1009 of the City Charter, City staff contracted the services of T.C. Construction Company, Inc. (General Engineering Contractor License No. 402459) to help stabilize the sinkhole so that no further damage would be caused by the rains and until the emergency work could be performed. The stabilizing work included removal of the soils to the depth of the voids, and pumping approximately ten (10) cubic yards of concrete in the voids beneath the failed drainage facilities and over the top of the pipe arch. A 4 inch thick reinforced concrete bottom was also placed in the CMP A to prevent any further failure of the surrounding soils and trench plates capped off the hole at the surface. Currently, First Avenue remains closed to vehicular traffic between "H" Street and Shasta Street until the ultimate solution to the sinkhole is constructed. At present, City staff has designed the emergency repair work needed that involves removing all of the affected C11P A and C11P within the influence of the First Avenue roadway and replacing it with a concrete box culvert and reinforced concrete pipe, respectively. All proposed drainage facilities shall be sufficiently sized to handle the highest seasonal flows that could potentially reach the new facilities. The total cost for the emergency repair, as previously described, has been estimated at $500,000. The estimated time for said repair is 5-7 weeks from the notice of commencement plus any rain delays. The remaining segments of CMP A and CMP downstream of this area have been televised and appear to be in an acceptable condition that does not require immediate action. It should be noted that the General Services Department has recently advertised a Request for Proposals (RFP) to provide closed-circuit televising (CCTV) inspections and condition assessments for all of the City's corrugated metal drainage facilities. This will involve televising, inspecting, and rating the condition of approximately 88,000 lineal feet of corrugated metal drainage facilities within the City. The consultant services of Hirsch & Company will be retained by the City to perform the necessary work for the described project. The overall project will result in a list that will prioritize these drainage facilities for the annual storm drain rehabilitation project the City administers. It is anticipated that the consultant contract will be approved by City Council in late March 2005 and the project completed by November 2005. By being proactive with the realities of our aging C11P and CMP A system, the City will be better able to provide a safe environment for it's citizens and minimize the fiscal impact for any future problems and/or repairs that may arise due to the failure of corrugated metal drainage facilities. Cc: 2 5-5 z ; 1n" ""'HMIE'N p'\ ~ ",",v c: if ~Jft.- ~ ~~~....... ~-- """"-........ CllY OF CHULA VISTA COUNCIL INFORlVlATIONAL ITEM June 7, 2005 TO: The Honorable Mayor and City Council r;J Dave Rowlands, City Manager VIA: FROM: Jack Griffin, Director of General ServicetJj}.. UPDATE ON THE ElVIERGENCY DRAINAGE FACILITY REPAIR WORK ON FIRST AVENUE, BETWEEN "H" STREET AND SHASTA STREET SUBJECT: City staff and T.e. Construction Company, Inc (Contractor) have been diligently working to complete the Emergency Drainage Facility Repair on First Avenue. The estimated completion date is now the second week of July 2005. This date is different that the one provided on the previous informational item (attached) sent to Council in March because of weather and utility conflicts that were unknown at the time. Before the construction of the proposed Reinforced Concrete Box Culvert (RCBC), the Contractor and the utility agencies first had to relocate and/or adjust major utilities such as sewer, water, gas and electricity. Then, the existing corrugated metal pipe arch (C11PA) and surface improvements were removed. At that point, the construction for the RCBC followed in accordance with regional standards. The necessary curing times were observed in order to allow the concrete to achieve enough strength to proceed with backfilling. The RCBC has now been constructed and the Contractor is now replacing the surface improvements that were affected. Once the RCBC has reached the required strength for traffic loads and the surface improvements have been completed, the street will be re-opened to vehicular and pedestrian traffic. Staff has aggressively pursued informing residents around the improvement. The attached informational postcards were send to residents in the immediate vicinity (see attached mailing list) on 3111/05, and 4/28/05. Also, bi-weekly communication has been opened with the residents that are most directly affected. All in an effort to keep the public informed of the progress and the new completion date. Staff plans to follow with a Council Agenda Statement as soon as the project is completed. In addition, the closed-circuit televising (CCTV) inspections and condition assessments for all of the City's corrugated metal drainage facilities project (DR 164) approved by Council on 3/22/2005 by Resolution No. 2005-095, is 30% complete. The overall project will result in a list that will prioritize these drainage facilities for the annual storm drain rehabilitation project the City administers. It is anticipated that the consultant will complete the project by October 2005, one month earlier than expected. 5-6 693510700 5693510800 5693510900 ESIDENT RESIDENT RESIDENT )8 H ST 103 SHASTA ST 109 SHASTA ST HULA VISTA CA 91910 CHULA VISTA CA 91910 CHULA VISTA CA 91910 593511000 5693511100 5693511200 ESIDENT RESIDENT RESIDENT 13 SHASTA ST 119 SHASTA ST 121 SHASTA ST HULA VISTA CA 91910 CHULA VISTA CA 91910 CHULA VISTA CA 91910 593511300 5693520200 5693520300 ESIDENT RESIDENT RESIDENT 29 SHASTA ST 134 SHASTA ST 536 LINDA LN HULA VISTA CA 91910 CHULA VISTA CA 91910 CHULA VISTA CA 91910 593520400 5693520500 5693520700 ESIDENT RESIDENT RESIDENT ~2 LINDA LN 546.LINDA LN 537 LINDA LN HULA VISTA CA 91910 CHULA VISTA CA 91910 CHULA VISTA CA 91910 593520800 5693520900 5693521000 ESIDENT RESIDENT RESIDENT ~6 FIRST A V 542 FIRST A V 536 FIRST A V HULA VISTA CA 91910 CHULA VISTA CA 91910 CHULA VISTA CA 91910 ,)3521100 5693521200 5693521300 ESIDENT RESIDENT RESIDENT )2 SHASTA ST 108 SHASTA ST 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5694102400 ~SIDENT RESIDENT RESIDENT WHITNEY ST 92 WHITNEY ST 567 FIRST AV illLA VISTA CA 91910 CHULA VISTA CA 91910 CHULA VISTA CA 91910 94102500 5694102600 5694102700 ~SID ENT RESIDENT RESIDENT 9 FIRST AV 54 WHITNEY ST 58 WHITNEY ST illLA VISTA CA 91910 CHULA VISTA CA 91910 CHULA VISTA CA 91910 5-11 3/li Jor NOTICE OF EMER.GENCY DRAINAGE FACftlTY REPAIR WORK ON FIRST AVENUE, BETWEEN "HI< STREET AND SHASTA STREET At~:45 p.m. On Saturday" Febl1lclrY 19. 20Q5, the City of ehula. Vista Police Department alerted the Department of Public.. Wort<s Operations regarding a sinkhole that had deverapedalong First Avenue, oetween3H" Street and Shasta ~treef. The sinkhole measured approximatery:six; (6} feet -in drameter and depth., as measured from_nearest adjacent. street elevatiart;and was situated within the traveled way of First Avenue. The sinkhaleand sUrrOundihg' area were immediately secured by City staff to prevent any other patential problems and to' ensure pUblic safety.. Fortunately, nO' City staffor citize,ns were injured as a result of the sinkhole. After assessment of the situatian. it was determrnedthat the sinkhole resulted from failure of storm drain facilities-resulting fromtlie overall age of the facilities and the heavy rainfall trowing through. the drainage syStem.. . . - Currently, First Avenue remains dosed to vehicular traffic between "H" Street arid Shasta Street until the ultimate salutian to the sinkhole .Is constructed. At present, the area has been stabilized and City staff has designed the repair wark needed. The estimated time far said repair is 5-7 weeks from the notice of commencement plus any rain delays. We anticipate completion ofthework by the first week in May" of this year. If you have any questions pleasefeerfree to call Roberto Yano, Civil Engineer, at (619) 397-6217:. _ 5-12 1- /Z-B/Or- ~. . EMERGENCY DRA~NAGE FACILITY REPAIR WORK ON FrRST AVENUE. BETWEEN "H,t STREE"~ ANO'c SHASTA STREET . -~-' ,- ;--. ~ - '. .". ......"" The Emergency Drainage Facility Repair<on First Av~enueis scheduled fur completion. in..earty.-J~(Y-+:Ihe scn.edti~ wClc~rnodffied due to design modifications assodated~' utilitY'. C9nfycts".)?rfoF'tQ;.tn~f()r. construetion; preliminary activities . '.' . s;;,;.., '.- '-" .,' '. '" ,- " " '. ,', " . ineruded' the relecation andfor adjustment otmaIor utilities such as. sewer,Mlter, gas ande!eCtricity~ MaIor construction includes' the removal of the existing faired Corrugated Metaf Pipe.Arch (CMPAland- the construction of the' proposed Reinforced Concrete Box Culvert (RCScy.Said construction wm include wood forms toshape tlie-box, steeE rebar' -" . rcethe box and concrete to actually . construct it. After the concrete is all L U:lireachits required strength, surface improvements will be constructed and the road will be re-opened for vehicular and pedestrian traffic. - 'C. ",. - _.. -- - .'. As in any constructiotiendeavor~ !her ra inconveniences that develop in and. around the improvement. The Cifyappreciates your patience: in d'ealing with the traffic circulation" pedestriartcirculation, noise-, dust arid parking inconveniences that have resulted from this project.TtTe City- believes that this improvement is. an essential part of the regional public; starri:l'drafn system_ We are "working with our Contractor to reduce any inconveniences you. might experience asa result of this project If you have any qtJeSfions~or woufd' like more specific information aboutthe proje;ctple~~~ f:e~ fr~~ tq. ~!I~~Elerto, y aha, j9vil~ ~ngiJi<fer $~ 6 ~ 9~~9 7~6217 ~ ~.. '! ~\ ~. 1~. 1.:s' ~ '1l ~ t .r.~. ~ 1 i : "i. ~ ~. 1 I .ll~.." ~ "-~, ...; :; :~. : - :", ~: 5-13 ATTACHMENT 3 CHANGE ORDER & AGREEMENT 5-14 ~~~ ::--~ : .-..;: .-..;: .-..;: .-..;: ---~ ---.::..-.::.. em Of CHUlA VISTA DEPARTMENT OF PUBLIC WORKS OPERATIONS Date: August 16, 2005 File No. DR166 CHANGE ORDER NO.1 CONTRACT: Emergency Drainage Improvements First Ave. South of H Street. CONTRACTOR: TC Construction Company Inc. FINAL CHANGE ORDER BASED ON ACTUAL WORK AND QUANTITIES. The following changes shall be made to the referenced contract between the CITY OF CHULA VISTA and TC Construction Compnay. Inc. A. Increase Quantities Bid Item Approved Revised Increased Unit Unit Totai No. Description IQTY QTY QTY Tvoe Cost Increase I SO.OO I SO.OO SUBTOTAL AMOUNT INCREASE (A): $0.00 B. Decrease Quantities Bid Item Approved Revised Decreased Unit Unit Total No.. Description . QTY QTY QTY Tvpe Cost Decrease 1 Back charQe for Soils Tech 1 LS $90.00 ($90.00 2 Delete 15' of RCB 1 LS S14,310.00 ($14,310.00 SUBTOTAL AMOUNT DECREASE (B): ($14,400.00) C. Additional Items New Unit Unit Additional No. Description QTY Tvoe Cost Total T &M Ticket #24286 - (stabilization) clean and prep CMP A, weld 1 mesh for concrete slab 1 LS $ 4,267.43 $ 4,267.43 T&M Ticket #24287 - Install mesh reinforcing, place concrete false 2 bottom 1 LS S 7.046.07 S .7,046.07 3 T&M Ticket #39606 - Locate existing utilities 1 LS S 459.00 S 459.00 4 T &M Ticket #39607 - Locate existina utilities 1 LS $ 501.00 S 501.00 T&M Ticket #39627 - Removal of temp. concrete patch at bottom 0 5 existina CMPA 1 LS S 631.00 S 631.00 6 T &M Ticket #39634 - Locate existing utilities 1 LS S 410.00 S 410.00 7 T&M Ticket #39635 - Dewater and rearade bottom 1 LS S 805.00 S 805.00 8 T&M Ticket #39987 - Slurry voids in bottom of CMPA. 1 LS S 5.985.23 S 5.985.23 9 T&M Ticket #41812 - Locate existing utilities along SDGE packaae 1 LS S 2,568.40 S 2,568.40 T &M Ticket #41813 - Jack hammer concrete encasement around 10 SDGE packaae 1 LS S 1,060.00 $ 1.060.00 11 Existino CMPA repairs - Shorino, exploration, pump concrete 1 LS $ 8,000.00 S 8,000.00 steel plates and wateroroofino 12 Additional Curb, Gutter, Sidewalk and A.C. 1 LS S 6,310.00 $ 6,310.00 SUBTOTAL AMOUNT INCREASE (C): 38,043.13 Unit Cost Deleted Total SO.OO . $0.00 $23, 643. 13 ORIGINAL CONTRACT AMOUNT: PROJECT CHANGE ORDER INCREASE BASED ON ACTUAL FINAL QUANTITIES: TOTAL CONTRACT AMOUNT: S399,650.00 $23,643.13 $423,293.13 This contract change order will add 0 working days to contract The agreed upon total days and price included all costs For furnishing all tools. labor, materials, equipment, incidental costs and fees for performing the work in this contract change and no additional compensation will be due. It is agreed by the undersigned that this work shall be performed and materials furnished in accordance with the original (base) contract, Green Book specifications and applicable standard drawings. ~,,~ PRIDE AT WORK www.chulavista.gov 1800 Maxwell Rd. Chula Vista, CA 91911 Phone (619) 397-6000 5-15 1.'El Pnd_InnCalmpl" Rpcvcled PaoPr Agreement between City of Chula Vista and TC Construction Company Inc. FOREMffiRGENCYD~AGEUMPROVEMffiNTS FIRST AVE. SOUTH OF H STREET IN THE CITY OF CHULA VISTA, CALIFORNIA This agreement ("Agreement"), dated 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 of Chula Vista 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, TC Construction Company Inc., whose business is set forth on exhibit A paragraph 5, and whose place of business and telephone numbers are set forth on exhibit A, paragraph 6 ("Contractor"), and is made with reference to the following facts: RECITALS: WHEREAS, on February 19,2005, a sinkhole developed within First Avenue, between "H" Street and Shasta Street, and; WHEREAS, after assessment of the situation, it was determined that the sinkhole resulted from failure of storm drain facilities resulting from the overall age of the facilities and the heavy rainfall flowing through the drainage system, and; WHEREAS, the failed storm drain facilities included a I 12-inch by 75-inch Corrugated Metal Pipe Arch (CMPA) that served as a main trunk line for conveying storm runoff through the Central Basin and a 24-inch diameter Corrugated Metal Pipe (CMP) that was tributary to the CMP A section of storm drain, and; WHEREAS, in accordance with the emergency provision of Section 1009 of the City Charter, and Section 2.56.100 of the Municipal Code, City staff contracted the services ofT.C. Construction Company, Inc. (General Engineering Contractor License No. 402459) to help stabilize the sinkhole so that no further damage would be caused by the rains and to construct the emergency work needed once the design was done, and; WHEREAS, First Avenue remains closed to vehicular traffic between "H" Street and Shasta Street until the emergency repair work is constructed, and; WHEREAS, City staff has designed the emergency repair work needed that involves removing all of the affected CMP A and CMP within the influence of the First A venue roadway and replacing it with a concrete box culvert and reinforced concrete pipe, respectively. 5-16 NOW, THERFORE BE IT RESOLVED, that the City and Contractor do hereby mutually agree as follows: 1. Contractor's Duties A. General Duties Contractor shall perform all of the work 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", Contractor shalI 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 Contractor, from time to time reduce the Defmed Services to be performed by the Contractor under this Agreement. Upon doing so, City and Contractor agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with said reduction. D. Additional Services In addition to performing the Defined Services herein set forth, City may require Contractor to perform additional consulting services related to the Defmed Services ("Additional Services"), and upon doing so in writing, if they are within the scope of services offered by Contractor, Contractor 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. E. Standard of Care Contractor, 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. 2 5-17 F. Insurance Contractor represents that it and its agents, staff and sub-Contractors 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 Contractor, which names City 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 in the same manner as members of the general public ("Cross-liability Coverage"). G. Proof of Insurance Coverage. (1) Certificates of Insurance. Contractor 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. (2) Policy Endorsements Required. In order to demonstrate the Additional Insured Coverage, Primary Coverage and Cross-liability Coverage required under Contractor's Commercial General Liability Insurance Policy, Contractor shall deliver a policy endorsement to the City demonstrating same, which shall be reviewed and approved by the Risk Manager. H. Security for Performance. (1) Performance Bond. In the event that Exhibit A, at Paragraph 19, indicates the need for Contractor to provide a Performance Bond (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Performance Bond"), then Contractor 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 3 5-18 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 Contractor to provide a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Letter of Credit"), then Contractor 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 Contractor is in breach of the terms ofthis 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 Contractor 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 Contractor 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 Contractor agrees to obtain a business license from the City and to otherwise comply with Title 5 of the Chula Vista Municipal Code. 2. Duties of the City . A. Consultation and Cooperation City shall regularly consult the Contractor for the purpose of reviewing the progress of the Defined Services and Schedule therein contained, and to provide direction and guidance to achieve the objectives of this agreement. The City shall permit access to its office facilities, files and records by Contractor 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 Contractor's performance of this agreement. B. Compensation 4 5-19 Upon receipt of a properly prepared billing from Contractor 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 Contractor for all services rendered by Contractor 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 Contractor for out of pocket expenses as provided in Exhibit A, Paragraph 12. All billings submitted by Contractor shall contain sufficient information as to the propriety of the billing to permit the City to evaluate that the amount due and payable thereunder is proper, and shall specifically contain the City's account number indicated on Exhibit A, Paragraph 18 (C) to be charged upon making such payment. 3. Administration of Contract Each party designates the individuals ("Contract Administrators") indicated on Exhibit A, Paragraph 13, as said party's contract administrator who is authorized by said party to represent them in the routine administration of this agreement. 4. Term. This Agreement shall terminate when the Parties have complied with all executory provisions hereof. 5. Liquidated Damages The provisions of this section apply if a Liquidated Damages Rate is provided in Exhibit A, Paragraph 14. It is acknowledged by both parties that time is of the essence in the completion of this Agreement. It is difficult to estimate the amount of damages resulting from delay in performance. The parties have used their judgment to arrive at a reasonable amount to compensate for delay. Failure to complete the Defined Services within the allotted time period specified in this Agreement shall result in the following penalty: For each consecutive calendar day in excess of the time specified for the completion of the respective work assignment or Deliverable, the Contractor shall pay to the City, or have withheld from monies due, the sum of Liquidated Damages Rate provided in Exhibit A, Paragraph 14 ("Liquidated Damages Rate"). Time extensions for delays beyond the Contractor'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 5 5-20 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. 6. Financial Interests of Contractor A. Contractor is Designated as an FPPC Filer. If Contractor is designated on Exhibit A, Paragraph 15, as an "FPPC filer", Contractor is deemed to be a "Contractor" 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 Contractor is designated as an FPPC Filer, Contractor shall not make, or participate in making or in any way attempt to use Contractor's position to influence a governmental decision in which Contractor knows or has reason to know Contractor has a financial interest other than the compensation promised by this Agreement. C. Search to Determine Economic Interests. Regardless of whether Contractor is designated as an FPPC Filer, Contractor warrants and represents that Contractor has diligently conducted a search and inventory of Contractor's economic interests, as the term is used in the regulations promulgated by the Fair Political Practices Commission, and has determined that Contractor does not, to the best of Contractor's knowledge, have an economic interest which would conflict with Contractor's duties under this agreement. D. Promise Not to Acquire Conflicting Interests. Regardless of whether Contractor is designated as an FPPC Filer, Contractor further warrants and represents that Contractor 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 Contractor is designated as an FPPC Filer, Contractor further warrants and represents that Contractor will immediately advise the City Attorney of City if Contractor learns of an economic interest of Contractor's, which may result in a conflict of interest for the purpose of the Fair Political Practices Act, and regulations promulgated thereunder. 6 5-21 F. Specific Warranties Against Economic Interests. Contractor warrants and represents that neither Contractor, nor Contractor's immediate family members, nor Contractor's employees or agents ("Contractor Associates") presently have any interest, directly or indirectly, whatsoever in any property which may be the subject matter of the Defined 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. Contractor further warrants and represents that no promise of future employment, remuneration, consideration, gratuity or other reward or gain has been made to Contractor or Contractor Associates in connection with Contractor's performance of this Agreement. Contractor promises to advise City of any such promise that may be made during the Term oftrus Agreement, or for 12 months thereafter. Contractor agrees that Contractor 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. Contractor may not conduct or solicit any business for any party to this Agreement, or for any third party, which may be in conflict with Contractor's responsibilities under this Agreement, except with the written permission of City. 7. Hold Harmless 7.1 Indemnification and Hold Harmless Agreement With respect to any liability, including but not limited to claims asserted or costs, losses, attorney fees, or payments for injury to any person or property caused or claimed to be caused by the acts or omissions of the Contractor, or Contractor's employees, agents, and officers, arising out of any services performed involving this project, except liability for Professional Services covered under Section X.2, the Contractor agrees to defend, indemnify, protect, and hold harmless the City, its agents, officers, or employees from and against all liability. Also covered is liability arising from, connected with, caused by, or claimed to be caused by the active or passive negligent acts or omissions of the City, its agents, officers, or employees which may be in combination with the active or passive negligent acts or omissions of the Contractor, its employees, agents or officers, or any third party. The Contractor's duty to indemnify, protect and hold harmless shall not include any claims or liabilities arising from the sole negligence or sole willful misconduct of the City, its agents, officers or employees. This section in no way alters, affects or modifies the Contractor's obligation and duties under Section Exhibit A to this Agreement. 7.2 Indemnification for Professional Services. 7 5-22 ,._,~^,~~....,....~._-~.,-,------~~~"--",,~_..._~,~._~~~'._-~- As to the Contractor's professional obligation, work or services involving this Project, the Contractor agrees to indemnify, defend and hold hannless the City, its agents, officers and employees from and against any and all liability, claims, costs, and damages, including but not limited to, attorneys fees, losses or payments for injury to any person or property, caused directly or indirectly from the negligent acts, errors or omissions of the Contractor or Contractor's employees, agents or officers; provided, however, that the Contractor's duty to indemnify shall not include any claims or liability arising from the negligence or willful misconduct of the City, its agents, officers and employees. 8. Termination of Agreement for Cause If, through any cause, Contractor shall fail to fulfill in a timely and proper manner Contractor's obligations under this Agreement, or if Contractor 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 Contractor 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 Contractor shall, at the option of the City, become the property of the City, and Contractor shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused City by Contractor's breach. 9. Errors and Omissions In the event that the City Administrator determines that the Contractors' 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, Contractor 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. 10. Termination of Agreement for Convenience of City City may terminate this Agreement at any time and for any reason, by giving specific written notice to Contractor 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, Contractor 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. Contractor hereby expressly waives any and all claims for damages or compensation arising under this Agreement except as set forth herein. 8 5-23 11. Assignability The services of Contractor are personal to the City, and Contractor 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 subContractors identified thereat as "Permitted SubContractors". 12. Ownership, Publication, Reproduction and Use of Material All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced under this Agreement shall be the sole and exclusive property of City. No such materials or properties produced in whole orin part under this Agreement shall be subject to private use, copyrights or patent rights by Contractor in the United States or in any other country without the express written consent of City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such reports, studies, data, statistics, forms or other materials or properties produced under this Agreement. 13. Independent Contractor City is interested only in the results obtained and Contractor shall perform as an independent contractor with sole control of the manner and means of performing the services required under this Agreement. City maintains the right only to reject or accept Contractor's work products. Contractor and any of the Contractor'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 Contractor shall be solely responsible for the payment of same and shall hold the City harmless with regard thereto. 14. 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 ofthe Chula Vista Municipal Code, as same may from time to time be amended, the provisions of which are incorporated by this reference as if 9 5-24 fully set forth herein, and such policies and procedures used by the City in the implementation of same. Upon request by City, Contractor shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 15. Attorney's Fees Should a dispute arising out of this Agreement result in litigation, it is agreed that the prevailing party shall be entitled to a judgment against the other for an amount equal to reasonable attorney's fees and court costs incurred. The "prevailing party" shall be deemed to be the party who is awarded substantially the relief sought. 16. Statement of Costs In the event that Contractor prepares a report or document, or participates in the preparation of a report or document in performing the Defined Services, Contractor shall include, or cause the inclusion of, in said report or document, a statement of the numbers and cost in dollar amounts of all contracts and subcontracts relating to the preparation of the report or document. 17. Miscellaneous A. Contractor not authorized to Represent City Unless specifically authorized in writing by City, Contractor shall have no authority to act as City's agent to bind City to any contractual agreements whatsoever. B. Contractor is Real Estate Broker and/or Salesman If the box on Exhibit A, Paragraph 16 is marked, the Contractor 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, Contractor represents that neither Contractor, nor their principals are licensed real estate brokers or salespersons. C. 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 ifpersonally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified herein as the places of business for each of the designated parties. D. Entire Agreement 10 5-25 This Agreement, together with any other written document referred to or contemplated herein, embody the entire Agreement and understanding between the parties relating to the subject matter hereof. Neither this Agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. E. Capacity of Parties Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. F. Governing LawN enue 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 ofChula Vista, or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City of Chula Vista. 11 5-26 Signature Page To Agreement between City of Chula Vista and TC Construction Company Inc. FOREMffiRGENCYDRMNAGEIMPROVEMffiNTS FIRST AVE. SOUTH OF H STREET IN" THE CITY OF CHULA VISTA, CALIFORNIA IT WITNESS WHEREOF, City and Contractor have executed this Agreement thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: Dated: u.l t P:/\O~"" Dated: ~/8/~~ / / By rJr JOhnt5g4i, {IV City of Chula Vista Attest: Susan Bigelow, City Clerk Approved as to form: ,/12~ Exhibit List to Agreement (X) Exhibit A 12 5-27 ACKNOWLEDG:MENT State of California County of San Diego on~11 \ ( ',"AOOr) Date I personally appeared }ss. , before me Tina M. J aeschke, Notary Public, Name and Title of Officer (e.g., "Jane Doe, Notary Public") "S kGt r~) toKopp . Name(s) of Signer (s) j ~_.. TINA M. JAESCHKE I ... . COMM. #1517932 0 g. NOTARY PUBUC-CAUFORNIA (n (J SAN DIEGO COUN1Y 0 I ' . My Commission Expires f OCTOBER 4, 2008 Place Notary Seal Above 9d.personally known to me [ ] proved to me on the basis of satisfactory evidence to be the person\,s1 whose namefs) is/;tfe subscribed to the within instrument and acknowledged to me that he/~el urey executed the same in hisl46-lthi"rr authorized capacity(ieS), and that by hisll}.er/tbtrr signature(~ on the instrument the perso~, or the entity upon behalf of which the person~) acted, executed the instrument. WITNESS my hand and official seal 5.528 Exhibit A To Agreement between City of Chula Vista And TC Construction Company Inc. 1. Effective Date of Agreement: 2. City-Related Entity: (X) City ofChula 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: , a [insert business form] ("City") 3. Place of Business for City: City of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910 4. Contractor: TC Construction Company Inc. 5. Business Form of Contractor: () Sole Proprietorship () Partnership (X) Corporation 6. Place of Business, Telephone and Fax Number of Contractor: 10540 Prospect Ave. Santee, Ca 92071 619-448-4560 ph 619-571-1334 fx 13 5-29 7. General Duties: The general scope of the project involves the construction of drainage facilities on First Avenue south of "R" Street in the City of Chula Vista, CA. All work done shall be in accordance with the following: The Standard Specifications for Public Works Construction (2000) commonly referred to as the "Green Book", San Diego Regional Supplement Amendments (2000), Chula Vista Standard Special Provisions (2000), Regional Standard Drawings (2000), Chula Vista Construction Standards (2000), California Department of Transportation (Caltrans) Standard Plans and Specifications (July 1997), and State of California Manual of Traffic Controls, all as adopted by the City ofChula Vista are made a part of the Specifications. All provisions applicable to the work to be performed in accordance with these drawings and Special Provisions of this project shall apply whether specifically referred to herein or not. References to these Standard Specifications have been made in the Special Provisions. These references apply directly to the work the Contractor is to perform. The work in general includes, but is not limited to the following: Removal and disposal of existing improvements, excavation and grading, trenching, installation of asphalt concrete pavement, storm drain inlets, reinforced box culverts, transition structures, sewer manholes, sewer lines, protection and restoration of existing improvements, traffic control, and the construction of all appurtenances and other work as may be necessary to render the above improvements complete and workable. The items are to be constructed or finished and installed in a complete and workmanlike manner, in accordance with the plans and specifications. Such other items or details not mentioned above, that are required by the plans, Standard Specifications, or these Special Provisions, shall be performed, placed, constructed or installed. The work to be done is shown on Chula Vista Drawing Numbers 05024-01 through 05024-03. The p rk items e-tlul speCIfIcally re~ected ~n th; ~ !C\~ requested bid pro ent or these wor 1 e sIdered m the rT~ v . p sum or unit cost prices contained herein. y All work shall conform to the 2000 edition of the Standard Specifications for Public 14 5-30 Works Construction and as amended by the Standard Special Provisions except for the following changes andlor additions: 1-2 Definitions (p 1) Add or substitute for: Agency - the City of Chula Vista, State of California Board - the City Council of the City ofChula Vista Engineer - the City Engineer of the City of Chula Vista, acting directly or through properly authorized agents, such agents acting within the scope of the particular duties delegated to them. Laboratory - The designated laboratory authorized by the Engineer to test materials and work involved in the Contract. Notice - Shall be deemed to have been given if served personally on the Contractor or his/her authorized agent, or mailed to the Contractor postage prepaid. Standard Special Provisions - "Regional Supplement Amendments" for use with "Standard Specifications for Public Works Construction" approved and adopted by the San Diego County Regional Standards Committee. Chula Vista Standard Special Provisions - Standard Special Provisions prepared and approved by the City Engineer for use with "Standard Specifications for Public Works Construction" - 2002. Standard Specifications - "Standard Specifications for Public Works Construction" 2000 Edition "Green book" and all subsequent additions and revisions approved and adopted by the San Diego County Regional Standards Committee. Standard Plans - San Diego Area Regional Standard Drawings-2000 Edition, Chula Vista Construction Standards, 2002 Edition, details for standard structures, devices or instructions referred to on the plans or in specifications by title or number. State Standard Specifications - Portion of the State Standard Specifications, State of California, Department of Transportation, dated July 1999 and all subsequent additions and revisions. State Standard Plans - Portion of the State Standard Plans, State of California, Department of Transportation, dated July 1999 and all subsequent additions and revisions. 15 5-31 2-5 Plans and Specifications 2-5.1 General Add: (p 11) All authorized alterations affecting the requirements and information given on the approved plans shall be in writing. No changes shall be made of any plan or drawing after the same has been approved by the Engineer, except by direction of the Engineer. Finished surfaces in all cases shall conform to the lines, grades, cross sections, and dimensions shown on the approved plans. Deviations from the approved plans, as may be required by the exigencies of construction, will be determined in all cases by the Engineer and authorized in writing. 2-5.2 Precedence of Contract Documents Add: (p 11) In the event of any discrepancy between any drawing and the figures written thereon, the figures shall be taken as correct. 2-10 Authority of Board and Engineer Add: (p 14) Whenever the Contractor varies the period during which work is carried on each day, he/she shall give due notice to the Engineer, so that proper inspection may be provided. The Contractor shall pay a fee established by the City for inspection services, required outside of regular working hours, and on Saturdays, Sundays, and holidays recognized by the City. Any work done in the absence of the Engineer will be subject to rejection. 3-3.2.3 Markup Add: (p 17) (a) Work by Contractor. The following percentage shall be added to the Contractor's costs and shall constitute the markup for all overhead and profits: Labor 10% Materials 5% Equipment Rental 5% Other Items and Expenses 5% To the sum of the costs and markups provided for in this subsection, I percent shall be added as compensation for bonding. Work by Subcontractor. When all or any part of the extra work is performed by a Subcontractor, the markup shall be as follows: 16 5-32 A mark~up of 5% on the first $5,000 and 2.5% on work added in excess of $5,000 of the Subcontracted portion of the extra work. 3-5 Disputed Work Add: (p 18) ADMIN'ISTRATIVE CLAIMS REQUIREMENTS AND PROCEDURES: No suit shall be brought arising out ofthis Contract, against the City, unless a claim has first been presented in writing and filed with the City of Chula Vista and acted upon by the City of Chula Vista in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may be 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, Contractor shall meet and confer in good faith with City for the purpose of resol ving any dispute over the terms of this Contract. 4~ 1 Materials and Workmanship 4-1.3.3 Inspection by the Agency: Delete entire section and add Section 4~1.3.4 below: 4-1.3.4 Inspection by the Agency and Testing Add: (p 20) The Agency will provide all inspection of work and materials within the City limits of the City of Chula Vista. For private Contracts, all costs of inspection at the source, including salaries and mileage costs, shall be paid by the Permittee. Testing - City Contracts: When required by the Engineer, tests shall be made to determine compliance with the plans and specifications. The tests shall be performed by a laboratory approved by the Engineer. The City shall make the arrangements with the laboratory. The number oftests shall be determined by the Engineer. The Contractor shall give 24 hours advance notice on all calls for testing. The costs of these tests shall be borne by the City except for the tests that fail, which shall be paid for by the Contractor. 6-3 Suspension of Work Add: 17 5-33 (p 24) The City Engineer shall have the authority to suspend the work wholly or in part for such period as may be necessary to determine whether or not there has been compliance with any provisions of the Contract and all related documents due to the manner in which the work has been performed. %en the City Engineer orders suspension of the work for non-compliance with the Contract terms, said suspension shall in no event extend past one week (7 days) unless the City Engineer or his/her designee shall file upon the Contractor a notice of non-compliance of Contract terms. Delays and Extensions of Time General Revise to read as follows: / ~~ I (p 25) If delays are caused by unforeseen events beyond the control of both the I Contractor and the Agency, such delays will entitle 1~efontractor to an extension of time as provided herein, but the Contractor shal~ be entitled to damages or additional payment due to such delays. War, government regulations, labor disputes, strikes, fires, floods, adverse weather necessitating cessation of work, other similar action of the elements, political opposition, unintended deficiencies or delinquencies by the Agency in complying with legally-mandated conditions precedent to issuance of the Contract (such as, for example, failure to comply with environmental laws, public hearing requirements, delays caused by utility relocations and or installations, etc.) inability to obtain materials, equipment or labor, required extra work, or other specific reasons as may be further described in the Specifications may constitute such a delay. No extension of time will be granted for a delay caused by the inability to obtain materials unless the Contractor furnishes to the Engineer documentary proof of the inability to obtain such materials in a timely manner in accordance with the sequence of the Contractor's operations and the approved construction schedule. If delays beyond the Contractor's control are caused by reasons other than those mentioned above, but substantially equal in gravity to those enumerated, and an extension oftime is deemed by the Engineer to be in the best interests of the Agency, an extension of time may be granted, but the Contractor will not be entitled to damages or additional payment due to such delays. If delays beyond the Contractor's control are caused solely by action or inaction by the Agency, such delays will entitle the Contractor to an extension of time as provided in Subsection 6-6.2. 6-6.2 Extensions of Time Add: (p 26) It is further agreed that, in case the work called for under the Contract is not finished and completed in all parts and requirements within the time specified, the City 18 5-34 Council shall have the right to extend the time for completion or not, as may seem best to serve the interest of the City; and if it decides to extend the time limit for the completion of the Contract, it shall further have the right to charge to the Contractor, his/her heirs, assigns or sureties, and to deduct from the final payment for the work all or any part, as it may deem proper, of the actual cost of engineering, inspection, superintendence, and other overhead expenses which are directly chargeable to the Contract, and which accrue during the period of such extension, except that the cost of final surveys and preparation of fmal estimate shall not be included in such charges. The Contractor shall not be assessed with liquidated damages nor the cost of engineering and inspection during any delay in the completion of the work caused by Acts of God or of the Public Enemy, acts of the City, fire, floods, epidemics, quarantine restrictions, strikes, freight embargoes, and unusually severe weather or delays of subcontractors due to such causes; provided that the Contractor shall, within ten (10) days from the beginning of such delay, notify the Engineer, in writing, of the causes of delay, who shall ascertain the facts and the extent of the delay, and hislher findings of the facts thereon shall be final and conclusive. 6-6.3 Payment for Delays to Contract Revise to read as follows: (p 26) The Contractor may be compensated for delays caused solely by the failure of the Agency to furnish necessary rights of way, failure to deliver materials shown in the Contract Documents to be furnished by the Agency, or for the suspension of the work by the Agency for its own convenience or benefit. Without constituting a limitation on other events which may also not be for the convenience or benefit of the Agency, it shall be deemed to be not a suspension of work for the Agency's convenience or benefit if the cause of the suspension is, or is related to, one of the causes of delay identified or referenced in the first paragraph of Section 6-6.1. If the Contractor sustains a loss which could not have been avoided by the judicious handling of forces, equipment or plant, there shall be paid to the Contractor such amount as the Engineer may find to be fair and reasonable compensation for such part of the Contractor's actual loss as was unavoidable. 6-7 Time of Completion Add: (p 26) The Contractor shall not begin work on or before the date specified in the "Notice of Execution of Contract," which date shall not be less than one (1) calendar day following execution of the Contract by the City. T~e Contractor shall provide the City Engineer written notice of the specific date upon which he/she plans to commence work. Notice shall be given at least FORTY-EIGHT (48) hours in advance. Once work is started, the Contractor shall conduct hislher operations for continuous progress of work on a daily basis. 19 5-35 The Contractor shall prosecute the work to completion before the expiration of fifty (50) consecutive working days from the date he/she starts work and/or the date specified in the "Notice of Execution of Contract" whichever is earliest. 7-2.2 Laws Add: (p 28) Employment of Apprentices (This applies to Contracts requiring the payment of prevailing wages) Attention is directed to the provisions in Section 1777.5 (Chapter 1411, Statutes of 1968) and 1777.6 of the Labor Code concerning the employment of apprentices by the prime Contractor or any subcontractor under him/her who is awarded a Contract over $30,000 or 20 working days. Section 1777.5, as amended, requires the Contractor and subcontractor employing tradesperson (s) in any apprenticeable occupation to employ a ratio of not less than one apprentice for each five journeyperson (s), except under the following conditions: When unemployment in the area of coverage by the joint apprenticeship committee has exceeded an average of 15 percent in the 90 days prior to the request for certificate, or When the number of apprentices in training in the area exceeds a ratio of one to five, or If there is a showing that the apprenticeable craft or trade is replacing at least 1/30 ofits Journeyperson (s) annually through apprenticeship training on a statewide or local basis, or If assignment of an apprentice to any work performed under public works Contract would create a condition which would jeopardize hislher life or the life, safety, or property of fellow employees or the public at large, or if the specific task to which the apprentice is to be assigned is of such nature that training cannot be provided by a journeyperson (s). The Contractor is required to make contributions to funds established for the administration of apprenticeship programs ifhe/she employees registered apprentices or joumeyperson (s) in an apprenticeable trade on such Contracts, and if other Contractors on the public works site are making such contributions. The Contractor and any subcontractor under him/her shall comply with the requirements of Sections 1777.5 and 1777.6 in the employment of apprentices. Information relative to apprenticeship standards, wage schedule and other requirements may be obtained from the Director of Industrial Relations, ex officio the Administrator of Apprenticeship, San Francisco, California, or from the division of Apprenticeship Standards and its branch offices. 20 5-36 The City of Chula Vista is required to notify the Division of Apprenticeship Standards within five days of the award of any Contract covered under the above provisions. Attention is also directed to the provisions of Section 1776 of the Labor Code concerning "Payroll Records of Wages Paid: Inspection: Effect of Non-compliance: Penalties." The Contractor is required to be in conformance with this section. Copies of the wage reporting form are available from Division of Labor Standard Enforcement (DLSE). 7 -3 Liability Insurance Add: (P28) Bodily Injury and Property Damage Contractor must procure insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work under the contract and the results of that work by the contractor, his agents, representatives, employees or subcontractors and provide documentation of same prior to commencement of work. Certificates evidencing such coverage and applicable policy endorsements shall be submitted to the City Engineer at 276 Fourth Avenue. The insurance must be maintained for the duration of the contract. Minimum Scope of Insurance Coverage shall be at least as broad as: Insurance Services Office Commercial General Liability coverage (occurrence Form CGOOOl) including Insurance Services Office Form (G0009 11 88 Owners and Contractors Protective Liability Coverage Form - Coverage for Operations of Designated Contractor). Insurance Services Office Form Number CA 0001 covering Automobile Liability, Code 1 (any auto). Course of Construction insurance covering all risks of loss less policy exclusions. Minimum Limits of Insurance Contractor shall maintain limits no less than: 21 5-37 1. Commercial General Liability: (Including operations, products and completed operations) $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability insurance with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage. 3. Course of Construction: Completed value of the project with no coinsurance penalty provisions The City reserves the right to require insurance for amounts in excess of the minimums stated above. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either the insurer will reduce or eliminate such deductibles or self-insured retentions as they pertain to the City, its officers, officials, employees and volunteers; or the Contractor will provide a financial guarantee satisfactory to the City guaranteeing payment oflosses and related investigations, claim administration, and defense expenses. Other Insurance Provisions The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: The City ofChula Vista, its officers, officials, employees, agents, and volunteers are to be named as additional insureds with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the contractor, where applicable, and, with respect to liability arising out of work or operations performed by or on behalf of the contractor including providing materials, parts or equipment furnished in connection with such work or operations. The general liability additional insured coverage must be provided in the form of an endorsement to the contractor's insurance using ISO CG 20 10 11 85 or its equivalent. The contractor's insurance coverage must be primary insurance as it pertains to the City, its officers, officials, employees, agents, and volunteers. Any insurance or self- insurance maintained by the City, its officers, officials, employees, or volunteers is wholly separate from the insurance of the contractor and in no way relieves the contractor from its responsibility to provide insurance. Each insurance policy required by this clause must be endorsed to state that coverage will not be canceled by either party, except after thirty (30) days' prior written notice to 22 5-38 the City by certified mail, return receipt requested. Coverage shall not extend to any indemnity coverage for the active negligence of the additional insured in any case where an agreement to indemnify the additional insured would be invalid under Subdivision (b) of Section 2782 of the Civil Code. Contractor's insurer will provide a Waiver of Subrogation in favor of the City for each required policy providing coverage during the life of this contract. Course of Construction policies shall contain the following provisions: The City of Chula Vista shall be named as loss payee. The insurer shall waive all rights of subrogation against the City of Chula Vista. Acceptability of Insurers Insurance is to be placed with licensed insurers admitted to transact business in the State ofCaIifornia with a current A.M. Best's rating of no less than A- V. Ifinsurance is placed with a surplus lines insurer, insurer must be listed on the State of California List of Eligible Surplus Lines Insurers (LESLI) with a current A.M. Best's rating of no less than A X. Verification of Coverage Contractor shall furnish the City with original certificates and amendatory endorsements effecting coverage required by this clause. The endorsements should be on insurance industry forms, provided those endorsements conform to the contract requirements. All certificates and endorsements are to be received and approved by the City before work commences. The City reserves the right to require, at any time, complete, certified copies of all required insurance policies, including endorsements evidencing the coverage required by these specifications. Subcontractors Contractor must include all subcontractors as insureds under its policies or furnish separate certificates and endorsements for each subcontractor. AIl coverage for subcontractors is subject to all of the requirements included in these specifications. 7-4 Worker's Compensation Insurance Add: (p 29) Contractor shall provide certificates of insurance evidencing coverage as follows: Statutory Workers' Compensation insurance as required by the State of California and Employer's Liability insurance in the following limits: $1,000,000 Each Accident 23 5-39 $1,000,000 Disease - Policy Limit $1,000,000 Disease - Each Employee Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either the insurer will reduce or eliminate such deductibles or self-insured retentions as they pertain to the City, its officers, officials, employees and volunteers; or the Contractor will provide a financial guarantee satisfactory to the City guaranteeing payment oflosses and related investigations, claim administration, and defense expenses. Worker's compensation policies are to contain, or be endorsed to contain, the following provisions: Each insurance policy required by this clause must be endorsed to state that coverage will not be canceled by either party, except after thirty (30) days I prior written notice to the City by certified mail, return receipt requested. Contractor's insurer will provide a Waiver of Subrogation in favor of the City for each required policy providing coverage during the life of this contract. 7-10 Public Convenience and Safety 7-10.1 Traffic and Access Add: (p 32) All traffic control shall be done in accordance with the latest revised edition of the Manual of Traffic Controls prepared by the California Department of Transportation. The latest revised edition of the Work Area Traffic Control Handbook (WATCH) may be used as a handy reference for compliance but does not excuse the Contractor from not complying with the State manual. 7-13 Laws to be Observed Add: (p 34) Taxes All applicable State or Federal taxes shall be considered as included in the amount paid for the various items of work. The Contractor shall be responsible for payment of such taxes to the proper governmental authority. The Contractor shall keep fully informed and comply with all existing Federal and State laws and all Municipal Ordinances and Regulations of the City which in any manner affect those engaged or employed in the work, or the material used in the work, or which in any way affect the conduct of the work, and all such orders and decrees of bodies or tribunals having any jurisdiction or authority over the same. City of Chula Vista Resolution 3077 requires that all underground work be completed prior to the 24 5-40 street being surfaced. Contractors and all subcontractors shall be licensed in accordance with the provisions of Chapter 9 of Division ill of the Business and Professions Code, State of California. Unless otherwise specified, the Contractor shall procure all permits and licenses, pay all charges and fees, and give all notices necessary and incidental to the due and lawful prosecution of work. The Contractor and subcontractors shall have a valid City of Chula Vista Business License. Record Retention and Availability Add: (p 35) 1. The Contractor shall allow access by the City, the federal grantor agency, the Comptroller General of the United States, or any of their duly authorized representatives to any books, documents, papers and records of the Contractor pertinent to that specific Contract. The Contractor shall retain all required records for three years after final Payments are made and all other pending matters are closed. 9-1 Measurement of Quantities for Unit Price Work Add: 9-1.1 General (p 37) The estimate of the quantities of work to be done and materials to be furnished are approximate only, being given as a basis for the comparison of bids, and the City of Chula Vista does not expressly or by implication agree that the actual amount of work will correspond therewith, but reserves the right to increase or decrease the amount of any class or portion of the work or to omit portions of the work that may be deemed necessary or expedient by the Engineer. 9-3 Payment 9-3.2 Partial and Final Payment Add: (p 39) The Engineer shall, after the completion of the Contract, make a final estimate of the amount of work done thereunder and the value of such work, and the City shall pay the entire sum so found to be due after deducting therefrom all previous payments, all amounts to be kept and all amounts to be retained under the provisions of the Contract. All prior partial estimates and payments shall be subject to correction in the final estimate and payment. The fmal payment shall.not be due and payable until the expiration of35 days from date of acceptance of work by the City Manager and/or City Council. 25 5-41 It is mutually agreed between the parties to the Contract that no certificate given or payments made under the Contract, except the final certificate offinal payment, shall be conclusive evidence of the performance of the Contract, either wholly or in part, against any claim of the City, and no payment shall be construed to be in acceptance of any defective work or improper materials. And the Contractor further agrees that the payment of the final amount due under the Contract, and the adjustment and payment for any work done in accordance with any alterations of the same, shall release the City, City Council and the Engineer from any and all claims or liability on account of work performed under the Contract or any alteration thereof. 9-3.2 50 (p 39) Partial and Final Payment Delete: Second sentence of paragraph three (After percent whichever is greater). 9-3.3 Delivered Materials Add: (p 39) The City shall retain 50 percent of the value of the materials so estimated to have been furnished and delivered and unused as aforesaid as part security for the fulfillment of the Contract by the Contractor and shall monthly pay to the Contractor, while carrying on the work, the balance not retained, as aforesaid, after deducting therefrom all previous payments and all sums to be kept or retained under the provisions of the Contract. ADDITIONAL SECTIONS: 1. FEDERAL STATUTORY REQUIREMENTS FOR FEDERALLY ASSISTED CONSTRUCTION PROJECTS (Applicable to Contracts and Subcontracts which exceed $100,000) a. The Contractor agrees to comply with all applicable standards, orders, or regulations issued pursuant to the Clean Air Act, as amended (42 U.S.C. 1857 ET SEQ., as amended by Pub. 1. 91-604), and under the Federal Water Pollution Control Act, as amended (33 US.C. 1251 ET SEQ., as amended by Pub. 1. 92-500), Executive Order 11738, and regulations in implementation thereof (40 C.F .R., Part 14). The Contractor agrees to comply with all the requirements of Section 114 of the Clean Air Act and Section 308 of the Federal Water Pollution Control Act and all the regulations and guidelines listed thereunder. 26 5-42 The Contractor shall promptly notify the City of the receipt of any communication from the Director, Office of Federal Activities, EP A, indicating that a facility to be utilized for the Contract is under consideration to be listed on the EPA List of Violating Facilities. The Contractor agrees to include or cause to be included the requirements listed above in every non-exempt subcontract, and further agrees to take such actionas the Government may direct as a means of enforcing such requirements. 2. ENERGY EFFICIENCY The Contractor agrees that it shall comply with the mandatory standards and policies relating to energy efficiency which are contained in Title 24 (the State Energy Conservation Plan) which was issued in compliance with the Energy Policy and Conservation Act. 8. Scope of Work and Schedule: 8-01 REMOVAL AND DISPOSAL OF EXISTING IMPROVEMENTS All existing improvements required to be removed for construction of the new work shall become the property of the Contractor unless otherwise noted and shall be removed and disposed of in accordance with the provisions of Section 300-1 of the Standard Specifications, Regional Supplement Amendments, and as directed by the Engineer. Saw cutting of existing pavement and concrete prior to removal will be required and shall be in accordance with Section 300-1 of the Standard Specifications. The Contractor shall reduce or eliminate saw-cut slurry discharges to gutters, storm drains, and watercourses. The Contractor shall shovel, absorb, or vacuum the slurry residue from the pavement or gutters and remove from the site at all times The Contractor has sole discretion on the means of hauling away the removal items. The Contractor may use Contractor's own vehicles and employees to haul waste that is incidental to the contract. If Contractor self hauls waste material, he/she must designate the specific State permitted landfill or recycling facility that will be used to disposed of any waste material generated on the job. If the Contractor does not designate a State permitted disposal site, he/she shall obtain a hold harmless agreement acceptable to the City Risk Manager and the City Attorney. If the Contractor subcontracts for waste hauling, he/she is obligated to use the franchised waste disposal company that has an agreement with the City (currently Pacific Waste Services ({619} 637-5661). 27 5-43 For questions regarding waste disposal requirements, call the City of Chula Vista Conservation Coordinator at (619) 691-5122. For a listing of commercial recycling services or construction, demolition and yard waste sites, call the County of San Diego at (619) 974-2661. Compensation for removal and disposal of excess material, pavement, concrete, slabwork, blockwalls, retaining walls, fences, bushes, trees, roots, existing CMP A, existing CMP, inlets, manholes, sewer lines, existing RCP, etc. within the Contractors limits ofwork, is considered included in the contract lump sum price paid for Removal and Disposal of Exist Improvements 8-02 EXCAVATION AND SHORING All excavation, grading, export, import and re-compaction necessary to obtain the fInished grades as shown on the plan shall be done in accordance with Section 300 and 301 of the Standard SpecifIcations, Regional Supplement Amendments, applicable standard drawings, and as directed by the City. Section 4216/4217 of the Government Code requires aDig Alert IdentifIcation Number be issued before a "Permit to Excavate" will be valid. For your "Dig Alert" LD. number, call Underground Service Alert toll free at 1-800-422-4133 two working days before digging. The Contractor will be required to grade and prepare the subgrade for the new improvements : All roots under the new pavement work shall be removed within the top 12 inches of the fInished sub-grade and to a distance of 2 feet outside the limits of replacement. Work under this item shall include preparation of the existing grade for placement of the new improvements, and grading necessary to obtain the fmished grades shown on the plans. All under this section required for the removal of the old improvements and the construction ofthe new improvements is considered included in the lump sum paid for Excavation and Shoring. No additional compensation shall be paid to the contractor. The shoring method to be used shall be submitted to the Engineer for approval prior to commencing any operations requiring shoring. If an unforeseen condition is encountered due to the extents of the sinkhole. A price will be negotiated prior to any work being done. 28 5-44 8-03 REINFORCED CONCRETE BOX CULVERT CAST -IN-PLACE REINFORCED CONCRETE SINGLE BOX CULVERT FOR 185 FEET (:!:) All cast-in-place reinforced concrete box culvert specifications shall conform to the San Diego Regional Standard Drawings D-76A and D-76B for box culvert included at the end oft..~ese Special Provisions. Additional reinforcement for transition structures and access openings shall be done as shown on plans. Concrete strength and mix design shall be appropriate to meet construction schedule. All mixes shall be reviewed and approved by the Engineer. Transition structures shall be constructed with the same specifications as the SDRSD D-76 A and B, D-8l A and B with appropriate dimensions unless plans show a more conservative design. The Contractor shall not place concrete until the Engineer has inspected the reinforcing steel placement and integrity of the steel reinforcement. Bedding material shall conform to Section 306-1.2.1 and shall be a minimum of 6" below the bottom of the outside face of the box. Preparation of sub grade is assumed as 12" below the bottom of the outside face of the box. Crushed rock shall conform to Section 200-1.2 of the Standard Specifications. The Contractor shall pour the bottom of the RCP with an initial 6" high starter wall. The outside of the starter walls to the limits of excavation shall be backfilled with a 2 sack slurry. 2 sack slurry shall be used to backfill areas around the connections to existing improvements as shown on plans and in places where no compaction is possible (between the proposed RCB and H Street) and other location as directed by the Engineer. The Contractor shall construct a modified storm drain cleanout top per SDRSD D-9 (Type A-4) and M-3 for access purposes as shown on the plans. The Contractor shall also construct the steel plate covers and frame as shown on plans. Full compensation for furnishing all labor, materials, tools, equipment, structural backfill, slurry backfill, bedding, box culvert, disposing of excess materials, connection 29 5-45 to proposed and existing concrete structures, joints, additional traffic control, transition structures, access structures and other items necessary to construct the box culvert complete in place are included in the contract lump sum price for Reinforced Concrete Box Culvert. No additional compensation shall be allowed therefore. 8-04 BACKFILL FOR BOXCUL VERT All backfill, structural backfill, import and re-compaction necessary to obtain the finished grades as shown on the plans and all additional re-grading, import and re- compaction necessary to fill the excavation shall be done in accordance with Section 300 and 301 of the Standard Specifications, Regional Supplement Amendments, applicable standard drawings, and as directed by the Engineer. Said work is considered included in the lump sum price for Backfill for Box Culvert. 8-05 REPLACE IMPROVEMENTS ASPHAL T All asphalt concrete (AC) and seal coating shall be according to the provisions of Sections 203-6 and 302-5 of the Standard Specifications, Regional Supplement Amendments, Standard Special Provisions, and applicable Regional Standard Drawings. All asphalt concrete pavement shall be placed where shown on the drawings and shall be Type III-B2-AR4000 (3/4") and/or Type ill-C2-AR4000 (Yz") according to Section 400-4 of the Standard Specifications. A sand seal coat shall be included. The seal coat shall be SS-lh and shall be according to the provisions of Section 302-5.10 of the City ofChula Vista Standard Special Provisions. The Contractor shall submit ajob mix formula one week before paving for review by the City for each source of supply and type of mixture specified. The job mix formula shall indicate the percentage passing each specified sieve size and the percent of asphalt to be used for each asphalt concrete mixture to be incorporated in the work. Contractor shall tie-out all utilities prior to start of work. Before placement of the pavement the Contractor shall place identification locators on top of all manholes, valve lids, vault covers, etc. that must be raised by the Contractor or various utilities after the pavement operation. It is the responsibility of the Contractor to preserve the location of all manholes, valve lids, vault covers, etc. once they are covered by the overlay and before being raised to grade. The required section is as stated on the plans. CRUSHED AGGREGATE BASE 30 5-46 Crushed aggregate base shall conform to the requirements of Section 200-2.2, 200-1.1 and 200-1.2 of the Standard Specifications, Regional Supplement Amendments and Standard Special Provisions. The base shall be laid in thickness as shown on the drawings & cross sections. The required section is as stated on the plans. The Contractor shall cold plane the existing asphalt concrete pavement as shown on the plans and cross sections and shall be done in accordance with Section 302-5.2 of the Standard Specification and Regional Supplement Amendments. Areas that are cold planed shall be resurfaced with permanent pavement within 48 hours. CURB, GUTTER AND SIDEWALK P.C.C. curb and gutter (6"), 4-inch P.C.C. slabwork, shall be in accordance with Section 303-5 and 303-6 of the Standard Specifications, Regional Supplement Amendments and Standard Special Provisions, and with applicable Regional and City Standard Drawings. Concrete class to be per Section 201-1.1.2 of the Regional Supplement Amendments. All forming, finishing, joints, and curing shall conform to the appropriate sections of the Standard Specifications and the Standard Drawings. Newly placed curb and gutter shall be water tested to verify that no ponding occurs. Contractor shall remove and replace areas where ponding occurs. No grinding shall be permitted. P.C.C. curb and gutter, sidewalk, shall be in accordance with Section 303-5 of the Standard Specifications, Regional Supplement Amendments and with applicable Regional and City Standard Drawings. The limits of the cross gutter shall be constructed as shown on the plans. Concrete class to be per section 201-1.1.2 of the Regional Supplement Amendments. Unless otherwise directed by the Engineer, all concrete surface improvements shall be placed with 560C-3250. REINFORCED CONCRETE PIPE The Contractor shall furnish and install reinforced concrete pipe with the strength and sizes as shown on the plans. Reinforced concrete pipe shall conform to the provisions of Section 207-2 and 306 of the Standard Specifications, Regional Supplement Amendments and Standard Special Provisions. All reinforced concrete pipe shall be installed using the standard installation unless specifically noted otherwise on the drawing. Standard installation shall consist of trench and pipe bedding as shown on Regional Standard Drawing number D-60. The Contractor shall supply the following submittals for approval. Manufacturer and type of pipe 31 5-47 Bedding material shall conform to Section 306-1.2.1. Crushed rock shall conform to Section 200-1.2 of the Standard Specifications. STORM DRAIN INLET STRUCTURES All storm drain inlet structures shall be constructed per SDRSD number D-2, D-3, and any additional notes on drawings. The inlet on the east side shall be protected in place. The new connection RCP connection shall be made as shown on plans. The inlet on the west side shall be replaced in kind in the location shown on plans. CHAlN LINK FENCE New chain link fence shall be installed as shown on plans. All fence damaged by construction activities shall be replaced in kind. PAVEMENT STRIPING, MARKING, AND SIGNAGE All details and dimensions for traffic stripes and markings shall conform to the California Department of Transportation Traffic Manual and Maintenance Manual. Pavement stripes shall conform to Section 310-5.6 of the Standard Specifications and these Special Provisions. Existing traffic stripes and markings that do not conform to the Plans shall be removed by wet sandblasting in areas that are not to be repaved. Traffic line paint shall be rapid dry conforming to Section 210-1.6.3 and shall contain reflective material conforming to Section 210-1.6.5 of the Standard Specifications. The Contractor shall furnish the necessary control points for all striping and markings, and shall be responsible for the completeness and accuracy thereof to the satisfaction of the Engineer. Spotting shall be completed prior to the removal of any existing stripes. Existing stripes and markings shall be removed prior to painting new ones. Contractor shall remove pavement legends/markings, traffic striping, and associated raised pavement markers as shown on the plans. Existing raised pavement markers, when adj acent to a paint stripe which is to be removed, shall be removed and disposed of. Reflectorized pavement markers shall be installed on all lane lines and centerline striping per appropriate CalTrans "Detail Number." Blue reflectorized pavement marker for fire hydrant location to be installed per CalTrans Traffic Manual, Fig. 6-48. 32 5-48 Pavement markers shall conform to Section 85, "Pavement Markers" of the CalTrans Standard Specifications, and these Special Provisions. Pavement marker height shall be 0.70-inch minimum. "Low Profile" type markers will not be acceptable. If, for any reason, there will be a period of time after removal of existing striping and painting of new striping, during which public traffic will use all or a portion of any roadway in the project area, the Contractor shall provide temporary delineation with "chip seal markers" (Henberger Company, white (one-way), Type W, and yellow (two-way), Type Y, Temporary Pavement Markers, both types with reflective strips; or approved equal). These markers shall be either white or yellow, as directed by the Public Works Inspector, and shall be at maximum 24-foot centers. The markers will be placed either on the old lines which were just removed, or on new lines laid out by the Contractor, as directed by the City Engineer. The furnishing and installing of these markers shall be in addition to any other delineation (cones, signs, barricades, etc.) which are required for public safety. After Contractor has painted the new striping, Contractor shall remove and dispose of these temporary pavement markers. Signage shall be provided and installed by the Contractor in accordance with the plans. Traffic signs shall be installed per plans. Nothing in these Special Provisions shall relieve the Contractor from their responsibilities as provided in section 7-1.09, "Public Safety," of the CalTrans Standard Specifications, Section 7-10 of the Green Book, or Section 2-12 of these specifications. ADDITIONAL STRIPING NOTES: Painting traffic stripes (traffic lines) & pavement markings shall conform to Section 84-1, "General", & 84-3, "Painted Traffic Stripes & Pavement Markings", of the CalTrans Standard Specifications and these special provisions: Section 84-3.02, "MATERIALS", of the CalTrans Standard Specifications is amended to read: Paint for traffic stripes, crosswalks and pavements arrows shall conform to the following State specifications: Paint Rapid Dry Water-Borne, White & Yellow State Specification No. 8010-42L-30 Glass beads shall conform to State Spec. No. 8010-511-22 (Type II) Copies of State Specification for traffic paint and glass beads may be obtained from the 33 5-49 Transportation Laboratory, P.O. Box 19128, Sacramento, CA 95819, Tel No. (916) 739-2400. Thinning of paint will not be allowed. The paint shall be tested prior to use, or the manufacturer shall provide the City Engineer with a certificate of compliance in accordance with Section 6-1.07, "CERTIFICATE OF COMPLIANCE", of the CalTrans Standard Specifications. Said certificate shall certify that the paint complies with the specifications and that paint manufactured to the same formulation and process has previously passed state testing. A list of manufactures that have produced paint meeting State specification is available from the State's Transportation Laboratory. (Material supplied by manufacturers other than those that have manufactured approved paint will require complete testing.) The second paragraph in Section 84-3.03, "Mixing", of the CalTrans Standard Specifications is deleted. The Contractor will be required to paint traffic stripes and pavement markings and install raised pavement markers per CalTrans Standard Plans. All permanent 12 inch white crosswalks and limit lines shall be thermoplastic. Inside dimensions of all crosswalks to be 10 feet. All new striping and sandblasting of redundant striping shall be done by the Contractor. All new sandblasting of redundant striping shall be completed within forty-eight (48) hours of the changes. PROTECTION AND RESTORATION OF EXISTING IMPROVENIENTS Protection and restoration of existing improvements shall conform to Section 7-9 of the Standard Specifications for Public Works Construction and as described below. Trees, shrubs, and other plants that are not to be removed, and pole lines, fences, lot light, decorative rocks, signs, ac walkways, concrete driveways, markers and monuments, buildings and structures, conduits, pipelines under or above ground, sewer, gas, cable, electric, telephone and water lines, all highway or street facilities, and any other improvements or facilities within or adjacent to the right-of-way shall be protected from injury or damage. lfthe objects are injured or damaged because of the Contractor's operations, they shall be replaced or restored at the Contractor's expense. The Contractor shall take photographs of each property which clearly show the existing improvements prior to starting work and provide copies to the City. Worked performed under this section will ensure that the private property will be restored to an "As good As" or "Better Than" condition as compared to conditions existing prior to 34 5-50 ,_ ",. _~",_;",,_',,^~__,'_'_'~'~k~'."_"""'_""""~_'__'___~.'__"""_'''----- commencement of construction. The Engineer shall determine whether or not the private property has been restored satisfactorily. The Contractor shall obtain a letter of release from the property owner that restoration work has been done satisfactorily. Full compensation for furnishing all labor, materials, tools, equipment, and incidentals, and for doing all work involved in this section shall be considered as included in the lump sum prices paid for "REPLACE IMPRO\lE.MENTS" and no additional compensation will be allowed. 8-06 BYP ASS/MISC EXISTING SEWER LINE AND .MANHOLES The Contractor shall protect in place all sewer manholes and sewer lines in and near the work area. Manhole No.2 shall be protected in place. Manhole bottom shall be re- constructed per SDRSD S-2 to accommodate the connection of the new pvc pipe. Steps on the inside of manhole shall be sawed off. Manhole shall be adjusted to grade as necessary. The sewer bypass shall be constructed as shown on plans and per the following specifications. MANHOLES The metal step within the manholes shall be cut and grinded to remove any sharp edges and obtain a smooth surface. Furnish and install manhole as indicated and referenced. Included are excavation, shoring, dewatering ( as necessary), backfill and compaction and related items of work indicated and specified on the project plans specifications. The pre-cast concrete sections shall have a minimum strength of 4,500 PSI and the assembled manholes shall be capable of withstanding a continuous H-20 traffic load. Submit shop drawings and signed calculations indicating structural sizes, rebar, cement and load capabilities. Manhole frames and covers shall conform to the requirements of Section 206-3, "Gray Iron Castings" of the Standard Specifications. INSTALLATION REQUIREMENTS FOR P.V.C. PIPE (SDR-35) The Contractor shall furnish and install P.V.C. pipes with the sizes shown on the plans. AllPVC pipes shall be SDR-35 conforming to Section 207-17, "P.V.C. Plastic Pipe" of the Standard Specifications. 35 5-51 Saw cutting of existing concrete and asphalt concrete paving prior to removal will be required at all locations and shall be in accordance with Section 300-1 of the Standard Specifications. It is the responsibility of the contractor to furnish, install, and operate sewer by-pass system, including pumps, piping, generators, etc. Said system shall include redundancy. Contractors proposed by-pass system shall be submitted to the Engineer for review and approval. It is the responsibility of the contractor to furnish all equipment and related items of work required to produce a trench to install piping as indicated on the plans. Work shall conform to Section 306-1.1, of the Standard Specifications "Trench Excavation". It is the responsibility of the contractor to furnish and install crushed rock bedding (3/4") as indicated on the plans, conforming to Section 200-1.2 of the Standard Specifications. Backfill and compaction shall conform to the requirements of Section 306-1.3, "Backfill and Densification", and Section 306-1.32, "Mechanically Compacted Backfill", of the Standard Specifications. Trench backfill shall be densifiedlcompacted as shown on the plans. Contractor shall install pipe to lines and grades indicated and per manufacturer's written recommendations and perform the following: 1. TELEVISION INSPECTION (CCTV) Televise all pipelines (manhole to manhole) conforming to the requirements of SSPWC (2000), Section 500-1.1.5, "Television Inspection" and in accordance with SSPWC (2000) Section 306-1.4.8. The Contractor shall provide the Agency with a color VHS - format videotape and log sheet for each pipe run. 2. MANDREL TESTING Mandrel Testing per SSPWC (2000) Section 306-1.2.12 3. AIR PRESSURE TESTING Air Pressure Testing per SSPWC (2000) Section 306-1.4.4 Said work is considered included in the lump sum price for BypasslMisc. 36 5-52 8-07 PUBLIC CONVENIENCE AND SAFETY Public convenience and safety shall be according to Section 7-10 of the Standard Specifications for Public Works Construction and Regional Supplement Amendments. Before starting work, the Contractor shall submit traffic control plans for the City Engineer's approval. The Contractor shall comply with the traffic control plans. Traffic control shall conform to CalTrans "Manual of Traffic Controls", latest edition. The Contractor shall notify each affected resident in person seventy two (72) hours before starting the project and closing of driveways (if any). It is the responsibility of the Contractor performing work on a City street to maintain the traffic control devices and such additional traffic control devices as may be required to insure safe movement of traffic motorists, bicyclists and pedestrian around the work area and provide maximum protection and safety to construction workers as installed and supply by City. K-rail and crash barrier required on H street shall be provided and installed by the Contractor. The Engineer reserves the right to observe the traffic control plans in use and to make changes as field conditions warrant. Any changes will supersede the plans and will be done solely at the Contractor's expense. The Contractor shall be fully responsible for the adequacy of any traffic plan used. The Contractor shall notify the Engineer at least two (2) working days before starting any construction detour. pedestr . ay to prevent any ,/I U1Z.!jfV-<-- A chain link fence shall be placed around the Contractor's worksite. ,&- Said work is considered included in the lump sum price for BypasslMisc. 8-08 RELOCATION AND ADJUSTMENT (IF ANY) OF EXISTING UTILITIES All existing non-City owned utilities, if any, found within the limits of construction shall be relocated or adjusted to grade by the representative agency owning these utilities. All City owned utilities shall be adjusted per plans prior to pavement. Approximate location of utilities are shown on the plans. Contractor shall be responsible for contacting the respective utility company and coordinating and scheduling the respective work so as not to hinder the construction schedule. The concrete encasement required by SDGE over the ReB shall be included in the lump sum price for Replace Improvements and shall be done per SDGE's specifications. 37 5-53 8-09 CONSTRUCTION DURING PERIODS OF RAINFALL The Contractor shall take precautions to allow flow of storm water during periods of rainfall such that the flow will not damage private property or construction being accomplished under this contract. Any damage occurring shall be repaired at the expense of the Contractor, as well as clean-up of all areas required due to flow of mud, silt or debris from or into the construction operations. The Contractor shall be required to comply with all requirements of the Federal Environmental Protection Agencies construction permit criteria associated with the Federal National Pollution Discharge Elimination System. Further, the Contractor shall ensure that the construction activities meet the provisions specified in the California R WQCB, San Diego Region, Order 2001-01, NPDES No. CAS0108758, and the City ofChula Vista Storm Water Management and Discharge Control Ordinance (Chapter 14.20). The Contractor is required to implement Best Management Practices (BMPs) during construction to prevent pollution of the storm water conveyance systems. Also, adjacent storm drain inlets shall be protected at all times during the construction of the new improvements. Prior to "Notice to Proceed" with construction, the Contractor shall complete, sign, and submit the Construction Storm Water Management Plan (CSWMP) Form (Included as Appendix "A"), to manage storm water and non-storm water discharges from the site at all times. The CS WMP shall describe all BMPs to be implemented during construction. Specific BMP implementation may be dependent upon wet or dry season operations, all to the satisfaction of the Director of Director of Public Works Operations. Said work is considered included in the lump sum price for Bypass/Misc. 8-10 CONSTRUCTION SURVEYING Construction staking shall be provided by the City of Chula Vista Surveying Group. The project shall be staked and painted out as requested by the Contractor. Staking requests shall be in writing and presented to the Engineer at least 2 working days in advance. It is the Contractors responsibility to preserve construction stakes and marks. Any additional staking or re-staking shall be performed by the City at the Contractor's expense. The Contractor shall preserve all existing property corner monuments Existing monuments outside the actual work area destroyed by the Contractor shall be replaced 38 5-54 at the Contractor's sole expense by the City Surveying Group. 8-11 WAGE RATES Contractors are obligated only to pay minimum wage to persons employed by them for work under this contract. 8-12 NOTIFICATION OF UTILITY CO:MPANIES AND CITY The Contractor shall notify aU utility companies prior to starting work and shall coordinate his work with the company representatives. The location of the utilities shall be marked out at the project site prior to the Contractor beginning work. For location of existing facilities, contact the following: San Diego Gas and Electric Co. Pacific BeU Telephone Cox Cable T.V. Chula Vista Cable Otay Water District Sweetwater Authority City of Chula Vista 800-422-4133 800-422-4133 800-422-4133 800-422-4133 800-422-4133 800-422-4133 800-422-4133 Section 4216/4217 of the government code requires a dig alert identification number be issued before a "Permit to Excavate" will be valid. For your dig alert LD. number, call Underground Service Alert toll free at 1-800-422-4133 two working days before you dig. The Contractor shall notify the City's Engineering Inspection Division 48 hours prior to commencing work, and 24 hours in advance for calls for inspection. All work performed without benefit of inspection will be subject to rejection and removal. No additional compensation shall be paid to the Contractor for expenses incurred for repairing or replacing private utilities (e.g., water, gas, electric, telephone, etc.) damaged during removal of the various improvements. 8-13 SUBCONTRACTORS In accordance with the Subletting and Subcontracting Fair Practices Act commencing with Section 4100 of the Public Contract Code: 39 5-55 Each proposal shall have listed therein the name and address of each subcontractor to whom the bidder proposes to subcontract portions of the work in amount of 1/2 of 1 % of the total bid or $10,000, whichever is greater. The bidder's attention is directed to the other provisions of said act related to penalties for failure to observe the provisions by using unauthorized subcontractors or by making unauthorized substitutions. A sheet listing subcontractors as required herein is included in the proposal. All subcontractors are required to have a valid City ofChu1a Vista business license before a notice to proceed may be issued. The Contractor shall comply with Section 2-3.1 of the Standard Specifications and Regional Supplement Amendments and perform at least 50% of the contract work with his/her own organization. 8-14 CALLS FOR INSPECTION The Contractor shall give 24-hour notice on all calls for inspection. Any work performed without benefit of inspection shall be subject to rejection and removal. For inspection call 619-397-6128. 8-15 CLEANING AND CLEAN-UP Contractor shall not permit the adj acent property, public or private, to become dirty and unsightly because of work under this section or specifications. Use water or other means to control dust generated by work noted herein. All water and equipment necessary to provide dust control shall be included in the unit contract price bid for the project. 8-16 DAMAGE Should any work under this contract damage or cause to be damaged any item or items not scheduled to be removed, such items shall be restored to their original condition and position, or shall be replaced, all at the Contractor's expense. All repairs or replacements shall be performed to the satisfaction of the Project Engineer. 40 5-56 8-17 SUBMITTALS The Contractor shall furnish a list of the Contractor's sources of materials and the locations at which those materials will be available for inspection. Materials to be used in the work will be subject to inspection and test by the Engineer. The Contractor shall furnish without charge such samples as maybe required. The list must be furnished to the Engineer preferably before or at the time of the pre-construction meeting. The Contractor shall allow a minimum of (5) working days for review of submittals, and shall be furnished to the Engineer in sufficient time to permit inspecting and testing of materials to be furnished from the listed sources in advance of their use. Materials shall not be furnished or fabricated, nor any work done for which submittals are required. Neither review or approval of submittals by the Engineer shall relieve the Contractor from responsibility for errors, omissions, or deviations from the contract documents, unless specifically called to the attention of the Engineer. Submittals shall consist of the appropriate combination of catalog sheets, material lists, manufacturers' brochures, technical bulletins, specifications, diagrams, or product samples, necessary to describe a system, product, or item. Appendix "E" is a checklist of required submittals. 8-18 Schedule This contract shall be completed within 50 working days from the execution of contract. 9. Insurance Requirements: As stated in General Duties, sections 7.3 and 7.4 above. 10. Materials required to be supplied by City to Contractor: Plans and specifications. 11. Compensation: A. (x) Single Fixed Fee Arrangement.l For performance of all of the Defined Services by Contractor 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: 41 5-57 Single Fixed Fee Amount: $399.650.00 , payable as follows: Item Removal and Disposal of existing improvements Excavation and shoring Reinforced concrete box culvert Backfill for box culvert Replace improvements Bypass/Misc. Builder's risk insurance Fixed Fee $ 14.000.00 $ 54.000.00 $ 226.000.00 $ 14.450.00 $ 42.700.00 $ 43.500.00 $ 5.000.00 .,(, V (x) 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans which must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. B. () Phased Fixed Fee Arrangement. F or the performance of each phase or portion of the Defmed Services by Contractor 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. Contractor 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 Contractor as to said Phase. 42 5-58 Phase Fee for Said Phase 1. $ 2. $ 3. $ () 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans which must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. C. 0 Hourly Rate Arrangement For performance of the Defined Services by Contractor as herein required, City shall pay Contractor for the productive hours of time spent by Contractor in the performance of said Services, at the rates or amounts set forth in the Rate Schedule hereinbelow according to the following terms and conditions: (1) 0 Not-to-Exceed Limitation on Time and Materials Arrangement Notwithstanding the expenditure by Contractor of time and materials in excess of said Maximum Compensation amount, Contractor agrees that Contractor will perform all of the Defined Services herein required 43 5-59 of Contractor for, including all Materials, and other "reimbursables" ("Maximum Compensation"). (2) ( ) Limitation without Further Authorization on Time and Materials Arrangement At such time as Contractor shall have incurred time and materials equal to ("Authorization Limit"), Contractor shall not be entitled to any additional compensation without further authorization issued in writing and approved by the City. Nothing herein shall preclude Contractor from providing additional Services at Contractor's own cost and expense. Rate Schedule2 12. Materials Reimbursement Arrangement N/A 13. Contract Administrators: City: Roberto Yano, Civil Engineer Public Works Center 1800 Maxwell Road Chula Vista, CA 91911 Telephone: (619) 397-6217 Fax: (619) 397-6250 Contractor: Steve Coker TC construction Company, Inc. 10540 Prospect Ave. Santee CA 92071 619.448.4560 ph 619.448.3341 fx 14. Liquidated Damages Rate: ~;:[~ ::.$~.OOiCalendar Day ~ /' O{L "7 15. Statement of Economic Interests, Contractor Reporting Categories, per Conflict of Interest Code: (X) Not Applicable. Not an FPPC Filer. 44 5-60 ( ) 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 ofreal property. () Category No.5. Investments in business entities and sources of income of the type which, within the past t\Vo 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 "Contractor Associates" interests in real property within 2 radial miles of Project Property, if any: 16. ( ) Contractor is Real Estate Broker and/or Salesman 17. Permitted Snb Contractors: 18. Bill Processing: -45- 5-61 A. Contractor's Billing to be submitted for the following period of time: (X) Monthly ( ) Quarterly ( ) Other: B. Day of the Period for submission of Contractor's Billing: (X) First of the Month ( ) 15th Day of each Month ( ) End of the Month ( ) Other: C. City's Account Number: DR-I64 19. Security for Performance ( x) Material and Labor, per Appendix C $ (x) Faithful Performance Bond, per Appendix C$ ( ) Letter of Credit, $ ( ) Other Security: Type: Amount: $ (X) Retention. If this space is checked, then notwithstanding other provisions to the contrary requiring the payment of compensation to the Contractor sooner, the City shall be entitled to retain, at their option, either the following "Retention Percentage" or "Retention Amount" until the City determines that the Retention Release Event, listed below, has occurred: (X) Retention Percentage: 10% ( ) Retention Amount: $ Retention Release Event: ( ) Completion of All Contractor Services to the satisfaction of the Director of Public Works Operations. ( ) Other: as stated in General Duties above 20. Deliverables Constructed improvements per Drawing no. 05024-01 to 05024-03 and specifications herein. -46- 5-62 Appendix A NPDES 5-63 -47- Appendix B SUBMITTALS CHECKLIST Submittals for the following items, if applicable, must be delivered to the engineer before, or at the time of the pre-construction meeting: CJ Asphalt concrete CJ Portland Cement Concrete CJ Project schedule (Critical path format) CJ Bypass design CJ Shoring design CJ Manholes CJ CAB CJ Slurry CJ Steel Reinforcement CJ Backer Road CJ Joint Caulk -48- 5-64 Appendix C BOND FORMS -49- 5-65 BOND NO. SB0093454 BOND FOR MATERIAL AND LABOR KNOW ALL PERSONS BY THESE PRESENTS, that I1We T.C. cn:snu:TICN m'1l?1NY, Thl:. me Contractor in the Coatract herl:to annexed, as Principal and XL SPECIAITI:'Y INSJFAN:E <nMPANY ,a corporation organized and existing under the laws of the State of 8ELAWARE and duly authorized to tranSact business under till<: laws of me State of Califomia as a Surety, and are listed and approved under the United States Treasury Circular 570, are held and firmly bound unto the City of Chula Vista, located in San Diego County, California., in the sum of * ($ ---.. 399,650 00 ____ ) lawful money of the United States, forwnich payment, well and tru(yto be made, w~ bind ourselves, jointly and severally, firmly by these presentS. * THREE HUNDRED NINEI'Y NINE THOUSAND SIX HUNDRED FIFTY &,00/100 Signed, sealed, and dated APRIL 11. 2005 The condition of me above obligation is that ifsaid Principal, as Contractor in the Contract hereto annexed, or hislher or its subcontractor, fails to pay for any material. provisions, provender or other supplies, or teams used in, upon, for or about the performance of work contracted to be done by said Contractor, namely to furnish all tools, equipmel1t. apparatus, facilities, transportation, labor and material, other than materials, if any, agr<:ed to be furnished by the City necess..-uy to perform and complete, and 10 perform and complete in a good and workmanlike manner, the work of: DRAINAGElldPROVEMENTS FIRST AVE. SOUTII OF H STREET IN THE CITY OF CHULA VISTA, CALIFORNIA (DR-l66) in strIct conformity with the terms and conditions set forth in the Contract hereto annexed, or for work or labor done thereon of any kind, said Surety \vill pay the same in an amount not exceeding the sum herein above set forth, and also in case suit is brought upon this bond, a reasonable attorney's fee to be fixed by the courts. This bond shall inure to the benefit of any and all persons, companies, and corporations entitled to file claims under and by virtue of the provIsions of Chapter 7 (cornmencingwith Section 3247) ofTitle 1 S, Part 4, Division 3 of the California Civil Code, as amended and the said Surety, for value received, hereby stipulates and agrees that no change, extensi on of time, alteration or additi on to the terms of the Contract or to the work to be performed thereunder or the specifications accompanying the same shall in any way affect its ob ligations on this bond, and it does heteby waive notice of any such changes, extension of time, alteration or addition to the terms of the Contract or to the work or to the specifications. T.C. CONSTRUcrION COMPANY, INC. Company XL SPECIALTY INSURANCE COMPANY Company -50- 5-66 ,klJlt( (~ze.0f1 Contra~to~rint N7 -L.~ /~7c::m~Signarure) / (A:rach Proper Notarization) APPROVED TO FORM: City Attorney _. -51- 5-67 JAMES F. TEGHTMEYER, A'ITORNEY-IN-FACI' , ,. S~intfame) at. ~Tc-. s&cty (Sign~e 0 BOND NO. SB0093454 SURETY DISCLOSURE NOTICE CONCERNING FEDERAL TERRORISM RISK INSURANCE ACT You should know that, effective November 26, 2002, the US Congress enacted the Terrorism Risk Insurance Act of 2002 (the "Act"). Under the Act, any covered losses caused by certified acts of terrorism would be partially reimbursed by the United States under a formula established by federal law. Under this formula, the United States pays 90% of covered terrorism losses exceeding the statutorily established deductible paid by the insurance company providing the coverage. In accordance with this Act, we are providing this disclosure notice for bonds on which XL Specialty Insurance Company is the surety. DISCLOSURE OF PREMIUM The portion of the bond premium attributable to coverage for certified acts of terrorism under the Act is Zero Dollars ($0.00) 5-68 ":E{lit",.\t1?tf" .. . ': +:.:-':: :~:: .. THIS is NOT A BOND NllJ\ifSER ..... ...... ..... ....... .... ..... ....p ... ......... -.- .. KNOVV'A4PMEN Bt;rIj!;?$'PRESENT$.i:1hat the'~\~.R~g!A[ty INSURANCE COMPANY, a corporation organized and existing by virtue of the laws of the State ('Comfjai'iy" or "Corp6hiti6ri"), with offices'.'at 25 Independeiice Blvd'., Suite 400B, Warren, New Jersey, 07059, does hereby nominate; appoint; James F, Teghtmeyer, Nicki Edwards, Daniel P. Dofe, John T. Dole, Robert P. Dole xtsED POWER OF ATTORNEY 113024 of Delaware its true and lawful Attorney(s)-in-fact to make, execute, attest, seafand deliver for and on its behalf, as suretyy;$#t~s its.?ct and}Ji$iliii'(vhere req~ite#;:il.mfi;i@i~It.~q#~~:,.. undertakings. recognizances and written obligations in the nature thereof, the penal sum of no one of whicf:\'iariiU~i:iy e~nt to,~ceEili'$5tJ,OQO~qu():OO';Stll:;h',borkrsana"'.,,:'i" undertakings, when duly executed by the. aforesaid Attorney(s Hn.fact shall be binding' upon the said Gdri1~ariy,'~i;i fuIlY',~hd, tojbEl'same:exteh~,as if suMhi6nds. and ..{, undertakings were signed by the President and Secretary of the Company and sealed with it's corporiW:f.seal/:This p"QWer"~tAifurney i~igri;iili.tiod anc;(j$ signedJ~Y facsimile,? under and by the authority of the following Resolution adopted by the Board; of Directors of the Company on;tih:e 5tm:~y qtOecembenj'988:.. . :.:.::.,' ,,'.:;.,.::/ 'C;..-;... .:;'. .. ::;:.:.... .. .:::::,::... :::;~. "RESOLVED. That the President, or any Vice President of the Company or any person designated'b"y.'imy one ~hh~\tTjs hereby auth'd~zed to ~i~~Lt~:~;;wers of Attorney qualifying the attomey named in the given Power of Attomey to execute in behalf of the Company, bonds,. undertakings and air contracts of suretyship, and that any Secretary or any Assistant SecretarY of the Company be. and that each or any of them hereby is authorized to attest the execution of any such Power of Attorney, and to ..!~tti;igh thereto' the ~,e1ji)~ft,lhe Cor)'1!:r.aJiiy.;;",. ..."".,.. . ,,',",'. .."'."" '" .. :'f.8R.tHE~ RESOlii%i;DVThattb~sEgtiat~r.El:of~(jCifj'officei~~ the Seal of the Company may be affixed to any such Power of Attorney or to any certificate relating. thereto ..'bv.:f.lcsrhiiie, andj~iiYsui:hpo'w~h:if Atj:BiB~y:of certificate b~ring such facsimile signatures or facsimiie seal shall be thereafter valid and binding upon the Company with. fespes!,rii~~r'~~nd. unq~i:t~M~ or. cqtrtract of~etyshiP to~hich it is attached." ....:.~:-. .; Bond""~~ec1.iWd'un~~;thiS PQW~~f Attorner'h;ay b~~*ecuted.uT1d~rfacsimire signature and seal pursuant to the foilowing Resolution adopted by the Board of Directors of the Comp~~x/,H'AU9usfT',}.9.~TJ' .......'....' . . .. "".RESOLVED,'Tri~t the signature..6f Nichola~'/.i{.Brown Jr., as President of this Corporation, and the seal of this Corporation may be affixed or printed on any and all: bonds, undertakings,. recognizances, or other written obligations thereof, on any revocation of any Power of Attorney, or on any certificate relating thereto,. by facsimile, and any Power of Attomey, any revocation of any Power of Attorney, bonds, undertakings, recognizanc,:~, certificate or oth.~f.~ritten obli9~tiCln, bea~Dg,,~l;lCl;1J,!csimile signature or facsimile seal shali be valid and binding upon the Corporation. ... . ..'~... .., ..., .. ".., <,:;". .'..... IN WITNESS WHEREOF, the XL SPECIALTY INSURANCE COMPANY has caused its corporate se?Md:be~~~untq'i!iffi~~;;~nd the~~pr!l~~nts tq:pe signeqb'l its duly authorized officers this November 11 tho 2004. .. ..... .. ... ",'.. ...... '.... . ....-... ...... ."ST~tE OF.;'OEL:A'fiARE,'> cOQ.r'rrYOF N9W CAST~.E::' ..... i';XL S!?1;CI,AlTY INSURANCE COMPA.NY'.. ~'vl / ,1 r ( ) ..~ .,.-{..:.. . (d ?, fr . 7,;;.1.-....t, fi..' PRESIDENT BY Attest: C? v~ SECRETARY On this 11 th day of November. 2004, before me personally came Nicholas M. Brown Jr. to me known, who,qlilii:i!it!duly~worn, cii<J~~'pgse and,~y.\iiHiit ~.;;d~g~#@~~{:qtlhe Corporation described in and which executed the above instrument; that he knows the seal of said CO'1lpt~:tidh;lrat tl:leseaL.<ifli~i:\cftP:theafQ;ie$ard instt:iil1'leiltiS$[lCh"CPfPorate seal and was affixed thereto by order and authority of the Board of Directors of said Company; and that h~?;x~.cut~~;thes,a.jdi,~~~~f:11eiit b~.t\kEl'Btj!fer. ... .. 1..\\\tUJU.1/i1f'.... . ~~t.~~~~~ ;;::,e. "'JI"'" '.~.~ ~ gtfjl-...OUvrJ; .~~~ ~':f ~...... r*~ ;:'':,b._,~.:~ ~~..' u~1.;l.,.,"..;p~ ~;?-;;;;::~..~..IO~~ # "~".."""N~ ~ ~,,, . .."'c>r'4n.nl\\'~~ ~~tW~~~~~~~~~Y:"" REBECCActATRRSBALHOtJB NotarJ Pab1ic St.at&afNewJersey ;~~~~im Expires.S/8/2007 ~' NOTARY PUBLIC ~ Be~M,.J;Ji~eta, S~~r!lt~ry/~{the XL SPg91AL TY!~~};IJMK9E"'C6MPANY a corporation of the State of Delaware; do hereby certify that the above and forgoing is a full, true and correct';;(;ipy of PowEii"m Attorney issued't'iY' said Com.;i'iiriy.;, and that I have compared same with the originaL and that it is a correct transcripttherefrom and of the whole of the ariginal and that the said Power of Attorney is still in full, force and effect and bas not been revoked. IN WITNESS WHEREOF. r have hereunto set my hand and affixed the seal of said Company, at theCityofWill]jmrton, this 1.1 da\l~f APRII:t". .. ... ::.SECREl'Agy,,: 2(,)05" .._.:..-.;;:..... AD. .;.K( This. Power of Attorney may not be used to execute any bondwit.~iat;l/.iliceptiiifH date,<i#bi ..:. :;,. -......; . NOVemberji ,2998, ;" ., ~ ---'lElJi5;ciQ-9~en1(t~~l!iniedfoR ~ !f1lhe: lJa~lt8J'ol!utd _:~ 5-69 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of County of CALIFORNIA SAN DIEGO On APRIL 11, 2005 DATE before me, DANIEL P. roLE, NOTARY PUBLIC NAME. TITLE OF OFFICER. EG. "JANE DOE. NOTARY PUBLIC" personally appeared i<\K] personally known to me - JAMES F. TEGHTMEYER NAME(S) OF SIGNER(S) ~A A ~ A . . - ~ ~ . . A A ~ '0' FA ;l-C~A-LA 'S~-AAL' ... . . - . ~ .. waF'~ j 1 L... >- ~ .9:~ DANIEL R DOLE t :5 fi(~~~1'~ NOTARY PUl3LlC .CALl~O~NIA ~ en '~~,~:;a~j':,~, COMrvlIS;:,ION # 130 I 2 i 0 -; 1 ~'f'~~ SAN DIEGO COUNTY ~ ~ """aT' My Commission Exp. May 16, 2005 ~ , _ . . , . .. . v ~ V v V V V V v v v . . . . . v . . v V . ..........t to be the person~ whose name~ is/~ subscribed to the within instrument and ac- knowledged to me that he/~ executed the same In his/~ authorized capacity~), and that by his/~ signature(~) on the instrument the person~, or the entity upon behalf of which the person~ acted, executed the instrument. __~~~~;n~ , SIGNATURE OF NOTARY ........""... - OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER D INDIVIDUAL D CORPORATE OFFICER DESCRIPTION OF ATTACHED DOCUMENT TITLE OR TYPE OF DOCUMENT TITLE(S) D P ARTNER(S) o LIMITED o GENERAL @ ATTORNEY-IN-FACT o TRUSTEE(S) D GUARDIAN/CONSERVATOR D OTHER: NUMBER OF PAGES DATE OF DOCUMENT SIGNER IS REPRESENTING: NAME OF PERSON(S) OR ENTrrY(IES) XL SPECIALTY INSURANCE COMPANY SIGNER(S) OTHER THAN NAMED ABOVE 5-70 80-11333/94 ',">"' >._._...'d'...->_",_"_._._..,.~."_~_,".~_._~.'"""_'"_.,__"..,""'._...........~,,~~__~,~~__~.......~___-...__ ACKNOWLEDGMENT State of California }ss. County of San Diego .d-- I I .w'.... On I - ( l -'" L.~[:::) Date , before me Tina M. Jaescbke, Notary Public, Name and Title of Officer (e.g., "Jane Doe, Notary Public") personally appeared Ttle,..l0-f C iJ..fY1:€.ff2J5i'\-.-' ----! Name(s) of Signer (s) M personally known to me [ ] proved to me on the basis of satisfactory evidence to be the person(S) whose name(s-'J is/~ subscribed to the within instrument and acknowledged to me that he/s~/ t:l;(ey executed the same in hislh~th6ir authorized capacity(i~), and that by hislijer/th6ir signature(~) on the instrument the person(.$), or the entity upon behalf of which the person(~ acted, executed the instrument. I. TINA M. JAESCHKE I ~ .-.. COMM. #1517932 n u ~. NOTARY PUBUC.cAUFORNIA 0n CIt - SAN DIEGO COUNTY' -. i . My Commission ~es I OCTOBER 4, 20013 WITNESS my hand and official seal Place Notary Seal Above u~cc m . ~ fJ BrrL1)( Signature of Notary IlJliC 5..271 BOND NO. SB0093454 BOND FOR FAITHFUL PERFORMANCE KNOW ALL PERSONS BY THESE PRESENTS. that I/We T.C. illBIR.X:TICN CDPJ.INY, E. ~.the Contractor in the Contract hereto annexed, as Principal and XL SPECIALTY INSURANCE COMP~ corporation organized and e."cisting under the taws of the State of DELAv.rARE and duly authorized to transact business under the laws of me State of California as a Surety, and are listed and approved under the United States Treasury Circular 570, are held and firmly bound unto the City of Chula Vista., located in San Diego County, California, in the sum of * ($ 399,650.00 l lawful money of the United States, for which payment, well and truly to be made, WI:: bind ourselves. jointly and severally, firmly by these presents. * THREE HUNDRED NINEIY NINE THOUSAND SIX HUNDRED FIFI"i & 00/100 Signed., sealed, and dated APRIL 11, 2005 " The condition of the above obligation is that if said Principal, as Contractor in the Contract hereto annexed, shall faithfully perform each and all of the conditions of said Contract to be performed by himlher, and shall furnish all tools, equipmem, apparatus, facilities, transportation, labor and material., other than material, if any, agreed to be furnished by the City necessary to perform and complete in a good and workmanlike manner, the work of: DRAINAGE IMPROVEMENTS FIRST AVE. SOUTHOFH STREET IN THE CITY OF CHULA VISTA, CALIFORNIA (DR-166) in strict conformity with the terms and conditions set forth in the Contract hereto annexed, and shall payor cause to be paid, aU persons who perform labor for, or furnish materials to said Contractor, or to any subcontractor in the execution of the said Contract, then this obligation shall be null and void, otherwise to remain in full force and effect; and the Surety, for value received, hereby stipulat~ and agrees that no change, extension of time, alteration or addition to the terms of the Contract or to the work to be performed thereunder, or the specifications accompanying the same, shall be in any wise affect its obligations on this bond, and it does hereby waive notice of any such change, eXtension ofume, alteration or addition to the terms of the Contract or to the work or to the specifications. T.C. CONSTRUCTION COMPANY, INC. Company XL SPECIALTY INSURANCE COMPANY Company -52- 5-72 .c .." h4"'~~_"_~'~"_"'~~.'^_"__'~~'^'_"'"'_'__~."""''''-~~_..''''"............---~--,..,~..,....~ A,DPROVED AS TO FORM: City Attorney 5-73 JA1YlES F. TEGHTMEYER, ATTORNEY -IN-FAcr .. S~n~.Name) ~.1-. k1-; - . Surety (Sign~ ~ -53- BOND NO. SB0093454 SURETY DISCLOSURE NOTICE CONCERNING FEDERAL TERRORISM RISK INSURANCE ACT You should know that, effective November 26, 2002, the US Congress enacted the Terrorism Risk Insurance Act of 2002 (the "Act"). Under the Act, any covered losses caused by certified acts of terrorism would be partially reimbursed by the United States under a formula established by federal law. Under this formula, the United States pays 90% of covered terrorism losses exceeding the statutorily established deductible paid by the insurance company providing the coverage. In accordance with this Act, we are providing this disclosure notice for bonds on which XL Specialty Insurance Company is the surety. DISCLOSURE OF PREMIUM The portion of the bond premium attributable to coverage for certified acts of terrorism under the Act is Zero Dollars ($0.00) 5-74 :)J!'~PE<.1tE~Ji.~"Ui'::'J ,~~~.-::::. :;:~,;~:';;" ~:~I.t~~='r~Y THiS IS NOT A BOND NUi\tiBER '}r~ED POWER OF ATTORNEY A ~ 1,13023, ......,.. .., -..;.. KNOvi),Al;t:tMEN BitrHESg~RESENTS,J!~atthexb$PBGIA:tTY INSURANCE COMPANY, a corporation organized and existing by virtue of the laws of the State ("Comp~riY' or "Corporation"), with offices"~t25IndePeniJeMce 'Blvd., Suite 400B, Warren, New Jersey, 07059, does hereby nominate, appoint; James F. Teghtmeyer, Nicki Edwards, Daniel P. Dole, John T,. Dole, Robert P. Dole of Delaware its true and lawful Attorney(sj-in-fact to mal(e, execute, attest, seal and deliver for and on its behalf, as surety"?ri.if~s its act andd!:!~iii,'Where reqwr~J:jtanll;aM~aii:kq'~d~;, undertakings. recognizances and written obligations in the nature thereof; the penal sum of no one of WhIGl\i*m#riy e~l'1t to~*~~iQ:j$$q,oOq;~Q~tbO}~~h~onqs'a\id""T undertakings, when duly executed by the aforesaid Attorney( s Join-fact shall be binding upon the said C9il'\iilany..:a:iiifully.,#nd~jm~'saine)*tEit1f:as, if sLl~hli'oiTds <lrid . undertakings were signed by the President and Secretary of the Company and sealed with it's corporiite:seaL;rhis PQwer.:Q{A'ttbrney is''grai!jted anq,lS signed'Ji!l facsimile ::', under and by the authority of the following R!'!soiution adopted by the Board of Directors of the Compa'ily on me' 5th5i~y d(December:!'t988:"" /;,,' .,:i'::; .,. "RESOLVED, That the President, or, any Vice President of the Company or any person designated'~~:~ny one 6Hi\liikiif hereby authdHzed to eliedjf$.'pb'W~rs of Attorney qualifying the attorney named in the given Power of Attorney to execute in behalf of the Company, bonds, undertakings and all contracts of suretyship, and that any Secretary or any Assistant Secretary of the Company be; and that each or any of them hereby is authorized to attest the execution of any such Power of Attorney, and to ;;l1:t:a~h thereto the Seat(l{the Comp"'~.i.'", . <" """,:!'.,,:::,:,,,',":','::,,. :. fURTHER: RESO,t,VEpLThat tt:l,:i~giiai~t~#~i;i~h,'i:iffl~~fu,:iifl.d. the Seal of the Company may be affixed to, any such Power of Attorney or to any certificate reiating thereto .:: ~y:;r.iicsifl'ijfe, a.,o,ilriY'Sud'l.'Pow.ehif Attcitney:or. cei.tificate'beotr.fng such facsiinile signatures orfacsimile seal shall be thereafter valid and binding upon the Company with r~pecf)~ ap.y:b.giid, und'~~~~n.9,or Cqi:1tra:d.af S4~tyship to 'ifbiCh it is attached," Bonds,',~~ecut~d und~t this P(j,W~?of Attorne.Y;:rhay be,~*ecuted ul')q~tfacsimile signatlJre and seal pursuant to the following Resolution adopted by the Board of Directors of the Comp$.i:lyor(AuguS{7, 1997,:':.' U . u'" u ::'RESOLVED,'rhat the signature"bi Nicholas'M. 'Brown Jr., as President of this Corporation, and the seal of this Corporation may be affixed or printed on any and all bonds, undertakings, recognizances, or other written obligations thereof, on any revocation of any Power of Attorney, or on any certificate relating thereto, by facsimile, and any Power of Attorney, any revocation of any Power of Attorney, bonds, undertakings, recognjzanc~~, certificate or othe~written oblig~!i(ln, bearil1g.,~.uph.}acsimile signature or facsimile seal shall be valid and binding upon the Corporation. .. '. : .: u .. . .' . . IN WITNESS WHEREOF, the XL SPECIALTY INSURANCE COMPANY has caused its corporate sea.iXM.be h~~guntd.,~ffi~~~:,~hd the~pr~~iJts tO~~igne41iYits duly authonzed officers thiS November 11th, 2004. uu. ....u U "'..u uu.....u.u.... .U ..... ...... XXL SPECfALTYINSuRANCE COMPANY:' BY ?f(;"'.L ~(7h~,jZ, PRESIDENT ,,51' grE OFJ'ELAWARE' CqYN-rr'OF NEW CASTLE,"" u. u Attest c V- SECRETARY On this 11th day of November, 2004, before me personally came Nicholas M. Brown Jr. to me known, whoi~~':\luly sworn, diddf!~qse andsay:lhat hei~P.feSii:iehfbHhe Corporation described in and which executed the above instrument; that he knows the seal of said Corpo,raij;.iA;'ihat th~'seaLa#l~~dit(iiheaf9fesaid(~'strjjmeilti~5u&i'~qrp.orate seal an&was affixed thereto by order and authority of the Board of Directors of said Company; and that h~~ecutEl~the s~id il}j.i0!Ment by,':!i~e:8i}1er.,:X::",:","\: ~\,,\\l:Ulll1ut1'!j;.... ~~,,":.~~,ij";~ i:l:" ,0.' . . ';<c'>(;~ ~~l ,,+-O'T41i; '..~~ ~:f ......... 1*~ s. ~' :':::;:: ~d>." Paa'~ ,:;..:!f: ~~~... '. ..~~S" ~4~a .?~~~,~ i,": ..,.!r. ,,\~'L . : 8~~~~,~~~~~~~'..'" ;.::::" mmECCA. Cl.,(TRR SHALHOUB NotarJPub1ic State ofN'ew Jersey h '~~~~~~nu Expires 3/8/2007' NOTARY PUBLIC I; Be&M_l.1~'heta, S~ret~fl/;~lthe XL SPE,Ci'AL TYIN~LlRANQlf'c'bMPANY a corporation of the State of Delaware, do hereby certify that the above and forgoing is a full, true and corre2t~qpy of pow~~.'6j!'Atiorney issued)iV said coii!\p~h9)and that I have compared same with the original and that it is a correct transcript therefrom and of the whole of the original and that the. said Power of Attorney is still in full force and effect and has not been revoked. IN WITNESS WHEREOF, r have hereunto set my hand and affixed the seal of said Company, at the City of Wilmington, this 11 day"pf APRIJ.L, '$ECRET#R':i:"/ 2cQ5..... : .::::; . /f0""", K"..... N~emberH 200& This Power of Attorney may not be used to execute any bond wi!.~';af)'j4~ePti?H date.~~': ... - ~ ~- ~., , : ~~liiil~~a€~~~e,IJ.E;I~ pl(r~eir o",,~cI: 61'11.6 lJa(j;K~I(Ol:II~~' ,: . 5-75 CALIFORNIA All-PURPOSE ACKNOWLEDGMENT State of County of CALIFORNIA SAN DIEGO On APRIL 11, 2005 before me, DANIEL P. DOLE, NorARY PUBLIC DATE NAME. TITLE OF OFFICER. E.G. "JANE DOE. NOTARY PUBLIC" personally appeared l<tKJ personally known to me - JAMES F. TEGHTMEYER NAME(S) OF SIGNER(S) f" &.:~ -,. U' &. 'OFFICiALSS~L~' .,.. .~ j .~"'-" DANIEL P. DOLE t ~ iA \~) NOTARY PUBLlC - CA.UFORNIA ~ ~ \<=\~ "~ COfvlMISSION # 130,270 '; ~ \~~.y' SAN DIEGO COUNTY ~ ~ L v ~ v .~: ?vO~,~j::~~ ~~~ ~1~~ ~ ~;v2::~ J to be the person~ whose name~ is/~ subscribed to the within instrument and ac- knowledged to me that he/~ executed the same in his/~ authorized capacity~), and that by his/~ signature(~) on the instrument the person~, or the entity upon behalf of which the person~ acted, executed the instrument. and official seal. .........~-=> ...."""" OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and couid prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER o INDIVIDUAL o CORPORATE OFFiCER DESCRIPTION OF ATTACHED DOCUMENT TITLE OR TYPE OF DOCUMENT TITLE(S) o PARTNER(S) o LIMITED o GENERAL o ATTORNEY-iN-FACT o TRUSTEE(S) D GUARDIAN/CONSERVATOR o OTHER: NUMBER OF PAGES DATE OF DOCUMENT SIGNER IS REPRESENTING: NAME OF PERSON(S) OR ENTITY(IES) XL SPECIALTY INSURANCE C:OMPANY SIGNER(S) OTHER THAN NAMED ABOVE 80-11333/94 5-76 ACKNOWLEDG~IENT State of California }ss. County of San Diego On 4 - ( ( - 71..'icFj Date , before me Tina M. J aeschke, Notary Public, Name and Title of Officer (e.g., "Jane Doe, Notary Public") personally appeared TeetQ.Lj C CU'llet.0Yl ,J Name(s) of Signer (5) M personally known to me [ ] proved to me on the basis of satisfactory evidence t . l1NAM- ~. JAESCHKE f - CO~ M. #1517932 0 ~.. NOTARY PUBUC.cALIFORNIA !t! (J SAN CIEGO COUNTY u I ' . MV Ccmmfllicn !:;(pires i OCTOeeR 4, 2008 to be the person(s') whose name(.s) is/are subscribed to the within instrument and acknowledged to me that he/s~/ theY executed the same in his/h~/tlu(Ir authorized capacity(iys'j, and that by his/hef/tbiir signature~ on the instrument the personCs'), or the entity upon behalf of which the person(;r) acted, executed the instrument. WITNESS my hand and official seal Place Notary Seal Above ~ . ~ ,U-PttL m. IU!2-(!.-L{-0 Signature of Notary Pul5Hc V 5 ..5-J 7 RESOLUTION NO. 2006- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING THE FINAL REPORT OF EXPENDITURES FOR THE "EMERGENCY DRAINAGE FACILITY REPAIR WORK ON FIRST AVENUE, BETWEEN "H" STREET AND SHASTA STREET" AND RATIFYING THE ACTIONS OF THE CITY MANAGER AJ.'ID DIRECTOR OF GENERAL SERVICES FOR MAKING AND EXECUTING A CONTRACT FOR SAID EMERGENCY REPAIR WITH T.e. CONSTRUCTION COMPANY, INC. WHEREAS, on February 19,2005, the City ofChula Vista Police Department alerted the Department of Public Works Operation regarding a sinkhole that had developed along First A venue, between "H" Street and Shasta Street; and WHEREAS, the sinkhole was created by failed storm drain facilities (112 inch by 75 inch Corrugate Metal Pipe Arch (CMP A) and a 24 inch Corrugated Metal Pipe (CMP); and WHEREAS, in accordance with the emergency provisions of Section 1009 of the City Charter, City staff contracted the services of T.C. Construction Company, Inc. (General Engineering Contractor License No. 402459) for the repair; and WHEREAS, the repair was completed and the street was open to vehicular traffic on June 21, 2005; and WHEREAS, the Director of General Services and the City Manager agreed with the recommendation of staff on the necessity to proceed with the emergency repair because it will mitigate a potential total collapse of the existing CMP due to incoming rain storms that could cause serious damage to health and property; and WHEREAS, the Director of General Services and the City Manager agreed with the recommendation of staff on the necessity to proceed with the emergency repair because it minimized public inconvenience and safety hazards to the general public; and WHEREAS, this report represents the total expenditures for the repair. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby accepts the final report of expenditures for the "Emergency drainage Facility Repair Work on First A venue, Between "H" Street and Shasta Street" and ratifies the actions of the City Manager and Director of General Services for making and executing a contract for said emergency repair with T.e. Construction Company, Inc. Presented by Approved as to form by ~ ~S{\ ~ \~ \ ~ \. '\J'N \~\' '..'{:\ 'tV Ann Moore City Attorney Jack Griffin Director of General Services 5-78 '^"x."..<O~_,__._......"_~~,.~__'"..____,~~~__..--'__."~-~---_.,- COUNCIL AGENDA STATEMENT Item ---k..- Meeting Date 6/13/06 ITEM TITLE: Resolution Accepting for filing the Final Engineer's Report for Assessment District 2004-1 (Dixon Drive) Resolution Accepting the deferral of assessments and establishing the rate of interest of 5 percent per year and the financing period of a maximum often years applied to the deferrals for Assessment District 2004-1 (Dixon Drive) Resolution Authorizing the placement of a lien on the assessed property at the same time and in the same manner as other city taxes are collected for Assessment District 2004-1 (Dixon Drive) SUBMITTED BY: Director of General Services ~3~ /S. <:'j - ~ REVIEWED BY: City Manager jf ~ Y R (4/5ths Vote: Yes _ NoX) On September 13,2005, pursuant to the Improvement Act of 1913 (the "Block Act") and Article XIIID of the Constitution of the State of California ("Article XIIID"), Council adopted Resolution No. 2005-308 awarding a contract in the amount of$574,433.75 for the construction ofthe "Dixon Drive Between Naples Street and Oxford Street in the City ofChula Vista, California (STL-302)" Project to Scheidel Contracting and Engineering Inc. The work is now complete and a resolution must now be approved to accept filing of the Engineer's Report on the cost of construction, to approve the deferral of assessments and establishing the rate of interest and financing period applied to deferrals for assessment, and to authorize the collection of assessments on the County tax roll. RECOMMENDATION: That Council adopt resolutions: 1. Accepting filing of the Final Engineer's Report for Assessment District 2004-1 (Dixon Drive); 2. Accepting the deferral of assessments and establishing the rate of interest of 5 percent per year and the financing period of a maximum of 10 years applied to the deferrals for Assessment District 2004-1 (Dixon Drive); 3. Authorizing the placement of a lien on the assessed property and the collection of the assessment at the same time and in the same manner as other City taxes are collected for Assessment District 2004-1 (Dixon Drive). BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: On January 25,2005 Council adopted Resolutions 2005-028, 2005-029, and 2005-030 (Attachment A). Resolution 2005-028 accepted a petition signed by the property owners along Dixon Drive 6-1 Page 2, Item ~ Meeting Date 6/13/06 (Naples Street to Oxford Street) for the formation of an assessment district pursuant to the Block Act to finance the construction of missing sidewalk improvements. Resolution 2005-029 declared the intent to form Assessment District No. 2004-1, approved the Preliminary Engineer's Report, ordered the installation of certain improvements on Dixon Drive, set the time and place for a public hearing, and ordered the initiation of Assessment Ballot proceedings. Resolution 2005-030 adopted a map showing the proposed boundaries for Assessment District No. 2004-1. The following cost information was obtained from the Preliminary Engineer's Report and was included on the property owners' Assessment Ballots as the amount of the assessment proposed to be levied against each respective parcel. The total estimated construction cost, including the City's share, was $668,999.00. These ballots were subsequently mailed to the property owners on January 30,2005. Address 1104 Dixon Drive 1108 Dixon Drive 1112 Dixon Drive 1118 Dixon Drive 1122 Dixon Drive 1128 Dixon Drive 1134 Dixon Drive 1138 Dixon Drive 1144 Dixon Drive 1148 Dixon Drive 1154-56 Dixon Drive 1160-62 Dixon Drive 1166 Dixon Drive 1172 Dixon Drive 1178 Dixon Drive 1184 Dixon Drive 1188-90 Dixon Drive 1192-94 Dixon Drive 1103 Dixon Drive 1109 Dixon Drive 1113 Dixon Drive 1119 Dixon Drive 1123 Dixon Drive 1127 Dixon Drive 1133 Dixon Drive 1137 Dixon Drive 1143 Dixon Drive 1147 Dixon Drive 1153-55 Dixon Drive 1157-59 Dixon Drive 1161-63 Dixon Drive 1167 Dixon Drive 1173 Dixon Drive 1179 Dixon Drive 1183 Dixon Drive 1189 Dixon Drive 1195 Dixon Drive Parcel Number 619-151-11-00 619-151-12-00 619-151-13-00 619-151-14-00 619-151-15-00 619-151-16-00 619-151-17-00 619-151-18 -00 619-151-19-00 619-151-20-00 619-201-18-00 619-201-19-00 619-201-14-00 619-201-13-00 619-201-12-00 619-201-11-00 619-201-10-00 619-201-09-00 619-152-01-00 619-152-02-00 619-152-03-00 619-152-04-00 619-152-05-00 619-152-06-00 619-152-07 -00 619-152-08-00 619-152-09-00 619-152-10-00 619-202-08-00 619-202-09-00 619-202-10-00 619-202-01-00 619-202-02-00 619-202-11-00 619-202-12-00 619-202-05-00 619-202-06-00 Preliminary Cost Estimate $3,550.00 $3,515.00 $3,690.00 $3,457.50 $3,330.00 $5,920.00 $4,000.00 $4,130.00 $4,050.00 $4,530.00 $3,535.00 $5,548.00 $5,190.00 $6,240.00 $5,270.00 $4,370.00 $3,930.00 $4,150.00 $4,000.00 $4,160.00 $4,990.00 $4,710.00 $4,410.00 $4,910.00 $4,150.00 $3,830.00 $3,980.00 $6,230.00 $6,080.00 $9,450.00 $5,480.00 $5,720.00 $5,260.00 $7,230.00 $5,590.00 $5,310.00 $5,760.00 6-2 Page 3, Item L Meeting Date 6/13/06 On March 22, 2005 Council held the public hearing on the Dixon Drive sidewalk improvements. There was no public testimony, so the hearing was closed and ballots were tabulated. Since greater than 50% of the property owners, based on property frontage, voted in favor of the proposed assessments, Council adopted Resolution No. 2005-101 (Attachment B), which ordered the installation of improvements in accordance with Article XIIID of the California Constitution. In accordance with Section 20852 of the Public Contract Code, the City advertised and obtained sealed bids as part of a formal bidding process and awarded the contract to the lowest responsible bidder. On August 31, 2005, Design Staff received and opened bids from three contractors for the construction phase: CONTRACTOR BID AMOUNT 1. Scheidel Contracting and Engineering Inc. $574,433.75 2. Heffler Company Inc. $895,311.51 3. Portillo Concrete Inc. $948,240.00 The low bid by Scheidel Contracting and Engineering Inc. of$574,433.75 was $98,447.25 (15%) below the Engineer's estimate of$672,881.00. The Engineer's estimate was based on average prices for similar types of work completed during the last three years. Staff reviewed the low bid and recommended awarding a contract in the amount of $574,433.75 to Scheidel Contracting and Engineering, Inc. Scheidel Contracting and Engineering, Inc. completed the construction of improvements. Of the total construction costs, only concrete driveways and private improvement relocation were proposed to be assessed to the property owners. The final construction costs for the property owners' responsibilities totaled $150,077.07. Staff has completed the accounting of the expenditures and apportionment to property owners, as shown in the Engineer's Report (Attachment C). This document amends the Preliminary Engineer's Report adopted by Council on January 25,2005. Since the amounts now allocated to the property owners based on actual construction costs are equal to or less than the amounts originally included on the homeowners' ballots, an additional assessment ballot proceeding will not be required. The following amounts will be assessed to each property owner. These amounts are based only on construction costs for the driveway aprons and the relocation of private improvements. Preliminary cost estimates were based on estimated driveway quantities and estimated costs for the relocation of private improvements. Final assessments are based on actual quantities and the actual cost of the relocation ofthe private improvements. Driveway quantities may have increased or decreased from the preliminary estimates, due to necessary field adjustments during construction. Address 1104 Dixon Drive 1108 Dixon Drive 1112 Dixon Drive 1118 Dixon Drive 1122 Dixon Drive 1128 Dixon Drive Parcel Number 619-151-11-00 619-151-12-00 619-151-13-00 619-151-14-00 619-151-15-00 619-151-16-00 Preliminary Cost Estimate $3,550.00 $3,515.00 $3,690.00 $3,457.50 $3,330.00 $5,920.00 Final Assessment $2,716.25 $1,783.50 $1,945.88 $3,457.50 $1,906.50 $5,920.00 6-3 1134 Dixon Drive 1138 Dixon Drive 1144 Dixon Drive 1148 Dixon Drive 1154-56 Dixon Drive 1160-62 Dixon Drive 1166 Dixon Drive 1172 Dixon Drive 1178 Dixon Drive 1184 Dixon Drive 1188-90 Dixon Drive 1192-94 Dixon Drive 1103 Dixon Drive 1109 Dixon Drive 1113 Dixon Drive 1119 Dixon Drive 1123 Dixon Drive 1127 Dixon Drive 1133 Dixon Drive 1137 Dixon Drive 1143 Dixon Drive 1147 Dixon Drive 1153-55 Dixon Drive 1157-59 Dixon Drive 1161-63 Dixon Drive 1167 Dixon Drive 1173 Dixon Drive 1179 Dixon Drive 1183 Dixon Drive 1189 Dixon Drive 1195 Dixon Drive Page 4, Item L Meeting Date 6/13/06 619-151-17-00 619-151-18-00 619-151-19-00 619-151-20-00 619-201-18-00 619-201-19-00 619-201-14-00 619-201-13-00 619-201-12-00 619-201-11-00 619-201-10-00 619-201-09-00 619-152-01-00 619-152-02-00 619-152-03-00 619-152-04-00 619-152-05-00 619-152-06-00 619-152-07-00 619-152-08-00 619-152-09-00 619-152-10-00 619-202-08-00 619-202-09-00 619-202-10-00 619-202-01-00 619-202-02-00 619-202-11-00 619-202-12-00 619-202-05-00 619-202-06-00 $4,000.00 $4,130.00 $4,050.00 $4,530.00 $3,535.00 $5,548.00 $5,190.00 $6,240.00 $5,270.00 $4,370.00 $3,930.00 $4,150.00 $4,000.00 $4,160.00 $4,990.00 $4,710.00 $4,410.00 $4,910.00 $4,150.00 $3,830.00 $3,980.00 $6,230.00 $6,080.00 $9,450.00 $5,480.00 $5,720.00 $5,260.00 $7,230.00 $5,590.00 $5,310.00 $5,760.00 $4,000.00 $2,736.75 $2,644.50 $3,555.63 $3,535.00 $5,548.00 $3,905.25 $5,798.25 $4,033.50 $2,685.50 $2,952.00 $4,012.88 $2,342.13 $3,500.38 $3,170.25 $4,710.00 $2,931.50 $3,613.13 $3,676.25 $3,830.00 $2,905.88 $5,018.35 $4,701.05 $7,926.75 $3,966.75 $4,421.25 $3,814.75 $5,715.25 $5,590.00 $4,048.75 $3,116.00 Following confirmation of the final assessments, the property owners had the option of paying any portion of the assessments during the 30-day payoff period following the completion of improvements and confirmation of assessments. For Assessments not fully paid during that time, Section 5895 ofthe Streets and Highways Code permits the City to collect the unpaid balance over a maximum period often years, together with interest on the unpaid principal at a maximum rate of7 percent per year. Based on the current interest rates, the City will charge 5 percent interest for a period of ten years. Property owners had the option to pay the balance of their assessments at any time during the 30-day repayment period without penalty. This period ended on May 1, 2006. The remaining balance will be paid on tax rolls beginning in Fiscal Year 2006-07. The assessment taxes shall be collected in the same manner as ad valorem property taxes and shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency as applicable for ad valorem taxes. 6-4 Page 5, Item ~ Meeting Date 6/13/06 FISCAL IMPACT: A total of $890,256 was appropriated for planning, design work, and construction from the Jobs to Housing funds for the construction of missing sidewalk improvements and pavement reconstruction along Dixon Drive between Naples Street and Oxford Street. A total of$142,135.31 shall be the property owner's share (concrete driveway aprons and private improvement relocation) of the total construction cost. The amount of$142,135.31 received from the property owner's share will reimburse the CDBG fund for future Assessment Districts. Attachments: A. Resolutions 2005-028, 2005-029, 2005-030 B. Resolution 2005-101 C. Engineer's Report M:IGeneral ServiceslGS AdministrationlCouncil Agenda1STL-302 Dixon Drive Assessment DistIFinal AssessmentIDixon Drive Const Assessment Al 13.doc 6-5 A TTA,Q-\ HE,.j. T f.... RESOLUTION NO. 2005-028 RESOLUTION OF THE CITY COUNCIL OF THE CTIY OF CHULA VISTA ACCEPTING A PEffiION REQUESTING THE FORMATION OF AN ASSESSMENT DISTRlCT FOR DIXON DRIVE (NAPLES STREET TO OXFORD STREET) FOR THE PURPOSE OF FINANClNG THE CONSTRUCTION OF STREET IlvIPROVEMENTS WHEREAS, staff received a petition on November 2003, initiating the formation of an Assessment District for the construction of street improvements along Dixon Drive, from Naples to Oxford Street; and WHEREAS, twenty-eight of the thirty-eight property owners within the proposed district boundaries are in favor of the district formation; and WHEREAS, the petition complies with Section 2804 of the California Streets and Highways Code, which requires that the petition be signed by at least sixty percent of the area/front footage property owners; and WHEREAS, City Council's Policy No. 2952, Participation in 1913 Block Act Proceedings, requires that the City provide all engineering, inspection and administrative services, as well as paying for all relocation and reconstruction of the existing roadway, if required; and \VHEREAS, the property owners will be required to pay for the driveway aprons and the relocation of any private improvements within the City's right-of-way; and WHEREAS, staff conducted a public meeting and met with property owners on April 28, 2004, presenting the proposed improvements, financing mechanism, Assessment District formation process, and distributed prelimina.-y ballots; and WHEREAS, all property owners in attendance at the public meeting were in favor of the proposed Assessment District moving forward.. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby accept the petition requesting the formation of an Assessment District for Dixon Drive (Naples Street to Oxford Street) for the purpose of fInancing the construction of street improvements. Presented by Approved as to form by CA 'Y\A ~ Ann Moore - City Attorney 6-6 Resolution 2005-028 Page 2 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 25th day of January, 2005, by the following vote: AYES: Councilmernb~rs: Castaneda, Davis, McCann, Rindone and Padilla NAYS: Councilmembers: None ABSENT: Councilmembers: None ~dnfl-~ ATTEST: -;::- --5Lu. Lu.:J ~~ i 10- --' Susan Bigelow, NnvrC, City Cl rk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2005-028 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Cotmcil held on the 25th day of January, 2005. Executed this 25th day of January, 2005. ~.~l~(~ Susan Bigelow, MM:C, City Clerk -.- ---.--.._-- ._-.. - .... - - -- -~ -..- ---.- - 6-7 RESOLUTION NO. 2005-029 RESOLUTION OF THE CITY COUNCIL OF TIrE CITY OF CHULA VISTA DECLARING THE INTENTION TO FORM ASSESSMENT DISTRICT NO. 2004-1 (DIXON DRIVE), APPROVING THE PRELIMINARY ENGINEER'S REPORT, ORDERING THE INSTALLATION OF CERTAIN IMPROVE:MENTSON DIXON DRIVE (NAPLES STREET TO OXFORD STREET), SETTING THE TIME AND PLACE FOR A PUBLIC HEA.RING AND ORDERING THE INITIATION OF BALLOT PROCEDURES WHEREAS, the City Council of the City of Chula Vista. (the "City''), California, has been presented and has received a petition from certain property owners requesting the installation of certain sidewalk improvements, together with appurtenances and appurtenant work in connection therewith, such improvements to be installed pursuant to the provisions and authority of the "Municipal Improvement Act of 1913" (being Division 12 of the Streets and Highways Code of the State of California and City Council Ordinance No. 2952); and WHEREAS, the City Council, acting in response to such petition. desires to initiate proceedings to order the installation of the requested sidewalk improvements; and WHEREAS, the City Council, acting in response to such petition, also desires to initiate proceedings to form an assessment district to pay for the project pursuant to the provisions of the Streets and Highway Code, Article XIIID of the Constitution of the State of California ("Article XIIID") and the "Proposition 218 Omnibus Implementation Act" (Govermnent Code Section 53750 and following - the "Implementation Act") (the Municipal Improvement Act of 1913, Article XIIID and the Implementation Act may be referred to collectively herein as the "Assessment Law"); and WHEREAS, the assessment district shall be known and designated as Assessment District No. 2004-1 (Dixon Drive) (the "Assessment District"); and WHEREAS, there has been prepared and filed with this legislative body a report (the "Report") of the City Engineer, acting as the Assessment Engineer. pertaining to the proposed Assessment District as provided for in and required by the Assessment Law and the Report has been presented to this legislative body for its consideration. NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: SECTION 1. RECITALS. The above recitals are all true and correct. SECTION 2. DESCRIPTION OF IMPROVEMENTS. The public interest and convenience requires, and this City Council hereby orders the installation of the following public improvements: Curb, gutter, sidewalk and street improvements along both sides of Dixon Drive from Naples Street to Oxford Street. More specifically, property owners shall (only) be required to pay for driveway aprons and the relocation of private improvements in the City's right-of-way. 6-8 - .., ,- '~""".""'""'~"'''''' ~_."~._'""..,,-"".<._. -~~,...~~"~~~,....----=" Resolution 2005-029 Page 2 SECTION 3. PLANS AND SPECIFICATIONS. All of the above mentioned improvements shall be generally constructed at the grades, along the lines, between the points, and at the places and in the manner as shown on the piansand specifications for such improvements designated by the name and number of the Assessment District which are on file in the office of the Director of Public Works. For all particulars as to the alignment of the improvements and a full and detailed description of such improvements, referenced is hereby made to such plans and specifications. SECTION 4. AREA OF SPECIAL BENEFIT. The improvements, in the opinion of this City Council, will be of special benefit to the abutting and fronting properties and, subject to support by the owners of the properties proposed to be assessed of the levy of such assessments pursuant to the assessment ballot procedures described below, this City Council hereby makes the expenses of such improvements assessable upon the properties within the proposed boundaries of the Assessment District. For a general description of the Assessment District and area of special benefit, reference is made to the map of the boundaries of the Assessment District identified as "PROPOSED BOUNDARIES OF ASSESSMENT DISTRlCT NO. 2004-1 (DIXON DRIVE)". A copy of such map is on file in the office of the Director of Public Works and open to public inspection during normal office hours of such department. SECTION 5. CONSTRUCTION OF THE IMPROVEMENTS. This City Council fmds that the o\.Vtlers of the properties within the proposed boundaries of the Assessment District have, pursuant to Streets and Highways Code Section 5879, waived the sixty day period within which such owners may construct such improvements. Therefore, the City Council hereby orders the Superintendent of Streets to cause the construction of the improvements. Such order shall be subject to the condition precedent that the owners of the properties proposed to be assessed for the costs of such construction support, through the assessment ballot proceedings, the levy of such assessments. . SECTION 6. AUTHORITY FOR CONSTRUCTION. All of the construction proposed shall be done and carried through and financed pursuant to the applicable provisions of the Municipal Improvement Act of 1913 and City Council Ordinance No. 2952. SECTION 7. APPROVAL OF THE REPORT. The Report referred to herein above is adopted, passed upon, and preliminarily approved, and contains the follOwing: A. The plans and specifications for the improvements proposed to be constructed; and B. The Assessment Engineer's estimate of the itemized and total costs and expenses of the construction of the improvements and of the incidental expenses in connection therewith contained in the Report including that portion of such costs and expenses representing the special benefit to be conferred by such improvements on those parcels within the Assessment District; and C. The diagram showing the Assessment District and the boundaries and dimensions of the respective subdivisions of land within such Assessment District, as the same existed at the time of the passage of this resolution, each of which subdivisions have been given a separate number upon such diagram, as contained in the Report; D. The proposed assessment upon the several subdivisions of land in the Assessment District, in proportion to the estimated special benefits to be conferred on such subdivisions, respectively, by the improvements to be constructed, and of the incidental expenses thereof as contained in the Report; and ' _. .-. "-'_' _4______.___.. ----. 6-9 Resolution 2005-029 Page 3 E. A description of the improvements to be constructed, The Report shall stand as the Report of the Assessment Engineer for the purpose of all subsequent proceedings had pursuant to the Assessment Law. SECTION 8. NOTICE OF PUBLIC HEARING. Notice is hereby given that a public hearing to consider protests to the proposed assessments is hereby scheduled to be held at the City Council meeting room of the City of Chula Vista located at 276 Fourth Avenue, Chula Vista, California on March 15, 2005 at 6:00 p.m. As such public hearing, the City Council will hear and pass upon objections or protests, if any, which may be raised orally or in writing by any property owner or any other interested person. In addition, pursuant to the provisions of the Assessment Law, each record owner of property proposed to be assessed has the right to submit an assessment ballot in favor of or in opposition to the proposed assessment. Assessment ballots will be mailed to the record owner of each parcel located within the Assessment District and subject to a proposed assessment. Each such owner may complete such assessment ballot and thereby indicate their support for or opposition to the proposed assessment. All such assessment ballots must be received by the City Clerk at the following address at or before the time set for the close of the public hearing: City Clerk, City of ChuIa Vista 276 Fourth Avenue Chula Vista, California 91910 An assessment ballot received after the close of the public hearing will not be tabulated even though the postmark on the envelope transmitting the assessment ballot is dated on or before the date of the public hearing. At the conclusion of the public hearing, the City Council shall cause the fInal tabulation of the assessment ballots timely received. If a majority protest exists, the City Council shall not impose an assessment within tbe Assessment District A majority protest exists if, upon the conclusion of the public hearing, assessment ballots submitted in opposition to the assessments within the Assessment District exceed the assessment ballots submitted in favor of such assessments. In tabulating the assessment ballots, the assessment ballots shall be weighted according to the proportional financial obligation of the affected property. SECTION 9. Order to Provide Notice. The City Clerk is hereby directed to mail or cause to be mailed notice of the public hearing and the adoption of this and of the filing of the Report, together with the assessment ballot materials, to the record owner of all real property proposed to be assessed. Presented by Approved as to form by ~~~DUector CA~ Ann Moore City Attorney 6-10 Resolution 2005-029 Page 4 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 25th day of January, 2005, by the foHowing vote: AYES: Councilmembers: Castaneda, Davis, McCann, Rindone and Padilla NAYS: Councilmembers: None ABSENT: Councilmembers: ATTEST: ~ ~--L16..J... ~~ Susan Bigelow, :M11C, City Cler STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2005-029 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 January, 2005. Executed this 25th day of January, 2005. -~ --==tu..tL.. ~\:~ Susan Bigelow, MtvlC, City Clerk .--.--........-. - - - - . 6-11 RESOLUTION NO. 2005-030 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTmG A MAP SHOWING TIlE PROPOSED BOUNDARIES FOR ASSESSMENT DISTRICT NO. 2004-1 (DIXON DRIVE) WHEREAS, the City Council of the City of Chula Vista, California, has been presented and has received a map showing and describing the boundaries of the area proposed to be assessed in an assessment district under the provisions and authority of the "Municipal Improvement Act of 1913", being Division 12 of the Streets and Highways Code of the State of California and City Council Ordinance No. 2952; said assessment district known and designated as Assessment District No. 2004-1 (Dixon Drive) (the "Assessment District"). NOW, THEREFORE, BE 1 T RESOLVED AS FOLLOWS: SECTION 1. The above recitals are all true and correct. SECTION 2. A map showing the boundaries of the proposed Assessment District and lands and property to be assessed to pay the costs and expenses of the proposed acquisition of certain public improvements designated as "PROPOSED BOUNDARIES OF ASSESSMENT DISTRICT NO. 2004-1 (DIXON DRIVE)" is hereby submitted, and the same is hereby approved and adopted. SECTION 3. The original map of the boundaries of the proposed Assessment District and one copy thereof is to be filed in the Office of the City Clerk. SECTION 4. A certificate shall be endorsed on the original and on at least one copy of the map oft.l-te Assessment District, evidencing the date and adoption of this resolution, and within fifteen days after the adoption of the resolution fixing the time and place of hearing on the formation or extent of the Assessment District, a copy of such map shall be filed with the correct and proper endorsements thereon with the County Recorder, all in the manner and form provided in Section 3111 of the Streets and Highways Code of the State of California. Presented by Approved as to form by ~~~ Ann Moore City Attorney 6-12 Resolution 2005-030 Page 2 PASSED, APPROVED, and ADOPTED by the City COtUlcil of the City ofChula Vista, California, this 2501 day of January, 2005, by the following vote: AYES: Councilmembers: Castaneda, Davis, McCann, Rindone and Padilla NAYS: Counciimembers: None ABSENT: Councilmembers: None ATTEST: -~ 6---. c-:3'~~ Susan Bigelow, MMC, City Cle STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA) I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2005-030 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 January, 2005. Executed this 25th day of January, 2005. ~~ O-J-'~ tfJ;---I Susan Bigelow, MMC, City Cl k - - ----.--____._______ _0.. 6-13 . . . KIT"'4\ 'Mc.....l\ .~ RESOLUTION NO. 2005-101 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DECLARING THE RESULTS OF THE ASSESSMENT BALLOT TABULA nON FOR ASSESSMENT DISTRICT NO. 2004-1 (DIXON DRlVE), MAKING FINDINGS PURSUANT TO THE IMPROVEMENT ACT OF 1913 AND ARTICLE XIIID OF THE CONSTITUTION OF THE STATE OF CALIFORNIA, AND ORDERING THE CONSTRUCTION OF IMPROVEMENTS WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA (the "City"), CALIFORNIA, has been presented and has received a petition from certain property owners requesting the installation of certain sidewalk improvements, together with appurtenances and appurtenant work in connection therewith, such improvements to be installed pursuant to the provisions and authority of the "Municipal Improvement Act of 1913" (being Division 12 of the Streets and Highways Code of the State of California and City Council Ordinance No. 2952); and WHEREAS, this City Council, acting in response to such petition, initiated proceedings to fonn an assessment district to pay for the project pursuant to the provisions of the Streets and Highway Code, Article XIIID of the Constitution of the State of California ("Article XIIID") and the "Proposition 218 Omnibus Implementation Act" (Government Code Section 53750 and following - the "Implementation Act") (the Municipal Improvement Act of t 913, Article XTIm and the Implementation Act may be referred to collectively herein as the "Assessment Law"); and WHEREAS, the assessment district has been designated as Assessment District No. 2004-1 (Dixon Drive) (the "Assessment District"); and WHEREAS, a report of the Assessment Engineer (the "Preliminary Assessment Engineer's Report"), required by the Assessment Law was previously presented, considered and preliminarily approved; and WHEREAS, the Preliminary Assessment Engineer's Report, as preliminarily approved was prepared and contained all the matters and items called for pursuant to the provisions of the Assessment Law, including the following: A. Plans and specifications of the improvements; B. An estimate of the cost of the construction of the improvements, including the cost of the incidental expenses, in connection therewith, including that portion of such costs and expenses representing the special benefit to be conferred by such improvements on the parcels within the Assessment District; C. A diagram showing the Assessment District, which also shows the boundaries and dimensions of the respective subdivisions of land within such Assessment District, with each of which subdivisions given a separate number upon such diagram; D. The proposed assessment of the assessable costs and expenses of the construction of the improvements upon the several divisions of land in the Assessment District in 6-14 Resolution 2005-101 Page 2 proportion to the estimated special benefits to be conferred on such subdivisions, respectively, by such improvements. Such assessment refers to such subdivisions upon such diagram by the respective numbers thereof; and E. A description of the improvements. WHEREAS, notices of such hearing accompanied by assessment ballot materials were regularly mailed in the time, form and manner required by the Assessment Law and as evidenced by a certificate on file with the transcript of these proceedings, a full hearing has been given; and WHEREAS, at this time all assessment ballots submitted pursuant to the Assessment Law have been tabulated, all in the manner provided by the Assessment Law; and WHEREAS, at this time this City Council detennines that the assessment ballots received by the City in favor of the proposed assessment and weighted as required by the Assessment Law exceed the assessment ballots received in opposition to the assessment and similarly weighted and., therefore, a majority protest pursuant to the Assessment Law does not exist. NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION!. RECITALS. The above recitals are all true and correct SECTION 2. ASSESSMENT BALLOT TABULATION. The assessment ballots submitted pursuant to the Assessment Law in favor of the proposed assessment and weighted as required by the Assessment Law exceed the assessment ballots submitted in opposition to such proposed assessment and similarly weighted and it is therefore determined that a majority protest pursuant to Assessment Law to the levy of the proposed assessments does not exist. SECTION 3. SPECIAL BENEFITS RECENED. Based upon the Preliminary Assessment Engineer's Report and the testimony and other evidence received at the public hearing, it is hereby determined that: A. All properties within the boundaries of the Assessment District receive a special benefit from the improvements; B. The proportionate special benefit derived by each parcel proposed to be assessed has been determined in relationship to the entirely of the cost of construction of the improvements; C. No assessment is proposed to be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit to be conferred on such parcel from the improvements; D. Only special benefits have been assessed; and E. There are no parcels which are owned or used by any agency as such term is defined in Article XIIID, the State of California or the United States that specially benefit from the improvements. SECTION 5. CONSTRUCTION OF THE IMPROVEMENTS. This City Council finds that the owners of the properties within the proposed boundaries of the Assessment District have, pursuant to Streets and Highways Code Section 5879, waived the sixty day period within which 6-15 . . . Resolution 2005-101 Page 3 such owners may construct such improvements. Therefore, the City Council hereby orders the Superintendent of Streets to cause the construction of the improvements. SECTION 6. AUTIiORITY FOR CONSTRUCTION. All of the construction proposed shall be done and carried through and financed pursuant to the applicable provisions of the Municipal Improvement Act of 1913 and City Council Ordinance No. 2952. SECTION 7. FINAL ASSESSMENT ENGINEER'S REPORT. Upon the completion of the construction of the improvements, the Superintendent of Streets is ordered to prepare and file with this City Council a Final Assessment Engineer's Report that shall contain all of the information contained in the Preliminary Engineer's Report modified to reflect the actual cost of construction of the improvements. lfthe actual construction costs of the District's improvements do not exceed the cost estimate included in the Final Engineer's Report and reflected in the assessments shown on the assessment ballots, the assessments shall be reduced by City Council resolution without a public hearing. Conversely, if the actual construction costs do exceed the cost estimate included in the Final Engineer's Report and recovery of such excess costs would require an increase in the assessments previously levied, approval of such increase in the assessments shall require a subsequent public hearing and assessment ballot proceeding. Presented by Approved as to form by ~~ X~\~~~C'} \v\ Ann Moore City Attorney 6-16 Resoiution 2005-101 Page 4 PASSED, APPROVED, and ADOPTED by the City COl.U1cil of the City of Chula Vista, California.. this 22nd day of March, 2005, by the following vote: AYES: Councilmembers: Castaneda.. Davis, McCann. and Rindone NAYS: Councilmembers: None ABSENT: Councilmembers: Padilla ,J1~jIL ATTEST: ~~ ~ ...--- ~ Susan Bigelow, MMC, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DlEGO ) CITY OF CHULA VISTA ) I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2005-101 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 22nd day of March, 2005. Executed this 22nd day of March, 2005. ~ --:::;;- ~ .- ~'Susan Bigelow, .M:MC, City Clerk 6-17 ~~c..~ L.o\~.....l.T c... ENGINEER'S REPORT DIXON DRIVE SIDEWALK IMPROVEMENTS 1913 ACT ASSESSMENT DISTRICT AD 2004-01 MAY 25, 2006 6-18 Back2round Dixon Drive, between Naples Street and Oxford Street in Chula Vista, is a residential street with 60-foot width of right-of-way and is located within the Castle Park area of the City of Chula Vista. The Castle Park area is generally bounded by Third Avenue to the west, Hilltop Drive to the east, Naples Street to the north, and Palomar Street to the south. Prior to our street improvement project, existing improvements along Dixon Drive generally consisted of asphaltic concrete pavement with no curb-and-gutter. In November 2003, twenty-eight Dixon Drive property owners submitted a petition to the City requesting the initiation of proceedings to form an assessment district in accordance with the Improvement Act of 1913. This district would finance the construction ofthe missing curb, gutter and sidewalk and other street improvements along Dixon Drive, from Naples Street to Oxford Street. Subsequently, on March 22, 2005, the City conducted a public hearing approving the formation of the Assessment District, making findings pursuant to the Improvement Act of 1913 and Article XIIID of the Constitution of the State of California, and ordering the construction of improvements. On September 13, 2005, the City Council accepted bids and awarded the contract for the construction of street improvements on Dixon Drive. The final construction plans were based on community meetings and input from the public to address property owners' concerns. The City currently has a policy regarding participation in 1913 Block Act proceedings. According to this policy, the City will provide all engineering, inspection and administrative services at no cost to the property owners. It is the City's responsibility to relocate or replace all existing public improvements, which would be in conflict with the new improvements, including utilities, and costs associated with construction of the curb, gutter and sidewalk, and street reconstruction. These costs would not be assessed to the property owners. The property owners would be responsible to pay for all costs associated with the driveway apron construction and any costs associated with the relocation of private improvements (only if private improvements were originally located in the public right-of-way prior to construction). 2 6-19 Overall Design and Cost Estimate The project area and general location of improvements are shown on Exhibit A, the Final Boundary Map for Assessment District 2004-1, Dixon Drive. The properties, which will benefit from these improvements and would be a part of the district, are as follows: Address 1104 Dixon Drive 1108 Dixon Drive 1112 Dixon Drive 1118 Dixon Drive 1122 Dixon Drive 1128 Dixon Drive 1134 Dixon Drive 1138 Dixon Drive 1144 Dixon Drive 1148 Dixon Drive 1154-56 Dixon Drive 1160-62 Dixon Drive 1166 Dixon Drive 1172 Dixon Drive 1178 Dixon Drive 1184 Dixon Drive 1188 Dixon Drive 1192-94 Dixon Drive 1103 Dixon Drive 1109 Dixon Drive 1113 Dixon Drive 1119 Dixon Drive 1123 Dixon Drive 1127 Dixon Drive 1133 Dixon Drive 1137 Dixon Drive 1143 Dixon Drive 1147 Dixon Drive 1153 Dixon Drive 1155 Dixon Drive 1157-59 Dixon Drive 1161-63 Dixon Drive 1167 Dixon Drive 1173 Dixon Drive 1179 Dixon Drive 1183 Dixon Drive 1189 Dixon Drive 1195 Dixon Drive Parcel Number 619-151-11-00 619-151-12-00 619-151-13-00 619-151-14-00 619-151-15-00 619-151-16-00 619-151-17-00 619-151-18-00 619-151-19-00 619-151-20-00 619-201-18-00 619-201-19-00 619-201-14-00 619-201-13-00 619-201-12-00 619-201-11-00 619-201-10-00 619-201-09-00 619-152-01-00 619-152-02-00 619-152-03 -00 619-152-04-00 619-152-05-00 619-152-06-00 619-152-07 -00 619-152-08-00 619-152-09-00 619-152-10-00 619-202-08-00 619-202-08-00 619-202-09-00 619-202-10-00 619-202-01-00 619-202-02-00 619-202-11-00 619-202-12-00 619-202-05-00 619-202-06-00 3 6-20 The improvements included within this district consist ofthe reconstruction of the asphalt concrete street, construction of monolithic curb, gutter and sidewalk, and miscellaneous associated drainage and sewer facilities. The five-foot sidewalk was constructed to match the existing sidewalk at the south end of Dixon Drive. 'Where driveways were located, a driveway apron was constructed to provide a transition between the street, the sidewalk and the driveways. In addition to the street and sidewalk improvements, the City had coordinated with the utility companies to relocate overhead utilities. This work was conducted in conjunction with the street improvement project. Total construction cost for the project was approximately $632,000.00. The amount allocated to the property owners was $142,135.31. Method of Apportionment Costs must be apportioned to each property in proportion to the benefit received by that property. In apportioning the cost of street improvements, it can generally be assumed that the property adjacent to the improvements will receive the direct benefit. The adjacent properties would be most likely to use the improvements, particularly with respect to the driveway aprons. Additionally, construction of street and sidewalk improvements generally results in increased property values for the adjacent residences. For this project, the City agreed that the sidewalks and street improvements should be financed by the City due to the use of the street and sidewalk as a general public route for the residents within the Castle Park area. It is generally the City's policy to pay for replacement of existing improvements and City staff costs related to planning, design, surveying and construction inspection. Therefore, the only cost that was to be paid by the property owners is the cost of constructing the driveway aprons and any relocation of private improvements. The final property owner's share of the cost for the street improvement project was $142,135.31 The breakdown of construction costs among the thirty-eight properties within the district is shown in the following table. For each property, the square footage of driveway apron was individually calculated, which includes the actual driveway and the wing area on each side of the driveway. Private improvement relocation is also included in the property owners' construction costs. 4 6-21 The amounts to be assessed to the property owners based on the final construction costs can thus be compared to the amounts estimated in the Preliminary Engineer's Report as follows: Address 1104 Dixon Drive 1108 Dixon Drive 1112 Dixon Drive 1118 Dixon Drive 1122 Dixon Drive 1128 Dixon Drive 1134 Dixon Drive 1138 Dixon Drive 1144 Dixon Drive 1148 Dixon Drive I 154-56 Dixon Drive 1160-62 Dixon Drive 1166 Dixon Drive 1172 Dixon Drive 1178 Dixon Drive 1184 Dixon Drive 1188-90 Dixon Drive 1192-94 Dixon Drive 11 03 Dixon Drive 1109 Dixon Drive 1113 Dixon Drive 1119 Dixon Drive 1123 Dixon Drive 1127 Dixon Drive 1133 Dixon Drive 1137 Dixon Drive 1143 Dixon Drive 1147 Dixon Drive 1153-55 Dixon Drive 1157-59 Dixon Drive 1161-63 Dixon Drive 1167 Dixon Drive 1 173 Dixon Drive 1 179 Dixon Drive 1183 Dixon Drive 1189 Dixon Drive 1 195 Dixon Drive Parcel Number 619-151-11-00 619-151-12-00 619-151-13-00 619-151-14-00 619-151-15-00 619-151-16-00 619-151-17-00 619-151-18-00 619-151-19-00 619-151-20-00 619-201-18-00 619-201-19-00 619-201-14-00 619-201-13-00 619-201-12-00 619-201-11-00 619-201-10-00 619-201-09-00 619-152-01-00 619-152-02-00 619-152-03-00 619-152-04-00 619-152-05-00 619-152-06-00 619-152-07-00 619-152-08-00 619-152-09-00 619-152-10-00 619-202-08-00 619-202-09-00 619-202-10-00 619-202-01-00 619-202-02-00 619-202-11-00 619-202-12-00 619-202-05-00 619-202-06-00 Preliminary Cost Estimate $3,550.00 $3,515.00 $3,690.00 $3,457.50 $3,330.00 $5,920.00 $4,000.00 $4,130.00 $4,050.00 $4,530.00 $3,535.00 $5,548.00 $5,190.00 $6,240.00 $5,270.00 $4,370.00 $3,930.00 $4,150.00 $4,000.00 $4,160.00 $4,990.00 $4,710.00 $4,410.00 $4,910.00 $4,150.00 $3,830.00 $3,980.00 $6,230.00 $6,080.00 $9,450.00 $5,480.00 $5,720.00 $5,260.00 $7,230.00 $5,590.00 $5,310.00 $5,760.00 5 6-22 Final Assessment $2,716.25 $1,783.50 $1,945.88 $3,457.50 $1,906.50 $5,920.00 $4,000.00 $2,736.75 $2,644.50 $3,555.63 $3,535.00 $5,548.00 $3,905.25 $5,798.25 $4,033.50 $2,685.50 $2,952.00 $4,012.88 $2,342.13 $3,500.38 $3,170.25 $4,710.00 $2,931.50 $3,613.13 $3,676.25 $3,830.00 $2,905.88 $5,018.35 $4,701.05 $7,926.75 $3,966.75 $4,421.25 $3,814.75 $5,715.25 $5,590.00 $4,048.75 $3,116.00 a~o.:!xo ON ~I~j 133~lS 10 ...."" I 0': ~Vl 0- -0 11~ ~~ 1:2: ~I 6~ tr:l <(% ~~ 0.6 zi',~1 ~"" 0::: "" !~ :I:- ...:5 Y a.-Z .0 ogs ow ",,!;; 0... ",,-, W<( i!:<( CiGj i ",...."" .,,0 00.... OwO <", , 11 0:1_ VlO ~I=~ ........ AI Oen <( , il ca..~t:; >-"- ...< Z ,~ g~ci' 0 z::< <::> ~...J e:::: e-.lflo "" 0..., 'I!'~ is Uc;.> a enO z kJ~ . lL... !~ 0% <( ~Q.~ ~~ en ..., !--.....J .... olr"" w.... 0 ....00: ::EO en<( "..-- U <( '" i= W"'o. O_U ....13i= 0'" ~~ Z :i~~ O<l>Z :::> 10:::~ ~~5 0 >-ccQ c;.> T;~ 0:1_> r:i wz- ~!--w !;;:iE ..., ffi~~ 0 :I:....- OUlI- 100 ::<.... gs !a~:S 0 c;.> ...,""1Il ~i!r "" - <( ~ l!1 "" UlJ.,Z 001- !!~ F= 0 i= iSO~ a:: ~~f5 N U) e 0 z '" 1:l ~ ...J 0 w,..~ !-- - i!: a: u "'",e I_lCIalO-_,/ I-- a !(U-l.:Dl:"""'I;1lil U)uZ8 !:::! Wo tclOlll.~"1 e:::: - ~ <( er:: 2 z .... ol--W<( Vl U 1M:.IC:lI;I'O"Gl,'I ... ~ Z SUl>U) {liiIO-Ca.:""6~'!'} w ....>- III ~ is !:li z~ a-alL... i~ 0 0 We .... COO 0 :. i "" ::I;z 0 0. ~3 .... .....J 0:::>- d. = :!: ~1Il "" <( .... en.... "- <(1--0-1- 0 <(u !~ <( :c'E <( z z '" .... lL...Z2::) a:: ZVl 0 <( c:a Z w-g 21--- ~~ I c.: UlU~ I <( I I z en <c U) ...J - W > UJn:3 Ul "..-- ::) <tmQ s:::!t::!~~8 i=8 ;--ll.... ~;:::<~FQ -0 u'" a zl-"'-L..Jt"'.( '" . 2-{I)5~ . ~ >- ~rg~~ u. I- ~g6t::5 0 '" u'" '" U ~t1~~~ a: '" -'u. ~~~:<~ '-'0 ~ ~>- <( ~!a0"'~~ ... ", -< ", li: ~ i= ~ ~ or :> ue :so '" I WffiSo~ :s ~ <( -' iO':::Eoa::> ::> ~ "'UC>. is .... :I: =:t3<~~~ 0", '-' .... u. F=~tfiVJ:t;-d 0 tJ~ 0 >-<>~u%Z i= i!: i= "'-l.i.. Li..O ""<e ~O~:$OQa <:; 0.... <:; <fl ~~~iEi=r;!5 ""5 ",' )- j%u ~ 0-_5 0:: ~< a: ..., Z-' ::l CC<Li..::iLIJl:sV1 -' -:::> ffi~oCSi!:~~ U oiS u :I:a~........~>- >- w i= --" ... -'.... _cc~oo OJ <:; i!:o <:; 133~S S37dVN 6-23 RESOLUTION NO. 2006 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING FOR FILING THE FINAL ENGINEER'S REPORT FOR ASSESSMENT DISTRICT 2004-1 (DIXON DRIVE) WHEREAS, pursuant to Resolutions 2005-028, 2005-029, and 2005-030 adopted on January 25, 2005, the City Council accepted a petition requesting the formation of an Assessment District for Dixon Drive (Naples Street to Oxford Street) for the purpose of financing the construction of sidewalk improvements, approved the Preliminary Engineer's Report, ordered the installation of improvements on Dixon Drive, set the time and place for a public hearing, ordered the initiation of Assessment Ballot proceedings, and adopted a map showing the proposed boundaries for Assessment District No. 2004-1 (Dixon Drive); and WHEREAS, pursuant to Resolution 2005-101, adopted on March 22, 2005, the City Council ordered the construction of the improvements and ordered a final assessment Engineer's Report to be prepared; and WHEREAS, City staff advertised and obtained sealed bids as part of a formal bidding process for the construction of the improvements and awarded a contract in the amount of $574,433.75 to the low bidder, Scheidel Contracting and Engineering, Inc., pursuant to Resolution No. 2005-308; and WHEREAS, the construction of the improvements is complete and the final Engineer's Report Dixon Drive Sidewalk Improvements 1913 Act Assessment District AD 2004-1 dated May 25, 2006 (Final Engineer's Report), which contains all the information contained in the Preliminary Engineer's Report modified to reflect the actual cost of the constrUction of the improvements, has been prepared and finalized. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it accepts for filing the Final Engineer's Report for Assessment District 2004-1 (Dixon Drive), a copy of which will be kept on file in the Office of the City Clerk. Presented by Approved as to form by Jack Griffin Director of General Services yL~tA ,~ct~~ Ann Moore City Attorney H:/ AttomeylFinal Resos/2006/6 13 06/ Assessment District 2004-1 Dixon Drive Engineer's Report 6-24 ,..-.,. --- _.,~.,..",~.._..,.,".,~,~.,_....--,......,..,."..~",-~~.....",--"'^'~-'~'""'.__.'~--""""""~~""--'-'_. RESOLUTION NO. 2006 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING THE DEFERRAL OF ASSESSMENTS AND ESTABLISHING THE RATE OF INTEREST OF 5 PERCENT PER YEAR AND THE FINANCING PERIOD OF A MAXIMUM OF TEN YEARS APPLIED TO THE DEFERRALS FOR . ASSESSMENT DISTRICT 2004-1 (DIXON DRIVE) WHEREAS, pursuant to Resolutions 2005-028, 2005-029, and 2005-030 adopted on January 25,2005, the City Council accepted a petition requesting the formation of an Assessment District for Dixon Drive (Naples Street to Oxford Street) for the purpose of financing the construction of sidewalk improvements, approved the Preliminary Engineer's Report, ordered the installation of improvements on Dixon Drive, set the time and place for a public hearing, ordered the initiation of Assessment Ballot proceedings, and adopted a map showing the proposed boundaries for Assessment District No. 2004-1 (Dixon Drive); and WHEREAS, pursuant to Resolution 2005-101, adopted on March 22, 2005, the City Council ordered the construction of the improvements and ordered a final assessment Engineer's Report to be prepared; and WHEREAS, City staff advertised and obtained sealed bids as part of a formal bidding process for the construction of the improvements and awarded a contract in the amount of $574,433.75 to the low bidder, Scheidel Contracting and Engineering, Inc., pursuant to Resolution No. 2005-308; and WHEREAS, the construction of the improvements is complete; and WHEREAS, of the total construction costs, only the costs of the concrete driveways and private improvement relocation are to be assessed to the property owners; and WHEREAS, City staff has completed an accounting of the costs and the apportionment to the property owners as shown in the attached Final Engineer's Report (Exhibit 'A'); and WHEREAS, not all the assessments have been fully paid and the City can collect the unpaid balance over a maximum period of ten years, together with interest on the unpaid principal at a rate not to exceed 7 percent per year; and WHEREAS, City staff proposes to charge 5 percent interest for a period of ten years on the unpaid balances of the assessments. 6-25 RESOLUTION NO. 2006 - NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it accepts the deferral of the assessments and establishes the rate of interest of 5 percent per year and financing period of a maximum of ten years applied to the deferrals for Assessment District 2004-1 (Dixon Drive). Presented by Approved as to form by ~~~(~~-' Ann Moore City Attorney Jack Griffin Director of General Services H:/Attomey/Final Resos/2006/6 13 06/Accepting Deferral 2004-1 Dixon Drive 6-26 ENGINEER'S REPORT DIXON DRRVE SIDEWALK IMPROVEMENTS 1913 ACT ASSESSMENT DBSTRHCT AD 2004a01 MAY 25, 2006 6-27 'h....._."..>, ...~....~_."., ..~...__.___...~.._~,_.......",...._._,._.~_._,~_.-...-__"-...._-,-,,",,.. Backeround Dixon Drive, between Naples Street and Oxford Street in Chula Vista, is a residential street with 60-foot width of right-of-way and is located within the Castle Park area of the City of Chula Vista. The Castle Park area is generally bounded by Third Avenue to the west, Hilltop Drive to the east, Naples Street to the north, and Palomar Street to the south. Prior to our street improvement project, existing improvements along Dixon Drive generally consisted of asphaLtic concrete pavement with no curb-and-gutter. In November 2003, twenty-eight Dixon Drive property owners submitted a petition to the City requesting the initiation of proceedings to fonn an assessment district in accordance with the Improvement Act of 1913. This district would finance the construction of the missing curb, gutter and sidewalk and other street improvements along Dixon Drive, from Naples Street to Oxford Street. Subsequently, on March 22. 2005, the City conducted a public hearing approving the formation of the Assessment District, making findings pursuant to the Improvement Act of 1913 and Article XITID of the Constitution of the State of California, and ordering the construction ofimprovements. On September 13,2005, the City Council accepted bids and awarded the contract for the construction of street improvements on Dixon Drive. The final construction plans were based on community meetings and input from the public to address property o"Vvners' concerns. The City currently has a policy regarding participation in 1913 Block Act proceedings. According to this policy, the City will provide all engineering, inspection and administrative services at no cost to the property owners. It is the City's responsibility to relocate or replace all existing public improvements, which would be in conflict with the new improvements, including utilities, and costs associated with construction of the curb, gutter and sidewalk, and street reconstruction. These costs would not be assessed to the property owners. The property owners would be responsible to pay for all costs associated with the driveway apron construction and any costs associated with the relocation of private improvements (only ifprivate improvements were originally located in the public right-of-way prior to construction). 2 6-28 Overall Desi!!n and Cost Estimate The project area and general location of improvements are shown on Exhibit A, the Final Boundary Map for Assessment District 2004-1, Dixon Drive. The properties, which will benefit from these improvements and would be a part of the district, are as foHows: Address 1104 Dixon Drive 1108 Dixon Drive 1 I 12 Dixon Drive 1118 Dixon Drive 1122 Dixon Drive 1128 Dixon Drive 1134 Dixon Drive 1138 Dixon Drive 1144 Dixon Drive 1148 Dixon Drive 1154-56 Dixon Drive 1160-62 Dixon Drive 1166 Dixon Drive 1172 Dixon Drive 1178 Dixon Drive 1184 Dixon Drive 1188 Dixon Drive 1 192-94 Dixon Drive 1103 DL"{on Drive 1 109 Dixon Drive 1113 Dixon Drive 1 I 19 Dixon Drive 1123 Dixon Drive 1127 Dixon Drive 1133 Dixon Drive 1137 Dixon Drive 1143 Dixon Drive 1147 Dixon Drive 1153 Dixon Drive 1155 Dixon Drive 1157-59 Dixon Drive 1161-63 Dixon Drive 1167 Dixon Drive 1173 Dixon Drive 1179 Dixon Drive 1 I 83 Dixon Drive 1189 Dixon Drive 1195 Dixon Drive Parcel Number 619-151-11-00 619-151-12-00 619-151-13-00 619-151-14-00 619-151-15-00 619-151-16-00 619-151-17-00 619-151-18-00 619-151-19-00 619-151-20-00 619-201-18-00 619-201-19-00 619-201-14-00 619-201-13-00 619-201-12-00 619-201-11-00 6 I 9-20 1-10-00 619-201-09-00 619-152-01-00 619-152-02-00 619-152-03-00 619-152-04-00 619-152-05..00 619-152-06-00 619-152-07-00 619-152-08-00 619-152-09-00 619-152-10-00 619-202-08-00 619-202-08-00 619-202-09-00 619-202-10-00 619-202-01-00 619-202-02-00 619-202-11-00 619-202-12-00 619-202-05-00 619-202-06-00 3 6-29 The improvements included within this district consist of the reconstruction of the aspha1t concrete street, construction of monolithic curb, gutter and sidewalk, and miscellaneous associated drainage and sewer facilities. The five-foot sidewalk was constructed to match the existing sidewalk at the south end of Dixon Drive. Where driveways were located, a driveway apron was constructed to provide a transition bet\Veen the street, the sidewalk and the driveways. In addition to the street and sidewalk improvements, the City had coordinated with the utility companies to relocate overhead utilities. This work was conducted in conjunction with the street improvement project. Total construction cost for the project was approximately $632,000.00. The amount allocated to the property owners was $142,135.31. Method of Apportionment Costs must be apportioned to each property in proportion to the benefit received by that property. In apportioning the cost of street improvements, it can generally be assumed that the property adjacent to the improvements will receive the direct benefit. The adjacent properties would be most likely to use the improvements, particularly with respect to the driveway aprons. Additionally, construction of street and sidewalk improvements generally results in increased property values for the adjacent residences. For this project, the City agreed that the sidewalks and street improvements should be financed by the City due to the use of the street and sidewalk as a general public route for the residents within the Castle Park area. It is generally the City's policy to pay for replacement of existing improvements and City staff costs related to planning, design, surveying and construction inspection. Therefore, the only cost that was to be paid by the property owners is the cost of constructing the driveway aprons and any relocation of private improvements. The final property owner's share of the cost for the street improvement project was $142,135.31 The breakdown of construction costs among the thirty-eight properties within the district is shown in the following table. For each property, the square footage of driveway apron was individually calculated, which includes the actual driveway and the wing area on each side of the driveway. Private improvement relocation is also included in the property owners' construction costs. 4 6-30 The amounts to be assessed to the property owners based on the final construction costs can thus be compared to the amounts estimated in the Preliminary Engineer's Report as follows: Address 1104 Dixon Drive 1108 Dixon Drive 1112 Dixon Drive 1118 Dixon Drive 1122 Dixon Drive 1128 Dixon Dri1'e 1134 Dixon Drive 1138 Dixon Drive 1144 Dixon Drive 114& Dixon Drive 1154-56 Dixon Drive 1160-62 Dixon Drive 1166 Di.'\:on Drive 1172 Di'\:on Drive 1178 Dixon Drive 11 84 Dixon Drive 1188-90 Dixon Drive 1192-94 Dixon Drive 1103 Dixon Drive 1109 Di.xon Drive 1113 Dixon Drive 1119 Dixon Drive 1123 Dixon Drive 1127 Db:on Drive 1133 Dixon Drive 1137 Dixon Drive 1143 Dixon Drive 1147 Dixon Drive 1153-55 Di,on Drive 1157-59 Dixon Drive 1161-63 Dixon Drive 1167 Dixon Drive 1173 Dixon Drive 1179 Dixon Drive 1183 Dixon Drive 1189 Dixon Drive 1195 Dixon Drive Parcel Number 619-151-11-00 619-151-12-00 619-151-13-00 619-151-14-00 619-151-15-00 619-151-16-00 619-151-17-00 619-151-18-00 619-151-19-00 619-151-20-00 619-201-18-00 619-201-19-00 619-201-14-00 619-201-13-00 619-201-12-00 619-201-11-00 619-201-10-00 619-2,01-09-00 619-152-01-00 619-152-02-00 619-152-03-00 619-152-04-00 619-152-05-00 619-152-06-00 619-152-07-00 619-152-08-00 619-152-09-00 619-152-10-00 619-202-08-00 619-202-09-00 619-202-10-00 619-202-01-00 619-202-02-00 619-202-11-00 519-202-12-00 619-202-05-00 619-202-06-00 Preliminarv Cost Estimate $3,550.00 $3,515.00 S3,690.00 $3,437.50 $3,330.00 $5,920.00 $4,000.00 $4,130.00 $4,050.00 $4,530.00 $3,535.00 $5,548.00 $5,190.00 56,240.00 $5,270.00 $4,370.00 53,930.00 $4,150.00 $4,000.00 54,160.00 $4,990.00 $4,710.00 $4,410.00 $4,910.00 $4,150.00 $3,830.00 $3,980.00 $6,230.00 $6,080.00 $9,450.00 $5,480.00 $5,720.00 $5,260.00 $7,230.00 $5,590.00 $5,310.00 $5,760.00 5 6-31 Final Assessment 52,716.25 $1,783.50 $1,945.88 $3,457.50 $1,906.50 $5,920.00 $4,000.00 $2,736.75 $2,644.50 $3,555.63 $3,535.00 $5,548.00 $3,905.25 $5,798.25 $4,033.50 $2,685.50 $2,952.00 54,012.88 $2,342.13 53,500.38 $3,170.25 $4,710.00 $2,931.50 $3,613.13 $3,676.25 $3,830.00 52,905.88 $5,018.35 $4,701.05 57,926.75 $3,966.75 $4,421.25 $3,814.75 55,715.25 55,590.00 54,048.75 53,116.00 G(JO.:iXO ON ~I~j 133m.S 10 ~n 1/ OF=! ~tn / ::0 ~!~ ~,t l~ ~., ~I 6~ <= ~q a.::> ~8 0::: - I' , ,= '" 5 I~ =~ 158 c)f~ tf3 0'= w< I~ xEcJ cti 00.... :::0 0",0 <0:: CIl-w "'0 ;;~< ........ 0", <!: ~ID . rDa:~ c!l: ' ~ "'In 0 =:i .z ~: ~~g <.:> =>.... a::: w 0"" oj; !:I a <.><.> 0 ",Q ~~~ ~~ c: ::: u.. I < !;:~ In ... ... ~l-~ ~ g ... oo<u ;:i.... 0 ...Oc: ;! ~ :::;0 In< l....!~h: ~. wV\a. oUu I I "1: ~~:i I 0"'% is ..<:, Icr:l::; Ill::> >-<0 <J 1ii:$~ ;31~~ r::! !S~~ ~l-w '" ~F '" ~~l!; '" OUlI- i~ ;00 =ca 0 <.> -< ;l!;/! w WU!O - <( ~ Sf 0:: U...._ 001- "@ ~ ffiO~ N VJ 3 ~~~ r: ~ 0 11.1~= f-- - .---., U c:",o f- 0 ~ {/)..Z~ WUWo 1l1li-.....:...1 a::: - \t.....(....._I\; <0::::2z ... Of-W<t: ~ u IW:_~I :z ~ 5c.n>VJ Ui(l"c:::._,'" .... ...>- In :::; is ~ o~ a-at..:... 0 ~~ .... enD 0 '" 0 a. '''is ... -.J cr:>- 3. tilQ ~ .... Ill.... "- <(f-CLJ- 0 <tJ '" ~ ...'" .z z <<= ... LL..Z2~ '" %!!! 0 '" ~Q % w-g I 21-- ~~ ~ U) U ;:s . -< . c.n <( (f) u I z ...J W > U)nS (J)~~ <OJ , u ,..0 , LL.. s~~=g:s t::5 e%~~~~ UN 0 r;::s; I ; ] >- o;;~c:s I- ~~OOG D a. - .... ffi <~:::e~a::. . :;:etl1;:::<l1. ........ <'>0 =;:1.&.,>- 'Q is ~>- <: I5!!lOCll!:<~ .... '" -< In "''''~O Q :;; UQ :;> :~s~~ I :s '" I ~ =~o;::s: ~ ;;: "'!ilUa. .... st3~~~~ u 0", 0 ... l!; -=~t;;'U1:J:-d 0 t!iE ~"'S:~U== ,.. .... c ~:5:s~C6 ... "-< U 0.... U en ffien3!!2C:3", l!!:;; U!::!UQ-=3 ;;: F", = )-01: ~U..o w 2:3 !::j S~~~~8~ -' u 80 <.> g3cuiEffi'" C c :::gua~a:~ -'.... <:; C:o <:; 6-32 RESOLUTION NO. 2006 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE PLACEMENT OF A LIEN ON THE ASSESSED PROPERTY AND THE COLLECTION OF THE ASSESSMENT AT THE SAME TIME AND IN THE SAME MANNER AS OTHER CITY TAXES ARE COLLECTED FOR ASSESSMENT DISTRICT 2004-1 (DIXON DRIVE) WHEREAS, pursuant to Resolutions 2005-028, 2005-029, and 2005-030 adopted on January 25, 2005, the City Council accepted a petition requesting the formation of an Assessment District for Dixon Drive (Naples Street to Oxford Street) for the purpose of financing the construction of sidewalk improvements, approved the Preliminary Engineer's Report, ordered the installation of improvements on Dixon Drive, set the time and place for a public hearing, ordered the initiation of Assessment Ballot proceedings, and adopted a map showing the proposed boundaries for Assessment District No. 2004-1 (Dixon Drive); and WHEREAS, pursuant to Resolution 2005-101, adopted on March 22, 2005, the City Council ordered the construction of the improvements and ordered a final assessment Engineer's Report to be prepared; and WHEREAS, City staff advertised and obtained sealed bids as part of a formal bidding process for the construction of the improvements and awarded a contract in the amount of $574,433.75 to the low bidder, Scheidel Contracting and Engineering, Inc., pursuant to Resolution No. 2005-308; and WHEREAS, the construction of the improvements is complete; and WHEREAS, of the total construction costs, only the costs of the concrete driveways and private improvement relocation are to be assessed to the property owners; and WHEREAS, not all the assessments have been fully paid and the City can collect the unpaid balance over a maximum period of ten years, together with interest on the unpaid principal at a rate not to exceed 7 percent per year; and WHEREAS, City staff proposes to charge 5 percent interest for a period of ten years on the unpaid balances of the assessments. 6-33 RESOLUTION NO. 2006 - NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it authorizes the placement of a lien on the assessed property and the collection of the assessment at the same time and in the same manner as other city taxes are collected for Assessment District 2004-1 (Dixon Drive). Presented by Approved as to form by ,--!-~ fL. ~~ Ann Moore City Attorney Jack Griffin Director of General Services H:/ Attorney/Final Resos/2006/6 13 06/ Assessment District 2004-1 Dixon Drive Lien Collection Tax Roll 6-34 COUNCIL AGENDA STATEMENT Item Meeting Date 7 6/13/06 ITEM TITLE: REVIEWED BY: Resolution Establishing the Appropriations Limit for the City of Chula Vista for Fiscal Year 2006-07 ...... Director of Fin~reasure~ City Manager II ft-tL -pI< (4/5ths Vote: Yes _No---X..) SUBMITTED BY: Article XIIIB of the California Constitution approved by the voters in 1979 and commonly referred to as the Gann Initiative, requires each local government to establish an Appropriations Limit by resolution each year at a regularly scheduled meeting or noticed special meeting. The purpose of the limit is to restrict spending of certain types of revenues to a level predicated on a base year amount increased annually by an inflation factor. RECOMMENDATION: That the City Council adopt a resolution establishing an appropriations limit of $446,907,029 for the 2005-06 fiscal year. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: Article XIIIB of the California Constitution, approved by the voters in 1979, imposed the concept of spending limits on local governments. This Constitutional provision and related implementing legislation specifies that annual increases in appropriations financed from "Proceeds of Taxes" are limited to a base year (1978-79) amount increased annually by an inflation factor comprised of the change in population of the City combined with the greater of the change in new non-residential construction or the change in the California per capita personal income. By definition, "Proceeds of Taxes" includes such revenues as property taxes, sales and use taxes, utility users taxes, transient occupancy taxes, and state subventions. Revenues from other sources like fees/charges and federal grants are considered "Non-Proceeds of Taxes" and are not subject to the annual spending limit. This calculation has always been perfunctory for the City of Chula Vista, since the proceeds of taxes for the City are far less than the statutory appropriation limit. The State Department of Finance and the San Diego County Assessor's Office are charged with providing the data necessary for local jurisdictions to establish their 7-1 Page 2, Item -; Meeting Date 6/13/06 appropriation limit. According to these sources, for purposes of the fiscal year 2005-06 calculation, the population increased 4.35% and California per capita personal income increased by 5.26%. New non-residential construction increased 1.78% and was not used in the formula to compute the limit since this increase was lower than the increase in California per capita personal income. The fiscal year 2005-06 Appropriation Limit has been calculated as follows: Fiscal Year 2004-05 Appropriation Limit $406,875,338 Increased by an inflation factor composed of the increases in population and California per capita personal income X 1.0984 Fiscal Year 2005-06 Appropriations Limit $446.907.029 The "Proceeds of Taxes" as included in the fiscal year 2005-06 Proposed Budget that are subject to the appropriations limit are estimated to be $78,869,186 (see attachment). Therefore the City has what is referred to as an appropriation "gap" of $368,037,843 ($446,907,029 - $78,869,186). Simply stated, this means that the City could collect and spend up to $368,037,843 more in taxes during fiscal year 2005-06 without exceeding the Constitutional limit. FISCAL IMPACT: This action will enable the City to appropriate and spend tax revenues estimated at $78,869,186 included in the proposed budget for fiscal year 2005-06. 7-2 Page 3, Item Meeting Date 6/13/06 1 ATTACHMENT APPROPRIATION (GANN) LIMIT GAP CALCULATION FOR FISCAL YEAR 2005-06 Proceeds of Taxes FY 2005-06 Proposed Budget Property Taxes Sales and Use Taxes Transient Ocupancy Taxes Utility Taxes Other Local Taxes Real Property Transfer Tax Business License State Motor Vehicle Licenses State Homeowners Property Taxes 20,033,558 26,788,000 2,410,301 7,435,816 2,407,777 1,169,456 18,424,278 200,000 Total Proceeds of Taxes 78,869,186 Appropriation Limit 446,907,029 GAP (Under Limit) (368,037,843) Proceeds of Taxes Compared to Legal Spending Umit en $500 l: .2 $400 :2:$300 .. $200 $100 $0 FY03 -. . . FY04 FYOS FY06 1_ Proceeds of Taxes -+- Appropriation Limit I 7-3 RESOLUTION NO. 2006- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ESTABLISHING THE APPROPRIATIONS LIMIT FOR THE CITY OF CHULA VISTA FOR FISCAL YEAR 2006-07 WHEREAS, Article XIIIB of the California Constitution approved by the voters in 1979 and commonly referred to as the Gann Initiative, requires each local government to establish an Appropriations Limit by resolution each year at a regularly scheduled meeting or noticed special meeting; and WHEREAS, the purpose ofthe limit is to restrict spending of certain types of revenues to a level predicated on a base year amount increased annually by an inflation factor. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City ofChula Vista does hereby establish an appropriations limit of $446,907,029 for the 2006-07 fiscal year. Presented by Approved as to form by Maria Kachadoorian Director of Finance J:\Attomey\RESO\FINANCE\Appropriation Limit for FY 2006-07.doc 7-4 COUNCIL AGENDA STATEMENT Item 1) Meeting Date 06/13106 ITEM TITLE: Resolution Maintaining the Existing City Investment Policy and Guidelines Director of Financerrreasu~ City Manager f ~ p~ (4/5ths Vote: Yes _No----X...) SUBMITTED BY: REVIEWED BY: The City has an existing Investment Policy and Guidelines to ensure the prudent management of idle cash. State law requires that the Investment Policy and Guidelines be adopted by resolution of the City Council on an annual basis after being reviewed to ensure consistency with the overall objectives of preservation of principal, liquidity, and yield, and its relevance to current law and financial and economic trends. RECOMMENDATION: That Council adopt Resolution Investment Policy and Guidelines. maintaining the existing BOARDS & COMMISSION RECOMMENDATION: Not Applicable DISCUSSION: The City's Investment Policy and Guidelines adopted on June 7, 2005 by Resolution 2005-184 were intended to provide direction for the prudent investment of temporarily idle cash, and for maximizing the efficiency of the cash management process. The stated goal is to enhance the economic condition of the City while ensuring the safety of funds invested. The policy includes a list of specific investment instruments available under the relevant California Government Code provisions, 53600 et. seq. and 53635 et. seq. Each investment transaction is made in the context of first ensuring the "safety" of principal, second, investing only for that timeframe that the cash is not needed for operational purposes ("liquidity"), and last seeking the highest return possible ("yield") provided that the first two factors are met. It is recommended that the existing Policy be re-adopted as is. The Policy was recently amended last year to include additional information as required to meet the Association of Public Treasurers of the United States and Canada (APTUSC) certification standards, and no further amendments are recommended at this time. FISCAL IMPACT: There is no direct fiscal impact by this action. 8-1 ,..., RESOLUTION NO. 2003-062 RESOLUI10N OF THE CITY COUNCIL OF THE CITY OF CHUrA VISTA MAINTAINING 1HE EXISTING CITY INVESTMENT POLICY AND GUIDELINES WHEREAS, the City has an existing Investment Policy and Guidelines to insure the prudent management of idle cash; and WHEREAS, state law requires that the Investment Policy and Guidelines be adopted by resolution of the City Council on an annual basis after' being reviewed to ensure consistency with the overall objectj.ves of preservation of principal, liquidity, and yield, and its relevance to current law and financial and economic trends; and WHEREAS, staff recommends maintaining the existing Investment Policy and Guidelines. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby maintain the existing City Investment Policy and Guidelines, attached hereto and incorporated herein by reference as if set forth in full. Presented by Approved as to form by CJ-~ John M. Kaheny ~ City Attorney . -~. . J..4 rf'f\!~ ~ Robe W. PowellnV Assi tant City Manager 8-2 Resal utian 2003-062 Page 2 PASSED, APPROVED, and ADOPTED by the City Council of the City of ChuIa Vista, California, this 18th day of February, 2003, by the following vote: . AYES: Cauncilmembers: Davis, Rindone, Salas, McCann and Padilla NAYS: Councilm.embers: None ABSENT: Councilmembers: None A TrEST: -===:;; J 6- l ~'/'..D. C>__ ~~ Bfgelow,-City derk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2003-062 was duly passed, approved, and adopted by the City Council at a regular meeting of the ChuIa Vista City Council held on the 18th day of February, 2003. Executed this 18th day of February, 2003. ~~~~ Susan Bigelow, City Clerl( 8-3 CITY OF CHULA VISTA STATEMENT OF INVESTMENT POLICY AND GUIDELINES FISCAL YEAR 2005/2006 1.0 Purp os e: ................................................................................................................................... 2 2.0 Po Ii cy: .............. ......................................... ............ .................................................................... 2 3.0 S co p e: .......................................................... ............................................. ...................... .......... 2 4.0 Pru d en c e: .................... ........................... ................... ............................................................... 3 5.0 0 b j ective: .... .............. .................. ................................ ................................. ............. ............... 3 6.0 Delegation of Au th 0 rity: ...... ...... ........... ........................................ .................. ....... ................. 4 7.0 Ethics and Conflicts of Interest: ............................................................................................ 4 8.0 Authorized Financial Dealers and Institutions: ................................................................... 4 9.0 Authorized & Suitable Investments: ..................................................................................... 5 10.0 Po rtf 0 tio Adj ustm en ts: .... .... ............. ......... ................................................................. .......... 8 11.0 Colla teraliza tio n: .............. .... ............ ............................ ......... ........... .......... ...... ............ ......... 8 12.0 Saf ekeep in g and Custody: ............... ....... ............................. .............................. ........ ........... 9 13.0 Divers ifi ca ti 0 n: ...................................................................................................................... 9 14. 0 Maximum Maturities: ............................ ..................... ........ ....... ...... .......... ......... ............... 10 15. 0 Internal Con tro I: ..... ......................... ...................... ...... ................ ................ ...... ........ ......... 10 16.0 Perf 0 rman ce Stan dards: .................. ......... ....... ....... ......... ............ ......... ............................. 10 17.0 Repo rting: . ........ ........ .......... ............. ............... ............. .......................... .... ....... .......... ......... 11 18.0 Inv estm en t Po ticy Ad option: ....... ....... ................................... ........... ........... ......... ...... ........ 12 G LOS S AR Y................................................................................................................................. 13 Page 1 of 17 8-4 CITY OF CHULA VISTA STATEMENT OF INVESTMENT POLICY AND GUIDELINES FISCAL YEAR 2005/2006 1.0 Purpose: This "Investment Policy and Guidelines" (the "Investment Policy") Policy is intended to provide guidelines for the prudent investment of the City of Chula Vista's (the "City") cash balances, and outline policies to assist in maximizing the efficiency of the City's cash management system, while meeting the daily cash flow demands of the City. 2.0 Policy: The investment practices and policies of the City of Chula Vista are based upon state law and prudent money management. The primary goals of these practices are: A. To ensure compliance with all Federal, State, and local laws governing the investment of public funds under the control of the Director of Finance/Treasurer. B. To protect the principal monies entrusted to the City's Finance Department. C. Achieve a reasonable rate of return within the parameters of prudent risk management while minimizing the potential for capital losses arising from market changes or issuer default. 3.0 Scope: This Investment Policy applies to all financial assets of the City of Chula Vista, as indicated in 3.1 below. These funds are accounted for in the City's Comprehensive Annual Financial Report. 3.1 Funds: The Director of Finance/Treasurer is responsible for investing the unexpended cash in the City Treasury for all funds, except for the employee's retirement funds, which are administered separately, and those funds which are managed separately by trustees appointed under indenture agreements. The Director of Finance/Treasurer will strive to maintain the level of investment of this cash as close as possible to 100%. These funds are described in the City's annual financial report and include: · General Fund · Special Revenue Funds · Capital Project Funds · Enterprise Funds · Trust and Agency Funds · Any new fund created by the legislative body, unless specifically exempted This Investment Policy applies to all transactions involving the financial assets and related activity of the foregoing funds. Page 2 of 17 8-5 CITY OF CHULA VISTA STATEMENT OF INVESTMENT POLICY AND GUIDELINES FISCAL YEAR 2005/2006 4.0 Prudence: The standard of prudence to be used by the Director of Finance/Treasurer shall be the "prudent investor standard". This shall be applied in the context of managing an overall portfolio. The "prudent investor standard" is applied to local agencies, pursuant to California Government Code Section 53600.3 which provides, in pertinent part: " ... all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. ..." 4.1 Personal Responsibility: The Director of Finance/Treasurer, Assistant Director of Finance and Treasury Manager as investment officers acting in accordance with written procedures and the Investment Policy and exercising due diligence, shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported to the City Council in a timely fashion and appropriate action is taken to control adverse developments. 5.0 Objective: Consistent with this aim, investments are made under the terms and conditions of California Government Code Section 53600, et seq. Criteria for selecting investments and the absolute order of priority are: 5.1 Safety: Safety of principal is the foremost objective of the investment program. Investments of the City of Chula Vista shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is required in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio. 5.2 Liquidity: The City of Chula Vista's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated and to maintain Page 3 of 17 8-6 CITY OF CHULA VISTA STATEMENT OF INVESTMENT POLICY AND GUIDELINES FISCAL YEAR 2005/2006 compliance with any indenture agreement, as applicable. Liquidity is essential to the safety of principal. 5.3 Return on Investments: The City of Chula Vista's investment portfolio shall be designed with the objective of attaining a market-average rate of return throughout budgetary and economic cycles (market interest rates), within the City's Investment Policy's risk parameters and the City's cash flow needs. See also Section 16.1. 6.0 Delegation of Authority: The Director of Finance/Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. The responsibility for the day-to-day investment of City funds will be delegated to the Treasury Manager under the general direction of the Assistant Director of Finance. 7.0 Ethics and Conflicts of Interest: In addition to state and local statutes relating to conflicts of interest, all persons involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Employees and investment officers are required to file annual disclosure statements as required for "public officials who manage public investments" [as defined and required by the Political Reform Act and related regulations, including Government Code Sections 81000, et seq., and the rules, regulations and guidelines promulgated by California's Fair Political Practices Commission (FFPC)]. 8.0 Authorized Financial Dealers and Institutions: The City's Director of Finance/Treasurer will maintain a list of the [mancial institutions and brokers/dealers authorized to provide investment and depository services and will perform an annual review of the [mancial condition and registrations of qualified bidders and require annual audited financial statements to be on file for each company. The City will utilize Moody's Securities or other such services to determine financially sound institutions with which to do business. The City shall annually send a copy of the current Investment Policy to all financial institutions and brokers/dealers approved to do business with the. City. As far as possible, all money belonging to, or in the custody of, a local agency, including money paid to the City's Director of Finance/Treasurer or other official to pay the principal, interest, or penalties of bonds, shall be deposited for safekeeping in state or national banks, savings associations, federal associations, credit unions, or federally insured industrial loan companies in this state selected by the City's Director of Finance/Treasurer; or may be invested in the investments set forth in Section 9.0. To be eligible to receive local agency money, a bank, Page 4 of 17 8-7 CITY OF CHULA VISTA STATEMENT OF INVESTMENT POLICY AND GUIDELINES FISCAL YEAR 2005/2006 savings association, federal association, or federally insured industrial loan company shall have received an overall rating of not less than "satisfactory" in its most recent evaluation by the appropriate federal financial supervisory agency of its record of meeting the credit needs of California's communities, including low- and moderate-income neighborhoods. To provide for the optimum yield in the investment of City funds, the City's investment procedures shall encourage competitive bidding on transactions from approved brokers/dealers. In order to be approved by the City, the dealer must meet the following criteria: (i) the dealer must be a "primary" dealer or regional dealer that qualifies under Securities and Exchange Commission Rule 15C3-1 (Uniform Net Capital Rule); (ii)the dealer's institution must have an office in California; (iii)the dealer must be experienced in institutional trading practices and familiar with the California Government Code as related to investments appropriate for the City; and (iv) all other applicable criteria, as may be established in the investment procedures. All brokers/dealers and financial institutions who desire to become qualified bidders for investment transactions must submit a "Broker/Dealer Application" and related documents relative to eligibility including a current audited annual [mancial statement, U4 form for the broker, proof of state registration, proof of National Association of Securities Dealers certification and a certification of having read and understood the City's Investment Policy and agreeing to comply with the Investment Policy. The City's Director of Finance/Treasurer shall determine if they are adequately capitalized (i.e. minimum capital requirements of $10,000,000 and five years of operation). 9.0 Authorized & Suitable Investments: The City is authorized by California Government Code Section 53600, et. seq., to invest in specific types of securities. Investments not specifically listed below are deemed inappropriate and prohibited: A. BANKERS' ACCEPTANCES, maximum 25% of portfolio (up to 40% with Council approval). Maximum term 180 days. Banks must have a short term rating of at least AlIPl and a long-term rating of A or higher as provided by Moody's Investors Service or Standard and Poor's Corp. No more than 30% of the agency's money may be invested in the bankers' acceptances of anyone commercial bank pursuant to this section. B. NEGOTIABLE CERTIFICATES OF DEPOSIT, maximum 30% of portfolio. Maximum term 3 years, (Up to 5 years with Council approval). Banks must have a short term rating of Al/Pl and a long term rating of at least a single A from a nationally recognized authority on ratings. C. COMMERCIAL PAPER, maximum 25% of portfolio. Maximum term 270 days. Commercial paper of prime quality of the highest ranking or of the highest letter and number rating as provided for by Moody's Investor Services, Standard & Poor's and Fitch Financial Page 5 of 17 8-8 CITY OF CHULA VISTA STATEMENT OF INVESTMENT POLICY AND GUIDELINES FISCAL YEAR 2005/2006 Services. The issuing corporation must be organized and operating within the United States, with total assets in excess of $500 million and shall issue debt, other than commercial paper, that is rated "A" or higher by Moody's, S&P and Fitch. Split ratings (i.e. A2/PI) are not allowable. No more than 10% of the outstanding commercial paper of any single corporate issue may be purchased. D. BONDS ISSUED BY THE CITY OR ANY LOCAL AGENCY WITHIN THE STATE OF CALIFORNIA. Bonds must have an "A" rating or better from a nationally recognized authority on ratings. E. OBLIGATIONS OF THE UNITED STATES TREASURY United States Treasury Notes, bonds, bills or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. There is no limit on the percentage of the portfolio that can be invested in this category. F. FEDERAL AGENCIES Debt instruments issued by agencies of the Federal government. Though not general obligations of the U.S. Treasury, such securities are sponsored by the government or related to the government and, therefore, have high safety ratings. The following are authorized Federal Intermediate Credit Bank (FICB). Federal Land Bank (FLB), Federal Home Loan Bank (FHLB), Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC), Government National Mortgage Association (GNMA), Tennessee Valley Authorities (TV A). Student Loan Association Notes (SLMA) and Small Business Administration (SBA). There is no limit on the percentage of the portfolio that can be invested in this category. G. REPURCHASE AGREEMENT, maximum term 3 months. Investments in repurchase agreements may be made, on any investment authorized in this section, when the term of the agreement does not exceed 3 months. A Master Repurchase Agreement must be signed with the bank or broker/dealer who is selling the securities to the City. H. REVERSE-REPURCHASE AGREEMENTS (Requires Council approval for each transaction) Reverse repurchase agreements or securities lending agreements may be utilized only when all of the following conditions are met: a) The security to be sold on reverse repurchase agreement or securities lending agreement has been owned and fully paid for by the local agency for a minimum of 30 days prior to sale. b) The total of all reverse repurchase agreements and securities lending agreements on investments owned by the local agency does not exceed 20% of the base value of the portfolio. c) The agreement does not exceed a term of92 days, unless the agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period Page 6 of 17 8-9 CITY OF CHULA VISTA STATEMENT OF INVESTMENT POLICY AND GUIDELINES FISCAL YEAR 2005/2006 between the sale of a security using a reverse repurchase agreement or securities lending agreement and the [mal maturity date of the same security. d) Funds obtained or funds within the pool of an equivalent amount to that obtained from selling a security to a counter party by way of a reverse repurchase agreement or securities lending agreement, shall not be used to purchase another security with a maturity longer than 92 days from the initial settlement date of the reverse repurchase agreement or securities lending agreement, unless the reverse repurchase agreement or securities lending agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the [mal maturity date of the same security. Investments in reverse repurchase agreements, securities lending agreements, or similar investments in which the local agency sells securities prior to purchase with a simultaneous agreement to repurchase the security shall only be made with primary dealers of the Federal Reserve Bank of New York or with a nationally or state-chartered bank that has or has had a significant banking relationship with a local agency. e) For purposes of this chapter, "significant banking relationship" means any of the following activities of a bank: i. Involvement in the creation, sale, purchase, or retirement of a local agency's bonds, warrants, notes, or other evidence of indebtedness. 11. Financing of a local agency's activities. 111. Acceptance of a local agency's securities or funds as deposits. I. MEDIUM-TERM CORPORATE NOTES, maximum 20% of portfolio (30% with Council approval), with a maximum remaining maturity of five years or less. Notes eligible for investment shall be "A" rated or its equivalent or better as determined by a nationally recognized rating service. J. TIME DEPOSITS-CERTIFICATES OF DEPOSIT (non-negotiable certificates of deposit.) Maximum of 3 years. Deposits must be made with banks or savings & loan that have a short term rating of AlIPl or a long term rating of at least a single A from a generally recognized authority on ratings. K. OBLIGATIONS OF THE ST ATE OF CALIFORNIA Obligations must be "A" rated or better from a nationally recognized authority on ratings. L. MONEY MARKET FUNDS, maximum 15% of portfolio. (Requires Council approval for each transaction) No more than 10% of the agency's surplus funds may be invested in shares of beneficial interest of anyone Money Market fund. Local agencies may invest in "shares of beneficial interest" issued by diversified management companies which invest only in direct obligations in U.S. Treasury bills, notes and bonds, and repurchase agreements with a weighted average of 60 days or less. They must have the highest rating from two national rating agencies, must Page 7 of 17 8-10 CITY OF CHULA VISTA STATEMENT OF INVESTMENT POLICY AND GUIDELINES FISCAL YEAR 2005/2006 maintain a daily principal per share value of $1.00 per share and distribute interest monthly, and must have a minimum of $500 million in assets under management. The purchase price of the shares may not include commission. M. THE LOCAL AGENCY INVESTMENT FUND (LAIF) LAIF is a special fund of the California State Treasury through which any local government may pool investments. The City may invest up to $40 million in this fund. Currently, the City has established two (2) agency funds through which the Director of Finance/Treasurer may invest the unexpended cash for all funds: The City of Chula Vista City Fund, and the Chula Vista Redevelopment Agency Fund. Investments in LAIF are highly liquid and may be converted to cash within 24 hours. 9.1 Investment Pools: The City's Director of Finance/Treasurer or designee shall be required to investigate all local government investment pools and money market mutual funds prior to investing and performing at least a quarterly review thereafter while the City is invested in the pool or the money market fund. LAIF is authorized under provisions in Section 16429.1 of the California Government Code as an allowable investment for local agencies even though some of the individual investments of the pool are not allowed as a direct investment by a local agency. 10.0 Portfolio Adjustments: Should any investment listed in section 9.0 exceed a percentage-of-portfolio limitation due to an incident such as fluctuation in portfolio size, the affected securities may be held to maturity to avoid losses. When no loss is indicated, the Director of Finance/Treasurer shall consider reconstructing the portfolio basing his or her decision on the expected length of time the portfolio will be unbalanced. If this occurs, the City Council shall be notified. 11.0 Collateralization: Under provisions of the California Government Code, California banks, and savings and loan associations are required to secure the City's deposits by pledging government securities with a value of 110 % of principal and accrued interest. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City's total deposits. Collateral will always be held by an independent third party. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City and retained. The market value of securities that underlay a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities and the value shall be adjusted no less than quarterly. Since the market value of the underlying securities is subject to daily market fluctuations, the investments in repurchase agreements shall be in compliance if the value of the underlying securities is brought back up to 102% no later than the next business day. The Director of Finance/Treasurer, at his or her discretion, may waive the collateral requirement for Page 8 of 17 8-11 CITYOFCHULA VISTA STATEMENT OF INVESTMENT POLICY AND GUIDELINES FISCAL YEAR 2005/2006 deposits that are fully insured up to $100,000 by the Federal Deposit Insurance Corporation. The right of collateral substitution is granted. 12.0 Safekeeping and Custody: All City investments shall identify the City of Chula Vista as the registered owner, and all interest and principal payments and withdrawals shall indicate the City of Chula Vista as the payee. All securities shall be safe kept with the City itself or with a qualified fmancial institution, contracted by the City as a third party. All agreements and statements will be subject to review annually by external auditors in conjunction with their audit. In the event that the City has a financial institution hold the securities, a separate custodial agreement shall be required. All securities shall be acquired by the safekeeping institution on a "Delivery-Vs-Payment" (DVP) basis. For Repurchase Agreements, the purchase may be delivered by book entry, physical delivery or by third-party custodial agreement consistent with the Government Code. The transfer of securities to the counter party bank's customer book entry account may be used for book entry delivery. 13.0 Diversification: The City's investment portfolio will be diversified to avoid incurring unreasonable and avoidable risks associated with concentrating investments in specific security types, maturity segment, or in individual fmancial institutions. With the exception of U.S. Treasury securities and authorized pools, no more than 60% of the total investment portfolio will be invested in a single security type or with a single fmancial institution. In addition, no more than 10% of the investment portfolio shall be in securities of anyone issuer except for U.S. Treasuries and U.S. Government Agency issues. A. Credit risk, defined as the risk of loss due to failure of the insurer of a security, shall be mitigated by investing in those securities with an "A" or above rating and approved in the Investment Policy and by diversifying the investment portfolio so that the failure of anyone issuer would not unduly harm the City's cash flow. B. Market risk, defmed as the risk of market value fluctuations due to overall changes in the general level of interest rates, shall be mitigated by structuring the portfolio so that securities mature at the same time that major cash outflows occur, thus eliminating the need to sell securities prior to their maturity. It is explicitly recognized herein, however, that in a diversified portfolio, occasional measured losses are inevitable and must be considered within the context of overall investment return. The City's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. Page 9 of 17 8-12 CITY OF CHULA VISTA STATEMENT OF INVESTMENT POLICY AND GUIDELINES FISCAL YEAR 2005/2006 14.0 Maximum Maturities: To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the City will not directly invest in securities maturing more than five (5) years from the date of purchase, unless, the legislative body has granted express authority to make that investment either specifically, or as a part of an investment program approved by the City Council. 15.0 Internal Control: The Director of Finance/Treasurer shall establish a system of internal controls designed to prevent loss of public funds due to fraud, employee error, misrepresentation by third parties, or unanticipated market changes. No investment personnel may engage in an investment transaction except as provided for under the terms of this Investment Policy and the procedure ,< established by the Director of Finance/Treasurer. The external auditors shall annually review the investments with respect to the Investment Policy. This review will provide internal control by assuring compliance with policies and procedures for the investments that are selected for testing. Additionally, account reconciliation and verification of general ledger balances relating to the purchasing or maturing of investments and allocation of investments to fund balances shall be performed by the Finance Department and approved by the Director of Finance/Treasurer. To provide further protection of City funds, written procedures prohibit the wiring of any City funds without the authorization of at least two of the following four designated City staff: 1. Director of Finance/Treasurer 2. Assistant Director of Finance 3. Treasury Manager 4. Fiscal Operations Manager 16.0 Performance Standards: This Investment Policy shall be reviewed at least annually by the Director of Finance/Treasurer to ensure its consistency with the overall objective of preservation of principal, liquidity, and return, and its relevance to current law and financial and economic trends. All financial assets of all other funds shall be administered in accordance with the provisions of this Investment Policy. The monies entrusted to the Director of Finance/Treasurer will be held in a passively managed ("hold to maturity") portfolio. However, the Director of Finance/Treasurer will use best efforts to observe, review, and react to changing conditions that affect the portfolio, and to do so in a manner that is consistent with this Investment Policy. Page 10 of 17 8-13 CITY OF CHULA VISTA STATEMENT OF INVESTMENT POLICY AND GUIDELINES FISCAL YEAR 2005/2006 16.1 Market Yield (Benchmark): The investment portfolio shall be managed to attain a market-average rate of return throughout budgetary and economic cycles, taking into account the City's investment risk constraints and cash flow. Investment return becomes a consideration only after the basic requirements of investment safety and liquidity have been met. Because the investment portfolio is designed to operate on a 'hold-to-maturity' premise (or passive investment style) and because of the safety, liquidity, and yield priorities, the performance benchmark that will be used to determine whether market yields are being achieved shall be the average of the monthly LAIF rate and the 12-month rolling average 2 - Year Constant Maturity Treasury (CMT) rate. While the City will not make investments for the purpose of trading or speculation as the dominant criterion, the Director of Finance/Treasurer shall seek to enhance total portfolio return by means of ongoing portfolio and cash management. The prohibition of highly speculative investments precludes pursuit of gain or profit through unusual risk and precludes investments primarily directed at gains or profits from conjectural fluctuations in market prices. The Director of Finance/Treasurer will not directly pursue any investments that are leveraged or deemed derivative in nature. However, as long as the original investments can be justified by their ordinary earning power, trading in response to changes in market value can be used as part of on-going portfolio management. 17.0 Reporting: The Director of Finance/Treasurer shall submit a quarterly investment report to the City Council and City Manager following the end of each quarter. This report will include the following elements: · Type of investment · Institutional Issuer . Purchase Date . Date of maturity . Amount of deposit or cost of the investment . Face value of the investment . Current market value of securities and source of valuation . Rate of interest · Interest earnings . Statement relating the report to its compliance with the Statement of Investment Policy or the manner in which the portfolio is not in compliance . Statement on availability of funds to meet the next six month's obligations . Monthly and Year-to-date Budget Amounts for Interest Income . Percentage of Portfolio by Investment Type . Days to Maturity for all Investments . Comparative report on Monthly Investment Balances & Interest Yields · Monthly transactions Page 11 of 17 8-14 CITY OF CHULA VISTA STATEMENT OF INVESTMENT POLICY AND GUIDELINES FISCAL YEAR 2005/2006 This quarterly investment report shall be an information item for the City Council and City Manager. In addition, a commentary on capital markets and economic conditions may be included with the report. The Director of Finance/Treasurer shall submit, pursuant to California Government Code S 53646(g), copies of the quarterly investment reports to the California Debt and Investment Advisory Commission (CD lAC) for both the second and fourth calendar quarters within sixty days following the end of the quarter. In addition, the Director of Finance/Treasurer shall submit to CDIAC a copy of the adopted Investment Policy annually and within sixty days of any approved amendments or revisions of the Policy. 18.0 Investment Policy Adoption: By virtue of a resolution of the City Council of the City of Chula Vista, the Council shall acknowledge the receipt and filing of this annual statement of Investment Policy for the respective fiscal year. Page 12 of17 8-15 CITY OF CHULA VISTA STATEMENT OF INVESTMENT POLICY AND GUIDELINES FISCAL YEAR 2005/2006 GLOSSARY AGENCIES: Federal agency securities. ASKED: The price at which securities are offered. (The price at which a firm will sell a security to an investor.) BANKERS' ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. The drafts are drawn on a bank by an exporter or importer to obtain funds to pay for specific merchandise. An acceptance is a high-grade negotiable instrument. BASIS POINT: One one-hundredth of a percent (i.e., 0.01 %) BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) BROKER: A broker brings buyers and sellers together for a commission. He does not take a position. CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CDs are typically negotiable. COLLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COMMERCIAL PAPER: Short term unsecured promissory note issued by a corporation to raise working capital. These negotiable instruments are purchased at a discount to par value or at par value with interest bearing. Commercial paper is issued by corporations such as General Motors Acceptance Corporation, IBM, Bank of America, etc. COUPON: a). The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. b) A certificate attached to a bond evidencing interest due on a payment date. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DEBENTURE: A bond secured only by the general credit of the issuer. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities Page 13 of 17 8-16 CITYOFCHULA VISTA STATEMENT OF INVESTMENT POLICY AND GUIDELINES FISCAL YEAR 2005/2006 with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount. DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued at a discount and redeemed at maturity for full face value (e.g., U.S. Treasury Bills). DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions (e.g., S&Ls, small business fIrms, students, farmers, farm cooperatives, and exporters). FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A Federal agency that insures bank deposits, currently up to $100,000 per deposit. FEDERAL FUNDS RATE: The rate of interest at which Federal funds are traded. This rate is currently pegged by the Federal Reserve though open-market operations. FEDERAL HOME LOAN BANKS (FHLB): The institutions that regulate and lend to savings and loan associations. The Federal Home Loan Banks playa role analogous to that played by the Federal Reserve Banks vis-a-vis member commercial banks. FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC): Created to promote the development of a nationwide secondary market in mortgages. It does this by purchasing residential mortgages from fInancial institutions insured by an agency of the federal government and selling its interest in them through mortgage backed securities. The interest and principal payments from the mortgages pass through to the investors either monthly, semiannually or annually. FEDERAL LAND BANK (FLB): Long-term mortgage credit provided to farmers by Federal Land Banks. These bonds are issued at irregular times for various maturities ranging from a few months to ten years. FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA, like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a Federal corporation working under the auspices of the Department of Housing and Urban Development (RUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans, in addition Page 14 of 17 8-17 CITY OF CHULA VISTA STATEMENT OF INVESTMENT POLICY AND GUIDELINES FISCAL YEAR 2005/2006 to fixed-rate mortgages. FNMA's securities are highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other presidents serve on a rotating basis. The committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money. FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven-member Board of Governors in Washington, D.C.; 12 regional banks and about 5,700 commercial banks are members of the system. GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA OR GINNIE MAE): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA or V A mortgages. The term "pass-through" is often used to describe Ginnie Maes. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. MARKET VALUE: The pnce at which a security IS trading and could presumable be purchased or sold. MARKET REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase-reverse agreements that establish each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller- borrower. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. NEGOTIABLE CERTIFICATES OF DEPOSIT: Unsecured obligations of the financial institution, bank or savings and loan, bought at par value with the promise to pay face value plus Page 15 of 17 8-18 CITY OF CHULA VISTA STATEMENT OF INVESTMENT POLICY AND GUIDELINES FISCAL YEAR 2005/2006 accrued interest at maturity. They are high-grade negotiable instruments, paying a higher interest rate than regular certificates of deposit. OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer). OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit: Sales have the opposite effect. Open market operations are the Federal Reserve's most important and most flexible monetary Policy tool. PORTFOLIO: Collection of securities held by an investor. PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC)-registered securities broker/dealers, banks and a few unregulated firms. PRUDENT PERSON RULE: An investment standard. In some states, the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state-the so - called "legal list". In other states, the trustee may invest in a security if it is one that would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed date. The security "buyer" in effect lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their position. Exception: when the Fed is said to be doing RP, it is lending money that is, increasing bank reserves. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vaults for protection. STUDENT LOAN ASSOCIATION NOTES (SLMA or SALLIE MAE): A U.S. Corporation and instrumentality of the U.S. Government. Through its borrowings, funds are targeted for loans to students in higher education institutions. SLMA securities are highly liquid and are widely accepted. Page 16 of 17 8-19 CITY OF CHULA VISTA STATEMENT OF INVESTMENT POLICY AND GUIDELINES FISCAL YEAR 2005/2006 SMALL BUSINESS ADMINISTRATION (SBA): The portion of these securities which are guaranteed by the Federal government to provide financial assistance through direct loans and loan guarantees to small businesses. Cash flows from these instruments may not be in equal installments because of prepayments. SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution. SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation. SEC RULE 15C3-1: See "Uniform Net Capital Rule". TENNESSEE VALLEY AUTHORITIES (TV A): A U.S. Corporation created in the 1930s to electrify the Tennessee Valley area; currently a maj or utility headquartered in Knoxville, Tennessee. TV A securities are highly liquid and are widely accepted. TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year. TREASURY BOND: Long-term U.S. Treasury securities having initial maturities of more than 10 years. TREASURY NOTES: Intermediate-term coupon bearing U.S. Treasury having initial maturities of one year to ten years. UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker/dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) Income Yield is obtained by dividing the current dollar income by the current market price for the security. (b) Net Yield or Yield to Maturity is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. Page 17 of 17 8-20 RESOLUTION NO. 2006- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA MAINTAINING THE EXISTING CITY INVESTMENT POLICY AND GUIDELINES WHEREAS, the City has an existing Investment Policy and Guidelines to insure the prudent management of idle cash; and WHEREAS, state law requires that the Investment Policy and Guidelines be adopted by resolution ofthe City Council on an annual basis after being reviewed to ensure consistency with the overall objectives of preservation of principal, liquidity, and yield, and its relevance to current law and financial and economic trends; and WHEREAS, City staff recommends maintaining the existing Investment Policy and Guidelines. 4 NOW, THEREFORE, BE IT RESOLVED the City Council ofthe City ofChula Vista does hereby maintain the existing City Investment Policy and Guidelines, attached to this resolution and incorporated by this reference. Presented by Approved as to form by Maria Kachadoorian Director of Finance J:\AttomeyIRESOIFINANCEIINVESTMENT POLICY 2006.doc 8-21 CITY CoUNCIL AGENDA STATEMENT ITEM NO.: 1 MEETING DATE: 06/13/06 ITEM TITLE: COUNCIL RESOLUTION WAIVING THE FORMAL CONSULTANT SELECTION PROCESS AND APPROVING AN AGREEMENT WITH THE CENTRE FOR ORGANIZATION EFFECTIVENESS FOR STAFF PROFESSIONAL DEVELOPMENT CONSULTANT SERVICES AND AUTHORIZING THE MAYOR TO EXECUTE SAID REEMENT. REVIEWED BY: CITY MANAGER SUBMlnED BY: 4/5THS VOTE: YES D NO ~ BACKGROUND Staff seeks to enter into a second agreement with The Centre for Organization Effectiveness for professional staff development consultant services. The proposed agreement is the second consultant assignment with The Centre this fiscal year. The proposed agreement with The Centre includes providing Management and Executive Leadership academies for the City. The total consultant fee for both agreements is $49,7 65 for the Development Services Departments Management Academy + $32,765 for the City's Executive Leadership Academy. Since the total consultant fee for both of The Centre agreements exceeds $50,000 this fiscal year, Council approval is required. Staff is recommending waiving the formal consultant selection process and enter into the second agreement with The Centre for the specified professional staff development consultant services. The recommendation is based on The Centre's qualifications and experience, the limited market for their expertise, and their satisfactory work performance on previous professional staff development consultant assignments. RECOMMENDATION Adopt resolution waiving the formal consultant selection process and approving an agreement with the The Centre for professional staff development consultant services; and authorize the Mayor to execute said agreement. 9-1 PAGE 2, ITEM NO.: q MEETING DATE: 06/13/06 BOARDS/COMMISSIONS RECOMMENDATION Not applicable DISCUSSION The proposed agreement with The Centre is for Management/Leadership academies that will assist with succession planning and leadership development skills. The Centre, a regional governmental agency providing innovative management programs, training, forums and organizational development interventions based in San Diego, has been instrumental in assisting the City of Chula Vista over the years on executive leadership and management training. Staff's recommendation to waive the formal consultant selection process is based on The CENTRE's qualifications and experience, the limited market for their expertise, and their satisfactory work performance on previous consultant assignments. The proposed agreement with THE CENTRE is for the following work assignments: · Develop and present a five-day Executive Leadership Academy for middle managers, senior managers, and executive managers of the City of Chula Vista to help prepare for succession planning and workforce development. Facilitate planning sessions with key senior and executive managers in the City. The scope of work for the Agreement (Exhibit A) includes: · Develop and conduct a executive leadership academy; . Meet with key senior and executive managers to determine needs, interest, and issues; · Tailor the Executive Leadership Academy to the City of Chula Vista and managers; · Tailor and facilitate planning sessions between the Human Resources Director or designee and Assistant City Managers; · Provide a facilitator, presenter and/or coach for each of the five training modules, providing all materials. FISCAL IMPACT The total consultant fee to date with The CENTRE is $49,765. The proposed agreement is the second consultant assignment with The CENTRE this fiscal year. The total consultant fee for the proposed agreement is $ 32,765.00 for a total amount of $82,530 with The CENTRE this fiscal year. Staff has identified $32,765 in the Human Resources OED budget to pay for the consultant services. Therefore, no additional appropriations are being requested. 9-2 RESOLUTION NO. 2006- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE FORMAL CONSULTANT SELECTION PROCESS AND APPROVING AN AGREEMENT WITH THE CENTRE FOR ORGANIZATION EFFECTIVENESS FOR STAFF PROFESSIONAL DEVELOPMENT CONSULTANT SERVICES AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT WHEREAS, staff seeks to enter into a second agreement this fiscal year with The Centre for Organization Effectiveness ("The Centre") for professional staff development consultant services (Exhibit A); and WHEREAS, the proposed agreement with The Centre includes providing Management and Executive Leadership academies for the City of Chula Vista; and WHEREAS, the total consultant fee for the proposed agreement is $32,765 for the City's Executi ve Leadership Academy; and WHEREAS, staff recommends the waiving ofthe consultant selection process of Municipal Code section 2.56.110 in light of The Centre's qualifications and experience, the limited market for their expertise, and their satisfactory work performance on previous professional staff development consultant assignments. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City ofChula Vista, does hereby waive the formal consultant selection process and approve an agreement with The Centre for Organization Effectiveness for staff professional development consultant services in an amount not to exceed $32,765. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista is hereby authorized to execute said agreement on behalf of the City. Presented by: Approved as to form by: Marcia Raskin Director of Human Resources ~~)( cMi\~\)(~~\l \ Ann Moore City Attorney J:\Attomey\RESO\AGREEMENTS\waiving consultant selection - Centre for Org. Effectiveness.doc 9-3 ","-,~-,,,.,~,,,-,,"."',",,,,-,,--"""~~'''''''''''---'----~'"~-~----'----- THE ATTACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALLY SIGNED UPON APPROV AL BY THE CITY COUNCIL ~\'DXC}{\\\ ~~~~~, Ann Moore City Attorney Dated: ~~ 1, 'LOCiv AG ' EMENT BETWEEN THE CITY OF CHULA VISTA AND THE CENTRE FOR ORGANIZATION EFFECTIVENESS FOR EXECUTIVE LEADERSHIP ACADEMY 9-4 Parties and Recital Page( s) Agreement between City of Chula Vista And The Centre for Organization Effectiveness For Executive Leadership Academy This agreement ("Agreement"), dated March 20,2006 for the purposes of reference only, and effective as of the date last executed unless another date is otherwise specified in Exhibit A, Paragraph 1 is between the City-related 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, the human resources of the City of Chula Vista are crucial to the overall success and future of organization; Whereas, one of the primary goals of the City is to ensure workforce and succession planning, with respect to its human resources, and to train and assist in the professional development of its staff; Whereas, participation in professional and specialized executive level leadership academy middle, senior and executive level managers will result in the likelihood of increased effectiveness of the entire organization; Whereas, the Consultant possesses the extensive training, expertise and experience in developing and conducting the type of professional and specialized executive management training sought by the City; Whereas, the Consultant possesses extensive experience in developing and conducting executive leadership programs; and Whereas, the City requested information from trainers/consultants with expertise in developing staff through Executive leadership academy's addressing issues such as leadership, strategic and systemic thinking, communication, decision making and decisiveness, power and politics, risk-taking and innovation, ethics and ethical decision- making, building a high performing team, conflict management skills, and resilience and career management; and Page 1 9-5 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; 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. 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. Page 2 9-6 E. 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. F. Minimum Limits of Insurance Contractor must maintain limits no less than: 1. General Liability: (Including operations, products and completed operations, as applicable.) 2. Automobile Liability: 3. Workers' Compensation Employer's Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability insurance with a general aggregate limit is used, either the general aggregate limit must apply separately to this project/location or the general aggregate limit must be twice the required occurrence limit. $1,000,000 per accident for bodily injury and property damage. Statutory $1,000,000 each accident $1,000,000 disease-policy limit $1,000,000 disease-each employee 4. Professional Liability or $1,000,000.00 each occurrence Errors & Omissions Liability: $2,000,000 policy aggregate Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either the insurer will reduce or eliminate such deductibles or self-insured retentions as they pertain to the City, its officers, officials, employees and volunteers; or the consultant will provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration, and defense expenses. Other Insurance Provisions The general liability, automobile liability, and where appropriate, the worker's compensation policies are to contain, or be endorsed to contain, the following provisions: 1. The City of Chula Vista, its officers, officials, employees, agents, and volunteers are to be named as additional insureds with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the consultant, where applicable, and, with respect to liability arising out of work or operations performed by or on behalf of the consultant's including providing materials, parts or equipment furnished in connection with such work or operations. The general liability additional insured coverage must be provided in the form of an endorsement to the contractor's insurance using ISO CG 2010 (11/85) or its equivalent. Specifically, the endorsement must not exclude Products / Completed Page 3 9-7 Operations coverage. 2. The consultant's General Liability insurance coverage must be primary insurance as it pertains to the City, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers is wholly separate from the insurance of the contractor and in no way relieves the contractor from its responsibility to provide insurance. 3. Each insurance policy required by this clause must be endorsed to state that coverage will not be canceled by either party, except after thirty (30) days' prior written notice to the City by certified mail, return receipt requested. Coverage shall not extend to any indemnity coverage for the active negligence of the additional insured in any case where an agreement to indemnify the additional insured would be invalid under Subdivision (b) of Section 2782 of the Civil Code. Consultant's insurer will provide a Waiver of Subrogation in favor of the City for each required policy providing coverage during the life of this contract. If General Liability, Pollution and/or Asbestos Pollution Liability and/or Errors & Omissions coverage are written on a claims-made form: The "Retro Date" must be shown, and must be before the date of the contract or the beginning of the contract work. 1. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract work. 2. If coverage is canceled or non-renewed, and not replaced with another c1aims- made policy form with a "Retro Date" prior to the contract effective date, the Consultant must purchase "extended reporting" coverage for a minimum of five (5) years after completion of contract work. A copy of the claims reporting requirements must be submitted to the City for review. Acceptability of Insurers Insurance is to be placed with licensed insurers admitted to transact business in the State of California with a current A.M. Best's rating of no less than A V. If insurance is placed with a surplus lines insurer, insurer must be listed on the State of California List of Eligible Surplus Lines Insurers (LESLI) with a current A.M. Best's rating of no less than A X. Exception may be made for the State Compensation Fund when not specifically rated. Verification of Coverage Consultant shall furnish the City with original certificates and amendatory endorsements effecting coverage required by this clause. The endorsements should be on insurance industry forms, provided those endorsements or policies conform to the contract requirements. All certificates and endorsements are to be received and approved by the City before work commences. The City reserves the right to require, at any time, complete, certified copies of all required insurance policies, including endorsements evidencing the coverage required by these specifications. Page 4 9-8 Subcontractors Consultants must include all sub-consultants as insureds under its policies or furnish separate certificates and endorsements for each sub-consultant. All coverage for sub- consultants are subject to all of the requirements included in these specifications. F. 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. (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. G. 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 in the form prescribed by the City and by such sureties which are authorized to transact such business in the State of California, listed as approved by the United States Department of Treasury Circular 570, http://www.fms.treas.gov/c570, and whose underwriting limitation is sufficient to issue bonds in the amount required by the agreement, and which also satisfy the requirements stated in Section 995.660 of the Code of Civil Procedure, except as provided otherwise by laws or regulations. All bonds signed by an agent must be accompanied by a certified copy of such agent's authority to act. Surety companies must be duly licensed or authorized in the jurisdiction in which the Project is located to issue bonds for the limits so required. Form must be satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Performance Bond", in said Paragraph 19, Exhibit A. (2) Letter of Credit. Page 5 9-9 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. 2. Duties of the City A. Consultation and Cooperation City shall regularly consult the Consultant for the purpose of reviewing the progress of the Defined Services and Schedule therein contained, and to provide direction and guidance to achieve the objectives of this agreement. The City shall permit access to its office facilities, files and records 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 Page 6 9-10 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. 3. Administration of Contract Each party designates the individuals ("Contract Administrators") indicated on Exhibit A, Paragraph 13, as said party's contract administrator who is authorized by said party to represent them in the routine administration of this agreement. 4. Term. This Agreement shall terminate when the Parties have complied with all executory provisions hereof. 5. Liquidated Damages The provisions of this section apply if a Liquidated Damages Rate is provided in Exhibit A, Paragraph 14. It is acknowledged by both parties that time is of the essence in the completion of this Agreement. It is difficult to estimate the amount of damages resulting from delay in performance. The parties have used their judgment to arrive at a reasonable amount to compensate for delay. Failure to complete the Defined Services within the allotted time period specified in . this Agreement shall result in the following penalty: For each consecutive calendar day in excess of the time specified for the completion of the respective work assignment or Deliverable, the consultant shall pay to the City, or have withheld from monies due, the sum of Liquidated Damages Rate provided in Exhibit A, Paragraph 14 ("Liquidated Damages Rate"). Time extensions for delays beyond the consultant's control, other than delays caused by the City, 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. Page 7 9-11 6. Financial Interests of Consultant A. Consultant is Designated as an FPPC Filer. If Consultant is designated on Exhibit A, Paragraph 15, as an "FPPC filer", Consultant is deemed to be a "Consultant" for the purposes of the Political Reform Act conflict of interest and disclosure provisions, and shall report economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 15 of Exhibit A, or if none are specified, then as determined by the City Attorney. B. Decline to Participate. Regardless of whether Consultant is designated as an FPPC Filer, Consultant shall not make, or participate in making or in any way attempt to use Consultant's position to influence a governmental decision in which Consultant knows or has reason to know Consultant has a financial interest other than the compensation promised by this Agreement. C. Search to Determine Economic Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant warrants and represents that Consultant has diligently conducted a search and inventory of Consultant's economic interests, as the term is used in the regulations promulgated by the Fair Political Practices Commission, and has determined that Consultant does not, to the best of Consultant's knowledge, have an economic interest which would conflict with Consultant's duties under this agreement. D. Promise Not to Acquire Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will not acquire, obtain, or assume an economic interest during the term of this Agreement which would constitute a conflict of interest as prohibited by the Fair Political Practices Act. E. Duty to Advise of Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will immediately advise the City Attorney of City if 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. Page 8 9-12 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 Defined 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 con'nection with Consultant's performance of this Agreement. Consultant promises to advise City of any such promise that may be made during the Term of this Agreement, or for 12 months thereafter. Consultant agrees that Consultant Associates shall not acquire any such Prohibited Interest within the Term of this Agreement, or for 12 months after the expiration of this Agreement, except with the written permission of City. Consultant may not conduct or solicit any business for any party to this Agreement, or for any third party, which may be in conflict with Consultant's responsibilities under this Agreement, except with the written permission of City. 7. Hold Harmless Consultant shall defend, indemnify, protect and hold harmless the City, 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 or alleged by third parties to be the result of the negligent acts, errors or omissions or the willful misconduct of the Consultant, and Consultant's employees, subcontractors or other persons, agencies or firms for whom Consultant is legally responsible in connection with the execution of the work covered by this Agreement, except only for those claims, damages, liability, costs and expenses (including without limitations, attorneys fees) arising from the sole negligence or sole willful misconduct of the City, its officers, employees. Also covered is liability arising from, connected with, caused by or claimed to be caused by the active or passive negligent acts or omissions of the City, its agents, officers, or employees which may be in combination with the active or passive negligent acts or omissions of the Consultant, its employees, agents or officers, or any third party. With respect to losses arising from Consultant's professional errors or omiSSions, 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) except for those claims arising Page 9 9-13 from the negligence or willful misconduct of 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. Consultant's obligations under this Section shall not be limited by any prior or subsequent declaration by the Consultant. Consultant's obligations under this Section shall survive the termination of this Agreement. 8. Termination of Agreement for Cause If, through any cause, Consultant shall fail to fulfill in a timely and proper manner Consultant's obligations under this Agreement, or if Consultant shall violate any of the covenants, agreements or stipulations of this Agreement, City shall have the right to terminate this Agreement by giving written notice to Consultant of such termination and specifying the effective date thereof at least five (5) days before the effective date of such termination. In that event, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by Consultant shall, at the option of the City, become the property of the City, and Consultant shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused City by Consultant's breach. 9. Errors and Omissions In the event that the City Administrator determines that the Consultants' negligence, errors, or omissions in the performance of work under this Agreement has resulted in expense to City 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. 10. Termination of Agreement for Convenience of City City may terminate th is 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, atthe 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. Page 1 0 9-14 11. 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". 12. Ownership, Publication, Reproduction and Use of Material All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced under this Agreement shall be the sole and exclusive property of City. No such materials or properties produced in whole or in part under this Agreement shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express written consent of City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such reports, studies, data, statistics, forms or other materials or properties produced under this Agreement. 13. Independent Contractor City is interested only in the results obtained and Consultant shall perform as an independent contractor with sole control of the manner and means of performing the services required under this Agreement. City maintains the right only to reject or accept Consultant's work products. Consultant and any of the Consultant's agents, employees or representatives are, for all purposes under this Agreement, an independent contractor and shall not be deemed to be an employee of City, and none of them shall be entitled to any benefits to which City employees are entitled including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Therefore, City will not withhold state or federal income tax, social security tax or any other payroll tax, and Consultant shall be solely responsible for the payment of same and shall hold the City harmless with regard thereto. 14. . Administrative Claims Requirements and Procedures 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 Page 11 9-15 .'''~'';. "....,'''~...;..."''"..,","O<_.~..._...._., ,-,., _",,,'~__"_.~~~__~_____',,,,,,,,_~~_"""""'_'_'_'_"~Y~~"_';~.__''''_ incorporated by this reference as iffully set forth herein, and such policies and procedures used by the City in the implementation of same. Upon request by City, Consultant shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 15. Attorney's Fees Should a dispute arising out of this Agreement result in litigation, it is agreed that the prevailing party shall be entitled to a judgment against the other for an amount equal to reasonable attorney's fees and court costs incurred. The "prevailing party" shall be deemed to be the party who is awarded substantially the relief sought. 16. Statement of Costs In the event that Consultant prepares a report or document, or participates in the preparation of a report or document in performing the Defined Services, Consultant shall include, or cause the inclusion of, in said report or document, a statement of the numbers and cost in dollar amounts of all contracts and subcontracts relating to the preparation of the report or document. 17. Miscellaneous A. Consultant not authorized to Represent City Unless specifically authorized in writing by City, 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. C. 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. Page 12 9-16 D. Entire Agreement This Agreement, together with any other written document referred to or co ntemplated herein, embody the entire Agreement and understanding between the parties rei ating to the subject matter hereof. Neither this Agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. E. Capacity of Parties Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Ag reement, and that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. F. Governing LawNenue This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the federal or state courts located in San Diego County, State of California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City of Chula Vista. Page 13 9-17 Signature Page Agreement between City of Chula Vista and The Centre for Organization Effectiveness For Management Academy and 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: City of Chula Vista Attest: by: John Coggins, Purchasing Agent Susan Bigelow, City Clerk Approved as to form: Ann Moore, City Attorney Dated: The Centre for Organization Effectiveness BY:~ j ~-. ; Trudy J. ' P fTh D. CO-Exe~e Di-~ctor Exhibit List to Agreement (X) Exhibit A. Page 14 9-18 Exhibit A Agreement between City of Chula Vista and The Centre for Organization Effectiveness 1. Effective Date of Agreement: April 21, 2006 2. City-Related Entity: (X) City of Chula Vista, a municipal chartered corporation of the State of California 3. Place of Business for City: City of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910 4. Consultant: The Centre for Organization Effectiveness 5. Business Form of Consultant: ( ) Sole Proprietorship ( ) Partnership ( ) Corporation (X) California Joint Powers Authority 6. Place of Business, Telephone and Fax Number of Consultant: World Trade Center 1250 Sixth Avenue, Suite 150 San Diego, California 92101 Voice Phone (619) 685-1340 Fax Phone (619) 685-1342 Page 15 9-19 7. General Duties: 1) Develop and present a five-day Executive Leadership Academy for mid managers, senior managers, and executive mqnagers of the City of Chula Vista to help prepare for succession planning and workforce development. 2) Facilitate planning sessions with key senior and executive managers in the City. 8. Scope of Work and Schedule: A. Detailed Scope of Work: The Centre for Organization Effectiveness ('The Centre") shall, as an independent contractor, perform technical and temporary services as a professional expert as follows: 1) The Centre shall develop and conduct a executive leadership academy consisting of five (5) separate eight (8) hour training modules ("Executive Leadership Academy"), nQt to exceed more than nine (5) weeks. 2) Prior to conducting the Executive Leadership Academy, The Centre shall meet with key senior and executive managers to help determine the needs, interests, and issues confronting the city as it prepares for the future. 3) The Centre shall specifically tailor the Executive Leadership Academy to the City of Chula Vista and managers who undertake the Executive Leadership Academy. The City Manager, Assistant City Managers and Director of Human Resources or designee has the right of final approval with respect to the topics to be covered by and the content of the Executive Leadership Academy Academy. 4) The Centre shall specifically tailor and facilitate planning sessions between the Human Resources Director or designee and Assistant City Managers. The Assistant City Manager/Director of Human Resources or designee has the right of final approval with respect to the topics to be covered by and the content of the planning sessions. Page 16 9-20 5) The Centre shall provide a facilitator, presenter and/or coach for each of the five training modules forming the Executive Leadership Academy and planning sessions and shall provide all materials, including but not limited to, assessment instruments, necessary to maximize the effectiveness of the Executive Leadership Academy. B. Date for Commencement of Consultant Services: (x) Same as Effective Date of Agreement ( ) Other: C. Dates or Time Limits for Delivery of Deliverables: Deliverable No.1: March 20, 2006 Deliverable NO.2: May 5, 2006 D. Date for completion of all Consultant services: June 30, 2006 9. Materials Required to be Supplied by City to Consultant: 1. The City shall provide a projector and laptop, as needed. 2. The City shall handle the logistics for arranging a site at which to conduct the Management Academy, and thereafter shall pay for all costs incurred in connection with conducting the Executive Leadership Academy, including meeting room(s), morning and afternoon refreshment breaks, and lunch. The site selected by The City will be the Chula Vista Police Department Community and Training rooms. 10. Compensation: A. () Single Fixed Fee Arrangement. 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: Page 17 9-21 ~"_",~,~,"',~~'e""''''_~__.''''''''~''~'_~~_~~.~__ Mil estone or Event or Deliverable Amount or Percent of Fixed Fee () 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans which must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion ofthe phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. B. (x) Phased Fixed Fee Arrangement. For the performance of each phase or portion of the Defined Services by Consultant as are separately identified below, City shall pay the fixed fee associated with each phase of Services, in the amounts and at the times or milestones or Deliverables set forth. Consultant shall not commence Services under any Phase, and shall not be entitled to the compensation for a Phase, unless City shall have issued a notice to proceed to Consultant as to said Phase. Phase Fee for Said Phase 1. Executive Leadership Academy $ 32,765.00 2. Planning Sessions Included in cost of Academy () 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a Page 18 9-22 percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shal! be considered as interest free loans which must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. C. () Hourly Rate Arrangement For performance of the Defined Services by Consultant as herein required, City shall pay Consultant for the productive hours of time spent by Consultant in the performance of said Services, at the rates or amounts set forth in the Rate Schedule hereinbelow according to the following terms and conditions: (1) () Not-to-Exceed Limitation on Time and Materials Arrangement Notwithstanding the expenditure by Consultant of time and materials in excess of said Maximum Compensation amount, Consultant agrees that Consultant will perform all of the Defined Services herein required of Consultant for including all Materials, and other "reimbursables" ("Maximum Compensation"). (2) () Limitation without Further Authorization on Time and Materials Arrangement At such time as Consultant shall have incurred time and materials equal to ("Authorization Limit"), Consultant shall not be entitled to any additional compensation without further authorization issued in writing and approved by the City. Nothing herein shall preclude Consultant from providing additional Services at Consultant's own cost and expense. Page 19 9-23 Rate Schedule Category of Consultant's Employee Name Hourly Rate () Hourly rates may increase by 6% for services rendered after [month], 2005, if delay in providing services is caused by City. 11. Materials Reimbursement Arrangement For the cost of out of pocket expenses incu rred by Consultant in the performance of services herein required, City shall pay Consultant at the rates or amounts set forth below: (x) None, the compensation includes all costs. Cost or Rate () Reports, not to exceed $ () Copies, not to exceed $ () Travel, not to exceed $ () Printing, not to exceed $ () Postage, not to exceed $ () Delivery, not to exceed $ () Long Distance Telephone Charges, not to exceed $ () Other Actual Identifiable Direct Costs: , not to exceed $ , not to exceed $ 12. Contract Administrators: City: Marcia Raskin, Department Director City of Chula Vista Human Resources Department Consultant: Trudy J. Sopp, Co-Executive Director The Centre for Organization Effectiveness Page 20 9-24 13. Liquidated Damages Rate: ( ) $ per day. ( ) Other: 14. 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: 15. ( ) Consultant is Real Estate Broker and/or Salesman Page 21 9-25 16. Permitted Subconsultants: Keren Stashower Mark Slater 17. Bill Processing: A. Consultant's Billing to be submitted for the following period of time: ( ) Monthly ( ) Quarterly (X ) Other: Upon completion of each of the three phases B. Day of the Period for submission of Consultant's Billing ( ) First of the Month ( ) 15th Day of each Month ( ) End of the Month ( ) Other: C. City's Account Number: See attached spreadsheet 18. Security for Performance ( ) Performance Bond, $ ( ) Letter of Credit, $ ( ) Other Security: Type: Amount: $ (x) Retention. If this space is checked, then notwithstanding other provisions to the contrary requiring the payment of compensation to the Consultant sooner, the City shall be entitled to retain, at their option, either the following "Retention Percentage" or "Retention Amount" until the City determines that the Retention Release Event, listed below, has occurred: (x) Retention Percentage: 10% ( ) Retention Amount: $ Retention Release Event: (x) Completion of All Consultant Services ( ) Other: Page 22 9-26 CITY COUNCIL AGENDA STATEMENT Item: I (J Meeting Date: 6/13/06 ITEM TITLE: PUBLIC HEARING: Consideration of adopting a resolution to amend the Master Fee Schedule to increase the Nature Center Admission Fee. REVIEWED BY: RESOLUTION: Resolution of the City Council of the City of Chula Vista amending the Master Fee Schedule to increase the Nature Center Admission Fee. Nature Center D.irect~ ~r City Manager f)/ .~. SUBMITTED BY: (4/5ths Vote: Yes_ NoL) The Nature Center's current admission fees became effective in September 2003 following the opening of the David A. Wergeland Shark & Ray Experience and Eagle Mesa exhibits. Consistent with the plan proposed at that time, admission fees have been re-evaluated in anticipation of the completion of the latest major expansion and upgrade of exhibits. Admission fees are recommended to increase by a modest amount, to be effective following the grand re- opening in July. RECOMMENDATION: That the City Council adopts the resolution approving the proposed amendments to the Nature Center Admission Fee schedule. BOARDS/COMMISSIONS RECOMMENDATION: The Nature Center Board of Trustees unanimously approved the revised admission fee schedule at its 5/18/06 meeting. DISCUSSION: For most of the 19 years the Nature Center has been open, a very modest admission fee, based on age brackets, has been charged to visitors. The City Council approved an increase to these rates, effective September 2, 2003, following the opening of the David A. Wergeland Shark & Ray Experience and Eagle Mesa exhibits earlier that year. The annual General Fund revenue from this fee averaged approximately $48,000 prior to September 2003, and since then has averaged $68,000. Consistent with the plan proposed to Council in consideration of the 2003 action, it is proposed that the rates be again adjusted following the opening of the Wergeland Family Discovery Center (CIP Project # GG 175) in July. The rates being proposed are based on other regional "similar" family attractions and in consideration of the desire to keep the Nature Center affordable and accessible to all who wish to visit. In most age brackets, the new rate is $1 more than the 2003 rate. 10-1 \v Item #: Meeting Date: 6/13/06 Nature Center Fees Other Local Institution Fees . .....-..........,......... Prior to Construction Birch San Diego Natural Quail Botanical .. New Ptop()~~d Fees (effective 9/2/03) History Museum Gardens Age <Pee. Age Fee Age Fee Age Fee Age Fee iAdults .1$+ $9.90 18+ $5.00 18-59 $11.00 1 8-64 $9.00 13-59 $8.00 Military ..<Ah.Y...... $5. QO Any 20% off Any $11.00 Any $6.00 Any $5.00 Seniors 55+ $5.00 55+ $3.00 60+ $9.00 65+ $6.00 60+ $5.00 Students /..18+ $5.00 18+ $3.00 18+ $8.00 18+ $6.00 18+ $5.00 Juniors .1~~11 .$4.00 12-17 $3.00 See Children See Children See Children Children >4A1 $~l DO 6-11 $2.00 3-17 $7.50 3-17 $5.00 3-12 $3.00 Free Children Under 4 Free. Under6 Free Under 3 Free Under3 Free Under 3 Free FISCAL IMPACT: The opening of the new exhibits is expected to result in an increase in visitor volume. This, coupled with the admission fee increase is estimated to provide an additional $25,000 to $30,000 of revenue to the General Fund annually. This new revenue level would account for about 8% of the Nature Center's annual budget of $1,180,000. Other sources of revenue that offset General Fund support include grants, special event fees, corporate sponsorships, individual donations, and retail sales. 10-2 RESOLUTION NO. 2006- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE MASTER FEE SCHEDULE TO INCREASE THE NATURE CENTER ADMISSION FEE EFFECTIVE FOLLOWING THE OPENING OF THE WERGELAND FAMILY DISCOVERY CENTER WHEREAS, the Nature Center's current admission fees became effective in September 2003 following the opening of the David A. Wergeland Shark & Ray Experience and Eagle Mesa exhibits; and WHEREAS, consistent with the plan proposed to the Council in 2003, admission fees have been re-evaluated and should be adjusted following the opening of the Wergeland Family Discovery Center (CIP Project #GG-175) in July 2006; and WHEREAS, the new admission fees are based on other regional "similar" family attractions and in consideration of the desire to keep the Nature Center affordable and accessible to all who wish to visit; and WHEREAS, in most age brackets, the new admission fee is $1.00 more than the 2003 fee; and WHEREAS, the opening of the new exhibits is expected to result in an increase of visitor volume. Coupled with the increased admission fee, this should result in an additional $25,000 to $30,000 of revenue to the General Fund annually; and WHEREAS, the new revenue level would account for about eight percent of the Nature Center's annual budget of$I,180,000; and WHEREAS, the Nature Center Board of Trustees unanimously approved the revised admission fee schedule at its May 18, 2006, meeting. 10-3 . ...,~,...,.._."._.._"---~..~-_...--,,,,-......----.- NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Chula Vista amends the Master Fee Schedule to increase the Nature Center admission fee effective following the opening of the Wergeland Family Discovery Center by the increases listed herein: Nature Center Fees Group Fee Increases Prior to Construction (effective 9/2/03) Age Fee Age Fee Adults 18+ $6.00 18+ $5.00 Military Any $5.00 Any 20% off Seniors 55+ $5.00 55+ $3.00 Students 18+ $5.00 18+ $3.00 Juniors 12-17 $4.00 12-17 $3.00 Children 4-11 . $3.00 6-11 $2.00 Free Children Under 4 Free Under 6 Free Presented by Approved as to form by fl:!!tYt?kfl~ Moore . y Attorney Dan Beintema Director of The Nature Center J:\Attomey\RESO\FINANCE\Amd Master Fee Schedule Nature Center. doc 10-4 CITY COUNCIL AGENDA STATEMENT Item: } I Meeting Date: 6/13/2006 ITEM TITLE: PUBLIC HEARING: Consideration of PCS 06-02; Tentative Map to subdivide 14.58 acres at 825 East Palomar Street into a one-lot condominium parcel containing 336 residential units for individual ownership - LDM Sunbow, LLC. SUBMITTED BY: RESOLUTION: Resolution of the City Council of the City ofChula Vista approving and establishing conditions of a tentative map to divide interest in 14.58 acres at 825 East Palomar Street for a one-lot condominium containing 336 residential units. Director of Planning and Buildin ~ ~i) ~ City Manager 'jl ~ p~ (4/5 Vote: Yes_No l) REVIEWED BY: The Missions at Sunbow complex, originally built as luxury apartments, consists of32 three-bedroom units, 178 two-bedroom units, and 126 one-bedroom units arranged into 21 three-story buildings; a 6,600 sq.ft. community clubhouse, a pool, a tot lot, a fitness center, a private theater, and business center for residents; and 625 garage, carport, and open parking spaces. Environmental Status: The Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the proj ect qualifies for a Class 1 (existing facilities) categorical exemption pursuant to Section 15301 of the State CEQA Guidelines. Thus, no further environmental review is necessary. Inclusionary Housing Status: The City Attorney's office has determined that no low- or moderate- income units will be required by the Applicant or any future development within the Missions project. The low-income housing requirements for the Sunbow development project have been satisfied by another project. Missions at Sunbow previously satisfied its affordable housing requirements through lease of 80 rental units to moderate-income households. There are no further obligations. Conflict of Interest Status: There are no potential conflicts ofinterest for Planning Commissioners or City Council members, as none live within a SOD-feet radius ofthe exterior edge ofthe subject site. RECOMMENDATION: That the City Council adopt the attached Resolution approving the Tentative Subdivision Map based on the findings and subj ect to the conditions contained in the attached draft City Council Resolution. 11-1 ,_.^._.h'~'~"_'_"'''''''''' ,.~- _,~_,,__,".._..~_.,_,.~~.......__~___ Page No.2, Item: ) I Meeting Date: 6/13/06 BOARDS AND COMMISSION RECOMMENDATION: On May 10, 2006, the Planning Commission considered the proposed project and voted (5-0-0-0) recommending that the City Council approve the Tentative Subdivision Map application. DISCUSSION: 1. Project Background This is a request for a Tentative Subdivision Map for a Condominium Conversion of an existing apartment complex that was constructed in 2003 and consists of 336 apartment units and common open space. Tentative and Final map approvals are required to create the one-lot 336-unit condominium map, with final action by the City Council. Condominium conversion projects in Chula Vista may require Design Review. However, since this project was approved for its original construction on December 18, 2000 and is not proposing any exterior building upgrades or modifications as part of the Tentative Map application, further Design Review is not required at this time. Mr. Hamlin of the Lorna Corporation filed this application in June 2005 on behalf ofthe original developer, the Morgan Group. Subsequently the property was sold to Equity Residential, but Mr. Hamlin was retained to continue processing the conversion application. The Planning Commission was originally scheduled to consider this application on March 8; however, shortly before the hearing date staffbecame aware that the new property management for the apartment complex had sent out a notice to the tenants that the complex was not being converted. The applicant explained to staff that Equity Residential did wish to proceed with the conversion process, but the actual sale of units would probably not take place for some time. To eliminate confusion, the applicant agreed to a continuance to give stafftime to send a letter to the tenants explaining the conflicting notifications and clarifying that the conversion hearings would indeed take place (see Attachment G.) hI response to that letter staff received several phone calls requesting clarification of the process. One tenant brought another issue to staff s attention, namely that there is a deed restriction on the property that would prevent the apartments from being converted to condominiums units until the year 2013. Further consultation with the applicant revealed that this was a private agreement between the seller and the buyer and does not restrict the City's ability to proceed with the approval of this application. This restriction can be lifted at some point by agreement between the new owners, Equity Residential, and the seller, The Morgan Group. 2. Project Site and Setting The site is a rectangular and level, 14.58-acre lot with an existing apartment complex located at 825 11-2 Page No.3, Item: lL Meeting Date: 6/13/06 East Palomar Street. The existing uses adjacent to the site are listed in the table below. Table 1: Zoning and Land Use General Plan Zoning Existing Land Use Site RMH Residential Medium PC Planned Community: Multi-family residential High Sunbow II Residential (apts.) Condominium (RC) North PQ Public and Quasi- CO-Administrative and Medical offices and Public Professional Office future expansion area for Sharp Hospital East RLM Residential Low PC Planned Community: Single-family Medium Sunbow II Residential Single residential (across Family (RS) Paseo Ladero) South RLM Residential Low PC Planned Community: Single-family Medium Sunbow II Residential Single residential (across East Family (RS) Palomar Street) West Parks & Recreation; PC Planned Community: 10-acre Veterans Retail; RMH Residential Sunbow II Residential Single Park! condominiums Medium High Family (RS); Sunbow II Open Space (OS) The project is less than a quarter mile west of Hedenkamp Elementary School, accessible via improved streets with sidewalks. Also, Plaza at Sunbow shopping center is located approximately one block west from the project, at East Palomar Street and Medical Center Drive. 3. Project Description: As summarized in the table below, the complex consists of32 three-bedroom units, 178 two-bedroom units, and 126 one-bedroom units arranged into 21 three-story buildings, a 6,600 sq. ft. community clubhouse, a pool, a tot lot, a fitness center, a private theater, a business center for residents, and 625 garage, carport, and open parking spaces. Table 2 summarizes the unit square footage and number of bedrooms for the various unit types (also see attachments B.1 to B.3.) 11-3 Page No.4, Item: 11- Meeting Date: 6/13/06 Table 2: Summary of Units Unit Type No. of Bedrooms! SF of Unit No. of Units Bathrooms Ala, A1h 1/1 724 126 B1a 2/2 1,111 26 BIb 2/2 1,114 26 B2b 2/2 1,162 42 B2h 2/2 1,172 42 B2c 2/2 1,122 42 C1 3/2 1,327 32 TOTAL 336 The units were originally proposed in 2000 as luxury apartment units and feature upscale amenities. Each unit has 9-ft ceilings; designer kitchen cabinets and countertops; full appliance packages (washer/dryer, refrigerator, dishwasher, disposal, microwave ovens); walk-in closets; oversized garden-style bathtubs; interior decorator finishes (crown moldings and ceiling fans); individual unit intrusion security alarms; sound proofing construction; private open space (patio or balcony) with exterior storage/utility closets attached directly to the units; and some units with garages providing direct interior entrances to the attached unit. Storage space is provided in existing walk-in closets, laundry rooms, and utility closets for all units, although not all units have the full amount of required storage. One hundred cU.ft. of additional storage space is proposed to be added to each of the 184 existing garages. Storage area is also provided through utilizing a portion of the patio and balcony utility closets that also contain hot water heaters. The units are already served by separate gas and electric meters, while water and sewer will be the responsibility of the Hoineowners Association. No exterior structural changes or modifications are proposed, outside of minor repairs and paint touchup where necessary, and no interior building upgrades are proposed. The units were constructed in 2003 and are generally in excellent condition. The Applicant intends to perform a thorough cleaning of each unit before sale to the ultimate buyer, and also intends to replace worn carpet and repaint the unit interiors on an as-needed basis. Staff has recommended a condition to repair and replace sidewalks and ADA ramps where needed. 11-4 Page No.5, Item: 1L Meeting Date: 6/13/06 Table 3: Project Data REQUIRED: PROVIDED: Parking: 625 Spaces total 184 "Tuck-under" garage spaces 1.5 space/l-BR unit x 126 = 189 spaces 170 Carport stalls 2 spacesl2-BR unit x 178 = 356 spaces 271 Open spaces 2.5 spaces/3-BR unit x 32 = 80 spaces 625 Total Spaces (includes 12 handicapped spaces) Lot Coverage: Subject to Site Plan Review 24.3 % Setbacks: Subject to Site Plan Review Front: 29.5 ft. Exterior Side Yard: 48 ft. One Interior Side Yard: Not applicable Both Interior Side Yards: Not applicable Rear: Rear: 54 ft. Storage: 250 cu. ft. / 3-bedroom unit It is estimated that most, if not all, of the storage 200 cu. ft. / 2-bedroom unit requirement is met by space in existing utility 150 cu. ft. / I-bedroom unit closets and interior closets, laundry rooms, and proposed new cabinets in garages; however, provision of more ~etail by the Developer is recommended as a condition of approval (see discussion In Analysis, Municipal Code Requirements, D. Storage.) Common Open Space: 136,960 SF 139,866 SF (excess of2,906 SF) 480 SF/ 3-BR unit x 32 units = 15,360 SF Patios/decks = 24,990 SF 400 SF/ 2-BR unit x 178 units = 71,200 SF Club/leasing area = 6,626 SF 400 SF/ I-BR unit x 126 units = 50,400 SF Usable landscaped open space = 108,250 SF Building Height: Subiect to Site Plan Review 40 feet The Sharp Hospital site, located north of the project, is master planned to have additional medical office buildings, parking structure, and other facilities on the adj acent parcel. Staff recommends that the hospital future utilization ofthe northerly adjacent parcel be disclosed at the close of escrow, and that a condition of approval directs the Covenants, Conditions and Restrictions (CC&Rs) to include detailed text and map graphics to inform potential condominium owners of the hospital's future plans. 11-5 ANALYSIS: Page No.6, Item: ~ Meeting Date: 6/13/06 Although this is a basic request to convert this apartment complex into condominium units, it is not the owners stated intention to sell the units at this time. They simply wish to preserve their ability to sell at some time in the future by complying with the subdivision rules as they exist today. This is the first such request (i.e. known deferred sales) the City has received and staffs evaluation has been complicated by the deed restriction mentioned in the background section of this report. Staff has considered the impacts of a delayed sales proposal and believes that the proposed conditions of approval are sufficient to allow approval ofthe request in keeping with all current requirements of the State Subdivision Map Act and the City of Chula Vista Subdivision Ordinance. The following sections provide staffs analysis of the aspects of this request. Noticing Documentation Pursuant to Section 66452 of the Subdivision Map Act, condominium conversion projects must satisfy certain noticing requirements. The applicant has completed the tenant noticing required by the State and by the Municipal Code prior to Tentative Map consideration, including "Form A", the "60-Day Notice to All Existing Tenants of Intent to convert"; and "Form B", the "Notice to all Prospective Tenants of Intent to Convert". Table 4 below identifies the noticing requirements and when existing and prospective tenants should receive them. The tenants have been aware of the condominium conversion project proposal since Form A was sent in September of2005, and will be given notice of having the first option to purchase a unit. Sample notices provided by the Applicant are attached (see Attachment C, Noticing Documentation). Table 4: Noticing Documentation NOTICE RE UIRE~ 60-day notice to all existing tenants of intent to convert - "Form A" HOW LONG & WHEN 60 days prior to filing a Design Review and Tentative Map a lication with the Ci Prior to acceptance of any rent or deposit from the prospective tenant Notice to all prospective tenants of intent to convert - "Form B" 1 O-day notice to all existing tenants of 10 days before or after submittal an application of a Public Report - of the Public Report to the "Form C" Department of Real Estate 10-dayNotice to all existing tenants of Final Ma a roval- "Form DOl Notice to all prospective tenants of option to purchase/termination of tenancy - "Form E" 90-day Notice to all existing tenants of option to purchase/termination of Within 10 days of approval of the Final Ma b the Ci Prior to acceptance of any rent or deposit from the prospective tenant For a period of 90 days after issuance of the Public Report 11-6 COMPLIANCE 60-day notices were sent certified mail to existing tenants Se tember 3, 2005. Applicant has submitted a current tenant list with copies of signed forms for all new tenants 10-day notices of Public Report - "Form C" were sent certified mail to existing tenants Se tember 3,2005 To be determined! Typically followin Final Ma a roval To be determined prior to approval of Final Map To be fulfilled subject to City Standard Supplemental Page No.7, Item: 11 Meeting Date: 6/13/06 NOTICE REQUIREMENT HOW LONG & WHEN COMPLIANCE tenancy - "F onn F" from the Department of Real Subdivision Improvement Estate' Agreement. 180-day notice to all existing tenants of 180 days prior to termination of 180-day notices were sent intent to convertltennination of tenancy tenancy certified mail to existing - "Fonn G" tenants September 3, 2005. HomebuverlRelocation Assistance: The applicant will provide the following regarding assistance to tenants during the condominium sales process (see Homebuyer Assistance Letter, Attachment D): 1. All tenants in occupancy when the proj ect sales office is ready to open will be contacted and informed of their ability to acquire their unit. Based on current price estimates, the Applicant believes that most, if not all, tenants will be able to acquire their units (subject to lender approval) at an after-tax monthly cost comparable to their current rental payment. Specific pricing and payment data will be provided to tenants and a meeting held to answer their questions. 2. If tenants choose to purchase their unit, a discount from the "market" price will be given to them to assist in their closing, in an amount from $2,000 to $4,000, and will be offered to all tenants consistently. 3. Tenants who choose to not buy their unit but who wish to continue renting will be allowed to remain in their unit, on a month-to-month basis until their unit is required for sale to the public. Additionally, they will receive priority to rent another unit in the complex, if one is available. 4. A referral list of available rental units will be made available to tenants prior to their lease expiration. The list will be generated by the Community Development Department (CDD) or, if not available from CDD, by the Applicant. The applicant is not providing any relocation assistance to renters who choose not to purchase their unit. Applicant has noted that due to Missions at Sunbow's current rents, which are higher than most projects in the region, it is believed that few if any tenants will have difficulty fmding a new rental unit at a comparable or lower rent. Staff has included a condition of approval requiring that the applicant provide evidence that the requirements of the homebuyer assistance program have been satisfied prior to approval of the fmal map. Property Condition Assessment Report Because the apartment complex was built under the 1998 Uniform Building Code, a "Physical Condition Report" is not required; however, the Applicant did submit one, which lists a recommendation to address fire sprinkler systems without annual inspection tags posted (see Attachment E, "Property Condition Report - Executive Summary"). Staff has incorporated this recommendation in the Tentative Map conditions of approval. Table 5 below lists the existing services 11-7 Page No.8, Item: 1L Meeting Date: 6/13/06 utilities within the project and what is proposed under the Tentative Map. UTILITY Air conditionin Heating Water heaters Gas meters Electric meter Water Sewer Cable Tele hone Table 5: Utilities EXISTING CONDITION Individual units and thermostats. Individual electric units and thermostats. Individual 40-gallon gas water heater. Individual as meters. Individual meters. HOA HOA Individual unit. Individual unit. PROPOSED CONDITION No chan e ro osed. No change proposed. No change proposed. No chan e No chan e HOA HOA No chan e No chan e The maintenance and monthly payment of the utilities would be addressed in the project's CC&Rs. Staff is recommending that the project meet current Fire Code requirements, including smoke detectors and fire extinguishers, and be inspected and approved by the Fire Department. Municival Code Requirements: Conversion of Dwelling Units to Independent Ownership (CYMe Chapter 15.56): Pursuant to Chapter 15.56, Conversion of Dwelling Units to Independent Ownership, apartments converted to condominiums for sale must address the following issues: parking, adequate storage for each unit, common useable open space areas, and must satisfy fire and Uniform Building Code standards before occupancy. A. Fire Protection: The locations of existing on-site fire hydrants have the approval of the Fire Department and shall not be relocated. The project must provide upgraded fire extinguishers and smoke alarms. The project is also conditioned to comply with current fire protection requirements. B. Uniform Building Code: The project was constructed in 2003 underthe 1998 Uniform Building Code. The Building Department reviewed the "Property Condition Assessment Report" prepared by Land America Commercial Services, and found that the Project will satisfy the Building Code requirements if the recommended improvements are constructed or put in place. These requirements are generally described in the Property Condition Assessment Report Executive Summary, and implementing conditions of approval specified in the draft City 11-8 Page No.9, Item: ~ Meeting Date: 6/13/06 Council Resolution of Approval. C. Open Space -- Common Open Space: CVMC Section 19.28.090 requires 480 square feet of common usable open space per 3-bedroom unit and 400 square feet per 2-bedroom or 1- bedroom unit; therefore, the project must provide a minimum of 136,960 square feet of open space. This project provides 139,866 SF of open space, which is an excess of2,900 SF. The existing open space includes private patios or balconies on all units, a 6,626 SF common open space comprising the clubhouse and leasing area, and approximately 108,250 SF oflandscaped and usable open space area. D. Storage: Section 15.56.020 requires adequate storage area for each unit. Three-BR units require 250 cu. ft. of storage, 2-BR units require 200 cu. ft., and I-BR units require 150 cu. ft. Existing and proposed storage space is provided for the proj ect, including interior closets, utility closets, and garages, although all units may not have the full amount of required storage. The Applicant has provided some information regarding the cu. ft. contained in each unit type (see Attachment B3, Unit Storage Areas), but it is not entirely clear as to what type of storage is provided, i.e., the dimensions of the space and whether it's a shelf above the laundry appliances, a portion of a laundry room or hot water utility closet, or a linen closet. In addition to the existing storage, the proj ect proposes to add 100 cubic feet of storage to the 184 tuck-under individual garages. Because the Applicant has not yet designated which condominium units would be assigned a garage, it is not possible to assess how this proposed garage storage affects the overall storage amount in the individual units. Therefore, staff recommends a condition that prior to approval of the Final Map, the Applicant shall provide the dimensions of all storage areas in the project to accurately depict the storage provided. All units have hot water heater utility closets off their patio or balcony. Because the project is relatively new (constructed in 2003), it did not propose to change out the water heaters; however, in other condominium conversion projects, other developers have changed out to tankless hot water units, which frees up much more space in the utility closets. Per CVMC section 15.56.070, in considering tentative maps for condominium development and evaluating the manner in which storage space is provided, the Planning Commission may recommend and the City Council may approve departures from the stated standards after review of each proposal. Departures shall be based on the merits of the individual project when good cause can be shown. In this case, the Planning Commission is recommending that for any units not meeting the 100 percent storage requirement, the Applicant shall change out the existing hot water heaters for tankless hot water units, thereby freeing up more of the exterior utility closet space for the required storage. Staff has included this as a condition of approval in the draft City Council resolution, and also that for the Final Map the Applicant shall provide all 11-9 Page No.1 0, Item: II Meeting Date: 6/13/06 cabinet, shelving, and closet dimensions to prove that the storage meets all minimum dimensioning requirements. E. Housing Code: The Project is required to conform to Uniform Housing Code requirements in existence at the time of the approval of the Subdivision Map. The project has completed a housing inspection and is required by condition of approval to correct any deficiencies prior to Final Map approval. F. Protective Lighting Standards: This proj ect went through Design Review in December 2000 as part of the original development application. All the original Design Review conditions regarding lighting were fulfilled to the satisfaction of the City, including conformance with Section 17.28.030 and 17.28.040 of the Municipal Code. G. Off-street parking: Per the Sunbow SPA parking requirements, 1-BR units need 1.5 parking spaces, 2-BR units 2 parking spaces, and 3-BR units 2.5 parking spaces. The Project meets the Sunbow SPA parking requirement, providing a total 625 parking spaces, consisting of 184 parking stalls in the "tuck-under" parking garages, 170 carport stalls, and 271 open spaces. Twelve handicapped spaces are included in the total. H. Design Guidelines: It has been determined that since this project went through Design Review in December 2000 as part of the original development application, no further Design Review is required. All the original Design Review conditions regarding site design, architecture, landscaping, fencing, lighting, and other design elements were fulfilled to the satisfaction of the City and any other applicable agencies. 1. Separate Service Meters: Each unit has individual electric and gas meters. A Homeowners Association will be responsible for the water and sewer service utility meters. The Applicant shall provide CC&Rs prior to final map approval showing how this will be satisfied. J. Housing Department Compliance Survey: The Applicant has completed a Housing Code compliance survey and a condition of approval is included requiring the applicant to correct any violations prior to Final Map approval. K. The applicant submitted a "Property Condition Assessment Report" for review by the City's Building Official. The report concludes that the existing apartment complex is in good condition, structurally and cosmetically. However, the assessment identifies immediate repairs to address fire sprinkler systems without annual inspection tags posted. Staffhas included the report recommendations as conditions of approval in the draft City Council Resolution. L. CC&Rs: The Project is conditioned to provide evidence of declarations of covenants, conditions and restrictions in conjunction with approval of the Final Map. 11-10 Page No. 11, Item: JJ Meeting Date: 6/13/06 CONCLUSION: Based on the preceding information, staffhas concluded that the proj ect meets the requirements for a condominium conversion and that the City Council can approve the Tentative Map subject to the conditions listed in the draft City Council Resolution. FISCAL IMPACT: There are no fiscal impacts from the preparation of this report and the processing of the Tentative Subdivision Map. All costs are covered by the full cost recovery deposit accounts. Exhibits: A. Locator Map B.l Tentative Map (3 sheets) B.2 Site Plan B.3 Unit Storage Areas C. Noticing Documentation D. Homebuyer Assistance letter E. Property Condition Assessment Report - Executive Summary F. Letter to Tenants from City G. Disclosure Statement (J :\planning\casefiles\fy05-06\pcs _ 06-02-cc agenda statement_ 6-1-06) 11-11 LOCATOR MAP L(!)R NORTH ATTACHMENT A 11-12 ~ 1~1" 1~~ ~~~ ~ i J U' Gl a ' ltl .~ i ~,.. r' ~Ii ;~;!I""~~~ E ~~ ~. ~ d U NN --d~ .. 0' . Ie i! .H ~ ~Q ~...... .i ... J~ ~N N._ II i Q' I; ! .- u~::51!1~!~ ~ ~g-2i! j! 5 rA B: ~ do_ Hnna!~IHq! Id-;dHi~HH ill.~ I a . ~ n. 1Il I : p~ iH n ~q Ii ~ i · In I ! S f.l I i ~ I I I II I " I !n. !!!l-itf " I I I I I \ I ~ ! :I I ~i1'~ Gi;;13>8f, I I ! I t , .ff q '..-' ~ '- . I ,. { / / / / / I 'f. .if ~ I; ...... H ~ ~ =tl n;;~;;.~ g ~~ ~~ ~ ~ ~~ ~s ~ H m.. .. i ~ ...... . ~ ..... .. f;l ~~. j. .. ;'/ !B 5~ Ie r ~ ,C? ~ I ~ 5!:l ~~... ..~. ~~ Al!1~-t: Uh..~U ... 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Inu 1'.1 , " 1m , J'.l , lil, , . .11 H l~ I i ~ i iill!. n n~ ~ il ~ ~ ~qo m I ~ I ~ ~ III 8"" g'i: ~z ~m oCl ~. j!l 11-18 ~"" ~'i: Cz ~> ~- i~ m! ~ ;;"" ~'i: "z ~> I~ ~ 8"0 g'i: ~z mOl ~~ j! 8"0 gr; ~z mOl a~ ~~ ~~ 8 ~:i': :! ;t(' ~ Ik.)~l.'r · ~" , ~I 'ii "i ;5. ;~ C1 :J:S: c- !;enC (') en Z ~~O::j fUn en 9~Z-l E.....eno .. -I :II ~ :II~ :t> .or :t> \t:J G') Q C1en m 5' -I C :t> 3ZZ:II i>>o......m . vw:t> ooen ~:;E I\) :".:.::::.,. .:.-::-.:11I NOTICING DOCUMENTATION Sample Notification Letters to Tenants A1f ACH1t1l~9N rr C' S e p. E;. 2Q05 c . 0" r.'l ~. !:-'M MlSS10NS AT SUNBOW No.2627 p. 2 .:---:- , , &:._.:.1 -'~'" .. ... ..... --. ~ --... . ~', ~.::.. ..... ......~.~:~:.~~.~ .... " .' , ,. :--.... .. ~.. . . ....:::-..--.... .", ....... -" "'.-." ./.r<.:\ . :," ;..:~ \ MISSIONS at SUNBOW ..... ,.. september 2, 2005 '--. --_._.'----~~ ".. -,.- -........- ..._~' Mr. Michael Panissidi 619/299-8181 facs:m:le Del Mar Pacific Group, LLC 3990 Old Town Avenue, Sure A-206 san Diego, CA 92110 Re: Condo Conwrsion NoticeS Dear Mr. Panissidi: This letter Set'Ves as confilT11aUon that the 6O-<iay notices, 18O-day notices and the Notice of APPlication for Public Report that we received from your oif.ce were posted on all occupied units on June 4, Z005. These notices were ~ered by Missions at. Sunbow staff membelS and posted on all applicable front doors. . You may contact me at 619162s.-8S83lf you have any further questions or concerns. Sincerely, Cj1~~ Michele Sites property Manager 825 E. p(lIOfl\ar Street Cliula Vista. CA 9190 P: (619)62.8-8583 F:(619)62S-8584 W\\W. nlorg.an group .com 11-20 ~- ~.. ".". ".. -'.,,".' ," ---""'._"'">---'~"""""~""'-'''''''~''' ,-_.--",.~._...._-,,_..."....~~~.~_..-~,~~,.....~~~ LDM SUNBOW, LLC June 4, 2005 Re: THE MISSIONS AT SUNBOW Dear Tenant, We are working with the current owners of the project to commence the process of converting The Missions. at Sunbow into condominiums. Owners are required by law to provide tenants with various notices relating to the conversion process, so you may expect to receive such notices in the next several months. The conversion process is relatively lengthy and it could conceivably take a year or more to complete. Enclosed please fmd the 60-Day and l80-Day notices, as well as the Notice of Application for Public Report. The 60-Day Notice is simply a notice stating the owner's intention to begin the conversion process with the City of Chula Vista. The enclosed notice is not a notice to vacate your unit, and it does not change the terms of your current rental agreement. We want to assure you that there is no intent to terminate your tenancy due to the conversion process; therefore, we have also included the 180-Day notice. We wish to ease any concerns you may have regarding the lengthy conversion process and encourage you to please call either Sam Holty with Lorna Corporation at (619) 544- 9100 or Mike Panissidi with Del Mar Pacific Group at (619) 299-8100 to answer any questions you might have. Thank you for your cooperation. LDM SUNBOW, LLC 11-21 NOTICE TO TENANTS OF INTENTION TO CONVERT TO CONDOMINIUMS To: All Lawful Tenants of The Missions at Sunbow Concurrently with this notice, we notified you that we applied for a tentative map with the City of Chula Vista to authorize the conversion of this project to condominiums. We are required by law to provide you with this notice at this time, and to inform you that if the condominium conversion is approved you may be required to vacate your Unit. However, you will have a minimum of 180 days from the date of this letlerbefore you will be required to move. Please note that this is not a notice of termination or cancellation of your lease. No units may be sold in this building unless the conversion is approved by the City and until after a public report is issued by the Department of Real Estate. You may continue to lease and occupy your unit upon the terms set forth in your lease. Furthermore, during the mapping process, you will be given notice of each hearing for which a notice is required pursuant to Sections 66451.3 and 66452.5 ofthe Government Code. You will have the right to appear and the right to be heard at any such hearing. Thank you for your continuing residency at this project. If you have any questions or comments, please do not hesitate to contact either Sam Holty at (619) 544-9100 or Mike Panissidi at (619) 299-8100. LDM SUNBOW, LLC Date: June 4, 2005 NOTE: In no event will your lease be terminated prior to its expiration due to the conversion process. 11-22 ,,,",,,_,"'__,~~.'.'__"_~"' ,.'_,' ,,'__...'^.~_~ _,_"",~,,,,,,,""~M""""~"___~~._''''_~~~''''_'_~_<'<_~~_~,,---,--_.. 60 Day Notice of Filing Tentative Map for Conversion To: All Lawful Tenants of The Missions at Sunbow The owners of The Missions at Sunbow, Chula Vista, CA 91911 plan to file a Tentative Map with the City of Chula Vista to convert this building to a condominium project. You shall be given notice of each hearing for which notice is required pursuant to Sections 66451.3 and 66452.5 of the Government Code. You have the right to appear and the right to be heard at any such hearing. No units may be sold in this building unless the City approves the conversion maps and until after a public report is. issued by the Department of Real Estate. Should the condominium conversion project be approved, tenants may be required to vacate the premises. In the event that the owner commences a sales program while you are still lawfully a resident at the property, you will be given various notices and a right of first refusal to purchase your unit as required by law. Thank you for your continuing residency at The Missions at Sunbow. The tentative map application is just the first step in a lengthy process. If you have any questions or comments, please do not hesitate to contact either Sam Holty at (619) 544-9100 or Mike Panissidi at (619) 299-8100. LDM SUNBOW, LLC Date: June 4, 2005 11-23 NOTICE OF APPLICATION FOR PUBLIC REPORT Date: June 4, 2005 To: All Lawful Tenants of The Missions At Sunbow Chula Vista, CA 91911 We are writing to inform you that an application has been filed with the California Department of Real Estate for a Public Report pertaining to the sale of condorninimn units in the Project. If the owners receive the Public Report, a copy will be available for your review upon request. Thank you for your continuing residency at The Missions at Sunbow. If you have any questions or comments about this notice, or any other matters related to this process, please contact either Sam Holty at (619) 544-9100 or Mike Panissidi at (619) 299-8100. LDM SUNBOW, LLC 11-24 LDl\'l SUNBO\V, LLC June 4,2005 Re: THE MISSIONS AT SUNBOW , Dear Tenant, We are working with the current owners of the project to commence the process of converting The Missions at Sunbow into condominiums. Owners are required by law to provide tenants \vith various notices relating to the conversion process, so you may expect to receive such notices in the next several months. The conversion process is relatively lengthy and it could conceivably take a year or more to complete. Enclosed please find the 60-Day and 180-Day notices, as well as the Notice of Application for Public Report. The 60-Day Notice is simply a notice stating the owner's intention to begin the conversion process with the City of Chula Vista. . The enclosed notice is not a notice to vacate your unit, and it does not change the terms of your current rental agreement. We want to assure you that there is no intent to terminate your tenancy due to the conversion process; therefore, we have also included the 180-Day notice. We wish to ease any concerns you may have regarding the lengthy conversion process and encourage you to please call either Sam Holty with Lorna Corporation at (619) 544- 9100 or Mike Panissidi with Del Mar Pacific Group at (619) 299-8100 to answer any questions you might have. Thank you for your cooperation. LDM SUNBO'V, LLC · . 11-25 COi).'DO:\1Ii.'HL"Y! CON\.:ERS101"S- FORLy! G 180-DAY NOTICE TO ~"USTING TENA.'-t"T OF INTE)fT TO COi'ivJi:RT,'TF.Ri\.:~ATION OF TEl'L..\..l'1CY To the occupant(s) of: ?P'f //IISJ'/44S" "r -.S;.d~~ c..V. (address) 9/ <f /.3 (apara:!lcnt #) The: own.~:(s) of:t},is building. at ~fit-...cr",9.,. l' ,/~ -kL1~ C~ 94/J(ad.dres.s.), b.:iye obtain.;:d all necessary ~p~'()Yals from the City of Chula. Vis".:J. aud Depa...~ent or Real Estate.. JUter the approval of the Building Pepnit, the OWIJ.er Ca::! begin th;: construction process of c:mverting the lUlits ir..to cOlldomi.ciUI:!l, ifclt<mges are being proposed. The O....lle: has me right m terminate your lease or rent:!.! agreement on or:aftc t80 day-s of the date oftbis notice_ Pleas;: vcri:)- with the OV.-nef or owner's agent of the anticipated. mciJve out dzte if you bave not puxchase1 Y01.:r unit. Te-'-:2r'.:ts who b.2.ve purd13sed their w..i.ts may also be r::qmred to tem.para.-y move out durirlg the consrro.ction. p1lase. tt - f.:: RJ-- ( ciat::) (Se<:tiOIl 66<;21.1 (c)-~f cb.c Go"=n:: Codl:) 11-26 11-27 CONDO:i.'-1l2'iIUi.H CONVr:l~SIOL\S- FO.Rl\{ A 50-DAY J.'IiOTICE TO LXISTTh"G TEK-\..:.'r~ OF INTEI\""T TO CO~).'"ERT To the occup:mt(~) of: Z#;r P'J'PJ/~5 ~r J"~/}t5~~ c.JI. 91911 ( address) ( ap:!.rtme:::.t #) I 0/ flll$ The ovt"D.er(s) of this building, at J).I;:S ~/~.$ ,4F Sh";~ (add:i:'ess), pl!U:.S to file a Design Review ar..d. Tc:nC3.tivelParcel Map application v.."itl: ~e Ci;y' ofChula Vis~ to ronVeri: this building to a ::ond.om;,.,i~ project. You shall be given notic:: or e:l.Ch hC2ring fur which notice is required pursuant to SectioIlS 66451.3 aI!rl 66452.5 of the Gove:rnm.-=nt Code. and you have the right to appear and the right to be he:lI"d. at a..T1:J.' such heari!lg. rUe OWIle:: or o.......ner's agent shall provide a total of five (5) different notic::s throughcut:the approyal process to c2Ch tenmt priQr to the tel!2.O.t vacating the premises dce to t.i.e conv<:rs!on.. T.J:e City of Chuta Vist2. will notL.-y each t<:cant of all tb....'""ee (3) public he:rr'~gs (Desigu Review Committee, P1:mning Cornm.issioil, C.!:l.d Cit'"f CoU:tcil) :or the . ct 'Ppro 1 " --- (Sc.:::ioIl66427.:(;].) &: 66452.9 of the Govc..-u.'"TIcn,Co<le) 11-28 _LOMA :OIPORATION February 24,2006 CITY OF CHULA VISTA c/o Ms. Danielle Putnam RBF CONSULTING 9755 Clairemont Mesa Boulevard, Suite 100 San Diego, CA 92124 RE: MISSIONS AT SUNBOW /RENTERRELOCATION ASSISTANCE Dear Ms. Putnam: Pursuant to your request, the following outlines the steps we are planning to take to assist the tenants at The Missions at Sunbow during the condominium sales process. 1. All tenants in occupancy when the project sales office is ready to open will be contacted and informed of their ability to acquire their unit. Based on current price estimates, it is believed that most, ifnot all, of the tenants will be able to acquire their units (subject to lender approval) at an after-tax monthly cost comparable to their current rental payment. Specific pricing and payment data will be provided to them, and a meeting will be held to answer their questions. 2. If they choose to buy their unit, a discount from the "market" price will be given to them to assist in their closing. This amount will range from $2,000 - $4,000 and will be offered to all tenants consistently. 3. Tenants who choose not to buy their unit, but who wish to continue renting, will be allowed to stay in their unit, on a month-to-month basis until their unit is required for sale to the public. Additionally, they will receive priority to rent another unit in the complex, if one is available. 4. A referral list of available rental units will be made available to tenants prior to their lease expiration. The list will be generated by the Community Development Department or, if they do not have one, by the applicant. It should be noted that, due to its new construction and high quality, The Missions at Sunbow has current rents that are higher than most projects in the region. Therefore, few (if any) tenants will have difficulty finding a new rental unit at a comparable, or lower, rate. 1.29 -,,-n n .....1,___... t"O..:.L_ ""'"'7'''' _"..__ n:___ "'A 1"\"''''""" aT_I. ,,.......,,, '-/11 .........." _1"'"_ ',........1 "'M.o ,........... Ms. Danielle Putnam February 24, 2006 Page Two We are confident these steps will ease the transition of the tenants at The Missions at Sunbow. Hopefully, many will choose the option of ownership and will not have to move at all. Weare available to answer any questions you may have. Sincerely, LOMA CORPORATION J AGENT FOR LDM, SUNBOW LLC William R Hamlin President ,\iRRt] 896"'ID 11-30 .LOMA CORPORATION February 24, 2006 CITY OF CHULA VISTA c/o Ms. Danielle Putnam REF CONSULTING 9755 Clairemont Mesa Boulevard, Suite 100 San Diego, CA 92124 RE: MISSIONS AT SUNBOW / RENTER RELOCATION ASSISTANCE Dear Ms. Putnam: Pursuant to your request, the following outlines the steps we are planning to take to assist the tenants at The Missions at Sunbow during the condominium sales process. 1. All tenants in occupancy when the project sales office is ready to open will be contacted and informed of their ability to acquire their unit. Based on current price estimates, it is believed that most, ifnot all, of the tenants will be able to acquire their units (subject to lender approval) at an after-tax monthly cost comparable to their current rental payment. Specific pricing and payment data will be provided to them, and a meeting will be held to answer their questions. 2. If they choose to buy their unit, a discount from the "market" price will be given to them to assist in their closing. This amount will range from $2,000 - $4,000 and will be offered to all tenants consistently. 3. Tenants who choose not to buy their unit, but who wish to continue renting, will be allowed to stay in their unit, on a month-to-month basis until their unit is required for sale to the public. Additionally, they will receive priority to rent another unit in the complex, if one is available. 4. A referral list of available rental units will be made available to tenants prior to their lease expiration. The list will be generated by the Community Development Department or, if they do not have one, by the applicant. It should be noted that, due to its new construction and high quality, The Missions at Sunbow has current rents that are higher than most projects in the region. Therefore, few (if any) tenants will have difficulty fmding a new rental unit at a comparable, or lower, rate. ,. 750 B Street, Suite 2370 · San Diego, CA 92101 · Tel: (619) 544-q1nn . J:"v' (&;10\ C:AA "CAC A11At!-tt4"tN\ D ~-31 Ms. Danielle Putnam February 24, 2006 Page Two We are confident these steps will ease the transition of the tenants at The Missions at Sunbow. Hopefully, many will choose the option of ownership and will not have to move at all. Weare available to answer any questions you may have. Sincerely, LOMA CORPORATION "] AGENT FOR LDM, SUNllOW LLC William R. Hamlin President \'iRH:tj 896. wrh 11-32 ~ LandAmerica" Commercial Services Prepared For DEL MAR PACIFIC GROUP, LLC 3990 OLD TOWN AVENUE, SUITE A 206 SAN DIEGO, CALIFORNIA 92110 J'F--) rs 'f~-r~n ,------, jI81;.J~~ II ~(l ~ rr\! j! ,:~\< / ._- ~~~-~.~~! 111 ,!; }:I,' '-'r 'J' Ii' i'U' , i; ~c.P 092005 :/..;/1 ,-" J II L- \~i 1"\1 ., ",. . -~ I r-: ~J'J:,jl "Jf':\ ' . ;~~ i ~..: j' ~ ~ ~ '::J ; --....; PROPERTY CONDITION REPORT MISSION AT SUNBOW APARTMENTS 825 East Palomar Street Chula Vista, California 91911 Date Issued: March 18, 2005 LAC Project Number 05-24702.1 AlTAO#MBNT E. ~ '. .~ - ... IT~~ LandAmerica' _ Commercial Services PROJECT SUMMARY ",,~."i'""" " .;"",/. ---:,. . ,~",;",,'I;:/' '. . . .:"~' ..~",:-;: Immediate .' Capital ,,"',,' ,~~;,"'." /' ,t, "Item 'Excellent ; 'Good .' Fair - : Poor ..' Action* --. Needs -- Reserves'" SITE 1M PROVEM ENTS-0"i;;f."~3~\r;ff'i;~i"'l'1r.;ifl-:i' .i';~,-,-;;'i';)'1';;:. .:'-~ . .... .- '..'- . , ",.:.",,-,}'; L.... ,";-,' ..' .' ':=-'1.. '"....., '. '.'''.''-, ..... - :;i-:::'i.'~--:,:'..~;'i ::".: ~:, - " - , ~"~- .. .. Toooaraohy X NM Storm Drain System X NM Parkina Pavement. Curbs & Gutters X X RR $35,721 Sidewalks X NM Utilities X NM Landscaoina X NM Site LiQhtina X NM Site & Buildina Sianaae X NM Recreational Facilities/Amenities X RR $12.200 'STRUCTURAI1"SYSTEMS,ANO:.8UILDING.. ENVELOPE~::'i~'j.~<\;"~:~';,~J;.,,;;'f;!~:'""~;ft!;E;A~r~,..';:j:;;:'~';i'~'-i;~,,;" : '" Foundations X NM Structural System Includina Floors X NM Exterior Walls, Patch & Paint X RR $201.600 Windows & Frames X NM Exterior Doors & Frames X NM Stairs (Interior & Exterior) X NM Balconies & Uooer Floor Walkways X NM Roof Coverinas X NM Roof Drainaae X NM "MeCHANICAt:.~Et'ECTRrCA~;&'*Rr:UM8INGSYSTEMS:~i!1~:"\f';~~.~~:;iJy,~"l';~{f~:~.if~~f~~~.~~~i~~~~~~~.;;~j~!\!it~!if'~("i'0 HVAC X RR $22,400 Electrical X NM Emeraencv Generator NA Hot & Cold Water Distribution System X NM Water Heaters X RR $21.000 Gas Distribution System X NM ~1:.~~~~~S~ .EIREI L1EE"~AFE.TY,,.,,;,- Fire Suooression Systems . X X IR, NM $1,500 I Security Alarm Systems ~ I NM ~ ;.lNJERIORIElENlENTS.. Common Area Finishes X NM Dwelling Unit Finishes (Floors, Aooliances, Etc,) X RR $431 ,480 Interior Doors & Frames X ~'~ it;.1~8ARRIERFRl:E~~ACCES$IBIL..mf~(ADA ' .'. Parkinq, Sianaae & Ramos X NM Common Area Accessibility Including Restrooms X NM * Action: NM = Normal Maintenance, IR = Immediate RepairJReplacement, RR = Replacement Reserves, NA = Not Applicable, HUn-inflated Values, NA=Not Applicable 0-1 $1,500 NA NA NA Table 1 12 $724,401 $886,985 $180 $220 Table 2 This table displays the estimated costs. The estimated costs are preliminary and are based upon LAC's experience in conducting similar projects. The actual cost will be affected by factors such as project duration, site access, market conditions, and other contingencies applied by the owner. This project summary is not to be used alone, The attached report is intended to be read in its entirety. ~~;~~;~~~si{~i ~~i~~i~g:~ia' ."Un nilated _..w "-1 fl t d' :::"_...:,,7,.f,-~':;:~":;':,:, ~;s~ nitIYr.';~ "{j;~M~~tNrY;\ ......,~5~o.r~~ction. LAC PROJECT NO. 05-24702.1 PROPERTY CONDITION REPORT 11-34 .~~~~.. ~_. -" l ! In., LandAmerica" .. Commercial Services EXECUTIVE SUMMARY A property condition assessment was performed by LandAmerica Assessment Corporation (LAC) on the Mission at Sunbow Apartments property located at 825 East Palomar Street in Chula Vista, California (Subject Property). The assessment was conducted on March 1, 2005. The Subject Property consists of a generally rectangular-shaped parcel that totals approximately 14.59 acres in size and is situated on the north side of 825 East Palomar Street, approximately two miles east of Highway 805. The Subject Property is improved with 21 three-story multi-family residential buildings that contain a total of 336 apartment units and a net rentable building area of approximately 336,690 square feet. General Description Building permit research indicates that the subject buildings were constructed in 2003. Current building improvements include conventional wood frame structures constructed above on grade reinforced concrete footings and slabs. Conventional floor and roof joist systems are employed on the three-story apartment buildings. Each apartment building has "tuck under" garage parking spaces, which are constructed of wood framed walls supporting wood beams and the second floor deck. Exterior walls of the building are finished with stucco. Concrete tile shingles are employed on the buildings' roofs. The Subject Property provides parking for 625 automobiles. There are 184 parking stalls in the "tuck- under" parking garages, 170 carport stalls, and 271 open spaces. Typical interior finishes include spray textured painted drywall walls and ceilings. Stained kitchen cabinets with plastic laminate counter tops are standard throughout the rental units. Floor finishes include wall to wall carpeting and sheet vinyl flooring in kitchens and baths. J~S;~l~f NKCERS' ~;J:~~ES\~, ;6f~~Q}'i' X X 1-Bedroom/1-Bath 2-Bedroom/2-Bath 2-Bedroom/2-Bath 2-BedroomJ2-Bath w / 2-Bedroom/2-Bath w / 2-Bedroom/2-Bath 3-Bedroom/2-Bath The Subject Property is zoned PC-RLM, Planned Community Residential Low-Medium Density by the City of Chula Vista Planning Department. The subject improvements appear to be developed in accordance with the designated zoning. 1. \ . PROPERTY CONDITION REPORT 2 11-35 LAC PROJECT NO. 05-24702.1 ~~ tn., LandAmerica" .. Commercial Services General Physical Condition The Subject Property was observed to be in good overall condition. Adequate maintenance of the Subject Property's major systems, components and equipment appear to be in place including appropriate preventative maintenance. Conclusions/Recommendations Deferred maintenance items and physical deficiencies that are considered significant and require immediate repair expense include fire sprinkler systems without annual inspection tags posted. Minor deficiencies requiring repair/maintenance are discussed in the appropriate section within this report. Capital replacement reserves over the term of this report will be required for items such as asphalt pavement seal coating, parking stall striping, swimming pooVspa plaster liner resurfacing, swimming pool/spa filtration equipment replacements, exterior painting, HV AC equipment replacements, water heater replacements, carpet/flooring replacements and kitchen appliances replacements. These items are identified in Table 2. The structural elements of these buildings have performed adequately for the past two years. Assuming the recommendations in this report in reference to the Immediate and Physical Needs over the Term are made in an appropriate time frame; a preventive/remedial maintenance program is implemented continually; and all site systems and building components are replaced as necessary with an acceptable standard of care, this sites estimated remaining useful life (ERUL) should be at least an additional 40 years barring any natural disasters. This is based on the observation that the foundations, which has an expected useful life (EUL) of 50 years plus, were observed to be functioning properly with no major deficiencies. Other site and building elements are replaceable. However, as the property ages, the maintenance program cost should be expected to increase. LAC can make no comment on the marketability of the site's useful life. Any qualifications and limitations in place for the property condition assessment as provided by LAC is applicable to the summary comments mentioned above. 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" >- >- ct:: <:( :;;: ~ -;;'--.- "" ,," ~:~:: lJ.J c: : ; :s=~= ffia:c:c: CIl..::J::J ~~~~ ~{f? ~~ '.: .....,.;;""""'-....,.;:~ --....... -.:... ...,.. ~-~~ CI1Y OF CHLJlA VISTA April 3, 2006 PLANNING & BUILDING DEPARTMENT Current Tenant Missions at Sunbow Subj ect: Application for Condominium Conversion of 825 East Palomar (City ofChula Vista case numbers DRC-06-l4 and PCS-06-02) Dear Tenant: This letter is intended to clarify the situation regarding conversion of the apartment units in your complex to condominium ownership. An application to convert the Missions at Sunbow apartments to condominiums was filed with the City's Planning and Building Department on September 9, 2005 by the applicant, LDM Sunbow, LLC, for the apartment complex's then owner MGL'Sunbow, LP. The applicant provided you notification of that application. . Following the initial application, Equity Residential purchased the Missions at Sunbow property in March 2006. Their new property management sent you a letter that mistakenly stated that they 'lladno intention of converting the property to for sale condominiums at this time." Actually, the application for conversion to condomini'um units is still being processed by the City of Chu1a Vista, on behalf of Equity Residential, as they do intend to create the option for individual condominium ownership of the apartment units. However, the time frame for when they will offer the units for sale has not yet been established. We previously sent out a public notice of a March 22, 2006 Planning Commission .:;f hearing date to consider a recommendation to the City Council on the proposed ~ condominium conversion. Due to concerns that you as a tenant may have been confused ' t:;, by conflicting information about this project, that hearing was continued and the Planning YJ Commission will now consider the project on April 12, 2006. A City Council hearing y will follow a few weeks later. We hope this clarifies the status of your apartment complex. If you have any questions or concerns after reading this, please contact project planner, Danielle Putnam, at (858) 614- 5054 or me at (619) 476-5367. J: Uf f f;J y r Cc: Bill Hamlin, LDM Sunbow, LLC, 750 B Street, Suite 2370, San Diego, CA 92101 ~Vl? PRIDE AT WOIK www.chulavistaca.gov ~""? Post-Consumer Recycled Paper 1276 Fourth Avenue. MS' P-100 ^--ri Ac.~MF: "IT f Chula Vista, CA 91910 1"'\ ~ \ 1 I 't'- 39" ~J~ -.- ';-- - Planning & Building Department Planning Division I Development Processing ellY OF CHUlA VISTA APPLICATION APPENDIX B Disclosure Statement Pursuant to Council Policy 101-01, prior to any action upon matters that will require discretionary action by the Council, Planning Commission and all other official bodies of the City, a statement of disclosure of certain ownership or financial interests, payments, or campaign contributions for a City of Chula Vista election must be filed. The following information must be disclosed: . 1 . List the names of all persons having a financial interest in the property that is the subject of the application or the contract, e.g., owner, applicant, contractor, subcontractor, material supplier. LDM Sunbow, LLC (William R. Hamlin - Contracted Buver) Missions at Sunbow, LLC (Ric Shwisbera - Contracted Owner) 2: If any person* identified pursuant to (1) above is a corporation or partnership, list the names of all individuals with a $2000 investment in the bus!~~~s (corporation/partnership) entity. William R. Hamlin (Missions at Sunbow, LLC) Mark Panissidi (Missions at Sunbow. LLC) Keith Horne (Missions at Sunbow, LLC) Samuel Holtv (Missions at Sunbow. LLC) 3. If any person* identified pursuant to (1) above is a non-profit organization or trust, list the names of any persor:l serving as director of the non-profit organization or as trustee or beneficiary or trustor of the trust." N/A 4. Please identify every person, including any agents, employees, consultants, or independent contractors you have assigned to represent you before the City in this matter. Hunsaker & Assoc. (Dan Rehm) Samuel Holtv Phillip Abblitt William R. Hamlin Mike Panissidi Mark Panissidi 5. Has any person* associated with this contract had any financial dealings with an official** of the City of Chula Vista as it relates to this contract within the past 12 months. Yes G- No ~ .;j .., If Yes, briefly describe the nature of the financial ioterest the official** may have in this contract. ~ . .' 6. Have you made a contribution of more than $250 within the past twelve (12) months to a current member of the Chula Vista Tt Council? No [2] Yes D If yes whirh fCc, ,ceil Member? 276 Fourthtnue h'l{;ti~ fTt~:r I 91~ ~, \U I::;} Q:::I-5101 - .._,"-~-~....._~,~.." " . ,,,_.,.->,._,,._,~...,>.,~-_.-.,.,~~_.~_.~--~"""""-----"_"~~~~' .-, ~{It- -..- ~~L _ _:= Planning & Building Department :;~ Planning Division I Development Processing em OF CHULA VISTA ,..;. ?' APPLICATION APPENDIX 8 Disclosure Statement - Page 2 7. Have you provided more than $340 (or an item of equivalent value) to an official** of the City of Chula Vista in the past twelve (12) months? (This includes being a source of income, money to retire a legal debt, gift, loan, etc.)-Yes D- No ~ If Yes, which official*'" and what was the nature of item provided? * xJ~ Signature of Contractor/Applicant .x W, \A",,~~. ~c.,,\J Print or type name of Contractor/Applicant Person is defined as: any individua.l, firm, co-partnership, joint venture, association, social club, fraternal organization, corporation, estate, trust, receiver, syndicate, any other county, city, municipality, district, or other political subdivision, -or any other group or combination acting as a unit. Date:~ 8/",1., J oS I. : I :-;.~ ** Official includes, but is not limited to: Mayor, Council member, Planning Commissioner, Member of a board, commission, or committee of the City, employee, or staff members. -.id 11 -41 27il Fnllrth A\lpnllP I rhlli::> \/i<::t"l I l'''llifnrni", I Cl~ (">1 1"\ I Ie 1 n\ en1 C 1 n1 'RESOLUTION NO. 2006- RESOLUTION- OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AND ESTABLISHING CONDITIONS OF A TENTATNE MAP TO DNIDE INTEREST IN 14.58 ACRES AT 825 EAST PALOMAR STREET FOR A ONE-LOT CONDOMINIUM CONTAINING 336 RESIDENTIAL UNITS - LDM SUNBOW, LLC. I. RECITALS A. Project; Application for Discretionary Approval WHEREAS, a duly verified application for a Tentative Subdivision Map was filed on September 9, 2005, with the City of Chula Vista Planning and Building Department by the LDM Sunbow, LLC ("Applicant") requesting approval of a Tentative Subdivision Map Chula Vista Tract 06-02 in order to convert 336 apartment units into individually owned condominiums ("Project"); and B. Project Site WHEREAS, the area of land which is the subject matter of this Resolution is diagrammatically represented in Exhibit "A", copies of which are on file in the Office of the City Clerk, incorporated herein by reference, and commonly known as Chula Vista Tract No. 06-02, Tentative Subdivision Map, and for the purpose of general description herein consists of 14.58 acres located at 825 East Palomar Street ("Project Site"); and C. Prior Discretionary Approval and Recommendations WHEREAS, the development of the Project Site has received the following discretionary approvals and recommendations: 1) Sunbow Sectional Planning Area Plan; 2) Sunbow Tentative Map; and 3) Design Review for original project. D. Planning Commission Record of Applications WHEREAS, the Planning Commission held an advertised public hearing on the Project on May 10, 2006, and after hearing staffs presentation and public testimony voted 5-0-0 to recommend that the City Council approve the Project, in accordance with the fmdings and subject to the conditions listed below; and E. City Council Record of Applications WHEREAS, the City Clerk set the time and place for the public hearing on the Project's tentative subdivision map application; and notice of said hearing, together with its purpose, was given by its publication in a newspaper of general circulation in the City, its mailing to property owners within 500 feet of the exterior boundary of the project and its mailing to the current tenants residing at 825 East Palomar Street, at least 10 days prior to the hearing; and WHEREAS, the duly called and noticed public hearing on the Project was held before the City Council of the City of Chula Vista on June 13, 2006, in the Council Chambers in City Hall, Chula Vista Civic Center, 276 Fourth Avenue, at 6:00 p.m. to receive the 11-42 Resolution No. 2006- recommendations of the Planning Commission, and to hear public testimony with regard to the same. NOW THEREFORE BE IT RESOLVED that the City Council does hereby fmd, determine and resolve as follows: II. PLANNING COMMISSION RECORD The proceedings and all evidence introduced before the Planning Commission at their public hearing on the Project held on May 10, 2006, and the minutes and Resolution resulting there from, are hereby incorporated into the record of this proceeding. III. COMPLIANCE WITH CEQA The Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act and has determined that the proposed project qualifies for a Class 1 (Existing Facilities) categorical exemption pursuant to Section 15301 of the State CEQA Guidelines. Thus no further environmental review or documentation is necessary. IV. INDEPENDENT JUDGMENT OF CITY COUNCIL The City Council has exercised their independent review and judgment and concurs with the Environmental Review Coordinator's determination that the Project qualifies for a Class 1 (Existing Facilities) categorical exemption pursuant to Section 15301 of the State CEQA Guidelines. V. TENTATIVE SUBDIVISION MAP FINDINGS A. Pursuant to Government Code Section 66473.5 of the Subdivision Map Act, the City Council finds that the Tentative Subdivision Map, as conditioned herein for 825 East Palomar Street, is in conformance with the elements of the City's General Plan, based on the following: 1. Land Use It is the City's goal to accommodate diversified housing types. The site is designated Residential Medium High (11 - 18 dwelling units/acre) in the original plan and is located within the Sunbow II Section Planning Area (SPA), where it is designated Residential Condominium. Under the Sunbow II SPA, the project site was designated for 206 dwelling units, but through a SPA amendment (pCM 01-04) this amount was increased to 336 dwelling units and developed at a density of 23 dwelling units/acre. Density transfers are allowed with the SPA's planning areas; therefore, the Project, as conditioned, is in substantial compliance with the adopted General Plan and Sunbow II General Development Plan and Sectional Planning Area (SPA) Plan. 2. Circulation All off-site streets required to serve the subdivision currently exist. No street improvements are required. 11-43 2 Resolution No. 2006- 3. Housing The Project is consistent with the density prescribed within the Sunbow Villas II Sectional Planning Are~ (SPA) Plan (as amended by PCM-Ol-04) and provides attached condominium units for individual ownership. The conversion of 336 apartment units to 336 condominium units creates additional opportunities for residential ownership. 4. Open Space The Project includes adequate, existing on-site open space areas in the form of private open space for each unit (patio or balcony) as well as landscaped common open space areas and a 6,600 sq. ft. community clubhouse (including a meeting facility, a game room, a full kitchen), swimming pool, tot lot, fitness center, private theater with 20 seats, and business center for residents' use. 5. Safety The City Engineer, Fire and Police Departments have reviewed the proposed subdivision of existing apartments to condominiums for conformance with City safety policies and have determined that the proposal meets the City Standards for seismic safety and emergency services. B. The configuration, orientation and topography of the site allow for a feasible setting for passive or natural heating and cooling opportunities as required by Government Code Section 66473.1. C. The site is physically suited for residential development and the proposal conforms to all standards established by the City for such a project. D. The conditions herein imposed on the grant of permit or other entitlement herein contained is approximately proportional both in nature and extend to the impact created by the proposed development. VI. CONDOMINIUM CONVERSION FINDINGS Pursuant to Chapter 15.56, Conversion of Dwelling Units to Independent Ownership, the City Council finds that the project meets the following: A. Fire Protection: The City Council concurs with the Fire Marshall determination that the project as conditioned will be in substantial conformance with current fire protection standards. B. Uniform Building Code: City Council concurs with the Building Division of the Planning and Building Department's determination that the "Property Condition Assessment Report" dated March 18, 2005, prepared by LandAmerica Commercial Services, adequately addresses compliance with the Building Code if applicable applications are submitted and approved and the recommended improvements set forth in the report are constructed or put in place. 3 11-44 Resolution No. 2006- C. Storage: Section 15.56.020 requires minimum storage area for each unit. As directed by the Planning Commission, staff has included a condition of approval whereby units not providing 100 percent of the storage requirement shall change out the existing hot water heaters for tankless hot water units, thereby freeing up more of the exterior utility closet space for the required storage. D. Housing Code: The Project will be required to comply with housing inspection requirements. E. Protective Lighting Standards: This project went through Design Review in December 2000 as part of the original development application. All the original Design Review conditions regarding lighting were fulfilled to the satisfaction of the City, including conformance with Section 17.28.030 and 17.28.040 of the Municipal Code. F. Off-street parking: Per the Sunbow SPA parking requirements, I-BR units need 1.5 parking spaces, 2-BR units 2 parking spaces, and 3-BR units 2.5 parking spaces. The Project meets the Sunbow SPA parking requirement, providing a total 625 parking spaces, consisting of 184 parking stalls in the "tuck-under" parking garages, 170 carport stalls, and 271 open spaces. Twelve handicapped spaces are included in the total. G. Design Guidelines: It is determined that since this project went through Design Review in December 2000 as part of the original development application, no further Design Review is required. All the original Design Review conditions regarding site design, architecture, landscaping, fencing, lighting, and other design elements have been fulfilled to the satisfaction of the City, and therefore consistent with the Sunbow II design guidelines. H. Separate Service Meters: Each unit has individual electric and gas meters. A Homeowners Association will be responsible for the water and sewer service utility meters. The Applicant shall provide CC&Rs prior to final map approval showing how this will be satisfied. 1. Housing Department Compliance Survey: The Project has completed a housing inspection, and will be required to perform all corrections listed in the Apartment Inspection Report prior to final inspection of a Condominium unit. J. CC&Rs: The Project is conditioned to provide evidence of declarations of covenants, conditions and restrictions in conjunction with the Final Map. K. Open Space: CYMC Section 19.28.090 requires 480 square feet of common usable open space per 3-bedroom unit and 400 square feet per 2-bedroom or I-bedroom unit; therefore, the project must provide a minimum of 136,960 square feet of open space. This project provides 139,866 SF of open space, which is an excess of 2,900 SF. The existing open space includes private patios or balconies on all units, a 6,626 SF common open space comprising the club and leasing area, and approximately 108,250 SF of landscaped and usable open space area. 11-45 4 Resolution No. 2006- VII. COMPLIANCE WITH GOVERNMENT CODE SECTIONS 66451.3 AND 66452.5 Noticing Documentation Government Code Sections 66451.3 and 66452.5 requires notification of a tenant's right to a public hearing. The City of Chula Vista provided notices to tenants and surrounding property owners of all required public hearings for the Project, and the Applicant has satisfied the following noticing requirements at the time of submittal of the Tentative Map, which includes a 60-day "Notice ofIntent to Convert", and a "Notice to Prospective Tenants ofIntent to Convert". BE IT FURTHER RESOLVED that the City Council does hereby approve Tentative Subdivision Map, Chula Vista Tract No. 06-02 as represented in Exhibit "B.1 to B.3" subject to the general and special conditions set forth below. VIII. GENERAL CONDITIONS OF APPROVAL A. Project Site is Improved with Project The Applicant, or his/her successors in interest, shall improve the Project Site with the Project as described in the Tentative Subdivision Map, Chula Vista Tract No. 06-02, Missions at Sunbow, except as modified by this resolution. B. Implement Previously Adopted Conditions of Approval Pertinent to the Project IX. SPECIAL CONDITIONS OF APPROVAL A. The conditions herein imposed on the tentative map approval or other entitlement herein contained is approximately proportional both to nature and extent of impact created by the proposed development. Unless otherwise specified, all conditions and code requirements listed below and in Attachment E Property Condition Report as "immediate repair" items shall be fully completed by the applicant or successor-in-interest to the City's satisfaction prior to approval ofthe Final Map: GENERAL I PLANNING AND BUILDING 1. 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 Applicant as to any or all of the property. 2. Applicant and his/her successors in interest shall comply, remain in compliance and implement, the terms, conditions and provisions, as are applicable to the property which is the subject matter of this Tentative Subdivision Map. The Applicant shall enter into an agreement (Subdivision Improvement Agreement and Supplemental Subdivision Improvement Agreement) with the City, providing the City with such security (including recordation of covenants running with the land) and implementation procedures as the City may require compliance with the above regulatory documents. Said Agreement shall also ensure that, after approval of the final map, the Applicant and his/her successors in interest will continue to comply, remain in compliance, and implement such Plans. 3. Applicant shall coordinate with the City of Chu1a Vista Planning and Building and Community Development departments to schedule a meeting with the current tenants to 5 11-46 Resolution No. 2006- present alternative rental housing opportunities and assistance in relocation in conjunction with the presentation of the schedule for the phasing of the conversion of the apartments to condominiums. 4. The Applicant shall comply with all applicable noticing requirements set forth in Government Code Section 66427.1. Applicant shall submit evidence to the Director of Planning and Building that the following City of Chula Vista noticing forms have been delivered to the existing and prospective tenants per Section 66427.1 of the Subdivision Act or a schedule detailing required future notifications: a. IO-day notice to all existing tenants of an application of a Public Report - "Form C" (If submitted to State Department of Real Estate prior to Final Map approval). b. IO-day Notice to all existing tenants of Final Map approval- "Form D". c. Notice to all prospective tenants of option to purchase/termination of tenancy _ "Form E. d. 90-day Notice to all existing tenants of option to purchase/termination of tenancy _ "F orm F". e. 180-day notice to all existing tenants of intent to convert/termination of tenancy _ "F orm G". 5. Submit plans and information to the satisfaction of the Fire Marshall that proposed condominium units meet current California Fire Code, including but not limited to fire access, water supply, sprinkler systems, and fire alarms. 6. Any and all agreements that the Applicant is required to enter into hereunder shall be in a form approved by the City Attorney. 7. Applicant shall comply with the requirements of the City's approved "Recycling and Solid Waste Management Plan" to the satisfaction of the City's Conservation Coordinator. The plan shall demonstrate those steps the applicant will take to comply with Municipal Code, including but not limited to Sections 8.24 and 8.25, and meet the State mandate to reduce or divert at least 50 percent of the waste generated by all residential, commercial and industrial developments. The Applicant shall contract with the City's franchise hauler throughout the construction and occupancy phase of the project. The plan shall incorporate any trash enclosure re-design required for compliance with the City's NPDES permit. 8. Applicant shall provide all cabinet, shelving, and closet dimensions to prove that the storage meets all minimum dimensioning requirements. Units not providing 100 percent of the storage requirement shall change out the existing hot water heaters for tankless hot water units, thereby freeing up more of the exterior utility closet space for the required storage. Prior to approval of the Final Map, a revised floor plan for all units shall be submitted to staff showing the type, location, and total cubic feet provided for storage. 11 -47 6 Resolution No. 2006- The storage provided for each individual unit shall comply with Section 15.56.020 of the CYMC. DRAINAGEINPDES 9. All onsite drainage facilities shall be private. 10. The Developer shall comply with all of the applicable provisions of the Storm Water Management and Discharge Control Ordinance (Chapter 14.20 of the Chu1a Vista Municipal Code), the Development and Redevelopment Project Storm Water Management Standard Requirements Manual (approved by Council Resolution 2002- 475), and the City of Chula Vista SUSMP to the satisfaction of the City Engineer. (Engineering) 11. Prior to the approval of the Final Map for the Project, Applicant shall enter into an agreement with the City of Chula Vista, wherein the Applicant agrees to the following: a. Comply with the requirements of the Municipal Storm Water Permit (Order No. 2001-01) issued by the San Diego Regional Water Quality Control Board including revision of plans as necessary. b. Indemnify, and hold harmless the City, its elected and appointed officers and employees, from and against all fines, costs, and expenses arising out of non- compliance with the requirements of the NPDES regulations, in connection with the execution of any construction and/or grading work for the Project, whether the non-compliance results from any action by the Applicant, any agent or employee, subcontractors, or others. The applicant's indemnification shall include any and all costs, expenses, attorney's fees and liability incurred by the City. c. To not protest the fornation of a facilities benefit district or any other funding mechanism approved by the City to finance the operation, maintenance, inspection, and monitoring of NPDES facilities. This agreement to not protest shall not be deemed a waiver of the right to challenge the amount of any assessment, which may be imposed due to the addition of these improvements and shall not interfere with the right of any person to vote in a secret ballot election. 12. Applicant shall submit and obtain approval of a Water Quality Study and Technical Report including NPDES best management practices ("BMPs") to prevent discharge of pollutants from the project site entering the city's storm water conveyance system, to the satisfaction of the City Engineer. Any proposed changes that impact landscaped or open space areas must be reviewed and approved by the City's Landscape Planner. The WQTR shall address the following source control and treatment control measures: Homeowner Outreach, Lawn and Gardening Practices, Integrated Pest Management, Water Conservation, Hazardous Waste Management, Storm Drain Marking, Trash Management, Street Sweeping, and Runoff Pre-treatment BMPs. 7 11-48 Resolution No. 2006- 13. Intercept runoff from the project site and pre-treat said runoff prior to discharge to the city's storm water conveyance system. Identify proposed best management practices ("BMPs") to be used to treat storm water runoff from the site as part of the project's Water Quality Study and Technical Report. Said BMP facilities shall be inspected and approved by the City's Stormwater Inspector prior to Final Map approval. 14. Fully implement NPDES best management practices ("BMPs") contained in the Water Quality Study and Technical Report. 15. Fully implement NPDES best management practices ("BMPs") to reduce the amount of pollutants entering the city's storm water conveyance system, including but not limited to: a. The erection of signs near storm drain inlets and public access point along channels and creeks; installation of efficient irrigation systems and landscape design; employment of integrated pest management principles; and the creation and implementation of inspection and maintenance programs for structural treatment control BMPs and private sewer lines. b. Providing storm drain system stenciling and signage; more specifically: 1. Provide and maintain stenciling or labeling near all storm drain inlets and catch basins. 11. Post and maintain City-approved signs with language and/or graphical icons that prohibit illegal dumping at public access points along channels and creeks. 111. Such Applicant obligation shall be reassigned to a Master Homeowner's Association or other appropriate long-term maintenance agreement subject to the approval of the City Engineer. c. Installing and using efficient irrigation systems and landscape design; more specifically: 1. Employ rain shutoff devices to prevent irrigation after precipitation. 11. Adjust irrigation systems to each landscape area's specific water requirements. iii. Using flow reducers or shutoff valves triggered by a pressure drop to control water loss in the event of broken sprinkler heads or lines. IV. Employing other comparable, equally effective, methods to reduce irrigation water runoff. d. Employing integrated pest management principles. More specifically, eliminate and/or reduce the need for pesticide use by implementing Integrated Pest Management (IPM), including: (1) planting pest-resistant or well-adapted plant varieties such as native plants; (2) discouraging pests in the landscaping design; 11-49 8 Resolution No. 2006- (3) distributing IPM educational materials to homeowners/residents. Minimally, educational materials must address the following topics: keeping pests out of buildings and landscaping using barriers, screens, and caulking; physical pest elimination techniques, such as, weeding, squashing, trapping, washing, or pruning out pests; relying on natural enemies to eat pests; and, proper use of pesticides as a last line of defense. e. Educate the Public. More specifically, the Homeowners Association, through Property Management, etc., shall inform residents about the City's non-storm water and pollutant discharge prohibitions. This goal can be achieved by distributing informative brochures (some available free from the City of Chula Vista) to new home buyers and dedicating sections of newsletters to storm water quality issues, as applicable. SEWER 16. The onsite sewer system shall be private. All sewer laterals shall be privately maintained from each building and/or condominium unit to the City maintained public sewer main within Medical Center Court. 17. The Developer/Owner shall establish a homeowners association to fund and oversee a contract for the maintenance of the onsite private sewer system. The frequency of maintenance of the sewer system shall be contained in the provisions of the Covenants, Conditions & Restrictions (CC&Rs). The City Engineer and Director of Public Works shall approve the provisions of the CC&Rs regarding the onsite private sewer system STREETS 18. Streets and driveways within the development shall be private. 19. Prior to the Final Map, the Developer/Owner shall secure and replace all driveways and pedestrian ramps within the right of way adjacent to the project to conform with the Americans with Disability Act. Any work determined to be required shall be done under a Chula Vista construction permit using Chula Vista Construction Standard CVCS-IA for driveways. Driveway replacement shall be guaranteed prior to recordation of the Final Map. In addition Developer shall replace an existing pedestrian ramp on Medical Center Court per Chula Vista Standards Drawings 25-28. CC&RS 20. Submit Covenants, Conditions, and Restrictions ("CC&Rs") as approved by the City Attorney to the City Engineer and Director of Planning and Building for approval prior to approval of the first Final Map. Said CC&Rs shall include the following: a. The creation of a Homeowner's Association ("HOA"), which shall, among other things, be responsible for maintaining all common facilities within the Project 9 11-50 Resolution No. 2006- including, but not limited to: walls, fences, water fountains, lightning structures, fire sprinklers and alarm systems, paths, trails, access roads, drainage structures, water treatment facilities, recreational amenities and structures, landscaping, trees, streets, parking lots, driveways, and private sewage and storm drain systems. b. Language stating that the landscaping shall be maintained by the ROA in a healthy and thriving condition at all times. c. A listing of all private facilities. d. Language that indemnifies and holds harmless the City from any claims, demands, causes of action liability or loss, including claims arising from the maintenance activities of the ROA, including but not limited to private sewer spillage. e. The City's right but not the obligation to enforce CC&Rs. f. An insurance provision requiring the ROA to maintain a policy of comprehensive general liability insurance written on a per-occurrence basis in an amount not less than one million dollars ($1,000,000) combined single limit. The policy shall be acceptable to the City and name the City as additional insured. g. The City must approve any revisions to provisions of the CC&Rs that may particularly affect the City. Furthermore, the ROA shall not seek approval from the City of said revisions without the prior consent of one-hundred percent (100%) of the holders of first mortgages and one-hundred percent (100%) of the property owners - unless the Director of Planning and Building waives this requirement. h. The ROA shall not seek to be released by the City of any maintenance obligations without the prior consent of the City and one-hundred percent (100%) of the holders of first mortgages and one-hundred percent (100%) of the property owners - unless the Director of Planning and Building waives this requirement. 1. Implement an education and enforcement program to prevent the discharge of pollutants from all on-site sources into the storm water conveyance system. J. The ROA shall maintain, in perpetuity, membership in an advance notice service/system such as the USA Dig Alert Service and shall cause any private facilities of the property owners or HOA to be marked out whenever work is performed in the area. k. The CC&Rs shall include NPDES prOVISIOns for the perpetual and routine maintenance of structural HMPs, private sewer and storm drain facilities for the purpose of preventing and in such a manner as to prevent the discharge of non-storm water pollutants to the public storm water conveyance system. The CC&Rs shall include the requirement to maintain records for the past 10 years of BMP implementation, inspections, and maintenance activities. 11-51 10 Resolution No. 2006- 1. The HOA shall fund and oversee a contract for the inspection and maintenance of the onsite private sewer system. The frequency of maintenance of the sewer system shall be contained in the provisions of the Codes, Covenants and Restrictions, which shall be subject to the approval of the City Engineer and the Director of Public Works. m. Trash and Recycling program requirements shall be incorporated into the project CC&Rs to the satisfaction of the City's Conservation Coordinator. n. Said CC&Rs shall be consistent with Chapter 18.44 of the Subdivision Ordinance, and shall be recorded concurrently with the final map. o. Fire service lateral and water supply to buildings, including the on-site fire hydrant, must be maintained and operational at all times to the satisfaction of the Fire Marsha11. p. Include detailed text and map graphics in the CC&Rs to inform potential condominium owners that the Sharp Hospital site, located north of the project, is master planned to have additional structures that will be constructed in the future. 21. Submit a Homeowners Association budget for review and approval by the City Engineer for the maintenance of private streets and drives, storm drains, sewage systems, electrical system, plumbing, and roof. More specifically, said budget shall include the following provisions and maintenance activities: a. Streets must be sealed every 7 years and overlaid every 20 years b. Sewers must be cleaned once a year with the contingency for emergencies c. Red curbs/striping must be painted once every three years. d. The Homeowners Association shall be responsible for service utilities including water and sewer, and the billing and payment of these utility costs. e. Storm Water quality facilities inspected prior to and after every rain event and cleaned as necessary (twice a year minimum); media inserts replaced as recommended by the manufacturer; with a contingency for emergencies. The budget shall also include a monitoring program including sampling and preparation of an annual report, when required by the City. f. Establishment of a capital fund that will adequately cover the expected costs associated with repairing or replacing the Project/complex's electrical system, plumbing system, and roof. EASEMENTS 22. All existing easements and irrevocable offers of dedication shall be shown on the Final Map. A title report dated within 60 days of submittal of the Final Map shall be submitted together with backing documents for all existing public utility easements and offers of dedication. Developer shall submit evidence of noticing to all existing public utility 11 11-52 Resolution No. 2006- easement holders within the project boundaries as required by the Section 66436 of the Subdivision Map Act. AGREEMENTS 23. Applicant shall enter into an agreement wherein the Applicant agrees to: a. 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 pursuant to Section 66499.37 of the State Map Act 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. b. Hold the City harmless from any liability for erosion, siltation or increased flow of drainage resulting from this project and spillage of sewage generated by the project onto adjacent public or private streets or into offsite storm water conveyance systems. c. Maintain storm water quality treatment measures in accordance with an approved maintenance and inspection plan. d. Implement and sustain in perpetuity, a source control storm water quality management program as outlined in the Water Quality Technical Report. MISCELLANEOUS 24. Payoff any unpaid balance for the 825 East Palomar Tentative Map Deposit account DQ1252 and Project account CA314 25. Pay all costs associated with apportionment of assessments for all City assessment districts as a result of subdivision of lands within the boundary prior to approval of each Final Map. Submit an apportionment form and provide a deposit as determined by and to the City to cover costs. (Engineering) 26. Developer shall tie the boundary of the subdivision to the California System-Zone VI (NAD '83). Developer shall submit copies of the Final Map in a digital format, such as (DXF) graphic file, prior to approval of the Final Map. Provide computer aided Design (CAD) copy of the Final Map based on accurate coordinate geometry calculations and submit the information in accordance with the City Guidelines for Digital Submittal in duplicate prior to the approval of the Final Map. 27. Applicant shall submit a conformed copy of a recorded tax certificate covering the property prior to approval of the Final Map. B. The following Conditions of Approval shall be satisfied pnor to sale of the first condominium unit unless otherwise noted: 11-53 12 Resolution No. 2006- 1. For any condominium unit in a structure containing multiple condominium units, correct any deficiencies listed in Attachment E, Property Condition Report as needing "immediate repair,"and correct any violations identified by the Housing Inspection, to the satisfaction of the Director of Planning and Building. 2. For any condominium unit in a structure containing multiple condominium units, provide in that structure type 2A-10BC fire extinguishers every 75 feet of travel distance, and smoke detectors for each unit, to the satisfaction of the Chula Vista Fire Department. 3. All lighting shall meet the protective current lighting standards of the current Uniform Building Code. 4. So as to ensure compliance with Section 17.24.40 and 17.24.050 of the Chula Vista Municipal Code, Applicant shall show that walls and ceilings meeting the current Uniform Building Code standards regarding fire and sound attenuation have been maintained between airspaces of the condominium units, to the satisfaction of the City Building Official and Director of Planning and Building. If said walls and ceiling do not meet said standards, then the walls and ceiling shall be modified to conform to the Uniform Building Code. 5. Anyon-site sales or ieasing office shall obtain a Conditional Use Permit. 6. Submit evidence satisfactory to the Director of Planning and Building that the Applicant has complied with the approved homebuyer assistance program requirements for existing residents who choose to purchase their condominium units, per the Applicant's letter dated February 24, 2006 (Attachment D.) X. CONSEQUENCE OF FAILURE OF CONDITIONS If any of the foregoing conditions 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, deny, or further condition issuance of all future building permits, deny, revoke, or further condition all certificates of occupancy issued under the authority of 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 ten (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 within a reasonable and diligent time frame. XI. INVALIDITY; AUTOMATIC REVOCATION It is the intention of the City Council that its adoption of this Resolution is dependent upon the enforceability of each and every term, provision and condition herein stated; and that in the event that anyone or more terms, provision, or conditions are determined by a Court of competent jurisdiction to be invalid, illegal or unenforceable, this resolution shall be deemed to be automatically revoked and of no further force and effect ab initio. 13 11-54 Resolution No. 2006- Presented by: Approved as to form by: Jim Sandoval Director of Planning & Building '--!y~(2 ~~ Ann Moore City Attorney J:\Planning\Case Files\-05 (FY 04-05)\PCS-06-02 - 825 East Palomar/Resolutions\PCS_06-02_CC_RESO.doc 11-55 14 COUNCIL AGENDA STATEMENT Item j ;L, Meeting Date 6/13/06 ITEM TITLE: Resolution Approving the Public Works Operations Department's Strategic Business Plan Resolution Amending the FY 06 budget by appropriating $96,600 from the available balance ofthe Public Facilities DIF to purchase equipment SUBMITTED BY: Director of Public Works Operationso1--- City Manager i ~ pI? (4/5 Vote: Yes-X- No-> REVIEWED BY: During the past several months, the Public Works Operations Department has developed its Strate~c Business Plan. Throughout this process, Public Works Operations has identified several issues that will be affecting the department within the next five years, established goals to address those issues pro actively, and developed performance measures to track the progress in achieving those goals. The purpose of the Public Works Operations Department is to maintain the basic infrastructure needed for the City to exist and thrive. These basic facilities include streets, curbs, gutters, sidewalks, wastewater and stormwater systems, City trees, and parks & open space areas. The department currently utilizes a Work Management System, which is an automated system used for collecting and tracking data about the work that an agency performs, to maintain the City's infrastructure. BOARD/COMMISSION RECOMMENDATION: N/ A RECOMMENDATION: That Council: 1) Adopt the Resolution approving the Public Works Operations Department Strategic Business Plan and Operating Plan 2) Adopt the Resolution amending the the FY 06 budget by appropriating $96,600 from the available balance of the Public Facilities DIF to purchase equipment DISCUSSION: Attached is the Public Works Operations Business Plan, which was developed over a period of several months. The document identified Public Works Operations' mission, lines of business, and programs and services. 12-1 Page 2, Item 1[1", Meeting Date 6/13/06 The mission of the Public Works Operations Department is to provide and manage the City's infrastructure, parks, and open space through high quality operations, maintenance and construction in order to optimize mobility, public and environmental health, and safety. The development ofthe Strategic Business Plan put renewed focus on achieving results for our customers both externally and internally. How the Strateeic Business Plan was Developed. Operational Business Plans were developed in a facilitative process using Weidner Consulting Inc.' s methodology. Weidner's managing for results model is consistent with and complementary to the City's existing performance management framework. Retreats were conduced over several weeks, beginning first with the "Assessment of the Future" Workshops. Most employees participated in one or more half-day workshops to develop the Assessment of the Future, comprised of critical issues and trends on the horizon which, if they continue unabated, will have a significant impact on the community of Chula Vista. The workshops were followed by a three-day initial retreat, at which time the strategic portion ofthe plan was developed, based upon and informed by the Assessment of the Future, and designed to position the Public Works Operations Department to respond pro actively to the future. A few weeks later, most employees again returned to provide critical perspective and input, this time participating in Purpose Statement and Performance Measure (PSPM) Sessions to develop the operational portion of the plan, incorporating every key business function, every service delivered and every program in the Department. At each program's PSPM Session, employees developed a concise and compelling statement of purpose that described the results that customers can expect to see delivered. Then, the same employees developed a small, manageable set of clear, understandable performance measures to which they intend to hold themselves mutually accountable. This enabled those who do the work to share a common understanding of the purpose of their work and to mutually agree upon a definition of "success". After a department level review of purpose statements and performance measures, the planning team again reconvened for a two-day final retreat to complete the plan and to confirm commitment to the results articulated throughout the plan. Elements of the "Strateeic Portion" of the Overational Business Plan. Critical Issues. The Strategic Business Plan identified five critical issues that will have a major impact on the Public Works Operations Department and its customers over the next five years. These critical issues have been summarized into "issue statements" as described below: 12-2 "": Page 3, Item / 0-- Meeting Date 6/13/06 1. Aging Infrastructure. The city's aging infrastructure (roads, gutters, sidewalks, curbs, park facilities, sewers, storm drains, and bridges) continues to deteriorate, thereby requiring more costly replacement, repair, and maintenance; and requiring a disproportionate share of department resources. Not replacing or repairing corrugated metal pipe (CMP) storm drains in a timely manner is a significant concern that will increase the need to perform more costly repairs on an emergency basis. 2. Rapid Growth of the City. The rapid growth of the city has created new infrastructure ($30MM/yr over the past seven years) that requires immediate and ongoing maintenance in order to: o minimize future maintenance, repair, and replacement costs o ensure the health and safety of the public, and o keep the community attractive and livable. Increased litter due to the city's growth has placed additional workload demands on staff and reduces the amount of staff time available for regular maintenance of streets and parks. The city's rapid growth and the transit oriented communities being developed has created the need for transit resources and other alternative transportation modes for residents and visitors in order to prevent significant traffic congestion in the future. 3. Environmental Regulations. The need to comply with complicated and sometimes competing unfunded environmental regulations and mandates has resulted in an increase in costs and competition for the resources needed to obtain the minimum level of flood and fire protection. 4. Graffiti. The negative image and environment created by the proliferation of graffiti in the city is adverse to residents, businesses, and visitors: o Creating a negative visual image of the city, o Decreasing interest in residing and investing in the city, and o Decreasing community pride and livability. 5. Advances and use of Technology. Because resources are limited to meet increasing demands, the Department must be open and ready to best use appropriate technologies in order to be more efficient and effective in deploying departmental staff and equipment. Strate2:ic Objectives. Strategic objectives are a description in measurable terms of the significant, must-do results that Public Works Operations must accomplish over the next five years in order to proactively respond to the critical issues. These "strategic objectives" are described as follows: 12-3 Page 4, Item ,~ Meeting Date 6/13/06 1. Aging Infrastructure. By FY 10, 90 % of potholes on high-speed roads (four lanes and larger) will be repaired within two days of notification and the department will maintain the current backlog for the pothole repair of all other streets at four weeks. Improved coordination among General Services, Engineering, and Public Works Operations and implementation of the Pavement Management System's recommended maintenance strategies will result in a decreased need for pothole repair and patching by FY 11. 2. Growth and Infrastructure. By FY 07, to improve public safety on higher volume and higher speed roads, 100% of those streets will be re-striped semi-annually. By FY 10, 90% of litter in the right of way will be removed within three days of service requests through the use of a dedicated departmental crew for litter pickup. Large items (sofas, chairs, appliances, etc.) will be picked up the same day. The Strategic Plan originally identified that this objective be implemented in FY07. However, due to funding concerns, implementation has been delayed until FYi 0, as indicated. 3. Environmental Regulations. By FY 09, the Department will obtain the necessary permits to maintain eight priority detention basins and one critical channel segment in order to reduce flooding potential. By FY 11, the Department will report to Council the long-term cost of providing flood control maintenance within environmentally sensitive and other regulated areas. In order to comply with new fire and environmental regulations for open space areas and provide proper fire clearance, the Department, in conjunction with Engineering and Fire, will submit a request for funding to the applicable voters by FY 08. 4. Graffiti. By FY 07, the Department will use routing software to ensure that all graffiti is removed within 48 hours of notification. 5. Technology. By FY 08, A VL (Automatic Vehicle Locator) equipment will be installed in 60% of identified departmental vehicles and an additional 40% by FYI O. By FY 08, the Department will seek dedicated elP funding for current technology replacement and the purchase of new technology. By FY 08, the Department will seek elP funding to augment existing funding arrangements for the purchase and installation of additional central irrigation control systems and associated weather stations. 12-4 1/1 Page 5, Item i v-z, Meeting Date 6/i3706 Lines of Business. Public Works Operations consists of the following "lines of business": Infrastructure Maintenance, Inspection Services, Parks & Open Space, Fleet Management, Administration, and Transit, which all work together to deliver services to the public. Each line of business contains key result measures, (see Strategic Plan attached) by which each manager can continuously monitor progress toward the "vital few" critical results, and prompt appropriate operational decision-making accordingly. The Infrastructure Maintenance Division provides maintenance of public streets, sidewalks, City trees, and wastewater & stormwater systems. Inspection Services is charged with providing efficient and cost-effective construction contract and permit administrative services. The Parks and Open Space Division maintains over 400 acres of immaculately maintained parks for all to enjoy and over 1,500 aces of open space. Fleet Management is responsible for keeping City police cars, fire apparatus, maintenance equipment and other city-owned cars and trucks in good working condition. Administration provides business management services to all Operations' divisions including clerical and technical support. The Transit Division provides public transit services for the residents and visitors of the City of Chula Vista. The Strategic Business Plan, which was developed over a period of several months, also identified staff s need to add ah Infrastructure Maintenance Manager (IMM) to ensure that several key issue statements and objectives developed in the operating plan are overseen and met. The IMM would oversee the work of the sewer, storm drain, street, urban forestry, signs and striping, and graffiti work functions, and administer the street sweeping contract. The IMM position would ensure that the current workload demands for these work functions are addressed more efficiently and effectively in accordance with the Strategic Business Plan. The Strategic Plan originally identified that the Infrastructure Maintenance Manager be added in FY07. However, due to funding concerns, this position will be requested during the two-year budget process for FY08 and FY09. The IMM would provide support to the new Assistant Director in personnel issues and updating policies and procedures needed for the Infrastructure Maintenance division. This position would also work to get required permits from the Army Corps of Engineers, Department of Fish and Game, Regional Water Quality Control Board, and the Department of Fish and Wildlife for maintenance work in waters of the State. Furthermore, the IMM would conduct research to assure that City crews are maintaining facilities only where the City has easements or right-of-ways. In the past, the City has completed maintenance in areas whereby easements did not exist. Development of the Strategic Business Plan also identified staff s need to complete more vital "street reconstruction" repairs. Due to continued growth of the city, street maintenance crews repair only 1 % of the city's pavement inventory annually. The city currently has approximately 375 miles of streets (950 lane miles) to maintain. 12-5 J~ Page 6, Item ">. Meeting Date 6/13706 Street Maintenance Tasks. The purpose of the Street Maintenance program is to provide asphalt and concrete structure (streets, sidewalks, curbs and gutters) maintenance, and litter removal and trash abatement services to the public so they can have a safe, clean, and functional right-of-ways. Currently, the City's street maintenance is delivered through two principal methods: Capital Improvement Projects (CIP) and in-house staff. These two principal methods are employed as a result of the nature of the street maintenance work that can be classified in terms of being proactive or reactive. Proactive street maintenance is characterized by activities undertaken to prolong the life of the streets. Generally, proactive street maintenance work is of a larger scale and is accomplished through CIPs and construction contracts by General Services. Examples of proactive street maintenance activities include the following: · Surface Treatments: Accomplished through crack sealing, chip or slurry seals, is a preventive maintenance process which seals cracks in the pavement to prevent moisture from entering the pavement and which preserves the surface of the roads. Sealing should be done every 5-7 years to prolong the life of a street to 15 years or longer depending on usage and the timing of the application. · Resurfacing or Pavement Overlav: The process of applying one or more inch layers of asphalt on the street usually after 10 -12 years of use. This process can extend the life of a street by 10 years. · Street Reconstruction: The result of major surface wear, alligator cracking, oxidation, crumbling asphalt, and small potholes. It is due to surface and subsurface deterioration of major sections of the roadway. A total reconstruction of surface and sub-grade of the street is required. On the other hand, street repairs that are undertaken as a matter of urgency for safety reasons, or as part of the City's daily operations because they are too small to outsource, are considered reactive street maintenance activities. The Street Maintenance Section of the Public Works Operations Department is responsible for performing this portion ofthe City's street maintenance. Examples of the street maintenance service includes performance of the following tasks: · Pothole Reoair: A pot-shape hole in a road surface that occurs when asphalt has displaced from the sub-grade. · Minor Street Reconstruction: The result of minor surface cracking and oxidation due to the lack of preventative maintenance. Process involves removing deteriorated asphalt, re- compacting surface, and placing new asphalt. 12-6 Page 7, Item 1;Z Meeting Date 6/13/06 . Major Street Reconstruction: The result of major surface wear, alligator cracking, oxidation, crumbling asphalt, and small potholes. It is due to surface and subsurface deterioration of major sections of the roadway. A total reconstruction of surface and sub-grade of the street is required. (Crews typically complete jobs less than 550 squarefeet.) . Curb Line A C repairs: Work generated by Wastewater Section. Repair of a street section directly in front of curb line that was removed while installing or repairing a sewer lateral. . Lateral cut resurfacing: Work generated by Wastewater Section. Replace pavement that was removed for a sewer lateral installation or repair. . Skin oatching/caooing. (Skin Patching) Hand overlay on minor deficiencies of existing pavement; (capping) final capping on asphalt base of reconstruction areas. The Street Maintenance Section has two five-person construction crews that are assigned to do minor and major street reconstruction repairs. There are four major steps associated with street reconstruction: . Saw cutting of the asphalt using a self-propelled saw. . Chunking, loading, and hauling; . Sub-grade preparation; and . Placing and compacting hot asphalt mix. Typically, a repair is made in two move-ins. First, the crews will pre saw cut the area that is going to be repaired. A crew can cut 40' to 50' linear feet of asphalt per hour 4" to 5" inches deep (if the asphalt is thicker than 6 inches, the crew has to make a double cut, thus doubling the time). Next, a 2' x 10' section of the asphalt is removed in order to give the excavator an edge to begin chunking. The crew uses ajack hammer for this dig out portion and then temporarily back fills it with cold-mix asphalt. The saw-cutting and removal of asphalt is normally scheduled a week or two before the second move-in. The second move-in consists of the removal of existing asphalt by chunking with an excavator, loading the asphalt and debris on trucks, and hauling offsite. These tasks are very time consuming, as it takes approximately 4 to 5 hours to complete. In addition, since staffs goal is to complete repairs by the end ofthe work day, crews often need to double handle the material. lfthe work site is north of"L" Street, materials are hauled to the "H" Street temporary stockpile site, stockpiled, and then hauled to the recycle plant on another day. Normally, a crew is able to remove and compact 550 square feet of asphalt in one work day. However, by utilizing an Asphalt Zipper, one existing crew will be able to remove and compact an additional 550 square of asphalt in one work day, thereby doubling their street reconstruction 12-7 Page 8, Item )dJ Meeting Date 6/13706 production. An on-site demonstration of an Asphalt Zipper was conducted on February 10,2006, in the west bound #2 lane of Palomar Street, west of Broadway Avenue. At the site, the Asphalt Zipper pulverized 3,180 square feet of existing asphalt in only 45 minutes (12 ft. x 265 ft. & 10 inches thick). In comparison, without the Asphalt Zipper, it would have taken a crew one week to saw cut and chuck this same area. Furthermore, a crew was able to complete this reconstruction job in a 14- hour period. In comparison, without the Asphalt Zipper, it would have taken a crew three weeks to complete this size job. The pul verized asphalt from the Asphalt Zipper could be reused on-site for base or backfill material rather than hauled away. The environmental benefits of reusing a portion of the material on-site should reduce the number of trips needed to haul materials to the recycler, paying money to have it recycled, and hauling new base or backfill to the site. This equipment also allows new asphalt to bond more strongly to existing pavement. The stronger bond allows for better waterproofing, thus preventing moisture to penetrate sub-base soils and materials. By utilizing the Asphalt Zipper, the section plans to complete more street reconstruction jobs covering larger areas. The equipment is easily operated and costs $96,600 (a one-time expense) and will be funded by the DIF. FISCAL IMPACT: Staff recommends that the City Council accept the Public Works Operations Department's Strategic Business Plan. Staff is also recommending the addition of an Asphalt Zipper. The total initially cost for implementation ofthe Strategic Business Plan is $96,600 for the purchase of an Asphalt Zipper. There is no direct fiscal impact from approving this resolution in that funds expended for subsequent fiscal years will have been approved through the normal budget or appropriation process. Attachment: Public Works Operations Strategic Business Plan C:\Documents and Settings\robettb\My Documents\Bob\A113 PWOPS Strategic Planb.doc 12-8 ~~~. ~ ~~~~ CllY OF CHUlA VISTA Public Works Operations Department Strategic Business Plan January 10, 2006 The miSSion of the Public Works Operations Department is to provide and manage the City's infrastructure, parks, and open space through high quality operations, maintenance and construction in order to optimize mobility, public and environmental health, and safety. 12-9 ISSUE STATEMENTS lIsml1 ~~ :~\'"iiiVn The city's aging infrastructure (roads, gutters, sidewalks, curbs, park facilities, sewers, storm drains, and bridges) continues to deteriorate, thereby requiring more costly replacement, repair, and maintenance; and requiring a disproportionate share of department resources. Not replacing or repairing corrugated metal pipe (CMP) storm drains in a timely manner is a significant concern that will increase the need to perform more costly repairs on an emergency basis. [~f~sq~Ls{1ijt~~Jii~j[~jl~aii'."""7 The rapid growth of the city has created new infrastructure ($30MM/yr over the past seven years) that requires immediate and ongoing maintenance in order to: o minimize future maintenance, repair, and replacement costs o ensure the health and safety of the public, and o keep the community attractive and livable. Increased litter due to the city's growth has placed additional workload demands on staff and reduces the amount of staff time available for regular maintenance of streets and parks. The city's rapid growth and the transit oriented communities being developed has created the need for transit resources and other alternative transportation modes for residents and visitors in order to prevent significant traffic congestion in the future. Hi~i~r${if~m~il!ID111ilta~1,!Y~ig,,1ite1tf4[:<<ig1#1! The need to comply with complicated and sometimes competing unfunded environmental regulations and mandates has resulted in an increase in costs and competition for the resources needed to obtain the minimum level of flood and fire protection. lI.ssiiiiSliIilil~ji~lEQ,q~li1t1X;i(lm The negative image and environment created by the proliferation of graffiti in the city is adverse to residents, businesses, and visitors: o Creating a negative visual image of the city, o Decreasing interest in residing and investing in the city, and o Decreasing community pride and livability. ~' Because resources are limited to meet increasing demands, the Department must be open and ready to best use appropriate technologies in order to be more efficient and effective in deploying departmental staff and equipment. Strategic Business Plan 2 12-10 STRATEGIC OBJECTIVES ~!;()!i.ie(tiy~Qi~J.rgfigyTn1ias.:tril(m~.iIII_~~.~_111 By FY 10, 90 % of potholes on high speed roads (four lanes and larger) will be repaired within two days of notification and the department will maintain the current backlog for the pothole repair of all other streets at four weeks. Improved coordination among General Services, Engineering, and Public Works Operations and implementation of the Pavement Management System's recommended maintenance strategies will result in a decreased need for pothole repair and patching by FY 11. ~XQtii@i~J:~d1~i~:~Vi~iHtilfdl~1ri$tt~~tufe!~i'.~i'~Blii~~i~II~~ll~.Ui\iI,W#tjl~~ By FY 07, to improve public safety on higher volume and higher speed roads, 100 % of those streets will be re-striped semi-annually. By FY 10, 90% of litter in the right of ways will be removed within 3 days of service requests through the use of a dedicated departmental crew for litter pickup. Large items (sofas, chairs, appliances, etc.) will be picked up the same day. By FY 09, the Department will obtain the necessary permits to maintain 8 priority detention basins and one critical channel segment in order to reduce flooding potential. By FY11, the Department will report to Council the long term cost of providing flood control maintenance within environmentally sensitive and other regulated areas. In order to comply with new fire and environmental regulations for open space areas and provide proper fire clearance, the Department, in conjunction with Engineering and Fire, will submit a request for funding to the applicable voters by FY 08. ~~Qbl~c!iye;IEQurJtif~~m'. By FY 07, the Department will use routing software to ensure that all graffiti is removed within 48 hours of notification. By FY 08, A VL (Automatic Vehicle Locator) equipment will be installed in 60% of identified departmental vehicles and an additional 40% by FYI O. Strategic Business Plan 3 12-11 STRATEGIC OBJECTIVES By FY 08, the Department will seek dedicated CIP funding for current technology replacement and the purchase of new technology. By FY 08, the Department will seek CIF funding to augment existing funding arrangements for the purchase and installation of additional central irrigation control systems and associated weather stations. Strategic Business Plan 4 12-12 '.'...... -.;t..,>~,,,,....,.f,^. "'e......'B.... ""'..,,,..'.,c'tJhi'.',',e....in :?.l.IIOeO.l.'USlneSS v n Purpose Statement Key Outcomes I..... t+'"',I,>i,'';';,.iF''e....'.B. ""j'f.."...,,,,,,,;,,#,,,,i;;',;..~.... ......'.ii,.'t(~,'" :{.i:.Jlneo., usuiess~IW' Purpose Statement Key Outcomes ""T'''''''''';''-,,'f'!;'eB''' ",,'j''''''''''''~'''~;'~'mb.'''''<> !lblneO.li USlness,(U t Purpose Statement Key Outcomes r~Eiii-e1'ijf,Busrfi~~S:3.:Ftitt. Purpose Statement Key Outcomes Strategic Business Plan .m. "'"""t"!""~'I'"'';'''''''',i'",:,,,,u....;t;;;..''''''''' :c"ee/.J.Y.6.ahaemen The purpose of the Fleet Management Line of Business is to provide vehicles and equipment to city departments so they will have properly functioning vehicles that are up to date and s ecific to their missions. . 85% of preventive maintenance completed as scheduled . $1.5 million of vehicles replaced annuall ;'dh~t The purpose of the Transit Line of Business is to provide public transportation services to residents and visitors so they can receive safe, convenient, and de endable trans ortation. . 95% of bus stop departures from time points (specific bus stops alan a route) are within 0 to 5 minutes 'dtftlfti/r,'mfl"2f1l The purpose of the Parks and Open Space Line of Business is to provide inspection, maintenance and management services to the public so they can enjoy clean and safe open space and recreational environments. . 90% of areas within assessment districts, open space districts, and community facility districts are inspected . 90% of parks cleaned and maintained as per the following schedule: a. Restrooms cleaned twice a day 7 days a week b. Litter/trash pickup 7 days a week c. Turf maintained weekly (mowed, weeded, edged, etc.) d. Playground equipment inspected weekly and repaired as needed /fit' '"fi'SttilttiJt~Ml1iii The purpose of the Infrastructure Maintenance Line of Business is to provide maintenance services to the public so they can receive the benefits of safe, clean and dependable public streets, sidewalks, City trees, wastewater and stormwater s stems. . 100% of linear feet of sewers cleaned . 50% of all potholes repaired within 20 working days of service request . 100% of critical inlets inspected and cleared prior to and during rain events . 25% of woody trees trimmed and 100% of palms trimmed (under program jurisdiction) . 100% of streets re-striped per schedule 5 12-13 ;...T"....j"'j~i'.'iV!;.if,B....;.;c;'M..;.O';~.,;;"..'.;".;~...;;;.y;'.p l::blnt'O.l:' . USlneSS.'.rIV Purpose Statement Key Outcomes ~~itt~~f}fJB3ti;~S;i!:S Purpose Statement Ke Outcomes Strategic Business Plan '1i$''0~'tN1JllW. .. ce The purpose of the Inspection Services Line of Business is to provide inspection, enforcement, education, contract and permit administration services to the developers and City departments so they can comply with City construction standards and stormwater regulations, so the public receives the benefits of cleaner water and durable and safe public infrastructure. · 100% of public facilities constructed are inspected and meet city standards · 100% of reported safety concerns are addressed within same day -ff~:;-~~<~~iH'.':i"4~);J:;?;G~:..i:.-t_,W umllflsfiii The purpose of the Administration Line of Business is to provide personnel and infrastructure management support services to employees and the public so that employees can successfully complete their work and the public can benefit from De artment mana ed amenities and services. · 90% of park reservation customers "satisfied with services" 6 12-14 line of Business Fleet Management Line of Business Purpose Statement The purpose of the Fleet Management Line of Business is to provide vehicles and equipment to city departments so they will have properly functioning vehicles that are up to date and specific to their miSSIons. Program Purpose Statement The purpose of the Fleet Maintenance Program is to provide vehicles and equipment maintenance services to ci departments so the can accom Iish their 'obs. Famil of Measures: Outcome Measures . 85% of preventive maintenance completed as scheduled . 75% of vehicles/equipment repaired and returned to service within one business da Output Measures . 1,080 preventive maintenance inspections scheduled . 1,956 repairs made to vehicles . 576 repairs made to small equipment Demand Measures . 553 total vehicles in the fleet anticipated . 132 total pieces of equipment anticipated to be serviced (non road use) Efficiency Measures . $3,372 average cost per vehicle maintained . $1,219 average cost per piece of equipment maintained non road use Services . Vehicles (police cars, fire trucks, heavy duty trucks, utility trucks, crew trucks, pickup trucks, passenger cars and vans, utility carts, etc) o Preventive Maintenance (oil changes, belt replacement, battery checks, etc.) o Repairs . Equipment (lawn mowers, trenchers, backhoes, pump motors etc) o Preventive Maintenance (oil changes, belt replacement, battery checks, etc.) o Repairs . Fuel (gasoline, diesel, compressed natural gas, hydro en, and pro ane) Strategic Business Plan 7 12-15 . Contract Administration 0 Citywide Stationary Generators 0 Citywide Stationary Compressors 0 Major Repairs of vehicles . Special Requests . Cleaned Cars, Trucks and Buses Budget . $4,171,712 Strategic Business Plan 8 12-16 line of Business Fleet Management Line of Business Purpose Statement The purpose of the Fleet Management Line of Business is to provide vehicles and equipment to city departments so they will have properly functioning vehicles that are up to date and specific to their missions. Program Purpose Statement The purpose of the Fleet Replacement Program is to provide vehicle and equipment replacement services to city departments so they have vehicles that are up to date and s ecific to their mission. Famil of Measures: Outcome Measures . 100% of fleet replaced each year according to schedule and budget . $1.5 million of vehicles replaced annuall Output Measures . 519 vehicles in replacement program . 32 vehicles to be replaced; 6% of total vehicles in re lacement pro ram Demand Measures . 685 total number of vehicles/equipment anticipated in the fleet Efficienc Measures . $49,256 per replacement vehicle Services . Routine Replacements . Emergency Replacements . Vehicle Outfitting Installations (police car interiors, lumber racks, equipment shelving, cone holders, tool boxes, safe Ii hts & arrow boards, etc Bud et . $1,576,210 Strategic Business Plan 9 12-17 Line of Business Transit Line of Business Purpose Statement The purpose of the Transit Line of Business is to provide public transportation services to residents and visitors so they can receive safe, convenient, and de endable trans ortation. Program Purpose Statement The purpose of the Transit Program is to provide public transportation services to residents and visitors so they can receive safe, convenient, and dependable trans ortation. Famil of Measures: Outcome Measures · 95% of bus stop departures from time points (specific bus stops along a route) are within 0 to 5 minutes · 99.9% of scheduled trips are com leted Output Measures · 8,265 observed on-time departures · 150,224 (99.9%) scheduled trips completed . # of passengers o 2.20 per service mile o 28.28 per service hour Demand Measures · # of riders (ridership) anticipated per bus route 701 - 517,900 702 - 333,350 703 - 362,450 704 - 210,000 705 - 330,000 706 - 272,680 707 - 131,400 709 - 767,400 711- 68,150 712 - 186,000 · 209,000 of riders (ridership) projected based on growth in the City (ridership projection exceeds rowth of City) Efficiency Measures · $4.68 operating cost per mile in FY 05. This is a 4.93% increase over FY 04. San Diego CPI increased by 3.67% over the same period. Higher energy costs are the main factor in the operating cost increase. Strategic Business Plan 10 12-18 . $1.36 subsidy per passenger . 36.04% Fare recovery ratio Services . Passenger Buses . Passenger Bus Trips . Bus Routes . Bus Stop Facilities 0 Bus Stop Signs 0 Benches 0 Shelters 0 Trash Receptacles . Contract Administration Services 0 Bus Operations 0 Fleet Maintenance 0 Transit Centers and Trolley Transfer Stations 0 Service Request Resolutions 0 Transit Schedules 0 MTS Regional Coordination Activities Budget . $7,645,010 Strategic Business Plan 11 12-19 line of Business Parks and Open Space Line of Business Purpose Statement The purpose of the Parks and Open Space Line of Business is to provide inspe"ction, maintenance and management services to the public so they can enjoy clean and safe open space and recreational environments, Program Purpose Statement The purpose of the Open Space Program is to provide landscape management, contract administration, and inspections services to residents and businesses so they can enjoy a safe, attractive, and maintained landsca e. Famil of Measures: Outcome Measures · 90% of areas within assessment districts, open space districts, and community facility districts are inspected · 25% of linear feet cleared behind homes according to Fire Marshal directives and guidelines · 100% of district swales cleaned · 100% of service requests resolved within two weeks Output Measures . 40 districts inspected · 275,192 linear feet behind homes cleared · 233,574 linear feet of swales cleaned · 304 of service re uests resolved Demand Measures · 40 landscape districts managed · 50 acres of new landscaped acres ro'ected Efficienc Measures · $2,920 cost per acre managed Services · Landscape Maintenance Contract Administration o Trash and Litter Removals o Trimmed Shrubs, Lawns and Trees o Weed Abatement o Illegal Sign Removals o Irrigation System Repairs o Drainage Swales · Field Inspections · Service Request Responses · Plant and Tree Removals for Fire/Safety Protection Strategic Business Plan 12 12-20 . Water Management and Conservation Services . Pathway and Monument Lights . Emergency Responses and Accident Repairs . Graffiti Removals . Consultations . Plan Reviews . Fences and Wall Maintenance Bud2:et . $8,376,647 Strategic Business Plan 13 12-21 Line of Business Parks and Open Space Line of Business Purpose Statement The purpose of the Parks and Open Space Line of Business is to provide inspection, maintenance and management services to the public so they can enjoy clean and safe open space and recreational environments. Program Purpose Statement The purpose of the Park Operations Program is to provide maintenance, security, and management services to the public, sports leagues, schools, and the recreation department so they can enjoy a safe, clean, accessible and playable environment throu hout the arks. Famil of Measures: Outcome Measures · 90% of parks cleaned and maintained as per the following schedule: o Restrooms cleaned twice a day 7 days a week o Litter/trash pickup 7 days a week o Graffiti/vandalism removal and repair when observed o Turf maintained weekly (mowed, weeded, edged, etc) o Playground equipment inspected weekly and repaired as needed · 20% of sports fields are closed in order to renovate turf Output Measures · 43 parks cleaned and maintained weekly o 21 of restrooms units cleaned o 150 of acres mowed o 157 hours of trash and litter pickup · 3,186 park reservations · 9 sorts fields renovated Demand Measures · 10 new parks under construction or in development · 43 arks mana ed Efficiency Measures · $10,750 cost per acre maintained · .087 FTE's er acre Strategic Business Plan 14 12-22 Services . Park Maintenance 0 Turf, and ornamentals maintenance 0 Park Restrooms 0 Trash Removal 0 Tot Lot Safety Inspections/Audits 0 Contract Administration 0 Pesticide Training and application sessions 0 Graffiti Removals . Park Construction 0 Park Amenities (benches, tables, bleachers, gazebo, BBO, etc.) & Sports Equipment Repairs 0 Sport Field Renovations . Water Management 0 Irrigation Control Systems Installations, Retrofits and Repairs 0 Water Use Audits and Reviews . Park Rangers 0 Park Shelter Reservations 0 Park Security Services 0 Park and Ball Field Light Checks 0 Sport Field Monitoring . Golf Course Contract Administration . Special Events . Plan Reviews . Emergency Responses Budget . $5,803,850 Strategic Business Plan 15 12-23 Line of Business Infrastructure Maintenance Line of Business Purpose Statement The purpose of the Infrastructure Maintenance Line of Business is to provide maintenance services to the public so they can receive the benefits of safe, clean and dependable public streets, sidewalks, City trees, wastewater and stormwater s stems. Program Purpose Statement The purpose of the Street Maintenance program is to provide asphalt and concrete structure (street, sidewalks, curbs and gutters) maintenance, and litter removal and weed/trash abatement services to the public so they can have safe, clean, and functional ri ht-of-wa s. Famil of Measures: Outcome Measures · 1 % of square feet of pavement inventory repaired · 75% of litter/trash removal within 5 working days of service request · 50% of all potholes repaired within 20 working da s of service request Output Measures · 199 square feet of sidewalks milled · 235 sidewalk wedges · 74,008 square feet of pavement inventory repaired · 13,324 potholes repaired · 1,383 litter/trash removal staff hours (.84 FTEs) Demand Measures ated Efficiency Measures Services · Street Reconstruction - Patches · Pothole Repairs · Crack Sealing · Sidewalk Millings - Asphalt Wedges · Weed Abatement · Litter Removal and Trash Abatement (i. e. appliance/furniture, basketball hoops, skateboard ramps, etc.) · IIle al Si n ROW Removals Strategic Business Plan 16 12-24 . Street Sweeping Contracts . Special Event Barricades, Cones, and Signs . Plan Reviews . Spill and Accident Responses . Rain Patrols . Bus Stop Structures (benches, bench pads, trash cans) Budget . $2,519,987 Strategic Business Plan 17 12-25 Line of Business Infrastructure Maintenance Line of Business Purpose Statement The purpose of the Infrastructure Maintenance Line of Business is to provide maintenance services to the public so they can receive the benefits of safe, clean and dependable public streets, sidewalks, City trees, wastewater and stormwater s stems. Program Purpose Statement The purpose of the Sewer and Pump Maintenance program is to provide wastewater infrastructure maintenance services to residents, businesses and other City departments so they can benefit from a reliable and environmentall safe wastewater s stem. Famil of Measures: Outcome Measures · 100% of linear feet of sewers cleaned · 90% of spilled volume recovered · 100% of emergency service requests responded to within 45 minutes during working hours · 100% of pumping systems inspected/tested per schedule Output Measures · 75,307 gallons spilled · 10,222 gallons (spilled) recovered · 2,050,910 linear feet of sewer cleaned · 42 pumpin systems maintained Demand Measures · 425 linear miles of sewer lines anticipated to be managed · 42 pumpin s stems mana ed Efficienc Measures · $2.27 cost per linear foot of sewer cleaned Services · Sewer Maintenance o Repairs (laterals and mains replaced/serviced) o Laterals Installations o Inspections o Cleaning (hydraulic and mechanical) o Concrete Repairs o Utility Mark Outs o Spill Containment and Clean-ups o Rain Patrol Strategic Business Plan 18 12-26 0 24/7 Emergency Responses 0 Plan Reviews . Pump Maintenance 0 Water Features (Heritage Park Pond, fountains) 0 Public Pools 0 Irrigation Pumps 0 Sewer Lift Stations 0 Nature Center Sea Water Filtration Systems 0 Emergency and Routine Confined Space Entry Support 0 24/7 Emergency Responses 0 Plan Reviews 0 Sewer Flow Monitoring Budget . $4,227,152 Strategic Business Plan 19 12-27 Line of Business Infrastructure Maintenance Line of Business Purpose Statement The purpose of the Infrastructure Maintenance Line of Business is to provide maintenance seNices to the public so they can receive the benefits of safe, clean and dependable public streets, sidewalks, City trees, wastewater and stormwater s stems. Program Purpose Statement The purpose of the Storm Drain Maintenance Program is to provide cleaning and maintenance seNices to residents and the public so they can have flood protection and improved water quality and the City is in com liance with environmental standards. Famil of Measures: Outcome Measures · 100% of all catch basins inspected/cleaned (NPDES compliance standard is 100%) · 5% of square footage of channels/detention basins cleaned · 100% of critical inlets inspected and cleared prior to and during rain events Output Measures · 400 pounds of trash/debris removed from outfalls · 9,600 pounds of trash/debris removed from inlets/catch basins · 340,000 s uare feet of channels cleaned Demand Measures · 5,563 inlets/catch basins anticipated to be cleaned · 9 locations requiring environmental permits expected Efficiency Measures · $92.85 cost per inlet/catch basin inspected and cleaned Services . Repairs · Inspections · Cleaning inlets/catch basins · Emergency Repairs · Illegal discharge responses (containment and cleanup) · Lined and natural channels cleaning · Detention basin cleaning · Trash removals · Rain Patrols Strategic Busines~ Plan 20 12-28 I Budget Strategic Business Plan I: Plan Reviews $655,198 12-29 21 Line of Business Infrastructure Maintenance Line of Business Purpose Statement The purpose of the Infrastructure Maintenance Line of Business is to provide maintenance services to the public so they can receive the benefits of safe, clean and dependable public streets, sidewalks, City trees, wastewater and stormwater s stems. Program Purpose Statement The purpose of the Urban Forestry program is to provide tree trimming, reforestation, and preservation services to the community so they can enjoy the benefits of trees that are healthy, safe and growing in public areas. Famil of Measures: Outcome Measures · 25% of woody trees trimmed and 100% of palms trimmed (under program jurisdiction) · 100% of trimming service requests (non- emergency) are resolved within 30 days · Maintain "Tree Cit USA" recognition Output Measures · 7,450 woody trees trimmed · 2,550 palm trees trimmed . 175 trees planted · 100 trees (damaging infrastructure) removed or root pruned · 7,000 linear feet of bio-barrier installed Demand Measures · 40,000 trees (est.) anticipated to be under department management · 3,000 est.) trees ex ected to be lanted Efficienc Measures · $62.80 cost per tree trimmed Services . Trees o Trimmed - (health, safety and hazard mitigation, aesthetics) o Planted (reforestation - watered and monitoring health of trees) o Removed (dead or diseased, infrastructure damage) o Contract Administration · Stumps Removed Strategic Business Plan 22 12-30 . Service Request Responses . Bio Barrier Installations . Root Pruning . Consu Itations . Plan Reviews . Pesticide Application (spraying and micro- injections) . Emergency Responses . Banner Installations and Removals Budget . $891,260 Strategic Business Plan 23 12-31 Line of Business Infrastructure Maintenance Line of Business Purpose Statement The purpose of the Infrastructure Maintenance Line of Business is to provide maintenance services to the public so they can receive the benefits of safe, clean and dependable public streets, sidewalks, City trees, wastewater and stormwater s stems. Program Purpose Statement The purpose of the Striping and Signing program is to provide traffic control devices and graffiti removal services to motorists, pedestrians, and residents so they can travel on clearly marked streets and live in a ci free of raffiti. Famil of Measures: Outcome Measures · 100% of streets re-striped per schedule · 30% of signs inspected, repaired or replaced · 70% of legends (crosswalks, arrows, etc.) painted · 100% of graffiti removed within 48 hours of service request Output Measures · 625 lane miles striped · 900 new signs installed · 3,624 signs inspected, repaired or replaced · 7,300 legends painted · 530,000 s uare feet of raffiti removed Demand Measures · 644 (est.) lane miles requiring striping · 8,000 si ns re uirin maintenance Efficiency Measures · $43.25 cost per lane mile striped · $0.45 cost er s uare foot of raffiti removed Services . Street Stripings · Street Legends · Raised Pavement Markers · Crosswalks · Graffiti Removals · Street Name Signs (installation, maintenance, manufacture) . · Traffic Signs (installation, maintenance, manufacture) · Painted Curbs · Cit Parkin Facilities Striped Strategic Business Plan 24 12-32 . City Facilities Signs . Special Events . Bus Stop Maintenance Services Budget . $1,485,665 Strategic Business Plan 25 12-33 line of Business Inspection Services line of Business Purpose Statement The purpose of the Inspection Services Line of Business is to provide inspection, enforcement, education, contract and permit administration services to the developers and City departments so they can comply with City construction standards and stormwater regulations, so the public receives the benefits of cleaner water and durable and safe public infrastructure. Program Purpose Statement The purpose of the Construction Inspection Management program is to provide inspections and contract I permit administration services to the general public, developers and other city departments so they can be assured of safety during construction and benefit from durable and safe public infrastructure. Famil of Measures: Outcome Measures · 100% of public facilities constructed are inspected and meet city standards · 100% of traffic controls on major and arterial roads inspected twice a day · 100% of reported safety concerns are addressed within same day Output Measures · 475 permits managed · 20 CIP ro'ects mana ed Demand Measures · $80 million of subdivision improvements anticipated · $8 million of CIP contracts expected to be administered Efficiency Measures Services · Inspections (grading, Public Works facilities) · Construction site traffic control safety inspections · Contract Administration · Plan Reviews · Code Violation Investigations · Consultations Strategic Business Plan 26 12-34 . Stop Work Notices . Permit Administration Budget . $2,154,017 Strategic Business Plan 27 12-35 Line of Business Inspection Servi'ces Line of Business Purpose Statement The purpose of the Inspection Services Line of Business is to provide inspection, enforcement, education, contract and permit administration services to the developers and City departments so they can comply with City construction standards and stormwater regulations, so the public receives the benefits of cleaner water and durable and safe public infrastructure. Program Purpose Statement The purpose of the NPDES-Storm Water Pollution Prevention program is to provide education, inspection, and enforcement services to the public so they can enjoy safe and clean watersheds and so the City can maintain compliance with statutory re uirements. Famil of Measures: Outcome Measures · 100% of inspections completed within statutory timeframes · 90% of reported illegal storm water discharges are resolved within two working days of report · 75% of monitored outfalls that do not have actionable levels of priority pollutants Output Measures . 300 sites inspected · 126 illegal discharges investigated and resolved · 40,000 people participating in education sessions · 159 Standard Urban Stormwater Mitigation Plan (SUSMP reviews Demand Measures · 2,000 new development and building permits anticipated · 450 staff hours dedicated to development and review for the new five ear ermit Efficiency Measures · $ cost per inspection Services · Inspections (construction, industrial, commercial and municipal facilities) · New and proposed regulation reviews and analysis. · Compliance Re orts Strategic Business Plan 28 12-36 . Violation Notices, Investigations and Follow-ups . Citations and Fines . Plan and Report Reviews . Training and public education events, Sessions and Materials . Regional Compliance Coordination Activities . Contract Administration (water quality monitoring) . Illegal discharge report responses . Business license reviews (related to water quality) Budget . $673,489 Strategic Business Plan 29 12-37 .-.,......_...,.~~-'"..~".~~~"+._.._,.^-"~->-_._.~---.-.._'---_.------ Line of Business Administration Line of Business Purpose Statement The purpose of the Administration Line of Business is to provide personnel and infrastructure management support services to employees and the public so that employees can successfully complete their work and the public can benefit from Department managed amenities and services. Program Purpose Statement The purpose of the Administration program is to provide personnel and infrastructure management support services to employees and the public so that employees can successfully complete their work and the public can benefit from Department managed amenities and services. Famil of Measures: Outcome Measures · 90% of park reservation customers "satisfied with services" · 90% of employee inquiries/issues concerning payroll and benefits are resolved within one work da Output Measures · 310 purchase requisitions processed · 3,186 park reservations made · 738 of inquiries/issues concerning payroll and benefits received · 17,026 of service requests created Demand Measures · 207 employees supported · 19,500 service requests anticipated · 5,500 ark reservations antici ated Efficiency Measures · . 033 FTE support staff per total number of em 10 ees Services · Personnel and Clerical Support Services · Purchase Requisitions/Procurement · Invoicing and Payments · Employee Discipline Actions · Citizen Request Responses . Park Reservations · Contract Administration Services · Plan /Document Reviews Strategic Business Plan 30 12-38 . Work Management System Administration . Council Agenda Statements/Referrals . Correspondences . Administration of Graffiti Abatement Program . Budget Administration . Administration of Adopt-A-Park Program Budget . $1,430,183 Strategic Business Plan 31 12-39 RESOLUTION NO. 2006- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE PUBLIC WORKS OPERATIONS DEPARTMENT'S STRATEGIC BUSINESS PLAN WHEREAS, the Public Works Operations Department has identified several issues that will be affecting the department within the next five years, established goals to address those issues pro actively, and developed performance measures to track the progress in achieving these goals; and WHEREAS, the mission of the Public Works Operations Department is to provide and manage the City's infrastructure, parks and open space through high quality operations, maintenance and construction in order to optimize mobility, public and environmental health and safety; and WHEREAS, the development of the Strategic Business Plan put renewed focus on achieving results for our customers both externally and internally. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista hereby approves the Public Works Operations Department's Strategic Business Plan. Presented by Approved as to form by Dave Byers Director of Public Works Operations ~~\\ ~l~\}\)\ Ann Moore City Attorney J:\Attorney\RESO\FINANCE\PWOPS Strategic Business Plan.doc 12-40 RESOLUTION NO. 2006- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FY 06 BUDGET BY APPROPRIATING $96,600 FROM THE AVAILABLE BALANCE OF THE PUBLIC FACILITIES DIF TO PURCHASE EQUIPMENT WHEREAS, Public Works Operations staff is recommending the addition of an Asphalt Zipper; and WHEREAS, the Asphalt Zipper would double the amount of street reconstruction production, shortening the amount of time it would take to complete street repair projects; and WHEREAS, the pulverized asphalt from the Asphalt Zipper could be reused on-site for base or backfill material rather than hauled away. The environmental benefits of reusing a portion of the material on-site should reduce the number of trips needed to haul materials to the recycler, paying money to have it recycled, and hauling new base or backfill to the site; and WHEREAS, the Asphalt Zipper allows new asphalt to bond more strongly to existing pavement. The stronger bond allows for better waterproofing, thus preventing moisture to penetrate sub-base soils and materials; and WHEREAS, by utilizing the Asphalt Zipper, Public Works plans to complete more street reconstruction jobs covering larger areas; and WHEREAS, the cost of the Asphalt Zipper is $96,600, which would be a one-time expense that will be funded by the Public Facilities DIF. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista hereby amends the FY06 budget by appropriating $96,600 from the available balance of the Public Facilities DIF to purchase equipment . Presented by Approved as to form by Dave Byers Director of Public Works Operations <{SV\S1 \\ Q\\~1\~:{~\~~\ Ann Moore City Attorney J:\Attomey\RESO\FINANCE\Amend FY 06 PWOPS_6-13-06.A.doc 12-41 COUNCIL AGENDA STATEMENT Item 13 Meeting Date 06/13/2006 SUBMITTED BY: Resolution adopting a Council Policy regarding Holiday Festival Guidelines Sharon Marshall 4"- City Attorney's Office ITEM TITLE: REVIEWED BY: City Attorney (4/5ths Vote: _ No ~ In December 2005, Council requested that the City Attorney prepare a Council Policy to provide guidance to the Recreation Department for the selection process for participation in the City's Annual Holiday Festival. RECOMMENDATION: That Council adopt the Holiday Festival Guidelines Policy. BOARDS/COMMISSION: Not applicable. DISCUSSION: In December 2005, Council requested that the City Attorney draft a Council Policy setting out guidelines to assist the Recreation Department in selecting participants for the City's annual Holiday Festival. The intent of the policy is to provide guidance to the Recreation Department so its selection process is not impermissibly restrictive. The City Attorney's Office researched the various federal and state constitutional issues that might be implicated by the proposed policy. The resulting policy establishes selection criteria that recognizes the importance of honoring and accommodating the religious and cultural traditions of all City residents but neither advocates nor endorses any particular religion or message. However, the purpose of the Holidav Festival is: (1) to allow students in the City's Recreation Department classes to participate in a public performance demonstrating the skills they have learned in the Recreation Department classes. The Holiday Festival has served as a substitute venue for the annual department-wide recitals the Recreation Department can no longer sponsor due to increases in the number and variety of classes sponsored by the Recreation Department. and (2) to serve as a venue where members of the Chula Vista community can come together to celebrate the many and varied traditions of the holiday season. The policy also makes clear that the City does not endorse non-religious messages over religious messages. The policy provides reasonable parameters based on the time constraints of the Holiday Festival itself. Additionally, since the Holiday Festival program has historically provided a venue for the Recreation Department to highlight its recreation classes, the Festival is open first to instructors who teach City Recreation Department classes and their students and local schools. A draft of the proposed policy was sent to the Recreation Department for review and to ensure there were no technical barriers to implementing the policy. The Recreation Department has reviewed the policy and, if approved by Council, expects to use the guidelines in the policy in its selection process for this year's Holiday Festival. FISCAL IMP ACT: There is no direct fiscal impact by this action. J :\Attomey\SharonM\Agenda Statements\HOLIDA Y FES TIV AL POLICY _ 06-13-06.3. doc /3-/ COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: HOLIDAY FESTIVAL GUIDELINES POLICY EFFECTIVE NUMBER DATE PAGE ADOPTED BY: (Resolution No.) IDA TED: AMENDED BY: Resolution No. (date of resolution) RACK(;ROIJND The City of Chula Vista has a long history of valuing the diversity of the people who make their homes in the City. Each year during the winter holiday season, the City's Recre~tion f)ep~rtment sponsors a Holiday Festival which is held in Memorial Park. The Holiday Festival serves a two-fold purpose: (1) itto allows pat tlclpantsstlldents in the City's Recreation Department classes to participate in a public performance demonstrating the skills they have learned in the Recreation Department classes The Holid~y Festiv~1 h~s served ~s ::J sllhstitllte venlle for the ::Jnml::Jl dep::Jrtment-wide recit::Jls the RecreMion f)ep::Jrtment c::Jn no loneer sponsor dlle to incre~ses in the nllmher ::Jnd v::Jriety of c1::Jsses sponsored hy the Recre~tion f)ep~rtment) and (2)_-rttn serves as a venue where members of the Chula Vista community can come together to celebrate the many and varied traditions of the holiday season. PlJRPOSR To provide City RecreMion staff with guidelines for allowing groups and individuals to participate in the I City.2.s Recre::Jtion f)ep::Jrtment's annual Holiday Festival. POI,ICV The Holid::JY Festiv::Jl is ~ Recre~tion f)ep::Jrtment event to showc::Jse ~nd SllPPOrt recreMion cl~sses offered hy the City of Chlll::J Vist::J Chor::Jl erollps from loc::Jl schools h::Jve tr::Jdition::Jlly heen ::Jsked to p::JrticipMe hec~lIse they provide ::J holid::JY perform::Jnce eenre not ::Jv::Jil::Jhle throlleh recreMion cl~sses P~rticipMion is limited to these erollps Within these eener::J 1 p::Jr::Jmeters, it ft-is the policy of the City of Chula Vista to accommodate all reasonable requests by groups or individuals who wish to participate in the Holiday Festival. It is a secular event with the underlying purpose to bring the Chula Vista community together to celebrate all the holidays that occur during the winter months. The event may feature traditional holiday performances and include Santa Claus, Christmas trees and snowmen. The City recognizes that many of the traditions of the holiday season have religious underpinnings and although the Holiday Festival is secular, no person or group will be denied the opportunity to participate in the Festival based on the religious message conveyed by their performance. The participation of individuals and groups who represent the broad spectrum of religious and cultural traditions found in Chula Vista contributes to the Holiday Festival goal of bringing the community together. The Recreation Department will use the following procedures to select performers for the Holiday Festival. I . Instructors who have taught classes through Recreation Department Programs in the previous year and musical performing groups from local schools will be notified that sign ups for the Holiday Festival will opened on a specific date. Prospective participants will be invited to submit reauests to nerform on the snecified date. i3'd- SUBJECT: HOLIDAY FESTIVAL GUIDELINES COUNCIL POLICY CITY OF CHULA VISTA POLICY NUMBER EFFECTIVE DATE PAGE l-<\DOPTED BY: (Resolution No.) l-<\MENDED BY: Resolution No. (date of resolution) IDA TED: . Requests to participate will be accepted on a first come, first served basis. The Recreation Department will determine the length of the Holiday Festival and the number of performances needed to fill the time. Any requests to perform received after the performance time has been filled will be placed on a waiting list and notified if a space becomes available. . The Director of Recreation, or his or her designee, will review the performance schedule to ensure there is all apPlOpIiate mix of pelformancesII variety of performance type" thllt repre"ent" the hroad "pectmm of c1a""e" offered hy the Recreation Department so that the festi val illduJe~ a vatiety of peifolillance types. If the Director determines there are too many requests to perform in any category, he or she will determine who will perform in that categolyarti"tic eenre based on when the request to perform was received, again using the first come, first served criteria. The Director of the Recreation Department will approve the final line-up of performers. . No preference will be given to religious groups over non-religious groups or non-religious groups over religious groups. This policy recognizes the importance of honoring and accommodating the religious and cultural traditions of all City residents but does not advocate or endorse any particular religion or message. Nor does the City endorse non-religious messages over religious messages. J:\Attomey\SharonM\Policies and Proceduresllioliday Festival Guidelines--Redline.doc /3-3 RESOLUTION 2006- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING A COUNCIL POLICY REGARDING HOLIDAY FESTIV AL GUIDELINES WHEREAS, in December 2005, the City Council requested that the City Attorney draft a Council Policy setting out guidelines to assist the Recreation Department in selecting participants for the City's annual Holiday Festival; and WHEREAS, the intent of the policy is to provide guidance to the Recreation Department so its selection process is not impermissibly restrictive; and WHEREAS, the policy establishes selection criteria that recognizes the importance of honoring and accommodating the religious and cultural traditions of all City residents but neither advocates nor endorses any particular religion or message. The policy also makes clear that the City does not endorse non-religious messages over religious messages. The policy provides reasonable parameters based on the time limits of the Holiday Festival itself; and WHEREAS, since the Holiday Festival program has historically provided a venue for the Recreation Department to highlight its recreation classes, the Festival is open first to instructors who teach City Recreation Department classes and local schools. WHEREAS, the Recreation Department has reviewed the policy and, if approved by Council, expects to use the guidelines in the policy in its selection process for this year's Holiday Festival. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby adopt a Council Policy regarding the Holiday Festival Guidelines. Presented by Approved as to form by Buck Martin Director of Recreation Department ~ OJ\\\ ~\)J~~ Ann Moore ' City Attorney J:\Attorney\RESO\POLICY\HOLIDA Y FESTIVAL GUIDELINES POLICY.doc /3-L) Item No j 4- Meeting Date 06/13/2006 COUNCil AGENDA STATEMENT ITEM TITLE: RESOLUTION ACCEPTING PROPOSALS AND AWARDING CONTRACTS FOR POLICE INITIATED TOWING AND STORAGE SERVICES. SUBMITTED BY: RESOLUTION AMENDING THE POLICE INITIATED TOWING SERVICE RATE SCHEDULE, ELIMINATING THE TOW REFERRAL FEE AND IMPLEMENTING A TOW LICENSE FEE, AND AUTHORIZING THE POLICE DEPARTMENT TO MAKE ANNUAL CHANGES TO THE POLICE INITIATED TOWING SERVICE RATfl ~C~EDULE. Chief of POliC~ /( UI7~ City Manager I' ~ ..(1 (4/5ths Vote: Yes_ No ~) REVIEWED BY: The Police Department has recently completed a Request For Proposal process to select qualified towing operators to provide police initiated towing and impound services. RECOMMENDATION: That Council: 1. Accepts proposals and awards contracts to the following tow operators: 1) American Towing, 2) Paxton's Towing, 3) Road One Towing and 4) Anthony's Towing 2. Approve amendments to the police-initiated Tow Operator's Rate Schedule, eliminate the tow referral fee, implement a tow license fee and authorize the department to make annual changes to the Tow Operator's Rate Schedule. BOARDS/COMMISSIONS RECOMMENDATIONS: Not Applicable DISCUSSION: The City of Chula Vista is authorized by Section 22671 of the California Vehicle Code to issue a franchise or execute contracts for the towing and storage of vehicles having a deleterious impact upon public safety. Such vehicles include, but are not limited to, those that have been illegally parked, abandoned, involved in a serious traffic accident 14-1 Item No l tl Meeting Date 06/13/2006 and the vehicles of persons who have been arrested. ChulaVista Municipal Code Chapter 5.58 prescribes the basic regulations governing the selection and operation of these tow companies. The existing tow agreements provide for consumers to use the towing company of their choice if the towing company can arrive within a reasonable period of time. The Officer on scene will have the discretion to provide this accommodation based upon current pending calls-for-service. The Police Department currently uses four companies to provide Police-initiated towing services: Anthony's Towing, Paxton's Towing, J.e. Towing and RoadOne Towing. Currently, each of these four companies has an identical agreement with the City and each has provided adequate service to the City. Request for Proposal Cycle At the conclusion of the previous contract, staff issued a Request for Proposal (RFP) on December 6, 2001. Following the selection process staff became concerned with fiscal control issues in the processing of Negligent Vehicle Impound Fee's (NVIP) and Tow Referral Fees. As a result, the 2001 RFP was cancelled. Staff conducted a second RFP which was issued on October 30, 2003. Several significant changes to the scope of the original RFP were made and an exhaustive evaluation process was conducted. However, due to the length of time that it took to process the second RFP, there were several changes in some of the tow operators' operational capacities that warranted a cancellation of the second RFP. The third RFP for towing related services was issued October 12, 2005. For both the second and third RFP's, a committee consisting of the Purchasing Agent, Deputy City Attorney and the Administrative Services Manager (from the Police Department) was formed to ensure that the process was consistent and thorough. The committee reviewed the previous RFP and made several changes its scope. During the period since the contract ended, the current four companies have maintained towing related services without any drop in service to the citizens of Chula Vista. One significant change to the RFP process was the elimination of the Tow Referral Fee and the introduction of a Tow License Fee (TLF). The Tow License fee will replace the current Tow Referral Fee and is charged for each police initiated tow (currently $18 per vehicle). For this RFP, each company that was successful in the evaluation process was asked to place a monetary bid for the tow contract. A minimum bid amount of 14-2 Item No I ~ Meeting Date 06/13/2006 $23,750 was established and the top four bidders would be accepted for the contract. This means that each of the top four bidders could pay differing amounts for a 25% share of the overall tow services contract. Each company's bid would be their Tow License Fee. This was implemented to increase fiscal control on funds involved with police initiated tows. Instead of the companies each sending separate checks each month to the department, they will instead send quarterly payments based upon their bid for services. The other change made was that the department will require individuals to pay their Negligent Vehicle Impound Fee (currently $125) at the Police Department prior to release of their vehicle from the tow yard. Both of these changes were made in order to place tighter fiscal controls on the funds involved with police initiated tows. This change in policy will eliminate 90% of the staff work involved with processing these payments from the tow companies. The other significant change relates to the ownership of a Heavy Duty Tow Truck. Previous to this RFP, tow companies were required to have a Heavy Duty Tow Truck that could tow large vehicles (such as dump trucks, "big rigs", etc). The new RFP allowed companies to submit bids without owning a Heavy Duty Tow Truck as long as they could demonstrate the ability to purchase the Heavy Duty Tow Truck within one year. Tow companies without a Heavy Duty Tow Truck are required to subcontract with another tow company for that ability to tow large vehicles during the first full year of the contract. After the first year, companies without the Heavy Duty Tow Truck must put one of these vehicles into their tow vehicle inventory. Staffs' reasoning behind this shift in policy was that it allowed tow companies to submit a proposal without having to make large capital investment prior to finding out if they were successful in the bid process. This opened up the RFP process to more companies and was implemented in an effort to encourage additional competition. Police Department staff also concluded that due to the large numbers of heavy construction vehicles operating throughout the City, each company involved in the tow services contract must have a Heavy Duty Tow Truck in their inventory, as time will be of the essence in those instances when a heavy tow is required. The City received seven proposals to perform police initiated tow services. The companies that submitted proposals were (in alphabetical order): . American Towing - 140 Reed Court, Chula Vista . Anthony's Auto Center - 305 E Street, Chula Vista . Bradley's Towing - 6980 C Mission Gorge Rd., San Diego . J.C. Towing - 2501 Faivre St., Chula Vista . Paxton Towing - 3487 Main Street, Chula Vista . RoadOne Towing - 3821 Calle Fortuna, San Diego . Western Towing - 4370 Pacific Highway, San Diego Staff has performed a comprehensive evaluation of each RFP submitted. The evaluation process consisted of two stages: 14-3 Item No I~ Meeting Date 06/13/2006 1) Review of the written proposals by the committee 2) A site evaluation conducted by a representative from the San Diego County Sheriffs Department. This was done in order to ensure impartial rating of each company. The representative from the Sheriff's department has significant experience with tow companies and related services. Written Proposal Evaluation Each of the written proposals was evaluated to ensure that each company could meet the criteria outlined in the RFP. Each proposal was evaluated based upon the following criteria: 1. Company History - Companies where required to have performed essentially the same type of service for a minimum of three years 2. Corporate/Shareholder Agreements - Each company was required to report corporate/shareholder agreements in an effort to make sure the department was contracting with reputable and established organizations. 3. Pending Litigation - Each company was required to disclose any pending litigation. This is important to make sure that each company was free from any significant litigation that could affect their ability to perform tow-related services in the future. 4. Contracts with other Agencies - Each company was required to detail similar contracts with other law enforcement agencies to ensure that each company selected had previous experience performing the types of tows that would be required under this contract. 5. Three References - Each company was required to submit a minimum of three references that supported the company's reliability and trustworthiness to perform police-related tows. . 6. Demonstration of Similar Experience - Each company was required to detail their specific experience in performing police-related tows. This is important as the most critical police initiated tows are performed at scenes of accidents and require tow companies to be prompt, safe and reliable to quickly remove cars from the roadways. 7. Tow Truck Operator - Each company was required to provide a list of all of their drivers, including experience level and verification that they possess the required licensing to perform tows. 8. Tow Trucks - Each company was required to provide a list of their compliment of tow trucks to ensure the required numbers and sizes of trucks. 9. Equipment and Outfitting - Each company was required to list the equipment that each of their tow trucks where outfitted with. This list had to meet the City's minimum requirements for equipment. 10. Storage Yard - Each company was required to demonstrate their ability to operate a tow yard that would meet the City's minimum requirements for space and storage. 14-4 f Item No 1 U Meeting Date 06/13/2006 11. Tow Truck Maintenance - Each company was required to demonstrate that their fleet of tow trucks that would be used to perform police initiated tows met the City's minimum requirement for well-maintained and clean equipment. Each of the submitting companies met the minimum requirements as detailed in the RFP. Site Evaluation A County of San Diego Sheriffs Deputy performed the site evaluations with two representatives from the Police Department present to ensure compliance with scoring procedures. The deputy was asked to participate in the site evaluations because he has extensive experience in police tow related services in San Diego County and his background and experience and lack of connection to the Chula Vista Police Department provided a level of expertise and impartiality the Department felt was necessary to ensure the award process was fair and impartial. The site evaluations consisted of a visit to each site and visually verifying that each company had the minimum required equipment based upon pre-established criteria. Companies were allowed to make equipment substitutions as long as the substitution adequately met the intent of the equipment requests. Exhibit "An is the score sheet that was utilized in this process. Each of the companies met all of the minimum qualifications as outlined on the score sheet. Bid Process Each company that passed the RFP review and site visits was asked to place a sealed bid for police initiated towing services. This bid would serve as their Tow License Fee. The top four qualified bidders were then selected to participate in the police initiated towing services contract. The following is the list of bids in order of amount: $120,875 $102,000 $65,000 $60,000 $48,048 $47,774 $38,125 RFP Appeal Process One tow company appealed the results of the RFP process in December 2005. J.C. Towing filed their appeal citing various issues with the RFP process. The City held an appeal hearing with representatives from J.C. Towing. Present from the City was the appeal hearing officer, Bart Miesfeld, Sr. Assistant City Attorney, along with John 14-5 Item No I ~ Meeting Date 06/13/2006 Coggins, Purchasing Manager, and Edward Chew, Administrative Services Manager for the Police Department. The issues brought forward by J.C. Towing are the same issues that were delivered to your offices by J.C. Towing. The City sent a written response to J.C. Towing indicating that the issues brought forth were without merit and the hearing officer, Mr. Miesfeld, did not find any violations of the RFP process. The hearing officer separately addressed each allegation and provided findings as to why the responses by the two companies were sufficient. Vehicle Code Section 12110 Issues Vehicle Code section 12110 enumerates the ability of a City to charge a fee for tow related services as long as "the fee in those cases may not exceed the amount necessary to reimburse the public entity for its actual and reasonable costs incurred in connection with the towing program." A review of the actual costs to provide a towing program was conducted and it was determined that the City meets the requirements of Vehicle Code section 12110 as the actual costs to administer the towing services program exceeds the aggregate bid amount received by the top four companies. In order to calculate the actual costs incurred in connection with the towing program, the department utilized recently updated call-for-service (CFS) data gleaned from the Patrol Staffing Model which was updated in 2005. There were approximately 4,400 CFS in calendar year 2005 which involved a police initiated tow. From the Patrol Staffing Model, the average CFS time for an officer is 38.81 minutes per call. Based upon this information, Officers spent approximately 2,846 hours in 2005 responding to CFS involving police initiated tows. This equates to a total cost of $392,950 when utilizing full cost recovery1 (FCR). This does not include additional time for officers who were called for "back-up". If "back-up" time was included (e.g. large accidents, crime scenes, etc.), that would add an additional 1992 hours and $274,944 to the net total cost. Dispatcher Peace Officer Police records Police Sgt Police Lt. $ 27.29 $ 33.89 $ 18.18 $ 42.93 $ 51.51 4.07 4.07 4.07 4.07 4.07 440 $ 2846 $ 1 040 $ 208 $ 104 $ Total Cost $ NVI P Reduction2 $ NET TOTAL COST $ 48,918.96 392,950.33 77,027.93 36,378.54 21,824.58 577,100.35 (179,000.00) 398,100.35 1 Full cost recovery rates were utilized to capture the full cost of an officer's time including benefits, vehicle and equipment costs and administrative overhead. 2 NVIP - Negligent Vehicle Impound Program 14-6 Item No ) q Meeting Date 06/13/2006 Additional calculations were added to reflect the amount of time spent by Police Dispatchers in calling tow companies, the amount of time spent by clerical staff and supervisory staff in dealing with tow related issues (e.g. complaint calls, compliance activities, etc.). In response to concerns raised during the pre-bid conference in regards to CVC 12110, the department issued an email response to all companies on the potential impact of the bidding process in relation to the total cost for the department to provide the towing program. The initial estimate provided to the tow companies in the email was as follows: ".. . conservative estimates of the cost of administering the Tow program in the City are $430,000 per year. Even subtracting the NVIP amount (roughly $170,000), the Tow License fee should fall substantially below the City's cost to administer this program. The Tow License Fee is replacing the Tow Referral Fee which traditionally partially offset the cost to administer the tow program. This tow referral fee was set back in 1995. Since that time, the cost of salaries and benefits for the city has substantially increased without corresponding increases in the referral fee." The estimates used in the original projection were based upon CFS statistics from a 1996 report to the City Council. Since 1996, the average CFS time increased 4.4 minutes per call. When the original email was sent out, the department did not have the revised CFS averages. PROPOSED TOW RATES There have been no adjustments made to the Police Initiated Towing Service Rate schedule since 1998. The department recommends adjusting the schedule in order to compensate for increased labor, fuel and insurance costs that the tow companies have had to absorb. The table below is based upon the average rate charged for services under the California Highway Patrols (Southern section) Tow Rotation program: Basic Tow Mileage labor Storage Maximum Evening Release (after 5:00 pm & Holida s Heavy Tow Dolly Charge $70.00 $2.50 $60.00/HR $15.00 $35.00 $105.00 $50.00 None $65.00/Hour $25.00/Day (24 Hours) $65.00 $210.00 $50.00 14-7 I I Item No I Lf- Meeting Date 06/13/2006 The table below details the various charges for tow related services throughout the County to show that the CHP rates are comparable to the County average: $125.00 $140.00 $125.00 $120.00 $125.00 $90.00 $125.00 $130.00 $100.00 $120.00 $4.00 0 $3.00 0 0 0 0 0 0 $0.33 $60.00 $40.00 $60.00 $120.00 $60.00 $45.00 $60.00 $60.00 $100.00 $67.22 $4.00 $4.00 0 $4.00 0 0 $4.00 0 0 $0.89 $25.00 $30.00 $20.00 $25.00 $25.00 $19.00 $25.00 $27.50 $20.00 $24.06 $40.00 $30.00 $40.00 $50.00 $65.00 $34.00 $65.00 $65.00 $45.00 $48.22 $211.00 $220.00 $150.00 $175.00 $210.00 UNK $210.00 $210.00 $150.00 $192.00 The department recommends that the Police Initiated Towing Service Rate schedule be adjusted annually in July in order for the tow companies to be able to keep up with rising fuel, labor and insurance costs. The department further recommends that in order to simplify the process for adjusting rates, the California Highway Patrol (CHP) average rates for southern San Diego County be used to set the tow schedule rates. The CHP's average tow rates are comparable to the rates noted above. The CHP's rates reflect the charges by companies involved in the CHP tow rotation program and are adjusted annually. The cities which are bolded above generally follow the CHP tow rotation program rates as well. CONTRACT PERIOD This contract will become effective July 1, 2006 and will be valid for 5 years ending June 30,2011. At the end of the contract, it may be extended upon mutual agreement between the City and individual tow companies, although it is the intent of the Police Department to conduct a new RFP at that time to select tow service providers for the City. FISCAL IMPACT: This contract will result in a positive impact to the general fund revenues by an additional $108,172 per fiscal year. These additional revenues will further offset the cost of administering the tow program. There are no additional appropriations required. Attached: Exhibit "An 14-8 Item No I~ Meeting Date 06/13/2006 EXHIBIT "A" Tow Rating Sheet City Of Chula Vista Tow Services Site Inspection Company Name INSTRUCTIONS 1. Rater shall inspect contractor operations to ensure contractor meets the minimum requirements as presented in Request for Proposal. 2. During inspection of each requirement, both rater and contractor shall initial form indicating compliance/non-compliance with RFP requirements. 3. Notes indicating any discrepancies from RFP requirements shall be noted in space provided below scoring category. Notes can be continued on the reverse side of score sheet. 4. Rater shall sign the last sheet indicating that the scoring was based upon equipment presented for inspection at the time of site inspection. 14-9 Item No Meeting Date 06/13/2006 /Y One (1) Wheel Lift rated at 14,500 Gross Vehicle Wei ht GVW) Notes: One (1) Roll Back rated at 14,500 GVW Notes: One (1) Medium Duty Flatbed rated at 2.5 tons or reater Notes: One (1) Medium Duty truck with wheel lift or sling capability rated at 15,000 to 20,000 Gross Vehicle Weight (GVW) or reater Notes: 14-10 Item No Meeting Date 06/13/2006 let One (1) 3 Axle Semi- Tractor with hydraulic or electrical wheel lift or sling capability lift rated at 48,000 Gross Vehicle Weight (GVW) or greater.3 Notes: Each truck shall have an operational winch that is power-driven in both directions and equipped with an adequate braking system. Notes: Each truck shall be equipped with the lighting systems as required by California Vehicle Code (CVC) Sections 24605, 24606 and 25253. Additionally, trucks shall be equipped with utility lamp lighting systems that comply with CVC Section 25110. Notes: 3 Firms without large rig tow vehicle must sign affidavit at end ofrating sheet. 14-11 Item No I Lt- Meeting Date 06/13/2006 Each truck shall carry the miscellaneous equipment required by eve Section 27700. Additionally, each tow company shall maintain three (3) sets of dollies for use by tow trucks providing services to the City. Notes: Each truck responding to requests for police initiated towing and impound services shall, on both sides of the vehicle, conspicuously bear the company name, address and phone number(s) in lettering that complies with eve Section 27907 Notes: 14-12 j I Item No Ir Meeting Date 06/13/2006 Each truck responding to requests for police initiated towing and impound services shall be equipped with radio commu nications equipment capable of effecting two-way radio communications between the truck and the tow company's dispatching operation. Citizens Band radios shall not be used to meet this requirement. Notes: The City of Chula Vista will require a minimum of one acre of space that can be used to store vehicles. The yard must be in conformance with applicable City zoning and building codes and be permitted as such. Proposed yards must also be able to be in full service by the beginning of the contract date. Yards proposed shall be secure and enclosed, at a minimum, by a six- foot high fence with adequate lighting. Notes: 14-13 Item No (L/ Meeting Date 06/13/2006 Each truck responding to requests for police initiated towing and impound services shall be well maintained and clean on the exterior and interior and should reflect the clean image of the City of Chula Vista Notes: Tow companies shall provide tow truck operators with uniform attire that consists, at a minimum, of a collared shirt Notes: The collared shirt shall have a patch either on the upper sleeve or chest that conspicuously identifies the company employing the operator Notes: Company issued uniform attire shall be kept clean and in ood repair Notes: 14-14 Item No l ~ Meeting Date 06/13/2006 I have rated the above named company based upon the equipment that was presented to me during the tow services site inspection and my rating represents an accurate accounting of said equipment based upon the requirements as outlined in RFP #4-05/06. RATER NAME DATE 14-15 Item No ) ~ Meeting Date 06/13/2006 Large Rig Affidavit I certify that I am duly authorized representative of and in accordance with section 3.5.1.5 of City Of Chula Vista RFP #4-05/06, said company will comply with the requirements of this section by the date enumerated in RFP #4-05/06. I further understand that failure to comply with this section of the RFP could result in elimination from the tow rotation as outlined in section 6.28 of RFP #4- 05/06. Owner/Agent Date 14-16 RESOLUTION NO. 2006- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING PROPOSALS AND AWARDING CONTRACTS FOR POLICE INITIATED TOWING AND STORAGE SERVICES WHEREAS, The City of Chula Vista is authorized by Section 22671 of the California Vehicle Code to issue a franchise or execute contracts for the towing and storage of vehicles having a deleterious impact upon public safety; and WHEREAS, Chula Vista Municipal Code Chapter 5.58 prescribes the basic regulations governing the selection and operation of these tow companies; and WHEREAS, the Police Department recently completed a Request for Proposal seeking qualified towing and impound service providers; and WHEREAS, seven companies submitted proposals and each passed the review process including site inspections; and WHEREAS, each of the seven companies submitted bids to perform police initiated towing services, the top four bids from American Towing, Anthony's Auto Center, Paxton's Towing and RoadOne Towing were chosen to provide police initiated towing services. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby accept proposals and award contracts for police initiated towing and storage services to American Towing, Anthony's Auto Center, Paxton's Towing and RoadOne Towing. Presented by: Approved as to form by: j) OJ 1I~;t4A-> Richard P. Emerson Fof2. R pC Police Chief ~~~~\ Ann Moore City Attorney J :\Attomey\RESO\POll CE\T ownewreso1.doc 14-17 RESOLUTION NO. 2006- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE POLICE INITIATED TOWING SERVICE RATE SCHEDULE, ELIMINATING THE TOW REFERRAL FEE AND IMPLEMENTING A TOW LICENSE FEE, AND AUTHORIZING THE POLICE DEPARTMENT TO MAKE ANNUAL CHANGES TO THE POLICE INITIATED TOWING SERVICE RATE SCHEDULE WHEREAS, the Police Department recently completed a Request for Proposal seeking qualified towing and impound service providers; and . WHEREAS, in order to heighten fiscal control, the Police Department requests elimination of the Tow Referral Fee and the implementation of a Tow License Fee; and WHEREAS, in order to maintain competitive tow rates, the Police Department requests an increase in the current Towing Service Rate Schedule and authority to make annual adjustments to the Towing Service Rate Schedule based upon the California Highway Patrol average tow program fees. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby amend the Police Initiated Towing Service Rate Schedule, eliminating the tow referral fee and implementing a tow license fee, and authorizing the Police Department to make annual changes to the Police Initiated Towing Service Rate Schedule. Presented by: Approved as to form by: ~ J -j) \ ~ \ JJ (A/titVl. Ric~ard P: Emerson f6.I2- f.{JF Pollee Chief ~f~~~(~ Ann Moore '\ City Attorney J :\Attomey\RESO\POLlCE\ T ownewreso2.doc 14-18 RECEIVED ~lf? ~ ~~:;..~ Mayor and City Council City Of Chula Vista 276 Fourth Avenue Chula Vista, Ca 91910 619.6915044 -619.476.5379 Fax '06 JlJN -7 P2 :53 CUY OF CHULA V,;j\./fEMO CiTY CLERK'S OFF~~Y 1.. CllY OF CHULA VISTA Wednesday, June 07,2006 FROM Lorraine Bennett, City Clerk Zaneta Salde Encarnacion, Constituent Services Manager r'- Design Review Commission TO: RE: Mayor Padilla would like to recommend Me. Jeff Justus for consideration to replace Ms. Katherine Magallon on the Design Review Commission. Please place on next council agenda for ratification. Call if questions, x5812 Thank you. ~~{~& - f)1e.,j ltS+tl5 Chid~t ]/1 Sf-A doe> /? c-i' (! ?Lrre/1 fy bje/e ~ $CI/'[/e ji/1 a l1y Cb.. 'k., 13' ...~ lip