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HomeMy WebLinkAboutAgenda Packet 1994/11/08 Tuesday, November 8, 1994 6:00 p.m. Council Chambers Public Services Building Rel!1llar Meetin2 of the City of Cbula Vista Citv Council CALL TO ORDER 1. ROLL CAB.: Councilmembers Fox _' Horton _' Moore _' Rindone _' and Mayor Nader _' 2. PLEDGE OF ALLEGIANCE TO THE FLAG. SILENT PRAYER 3. APPROVAL OF MINUTES: October 25,1994. 4. SPECIAL ORDERS OF THE DAY: None submitted. ***.* Effective April 1, 1994, there have been new amendments to the Brown Act. The City CouncU must IIOW reconvene into open session to report any Jj!HJl actions tolcen in closed session and to a4joum the meeting. Because of the cost involved, there wUl be 110 videotaping of the reconvened portion of the meeting. However, ftlUJl acdbns reported wUl be recorrhd in the minutes which wUl be available in the City Cleric's Olftce. ***** CONSENT CALENDAR (Items 5 through 10) The staff recommendations regarding the following Uems listed under the Consent Calendar wUl be elUJcted by the CouncU by one modbn wUhout discussion unless a Councilmember, a member of the public or City staff requests that the Uem be pulled for discussion. 1/ you wish to speak on one of these Uems, please fill out a "Request to Speak Form" available in the lobby and submU U to the City Cleric prior to the meeting. (Complete the green form to speak in favor of the stoff recommendation; complete the pink form to speak in oppositWn to the stoff recommendation.) Items puUed from the COIISent Calendar wUl be discussed lifter Board and Commission Recommendations and Actio1l1tems. Items pulled by the public wUl be the first Uems of business. S. WRITTEN COMMUNICATIONS: a. Letter from the City Attorney stating that there were no reportable actions taken from the Closed Session of 11/1/94. It is recommended that the letter be received and filed. b. Letter regarding administrative policy on use of sewer funds - Joseph W. Garcia, The People's Lobby, 484 Fifth Avenue, Cbula Vista, CA 91910. The City Attorney has prepared an opinion for discussion. Continued from the meeting of 11/1194. Agenda -2- November 8, 1994 6.A. ORDINANCE Ui08 ESTABLISHING AND AMENDING CERTAIN TIME LIMITATIONS WITH RESPECT TO THE REDEVELOPMENT PLAN FOR THE BAYFRONT REDEVELOPMENT PROJECT '........nd readillll and adoDtionl - The purpose of the ordinances is to amend all of the City's Redevelopment Plans to incorporate certain time limits maodated by AD 1290 (8Dd further refined in SB 732). The time limits pertain to the establisbment of indebtedness, effective of Redevelopment Plans, 8Dd repayment of indebtedness. The legislation requires that a Redevelopment Plan which either lacks the required time limits or which contsins time limits in excess of the maximums estsblished by AD 1290 must be amended by ordinance before the end of the calendar year to bring the plan into conformity with the requirements. Staff recommends Council place the ordinances on second reading 8Dd adoption. (Director of Community Development) B. ORDINANCE 2609 ESTABLISHING AND AMENDING CERTAIN TIME LIMITATIONS WITH RESPECT TO THE REDEVELOPMENT PLAN FOR THE TOWN CENTRE I REDEVELOPMENT PROJECT '......ond readillll and adoDtionl C. ORDINANCE 2610 ESTABLISHING AND AMENDING CERTAIN TIME LIMITATIONS WITH RESPECT TO THE REDEVELOPMENT PLAN FOR THE TOWN CENTRE n REDEVELOPMENT PROJECT (second readillll and adoDtionl D. ORDINANCE 2611 ESTABLISHING AND AMENDING CERTAIN TIME LIMITATIONS WITH RESPECT TO THE REDEVELOPMENT PLAN FOR THE OTA Y VALLEY ROAD REDEVELOPMENT PROJECT (second readillll and adoDtionl E. ORDINANCE 26U ESTABLISHING AND AMENDING CERTAIN TIME LIMITATIONS WITH RESPECT TO THE REDEVELOPMENT PLAN FOR THE SOUTHWEST REDEVELOPMENT PROJECT (second readillll and adoDtionl 7. ORDINANCE 2615 AMENDING SCHEDULE X, SECTION 10.48.050 OF THE MUNICIPAL CODE TO ESTABLISII SPEED LIMITS ON DEL REY BOULEVARD AND RANCHO DEL REY PARKWAY (first readilllll - The City Engineer has determioed the need to establish speed limits on Del Rey Boulevard and Rancho del Rey Parkway in the Rancho del Rey development. The streets have recently been opened to traffic and serve as the major collector streets for a large residential community located north of East "H" Street and west of Otay Lakes Road. Staff recommends Council place the ordinance on first reading. (Director of Public Works) 8. RESOLUTION 17709 APPROVING FIFI'H AMENDMENT TO AGREEMENT WITH REMY AND THOMAS FOR LITIGATION REPRESENTATION SERVICES IN CONNECTION WITH THE CHAPARRAL GREENS LAWSUIT, AND AUTHORIZING MAYOR TO EXECUTE SAME - After the Council and Board of Supervisors approved the Otay Ranch Project, ChsparraI Greens sued on CEQA theories. The City retained Remy and Thomas at Baldwin's expense. The trial is now complete and we are awaitiog the Judge's decision. Baldwin has brought Ms. Thomas' bill current as billed, a total of $49S,OOO. Sbe now estimates $62,000 of additional poat trial expenses and experts costs incurred but not yet billed. Baldwin concurs with the increase, and of course, is solely liable. Staff recommends approval of the resolution. (City Attorney) Agenda -3- November 8, 1994 9 RESOLUTION 17710 APPROVING AN AGREEMENT WITH THE ENVIRONMENTAL TRUSt, INC. AND BONITA LONG CANYON PARTNERSHIP FOR PURCHASE OF LAND AS WETLANDS MITIGATION FOR TWO CITY PROJECTS AND AT&T'S PROJECT AT 865 THIRD AVENUE AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT ON BEHALF OF THE CITY - The winter storms of 1993 caused damsge to a number of locations within the City. Restoration work was accomplished for two City projects and one private project. As a resolt of work done by the City and proposed work by American Telephone and Telegraph (AT&T) at 865 Third Avenue, the Department of Fish and Game (DF&G) required wetlands mitigation. The City has been worldng towards obtaining land to mitigate the two City projects. The DF&G suggested that the City and AT&T combine mitigation so as to provide a larger area rather than three smaller sites. The agreement is the resolt of negotiations for both City projects and the AT&T site. Staff recommends approval of the resolution. (Director of Public Works) 10. RESOLUTION 17711 ACCEPTING BID AND AWARDING CONTRACT FOR "PLACEMENT OF ASPHALT CONCRETE OVERLAY FOR 1994/95 OVERLAY PROGRAM AND CONSTRUCTION OF SIDEWALK RAMPS ON VARIOUS StREETS IN THE CITY (STL-221) - Bids were received on 9/14/94 for 'Placement of Asphalt Concrete Overlay for 1994/95 Overlay Program and Construction of Sidewalk Ramps on various streets in the City (STL-221).' The work includes placement of one and one-half inch to two inch thick asphalt concrete overlay on top of non-woven pavement reinforcing fabric, removal of alligatored pavement areas and replacement with asphalt concrete pavement, cold milling of street pavement in certain areas, AC leveling courses, signal loops, traffic control, adjustment of sewer manholes, adjustment of storm drain clean outs, adjustment of survey well monuments, construction of sidewalk ramps, and other miscellaneous work as shown on the plans. Staff recommends Council approve the resolution awarding the contract to Daley Corporation in the amount of $1,026,674. (Director of Public Works) .. .. END OF CONSENT CALENDAR .. .. PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES The foUowing Uems have been advertised and/or posted as pubUc hearings as required by law. 1/ you wish to speak to any Uem, please fill out the "Request to Speak Form" avaUoble in the labby aad submU U to the City Cleric prior to the meeting. (Complete the green form to speak in favor of the staff recommendation; complete the pink form to speak in opposition to the stafI recommendation.) Comments are UmUed to five minutes per individual. None submitted. ORAL COMMUNICATIONS This is an opportunity for the generol pubUc to address the City Council on any subject maJter wUhin the Council'sjurisdiction that is!JJlJ. an Uem on this agenda for pubUc discussion. (State law, however, generaUy prohibUs the City Council from ttJking action on any issues not included on the posted agenda.) 1/ you wish to address the Council on such a subject, please complete the yeUow "Request to Speak Untler Oral Communications Form" available in the labby aad submU U to the City Cleric prior to the meeting. Those who wish to speak, please give your name aad address for record purposes and foUow up action. Your time is UmUed to three minutes per speaker. Agenda -4- November 8, 1994 BOARD AND COMMISSION RECOMMENDATIONS This is the time the CiIy Council wiU consiJler iUms which hove been forwarrkd to them for consUkration by one of the CiIy's Boards, Commissions and/or Committees. 11. REPORT RECOMMENDATION FROM THE INTERNATIONAL FRIENDSHIP COMMISSION REGARDING RUSSIAN SISTER CITY ACTION ITEMS The items listed in this section of the agenda are expected to eUcit substantiol discussions and deliberations by the Council, staff, or members of the general pubUc. The iUms wiU be consiJlered individually by the Council and slqffrtlcommendations 1fUlJ in cel"toin cases be prtlsented in the altemalive. Those who wish to speak, pkase flU out a "Request to Speak" fonn availabk in the lobby and submit it to the CiIy Ckrle prior to the meeting. PubUc comments artl Umited to five minutes. 12. REPORT UPDATE ON SOLID WASTE DISPOSAL ISSUES - An oral report will be given by staff. REPORT CONSIDERATION OF SITE SELECTION FOR SOLID WASTE TRANSFER STATION AND MATERIALS RECOVERY FACILITY - At two previous meetings (9/6/94 and 10/4/94), Council discussed and approved a methodical approach for selection of an appropriate site for a transfer station with capacity for a future materials recovery facility (MRF). At the 10/4/94 meeting, staff was directed to continue a detailed evaluation of the top three sites by factoring in results of a public forum to be held on 10/20/94. The report describes the input from that meeting with the Chula Vista community and presents further recommendations. Staff recommends Council accept the report, concluding that the two final sites under consideration are located at 8SS Maxwell Road and 894 Energy Way, and direct staff to enter into negotiations with both property owners and report back with a single site recommendation. (Deputy City Manager Krempl) 13. REPORT UPDATE ON REGIONAL SEWER ISSUES - An oral report will be given by staff. ITEMS PUT .1.RO FROM THE CONSENT CALENDAR This is the time the CiIy Council wiU discuss items which hove been rtlmoved from the Consent Cakndar. Agenda items pulled at the rtlquest of the pubUc wiU be consiJlertld prior to those pulled by CouncUmembers. PubUc comments are Umited to five minutes per individual. Agenda -S- November 8, 1994 OTHER BUSINESS 14. CITY MANAGER'S REPORT/51 a. Scheduling of meetings. IS. MAYOR'S REPORT/51 16. COUNCIL COMMENTS Councilmember Moore a. Report from Subcommittee Member Moore 00 revisions to the B/C/C Attendaoce Policy. Agenda -6- November 8, 1994 CLOSED SESSION Unkss the City Anonuy, the City Maqtr or the City COUllcil _es otherwise ot this time, the Council wUl discuss and tleUberote on the foUowbag items of business which an permitted by law to be the subject of a clased sesslan discussWn, and which the Council is advised should be discussed in c1ased sesslan to best protect the interests of the City. The Council is required by law to return to open sessWlI, issue any reports of Ji!JIJl action taken in c1ased seSslall, and the WJles taken. However, due to the typicollength of time takell up by c1ased sessWlIS, the ritleotoping wUl be temtinated at this point in order to save costs so that the COUllcil's return from closed sessWlI, reports of Ji!JIJl action taken, and a4IOll1'tlm$nt wUl not be ritleotoped. Nevertheless, the report of final action takell wUl be recorded ill the minutes which wUl be aPOilable in the City Clerk's Olfice. 17. CONFERENCE WITH LEGAL COITNSRI. REGARDING: 1. Existing litigation pursuant to Government Code Section 54956.9 . Ten cities vs. the County of San Diego (trash litigation). 2. Anticipated litigation pursuant to Government Code Section 54956.9 . Significant exposure to litigation pursuant to subdivision (b) of Section 54956.9: 1. . City of Chula Vista vs. the County of San Diego (Daley Rock Quarry) regarding approval of a major use permit. . Metro Sewer Adjustment Billing (prospective arbitration). . City of Chula Vista vs. Solid Waste Management JPA (differential rate structure and transfer station legal issues). PUllLIC EMPLOYEE PERFORMANCE EVALUATION - Pursuant to Government Code Section 54957 . Title: City Attorney CONFERENCE WITH LABOR NEGOTIATOR - Pursuant to Government Code Section 54957.6 . Agency negotiator: John Goss or designee for CVEA, WCE, IAFF, Executive Management, Mid-Management, and Unrepresented. Employee organization: Chula Vista Employees Association (CVEA), Western Council of Engineers (WCE), and International Association of Fire Fighters (IAFF). Unrepresented employee: Executive Management, Mid-Management, and Unrepresented. 18. REPORT OF ACTIONS TAKEN IN CLOSED SESSION ADJOURNMENT The meeting will adjourn to (a closed session and thence to) the Regular City Council Meeting on November IS, 1994 at 6:00 p.m. in the City Council Chambers. November 3, 1994 TO: The Honorable Mayor and Cit~ Council /-.~ John D. Goss, City Manager --61. ~~ City Council Meeting of November 8, 1994 FROM: SUBJECT: This will transmit the agenda and related materials for the regular City Council meeting of Tuesday, November 8, 1994. Comments regarding the Written Communications are as follows: Sa. This is a letter from the City Attorney stating that there were no reportable actions were taken by the City Council at the closed session of November 1, 1994. IT IS RECOMMENDED THAT THIS LETTER BE RECEIVED AND FILED. Sh. This is a letter from Joseph Garcia regarding the City's policy on the use of sewer funds. THE CITY ATTORNEY HAS PREPARED AN OPINION, WHICH IS ATTACHED. A copy has been provided to Mr. Garcia. (Continued from the meeting of 11/1194). Also attached is information requested by you at the October 25, 1994 meeting regarding projects rmanced by sewer funds. It appears that the use of sewer funds is consistent with the legal opinion rendered by the City Attorney. Mr. Garcia has also been provided a copy of this memo. IT IS RECOMMENDED THAT MR. GARCIA'S LETTER BE RECEIVED AND FILED. JDG:mab I ~~0- ~ ~~~~ CllY OF CHULA VISTA OFFICE OF THE CITY ATTORNEY Date: November 3, 1994 From: The Honorable Mayor and City coufT_~ Bruce M. Boogaard, City Attorney~ Report Regarding Actions Taken in Closed Session for the Meeting of 11/1/94 To: Re: The city Attorney hereby reports to the best of my knowledge from observance of actions taken in the Closed Session in which the city Attorney participated, that there were no actions taken in the Closed Session of 11/1/94 which are required under the Brown Act to be reported. BMB:lgk C:\lt\clo8sess.no ~"I 276 FOURTH AVE/CHULA VISTA. CALIFORNIA 91910/(619) 691.5037 vvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvv - -- W-1t=~WB=M vvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvVVVVVVVVVVVVVVVVVVVVVVVVVVVVVV DEDICAfED fO GOVERNHENfAL, ENVIRONHENfAL, AND CONSUHER ISSUES JOSEPH W. GARCIA, FOUNDER fEL:I(619)420-2535 FAX:l(619)427-7553 November 8. 1994 The Hon. Tim Nader. Mayor City of Chula Vista 276 Fourth Avenue Chula Vista. ca 91910 Mayor Nader: Enclosed find my letter. with points and answers. to the City Attorney's. Mr. Boogaard. Esq. . letter of November 1st. current. which said letter of opinion was in answer to my letter to the City Council of date. OCtober 5. 1994. I am extremely appreciative of our City Attorney. Mr. Boogaard. Esq.. taking the time from his duties and very busy schedule. to compile an answer to my letter of inquiry. It is hoped that these communiques will bring about better government in this community. increase the respons~ ibility and awareness of our Adminis'trators. and pursue accountability by our Public Officials in all matter of civic government. ~-c...__ W. Garcia "The Peoples Lobby" Enclosures: Pages 1 thru 3 Attachment A copY/files/cga 56-/ Page one: THE FOLLOWING IS IN ANSWER TO SOME OF THE POINTS, IN MR. BOOGAARD'S LEGAL OPINION OF DATE NOVEMBER I, 1994, REFERENCE THE SEWER FUNDS OF THE CITY OF CHULA VISTA. II (A):Legitimate Purpose for Having Excess Cash. Answer: The City's Budget mandates, for the current fiscal year, should comply with the provisos of the City Charter, which is the Canon governing the administration of the business affairs of this community. Article X, Section 1005 of the City Charter, states: Budaet. Appropriations. From the effective date of the budaet. the several amounts stated therein as prooosed expenditures shall be and become appropriated to the several departments. offices and aaencies for the respective obiects and PurPOses therein named. All appropriations shall lapse at the end of the fiscal year to the extent that they shall not have been expended or lawfully encumbered except appropriations for specific capitol projects incomplete at the end of the fiscal Year. Comment by The People' s Lobby: The excessive accumulation of cash reserves in the various sewer accounts, indicates that the expenditures are far less than sewer fees collected, from the ratepayers of this community. The Fiscal Year 1994-95, General Fund Budget SummAry. indicates a potential transfer of funds from the sewer service fund to the General Fund for Sewer Service Supoort, which could mean any broad application. The amount indicated is $2,784,793.00. A substantial amount. If this amount has already been borrowed, then it must be repaid with interest accruing, said interest from the general fund itself. Sewer Service Support, has not been delineated in the General Fund, as a legitimate purpose fund. If the transfer is for sewer related work, then it should remain in that respective sewer account. (;b~d-- Cont'd. (2). Chula . Vista Ratepayers should not be subjected to a SHOTGUN RATB. predicated on a "just in case" approach to the budgetary procedure for that department. DIF Fees mitigate much of the expense for new and revised sewer work within the city. Any attempt by the City Administrators to. accelerate promptly. the payments on the outstanding loans to other departments from the Sewer Fees. does not in itself mitigate the policy and mindset of the city. in viewing the sewer fees as a FUND. from which to borrow money. You have but to look at the loans made in Fiscal Years 1991-92 and 1992-93. The 1991-92 loan was to Building & Housing for a Permit Tracking System. in the amount of $50.000.00. It is J..1!!2ortant to note. that this loan had a term payment of three fiscal years. with a final due date of 1994-95. The 1992-93 was a loan to the General Fund of the City. in the amount of $50.000.00. to upgrade the City's telephone system. . It is important to note,. that this loan was made with a final due payment date in Fiscal Year 1997-98. or Five Fiscal Years. It must be assumed that these time periods of these loans from the Sewer Fees, does not interfere with the liquidity of the Sewer Funds. for their intended use. which is to maintain and improve the sewer system of the city. In addition to the fact, that these loans bear testimony to the excess fees accumulated by the city, in the Sewer Funds. A conclusion to this practice should well be, that a "Fee is payment for special privelege or service rendered, and not REVENUE measure; and if "Elm" unreasonably exceeds value of specific services for which it is charged, it should be held invalid by the ratepayers. The mere fact that interest is paid on these inter- deparmental loans, does not mitigate or bestow royal rights, to City Administrators, to continue this practice, and more so, is the obligation by the City. to reduce the Sewer Fees to a proportionate amount, commensurate with the projected. Fiscal Year Budget, mandated by the State Constitution ahd the City Charter, after the City's Budget has been properly adjusted for that Department. 5b~3 Cont'd. (3). Reference is herein made. to the enclosure. attachment A. The Fiscal Year Budget. has it's place in the administration of the financial affairs of this city. as mandated by the Charter and the State Constitution. It's protocols are well defined. and the adherence to city policy. in preparing the annual Budget. should be in keeping with prudent financial measures supported by the taxpayers and ratepayers of this community. Enclosure. attachment A. Article XVI. section 8 of the State Constitution. defines Municipal Debt exceeding income. By that same protocol. neither should the City Administrators. inflate the Budget Amounts for any seament of the City's deDartments. in order to collect surplus funds from the ratepayers and/or taxDayers. It has to be illooal and a violation of the Fiduciarv responsibilities of the Council Members and DeDartment Head Administrators. to engage in subterfuge. for this stated puroose of collecting excess funds. fees or taxes. Article XVI. Section 6. deals with the TEMPORARY TRANSFER OF FUNDS. The KEY WORDS. in this article. are AS MAY BE NECESSARY FOR MAINTENANCE PURPOSES. It does not give the City permission to borrow monies. at random. for other purposes than for MAINTENANCE. and that is understandable due to possible emergencies such as natural disasters and other. non-natural disasters. Not a single one of the four loans to other departments of the city. mentioned in my letter of OCtober 5. 1994. were for maintenance or even maintenance related purposes. The City Administrators and Council. are in clear violation of proper management procedures in. inflating the Sewer Budget. borrowing from the sewer funds for non-maintenance related Purooses. collecting excess sewer taxes in the auise of FEES. and attempting to iustify these wrongs. to the rateDayers of this community. It is hoped that YOU will respond to these matters with responsibility and concern for the citizens of this commun- ity. 5h-0 vvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvVVVVVVVVVVVVVVVVVVVVVVVVVVVVVV DEDICATED TO GOVERNMENTAL. ENVIRONMENTAL. AND CONSUMER ISSUES JOSEPH Ii. GARCIA. FOUNDER TKL:I(619}420-2535 FAX:I(619}427-7553 REFERENCE: ATTACHMENT A. STATE CONSTITUTION ARTICLE XVI. SEC. 18 MUNICIPAL DEBT EXCEEDING INCOME WNO COUNTY. CITY. TOWN. TOWNSHIP, BOARD OF EDUCATION. OR SCHOOL DISTRICT. SHALL INCUR ANY INDEBTEDNESS OR LIABILITY IN ANY MANNER OR FOR ANY PURPOSE EXCEEDING IN ANY YEll.R THE INCOl1E AND REVENUE PROVIDED FOR SUCH YEAR. WITHOUT THE ASSENT OF TWO-THIRDS OF THE QUALIFIED ELECTORS THEREOF. VOTING AT AN ELECTION TO BE HELD FOR THAT PURPOSE.w STATE CONSTITUTION ARTICLE XVI, SEC1'ION 6 ........ TEMPORARY TRANSFER OF FUNDS TO POLITICAL SUBDIVISIONS 'AND PROVIDED STILL FURTHER, THAT NOTWITHSTANDING THE RESTRICTIONS CONTAINED IN THIS CONSTITUTION, THE TREASURER OF ANY' CITY', COUNTY, OR CITY AND COUNTY, SHALL HAVE POWER AND THE DUTY TO 1'1Al<E SUCH TEMPORARY TRANSFERS FROM THE: FUNDS IN CUSTODY AS MAY BE NECESSARY TO PROVIDE FUNDS FOR''MEETING THE OBLIGATIONS INCURRED FOR MAINTENANCE PURPOSES BY ^"Y CITY, COUNTY, CITY AND COUNTY, DISTRICT, OR OTHER POLITICAL SUBDIVISION WHOSE FUNDS ARE IN CUSTODY, AND ARE PAID OUT SOLELY THROUGH THE TREASURER'S OFFICE. SUCH TEMPORARY TRA1'lSFER OF FUNDS TO ANY POLITICAL SUBDIVISION SHALL BE MADE ONLY UPON RESOLUTION ADOPTED BY THE GOVERNING BODY OF THE CITY, COUNTY, OR CITY AND COUNTY DIRECTING THE TREASURER OF SUCH CITY, COUNTY, OR CITY AND COUNTY' TO l'IAl<E SUCH TEMPORARY TRANSFER. SUCH TEMPORARY TRA1'lSFER OF FUNDS TO ANY POLITICAL SUBDIVISION SHALL NOT EXCEED 85 PERCENT OF THE: ANTICIPATED REVENUES ACCRUING TO SUCII POLITICAL SUBDIVISION, SHALL NOT BE MADE PRIOR TO THE FIRST DAY OF THE FISCAL YEAR NOR AFTER THE LAST MONDAY IN APRIL OF THE CURRENT FISCAL YEAR, AND SHALL ,BE REPLACED FROM THE REVENUES ACCRUING TO SUCH PO~ITICAL SUBDIVISION BEFORE ANY OTHER OBLIGATIONS OF SUCH 'POLITICAL SUBDIVISION IS MET FROM SUCH REVENUE. 5bJ6 CityofChuJa Wsta MEMOR.ANDUM DATE: November 3, 1994 TO: The Honorable Mayor and City Council FROM: John D. G088, City Managerq SUBJECI': Projects Financed by Sewer Funds On October 25, 1994, in response to a written communication from Joseph Garcia, Council directed staff to prepare a listing of projects that have been funded with sewer funds and a justification as to why sewer funds have been used. This memorandum is in response to that directive. A copy of this memorandum has been provided to Mr. Garcia. The City Attorney is concurrently preparing a legal opinion as to the utilization of sewer funds. SEWER FUND LOANS/ADVANCES 1. GGl28-Telephone System Upgrades Includes a $50,000 loan from the Sewer Service Revenue Fund (225) (user derived) to the Telephone DIF (Fund 809). This loan was approved by Resolution 16984 dated 2/9/93. Approved as a five year loan with interest at 6.5% per annum, to be repaid from future Public Facilities DIF revenues. To date $12,031.73 ($8,781.73 principal and $3,250 interest) has been repaid. Justification. Thefiscal impact statement of the Council Agenda Statement authorizing this loan stated: "The Voice Mail System is part of, and intended to be fmanced from, the Telephone element of the Public Facilities Development Impact Fee ("Public Facilities DlF"). Sufficient funds have not yet been collected for the Public Facilities DIF to pay for the V oiceMail System. Therefore, staff is proposing that $50,000 be loaned from the Sewer Revenue Fund to the Public Facilities DIF Telephone Fund in order to cover the cost of the new system. The Sewer Revenue Fund will be paid back over a five-year period (through FY98), with interest at 6.5% per annum, from future Public Facilities DIF Revenue." At the time the loan was proposed, the Sewer Revenue Fund was selected as the loaning fund because it had the most discretionary funding available (that is the least immediate commitments) outside of the General Fund. Since the funds were to be utilized for the installation of a system to enhance productivity and !b-~ Projects Financed by Sewer Funds November 3, 1994 Page 2 service to the public during a period where service and workload demands were increasing and economic resources were decreasing, it was felt that a loan of this nature was a prudent fiscal option. 2. GGl23-Automated Permit Tracking System This project includes a $50,000 loan from the Sewer Revenue Fund (Fund 225) (user derived) to the Residential Construction Tax (RCf) fund. This loan and appropriation was approved by Council Resolution 16527 on 2/25/92. The loan was authorized to be repaid over a three year period with interest at 6.5%, with the provision that repayment could be accelerated if RCf revenues exceed expectation during one of the payback fiscal years. To date, $37,757.58 ($32,273.45 principal and $5,484.13 interest) has been repaid to the Sewer Service Fund. The final payment is scheduled to be made in February 1995. JlIstifiClition' According to the Council Agenda Statement requesting the appropriation of the sewer funds, the loan was required because the RCf fund did not have an adequate balance to appropriate the additional $50,000. The report further stated that "staff is proposing that the $50,000 be loaned from the Sewer Fund to RCf and be repaid (with interest) over a three year period, or sooner if revenues exceed expectations". It was initially envisioned that the permit tracking system would be purchased over several years (e.g. a lease/purchase arrangement). As this project and other automation related projects progressed it became apparent that considerable cost savings could be achieved if the projects were acquired and installed simultaneously. The Special Sewer Revenue Fund was selected as the loaning fund because it was a non- General Fund source of money from which financing for the permit tracking system could be obtained without negatively impacting sewer operations or maintenance. '- 3. ST123-0tay Valley Road Widening This project includes a $420,000 loan from the Trunk Sewer Capital Reserve Fund (Fund 222) to the As....-m"'llt District (which is to be repaid from future Transportation DIF to be collected for the Otay Ranch area) and a $1,161,000 "advance" from the Trunk Sewer Capital Reserve to front the monies to be received from the SB300 .5b...7 Projects Financed by Sewer Funds November 3,1994 Page 3 (Transportation Partnership Program) reimbursement program. 1 JU'ltification' The Trunk Sewer Capital Reserve (developer derived), was chosen as the loaning fund because it was a non-General Fund source of money from which a short term advance could be made. 4. SWII4-NIC Sewer Line In FY 1992, $42,852 from the Sewer Income Fund (220) was used to construct a capped sewer line to the Nature Interpretive Center. This project was approved and funds were appropriated as part of the FY 1992/93 Capital Improvement Program. The construction of this line was done in conjunction with the construction of the levy road by the Army Corps of Engineers so as to avoid disturbing the roadway and surrounding area at a later date. Justification' Subsequent to the construction of the sewer line and road project a Lease, Loan and Operating Agreement between the City and the Bayfront Conservancy Trust (Ber) was developed at Council's direction. In developing the Agreement it was deemed that several minor and majorClP projects fmanced with City and Agency funds should ultimately be paid for by the BCT. As a result of this determination the expenditure of the funds for the sewer line constituted a loan to the BCT. Upon adoption of the Agreement, all existing City and Agency "loans" to the BCT through June 30, 1993 to cover its minor and major ClPs were recognized. As of the adoption of the Agreement, the loans began accruing interest at 6.5% (the City's interest rate for FY 1992/93). The loan repayment schedule and terms are specified in said agreement. '$1,111,000 of these funds were expended between February and October ofthis year. To date the City (Trunk Sewer Capital Reserve Fund) has beeo reimbursed for approximately $1,103,000 of these funds. The balance of the restitution to Fund 222 will be made upon completion of the project. 51,...1 Projects Financed by Sewer Funds November 3, 1994 Page 4 DIRECT APPROPRIATIONS 5. In addition to the above referenced loans/advances the following capital projects are funded with various sewer funds as follows: Proiect Appropriations Available FY95 . Sewer Facility Replacement Funds (Fund 226) (Derived from a portion of the monthly sewer service charge) SWII0 and SWIIOB-Sewer Rehab Phase III SWl15-Sewer Rehab Phase V SW900-95/Sewer Rehab Annual Allocation $372,739 $343,440 $300,000 . Sewer Income Fund (Fund 220) (Developer Derived) GG137-Engineering Remodel $ 104 (Funds remaining in project represent the balance ofthe Sewer Section's Proportionate share of the department's remodeling project) . Special Sewer Fund (Fund 221) (Developer Derived) All of the following represent the sewer fund's proportionate share of the cost of each project. Proportionate costs are determined on a project by project basis based on the proportionate benefit to be received by each funding source. GGI04-Geographic Information System GGl23-Automated Permit Tracking GG129-Records Management Citywide GG143-Automated Budget System OnQO-Survey Monument Replacement $528,085 $ 10,000 $ 20,000 $ 10,064 $ 49,700 cc: Mr. Joseph Garcia John Lippitt Donna Snider Bob Powell fIles .5b-9 From the Office of the City Attorney City of Chula Vista Legal Opinion Date: November 1, 1994 From: Bruce M. Boogaard, City Attorney To: Honorable Mayor and Councilpersons cc: City Manager Finance Director Joseph Garcia Re: Authority for Interfund Loans The Council has referred Mr. Garcia's letter of October 5, 1994, attached, to my Office with a request for a legal opinion as to the legality of making interfund loans from excess cash in the various sewer accounts. I. Question Presented: Is it legal for the City, through the management of the general or other funds, to borrow monies in any of the sewer funds and put the proceeds of the loan to a use in another fund for a purpose other than that for which they were originally collected? II. Conclusion: Within the following constraints, the sewer fund may make interim interfund loans to other operating funds under the control of the City: A. Legitimate Purpose for Having Excess Cash. We have to have a legitimate sewer purpose for the excess cash. We can't charge more for the service than the cost of the operation. But that doesn't mean that if we have a legitimate purpose in building up a cash reserve, we have to allow the funds to stay idle. They can and should be invested to maximize purchasing power until sufficient funds are collected to do the project for which they were collected. The excess in the sewer funds should be created pursuant to a e:\sewer4.wp November 1, 1994 Interfund Loan Opinion Page 1 .5b -/0 financing plan intended to achieve the acquisition of capital facilities or other operating needs of the system. B. No Interest Subsidy. The interim borrowing should bear a fair market interest rate which is set in approximate relation to the risks associated with other investments in which the Fund might invest its excess cash. C. No Liquidity Interference The interim borrowing by other funds should not be structured with repayment dates that would, by.the lack of cash in the Sewer Fund, interfere with the legitimate sewer purpose for which the monies were originally collected. D. Low Risk of Default The risk of default on an interfund loan has to be of the same minimal quality we would expect from an investment by the investment pool. The risk should be separately assessed by the Council at the time the loan is being made. III. Analysis. Municipal interfund borrowing has not, by our research, been directly attacked. Specifically, there is no California statutory law, case law or attorney general opinion that we were able to find directly dealing with interfund borrowing or interfund transfers on point to guide us on the legality of this practice. There are indirect principles of law that govern our conclusion, as follows: A. The City Must Have a Legitimate Purpose for Having Excess Cash. Section 8 (c), a definition section, of Article XlIIB of the California Constitution creates the concept that an imposition of a fee in excess of the legitimate needs of a fund is in fact a special tax. W(c) wProceeds of taxesw shall include, but not be restricted to, all tax revenues and the proceeds to an entity of government, from (1) regulatory licenses, user charges, and user fees to the extent that those proceeds exceed the costs reasonably borne by that entity in providing the regulation, product, or service, . W e:\sewer4. wp November 1, 1994 Interfund Loan Opinion Page 2 5b - II .. Sec. 4 of Article XIIIA of the California Constitution requires that all such taxes be imposed by a 2/3rds vote of the public. Cities, counties and special districts, by a two-thirds vote of the qualified electors of such district, may impose special taxes on such district, except ad valorem taxes on real property or a transaction tax or sales tax on the sale of real property within such City, County or special district. The concept that a fee designed to collect revenue in excess of expected costs of operation is a tax has gotten into the state legislation: "Sec. 50076. Definition As used in this article, "special tax" shall not include any fee which does not exceed the reasonable cost of providing the service or regulatory activity for which the fee is charged and which is not levied for general revenue purposes." In City of Dublin v. County of Alameda, 14 CaI.App.4th 264, a California Court of Appeal decision out of the First District (ours is the Fourth District), the City of Dublin opposed the imposition of a trash tipping fee surcharge of $6 per ton to fund a recycling program. The City's attack was based, in part, on the contention that the fee would have produced revenues in excess of the cost of the recycling program, and hence was a tax in violation of Section 4 of Article XIIIA, cited above. The Appellate Court captured the state of the law that a fee in excess of the cost for the service was a tax needed 2/3rds vote to be legal: "Although the section uses pe.rmissive language, the supermajority voter approval requirement [of Article XIIIA, Section 4, cited above] was intended to restrict the taxing power of local government. ~ider v. County of San Die~o (1991) I CaI.4th 1,5-6, 2 CaI.Rptr.2d 490, 820 P.2d 1000.) Special taxes must be distinguished from regulatory fees imposed under the police power, which are not subject to the constitutional provision. (Pennell v. City of San JIB (1986) 42 CaI.3d 365, 374-375, 228 CaI.Rptr. 726, 721 P.2d 1I1I.) Special . taxes do not encompass fees charged to particular individuals in connection with regulatory activities or services when those fees do not exceed the reasonable cost ofprovidin~ the service or activity for which the fee is char~ed. and are not levied for unrelated revenue numoses. (Gov. Code, Sec. 50076; Pennell v. City of San JIB, supra, at p. 375, 228 CaI.Rptr. 726, 721 P.2d IIII [fee on rental units to defray costs of administrative hearing process under rent control ordinance]; United Business Com. v. City of San Diel!o (1979) 91 CaI.App.3d 156, 164-165, e:\sewer4.wp November I, 1994 Interfund Loan Opinion Page 3 5b -/Z 154 Cal.Rptr. 263 [fee on existing signs to recover costs of administering sign control ordinance]; Millsv. C<)unty ofTrinity(1980) 108 Cal.App.3d 656, 660-663, 166 Cal.Rptr. 674 [fee for processing various land-use applications].)" Hence, it would be improper to charge a sewer fee which would generate more funds than necessary to pay for the cost of operating, expanding or maintaining the sewage system, for the purpose of creating excess cash to loan to the general or other funds for the purpose of financing general government functions. B. Interfund Loaning is in part Constrainted by State Law Investment Policy. Section 504 (h) of the Charter authorizes the Finance Director to assume 'custody of all public funds belonging to or under the control of the City or any office, department or agency of the City government and deposit all funds in such depository as may be designated by resolution of the Ciyt Council, or ifno such resolution be adopted, by the City Manager, and in compliance with all the provisions of the State Constitution and the laws of the State governming the handling, depositing and securing of public funds; .. . The state law to which our Charter makes reference includes the investment standards set forth in Government Code Section 53601 and 53635 ("Permissible Investments for Local Agencies") and Civil Code Section 2261 ("Prudent Person Rule"). Both standards are generally the samel' and include such safe, low risk, liquid investments as Federal Government-issued debt instruments (U.S. Treasury Bills), State Government-issued debt instruments, "Triple A-rated" commercial debt instruments, and bank accounts. Section 53635, entitled "Funds of local agency; investment in the notes, warrants, and other evidence agency: deposit or investment", permits of indebtness of a local public . As far as possible, all money belonging to, or in the custody of, a local agency, including money paid to the treasurer or other officialto pay the principal, interest, or penalties of bonds, shall be deposited for safekeeping in state or national banks ... in this state selected by the treasurer or other official having the 1. Except that a City Council is granted a little more latitude than a City TreasurerlFinance Director. Compared Exhibit A to Exhibit B. e:\sewer4.wp November 1, 1994 Interfund Loan Opinion Page 4 5h -/3 legal custody of the money; or, unless otherwise directed by the legislative body pursuant to Section 53601, may be invested in the following: (a) Bonds issued by the local agency, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency or by a department, board, agency, or authority of the local agency. (d) Bonds, notes, warrants, or other evidences of indebtedness of any local agency within this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency." Investing the excess cash from the sewer fund into other governmental funds of the City is, without the normal formality of executing notes, issuing bond indentures, or getting statement from a common investment pool, such as the State managed Local Agency Investment Fund, identical to an interfund loan to ourselves, as long as it bears approximately similar interest for approximately similar risk, and has the other "earmarkings" of an arm's length transaction. C. The Interfund Loan Must Bear Interest and Otherwise Appear Like an Arms' Length Transaction. However, since the authority to engage in interfund loaning is grounded in the need to generate interest on temporarily idle cash, it would be inappropriate that one fund resources are used to subsidize another funds efforts. The lending fund must receive fair market interest without undue risk. While I have searched for but not found a case on point, I feel very comfortable in asserting the principal that a trustee of various funds, such as a municipal government, may not use the proceeds of one enterprise fund to subsidize (i.e., without receive consideration of equivalent value--quid pro quo) the operations of another fund, including the general fund. Hence, the authority to engage in interfund loaning, e.g., from the sewer fund to another governmental fund managed by the City of Chula Vista, is that it must bear a fair market interest approximately similar to the interest we would receive from a similar investment in the bonds or security of another public agency for a similar risk. e:\sewer4. wp November I, 1994 Interfund Loan Opinion Page 5 5b -/tf -,D i Furthermore, the Interfund Loan transaction should have as much formality as possible to preserve the public record that the transfer is in fact an interest-bearing loan at a fair market interest rate. My recommendation is that the Council should approve all such loans in public meetings by written resolutions which bear the interest rate, or formula interest rat~l, and stating a given due date.ll A lesser, but still acceptable practice, would be for the Finance Director, who is by our Charter vested with investment authority over surplus cash, to memorialize the loan by a written and fully executed note from the sewer fund to the borrowing fund. D. No Liquidity Interference Part ofthe important earmarkings of an arm's length loan which we would require when investing our cash in a non-City managed investment is a fixed term of borrowing. As an investor in outside investments, we would select an investment term based on our liquidity needs. Furthermore, in order to justify having excess cash in the first place is a need to spend it on a specific project at a planned point in time. Thus, the interim borrowing by other funds should not be structured with repayment dates that would, by the lack of cash in the Sewer Fund, interfere with the legitimate sewer purpose for which the monies were originally collected. Therefore, an additional constraint on the practice of interfund loaning is fixing, by a formal act, a due date for the repayment, and determining, based on sound accounting and financial practices and projections, that there will sufficient funds to repay the interfund loan on the date set. E. Low Risk of Default The prime authority that permits interfund loans is the state law investment policy. The thrust of Government Code Section 53635 is that public funds may only be invested in low risk securities. Hence, while we may be able to avoid much of the formality and issuance costs associated with investments in other cities' bonds by interfund loans, we should not avoid the trust-type duty to assess the risk of default by the interfund borrower due to lack of liquidity or insufficient funds for repayment. 2. It has been a usual practice of the City to pay the simple average monthly interest earnings on all interfund loans during the period of the loan. 3. This is to show that we willbe avoiding liquidity interference, discussed below. e:\sewer4. wp November 1, 1994 Interfund Loan Opinion Page 6 5b -1.5 ., , CITY COUNCIL AGENDA STATEMENT O,?\\~ Item , ~\) r>-Q Meeting Date 11 ITEM TITLE: II. ORDINAN.G~~B" Establl.~~nd Amending Certain Time Limp'i'Win the BaYfront~e&Mopment Plan 6. ORDlNANcr;.,,~f Establis!:\i~nd Amending Certain Time Limita~R the Town Cenlre~hvelopment Plan r>-~\> G. ORDINANCE ~~'tf1 Establisl:li~nd Amending Certain Time Limitati~ t'R';'Town Centre(>tt>eilMvelopment Plan $<f:j r>-~\) ]). ORDINANCE .2"'* Establishi~lt\ and Amending Certain Time . Limitatio~tRHlt~y Valley Ro~~elopment Plan $'t.C r>-Q ~. ORDINANCE .l "'~<:..~ r>-~~stablishing and Amending Certain Time Limitations ~ ~~uthwest Redevelopment Plan $'t.CO~ SUBMITTED BY: Community Development Director (, fz,A REVIEWED BY: City Manage~ ~~ 14/5ths Vote: Yes No Xl ~ - BACKGROUND: The purpose of these Or mances is to amend all of the City's Redevelopment Plans to incorporate certain time limits mandated by AB 1290 (and further refined in 5B 732). These time limits pertain to the establishment of indebtedness, effectiveness of Redevelopment Plans and repayment of indebtedness. The legislation requires that a Redevelopment Plan which either lacks the required time limits or which contains time limits in excess of the maximums established by AB 1290 must be amended by ordinance before the end of the calendar year to bring the plan into cOflformity with these requirements. & 1:li)J! There is nothing in the new regulation restricting the Agency from designating new project areas except that it will be more difficult to qualify new project areas undllr new blight criteria. RECOMMENDATION: That the Council adopt the first reading of the ordinances amending the ~edevelopment Plan to conform to the requirements of AB 1290 BOARDS/COMMISSIONS RECOMMENDATION: The OtayValley Road and Town Centre PACs have been advised of this action. DISCUSSION: In an effort to limit the fiscal impacts of redevelopment upon other taxing jurisdictions, the legislature incorporated certain time limitations pertaining to establishing and repaying debt and the effectiveness of Redevelopment Plans in AS 1290 which was signed into law and became effective on January 1, 1994. These limitations include the following (per Section 33333.6 of the Health and Safety Code): 1 . A time limit of 20 years from the adoption of the Redevelopment Plan, or until January 1, 2004, whichever is later, for the establishment of loans, advances, and ~ 6--/ Page 2, Item /Y Meeting Date 11/01/94 indebtedness. This time limit may be extended by amendment of the Plan after the Agency finds that significant blight remains which cannot be eliminated without additional debt. The amended time limit may not exceed 10 years from the limit established by this situation or the expiration of the Redevelopment Plan. whichever is earlier. 2. The expiration date of every Redevelopment Plan shall not exceed 40 years from the adoption date, or January 1, 2009. whichever is later. After the expiration date, the Agency shall have no authority to act pursuant to the plans except to pay previously incurred indebtedness and to enforce existing covenants, contracts, or other obligations. 3. Subject to specific exceptions for pre-existing obligations, a redevelopment agency shall not pay indebtedness or receive property taxes after 10 years from the termination of the effectiveness of the redevelopment plan. Unless redevelopment plans adopted p~ior to January 1. 1994 contain all of these provisions. the City Council, acting by ordinance. must amend the plans prior to December 31, 1994. Chula Vista has five redevelopment plans, all adopted prior to January 1, 1994. All of the plans will require amendment as further described below: TIME LIMIT TO TIME LIMIT TO TERMINATION OF PROJECT AREA ESTABLISH DEBT REPAY DEBT PLAN EFFECTIVENESS BA YFRONT PLAN July 16. 1999 No Limit Ordinance 1541 Second Reading passed and adopted 7/16/74. Expires in 25 years (1999) Required Amendment Not AppUceble 1 0 years after termination Can be extended to 40 years of Redevelopment Plan, through full plan amendment which Is July 16. 2009 orocess to Year 2014. TIME LIMIT TO TIME LIMIT TO TERMINATION OF PROJECT AREA ESTABLISH DEBT REPAY DEBT PLAN EFFECTIVENESS TOWN CENTRE I PLAN July 6, 2001 No Limit Ordinance 1691 Second Reading passed and adopted 7/6/76. Expires in 25 years (2001). Required Amendment Not Applicable 10 years after termination Can be extended to 40 years of Redevelopment Plan, through full plan amendment which Is July 6, 2011 nrocess to Year 2016. ~ 6r-cA Page 3. Item ./1/ Meeting Date 11/~ TIME LIMIT TO TIME LIMIT TO TERMINATION OF PROJECT AREA ESTABLISH DEBT REPAY DEBT PLAN EFFECTIVENESS TOWN CENTRE II Life of the No Limit Ordinance 1827 ORIGINAL PROJECT Redevelopment Plan Second Reading passed and AREA adopted 7/15/78. Amended in 1987 and expires in 45 years from 1987, or Year 2032. Required Amendment Later of 20 years after 1 0 yeers after termination For original project area. 40 Plan adoption. or Year of Redevelopmant Plan, years from 1978. or Year 2004 which Is July 15. 2028 2018. TOWN CENTRE II Life of Redevelopment No Limit Ordinance 2274 AMENDMENT TO PLAN Plan Second Reading passed and TO ADD TERRITORY adopted 7/19/88. Expires in Year 3032. Required Amendment Later of 20 years after 10 years after termination F!lr 1988 amendment to add Plan adoption, or Yaar of Redevelopment Plan. territory to project area. 40 20081 which Is July 19. 2038 years from 1988, or Year 2028. TIME LIMIT TO TIME LIMIT TO TERMINATION OF PROJECT AREA ESTABLISH DEBT REPAY DEBT PLAN EFFECTIVENESS OTAY VALLEY ROAD No Limit No Limit Adopted 1983. Plan runs 45 PLAN years to 2028. Ordinance 2059 Second Reading passed and adopted 12/20/83 Required Amandmant Later of 20 years after 1 0 years aftar termination 40 years (to 2023). Plan adoption. or Year of Redevelopment Plan. 2004 which is December 20. 2033 ~ ~-;J Page 4. Item -Li.. Meeting Date 11/01/94 TIME LIMIT TO TIME LIMIT TO TERMINATION OF PROJECT AREA ESTABLISH DEBT REPAY DEBT PLAN EFFECTIVENESS SOUTHWEST PLAN 30 Years No Limit Adopted 1990. Plan runs 40 Ordinance 2420 years to 2030. Second Reading passed and adopted 11/27/90 Required Amendment 20 years after Plan 10 yaars after termination Not applicable. adoption. or Yaar of Radavalopmant Plan, 2004 which is Novembar 27. 2040 The ordinances amend each of the five redevelopment plans as indicated above to be in compliance with State Law. Although the Bayfront and Town Centre I projects have a duration of 25 years and the law allows up to 40 years. the duration cannot be extended by ordinance action. It can be extended through the normal plan amendment process which is contemplated for the Bayfront/Town Centre as part of the Midbayfront Development Project. The duration of projects can be shortened. however, by ordinance action which is proposed for Town Centre II and Otay Valley Road which currently have 45 year durations. These amendments must be approved by the end of the year to be in compliance with the law. Since these actions do not constitute a "project" under CEQA, they are categorically exempt from environmental review. FISCAL IMPACT: The proposed amendments will impact the Agency's ability to establish and repay additional debt as described below. Time Limit to Establish Debt Time limits for the Bayfront and Town Centre I Project Areas were set by Ordinance 2146 in 1986 as follows: Bayfront. Year 1999; Town Centre I. Year 2001. Although the recent changes in the Law will allow these limits to be extended to 2004. this can only be accomplished through the full plan amendment process. Town Centre II (the original project area) will have until 2004. The territory added in 1988, can establish debt until 2008. Otay Valley Road can be extended to 2004, and Southwest to 2010. These limits can be extended by amendment of the Redevelopment Plan if the Agency determines that significant blight cannot be eliminated without additional debt. This finding can be made when the l3ayfront Plan is amended. Although additional tax increment bond issues are not anticipated at this time. this limitation would also restrict loans and advances from the City which may be necessary for the Bayfront to offset the current deficit. ~~-'I Page 5, Item IJ/ Meeting Date 11/01/94 Time Limit to Recav Debt Aside from advances and loans from the City to all of the projects, the Bayfront is the only project with outstanding bond indebtedness (tax increment bonds). Without a plan amendment, any newly issued bonds would have to be paid off by 2009. The pending bonds were authorized prior to January 1, 1994 -- they fall under the exemption provided by Section 33333. 6 (h) and could be for a longer duration. By amending the plan to extend the duration to 40 years (2014), the payback period will be extended to 2024. Limitina the Duration of Redevelocment Plans to 40 Years Bayfront and Town Centre both have 25 year duration which may be extended to 40 years by amending the Redevelopment Plan through the normal amendment process. Town Centre II and Otay Valley Road have 45 years duration which must be reduced to 40 years, thereby reducing the number of years each project will be eligible to receive tax increments and repay debt. Southwest, with a duration of 40 years, will not be affected. IBB\C:\WP51 ICOUNCILI 113S\lMPLAN-l 1131 ~h~5 c.o' r\\O~ ORDINANCE .l4>~ 0 ~'i)O~ ~~'i) AN ORDINANCE OF THE CITY OF CHULA VISTA. CALlFORN)~~ABLISHING AND AMENDING CERTAIN TIME LIMITATIONS WITH RESPECTTW~DEVELOPMENT PLAN FOR THE BAYFRONT REDEVELOPMENT PROJECT ~~'" WHEREAS. the City Council of the City of Chula Vista placed on Second Reading and adopted Ordinance No. 1541 on July 16. 1974. approving and adopting the Redevelopment Plan (the "Redevelopment Plan") for the Bayfront Redevelopment Project; and WHEREAS. the Redevelopment Agency of the City of Chula Vista (the" Agency) has been designated as the official redevelopment agency to carry out in the City of Chula Vista the functions and requirements of the Community Redevelopment Law of the State of California (Health and Safety Code Section 33000 et seq.) and to implement the Redevelopment Plan; and WHEREAS. Section 33333.6 of the Community Redevelopment Law established certain limitations on the incurring and repaying of indebtedness and the duration of redevelopment plans, which limitations apply to every redevelopment plan adopted on or before December 31,1993; and WHEREAS. Section 33333.6 further provides that unless a redevelopment plan adopted prior to January 1. 1994 already contains limitations which comply with that Section. the legislative body shall adopt an ordinance on or before December 31. 1994 to amend the Redevelopment Plan either: (1) to amend an existing time limit that exceeds the applicable time limits of that Section; and or (2) to establish time limits that do not exceed the provisions of that Section, and WHEREAS. the time limit for establishing loans, advances, and indebtedness for the Redevelopment Plan was established by Ordinance 2146 (placed on Second Reading and adopted April 22. 1986) as July 16, 1999. This does not exceed the time limit established by Section 33333.6(8). and therefore no amendment is required relative to such limitation; and WHEREAS. the time limit on the effectiveness of the Redevelopment Plan, as set forth in the Redevelopment Plan, is July 16, 1999. (twenty-five [25] years from the effective date of adoption of the Plan). does not exceed the time limit established by Section 33333.6(b), and therefore no amendment is required relating to such limitation; and WHEREAS. the Redevelopment Plan as amended does not contain a limitation for the repayment of debt as required by Section 33333.6 and, therefore the City Council is required to establish a limit in conformance with the requirements of Section 33333.6 prior to December 31, 1994; and WHEREAS. the establishment of time limits as required by Section 33333.6 does not constitute a project under California Environmental Quality Act and is therefore categorically exempt from environmental review; and WHEREAS, Health and Safety Code Section 33333.6(e)(2) provides that the limitations established by this Ordinance shall apply to the Redevelopment Plan as if the Redevelopment Plan had been amended to include these limitations; however, neither the City nor the Agency is required to comply with any of the procedural requirements of Article 12 of the Redevelopment Law pertaining to the amendment of redevelopment plans when adopting this Ordinance. I~ &/J~/ Ordinance xxxx Page 2 NOW THEREFORE. THE CITY COUNCil OF THE CITY OF CHUlA VISTA DOES HEREBY ORDAIN AS FOllOWS: Section 1. The Section of the Bayfront Redevelopment Plan entitled Methods for Financing the Project. subsection entitled Tax Increments is hereby amended by adding the following: Except as expressly authorized by Health and Safety Code Section 33333.6 or other provisions of Community Redevelopment Law. the Redevelopment Agency shall not pay indebtedness or receive property taxes pursuant to Section 33670 of the Health and Safety Code after ten (10) years from the termination of the effectiveness of the Redevelopment Plan. Based upon the termination date set forth in the Redevelopment Plan. the Agency shall not pay indebtedness or receive property taxes pursuant to Section 33670 after July 16. 2009. Section 2. The City Clerk is hereby directed to send a certified copy of this Ordinance to the Agency Section 3. Effective Date. This Ordinance shall be in full force and effect thirty (30) days after its passage. Section 4. Publication. The City Clerk is hereby ordered and directed to certify to the passage of this Ordinance and to cause the same to be published once in the Star News, a newspaper of general circulation, published and circulated in the City of Chula Vista, California. Section 5. Severabilitv. If any part of this Ordinance is held to be invalid for any reason, such decision shall not affect the validity of the remaining portion of this Ordinance, and this City Council hereby declares that it would have passed the remainder of this Ordinance, if such invalid portion thereof had been deleted. PASSED AND ADOPTED this day of November 1994, by the following vote: PRESENTED BY: APPROVED AS TO FORM BY: ~~ ~beY Ansel ~ Chris Salomone Community Development Director [C:IWP51ICOUNCILIRESOSIORD-XXX1.0RDI ~?~-2/ (,1'1-5 .21,P9 ORDINANCE xxxx o~j.\O~ AN ORDINANCE OF THE CITY OF CHULA VISTA. CALIFORNIA._A~ISHING AND AMENDING CERTAIN TIME LIMITATIONS WITH RESPEC~IfEREDEVELOPMENT PLAN FOR THE TOWN CENTRE I REDEVELOPM~ ~ECT ,<-r.O . ~? WHEREAS. the City Council of the City of Chula Vista placed on Second Reading and adopted Ordinance No. 1691 on July 6. 1976 approving and adopting the Redevelopment Plan (the "Redevelopment Plan") for the Town Centre Redevelopment Project; and WHEREAS. the Redevelopment Agency of the City of Chula Vista (the "Agency") has been designated as the official redevelopment agency to carry out in the City of Chula Vista the functions and requirements of the Community Redevelopment Law of the State of California (Health and Safety Code Section 33000 et seq.) and to implement the Redevelopment Plan; and WHEREAS. Section 33333.6 of the Community Redevelopment Law established certain limitations on the incurring and repaying of indebtedness and the duration of redevelopment plans. which limitations apply to .every redevelopment plan adopted on or before December 31. 1993; and WHEREAS. Section 33333.6 further provides that unless a redevelopment plan adopted prior to January 1. 1994 already contains limitations which comply with that Section. the legislative body shall adopt an ordinance on or before December 31, 1994 to amend the redevelopment plan either (1) to amend an existing time limit that exceeds the applicable time limit established by that Section, or (2) to establish time limits that do not exceed the provisions of that Section, and WHEREAS. the time limit for establishing loans, advances. and indebtedness was established by Ordinance 2146 (placed on Second Reading and adopted April 22, 1986) as July 6, 20.0.1 and does not exceed the time limit established by Section 33333.6(8), and therefore no amendment is required relative to such limitation; and WHEREAS. the time limit on the effectiveness of the Redevelopment Plan, as set forth in Section 1000 of the Redevelopment Plan. currently scheduled to terminate on July 6, 20.0.1 twenty-five (25) years from the date of adoption of the plan. does not exceed the time limit established by Section 33333.6(b), and therefore no amendment is required. relating to such limitation, and WHEREAS. the Redevelopment Plan as amended does not contain a limitation for the repayment of debt as required by Section 33333.6 and, therefore the City Council is required to establish a limit in conformance with the requirements of Section 33333.6 prior to December 31, 1994; and WHEREAS. the establishment of time limits as required by Section 33333.6 does not constitute a project under California Environmental Duality Act and is therefore categorically exempt from environmental review; and WHEREAS. Health and Safety Code Section 33333.6(e)(2) provides that the limitations established by this Ordinance shall apply to the Redevelopment Plan as if the Redevelopment Plan had been amended to include these limitations; however. neither the City nor the Agency is required to comply with any of the procedural requirements of Article 12 j!IEf7 ~6~ ) ') Ordinance xxxx Page 2 of the Redevelopment Law pertaining to the amendment of redevelopment plans when adopting this Ordinance. NOW THEREFORE, THE CITY COUNCil OF THE CITY OF CHUlA VISTA DOES HEREBY ORDAIN AS FOllOWS: Section 1. Section 1000 of the Town Centre I Redevelopment Plan is hereby amended by adding the following paragraph: Section 1000. Effectiveness Period 1000.2 Except as expressly authorized by Health and Safety Code Section 33333.6 or other provisions of Community Redevelopment Law, the Redevelopment Agency shall not pay indebtedness or receive property taxes pursuant to Section 33670 of the Health and Safety Code after ten (10) years from the termination of the effectiveness of the Redevelopment Plan as modified by Section 2 of this Ordinance, except as otherwise authorized, the Agency shall not pay indebtedness or receive property taxes after July 6, 2011. Section 2. The City Clerk is hereby directed to send a certified copy of this Ordinance to the Agency. Section 3. Effective Date. This Ordinance shall be in full force and effect thirty (30) days after its passage. Section 4. Publication. The City Clerk is hereby ordered and directed to certify to the passage of this Ordinance and to cause the same to be published once in the Star News, a newspaper of general circulation, published and circulated in the City of Chula Vista, California. Section 5. Severabilitv. If any part of this Ordinance is held to be invalid for any reason, such decision shall not affect the validity of the remaining portion of this Ordinance, and this City Council hereby declares that it would have passed the remainder of this Ordinance, if such invalid portion thereof had been deleted. PASSED AND ADOPTED this day of November 1994, by the following vote: PRESENTED BY: APPROVED AS TO FORM BY: ~~ Chris Salomone Community Development Director ~-<-7~~_' ~ "" M B ::~ - cc- -Gr IC:\ WP5 1 \COUNCIL\RESOS\ORO-XXX4.0RDI ~ t,!hAj /,f3-3 "1(.' v" ~61U ORDINANCE xxxx r'\\~ I>.QO?/ AN ORDINANCE OF THE CITY OF CHULA VISTA, CALIFORNIA, E_BLTSHING AND AMENDING CERTAIN TIME LIMITATIONS WITH RESPECT.~IfREDEVELOPMENT PLAN FOR THE TOWN CENTRE II REDEVELOPME~Oflllij'jt:CT ~'V;.CO WHEREAS, the Redevelopment Agency of the City of Chula Vista placed on Second Reading and adopted Ordinance 1827 on August 15. 1978 approving and adopting the Redevelopment Plan (the "Redevelopment Plan") for the Town Centre II Redevelopment Project; and WHEREAS, the Redevelopment Agency of the City of Chula Vista (the" Agency") has been designated as the official redevelopment agency to carry out in the City of Chula Vista the functions and requirements of the Community Redevelopment Law of the State of California (Health and Safety Code Section 33000 et seq.) and to implement the Redevelopment Plan; and WHEREAS, the Redevelopment Plan was amended in May 1987 to incorporate the authority to collect tax increment revenues, and amended a second time in June 1988 to add territory; and WHEREAS, Section 33333.6 of the Community Redevelopment Law established certain limitations on the incurring and repaying of indebtedness and the duration of redevelopment plans, which limitations apply to every redevelopment plan adopted on or before December 31, 1993; and WHEREAS, Section 33333.6 further provides that unless a redevelopment plan adopted prior to January 1. 1994 already contains limitations which comply with that Section, the legislative body shall adopt an ordinance on or before December 31, 1994 to amend the redevelopment plan either (1) to amend an existing time limit that exceeds the applicable time limit established by that Section, or (2) to establish time limits that do not exceed the provisions of that Section; and WHEREAS, the time limit for establishing loans, advances, and indebtedness for the original Redevelopment Plan (Ordinance 1827 adopted 8/15/78) and the Amendment to the Plan adding territory (Ordinance 2274 adopted July 19, 1988) do not comply with the requirements established Section 33333.6(8), and therefore the City Council is required to establish a limit in conformation with the requirements of Section 33333.6 prior to December 31,1994; and WHEREAS, the original Redevelopment Plan and the Amendment to the Plan adding territory do not contain a limitation for the repayment of debt as required by Section 33333.6 and. therefore the City Council is required to establish a limit in conformance with the requirements of Section 33333.6 prior to December 31, 1994; and WHEREAS, the time limit on the effectiveness of the original Redevelopment Plan and the Amendment to the Plan adding territory, as set forth in the Redevelopment Plan, do not comply with the requirements established in Section 33333.6(8), and therefor the City Council is required to establish a limit in conformation with the requirements of Section 33333.6 prior to December 31. 1994, and ~&L~/ Ordinance xxxx Page 2 WHEREAS. the establishment of time limits as required by Section 33333.6 does not constitute a project under California Environmental Quality Act and is therefore categorically exempt from environmental review; and WHEREAS, Health and Safety Code Section 33333.6(e)(2) provides that the limitations established by this Ordinance shall apply to the Redevelopment Plan as if the Redevelopment Plan had been amended to include these limitations; however. neither the City nor the Agency is required to comply with any of the procedural requirements of Article 12 of the Redevelopment Law pertaining to the amendment of redevelopment plans when adopting this Ordinance. NOW THEREFORE. THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Section 750.3 of the Town Centre II ~edevelopment Plan is hereby amended by replacing the existing Section with the following paragraphs: The time limit on the establishment of loans, advances, and indebtedness shall not exceed 20 years from the adoption of the original Redevelopment Plan or January 1, 2004, whichever is later and for the Amendment to the Plan adding territory shall not exceed 20 years from said adoption of the Amendment or January 1, 2004, whichever is later. Based upon the adoption date of the original Redevelopment Plan this time limit shall be January 1, 2004; and, based upon the adoption date of the Amendment to the Plan adding territory this time limit shall be July 19, 2008. This limit, however, shall not prevent redevelopment agencies from incurring debt to the paid from the Low- and Moderate-Income Housing Fund or establishing more debt in order to fulfill the Agency's housing obligations under Section 33413. The time limits established by this subdivision may be extended only by amendment of the Redevelopment Plan in accordance with Community Redevelopment Law. Section 2. Section 700.32 is hereby amended by adding the following paragraph at the end of the Section. Except as expressly authorized by Health and Safety Code Section 33333.6 or other provisions of Community Redevelopment Law, the Redevelopment Agency shall not pay indebtedness or receive property taxes pursuant to Section 33670 of the Health and Safety Code in that portion of the project area included within the original Redevelopment Plan after ten (10) years from the termination of the original Redevelopment Plan. Based upon the termination date of the original Redevelopment Plan as amended by Section 3 of Ordinance . except as otherwise authorized, the Agency shall not pay indebtedness or receive property taxes in that portion of the project area included in the original project area after August 15, 2028. ~ GC-d-.- Ordinance xxxx Page 3 Except as expressly authorized by Health and Safety Code Section 33333.6 or other provision of the Community Redevelopment Law, the Redevelopment Agency shall not pay indebtedness or receive property taxes pursuant to Section 33670 of the Health and Safety Code in that portion of the project area added to the project area by the 1988 amendment to the Redevelopment Plan after ten (10) years from the termination of the amendment to the Redevelopment Plan. Based upon the termination date of the 1988 amendment to the Redevelopment Plan as amended by Section 3 of Ordinance No. . except as otherwise authorized, the Agency shall not pay indebtedness or receive property taxes in that portion of the project area added to the project area by the 1988 amendment to the Redevelopment Plan after July 19, 2038. Section 3. Section tOOO of the Town Centre II Redevelopment Plan is hereby deleted in its entirety and replaced with the following: Section 1000. Effectiveness Period 1000.1 Except for the nondiscrimination and nonsegregation provisions, which shall run in perpetuity, the provisions of the original Plan and the Amendment to the Plan adding territory shall be effective and the provisions of other documents formulated pursuant to the original Plan and Amendment to the Plan may be made effective for forty (40) years from the date of the adoption of the original Plan and the Amendment to the Plan adding territory by the City Council. Based upon the adoption date of the original Plan, the original Plan shall terminate on August 15, 2018. Based upon the effective date of the Amendment to the Plan adding territory, the Amendment to the Plan shall terminate on July 19, 2028. Unless projects contemplated under the Redevelopment Plan are undertaken within ten (10) years of the date of the adoption or amendment of the Redevelopment Plan, respectively, then said projects shall not be undertaken thereafter unless a public hearing is conducted by the Redevelopment Agency to consider the desirability of undertaking the proposed projects in light of conditions as they then exist. Section 4. The City Clerk is hereby directed to send a certified copy of this Ordinance to the Agency. Section 5. Effective Date. This Ordinance shall be in full force and effect thirty (30) days after its passage. Section 6. Publication. The City Clerk is hereby ordered and directed to certify to the passage of this Ordinance and to cause the same to be published once in the Star News. a newspaper of general circulation. published and circulated in the City of Chula Vista, California. Section 7. Severabilitv. If any part of this Ordinance is held to be invalid for any reason, such decision shall not affect the validity of the remaining portion of this Ordinance. and this City Council hereby declares that it would have passed the remainder of this Ordinance, if such invalid portion thereof had been deleted. plC-:Y 6C-;J Ordinance xxxx Page 4 PASSED AND ADOPTED this vote: PRESENTED BY: ~~ Chris Salomone Community Development Director IC:\ WP51 \COUNCIL\RESOS\ORD-XXX5 .ORDI day of November 1994, by the following APPROVED AS TO FORM BY: ~ ac-{ bC-.5 ~ 4,\ .1.4>JI ORDINANCE XXXX ~N.. ~\VV AN ORDINANCE OF THE CITY OF CHULA VISTA, CALIFORNIA, ESTABLISHING"W>~ AMENDING CERTAIN TIME LIMITATIONS WITH RESPECT TO THE REDE~~Itit:NT PLAN FOR THE OTAY VALLEY ROAD REDEVELOPMENT PROJE~O ~~ '2J'i:-CO~ WHEREAS, the City Council of the City of Chula Vista placed on Second Reading and adopted Ordinance No. 2059 December 20,1983, approving and adopting the Redevelopment Plan (the "Redevelopment Plan") for the Otay Valley Road Redevelopment Project; and WHEREAS, the Redevelopment Agency of the City of.Chula Vista (the "Agency") has been designated as the official redevelopment agency to carry out in the City of Chula Vista the functions and requirements of the Community Redevelopment Law of the State of California (Health and Safety Code Section 33000 et seq.) and to implement the Redevelopment Plan; and WHEREAS, Section 33333.6 of the Community Redevelopment Law established certain limitations on the incurring and repaying of indebtedness and the duration of redevelopment plans, which limitations apply to every redevelopment plan adopted on or before December 31, 1993; and WHEREAS, Section 33333.6 further provides that unless a redevelopment plan adopted prior to January 1, 1994 already contains limitations which comply with that Section, the legislative body shall adopt an ordinance on or before December 31, 1994 to amend the redevelopment plan either (1) to amend an existing time limit that exceeds the applicable time limit established by that Section; or (2) to establish time limits that do not exceed the provision of that Section; and WHEREAS, the Redevelopment Plan does not contain any time limit for either the establishment of debt or the repayment of debt and therefore, pursuant to Section 33333.6 the City Council is required to establish such limitations by ordinance; and WHEREAS, the current duration of the Redevelopment Plan is 45 years, which duration does not conform to the requirements of Section 33333.6 and therefore the City Council is obligated to modify the duration of the Redevelopment Plan to comply with the requirements of Section 33333.6; and WHEREAS, the establishment of time limits as required by Section 33333.6 does not constitute a project under California Environmental Quality Act and is therefore categorically exempt from environmental review; and WHEREAS, Health and Safety Code Section 33333.6(e)(2) provides that the limitations established by this Ordinance shall apply to the Redevelopment Plan as if the Redevelopment Plan had been amended to include these limitations; however, neither the City nor the Agency is required to comply with any of the procedural requirements of Article 12 of the Redevelopment Law pertaining to the amendment of redevelopment plans when adopting this Ordinance. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES HEREBY ORDAIN AS FOLLOWS: ~~P-/ . 1./' Ordinance xxxx Page 2 Section 1. Section 700.80 of the Otay Valley Road Redevelopment Plan is hereby amended by adding the following paragraphs at the end of the Section: The time limit on the establishment of loans, advances, and indebtedness shall not exceed 20 years from the adoption of the Redevelopment Plan or January 1, 2004, whichever is later. Based upon the adoption date of the Redevelopment Plan this time limit shall be January 1, 2004. This limit, however, shall not prevent redevelopment agencies from incurring debt to be paid from the Low- and Moderate-Income Housing Fund or establishing more debt in order to fulfill the Agency's housing obligations under Section 33413. The time limit established by this subdivision may be extended only by amendment of the Redevelopment Plan in accordance with Community Redevelopment Law. Section 2. Section 700.32 is hereby amended by adding the following paragraph at the end of the Section. Except as expressly authorized by Health and Safety Code Section 33333.6 or other provisions of Community Redevelopment Law, the Redevelopment Agency shall not pay indebtedness or receive property taxes pursuant to Section 33670 of the Health and Safety Code after ten (10) years from the termination of the effectiveness of the Redevelopment Plan as modified by Section 3 of this Ordinance. Except as otherwise authorized, the Agency shall not pay indebtedness or receive property taxes after December 20, 2033. Section 3. Section 1000 of the Redevelopment Plan is hereby amended to read as follows: Except for the nondiscrimination and nonsegregation provisions, which shall run in perpetuity, the provisions of this Plan shall be effective and the provisions of other documents formulated pursuant to this Plan may be made effective for forty (40) years from the date of the adoption of this Plan by the City Council. Based upon the effective date of this Plan, the Plan shall terminate on December 20, 2023. Unless projects contemplated under the Redevelopment Plan are undertaken within ten (10) years of the date of the adoption of the Redevelopment Plan, then said projects shall not be undertaken thereafter unless a public hearing is conducted by the Redevelopment Agency to consider the desirability of undertaking the proposed projects in light of conditions as they then exist. Section 4 The City Clerk is hereby directed to send a certified copy of this Ordinance to the Agency. Section 5. Effective Date. This Ordinance shall be in full force and effect thirty (30) days after its passage. ~ ~P./2 ,,-' ~") Ordinance xxxx Page 3 Section 6. Publication. The City Clerk is hereby ordered and directed to certify to the passage of this Ordinance and to cause the same to be published once in the Star News, a newspaper of general circulation, published and circulated in the City of Chula Vista, California. ~~ction 7. Severabilitv. If any part of this Ordinance is held to be invalid for any reason, such decision shall not affect the validity of the remaining portion of this Ordinance, and this City Council hereby declares that it would have passed the remainder of this Ordinance, if such invalid portion thereof had been deleted. PASSED AND ADOPTED this day of November 1994, by the following vote: PRESENTED BY: APPROVED AS TO FORM BY: o!J-'~'4 ~~ Chn Salomone Community Development Director ~ IC:IWP51 ICOUNCILIRESO SIORD-XXX2.0RDJ -Hl>-~ ,{,J?-;3 / (,/J-.5 do (, J.2... ORDINANCE xxxx AN ORDINANCE OF THE CITY OF CHULA VISTA. CALIFORNIA. ESTAB AMENDING CERTAIN TIME LIMITATIONS WITH RESPECT TO TH PLAN FOR THE SOUTHWEST REDEVELOPMENT PROJECT W rO~'i) ~.....v WHEREAs. the City Council of the City of Chula Vista placed on Second Reading and adopted Ordinance No. 2420 on November 27. 1990 approving and adopting the Redevelopment Plan (the "Redevelopment Plan") for the Southwest Redevelopment Project; and ~~o~ I~ND ELOPMENT WHEREAS. the Redevelopment Agency of the City of Chula Vista (the" Agency") has been designated as the official redevelopment agency to carry out in the City of Chula Vista the functions and requirements of the Community Redevelopment Law of the State of California (Health and Safety Code Section 33000 et seq.) and to implement the Redevelopment Plan; and WHEREAS. Section 33333.6 of the Community Redevelopment Law established certain limitations on the incurring and repaying of indebtedness and the duration of redevelopment plans. which limitations apply to every redevelopment plan adopted on or before December 31. 1993; and WHEREAS. Section 33333.6 further provides that unless a redevelopment plan adopted prior to January 1,1994 already contains limitations which comply with that Section. the legislative body shall adopt an ordinance on or before December 31. 1994 to amend the redevelopment plan either (1) to amend an existing time limit that exceeds the applicable time limit established by that Section, or (2) to establish time limits that do not exceed the provisions of that Section; and WHEREAS. the time limit on the effectiveness of the Redevelopment Plan. as set forth in Section 1000 of the Redevelopment Plan. is forty (40) years from the date of adoption of the Plan and does not exceed the time limit established by Section 33333.6(b) of the Community Redevelopment Law. and therefore no amendment is required relating to such limitation, and WHEREAS. the time limit for the establishment of debt set forth in the Redevelopment Plan exceeds the time limit established pursuant to Section 33333.6 the City Council is required to modify the time limit to comply with the requirements of Section 33333.6; and WHEREAS. the Redevelopment Plan does not contain any time limit for the repayment of debt and therefore. pursuant to Section 33333.6 the City Council is required to establish such limitations by ordinance; and WHEREAS. the establishment of time limits as required by Section 33333.6 does not constitute a project under California Environmental Quality Act and is therefore categorically exempt from environmental review; and WHEREAS. Health and Safety Code Section 33333.6(e)(2) provides that the limitations established by this Ordinance shall apply to the Redevelopment Plan as if the Redevelopment Plan had been amended to include these limitations; however, neither the City nor the Agency is required to comply with any of the procedural requirements of Article 12 ~ tE-/ 1 ;). I ') Ordinance xxxx Page 2 of the Redevelopment Law pertaining to the amendment of redevelopment plans when adopting this Ordinance. NOW THEREFORE. THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES HEREBY ORDAIN AS FOLLOWS: Section 1. The last paragraph of Section 703 of the Southwest Redevelopment Plan is deleted in its entirety and replaced by the following: The time limit on the establishment of loans, advances, and indebtedness shall not exceed 20 years from the adoption of the Redevelopment Plan or January 1, 2004, whichever is later. Based upon the adoption date of the Redevelopment Plan this time limit shall be November 27, 2010. This limit, however, shall not prevent redevelopment agencies from incurring debt to the paid from the Low- and Moderate-Income Housing Fund or establishing more debt in order to fulfill the Agency's housing obligations under Section 33413. The time limit established by this subdivision may be extended only by amendment of the Redevelopment Plan in accordance with Community Redevelopment Law. Section 2. Section 1000 of the Southwest Redevelopment Plan is hereby amended by adding the following paragraph at the end of the Section: Except as expressly authorized by Health and Safety Code Section 33333.6 or other provisions of Community Redevelopment Law, the Redevelopment Agency shall not pay indebtedness or receive property taxes pursuant to Section 33670 of the Health and Safety Code after ten (10) years from the termination of the effectiveness of the Redevelopment Plan as modified by Section 2 of this Ordinance, except as otherwise authorized, the Agency shall not pay indebtedness or receive property taxes after November 27, 2040. Section 3. The City Clerk is hereby directed to send a certified copy of this Ordinance to the Agency. Section 4. Effective Date. This Ordinance shall be in full force and effect thirty (30) days after its passage. Section 5. Publication. The City Clerk is hereby ordered and directed to certify to the passage of this Ordinance and to cause the same to be published once in the Star News, a newspaper of general circulation. published and circulated in the City of Chula Vista, California. Section 6. Severabilitv. If any part of this Ordinance is held to be invalid for any reason, such decision shall not affect the validity of the remaining portion of this Ordinance. and this City Council hereby declares that it would have passed the remainder of this Ordinance, if such invalid portion thereof had been deleted. ~ ~F~~ fit, ! PASSED AND ADOPTED this vote: PRESENTED BY: ~~ Chris Salomone Community Development Director IC:\ WP5 1 \COUNCIL\RESOS\ORO- XXX3.0ROJ Ordinance xxxx Page 3 day of November 1994. by the following APPROVED AS TO FORM BY: ~ ~ ?E-3 /tE-5 COUNCIL AGENDA STATEMENT Item2 Meeting Date 11/8/94 SUBlwTl'ED BY: Ordinance .2." 1..5' Amending Schedule X Section 10 48.050 of the Chula Vista Municipal Code to establish Speed Limits on Del Rey Boulevard and Rancho del Rey Parkway Director of Public wor1\~ City ManagerJC1 ~l (4/5ths Vote: Yes_NoX) ITEM TITLE: REVIEWED BY: The City Engineer has determined the need to establish speed limits on Del Rey Boulevard and Rancho del Rey Parkway in the Rancho del Rey development. These streets have recently been opened to traffic and serve as the major collector streets for a large residential community located north of East "H" Street and west of Otay Lakes Road RECOMMENDATION: That Council place the ordinance on first reading amending the Chula Vista Municipal Code Section 10 48.050, Schedule X and establish a 35 M.P.H. speed limit on Rancho Del Rey Parkway and a 40 M.P.H. speed limit on Del Rey Blvd. BOARDS/COMMISSIONS RECOMMENDATION: At their meeting of October 13, 1994 the Safety Commission voted 5-0-2 (Vice-Chair Padilla and Commissioner Pitts absent) to recommend to the City Council that the speed limit be adopted by resolution and be added to the Municipal Code. DISCUSSION: Recently, several miles of new streets were opened to the public as a portion of the Rancho del Rey residential development. Traffic Engineering staff has conducted Engineering/Traffic Surveys, as required by California Vehicle Code sections 22358 and 40802, which enables local agencies to establish decreased speed zones. Presently the speed limits on Del Rey Blvd. and a portion of Rancho Del Rey Parkway are not posted and are subject to 55 M.P.H. prima facie speed limits as set forth in the California Vehicle Code. The need to reduce the speed limits to a level which is more appropriate for streets of this nature is outlined in the attached Engineering/Traffic Surveys. Del Rey Boulevard is a four-lane roadway which connects between East "H" Street and Rancho del Rey Parkway This street is built to the standards for a Class I Collector Street. It has a curb to curb width of 64' which provides for 2-lanes of traffic in each of the northbound and southbound directions which are divided by a painted median island. Parking is not permitted so as to provide for a bike-lane in each direction. The ADT (Average Daily Traffic) is presently 1,330 vehicles but is expected to increase rapidly as the developer continues to open more of this residential area. Based on the design characteristics, which include curves with design speeds of 38-40 MPH, and the 85th percentile speed of 44 M.P.H. staff is recommending a posted speed limit of 40 M.P.H. 7"'/ \'\ ,.\, Page 2, Item 7 Meeting Date 11/8/94 Rancho del Rey Parkway is a curvilinear two-lane roadway which serves to connect many small residential developments. This street has a curb to curb width of 40' which allows for one lane of traffic in each direction as per the standard for a Class III Collector Street. Parking is generally not permitted so as to provide for a bike-lane for each direction. The 1430 ADT varies from segment to segment as you travel around the length of this roadway The 85th percentile speeds also vary from segment to segment, but are generally between 35 and 45 M.P.H. Based on the design characteristics, which includes curves with a design speed of 30-32 MPH, 85th percentile speeds, usage to serve residential development with frequent minor intersections, and the proximity of an Elementary School and several parks along its length, staff is recommending a posted speed limit, throughout the length of Rancho del Rey Parkway, of 35 M.P.H. Curves near Camino Biscay on both sides of Discovery Elementary School which do not meet the design criteria for 35 M.P.H., shall be posted with the appropriate curve warning signs. Rancho Del Rey Parkway from Paseo Ranchero to Bayona LooplLas Estancias Drive has been posted at 35 M.P.H. The above street segments were not posted at the time that the Engineering/Traffic Surveys were completed. Staff has completed the Engineering/Traffic Surveys as required by State Law, and has concluded that this area will operate safer and more efficiently provide for the movement of traffic with the posted speed limit of 40 M.P.H. onDel Rey Boulevard and a posted speed limit of 35 M.P.H. on Rancho del Rey Parkway Chula Vista Municioal Code Section 10.48.050 - SCHEDULE X DECREASED SPEED LIMITS IN CERTAIN AREAS Name of Street Bellinninll At Endinll At Prooosed Soeed Limit Del Rey Boulevard East "H" Street Rancho del 40 M.P.H. Rey Parkway Rancho del Rey Del Rey Boulevard Paseo Ranchero 35 M.P.H. Parkway Rancho del Rey Paseo Ranchero Bayona Loop/ 35 M.P.H. Parkway Las Estancias Dr. Said regulations shall become effective when appropriate signs giving notice thereof have been posted, as required by California Vehicle Code Section 22354, and when said regulations have been placed by ordinance of the City Council, when the substantive acts of the Council decreasing state-law maximum speed limits in certain zones are undertaken by ordinance as 7,.;1... Page 3, Item ? Meeting Date 11/8/94 required by the Vehicle Code of the State of California, and are maintained in the office of the City Clerk, the Director of Public Works, and the Police Department, as required in a part of this code. The Principal of Discovery Elementary School, Mr. Fred Elliott, has been notified of tonight's City Council meeting. FISCAL IMP ACT: None. The cost of installation for these signs was figured in accordance with the City's Master Fee Schedule based on full cost recovery and billed to the Developer. These fees amount to less than $2,500 have been paid by the developer. Attachments: Exhibit A - Area Plat Exhibit B - Engineering/Traffic Surveys Fi1e_: HR:DWIdh M:\...\AGENDAIDELREY .FXR CY -029 ?~3 ORDINANCE NO. .2/,/f AN ORDINANCE AMENDING SCHEDULE X OF SECTION 10.48.050 OF THE CHULA VISTA MUNICIPAL CODE TO ESTABLISH SPEED LIMITS ON DEL REY BOULEVARD AND RANCHO DEL REY PARKWAY WHEREAS, the City Engineer has determined the need to establish speed limits on Del Rey Boulevard and Rancho del Rey Parkway in the Rancho del Rey development; and WHEREAS, a traffic and engineering study, as required by State Law, was conducted by staff who concluded that this area will operate safer and more efficiently provide for the movement of traffic with the posted speed limit of 40 M.P.H. on Del Rey Boulevard and a posted speed limit of 35 M.P.H. on Rancho del Rey Parkway; and WHEREAS, the Safety Commission at its meeting of October 13, 1994 voted 5-0-2 to recommend to the City Council that the speed limited be adopted and be added to the Municipal Code. NOW, THEREFORE, the city Council of the city of Chula vista does ordain as follows: SECTION I: That Schedule X of section 10.48.050 of the Chula vista Municipal Code, Decreasing State Law Maximum Speed Limits in Certain Areas, is hereby amended to include the following changes: Chula vista Municipal Code section 10.48.050 - SCHEDULE X DECREASED SPEED LIMITS IN CERTAIN AREAS Name of Street Beqinninq At Endinq At Proposed Speed Limit Del Rey East "H" Rancho del 40 M.P.H. Boulevard Street Rey Parkway Rancho del Rey Del Rey Paseo Ranchero 35 M.P.H. Parkway Boulevard Rancho del Rey Paseo Ranchero Bayona Loop/ 35 M.P.H. Parkway Las Estancias Dr. SECTION II: This ordinance shall take effect and be in full force on the thirtieth day from and aft its ad tion. John P. Lippitt, Director of Public Works c: \OR\SPEED EST Bruce M. Attorney 7-1/ form Presented by ..... . 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II 1 - SPEED LIMIT--ENGlNEERlNGITRAFFIC SURVEY: S11tEET: RANCHO DEL REY PARKWAY LIMITS: DEL REY BLVD. to PASEO RANCHERO EIlstlnl Posted Speed Umlt UNPOSTED MPB (See below "Approved Speed Limit") , Seament: Date Taken: No Vehicles on Sample: 85t11 Percentile Speed: Ranle fJl Speeds Reco~ed: DEL REY BLVD. to PASEO RANCHERO 9/6/94 tbru 9/8/94 Traffic Counters 2095 (24hours westbound - 763 : 48 hours eastbound - 1332) 44.2 M.P.H. LESS THAN 23 - 45+ M.P.H. "'Idtb '40 Horizontal Allanment Vertical Alianment feet No. or LaDes lor Both Directions. 2 - Mostly curvilinear. Bmin.*300' (30MPH d~sign speed N/o Camino Biscay) -8.2% to +7.0% over .600' Vertical Curve (design speed less than 35MPH: Vertical curve at intersection with Del Rey Blvd. Avera&e Dally Tramc On. Street Parkin& the street. Not Allowed. ''NO PARKING/BIKE LANE" signs posted on both sides of 1430 Special Conditions Sement contains 2 curves with desistn speeds less than 35 MPH in the vicinity of Camino Biscay. Discovery Elementary School at Camino Biscay. School zone and curves are sistned with appropriate warning signs. Ac:cldent History This street has been open to traffic for only a It has no history of accidents to baae an accident rate on. ahort period of time. ~ St1Idy was Prepllred by Dennis M. Wolfe Jtecommendatlon' Establish a a eed l:lmit of 35 M.P.lI. -- and prox:lmity to Discovery Elementary School. Dale Recommendation Approved: 0' --' -'L By ~."C.-:."H"" 'X. R~~ Appro,-ed Speed Umlt 35 MfH Per evc 41)803, Survey Expires 09 - 06 - 99 7~" 09 19 - 94 - . SPEED LIMIT--ENGlNEERlNG/TRAFFIC SURVEY: ~: Del Rey Boulevard wmS: East "H" Street to Rancho Del Rey Parkway E1dstlDl Posted SpeecJ LImit Not Posted MfB (See Below "Approved Speed Limit") Se&meDt: East "H" Street to Rancho Del Rey Boulevard Date Taken: 9/6/94 thru 9/7/94 Traffic Counters No Vehicles OD Sample: 2,655 over 48 Hours 8Sth PerceDtile Speed: 44.4 M.P.H. RaDle or Speeds Reco~ed: 23-45+ with nq vehicles recorded over 55 M.P.H. n' 2NB Width 64' curb to curb feet No. or laDes lor Both DIrectIODS .4 Lanes 2SB - HorlzoDtal Alllnment Minimum Curve Radius of 500' over 213' ,in length. Vertical Allanment +6.75% to +3.0:1: over 250' of length, crest vertical curve. Averale Daily Trame 1,330 . On.Street Parkln, Posted No Parking - Bike Lanes both sides of the street. Parking ~ permitted. Special Conditions This segment haa Bike Lanes on both sides and has no driveway or direct access throughout its length. Accident Blstory It has no history of accidents to base an accident rate. on. , This street has been open to traffic for only a short period of time. ~ Study was Prepared by Dennis M. Wolfe Date 09 - 20 - 94 Recommendation Establish a speed limit of 40 M.P.H. -- Characteristics and the 85th Percentile Speed. Date Recommendation Approved: 09 - 20 - 94 By ~..., c: "41" ~_ /2;.,#.!CA- Appl'O\..d Speed lJmlt .. 40 MfB Per eve 410803, Sun-ey Expires 09 - 06_ !It 7"''1 B SPEED LIMIT ENGINEERING/TRAFFIC SURVEY ~ STREET: RANCHO DEL REY PKWY Existing Posted Speed Limit LIMITS: w/o PASEO RANCHERO - wlO BAYONA LOOP 35 MPH SUMMARY OF SPEED SURVEYS w/o PASEO RANCHERO Segment - VIA ARMADQ Date Taken 12-14-90 No. Vehicles on Sample 1QO 85th Percentile Speed 45-MPH Range of Speeds Recorded 31-56 MPH VIA ARMADO - W/O BAYONA LOOP 12-14-90 100 44 MPH 28-60 MPH ROADWAY CHARACTERISTICS Width 40-52 ft. No. of Lanes for Both Directions 2 Horizontal Alignment RMIN - 500 FEET Vertical Alignment - 8.2% TO 7% OVER A 350' VERTICAL CURVE ( TRAFFIC CHARACTERISTICS Average Daily Traffic 3340 On-Street Parking EMERGENCY PARKING/BIKE LANE BOTH SIDES OF RANCHO DEL REY PKWY Special Conditions SINGLE FAMILY DWELLINGS WITH NO DIRECT DRIVEWAY ACCESS. PARK AT CORNER OF BUENA VISTA WAY AND RANCHO DEL REY PARKWAY. Accident THE ACCIDENT RATE AT THIS SEGMENT IS LOWER THAT THE AVERAGE ACCIDENT RATE FOR SIMILAR ROADWAYS IN THE STATE OF CALIFORNIA. SURVEY RESULTS Study was Prepared by JIM BUGERA Date 2-6-91 Recommendation RETAIN 35 MPH SPEED LIMIT DUE TO ROADWAY CHARACTERISTICS WPC 2269E/Revised 8-4-89 7..r Date Recommendation Approved: "2.--19 -9/ By { Per CVC 40803, Survey Expires 12-14-95 COUlilCIL AGENDA STATEMENT Item ~ Meetinq Date 11/8/94 ITEM TITLE: Resolution /? 'l~? Approving Fifth Amendment to Agreement with Remy and Thomas for Litigation Representation services SUBMITTED BY: Bruce M. Boogaard, city Attorney ~ 4/5ths Vote: Yes No-X- After the City Council and Board of Supervisors approved the Otay Ranch Project, Chaparral Greens sued on CEQA theories. The City retained Remy & Thomas at Baldwin's expense. The trial is now complete and we are awaiting the Judge's decision. Baldwin has brought Ms. Thomas' bill current as billed, a total of $495,000. She now estimates $62,000 of additional post trial expenses and experts costs incurred but not yet billed. Baldwin concurs with the increase, and of course, is solely liable. Because the Judge's decision has not yet been rendered, we don't know want to predict any outcome, but we are very comfortable with the way the trial went. RECOMMENDATION: Approve the attached resolution approving the Fifth Amendment to the City's Agreement with Remy and Thomas for legal representation in the Chaparral Greens litigation. BOARDS/COMMISSIONS RECOMMENDATION: N/A. DISCUSSION: Approval of the resolution will increase the maximum compensation set forth in the Agreement by $62,000 from $495,000 to $557,000. It will allow continued representation of the city by Tina Thomas of Remy and Thomas, the attorney who has provided advice with regard to compliance with CEQA and the adequacy of the EIR throughout the entire planning process. Both the City and the County are named as Real Parties in Interest in the litigation, and the defendant is the Baldwin company, through its corporate entity, Otay vista Associates. FISCAL IMPACT: $62,000, the difference between the old authorization ($495,000) and the amount herein approved ($557,000), which by the agreement is to be paid by the Baldwin Company and the establishment of a deposit account. The city has no funds exposed for payment of attorney's fees in this matter. Our duty to pay the attorney is dependent on collection of funds from Baldwin. M:\Ho.e\Attorney\Chappr13 $',/lff'l. RESOLUTION NO. 17 'ltl9 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING FIFTH AMENDMENT TO AGREEMENT WITH REMY AND THOMAS FOR LITIGATION REPRESENTATION SERVICES IN CONNECTION WITH THE CHAPARRAL GREENS LAWSUIT, AND AUTHORIZING MAYOR TO EXECUTE SAME WHEREAS, the city, by Resolution No. 17347, on January 4, 1994, approved an Agreement with Remy and Thomas for Litigation Representation Services in connection with the Chaparral Greens lawsuit; and, WHEREAS, the city of Chula Vista, by Resolution No. 17426 on March 29, 1994, approved a First Amendment to Agreement to provide for continued litigation representation services in connection with the Chaparral Greens lawsuit, and an increase in the maximum compensation from $75,000 to $160,000; and, WHEREAS, the city of Chula Vista, by Resolution No. 17481 on May 10, 1994, approved a Second Amendment to Agreement to provide for continued litigation representation services in connection with the Chaparral Greens lawsuit, and an increase in the maximum compensation from $160,000 to $295,000; and, WHEREAS, the City of Chula Vista, by Resolution No. 17571 on July 19, 1994, approved a Third Amendment to Agreement to provide for continued litigation representation services in connection with the Chaparral Greens lawsuit, and increase the total amount of compensation from $295,000 to $395,000; and WHEREAS, the city of Chula Vista, by Resolution No. 17650 on September 13, 1994, approved a Fourth Amendment to Agreement to provide for continued litigation representation services in connection with the Chaparral Greens lawsuit, and increase the total compensation from $395,000 to $495,000; and WHEREAS, it is necessary to amend said Agreement to increase the total amount of Agreement from $495,000 to $557,000; and, WHEREAS, Otay vista Associates is required by an Indemnity Agreement to defend, indemnify and hold harmless the City regarding any litigation arising from city's approval of the Otay Ranch Project, including payment for legal counsel to represent city in such litigation. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula vista does hereby approve the Fifth Amendment to Agreement with Remy and Thomas for Litigation Representation Services in connection with the Chaparral Greens lawsuit, known as ~3 I: < tt .' document number C094-___1 a copy of which is on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the Mayor of the City of Chula vista is hereby authorized and directed to execute said Fifth Amendment for and on beha f of the City of Chula vista. Bruce ~. Boogaard City Attorney Presented a ~~ I FIFTH AMENDMENT TO AGREEMENT WITH REMY AND THOMAS LITIGATION REPRESENTATION SERVICES WHEREAS, the City of Chula Vista, by Resolution 17347 on January 4, 1994, approved an Agreement to provide for litigation representation services in connection with the Chaparral Greens lawsuit; and WHEREAS, the City of Chula Vista, by Resolution 17426 on March 29, 1994, approved a First Amendment to Agreement to provide for continued litigation representation services in connection with the Chaparra1 Greens lawsuit, and an increase in the maximum compensation from $75,000 to $160,000; and WHEREAS, the City of Chula Vista, by Resolution 17481 on May 10, 1994, approved a Second Amendment to Agreement to provide for continued litigation representation services in connection with the Chaparral Greens lawsuit, and an increase in the maximum compensation from $160,000 to $295,000; and WHEREAS, the City of Chula Vista, by Resolution 17571 on July 19, 1994, approved a Third Amendment to Agreement to provide for continued litigation representation services in connection with the Chaparral Greens lawsuit, and an increase in the maximum compensation from $295,000 to $395,000; and WHEREAS, the City of Chula Vista, by Resolution 17650 on September 13, 1994, approved a Fourth Amendment to Agreement to provide for continued litigation representation services in connection with the Chaparral Greens lawsuit, and an increase in the maximum compensation from $395,000 to $495,000; and WHEREAS, since that time, it has become apparent that litigation expenses will be higher than originally anticipated; and WHEREAS, Otay Vista Associates (Baldwin) is responsible for and agrees to pay all costs involved in defending the litigation as a result of the Indemnification Agreement approved by the Council as part of the final approval of the Otay Ranch Project. NOW, THEREFORE, the parties hereto agree as follows: 1. That Paragraph 2.b.iv. be amended to change the amount of $495,000 to $557,000.00 to read as follows: "iv. Consultant shall not incur costs or billings which, in total, exceed Five Hundred Fifty-Seven Thousand Dollars ($557,000.00) without further written approval of the City. " ~,> 2. All other terms and conditions not modified by this Fifth Amendment to Agreement shall remain in full force and effect. IN WITNESS WHEREOF, City, Consultant and Developer have executed this Fifth Amendment to Agreement this day of , 1994. CITY OF CHULA VISTA REMY AND THOMAS Tim Nader, Mayor Tina A. Thomas Attest: OTAY VISTA ASSOCIATES City Clerk "'on ruce M. Boogaard City Attorney 4100257.100 lP-" COUNCIL AGENDA STATEMENT Item --2- Meeting Date 11/8/94 ITEM TITLE: Resolution I 7 7/1/ Approving an agreement between the City, The Environmental Trust, Inc. and Bonita Long Canyon Partnership for purchase of land as wetlands mitigation for two City projects and AT&T's project at 865 Third Avenue and authorizing the Mayor to execute said agreement on behalf of the City SUBMITTED BY: Director of Public worlr) Director of Planning ;ffti REVIEWED BY: City Manager~ The winter storms of 1993 caused damage a number of locations within the City of Chula Vista. Restoration work was or will be accomplished for two City projects and one private project. As a result of work completed or to be completed by the City and proposed work by American Telephone and Telegraph (AT&T) at 865 Third Avenue, the Department of Fish and Game (DF&G) required wetlands mitigation. The City has been working towards obtaining land to mitigate the two City projects. The DF&G suggested that the City and AT&T combine mitigation so as to provide a larger area rather than three smaller sites. This proposed agreement is the result of negotiations to obtain land as wetlands mitigation for both City projects and the AT&T site. RECOMMENDATION: Approve the agreement to purchase land for wetland mitigation and authorize the Mayor to execute same on behalf of the City BOARDS/COMMISSIONS RECOMMENDATION: The Resource Conservation Commission (RCC) will review this agreement on 11-7-94 A report will be prepared for the City Council regarding the RCC action and placed on the dais. DISCUSSION: Backl!round The environmental section of the Planning Department has been working with the Department of Fish and Game (DF&G) to find suitable mitigation for two City projects which the DF&G determined required wetlands mitigation. One project was the remedial repair of washed out areas within Telegraph Canyon Creek (TCC), the other was a similar situation within Bonita Long Canyon Creek (BLCC). The TCC project was funded through the City CIP program and the BLCC project will be funded by a CIP with the possibility of a partial reimbursement by the Federal Emergency Management Agency (FEMA). The TCC project required 0.2 acres of mitigation and the BLCC project will required approximately 0.54 acres of mitigation for work being accomplished. In addition to the two City projects, AT&T had a proposed project adjacent to 865 Third Avenue in which mitigation was required by the DF&G. That project required 0 4 acres of mitigation. 9'/ Page 2, Item 1 Meeting Date: 11/08/94 COMBINED PROJECTS The combined projects are proposed to be mitigated through the purchase of two parcels with a total acreage of 2.47 acres. The DF&G has indicated that the two parcels contain 1.25 acres of wetlands. The three projects indicated above require 1.14 acres of wetland mitigation. Therefore in addition to providing mitigation for the projects, DF&G indicated that the City would have 0.11 acres available for future mitigation ( see SAA 5-766-93, item 5). The DF&G also indicated that the land would have to be enhanced. The total cost to purchase the property including escrow costs is not expected to exceed $35,000 Enhancement of the parcel is required by DF&G. Enhancement costs are anticipated to range from $10,000 to $30,000. Therefore, the total cost is anticipated to range between $45,000 and $65,000. Since the AT&T $30,000 plus any interest will be used first (see City Assumption of AT&T Mitigation below), the City cost will range between $ $10,000-$35,000 Reimbursement from FEMA for approximately 30 percent of the cost for the BLCC project could occur If this happens, the City could be reimbursed approximately $10,500 in which case the City's cost could range between $0 and $20,000. CITY ASSUMPTION OF AT&T MITIGATION The AT&T project required 0.4 acres of mitigation. The DF&G suggested to AT&T that they combine their mitigation with the City's to end up with a larger mitigation site. AT&T obtained an estimate from Pacific Southwest Biological Services (PSBS) to mitigate for their project. The estimate came to approximately $30,000. The City agreed to assume AT&T's mitigation responsibility if the total cost of mitigation did not exceed $30,000 plus any interest earned on the money (see letter dated May 26,1994). The DF&G revised the Streambed Alteration Agreement (SAA) to reflect our commitment except that no upper limit was indicated. Consequently, staff did not execute the agreement even though AT&T provided the $30,000. AT&T subsequently agreed in a letter dated October 5, 1994 to provide an additional $15,000 as security for any overrun of costs. In addition, they agreed in their letter to pay any additional costs that can be associated with their portion of the project after discussing with DF&G solutions and receiving authorization from AT&T. The initial $30,000 provided by AT&T will be used to obtain the land with the City providing any additional costs unless it can be shown that the AT&T portion of the mitigation should be higher Staff has indicated to AT&T that items 4 and 5 of their letter were not acceptable in that the property would be granted directly to The Environmental Trust Inc. (TET) leaving both the City and AT&T out of the chain of title and all the mitigation work would be done by TET making it unnecessary to require the items indicated in Item 5. In discussions with AT&T they have agreed to the deletion of Items 4 & 5 Prior to the signing of the purchase agreement, a revised letter from AT&T will be received deleting Items 4 & 5 Since the land deal had been reviewed by DF&G and indicated verbally that it appeared to be acceptable as mitigation for the two City projects and AT&T's project, the City executed the SAA 5-648-93 (AT&T) so that the work could begin before this winter Subsequent to that time the DF&G executed SAA 5-766-93 which indicated that the land was acceptable as mitigation for the three projects. 9~.;L Page 3, Item -1- Meeting Date: 11/08/94 TERMS OF PURCHASE AGREEMENT The purchase agreement before Council tonight provides for the purchase of two parcels of land from the Bonita Long Canyon Partnership (BLCP) which total 2.47 acres of land. The land will be purchased for $20,000 and will be transferred through an escrow to TET who agree to maintain the land in accordance with the DF&G requirements. The agreement provides for TET to be paid $10,000 for providing maintenance. The DF&G has reviewed the agreement and indicated in the most recent SAA (5-766-93) that the land will be acceptable as mitigation for the two City projects and AT&T's project with enhancement. Section 3.3 of the agreement requires TET to obtain a determination from DF&G that the property satisfies the Cities' requirements to provide off-site mitigation prior to close of escrow There is a $2,500 deposit to be made to the escrow holder by the City which is non refundable if the deal is not completed for any reason other than the sellers default. If the deal is consummated, the $2,500 goes towards the purchase price of the property Designation of who pays escrow costs are contained within the agreement with the costs essentially being split between the seller, BLCP, and the City except BLCP will pay the entire realtor fee associated with this deal. FISCAL IMPACT: The City's cost could vary from $10,000 to $35,000. Total cost is not expected to exceed $65,000 of which AT&T has deposited $30,000 and pledged another $15,000 if their proportionate share of the purchase requires the money to be paid by them. AT&T has also indicated they would provide additional funds in excess of the $45,000 indicated if it can be shown to relate to their proportionate share of the total cost. Funds are available in Project DR122, $2900; Project DR 118, $32,100. Reimbursement from FEMA for approximately 30% of the mitigation cost for the BLeC project could occur That could amount to about $10,500 based upon a proportion of the anticipated total cost of mitigation for the BLCC project. W AU/ PG-482 Attachments: Exhibit A Exhibit B Exhibit C Exhibit D Exhibit E Exhibit F Mitigation property location SAA 5-630-93 Gunite Project TCC SAA 5-648-93 AT&T Project TCC SAA 5-766-93 BLCC project Letter dated May 26,1994 Letter from AT&T dated 10/5/94 M:\home\engincer\agenda\ATIAGR. wau 9' 3/ q - tf RESOLUTION NO. 1771() RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AGREEMENT BETWEEN THE CITY OF CHULA VISTA, THE ENVIRONMENTAL TRUST, INC. AND BONITA LONG CANYON PARTNERSHIP FOR PURCHASE OF LAND AS WETLANDS MITIGATION FOR TWO CITY PROJECTS AND AT&T'S PROJECT AT 865 THIRD AVENUE AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT ON BEHALF OF THE CITY WHEREAS, the winter storms of 1993 caused damage to a number of locations within the City of Chula vista and restoration work was or will be accomplished for two City projects and one private project; and WHEREAS, as a result of work completed or to be completed by the city and proposed work by American Telephone and Telegraph (AT&T) at 865 Third Avenue, the Department of Fish and Game (DF&G) required wetlands mitigation; and WHEREAS, the city has been working towards obtaining land to mitigate the two City projects; and WHEREAS, the DF&G suggested that the City and AT&T combine mitigation so as to provide a larger area rather than three smaller sites; and WHEREAS, this agreement is the result of negotiations to obtain land as wetlands mitigation for both City projects and the AT&T site. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula vista does hereby approve an agreement between the City of Chula Vista, the Environmental Trust, Inc. and Bonita Long Canyon Partnership for purchase of land as wetlands mitigation for two City projects and AT&T's project at 865 Third Avenue, a copy of which is on file in the office of the city Clerk as Document No._ ___ (to be completed by the Clerk in the final document). BE IT FURTHER RESOLVED that the Mayor of the City of Chula vista is hereby authorized and directed to execu said agreement for and on behalf of the City. '"J by Presented by John P. Lippitt, Director of Public Works C:\'6\AT&T Bruce M. Attorney C ty 9.//Q-b ;!C._ 'F . ~ - ., !! . . - . . , _.. 1 , ~.m t-.u'-'---&~__~:''--'';';''_''''_'_-oL,,,__ _..__k__ ~BJ '" 1\) l1" o ~ - C {1l m x. :r: "(}J - -\ , ,. ~ .... .... <( I G . ~. ""..,. ... I'\~ . 'n' l'wt,. ;~~.(",. ;t!;tf:'~~ ! :~i ! CALUORNJ:A DBPARTIIIDIT OJ' J'ISH AJlI) GAJII: 330 Golden Shore, Suite 50 Long Beach, California 90802 Notification No.5-630-93 Page ....L of -.Li ACJRB~ UQAIU)DlQ PROPOSBD S'l'RBAIIl OR LAD: AL'l'BRAT:tON THIS AGREEMENT, entered into between the State of California, Department of Fish and Game, hereinafter called the Department, and Roberto Saucedo of Citv of Chula Vista: 276 Fourth Ave.: Chula Vista. CA 91910: (619) 422-0750, State of California, hereinafter called the Operator, is as follows: WHEREAS,pursuant to Section ~ of California Fish and Game Code, the Operator, on the ~ day of October, liil, notified the Department that they intend to divert or obstruct the natural flow of, or change the bed, channel, or bank of, or use material from the streambed(s) of, the following water(s): TeleqraDh Canvon Creek, San Diego County, California, Section ~ sections 121.122.140 Township ~ Range ...lL. WHEREAS, the Department has determined that such operations may adversely affect existing fish and wildlife resources including: Bau.tic resources and wildlife in the area. substantially sonabirds. and all THEREFORE, the Department hereby proposes measures to protect fish and wildlife resources during the Operator's work. The Operator hereby agrees to accept the following measures/conditions as part of the proposed work. If the Operator's work changes from that stated in the notification specified above, this Agreement is no longer valid and a new notification shall be submitted to the Department of Fish and Game. Failure to comply with the provisions of this Agreement and with other pertinent code sections, including but not limited to Fish and ~am~ Code Sections 5650, 5652, 5937, and 5948, may result in prosecution. Nothing in this Agreement authorizes the Operator to trespass on any land or property, nor does it relieve the Operator of responsibility for compliance with applicable federal, state, or local laws or ordinances. A consummated Agreement does not constitute Department of Fish and Game endorsement of the proposed operation, or assure the Department's concurrence with permits required from other agencies. This Aareement becomes effective the date of Denartment's sianature and terminates Januarv 31. 1994 for Droiect construction only. This Aareement shall remain in effect for that time necessarY to satisfy the terms/conditions of this Aareement. .. - ~h+\od. .B 9'~ '"\ . ..: ," " Page ..L of ...L STREAMBED ALTERATION CONDITIONS FOR NOTIFICATION NUMBER: 5-630-93 1. The following provisions constitute the limit of activities agreed to and resolved by this Agreement. The signing of this Agreement does not imply that the Operator is precluded from doing other activities at the site. However, activities not specifically agreed to and resolved by this Agreement shall be subject to separate notification pursuant to Fish and Game Code Sections 1600 et seq. 2. The Operator proposes to alter the streambed to gunite approximately 4000 square feet of stream banks, located between Fourth Avenue an~ Hilltop Park, in the City of Chula Vista. 3. The agreed work includes activities associated with No.2 above. The project area is located in Telegraph Canyon Creek in San Diego County. Specific work areas and mitigation measures are described on/in the plans and documents submitted by the Operator and shall be implemented as proposed unless directed differently by this agreement. 4. The Operator shall not impact more than 4000 square feet of stream (approximately 0.1 acre) . 5. The Operator shall enhance (with exotics removal and seeding/planting with natives to discourage the reintroduction of exotics) 0.2 acres of stream immediately adjacent to the project. The Department strongly recommends the enhancement work be a part of the future long-term planning for Telegraph Creek Channel. 6. The Operator shall submit a final mitigation plan for Department review and approval within 60 days of signing this agreement. The plan shall include a map showing the area for creation/enhancement and plant palette. 7. The mitigation shall be installed by March 31, 1994. 8. Disturbance or removal of vegetation shall not exceed the limits approved by the Department. 9. The Operator shall not operating equipment in wetted areas (including but not limited to ponded, flowing, or wetland areas). 10. Preparation shall be made so that runoff from steep, erodible surfaces will be diverted into stable areas with little erosion potential. Frequent water checks shall be placed on dirt roads, cat tracks, or other work trails to control erosion. 11. Water containing mud, silt or other pollutants from aggregate washing or other activities shall not be allowed to enter a lake or flowing stream or placed in locationa that may be subjected to high storm flows. 12. Structures and associated materials not designed to withstand high seasonal flows shall be removed to areas above the high water mark before such flows occur. 13. Raw cement/concrete or washings thereof, 'asphalt, paint or other coating material, oil or other petroleum products, or any other substances which could be hazardous to aquatic life, resulting from project related activities, shall be prevented from contaminating the soil and/or entering the waters of the state. Any of these materials, placed within or where they may enter a stream or lake, by Operator or any party working under contract, or with the permission of the Operator, shall be removed immediately. 14. Any equipment or vehicles driven and/or operated within or adjacent to the stream/lake shall be checked and maintained daily, to prevent leaks of materials that if introduced to water could be deleterious to aquatic life. 9-9 .:.r c\i:.'~ .' .. :"F""~'"j;,:;;l:,.~,:, , . "c:r~,i...,,," \. ;;~ ;~~~~\~~: ~]:H . , Page ....l.. of ....l.. STREAMBED ALTERATION CONDITIONS FOR NOTIFICATION NUMBER: 5-630-93 15. Staging/storage areas for equipment and materials shall be located outside of the stream/lake. 16. No debris, soil, silt, sand, bark, slash, sawdust, rubbish, cement or concrete or washings thereof, oil or petroleum products or other organic or earthen material from any logging, construction, or associated activity of whatever nature shall be allowed to enter into or placed where it may be washed by rainfall or runoff into, waters of the State. When operations are completed, any excess materials or debris shall be removed from the work area. No rubbish shall be deposited within 150 feet of the high water mark of any stream or lake. 17. The Operator shall comply with all litter and pollution laws. All contractors, subcontractors and employees shall also obey these laws and it shall be the responsibility of the operator to ensure compliance. 18. No equipment maintenance shall be done within or near any stream channel or lake margin where petroleum products or other pollutants from the equipment may enter these areas under any flow. 19. The Operator shall provide a copy of this Agreement to all contractors, subcontractors, and the Operator's project supervisors. Copias of the Agreement shall be readily available at work sit.. at all times durinll' periods of active work and must be presented to any Department personnel, or personnel from another agency upon demand. 20. The Operator shall notify the Department, in writinll', at least five (5) days prior to initiation of construction (project) activities and at least five (5) days prior to completion of construction (project) activities. Notification shall be sent to the Department at 330 Golden Shore, Suite 50, Long Beach, CA 90802, Attn: ES. ( 21. The Department reserves the right to enter the project site at any time to ensure compliance with terms/conditions of this Agreement. 22. The Department reserves the right to suspend and/or revoke this Agreement if the Department determines that the circumstances warrant. The circumstances that could require a reevaluation include, but are not limited to, the following: a. Failure to comply with the terms/conditions of this Agreement. b. The information provided by the Operator in support of the Agreement/Notification is determined by the Department to be incomplete, or inaccurate. c. When new information becomes available to the Department representative(s) thAt was not known when preparing the original terms/conditions of this Agreement. d. The project as described in the Notification/Agreement has changed, or conditions affecting fish and wildlife resources change. CONCURRENCE '. (Operator's name) California Dept. of Fish and Game ~ ~_',.k- ign urel 1I-.3(I-9'.~ (date) . .{~~ (signature) 1:l.~\1{3 (date - cS""rc:..I';::"r~ (t tle) Environmental SDecialist III (title) 9'IP CALUO..:tA 1l..AIl'ftlmft or 1'10 AlII) caJD 330 Qolden shore, suite 50 Lang aaach, California 90S02 Notification No.5-S'S-g3 page ..J.. of ...i- ~DIdT UGAIUl:DlG nopOlm 1'1'IlDII oa ~ AL'r1D\A'UOIf TilIS AGulMENT, entered into between the Btata of california, Department of 'iah and Game, hereinafter called the Department, and Mario Gatea of AT~T, ~~a ~o~.~~~ ~r Ri~ ~~9~ ~~aa,~~ ~ ~r!B~,and Clifford Swaneon. ~~~ ~: ~re~i~~ ~f ~;:;}.~ :;-~g5 0 I C ~ c ;:i; Vista, 276 Fourth Ave.: Chula _~t__ ~ ____0_ f___ _2_-___7: t'19)2]~-'471.: (619) 477.!3]3; State of California, hereinafter called the Operatora, is as follows: WHBUAs,pursuant to Section ~ of California Fiah and Qame code, the Operators, on the ~ day of Novembar , au. notified the Department that thay intend to divert or obatruct the natural flow of. or change tha bed. channel, or bank of. or uae material from the atreambed(al of. the following water(.); Talettranh Canvon Cr..k , San Diego county, California, S~ct1on__ Town.hip _ Range _' WHBREAS, the Department ba. determined that auch operations may aubatantially adveraely affect existing fiah and wildlife reSources including: son~birds and all aauatie resources Aftd wildlife in the ar... THEREFORB. the Department hereby propo.a. mea.urea to protect fi.h and wildlife rellource. during the Operator's work. The Operator hereby agree. to accei>t the following meaauree/condition. aa part of the proposed work If the Operatorll' work changea from that etated in the notification specified above. this Agreement i. no longer valid and a new notification ahall be aubmitted to the pepartment of 1I'18h and Game. Fdlure to eomply with the provillion. of thi. Agreement and with other pe~tinent code sections, including but not limited to pieh and Game Code Sectiona 5650, 5652, 5937, and 59'8, may result in proeecution, Nothing in this ~reemant autho~i.es the Ope~ators to trespass on any land or p~operty. nO~ doee it relieve the Operator. of responsibility for compliance with applicable federal, stata, or local law. or ordinances. A eon.ummated Agreement does not eonatitute Depa~tment of 1I'ish and Game endorllement of the propo.ed operation, or a..ure the Department's conCurrence with permits required from other ageneie.. ~~~ ~~~~m~; ~e~~m~1 ~f~~~t~v~ :~~ ~~ ~ Da~ar~t'. ~t~:~ ~ ;::i~a~:se~~~~ ~~rl:~;t~~~m:r~~~;;.:;:.~~Y:;~~: ~~~~~ ::~:/~~:i~~~~sll~fll thi. ..err.Ament. &h)J1ik~ 9'// . Page ~ of ..i.. STKEAMBED ALTERATION CONDITIONS POR NOTIFICATION NUMBSR: 5-648-9~ 1. The following proviaiona conatitute the limit of activities agreed to and rellolved by this Agreement. The signing of this Agreement doell not imply thllt the Operatorll are precluded from doing other activities at the aite. However, activiti.a not specifically agreed to and resolved by thia Agreement ahall be subject to separate notification pursuant to Piah and Game Code S.ctions 1600 et seq. 2. The Operatora propose to alter the streambed to construct concrete channelization for 450 lineal feet, impacting 0.4 acrea of stream. The projeot ia located at 865 Third Avenue in the City of Chula Vista. 3. The agreed work includes aotivitiea as.ooiated with No.2 above The project area ia looated in Telegraph Canyon cr.ek in .en Diego County Specifio work areas and mitigation measurea are deeoribed on/in the plana and documents aubmitted by the Operetor. and shell be implemented as propoaed unle.. directed differently by this agr..ment. .. The Operatora shall not impaot more than 0.' acrea of stream. S. The Operators' submitted eatimated coat of riparian habitat enhancement/creation for 0.4 acrea i. $30,000. AT~T ehall place $30,000 into a dedicat.d account with the City of Chula Viata. Thia money, plus all intereat, ahall ~ be u.ed for the mitigation of this project's impacta. The Operator. shall submit auch documentation to the pepartment prior to initiation of project construotion and prior to any project impacts occurring from the channelization project. .0 !.peete ahall Occur until the Dapareaent reoeive. thie doc~tation. ~ attigation ahall be inatalled no later then rebruary 1, IttS. 6. The City of Chula Vi.ta .hIIll .elect either option "a" or "b" in writing to ehe Department at the tt.. of ai;uing thia Agre..-nt. a. The long-term plan (draft mitigation plan with impacta, channelization de.ign, mitigation location and amount) for Telegraph Creek Channel ahall be eubaitted to the Department for review and approval ~ later than .eptamher 30. Itt4 by the City of Chula Vista. The mitigation ahall be inatalled no later than February I, 1995, and ahall include the mitigation tor the 0.' acres ot impact a by this project, applying the $30,000 plUS intereBt in the dedicated account. or b. The City of Chula Viata ahall mitigate off-aite with 0 4 acree of riparian habitat enhancement/creation no later than February 1, 1995. The City ahall .ubait a draft mitigation plan for Department review and approval (including a map showing the area for creation/enhancement, work proposed, revesetation, plant palette, maintenance, monitoring, etc.) prior to initiatiOft of projeot conatruotion and prior to any project impaot. ocourring froa the channelization project, 7. The City of Chula Vista shall be reaponsible tor the planning, installation, maintenance, monitoring and eucce.. of the mitigation tor this ~roject. 8. Diaturbance or removal of vegetation shall not exceed the limits approved by the Department. 9. Inetallation of bridge., culvert a , or other structures shall be such that water flow ia not impairad Bottoms of temporary culverts shall be placed at stream channel grade and bottoms of permanent culverta ahall be placed at or below .treem channel grade. 9,-/.2. . . page ~ of ....L. S'l'REAMBEP ALTERATION CONDITIONS 'OR NOTIFICATION NtlMBER: 5-648-93 10. The Operaton shall not operating equipment in wetted aren (including but not limited to ponded, flowing, or wetland areas) , 11. When work in a flowing .tream ia unavoidable. the entire stream flow shall be diverted eround the work aree by e barrier, temporarr culvert. or new channel. LOcation of the upstream and downstream diveraion p01nts ahsll be approved by the Department. Construction of the barrier and/or the new channel shall normally begin in the downstream area and continue in an upatream direction. and the flow shs11 ba diverted only when construction of the diversion ie completed. Channel bank or barrisr construction shall be adequate to prevent .eepage into or from the work area. Channel banks or barriers shall not be made of earth or other s~stanoes subjeot to erosion unless first enclosed by sheet piling, rook riprap, or other protective material. The enclosure and the supportive material aha11 be removed when the work is completed and removal shall normally proceed from downstream in an upstream direction. 12. Preparation shall be made so that runoff from ateep, erodible surfaoes will be diverted into stable areaS with little erosion potential. Frequent water checks ahall be placed on dirt roads, cat tracks, or other work trails to control erosion. 1], Water containing mud. silt or other pollutants from aggregate washing or other activities ahall not be allowed to enter a lake or flowing stream or placed in locations that may be subjected to high storm flows. 1t. Structures and aaaociated materials not deaigned to withatand high seasonal flows aha11 be removed to areas above the high water mark before such flows occur. 15. All planting shall have a minimum of 80' survival the first year and 100' survival thereafter and/or shall attain 75' cover after ] years and 90' cover after $ years for the life of the project. If the aurvival and cover requirements have not been met. the operators are reaponsible for replaoement planting to achieve these requirements. Replacement planta shall be monitored with the same survival and growth requirements for 5 yeare after planting. 16. Spoil sitee shall not be located within a stream/lake, where spoil ahall be washed back into a stream/lake, or where it will cover aquatic or riparian vegetation. 17 Any equipment or vehiclas driven and/or operata~ within or adjacent to the o;L....III/l.lo.." ..1...11 be checked and ft\&intained daily, to prevent leAko of mAtoriala that if introduced to water could be deleterious to aquatic life. 18. RaW cement/eoncrete or washings thereof. asphalt, paint or other coating material, oil or other petroleum producta, or any other aubstancee which could be hazardous to aquetic life, reeulting from project related aotivitiea, aha11 be prevanted from contaminating the soil and/or entering the waters of the etate. Any of these matarials, placed within or where they may enter a atream or lake. by Operators or any party working under contract, or with the permisaion of the operators, shall be removed immediately. 19. Staging/etorage areas for equipment and materials ahall be located outside of the atream/lake. 20. NO debris. soil, silt, aand, bark. slaah. .awduet, rubbiah, cement or conoreta or washings thereof, oil or petroleum producte or other organic or earthen material from any construction. or aasociated aotivity of wbatever nature ehall be allowed to enter into or placed where it may be waahed by rainfall or runoff into. watars of the State. When operationa are completed, any exoess material. or debris shall be removed from the work araa. No rubbbh ahall be d.posite~ within 150 feet of the high watar mark of any stream. 9...13 ,~. - ~--' . , PalJe ...L ot ~ sTllB>>lBBD l\1.TPATION CONPI'1'IONS POR NOTIPIC1<TION NOMBIR: 5-60&8-93 21. The Operators shall comply with all litter and pollution laws. ~ll contraeters. s~contractor. .nd employee. shall alsO obey these law. and it shall be tbe responsibility of the operator to ensure oomplianee. 22. NO equipme:llt maintenance .hall be done within Or near any straam channal or laka margin where petroleWll product. or other pollutants from the equipment may enter theSe area. under any flow. 23. The Operators shall proyida a oopy of tbia Agreement eo all cODeraetora, av.bo_tractor.. and the apeS'atoc.' pll'O:lact .",.e,."iaora. copiaa of the Agreell\Olnt ahell be re.dily a~eilabla at work aites at all t~a duriDg parioda of acti~a work ar>d lI\Uat be pre.antad to any Department per.onnel, or personnel from another agency upon demand. 24. The Operators .hall notify the Departm.nt, in writing, et lee.t fi~a (5) claya prioS' to initiation of oonatruction IpS'o:lact) aativitie. and et lea.t fiva (5) days prior to o~letion of oonatruction Iprajaat) aotivitie.. Notification shall be .ent to the Department at 330 Golden Shora, Ste SO, Long Beach, CA 90802, ~ttn: BS. 25. Tha Departll\Olnt re.erve. the riiht to antali' tha projact site at any time to ensure complianee with terms/eondit oos of thia Agreement. 26. The Department re.erves the right to auapend. and/or revoke this Agreeme:llt if the Departmsnt determine. that the circumstances w.rrant. The oireumstances that could require a reevaluation include, but are not limited to, the following: a. pailure to comply with the terma/conditions of this Agreement. b. The infor1'l\&tion provided by tha Operator. in support of the Agreement/NotificatiOn i. determined by the ~epartment to be incomplete, or inaceurate. c. When new infOr1'l\&tion becomes available to the Department representative(s) that wall not known when preparing the origind te:[11ls/condition. of this Agreement. d. The projeet aa described in the Notifieation/Agreement ha. ch&:llged, or conditions affeeting fi.h and wildlife resourcas chenge. CONc:uRUNCI!: IOperatorll' names) California pept. of Fish and Game ;p.,~L f{~ ~leff~ 4 . ~~t~ Signatur~ \~~9+ ate Jnvirnnm.~tal sc.cialist III (title) 11~ -""1'1 (._'~... 3~~f~ (title) _ 9~ /1 CALIFORNIA DEPARTMENT OF FISH AND GAD 330 Golden Shore, Suite 50 Long Beach, California 90802 Notification No.5-766-93 Page ...l of -L. AGREBIIBNT REGARDING PROPOSED STRBAJI OR LlUtB ALTERATION THIS AGREEMENT, entered into between the State of California, Department of Fish and Game, hereinafter called the Department, and John P. Linnit of City of Chula Vista; 276 Fourth Ave.: Chula Vista. CA 91910: (619) 691-5021: (619) 691-5097; State of California, hereinafter called the Operator, is as follows: WHEREAS,pursuant to Section 1601 of California Fish and Game Code, the Operator, on the 28th day of December, 1993, notified the Department that they intend to divert or obstruct the natural flow of, or change the bed, channel, or bank of, or use material from the streambed(s) of, the following water(s) Lonq Canyon Creek. tributary to the Sweetwater River, San Diego County, California, Section __ Township __ Range WHEREAS, the Department has determined that such operations may substantially adversely affect existing fish and wildlife resources including: sonqbirds and all aauatic resources and wildlife in the area. THEREFORE, the Department hereby proposes measures to protect fish and wildlife resources during the Operator's work. The Operator hereby agrees to accept the following measures/conditions as part of the proposed work. If the Operator's work changes from that stated in the notification specified above, this Agreement is no longer valid and a new notification shall be submitted to the Department of Fish and Game. Failure to comply with the provisions of this Agreement and with other pertinent code sections, including but not limited to Fish and Game Code Sections 5650, 5652, 5937, and 5948, may result in prosecution. Nothing in this Agreement authorizes the Operator to trespass on any land or property, nor does it relieve the Operator of responsibility for compliance with applicable federal, state, or local laws or ordinances. A consummated Agreement does not constitute Department of Fish and Game endorsement of the proposed operation, or assure the Department's concurrence with permits required from other agencies. This Aqreeme~t becomes effective the date of Denartment's sianature and terminates October 31. 1995 for nroiect construction only. This Aqreement shall remain in effect for that time necessary to satisfy the terms/conditions of ,this Aareement. &,hj,C:tb 9; If' -----.;- Page -L of ....L.. STREAMBED ALTERATION CONDITIONS FOR NOTIFICATION NUMBER: 5-766-93 1. The following provisions constitute the limit of activities agreed to and resolved by this Agreement. The signing of this Agreement does not imply that the Operator is precluded from doing other activities at the site. However, activities not specifically agreed to and resolved by this Agreement shall be subject to separate notification pursuant to Fish and Game Code Sections 1600 et seg. 2. The Operator proposes to alter the streambed to construct a gabion-lined channel, 26' x 900', impacting 0.54 acres of stream. The project is located at south of Bonita Road and east of Otay Lakes Road, and is bounded by Acacia Avenue to the north and Fallbrook Court to the south. 3. The agreed work includes activities associated with NO.2 above. The project area is located in Long Canyon creek, tributary to the Swaetwater River, San Diego County. Specific work areas and mitigation measures are described on/in the plans and documents submitted by the Operator and shall be implemented as proposed unless directed differently by this agreement. 4. The Operator shall not impact beyond a width of 26' 0>> beyond a length of 900'. 5. The Operator shall mitigate with the acquisition and enhancement of the 2 parcels (total of 2 parcels is 2.5 acres; approximately_1.25_a~res is wetlands) as described in the submitted documents by Environmental Land S~~ut10ns, dated August 31, 1994, in a phone conversation with same, August 25, 1994, and in a phone conversation with the Operator dated August 20, 1994. The parcels are located near Rancho del Rey, adjacent to Otay Lakes Road, in the City of Chula Vista. The enhancement plan for the site shall be submitted for Department review and approval (including a map showing the area for enhancement, work proposed, plant palette, maintenance, monitoring, etc.) no later than December 31, 1994 and shall be installed no later than February 1, 1995. Documentation demonstrating the site's protection status (eg. permanent biological open space easement) shall be submitted to the Department no later than February 1, 1995. It is understood that this mitigation site is serv~ng as off-site mitigation for three projects: 5-766-93 (this project) - 0.54 actes; 5-648-93 (Telegraph Canyon Creek at Third Street with AT&T) - 0.4 acres; and 5-630-93 (Telegraph Canyon Creek between Fourth Street and Hilltop Park) - 0.2 acres. This leaves approximately 0.11 acres available as mitigation for a future project. Any future projects shall be subject to separate notification per Fish and Game Code Sections 1600 et seg. 6. Disturbance or removal of vegetation shall not exceed the limits approved by the Department. 7. . Installation of bridges, culverts, or other structures shall be such that water flow is not impaired Bottoms of temporary culverts shall be placed at stream channel grade and bottoms of permanent culverts shall be placed at or below stream channel grade. 8. The Operator shall not operating equipment in wetted areas (including but not limited to ponded, flowing, or wetland areas) . 9~/~ Page -1- of ~ STREAMBED ALTERATION CONDITIONS FOR NOTIFICATION NUMBER: 5-766-93 9. When work in a flowing stream is unavoidable, the entire stream flow shall be diverted around the work area by a barrier, temporary culvert, or new channel. Location of the upstream and downstream diversion points shall be approved by the Department. Construction of the barrier and/or the new channel shall normally begin in the downstream area and continue in an upstream direction, and the flow shall be diverted only when construction of the diversion is completed. Channel bank or barrier construction shall be adequate to prevent seepage into or from the work area. Channel banks or barriers shall not be made of earth or other substances subject to erosion unless first enclosed by sheet.piling, rock riprap, or other protective material. The enclosure and the supportive material shall be removed when the work is completed and removal shall normally proceed from downstream in an upstream direction. 10. Preparation shall be made so that runoff from steep, erodible surfaces will be diverted into stable areas with little erosion potential. Frequent water checks shall be placed on dirt roads, cat tracks, or other work trails to control erosion. 11. Water containing mud, silt or other pollutants from aggregate washing or other activities shall not be allowed to enter a lake or flowing stream or placed in locations that may be subjected to high storm flows. 12. Structures and associated materials not designed to withstand high seasonal flows shall be removed to areas above the high water mark before such flows occur. 13. All planting shall have a minimum of 80t survival the first year and lOOt survival thereafter and/or shall attain 75t cover after 3 years and 90t cover after 5 years for the life of the project If the survival and cover requirements have not been met, the Operator is responsible for replacement planting to achieve these requirements. Replacement plants shall be monitored with the same survival and growth requirements for 5 years after planting. 14. Spoil sites shall not be located within a stream/lake, where spoil shall be washed back into a stream/lake, or where it will cover aquatic or riparian vegetation. 15. Any equipment or vehicles driven and/or operated within or adjacent to the stream/lake shall be checked and maintained daily, to prevent leaks of materials that if introduced to water could be deleterious to aquatic life. 16. Raw cement/concrete or washings thereof, asphalt, paint or other coating material, oil or other petroleum products, or any other substances which could be hazardous to aquatic life, resulting from project related activities, shall be prevented from contaminating the soil and/or entering the waters of the state. Any of these materials, placed within or where they may enter a stream or lake, by Operator or any party working under contract, or with the permission of the Operator, shall be removed immediately. 17. Staging/storage areas for equipment and materials shall be located outside of the stream/lake. 18. No debris, soil, silt, sand, bark, slash, sawdust, rubbish, cement or concrete or washings thereof, oil or petroleum products or other organic or earthen material from any construction, or associated activity of whatever nature shall be allowed to enter into or placed where it may be washed by rainfall or runoff into, waters of the State. When operations are completed, any excess materials or debris shall be removed from the work area. No rubbish shall be deposited within 150 feet of the high water mark of any stream. 1'/7 '. Page ....!- of ....!- STREAMBED ALTERATION CONDITIONS FOR NOTIFICATION NUMBER: 5-766-93 19. The Operator shall comply with all litter and pollution laws. All contractors, subcontractors and employees shall also obey these laws and it shall be the responsibility of the operator to ensure compliance. 20. No equipment maintenance shall be done within or near any stream channel or lake margin where petroleum products or other pollutants from the equipment may enter these areas under any flow. 21. The Operator shall provide a copy of this Agreement to all contractors, subcontractor., and tha Oparator'. projact supervisors. Copies of the Agreement shall be readily available at work site. at all times during period. of active work and must be presented to any Department personnel, or personnel from another agency upon demand. 22. The Operator shall notify the Department, in writing, at least five (5) days prior to initiation of construction (project) activities and at lea.t five (5) days prior to completion of construction (project) activitie.. Notification shall be sent to the Department at 330 Golden Shore, Ste 50, Long Beach, CA 90802, Attn: ES. 23. The Department reserves the right to enter the project site at any time to ensure compliance with terms/conditions of this Agreement. 24. The Department reserves the right to suspend and/or revoke this Agreement if the Department determines that the circumstances warrant. The circumstances that could require a reevaluation include, but are not limited to, the following: a. Failure to comply with the terms/conditions of this Agreement. b. The information provided by the Operator in support of the Agreement/Notification is determined by the Department to be incomplete, or inaccurate. c. When new information becomes available to the Department representative(s) that was not known when preparing the original terms/conditions of this Agreement. d. The project as described in the Notification/Agreement has changed, or conditions affecting fish and wildlife resources change. CONCURRENCE (Operator's name) California Dept. of Fish and Game (signature) (date) (signature) (date) (title) Environmental Snecialist III (title) 9-/8" ~'~'l FI< I .. ,.!\:') lLi ;t ~.:'\ULt I 'v l::ll h 1-"..1 U ~.J LJ.J.I.. J.I.. ( J, ....,; ..,;l .' .sUe.- ~ crrv OF CHULA VISTA DEPARTMENT OF PUBLIC WORKB ENGINEERING DIVISION May 26, 1994 PO--482 M.. Terry Dickenon Environmental S~.lilt, ill DEPAlllMENT OF FISH AND GAME 330 GoIda1 Shore, Slrile SO Lon& laclt, CA 90802 SUBJECT: Streambed Alternation Notification No. 5-648-93 86S Third Avenue, Chula Villa, CA 92~0 Dear Ms. Dick1non: We have been workini'with AT&T and their rcprcscntatives on the above mentioned project. The projcct plans have been approved for construction and a i:rading permit is ready to be luucd. It iJ our undcrslJinoing that AT&T will have to mitigate for the impactS caused by constructini the concrete lined channel. The City of Chula Villa is currently worldne with your Department on plana to improve the remainder of Teleeraph Canyon Creek in the vicinity of this projcct. Pacific Southwest Biolo~ica1 Services, Inc. Iuu been working with the City to develop ideas for mitigation of anticipaU:d impa.clll which will occur with the construction of improvemcnu for the Telegraph Canyon Creek. AT&T would like to provide the City with a cash bond to be wed in the mitigation of the ovc:.all Telegraph Canyon project in lieu of mi~ation for their individual project to provide for the impacts caused by their project. This money will be used by the City in conjunction with fundi budgeted by the City for mitliatlon and/or enhancement work. The Cllih bond provided by AT&T will be put in separate a=unt 50 that it will not be used for other purposes. We are cum::ntly in the carly sta&es of the desii" for the: City project and at the present time do not have fundin& available for construction. Therefore, it cau1d be a numbel' of years. before the City proj eet could actually be built . EnclolCd i. an catim.a.te of the cost to I'l:StOn: an acre of land in the Swc:ctwala' River pn:pan:d by Kyle Ince of Pacific Southwest Bioloika1 Se1vi= Inc. Th.a.t estimate wu for 0.4 acres of mi~ation. Therefore the $30,000 proposed by AT&T assumes a 1:1 wetlands mitigation with no land &C4iuhtion for the AT&T site. The City is willing to a.c:cqn the future<<.3pOn3ibility for AT&T'. mitif,ation 50 loni u the requirements do not exceed the value of the cash bond piuS a.c.ct'11....... in t.......,. ...L ~~~ 9'1'1 27(1 t-oun1"H ^\/~/CHUL^ VISTA. C':Alll-0f(NI^ >>HllO/\t.191 09n.~)O?' 10 .'"~ ~_"'I 'jo:l "~l I I ...J II" I il'"I-llJ\.ll VI:;;; IH i Iii ".) (., I ,J uJ I ....)1, 1 0:";':)'.;) 1"Id..... wi '-" A'IT 2 May 26, 1994 If Filh and Came i. in auccmcnt with this proposal, AT&T requests that you to amend the watini Streambed Alteration Permit to reflect the propoW. Ifthi. i. acceptlble to Pish and Game, plea3e let me know 10 that an asreement can be prepared to lWW'e that the money will be ut.i.lizod for wctlandllllitig~t;nn and to IW~ that the mitiplion will not cost more than the funds available from AT&T'. cash bond. U you have any qu~tionl pl.eue contact Bill Ullrlch at 691- S 261. WAUIB7-A'ITMIT c: Mario Oates, AT&T Tony Wonseak:l, Project Design Consultants Kyle lnce, Pac:ifu: Southwe.5t BioloJ;i~ S~, Inc. ~ 9--).// CITY OF CHULA VISTA , ~ <<z,- -"=-. - ., ATa.T 10/05/94 211 West Monroe Phoenix, AZ 85003 The City ofChula Vista Engineering Department 276 Fourth Avenue Chula Vista, California 91910 Clifford L. Swanson, City Engineer Dear Mr. Swanson, The propose of this letter is to set forth the teams upon which AT&T agrees to pay to the City of Chula Vista ("City ") any and aU costs incurred by the City in connection with that certain Agreement Regarding Proposed Stream or Lake Alteration Notification No. 5-648-93 ("Streambed Agreement") by and between the California Department ofFish & Game, and AT&T Corporation (AT&T) and the City I. The City agrees t(J complete certain mitigation activities as required by the Streambed Agreement for work being performed by AT&T on property located at 865 Third Avenue, Chula Vista. 2. AT&T has already deposited $30,000.00 with the City for use by the City in completing these mitigation activities. To the extent that the actual cost of such mitigation exceeds this $30,000.00 amount, AT&T shall be responsible for the payment of such costs, not to exceed $45,000. In the event that costs are estimated to exceed $45,000, City agrees to (I) advise AT&T; (2) discuss solutions with Fish & Game; and (3) proceed with additional work only after authorized to do so by AT&T 3. In order to secure this obligation, AT&T agrees to post with the City a cash deposit, a Performance Bond, or some other form of security acceptable to the City, in the amount oUI5,000.00 within 30 calendar days from the date of this letter. 4. City agrees to require the seUer of any property acquired for this mitigation work to represent and warrant that there are no hazardous wastes or other contamination of the property. 5. City agrees that aU mitigation work will be performed by independent contractors, based on competitive bids. City will require aU independent contractors to provide evidence of insurance for public liability, personal injury and property damage, automobile liability insurance, as weU as workmen's compensation and employers liability in amounts typically required by the city AT&T wil1 be named as an additional insured to be provided with notice of canceUation. 6. AT&T agrees to protect, indemnify, defend and hold harmless the City and any and aU of the City's employees or officials from and against any and all damages, liabilities or costs (Including attorney's fees) which may arise in connection with the City's conduct of the mitigation activities described herein; provided, however, that AT&T is not required to indemnify City against damages resulting from its own negligence. 7 If deemed necessary by the City, AT&T agrees to enter a more detailed agreement to memorialize its obligations set forth herein. 1A~ ~ ffi~ F ,,/-.;./ /9-t2- AGREH1ENT FOR PURCHASE OF REAL PROPERTY AND ESCROW INSTRUCTIONS Escrow No opening of Escrow' ,1994 To: Grossmont Escrow Co. ("Escrow Holder") 4757 Palm Avenue La Mesa, Cal1fornla 91941 Attention: Norma Verbeck This Agreement for Purchase of Real Property and Escrow Instructions ("Agreement") Is dated as of September 26, 1994, for reference purposes only, and is by and be~ween Bonita Long Canyon, a General Partnership, Mc.Millin Development, General Partner ("Seller") and The Ci4J of Chula Vista ("Payor") with The Environmental Trust recei ving tit fe ,.1,0 the propet-ty. RECITALS A. Seller Is Ule owner of certain real property, located In the City of Chula Vista, San Diego County, California, consisting of two parcels that total approximately 2.47 acres (the "Property") B The Environmental Trust, Inc., a Cal1fornla non-profit benefit corporation (the "Environmental Trust") will help with negotiating with / the California Department of Fish IX Game (the "Agency") for acceptance by said agency of the Property, as an environmental wetland open space preserve In satisfaction of certain off-site mitlgatlon requirements of the Payor The Environmental Trust will take title directly from the seller to hold and manage the property In perpetuity. C. Payor desires to buy end Seller desires to sell the Property for wetlend mit I get lon, bel ng Assessor's Percel Nos 593-140- 13 end 14. A legal description will be submitted to Escrow Holder by Seller prior to Close of Escrow. Page 1 Of 14 7'-.23 TERns AND CONDITIONS I PURCHASE AND SALE OF THE PROPERTY I I Purchase Price. Subject to the terms and conditions of this Agreement, Payor agrees to pay Seller a purchase price of Twenty Thousand Dollars ($20,00000) ("Purchase Price"), and Seller agrees to sell to tM Environmental Trust, the Property. 1.2 peoosit by Payor. Payor shall deliver to Escrow Holder- immediately upon Opening of Escrow, a City of Chula Vista check for $2,50000 ("Deposit") which sum shall be 11eld by Escrow Holder for the benefit Of Payor The Deposit shall become non-refundable as liQUidated damages pursuant to Section 64 of this Agreement, unless this Agreement has been terminated by Payor pursuant to its. terms If Escrow closes, the Deposit will be applicable to the Purchase Price 2 OPENING OF ESCROW Escrow st!all be deemed open when a signed copy of this Agreement is delivered to Escrow Holder 3 CONDITIONS PRECEDENT TO PAVOR'S PERFORnANCE. The obligation of Payor to pay for the Property is Subject to the satisfaction of all the conditions set forth below (inclUding the approval of certain matters) within the time period specified, if any. If any of these conditions are not satisfied within the applicable time period provided below, if any, or prior to the Close of Escrow (including any extensions) if no time period is specified, Payor may terminate this Agreement under paragraph 6.2. Payor may waive in writing any or all of the conditions, in whole or in part. 3 I Approval of Title Report 3 I I The Environmental Trust w111 receive a current Preliminary Title Report on the Property issued by Commonwealth Title Insurance Company ("the Title company"), Order No ("the Title Report") Within ten (10) days after receiving the Title Report, the Page 2 of 14 9,..2'" Environmental Trust may disapprove the THle Report by written notice to Seller ("Notice of Defect") specifying the matters shown in the THle Report. if any, which are disapproved by the Environmental Trust ("DisapprOved Exception(s)") and stating the specific reason for each disapproval The failure of Seller to receive the Notice of Defect wHhin the ten (10) day period shell be conclusively deemed to constitute the Environmental Trust's approval of the THle Report. 3 1.2. WHhin five (5) days after receiving a Notice of Defect, Seller shall deliver to the Environmental Trust notice as to whether Seller w1l1 cure the Disapproved Exception(s) If Seller will not cure the Disapproved Exception(s), Payor may terminate Escrow by delivering to Seller wrHten notice within the (5) days after Payor's receipt of Seller's notice in which case, any monies, instruments or documents delivered to Escrow Holder and/or Seller by Payor shell be returned to Payor 3 I 3 If Seller notifies the Environmental Trust in writing, as provided above, that H w1l1 cure the Disapproved Exception(s) and Seller fails to cure the Disapproved Exception(s) by Close of Escrow, after using best efforts to do so, Payor, in addition to any other remedy available at law or equity, may elect to cancel Escrow Notwithstanding any other provisions in this Agreement, if Payor elects to cancel Escrow as provided in this Agreement, Seller and/or Escrow Holder shell return to Payor any monies, instruments or documents delivered to them, respect 1 vel y, under the terms of thl s Agreement. 3 I 4. A Disapproved Exception specified in a Notice of Defect shall be considered to heve been cured if the Title Company shall agree to issue the Title Policy described in paragraph 5.4. without the matter being reflected as an exception. 3.2 E1iological Surveu The Environmental Trust shall heve thirty (30) days from the Opening of Escrow to obtain and review a biological survey of the Property so as to determine the suitabilHy of the Property for mitigation purposes. The Environmental Trust shell I notify Escrow Holder in writing as to approval or disapproval of the biological survey within such thirty (30) day period. 33 Government AcceDtance. Prior to the Close of Escrow, Payor Page 3 of 14 9...2.5' stlall obtain a determination from the California Department of Fish & Game that the Property w1ll be acceptable as (1) dedicated permanent open space and (2) that the Property satisfies Payor's requirements to provide off-site wetland mitigat10n as stipulated in the issued Streambed Alteration Permits Numbers 5-546-93 (the AT&T project), 5-530-93 (TelegraPh Canyon Improvements) and the Gabion Channel Long Canyon under Initial Study Number 94-16 Payor shall notify Escrow Holder in writing as to approval or disapproval of this condition. 34 Issuance of Title Pol1cU. The Title company shall be in a position at Close of Escrow to issue the Title Policy described in paragraph 5 4. 35 Deliveru of Documents. Seller shall have signed, acknowledged and delivered all documents and instruments to Escrow Holder as required in paragraph 53 4. CONDITIONS PRECEDENT TO SELLER'S PERFORMANCE. The obligation of Seller to sell the Property is subject to the satisfact10n of all conditions set forth below within the time period specified. If any of these conditions are not satisfied within the applicable time period provided below, Seller may terminate this Agreement under paragraph 6.2 Seller may waive in writing any or all of the conditions, in whole or in part, with prior notice to Payor No waiver of a condition shall constitute a waiver by Seller of any of its rights or remedies, at law or in equity, if Payor shall be in default of its covenants, representations or warranties under this Agreement 4.1 Delivery of Documents. Payor shall have signed, acknowledged and delivered all monies, documents and instruments to Escrow Holder as required in paragraph 5.2. 5 CLOSING OF ESCROW 5 1 Closing Date 5 1 1 Escrow shall close on or before December 1, 1994 or within 15 days following the receipt of the approvals set out in paragraph Page 4 of 1 4 9....2. " 33, If those approvals have not been receIved prIor to December 1, 1994. 5 1.2. The terms "Close of Escrow", "ClOSIng Date" and/or "ClosIng" are used In thIs Agreement to mean the time the Grant Deed Is flied for record by Escrow Holder In the OffIce of the San DIego county Recorder. 5.2 DeDoslts to be made blJ Payor: At or before 12:00 o'clock noon on the last business day ImmedIately before Close of Escrow, Payor shall del1ver to Escrow Holder' 5.2.1 Immediately available funds in an amount equal to the Purchase Price, less any deposIt held by Escrow Holder. 5.2.2. Any additIonal funds and/or instruments (Signed and acknowledged by Payor, if appropriate) as may be necessary to comply with thIs Agreement. 53 DeDoslts to be made blJ Seller. At or before 12:00 o'clock noon on the last busIness day ImmedIately before Close of Escrow, Seller shall del1ver to Escrow Holder' 53 1 A Grant Deed ("Grant Deed") of fee SImple subject to conditIon subsequent that If the Environmental Trust ever dIssolves, the title will go the California Department of FIsh and Game with covenants of Open Space, in a format acceptable to Payor, sIgned and acknowledged by Seller, conveying the Property to The Environmental Trust and subject to matters shown in the Title Report, 53.2. Covenants, provIded, signed and acknowledged by the Trust and acceptable by Payor, that restrIct the use of the property for Open Space, held, operated and maIntained to the same standards currently set for the City of Chula Vista Open Space, in Perpetuity that shall be recorded concurrently with the Grant Deed, and 53.2. Any additIonal funds and/or instruments (signed and acknowledged by Seller, if appropriate) as may be necessary to comply Page 5 of 14 9-.2 7 with this Agreement. 54 Title Policy. 5.4.1. At Close of Escrow, the Title Company shall issue and deliver to The Environmental Trust, with a copy to Seller and to Payor, Hs C.L.T.A. Owner's policy of title insurance with liability in the amount of the Purchase Price, covering the Property and insuring fee simple tHle to the to Open Space vested in The Environmental Trust, free of encumbrances, except: (a) All nondelinquent general and special real property taxes and assessments and any supplemental taxes (Payor is ta>: exempt property non-assessed at close' no proration of taxes), (b) Any senior easements, encumbrances, covenants, conditions, restrictions, reservations, rights-of-way and other matters of record of whatever kind or nature as shown on tM Title Report under paragraph 3 I above as approved by Payor, and (c) C1ty of Chula Vista easement for drainage and drainage and management easement. 6 TERMINATION AND CANCELLATION OF ESCROW 6 I If Escrow fails to close when and as provided in paragraph 5 I of this Agreement, Escrow shall be canceled upon wrHten notice to Escrow Holder from either Payor or Seller. Except as otherwise provided in paragraph 64, Escrow Holder is instructed to return all funds and documents then in Escrow to the party depositing the same with Escrow Holder Termination of this Agreement and cancellation of Escrow, as provided in this Agreement, shall be Irrevocable by either party without prejudice to whatever legal rights Payor or Seller may have against each other arising from this Agreement. 6.2 If any COndition referred to in this Agreement which IS subject to the approval by either Payor, Seller or a third party is disapproved or deemed disapproved in the manner provided for in this Agreement, that party may elect to terminate Escrow and all obligations of the parties Page 6 of 14 9",lY under thi s Agreement sl1all terminate, and neither party shall have any furttter obligation to the other under this Agreement Unless otherwise provided in this Agreement, Escrow Holder shall return all funds and documents then held In Escrow to the party depositing the funds and/or documents, subject to the provisions of Section 64. 63 If the Close of Escrow falls to occur because of eittter party's default, the defaulting party shall be liable for all Escrow cancellation and Title Company charges If Close of Escrow fails to occur for any other reason, Payor and Seller shall each pay one-half (1/2) of any Escrow cancellation and Title Company charges 6.4 IF Payor FAILS TO COMPLETE THE PURCHASE OF THE PROPERTY AS PROVIDED IN THIS AGREEMENT FOR ANV REASON OTHER THAN SELLER'S DEFAULT AND/OR THE NON-FULFILLMENT OF THE CONDITIONS TO PAVOR'S PERFORMANCE SET FORTH IN PARAGRAPH 3 ABOVE, SELLER SHALL BE RELEASED FROM ANV OF ITS OBLIGATIONS UNDER THIS AGREEMENT AND SHALL BE ENTITLED TO RETAIN THE DEPOSIT AS LIQUIDATED DAMAGES, IT BEING EXPRESSLV UNDERSTOOD AND AGREED BV THE PARTIES THAT THIS SUM IS A REASONABLE ESTIMATE OF THE EXTENT TO WHICH SELLER WOULD BE DAMAGED BV PAVOR'S FAILURE TO CONSU~1MATE THIS PURCHASE, IN LIGHT OF THE DIFFICULTY THE PARTIES WOULD HAVE IN DETERI11NING SELLER'S ACTUAL DAMAGES AS A RESULT OF SUCH A BREACH. THIS RETENTION OF THE DEPOSIT AS LIQUIDATED DAMAGES SHALL BE SELLER'S EXCLUSIVE REMEDV. 6V INITIALING BELOW, THE UNDERSIGNED ACKNOWLEDGE THAT THEV HAVE READ AND UNDERSTOOD THIS PARAGRAPH 64, AND THAT EACH PARTY WAS REPRESENTED BV COUNSEL WHO EXPLAINED THE CONSEQUENCES OF THIS PARAGRAPH TO THEM. PAVOR: ( ) 6 t-! (J-'tJMI{'~-'1~ 7. ESCROW PROVISIONS. SELLER: ( ) .r;. 7 1 Disbursement of ~et Proceeds. From the net proceeds of sale, after payment of ell delinquent property taxes end payment of Seller's costs, and payment of those commissions provided for in this Agreement, the balance of the net proceeds shall be peld by Escrow Holder directly to Seller Pege7of14 9~2 'f 7.2 Generfll Provisions. NotwiHlstflnding anytl1ing to the contrary contained in this Agreement, Payor and Seller agree to execute the General Provisions of Escrow Holder, if any, to the extent they are not inconsistent with the provisions of this Agreement. If there is any inconsistency between the provisions of those General Provisions and eny of the provisions of this Agreement, the provisions of this Agreement shall control. If any reQuirements relating to the duties or obligations of Escrow Holder are unaccepteble to Escrow Holder, or if Escrow Holder reQuires additional instruction, the perties egree to make any deletions, substitutions find additions as counsel for Payor and Seller shall mutually approve and which do not materially alter the terms of this Agreement. Any supplemental instructions shall be signed only as an accommodation to Escrow Holder end shall not be deemed to modify or amend the rights Of Payor and Seller, es between Payor and Seller, unless those supplemental instructions expressly so provide 7.3 Payment of Costs. Seller shall pey the documentery transfer taxes, If eny, the cost of the Title Policy, one-half (1/2) of ell other Escrow costs and fees end eny other costs customarily paid by Seller Payor shall pay the cost for recording the 6rant Deed, If any, one-half (1/2) of all Escrow costs, and any costs customerily paid by peyor 74 Escrow Holder Authorized to Comolete 6lenks. If necessar-y, Escrow Holder is authorized to insert the Closing Date as the date of the Grant Deed. 7.5 Recordation of Documents. When all the conditions Of peragraphs 3 and 4 h8ve been satisfied or waived, Escrow Holder shell cause the recordeble or filing instruments to be recorded in the Office of the County Recorder of San Diego County, California. 7.6 Performence by Escrow Holder. Escrow Holder is to be concerned only with those paregraphs under this Agreement where Escrow Holder is given instructions to perform certain acts or with those paragraphs where escrow holders generally and reasonably would be expected to act. Page 6 of 14 9.....:/p Ct 8 REPRESENTATIONS AND WARRANTIES OF SELLER In addition to any otl"ier representations and warranties contained in this Agreement, Seller makes the following representations and warranties, each of which (i) is material and is being relied upon by Payor, and (ij) is true in all respects as of the date of this Agreement and shall be true in all respects as of the Closing Date 8 I AuthoritU to Sell. Seller repl-esents and warrants that the signing of this Agreement, its delivery by Seller to the Environmental Trust, Seller's performance and the transactions contemplated in this Agreement have been duly authorized by the requisite action on the part of Seller, and constitute valid and binding obligations Of Seller, enforceable under the terms of this Agreement. 9 REPRESENTATIONS AND WARRANTIES OF PAVOR. In addition to any other representations and warranties contained in this Agreement, Payor makes the following representations and warranties, each of which (1) is material and is being relied upon by Seller, and (ii) is true in all respects as of the date of this Agreement and shall be true in all respects as of the Closing Date 9 I AuthorltU to Buy. Payor and the individuals signing this Agreement on behalf Of Payor represent and warrant that the signing of this Agreement, Its delivery by Payor to Seller, Payor's performance and the transactions contemplated in Ulis Agreement have been duly authorized by the requisite action on the part of Payor, and constitute valid and binding obligations of Payor, enforceable under the terms of this Agreement. 9.2 No Encumbrance. Payor shall neither encumber nor cause any liens to be created against the Property in any way, nor record this Agreement before Close Of Escrow without the express prior written consent of Seller 10 ENTRV ON PROPERTY Until Escrow is terminated, Payor and payor's employees and agents Page 9 of 14 9....jl shall have a limited license to enter upon the Property to concluct reasonable engineering studies and soil compaction tests, so long as the act i vit i es do not i mpai r the drai nage of or otherwi se damage the Property. After any entry, Payor shall immediately restore the Property to the same condition as before Payor entered on the Property. This limited license shali be deemed revoked upon termination of this Agreement. .payor shall indemnify, defend and hold Seller harmless from and against all claims, loss, liability, damage or expense (inclUding, without limitation, attorneys' fees) arising from or relating to Payor's entry on the Property. 11 CONDITION OF PROPERTY The Environmental Trust agrees (a) that it is acquiring the Property on an "AS IS" basis and based only on its own investigation of the Property, (b) that Seller has made no warranties, representations or guarantees, expressed, implied or statutory, written or oral, concerning the Property or any plans relating to the Property, ancl (c) that Seller has made no warranties, representations or guarantees, with regard to eny lend use control, governmentel limitation or restriction, or the absence thereof pertaining to the Property, or with regard to the physical condition of the Property, inclUding any latent defect or subsurface soil conditions Seller further makes no representetions or warranties as to any land use controls or other laws, rules, and regulations of any governmental egency having jurisdiction epplicable to the Property. The Environmentel Trust shell be solely responsible for complying with all land use controls and other lews, rules ancl regulations. 12. ARBITRATION OF DISPUTES All disputes arising under this Agreement will be resolved by submission to binding arbitration pursuent to the rules of the American Arbitration Association (AAA) The parties agree that arbitration must be initiated within one (1) year after the claimed breech occurred and thet the failure to initiete arbitration within the one (1) yeer period constitutes en absolute ber to the institution of eny new proceedings The aggrieved perty can initiate arbitretion by sending written demend for Arbitration by registered or certified mail pursuant to the aforesaid AAA rules Page 10 of 14 9.. j.).. NOTICE. BY INITIALING IN THE SPACE BELOW, YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE "ARBITRATION OF DISPUTES" PROVISION DECIDED BY NEUTRAL ARElITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING IN THE SPACE ElELOW, YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, EXCEPT AS SPECIFICALLY INCLUDED IN THE "ARBITRATION OF DISPUTES" PROVISION, YOU MAY ElE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL PROCEDURE. YOUR AGREEt1ENT TO THIS ARBITRATION PROVISION IS VOLUNTARY WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE "ARBITRATION OF 'DISPUTES" PROVISION TO NEUTRAL ARBITRATION. PAYOR' ( ) SELLER: ( f!Jr:/f&<<3 //I''1-~ 0.1- 13 COMMISSIONS/CONSULTING FEES ) 131 BrokereQe Commission. Seller egrees to pay a reel estate broker a commission of Ten Percent (10:;g) of the Purchase Price, if and only if Escrow Closes Seller directs Escrow Holder to pay 5:;g of said commission to Smith Properties and 5:;g to Independent Realtors of San Diego, upon Close of Escrow 13.2 Trust Endowment Fee. Payor agrees to pay a one time fee of $10,00000 to fund the endowment for the maintenance and management of the property upon Close of Escrow. Payor directs Escrow Holder to pay said fee directly to The Environmental Trust and Payor is to have no continuing obligation or responsibility as to the maintenance or management of said property. 14. GENERAL PROVISIONS. 14.1 AssiQnment. This Agreement shall be binding upon and shall Inure to the benefit of Payor and Seller and their respective heirs, personel representetives, successors and assigns This Agreement may be assigned by Payor upon written notice to Seller and Escrow Holder Page 1 1 of 1 4 9-JJ 14.2 AttornelJs' Fees. In any action between the parties to enforce any of the terms or provisions of this Agreement or the Escrow, or in connection wlUI the Property, the prevailing party In tile action shall be entitled, In addition to damages, Injunctive relief or other rellef, to its reasonable costs and expenses, Including, without limitation, costs and reasonable attorneys' fees fixed by the court. 14.3 Aoorovals and Not ices. Any approval, dl sapproval, demand, document or other notice ("Notice") which either party may desire to give to the other party or to Escrow Holder must be In writing and may be given by personal delivery, Federal Express or by U.S. mail registered or certified mail, return receipt requested, to the party to whom the Notice Is directed at the address of the party set forth below, or at any other address as the parties may later designate, and w111 be deemed to be received upon personal delivery or deposit In the US mall To Payor' The City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Attn: City Manager To Seller McM11lln Development 2727 Hoover Avenue National City, CA 92050 Attn: Don Knox 14.4 Interoretation. This Agreement shall be construed under the laws of the State of California. The parties consent to the jurisdiction of the California courts with venue In San Diego County 14.5 Titles and Caotlons. Titles and captions are for convenience only and shall not constitute a portion of this Agreement. 14.6 Gender and Number. As used In this Agreement, masculine, feminine or neuter gender and the singUlar or plUral number shall each be deemed to Include the others where and when the context so dictates. 14.7 No Wai ver. A wai ver by either party of a breach of any of the Page 1 2 of 14 /?"J'/ covenants, condll ion'= or agreement~, under tlli s agreement to be performed by the oHler par-ty shall not be construed as a waiver of any succeeding breach of Hie same or other covenants, agreements, restrictions or condition of this Agreement. 14.6 Modifications Any alteration, change or modification of or to this Agreement, in order to become effective, shall be made in writing end In eech instance signed on behalf of each party. 14.9 Severability. If any term, provision, condition or covenant of this Agreement or its application to any party or circumstance shall be held, to any extent, Invalid or unenforceable, the remainder of this Agreement, or tM appll catl on of the term, provl sl on, condition or covenant to persons or circumstances other than those as to whom or which it is held invalid or unenforceable shall not be affected and shell be valid and enforceeble to the fullest extent permitted by law 14.10 MenJer of Prior Agreements end Understendlngs. This Agreement contoins the entire understanding between the parties relating to the tronsactlon contemplated by this Agreement All prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged In this Agreement and shall be of no further force or effect. 14.11 Time of Essence. Time Is expressly made of the essence with respect to the performance by Payor and Seller of each and every obllgetlon and condition of this Agreement. 14.12 Counternarts This Agreement mey be signed In multiple counterparts which, when signed by all parties, shall each constitute a binding egreement. 14.13 ComDutatlon of Time. The time In which any act Is to be done under this Agreement is computed by excluding the first day (such as the day Escrow opens), and including the last day, unless the last day is 0 holldey or Saturday or Sundoy, ond then that day Is also excluded. 14.14 Other Documents. Eoch party ogrees to sign ony other ond further instruments ond documents os moy be reosonobly necessary or poge 13 of 14 9'J5 proper in order to accomplist., the intent of this Agreement 14.15 Duration of Offer. Any obligatlon Payor may have under this Agreement shall be rendered null and void 1f this Agreement is not executed by Seller and returned to Payor on or before October 12, 1994. PAVOR: The city of Chula Vista By: ot-(~/ 1(, 'S ~~.L SELLER: Bonita Long Canyon, a General Partnersrllp, McMl11in Development, General Partner By RECEIVER: The Environmental Trust, a Cal1fornia Non- Profit Corporat ion By Page 14 of 14 9-.3/' COUNCIL AGENDA STATEMENT SUB1\UITED BY: Item / " Meeting Date 11/8/94 Resolution 1771/ Accepting bids and awarding contract for "Placement of Asphalt Concrete Overlay for 1994-95 Overlay Program and Construction of Sidewalk Ramps on various streets in the City of Chula Vista, CA (STL-221~'~,. / Director of Public Works ~ ITEM TITLE: REVIEWED BY: City Manager ~ (4/5ths Vote: Yes_No..x.) At 2:00 pm on September 14, 1994, in Conference Room 2 of the Public Service Building, the Director of Public Works received bids for "Placement of Asphalt Concrete Overlay for 1994- 95 Overlay Program and Construction of Sidewalk Ramps on various streets in the City of Chula Vista, CA (STL-221)." The work includes placement of 1 1/2" to 2" thick asphalt concrete overlay on top of non-woven pavement reinforcing fabric, removal of alligatored pavement areas and replacement with asphalt concrete pavement, cold milling of street pavement iJi certain areas, AC leveling courses, signal loops, traffic control, adjustment of sewer manholes, adjustment of storm drain clean outs, adjustment of survey well monuments, construction of sidewalk ramps, and other miscellaneous work as shown on the plans. RECOMMENDATION: That Council accepts bids and award contract to Daley Corporation in the amount of $1,026,674.00 BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: Funds for this overlay program were included in the Fiscal Year 1994-95 CIP project budget (STL-221). The project was included in the budget to avoid further deterioration of pavement and base material on selected streets in the City This project is similar to past overlay programs in the City in which conventional asphalt concrete paving was used. Also, this program includes installation of pedestrian ramps in order to comply with the new ADA/Title 24 regulations. Bids for construction of this project were received from three contractors as follows: Contractor Bid Amount Daley Corporation - San Diego $1,026,67400 Sim J Harris Company - San Diego $1,068,00000 Superior Ready Mix - San Diego $1,071,757.50 /0 ,,/ Page 2, Item / tJ Meeting Date 11/8/94 The low bid by Daley Corporation is below the Engineering estimates of $1,184,368.25 by $157,694.25 or 13.3%. Staff received an excellent bid for the proposed work. The Engineer's estimate was based on the prices received for the FY 1993-94 overlay program. The specifications require that the low bidder have experience in the placement of conventional asphalt concrete. Daley Corporation (owner of the Rock Quarry on Otay Lakes Road) has had extensive experience in the placement of asphalt concrete. We, therefore, expect the Contractor to place the overlays for this project without any difficulty The project was budgeted as an overlay project based on fixed amount of budgeted funds in the Capital Improvement Program (CIP). At the time the project was approved by the City Council, specific streets to be overlaid were not identified. Attached as Exhibit A is a table showing the streets included in the FY 1994-95 Pavement Overlay Program (Streets I - II shown on the table), which were later identified as those in need of an overlay Disclosure Statement Attached is a copy of the contractor's disclosure statement. (Exhibit B) Environmental Status The City's Environmental Review Coordinator has reviewed the work involved in this project and determined the project is exempt under Section 15302, Class 2 of the California Environment Quality Act (reconstruction of existing structure and facility). Prevailing Walle Statement The source of funding for this project is Gas Tax funds and Transportation Partnership Funds. Prevailing wage scales as those determined by the Director of Industrial Relations, State of California, were determined to be applicable to the work to be done. No special minority or women owned business requirements were necessary as part of the bid documents. Disadvantaged businesses were encouraged to bid through the sending of the notice to contractors to various minority trade publications. Financial Statement Funds Required for Construction: A. Contract Amount $1,026,674.00 B. Staff (Design and Inspection) 70,000 00 C. Laboratory Testing 20,000 00 D Contingencies 29,16947 TOTAL $1,145,84347 III"';' Page 3, Item / tJ Meeting Date 11/8/94 Funds Available for Construction: A. Pavement Overlay Program 1994-95 (STL-221) $1,310,84347 Accounts TOTAL $1,310,843 47 FISCAL IMP ACT: After construction, only routine City maintenance amounting mainly to street sweeping will be required. Completion of the work will reduce the need for extraordinary maintenance such as pothole patching. No estimate can be made of this type of extranrdinary work. Attachments: Exhibit A - Exhibit B - FY 1994-95 Pavement Overlay Program streets Contractor's Disclosure Statement SlH:S1L-221 m:\home\enginccr\agcnda\OVERLAY2.a1h /IF] 1,0-4 RESOLUTION NO. 177/1 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BID AND AWARDING CONTRACT FOR "PLACEMENT OF ASPHALT CONCRETE OVERLAY FOR 1994-95 OVERLAY PROGRAM AND CONSTRUCTION OF SIDEWALK RAMPS ON VARIOUS STREETS IN THE CITY OF CHULA VISTA, CA (STL- 221)" WHEREAS, at 2:00 pm on September 14, 1994, in Conference Room 2 of the Public Service Building, the Director of Public Works received the following three bids for "Placement of Asphalt Concrete Overlay for 1994-95 Overlay Program and Construction of Sidewalk Ramps on various streets in the City of Chula vista, CA (STL-221).": Contractor Bid Amount Daley corporation - San Diego $1,026,674.00 Sim J. Harris company - San Diego $1,068,000.00 Superior Ready Mix - San Diego $1,071,757.50 WHEREAS, the low bid by Daley corporation is below the Engineering estimates of $1,184,368.25 by $157,694.25 or 13.3%; and WHEREAS, the specifications require that the low bidder have experience in the placement of conventional asphalt concrete and Daley Corporation has had extensive experience in the placement of asphalt concrete and, therefore, the Contractor is expected to place the overlays for this project without any difficulty; and WHEREAS, the city's Environmental Review Coordinator has reviewed the work involved in this project and determined the project is exempt under Section 15302, Class 2 of the California Environment Quality Act (reconstruction of existing structure and facility); and WHEREAS, the source of funding for this project is Gas Tax funds and Transportation partnership Funds and prevailing wage scales as those determined by the Director of Industrial Relations, State of California, were determined to be applicable to the work to be done, however, no special minority or women owned business requirements were necessary as part of the bid documents. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula vista does hereby find, determine, order and resolve as follows: 1 Id'.5 section 1. That the City Council concurs in the determination that this project is categorically exempt under Class 1, section 15302, Class 2 "Reconstruction of Existing Facilities" of the California Environmental Quality Act, and directs the Environmental Review Coordinator file, or ratifies the filing of, a notice of exemption for this project. section 2. That the Council does hereby accept the bid of Daley Corporation as responsive and awards the contract for "Placement of Asphalt Concrete overlay for 1994-95 Overlay Program and Construction of Sidewalk Ramps on Various streets in the City of Chula vista" to Daley Corporation in the amount of $1,026,674.00. section 3. The Mayor of the city of Chula vista is hereby authorized and directed to execute said contract for and on behalf of the City of Chula vista. Presented by John P. Lippitt, Director of Public Works C:\re\overlay 2 /0'" V at ity MEMORANDUM Date: October 27, 1994 From: The Honorable Mayor and City ~uncil Suzanne Ramirez, chali~~ional Friendship Commission To: Subject: Commission Action Re: Council Referral 2911 (Russian Sister City) This memo serves to communicate action taken by the IFC at the October 24, 1994 meeting with regard to Council Referral 2911. Establishing a Russian Sister City The Commission is in the process of gathering information with which to provide a full reply to all the issues enumerated in the referral and subsequent Council action on this subject. Meanwhile, the Commission has unanimously passed two motions for IFC recommendations to the City Council. They are as follows: 1 The IFC recommends at this time that Chula Vista establish a "linkage of friendship" with Ussuriisk, Russia, with the intention being to form a sister city relationship in the future if determined to be feasible. 2. In response to demonstrated community interest, the IFC recommends that the City Council send Mayor Nader to Ussuriisk to establish a linkage of friendship, with a letter of support from Mayor-Elect Horton, provided that funds are raised by the newly formed "Friends of Ussuriisk" with matching funds of up to $1000 to be allocated by the City Council. For your information, it is my intention to be present and available for questions at the City Council meeting at which this matter is again before the Council. cc: Jim Thomson, Deputy City Manager Jim Hardiman, Fire Chief //-" November 3, 1994 MEMO TO: Council FROM: Tim Nader, Mayor SUBJECT: IFC RECOMMENDATION I spoke briefly with Mayor-Elect Horton before she left on vacation. She asked that this item be continued to the November 15th meeting when she will be present to hear this recommendation. I support this request. cc: Suzanne Ramirez International Friendship Commission TN:SS:jih //-3 November 3,1994 To: Mayor and Council From: Susan Snyder Re: Council Directive to provide information regarding support and interest in a sister city relationship with Ussuriisk from: The San Diego-Vladivostok Sister City Society and the community of Chula Vista. Also, to provide information on opportunities for economic development benefits. Enclosed in this packet a letter of support from the President of the San Diego-Vladivostok Sister City Society (and past president ofthe Golden Triangle Chamber of Commerce) giving us full support and a promise of assistance in developing a Russian sister city. Included is the information on the Pacific Rim conference they sponsored with the new World Trade Center. Also included: Letters of support from our community, including a letter of intent to assist Ussuriisk in establishing a Kiwanis Club. According to the Chair of the International Relations Committee, this letter represents 80 members of Chula Vista in support of this endeavor. A letter to IFC commissioners from Dr. Randy Phillips of USIU, speaker at the Louisville Conference, Board Member ofthe San Diego/Tijuana Sister City program and member ofthe San Diego-Vladivostok Sister City Society A letter of support from the International Executive Service Corps doing public administrative training in Ussuriisk. They are interested in developing administrative and executive talent from Chula Vista (including the mayor) for their programs in the far east. A copy of the Mayor Golding article that ran in the Russian Advertising Newspaper. (I do not have a copy of the interview they did on Mayor Nader). Samples of support letters from the Vladivostok-San Diego early efforts in 1990. Very recent news and magazine articles on trade in and from Russia and the purchasing power of the new wealthy Russians. The guest list from the Serrano event. An excerpt from the Alaskan Airline brochure on traveling to the Far East. A note on travel. There was some discussion of traveling to Japan and then on to Ussuriisk. Be aware that the cost of going from Japan to Vladivostok Is a hefty $1200. You can fly from San Diego on Alaskan or Korean airlines to Vladivostok for $1200 to $1600 roundtrip. //-1 " ~'r f . Sister City N t>>~ """" ":'~:':;mN"" ,. ,."' :,:.... ;~Jv.~;; ~~,~ ussian Far East . - . . promIsIng regIon for U.S. affiliations One of the American delegates to the NISc ment, trade, exploration of natural resourses U.S. Sister Cities Conference was Greg and forestry, culture, tourism and sports. The Elftman, consul. U.S. Consulate General in region provides unique opportunities for Vladivostok. He and his wife Sylvia, ass is- these types exchanges. tantto the consul general, travelled all the There are a significant number of affilia- way from the Russian Far East to Moscow tions between cities in the Russian Far East/ to attend the conference and meet with the Siberia and the United States. Most of the delegates and SCI staff. He shared exciting programs are successful, especially those information about this region's beautiful with U.S. West Coast cities. Vladivostok and nature with Taiga forests, hills, lakes and San Diego, Khabarovsk and Portland, and rivers; its tremendous natural resourses and Nakhodka and Oakland can share with you economic potential; and its hard-working the success of their exchange programs, their and open people. experiences and plans for the future. Several cities that had been closed to for- The United States Information Service in eign visitors for years and did not have ac- Vladivostok has provided SCI with ex ten- cess to international exchanges are now try- sive information about Ussuriisk, a city of ing to establish cooperation with foreign 200,000 located in a beautiful 'Taiga forest countries. The best form of such coopera- ] 20 miles north of Vladivostok, lion is a sister city relationship. Mayors, city Komsomolsk-na-Amure, a major industrial. ofticials. business and community leaders educational and cultural center in and volunteers from the Russian Far East Khabarovsk Region located on the Amur are very interested in affiliating with Ameri- River; Blagoveshensk, the capital of the can cities. With the help of the United States Amur Province, a vigorous trading hub and Information Service and the Peace Corps, major potato lJrnwinj( region; and Arsenev, vol!lnteer sister city committees have al- _,.a"ffiy of 75,000 which IS-best known for its ready been formed in the cities ofUssu . defense and a growing touris and Komsomolsk. Cities in this reg' n are Those who are interested, please contact looking for cooperation' in many elds _ Alexander Gorev at SCI office. Do not miss education, agriculture, economic de op- our chance! Winners continuedfrompage 6 //-~ scribed differ:: -sreatly from the current re- nah and Batumi. 1 ; l~" h"!l""'" 'II"" n"I-!i,';n'lr(~rl in ",'1;";';'" i \ An Sisto N SCl Them for U New i vietLJ ignea e ha! in be 01\ in SiSl Thr concl! city p. rec i r :i..~f' .1.' . Fa" 1994 T...." Rus~ian IXllice traine~s became the _. ,',er hI reeei\'c ha"ic instruction in an ,'fl,;,n p\lli~'c a~'adem~ Ihi~ pa~1 spring ,kl Ih, kadcr~hip of Ronald Sv.an, Jndi- , Sl.ll~' Uni\Cr;,ity poli~'e chief, and ,.,j.., SO:I'~t.'\nin. heaJ III thc "ocial "ci- .kl'.'ll111~'lll .l! lh,' \,1,IUITTllr P\lll~'e "I, :\: nr RlI"i.1 III t>.b)' IYY-llnJiana ll1l\~'r~'t) Prllh:."or Frank Morn led It: ,[ fr"up 01 .:rinllnal jusll~'e sluden\;, \ i."llilllr and Illher RU!>!>lan Cilic", 'liI\\.Iuj.,c~' COUnl) ha~ c!>lablishcd a iJ, il'.d lI"llnin~ pro~ram \Iohi.:h aim~ to ,I :,,~,d Pllli~h ~Llvcrnfllcnl, as lhe)' deoll ih .1,111,1111 ;.tnJ unr;'1mlliar la"j., of ,III;' J..'lll".'r,lli, ~ll\l.'rnl11l.'nl;" Sln~'C 'lilli,' lh,ln)Ouclq:;lle, haV1.'p.HIICi- ,I :','Ill \111....auj.,ceCllUnl) ssi!>ICri:il), ".,j." ,I' .....:11 .IS the ~'Itie" of Krakow, ""v. p,l/n,ln. TnT'\Jn and Elk Del~gales , ",','n Ir;.lincJ in a Huiel) of areas. such !~;.,n IC~l)Ur':e~. puhlio: ....0Tk!,. economic ,it i'm,'nl. housln~, !>~l~'ial \Ioellare, Ihe I. :r,Hh\1 ,)~I'Ill. ....a;,le ....alertrealmCnl I!'.'" pi..tnnmg ;md archilCClure. Tt,,' pr()~ram \Ioas donc In panner!>hip ill~' l nl\~r!>il) of Wbcon!>in-Mil\loau- RWIf.cr~ L:niversil) and the Foundalion 'iupr,)r! u1' Local Democrac)' in Poland, T:'" (ir'l he.dlh f~lr in Zclenoi!rad, Ru,- .'..1. ".1' "I t:,II1I/Cd h\ \hc 1,;11) ~ ~\,- .J ul:o.:l. uld~ Mvr~ Ihan bW people re~- :'~'J I(lr tlkh;U IC~lS alanl.' JJlr, and "e\- hwnJreJ Illher:o a1lended Ollholite \Iono ,,.; rl,hJJ h.-!>b. appr\l~im.lIcl) 40 percent ,,; ,.r'%lrmal findings and \Io..;re referred to .:1 Ph) ~IClJ.n~. Se\cr;ll nur"es .....enl on lhe trip and, .Ipl.\, lilt: the heolllh lair. lefl behind plenl)' 1_"f,'T!I' .\nu e4uiQ1Tlenl for future tesl- .' Th..,: kll a h,'m"trl\:rit ma,hlnl.' .:and two :11.:1,'r~. ....hlch they laughl physicians ,,'I.' \.\ u,,'. r_du..,lIlon malerials and l:ilfts were also 1....:11 II) lcleno~rad GlflS induded samples ,I h,\nJ i:reme. shampoo, soap, toolh- 'f',"::;:':~;,~~~;:;~~,~:iO;;;';; ~;~;;1~~; ,l11pl"l\\ C lechnlque!> ;:!od teamwork when .]IIO~ lor uilieally ill newborn babies in ','Ih the United Slales .:and Russia, A team .ldm the Uniled Sl.:!le~ fie.... 10 Russia 10 'I,'~enl 41 eour!>e on Ihe neonatal resuseita- ,n pr()~ram TI.\, ,1 Ru~~ian dodnr~ then i:amc to !..111 III I.\,ur~ ...ilh ~ur~con!> III Ihc St. 1.. ,~h'JI.;ll Center anu ....Ilh thc Dululh ".1. .....c.'I\.lWhlgl!>h. Wh,k 10 lh~ United dc',. Iht.'\ ahu ~pent lime III lhe MIOne- ,',ill' ChilJrens HOSp1l31 and In Vermont :1\ .Inlllht.'r do..'lm who had a,'.:ompanied ., t\1l1eTl~;\n mcdll'altcam 10 Rus~ia. 10111)l.\,tng the NISIl'.S. Conference in '\"'<.lm.;.a SantaCru/,CalLf dele~allon led ~.ml.l Cru/ M>I)or SCUll Kcnnl.'dy, ...i!>- ...,\ ,\Iushta. Ukraine The delegation of .,hl InduJcd IwO )'OUlh, . I)llfll1~ Ihe-Ir \1,11. th,' ,kk~.lIion \'is- , Siatar City Na, Exchange Forum' Hospital, homes and lOurist attractions. Much.needed medication, antiseplics and \'Itamins. were deli...ercd b). Cindy' Schuelte, rotarian and chair of the Sister Cilies Com- minee The supplies were welcomed and re. ceived b)' Dr, Sergei Kone\'. and aooul 30 ~[affmcmt'lers ....ere on hand for lhc presen' lation, The donalion was made po~~ible by a gencrous granl from lhe world cndowment fund of Ihe Rotar) Club of Sanla Cruz. As \Ioord aboul the project spread. more donations came in from indh'idual ROlarians and the gran1 acted as seed money'. Santa Cruz currentl)' is researching \Ioa)'s to fur- ther medical eJ.changes with Alush13 CUI.TtJRAI. The Philadelphia Sister Cilie!> PnJgram has been bus)' in recent months with sev- eral art and theater projecls. One such project was the hosling this past sprint of "Distant SUT"\'ivors." a powerful drama aooul the Holocaust and \'iolallons against human, ity, The drama was pre~ented h: a theater group from PhilaJclphii.i 5 Sisler ~Il). T\.1run. Poland. Based on poetic lell.t and selected \Ioril- ings b)' Jewish victims and survivors of lhe Holocaust, 'Distant Survi\'ors" featured American aClors. as well liS Polish actors from the HOI'2)'ca Theatre in TClrun, Poland, The event was a col1aborati\e effon V.ilh Thcalre International E,changc More than 1.500 performing 3r\)~\) from Japan shared their cuhure .... Ith lhe resI- dents ofMinne~ota during the fourlh annuill AmencaJapan Week e\'ent~ held in Mlnne. apolis this spring, The Japanese presenled unforgenable aiflS of Japanese arts and crafts. music. soni, dance and Ihe manial an,. Spectacular stage performances. out- door concem. festival re-enactments. dem- onmations, activities; and eJ.hibits hiB-h- lighled the festivities, which were anended b). lhousands of enthusiastic cilizens and dignilaries (rom lttroughout lhe Midwest. The Minneapolis- Ibaraki Cit)' Cuhural As- sociation hosted more than 100 homesta)'s and dinners ror visitors from its sister cit), of (baraki, Japan. I:~VIR()'M.:STAI. Pine Bluff Sister Cities representatl\'es planted 30 cherry trees al the Civic Cenler in March. a sift rrom officials in Iwai. Ja- pan, to mark the presidenc)' of former Go\'. Bill Clinlon. The gift will also commemo- ratC' Ihe 10th anni\'eT!>ilT) of the ~igning ('If the si~ler cil)' agreement with Pine Bluff 3nd Iwai, Clinlon allended the 1985 !>lsnlOg and mellwai Mayor Eiichi Yoshihar3 "11 has become increasingl) imponanl 10 extend our assistance 10 one another. to communicate cuhurally and to maintain re- lationships with citizens of other nations in order 10 creale a beller .....orld. bLllh f\)r 10. day' and for Ihe fulure iC'neratlons tom(lr, TO....:. Yoshlhara wrolC In a ICl1er to PIIIC Bluff Mayor Jerry Ta)'loT. While no I.....ai officials were able to anend.lwo Iwai studenl) Shlori Yama~u..'hi , ,~ ~: ' 1 ,', Ali pan of "Japan Week," Jbraki sent nurl) 100 pt'rforming urtht~ to ih skI cit)., ~finneapolili. This taiko 1radilional drum &roup ~rlormtd ~fa~ 29 a~ p! same entertainment before a Minne~ta 'l"'-iRlti &smt, home1l1\lon at lhe evenl, Iwai al,n pre~enled the Cll) of Li!de Rock \Ioith se\eralchcrr) !tees 10 mark Clinton s presidenc)' I.\,ent)-five R~sian.. from five reiion~ fRu,~la came 1"Charlolle ~ C carl) lhi~ ..."nl!1wr lhrl'ufh th,' 'Bu~m~'" lor RU'''I.I program, The pwgram con!>)~h 01 15- par- ticipal()r) bu!>inc~s internshIp' anJ lJmil) home ~la) placemenl~. i:omplemenlcd h) group lraiOlng and s{lCi..1 adi\ II), Chari nile SiSler Cilies worked \10 ilh CharlLllle s Coun- cil for Inlernational ViSitOr". East-West Bridie~ for Peace and Internalional House for Ihe program, A wide r::mgc of reginnal hu~ines,e' ....erC' iO\ olvcd \10 ilh the progra1Tl, Intern,hip!> in banJ..lOg, local gm'ernment, engincertn~. manufacturing and broad,ast media were included. Internal10nal trade and eros",cul- turalnaining conliu!tants assIsted with ori- entation and program developmenl A Kodak retail photo oullet opened this spn'ng in Russia ba\ed on 3 siSler eit) rela- tion~hip t'tetween Rochester, N,Y and No\'goroJ, The busines!> is part of a world- wide nelwork of independent retailers out. side lhe United States who contract ....ith Kodak 10 operate mini-labs for Kodak pro- cessing sen'ices. Relired Kodak manaler Diek FillS, .....ho is a member of RocheslC'r Si,,'er Cities, formed th~ c\)mpan) with ~c\crJI ~llhcT Ro.:he~lC'r husiness people aniliateJ .... llh lhe Sl~tcr Cille~ ors.anilalil'n The hU'IOC~' op' partunil) is e:o.pc":lC'd nPl onl) t,l h~' prl)!"ll' able 10 the panner!>. bUI al~ll mCC'lthr ph..,- tographic needs of the NO\ gllrodlJn~ anJ pmdu,'e mone) for good ....orj.,~ tn lhe .:om. munlty IJ"~ Tnkinl! advanlagc 1'1 lIlt' r.I'~J~C 1)1 N^Fi.~ .1nJ M..lt)l.lnu's nel.\,,'sl ''''l'f SlJte a,reement. the Mar) land Intemallonill Oi- \'ision org3ni7ed a husiness mIssion in April to GU.ldJlaJara. the (J.pllJl ':11\ pJ 1.1]""11. " DUTlnf lhl~ \I~" J..i ,,,' Gll\,' Carlo~ Rncra and \1..r)lana GJl,crnor ham DClnalJ Sch...efe~ :olgncJ a !>i~ler aireemenl 10 promOlC eCClr"l:1'lIC covr tion bet....ecn the t....0 ref,~n, The mi. ..ill alIa.... ~far)lar.J comrJn1c) to ~ upon thl!> slr;,n~ p0;II.~al rei':'I!.:>n)hip \\ takin!, ad, ;'~.:.J~c \\1 'AFT A.t~ i..:tC'J fT" Iihcr.d,/.1:1 Ir'l:\" A ~ru;.;r of :!l ~'ill.lcr:' ,Jt Ch.lri !'to,C.. \Ioil~, lheir ~oJest ~lJ:or RI"f Vinroot. \Iocnl 10 their sister ~ll) AreqL Peru in Au~us\. There the) JOined the 1 ambassador to Peru. the -'rcqJ:pa mil' of cuu..atiCln and olh~r lu...,: J,~nll..r;. patlinpale In the d.:Ji..al,.'n ,'I J ne' ement;lI) ~,h,),,1 f.'f mOIC Ir..!r, t>JU In, em,heJ InCIJnchilJr-:n Whal madc Ihe ~~h,),'! 'j'c'::I.l1 ..... fundint.lt hOld been pall1~:ai..lnil: t'lu; the children s p;&rent, u~lnf J,)oJ.leJ r, rials and morc than S30.UOU Tal!>eJ b) ( loue Bailer') owner Je;r:- !'o1Jlncre: dunn tenure a~ ch:tir of lhe .-\rcqJ1r.1 ~u~,,'~ lee of Charh)IlC SiSler (ll1e_, Olher J. included se\ ~ral Chari,)lle R"IJr) Clur Latin Amencan Coallll.ln. mJi\lduol. businesses in ArequipJ . The SISler ClllC'S dclcp.\;\'n .11)" hems such as referen.::e b",,'b. cnll, needed sch\101 supplies, Spanish-En eney~'lopeJ'a!> ::InJ so<.'~'er h.l]I, h\ e:i\e I :o.Chlll11 WhJl ..1., lh~ m<." Ie, HO:J~l and S 'Carlil,' ~ \\.1). '!'Jlur.ll B.'rn I\.llIer, Angels 10 IheOulfldJ h:llC In ,OfT'. All "crc .:reJlcd 1.\,1\11 thc h,:ij' ,'fair. c:o..::hange "tudenl tl) th~ 8ns!'Jn,' Sl~le' Commille~ The ,"'fT"mllCC maJe it pl'ssihl. V.'end~ Rll~er~ or Bn,h:m.:. Queen, Au:o.lrJItJ \I' ~tuJ~ \h,'.ln ,'I ,,'mpule': erateJ ima~ing alone or thc ....orld.~ ad\'an.'eJ pr.,duetion lacihlle~. Pa.::ifi, InlJj.:'lnJ: 1.,,:lleJ n\'Jr Rrht1.Jnc. San Diego. Vladivostok Sister City Society 05 lIleClBO rOpO;XOB n06pllTlHIOD C:l.H 1I113ro / B.la,!JH~or:roK Ii October ~9, ~994 International Friendship Commission of Chula vista I was very pleased to hear that Chula vista has made contacts with tll. Mayor of Ussurisjk to become sister cities. We at the San Diego/Vladivostok Sister city Society encourage your involvement and will assist you in any way that we can. I personally applaud Chula Vista's foresight and vision in beginning an international profile. As past president of the Golden Triangle chanlber o:t Commerce, I know the importance of carving a visible niche in the larger San Diego market. I would like to invite the Mayor and City council IT.embers to join us in welcoming the delegation and participating in the opening of our Vladivostok Center in the World Trade Center. The Honorable Vladimir KUlmetsov, Consul General of the Russiam Federation, will be in attendance. He is the former Governor of the primorie region where both these sister cities are located. Please feel :tree to contact me if you have questions or need any guidance. sincerely, Tana Alcalay president 4350 ~xecutl\'e Drive, Sllite~<2~", San O,C.gO, c/\ 92121 //-'} (619) 457.4113 fax 457-4198 ";";., ~ 'R~ eM 01 ~tUdt4 190 East Emerson Street Chula Vista, California 91911 (619) 422.2095 From: Kiwanis Club of Bonita October 18, 1994. To: Mr. Nikolai Litinov, Mayor City of Usuriysk, Russia. Subject: Establishment of Kiwanis Club in Usuriysk. Dear Mayor Litinov' We have been excited to learn of your interest in having Chula Vista become a sister city with Usuriysk. Bonita, is an area of Chula Vista, over forty of our members, plus their spouses are citizens of Chula Vista. Kiwanis is a worldwide organization for individuals desiring personal involvement of their communities. As a group, we can achieve what individuals cannot :io alone. Thus our motto and the cornerstone of Kiwanis-"We Build" There are over 8,500 Kiwanis clubs in more than 76 countries, and your neighbor Vladivostok, will be having a Kiwanis club soon! We stand ready to assist any and all individuals from your city who are interested in startIng a Kiwanian club in Usuriysk. ":"dM~~ airman International Relations Committee Bonita Kiwanis Club II-t" SENi bY.~.U, C", ;;~~ ; 1 0-.,0-94 . 1; 12PM. U, S, i. I). San uiego~ 4'jo~~I~I;; t. UNlrED STATES INTERNATIONAL UNIVERSITY 10455 Pomerado Road, San Diego, CA 92131-1799, USA, PhOne: (619) 271.4300 Fax: (619) 693.8562 october 1B, 1994 International Friendship Commission City of Chula vista 276 Fourth Avenue Chula vista, CA 91910 Dear Commissioners: I was delighted to hear that several of your members were present at the Louisville Conference. con9ratulations on having such devoted commissioners. As a member of the Board of Directors of the San Diego-Tijuana Sister City Pr09ram and a member of the San Diego-Vladivostok sister C1 ty Society, I want to express my appreciation for the efforts being made by the City of Chula Vista to develop relations with Russia. I was sorry to miss your event at the Serrano's and to see the presentation by James Hubbell. I worked closely with the Hubbell monument project, which was very successful. I also assisted in raising funds with the Tijuana Rotary to send a young architect student with James to Vladivostok last May. I encourage you to pursue this endeavor to further good relations and hopefullY to create a new Sister city relationship alongside the Vladivosto~-san Diego program. Sinoerely, ka/(JI( O~ C .~L'R. e~~ Dr. Randall C. Phillips senior Vice President Emeritus RCP/rge I/~ q BanDles;o Mexico C ty Nalrob . . >- z <( Cl- ~ o ot.: o W 0.. COX OW --' I c..!J__ CI:~ WO ~o.. zE 5211 Constitution Road, San Diego, CA 92117 Phone: (619) Tl3 8519, Fax: (619) 270 8116 U,S,A. __="~N-~ -.,,^,,,,,.,.,,,.,,.-- "~".,..~ .". . - . . . 'Cf .~~~., ',';; ~....... ,~....-,~ .......s..;... ..~.!:'''-l ... ~..... .-:.."-..._.......~:t.........~liiit",.,..,..~...a . r------_.. E October 17, 1994 ~.. i~ OCT I 9 . L . ( - ----..- The Honorable Tim Nader Mayor of Chula Vista CITY HALL 276 4th Avenue Chula vista, CA 91910 Dear Mr. Mayor: As promised last Tuesday I will be very happy to help you with your "Russian Project". I remember my conversation with Angelika villagrana from the Greater San Diego Chamber of Commerce few years ago. However she seemed to like my concept of creation a strong liaison between San Diego and Russian Pacific region, it was too early to promote commercial relations in this area. The rapidly changing business climate around Newly Independent States is reflected by numbers of Russian American organizations, councils, associations, etc. I am very pleased with your great fortitude to establish one in our region. It looks like mentally we are getting closer to the very distant once - Russian Far East. Please keep in mind, that half of my formal education /Master in Political Science Degree, Master in Journalism Degree, University of Wroclaw, Wroclaw, polandl was always related to Russian culture, economy and political system. The Russian was my second language for all those years. It will be a real pleasure to share my knowledge and experience with you. Please let me know if I can be of service to your organization. Looking forward to hearing from you at your convenience. Sincerely, ~D~~ 1/~/tJ @} 'INTERNATIONAL EXECUTIVE SERVICE CORPS STAMFORD HARBOR PARK. 333 LUDLOW STREET ST AMFORD CONNECTICUT 06902 TELEPHONE (203) 967.6000 TELEX 413874 (INTEXUI) FAX (203) 324-2531 lEse Directors John P Birkelund C,'la ""'iF",;1 '''1O'B,::'<>',7 lESe C~ar'T'dn D,,'Jr. Rea(j Cc Inc OWayne O. Andr... C"i; ",'":,' :"':~' ~-J a",1 CEC ':":'1e["',5":1,, :-. Ralph E. Bailey ~~.~ ," C-", 'Co j'",c CEC C:>r::,: ",;: William $, Barrack, Jr. S.=r .~.: ,'.'t ~ .1t ~. , ;e,:;;.:: Ir,C Hon. Lucy Wilson Benson p.t'~ :Jf B~-on 5. ':'sc ". Daniel B. Burke F'C'< :;" " ~E': Cae .21': <2: :-Be Howard L. Clark. Jr. ..-fC-,a-~Y L"''''~Y E':,~' -'~ ': RuthM.Davis P'es "'''"~:;;~,~ C'EC T~'E Pi~&~f :;; ",:. ~' 1-,( George M. Ferris. Jr. C.~'f' E'ec~ _,;- ::,'. .-e F€".~ 6a"'2' ',',;;:'s I': Hobart C. Gardiner FrtcS ;)e~' a~:::' lE: lESe John A. Georges Cra'~a,- d'"":;) :E::: I~:e~a',o~a' F"ct' Fred W. Gluck t.1a 2.:;~:; C ';:;.-'~- Mrr:, 'SE-;:' Ire Earl G. Graves, Sr. F"r;'~n~'a~,;CEC B,ae~ En~pj:i'5E 1,1a;)az ne DavId E. McKinney Former $en,o' v,,:!' Pres'Oem IBM CO'Poratlon Hon. John C. Whitehead Cha,'rma,'" AEA In.eslO'S Inc S€cr€:tJ'y 8"0 Ge'1e'a: Co:.,nsel Richard McGrath, Esq. Senior Pa~m.:' CUI'TlI'T1'ngsl'.loc.J;()0d r,'1f-.1~:IJ"::> ;c~[;RtS~ .- ~ 8' s'rJ-.,~~-r'C::"1 (f_ J :rJi.r~ 'r j',";." ~~ September 28, ] 994 Ms. Sue Snyder Office of the Mayor 276 4th Avenue Chula Vista, CA 9]9]0 Dear Ms. Snyder' It was a pleasure speaking with you recently regarding your interest in establishing a Sister City relationship between the City ofChula Vista, California and the City ofUssuriisk in the Russian Far East As we discussed on the telephone, the International Executive Service Corps (lESC) held a public administration training program for government officials and business executives in Ussuriisk last July and would like to organize a similar program in Ussuriisk next May The program in Ussuriisk grew out ofa series of public administration workshops organized by IESC in Vladivostok, and for your reference I have enclosed a copy of the Executive Summary of the Vladivostok training program. Following our conversation, I spoke with Kay Maxwell who manages public administration programs at lESe. Kay expressed interest in the possibility of including the current Mayor ofChula Vista on the team of trainers who will travel to Ussuriisk as part of the IESC program next May, and she suggested that he fill out an IESC Volunteer Executive registration form. While we cannot , guarantee that the Mayor will be selected for this particular program, the first step in the selection process will be to have him registered in the lESC Skills Bank. IESC always welcomes new Volunteer Executives, and I have enclosed several registration forms in the event that you know of anyone else who might be interested in registering with lESe. During our telephone conversation, I mentioned several organizations and individuals with whom you might want to speak regarding Chula Vista's proposed relationship with Ussuriisk. Accordingly, below please find telephone numbers for Sister Cities International and for Deborah Kimble, lESe Volunteer Executive. Deborah conducted the public administration training program in //.,.// . Ms Sue Snyder September 28, J 994 page 2 Ussuriisk last July I have also provided the telephone number for World Learning, an organization that specializes in developing programs for teenagers around the world World Learning might be a source of support for the proposed teen center which you mentioned during our conversation Sister Cities International. (703) 836-3535 Deborah Kimble: (216) 775-2469 World Learning: (802) 257-775] I hope that the above information is of help to you as Chula Vista explores the possibility of establishing formal ties with Ussuriisk. Please feel free to contact me if I can be of any further assistance in this regard or if! can answer any questions you might have about IESC's programs in the Russian Far East. Enclosures cc' Donald and Dina Hansen Deborah Kimble Kay Maxwell 1/'1..2- '. ,"1:" EXECUTIVE SUMMARY The International Executive Service Corps proposes to undertake a public administration training project in Vladivostok. The need for training has been articulated by the Governor of Primorskii Krai and it is in direct response to his request that we submit this proposal The project will be directed by Richard H. Shriver, IESC Vice President NIS, who will be responsible for administering the program. It has been designed with the cooperation of Dr Edward Hill of Cleveland State University to complement a series oflectures he is already planning to give in Vladivostok under the auspices of the PIDF program of USIA This proposal in no way conflicts with his work under that program; in fact, it complements and enhances it. The project will last a total of approximately three months, although the need for advance planning and preparation will add to that time. Phase I will take two weeks and will involve bringing three volunteer trainers to Vladivostok to make final preparations for the training of the forty participants. During this phase, trainers will also assist in the selection of the participants. Phase II will consist of a five-day hands-on training program to include workshops on "Dealing with the Public's Right to Know", "State and Municipal Finance" and "International Trade and Finance" In addition, an opening presentation will be made on the relationship among the local, regional and federal levels of government. One oflESC's volunteer trainers and a graduate student in urban affairs will remain in Vladivostok for two months to complete Phase III of the program. They will offer follow-up consultations and mentoring for the participants. Approximately two weeks after the conclusion of our training program, Dr Edward Hill will arrive to present his lectures and consultations on "The Creation of a Favorable Investment Climate" While our proposed project stands on its own merits, as do the lectures by Dr Hill, they can and do enhance each other lESC believes that this project offers an opportunity for cooperation among a number of individuals and organizations. We are especially pleased to be able to show cost sharing in the budget with the Christian A. Johnson Endeavor Foundation. This has enabled us to reduce administrative costs to USIA and to provide for some needed equipment to be left in Vladivostok upon the completion of the project. Following the actual training effort, lESC will document, as part of this program, the public administration needs of Vladivostok and Primorskii Krai where US. organizations, grantor and grantee, can be helpful in the long term development of this important region. 11-/3 PACIFIC RIM BUSINESS AND CULTURAL WEEK October 30 - November 6, 1994 Sponsored by the San Diego Vladivostok Sister City Society and the World Trade Center Contact: Phone: FAX: Tana Alcalay (619) 457-4113 (619) 457-4198 Gary Furstenfeld (619) 296-9973 (619) 296-0556 4130 La Jolla Village Drive, Suite 107-130 La Jolla, CA 92037 To celebrate the opening of the Vladivostok Business and Cultural Center in the World Trade Center, a weeks worth of activities have been planned. Please refer to inside for details. . //-/~ Opening: Russia: China: Japan: Mexico' Luncheon - Afternoon Speakers: '. PACIFIC RIM TRADE AND CULTURAL WEEK PACIFIC RIl\l BUSINESS AND TRADE CONFERENCE Tuesday. November 1, 1994 8:00 a.m. - 4:30 p.m. Horton Grand Hotel 311 Island Avenue San Diego, CA 92101 Sponsored by tbe San Diego Vladivostok Sister City Society in conjunction with tbe World Trade Center "TRADE WITH THE PACIFIC RIM" Robert Plotkin -President, World Trade Center-San Diego Daniel Pegg -President, Economic Development Corp. Vladimir Kuznetsov -Consul General for the Russian Federation Gu Huaming -Deputy Consul General of the People's Republic of China Masahiro Tanida -Sr. VP Asian Operations, United American Export Enrique Mier y' Teran -President of EDC of Tijuana Linda Wells, Esq - Key Note Speaker - Dir. of Commercial Law, Dev. Prog. General Counsel -U. S. Dept. of Commerce, Washington, D. C. Elliott J. Hahn, Esq. -Chair of the International Law Section of the State Bar Scott Gerber -International Trade Specialist, (Banking in Russia) U. S. Dept. of Commerce - Washington D. C. Waiter Trask -VP, Bank of America, International Trade Banking Jill Frieze -Sr. Bus. Dev., Officer of Eximbank Cassandra D. Stiles -V.P., Standard Chartered Bank Bill Jimenez -California Export Finance Office Ross Porter -Porter International . $125.00 MEMBERS . $150.00 NON MEMBERS . $35.00 STUDENTS //-If . PACIFIC RIM BUSINESS AND CULTURAL WEEK World Trade Center Bookstore 5th & A Street, San Diego November 2, 3 and 4, 1994 Wednesday, Thursday, Friday 11:00 a.m. - 3:00 p.m. Featuring: Artwork of James Hubbell Photographs of noted russian photographer Sergei Kozlov Artifacts from the City of Vladivostok Sister City Society Dinner Reception with Russian Delegation (members only) Friday, November 4, 1994 6:30 p.m. Elaine Davis 3288 via Las FaJdas Jamul, CA (619) 669-1712 Western BBQ Farewell Party - Hayride, Music & Entertainment Saturday, November 5, 1994 3:00 p.m. - 7:00 p.m. . $20.00 Members . $25.00 Non-members . Hayride $5.00 extra penasquitos Ranch Comer of Black Mountain Road and Mercy Road For information. Contact: Phone: FAX: Tana Alcalay (619) 457-4113 (619) 457-4198 Gary Furstenfeld (619) 296-9973 (619) 296-0556 . 11"/ t FF:OI'I . III '~HOLH~, LE' 'Ellt: I:: '. RAN #6 .J USA today F'I.IUIIE 110. I..:, 1 :,~l ::bbUlJ , r._'~ #6 ppr 4 ~MepV1Ka ceroAHR; ..1 HAVE HOPES FOR THE KNOWLEDGE AND CULTURE OF OUR RUSSIAN-SPEAKING COMMUNITY" Mayor of San Diego Susan Golding gives an exclusive interview to the "Russian Advertising Newspaper" (RAN) The Mayor of San Diego, Susan Golding. was asked to participate as an official obseNer during Ihe December elections In Russia After her return to San Diego we felt it would be of Imerest to our readers to get our Mayor's view of her trip 10 Russia and also to comment on her thoUghts about the growing lies, both economic and cultural. between San Diego and Russia Through the efforts 01 Nick Levenetz we were gramed thiS exclusive Interview on March 17111 In the Mayor's private office. RAN: Thank you MlfyOf' GOIc1Ing for the opportunIty to get your vteWll for our /'Baders. As you know, SoUfhern CallfOf'nla Is hOlfHl for the second larges r group of RlIIJ./an .peaklng people, What pltlCflln your opinIon does thl. community hold In the II'" of our city? Mlyar Golding Well, I think thl! growth of the Russian- speaking community has been relatively recent and will t..k.. time to assimilate and become "clive in the life of the community I think thllt Ru&&laI'I Advertising Newspaper will help to do that by making known what i& available. My hope 1& that the Russian-speaking community will bring the knowledge of RU!l!lia'!:, culture and mak.. thaI part oi our community although Ru&&ian-speaking does not necessarily mean only RUllllian, I reall%. that. "'rom our conversation earlie, I learned that there Is a newly formed American-Ru"alan Bu"i",.s!> Council of Southern O.lIfornla. I hop.thst council" lik.. this and our Slater City l:Ociety will participate In privata ventures that aro olrOQdy going on and will help Increase economic ties between Russia ond S..n Diego Having a Russian-speaking community here makes It posslble. It Is elCtraordinarily difficult to do It when you don't hav. either the language the knowledge of the way things work or ,esources like that And we are most successful In bridging those ties. either In trade or joint ventures, when thero nlroady ill II nlltive cemmunlty In S.,., Diego That is what I hope would oecur and Ita slready oocurring, at 1000t the beginning.. There ar. San Diego companies with )oInt venturoo olready in RUlUlla and the Interest Is growing, bul the,e la allll a lack of knowledge and Information In San Diego about both whst ill happening in Ruaslll today and that there oven 10 II !lubetantlal nuaalan-speaklng community Z;~::Y'~_: ~':r:~' > RAN: What are .eme of the possIble ways YOLJ see In helping In .trangthen ties be~n the Mwfy arrived Immigrants from the former $ovlet country ana AmerIcans. who havv long establ/.had theIr roots here In San Dlago. Mayor Golding' The American-Rullslan Buslnes,," Council that you are GOl1ing up !lnd other org"nlzatlons that involve Ru"sl"n-~fJtlakll'g Immig,:>nts really are the best vehlcies for that, but thll hard,,:;t p"oblem la always the '''Io,ma!'on - what eXI"I" he,e whot tho F\uGt.lan-!:'"e~kln9 commu"Ilty 1$ interellted In and Wishes to got Involved In In the Initial years, ill$ always hard to brldg.. that communicotion Il;lP I think thill newGpaper, no doubt, wiil help to do that Much of the Inter..st that Is occurring becauae of the changes in RUSSia today will be economiC Because there IS a tremendous Inte,..~t '" San Diego In t,;>de and JOint v"nlur..". I think ",ueh of the involvement Will be f"ster thsn It would hav" boon twenty yeart. ago becauS8 01 th" possibility for economic activity 11 I had b.en elected in ufll"" ten. or evon fivo yoar:> ago' would not have had as m"ny meehl1!ol" or converGlltiol'G thot relote to Joint economic actiVity between Ru",,'" ",nd S.." DI..!olu Tt,at's new, &0 It:; a beginning (Pi....".. turn to page S) J /- /7 =-~'':t' , CHOL>"~, LE' 'ENET: '. RAN #6 t. U. S. Today .J RAN: WtI.r wa_ the most ",.mOt'iJb/e plUr of YOUf' trIp to If....,. ., ....yor GoldIng: My trip to Moscow for IeI') days has made me much more aware. I went as an election obaerver and had very little free t'me. During my entire Iih.t,me Russia was closed I have roots In Easteln Europe. because one aide of my family comes from LithUllnill, my grandmolher on my father's side was bom in OdesSll. II was 0 country we knew nothing aboul beeause we couldn't get news from there. Standing In the middle of Rod Square, when be10re It was only block C1nd white pictures of it avallablo, wall a very emolional experlenco ond very exciling. Most of my time was spent Interviewing candidates. meellng with politlclll partiea, analYl.ing how the eleclion Willi going to be slruclured, whl:lthl:lr people in Russia felt that there was fairnesS and a choice, whether adequate Informallon on candldlltes was actually getting out. meeting with election officials -It was really a nOnlltop buslnes" trip. 1'"lIIllIIbll many of the people I met. voters, particulculy on election day and their commenlll lilnd rellctions. Of cour,,", thll election process ilself - a tremendous effort Willi mllde to make It a fair election, although there lire 50me changea 10 be made to make a Iruly fllir elecllon, I Willi Impressed Ihat no matter what parly II voter belonged to - everyone wanted a chOice. foor me coming from a country where everyone votes alone in a booth, seeing people sitting at a table dillCuesing Iheir ballols was a unique experience Bul even though open ballots added to the pru~re on the VOhtlll, it was still a dramatic change. And I had been Invited back, a former mayor of Moscow Popov was here and brought me an invitation on a trade miasion. primsrily economic.: conver~iorl. RAN: A lor of Immlgranr. th.r come he,.. .r. highly educaffld and qUIll/lied professIonals. Whar speclffc __ of ec:onomlc t/l't1wfh tIo you _ he,.. In San Dlef/t1ln the nellt Nuple of YN'- th.r yt1U thlnh they .hould be .ware of, th.t perh.~ they can 116. their ~ta to ffnd employmenr In thOlfe .,.... ....yor Golding Weil, the biggest ..nd ..tronge..t p..rt of our ec;onomy Is in hig'" technology both research and venturing trade exports. I can't think of a better opportunity than that. because Ihere "" many new markels, with counlrie.. thai didn't have them before, such as Russia. Having a knowledgeable way that it works. the language and having technological and business knowledge puts a qualified P4'rlilOn in a very veluable po.ltion. Touri.m Is allilO going to be a fast-growlng area for San Diego. always has been and thai continues 10 be strong. The newer, high growth area. In addition to thai will ~ high tech biology conversion from defen"e companie.. into commercial applications. So having a sc:ientihc and tll(;hnologlc81 bese, languagellln't really thai much of a problem. There a,e all kinds of opportunities and there are San Diego bUSinesses F'HOIIE 110. '=':.. ~-':'~=:':;t,C1~J~ F,~1~. 6 ~e~UKa ~erO.QHR J #6 ppr that will be anxious to ...plore those oppnrt.",ities with people who c..me here already with a working knowledge, the technical expor\ioe ..nd 3100 the knowledge of Ru.slan. RAN: ~.r.rf/ your plan. for San Diego In general? Mayor Golding When I r3n for the office and tod3Y 35 well, prim y coneemG of people who live in San Diego are rel3ted to t need for jobs, economic developmenl and the difficulty in tructuring our economy to One that Is less defense-bas I h3ve spent a good part of the year M3king S3n '\,iego IIn easl.r place to have a business. cutting back~. the r..gulatlons, the cost. starting. ,mrt achieving the orld Trade Conler frMchise. We will have a trade center ~ San Diego for the first time, which will prOVide a deteb lie for people who are InterGGted in Impel'l- export opportunl i"G. SI1n Diego's future is very much tied 10 International .sinesa, II alroody OXlst.... but With Ihe 10...... of tl1e dafllnGe i~u...try and the pas....ge o! NAn A, i feel WII arll tit tI,tI tip 'light now of whal could happen And because of the kinQ of community 511n Diego is aM t~e kind 01 qUlIlity uf lit.. people wa"t, trade, exporb, buslne...... services, financial mlll'kellng, jOlnl venlures are going 10 be extremely important growth industries. They are all related to international effo,ts Tlw Garno gOOG for tourism The Convenllon of Visitur'" TuUl mal<ea an effort to markot SO" Diego intematlon"lIy O."n Diego Is nol a8 weli known as the large, older cities '\luch ea New York L.A 0' San Fr3ncisco SM Diego hap become a large city only in the PIIst decalle. We hllve Ii chanee to present and market something new To tell our Gtory when IrovDllng on t,,,de mlGaionG it ohould bo a combination of trade mi......ions, jOint venlureG and tourisn, at thll Gome time We have the opportunity to do all three dnd part 01 It IS lust g"ttlng to know what the OQpor1unlties oJre and introdUCing people to thom ond ""eh other ' Another maJo' focus wOUI~ be JU31 moklng Son Dlc\lo a safer place to live There will b. continuing concern I about arising vlohtnce, althougl,\ we have had a decrease of Crime In San OIego p..rllculafly over the lasl year but ..ice during the p.....t Ihree year~ People don't feel thaI way, but we have ..dded mo,e pol"e officers. The blgge...t change is that the p""ple who II v_ here are taking charge which In this counlry makes the bi9gest differ.nce 1hl iJ;l concern of people is Ihat we Iivoi "In Ihe corner" of the world, but we do indeed live in thel middle, c,;,nt.lder';,olg 311 the progreas San Diego achieved ,I:, the past years One thll1g I want to do IS establish a data ank in SlIn Diego ...0 that people who wenl to know who d es bu5lne:!.s In thiS 01 Ihat locallon will "'ave t"'at opllon av liable The,e 1$ one o$Iablished in San FI a".;lseo. as part - f th. protocvl ,;,ftlca. yeers ago and I would Itke to ..ee one I, San Diego a... well RAN: ThIInk you very much may Golding fot' the Intervtew. ) / -'j K" .onielAUcn ayne Buss co Calavila ..s&Il A. Caner !1 CoIuworth .lith CoIlim ane Bulow Coombs oarla Coopct lJee Dammann illy Durbin is Fanl-Sabi ~.. GrifI"UI b IIonman nos Hubbell ch.aeL Jenkin. -ocr ICeen uieae Kob.... :.1'01 I..andsman ,b LdIIer o gela Leiro 1tie Burke Li.. >1- milttll M.nlClIl ula Miebocl :nball )loon: thy So Schwanz Jip R. Pryde nh... Reilly ger Revelle .... Scarilorough iJl. Scfanidt ~w Spurlock Jy Swink fce t.:rbaa nnie Willens "Waod ?k1M~ 611= U:7 II CfL~ VL.I'rt)IV'''' 't"t Ie:- OF ?cJ?Pi!Jt.:r 'f'b~ -:p~~Jr1o'\. ,,,; 1 '1'lC!! -1 I Citizens Coordinate for '0 Century 3 1549 EI Prado, Rm. 4 San Diego. CA 9210 1 Tel: (619) 232.7196 November 20, 1990 Mayor Maureen O'Connor and the San Diego City Council 202 C street San Diego, CA 92101 Subject: Sister city relations with Vladivostok Mayor O'Connor: The executive committee of Citizens Coordinate for Century 3 has voted to support the establish- ment of a sister cities relationship between San Diego and Vladivostok, USSR. We feel the geogra- phical similarities between our two cities lend themselves to a useful trading of urban planning concepts and experiences. Both Vladivostok and San Diego are situated on key locations on the Pacific Rim. They are both major port cities, with a need to plan for the preservation and enhancements cZ their harbors. Both cities play important roles in the strategic plans of our contries ior future development. Now, when the Soviets are interested in cultural and economic exchanges, is the best opportunity we will have to initiate a long lasting positive relationship between our two cities. Sister cities status will tie our two vital Pacific regions together in a way not enjoyed by other US Pacific ports like San Francisco or Seattle. That could mean that future Soviet investment could come to San Diego first. We encourage you to accept the mayor of Vladivostok's gracious offer of a sister cities exchange. 1;:e~ccd Don Wood, President II ~ /9 '. National Office PO Boll. 2309 La Jotla. CA 92038 16191454-3343 Founder Linda Smith Honorary Trustee Jonas Salk Executive Direetor Maureen Pecht King Board of Directors Norman Cousins Jonna Faulkner William A Gall William Gordon Rev. Theodore Hesourgh Kay Partney Lautman Nina K. Solarz Mary LH'1denslem WalshOk. Ph.D, National Advisory Board Jane Alellaneer Peter AI:en 'Nallls Annenberg Carol Arlhur I Mrs oom DelUise) Eawara Asner Ed Begley Jr. E!lse Bouldlng. Ph D. Dr Helen Caldlcott Ene Chl\llan, M O. Ann Oruyan Shelley Duvall Dr. Aoben P Gale Tipper Gore Charlie Jones Jeanne Jones Joan 8. Kroc Rear Admiral Gene A. LaRocque U.S. Navy (Ret.) Jack Lemmon Barbara Levin Robert Jay Litton. M O. Melissa Manchester Cotman McCarthy Roger Molander Holly Near LeRoy Neiman Carl Sagan David Ogden Stiers Kaz Suye1shl Robin Williams Herbert F York " January 10, 1991 Mayor Maureen O'Connor city Administration Building 202 "c" street San Diego, CA 92101 Dear Maureen, As you know, MEND has long been involved in the field of citizen diplomacy and in the establishment of ties that promote understanding between the United states and the Soviet Union. We firmly believe that the Cold War's demise needs continuing reinforcement. It is imperative that we remain diligent in our efforts to promote additional bonds between the people of the United States and the Soviet Union, between institu- tions in the two countries and between American and Soviet cities. For these reasons, MEND strongly endorses the creation of a sister city relationship between San Diego and Vladivostok. San Diego and Vladivostok, both port cities located on the Pacific Rim, are natural partners for such a potential relationship. The people of San Diego have already demonstrated an interest in the Soviet Union by their active participation in the San Diego Arts Festival: Treasures of the Soviet Union and by flocking in droves to greet a Soviet naval vessel as it docked in our harbor. San Diego families have responded eagerly when invited to host visiting Soviets who have participated in various exchange programs. The time seems right to take an additional step and establish a formal bond with a specific Soviet city. In this day of increased communication and shrinking distances, the events that affect a city thousands of miles away also affect us. The struggles and successes of Vladivostok will eventually affect San Diego in our increasingly non-insular world. We have a tremendous opportunity to give back to the world community some of our enormous resources by energizing and helping the citizens of Vladivostok find creative solutions to their problems as they watch us strive to resolve our own civic dilemmas. MEND strongly encourages you to pursue the establishment of a sister city relationship with Vladivostok. Sincerely, /}77tt~~~~~ Maureen Pecht King Executive Director 11-- "l.(/ Veteran to Veteran, Inc. '. P.O. Box 179200, San Diego, Calif. 92117 (619) 56~661 William P. Mahedy, Executive Vice President Dec 3, 1990 Hayor Haureen O'Connor and the San Diego City Council 202 C Street San Diego CA 92101 Dear Hayor O'Connor and Council Hembers: As the official representative of Veteran to Veteran, I endorse in behalf of the organization the establishment of a Sister-City relationship between San Diego and Vladivostok in the Soviet Union. Veteran to Veteran consists of a group of Vietnam veterans and others who are committed to healing the scars of war for these who have suffered on either side of any war. Veteran to Veteran members have worked with Australian. British and most recently with Soviet veterans. Hembers made several trips to the USSR at the request of groups there to assist in the rehabilitation of Soviet veterans of the war in Afghanistan. Hembers have also played a significant role In sponsoring trips of young Soviet veterans to the United States. One of the most significant components in healing the wounds of war is economic security. This has certainly been true In the case of Vietnam veterans and we found it equally true of Soviet veterans of the Afghan war. The most consistent requests we receive (after requests for counseling) are for assistance In establishing businesses and for economic connections between our two nations. Because Vladivostok Is a major city and a Pacific port, It Is Intimately connected to the Pacific Rim and to San Diego's own economic destiny. Our experience with Soviets has convinced us that joint ventures and trade between our countries, though difficult at the present time, are the wave of the future. Vladivostok is the key port of entry to the eastern part of the USSR. Its economic, political and even psychological significance Is enormous. We believe that any move to enhance the relationships between west coast cities and Vladlvlstok Is very important. For this reason Veteran to Veteran endorses wholeheartedly and enthUSiastically the Sister Cltyshlp of San Diego and Vladivostok. Sincerely, I i{ ~1:--_ f /f~~4J.l William P. Hahedy Executive Vice President P'ease be advised of our new San Diego mailing address: 4164 Ht. Herbert Ave. San Diego CA 92117 /1',2./ II ).,l., c I.l .,. 'f'n,! 601.1.... E"' J .-. '. . Sunday, October 16. 1994 Russia's rich are shopping for property THE CHRISTIAN SCIENCE MONITOR MOSCOW - Realtor Sergei Komlev, still fresh from a recent real estate training seminar in San Diego, picks up an oversized bro- chure and gazes longingly at the glossy photo. The contemporary California mansion has its own horse.racing facilities, with 98 fully equipped stalls and a three-quarter-mile track. The 257 sculpted acres in- clude a dazzling network of crafted stone ponds. several tennis courts, a putting course and a pool. There is a billiards room, a wine cellar and a guest house with enough bed- rooms to comfortably accommo- date even a horde of visiting rela- tives from Siberia. "It's a palace, sImply a palace," breathes Komlev, getting overly excited in his starched suit and im- maculately knotted tie. "Come on, Anatoly, it's only $20 million," he jokes to a fellow agent in the cramped Moscow office of his Uni- versal Business Consulting real es- tate firm. "Let's buy it." Fed up with ever-changing tax and property laws and scared of dis- playing their wealth too ostenta- tiously, most members of Russia's nouveau riche shun domestic in- vestment. While some content themselves with building large country homes in the suburbs, many opt instead to plunk their money into safe havens abroad. , As stunning profits from Russia's 'fledgling banking and business com- ~munities choke the streets with :Mercedes-Benzes and BMWs, the trend 'of overseas ownership is one that's catching on fast. According to some statistics, an estimated $1 .billion flows out of Russia for in- vestments in Swiss bank accounts ~nd Miami condos every month. See RUllian on r'ge H-15 fJ6\v', UPPI~ f,u~/ II I+-euVT I "J"FtJ~ "",j BlJ~1 ~S OGiT"" OF , Selling prestige A tricolor tabloid with half-page photos, Real Estate Abroadis Mos- cow's premier overseas hstlng, with a circulation of 100,000. It ca- ters to the new breed of Russia', rich, for whom prestige is the name of the game. "Your Neighbor is Mlchaeljack. son!" screamed a recent listing, ad- vertising multimillion-dollar estates in Southern California. "Your Second Home in Switzer- land!" read another, above a photo of tanned young people carrying tennis rackets in front of a large, modern high-rise apartment build- ing. "Russians don't shop around. We select a good bunch for them, they make up their minds, and that's it," says Taru Oksman-Ison, director of the London.based ChiC Invest. ments Realty, which services wealthy clients from the fom,er So- viet Union. "They have been known to see a picture in the paper, contact an agent, say '( want to buy that.' and that's it," she says in a telephone m. terview from London. "The\' go via Harrod's (department store) with all their goodies in a shopping bag and move right in." Like the name of her firm sug- gests, Oksman-Ison sells houses on- ly in London's most chic suburbs, such as Hampstead and Highgate, and also helps enroll her clients' children in exclusive private boarding schools. She says the average price a Russian customer pays for a home is a.bout $400,000. Russian Nouveau riche looking for foreign investments , Continued from H-13 "If you work in Tadzhikistan and make $100,000, what are you go- ing to do with it?" asks Vladimir Friedson, editor in chief of the Rus- - sian-language Real Estate Abroad weekly, which lists property all over the world, "First you buy a Mercedes, but then it gets stolen. Then you decide to buy a villa, but you knOw the ma- fia will burn it down. You want to put the money in a commercial bank, but either the bank collapses or the laws change, and your ac- count is frozen," he says. "It's bet- ter to buy in Florida." Before the end of the Cold War, summering in Nice, France, or the Hamptons on Long Island, N.Y., was not an option for most Rus~ sians. But now many are choosing travel over emigration, while others are supplementing already bloated incomes by investing in overseas gas stations, nightclubs and restaurants, which they man- age from a distance. And because a Spanish villa costs as much as a Moscow apartment these days, investing abroad makes economic sense. "It's an unavoidable evil. All that money is doing is helping the West- ern economy,. says Mikhail Berger, economic commentator for the dai- ly Izvestia newspaper /1-' ,2. ;.... _... k .. Scene IV' /'fc H - 3 "U,",,",LI"L>~Y ...",;' ~. Lit T~ ,,,. '->{ II S5RR.A FlESE1RGH CFN"rH .. SAr,~ Dr~'G-:J !" _I~~ 'e ....r..J:;A ''I' ForgirigaNew FarEastem1\lliance~ . Russia's remotest outposts strike out on their own to join prosperous Pacific Rim. agonizingly slow pace. _ ' Several Japanese flrmsllave set up joint ventures to process lish, with the campa. nles sending their product overseas. The problem 01 ruble convertibil(\y-it is still not possible \0 exchange rubles lor dollars _ at a bank-has put a brake on investment. One Japanese company hds established a Japanese restaurant called Sapporb in Khabarovsk. In ad- .. dition \0 ,ollering genuine Japanese cuisine. the restau- rant is a unique ex- changer 01 loreign currency. It takes in rubles on \he two floors that cater to Soviet customers and receives Japa- nese yen on the top floor, which serves ~ Japanese patrons. Japanese lirms are constrained by the lingering politi. cal dispute between their government.-- and the Soviet Un. ion over the owner- ship 01 the lour small islands at the southern end 01 the Kuril chain, which .__' ._.the_Soviet..Union__ would raise hard currency to.nvest in the seized IromJapan aller World War lI. area's fledgling industrial base. . , __A breakthrough in the 46- year-old disa -. - .. Not surprisingly, Minaker's plan is sup. greement recently appeared closer when ported by political figures in the Far East some Soviet oClicials began to suggest that but opposed by Moscow, which stands to they would be prepared to return the lose the input of the region's raw materials. island~ to Japan. Ilul strong opposition Business leaders also question the ability of developed on the Islands-now home to regions to isolate themselves from the about 26.000 people, mostly Russians-and Soviet economy nearby Sakhalin, with Russian nationalism "You cannot cure just an ear or a linger the rallying force. Yuri M. Polyntsev has set up a prosper. on a sick body," said Alexander Radush- Until recenlly, Japan has given the ing joint venture that caters to the kevich, editor of the Pacific Business News Soviets small amounts of aid and linked commercial and personal needs 01 visiting in Vladivostok. "The patient should be future financial ..,sistance to resolution 01 Japanese business executives. offcring cv- cured once and for all:' the KurU dispute. But last month. Tokyo erything from deluxe hotel suites in a Some Soviet business leaders argue that provided $2.5 billion in trade credits and former Communist Party building to fax the region's relative backward!)ess may be humanitarian asststance with no linkage. and secretarial services. an advantage when it comes to new Some Japanese sources have Indicated -, "Two years ago, we didmrtilaVl>1rSingle---mvestment. -- .. -.-- that the Japanese may be willing to pay as representalive office of a foreign company "It's easier to build a new infrastructure much as $28 billion to resolve the dispute. in Khabarovsk," Polyntsev said. "Now from scratch than to try to rehabilitate the lhere are 14 permanent Japanese offices old system," said Mikhail S. Dalman. here and dozens of Japanc:;c businessmen director of Vladivostok's Acres Corp.. the arriving every day. We're fully booked lor largest private contractor in the Far EaSI. months ahead." The Russian Federalion, which includes r as 0 attract Asian investment ~hat many are establishing so-called (ree economic zones to give them more latitude to offcr tax and customs advantages to foreign companies not available elsewhere in the country Already, the port city Nakhodka, Sakha- lin island and the small Jewish Autono- mous Region have declared themselves free economic zones. The Khabarovsk territory is on the verge 01 a similar move. .Pavel A, Minaker. a senior Soviet econo- DyCIIARLES I'. WALLACE T1\Il:S SIMT '\lKlIUI , KHABAROVSK, Soviet Unlon- Struggling to avoid economic col- lapse, the Soviet ~'ar East is in- creasingly turning its back on Moscow and looking to integrate Into the fast-growing economy 01 the Pacillc Rim. For nearly seven decades, the Far East has served as a Soviet bastion against Asia, a remote outpost whose only purpose was to delend against alien incursions and send raw materials back to Moscow. Now, local governments in the Far East are ignoring Moscow and arc openly scrambling to obtain joint ventures with Japan. South Korea and businesses as far away as the Pacillc Coast 01 the United States. .Even China, the former archenemy. has become a major trading partner in the Soviet Far East. "The government In Moscow is bankrupt and can no longer help us," said Alexander Kaluser. economics correspondent 01 Kha- barovsk's Pacillc Stor newspaper, "Now we are reorienling toward. the Eastern countries, looking especially at how places like Hong Kong and Taiwan developed." Lacking virtually any infrastructure or advanced industry,the Far East is Increas- ingly peddling its vast resources 01 coal. all. limber and gold to Asian nations in exchange tor" hard currency It is importing food and consumt'f goods in return. Under previous regimes. the Soviet Far East primarily developed a military. indus- trial complex ana now desperately needs foreign investments to upgrade and build its other industries. It is looking to Asian nations with experience in cxport.oricnlcd industries to provide the capital while the Soviets provide land, raw materials and cheap labor mist based in the Far East, has drawn up . sweeping plan to have the enllre region declared a free economic zone independent from the rest 01 the country . Under Minaker's plan, in two years the Far East would adopt its own convertible ruble and allow the region's businesses to sell their products to whomever offers the best deal, whether at home or abroad. That Buying and Selling With the Soviets Soviet trade with selected nations. klmllllon, EXPORTS IMPORTS TRADE BALANCE of u.s. dOl'-' 1989 1990 1989 1990 1989 1990 U.S. 842 952 4,553 3,686 ..3,711 -2,734 Japan 2,134 2,455 3,397 3,595 .1,263 -1,139 C....... 61 94 656 1,135 -595 -1,042 China 2,111 2,358 1.722 2,841 389 -484 Auatr8l1ll 28 30 933 387 -905 -356 Slneapore 93 98 159 356 -66 -258 S,_. 152 291 68 415 85 -124 Malayalll 20 40 243 160 -222 -120 , M.xlco 7 14 92 54 -84 -41 1luI1Illnd 57 99 351 Ir6-~294---=17-- PhII1...... 9 2r--~ 26 20 -17 1 HOlle Konc 88 95 43 70 45 25 1990 "aures ....lot the nfll nlM month' of lI'le )ear. SOURCES: Goskoms,lal, USSR blernal frede. 5cMe1 rote.,n Y,ltde 'l"eatboOk. Ptaf'l[COfl While the Japanese have been slow in investing, South Korea has rushed lorward with $3 billion in bank loans and $300 million in eoinmerciilTCredlts. limited autonomy to industry in the region, nomic specialistS believe that 'much or- the. allowing it to retain 30% of the value of its money forthcoining from the industrialized production instead 01 sending it all to countries there will be spent In the Soviet Moscow But that money will go to local Far East and Siberia, one 01 the primary governments to buy food and other com~ troves of Soviet raw materials. modities and will not be available to the "Foreign c'mpanies are holding back, factories to Increase output or eCliciency. watching wha, will happen to our ocono- So far. business lies with Asian countries' - my," said Alexander Leventhal. an invest- have been primarily limited to sales of raw ment speelalist with the Khabarovsk"re=-- materials and purchases of manulactured gional government. "Who wants to Invest goods. Foreign investment is arrivtnJ,at an in this uncertain climate?" ,. /I',).J-- - --- I SOVIET UNION Decl.red Free Economic Zone. Nakhodka Sakhalin Island Jewish Autonomous Region Considering Decl.r.tlon .. Free Economic Zone Khabarovsk RUSSIAN FEDERATION JewIsh Autonomous RegIOn Khabarovsk . Former enemy has become a key Soviet trading partner. vlC~ro")7;":i V""T.m" .".... ..-.. ------ Forging a'Nt . Russia's remotest outposts 5 n " d f lIyCIIAllI.F$I' WAI.I.ACE 11\11' '1.\1' ,,"WillI( }(IlABAROVSK, SovIet Union- Struggling to avoid economic col- lapse, the Soviet ~'ar F..ast is in- creasingly turning its back on Moscow and looking to integrate into the fast-growing economy of the Pacific Rim. Io'or nearly seven decades, the Far ~asl has served as a Soviet bastion against Asia. a remote oulpost whose only purpose was to defend against alien incursions and send raw materials back to Moscow Now, local governments in the Far East arc iRnorinR' Moscow and arc openly scramblin~ La obtain joint ventures with Japan. South Korea and businesses as rar away as the Pacific Coast of the United States. Even China. the former archenemy, has become a major trading partner in the Soviet ~'ar ~;asl. "The government in Moscow is bankrupt anrl can no lon~cr help lI!'," said Alexander Kal\lscr. ('conomies corrcsponricnt of Kh:\- barovsk's Pacine St.ll' ncwspapcr "Now we arc reorienting toward the Eastern countries. looking especially at how places like Hong Kong and Taiwan developed." Lacking virtually any infrastructure or advanced industry. the F'ar East is increas- ingly peddling its vast resources or coal, oil, limbC'r and gold to Asian naliol1!oi in exchange for hard curreney It is importtng food and consumer goods in return. Under previous regimes, the Soviet Far East primarily developed a military-indus- trial complex and now desperately needs foreign investments to upgrade and build its other industries. It is looking to Asian nations with cxp<"ri{'llc(' in rxport-oricntcd industries to provide the capital while the Soviets provide land. raw materials and cheap labor Yuri M. POlyntsev has set up a prosper- ing joint venture that caters to the commcrrial and prrsonal needs or visilin,:: .fapalU'sC' hllsinC'ss ('x('('utiv('s, ()rrC'ring ('v. crylhing from deluxe hotel !';uiLC'S in a former Communist Party building to fax and secretarial services. "Two years ago, we did not have a stngle representative office of a foreign company in Khabarovsk," Polyntsev said. "Now there are 14 permanent Japanese offices hcre and d01.ens of Japancsc busin('R!';mcn arriving every day We're fully booked for months ahead." AfcasoT me to ar t+;ast arc so cn-gcr LU attract Asian investment that many are cstablishing so-called frce cconomic zoncs to give them more latitude to offer tax and custom!'; advantages to foreign companies not available elsewhere in the country Already, the port city Nakhodka, Sakha- lin island and the small Jewish Autono- mous Region have declared themselves free economic zones. The Khabarovsk territory is on the verge of a similar move. Pavel A. Minaker. a senior Soviet econo~ f r 5 I , ! I f r f t r ~ ./ \ '- ~~ p,vs'~S .- ~"l etJ - Dozens of Joint ventures are making big profits in Russia. The secret is high quality - and RusSian management. Joint Ventures in Russia: Put the Locals in Charge b\ PJu! Lawrence and Charalambos Vlachoutsicos Dt;Sf~te obstmate problelns and wldes;;:ead reports of bllur~. dO:C:15 of !();:'It ventures between Western C0mpanles and RUSSlan busmess en utles are thriving. These IOlnt vcn tures are producwg hlgh.quallty merchandise, stakmg out critical fIrst mover advantages m vast geo. graphlcal areas. eXpandlOg aggres- slvely - and operatlng at a profit. The fact IS that the pOSSible gainS from mvestlng In Russia tOddY far out weigh the hazards- Pervasive short ages may be a major constraint on the supply Side, but they present a great opportuntty on the demand Side. Abundant raw matcnals and a huge supply of educated workers give jOint ventures a chance to add substantial value, In response to thiS oppurtunny, thousands of entrepreneurial West erners have VIsited Moscow over the last few years to tcst thl.: water Most, flndmg It full uf mysterious currents and unn:c{)gnlzJhle debris, took the cautious path and walked away But of the relJtlvely few who plunged tn, :1 good numher art: stlll 5wlmmmg. Many hJ.1,,: not only sur vlvc.:d hut prospered 44 In addltlon to al\ the usual prob- lems of dOing bUSiness any\\'here, Western tn\'cstors tn RUSSia face three unfamiliar obstacles to suc- cess The first IS currency con verubdJty The seconJ IS supply shortages. ComrJ.Oles hJ\'e trouble sourcing matenJls at almost every Many investors pulled out. Others learned the secrets to doing business in Russia. kind and often have a terrible tlmc finding basic servIces like banking, transportation, commUniCatIOnS, security, and insurance. The third obstacle is the constantly shifting regulatory and legdl cnVironment. Quite simply, the ground rules change with maddt:nJng frequency, as do thc nature and locus of ~ovcrn mcntalaurhorlty Thesc three ICHl111dJhk obstadcs hJVC kept rn;lllY Western II)VeStorS from plung1l1g In .1 ~d h~lve forced 1/-,2.5'" - others 1O pullout along the way Succl.:ssful IO\nt ventures, by crJn Hast, have found their own Inven tlve ways of surmounting these hur dlcs, and thclf approaches contain discernible patterns, We have interviewed the RUSSian heads of 33 jOint ventures that have been In operation for at least twO years -Ioint ventures with Western partiCipatiOn m bOth ownership and profits were not legal until late III 1987 - to discover what lies behlOd their success In addition to Simple luck and t1mlOg. Not surprlSlngly. we found that in the new capaal1st world as In the old, success rests pnmarlly on a sound business Idea, a proper understanding of the mar ket, Jnd the effiCIent use of resources Isee the Insert "33 JOint Ventures"\, \VhJt did surprise us was that the most successtul Joint ventures have ail learned the same three secrets about domg business III RUSSIa. \\e wtll speak only of RUSSlJ but Ukrame and Belorussia present s:m ilar problems J.nd offer SUT:.l;Jr p05S1 bIlltles for IIlvestment.) 1 RUSSia has a great manv tJlent ed and eXi'e:lenced mJ:',agers Sue cessfullolnt ventures pu~ th.:se lOCJl managers In charge and c.e!e,:,ate r"J,cJlIy 2 Quality matters everv c It JS much to RUSSians as 1t does to \\c~t erners. The successfullOlnt ventures sell the finest goods and ser\"lces they can produce, and they pr0duce as much as pOSSible 111 RUSS!.l. 3 Intractdble problems CJn often be turned to advantage. Key to every joint venture success IS a capJCltY for extraordinarily rapid, adaptive reo sponst:s to problems of economIC turbulence and social chJnge In Pdul Lawrence IS the Wallace Brett Donham Professor of Org,;niza tional BehaVIor Emeritus Jr the Harvard BUSIness School He has swdJcd RusSian organizatIons smce 1987 Chara/ambos V}achol;t.<ICOS IS a senIOr rcsearch fello\\' ul lhe Htln'llrd Bus mess School He haS h.;cn conducting bU.<;Jm:ss 1..Hr. Rus. 5/(1 clnd other EaSlcrn Euro['cQn 1 COUnl(lCs,)lnt.'t~ 1956 He IS ,1 memo bcr of dIe /Olnt RUSSldTl !nrernak i uond! C!Jomher of Commcn':C taS (oro.: on I/WC.;lmcnlS III HtI~.)lIJ 1I:,gVARllllUSlNESS IHVIEW ."~.lnU.H\' h"r:iJ:\' l~.}~ ". \" n' n ~lh:h l)lg..mj:JUonS .ill p/\\bkms he .~ln to look Jnd bch.J\'c like gro......th l'1rr~)rt unl t les_ 11 ,n Radical Delegation It IS now accepted wIsdom among \\estcrn companies that one of Rus. sla's greatest resources IS a highly skilled and educated work force. The best joint ventures have pushed this inSIght one step further by recogniz. Ing that this work force Includes a wealth of managerial talent that loint ventures can, indeed must, draw upon. Finding the tight Rus. Sian to manage a joint venture is a "skier and more arduous task than conducnng a Job search in the \Vest, but the right RusSIan will know :-:-:0rc Jbout indigenous markets and sUfpllcrs, nct\\.'orks and mlOlStneS, regulations and cultural patterns, J;.d work. force strengths and weak- nesses than a \\'estern manager ':Juld learn In years on the lob. A R\.,;s51an manager IS better equlpped to look at possIble panners and as- sess the worth of their experience, persor.nel. sources of supply. and eq..upment. land, and buildings the ~lght general manager is also a great help in negotiating an equitable \('Int venture agreement. ''In Rus. ~~a," as one Russian manager put It, "one cannot really do bUSiness with strangers." In additIon to all the good reasons for hIring a RUSSian as general man. ager, there are also good reasons for not uSlng Western managers or for employing them only as long as thelt specIalized knowledge is needed. For one thing, it is very expensive to keep any Westerner in RUSSia. For another, their presence dtlutes the Russians' sense of responsibility In addItion, their comparatively out. rageous salaries and perks generate Intcnse resentment. In choosing a general manager, V.lestern com panics are often misled by the false conventional wisdom that insists there never was such a thing as effective Soviet manage- ment Considering the enormous handIcaps Imposcd on them by perennial shortages and centralized command and conuol, the general ! managcrs of many SOVIl:t entl:rprises accomplished wonders. an \"e ,'0 rn ~d in ,d Ie y, SI tS a, .r. es 1e .e tS . e jt -, t. C. al :e as ,t es es :e ,n 'y 'y e lC ;n " a :c " .C '5 1e 15 5 n ,- , ;k .93 II',).. " Thl:;,l: m;111:1gCIS stili hJvl: 110 lrJlnIn~ III \Vo,tnn m:lOagl:111l:nt theory Jnd practlcc, of course, but thclT own RussIJn InJnagcment style, deeply rOOled In the rcsllIent culture of the RUSSian mir, or col leCtlVe, has ItS own considerable strengths. For example, Russian ex. ecutives are often strong, personal leaders who practice hands.on, walk-aroundj (ace-to.face manage. i ment. They develop direct bonds of loyalty with employees at all levels. They also practice a unique form of deciSIOn making that combines con. sultation and command by alternal ing pen ods of open, widespread dis. cussion of options with moments of strong, top-down authority in mak ing final dcclsions, In all these ways, RUSSian man agers achieve hIghly effective vcr tical integration Unfortunately, their system emphaSIzes group soli. darlty to such an extent that It dls, courages, even forbIds, the kind of dtr\Xl l.1tcr.ll cotlTJlnJtlon hl.:t......ccn dl:pJrtlllcntS and dlvlslon<, that we scc In Wcstnn companle~. The 5UC cc~sful IOlnt ventures we studied havc gencrally t:ncouragcd RUSSIans The right Russian will know more than a Western manager could learn in years on the job. to use theu famlliar management methods and have only grac!ual!y and selectively antroduced \1, estern practlces. (For a detailed st'-ldy af RUSSian management methods. see our artIcle, "\Vhat We Don t Know About Soviet Management." h\,;r \'cud BU5mess ReVIew, Nc"e~1ber December 1990.1 ~ --. I Oi the jOint ventures we studied, J1! but one are managed by native F ~~~lan executives exerclsmg levels (li 1.1:horlty and autonomy that are r~:11JrkJble by Western standards. In the most successful joint yen Holre we studled, the Russian gen- I;ral manager has entered new busI- nesses, expanded operations Into new CItieS, and launched construe tlon proleCtS, all without advance approval of the Western partner Some IOlnt ventures have specified In then charters that all relations with customers, suppliers, and Rus- sian authofltlcs are to be the sole reo sPQnslbdHY of the RU5S13n partner. RUSSIan general managers them- sdves, alung With rhea more expcri. e:nccd Western panners, argue that thl'> kino of radical delegation is the sure"'l mJU to ~uccess When Ye!tsln W;}'i WI)(Jlng J group of Western busl ne<,<,pcoplc at a recent meetIng In the Kremlin, the fInal .,peaker was .il IlI]lH venture general manager who Lllntrastcu two kinds \ f Western c(,mpJnlt:s The first kind Jpplll.:s ~(, Constant shortages, pent-up demand, and prodigious human and material resources all speak ta the entrepreneurial spirit. tight controls and requires advance I approval for all slgmtlCJnt d~cisions. The second kind - Jnd he held up hiS own Western parmer as a pnme ex- ample-grants its managers conSId- erable freedom. RUSSian managers can certamly accommodate them selves to the first ktnd of partner ship, he said, but the results wdl never be more than a iraction of what the second can .achieve. This comment drew a standIng ovation from the RUSSians present, If contemporary RUSSIan man- agers have a weakness, unfortunate- ly, it is that years of Stdte owner ship and centralized conuol taught them that the reward for profession- al success is the freedom to exercise authority while aVOiding rcsponsi I bihty The old communist apparatus desperately preserved Jll ,luthority for the c~ntcr while masterfully shOVing re~p()nslbd]!v down the throats of m.ln.l~crs Jt thc pCflpht:ry With thiS dcsuuctlvt: cilntr.hhctlUn as their model dnd gOJI tur 70 years, It'S no .....{)nJcr RU~~J.ln m.lnagcrs 1/"',2 7 ~._.' ____oJ__ ........ misconstrue the link between au thortty and responslbdity Gettin~ a RUSSian general man ager to take on full responSibility for a jOint venture often calls for firm measures. For a start, we found that Western partners insist on complete and candtd reports at regular lOter- vals. Many also give their general managers a direct financial stake in joint-venture performance. Paradoxically, an even more criti- cal way of underlining the relatIOn ship between authority and respon. sibility IS to give Russian managers the authority they need to take re- sponSibility - the authority that the commUnist system so stubbornly wllhheld The best IOlnt ventures send strong organizational messages to subordinates, suppllers, eus tamers, government offiClals, and to general managers themselves that the Russtan general manager IS In charge, and v.'estern partners take care to work through their general manager at all times. The lrr:pl1Clt and explicit message is always, ''I'm not the boss. he s the boss" Fortu. nately, the traditIOnal RUSSIan hork collectJ\'e, with ItS alternat):;g cen. trallst and partiCipatOry phases, reo inforces the notion that authority and responslbdllY go hand In hand. The pnnclple of RUSSIan cor,trol goes deeper than rJdlcal delegation of Juthomy to a local CEO how ever The experience of the best 10Int ventures suggests that It is a good Idea to put actual maJortty ownership in Russian hands as well. In fact, only five Western partners of the 33 ioint ventures we studied own more than 50% and none more than 55% This advice puzzles many Westerners, especially now that the law permits 100% foreign owner- shtp, but the reasons are suaightfor ward. Ownershlp has the same effect on Russians that it has on anyone else - it encourages responslbdity, adaptabdlty, and hard work The po. tentlal benefits heighten mOtiva- tion, the risks sharpen the mind. In a counny where both the lJW and the bUSiness environment .He mew Ing targets, a one-Sided bargain IS an especlallv poor bargain. Sharln~ financial risk and respon- slhlllty IS rrud;[1t for other reasons H,\RVARtI RUS!:'\J(S5 REV!EW IJn'l3ryF~bru;lr~' II,lI}J I I '. .-..-., .. -- as well. Russian partners arc often more inclined than their Western partners to reinvest earnings. Most of the joint ventures we studied have yet to repatriate profits to the West, at least partly because their Russian general managers are eager to see their companies grow. The fact that Western partners earn profits direct. ly from the components they sell to their own joint ventures somewhat eases the pain of not repatriating joint-venture profits as such. Another good reason for leaving profits in Russia is the attractive opportunities for investing rubles. One joint venture considered repa- triating profits of some 12 million FOUR CORNERS rubles at a prevailing exchange rate of 120 to I, but the venture's lo- cal manager was adamantly op- posed. "I'd be crazy to give up my precious rubles at the horrendous price I would have to pay for dol. lars," he saId. And he was right. He used the 12 million rubles -a scant $100,000 if converted - to buy a plant that the Western partner esti. mated would cost $IS million to build in the United States. Finding the Right Russian Since radical management delega- tion is critical for achieving fast, cre- ative responses to the rapidly chang- ing Russian environment, the choice of a Russian execuuve is O' mown importance. We ha \ that plenty of managerial ta available, but finding the "s son is sr1ll a formidable chall< is hard to give the search tOC attention on too personal a It the West, the hazards of h CEO are somewhat eased b' factors: First, background an, ences are easy to check and c in depth. Second, business edL is notably homogeneous, I business ground rules are f, to all candidates. Third, cor a mistake in hiring may be sive, awkward, embarrass in contentious, but it can be dOT The Western companies in valved in joint ventures in Russia are not all large corporations. On the contrary, small to midsize Western enterprises started most of the joint ventures we studied. In practice, smaller companies have a number of advantages They are less likely to feel con. strained by rigid investment cri- teria, legal gUIdelines, accounting rules, and other management practices that are sometimes in. appropriate In a turbulent busi- ness environment. And they are more likely to be capable of the adapti ve, rapid responses needed to deal with unexpected situa- tions and to transform problems into opportunities. The number of joint ventures in Russia has increased steadily since the enabling legislation was adopted in 1987 At latest count, there were 6,000 registered joint ventures. Of these, we estimate that 20% are up and operating. Of the 33 joint ventures in our sample, many of which have sev- eral partners on bOth the Western and Russian Sides, 10 have West. ern partners based in the United States. Finland has the second largest number with 8, followed by Germany with 6. Other coun- 33 Joint Ventures tries represented are Italy and Switzerland, each with 3, France wlth 2, and Japan, Sweden, and England with 1 apiece. This dis. tribution IS fairly typical of the general jOlnt.venture population. The maJor business activities of the JOInt ventures are evenly divided between services and manufactunng. The range and dl' versi ty of the services they offer are conSIderable. Some of these, such as hotel, exhibition, and le- gal services, are oriented to West. erners in Russia. Other services are focused on the domestic mar. ker: computer software and sys- tems, telecommunications, mu- sical recording, architecture, and pharmacies. Finally, the services offered by some joint ventures are poised to meet the needs of both Russian and Western markets: engineer. ing, retail distribution, dentistry, security services, business con. sulting, banking, construction, and the leasing of construction equipment. Most of the joint ventures en. gaged in manufacturing started with assembly work, but many have moved on to producing com- ponents In Russia. Four compa. nIes are assembling or manufac- tunng computers, three are machine tools, t......o in roec. supplies and equipment, twe artS and crafts, and tWO in I processing. The 11st then dIve hes: wood and skins process: food flavorings, cameras, aL mated process controls, ven~ tion and warehousing equipm'. and roofing materials. Some of the joint ventI,; combine manufacturing and vices. For instance, the roo~ company also designs and inS< roofing. The makers of vent tion equipment and process ( trois also offer installation training services. The carr. company retails and services equipment it makes. By bee ing full.service companies, t! joint ventures underline t. long-term commitment to d business in Russia. Note: The interviews wHI: Russian. Western ioint vent were conducted br ChalaZar:- V1achoutsicos as part of t.. search study. "Western 1m menlS in Russia: The Proble: Convewble Currency Self-S ciency and Methods of Res lion. M This study was com. sionea by the Greek and Rus rnmlS!lleS of mdustry. J __ 48 HARVARD-BUSINE.SS REVIEW Janu.ry.F~~ :- J':lHlC of these factOrs necessarily Jpphcs In RussIa. PcrsonJI :md pro- IcsslOnal hIstory 15 often clouded in obscurity, compromised by palmcs, or 51mply maccesslble. A candidate's knowledge of business practice IS likely to be limited and IdIOsyn- cratic and is almost bound to be col. ored by the misrepresentations and omissions of a communist educa- tIon. For example, Russian managers Hiring a Russian manager means developing mutual trust across cultural barriers. . ~cr.j to defIne profIts as surplus cash, ..;:) :n the stdtement, "\\'e dld not r:J\e .anv proftts at the end of last year because we bought a factOry" Fm:l.lly, It IS extremely ddfIcult to dIsmIss a RUSSian executive once hlr~d. a holdover from the tradition- .11 SOVlc:t system of full employment and lifetime tenure. One JOint venture in Qur sample ~Hred a general manager with appar- ently all the nght expenence and contacts, but as tIme passed, a clear dlsagreement developed about baSIC bus mess objecuves. After a string of heated disagreements, the \\'estern partner decided to let the man go, ! only to discover that he could not be ,,-,ade to leave; he snll had the firm support of the RUSSian partner, a government ministry where he had been a tOp bureaucrat. The mIniStry I \"'as not about to Violate the Russian norm against firing its own people except In the most extrcmc C1H.;Um- ~t:mces. The Western partner even- ;ally sold ItS interest to another V.l.;stern company wllh a somewhat dllicrent bus mess concept, and the Husslan manager is sull In place Conventional wisdom In the West holds that SInce strong personal and hll.:rarchlcal rclatlonshlps governed i tht.: conduct of the commuOIst econ- omy, It is critical to hire a person Lrmly tied into the old networks. ThiS IS generally good adVice, SlOce the old networks still have grcat In- fluence. But 10 the real world, lack of lOiuatlve and dearth of Imagination can render even exalted connections worthless. One jOint venture picked a former ministry offiCial to run a fragrance company whose only customer was its own RUSSlan part- ner, the Soviet ministry where the ' new manager had previously held a high-ranking post. For a lime, this cozy arrangement worked well. The ministry paid hard currency allocat- ed by the state for all the JOInt ven. ture's production. But the general manager, devoid of market judg- ment, failed to culllvate any other customers. When the Soviet govern- ment collapsed and the ministry closed, he was completely at a loss. FlOally, on the strength of a rumor of avaJiable hard currency, he came up ",lIh a desperate scheme to sell hIS entire production 10 tiny Latvia. A talent search must focus not only on IOdusuy rel.stlonshlps and experience, but also on IOtclhgence, fundamemallntegrity, and personal expectations compatible wnh the strategy and goals of the \Vestern partner The most successful}oint ventures 10 our study have under- stood from the outset that th~ devel- opment of a trusting relationship across barflers of language, culture, education, and world VIe..... requires a generous in\'estmcnt of time and attentlon. Some brought RUSSIan candidates to thcir Western head- quarters for extenSive formal and informal interview 109 and evalua- tion. Most at least tOok the time to build personal relationships be- tween their own tOp managers and the Russians under consideration. All engaged in an ongolOg, reitera- i tive process of discussion and prob- 109 that ranged back and forth from casual SOCial diSCUSSions to concen. trated dialogues on stratcgic busi- ness issues. In seeking a Russian general man- I ager, Western partners look for self- confidence, inttlative, and sophisti- cation, as well as work experience. They pay attention to thCl! own fust Imprcsslons and Instinctive likes and dlsl1kes They ask ques- tions to which they alrc.1dy know the answers, often nn sensitive tOp' 993 J;AP'_AflO nUSI~lSS RE.V1EW l~nuJI)" Fchru;H)" 1<,)93 //,,,{ , ICS, such as tax aVOidance and em. ployec benefit requirements. They test candidates by asking them to set up appolOtmcms with key offiCials, buok hotel space, arrange for Visas, secure official statistics or a draft of pendlOg legislation. They tease out underlYIng beliefs about business ethics, profitS, labor relations, and political institutions. In one case, an American investor and his eventual Russian general manager met at a party in Moscow and liked each other immediately They continued to meet, talked business by the hour, and progressed through phases of mutualtestlng to a relatlonship of friendship and trUSt To.....ard the end of this process, thc American inVited the RUSSian and hiS wtfe to the United State5 to visit hiS mldwestern home and b:"'Sl ness. He Introduced them to lner.ds and aSSOClates and gave the F,uss:.1.::' a chance to wander through h:s ):-.-":5: ness and ask questions_ The RL:SSian demonstrated clearly that he '...lnder stood \...hat made the buslness t.~k, and the next time the Amencan \\ dS An American investor visiting a Russian's office was intrigued to see a portrait of Napoleon, in RUSSia, the twO men began devel oping a specihc JOInt-venture plan. Every step of this process was 10- dispensable, from informal soctal contacts all the way to business diS- cussions resembling the oral exam I nations for a Ph.D Even tnn;!l ~Jnd personal detaIls can pia)' a role In buildlOg trust. When the AmCTlC3n Investor Visited the RussI..m's olflce, he was Intrigued to see a portrait of Napoleon 10 the spot many Russi3ns still reserve for Lenin. The RussiJn found himself l)Jdly rcassurt:d tL) JIS' cover J gJ:cho .....ith an Onion dome In the Aml.'rICJI1 s garden. RepeJted transatl.1nuc \'1::iItS Jnd dct'l.ltcs (10 bUSiness qllestlons, such as the mer its of advertlslng, have kept the rda. -, 49 ~ I ,- I ~r - - ;:>u:ce.:;sf..1 : ;1~;:~ ~_-::::;'it ~ "~n;","~5 ..:',: .:' ~ ---.~~".-< ,; .," ~.~,~...u.~~' ~ - -- .-' - , ;..0- """ m.i", "" _y con ':)ro:',. --' .:n:I1'-: ,~ ,', r.c "",",ro,= --.--.,=-- -_/ - . m;;", - -- .". " " :,;~~~~S!;l~:)s::-r.;,~~ ': .:.. -~.......~...._.~..-" - . - -..-,,- . ~ ~..;-- . ,0-' .' "'. ,- " ,~/ t1i'fii1':-'.... ..~ ...-' -.--- . ...-'-. /' _ J:IJrli"tG;"" ;. , ~-.-.J' -:.~-_.~ ~ - 1.?-:~'''' -- .. ,,' . ~ ~I ",\,;-'~~'2/'\~""""-' ,. ~ ,.~. _ '-, ' -:,..1 r..:::: ~\-]"~:"'.: "':-,' I"J;,' .. ,.{9.:(. ~ "\".'!~""~' li:_ ' j'~ -....:: ,_~-iO- -~'-"~"";. , ~ IS. . -... ;'~:' -F 'P ,~~ :g.r 5" '-< !J\: -\.. ,I ' _=-= -/,.1,:",,", ',' '- :,: -:-= ..".;:;t J.:,.-- ,<-' - ------ -~ -'-.;:.~~~ ~- "" -~. .,--::-=--': -~ .., . . , . "C.'- ........-.... ,,<i~' , ~', - ,I ~.y}<;..,\. ~ .- ~'.. "_ _' ""f;-~.J'.i< ~ "'" ._',Jii-~ ~::,,): .:.~ _ ~ "'-........ .;'II.~t.~~';'-;:~'''''''''' ,:?~. ....:;::...;.".....' .~. ./:~ .' ~ ,.~,' jZ~: -~- - ~~.=:~ ~~l\.' I I ~ .._~---. t ,;-:~\~~~~~ tlonship alive and healthy The American now invests additional funds in the venture on the basis of a bnef dISCUSSIon and a handshake. Quality, Opportunity, and Service Even though RUSSIans lack con. sum~r products of every kmd and are apt to buy almost anything that comes thelr way, the most prosper- ous join t Ventures are those selling merchandise and services of the highest quality Junk goods still sell in Russia, but only for rubles, not hard currency Moreover, sellIng junk won't win you a permanent place in the market - Russians ace sick of products that don't work. While selling hlgh.quallty merchan. dise to Westerners for convertible currency rcmams a small but lucra. tIve nlche for some 10lOt venturcs, the big market IS sull the native Russian market. A German publIsher entercd lOW a jOint venture to hung out a sleek women's fashion monthly In Rus. 50 I' -ra. .' f is ! . ~ ... ':. . . '. .~ .- .-- - :-- ._--~ . ,...:: '~ ...... :..--- ..... ...:- :-'~'---;'-'~ '.---~..- . .....4'~~~....,;-v- _~_ ..~..;.~_r---- '..' - ~--_.... '~-' /' ---" .- -- .,. . . ..-~--- -== sian, with a cover price in rubles. Skyrocketing inflation sent the cov. er price soaring, but demand soared as well. The magazine is the glossi. est, most attractive, highest quality look at clothing most Russians have ever had, and they seem willing to pay the price. The most successful joint ven. tures also add as much value as they can inside Russia. This policy con. serves hard currency It also makes maximum use of Russia's highly skilled and educated work force, giv. ing an enterprise access to skilled talent that can be paid in rubles. AT&T, for example, recently hired 100 hber-optic scientists 10 Moscow at $60 a month, In a more complex example, a Ger man machine-tool company, faced with a severe challenge at home from Japanese competi tors, has strengthened its position by means of a loint venture with RUSSia's best machine tool maker The C~rman company's trucks carry its hIgh-tech parts to Moscow and return with //-::1(;) - , i less sophIStIcated parts from the RUSSlan factory Iwhich, incidental. Iy, the Germans first reequipped I, Both plants then assemble complete machme tools at a COSt permitting each to make a profit selling com. petitlve technology at competitive prices in its home market. By bal. ancmg the value of the parts movmg east with the value of those moving west, the venture also avoids hard currency exchanges. Even more im. I portant, the high quality of the ma. chine tools it sells in Russia com. mands partial payment in hard currency, wh,ch is then used to reo pay the German investment. ThiS baSIC approach to the curren. cy problem - the production of high, quality goods in Russia in order to earn some hard currency in Russia- is used by every joint venture we studIed. Overall, it has been their single mo~st important source of con- vertIble currency Despite their bad reputation m the \Vest, Russian workers can be excel- lent employees. Under the commu. nlsts, millions of people workmg in state enterprises were egregiously underutilized. Some experts esti. mate that the old system used as lit. tle as 10% of the productive, cre- ative capacIty of its workers. Any orgam:ation giving workers the op- ponumty to use even 50% of their potentIal will create an impressive I gain 10 value as well as a happier work force. A FInnish paint compa. ny had no trouble recruiting excel- I lent Russian employees for its joint- venture paint plant, which rising productivity put into the black after Selling junk won't win you a place in the market - Russians are sick of cheap goods. only three months. 'A'hen a U S manufacturer gave all ItS JOint-Ven- ture employees tWO weeks of hands- on U3lntng at a subsidiary plant in I Germany, they qUickly matched the performance of the German plant on their return tQRUSSla. PHOTO BY VlADIMIr! PCHO'.KINiFPG r e r To .1tU.lct and motlV,1tC their RUl" SIJn \\'Mkcrs, JOInt ventures com moo!)" r.1Y then employees 10 rubles at up to tWice the rate paid by the sute- In Jddltion, they invanably give supplementary rewards based on performance. They also offer spe cia I perquisites such as access to foreIgn goods, trips abroad, special medical care, and recreational op- portunities. Some companies go to great lengths to secure apartments for their employees. ServIce IS still the exception rather than the rule in Russia. Sue cessfulloint ventures make that fact work for them. They cater to their workers In ways that are e!lurely new and hugely welcome. They In. I traduce the notion of serVlce into sales and maIntenance. They cap I tah:e on the perception of quality JS 3 sen'lce m Itself. JOint ventures also act as good cor rorJ~e Cltl:ens by providing ser\'1CCS to thel! communities. They sponsor UnIversity scholarships. The}' CUltl vate cordIal relations \,"'ith external constituencies and the media. They aSSIst both suppliers and customers In updating their technology In fact, they use service in the broadest sense to solve many of the problems they encounter with suppliers, bu- reaucraCies, markets, work lorce, and customers. Aggressive and inge nious problem solving is a trade mark of successful joint ventures. i. From Housing to Popcorn The third dIstinctive featute of successfulloint ventures is their ca- pacity to grow opportunistically, turning intractable problems intO excuses for aggressIve expansion into new bUSinesses and regions. In the East as In the West, a solid, cen. tral bus mess Idea IS Indispensable Rut In Russia, successful companies 2re conspicuously flexible around the edges. When they can hnd no local source for services and supplies that the company or its employees need, they are apt to enter these busmesses themselves and turn them mto extra proht centers A computer company hnds Itself In banking and hshmg. A bUIlder of prefabrIcated housing IS also In den- tal care, used cars, and popcorn. ,. g " s ,:]. ::-So :n ::.e on FOUR CORNERS However It m.1Y look 10 ,," out Sider, thiS kmd of dlVl'rsdlC.JtlOn IS rarely random. We found th':ll most successful IOtnt ventures resist the temptation to fill every VJCJnt bUSI- ness niche they come acrosS. Their secret is to seize the empty niches When joint ventures find no local services, they start those businesses themselves, that are barriers to the pursuit of their particular bUSIness compe tenee. Each new proJect solves a problem, meets an internal need, secures some service or product that 1S in very shon supply, provldcs an outlet lor accumulated rubles or a source of essential hard currency, or, at the very least, explolts some special capacity or set of relatIon- shIps possessed by its RUSSIan staff. A SWISS jOint venture dealing in medical diagnostic kitS dlustratcs step by step organIC gro\\,th of a kmd that stIcks very close to com- pany knitting During ItS fast year ID operation, the joint venture sold, at a very small profit, kits Imported from Switzerland. The second year, It improved its profits by importing components and assembhng and packing the kits on a new assembly line in RUSSia. The thud year, the loint venture invested in local Rus- sian production of a number 01 com, ponents such as test tubes and small bottles and so began expanding into its Western panner's areas of exper- tise. Similarly, a joint venture with an luhan restaurant 10 Moscow expanded 1tS operations by openmg a Russian restaurant in Rome. The housing manufacturer men- tioned carlier went farther aheld. When itS employees couldn't find decent dental care at any pnce, the vcnture opened its own employee c1lOic and then began selling dental services to others. The used car busi. ness hegan as a way of obtaming hard currency, which a lot of Rus. '''G HARVAPD nU~]NESS REVIE.W J~nu;ary Fo.:hruary \1)9.'\ //,JI slans wdl gl.1dl) p.1Y for an au!Omo. bile built In thl..' West. Popcorn, fmal- Iy, turns out t(I he 3 ~reat way to con. vert currency for IOvestment 10 the I core buslncss A container of pop- corn kernels, bought inexpensively in the United Slales and popped and sold in RusSIa as a fashionable West. ern snack, transforms relatively few dollars into many rubles. Seeking ways to earn hard curren- cy for reinvestment, one joint ven- ture in computers and software has now expanded one step at a time in. to food processing, woodworkIng, paints and polIshes, art exhibitions, show business, movie making, and satellite telecommumcations. Time after tlme, we saw joint ven- tures come up with ingenious solu- Hans to forrr'lldable problems that rarely occur In the West. Time after time, the source and instrument of these solutJor.s was a trusted, on Site, RUSSian management team that the JOint venture panners had cho- sen, tramed, and empowered to act quickly and Imaginatively One such management team got ItS \\'.estern parmer to help it arrange a marTlage between tWO previously unrelated RUSSlan and \\ estern enterprises to create a crltlcal new source of sup. ply Another management team came up o\"ernlght with hve differ ent ways oi legally circum\'entJng a ncw regulatlon forbiddmg the use I of hard currency to compensate Joint-venture employees. Dialogue Without much question, the most successful American-Russian joint venture that has been estabhshed is a company called Dialogue. At about the time Gorbache\' came to POW!.:I In 1986, a Chicagoan named Joe Ritchl!.: hegan taking an active interest In the Soviet Union A founder of J hIghly successful op- tions trading company in Chicago, Ritchie had no specific business ex perience In the USSR, but he clearly grasped the country's enormous !J tent potentlJI On J Visit to MOSC0\\', he had... chance n"l!.:ctmg \.,:ith 3 Rus. sian computer SCientIst namcd pycnr Zrclo\.', deSigner and manager of the management Inform3tlOn systems t...onClnucd on {lage~.J '.- 51 I' I at KJmJz, one of RussIa's largest truck mJnufJcturcrs, The two men liked eJch other from the start and spent several d:tys getting to know one another They discovered that they agreed about how the world worked and how ir might work bet teT Within a matter of months, they had put tOgether the rudiments of a bus lOess deal Their goal was to create nothing less than the Russian equivalent of IBM - a full. fledged, 10- tegrated computer company for the world's largest nation. In late 1987, Dialogue came inco being with the signing of a joint venture agreement, only the second with a partner based In the UOIted States. Rnchlc's Ideas about IOwt yen tures \\-'ere J. good fit with the Rus- sian traditIOn - more cultural than Dialogue's vast empire exemplifies the resourcefulness of the Russian collective, polnical, and much older than com- munism - of collectlve ownership By nature and experience, he felt comfortable In a world oriented more toward relatIonships than rules, To form the venture, Zrelov and RItChie picked Strong, special ized partners. Kamaz, Moscow State University, the Central Institute of EconomIcs and ApplIed Mathemar ics, the Space Research Institute, and the SOViet Expenmental Com- puter Center at the National Exhibi- tion of Economic Achievements were all anginal partiCipants in the joint Venture. Ritchie put up S5 millIOn for a 22 % share of the company, whIle the Soviets put up 15 million rubles for the remainder From the very be- ginning of DIJlogue's operatIons, 54 FOUR CORNERS -----.. Ritchie stepped Into the back ground, makmg it clear to employ. ees, vendors, and government oHio ctals that he had fully empowered Zrclov to run the show, Five years later, through oHices in 34 cities, Dialogue has sold and ser viced more than half of the personal computers installed in the former SOVIet Union, Dialogue sells its Rus- Sian software all over the world and maintains ten offices in Europe, Japan, and the United States. It em- ploys 3,500 people throughout the states that were once the Soviet i Union and 700 elsewhere. Capital- Ized as a joint stock company, Dia- logue motivates its managers by 201 lOWing them to purchase stock at advantJgeous prices and so share in the profits of the company they are helping to create, Pyotr Zrelov, with wide authority over company operations, has been key to the venture's success. He has mastered the basic business of his company, he has faced down hIgh- handed government authorities, he hJS recruited and tramed managers to set up new offices, and time and again he has plunged the company IOtO new businesses when these seemed the best SOlutIon to some slUbborn problem. Hindered by the general lack of basic goods and ser' Vices, Dialogue has started a bank, a construction company, an archi- tectural firm, an auditing service, dental clinics, a law firm, a secun- ties brokerage, and a stock exchange, to name only a few Frustrated by the notoriously backward Russian phone system, Dialogue is now in the process of installing its own telecommunications network, es. tablishing 200 local exchanges, and linking them together. This may seem startlingly bold to a Western observer, but it smacks of the seif-sufficiency factories had to demonstrate in the old Soviet Union to cope with constant shortages. Lacking horizontal market SHUC', tures, a RussJan tractor factory, for /1..1 ).. instance, mIght make not only bat tenes, dnvc shafts, axles, engines, wheels, and mht.:r components, but also refngerawrs and other hard-to. find consumer products either for its employees or to barter for sup- plies. Each collective cnterpnse was a self.contained fiefdom of inter- locking interests, Dialogue's vast empire, with 110 subSidiaries, exem- plifIes the lingenng resourcefulness of the Russian mu Ritchie does not disagree WIth the common observation that most Rus- sians are not natural entrepreneurs, He argues, however, that most Americans aren't either He belteves that the percentage of entrepreneurs In each populatlon 15 about the same He then pOints OUt com- pellingly that Dialogue has made well over 5100 mdlJon net on an ini- tIal investment of 5S million by leaVIng all salJent operating deci- sions to RUSSian managers who, in the conventional \'Iev.', lacked both entrepreneunal InStlnCts and capi talistlc training Ritchie credJ~s Zrelov for hiS skills as a leader Cine deCISion maker Zrelov, In turn. gives much of the credit to enligr.tened o\,'ners ......ho 201. low him the freedom to act. Both men adVIse companies conSIdering iOlnt ventures to search not JUSt for a general manager and pJrtner, but also for a fnend. A strong leader \\o'ith intelligence, conrlectlons, hIgh m- tcgrity, and J sense oi adventure may not be easy to lInd, but the business opportunitIes surely outweigh the frustrations and hard work of a pa. tient search and a long. term com- mItment. The unique combination of perenmal shOrtage and pent-up demand, Side by Side with prodi- gIOus human and matenal resources, does speak to the entrepreneurial spuit in which we, 10 the V\'est, take such pnde. Note The aurhors \\'(Iuld lIke to iJC knowledge tht' l.{'rltllbul:ons of thCll research aSSOCWle. Vi,uf:.-TJlr LI...'gO\'SHOI, In MtJ~cow Repnnt 9310~ H^llVI\IU, BUSINESS REVI[\\ l.ln~I.Il\ rd'r\,Jf\' 1"-)1 .. " TOUR 2 - 9 NIGHTS/10 DAYS $2,941 I'''''' VLADIVOSTOK' IRKUTSK' TRANS-SIBERIAN RAIL' KHABAROVSK Days 1/2-Depart Anchorage for Vladivostok on Alaska Airlines, Cross the International Dateline and arrive Vladivostok late afternoon of the following day and transfer directly to The Vlad Motor Inn, a new joint venture hotel. Day 3- This cosmopolitan Russian city comes alive for you today Visit the Oceanarium and a World War II submarine and the hills above the city Have lunch at Nostalgia, a refurbished Russian Tea Room, Relax on a cruise through the harbor In the evenrng, a festive drnner with Balalaika singers rounds out the day Day 4-Visit Ocean Camp, one of the "Pioneer Camps" established to indoctrinate communist youth-but now a multl.use day care, education and sports center for kids, Then visit one of the region's renowned porcelarn factories, where you can buy at a dis. count. In the afternoon board your Russian Executive Air flight to the city of Irkutsk, where you'll check in at the Intourist Irkutsk Hotel. Day 5-Tour Irkutsk, the "Pearl of Siberia" today You will have the chance to visit the city's most impressive muse- ums. - Alaska Airlines - Russian Execullve Air ..... Trans.Slberlan Rail Day 6-Lake Baikal and all its mystery await you today The day's events include the Museum of Wooden Architecture, the quaint lakeside village of Listvy. anka and a cruise on pristine Lake Baikal. Top off the day with a Russian barbecue, or "shaslik," at a riverside hunter's camp. Day 7-Today, after visits to the Decembrists Museum and the city's synagogue, you'll begin your Trans,Slberian Adventure. Private accommodations are pro- vided on your deluxe rail car Day 8- The landscape of Russia unfolds around you as your train rolls through this rich and beautl' ful region. Relax With your travel companions en route, and enJoy your meals in a private drnlng car Day 9-Amve In Khabarovsk this evening and check In to the Intourlst Hotel. Day lO-Dlscover the beauty and charm of the Russian icons in the Orthodox Church and the Frne Art Museum, Then shop with the Russian people amid the myr. iad of stalls in the City Market. Have lunch in town and afterward tour a genuine Nanai Village, These indigenous people inhabit. ed the region centuries before the Russians amved. For an overview of the region, you also have the option of a Champagne Sunset helicopter tour tonight. Day ll-This morning a last minute Shopping Excursion offers a chance to pick up gifts for friends, Afterwards, the finale to your tour IS an authen. tic Russian Tea Party, with folk music and foods fit for any Russian's home, Depart tOnight for Anchorage on Alaska Airlrnes. Cross the International Dateline and return home the same day USfVyanka'S vil/aaers live a simple but serenelrfe. ) /'.3 r PLEASE NOTE. All ifmerJrJes show olle exlm day due 10 crossing the International Date/me YOUR TOUR 2 INCLUDES: . 2 nights in Vladivostok . 3 nights in Irkutsk . 2 nights on Trans-Siberian Rail - Private accommodations and exclusive dining car . 2 nights in Khabarovsk . Breakfast, Lunch and Dinner daily . Sightseeing tours as follows: - Vladivostok City Tour - Porcelain F actory Tour and visit to Children's Camp - Harbor Cruise in Vladivostok - House of Negotiations -Irkutsk City Tour -Irkutsk Museum Tours - Boat ride on Lake Baikal _ Wooden Architecture Museum - Village of Listvyanka _ Khabarovsk City Tour - Nanai Village Tour _ Khabarovsk Shopping Tour . Russian Tea Party . Engllsh-Speakmg Guides throughout . Russian Executive Air flight Vladivostok to Irkutsk . Alaska Airlines round trip air from Anchorage DEPARTURE DATES: (Sundays, Thursdays) MAY: 15, 19, 22, 26, 29 JUN: 2,5,9,12,16,19,23,26,30 JUL. 3,7,10,14.17,21,24,28,31 AUG 4,7,11, t4,18, 21, 25, 28 SEP: 1. 4, 8,11, 15, 18 TOUR PRICES PER PERSON: Double: $2,941 Single: $3,506 Share: S3,266 Shares available JUN 5, JUL 10 and AUG 28. 13 It_ Meeting Date I).. comrCIL AGENDA STATBKDlT 11/8/94 TITLE: REPORT Consideration of site Selection for Solid Waste Transfer station and Materials Recovery Facility SUBMITTED BY: Deputy city Manage~empl;tv REVIEWED BY: City Manage~ ~~~4/sthS Vote: Yes_ No-1..) At two previous meetings (on 9/6/94 and 10/4/94), Council discussed and approved a methodical approach for selection of an appropriate site for a transfer station with capacity for a future materials recovery facility (MRF). At the 10/4/94 meeting, staff was directed to continue a detailed evaluation of the top three sites by factoring in results of a public forum to be held on 10/20/94. This report describes the input from that meeting with the Chula vista community and presents further recommendations. RECOMMENDATION: Accept report, concluding that the two final sites under consideration are located at 855 Maxwell Road and 894 Energy Way, and direct staff to enter into negotiations with both property owners and report back with a single site recommendation. BOARD/COMMISSION RECOMMENDATION: DISCUSSION: Not applicable. Backaround In summary, the previous review focused on the top three most preferable sites: 1. 900 Bay Boulevard (S9G&E property) 2. 855 Maxwell Rd. (near otay landfill) 3. 894 Energy Way (near Laidlaw yard) These sites were evaluated on ten criteria: 1. Land use 2. site size & preparation 3. Geophysical 4. Transportation/circulation/access 5. Biological resources 6. Noise 7. Aesthetics 8. Acquisition 9. Processing 10. Rail access /,.2 - / page 2, Item I~ Meeting Date 11/8/94 Specific strengths and weaknesses of each site were included in the 10/4/94 staff report (Attachment A) and discussed at the 10/20/94 forum. Public Comments In preparation for the 10/20/94 public forum, approximately 1000 notices were sent to residents, property and business owners in the areas impacted by all three sites (Attachment B). This notification expanded beyond the 1000 foot demarcation to include interested homeowner groups in neighborhoods such as Point Robinhood and Brentwood Mobilehome Park. Press releases were issued and articles appeared in both the Union-Tribune and Star News newspapers prior to the meeting. Five phone calls were received prior to the meeting, most asking for clarifying information. Twelve residents or interested business owners attended the meeting. Input from the public is summarized in the following concerns: 1. site Soecific Comments o 900 Bay Blvd. (800'. property) Visual impact, pollution and odor are anticipated Placement here would be detrimental to tourism- and economic development Traffic congestion and circulation is a major concern o 894 Energy way (near Laidlaw yard) Access is difficult now during weekly auto auction, suggested alternate access to site through otay Valley Road, if possible 2. General Comments on Sitina a Transfer Station/MRF o Locating the facility close to the otay landfill is preferable o Transportation/traffic circulation should be a serious concern no matter which site is selected o Public needs assurance that materials the facility will not be harmful businesses going into to nearby 1.2 r';" Page 3, J:t_ ).).. Meeting Date 11/8/94 In addition, there was one member of the public at the meeting who questioned the need to even consider locating or building any transfer station. All attendees have been notified about Council consideration of this item. Consideration of Two Final sites Based on the evaluation of all three sites as described in this report and previously, input from the public and subsequent preliminary discussions with owners or representatives of the sites under consideration, it is the recommendation of staff that this process continue only on the Maxwell Road and Energy Way sites. The sites are located close to each other and the main advantages of both sites, in comparison to the Bay Boulevard site, are similar: o Adequate size for current and future facility needs with a minimum of site preparation o Zoning is appropriate for the proposed facility and location at either site places it directly in the path of vehicles which would have been delivering waste to the otay landfill or a short distance away. In comparison to the Bay Boulevard site, these sites can be expected to impact traffic patterns less, produce less citizen opposition, be more convenient and possibly less costly. Concurrent with parallel negotiations, staff will have an environmental consultant conduct an initial survey of both sites. These two actions will allow staff to return with a firm recommendation on a single site. The Rail Access Issue The only site under consideration which has immediate infrastructure for rail haul is the Bay Boulevard site. However, rail haul as a method of delivery to a distant landfill is not a simple action. Given the current availability of different rail companies and the fact that a destination disposal site is still a future decision for Chula Vista, the projected use of rail haul in the near future is not cost-effective. It was previously highlighted for Council that the prospect of rail access and the flexibility it might provide in the future still needs to be weighed against current options. Furthermore, Sexton has indicated that the lack of immediate rail capability could be mitigated in the future by trucking to a rail transfer site which could be more directly linked to the destination landfill if unit costs for rail haul were more reasonable. The staff recommendation takes into consideration all /.2"'.3 page 4, It_ Meeting Date 11/8/94 /~ of these aspects of the rail availability issue. The prospective disadvantages of siting and building a transfer station on the Bay Boulevard site do not appear to be outweighed by the advantage of being the only site with immediate rail infrastructure. FISCAL IMPACT: There are no additional appropriations required at this time, since all costs of proceeding on the staff recommendation are covered by the Sexton contract terms (to be paid later through tip fees), or current appropriations for existing staff work and the solid waste consultant contract. The fiscal impact of any property acquisition costs would first be discussed in closed session in accordance with Government Code section 54956.8. /.2 - f Attachment A Strenaths and Weaknesses of sites Under Consideration 894 Bnerqy way o Three individual parcels totalling about 18 acres are available; 2 of the parcels identified for use would equal about 11.S acres. (Preliminarily, 10 acres appears to be an appropriate site size to accommodate transfer and MRF activities.) o I-80S is 1.8 miles to the west and otay Valley Rd. is being upgraded to a six-lane road. There could be future competition for roadway capacity as the vacant lands to the east develop (otay Ranch) and other redevelopment activities, such as the Auto Park, occur. o General Plan designation is Industrial-Research & Limited Manufacturing; zoning is I-P (Industrial/Precise Plan). o sites may be available on a long-term lease or purchase; status is still subject to negotiation. o Nearest residential area is over 4000 feet to the northwest. o Surrounded on three sides by auto dismantling firms, vacant land to the east; the otay landfill is located to the north. o No possibility for future rail access. o No real increase in truck traffic or impacts since trucks essentially use the same route to go to otay landfill. 855 Maxwell Road o site size is about 17 acres, although some area in slope not usable. o Located one mile east of I-80S off otay Valley Road, on route to otay landfill. o General Plan designation is Industrial-Research & Limited Manufacturing; zoning is I-P (Industrial/Precise Plan). o currently used as a contractor's storage yard; property owner has been contacted but has yet to indicate a preference, if any, to leasing or selling the site. o No possibility for future rail access. 1,2-f' 900 Bay Blvd. (SDG'B) o Concerns about impact on Bayfront development and what image and character the city is trying to collectively achieve along its waterfront, including concern with trash truck activity. o Total available land is around 30 acres although 20-22 acres may also be considered for location of a recycled paper manufacturing facility; joint planning could produce efficiencies for feedstock delivery and effective facility design. These possibilities are being explored further and staff will advise Council accordingly. o site located on south end of SDG&E power station, former LNG tank site; owner desires to sell. o Land uses immediately adjacent on three sides compatible, San Diego Bay to the west. o General Plan designation is Industrial-General; zoning is I (General Industrial). o Easy access to 1-5 via Bay Blvd/Palomar; could be some potential traffic impacts depending on routes used. o Mobilehome park residents are located approximately 1/4 mile to the southeast, but buffered by the 1-5 freeway. Some scattered residential in a mixed use industrial area south of Palomar Street. o Excellent rail site; currently it appears that rail access is more expensive than truck access. In the city's situation, an additional transfer charge is required to move material from the San Diego & Imperial Valley Railroad to the Santa Fe line to the north. Also, at this time, Mexican officials have expressed opposition to rail haul to the south, for example, to the Campo landfill. Circumstances could change, however, as a result of NAFTA. As an example, at the South County Economic Conference on 9/23/94, the U.S. Assistant Secretary of Commerce strongly urged a rail connection to the Imperial Valley from San Diego. Thus, the prospect of rail access and the flexibility it could provide in the future still needs to be weighed against current options. /..2 -" Attachment B ~V?- ::: 1'l~ ~ ~~~~ ~~--~ em OF CHULA VISTA PLANNING DEPARTMENT October 12, 1994 RE: Public Forum to Discuss Proposed Sites for a Trash and Recycling Facility To Whom It May Concern: As an alternative to the current waste disposal system, the City of Chula Vista is considerL'lg siting a facility known as a transfer station and materials recovery facility (MRF). The proposed facility would transfer normal household trash and non-hazardous commercial waste to special vehicles for transport to a landfill where fees are lower than they are at the local Otay landfill. This proposal is only in the planning and development stages now. A decision to construct and operate the facility has not yet been made but selection of a site is important now, in case it becomes clear that lower, more stable trash rates require a transfer station. In the meantime, the City continues to look for any other alternatives which would assure lower long-term rates and not require taking trash out of the region. The three sites being considered are located at 900 Bay Boulevard, 855 Maxwell Road and 894 Energy Way. They are shown on locator maps on the reverse of this notice. A public forum will be beld to discuss the sites: Thursdav. OCTOBER 20.1994 7:00 p.m. 276 Fourtb Avenue, City Council Cbamben A description of the transfer stationlMRF will be given by staff and representatives of SextonlChula Vista Sanitary Services and there will be time for questions and answers. The purpose of the public forum is to identify issues relevant to the location of a transfer station in the City of Cbula Vista at one of the three candidate sites and to receive input from the public. This is an informal meeting and not a public bearing. Once a site is selected, environmental review, design review and a conditional U!jC permit will be processed. All of these future actions will result in public bearings and opportunities for public review and comment. For further information. please contact City staff at 476-5332. Sincerely. ~c Martin Miller Associate Planner /..2 . 7 -..... ~ ---........ - 276 FOURTH AVE/CHULA VISTA. CALIFORNIA 919101t6191 691-5101 }.2 -c' IG i , L . I - .' I; ,.'" 11- J · ! > l'! . r ~ !! i : J.h ~ > z z I ~ I" - G I ~ I . i . ~ & ~ z ~ I -, I.. .11. .\ E3c::::J 1--...... 1 =-"'........... 'Gi l L li!1 1111 ; I" I ! ; I :'IS I < --I f :t: I! I > ~Ii ~ . . > z z ~- II \ I! I I i -----~ -,--;. I ido::::;'l- .1 _ IGi \ -----.---., , L , , , zH H , , II , , c . I' , z . ~ ;>>> . I , z! I ~ , ~ I ~ 01 · > ~ ~ ~ 'I ~ . . I. z I ~ t ~ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 Proposed Boards, Commission & Committee Attendance Policy BACKGROUND The best local government is one that can deliver its governmental services equitably, efficiently and effectively. It is an inherent part of the culture of the government of the City of Chula Vista to deliver its governmental services in such manner. Equitable government can be achieved, in part, through the involvement of a broad spectrum of persons and ideas in the decision making process. Unfortunately, the broader the spectrum of involvement, the slower the decision making process becomes and efficiency suffers. The City is constantly attempting to balance its desire for involvement and efficiency. As part of its effort to achieve the involvement of a broader spectrum of persons and ideas in the decision making process, the City solicits the input of its Boards, Commissions and Committees ("B/C/C") for the conduct of its business of government. The Council will refer matters to its various B/C/C's for input prior to decision making, and considers them an integral part of decision making. The efficiency of the City's service delivery efforts suffer when a B/C/C is unable to review and return its recommendations to the City Council on matters within their jurisdiction within a reasonable time frame. That "turn-around" time has suffered due to problems associated with absences of members of various boards, commissions and committees ("B/C/C"), such problems being the lack of quorums and cancellations of B/C/C meetings. A Member's contribution is understood to be without compensation, but despite such fact, has to be undertaken with the seriousness and attentiveness of a quasi-business relationship due to the impact on the City's service delivery system. The City needs to rely on enthused and involved Members to attend and participate in BI CI C meetings. e:\attend6. wp November 3, 1994 Attendance Policy Page I j/Pa -- / 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 PURPOSE Accordingly, the City Council has directed that a policy be initiated which is designed to achieve enhanced attendance at B/CIC meetings in order to avoid delays and lack of adequate discussions due to absenteeism. GENERAL POLICY STATEMENT REGARDING ATTENDANCE Membership on a B/CIC requires Members to make reasonable accommodation in their personal life to be able to devote the time required to conduct the business of the B/CIC, with the understanding that exceptional circumstances can arise from time to time in a Member's personal and business life which may prevent their attendance at all meetings. SPECIAL PROVISIONS 1. Mandatory Attendance Requirement for B/CIC with Regular Meetings. A. Scope of Section. This Section I does not apply to specially called meetings of either a B/CIC with a regular meeting schedule, or of a B/CIC which meets intermittently at the call of the Chair. See Section II for policy applicable to all B/CIC's. This Section I applies to the attendance at regularly scheduled meetings of those B/CIC's that are on a regular meeting schedule ("Covered B/CIC"). B. Thresholds Established for B/CIC with Regular Meetings. 1. Projected Annual Number of Regular Meetings. For the purposes of applying the percentage attendance requirements hereinbelow set forth, the B/CIC's shown on Exhibit 1 shall have the Projected Annual Number of Regular Meetings ("PANRM") for a City fiscal year set forth adjacent to the name of their B/CIC. The City Clerk shall have the authority, and upon direction of the City Council, e:\attend6.wp November 3, 1994 Attendance Policy Page 2 jIPt:1---c:4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 the duty, to calculate and set or revise the Projected Annual Number of Regular Meetings shown on Exhibit 1 for a given B/C/C. a. In revising the P ANRM, scheduled "dark" meetings shall not be included. By way of example, a B/C/C which meets once each month with 1 regularly scheduled "dark" meeting in December shall have 11 Projected Annual Number of Regular Meetings. 2. 25% of PARNM Unexcused Absenses-- Automatic Removal. A member of a Covered B/C/C which has been absent from 25% of the PANRM. or Projected Annual Number of Regular Meetings. without excuse (as excuses are herein permitted to be I1ranted. below). shall be automatically removed from membership on the B/C/C. effective on delivery of notice by the Mayor. a. The violating member shall no longer be entitled to vote on the B/C/C, and the office shall be considered vacant. b. The B/C/C shall notify the City Clerk and Mayor immediately upon violation of this mandatory attendance requirement, and upon such notice. the Mayor shall send a letter immediately notifying the member of his or her removal. The City Clerk shall immediately commence any posting requirements applicable to recruiting to fill the vacant position. 3. 25% PARNMExcused Absences; 34% PARNM Total Absences--Referral to Subcommittee A member of a Covered B/C/C which has been absent from 25% of the PANRM with excuses (as excuses are herein permitted to be granted. below). e: \attend6. wp November 3, 1994 Attendance Policy Page 3 /&a- - J 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 or 34% of the PANRM with or without excuses shall have the matter of the member's continued membership on the B/C/C shall be referred to a subcommittee appointed by the Council ("Council Subcommittee on B/C/C Attendance" or alternatively "Council Subcommittee") with a recommendation from the B/C/C as to the member's continued membership on the B/C/C. C. Authority of Council Subcommittee. When such referral has, or should have been, made to the Council Subcommittee, said Council Subcommittee shall thereu.von have the DOwer to evaluate the member's continued membership on the B/C/C. and to direct the removal of the member from membershiD on the B/C/C or her or his continuation as a member. Upon the issuance of a decision by such Council Subcommittee that a member shall be removed, the Subcommittee shall notify the Mayor and the City Clerk. The decision of the Subcommittee shall be final and effective upon issuance of the decision by the Subcommittee. D. Special Meetings of B/C/C's with a Regular Meeting Schedule. The attendance of a Member at all specially called meetings of a Covered B/C/C is encouraged to the same extent as Exempt B/C/C's set forth hereinbelow (Section II). However, the absence of a Monthly or Bi-Weekly B/C/C Member at such specially called meetings shall not count against the Member in the determining compliance with this Section I. E. Meetings Cancelled for Lack of Quorum. The absence of a Member from a regular meeting which has been cancelled due to the lack of the assembly of a quorum of its members shall count against the attendance record of the Member unless the Member ap.PeaTed at the meetim! site or unless the Member was instructed not to attend by an aJlJlroJlriate authority (the Commission Secretary), as in the case when there were sufficient other e:\attend6. wp November 3, 1994 Attendance Policy Page 4 /;;a.-'i 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 members who indicated in advance their inability to attend the meeting, and as a result of such notice, the Chairperson or Commission Secretary acting on the Chair's behalf, instructed the remaining members a quorum would not be available to hold the meeting. At the next meeting, the B/C/C shall determine who shall be charged with absences, and determine if they warrant excuses. II. Attendance Policy for Exempt B/C/C's. A. Scheduling of Exempt B/C/C Meetings. An Exempt B/C/C, or a covered B/C/C holding a special meeting, should be diligent to schedule special meetings (i. e., non- regular meetings) at times that can achieve the greatest possible attendance while giving due regard to the need of the B/C/C to conduct the business with which they are charged. In that regard, as a formalized part of every agenda for a B/C/C, prior to the conclusion of each meeting, the Members should deliberate on the upcoming demands for service (without deliberating on the subject matter) and timing of their next meeting if such is expected to be a special meeting. For those Members who are not in attendance during such discussion, efforts should be made by the Chair, the Secretary or staff liason to contact the absent Member prior to the meeting as to their availability for subsequent meetings. B. Minimum Attendance Strongly Encouraged. As to Exempt B/C/C's or special meetings of Covered B/C/C's, attendance is strongly encouraged at a minimum of at least 75 % of all meetings, including specially called meetings, workshops and conferences, called during the City's fiscal year oral or written notice of which has been given to the Member at least 15 days in advance. III. Duties of B/C/C Regarding Attendance of Members. A. Tracking Attendance Each B/C/C shall be required to keep track of the attendance of their members. e:\attend6.wp November 3, 1994 Attendance Policy Page 5 JI,&l- -~ \ ' I 2 3 4 5 6 7 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 B. Designating a Contact Person The Commission Secretary shall be the designated person whom Members should call if they detennine that they will be unable to attend a meeting of their respective B/C/C. The Commi~~ion Secretary should have and continuosuly operate a telephone message answering device. C. Calling in Expected Absences. In the event that a Member is unable to attend a meeting of a B/C/C to which they belong, such Member should make a diligent effort to advise the Commission Secretary of such expected absence as soon in advance as possible after learning of the circumstances that give rise to their inability to attend so as to permit the B/C/C to make other plans for the scheduling of the meeting--as in the case it appears that a quorum will not be obtained at the meeting. I. In determining to grant excuse for a given absence, the B/C/C should consider, among such other circumstances as are appropriate, the courtesy shown by giving the B/C/C, through the Commi- ssion Secretary, or otherwise, notice of their inability to attend a Noticed Meeting. D. Duty to Report to Clerk and Council. B/C/C shall determine and conclude, by majority vote, entered in the minutes of the meeting at which such vote is considered, that the Mandatory Attendance Requirement has been violated by a Member as soon as reasonably practicable after such violation occurs, and shall transmit record of such fact immediately and forthwith to the City Clerk, who shall call the Subcommittee to review the matter under Section I. IV. Authority of the B/C/C to Grant Excuses for Absences. Each B/C/C shall have the authority to excuse the absence of a Member from a Noticed Meeting within the limits and parameters hereinbelow specified or as additionally e: \attend6. wp November 3, 1994 Attendance Policy Page 6 Jjpa. -- ~ " , , E 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 approved, from time to time, by the City Council: A. Illness of the Member, a family member to the Member, or a personal friend of the Member. B. A business commitment of the Member that is likely to interfere with the attendance of the Member at the Noticed Meeting. C. A previously scheduled vacation of the Member, notice of which was provided to the B/C/C, or Chair, or Commission Secretary in advance of the Noticed Meeting. D. Attendance of the Member at a funeral, religious service or ceremony, wedding, or other similarly significant event. E. Any other reason for which notice has been given of a Member's unavailability 15 days in advance, as long as the unavailability is not expected to last for longer than 30 days. F. and "Acts of God." However, in granting such excuses, the B/C/C should be guided, in part, by the consideration, at the time of granting the excuse, that the Member may be disabled from eventual, long-term participation in the B/C/C. If extended illnesses or long term vacations are imminently likely to prohibit the Member from attending the Meetings of the B/C/C, the Member should consider resignation from the B/C/C as in the best interest of the City, and the B/C/C should give due consideration to not granting excuses for individual absences. In such cases, the best interests of the City require a more involved participation without regard to the personal circumstances, however regrettable they may be, of the Member. A B/C/C should not abuse the authority to grant or deny excuses by granting or denying it for political reasons, or reasons associated with spite or personality conflicts. All other things being equal, a B/C/C should honor the request of a member who has notified the B/C/C in advance of their expected absence and desire to be e:\attend6.wp November 3, 1994 Attendance Policy Page 7 J~a.- ? I \ j 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 excused when a qualifying reason has been tendered, which shall be deemed to be an implied request for excuse, unless a different intent is expressed by the member. Excuses should be granted officially on motion approved by majority vote of the B/C/C either at the meeting where the absence occured, or at the first meeting thereafter attended by the absent member, in the manner herein permitted, and such excuse has been noted in the minutes of the meetings of the B/C/C. V. Specific Implementation Procedures Relating to Absences. A. Any member who has missed 1/2 of their permitted absences under the Mandatory Attendance Requirement should be given written notice of such fact by the secretary or the chairman of the B/C/C. However. failure to eive such notice shall not void the o.1Jeration of this policy. but mllY be taken into consideration by the Council and its Subcommittee in exercisine the removal power. B. In July of each year, the secretary shall submit to the City Clerk a record of attendance. This attendance record will note the attendance levels for the each of the members for the preceding fiscal year - July 1 - June 30. This annual report is not intended to diminish in any way the requirement for immediate determination and notification to the City Clerk and Council of a violation of the Minimum Attendance Requirement by a member, as noted above. VI. This policy shall become effective as to all parts except the Mandatory Attendance Requirement bee:innine: January 1. 1995. and as to the Mandatory Attendance Requirement on July 1. 1995. and shall remain effective thereafter until modified by the Council. ORIGINAL RESOLUTION ADOPTING TIllS POLICY WAS: 13737 APPROVED 08/16/88, AMENDED BY RESOLUTION NO. , ADOPTED 1994. e:\attend6.wp November 3, 1994 Attendance Policy Page 8 J~t:L -~ , '\,," , ~ Exhibit 1 PROJECTED ANNUAL NUMBER OF REGULAR MEETINGS Aging 12 Library Board 12 Appeals & Advisors 12 Otay Valley Road PAC 24 Child Care 12 Parks & Recreation 12 Civil Services 12 Planning Commission 36 Cultural Arts 12 Resource Conservation 24 Design Review 24 Safety 12 Economic Development 12 Southwest PAC 12 Housing Advisory 12 Town Centre PAC 24 Human Relations 12 Veterans Advisory 12 International Friendship 12 Youth 12 If, a. - '7/iPa.. - If) I , , Mftt0~ATO{( ~ ~rTetJ~ t}AJ~~ R~0\ tt"MhlVf 'FcJ '- 15/L/{!.. ~~ft. y ('v)k~~ Dtvv '+- ~ffL ~o Af11;:'t~ "fu ~I~~ " tnl~5e~ M<<-- t-J" ~~" M ~~ U;\l .I) ~XL\JCLr !?XClJ St1J '5v(,~~ ~(,,,~ l' /~;:L-/C (The following will be a summary of the Policy as it will appear in the B/C/C Handbook. Any discrepency between this summary and the policy are resolved by reference to the policy). Attendance - The City Council has established the following attendance policy for all boards, commissions, and committees: [Charter Section 602(c)] (policy 110-03 dated 11/18/94) . The B/C/C secretary will take the attendance at each meeting and shall notify the City Clerk when the mandatory attendance guidelines have been violated. . Members of B/C/C's with regular meetings may not be absent at more than 25% of regular meetings in a fiscal year without excuse and at more than 1/3 of regular meetings whether excused or not. Members who attend less than 75 % of the meetings will be subject to the following: Having in excess of three unexcused absences will be subject to immediate dismissal via a letter sent over the mayor's signature. Having been excused from one-fourth of the meetings will be subject to dismissal after review by a City Council Subcommittee. Having missed one-third of the meetings in any combination of excused and unexcused absences will be subject to dismissal after review by a City Council Subcommittee. . On-call B/C/C's (Charter Review, Ethics, Growth Management Oversight, and Mobilehome Rent Review) are urged to attend all meetings, but the mandatory attendance requirements do not apply. . Any member who has missed one-half of the maximum number of unexcused absences (two of twelve or five of twenty-four regularly scheduled, annual meetings) shall be given a written notice by the secretary or the chair. . The boards, commissions, and committees shall decide whether an absence is excused or unexcused as set forth in the B/C/C Attendance Policy of which each member shall be provided a copy. . Official excuses shall be defmed as illnesses (family and/or personal), business commitments, scheduled vacations, significant family events, and "Acts of God. " . An excused absence from any meeting must be called in to the secretary or chair prior to the scheduled meeting and shall be recorded in the minutes as excused or unexcused by a vote of the board or commission using the B/C/C Policy Guidelines. . In July of each year, the secretary shall submit to the City Clerk the record of attendance. This attendance record will note the percentage of absences of the members for the preceding fiscal year (July I-June 30). Effective Date will be July I, 1995, but everyone should try to comply on a voluntary basis until that time. J~~-// , ii, \' J ~." , , ~~ ~... ll! l"l , ~ .. 1>. J: ~ ~ Jta -J. c::: 'tIl R A II tt ~ ~ ~ .. .. III , ... ~ (") -- (") f ~~ ~~ ......(") ......to:! '? ~~ o ~ 'TI [ ~ .... :8 VI -b 0'1 COUNCIL POUCY CITY OF cHUI.A VISTA SUBJECI': BOARDS, COMMISSIONS, COMMITTEES POUCY EFFECTIVE CB/ClC) ABSENCES NUMBER DATE 110-03 02-16-93 ADOPTED BY: Minute Actidn I DATED: 02-16-93 PAGE 1 OF 1 BACKGROUND Because of the problems associated with absences of members of various boards, commissions and committees . lack of quorums and cancellations of meetings. the City CouncU directed that a policy be initiated whereby a member of any B/C/C shall be required to attend 75% of the meetings called by that B/ClC during one fiscal year. This requirement includes special meetings, conferences and workshops. PURPOSE To limit the number of times that the B/ClC's wUl have to cancel their meetings due to lack of quorum. pouCY 1. There shall be a required attendance at 75% of the meetings which shall include workshops and conferences. 2. The B/ClCs shall have the authority to grant approval for certain types of excuses as approved by the City CouncU. 3. 'Official' excuses shall be defined as Ulness (famUy and/or personal), business commitments, vacations and 'Acts of God.' 4. An excused absence from any B/C/C meeting must be called in to the secretary of the B/C/C or to the chairman prior to the scheduled meeting and shall be recorded in the minutes as excused or unexcused. 5. Any member who is nearing the percentage of missing 25% of the meetings shall first be given written notice by the secretary or the chairman of the B/C/C so that he/she can request clarification from the assigned B/ClC. 6. In July of each year, the secretary shall submit to the City Clerk a record of attendance. This attendance record wUl note the percentage of absences for the members for the preceding fiscal year . July 1 . June 30. Any member missing 25% or more of the B/C/C meetings during the past year without official excuses shall automatically have his/her seat vacated. 7. This policy shall become effective beginning July 1, 1988. ORIGINAL RESOLtmON ADOPTING THIS POUCY WAS: 13737 APPROVED 08/16/88. /tc-.-J.3 EX/>ON4 &7Vn~y P~l-tcN 'o"le 7<fJfl-.~ ~ f" P~t$lS't> ~()t.lGr , , , , ,