HomeMy WebLinkAboutAgenda Packet 1995/11/14
". decllltll blllilllr pen~fty of perjury 'that 'I aln
employed by the City of C'mla Vista in the
Office of the City Clerk and that I posted
this Agcnja/Notico on the Bulletin Board at
the PUbEClceryi~e~uilding and at City H.all on
Tuesday, November 14,1995 _!.is l ~~L"
6:00 p.m. DATED. ~ ~ SIGNED D #' -
Rel!Ular Meetin2 of the Citv of Chula Vista Citv Council
Council Chambers
Public Services Building
CALL TO ORDER
1.
ROLL CALL:
Councilmembers Alevy _, Moot _, Padilla _, Rindone _, and
Mayor Horton _'
2. PLEDGE OF ALLEGIANCE TO THE FLAG. SILENT PRAYER
3. APPROVAL OF MINUTES: None submitted.
4. SPECIAL ORDERS OF THE DAY:
a. Presentation of promotional video. Staff will unveil the City's new economic development
promotional video which will be used as a business outreach tool at trade shows, conferences and
business meetings, as well as distributed to partner economic development agencies and business
prospects.
b. Proclamation commending Stephen Rodecker "Outstanding Teacher of the Year." The
proclamation will be presented by Mayor Horton.
*****
Effective April 1, 1994, there have been new amendments to the Brown Act. The City Council must now
reconvene into open session to report any .Ji!Y!l actions taken in closed session and to adjourn the meeting.
Because of the cost involved, there will be no videotaping of the reconvened portion of the meeting. However,
final actions reported will be recorded in the minutes which will be available in the City Clerk's Office.
*****
CONSENT CALENDAR
(Items 5 through 15)
The staff recommendations regarding the following items listed under the Consent Calendar will be enacted by
the Council by one motion without discussion unless a Councilmember, a member of the public or City staff
requests that the item be pulled for discussion. If you wish to speak on one of these items, please fill out a
"Request to Speak Form" available in the lobby and submit it to the City Clerk prior to the meeting. (Complete
the green form to speak in favor of the staff recommendation; complete the pink form to speak in opposition to
the staff recommendation.) Items pulled from the Consent Calendar will be discussed after Board and
Commission Recommendations and Action Items. Items pulled by the public will be the first items of business.
5. WRITTEN COMMUNICATIONS:
a. Letter from the City Attorney stating that as a result of deliberations that occurred in Closed
Session on 1117/95, the City Council authorized the acceptance of the Conciliation Agreement
from HUD in the Trinidad De La Rosa Case in the form on file in the office of the City
Clerk. Except for the foregoing, there was no other observed reportable action taken in
Closed Session. It is recommended that the letter be received and filed.
Agenda
6.
ORDINANCE 2642
7.
RESOLUTION 18102
8.
RESOLUTION 18103
9.
RESOLUTION 18104
10.A.
RESOLUTION 18105
B.
RESOLUTION 18106
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November 14, 1995
AMENDING SECTION 19.68.020 T.l, TITLE 19 OF THE MUNICIPAL
CODE TO CLARIFY THAT NOISE NORMALLY ASSOCIATED WITH
A CONDITIONALLY PERMITTED LAND USE IS TO BE CONSIDERED
THE SAME AS NOISE NORMALLY ASSOCIATED WITH A
PERMITTED LAND USE (second readin!! and adoution) - The amendment
would clarify the distinction between "nuisance noise" as opposed to
"environmental noise" as it would relate to conditional uses in general and the
operations of the MCA Amphitheater in particular. The Environmental Review
Coordinator has concluded that the text amendment is exempt from
environmental review pursuant to Section 15061(b)(3) of the California
Environmental Quality Act. Staff recommends Council place the ordinance on
second reading and adoption. (Director of Planning)
APPROVING A PURCHASE ORDER AGREEMENT WITH WELLS
FARGO SECURITY SERVICES TO PROVIDE SECURITY GUARD
PATROL AT CIVIC CENTER/MAIN LIBRARY, SOUTH CHULA VISTA
LmRARY, AND EASTLAKE LIBRARY FOR FISCAL YEAR 1995/96-
Since 1986, the Chula Vista Public Library has annually contracted with a
private security guard service to provide crowd control as well as a safe,
welcoming environment for library users in all its facilities. For fiscal year
1995/96, a Request for Qualifications was issued for security services, responses
evaluated, and a vendor selected. Staff recommends approval of the resolution.
(Library Director)
APPROVING MEMORANDUM OF UNDERSTANDING WITH THE U.S.
ENVIRONMENTAL PROTECTION AGENCY TO ESTABLISH A
VOLUNTARY AGREEMENT BY WHICH THE CITY JOINS EPA'S
GREEN LIGHTS PROGRAM - The City was invited to participate and take
advantage of the free technical services offered through the U.S. EPA Green
Lights Program. Staff recommends approval of the resolution. (Environmental
Resource Manager)
ACCEPTING BIDS AND AWARDING LANDSCAPE MAINTENANCE
CONTRACTS FOR OPEN SPACE DISTRICTS - Bids to provide landscape
maintenance services for Open Space District 20 SPA I Phase 6 and Bayfront
Trolley Station were received on 8/31/95, and bids for Open Space District 20
SPA II and Open Space District 31 were received on 10/11/95. These areas
were put to bid because of new areas developed in existing District 20 (Rancho
del Rey), the formulation of new District 31 (Telegraph Canyon Estates), and
the existing contract for Bayfront Trolley coming to term. Staff recommends
approval of the resolution. (Director of Parks and Recreation)
APPROVING A CONGESTION MITIGATION AND AIR QUALITY
"CMAQ" PROGRAM SUPPLEMENT WITH CALTRANS FOR
FEDERAL-AID FUNDING TO DESIGN AN ADAPTIVE TRAFFIC
CONTROL SIGNAL SYSTEM - The City has received State approval to
utilize Federal funds under the Federal Intermodal Surface Transportation
Efficiency Act. Congestion Mitigation Air Quality program to upgrade the City's
traffic control system to a state-of-the-art flexible timing "Adaptive Urban
Traffic Control" system for the first phase of a three phase project. The
program Supplement Agreement with the State will assure State reimbursement
for all costs associated with the traffic signal design study. Staff recommends
approval of the resolutions. (Director of Public Works)
APPROVING AGREEMENT WITH DKS ASSOCIATES FOR A TRAFFIC
SIGNAL SYSTEM UPGRADE TECHNICAL DESIGN STUDY (CIP-
TF237), AUTHORIZING THE MAYOR TO EXECUTE THE
AGREEMENT, AND APPROPRIATING FUNDS THEREFOR - 4/5th's
vote required.
Agenda
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November 14, 1995
11. RESOLUTION 18107 APPROVING AGREEMENT WITH NATIONAL CITY AND CANYON-
CAHAN PROPERTIES FOR THE PROVISION OF SEWER SERVICE TO
AN ECONO LUBE 'N' TUNE, INC. AUTOMOBILE MAINTENANCE
FACILITY THROUGH NATIONAL CITY FACILITIES AND
AUTHORIZING THE MAYOR OF EXECUTE SAID AGREEMENT ON
THE CITY'S BEHALF - Canyon-Cahan Properties submitted a site plan
showing the development of an Econo Lube 'N' Tune located at the southwest
comer of 30th Street and North Second Avenue for approval by the Design
Review Committee. Approval was given on 6/12/95. During the course of the
plan review, it was determined that because the property is north of SR-54 and
the Sweetwater River, no Chula Vista sewers are available to the site. Staff
recommends approval of the resolution. (Director of Public Works)
12. RESOLUTION 18108 AMENDING CITY COUNCIL POLICY NUMBER 465-01 "PUBLIC
SERVICE DIRECTIONAL SIGNS ON PUBLIC STREETS" - During
September 1995, a request was received from a local church. During the
process of investigating the request. staff uncovered several minor discrepancies
between the Policy and the current Master Fee Schedule. Staff recommends
approval of the resolution. (Director of Public Works)
13.A. RESOLUTION 18109 APPROVING FINAL MAP OF TRACT 88-3A, EASTLAKE SOUTH
GREENS UNIT 6, ACCEPTING ON BEHALF OF THE PUBLIC THE
PUBLIC STREETS DEDICATED ON SAID MAP, REJECTING ON
BEHALF OF THE CITY THE OPEN SPACE LOTS GRANTED ON SAID
MAP, ACCEPTING THE EASEMENTS GRANTED ON SAID MAP
WITHIN SAID SUBDIVISION, AND APPROVING SUBDIVISION
IMPROVEMENT AGREEMENT FOR THE COMPLETION OF
IMPROVEMENTS REQUIRED BY SAID SUBDIVISION, AND
AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT - On
8/16/94, Council approved the amended Tentative Map 88-3A for EastLake
South Greens and imposed additional conditions of approval. The amendment
to the tentative map covers the area south of Clubhouse Drive which is
designated as EastLake South Greens. Staff recommends approval of the
resolutions. (Director of Public Works)
B. RESOLUTION 18110 APPROVING SUPPLEMENTAL SUBDIVISION IMPROVEMENT
AGREEMENT REQUIRING DEVELOPER TO COMPLY WITH
CERTAIN UNFULFILLED CONDITIONS OF RESOLUTIONS NUMBER
15200 AND 17618 APPROVING A TENT A TIVE SUBDMSION MAP FOR
EASTLAKE GREENS, AND AUTHORIZING THE MAYOR TO
EXECUTE SAME
14. RESOLUTION 18111 ALCOHOL AND BEVERAGE CONTROL (ABC) DETERMINATION
APPROVING AN APPLICATION FOR AN ABC LICENSE DUE TO
PUBLIC CONVENIENCE AND NECESSITY - Lucky's Store at 690 Third
Avenue is moving across the street and under the ABC rules needs a new license
application. Resolution Number 17989 reflects the new procedure the Council
has adopted requiring that staff report the determination on the consent agenda.
Staff recommends approval of the resolution. (Chief of Police)
Agenda
15.
REPORT
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November 14, 1995
SUPPORTING CONCEPT OF AMERICAN LEGION BUILDING
EXPANSION AND THE PROPOSAL FOR A COST-SHARING
AGREEMENT WITH THE AMERICAN LEGION FOR PARKING LOT
RENOVATION - The American Legion Post 434 has requested permission to
construct a 2,300 square foot room addition (at their expense) on the north side
of their existing building at Eucalyptus Park. The addition will serve as the
Legion Women's Auxiliary building. Staff recommends Council: (1)
conceptually approve a plan to build the addition; (2) conceptually approve a
plan whereby the American Legion would renovate the existing parking lot; (3)
direct staff to negotiate a cost-sharing agreement with the Legion for the
renovation of the parking lot; and (4) direct staff to negotiate an amended 17
year lease agreement for a lease of the property and building; and (5) return to
Council for consideration of the amended lease agreement. (Director of Parks
and Recreation)
* * END OF CONSENT CALENDAR * *
PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES
The following items have been advertised and/or posted as public hearings as required by law. If you wish to
speak to any item, please fill out the "Request to Speak Fonn" available in the lobby and submit it to the City
Clerk prior to the meeting. (Complete the green fonn to speak in favor of the staff recommendation; complete
the pink fonn to speak in opposition to the staff recommendation.) Comments are limited to five minutes per
iadividual.
16.
PUBLIC HEARING
ORDINANCE 2653
17.
PUBLIC HEARING
PROPOSED FORMATION OF OPEN SPACE MAINTENANCE
DISTRICT NUMBER 33, BROADWAY BUSINESS HOME VILLAGE - On
10/24/95, Council approved the report on the proposed Open Space District
Number 33, Broadway Business Home Village and set 11/14/95 and 11/21/95
as the dates for the proposed formation. This meeting shall afford all interested
parties the opportunity to hear and be heard pursuant to Section 22590 of the
Streets and Highway Code. After the second public hearing, Council may take
action on formation of the Open Space District unless a third public hearing is
set for 12/12/95. Staff recommends Council place the ordinance on first
reading. (Director of Public Works)
AMENDING SECTION 17.07 OF THE MUNICIPAL CODE ALLOWING
USE OF OPEN SPACE DISTRICTS FOR PARKING LOT
MAINTENANCE (first readiOl!)
CONSIDERATION OF ABATING THE CALENDAR YEAR 1996
BUSINESS LICENSE TAX RATES TO RETAIN THEM AT THEIR
CURRENT CALENDAR YEAR 1995 LEVELS AND POTENTIALLY
ABATING THE CALENDAR YEAR 1997 AND CALENDAR YEAR 1998
BUSINESS LICENSE TAX RATES TO RETAIN THEM AT THEIR
CALENDAR YEAR 1995 LEVEL ON THE CONDITION THAT THE
PROPOSED ORDINANCE ALLOWING MULTI-YEAR ABATEMENTS
IS ADOPTED - The Business License Tax ordinance adopted in 1990 was
structured so that taxes increase annually unless they are abated by Council.
Last year Council requested that the ordinance be changed to eliminate the
annual abatement hearings. Staff felt the City's interests would be beller
preserved by allowing the tax to be abated for up to three years rather than the
Ii
i
Agenda
-5-
November 14, 1995
one that is currently allowed. Staff recommends Council place the ordinance on
first reading and approve the resolution. (Director of Finance)
A. ORDINANCE 2652 AMENDING SECTION 5.07.020 OF THE MUNICIPAL CODE TO
ENABLE THE CITY COUNCIL TO ABATE THE BUSINESS LICENSE
TAX RATES IN ONE-YEAR INCREMENTS FOR UP TO THREE
CALENDAR YEARS, AND AMENDING SECTION 5.02 OF THE
MUNICIPAL CODE TO MAKE ADMINISTRATIVE CHANGES TO
MAKE THE MUNICIPAL CODE CONSISTENT WITH EXISTING
PROCEDURES FOR PROCESSING BUSINESS LICENSE
APPLICATIONS (first readim!) - (Related item but not Dart of the Dublic
hearin~.)
B. RESOLUTION 18112 ABATING THE BUSINESS LICENSE TAX RATES FOR CALENDAR
YEAR 1996 TO RETAIN THE TAX RATES IN CALENDAR YEAR 1996
AT THE CALENDAR YEAR 1995 LEVELS
18.A. REPORT RATE SETTING: FINANCIAL INDICATORS FOR SOLID WASTE -
Earlier this year in cooperation with Laidlaw, the City entered into a contract
with a consultant, Hilton Farnkoph and Hobson, to develop solid waste financial
indicators. The objective of the study is an attempt to develop financial
benchmarks to assist in the rate setting review of any cost increase proposals
made by Laidlaw. Staff recommends Council accept the report and direct staff
to continue to monitor and track the indicator changes over time and advise
Council as part of any future rate setting hearings. (Deputy City Manager
Krempl and Director of Finance) (Related item but not Dart of the Dublic
hearin~).
B. PUBLIC HEARING CONSIDERATION OF RATE ADJUSTMENT REGARDING THE
CONSUMER PRICE INDEX (CPI) FOR COLLECTION AND DISPOSAL
OF REFUSE, RESIDENTIAL CURBSIDE AND Y ARDW ASTE
RECYCLING - On 6/27/95, Council approved a comprehensive set of changes
to the solid waste and recycling rates. The changes amounted to a significant
decrease in rates following a successive number of increases in prior years due
to the County increasing tipping fees at the landfill. At the June hearing,
Laidlaw requested, but was not granted, a 2.5 % CPI adjustment to the
operational portion of the waste and recycling rates. The request was fOIWarded
back to staff for further review and analysis. Staff recommends approval of the
resolution. (Deputy City Manager and Director of Finance)
C. RESOLUTION 18113 APPROVING A 2.5% INCREASE IN THE OPERATING COST RATE
COMPONENT FOR THE RESIDENTIAL YARDWASTE CONTRACT,
EFFECTIVE JULY 1,1995
19. PUBLIC HEARING PCC-90-25M; REQUEST FOR FIVE YEAR EXTENSION TO AN
EXISTING CONDITIONAL USE PERMIT FOR AN RV STORAGE YARD
AT 1375 BROADWAY, WITHIN THE S-94 ZONE - BROADWAY
PALOMAR RV STORAGE - The request is for a five year extension of an
existing Conditional Use Permit which authorizes a recreational vehicle storage
yard at 1375 Broadway. Additionally, the applicant is requesting the deletion
of a condition to the original permit which requires payment of a parks in-lieu
fee to the City. Staff recommends the Duhlic hearin~ be continued to
11/21/95. (Director of Planning)
Agenda
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November 14, 1995
ORAL COMMUNlCA TIONS
This is an opportunity for the general public to address the City Council on any subject matter within the
Coundl'sjurisdiction that is not an item on this agentklfor public discussion. (State law, however, generally
prohibits the City Council from taking action on any issues not included on the posted agentkl.) If you wish to
address the Council on such a subject, please complete the yellow "Request to Speak Under Oral Communications
Form" available in the lobby and submit it to the City Clerk prior to the meeting. Those who wish to speak,
please give your name and address for record purposes and follow up action. Your time is limited to three
minutes per speaker.
BOARD AND COMMISSION RECOMMENDATIONS
This is the time the City Council will consider items which have been forwarded to them for consideration by one
of the City's Boards, Commissions andlor Committees.
None submitted.
ACTION ITEMS
The items listed in this section of the agentkl are expected to elicit substantial discussions and deliberations by
the Council, staff, or members of the general public. The items will be considered individually by the Council
and staffrecommentkltions may in certain cases be presented in the alternative. Those who wish to speak, please
fill out a "Request to Speak" form available in the lobby and submit it to the City Clerk prior to the meeting.
Public comments are limited to five minutes.
20. RESOLUTION 18074 APPROVING CASH ADVANCES FROM THE TRUNK SEWER CAPITAL
RESERVE FUND TO VARIOUS REDEVELOPMENT AGENCY FUNDS
AND FROM THE EQUIPMENT REPLACEMENT FUND TO THE
CENTRAL GARAGE FUND - Over the last few years, the available cash in
various city/agency funds has been depleted beyond a zero balance. This, in
effect, is an unrecorded loan against all other city/agency funds. In addition,
funds with positive cash balances are earning less interest revenue than
warranted due to this practice. It is recommended that the City move towards
returning all funds to a positive cash balance as soon as possible and
implementing strict controls to not allow any transaction against any cash
account which would reduce it below zero. Staff recommends approval of the
resolution. (Director of Finance) Cnntinued from the meeting of 10/17/95.
21. RESOLUTION 18114 AUTHORIZING THE MAYOR TO EXECUTE A POWER TO SAVE
INCENTIVE AGREEMENT WITH SDG&E FOR THE
IMPLEMENTATION OF PHASE 11 OF A COMPREHENSIVE ENERGY
RETROFIT PROGRAM; ADDING ClP-GGI49 ENERGY RETROFIT
PHASE 11 TO THE FISCAL YEAR 1995/96 CAPITAL IMPROVEMENTS
PROGRAM AND APPROPRIATING $75,000 FROM THE GENERAL
FUND AVAILABLE FUND BALANCE THEREFOR - The City has
implemented an ongoing retrofit program to save money and conserve energy.
This is Phase II of the retrofit program which will annually save $35,000 in
utility costs and will retrofit exterior and interior lighting at 22 municipal
buildings and provide $25,000 in incentives from SDG&E. Staff recommends
the resolution be continued to 11/21/95. (Environmental Resource Manager)
(
Agenda
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November 14, 1995
22.A. RESOLUTION 18115 APPROVING THE MEMORANDUM OF UNDERSTANDING WITH THE
SAN DIEGO ECONOMIC DEVELOPMENT CORPORATION IN
SUPPORT OF MUTUALLY BENEFICIAL SOUTHBAY ECONOMIC
DEVELOPMENT EFFORTS - Each Memorandum of Understanding outlines
how the respective agencies' activities will benefit the City and the manner in
which it will be reported each quarter. Staff recommends approval of the
resolutions. (Director of Community Development)
B. RESOLUTION 18116 APPROVING THE MEMORANDUM OF UNDERSTANDING WITH THE
SOUTH COUNTY ECONOMIC DEVELOPMENT COUNCIL IN
SUPPORT OF MUTUALLY BENEFICIAL SOUTHBAY ECONOMIC
DEVELOPMENT EFFORTS
ITEMS PULLED FROM THE CONSENT CALENDAR
This is the time the City Council will discuss items which have been removed from the Consent Calendar.
Agenda items pulled at the request of the public will be considered prior to those pulled by Councilmembers.
Public comments are limited to five minutes per individual.
OTHER BUSINESS
23. CITY MANAGER'S REPORTfS)
a. Scheduling of meetings.
24. MAYOR'S REPORTrS)
a. University of California - Chula Vista, discussion on impact of Multiple Species Conservation
Program National Wildlife Refuge.
b. Application of furlough to City Councilmembers.
c. Reviewing the City's Affordable Housing Policy in reference to AB1715.
25. COUNCIL COMMENTS
Councilmemher Alevv
8. Discussion of City's public hearing notification policy.
Councilmember Rindone
b. Demolition of Fuller Ford.
Councilmember Moot
c. Implementation of Performance-Based Budgets.
'7
Agenda
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November 14, 1995
ADJOURNMENT
The meeting will adjourn to (a closed session and thence to) the Regular City Council Meeting on November 21,
1995 at 6:00 p.m. in the City Council Chambers.
A Special Meeting of the Redevelopment Agency will be held immediately following the City Council Meeting.
*****
CLOSED SESSION
Unless the City Attorney, the City Manager or the City Council states otherwise at this time, the Council wiU
discuss and deliberate on the following items of business which are permitted by law to be the subject of a closed
session discussion, and which the Council is advised should be discussed in closed session to best protect the
interests of the City. The Council is required by law to return to open session, issue any reports of final action
taken in closed session, and the votes taken. However, due to the typical length of time taken up by closed
sessions, the videotaping will be terminated at this point in order to save costs so that the Council's return from
closed session, reports of final action taken, and at/journment will not be videotaped. Nevertheless, the report
of final action taken wiU be recorded in the minutes which will be available in the City Clerk's Office.
26. CONFERENCE WITH LEGAL COUNSEL REGARDING:
1. Existing litigation pursuant to Government Code Section 54956.9
. Legal strategies affecting Chammas, Fritsch and Christopher. (Following this item, there
may be public action taken to appropriate funds for litigation)
CONFERENCE WITH LABOR NEGOTIATOR - Pursuant to Government Code Section 54957.6
. Agency negotiator: John Goss or designee for CVEA, WCE, POA, IAFF, Executive
Management, Mid-Management, and Unrepresented.
Employee organization: Chula Vista Employees Association (CVEA) and Western Council of
Engineers (WCE) , Police Officers Association (POA) and International Association of Fire
Fighters (IAFF).
Unrepresented employee: Executive Management, Mid-Management, and Unrepresented.
SALE AND DISPOSITION OF REAL PROPERTY - Pursuant to Government Code Section 54956.8
. Franchise for Otay Water District for Streets and Right-of-Way
27. REPORT OF ACTIONS TAKEN IN CLOSED SESSION
*****
>-)
,
November 9, 1995
SUBJECT:
The Honorable Mayor and City
.0
John D. Goss, City Manager
City Council Meeting of N vember 14, 1995
TO:
FROM:
This will transmit the agenda and related materials for the regular
city Council meeting of Tuesday, November 14, 1995. Comments
regarding the written Communications are as follows:
5a. This is a letter from the city Attorney stating that, as a
result of deliberations that occurred in Closed Session on
November 7, 1995, the City Council authorized the acceptance
of the Conciliation Agreement from HUD in the Trinidad de la
Rosa case in the form on file in the office of the City Clerk.
Except for the foregoing, there was no other observed
reportable action taken by the City Council in Closed Session.
IT IS RECOMMENDED THAT THE LE1'.1'ER BE RECEIVED AND FILED.
JDG:mab
C(
November 14, 1995
Council Chambers
Public Services Building
Relnllar Meetin2 of the Citv of Chuta Vista Citv Council
ADDENDUM
24. MAYOR'S REPORTIS)
c. Reviewing the City's Affordable Housing Policy in reference to ABl715.
CLOSED SESSION
27. SALE AND DISPOSITION OF REAL PROPERTY - Pursuant to GQvernment Code Section 54956.8
. Franchise for Otay Water District for Streets and Right-of-Way
Tuesday, November 14, 1995
6:00 p.m.
Council Chambers
Public Services Building
Relnllar Meetin2 of the Citv of Chula Vista Citv Council
ADDENDUM
24. MAYOR'S REPORT IS)
c. Reviewing the City's Affordable Housing Policy in reference to AB1715.
CLOSED SESSION
27. SALE AND DISPOSITION OF REAL PROPERTY - Pursuant to Government Code Section 54956.8
. Franchise for Olay Water District for Streets and Right-of-Way
"I declare lm~er pena:ty of perjury that I am
em!11o~:ed by the City 0'1 Chu~a V:si:a in the
Office of the City Cler:\ 2nJ elat I posted
thin Agendali\lotice on the Sulle~;n Board at
the Public ervl e~Buildins and at City HaJl on
DATED, 11/17 9.3 SIGNED f5/~-"
I ~)
COMMENDING STEPHEN RODECKER
OUTSTANDING TEACHER OF THE YEAR
IN THE CITY OF CHULA VISTA, CALIFORNIA
WHEREAS, Stephen Rodecker has served the Sweetwater Union High School
District for the past ten years as an educator of science at Chula Vista High School; and
WHEREAS, Stephen Rodecker utilizes a technique similar to his approach in
teaching foreign language by helping students understand scientific terminology and
then translating the words into action. In addition, he stresses learning scientific
methodology by applying it to real life situations; and
WHEREAS, Stephen's last ten years have been marked by dedicated service to
the young citizens of our community, by serving not only as their instructor during
regular curriculum hours, but by helping many students during lunch and other times
to provide extra support; and
WHEREAS, Stephen Rodecker was among 35 national finalists competing in 12
categories for the American Teacher Awards, and on November 1 st, 1995 was named
Outstanding Teacher in the science category at our nation's capitol:
NOW, THEREFORE, I, SHIRLEY HORTON, Mayor of the City of Chula Vista,
California, do hereby COMMEND STEPHEN RODECKER OUTSTANDING TEACHER
OF THE YEAR, and urge all citizens to join with me in honoring STEPHEN RODECKER
and recognizing the many invaluable resources he has provided for the future leaders
of this community.
1}/; - /
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CllY OF
CHULA VISTA
OFFICE OF THE CITY ATTORNEY
Date:
November 8, 1995
To:
The Honorable Mayor and City Council
From:
Bruce M. Boogaard, City Attorney
Re:
Report Regarding Actions Taken in Closed Session
for the Meeting of 11/7/95
The purpose of this letter is to announce that as a result of
deliberations that occurred in Closed Session on November 7, 1995,
the City Attorney reports that the City Council authorized the
acceptance of the Conciliation Agreement from HUD in the Trinidad
De La Rosa Case in the form on file in the office of the city
Clerk.
Except for the foregoing, there was no other observed reportable
action taken by the City Council in Closed Session.
BMB:lgk
C:\lt\clossess.rep
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276 FOURTH AVE/CHULA VISTA, CALIFORNIA 91910/(619) 691-5037
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COUNCIL AGENDA STATEMENT . &,
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Page 1, Item. /1'y,/ /
Meeting Date H/07/95 / /5'->
/'
.
ITEM TITLE: Public Hearing: Zoning Text Amendment PCA-96-01; Request to add
wording to Section 19.68.020 T.1 of the Municipal Code which would
clarify that noise associated with the normal operations of any land use
approved by a conditional use permit is considered "environmental" rather
than nuisance noise - Bitterlin Brice Development Partners, Agents for
MCA conce:t..6~'
or4.~~QO~ ~ if ~ Amending ~19.68.020 T.1, Title 19 of the
1\~fficlpal Code to clarify that noise normally associated with a
~$Q conditionally permitted land use is to be considered the same as noise
rQ~Q normally associated with a permitted land use
~~v
SUBMITTED BY: Director of Planning ~
REVIEWED BY: City Manager 11- (4/5ths Vote: Yes_No.lO
This amendment would clarify the distinction between "nuisance noise" as opposed to
"environmental noise"as it would relate to conditional uses in general and the operations of the
MCA Amphitheater in particular. The Environmental Review Coordinator has concluded that
this text amendment is exempt from environmental review pursuant to Section 15061(b)(3) of
the California Environmental Quality Act.
RECOMMENDATION: That the Council adopt the Ordinance amending Section 19.68.02.Q
T.1 of the Municipal Code to clarify the distinction between environmental and nuisance noise
as it relates to conditional uses.
BOARDS/COMMISSIONS RECOMMENDATION:
On September 6, 1995, the Planning Commission voted 6-0 recommending that Council approve
the text amendment to Section 19.68.020 T.l of the Municipal Code. The minutes from that
meeting are attached to the staff report for the MCA Amphitheater.
DISCUSSION:
1. ProDosal
In an application and letter dated August 18, 1995, the Applicant has requested that the wording
found in ~19.68.020 T.l be expanded as follows (additional wording higWighted):
.
"Noise Disturbance--Environmental. Those noise disturbances resulting from land use
~~;[;:._iL._e~~ ~~~~~!~:~~~s~~o::i~~l~~"i!!i~!~'~g!!~!!
/?~r~ ~-/
/"
Page 2, Item~
Meeting Date 10/3/95 __
for that particular land use. Environmental noise sources are specified in, but not limited
by the list in Appendix A."
The impact of this wording would be that noise resulting from the normal and expected
operations. of a land use approved under authority of a conditional use permit would be
considered the same as the noise resulting from the normal and expected operations of a
permitted use, i.e., "environmental" rather than "nuisance" noise. For example, freeway noise
is considered environmental noise because the noise results from the normal use of the land as
a transportation corridor. Children playing on a school playground during school hours would
also be considered environmental noise. Environmental noise is the expected result of a given
land use. In the case of the amphitheater, any noise resulting from a concert would be
considered normal and expected, and thus environmental noise.
2. Analvsis
The substance of the amendment is that the impact of environmental noise is measured over a
one hour period in order to achieve an average compliance with the standard, and is enforced
through the normal code compliance process. Conversely, nuisance noise, which is not
considered normal and expected, cannot exceed the standard at any time and is enforced by the
Police Department in response to specific complaints, i.e., a loud party in a residential
neighborhood. _
The applicant has been assured by staff that noise from the normal, scheduled operations of the
amphitheater would be considered and measured as environmental noise notwithstanding this
amendment. However, MCA prefers to have the language in the Code so as to avoid any
confusion or misunderstandings in the future. Therefore, staff agreed to process this clarification
of a standard practice.
Staff believes the additional language clarifies any ambiguities in the Code and recommends
adoption of the amendment.
FISCAL IMPACT: No fiscal impacts to the City are anticipated because ~19.68.020 T.l, Title
19 of the Municipal Code is already interpreted in the manner requested and, therefore, there
will be no additional staff time or City resources committed to enforcement than already exists.
Applicant is paying all costs associated with the processing of this text amendment request.
Attachments
1. Draft Council Ordinance
2. Planning Commission Minutes from September 6, 1995
3. Application and letter dated August 18, 1995
4. Disclosure Statement
(m: \home\planning\martin\mca\9601 a.II3)
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,./1 c::- <7"'-
ORDINANCE NO. 2642
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF CHULA VISTA AMENDING
~19.68.020 T.l, TITLE 19 OF THE MUNICIPAL o~
CODE TO CLARIFY THAT NOISE NORMALL Y ~'i:P,?'\~
ASSOCIATED WITH A CONDITIONAL Y~~\)
PERMITTED LAND USE IS TO BE CONSI
THE SAME AS NOISE l:l\~ ALLY
ASSOCIATED WITH A PERMITT:sl:Y'tAND USE
WHEREAS, Bitterlin Brice Development Partners, Agents for MCA
Concerts, Inc., has submitted a request to amend the Municipal Code in order
to clarify that noise normally associated with a conditionally permitted land
use is to be considered the same as noise normally associated with a
permitted land use, Le., environmental rather than nuisance noise under the
definition of ~ 19.68.020 T. 1, Noise Disturbance -- Environmental; and
WHEREAS, the Municipal Code could be considered ambiguous as
related to noise produced by conditionally permitted land uses; and
WHEREAS, the Environmental Review Coordinator has concluded that
the amendment is exempt pursuant to Section 15061(b)(3) of the California
Environmental Quality Act; and
WHEREAS, on September 6, 1995 the Planning Commission voted 6-0
to recommend that the City Council adopt the amendment to the Municipal
Code in accordance with Resolution No. PCA-96-01; and
WHEREAS, the City Clerk set the time and place for a hearing on said
amendment and notice of said hearing, together with its purpose, was given
by its publication in a newspaper of general circulation in the city at least ten
days prior to the hearing; and
).l7<:'3? ..;;
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~
ORDINANCE NO. 2642
AN ORDINANCE OF THE CITY COUNCIL 0
E CITY OF CHULA VISTA AMENDIN
919. 8.020 T.l, TITLE 19 OF THE MUNICIP L O~
CODE 0 CLARIFY THAT NOISE NORMA Y ~\p'?'\~
ASSOCIA D WITH A CONDITION Y~~O
PERMITTE AND USE IS TO BE CONSI
THE SAM AS NOISE .!:l\~
ASSOCIATED W H A PERMITT~'L
WHEREAS, Bitterlin Brice D elopment P tners, Agents for MCA
Concerts, Inc., has submitted a request t amend Municipal Code in order
to clarify that noise normally associated ith a onditionally permitted land
use is to be considered the same as no' e normally associated with a
permitted land use, i.e., environmental rathe than nuisance noise under the
definition of 919.68.020 T.l, Noise Disturb n -- Environmental; and
~
WHEREAS, the Municipal Code c uld be nsidered ambiguous as
related to noise produced by conditional permitted nd uses; and
WHEREAS, the Environmental
the amendment is exempt pursuant
Environmental Quality Act; and
eview Coordinato has concluded that
Section 15061(b)( of the California
ion voted 6-0
Municipal
WHEREAS, on Septembe 6, 1995 the Planning Commi
to recommend that the City C uncil adopt the amendment to
Code in accordance with Re olution No. PCA-96-01; and
WHEREAS, the Ci Clerk set the time and place for a hearin on said
amendment and notice said hearing, together with its purpose, wa given
by its publication in a ewspaper of general circulation in the city at Ie t ten
days prior to the he ing; and
~.
)-l:;-,:::-'3 ?J
Ordinance No. 2642
Page #2
WHEREAS, the hearing was held at the time and place as advertised, .
namely September 26, 1995, at 6:00 p.m. in the Council Chambers, 276
Fourth A venue, before the City council and said hearing was thereafter
closed.
NOW, THEREFORE, the City Council of the City of Chula Vista does
hereby find, determine and ordain as follows:
SECTION I: That there are no potential significant environmental
impacts associated with the amendment.
SECTION II: That the public necessity, convenience, general
welfare, and good zoning practice justify the amendment, and that the
amendment is consistent with the City of Chula Vista General Plan.
SECTION III: That ~19.68.020 T.l, Title 19 of the Municipal Code is
hereby amended to read as follows:
"Noise Disturbance--Environmental. Those noise disturbances .
resulting from land use activity normally permitted under the
It'a.~,.O:~~,!~!!!!~'!~l!!'!~!!if!~!i!~
this code for that particular land use. Environmental noise
sources are specified in, but not limited by the list in Appendix
A."
SECTION IV: This Ordinance shall take effect and be in full force and
effect on the thirtieth day from and after its second reading and adoption.
Presented by
Approved as to form by
Robert A. Leiter
Director of Planning
Bruce M. Boogaard
City Attorney
.
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CllY OF
CHUlA VISTA
OFFICE OF THE CITY CLERK
TELEFAX COVER LETIER
Te1ecopier No. (619) 585-5612
DATE:
/Ij/A~/
/ /
TO: Star News LeS!a1 / Martha
FAX NO: (619) 426-6346
FROM: C~
SUBJECf: /3~::# O?,,; t:2.
TOTAL NO. PAGES (including cover):
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PUBUCATION DATE:
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If all pages are not received, please call Carla @ (619) 691-5041.
-----
6'~./
276 FOURTH AVENUE, CHULA VISTA. CALIFORNIA 91910 . (619) 691-5041
@ 1'00<'....._...
NOTICE OF ADOPTION OF ORDINANCE NO. 2642 AND SUMMARY OF
ORDINANCE OF THE CITY OF CHULA VISTA AMENDING SECTION
19.68.020 T.1 OF THE MUNICIPAL CODE TO CLARIFY THAT NOISE
NORMALLY ASSOCIATED WITH A CONDITIONALLY PERMITTED LAND
USE IS TO BE CONSIDERED THE SAME AS NOISE NORMALLY
ASSOCIATED WITH A PERMITTED LAND USE
This Ordinance clarifies the distinction between "nuisance noise"
as opposed to "environmental noise" as it relates to conditional
uses in general and the operations of the MCA Amphitheater in
particular.
This Ordinance had its first reading on November 7, 1995 and its
second reading and adoption at the regular meeting of November 14,
1995 with the following vote: AYES: Alevy, Moot, Padilla, Rindone,
Horton; NOES: None; ABSENT: None; ABSTAIN: None.
Pursuant to city Charter section 312 (b), a full copy of said
Ordinance is available in the City Clerk's Office and is available
to all interested persons by calling 691-5041.
DATED: November 15, 1995
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COUNCIL AGENDA STATEMENT
MEETING DATE:
ITEM
November 14. 1995
7
ITEM TITLE: Resolution 18"1,1.2.. approving a purchase order
agreement between City of Chula Vista and Wells
Fargo Security Services to provige security guard
patrol at Civic Center/Main Library, South Chula
Vista Library, and EastLake Library for FY 95/96
SUBMITTED BY: Library Directo~
REVIEWED BY: City Manage~ ~~\ (4/5ths Vote: Yes_No_)
Since 1986 the Chula Vista pu~ic Library has annually issued bid
and, subsequently, a purchase order to a private security guard
service to provide crowd control as well as a safe, welcoming
environment for library users in all its facilities. For the FY
95/96 a Request for Quote was issued for security services,
responses evaluated, and a vendor selected.
RECOMMENDATION: That the
approving a purchase order
Services, the low bidder,
Center/Main Library, South
Library
City Council adopt the resolution
agreement with Wells Fargo Security
for security guard patrol at Civic
Chula Vista Library, and EastLake
BOARD/COMMISSION RECOMMENDATION:
DISCUSSION:
Not applicable
Since 1986 the Chula Vista Public Library, specifically the Civic
Center /Main library, has purchased the services of private security
guards to enforce the Library's rules of conduct, provide crowd
control, and maintain a safe and welcoming environment for all
library users. In 1993, security guards were added at the EastLake
Library, and in April 1995 the new South Chula Vista Library also
initiated security guard service.
On September 20 a Request for Quotation (RFQ) was issued by
Purchasing for security guard services to cover all three libraries
for the next twelve months (Attachment A). Ten companies requested
the RFQ document. Five companies responded, including one Chula
Vista firm, by the deadline of October 13.
The firms submitting bids were:
Vendor
Wells Fargo Guard Services
Able-Locator
Waddington
San Diego Security
(Chula Vista firm)
American Protective Services
Hourly Rate
$8.60
8.79
8.80
9.75
10.72
c:\security\96.a13
7~/
! ,. ~.,
ITEM
MEETING DATE:
, Page .2.
November 14. 1995
7
It is recommended that the City accept the proposal of the low
bidder, Wells Fargo Guard Services, at the rate of $8.60 per hour
(Attachment B). Wells Fargo has been the Library I s security vendor
for the past two years. They have consistently fulfilled the
City's requirement for liability and other necessary insurance, and
delivered guard service in compliance with the Library's written
requirements. Over the past two years they have kept a low hourly
rate, actually reducing the hourly fee by $.05 between FY 93/94 and
94/95. The FY 95/96 bid is the same as the FY 94/95 bid, $8.60 per
hour. The City has an option to renegotiate the agreement with the
successful vendor for three additional one year periods. During
the period of this proposal, the City may request security guards
at other sites for the same negotiated hourly rate.
FISCAL IMPACT:
Security guard services are budgeted annually from the general
fund, and are included in the FY 95/96 budget. It is estimated
that $50,050 will be collectively spent from existing accounts 100-
1751-5298 ($15,350), 100-1761-5298 ($20,550), and 100-1770-5298
($14,150) .
c:\eecurity\96.a13
7-;2.
RESOLUTION NO.
J ?1.?J,,2..
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A PURCHASE ORDER
AGREEMENT BETWEEN CITY OF CHULA VISTA AND
WELLS FARGO SECURITY SERVICES TO PROVIDE
SECURITY GUARD PATROL AT CIVIC CENTER/MAIN
LIBRARY, SOUTH CHULA VISTA LIBRARY AND
EASTLAKE LIBRARY FOR FY 95/96
WHEREAS, since 1986 the Chula vista Public Library has
annually contracted with a private security guard service to
provide crowd control as well as a safe, welcoming environment for
library users in all its facilities; and
WHEREAS, for FY 95/96 a RFQ was issued for security
services, responses evaluated, and a vendor selected.
NOW, THEREFORE, BE IT RESOLVED the City Council of the
City of Chula vista does hereby approve a purchase order agreement
between the city of Chula vista and Wells Fargo Security Services
to provide security guard patrol at civic Center/Main Library,
South Chula vista Library and Eastlake Library for FY 95/96, a copy
of which is on file on the office of the City Clerk as Document No.
(to be completed by the City Clerk in the final document).
City
said
BE IT FURTHER RESOLVED that the Purchasing Agent of the
of Chula vista is hereby authorized and directed to execute
agreement for and on behalf of the City of Chula Vista.
/
;rp< v~s ;0 fa," b
(~ruoe M. Boog
Attorney
Presented by
David Palmer, Library
Director
C:\rs\security.lib
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ATTACHMENT A
CITY OF CHULA VISTA
REQUEST FOR QUOTATION NO: 12-95/96
SPECIFICA nONS FOR
CHULA VISTA PUBLIC LIBRARY
SECURITY GUARD SERVICES
1. Locations:
A. Provide a security patrol in the Chula Vista Public Library, 365 F Street, Chula
Vista, on a hourly basis for the period October I, 1995-September 30, 1996 for
approximately 41 hours weekly. The days to be patrolled are Monday-Thursday
afternoons/evenings, and Saturday/Sunday afternoons.
B. Provide a security patrol in the Eastlake Library, 1120 Eastlake Parkway, Chula
Vista, on a hourly basis for the period October 1, 1995-September 30, 1996 for
approximately 28 hours weekly. The days to be patrolled are Monday-Thursday
afternoons/evenings, and Saturday/Sunday afternoons.
C. Provide a security patrol in the South Chula Vista Library, 389 Orange Avenue,
ChuJa Vista, on a hourly basis for the period October I, 1995-September 30,
1996 for approximately 40 hours weekly. The days to be patrolled are Monday-
Thursday afternoons/evenings, and Saturday/Sunday afternoons.
D. Total hours listed are estimates only. Contractor agrees to waive any difference,
whether more or less, between hours listed and actual hours of service performed.
Payment shall be made only for service completed to the satisfaction of the City.
E. The City may request hourly security patrol at additional City locations during the
term of this contract at the same hourly rate.
2. The Contractor will not raise the hourly rate during the term of this contract. No
premium will be allowed for lead guards or supervisors. Supervision costs shall be
included in the hourly rate.
3. The Contractor must respond to off-hour emergencies with a qualified guard on-site
within 45 minutes. In the event of an off-hour emergency, the City will pay one and
one-half (1112) times the hourly rate, plus one-half (112) hour travel time each way. A two
(2) hour minimum will be allowed for each off-hour callback.
Specifications: Page 1
7;-5
19
CITY OF CHULA VISTA
REQUEST FOR QUOTATION NO: 12-95/96
4. The Contractor must have all required valid state and city business licenses for contract
security services. Guards assigned to city facilities shall carry current personal guard
registration cards issued by the State of California. Contractor must comply with all
Federal, State and local regulations. Guards must know and enforce the "Library
Conduct Policy" (see attached).
5. All security guards must wear a complete uniform that is cleaned and pressed. A visible
and easy to read nameplate or name tag shall be affixed to the outer shirt or jacket. The
uniform shall also have the Contractor's name prominently displayed. The lead guard
at each site will use a "pagerlbeeper" appliance supplied by the Contractor. Uniforms
and pagers shall be provided at Contractor's sole expense.
6. Guards will not carry firearms.
7. Before a guard is trained and placed at the library, the library may request an interview
with the prospective guard and reserves the right to accept or reject that prospective
guard.
8. If more than one guard is scheduled, each guard shall patrol a separate beat. A
continuous walking beat shall be maintained to include Quiet Areas, the remainder of the
library building, and the library parking lot. Beat schedules and routes shall be subject
to Branch Manager's approval.
9. Supervision and training of all security guards is by the post commander or area manager
of the Contractor. This post commander or area manager is to be in contact with the
Branch Manager at each job site weekly to maintain communication on guard
performance.
10. The Contractor is to supply a plan to ensure a smooth start to the agreement, and a plan
to avoid any lapses in security coverage for the length of the agreement. Part of this
plan will be a set of pictorial post orders designed for each library site and produced at
the expense of the Contractor by October 31, 1995.
11. Guards who do not report on schedule cannot be accommodated. Tardiness and/or
absenteeism is considered a breach of contract and cause for termination.
12. The Contractor shall conduct weekly inspections of each facility and provide written
summaries to Branch Managers to ensure effective guard performance for the length of
the agreement.
Specifications: Page 2
7..-~
19
CITY OF CHULA VISTA
REQUEST FOR QUOTATION NO: 12-95/96
13. The Contractor is to provide continuity in coverage by maintaining enough trained guards
to fill in when absence occurs.
14. At the Contractor's expense, all prospective guards must pass a drug test, have no
criminal record, and pass a 5 year computerized background check. The Contractor will
specify and describe the computer system used for the background check.
15. If a security guard must make a court appearance as a result of performing service under
terms of this agreement, the City will pay the hourly rate bid for the amount of time
spent in court.
16. The Contractor will provide a brief history of their security company in the San Diego
County area, local office structure, employee training, and field supervision.
Biographical information, i.e., past experience, should be provided on the area manager
or post commander.
17. LIABILITY INSURANCE
A. Contractor shall, throughout the duration of the Agreement maintain
comprehensive general liability and property damage insurance, or commercial
general liability insurance, covering all operations of Contractor, its agents and
employees, performed in connection with this Agreement including but not
limited to premises and automobile.
B. Contractor shall maintain the following minimum limits:
General Liability
Combined Single Limit Per Occurrence
General Aggregate
$1,000,000.00
$1,000,000.00
All insurance companies affording coverage to the Contractor shall be required
to add the City of Chula Vista as "additional insured" under the insurance policy
for all work performed in accordance with this Agreement. Coverage must be
from a company in good standing and authorized to transact insurance business
in the State of California.
All insurance companies affording coverage shall provide thirty (30) day written
notice to the City of Chula Vista should the policy be cancelled before the
expiration date. For the purposes of this notice requirement, any material change
Specifications: Page 3
7; 7
~~)"
,---,..j
CITY OF CHULA VISTA
REQUEST FOR QUOTATION NO: 12-95/96
in the policy prior to the expiration shall be considered a cancellation.
Contractor shall provide evidence of compliance with the insurance requirements
listed above by providing a certificate of insurance, and policy enforcement which
name the City of Chula Vista as additional insured concurrently with the submittal
of this Agreement.
18. Contractor must show evidence of worker's compensation and employers liability
coverage in accordance witl! the laws of the State of California. The worker's
compensation policy must contain a waiver of subrogation of rights against the City of
Chula Vista.
19. Contractor shall provide a fidelity bond in the amount of $5,000 for each guard assigned
to City facilities. .
20. Contractor agrees to defend, indemnify, protect, and hold the City and its agents, officers
and employees harmless from and against any and all claims asserted or liability
established for damages or injuries to any person or property, including injury to bidder's
employees, agents or officers which arise from or are connected with or are caused or
claimed to be caused by the acts or omissions of bidder, and its agents, officers or
employees" in performing the work or services or supplying the materials or equipment
herein, and all expenses of investigating and defending against same; provided, however,
that bidder's duty to indemnify and hold harmless shall not include any claims or liability
arising from the established sole negligence or willful misconduct of the City, its agents,
officers or employees. This shall not prejudice the right of the City to appear in such
suit, participate in the defense and take such actions as may be necessary to protect the
interests of the City.
21. TERMINATION OF CONTRACT FOR CAUSE. In the event the Contractor
consistently fails to meet the specifications of this contract, the City may at its option
terminate the balance of the contract provided that the Contractor has had written notice
of its failure. Notice of such termination shall be in writing and shall take effect fifteen
(15) days after mailing such notice.
22. TERMINATION FOR CONVENIENCE. City may terminate this Agreement at any
time for any reason by giving specific written notice to Contractor of such termination
and specifying the effective date thereof, at least thirty (30) days before the effective date
Specifications: Page 4
7-3"
CITY OF CHULA VISTA
REQUEST FOR QUOTATION NO: 12-95/96
of such termination. If the Agreement is terminated by the City as provided in this
paragraph, Contractor shall be entitled to receive compensation for any satisfactory work
completed at the sole direction of the City. Contractor hereby expressly waives any and
all claims for penalties, damages, or additional compensation.
23. Contractor will provide three local references of similar accounts that were serviced by
the post commander to be assigned to the Chula Vista Public Library sites, and indicate
length of time service has been provided to the accounts.
24. Contact Paula Brown, Library Project Manager, at (619) 691-5068, for technical
information or to arrange for a site inspection scheduled for October 3rd or 4th. It is the
Contractor's responsibility to complete site inspection of City facilities associated with
this bid's specifications. Failure to inspect these facilities shall not relieve the
contractor's responsibility in this regard.
IeCUrity\rfq
Rev: 9/9S
Specifications: Page 5
7~'l
;)').
CITY OF CHULA VISTA
REQUEST FOR QUOTATION NO: 12-95/96
LIBRARY CONDUCT POLICY
1. A quiet atmosphere is desirable in the Library. It is the responsibil ity of each person in
the Chula Vista Public Library to insure that his or her actions contribute to maintaining
quiet.
2. The Library is designed for individual study and reading. Individual study carrels are
provided.
3. Tables are arranged to seat a maximum of four people and are not intended for group
study. Conversations must be conducted outside the Library.
4. Food, drinks, and smoking are not permitted in the Library.
5. Adults should accompany young children into the adult areas to insure that quiet is
maintained for adult users
6. Applicable laws and the Municipal Code will be enforced.
7. Individuals not conforming to these guidelines will be asked to leave the Library.
Approved by the Library Board of Trustees
September 24, 1986
Specifications: Page 6
7-/1/
ATTACHMENT B
CITY OF CHULA VISTA
REQUEST FOR QUOTATION NO: 12-95/96
BID FORM
The undersigned hereby offers to provide the City of Chula Vista with approximately (109)
hours of Security Guard Service on a weekly basis at three (3) library facilities for the period
of October I, 1995 through September 30, 1996, in accordance with the attached specifications.
Hourly Rate $ 8.60 S.T. 12.90 OfT !hr
(includes all labor, materials, equipment, training, insurance,
transportation, uniforms, supervision and applicable taxes)
Terms
%
days
PRICES SHALL BE FIRM FOR THE INITlAL ONE YEAR PERIOD.
O['~iol' To Renew
The City may desire to exercise an option to renew the contract for three (3) additional one (1)
year periods under the terms and conditions herein stated beginning October 1, 1996 through
September 30, 1999. The City proposes that such renewal be contingent on a murual agreement
between the City and the successful bidder herein, such agreement to be confirmed sixty (60)
days prior to the termination of the contract period. Either the Chy or the bidder may at that
time decline to confirm the renewal of the contract, for any reason whatever, and such
declination would render the renewal option null and void.
. Please indicate below the maximum percentage increase to which the prices in effect at the end
of the prior year would be subject if the renewal options were exercised.
Bidder stipulates that the cumulative total of all increases in anyone option year would not
exceed 2.5 % of the prices in effect at the end of the prior year.
Bidder is advised that price adjustments for the option period would be subject to the same terms
cited below under paragraph titled "Price Adjustment Clause".
Note: The City usually grants price increases which are not in excess of the CPI for the San
Diego area as published by the Bureau of Labor Statistics.
Evaluation Of Ootion Period
Bid Fenn: Page I
7-/1
;)./--I
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CITY OF CHULA VISTA
REQUEST FOR QUOTATION NO: U-9S/96
The recommendation for award will be based on the initial year contract period only, and IlQ1
on the option period, if any.
J?rice Adjustment Clause
Price increases during the option period, as may have been stipulated by the bidder in the
preceding section, will be permitted only when and if the bidder makes general increases to the
trade in the price of the service. Such increase in price made effective by the bidder prior to
date of service may be added to the price quoted by the bidder after bidder's first giving notice
of such increase to the City, and furnishing the City with copies of notices of price advance to
the trade, showing dates of such price advances; provided, sum exceed the percentage(s) quoted
by the bidder in the applicable section(s) on these pages. and provided further that any decrease
in price made effective prior to delivery of service shall be allowed to the City and that the City
shall be allowed to cancel the contract if price increases are unacceptable to the City. The
bidder shall have the responsibility to notify the Purchasing Agent of the City of any such
decline in prices.
Failure to complete the price change section above will be constrUed to mean prices bid are firm
for the duration of the contract, general cost increases to the trade notwithstanding.
Company Name:
WELLS FARGO GUARD SERVICES
Address:
6136 Mission Gorge Rd., Suite 214
City /State/Zip:
San Diego, CA 92120
Telephone No.
619-283-5418
Fax No.:
619-283-2048
Print Name:
Michael W. Fitzgibbons
Title:
Director of Business Development
Signature:
~ w. ::f~~
Date:
10-1-95
Bid Form: Page 2
7'/~
:-;
Page 1, Item ~
Date November 14. 1995
COUNCIL AGENDA STATEMENT
TITLE:
Resolution /8/ti..3 approving Memorandum of Understanding
between the City and the United States Environmental Protection
Agency to establish a voluntary agreement by which the City joins
EPA's Green Lights Program.
SUBMITTED BY: Barbara Bamberger, Environmental Resource Man~
REVIEWED BV, 'oho D. Go~. Ci", Mm,g~ ~~415" V..., V~-,- No..,]
Launched in January of 1991, EPA's Green Lights is a vQuntary program. It reduces
pollution by encouraging organizations across the country to install profitable lighting upgrade
projects that (1) maximize energy savings and (2) maintain or improve lighting quality. More
than 1,600 corporations, hospitals, schools, utilities, and state and local governments have
signed the agreements with EPA. The City has been asked to join the Green Lights Program
to reduce its energy use. The agreement can be terminated by the City without penalties or
liability to the City, there are no technologies prescribed in the program. Green Lights
assume a good faith effort by the City to met the principles in the Green Lights Program.
RECOMMENDATION: Approve memorandum of understanding between the City and the
United States Environmental Protection Agency to establish a voluntary agreement by which
the City joins EPA's Green Lights Program.
Boanls/Commission Recommendations: n/a
DISCUSSION:
In July 1995, the City was invited to attend a Green Lights Workshop to learn about the
Green Lights Program. The Green Lights partnership begins with a Memorandum of
Understanding which is an agreement of principles establishing that the City agrees to
upgrade its facilities with energy-efficient lighting while maximizing energy savings,
maintaining and improving lighting quality and ensuring a profitable investment. EP A
provides technical assistance and support tools and services which make the lighting upgrade
process easier and more cost-effective.
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Date November 14, 1995
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Because lighting accounts for 20-25 percent of all electricity sold in the United States, the
EP A estimates that if efficient lighting were used everywhere profitable throughout the
country, the nation's demand for electricity would be cut by more than 10 percent. This could
save nearly $17 billion in ratepayer bills and result in the following pollution reductions
annually:
. 202 million metric tons of carbon dioxide - the equivalent of taking 44 million cars off
the road,
. over 13 million metric tons of sulfur dioxide - which contributes to acid rain,
. 600,000 metric tons of nitrogen oxides - which contributes to the formation of smog
Under the Green Lights Program, the City agrees to:
. Appoint an implementation manager to coordinate the upgrades.
. Survey the lighting in all of its facilities
. Specify and install a demonstration lighting upgrade.
. Create a list of all facilities to be surveyed and or upgraded
. Consider a full range of lighting options to reduce energy use
. Upgrade 90"10 of the square footage of its facilities with the options that are profitable,
maximize energy savings, and do not compromise lighting quality. There are no
technology prescriptions,
. Complete upgrades withi:". 5 years of signing the agreement.
. Annually document the improvements made.
. Design all new facilities to meet most current building efficiency standards.
. Educate its employees about the benefits of energy-efficient lighting.
In exchange, the EPA agrees to provide to the City:
. Decision Support System - a state-of-the computer software program that allows
Partners to survey lighting systems in their facilities, assess their options, and select
the best energy-efficient lighting upgrades.
. Training Workshops - programs, scheduled nationwide, that feature comprehensive
training on the Decision Support System as well as lighting fundamentals, technology,
project management, and reporting.
. National Lighting Product - Information Program - an independent lighting information
program that provides an objective source of name-brand product information.
. Financing Directory - a computer database containing information on utility-sponsored
and other financial assistance (audits, rebates, and loans).
. Implementation Support specialists - are assigned to each participant to provide
technical support, problem solving and training.
. Public Recognition - advertising and marketing materials designed to recognize
participants for their commitment to the program.
. Ally Programs - individual programs designed for manufacturers, lighting management
companies, utilities, distributors, and surveyors to ensure that the lighting industry is
involved in the program and aware of it~ environmental and economic benefits.
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Page 3, Item 15
Date November 14. 1995
Benefits For Joining
Once the City has joined Green Lights, an account manager will be assigned to the City.
This account manager will work with the city to provide impartial technical assistance to cut
through vendor claims and to choose the best equipment for upgrades on various lighting
equipment, manufacturers, and systems. Green Lights provides information on a variety of
upgrade fmancing opportunities available to the City. Green Lights is complementary to the
City's ongoing work with SDG&E and will provide the City with national as well as regional
recognition of its pollution prevention efforts. Green Lights also provides public relations
staff at no cost to assist the city in promoting its participation in Green Lights through the
development of press releases, communications pieces and kick-off events to tie the City into
Green Lights. The project also provides a software program that models potential savings of
various upgrade options, thus providing a comparison of one upgrade versus another upgrade.
Green Lights provides a network of organizations doing similar upgrades who can share their
knowledge about equipment, fmancing, disposal, etc..Finally, it defines the City's commitment
to energy savings.
Staff has not identified any negative risks associated with joining Green Lights. Due to the
fact that there is no cost to the program, the technical assistance is free of charge, the City
receives ongoing recognition for participation, and there is no requirement to stay in the
program if the City wishes to end participation, staff recommends becoming a Green Lights
partner.
Partners simply agree to consider available technologies and install the mix of lighting
products and controls that maximize energy savings, maintain or improve lighting quality, and
do so in a manner that assures profitability by providing the City with an annualized internal
rate of return that is at least equivalent to 20 percentage points over a period of 20 years, or
alternately demonstrating a net present value greater than zero over a 20 year period, using a
discount rate of twenty percent.
Because the City has already embarked on a phased, comprehensive energy retrofit program
in conjunction with SDG&E, most of the items identified have either already been completed,
or are in the process of being completed. The City has recently completed Phase I - resulting
in a $200,000 capital improvement of all appropriate lighting in seven of the major city
buildings, including the Civic Center Complex and main library. Phase II is being currently
under consideration by Council, and includes a comprehensive lighting audit and retrofit of
the remaining 24 city-owned buildings, exterior lights and parking lots. Phase III will
commence shortly after January 1st, and will concentrate on mechanical retrofit, such as
heating, air conditioning and motor/pump upgrades. Staff is attempting to take advantage of
available incentives through SDG&E to defray costs. The most compelling reason for joining
Green Lights is the technical services, workshops and training materials provided.
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Date November 14. 1995
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FISCAL IMPACT:
There is no cost for joining and participating in Green Lights. It is a strictly a voluntary
program and can be ended at any time. Staff does anticipate that 1995-96 budgeted staff time
will be used to implement the ongoing retrofit program. It is estimated that aproximately 40 -
60 hours of staff time will be spent on Green Lights related proj ects and possible staff
training. Staff does not anticipate additional fiscal impacts.
Attachments:
Green Lights Memorandum of Understanding
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In order to maintain consistency and fairness among program participants, this Memorandum of Understanding may not be changed.
City Partner Memorandum of Understanding Between
The United States Emironmental Protection Agency
and
City of ChuJa Vista
I. COIIUDon Agreements and Principles
A This isa voluntaJy agreement between City ofChula Vista ("Green Lights City Partner") and the United States Environmental Protection Agency (EPA), by which Green
Lights City Partner joins EPA's Green Lights Program. This agreement can be tenninated by either party without penalties or liability to either party.
B. Green Lights City Partner and EPA agree that the primary purpose of the Green Lights Program is to encourage U.S. organizations to install energy-efficient lighting,
in order to prevent the creation of air pollution (including greenhouse gases, acid rain emissions, air toxins, and tropospheric ozone), solid waste, and other environmental
impacts of electricity generation. Green Lights is part of a larger program, and City Partners are encouraged to explore additional opportunities for pollution prevention by
joining EPA's Energy Star Buildings Program and the Energy Star Computers Program. Either or both of those programs may be entered by signing addenda to this
Memorandum of Understanding.
C. Green Lights City Partner and EPA agree that installation of energy-efficient lighting can improve profitability and competitiveness, and enhance national energy security.
D. Green Lights City Partner and EP A agree that energy-efficient lighting can maintain or enhance lighting quality and can improve employee productivity and customer
satisfaction.
E. Green Lights City Partner and EPA agree that communicating City Partner's commitments (as stated in this MOU) to the public demonstrates:
the concern of Green Lights City Partner for the environment,
the vitality of the free enterprise system in reducing costs, and
the capability of voluntary programs to achieve national goals with minimal regulation.
F Green Lights City Partner and EPA agree that maintaining public confidence in the credibility of the Green Lights Program and its participants is critical to achieving the
shared goals stated above.
II. Green Ughts aty Partner's Responsibilities
A Definition of City Partner and Eligibility. A Green Light City Partner is a city that joins the Green Lights Program by signing this Memorandum of Understanding.
Green Lights City Partner agrees that it has financial and operational control of some or all of its facilities, and further agrees that its membership in Green Lights commits
all ofits component suborganizations (such as subsidiaries, divisions, campuses, etc.) over which it can and/or does exercise financial or operational control. In completing
tbe square footage tally on Appendix A. Green Lights City Partner agrees to include all facilities subsumed by this definition.
B. Green Ughts bnplementation Director. Green Lights City Partner agrees to appoint a senior representative of the city (designated on Appendix A) as Green Lights
Implementation Director. The Green Lights Implementation Director will be the person responsible for ensuring that Green Lights City Partner successfully completes its
commitments as stated in this MOU, and Green Lights City Partner agrees to assign the authority to the Implementation Director needed to execute that responsibility. The
Green Lights Implementation Director's responsibilities include:
. establishing and overseeing Green Light City Partner's 5-year implementation plan, which includes the securing of personnel and financial resources,
and the scheduling of upgrade projects.
directing Green Lights City Partner's lighting upgrades,
coordinating Green Lights City Partner's participation in Green Lights activities,
. facilitating communication with the Green Lights Program Office at EP A, and
. annual reporting to EPA of Green Lights City Partner's lighting surveys and upgrades.
Green Li&hts City Partner agrees to notify EP A in writing within two weeks of any change in the designation of the Green Lights Implementation Director.
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C. Comnllmicalions Director. Green Lights City Partner agrees to appoint a representative ofthe city (designated on Appendix A) as Green Lights Communications Director.
The Communications Director will direct Green Lights City Partner's communications effort to ensure (as deemed appropriate by Green Lights City Partner) that the
organization is properly recognized for its environmental protection achievements through Green Lights, and, in addition. to educate all employees and citizens about the
Program. Green Lights City Partner agrees to notify EPA in writing within two weeks of any change in the designation of the Green Lights Communications Director.
D. StaJJ'Commitment. Based on the experience of City Partners who have already joined the Green Lights Program, Green Lights City Partner should anticipate devoting
a combination of internal (staff) and external (consultant/contractor) personnel resources at the approximate level of1 person-year for every 5 million square feet of facility
space., for the purpose of surveying buildings, specif}ing upgrades, supervising upgrade installations, and managing other aspects of Green Lights City Partner's participation
in Green Lights. Green Lights City Partner agrees to provide adequate staff to fulfill the commitments it undertakes in the MOU.
E. FmanciaI Commitment. Green Lights City Partner recognizes that, although energy-efficient lighting upgrades are highly profitable (typically earning 20-40% post-tax
rates of return), an initial investment of$O.50~2.00 per square foot (depending upon existing equipment, purchasing strategy, and scope of the lighting upgrades) will be
required on average to implement its participation in Green Lights over the initial 5-year period. Green Lights City Partner agrees to allocate each year sufficient funds (or
secure third-party financing) to allow for the investment in energy-efficient lighting to meet its commitments under this agreement.
F. Energy-Efficient Ughting Upgrades (terms In bold defined at Appendix B).
Green Lights City Partner agrees to:
. survey the lighting in all of the square footage of its eligible facili~es,
. consider the full range oflighting technology, design, and maintenance options that can reduce energy use, and
. upgrade the lighting with the set of options that, taken as a whole on a facility- aggregate basis, maximizes energy savings and that is also (1) profitable and
(2) meets Green Lights City Partner's Ughting quality objectives.
GreP.n Lights City Partner agrees to complete within five years:
lighting surveys of 100% of the square footage of its eligible facilities, and
. upgrades of90% of the square footage of its eligible facilities other than those that are no-upgrade facilities.
EP A and Green Lights City Partner agree that the five year schedule will begin on the first day of Green Lights City Partners first fiscal year that starts after the date that
Green Lights City Partner signs this MOO. Green Lights City Partner agrees that it will complete its lighting surveys and upgrades at least as rapidly as the following schedule:
Cumulative Percentage of Square Footage:
Cumulalive Percentage of Square Footage
End of Year Completed Surveys Completed Upgrades
1 5% 1%
3 90% 40%
5 100% 90%
G. Predominantly Short-Term Leased Space. Notwithstanding paragraph II.F, if Green Lights City Partner's facilities are comprised of more than 75 percent short-term
(tess than 5 years remaining) leased space, Green Lights City Partner agrees to:
survey at least 50% of its shorHenn leased space,
. consider the fult range of lighting technology, design. and maintenance options that can reduce energy use, and
City Partner Memorandwn of Understanctiug 02/95 (37072)
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., upgrade the lighting with the set of options that, taken as a whole on a facility- aggregate basis, maximizes energy savings and that is also (I) profitable and
(2) meets Green Lights City Partners lighting quality objectives.
For short-tenn leased space, a project is defined as "profitable" when it provides a payback term shorter than the remaining term of the lease. Green Lights City Partner agrees
to complete within 5 years upgrades. of 90% of the square footage of its short-term leased facilities other than those that are "no-upgrade facilities."
H. Quick Start. Within ISO days of signins this MOU, Green Lights City Partner agrees to:
1. Specuy and install a S,OOO-lS.000 square foot demonstration lighting upgrade with technical cooperation from EPA, if needed. Alternatively, Green Lights City
Partner may do a demonstration upgrade ofthe Mayors office.
2. Create a list of all facili1ics to be surveyed and/or upgraded under this agreement, their location, square footage, projected survey date, and pre-survey estimated
upgrade budget. EP A agrees to provide assistance with budget estimation, upon Green Lights City Partners request.
3. Conduct, in cooperation with EPA a kick-()ffmeeting. EPA agrees that it will provide materials, orientation information, planning assistance, technical training.
and networking ideas at or to dais kickoff meeting. Green Lights City Partner agrees that all parts of its organization with a stake in Green Lights (such as facilities
management, environmental oompliance, human resources, corporate communications, strategic planning, financial resources, etc.) will be represented by a senior
manager at the kick-<lff meeting. EP A's participation may take the form of supplying materials, participating via telephone or videoconference, or sending Green
Lights staff or consultants to the meeting at the request of Green Lights City Partner.
1. Upgrades Completed Prior to Jommg Green Lights. EPA and Green Lights City Partner agree that Green Lights City Partner may count toward its upgrade commitment
lighting upgrades that were completed fewer than 18 months prior to joining Green Lights, provided that the upgrades meet the Green Lights Program standards and proper
documentation is provided (see "Reporting. It below). EP A and Green Lights City Partner agree that facilities in which upgrades were completed earlier than 18 months prior
to Green Lights City Partner's joining Green Lights shall be surveyed, and, according to the criteria of this MOD, upgraded. Based on the experience of Green Lights City
Partners already in the Green Lights Program, it is common that a new lighting survey would determine that no additional measures are warranted in a previously upgraded
facility, provided that the earlier upgrade was done in a thorough manner.
1. Reporting. Green Lights City Partna'" agrees to submit Green Lights Implementation Reports (blank copy attached as Attachment D) or the equivalent Electronic Progress
Report (diskette available upon request) to EPA for each lighting survey and upgrade project that it undertakes. Green Lights City Partner agrees to submit reports at least
annually, to
. establish the credibility of Green Lights City Partner's poUution-prevention achievements. . demonstrate the benefits of energy-efficient lighting to City Partners
management, customers, and other stakeholders, and to. increase participation by other organizations in Green Lights.
More tTequent reporting is encouraged in order to avoid the need for large "batch" processing by either Green Lights City Partner or EP A EP A agrees to assist Green Lights
City Partner with completing City Partner's first implementation report, if City Partner requests.
If Green Lights City Partner has not undertaken any new surveys or upgrades since its previous membership anniversary, Green Lights City Partner agrees to send a letter
to EPA in lieu of the Green Lights Implementation Report.
K. New Construction. Green Lights City Partner agrees to design all new facilities in compliance with applicable codes and regulations. When designing new lighting
systems in areas that are not intended for manufacturing or commercial or industrial processing, Green Lights City Partner further agrees to at least meet (and attempt to
exceed) the most current lighting energy standards, defined as follows:
. FoUov.ring January 1, 1995, any Post-1989 IES lighting energy standard Of one has been issued),.Q! the building energy guidelines of the U.S. Department of
Energy,.Q! another post-J989 building energy standard more stringent than ASHRAElIES 90.1-1989 that has been created via an industry/professional/public
consensus process.
Green Lights City Partner agrees that all Dew leases that it signs (whether as a lessor or lessee) lasting 5 years or longer will be treated as "New Construction."
L. Re-Surwys. Because of the continuing improvement in and falling prices of energy-efficient lighting equipment, Green Lights City Partner agrees to re-survey facilities
and reanalyze options at all eligible :facilities no later than five years after completing an upgrade at that facility or determining that the facility was a "no-upgrade facility."
Green Lights City Partner agrees to implement options that meet the Green Lights upgrade criteria that then exist within five years of the re-survey.
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M. Employee Education. Green Lights City Partner agrees to educate its employees about the economic and environmental advantages of energy-efficient lighting and,
to the extent that is possible and consistent with the organization's policies, to encourage employees to purchase such products for their homes.
N. Recruitment of Corporate Partnen. Green Lights City Partner agrees to attempt to recruit Green Lights Partners from organizations located in its city. In its',recruiting
efforts, Green Lights City Partner agrees, at a minimum, to consider:
I. distributing EP A-supplied and other promotional materials~
2. using EPA-supplied visual aids as part of presentations to prospective Green Lights Partners;
3. using Green Lights Program logo where Green Lights City Partner and EPAjointly deem it appropriate, and concur in writing to that effect;
4. Involving the Mayor and other high level officials in directly recruiting major corporations, universities, hospitals. etc. headquartered in the city,
S. proposing any legislation needed to assure legal obstacles to full effectiveness of Green Lights removed.
Green Lights City Partner further agrees to promptly infonn EPAofinterest expressed by prospective Green Lights Partners in its jurisdiction to allow further contact by EPA
O. Conununication. Green Lights City Partner agrees to cooperate with EPA efforts to help raise public awareness of the Green Lights Program and of the benefits of energy~
efficient lighting in general. This could include Green Lights City Partner's preparation of case studies. advertisements, and press releases and their distlibution to the media.
employees., other Green Lights participants, and potential participants. Green Lights City Partner agrees to provide at least one case study to EP A by the end of its second
year of membership. Green Lights City Partner further agrees to establish and annually conduct a "Green Lights Day" (possibly in conjunction with Earth Day of Energy
Awareness Month) within twelve months of signing the Memorandum of Understanding to educate corporations, non-profit institutions, and the citizens and students of the
state about the benefits of energy~fficient lighting. Green Lights City Partner agrees to consider including some or all of the following types of activities during "Green Lights
Day" and/or at other times:
I. an awards program for the most energy-saving. cost~tIective upgrades in schools, hospitals, universities, and corporations headquartered in the city;
2. distribution of infonnational flyers/pamphlets to city schools and city employees;
3. a media event in the city executive's energy-efficient lighting~equipped office; and
4. a mayoral proclamation in support of Green Lights principles.
P. Regulatory Reform. To the extent allowable by law and consistent with other policies, Green Lights City Partner agrees to work with EPA to remove any unjustivied
regulatory, administrative and other barriers to the widespread adoption of energy~fficient lighting, and to promote additional mechanisms and incentives (in conjunction
witb any existing city economic/energy office programs or independently) that will encourage the widespread adoption of energy-efficient lighting and increase the
competitiveness of energy efficient corporations. Green Lights City Partner agrees that its regulatory agencies wilt work with EP A to support changes that prevent utility
revenue erosion and pennit utilities to earn profits from energy efficiency programs, such as Green Lights.
Q. Non-Endorsement. Green Lights City Partner agrees that participation in the Green Lights Program, use ofthe Green Lights Program logo. or any publicity relating
to its participation in the Green Lights Program does not constitute EPA's endorsement of Green Lights City Partner for anything other than its commitment to install energy-
efficient lighting. Green Lights City Partner agrees that it will not imply otherwise.
11[. EPA's Responsibilities
A Uaison. EPA agrees to designate a single liaison point for the Green Lights Program, and will attempt to notify Green Lights City Partner within 2 weeks of any change
in thedesignared liaison. The liaison is: Chiet Green Lights Branch; U.S. EPA(6202J); 401 M Stree~ SW; Washington, DC 20460; PH# 202.233.9120; FAX # 202.233.
9569; 202.775-6650 (hotline).
B. Technical Support. EPA agrees to assist Green Lights City Partner in adopting new cost~ffective lighting technologies in the following ways:
I. EPA agrees to provide to Green Lights City Partner a comprehensive summary of the best available infonnation about energy-efficient lighting and
implementation methods.
2. EPA agrees to offer workshops and training courses that Green Lights City Partners may attend. These workshops and training courses will teach
Green Lights City Partners about energy-efficient lighting technologies, analytical techniques, and the use of technical tools developed by the Green
Lights Program.
3. EPA agrees to provide lighting analysis software designed to help Green Lights City Partner conduct their lighting surveys, complete their options
analyses, and choose the most energy-efticient and profitable lighting upgrade package.
City Partner Memorandum .r UDdentaDdiDg 02195 (37072)
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4. EPA agrees to manage Green Lights Allies Programs in which lighting manufacturers, installation companies, electric utilities, lighting equipment
distributors, and lighting surveyors agree to follow specific criteria.
5. EPA agrees to support an independent lighting product information program that will test lighting products on a name-brand basis. EPA further
agrees to provide Green Lights City Partner with a copy of each report pro~uced by this program.
6_ EPAagrees to provide Green Lights City Partner with a comprehensive directory (updated semi-annually) of utility rebate programs in the U.S. In
addition, EPA agrees to provide a similarly updated directory of non-utility financing organizations (such as leasing companies and energy service
companies) that provide financing for energy.efficient lighting upgrades.
7. EPA agrees to operate informational hotlines for Green Lights City Partner to provide Green Lights City Partner with the most up-to-date information
available on energy-efficient lighting, implementation techniques, and the Green Lights Program.
C. Recognition. EPA agrees to provide Green Lights City Partner with recognition for its public service in protecting the environment by:
publishing articles and performing analyses about the pollution prevented by participants,
. organizing at least one major media event each year,
. publishing articles describing the Green Lights Program and organizations that have completed outstanding lighting upgrades, and
creating public service advertisements that raise awareness of the program as a whole.
D. Advertising. EPA agrees to work with Green Lights City Partners independently and/or in conjunction with other City Partners to develop advertisements publicizing
Green Lights City Partners' involvement in the Green Lights Program. Due to limited advertising space and varying audiences, EPA may, on occasion, work with selected
Green Lights City Partners to develop advertisements. Green Lights City Partners may be invited to participate in an advertisement on the basis of such criteria as size,
location, or other practical limitations.
IV. Use of EPA-Developed Materials
A EPA Materials. Both parties to this agreement agree that EPA.developed publications are a valuable tool in educating the public about the pollution-prevention benefits
of energy-efficient lighting and the Green Lights Program.
B. Green lights Logo. EPA agrees to permit Green Lightr City Partner to use the Green Lights Partner logo for use on non product-specific materials that will publicize
Green Lights City Partner's participation in the Green Lights Program. Green Lights City Partner agrees that appropriate use of the EPA Green Lights Program logo is
encouraged by EPA, but that such use does not constitute EPA's endorsement of Green Lights City Partner's policies or services.
C. aty Partners Who Are Affitiated With Utilities. Where Green Lights City Partner is affiliated with an electric utility that has also joined the Green lights Program as
an Ally, Green Lights City Partner agrees that it will use the Ally logo with the EPA disclaimer on any materials relating to its involvement in the sale of electricity and the
pnMs;on ofDSM senrices, and will conform with the Ally logo guidelines (sample available for review). Where Green Lights City Partner is affiliated with an electric utility
that has not joined Green Lights as an Ally, Green Lights City Partner agrees that it will not use the Green Lights City Partner logo on any materials relating to its involvement
in the sale of electricity and the provision of DSM services.
D_ EP A Materials. EP A agrees to provide to Green Lights City Partner, at City Partner's request, available camera-ready negatives, mechanicals, and other directly
reproducible material. from which Green Lights City Partner can create:
]. Green Lights brochures, Light Briefs, and video{ s)
2. Green Lights Program logo
3. Other Green Lights materials
Green Lights City Partner agrees to return to EPA the directly-reproducible material identified above within 30 days of receipt.
E. No Charge. EPA agrees not to charge Green Lights City Partner for such materials.
F. Reproduction of EPA Materials. Green Lights City Partner agrees to reproduce such EPA-developed materials faithfully, without altering their fonn. content, or
appeamnce in anyway, except, at Green Lights City Partner's option. to add the phrase "Distributed at no cost by [Green Lights City Partner], with pennission of EP A's Green
Ligbts Program.," as weU as Green Lights City Partner's own logo or seat, address, and phone number.
G. Recycled Paper. Green Lights City Partner agrees to use recycled paper for all of its reproductions of EPA-developed infonnational materials.
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H. Distribution. Green Lights City Partner agrees to distribute EPA-developed informational materials to Green Lights City Partner's employees and potential Green Lights
City Partners to promote and expand the use of energy-efficient lighting and membership in the Green Lights Program.
V. Criteria and Standards
A Each party to this agreement agrees to assume the good faith of the other party as a general principle for the Green Lights Program.
8. Both parties agree to notify each other if any problems arise and to work together to foster maximum public confidence in the Program. Either party can terminate this
agreement, without penalty, via 10 days' written notice to the other, and both will then cease to publicize Green Lights City Partner's participation in the Green Lights Program.
Reasons that could cause EPA to terminate this agreement with Green Lights City Partner include (but are not limited to):
. City Partner's failure to provide annual report(s),
. City Partner's failure to make adequate progress on Iightj,g upgrades, to the point where it is evident that City Partner will not be able to fulfill its
upgrade commitments as stated in this MOU, and
. City Partner's use of the Green Lights logo in an inappropriate manner.
Because public confidence in the credibility of Green Lights City Partners' achievements is so important, EPA will make a best-faith effort to assist Green Lights City Partner
in meeting all of the goals of this MOU.
C. Further, both parties agree that the commitment to survey buildings and complete lighting upgrades is contingent upon the availability to City Partner of
appropriated funds or third party financing resources.
D. Each party's commitments will be subject to any legal restrictions that may apply.
E. EPA agrees that information provided by Green Lights City Partner to EPA will be treated pursuant to BPA's public information regulations under 40 Code of
Federal Regulations, Part Two.
The undersigned hereby execute this Memorandum of Understanding on behalfoftheir parties. This Memorandum takes effect when signed by both parties.
For the U.S. Environmental Protection Agency (EPA):
Paul Stolpman, Dir~tor
Office of Atmospheric Programs
On:
For City of ChuJa Vista:
Name:
(Please Print)
Please return:
(1) the signed MOU in its entirety including appendices A & B, and (2) a camera-ready version of your city's logo or seal (EPA uses collages of logos in Green Lights
On:
Title:
brochures, newsletters and advertisements. Where a single city is being focussed on, that city is given the opportunity to review and approve the logo use.)
To: Chie( Green Lights Branch; US Environmental Protection Agency (62021); 401 M Street, SW; Washington, DC 20460.
Thank You. Welcome Aboard.
City PartDer Memorandum of Understanding 02195 (37072)
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Appendix A: City ofChuJa Vista. Please enclose the following information with the signed MOU:
Mayor/City Manager's Name:
Business Address:
Business Telephone Number:
Business Fax Number:
Please identify your Green Lights Implementation Director:
Mr./Ms. Title
Address
Phone Fax
Please identify your Green Lights Communications Director:
Mr ./Ms. Title
Address
Phone Fax
Approximate number of employees_Approximate number of facilities _
Approximate square footage:
Office IndustriallManufacturing
dormitories. etc.) _ Education
Other (please specifY)
Warehouses Parking Garages
Assembly (churches, auditoriums, etc.)
Retail
Laboratory
Food Sales & Service _ Lodging (hotels,
What is the first day of your city's next fiscal year?
Who referred you to the Green Lights ?
Appendb B: Defmitions
1. lighting includes all electrical and natural (daylight) lighting installations, including those found indoors and outdoors (facades, roadways, parking lots and garages,
security/safety lighting, signage, etc.).
2. Eligible Faci6ties includes: (1) all domestic facilities that Green Lights City Partner owns; (2) aU domestic facilities it currently leases from other parties under agreements
that expire more than five years after the date this agreement enters into force. Space that Green Lights City Partner leases under agreements tenninating sooner than five
years aftcrthe date this agreement enters into force are excluded from "eligible facilities;" and (3) all facilities where Green Lights City Partner is the majority or controlling
owner and that it currently leases 12 other parties (including facilities managed by property management finns). Facilities that the Green Lights City Partner reasonably
anticipates selling sooner than five years from the date this agreement enters into force are excluded from "eligible facilities." EP A encourages Green Lights City Partner to
include facilities outside the U.S. New leases, as lessor and lessee, are discussed under "New Construction."
3. Profitable. Due to the relatively low risk involved in installing energy-cfficient products and the tangible, but difficult to measure, benefits of enhanced quality, a project
is defined as "profitable" when it provides an annualized internal rate of return that is equal to or greater than twenty percentage points, with an analysis tenn of at least 10
years. Projects that maximize energy savings while providing internal rates of return higher than twenty percentage points (the typical Green Lights upgrade yields an IRR
of2040"4 post-tax) meet this criterion. EP A does not expect Green Lights partners to include measures within an upgrade project that are non cost-effective. EP A defines
a non cost..effective measure as any individual measure within an upgrade project that has an internal rate of return ofless than twelve percentage points. (Organizations
in financial distress may qualify for a different criterion.)
4. Ughting Quality. Green Lights City Partner and EPA agree that Green Lights City Partner shall make all detenninations affecting lighting quality and quantity. although
Green Lights City Partner may seek EP A's advice.
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5. No-Upgrade Facility. After completing lighting surveys on all eligible facilities, Green Lights City Partner need not upgrade those facilities that are identified as "no-
upgrade facilities" according to one of the following three criteria:
a Ifa facility's circumstances are such that, after a survey, no upgrade can be identified that would save energy while being profitable and meeting Green Lights City
Partner's lighting quality objectives, such a facility need not be upgraded. It has been the experience of Green Lights City Partners that such circumstances are rare.
b. In a facility that Green Lights City Partner leases from another party, the landlord must cooperate in the proposed installation program and in the division oCtinancial
benefits (e.g., by adjusting rents and/or other lease provisions) so that the upgrade project is profitable for Green Lights City Partner. It: following good.faith efforts
on the part of the Green Lights City Partner, the landlord declines to cooperate. Green Lights City Partner agrees to provide EP A with an opportunity to seek the landlord's
cooperation through an EPA presentation on the benefits of the Green Lights Program. If the landlord still declines to cooperate, then such a facility need not be
upgraded.
e. In a facility that Green Lights City Partner leases!Q other parties, the tenant(s) must cooperate in the proposed installation program and in the division of tin an cia I
benefits (e.g., by adjusting rents and/or other lease provisions) so that the upgrade project is protitable for Green Lights City Partner. It: following good-faith efforts
on the part of the Green Lights City Partner, the tenant(s) refuse(s) to cooperate, Green Lights City Partner agrees to provide EPA with an opportunity to seek the
tenant(s)'s cooperation through an EPA presentation on the benefits of the Green Lights Program. If the teoant(s) still decline(s) to cooperate, then such a facility need
oot be upgraded.
Appendix C: Green Lights publishes a monthly newsletter that gives news about events, new participants, media coverage, training opportunities, etc. We would be happy
to send copies to 20 people in your organization, in addition to the Green Lights Implementation and Communications Directors. Our current participants usually designate
as their 20 subscribers, managers and executives in: public affairs department, environment department, energy department, facilities management (regional managers or
managers of major facilities), real estate department, strategic planning department and corporate finance department. Please provide names and addresses below. Thank
you.
1.
2.
3.
4.
5.
6.
11.
16.
7.
12.
17.
8.
13.
18.
9.
14.
19.
10.
15.
20.
City Partner Memorandum of Understanding 02/95 (37072)
v1.0
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,
INSTRUCTIONS FOR GREEN LIGHTS IMPLEMENTATION REPORT
EP A is providing the following instructiollS to help you complete the Implementation Report form. EP A has
tried to develop as short aform as possible while still collecting the necessary information about your
lighting upgrade projects. The credibility of the Green Lights program depends on the extent to which
participants are able to accurately document energy savings. Each question on the form asks for valuable
information and can usually be answered from data collected during a typical lighting survey.
Please take ten minutes to read the following illStructions. For each Green Lights participant, EPA has
designated an Account Manager to provide assistance throughout the implementation process. If you have
any questiollS, please call your Account Manager. If you do not know how to contact your Account
Manager, please call the Green Lights Hotline at (202) 775-6650. Taking afew minutes to ensure that
each question is properly completed will save you time, allowing you to avoid future inquiries from Green
Lights representatives about your reports.
SECTION I. FACILITY INFORMATION
SECTION 7. PROJECT COSTS
Use the codes on the back of the form to defme 'Facility type."
Please include the telephone and telefax number of the facility
contact. "Total facility floorspace" represents the total square
footage of the facility. "Floorspace included in this report" asks
only for the square footage that the swvey and/or upgrade
covers. If you have questions about what square footage to
include. please contact your Account Manager. The report
fol'1ll will be rejected without .q..are footage infol'1llation.
Facilities are normally defmed as individual buildings. but you
can use divisions, campuses or other appropriate designations.
SECTIONS 2-3. FIXTURE INFORMATION
Please provide information for each fixture type in your project.
Use additional pages if you have more than eight fixture types.
Asterisk columns in section 2 and 3 require codes listed on the
back of the report form. These codes must be used in order for a
report to be accepted by EPA. Wattage per fixture represents
the system wattage, so ballast loss needs to be incorporated.
Also, please include operating hours (out ofa maximum of 8760
hours/year) for each fixture type. Providing this information
helps EP A verifY energy savings. If II cel'ttlin IIJ'ptkation is "ot
provided ill II code, p/etue explilin in Section 6.
SECTIONS 4-5. CONTROlS
Sections 4 and 5 ask for the quantity and type(s) of controls
used. Please use codes listed 011 back of the report form.
SECTION 6. COMMENTS
Please include any comments regarding your project that may
help EP A better understand your report.
Indicate the pre-rebate total cost of completing the lighting
upgrade project. IdentitY all rebates or grants received for the
project. The net project cost should equal the total project cost
minus any rebates or grants received.
SECTION 8. LIGHTING SAVINGS
This is a critically important section of the report. It is a..cwt
to verify each cak..liItion ill )'o..r proceed, .ince each
q..emon is .....ally dependent on the one preceding it. The
equations on page 2 of these instructions are provided with
examples to help you with each computation. If you have any
questions. please call your Account Manager or the Green Lights
Hotline at (202) 775-6650.
SECTION9. IMPLEMENTATION METHODS
Please use the codes on the back of the report form to answer
questions concerning implementation methods.
SECTION 10. SIGNATURE
Sign your name and send the form to the following address:
Maria Theesen
US.EP A 6202J
401 M. 5t. 5W
Washington, DC 20460
(202) 233-9569 FAX
~!5'// cg>},5
,
J.,
'.
SAMPLE CALCULATIONS FOR SECTION 8 (LIGHTING SAVINGS)
z. L1GIITING FIXTURES BEFORE UPGRADE 'use cod.. on back 3. LIGHTING FIXTURES AFTER UPGRADE "us. codes on back)
,..... '.....I~ ..... ......., ~~ Lorn'" Wattqc Li&htillc u~ ~~ !~, ;~ Lorn, Lorn", ~.' Lorn'" w__ ""'... .
" . w..;... ';,m", BaJlut -- Fixture hOunlvcv Walt3-"e ';,m", "'u' Fi.xture hounlve
14 5 159 40 4 80 Z 190 4000 114 14 5 54 32 2 83 2 62 3500
A I B E C D F
(1) Lighting Load Reduced: (Decrease in electrical demand expressed in kW).
How to calculate: [(A x B) - (C x D) ] /1000
[(5xI90) - (5 x 62)] /1000 = 0.64 kW
NOTE: Calculated values need to be summed over AI! fixture types to arrive at tQW savings.
(2) Electricity Reduction: (Decrease in electrical consumption expressed in kWhlyr).
H9W to calculate: [(A x B x E) - (C x D x F)] /1000
[(5 x 190 x 4000) - (5 x 62 x 3500)] 11000 - 2,715 kWhlyr
(3) % Lighting Savings: (Overall reduction in lighting energy consumption. expressed as apercentage).
How to calculate: [(Electricity reduction (#2 above) x 1000) / (A x B x E)] x 100
[(2,715 x 1000) / (5 x 190 x 4000)] x 100 -71%
(4) Energy Cost Savings: (Energy savings expressed in dollars).
How to calculate: Electricity reduction (#2 above) x $/kWh
2,715 x $0.075 = S204
NOTE: S/kWh = what you pay for each kWh. Average kWh rate or a rate that incorporates both demand
and usage may be used (the latter will be more accurate).
(5) Internal Rate ofRetum: lRR is a more advanced from of payback that includes various costs and benefits (i.e.
maintenance, taxes, inflation) over a specified time period, usually the useful life of the lighting system (15 to
20 years). It can be calculated using the lRR function found in most spreadsheet programs. The Green Lights
Decision Support System and ProjectKalc software tools also perform this function. Both are available from
the Green Lights Hotline at (202) 775-6650. Please do not leave this section blank. If you are unable to
calculate IRR, please contact your Account Manager for assistance.
NOTE: ReportKalc is also an available option for reporting your Green Lights progress. Contact your
Account Manager to ask about this exciting software product.
- fr. /#- 9" -/ ~
4'
RESOLUTION NO. / ?'/t!? .J
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY AND THE UNITED
STATES ENVIRONMENTAL PROTECTION AGENCY TO
ESTABLISH A VOLUNTARY AGREEMENT BY WHICH THE
CITY JOINTS EPA'S GREEN LIGHTS PROGRAM
WHEREAS, EPA's Green Lights is a voluntary program which
reduces pollution by encouraging organizations across the country
to install profitable lighting upgrade projects that (1) maximize
energy savings and (2) maintain or improve lighting quality; and
WHEREAS, more than 1,600 corporations, hospitals,
schools, utilities, and state and local governments have signed the
agreements with EPA; and
WHEREAS, the City has been asked to join the Green Lights
Program to reduce its energy use; and
WHEREAS, the agreement can be terminated by the City
without penalties or liability to the City and there are ~o
technologies prescribed in the program.
NOW, THEREFORE, BE IT RESOLVED the City Council of the
city of Chula vista does hereby approve a Memorandum of Under-
standing between the City and the United States Environmental
Protection Agency to establish a voluntary agreement by which the
City joins EPA's Green Lights Program, a copy of which is on file
in the office of the city Clerk as Document No.
Presented by
Approved as to form by
Barbara Bamberger, Environmental
Resource Manager
Bruce M. Boogaard, city
Attorney
C:\rs\greenlit,epa
8'13 I~ -/f- '6-/7
I
L(d
COUNCIL AGENDA STATEMENT
Item~
Meeting DatelI/14/95
Resolution / fJ/tPf Accepting bids and awarding landscape maintenance
contracts for Open Space Districts
SUBMITTED BY: Director of Parks and R~a~i~
REVIEWED BY: City ManageJ~ ~~1 (4/5ths Vote: Yes_NolO
Request for bids to provide landscape main~ance ~rvices for Open Space District 20 SPA I Phase
6 and Bayfront Trolley Station were let on August 9, 1995, and received on August 31, 1995. In
addition, requests for bids to provide landscape maintenance services for Open space District 20 SPA
II and Open Space District 31 were let on and received on October 11, 1995. These areas went out
to bid because of new areas developed in existing District 20 (Rancho Del Rey), the formulation of
a new District 31 (Telegraph Canyon Estates) and the existing contract for Bayfront Trolley was
expiring.
ITEM TITLE:
RECOMMENDATION: That the City Council adopt the resolution and accept bids and award the
contracts to the following low bidders:
DISTRICT CONTRACTOR AMOUNT
District 20 SPA I Phase 6 RC's Landscape Maintenance $35,000.00
Bayfront Trolley Station RC's Landscape Maintenance $11,400.00
District 20 SPA II and District 31 New Way Landscape $61,524.00
BOARDS/COMMISSIONS RECOMMENDATION: Not Applicable
DISCUSSION: Sealed bids were received by the City's Purchasing Agent on August 31, 1995 to
provide landscape maintenance for Open Space District 20 SPA I Phase 6 and Bayfront Trolley
Station. Following the formal publication of the Notice to Bidders, 38 landscape maintenance
companies were notified. A total of 5 contractors attended the pre-bid conferences and tours
conducted on August 9, 1995. A total of 5 companies submitted bids. Four of the five companies
had either performed or are now performing landscape maintenance for the City. The proposals
submitted reflect a competitive bidding process. Chart A is a summary of the bids submitted for
Open Space District 20 SPA I Phase 6.
CHART A OPEN SPACE DISTRICT 20 SPA I PHASE 6
. CONTRACTOR BID AMOUNT
RC's Landscape Services $35,000.00
New Way Landscape $37,722.00
Alvezia Landscape $48,313.63
Blue Skies Landscape $60,960.60
Acacia $89,000.00
[NE'IWORK:JF-al13-0SCNTRCT.A13-November8. 1995]
1
9-/
Ll3
Meeting Date: 11/14/95
Chart B is a summary of the bids submitted for the landscape maintenance of the Bayfront Trolley
Station.
CHART B BAYFRONT TROLLEY STATION
CONTRACTOR BID AMOUNT
RC's Landscape $11,400.00
Acacia Landscape $11,880.00
Alvezia Landscape $15,681.60
New Way Landscape $17,700.00
Blue Skies Landscape $21,624.00
The low bid for both Open Space District 20 SPA I Phase 6 and Bayfront Trolley Station was
submitted by RC's Landscape Maintenance, who is the current contractor performing landscape
maintenance in Contract Clusters (Open Space Districts) 1,5,9,10; and 2,6,7,17,23,26; and 18,
and has performed in a satisfactory fashion.
In addition, RC's Landscape Maintenance has been maintaining the Bayfront Trolley Station in the
previous contract term at a contract price of $15,370.00. The bid submitted is 25% less than the
previous contract price by the same firm. It is the opinion of staff that the contract low bid is fair
and reasonable and should be accepted. Staff recommends that Open Space District 20 SPA I Phase
6 and the Bayfront Trolley Station be awarded to RC's Landscape Maintenance for the yearly
amounts of $35,000.00 and $11,400.00 respectively. The terms of this agreement is for a one-year
contract and two one-year options. Options are contingent on the City satisfaction with the level
of service and the new contract price is based on the annual C.P.I. The option years have been
shortened to coincide with when the District's existing contract comes to terms. In having the
contracts come to term simultaneously, they can then be re-bid as a single large contract hopefully
benefitting the District in economy of scale. Having all the contract clusters come to term
simultaneously allows staff the greater flexibility of reformulating the clusters into more attractive
bidding packages by grouping new areas with the existing districts. This strategy of cluster formation
was initiated by staff in 1993, and resulted in the lowering of maintenance costs for 16 out of 18
Districts (89%).
Furthermore, sealed bids were received by the City's Purchasing Agent on October 11, 1995 to
provide landscape maintenance for Open Space District 20 and Open Space District 31. Following
the formal publication of the Notice to Bidders, 61 landscape maintenance companies were notified.
A total of 5 contractors attended the pre-bid conferences and tours conducted September 19, 1995
and a total of 5 companies submitted bids. Two of the five companies had at one time or are now
performing landscape maintenance for the City. The proposals submitted are summarized in Chart
C.
CHART C BIDS FOR OPEN SPACE DISTRICT 20 SPA II AND DISTRICT 31
CONTRACTOR BID AMOUNTS OSD 31 BID AMOUNTS OSD 20 SPA II
New Way Landscape $28,920.00 $61,524.00
[NElWORK:JF-al13..oSCNfRCf A13-November 8, 1995}
2
1-,2
ij'r ,I
'-t
Meeting Date: 11/14/95
Alvezia Landscape $30,434.00 $84,713.48
Tropical $132,000.00 $240,700.00
Acacia $54,060.00 $73,900.00
Mentone $130,862.67 $272,502.00
After the bids were received they were evaluated and a significant price difference between the other
bidders was noted. Staff questioned whether the bid amount was adequate to sufficiently meet the
specifications called out in the contract.
This issue was discussed with New Way Landscape. They reported to staff that they would re-
evaluate the maintenance areas and the bid. On October 20, 1995, the President of New Way
Landscape contacted the Department and reconfirmed they were confident of their ability to
perform the job. New Way Landscape is presently and has in the past maintained landscapes for
the City, staff feels that New Way Landscape has an understanding of the terms and the
performance specifications and expectations of the City's contract. New Way Landscape presently
performs the maintenance on Contract Clusters (Open Space Districts) 3, 4, and 8, and previously,
performed the maintenance on EastLake Landscape Maintenance District. In addition, this company
maintained other City medians in non-open space districts in a satisfactory fashion.
Finally, New Way Landscape also maintains two major projects in the vicinity, the EastLake Home
Owners Association and the Chula Vista Recreational Vehicle Park at the Marina. Economies of
scale often factor into bid prices. Companies which perform work in the area consistently submit
lower bids than companies which perform no work in the South Bay area. Staff is optimistic that
New Way Landscape will staff this landscaping work adequately to provide acceptable maintenance
for these Districts. It is the recommendation of staff that New Way Landscape be awarded the
contracts for Open Space District 20 SPA II and Open Space District 31.
If New Way Landscape is unable to satisfactorily perform the maintenance specifications, the City
can provide a thirty (30) day notice and terminate agreement. A new RFP would be solicited from
other interested landscape firms. In the interim, a month to month contract would be solicited from
one of the existing contractors doing other Open Space work.
FISCAL IMPACT: All City staff cost to administer and supervise contracts are borne by the
respective assessment districts.
[NETWORK:JF-a113-0SCNfRCf.A13.November 8, 1995]
3
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LII,
RESOLUTION NO.
;sr/t1f
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ACCEPTING BIDS AND AWARDING
LANDSCAPE MAINTENANCE CONTRACTS FOR OPEN SPACE
DISTRICTS
WHEREAS, the following five bids were received by the
City's Purchasing Agent on August 31, 1995 to provide landscape
maintenance for Open Space District 20 SPA I Phase 6 and Bayfront
Trolley station:
OPEN SPACE DISTRICT 20 SPA I PHASE 6
CONTRACTOR BID AMOUNT
R C's Landscape Services $35,000.00
New Way Landscape $37,722.00
Alvezia Landscape $48,313.63
Blue Skies Landscape $60,960.60
Acacia $89,000.00
BAYFRONT TROLLEY STATION
CONTRACTOR BID AMOUNT
R C's Landscape $11,400.00
Acacia Landscape $11,880.00
Alvezia Landscape $15,681.60
New Way Landscape $17,700.00
Blue Skies Landscape $21,624.00
WHEREAS, the low bid for both Open Space District 20 SPA
I Phase 6 and Bayfront Trolley station was submitted by R C's
Landscape Maintenance who is the current contractor performing
landscape maintenance in Contract Clusters (Open Space Districts)
1,5,9, 10; and 2, 6,7, 17,23,26; and 18, and presently
performing satisfactory work and staff recommends that the contract
be awarded to R C's Landscape Maintenance for the yearly amounts of
$35,000.00 and $11,400.00 respectively; and
9- J.f
WHEREAS, the following five bids were received by the
city's Purchasing Agent on October 11, 1995 to provide landscape
maintenance for Open Space District 20 SPA II and Open Space
District 31:
BIDS FOR OPEN SPACE DISTRICT 20 SPA II AND DISTRICT 31
CONTRACTOR BID AMOUNTS OSD 31 BID AMOUNTS OSD 20 SPA II
New Way $28,920.00 $61,524.00
Landscape
Alvezia $30,434.00 $84,713.48
Landscape
Tropical $132,000.00 $240,700.00
Acacia $54,060.00 $73,900.00
Mentone $130,862.67 $272,502.00
WHEREAS, the low bid for Open Space District 20 SPA II
and District 31 was submitted by New Way Landscape who is presently
and has in the past maintained landscapes for the City and staff
feels that New Way Landscape has an understanding of the terms and
the performance specifications and expectation of the city's
contract and recommends that they be awarded the contract for Open
space District 20 SPA II and Open Space District 31 for the yearly
amounts of $28,920.00 and $32,604.00 respectively.
NOW, THEREFORE, BE IT RESOLVED the City council of the
City of Chula vista does hereby accept bids and award landscape
maintenance contracts for Open Space Districts as follows:
DISTRICT CONTRACTOR AMOUNT
District 20 SPA I Phase R C's Landscape $35,000.00
6 Maintenance
Bayfront Trolley R C's Landscape $11,400.00
station Maintenance
District 20 SPA II and New Way Landscape $61,524.00
District 31
Presented by
Lee M.
Attorney
Jess Valenzuela, Director of
Parks and Recreation
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COUNCIL AGENDA STATEMENT
Item ;0
Meeting Date 11/14/95
ITEM TITLE: A. Resolution /8'IClf approving a Congestion Mitigation and Air
Quality "CMAQ" Program Supplement between the City of Chula Vista
and Caltrans for Federal-Aid funding to design an Adaptive Traffic
Control Signal System.
[J. Resolution / ~ / IJ ~ Approving Agreement with DKS Associates
for a Traffic Signal System Upgrade Technical Design Study (CIP-
TF237), authorizing the Mayor to execute the Agreement, and
appropriating funds therefor.
SUBMITTED BY: Director of Public wor*
REVIEWED BY: City Manage~~ ~~ (4/5ths Vote: YesXNo-->
The City of Chula Vista has received State approval to utilize federal funds under the Federal
Intermodal Surface Transportation Efficiency Act (IS TEA), Congestion Mitigation Air Quality
(CMAQ) program to upgrade the city's traffic control system to a state of the art flexible
timing "Adaptive Urban Traffic Control" system for the first phase of a three phase project.
This project is identified in the city's FY95/96 Capital Improvement Program (CIP) budget as
TF237 - Traffic Signal System Upgrade and is also shown in the 1995 San Diego Regional
Transportation Improvement Program as Federal Aid Project # 11-5203. Program Supplement
Agreement No. 008 between the City and the State will assure State reimbursement to the City
for all costs associated with the traffic signal design study upon notice from the State that they
have executed the reimbursement agreement.
On June 8, 1995 the Director of Public Works received proposals from six transportation
consulting firms to perform the traffic signal system design study to determine the merits of
upgrading the City's "fixed" coordinated timing signal system to a more real time responsive
("adaptive") coordinated timing signal system. In accordance with Council Policy, a City
Manager's Consultant Selection Committee (Committee), after evaluating the proposals and
interviewing four firms, selected DKS Associates as the most qualified firm to perform the
traffic signal upgrade design study. When the State executes this agreement (approval is a
formality and is expected to occur within 30 days), the consultant will be given notice to proceed
as so stipulated in the consultant agreement.
RECOMMENDATION: That Council: 1) approve the resolution approving Program
Supplement to Local Agency-State Agreement for Federal-Aid Projects No. 11-5203 between
the City of Chula Vista and State of California Department of Transportation for Phase 1 of
the City's Congestion Mitigation and Air Quality (CMAQ) "Adaptive Urban Traffic Control"
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Page 2, Item /0
Meeting Date 11-14-95
system project, and authorize the Mayor to execute the supplement; 2) approve the resolution
approving an agreement between the City and DKS Associates to perform a Traffic Signal
System Upgrade Design Study (TF-237), authorize the Mayor to execute said agreement; and
appropriating Traffic Signal Funds in the amount of $200,000 to cover the cost of the project.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION: The City's current traffic control system, referred to as an Urban Traffic
Control " UTC" system (JRK. series 2000), controls and monitors 128 traffic signals.
Coordination of traffic signals are implemented in this system by running "fixed cycle" signal
timing plans at different times of the day and different days of the week. The "fixed cycle"
timing plans are based on pre-determined peak traffic volumes taken during different times of
the day or week. The timing plans assume that the same traffic volume patterns will remain
fixed during these pre-determined time periods. This system is, thus, limited in its ability to
adapt and respond automatically to variations in peak hour volumes and the times these
variations occur, particularly when considering future traffic demands that will be placed on
the City's circulation system as a result of expected future growth.
The proposed adaptive traffic control is a dynamic system that uses real time, electronically
collected, traffic volume data. The adaptive traffic control system continuously measures
traffic demands on all approaches to signalized intersections and transmits this information to
a master controller which, in turn, electronically adjusts the timing of affected signals. The
timing and coordination of traffic signals is performed continuously, thereby responding to ever
changing traffic flow conditions. The adaptive traffic control system is considered to be the
state of the art in coordinating and optimizing the sequence of timing traffic signal system
networks.
The cost to implement this new state of the art traffic control system is being made available
to the City of Chula Vista under the Federal Intermodal Surface Transportation Efficiency Act
ISTEA), Congestion Management and Air Quality (CMAQ) program through the State and our
regions transportation agency, SANDAG.
Implementation of the new traffic (adaptive) control system is planned to take place in three
stages over a three to five year period for a total cost of approximately $2,000,000.
Phase 1
Phase one ($200,000), is a system design study. This phase of the project will provide
a listing and specifications of the computer software and hardware required.
Additionally this phase will provide construction drawings for modifying appoximately
10 adjacent signalized intersections. The supplemental agreement, the subject of this
report, requires Council approval before funds in the amount of $200,000 can be
released for payment to the consultant engaged to perform the Phase one of the signal
upgrade project. This phase of the project has been designated as Federal-Aid Projects
No. 11-5203. Execution of the attached Program Supplement is a Federal requirement
for the expenditure of the $200,000 grant.
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Meeting Date 11-14-95
Phase 2
Phase two consists of the purchase of traffic control equipment and software and the
installation of vehicle detection and signal modifications at ten locations.
Approximately $700,000 of CMAQ funding will be needed to implement this phase of
the project. The city's request for CMAQ funding from the 1996 appropriation for this
phase has received regional approval from SANDAG. This phase appears in the FY
1996 regional transportation program as amendment number 5. The requested $700,000
of CMAQ funds are expected to be available at the conclusion of phase I subject to
final federal approval.
Phase 3
Phase three consists of the installation of vehicle detectors and signal modifications at
80 to 100 locations. The cost to implement this last phase is estimated to be
$1,100,000. The City's request for additional CMAQ funding from the 1997 FY
program for phase three has received tacit approval from the San Diego Traffic
Engineering Council (SANTEC), a SANDAG standing committee. SANTEC is
charged with the responsibility of reviewing CMAQ candidate projects applications
from jurisdictions throughout the region and recommending to the SANDAG board of
directors which projects should receive CMAQ funding.
Acceptance of Federal Funds
Acceptance of Federal CMAQ funds to conduct a design study (Phase 1) according to the State
Program Supplement Agreement, does not commit the City to proceed with implementation of
the upgrade proposed project, Phase 2 and or 3. Phase 1 is a stand alone study which will
provide a blue print for upgrading the City's existing signal system. Although the City has
received Federal approval to proceed with Phase I, there is no obligation to the City to proceed
with Phase 2 or 3 at City expense, if Federal funds do not become available in the future.
Consultant Selection
Subsequent to SANDAG and Federal approval of the City's project, a Request for Proposals to
perform a traffic signal system design upgrade study was sent to 32 transportation consulting
firms. It was determined that City staff did not possess the necessary expertise, experience, or
staffing level to conduct the traffic signal system up grade study in house. After a thirty day
time certain closing date period, staff received six proposals. The six proposals were evaluated
by the Manager's Consultant Selection Committee. Members of the Committee were: Hal
Rosenberg, Traffic Engineer; Cecil Chau, Signal System Engineer; Duncan Hughes, Associate
Traffic Engineer for the City of San Diego; and Edward Krolikowski, City Traffic Engineer for
the City of EI Cajon. The Committee evaluated the proposals for completeness, cost,
qualifications of personnel, understanding of the project, experience with traffic signal operations
and knowledge of computer signal system applications. The Committee, after evaluating the
proposals, interviewed the four highest ranked consulting firms:
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Page 4, Item / [)
Meeting Date 11-14-95
Consultant Cost Proposal
DKS Associates(') - Irvine, CA $169,890(2)
$169,000(3)
Darnell & Associates(l) - San Diego, CA $169,018
KOA/NET/BRW(l) - San Diego, CA $172,984
JHK(') - San Diego, CA $186,168
UMA - Irvine, CA $192,517
Frederick R. Harris - San Diego $193,306
(I) _ Four highest rank firms
(2) _ Original Cost Proposal
(3) _ Negotiated Cost
Based on the submitted proposals, and taking in consideration costs, system design proposal, and
the results of the interview process, the Committee selected DKS Associates as the best firm.
DKS had, by far, the most hands on experience with adaptive traffic control systems and a
strong team of individuals who have a good reputation for their expertise in this field. They
demonstrated a more thorough knowledge of the City's existing system and understanding of our
objectives in comparison with the other consultants. All of the other proposers had weaknesses
in various areas such as experience with adaptive systems or personnel and staffing depth. Some
of the other consultants made weak proposals and/or presentations that appeared to indicate a
lack of ability to meet the City's needs. Therefore, regardless of the cost, DKS was top ranked
and would have been selected for an agreement. However, staff negotiated with them for a
more acceptable price as part of the contract negotiations.
Scope of Consultant Agreement
The attached DKS traffic signal system upgrade contract being considered by Council includes
six tasks to be completed over an eight month period. Assuming work commences by December
1995, the design study would be completed in July 1996. The following is a summary of the
tasks and deliverables required of the contract.
Task I:
Evaluation of alternative traffic control systems
A complete report of the review and analysis of the existing system and related
infrastructure, alternative adaptive control systems and their pros and cons
relative to the City's needs, and a financial plan relative to the phasing of the
system implementation will be prepared and will be the product of this first task.
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Page 5, Item ItJ
Meeting Date 11-14-95
Task 2:
Prepare hardware and software technical specifications
Functional and technical specifications for a new adaptive traffic control system
will be the product of this task.
Task 3:
Communication system recommendation
A technical report on the recommended communication system tailored to the
City's existing signal system architecture will be the product of this task.
Task 4:
Prepare plans, specifications and estimates (PS&E) for Phase 2
The products of this task will be:
. PS&E plans for the necessary traffic signal, vehicle detection system, and
field/intersection modifications
. Contract documents for bidding of Phase 2 of the adaptive traffic control
system.
Field construction drawings, specifications and cost estimates for vehicle
detection modifications necessary to implement the recommended adaptive traffic
control system.
Task 5:
Communications PS&E (optional)
Depending on the communication system recommended and accepted by staff in
Task 3, DKS will provide PS&E of the selected communication design.
Task 6:
Assist City staff in contractor selection and negotiations for Phase 2
Contractor selection criteria and a list of questions will be the product of this
task.
Agreement
The agreement with DKS Associates uses the City's standard two-party agreement. Under this
contract, DKS Associates agrees to perform the Scope of Work as outlined in Exhibit A for a
single fixed fee of $169,000. Engineering staff has worked closely with the City Attorney's
office to formulate the proposed agreement. The agreement stipulates that the consultant shall
not proceed with the project until they receive written notification from the City Engineer which
shall occur when the City receives confirmation from the State that the payment service
agreement (State program supplement authorizing reimbursement for services) has been
executed.
The final negotiated fee of $169,000 is the lowest fee offered by the six consulting firms
competing for the City's contract.
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Page 6, Item If)
Meeting Date 11-14-95
Appropriation:
Since the CMAQ grant will only be available on a reimbursement basis, funds need to be
appropriated from the Traffic Signal Fee Fund to cover the actual expenditures until the
reimbursement is received. As indicated by the existing appropriation of Traffic Signal funds,
this is a legitimate use of those funds. The grant will enable the City to undertake a betterment
project that we would not otherwise be able to do with our limited Traffic Signal funding. The
amount that needs to be appropriated is $200,000.
FISCAL IMPACT:
Funding in the amount of $200,000 for evaluation and design of a Chula Vista Adaptive Traffic
Control System (Phase 1) will be provided by Caltrans under the CMAQ Federal Grant program.
Phase 1 is identified in the FY 1995-96 CIP budget as TF237 - Traffic Signal System Upgrade.
The work required of this project will be performed by DKS Associates consulting firm under
the direction of traffic engineering staff. All associated staff time and consultant services will
be charged against the project and reimbursed by the State under the provisions of the CMAQ
federal grant.
Since this is a fixed fee contract, there will be no additional costs unless the City determines that
additional work is required. In that case, staff would evaluate the amount of funding available
for the desired additional work and make a recommendation accordingly. In the unlikely event
there is a cost over-run, the City would have to pay those costs in excess of the grant. The CIP
budget included $30,000 in Traffic Signal Funds as a contingency anticipating that staff time
would not be eligible for reimbursement and/or the consulting contract amount would not leave
sufficient funds to cover staff time. CalTrans subsequently advised us that staff time is eligible
for reimbursement.
The Traffic Signal Fund will loose a minor amount of interest based on the difference in time
between when payments are made on the project and reimbursement funds are received. The
actual amount of this loss is unknown, although minor, since we anticipate reimbursement will
be between two and three months of when payments are made.
File: 0735-10 TF237 BN-003
m: Ihome lengineerlagendalcmaq&dks.cls
ItJ-~
RESOLUTION NO.
131~/
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A CONGESTION MITIGATION
AND AIR QUALITY "CMAQ" PROGRAM SUPPLEMENT
BETWEEN THE CITY OF CHULA VISTA AND CALTRANS
FOR FEDERAL-AID FUNDING TO DESIGN AN ADAPTIVE
TRAFFIC CONTROL SIGNAL SYSTEM
WHEREAS, the City of Chula vista has received State
approval to utilize federal funds under the Federal Intermodal
Surface Transportation Efficiency Act (ISTEA), Congestion
Mitigation Air Quality (CMAQ) program to upgrade the city's traffic
control system to a state of the art flexible timing "Adaptive
Urban Traffic control" system in three phases over a three to five
year period; and
WHEREAS, the availability of Federal Grant "CMAQ'
(Congestion Management Air Quality) funds provide an opportunity
for the City to obtain a more efficient system capable of altering
the timing of individual or groups of traffic signals,
automatically and continuously, to accountd in changes in traffic
flow patterns; and
WHEREAS, this dynamic traffic control system is capable
of reducing congestion and delays, but most importantly, improving
air quality; and
WHEREAS,
Improvement program
Upgrade.
this project is included in the Capital
(CIP) budget as TF237 - Traffic Signal System
NOW, THEREFORE, BE IT RESOLVED the City Council of the
City of Chula vista does hereby approve a Congestion Mitigation and
Air Quality "CMAQA" Program Supplement between the City of Chula
vista and Caltrans for Federal-Aid funding to design an Adaptive
Traffic Control Signal System.
Presented by
Approved as to form by
John P. Lippitt, Director of
Public Works
Bruce M. Boogaard, City
Attorney
C:\rs\adaptive,sig
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RESOLUTION NO. /<1)/0(,
.,
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING AGREEMENT WITH DKS
ASSOCIATES FOR A TRAFFIC SIGNAL SYSTEM UPGRADE
TECHNICAL DESIGN STUDY (CIP-TF237),
AUTHORIZING THE MAYOR TO EXECUTE THE
AGREEMENT, AND APPROPRIATING FUNDS THEREFOR
WHEREAS, on June 8, 1995 the Director of Public Works
received proposals from six transportation consulting firms to
perform the traffic signal system design study to determine the
merits of upgrading the City's "fixed" coordinated timing signal
system to a more real time responsive ("adaptive") coordinated
timing signal system; and
WHEREAS, in accordance with Council Policy, a City
Manager's Consultant Selection Committee (Committee), after
evaluating the proposals and interviewing four firms, selected DKS
Associates as the most qualified firm to perform the traffic signal
upgrade design study; and
WHEREAS, when the State executes this agreement (approval
is a formality and is expected to occur within 30 days), the
consultant will be given notice to proceed as so stipulated in the
consultant agreement.
NOW, THEREFORE, BE IT RESOLVED the City Council of the
city of Chula vista does hereby approve agreement with OKS
Associates for a Traffic Signal system Upgrade Technical Design
Study (CIP-TF237), a copy of which is on file in the office of the
City Clerk as Document No.
BE IT FURTHER RESOLVED that the Mayor of the City of
Chula vista is hereby authorized and directed to execute said
Agreement for and on behalf of the City of Chula vista.
BE IT FURTHER RESOLVED that the amount of $200,000 is
hereby appropriated as a loan from the Traffic Signal Fee Fund to
cover the actual expenditures until the reimbursement is received
and since the grant will not pay interest costs, the loan will be
an interest free loan with the Traffic signal Fund foregoing a lost
revenue during the interim period.
Presented by
John P. Lippitt, Director of
Public Works
c: \rs\cuq
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File No. 0735-IO-TF237-BN003
Agreement between
City of Chula Vista
and
DKS Associates
for an Adaptive Traffic Signal Upgrade
Technical Design Study
This Agreement, made and entered into this day of 199-,
in the City of Chula Vista, County of San Diego, State of California, is by and between the
City of Chula Vista (City), a municipal Chartered corporation of the State of California,
through its duly elected or appointed, qualified and acting Deputy Public Works Director/City
Engineer (Administrator), and DKS Associates (Consultant), a Corporation, whose place of
business and telephone numbers are set forth on Exhibit A. Paragraph 6.
This Agreement, dated for the purposes of reference only, and effective as of the date
last executed unless another date is otherwise specified in Exhibit A, Paragraph I is made with
reference to the following facts:
Recitals
Whereas, the City of Chula Vista has advertised for Request for Proposals for a consultant to
develop Functional and Technical Specifications for upgrading, the City's "Urban Traffic
Control" system to an "Adaptive Traffic" control system. Federal-Aid "Congestion Mitigation
and Air Quality (CMAQ) Program.
Whereas, after having received and reviewed Proposals from six (6) licensed firms, qualified
to provide such services, the City of Chula Vista has chosen, DKS Associates as the most
qualified and desirable firm with which to enter into agreement with to fulfill the requirements
of this contract; and,
Whereas, the Consultant warrants and represents that they are experienced and staffed in a
manner such that they are and can prepare and deliver the products and services required of
Consultant to City within the time frames herein provided all in accordance with the terms and
conditions of this Agreement;
NOW, THEREFORE, BE IT RESOLVED that the Administrator and the Consultant do hereby
mutually agree that the Consultant for and in consideration of the covenants, conditions,
agreements, and stipulations of the Administrator herein expressed, does hereby agree to
furnish to the Administrator services and materials, as follows:
1. Consultant's Duties
A. General Duties
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Consultant shall perform all of the services described on the attached Exhibit A,
Paragraph 7, entitled "General Duties"; and,
B. Scope of Work and Schedule
In the process of performing and delivering said "General. Duties", Consultant shall also
perform all of the services described in Exhibit A, Paragraph 8, entitled " Scope of Work and
Schedule", not inconsistent with the General Duties, according to, and within the time frames
set forth in Exhibit A, Paragraph 8, and deliver to City such Deliverables as are identified in
Exhibit A, Paragraph 8, within the time frames set forth therein, time being of the essence of
this agreement. The General Duties and the work and deliverables required in the Scope of
Work and Schedule shall be herein referred to as the "Defmed Services". Failure to complete
the Defmed Services by the times indicated does not, except at the option of the City, operate
to terminate this Agreement.
C. Reductions in Scope of Work
City may independently, or upon request from Consultant, from time to time reduce the
Defined Services to be performed by the Consultant under this Agreement. Upon doing so,
City and Consultant agree to meet in good faith and confer for the purpose of negotiating a
corresponding reduction in the compensation associated with said reduction.
D. Additional Services
In addition to performing the Defined Services herein set forth, City may require
Consultant to perform additional consulting services related to the Defmed Services
("Additional Services"), and upon doing so in writing, if they are within the scope of services
offered by Consultant, Consultant shall perform same on a time and materials basis at the rates
set forth in the "Rate Schedule" in Exhibit A, Paragraph II (C), unless a separate fixed fee is
otherwise agreed upon. All compensation for Additional Services shall be paid monthly as
billed.
E. Standard of Care
Consultant, in performing any Services under this agreement, whether Defined Services
or Additional Services, shall perform in a manner consistent with that level of care and skill
ordinarily exercised by members of the profession currently practicing under similar conditions
and in similar locations.
F. Insurance
Consultant represents that it and its agents, staff and sub consultants employed by it in
connection with the Services required to be rendered, are protected against the risk of loss by
the following insurance coverages, in the following categories, and to the limits specified,
policies of which are issued by Insurance Companies that have a Best's Rating of "A, Class
V" or better, or shall meet with the approval of the City:
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Statutory Worker's Compensation Insurance and Employer's Liability Insurance
coverage in the amount set forth in the attached Exhibit A, Paragraph 9.
Commercial General Liability Insurance including Business Automobile Insurance
coverage in the amount set forth in Exhibit A, Paragraph 9, combined single limit applied
separately to each project away from premises owned or rented by Consultant, which names
City and Applicant as an Additional Insured, and which is primary to any policy which the
City may otherwise carry ("Primary Coverage"), and which treats the employees of the City
and Applicant in the same manner as members of the general public ("Cross-liability
Coverage").
Errors and Omissions insurance, in the amount set forth in Exhibit A, Paragraph 9,
unless Errors and Omissions coverage is included in the General Liability policy.
G. Proof of Insurance Coverage.
(I) Certificates of Insurance.
Consultant shall demonstrate proof of coverage herein required, prior to the
commencement of services required under this Agreement, by delivery of Certificates of
Insurance demonstrating same, and further indicating that the policies may not be canceled
without at least thirty (30) days written notice to the Additional Insured.
(2) Policy Endorsements Required.
In order to demonstrate the Additional Insured Coverage, Primary Coverage and
Cross-liability Coverage required under Consultant's Commercial General Liability Insurance
Policy, Consultant shall deliver a policy endorsement to the City demonstrating same, which
shall be reviewed and approved by the Risk Manager.
H. Securitv for Performance.
(1) Performance Bond.
In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant
to provide a Performance Bond (indicated by a check mark in the parenthetical space
immediately preceding the subparagraph entitled "Performance Bond"), then Consultant shall
provide to the City a performance bond by a surety and in a form and amount satisfactory to
the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term,
"Performance Bond", in said Paragraph 19, Exhibit A.
(2) Letter of Credit.
In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant
to provide a Letter of Credit (indicated by a check mark in the parenthetical space immediately
preceding the subparagraph entitled "Letter of Credit"), then Consultant shall provide to the
City an irrevocable letter of credit callable by the City at their unfettered discretion by
submitting to the bank a letter, signed by the City Manager, stating that the Consultant is in
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breach of the terms of this Agreement. The letter of credit shall be issued by a bank, and be
in a form and amount satisfactory to the Risk Manager or City Attorney which amount is
indicated in the space adjacent to the term, "Letter of Credit", in said Paragraph 19, Exhibit A.
(3) Other Security
In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant
to provide security other than a Performance Bond or a Letter of Credit (indicated by a check
mark in the parenthetical space immediately preceding the subparagraph entitled "Other
Security"), then Consultant shall provide to the City such other security therein listed in a form
and amount satisfactory to the Risk Manager or City Attorney.
I. Business License
Consultant agrees to obtain a business license from the City and to otherwise comply
with Title 5 of the Chula Vista Municipal Code.
2. Duties of the City
A. Consultation and Cooperation
City shall regularly consult the Consultant for the purpose of reviewing the progress of
the Defined Services and Schedule therein contained, and to provide direction and guidance
to achieve the objectives of this agreement. The City shall permit access to its office facilities,
files and records by Consultant throughout the term of the agreement. In addition thereto, City
agrees to provide the information, data, items and materials set forth on Exhibit A, Paragraph
10, and with the further understanding that delay in the provision of these materials beyond 30
days after authorization to proceed, shall constitute a basis for the justifiable delay in the
Consultant's performance of this agreement.
B. Compensation
Upon receipt of a properly prepared billing from Consultant submitted to the City
periodically as indicated in Exhibit A, Paragraph 18, but in no event more frequently than
monthly, on the day of the period indicated in Exhibit A, Paragraph 18, City shall compensate
Consultant for all services rendered by Consultant according to the terms and conditions set
forth in Exhibit A, Paragraph 11, adjacent to the governing compensation relationship indicated
by a "checkmark" next to the appropriate arrangement, subject to the requirements for retention
set forth in paragraph 19 of Exhibit A, and shall compensate Consultant for out of pocket
expenses as provided in Exhibit A, Paragraph 12.
All billings submitted by Consultant shall contain sufficient information as to the
propriety of the billing to permit the City to evaluate that the amount due and payable
thereunder is proper, and shall specifically contain the City's account number indicated on
Exhibit A, Paragraph 18 (C) to be charged upon making such payment.
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3. Administration of Contract
Each party designates the individuals ("Cvntract Administrators") indicated on Exhibit
A, Paragraph 13, as said party's contract administrator who is authorized by said party to
represent them in the routine administration of this agreement.
4. Term.
This Agreement shall terminate when the Parties have complied with all executory
provisions hereof.
5. Liquidated Damages
The provisions of this section apply if a Liquidated Damages Rate is provided in
Exhibit A, Paragraph 14.
It is acknowledged by both parties that time is of the essence in the completion of this
Agreement. It is difficult to estimate the amount of damages resulting from delay in per-
formance. The parties have used their judgment to arrive at a reasonable amount to
compensate for delay.
Failure to complete the Dermed Services within the allotted time period specified in this
Agreement shall result in the following penalty: For each consecutive calendar day in excess
of the time specified for the completion of the respective work assignment or Deliverable, the
consultant shall pay to the City, or have withheld from monies due" the sum of Liquidated
Damages Rate provided in Exhibit A, Paragraph 14 ("Liquidated Damages Rate").
Time extensions for delays beyond the consultant's control, other than delays caused
by the City, shall be requested in writing to the City's Contract Administrator, or designee,
prior to the expiration of the specified time. Extensions of time, when granted, will be based
upon the effect of delays to the work and will not be granted for delays to minor portions of
work unless it can be shown that such delays did or will delay the progress of the work.
6. Financial Interests of Consultant
A. Consultant is Designated as an FPPC Filer.
If Consultant is designated on Exhibit A, Par&graph IS, as an "FPPC filer", Consultant
is deemed to be a "Consultant" for the purposes of the Political Reform Act conflict of interest
and disclosure provisions, and shall report economic interests to the City Clerk on the required
Statement of Economic Interests in such reporting categories as are specified in Paragraph 15
of Exhibit A, or if none are specified, then as determined by the City Attorney.
B. Decline to Participate.
Regardless of whether Consultant is designated as an FPPC Filer, Consultant shall not
make, or participate in making or in any way attempt to use Consultant's position to influence
Page 5
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a governmental decision in which Consultant knows or has reason to know Consultant has a
financial illterest other than the compensation promised by this Agreement.
C. Search to Determine Economic Interests.
Regardless of whether Consultant is designated as an FPPC Filer, Consultant warrants
and represents that Consultallt has diligently conducted a search and inventory of Consultant's
economic interests, as the term is used in the regulations promulgated by the Fair Political
Practices Commission, and has determined that Consultant does not, to the best of Consultant's
knowledge, have an economic interest which would conflict with Consultant's duties under this
agreement.
D. Promise Not to Acquire Conflicting Interests.
Regardless of whether Consultant is designated as an FPPC Filer, Consultant further
warrants and represents that Consultant will not acquire, obtain, or assume an economic interest
during the term of this Agreement which would constitute a conflict of interest as prohibited
by the Fair Political Practices Act.
E. Duty to Advise of Conflicting Interests.
Regardless of whether Consultant is designated as an FPPC Filer, Consultant further
warrants and represents that Consultant will immediately advise the City Attorney of City if
Consultant learns of an economic interest of Consultant's which may result in a conflict of
interest for the purpose of the Fair Political Practices Act, and regulations promulgated
thereunder.
F. Specific Warranties Against Economic Interests.
Consultant warrants and represents that neither Consultant, nor Consultant's immediate
family members, nor Consultant's employees or agents ("Consultant Associates") presently
have any interest, directly or indirectly, whatsoever in any property which may be the subject
matter of the Defined Services, or in any property within 2 radial miles from the exterior
boundaries of any property which may be the subject matter of the Defined Services,
("Prohibited Interest"), other than as listed in Exhibit A, Paragraph 15.
Consultant further warrants and represents that no promise of future employment,
remuneration, consideration, gratuity or other reward or gain has been made to Consultant or
Consultant Associates in connection with Consultant's performance of this Agreement.
Consultant promises to advise City of any such promise that may be made during the Term of
this Agreement, or for 12 months thereafter.
Consultant agrees that Consultant Associates shall not acquire any such Prohibited
Interest within the Term of this Agreement, or for 12 months after the expiration of this
Agreement, except with the written permission of City.
Consultant may not conduct or solicit any business for any party to this Agreement, or
for any third party which may be in conflict with Consultant's responsibilities under this
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Agreement, except with the written permission of City.
7. Hold Harmless
Exc'ept as to Consultant's obligation regarding the design of project set forth in the
defined Services and the Professional Services relating thereto and the indemnification and hold
harmless aspects as set forth below, Consultant shall defend, indemnify, protect and hold
harmless the City, its elected and appointed officers and employees, from and against all claims
for damages, liability, cost and expense (including without limitation reasonable attorneys' fees)
arising out of the conduct of the Consultant, or any agent or employee, subcontractors, or
others in connection with the execution of the work covered by this Agreement, except only
for those claims arising from the sole negligence or sole willful conduct of the City, its
officers, or employees. Consultant's indemnification shall include any and all costs, expenses,
attorneys' fees and liability incurred by the City, its officers, agents, or employees in defending
against such claims, whether the same proceed to judgment or not. Further, Consultant at its
own expense shall, upon written request by the City, defend any such suit or action brought
against the City, its officers, agents, or employees. Consultants' indemnification of City shall
not be limited by any prior or subsequent declaration by the Consultant. City and Consultant
will apportion any damages according to their respective liability, as determined by law.
With regard to Consultant's design of project and professional services related thereto,
Consultant agrees to indemnify and hold harmless the City and its officers, agents and
employees from and against any and all claims, costs, suits and damages, including reasonable
attorney's fees, arising from the negligent acts, errors or omissions of the Consultant associated
with designing of the project.
8. Termination of Agreement for Cause
If, through any cause, Consultant shall fail to fulfill in a timely and proper manner
Consultant's obligations under this Agreement, or if Consultant shall violate any of the
covenants, agreements or stipulations of this Agreement, City shall have the right to terminate
this Agreement by giving written notice to Consultant of such termination and specifying the
effective date thereof at least five (5) days before the effective date of such termination. In that
event, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and
other materials prepared by Consultant shall, at the option of the City, become the property of
the City, and Consultant shall be entitled to receive just and equitable compensation for any
work satisfactorily completed on such documents and other materials up to the effective date
of Notice of Termination, not to exceed the amounts payable hereunder, and less any damages
caused City by Consultant's breach.
9. Errors and Omissions
In the event that the City Administrator or a court or forum of competent jurisdiction
reasonably determines that the Consultants' negligent acts, errors or omissions in the
performance of work under this Agreement has resulted in expense to City greater than would
have resulted if there were no such negligent acts, errors or omissions, Consultant shall
reimburse City for any additional expenses incurred by the City. Nothing herein is intended
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to limit City's rights under other provisions of this agreement.
10. Termination of Agreement for Convenience of City
City may terminate this Agreement at any time and for any reason, by giving specific
written notice to Consultant of such termination and specifying the effective date thereof, at
least thirty (30) days before the effective date of such termination. In that event, all finished
and unfinished documents and other materials described hereinabove shall, at the option of the
City, become City's sole and exclusive property. If the Agreement is terminated by City as
provided in this paragraph, Consultant shall be entitled to receive just and equitable
compensation for any satisfactory work completed on such documents and other materials to
the effective date of such termination. Consultant hereby expressly waives any and all claims
for damages or compensation arising under this Agreement except as set forth herein.
11. Assignability
The services of Consultant are personal to the City, and Consultant shall not assign any
interest in this Agreement, and shall not transfer any interest in the same (whether by
assignment or novation), without prior written consent of City. City hereby consents to the
assignment of the portions of the Defined Services identified in Exhibit A, Paragraph 17 to the
sub consultants identified thereat as "Permitted Sub consultants ".
12. Ownership, Publication, Reproduction and Use of Material
All reports, studies, information, data, statistics, forms, designs, plans, procedures,
systems and any other materials or properties produced under this Agreement shall be the sole
and exclusive property of City. No such materials or properties produced in whole or in part
under this Agreement shall be subject to private use, copyrights or patent rights by Consultant
in the United States or in any other country without the express written consent of City. City
shall have unrestricted authority to publish, disclose (except as may be limited by the
provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in
whole or in part, any such reports, studies, data, statistics, forms or other materials or
. properties produced under this Agreement.
13. Independent Contractor
City is interested only in the results obtained and Consultant shall perform as an
independent contractor' with sole control of the manner and means of performing the services
required under this Agreement. City maintains the right only to reject or accept Consultant's
work products. Consultant and any of the Consultant's agents, employees or representatives are,
for all purposes under this Agreement, an independent contractor and shall not be deemed to
be an employee of City, and none of them shall be entitled to any benefits to which City
employees are entitled including but not limited to, overtime, retirement benefits, worker's
compensation benefits, injury leave or other leave benefits. Therefore, City will not withhold
state or federal income tax, social security tax or any other payroll tax, and Consultant shall
be solely responsible for the payment of same and shall hold the City harmless with regard
thereto.
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14. Administrative Claims Requirements and Proctdures
No suit or arbitration shall be brought arising out of this agreement, against the City
unless a claim has first been presented in writing and filed with the City and acted upon by the
City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal
Code, as same may from time to time be amended, the provisions of which are incorporated
by this reference as if fully set forth herein, and such policies and procedures used by the City
in the implementation of same.
Upon request by City, Consultant shall meet and confer in good faith with City for the
purpose of resolving any dispute over the terms of this Agreement.
15. Attorney's Fees
Should a dispute arising out of this Agreement result in litigation, it is agreed that the
prevailing party shall be entitled to recover all reasonable costs incurred in the defense of the
claim, including costs and reasonable attorney's fees.
16. Statement of Costs
In the event that Consultant prepares a report or document, or participates in the
preparation of a report or document in performing the Defmed Services, Consultant shall
include, or cause the inclusion of, in said report or document, a statement of the numbers and
cost in dollar amounts of all contracts and subcontracts relating to the preparation of the report
or document.
17. Miscellaneous
A. Consultant not authorized to Represent City
Unless specifically authorized in writing by City, Consultant shall have no authority to
act as City's agent to bind City to any contractual agreements whatsoever.
B. Consultant is Real Estate Broker and/or Salesman
If the box on Exhibit A, Paragraph 16 is marked, the Consultant and/or their principals
is/are licensed with the State of California or some other state as a licensed real estate broker
or salesperson. Otherwise, Consultant represents that neither Consultant, nor their principals
are licensed real estate brokers or salespersons.
C. Notices
All notices, demands or requests provided for or permitted to be given pursuant to this
Agreement must be in writing. All notices, demands and requests to be sent to any party shall
be deemed to have been properly given or served if personally served or deposited in the
United States mail, addressed to such party, postage prepaid, registered or certified, with return
receipt requested, at the addresses identified herein as the places of business for each of the
designated parties.
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D. Entire Agreement
.
This Agreement, together with any other written document referred to or contemplated
herein, embody the entire Agreement and understanding between the parties relating to the
subject matter hereof. Neither this Agreement nor any provision hereof may be amended,
modified, waived or discharged except by an instrument in writing executed by the party
against which enforcement of such amendment, waiver or discharge is sought.
E. Capacity of Parties
Each signatory and party hereto hereby warrants and represents to the other party that
it has legal authority and capacity and direction from its principal to enter into this Agreement,
and that all resolutions or other actions have been taken so as to enable it to enter into this
Agreement.
F. Governing LawNenue
This Agreement shall be governed by and construed in accordance with the laws of the
State of California. Any action arising under or relating to this Agreement shall be brought
only in the federal or state courts located in San Diego County, State of California, and if
applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreement,
and performance hereunder, shall be the City of Chula Vista.
[end of page. next page is signature page.]
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Signature Page
to
Agreement between City of Chula Vista and DKS Associates
for an Adaptive Traffic Signal System
IN WITNESS WHEREOF, City and Consultant have executed this Agreement
thereby indicating that they have read and understood same, and indicate their full and
complete consent to its terms:
Dated:
19
City of Chula Vista
by:
Shirley Horton, Mayor
Attest:
o
Beverly Authelet, C" y Clerk
~:(
Bruce M. Boogaard,
Attorney
Dated:
B"
r Leo K. Lee, Sr
By:
[name of person, title]
Exhibit List to Agreement
() Exhibit A.
() Exhibit B:
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File No. 0735-10- TF237-EN003
Exhibit A
to
Agreement between
City of Chula Vista
and
DKS Associates
I. Effective Date of Agreement:
2. City-Related Entity:
(x) City ofChula Vista, amunicipal chartered corporation ofthe State of California
( ) Redevelopment Agency of the City ofChula Vista, a political subdivision of the State of
California
( ) Industrial Development Authority of the City of Chula Vista, a
( )
Other:
, a [insert business form]
("City")
3. Place of Business for City:
City of Chula Vista,
276 Fourth Avenue,
Chula Vista, CA 91910
4. Consultant: OKS Associates
5. Business Form of Consultant:
( ) Sole Proprietorship
( ) Partnership
( x ) Corporation
6. Place of Business, Telephone and Fax Number of Consultant:
2700 North Main Street, Suite 900
Santa Ana, CA 92701
Voice Phone (714) 543-9601
Fax Phone (714) 648-0402
/tf?L?-/7
7. General Duties:
The consultant shall provide the engineering services necessary to replace and upgrade the City's
existing computerized urban traffic control (UTC) system to an ada.ptive urban traffic control system.
The City of Chula Vista's overall Adaptive Traffic Signal System project will be implemented in three
(3) phases. Phase I, System Design, .is the initial subject of this agreement. Phases II and III of the
project, which include implementation of the selected adaptive system softwarelhardware and field
construction work, will be implemented at a later time. The City of Chula Vista can, at its option,
extend this contract to cover Phases II and III. The consultant's work task consists of:
Phase I System Design
I. Evaluate adaptive traffic control systems
2. Develop specifications for selected system
3. Recommend communication system
4. PS&E for Phase II
5. PS&E for communication system (optional)
6. Assist City staff in contractor selection and negotiation
Phase II (optional) System Purchase and Implementation of 10 Intersections
7. Oversee contractor implementation of system hardware and software
8. Oversee contractor's field implementation at 10 intersections
9. Develop system set-up parameters
10. Monitor system's acceptance testings
II. Fine tune and calibrate system parameters in the field
12. Perform before and after studies
13. Provide training for City staff
14. Prepare system documentation
15. PS&E for Phase III
Phase m (optional) Implementation of80 -100 Intersections
16. Oversee contractor implementation at remaining 117 intersections
17. Develop system parameters for remaining 117 intersections
18. Monitor system's acceptance testings
19. Fine tune and calibrate system parameters in the field
20. Complete system documentation
Phase I is the initial subject of this agreement. The remaining phases, Phase II and III will be
performed at a later date depending on the outcome of the results of Phase 1. The City has the
option to extend this Consultant contract to cover Phases II and III.
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8. Scope of Work and Schedule:
A. Detailed Scope of Work:
Work to be performed by the consultant in Phase I shall consists ofthe following tasks.
The scope of the project is to develop functional and technical specifications for upgrading the
City's existing Urban Traffic Control System to an Adaptive Traffic Control System. The task involved
should include. .
Task 1. Evaluate adaptive traffic control system.
Review and evaluate the City's existing UTC system and develop a process to upgrade the UTC system with
an adaptive traffic control system. The City will furnish the consultant, to the extent that is available, the
information on the City's existing JHK Series 2000 Traffic Signal System and any other such information
as may be helpful to the consultant in the performance of the services required for this project. The
consultant will evaluate the operational capabilities of the different adaptive traffic systems available. An
objective evaluation of the different systems will be made, including SCOOT, SCATS, RT-TRACS AND
SPOT.
After completing the generic evaluation of the functionality of the different adaptive systems, a set of project
specific utility parameters will be developed to rank the different systems. Some of these utility parameters
to be considered may include:
. Flexible signal grouping
. Automatic coordination of groups
. Suitability in grid network
. Adapted for 170 controllers
. Queue spillback prevention
. Friendly graphical user interfaces
. Transit priority treatment
. Split and offset weighting
. Detection requirements
. Gating or metering bottlenecks
. Level of support from vendor
These parameters will be developed in conjunction with city's staff with relative weights established (0
reflect the specific and local needs in Chula Vista. Generic level cost estimates of the different systems will
be analyzed to establish the utility/cost ratio of the different systems.
Deliverables:
A complete report of the review and analysis of the existing system and system related infrastructure,
alternative adaptive control systems and their pros and cons relative to the City's needs, and a financial plan
relative to the phasing of the system implementation will be prepared and will be the product of this first
task.
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Task 2 - Prepare Hardware and Software Technical Specifications
Development of functional and technical specifications for an adaptive traffic signal control system that will
meet the present and future needs of the City. The system shall include all necessary hardware, software and
peripheral equipment.
The specifications will include two elements:
. Functional specifications for hardware and software of the central equipment;
. Functional specifications for modifying the hardware and software at the local controller level.
The functional specifications will outline the expected operational requirements of the system. Such
operational requirements include:
. Frequency of changes in split, offset, cycle lengths
. Averaging and prognostic requirements
. Split weighting to favor certain approaches
. Offset weighting to favor certain direction, or traffic movement
. Gating or metering at upstream intersections
. Queue release to prevent queue spillback
. Emergency vehicle preempt
. Public transit priority
. Feedback of controller data to control room
. Fallback mode of operation
. Acceptance testing requirements
Deliverables:
Functional and technical specifications for an adaptive traffic control system.
Task 3 - Recommend Communication System
Identify and evaluate alternative system communication devices for signal control system e.g. leased
telephone lines, microwave, fiber optic, etc. and assist the City in selecting the most efficient communication
devices.
Deliverables:
Technical memorandum on recommendation for a communication system.
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Task 4 - Prepare Plans, Specifications & Estimates for Phase II
The review of existing equipment and the recommendation of an adaptive system for installation in Chula
Vista will provide sufficient information to permit the development of an implementation plan for the new
system. The plan will include the identification of approximately ten intersections which will be
implemented in Phase 2 of the project. The remaining signalized intersections in the City will be
implemented in Phase 3 or additional phases depending on future funding.
The identification of the first section of approximately ten interllections to be implemented on the new
adaptive system will be based on a number of criteria:
. reasonably high visibility such that improvements in operation will be readily apparent to the
driving public
. geographically separate or significantly different in traffic characteristics from nearby signals
that the section can be operated under adaptive control while not negatively impacting nearby
signals
. the communications links should be easy to implement, i.e., the telephone assignments to the
intersections should be able to be readily switched to the new system or hardwired interconnect
already exists thereby requiring no major conduit installation.
The implementation of the first section of signals must be able to be accomplished without interrupting the
operation of the rest of the signals under the control of the City's existing system. An important aspect of the
staging/implementation plan will be to ensure that traffic control is not impaired during the transition to the
new system.
The implementation plan will include identifying geographic sections of the system and the order in which
they might best be implemented. The selection of the geographic sections will be coordinated with City staff
and will be based on a set of criteria which responds to alleviating traffic congestion and providing
responsive operation to sections of the City where traffic conditions are not always predictable.
The consultant will conduct a review of the traffic characteristics and field conditions and determine detector
placement and selection requirements.
Deliverables:
. PS&E plans for the necessary traffic signal, vehicle detection system, and field/intersection
modifications.
. Contract documents for bidding of Phase II of the adaptive traffic control system.
. Field construction drawings, specifications and cost estimates for vehicle detection
modification necessary to implement the recommended adaptive traffic control system.
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Task 5 - Communications PS&E (optional)
Depending on the communications system recommended in Task 3, DKS will provide PS&E of the selected
communications design. It should be noted that, if leased telephone lines is the preferred communications
option, then the local modifications to the telephime demarcation is included in the PS&E in Task 4. Only
if large scale modifications of the communication system is required, such as extensive interconnect and
land-lines, will this task be required. This task will, therefore, be optional and not included in the current
cost proposal.
Deliverables (optional): PS&E of Communication Design
Task 6 - Assist City staff in contractor selection and negotiation
DKS will provide assistance to the City in selecting the contractor for implementation. Assistance may
include participation in interviews, selection meetings, contract negotiations with contractor, and
presentations to the City Council. Prior to interviewing, DKS will review proposals to ensure conformance
with the City's needs. A list of questions will be prepared for each bidder prior to the interview. DKS will
also assist the City to develop a list of selection criteria for evaluating the proposals. Examples of such
criteria include:
. Cost of central hardware and software
. Cost of local software and detection
. communication costs
. System features
. Upgrade potential
. User-friendliness of graphical interface
. Training and documentation
. Prior implementation experience in the U.S.
. Warranty and on-site support after system turn-on
Deliverables: Contractor Selection Criteria and List of Questions
Upon selection of the successful vendor, DKS will assist the City to negotiate with the contractor prior to
recommendation to City Council. DKS will also make presentation to the City Council together with city
staff prior to beginning of Phase II.
B. Date for Commencement of Consultant Services:
() Same as Effective Date of Agreement
( x ) Other: Upon written notification by the City Engineer to proceed. (Notice will not
be issued by the City until the City receives written confirmation from the State that
the State has executed a Program Supplement Agreement with the City, authorizing
reimbursement of consultant services provided under this agreement).
C. Dates or Time Limits for Delivery of Deliverables:
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Phase I Days from
Notice to Proceed
Deliverables for Task 1: 30 Days
Deliverables for Task 2: 120 Days
Deliverables for Task 3: 120 Days
Deliverables for Task 4: 180 Days
Deliverables for Task 5: (optional): 180 Days
Deliverables for Task 6: 240 Days
D. Date for completion of all Consultant services:
Phase I shall be comnleted in 240 davs from Notice t Proceed.
9. Insurance Requirements:
( x) Statutory Worker's Compensation Insurance
(x) Employer's Liability Insurance coverage: $1,000,000:
(x) Commercial General Liability Insurance: $1,000,000.
( ) Errors and Omissions insurance: None Required (included in Commercial General Liability
coverage).
( x) Errors and Omissions Insurance: $250,000 (not inch:ded in Commercial General Liability
coverage).
10. Materials Required to be Supplied by City to Consultant:
11. Compensation:
A. (X) Single Fixed Fee Arrangement.
For performance ofall of the Defined Services by Consultant as herein required, City shall pay a
single fixed fee in the amounts and at the times or milestones or for the Deliverables set forth below:
Single Fixed Fee Amount:
$169000.00 . payable as follows:
Amount or Percent of Fixed Fee
Payable monthly upon presentation of invoices by Consultant based on percentage complete by task.
The following budget breakdown represents the budget by task:
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Task
I. Evaluate adaptive systems
2. Develop specs.
3. Recommend communication system
4. PS&E for PhhSe II
5. Optional task
~ Contractor selection
$43,773.00
$4],035.00
$ 7,567.00
$64,936.00
o
$] 1.689.00
TOTAL
$169,000.00
B. ( ) Phased Fixed Fee Arrangement.
For the performance of each Task or portion of the Defined Services by Consultant as are separately
identified below, City shall pay the fixed fee associated with each phase of Services, in the amounts and at
the times or milestones or Deliverables set forth. Consultant shall not commence Services under any Task,
and shall not be entitled to the compensation for a Phase, unless City shall have issued a notice to proceed
to Consultant as to said Task.
Task
Fee for Said Task
1.
2.
3.
$
$
$
C. ( ) Hourly Rate Arrangement
For performance of the Defined Services by Consultant as herein required, City shall pay Consultant for
the productive hours of time spent by Consultant in the performance of said Services, at the rates or amounts
set forth in the Rate Schedule hereinbelow according to the following terms and conditions:
(I) ( ) Not-to-Exceed Limitation on Time and Materials Arrangement
Notwithstanding the expenditure by Consultant of time and materials in excess of said Maximum
Compensation amount, Consultant agrees that Consultant will perform all of the Defined Services
herein required of Consultant for $ including all Materials, and other "reimbursable"
("Maximum Compensation").
(2) ( ) Limitation without Further Authorization on Time and Materials Arrangement
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At such time as Consultant shall have incurred time and materials 'qual to
("Authorization Limit"), Consultant shall not be entitled to any additional compensation without further
authorization issued in writing and approved by the City. Nothing herein shall preclude Consultant
from providing additional Services at Consultant's own cost and expense.
Category of Employee Hourly Rate Schedule
of Consultant Name Rate
OKS (Project Manager) Lee $145
OKS Tighe $145
OKS Smith $110
MY A-ASIA Thompson $130
PBIF aradyne Argobright $120
VRPA Murphy $ 65
( ) Hourly rates may increase by 6% for services rendered after [month], 19 ,if delay in providing
services is caused by City.
12. Materials Reimbursement Arrangement
For the cost of out of pocket expenses incurred by Consultant in the performance of services herein
required, City shall pay Consultant at the rates or amounts set forth below:
( ) None, the compensation includes all costs.
Cost or Rate
( ) Reports, not to exceed $
( ) Copies, not to exceed $
( ) Travel, not to exceed $
( ) Printing, not to exceed $
( ) Postage, not to exceed $
( ) Delivery, not to exceed $
( ) Long Distance Telephone Charges, not to exceed $
Page 9
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( ) Other Actual Identifiable Direct Costs:
, not to exceed $
, not to exceed $
13. Contract Administrators:
City:
Harold Rosenberg, Traffic Engineer, Public Services Building, 276 Fourth Avenue,
Chula Vista, CA 91910, (619) 691-5116.
Consultant:
Leo K. Lee, Senior Vice President, DKS Associates, 2700 North Main Street, Suite 900, Santa Ana,
CA 92705-9601, (714) 543-9601, Fax (714) 648-0402
14. Liquidated Damages Rate:
(x ) $_0_ per day.
( ) Other:
15. Statement of Economic Interests, Consultant Reporting Categories, per Conflict ofInterest Code:
( X ) Not Applicable. Not an FPPC Filer.
( ) FPPC Filer
( ) Category No. I. Investments and sources of income.
( ) Category No.2. Interests in real property.
( ) Category No.3. Investments, interest in real property and sources of income subject to the
regulatory, permit or licensing authority of the department.
( ) Category No.4. Investments in business entities and sources of income which engage in land
development, construction or the acquisition or sale of real property.
( ) Category No. 5. Investments in business entities and sources of income of the type which, within
the past two years, have contracted with the City of Chula Vista (Redevelopment Agency.) to
provide services, supplies, materials, machinery or equipment.
( ) Category No.6. Investments in business entities and sources of income of the type which, within
the past two years, have contracted with the designated employee's department to provide services,
supplies, materials, machinery or equipment.
WPC M:\HOME\ENG1IONEER\TRAFFIC\dksagr.hr
Page 10
/tJ!J~..23
7l,
{ ..
( ) Category No.7. Business positions.
( ) List "Consultant Associates" interests in real property within 2 radial miles of Project Property, if
any:
16. ( ) Consultant is Real Estate Broker and/or Salesman
17. Permitted Subconsultants:
MYA~
fll.Qltll
~ Research It PlanniOl! Associates
18. Bill Processing:
A. Consultant's Billing to be submitted for the following period oftime:
( X ) Monthly
( ) Quarterly
( ) Other:
B. Day of the Period for submission of Consultant's Billing:
( ) First of the Month
( ) 15th Day of each Month
( ) End of the Month
( X ) Other: faill J!IlQll acceptance 2f deliverables
C. City's Account Number:
19. Security for Performance
() Performance Bond, $
() Letter of Credit, $
() Other Security:
Type:
Amount: $
(X ) Retention. If this space is checked, then notwithstanding other provisions to the contrary
requiring the payment of compensation to the Consultant sooner, the City shall be entitled
to retain, at their option, either the following "Retention Percentage" or "Retention Amount"
Page 11
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until the City d"termines that the Retention Release Event, listed below, has occurred:
( X ) Retention Percentage: ~
( ) Retention Amount: $
Retention Release Event:
( X ) Completion of All Consultant Services
( ) Other:
WPC M:\HOME\ENGl tlNEER\TRAFFlC\dksagr.hr
Page 12
/tJ[J -~f
7(1
COUNCIL AGENDA STATEMENT
Item /1
Meeting Date 11/14/95
/t"/tJ 7
ITEM TITLE: Resolution Approving Agreement among National City, Chula Vista
and Canyon-Cahan Properties for the provision of sewer service to an
Econo Lube 'N' Tune, Inc. Automobile Maintenance Facility through the
City of National City facilities and Authorizing the Mayor to execute
said Agreement on the City's beh1
SUBMITTED BY: Director of Public Works~\rv
REVIEWED BY: City ManageLJa bw~ (4/5ths Vote: Yes_ No X)
Canyon-Cahan Properties submitted a sit~an to the City, showing the development of an
Econo Lube 'N' Tune, located at the southwest comer of 30th Street and North Second
Avenue, for approval by the Design Review Committee. Approval was given on June 12, 1995.
During the course of the plan review it was determined that, because the property is north of
SR-54 and the Sweetwater River, no Chula Vista sewers are available to the site.
Consequently, sewer service would have to be provided through National City facilities.
This agreement provides for the necessary service to be provided by National City.
RECOMMENDATION: Approve the resolution approving the agreement.
BOARDS/COMMISSIONS RECOMMENDATIONS: Not applicable.
DISCUSSION: A sewer service connection location on North Second Avenue was
prepared for the Econo Lube 'N' Tune site during the December 1994 construction of
improvements on North Second Avenue by Food 4 Less (the adjacent property owner). As a
condition for Econo Lube 'N' Tune to receive sewer service at this location from the City of
National City, we are required to enter into an agreement with National City to ensure that the
connection is made in compliance with National City's permitting procedures and construction
standards. The requirement is stated in the Negative Declaration prepared in conjunction with
the Design Review, and is referenced in the agreement.
The developer (Canyon-Cahan Properties) and National City have both approved the
agreement, which is now submitted for approval by the City Council. With this approval, the
Econo Lube 'N' Tune project will be able to proceed to completion.
//--/
Page 2, Item L
Meeting Date 11/14/95
FISCAL IMPACT: All construction activities associated with this project, the connection in
particular, will be funded by the developer, who is responsible for paying all fees, including
permit and sewer service, assessed by National City for the connection.
RiD: File No. KY ~043
F:IHOME\ENGINEER\AGENDA \ECONOLUB.113
//~,2
RESOLUTION NO. I g:IP 7
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING AGREEMENT AMONG NATIONAL
CITY, CHULA VISTA AND CANYON-CAHAN PROPERTIES
FOR THE PROVISION OF SEWER SERVICE TO AN ECONO
LUBE 'N' TUNE, INC. AUTOMOBILE MAINTENANCE
FACILITY THROUGH THE CITY OF NATIONAL CITY
FACILITIES AND AUTHORIZING THE MAYOR TO
EXECUTE SAID AGREEMENT ON THE CITY'S BEHALF
WHEREAS, Canyon-Cahan Properties submitted a site plan to
the city, showing the development of an Econo Lube 'N' Tune,
located at the southwest corner of 30th Street and North Second
Avenue, for approval by the Design Review Committee which approval
was given on June 12, 1995; and
WHEREAS, during the course of the plan review it was
determined that, because the property is north of SR-54 and the
Sweetwater River, no Chula vista sewers are available to the site;
and
WHEREAS, consequently, sewer service would have to be
provided through National City facilities and this agreement
provides for the necessary service to be provided by National City.
NOW, THEREFORE, BE IT RESOLVED the City Council of the
City of Chula vista does hereby approve Agreement among National
City, Chula vista and Canyon-Cahan Properties for the provision of
sewer service to an Econo Lube 'N' Tune, Inc. Automobile
Maintenance Facility through the city of Nationai City facilities,
a copy of which is on file in the office of the City Clerk as
Document No.
BE IT FURTHER RESOLVED that the Mayor of the City of
Chula vista is hereby authorized and directed to execute said
Agreement on behalf of the City of Chula vist
/
t
Presented by
John P. Lippitt, Director of
Public Works
C: \ rs\ econolub
JI';> )//-1
)
I
Recording requested by:
CITY OF NATIONAL CITY
When Recorded mail to:
CITY OF NATIONAL CITY
CIVIC CENTER
1243 NATIONAL CITY BLVD.
NATIONAL CITY, CA 91950
ATTN: CITY CLERK
Return Mailin Information
Recorder's Use
AGREEMENT AMONG THE CITY OF CHULA VISTA, THE CITY OF NATIONAL CITY,
AND CANYON-CAHAN PROPERTIES, A CALIFORNIA LIMITED PARTNERSIDP,
FOR THE DEVELOPMENT OF AN ECONO LUBE 'N' TUNE, INC. AUTOMOBILE
MAINTENANCE FACILITY WITIllN CHULA VISTA AND ITS CONNECTION TO THE
NATIONAL CITY SEWER SYSTEM
TIDS AGREEMENT, made and entered into the ~1ll day of ~lOr , 1995, by
and among the CITY OF CHULA VISTA, a municipal corporation, hereinafter called "Chula Vista",
the CITY OF NATIONAL CITY, a municipal corporation hereinafter called "National City",
and CANYON-CAHAN PROPERTIES, A CALIFORNIA LIMITED PARTNERSIDP hereinafter
called "Developer".
WITNESSETH:
WHEREAS, developer wishes to develop the lot at Assessors Parcel Numbers 563-370-19, and
26, known as 3008 North Second Avenue, Chula Vista, located at the southwest corner of 30th Street
and North Second Avenue (Edgemere Avenue), with an Econo Lube 'N' Tune, Inc. automobile
maintenance facility; and
WHEREAS, on the 12th day of JUNE, 1995, the Chula Vista Design Review Committee
approved the proposed automobile maintenance facility design on the condition that the requirements
of Negative Declaration IS-95-16 be satisfied. The Negative Declaration states that an agreement
between Chula Vista and National City shall be required in order to provide sewer service to the
proposed automobile maintenance facility; and
WHEREAS, there are no Chula Vista sewer mains that can feasibly provide sewer service to
the automobile maintenance facility; and
WHEREAS, National City owns and operates an existing 8-inch sewer main in North Second
Avenue; and
//,5
WHEREAS, on JULY ]8, ]995, the City Council of National City, on the recommendation of
National City staff, accepted and filed a report on the proposal for a sewer connection for the
automobile maintenance facility in Chula Vista to a National City sewer. As a condition of allowing
this connection, it was required that a minimum 6-inch sewer lateral be used for the connection. This
condition complies with engineering design requirements for public improvements stated in National
City Ordinance No. 92-2033, Section 3.7.] and 3.7.2; and
WHEREAS, all portions of sewers lying within North Second Avenue, located between 30th
Street and the north side of the Sweetwater River, with the exception of the automobile maintenance
facility sewer lateral, will be operated and maintained by National City; and
WHEREAS, this agreement shall establish the rights, privileges and duties of the parties
concerning the use of National City's system and the construction and maintenance of the connection
to said system;
NOW THEREFORE THE PARTIES HERETO AGREE as follows:
SECTION I. CONNECTION AND ENGINEER'S APPROVAL.
(a) The plans and specifications for work within North Second Avenue required for the
automobile maintenance facility shall be approved by the City Engineer of National City.
(b) Developer, at its sole expense, shall perform and bear the cost of extending the existing
6-inch sewer lateral to the automobile maintenance facility building. Developer shall be responsible
for the repair and maintenance of the lateral from the building to the sewer main.
( c) Installation and connection of the proposed sewer lateral servmg the automobile
maintenance facility shall be performed in accordance with the requirements of National City as
determined by the City Engineer of National City.
Page 2
(m:\Bhared\engineer\econolub,agr)
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(d) The developer shall not construct the lateral extending from the property line to the
building until this agreement has been approved by the City Council of National City. A permit shall
be required from the City of National City prior to any repair/maintenance wOrk
(e) Sewer Capacity Fees and Connection Fees shall be based on the fees normally assessed
by National City. The amount of the respective fees shall be determined by the City Engineer of
National City prior to issuance of a building permit by the City of Chula Vista for the proposed
development.
SECTION 2. COLLECTION OF FEES.
(a) All Sewer Capacity and Connection Fees for the automobile maintenance facility shall
be payable to and will be collected by National City. Applicant shall be required to provide to Chula
Vista proof of payment of all fees prior to issuance of the Chula Vista building permit.
(b) National City shall be responsible for the establishment and collection of the sewer
service charges for the Econo Lube 'n' Tune, Inc. automobile maintenance facility. Such charges shall
be payable to National City. National City shall be solely responsible for payment of all expenses not
directly billed to Canyon-Cahan Properties for the transportation, treatment and disposal of wastewater
discharged from the Canyon-Cahan Properties property. The capacity in the Metropolitan Sewerage
System owned by National City shall be used to serve the Econo Lube 'n' Tune, Inc. automobile
maintenance facility.
SECTION 3. MAINTENANCE OF 6-INCH SEWER LATERAL
Developer shall operate, maintain and repair the 6-inch sewer lateral serving the Canyon-Cahan
Properties property from the building to the point of connection to National City's sewer main in
Page 3
(.'\8hared\engin..r\econolub.agr)
//-7
LI
i
North Second Avenue. Prior to any work in the public Right of Way, the developer shall obtain a
construction permit from National City.
SECTION 4. AREA TO BE SERVED.
Only the aforementioned Econo Lube 'n' Tune, Inc. automobile maintenance facility, which
is within the Chula Vista city limits, shall be served by National City sewers under the terms of this
agreement. Chula Vista and National City agree that for purposes of this agreement the boundaries,
extent and limit, shall be as delineated on the plat attached hereto and marked Exhibit "A" which by
this reference is made a part of this agreement.
SECTION 5. HOLD HARMLESS.
Developer agrees to protect, defend, indemnify and hold harmless Chula Vista and National
City and their agents and employees from any claims, liabilities, penalties or fines for injury
to or damage to any person or property or for the death of any person arising from or out of any act
or omission of Developer, its agents, officers, employees or contractors, arising from or out of any
defects in the installation, construction, repair, replacement or reconstruction of facilities being
constructed as part of this development.
SECTION 6. TERM OF AGREEMENT.
This agreement shall take effect immediately upon the execution by the parties hereto and shall
continue for a period of 20 years, or the period of time for which the National City sewer line remains
operational, whichever is longer.
SECTION 7. AUTHORITY
Each party represents that it has full right, power and authority to execute this agreement and
Page 4
(m:\ahared\engineer\econolub.agr)
/)-%
..-.-
OJ
to perform its obligations hereunder without the need for any further action, and that the parties
executing this agreement on behalf of such party are duly authorized agents with authority to do so.
SECTION 8. SUCCESSORS TO AGREEMENT
This sewer agreement shall be binding upon, and shall inure to the benefit of successors, heirs,
executors, administrators, agents, and assigns of Canyon-Cahan Properties, the property owners, or the
applicant.
IN WITNESS THEREOF, the parties hereto have caused this agreement to be executed by their
respective officials.
Page 5
(m:\ehared\engineer\econolub.agr)
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,,-<<,,
"
Signature Page To
Agreement between the City of Chula Vista, the City of National City and Developer for the use of
National City's Sewer.
IN WITNESS WHEREOF, the City of Chula Vista, the City of National City and Developer
have executed this Agreement thereby indicating that they have read and understood same, and
indicate their full and complete consent to its terms:
Dated:
, 1995
City of Chula Vista
By:
Shirley Horton, Mayor
Attest:
BeV~~Uthelet,
API~as %r,
']
ity Attorney
---------- ---------------------------------------
Dated: September 26
, 1995
City of National City
By: ~~.R.. I./. (,)~7';;-J
George Waters, Mayor
Approved as to form by: ~ .
~ ,() ~-
George Iser, City Attorney
City of National City Council Resolution No, 95- 145
Adopted on: September 26, 1995
--------------------------------------------------
Dated: ~.B
, 1995
Canyon-Cahan Properties, a California Limited Partnership
By: Hanaco Inc"
its14~rrw
Richard Handel, Secretary
Page 6
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//-/1/
I~"C
..
Exhibit List to Agreement
(x) Exhibit A:
Sewer Lateral Connection at North Second Avenue
(m:\shared\engin..r\econolUb.agr)
Page 7 , J
//-/ / /11-1.2..
"
CALIFORNIA ALL.PURPOSE ACKNOWLEDGMENT
No. 5907
, .
State of r >>A {.m /YlM ,
County of Iv9<1 (l/VI1 e (J M ,
on_~p~L ~ /QQ5'beforeme, fJaAJtl tOH-tN) A)~ /~
personally app;:;ed R Ie H af.? r) t-I a J0 O~E~TUi OF OFFICER, E.G, 'JANE DOE, NOTARY uSLle'
NAME(S) OF SIGNER(S)
gpersonally known to me - OR - 0 proved to me on the basis of satisfactory evidence
to be the personCSJ whose name('$) is/are-
subscribed to the within instrument and ac-
knowledged to me that he/sReftMey executed
the same in his/t.ler/tl'leir authorized
capacity(~), and that by his/t.ler/tl'ieir
signature~ on the instrument the person~),
or the entity upon behalf of which the
personW acted, executed the instrument.
I- - - . . . ~~ - - ~I
e cow...... I
~I ' . -,. PullIc { . ...
, LOS ANGElES COUII'IY -
I ~ _ :y_'.tt--:7:"~B_OII~'~ j
.'
WITNESS my hand and official seal.
A1 fJ/'iAV' J~
./ SIGNATURE OF NOTARY
OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent
fraudulent reattachment of this form.
CAPACITY CLAIMED BY SIGNER
o INDIVIDUAL
I:l2I CORPORATE OFFICER
SU. '\.j
DESCRIPTION OF ATTACHED DOCUMENT
T1TLE(S)
(1~n1f - e/wh f)/C;T;} ~
TITLE OR TYPE OF DOCUMENt
t..CCT11 u ~
o PARTNER(S)
o LIMITED
o GENERAL
NUMBER OF PAGES
o ATTORNEY-IN-FACT
o TRUSTEE(S)
o GUARDIAN/CONSERVATOR
o OTHER:
Q-8-95"
DATE OF DOCUMENT
SIGNER IS REPRESENTING:
NAME OF PERSON(S) OR ENTITY(IES)
I+ClWMO
SIGNER(S) OTHER THAN NAMED ABOVE
C1993 NATIONAL NOTARY ASSOCIATION. 8236 Remmel Ave., P.O. Box 7184. Canoga Park, CA 91309-7184
11-),2.
EXHIBIT "A"
", ....
.r' ...A
SEWER AGREEMENT - ECONO LUBE'N'TUNE
EXIST. 8" P. V.C. -
SEWER MAIN
30th \
/ s':'
D= 57'34'20" \
R= 44.00'
L= 44.21'
--. ~
....... ..---
.... \ --7
. .
\ .
'>" \ V/
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o \'t..\ -\. \, rn to)
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y~ \ '? ~
..c~ \ c.;\~~ rn
-'\9.~rn~
@, \ -\. C rn
;" \ -.( \ ~rn
" '-
.....
-.1\
U'\
0\ EXISTING 6" P. V.C.
U'. \ \ SEWER LATERAL
\d
\ VI'"
\ "'~ \
\~~
\-;;az
, . (;)
\':J?':J9 ~G>.
~ \ <.
n"~ \ '0
'~'v \ .
~Arf;)':JAr CITY BOUNDARY ~
LEGEND
~"" "" "" ~ AREA SERVED BY THIS AGREEMENT
- - - - LIMIT OF AREA SERVED BY THIS AGREEMENl
- . - CITY BOUNDARY
STREET
s-
-
N'L Y BOUNDARY
OF PCL. 1,
P.M. 17467
.
-
AI
I
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.~
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~
//-/3
CITY COUNCIL AGENDA STATEMENT
SUBMITTED BY: Director of Public Works
/2
Item No,_
Meeting Date 11/14/95
Resolution J 8'1 tf) r:mending a City Council Policy number 465-01,
titled "Public Service Directional Signs on Public Streets".
w/
ITEM TITLE:
REVIEWED BY: City Manager ~ (4/5ths Vote: Yes_No..x.)
.....
During the month of September 1995, the C Engineer received a request from a local church
to install "Public Service Directional Signs on Public Streets", pursuant to City Council Policy
number 465-01. It was during the process of investigating this request that staff uncovered several
minor discrepancies between this City Council Policy and the current Master Fee Schedule. The
purpose of this resolution is to modify this City Council Policy to reflect the fees as provided in
the current Master Fee Schedule, and to keep current with any subsequent revisions to said
document. It is also necessary to modify the policy to meet current specifications for signs as they
relate to materials and workmanship.
RECOMMENDATION: That the City Council approve the resolution amending the attached
City Council Policy number 465-01, titled "Public Service Directional Signs on Public Streets"
as amended in the attachment.
BOARDS AND COMMISSIONS RECOMMENDATIONS: N/A
DISCUSSION:
The City Council Policy for "Public Service Directional Signs on Public Streets", was originally
adopted by the City Council on December 7, 1977. The purpose of this policy is to regulate the
size, construction, and location of non-advertising public service directional signs within the
public right-of-way. It sets forth the conditions under which hospitals, schools, churches, service
clubs, public welfare organizations, and other not-for-profit organizations may apply to the City
for permission to place directional signs within the public right-of-way, directing motorists to
facilities not located on major thoroughfares.
The recommended changes to the policy include clarification in location of signs, updating sign
material specifications and adjusting the cost for sign installation to reflect current costs as
included in the Master Fee Schedule, all of which have changed significantly since the policy was
originally adopted in December of 1977. The change in the section on location is to clarify that
signs could be installed in both directions at three points of access. Relative to the specifications,
the policy specifies porcelain enameled steel which is no longer used by the City. The change
specifies aluminum sheeting with a reflective background material. Last, several minor wording
changes have been made to conform to current practices.
A strikeout version of the existing policy is attached to this report, and includes the amendments
staff recommends that are necessary to bring this policy up to date. Reimbursement costs for City
services will be based on the City's current Master Fee Schedule, and any subsequent changes
thereto.
/~-/
<!'I
Page 2, Item /:z
Meeting Date: 11/14/95
FISCAL IMPACT: This Policy amendment will enable the City to recoup full cost recovery,
per the Master Fee Schedule, for administering the policy and for labor and materials to install
these Public Service Directional signs. The City can expect to collect up to $600 per application
to defer the City's costs depending on whether or not the signs can be installed on existing poles.
Attachment: City Council Policy Number 465-01
File Number: 0760-40-CY -008
(M:\HOME\ENGINEERIAGENDAICCPSIGNS.DMW)
/;2...- ,;L.
(I :~
RESOLUTION NO. )Jr~~~
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING CITY COUNCIL POLICY NO.
465-01 "PUBLIC SERVICE DIRECTIONAL SIGNS ON
PUBLIC STREETS"
WHEREAS, in September 1995, the City Engineer received a
request from a local church to install "Public Service Directional
Signs on Public Streets", pursuant to city Council Policy number
465-01; and
WHEREAS, it was during the process of investigating this
request that staff uncovered several minor discrepancies between
this City Council Policy and the current Master Fee Schedule; and
WHEREAS, the purpose of this resolution is to modify this
city Council Policy to reflect the fees as provided in the current
Master Fee Schedule, and to keep current with any subsequent
revisions to said document; and
WHEREAS, it is also necessary to modify the policy to
meet current specifications for signs as they relate to materials
and workmanship.
NOW, THEREFORE, BE IT RESOLVED the City Council of the
City of Chula vista does hereby amend City Council Policy No. 465-
01 "Public Service Directional Signs on Public Streets", attached
hereto and incorporated by reference as if set forth in full.
Presented by
John P. Lippitt, Director of
Public Works
Bruce M.
Attorney
City
C:\rs\465-01.pol
/;l-- J fP'-f
SUBJECT:
ADOPTED BY:
PURPOSE
COUNCIL POLICY
CITY OF CHULA VISTA
POLICY
NUMBER
EFFECTIVE
DATE
PAGE
1 of 3
I DATED:
The purpose of this policy is to regulate the size, construction and location of non-advertising
public service directional signs within public street right-of-way. This policy is not to be
construed to regulate in any manner signs erected by any municipality, County or State
agency for the purpose of regulating or directing traffic.
POLICY
1. Definition
Public semce directional signs shall be construed to mean directional signs relating to
churches, general hospitals, public welfare organizations, public service clubs, schools!
parks and other non-profit places of public assembly. ..
2. Limitations
No sign shall be permitted in a public street right-of-way unless ill accordance with
this policy, except signs erected by a governmental agency for purposes of traffic
control and direction.
3. Permission
Permission to install public semce directional signs shall be obtained from the
Direetor of PusHe WorksE~I!~I~~~t. If a sign is to be located on a State Highway,
the requesting organization shall obtain prior approval for the installation from the
California Department of Transportation.
4. Location of Signs
a.
Location of signs shall be inspeeted ~l!:P'tllJ:!~ by the Direetsr sf PusHa Works
E11fl\HiI~~ of the City of Chula VIstaoihis representative.
Signs shall not be permitted within 200 feet of traffic signals, or within 100 feet
of official directional or regulatory signs (Stop, Speed, Parking, etc.), or closer
than 50 feet to bus loading zone signs. Under special conditions the Direeter
sf PIISRe Wsrks E!!YJl!jj,gm~~f, or his representatives may modify distance
requirements relativei:ootherslgns.
i~j-_111.~~li~~lti~~j~iW~~;ii~. to three directional signs Il~~~~
Signs shall observe all Sections of the Vehicle Code Safety laws.
/e2~f
b.
c.
d.
SUBJECT:
COUNCIL POLICY
CITY OF CHULA VISTA
POLICY
NUMBER
EFFECTIVE
DATE
PAGE
2 of 3
ADOPTED BY:
I DATED:
e. At locations where two or more private directional signs are located within 200
feet, all shall be grouped on single posts or panels.
f. Signs shall not be permitted on a major street if the institution IS located on
that major street.
5. Construction Design and Material of Silms
;9;~~~~h::1 s~:n~~~;rs~:~a~BI8~1a;~~i~~~j~it(lli1i~~~Hg~9~m~~~~~H.~~I
All signs shall be of standard color - white II~tlM!background and blue
lettering and border. . .
A 3/8" border 1/4" in from the edge of sign shall be provided.
Not more than three lines of copy will be permitted, with a minimum height of
2'14" plain capital block lettering, and all signs shall include an arrow at the
bottom of sign to indicate direction.
No seals, emblems or insignia, nor any other color paints will be permitted on
signs.
Posts and hardware for signs will be furnished by the City liIiffi!m~Hl~q~g~!!!
!1~~t~l~'Ip~~g. ...................................................
All materials, workmanship and finish shall be equal to those used by the City
of Chula Vista.
6. Furnishinl!: of Signs
a.
b.
c.
d.
e.
f.
g.
All public servIce directional signs shall be furnished by the requesting organization iU
l~ifi~llct!~~i~~I!~~~~.N
7. Installation and Maintenance
a. The City will install all signs covered by this policy and be reimbursed III
~
/:2-~
SUBJECT:
COUNCIL POLICY
CITY OF CHULA VISTA
POLICY
NUMBER
EFFECTIVE
DATE
PAGE
3 of 3
ADOPTED BY:
I DATED:
b. Routine preventative maintenance (as received by official signs) will be
performed by the City at no extra charge. If at any time this ti~~ signs are
found to have deteriorated beyond the point where maintenance can provide an
acceptable appearance, the Superintendent of Streets shall remove the sign and
notify the owner. If the owner elects to furnish a replacement sign, he shall do
so within thirty ~~9~days after notification and shall reimburse the City ef il:!t
!~~;*~ton of such sign by pre-payment of a $19.99 serviee eftiHge 111l~i:iR!l9
c. Any sign damaged or lost by accident or malicious conduct shall be replaced at
no cost to the City. No service charge shall be required III this case.
d. Should a place of assembly move to a new location, any public service
directional Signs required for a new location shall be considered as new Signs
and subject to the $29.99 ImH~T~qll~t~}i A new application will also be
required in this case.
e. Should a place of assembly cease its operation at a particular location, the
owner of the sign shall notify the Superintendent of Streets within the fifteen
(15) days after said cessation in order that the existing directional signs may be
removed.
8. Procedure
Application. for the installation of dir~ctional si8ns..~~!.i~.e~.?y~~.isR.?li.~..~~~11.?~~~~~
~y~~i~Il~~~I:~~:a~6~:r:::' ~~~IQ~a~~!~!~~I!~~lil~l~~~a!~'!;!
~tll~$~!:J;sign legend, and other information showing conformiiYWiih this policy shall
be indicated mtliijlliHMi6l!ipfili€!ifiilWl.
::::::::::::::,::::::::::::::::::::::::::::::::::::::::::::::::::.::;:::::::::::::::::::::.:::K:::::::::::::;:::::;:::':::::::::::::::::
The application will be reviewed and either approved or disapproved, and returned to
the requesting party. Reasons for disapproval will be shown on the returned
application.
The signs shall be delivered to the PlleIie Werlffi D6flartHieRt m9A~:~~I~I!~
~~!~~~~ii~lli~~~;~~ ~~~t :::~l ~~u~:p~:~:~ ~:~f~::i~~l~;~~~i~i~~C~O:;:
followingtiieapprovafofiiie application; upon receipt of the signs and deposit !ii~~~~
1l~1l~~~Il~~(~~ the installation shall be ordered if all the above conditions have been
met.
)..2~ ?
COUNCIL AGENDA STATEMENT
Item / J
Meeting Date 11/14/95
ITEM TITLE: II Resolution / (Y/~ '7 Approving Final Map and Subdivision
Improvement Agreement for Chula Vista Tract 88-3A, Eastlake South
Greens, Unit 6.
!J Resolution 18' / / iJ Approving Supplemental Subdivision
Improvement Agreement Requiring Developer to Comply with Certain
Unfulfilled Conditions of Resolutions No. 15200 and 17618 Approving a
Tentative Subdivision Map for Eastlake Greens, and Authorizing the Mayor
to Execute Same.
SUBMITTED BY: Director of Public works' ~
REVIEWED BY: City ManaguQ ~~ (4/5thsVote: YecNoX)
On July 18,1989, by Resolution 15200 fJrnib;;A), the City Council approved the Tentative
Subdivision Map for Chula Vista Tract 88-3, Eastlake Greens, On August 16, 1994, by Resolution
17618 (Exhibit B), the City Council approved the amended tentative map for Eastlake South Greens,
Tentative Map 88-3A, and imposed additional conditions of approval. The amendment to the
tentative map covers the area south of Clubhouse Drive which is designated as Eastlake South
Greens. The final map for Eastlake South Greens, Unit 6 is now before Council for approval.
RECOMMENDATION: That Council adopt the resolutions approving the final map, subdivision
improvement agreement and the supplemental subdivision improvement agreement.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
The project is generally located northerly of North Greensview Drive and westerly of Silverado
Drive and consists of76 lots for single family residential units and 4 lots for open space.
The final map for Eastlake South Greens, Unit 6 ofChula Vista Tract 88-3A, has been reviewed by
the Public Works Department and found to be in substantial conformance with the approved
tentative map. Approval of the final map constitutes acceptance by the City, on behalf of the public,
of Green River Drive and a portion of Alisal Lane. Approval of the final map also constitutes
acceptance on behalf of the City the following easements: a 5.5 foot tree planting and maintenance
easement along Green River Drive and Alisal Lane; and a general utility easement over open space
lots A, B, C and D.
13-/
o
Page 2, Item.-!3
Meeting Date 11/14/95
At this time, the City is rejecting the dedication of Lots A, B, C and D for open space and other
utility purposes. However, under Section 66477.2 of the Subdivision Map Act these offers of
dedication remain open and subject to future acceptance by the City. These four open space lots will
be maintained by the Eastlake Homeowners' Association unless the City determines that the level
of maintenance does not meet City standards. IfIwhen the determination is made that the
maintenance of the open space lots need to be taken over by the City, Council would be requested
to accept, on behalf of the City, the offer of dedication. This is standard procedure on all of
Eastlake's final maps because the Eastlake homeowners' association maintains the open space
instead of the City.
The developer has executed a Supplemental Subdivision Improvement Agreement (SSIA) to satisfy
the following conditions:
1. Condition No. 30 of Resolution No. 15200 requires the Developer to enter into an
agreement whereby the developer agrees that the City may withhold building permits for any
units in the subject subdivision if traffic on Otay Lakes Road, Telegraph Canyon Road,
Eastlake Parkway, or East "H" Street exceed the levels of service identified in the City's
adopted thresholds.
2. Condition No. 32 of Resolution No. 17618 requires the Developer to enter into an agreement
to indemnify and hold harmless the City from any claims, actions or proceedings against the
City to attack, set aside, void or annul any approval by the City with regard to the subject
subdivision.
3. Condition No. 33 of Resolution No. 17618 requires the Developer to enter into an agreement
to indemnify and hold harmless the City from any liability for erosion, siltation, or increased
flow of drainage resulting from the subject subdivision.
4. Condition No. 34 of Resolution No. 17618 requires the developer to enter into an agreement
with the City relating to the provision of franchise cable television services.
The Supplemental Subdivision Improvement Agreement also includes a provision for the City to
withhold building permits for lots 21 through 60 that require off site sewer improvements until said
sewer improvements have been installed to the satisfaction of the City Engineer.
At its meeting of July 25, 1995, by Resolution No. 17982, Council approved an Affordable Housing
Agreement for the EastLake development, which included certain milestones to implement the
Affordable Housing Program. The agreement requires the developer to have 112 low income
housing units under significant construction by June I, 1998. However, prior to issuance of a
building permit for the 2,550th unit of the Greens, the developer is required to commence
construction on 160 low income" housing units (the total affordable housing obligation for the
Greens). After issuance of the 2,55Oth unit, the City will have the right to withhold issuance of
additional building permits until significant construction has been completed on the 160 affordable
I;J'.L
<.Ii
Page 3, Itemll
Meeting Date 11/14/95
housing units. With the approval of the 76 units for EastLake South Greens Unit 6, the current
cumulative total of approved units within the Greens is 1,323.
The developer is involved in discussions with the City to clarify the type and timing of park facilities
to be provided with the Eastlake Greens and Eastlake III developments. Staff expects to conclude
the discussions with an agreement to be presented to Council in the near future. A provision wherein
the developer agrees that the City does not waive any rights or requirements relative to park
facilities with approval of this fmal map has been included in the SSIA to protect the City's interests.
All other conditions of approval relative to this final map have been satisfied. The developer has
also executed a Subdivision Improvement Agreement for this map and provided bonds to guarantee
construction of the required public improvements (CV drawings 95-400 through 95-405) within the
subdivision. Also, bonds have been provided by the developer to guarantee the off site sewer
improvements needed to serve lots 21 through 60. The developer has paid all applicable fees and
has provided a bond to guarantee the subdivision monumentation.
A plat is available for Council viewing.
FISCAL IMP ACT: None. All Staff costs associated with processing of improvement plans and
final map will be reimbursed from developer deposits.
Attachments:
Exhibit A - Plat - Eastlake South Greens Unit 6
Exhibit B - Disclosure Statement
Exhibit C - Minutes of 7/1 8/89 (Reso 15200) & Minutes of 8/1 6/94 (Reso 17618)
(f:\home\engineer\agenda\ELG06.SL Y)
File: 0600-80-ELG06
I]'} j;3--t
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UNJT 15
I I
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CHULA VISTA TRACT NO. 88-.JA
EASTLAKE SOUTH GREENS UNIT 6
"
"A 12J4
.
76 75 74
EAST LAKE GREENS PHASE 1D
MAP NO. 12801
LOT 1
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EASTLAKE SOUTH GREENS
UNJT I'JO. 4
22
2J
24
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---
---
EASTLAKE GREENS PHASE 1D
MAP NO. 12801
LOT 1
---
--
-__ 44
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40
-- 45
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--
10-16-95
t:')( Ii I ~ 11"'" " A"
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51822.00
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1HE CITY OF CHUlA VISTA DISCLOSURE STA'IEMENT
You are required to file a Statement of Disclosure of certain ownership or financial Interests, payments, or campaign
contributions, on all mallers which will require discretional)' action on the part of the Oty Council, Planning Commission, and
all other official bodies. The following information must be disclosed:
1. List the names of all persons having a financial interest In the property which is the subject of the application or the
contract, e.g., owner, applicant, contractor, subcontractor, material supplier.
~ct~e. ~~\N'01tl CO.
2. If any person" Identified pursuant to (1) above is a corporation or partnership, list the names of aU IndMduals owning
more than 10% of the shares in the corporation or owning any partnership Interest In the partnership.
bwet' ~<r~,e;:,.
\'-1\Ct~o (~\
3. If any person" identified pursuant to (I) above is non-profit organization or a trust, list the names of any person
serving as director of the non-profit organization or as trustee or beneficial)' or trustor of the trust.
~J(t-
-..--=---.-..........----.-
"
4. Have you had more than S250 worth of business transacted with any member of the Oty staff, Boards, Commissions,
Comm~:;es' and Council within the past twelve months? Yes_ No_ If yes, please indicate person(s):
s. Please identify each and eveI)' person, including any agents, employees, consultants, or independent contractors who
you have assigned to represent you before the City in this maller.
~\\, ()~-r'S'e\M
\\""-'^ M Cl! (" .
~~IVX'P$ - S~ f 0
.
6. Have you and/or your officers or agents, in the aggregate, contributed more than SI,OOO to a Counciimember in the
curren or preceding election period? Yes_ No_ If yes, state which Councilmember(s):
· · · (N01E: Attach additional pages as necessaIy) · · .
Date:
Signature of contractor/applicant
Print or type name of contractor/applicant
" Pcnoll is defi11d. as: "AII)' indivUJua~ /inn, co-parrnmhip, jow 1.'''tUI<, .. <x/anon, It()CUtI club, frOI/,,,,4/ mgatUzation, corporanon, alaI<, lIW1, r<cd-.I)'IIdica<<,
dJis Ilnd Q/9' other co~, city and cowlD); city municipality, disrricl, or otha political IUbdivision, or any OM ~up or combUuuion octing AS II uniL"
EX H I a ,,- liB"
~' / j:;~-
RESOLUTION NO.
IO/~7
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING FINAL MAP OF CHULA VISTA
TRACT 88-3A, EASTLAKE SOUTH GREENS UNIT 6,
ACCEPTING ON BEHALF OF THE PUBLIC THE PUBLIC
STREETS DEDICATED ON SAID MAP, REJECTING ON
BEHALF OF THE CITY OF CHULA VISTA THE OPEN
SPACE LOTS GRANTED ON SAID MAP, ACCEPTING THE
EASEMENTS GRANTED ON SAID MAP WITHIN SAID
SUBDIVISION, AND APPROVING SUBDIVISION
IMPROVEMENT AGREEMENT FOR THE COMPLETION OF
IMPROVEMENTS REQUIRED BY SAID SUBDIVISION, AND
AUTHORIZING THE MAYOR TO EXECUTE SAID
AGREEMENT
The City Council of the City of Chula vista does hereby
resolve as follows:
NOW, THEREFORE, BE IT RESOLVED that the city Council of
the City of Chula vista hereby finds that that certain map survey
entitled CHULA VISTA TRACT 88-3A, EASTLAKE SOUTH GREENS UNIT 6, and
more particularly described as follows:
Being a subdivision of Lot 6 of Chula vista Tract No. 88-
3A, Eastlake South Greens Phase 2 and 3, in the City of
Chula Vista, County of San Diego, State of California,
according to the Map Thereof No.____ filed in the Office
of the County Recorder of said San Diego County
1995, as F/P 95-
Area: 17.384 acres
Numbered Lots: 76
No. of Lots: 80
Lettered Lots: 4
is made in the manner and form prescribed by law and conforms to
the surrounding surveys; and that said map and subdivision of land
shown thereon is hereby approved and accepted.
BE IT FURTHER RESOLVED that said Council hereby accepts
on behalf of the public the public streets, to-wit: Green River
Drive and a portion of Alisal Lane, and said streets are hereby
declared to be pUblic streets and dedicated to the public use.
BE IT FURTHER RESOLVED that Lots A, B, C and D are hereby
rejected for Open Space.
BE IT FURTHER RESOLVED that said Council hereby accepts
on behalf of the City of Chula vista the easements with the right
of ingress and egress for street tree planting and maintenance,
general utility easements over Open Space Lots A, B, C and D, all
as granted and shown on said map within said subdivision, subject
1
/)/1~/
to the conditions set forth thereon.
BE IT FURTHER RESOLVED that the City Clerk of the city of
Chula vista be, and she is hereby authorized and directed to
endorse upon said map the action of said Council; that said Council
has approved said subdivision map, and that said public streets are
accepted on behalf of the public as heretofore stated and that said
lots are dedicated for Open Space and other public uses and are
rejected on behalf of the City of Chula vista and that those
certain easements with the right of ingress and egress for the
construction and maintenance of street tree planting, as granted
thereon and shown on said map within said subdivision is accepted
on behalf of the City of Chula vista as hereinabove stated.
BE IT FURTHER RESOLVED that the City Clerk be, and she is
hereby directed to transmit said map to the Clerk of the Board of
Supervisors of the County of San Diego.
BE IT FURTHER RESOLVED that that certain Subdivision
Improvement Agreement dated the day of , 1995, for
the completion of improvements in said subdivision, a copy of which
is attached hereto and by reference made a part hereof, the same as
though fully set forth herein be, and the same is hereby approved.
BE IT FURTHER RESOLVED that the Mayor of the City of
Chula vista be, and he is hereby authorized and directed to execute
said agreement for and on behalf of the City of Chula vista.
Presented by
city
John P. Lippitt, Director of
Public Works
C:\rs\ELSGUn6.fm
2
/3,,1 -.;z
ITEM 13 .A.
B.
13A
Resolution 18109 - Approving Final Map of
Tract 88-3A, Eastlake South Greens unit 6,
Accepting on behalf of the Public the Public
Streets dedicated on said Map, Rejecting on
behalf of the City the Open Space Lots granted
on said map, Accepting the Easements Granted
on said Map within said Subdivision, and
approving Subdivision Improvement Agreement
for the Completion of Improvements required by
said SUbdivision, and Authorizing the Mayor to
Execute said Agreement
Resolution 18110 Approving Supplemental
Subdivision Improvement Agreement requiring
Developer to comply with certain unfulfilled
conditions of Resolutions Nos. 15200 and 17618
approving a Tentative Subdivision Map for
Eastlake Greens, and Authorizing the Mayor to
Execute same
THE AGREEMENTS ARE BEING WITHHELD UNTIL THE DEVELOPER
PROVIDES AN APPROPRIATE LEGAL DESCRIPTION TO ACCOMPANY
THE SUBDIVISION AND SUPPLEMENTAL AGREEMENTS.
/3fJ- 3
RESOLUTION NO. / ff/ /0
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING SUPPLEMENTAL SUBDIVISION
IMPROVEMENT AGREEMENT REQUIRING DEVELOPER TO
COMPLY WITH CERTAIN UNFULFILLED CONDITIONS OF
RESOLUTIONS NO. 15200 AND 17618 APPROVING A
TENTATIVE SUBDIVISION MAP FOR EASTLAKE GREENS,
AND AUTHORIZING MAYOR TO EXECUTE SAME
WHEREAS, the developer
Eastlake South Greens, unit 6
Subdivision Improvement Agreement
conditions:
for Chula vista
has executed a
(SSIA) to satisfy
Tract 88-3A,
Supplemental
the following
1. Condition No. 30 of Resolution No. 15200 requires
the Developer to enter into an agreement whereby
the developer agrees that the City may withhold
building permits for any units in the subject
subdivision if traffic on Otay Lakes Road,
Telegraph Canyon Road, Eastlake Parkway, or East
"H" Street exceed the levels of service identified
in the city's adopted thresholds.
2. Condition No. 32 of Resolution No. 17618 requires
the Developer to enter into an agreement to
indemnify and hold harmless the city from any
claims, actions or proceedings against the City to
attack, set aside, void or annul any approval by
the City with regard to the subject subdivision.
3. Condition No. 33 of Resolution No. 17618 requires
the Developer to enter into an agreement to
indemnify and hold harmless the city from any
liability for erosion, siltation, or increased flow
of drainage resulting from the subject subdivision.
4. Condition No. 34 of Resolution No. 17618 requires
the developer to enter into an agreement with the
city relating to the provision of franchise cable
television services.
WHEREAS, the Supplemental Subdivision Improvement
Agreement also includes a provision for the City to withhold
building permits for lots 21 through 60 that require off site sewer
improvements until said sewer improvements have been installed to
the satisfaction of the City Engineer.
IJ!J-/
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NOW, THEREFORE, BE IT RESOLVED the City Council of the
City of Chula vista does hereby approve Supplemental Subdivision
Improvement Agreement requiring Developer to comply with certain
unfulfilled conditions of Resolutions No. 15200 and 17618 approving
a Tentative Subdivision Map for Eastlake Greens.
BE IT FURTHER RESOLVED that the Mayor of the City of
Chula vista is hereby authorized and directed to execute said
Agreement for and on behalf of the City of Chula vista.
Presented by
ved as
~
OJYY
rd, City
John P. Lippitt, Director of
Public Works
Bruce M. Bo g
Attorney
C:\rs\ESGunit6.fm
1;J(f ~ 02-
.h~
Council Agenda statement
item Title:
Meeting Date:
Ifr/ II
Resolution - Alcohol and Beverage Control
(ABC) Determination approving an
application for an ABC license due to
public convenience and necessity.
item:4
11_14 -95
Submitted by:
Reviewed by:
Richard Emerson, c~'e of Police
ci ty Manager J~ b _
4j5ths ote: () Yes
(X) No
Lucky's store at 690 Third Avenue is moving across the
street and under the ABC rules needs a new license
application. Resolution #17989, a copy of which is
attached, reflects the new procedure the Council has
adopted requiring that we report the determination on the
consent agenda. This report complies with that procedure.
Recommendation:
That Council approve the transfer of Lucky stores
alcohol beverage license to 720 Third Avenue.
Boards and Commissions Recommendation:
None. Not applicable.
Background:
As a result of legislative law changes enacted,
Business and Professions Code Section 23958.4 has
authorized the City to determine whether an alcoholic
beverage application meets public convenience and
necess~ty notwithstanding a determination of an undue
concentration of licenses. City of Chula Vista Resolution
#17989 instructs the City to determine public necessitr
and convenience, and report back to the city Council w~th
its findings. The Lucky Supermarket located at 690 Third
Avenue, is moving their store across "J" street, to 720
Third Avenue, requiring them to submit for a new Alcoholic
Beverage License. The old license at 690. Third Avenue
will be inactivated. The new license will not change the
status of the over-concentration because it replaces their
previous license.
summary:
An ABC license is essential to the proper economic
functionalitr of a supermarket, the lack of which would
deprive the ~mmediate community of a needed grocery
outlet.
Fiscal impact:
A $250 fee is collectible by the City from the
applicant to recover costs of processing of application.
;'i-/ )'1-:<
. .
RESOLUTION NO. 17989
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
DELEGATING THE CITY'S AUTHORITY TO DETERMINE PUBLIC CONVENIENCE
AND NECESSITY FOR ALCOHOLIC BEVERAGE LICENSING TO THE PQLICE
DEPARTMENT FOR A PERIOD OF SIX MONTHS.
WHEREAS, the State Legislature in 1994, enacted Business and Profassions Code
Section 23958.4~ authorizing tha City to determine whether an alcoholic beverage application
meets public convenience and necessity notwithstanding a determination of an undue
concentration of licenses; and
WHEREAS, the City Council may delegate the duties of determination to a board,
individual, or department; and
WHEREAS, the determination of whether an application meets public convenience and
necessity is based on, among other things, crime statistics and the ratio of licenses to
population in the area; and
WHEREAS, the Council tinds that the proposal is categorically exempt from
environmental review as a 15061 (b)(3I, General Rule exemption; and
WHEREAS, the City Council find., that the Police Department has the ability and
resources to determine incidence of crime and the effect of undue concentration of liquor
stores and/or bars.
NOW, THEREFORE, BE IT ReSOLVED by the City Council of the City of Chula Vista as
follows:
1. That the above recitations are true and correct.
2. For a period of six months and using such due process as tha City Attorney
_ determines is required and appropriate, the Police Chief is authorized to determine whether
an application for an alcoholic beverage license should be epproved based on public
convenience and necessity notwithstanding a determination that there is an undue
concentration of licenses. The Police Department shall provide ABC, the Applicant, and the
City Council with written Notice of Determination, and in the case of new applications, report
said Notice to the City Council on their next available agenda as a consent item, during the
trial period.
3. That Applicant may appeal the Police Chief's determination to the City Council
by filing a written appeal with the City Clerk within ten days of mailing of notice.
4. That the City Council will send Applicant and Department of Alcoholic Beverage
and Control Notice of the City Council final determination.
5. That staff shall return to the Council prior to the expiration of the six-month
period with a report and recommendation regarding the permanent treatment of this matter.
It/-- .3
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Resolution No. 17989
Page 2
6. That Department of Alcoholic Beverage and Control will be bound by the City's
decision in those cases authorized by Business and Professions Code Section 23958.4.
I!LOL;Pd~
--......
^
b'j2
Presented by
Richard P. Emerson
Chief of Police
Bruce M. Boogaar
City Attorney
J~'i IlL; - b
i-"
Resolution NO.1 7989
Page 3
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula
Vista, California. this 1st day of August, 1995, by the following vote:
NAYES:
Council members: Alevy, Moot, Padilla, Rindone, Horto~
Councilmembers: None
AYES:
ABSENT:
Councilmembers: None
ABSTAIN:
Councilmembers: None
ATTEST:
~ 0 aaUd
Beverly . Authelet. City Clerk
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO 55.
CITY OF CHULA VISTA
I. Beverly A. Authelet. City Clerk of the City of Chula Vista, California. do hereby certify that
the foregoing Resolution No.1 7989 was duly passed, approved. and adopted by the City
Council at a regular meeting of the Chula Vista City Council held on the 1 st day of August,
1995.
Executed this 1 st day of August, 1995.
7io4 Q t2J~a~J
Beverly . Authelet, City Clerk
/(-3
RESOLUTION NO.
/8// /
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ACKNOWLEDGING NOTIFICATION OF THE
POLICE'S CHIEF'S DETERMINATION REGARDING THE
LUCKY'S STORE APPLICATION FOR AN ALCOHOLIC
BEVERAGE CONTROL LICENSE
WHEREAS, Lucky's Store at 690 Third Avenue is moving
across the street and under the ABC rules needs a new license
application; and
WHEREAS, in accordance with Resolution No. 17989, the
Council has adopted a new procedure requiring that the Police
Department report the determination of the Police Chief that an
alcoholic beverage application serves a public convenience and
necessity notwithstanding a determination of an undue concentration
of licenses.
NOW, THEREFORE, BE IT RESOLVED the City Council of the
City of Chula vista does hereby acknowledge notification of and
concurs with the Police Chief's determination regarding the Lucky'S
Store application for an ABC license.
Richard Emerson, Chief of
Police
Bruce M.
Attorney
d, C ty
Presented by
i(da
C:\rs\abc.res
/ '1- 7
COUNCIL AGENDA STATEMENT
Item: g
Meeting Date: 11/l4/95
SUBMITTED BY:
Report: Supporting Concept of American Legion Building Expansion and
the Proposal for a Cost-Sharing Agreement between the City of Chula Vista
and the American Legion for Parking Lot Renovation
Director of Parks and Recreati~
Ci~ M>Mg'0<1 ~ (~,... Vo'" v" _ No .xl
ITEM TITLE:
REVIEWED BY:
The American Legion Post 434 has requested permission to construct a 2,300 square foot room
addition (at their expense) on the north side of their existing building at Eucalyptus Park (see
Attachment "A" -locator map). The addition will serve as the Legion Women's Auxiliary building.
In reviewing the plans, the Department expressed concerns about the impact the addition would
create on the existing parking lot. The parking lot has 54 parking stalls and currently accommodates
youth baseball and adult softball leagues and the American Legion members. Staff believes that if
the American Legion facility was expanded, there will be insufficient parking space to accommodate
these multiple uses.
In response to the Legion's proposal, staff is recommending the following: the American Legion
would build a room addition to the existing building for the Women's Auxiliary; the American
Legion renovate the parking lot and enter into a cost-sharing agreement with the City. This report
discusses the proposed addition and recommendations for the City's involvement in th,e project on
a cost-sharing basis.
RECOMMENDATION: That the Council:
1. Conceptually approve a plan whereby the American Legion would build an addition to the
site which would house the Women's Auxiliary; and
2. Conceptually approve a plan whereby the American Legion would renovate the existing
parking lot; and
3. Direct staff to negotiate a cost-sharing agreement with the Legion for the renovation of the
parking lot, and return with a proposed CIP identifying the scope of work of the project and
funding sources for Council consideration; and
4. Direct staff to negotiate an amended lease agreement with the American Legion for a lease
of the property and building for 17 years with language acknowledging the Legion will
achieve maximum build-out once the Women's Auxiliary addition is complete; and return
to the Council for consideration of the amended lease agreement.
[NETWORK:JF-A113-Amlegprk.A13-0ctober 10, 1995]
15-/
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Item: 6'
Meeting Date: 11114195
BOARDS1COMMISSIONS RECOMMENDATION: At the September 21, 1995 meeting (minutes
are Attachment "B"), the Parks and Recreation Commission endorsed the Department's
recommendation to approve the American Legion expansion, cost-sharing of the parking lot
renovation and amend the American Legion Lease Agreement.
DISCUSSION:
Background: The American Legion has occupied approximately 1.6 acres in Eucalyptus Park since
1941. In 1955, the City Council approved a 20-year lease agreement. In 1975, the lease was
extended for 10 years, through June 30, 1985 and subsequently extended to June 30, 1986.
In June of 1986, the American Legion's lease was on a month-to-month basis. On February 27,
1990, the Council extended their lease for two years (Minutes are Attachment "C"). On November
20,1990, Council authorized staff to negotiate an agreement with the Legion to build a new facility.
As part of the negotiations, the City extended the lease for three additional years. Due to financial
constraints, the Legion abandoned the idea of constructing a new facility and decided to re-direct
their funds to a less costly building renovation program. During this extension period, the Legion
completed their renovation project. The existing lease, approved November 10, 1992 (Minutes are
Attachment "D"), is for a lO-year period with an additional 10-year option to renew.
Although the American Legion does not pay the City directly, the existing lease agreement requires
the American Legion to support Chula Vista youth organizations at no less than $6,000 per year.
The agreement also required the Legion to invest $100,000 in Legion funds in structural and building
improvements within one year of November 1, 1993. In addition, the lease agreement requires the
Legion to maintain an insurance policy which provides for earthquake peril on the building until the
most recent improvements to the existing building were completed.
American Legion's Request for Expansion:
The American Legion has complied with all of the above requirements and has now brought forth
a request to build a 2,300 square foot Women's Auxiliary addition to the north of their existing
building. Over the years, this area has served as a horseshoe pit and informal social area for the
Legionnaires and has not been used by general park users.
The proposed 2,300 square foot addition will have an approximate 1,500 square foot assembly room.
Section 19.52, Off-Street Parking and Loading of the Chula Vista Municipal Code establishes a
standard for off-street parking for building additions. Section 19.62.050.10 requires one parking stall
per 50 square feet of assembly room or 30 additional parking stalls. The current parking lot has 54
parking stalls and should the Council approve the Legion's request for an expansion for the
Women's Auxiliary, a redesign of the parking lot will increase the total parking spaces by 36 parking
stalls.
Staff has evaluated the following options that may assist the Council in making a determination to
support the Legion's request.
[NETWORK:JP-Al13-Amlegprk.A13-0ctober 10, 1995]
2
/5',,2.
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Item: :.;:;
Meeting Date: 11/H/95
Option #1 . Enter into a cost sharing arrangement: Over the past few months, staff from Parks
and Recreation and Planning have met with the Legion to determine a solution that would result
in a mutual benefit to both parties. A tentative agreement has been reached to share in the cost of
improving and expanding the existing parking lot. A conceptual parking lot plan has been developed
by staff that could result in an increase of parking stalls from 54 to 90. In negotiating a cost-sharing
scenario, the Legion was agreeable for the City to pay 60%, or approximately $27,600, and the
Legion pay 40%, or $18,400 of the overall estimated $46,000 project amount. This percentage
breakdown was based on program usage of the parking lot.
Benefits of Proposed Cost-Sharing:
Despite the fact that the City has made major strides in renovating its older parks, funding
constraints have continued to preclude improvements to the parking lots. Eucalyptus Park is a prime
example of where this has occurred. In a cost-sharing option, the City (at a reduced cost) would be
able to renovate and expand a very old parking lot that is subject to poor traffic circulation and in
need of major pothole repairs. Recent inspection of the parking lot by Public Works revealed that
a large area 50' x 60' needs to be repaired. This includes new base material added and recompacted
and a 3" asphalt cement overlay.
American Legion's Proposed Condition(s) to Cost-Sharing Agreement: It is important to note that
the Legion has a condition attached to the disbursement of their funds. Specifically, the American
Legion believes an amendment to their agreement must be achieved before a cost-sharing
partnership is formed. Their existing lease agreement calls for a lO-year lease (ending November
1, 2002) with a lO-year option to renew, subject to City Council approval. They are presently in
their third year of their initiall0-year period. The Legion membership is opposed to any financial
expenditure unless the term of the agreement is amended to a 17-year agreement. The 17-year
calculation was based on the seven years remaining in their initial lO-year term plus the lO-year
renewal option, for a total of 17 years. The Legion wants the option language eliminated.
Option #2 - Delay consideration: The benefits to this approach involve the ability of staff to fully
evaluate the overall opportunities and constraints of Eucalyptus Park. This would facilitate a master
planning approach that is not constrained by existing facilities.
The downside to the approach is the reality that there are existing Legion facilities that will remain
intact for years to come. Specifically, the American Legion does not have plans to locate their
building elsewhere in the City, particularly after they have invested over $100,000 in building
improvements in 1993. Finally, the location of the proposed expansion area will pose no negative
impacts to existing or proposed park uses. As noted earlier, the proposed area is in a confined
location to the north of their building and used for horseshoe activity. Therefore, staff doesn't
believe this option is reasonable.
Option #3 - The Legion Covers 100% of the Costs: This option is not supported by the Legion
because the parking lot has extensive public use by youth leagues, Parks and Recreation programs
and the general public.
[NETWORK:JF-Al13-Amlegprk.A13-0ctober 10, 1995]
3
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Item:
Meeting Date: 11/H/95
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Option #4 . Deny the request: This option is not supported by the Legion or by staff. The Legion
has been a good neighbor over the years and staff believes that a win-win solution can be achieved
through a negotiation process.
Summarv:
The Legion's request appears reasonable and staff is not opposed to supporting an amendment to
the agreement. However, if there is support for the building addition, there should be a caveat in
the agreement that acknowledges the Legion has reached its maximum build-out capacity, thereby
restricting any future expansion.
If approval is granted for the Women's Auxiliary addition, the Legion will be obligated to process
their plans through the regulatory City process for a building addition. This process would include
going through an administrative Conditional Use Permit process, an administrative design review
process, obtaining and paying for building permits, etc.
FISCAL IMPACT: Should the Council approve the requested building addition for the American
Legion, and the renovation of the parking lot, the City cost will be limited to the parking lot
renovation, on the basis of a 60/40 cost share with the American Legion. The total cost of the
parking lost renovation would be $46,000. The City's cost, as 40% under the cost-sharing
arrangement, would be $27,600. Staff will return to the Council with funding options i.e., Park
Acquisition and Development (PAD) fund reserves; when a proposed cost-sharing agreement and
lease agreement amendment are negotiated.
Attachments: "A"-
"B"_
"CII_
"Dlt_
Locator Map
Parks and Recreation Commission Minutes of September 21, 1995
City Council Minutes of February 27, 1990
City Council Minutes of November 10, 1992
[NETWORK.:JF-Al13-Amlegprk.A13-0ctober 10, 1995]
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ATTACHMENT Bl
CITY OF CHULA VISTA PARKS AND RECREATION COMMISSION
September 21, 1995
PAGE 2
G. The Commission reviewed the Recreation Division attendance figures for the fourth
quarter and the totals for the fiscal year 1994/1995. Commissioner Sandoval asked
if the Recreation Division could keep track of the waiting list for recreation classes.
5. REPORTS FOR INFORMATION ONLY
A. 1995 Department Workshop
1. Save money on watering
a. Director Valenzuela discussed highlights of the Departmentworkshop
including areas to cut back on water and money saving ideas for the
Department.
2. The Commission agreed to move this item to next month in order to discuss
suggestions and vote on a final work plan.
6. ACTION ITEMS
UNFINISHED BUSINESS
A. Otay Gymnasium Sub-Committee - Vote on New Chairperson
Motion to appoint Steve Palma as Chairman for the Otay Gymnasium Sub-
Committee.
MSUC Sweetwood I Radcliffe 7-0.
Motion to appoint Catherine Radcliffe as Vice-Chair for the Otay Gymnasium Sub-
Committee.
MSUC Palma I Sandoval 7-0.
NEW BUSINESS
Motion to move the agenda to item D.
MSUC Helton I Palma 7-0.
D. American Legion Parking Lot Renovation
1. Deputy Director of Parks, Jerry Foncerrada, discussed the proposal for the
Department to share in the cost of the American Legion parking lot
renovation with the American Legion.
2. The American Legion Chairman, Bob McCauley, explained to the
Commission that the American Legion has money to build an expansion for
the women's auxiliary building. The Legion needs to share in the cost of the
parking lot renovation in order to extend the lease and build the expansion.
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ATTACHMENT 82
CITY OF CHULA VISTA PARKS AND RECREATION COMMISSION
September 21, 1995
PAGE 3
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Mr. McCauley also presented the Commission with a check to pay for 33
children to play in intramural sports.
3. Bill Ayers of the American Legion discussed the American Legion lease
extension. Mr. Ayers explained that part of the new agreement requires the
Legion to give at least $6,000 to Chula Vista groups.
Motion to approve stall's recommendation to renovate the expansion ofthe
American Legion parking lot and amend the lease agreement with the
American Legion for a lease of the property and building for 17 years.
MSUC Helton / Dennison 7-0.
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A. Revision of the Park Rules Ordinance
1. Deputy Director Foncerrada discussed the new and amended ordinances with
the Commission.
Motion to approve the changes and additions to the Park Rules Ordinance.
MSUC Helton / Dennison 7-0.
B. City Parks and Facilities Tour Schedule
The Commission scheduled the parks and facilities tour for October 14, 1995 at 8:30
a.m. The Commission will meet in the Parks and Recreation Conference Room.
The October Commission meeting was rescheduled due to the Commission banquet
conflict. The Commission will meet on October 26 in the Council Conference Room
at 5:30 p.m. for the Commission meeting and then at 7:00 p.m. for the Otay Ranch
workshop.
7. COMMUNICATIONS
A. Written Correspondence
1. Carmen Sandoval - Girl Scout Leader
The Commission reviewed an article on Commissioner Sandoval regarding
her leadership in the Girl Scouts.
2. Summary of Commission Activities for FY 1994/95
The Commission reviewed the Commission Activities and commented that
next year they would like to review the activities in May and discuss and vote
on the items to be placed in the summary.
3. Commission Roster
The Commission reviewed and corrected the Commission Roster.
/5-?
MINUTES
2
February 27, 1990
ATTACHMENT C
Sb. Letter requesting the placement of excessive space rent charges and the need for a relocation parle
in Chula VISta on the agenda. Rev. R. C. Flaugher, Chairman, Mobile Owners Political Action Committee.
Recommended that the Council accept Rev. Flaugher's written communication and direct staff to inform
him that: 1. Municipal Code Chapter 9.50 provides an arbitration process for disputed mobilehome park
rent increases. One mobilehome park is in arbitration, and the efficiency of the Municipal Code chapter
is being monitored. 2. Staff and the Housing Advisory Committee, which originated as the Mayor's
Relocation Mobilehome Task Force, continue to analyze potential relocation park sites and alternative
solutions to the development of the relocation park. Pulled from the Consent Calendar
5c. Letter of resignation from the International Friendship Commission - Kelley I. Brennan, 175
Alameda Boulevard, Coronado, CA - Recommended that Kelley Brennan's resignation from the International
Friendship Commission be accepted with regret and that a letter of appreciation be sent to Ms.
Brennan.
6. ORDINANCE 2356 ADOPTING nm EASTLAI<E m DEVELOPMENT AGREEMENT (second
readinsrl . (Deputy City Manager)
7. ORDINANCE 2357 ADOPTING nm EAS11.AI<E GREENS DEVELOPMENT AGREEMENT (second
readinsrl . (Deputy City Manager) . Pulled from Consent Calendar
8. ORDINANCE 2361 ADOPTING nm SUNBOW IT SPA PLANNED COMMUNITY DISTRICT
REGULATIONS (second readinsrl - (Director of Planning) Councilman Malcolm abstained from voting.
9. RESOumON 15527 SECOND MODIFICATION TO nm AGREEMENT BETWEEN nm CITY OF
CHULA VISTA, ROBERT BElN, WIWAM FROST & ASSOCIATES AND BAlDWIN VISTA ASSOCIATES, L.P. _
Additional work is needed by RaF over and above the original scope-of-work for the preparation of a
Project Team Alternative, up to three ElR alternatives and a Public Participation Program. Staff
recommends approval of the resol ution. (General Manager-Otay Ranch Project)
10. RESOLUTION 15453 APPROVING LEASE AG.REEMENT BETWEEN nm orr OF CHULA VISTA
AND nil! AMERICAN LEGION POST NO. 434, INC. FOR nil! FAOUrr LOCATED AT EUCALYPTUS PARK,
AND AUTIiORIZlNG nm MAYOR TO EXECUTE SAID AGREEMENT. Agreement terminates all former
agreements with the American Legion and enters into a new lease for a two-year period. Staff
recommends approval of the agreement. (Assistant City Manager)
11. RESOLUTION 15528 RESONDING RESOLUTION 15458 AND RESOLUTION 15522 AND
APPROVING A REVISED AGREEMENT BETWEEN nm orr OF CHULA VISTA AND nil! COUN1Y OF SAN
DIEGO PROVIDING FOR ACQUISITION OF LEASEHOLD INTERESTED PROPERrr LOCATED AT 263 FIG
AVENUE AND APPROVING AN AMENDED LEASE AGREEMENT BETWEEN nil! CITY OF CHULA VISTA
AND nil! COUN1Y OF SAN DIEGO FOR OFFICE SPACE FOR nm FIRST DISTRICT SUPERVISOR. Staff
recommends approval of the resolution. (Assistant City Manager)
12. RESOLUTION 15529 AMENDING FY 1989-90 BUDGET BY PROVIDING FOR STAFFING FOR nm
OTAY RANCH PROJECT AND APPROPRIATING FUNDS . When discussions were first held with the
Baldwin Company about a joint City/County team to review the Otay Ranch project, initially the City
intended to use contract employees. It has since been determined that it would be more effective to use
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Minut~s
November 10, 1992
Page 2
ATTACHMENT D
PERMITS FOR CONSTRUCTION IN TIlE TELEGRAPH CANYON SEWER BASIN (second readin!!: and
adootion) - In compliance with the Telegraph Canyon Sewer Basin Monitoring and Gravity Basin Usage
Agreement between the City and EastLake Development, the City entered into a contract with Willdan
Associates for preparation of the Telegraph Canyon Sewer Basin Improvement and Financing Plan. This plan
and a subsequent addendum provide recommendations for sewer system improvements needed to
accommodate ultimate wastewater flows in the basin and proposes a fee of $184 per Equivalent Dwelling
Unit (EDU) to finance the construction of these improvements. This is a one time fee paid when building
pennits are taken out and is not an ongoing fee. Staff recommends Council place the ordinance on second
reading and adoption. (Director of Public Works)
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7. RESOLtmON 16861 APPROVING A LEASE AGREEMENT Willi TIlE CHULA Vlst"A AMERICAN
LEGION POst" NUMBER 434 INC., AND AUTIiORlZlNG TIlE MAYOR TO EXECUTE SAME - At the meeting
of 11/3/92, Council, in reviewing the Agenda Report and Lease of the aforereferenced item, directed certain
changes to the lease, the most significant of which is to provide that the City dedicate the proceeds of any
insurance policy paid for by the Legion to find alternate housing for the Legion if the building which is the
subject matter of the lease is destroyed (i.e., loss of greater than 50% of replacement value). Staff
recommends approval of the resolution. (Director of Parks & Recreation) Continued from the meeting of
11/3/92.
Councilman Malcolm stated that there were no clearly stated remedies in the lease if the Legion failed to
invest the $100,000. He felt everyone should have an understanding of what the remedies would be if the
investment was not made, and spelled out in the lease. He would prefer two 5.year options rather than one
1O.year option. The five year options would give the City more flexibility if the property was needed in the
future for park expansion. He questioned whether toxics would be utilized on the property as it was not
indicated in the lease. Page 1, Condition 3, stated the investment would be "no more" than $100,000 and
he felt it was misleading, it was the Council's intent that the American Legion should invest "at least"
$100,000. It was his interpretation of the lease that the City could only remove the Legion at the end of
the 10-year lease or the 10-year option.
City Attorney Boogaard recommended default of the lease and eviction if the Legion failed to invest the
$100,000. He referred to Exhibit C which listed the improvements to be made but only to the extent of
$100,000. He disagreed with that interpretation of the language and felt the City had the right to tenninate
the lease with the Legion any time after the first ten years.
Robert L. McCauley, representing the American Legion, stated they had initially wanted a 25 year lease but
had agreed to a 10-year lease with a 10.year option. They felt they had to have the 20 years for their
$100,000 investment. It was his understanding that the City could tenninate the lease only after the initial
10.year period or after the 10-year option.
Mayor Nader stated it was his understanding that it was a 10'year lease with a 10.year option also.
City Attorney Boogaard stated that if Council wanted two 10-year tenns the lease would have to be revised.
Jess Valenzuela, Director of Parks and Recreation, supported Mr. McCauley and stated it was also his
understanding during negotiations that the lease was a lO-year tenn with a 10-year option.
City Attorney Boogaard recommended that the language be changed to state 'if during the tenth year the
landlord determines that the premises are needed......
Mayor Nader stated that was the Council's intent if not their unanimous desire and suggested that the
clarification recommended by the City Attorney be incorporated.
RESOLtmON 16861, AS AMENDED BY TIlE CITY ATTORNEY, OFFERED BY COUNCILMAN R1NDONE,
reading of the ten was waived.
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COUNCIL AGENDA STATEMENT
Item J J
Meeting Date 11/14/95
SUBMITTED BY:
Public hearing to form Open Space Maintenance District No. 33,
Broadway Business Home Village
Ordinance ~b.51 amending Section 17.07 of the Chula Vista Municipal
Code allowing use of Open Space for parking lot maintenance.
Director of Public wor~
CitYManag~~~
(4/5ths Vote: Yes_NoX)
ITEM TITLE:
REVIEWED BY:
On October 24, 1995, by Resolution No. 18085, the City Council approved the Engineer's
report on the proposed Open Space District No. 33, Broadway Business Home Village and set
November 14 and 21, 1995, as the dates for the public hearings on the proposed formation.
This meeting shall afford all interested parties the opportunity to hear and be heard.
Mter the second public hearing, Council may take action on formation of the Open Space
District unless a third public hearing is set for December 12, 1995, at 6:00 p.m.
RECOMMENDATION: That Council
1. Open the hearing, take testimony and close the hearing.
2. Place ordinance on first reading.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
Background
The Business Home Village project will consist of commercial use on the first floor level and
residential use on the second and third floor levels. Open Space District No. 33 (OSD-33),
Broadway Business Home Village is located on the west side of Broadway between J Street
and K Street. OSD-33 consists of the following improvements:
1. parking area maintenance;
2. trellis/planters;
It ,/
Page 2, Item
Meeting Date 11/14/95
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3. sidewalk sweeping;
4. tree service;
5. back screen wall;
6. shrubs;
7. irrigation;
8. ground covers;
9. vmes;
10. miscellaneous planting;
II. annual color;
12. miscellaneous;
The Engineer's report (attached) which was approved by Resolution 18085 includes the
following:
I. plans and specifications for the improvements;
2. an estimate of the costs of the improvements;
3. a diagram for the assessment district;
4. an assessment based on the improvement costs.
The project site is within the Southwest Redevelopment Project Area and is currently owned
by the City. The Developer has the right to acquire the site in a maximum of two (2)
acquisition phases, per the development agreement. This mixed-use (commercial/residential)
project will be built in three (3) construction phases with 6 business homes in Phase I Unit I,
12 business homes in Phase I Unit 2, and then 18 business homes in Phase 2, the final phase.
Staff recommends that the assessment be set based upon the highest cost per equivalent
dwelling unit (EDU) scenario considering each of the construction phases. If only the first 6
business homes are constructed, the assessment is estimated at $1029.00 per EDU/year. After
successful development of all phases, the assessment will be lowered to approximately $690.00
per EDU. Although $690/EDU is a high assessment amount for a residence, it is within the
range of assessments for existing commercial parcels in similar open space districts:
Average Parcels
Town Center $550/Parcel 81
Bay Boulevard $3,000/Parcel 4
Typically, the assessment amount is higher for districts consisting of fewer units maintaining
manicured landscaping such as annual color plantings, vines and trellises and parking lots
including sweeping. This type of maintenance is proposed for this district.
The amount collected against the assessment will not be included on the tax roll until
December 1996. Any maintenance necessary prior to that date will be the responsibility of the
developer as no money will have been collected until then. Staff recommends the amount
collected for FY 96-97 be $686.00 per EDU based on Phase I, Units I & 2 costs spread
among 18 business homes. Both units are included based on schedule information provided
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Page 3, Item ) (,
Meeting Date 11/14/95
by the developer. The amount collected will be adjusted to include the cost of maintenance
for the entire project in FY 97-98. The Engineer's report contains a detailed description of
improvements, the boundaries, total cost estimate, cost breakdown and spread thereof.
Ordinance
In order to maintain open space that consists primarily of "a.c. paving for a parking lot," a
minor amendment to the Municipal Code is necessary to include paving clearly within the
definition of an open space improvement. Staff recommends the change be limited to
Redevelopment projects promoting mixed-uses, such as the Broadway Village Business Homes.
This is recommended as an economic benefit to the business community.
Notice
Letters have been sent to the Redevelopment Agency of the City of Chula Vista and Broadway
Village Business Homes, L.P. (Citron) informing them of the public hearings, the proposed
assessment, the proposed assessment per parcel and informing the owner of the right of
majority protest to abandon the proceedings.
FISCAL IMP ACT: Staff and other related costs associated with the maintenance of the open
space district are generated by Parks and Recreation, Public Works, and Information Systems.
The General Fund will be reimbursed an estimated amount of $2,170.00 for staff time from
the OSD funds for FY 1996/97. Estimated yearly cost of maintenance for the entire district
is $22,525.00. This cost will be will be recovered from the Open Space District collections.
Staff costs associated with establishing the district will be completed at no cost to the City.
Broadway Village Business Homes L.P. has deposited $3,000.00 to cover staff-time charged
at the full cost recovery rate. Additional deposits will be requested if the staff cost exceeds
the amount deposited.
All yearly maintenance costs will be paid from the Open Space District funds.
The City Attorney requests the Council be reminded that the risk exists that future increases
may eventually be subject to majority protests, precluding us from collecting sufficient funds
to maintain the District at the level currently planned. Also, the Jarvis Group is attempting to
make assessments subject to a super majority vote requirement of the assessees, which if it
comes to fruition, could further enhance the rise of non-collectibility of the assessment. The
risk could be mitigated by allowing a H.O.A. to "spring to life" when needed (say 10 years),
but the developer objects to putting such a clause in the CC&Rs.
Attachments:
Exhibit A - Area Plat
Exhibit B - Engineer's Report
Exhibit C - Proposed Ordinance (amending Section 17.01)
(M:\HOME\ENGINEER\AGENDA\OSD33PHl.BOB File: 0725-30 WQ# os 038)
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ORDINANCE NO.
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AN ORDINANCE OF THE CITY OF CHULA VISTA AMENDING
SECTION 17.07 OF THE CHULA VISTA MUNICIPAL CODE ALLOWING
USE OF OPEN SPACE DISTRICTS FOR PARKING LOT MAINTENANCE
SECTION I: That Section 17.07.040 is hereby amended to the Chula Vista Municipal
Code to read as follows:
Sec. 17.07.040 Change to Streets and Highways Code Section 22525.
"Improvement" means one or any combination of the following:
(a) The installation or planting of landscaping.
(b) The installation or construction of statuary, fountains, and other ornamental
structures and facilities.
(c) The installation or construction of supplemental public lighting facilities, but not
limited to, traffic signals.
(d) Native plantings and open space areas, including natural drainage facilities.
(e) The installation or construction of any facilities which are appurtenant to any of
the foregoing or which are necessary or convenient for the maintenance or
servicing thereof, including, but not limited to, grading, clearing, removal of
debris, the installation or construction of curbs, gutters, walls, sidewalks, or
paving, or water, irrigation, drainage, or electrical facilities.
(f) The installation of park, recreational, or open space improvements, including, but
not limited to, all of the following:
(1) Land preparation, such as grading, leveling, cutting and filling, sod,
landscaping, irrigation systems, sidewalks, and drainage.
(2) Lights, playground equipment, play courts, and public restrooms.
(g) Pavement associated with parking for mixed-use projects within a Redevelopment
Area where private ownership and operation is impractical or infeasible.
(h) The maintenance, servicing, or insurance costs of any of the foregoing.
(i) The acquisition of land for park, recreational, or open-space purposes.
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(j) The acquisition of any existing improvement otherwise authorized pursuant to this
section. .
SECTION II: This section shall take effect and be in full force on the thirtieth day from
and after its adoption.
Presented by
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ENGINEER'S REPORT FOR THE PROPOSED OPEN SPACE
DISTRICT NO. 33, BROADWAY BUSINESS HOME VILLAGE
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I. INTRODUCTION
This report was prepared in accordance with City Municipal Code Section 17.07, the
Landscaping and Lighting Act of 1972 and per the requirements of the development
agreement between the Redevelopment Agency of the City of Chula Vista and Broadway
Village Business Homes, L.P., a California limited partnership.
The Broadway Business Home Village Project is located within the Southwest Redevelopment
Project Area of the City. This is a mixed-use (commercial/residential) project with shared
parking.
II. BOUNDARIES OF THE DISTRICT
The boundary of OSD-33 is completely within the City of Chula Vista and corresponds to
the boundary shown on the Assessment Plat provided in Exhibit A. As permitted in the
Streets and Highways Code, the details of the individual lots (dimensions and bearings) are
shown on the County Assessor's Maps for these properties, on file in the San Diego
Assessor's Office.
III. PROPOSED DEVELOPMENT
Broadway Village Business Homes proposes the construction of a 36 unit
commercial/residential mixed use project. This project will consist of commercial use on the
first floor level and residential use on the second and third floor levels. The development
is proposed to be constructed in three phases.
A. PHASE 1 UNIT 1
Phase 1 Unit 1 will consist of 6 commercial/residential units. Acceptance of the open
space area within this phase by the Maintenance District is expected to be transferred
to the District in December 1996.(1)
B. PHASE 1 UNIT 2
Phase 1 Unit 2 will consist of 12 commercial/residential units. Acceptance of the
open space area within this phase by the Maintenance District is expected to be
transferred to the District in April 1997 . (I)
C. PHASE 2
Phase 2 will consist of the remaining 18 commercial/residential units. Acceptance
of the open space area with this phase by the Maintenance District is expected to be
transferred to the District in February 1998.(1)
(1) Turnover of improvements occurs no sooner than after a one year maintenance period following completion of
improvements, as determined by the City. Maintenance bonds are required.
/6~i
IV. MAINTENANCE ITEMS
A. Definitions
1. "Maintain" or "maintenance" means the furnishing of services and materials
for the ordinary and usual maintenance, operation, and servicing of any
improvement, including:
a. Repair, removal or replacement of all or any part of any
improvement.
b. Providing for the life, growth, health and beauty of landscaping,
including cultivation, irrigation, trimming, spraying, fertilizing, or
treating for disease or injury.
c. The removal of trimmings, rubbish, debris, and other solid waste.
d. Providing administration for the maintenance of improvements.
e. Maintenance will conform to approved plans for the subject area.
2. "Improvement" means one or any combination of the following:
a. The installation of planting or landscaping.
b. The installation or construction of supplemental facilities.
c. The installation or construction of supplemental public lighting
facilities.
d. The installation or construction of any facilities which are appurtenant
to any of the foregoing or which are necessary or convenient for the
maintenance or servicing thereof, including grading, clearing,
removal of debris, the installation or construction of curbs, gutters,
walls, sidewalks, paving, water, irrigation, drainage, or electrical
facilities.
e. The installation of view, sound, wrought iron and decorative walls,
pedestrian fences and retaining walls.
f. The installation of pedestrian walks.
g. The maintenance or servicing, or both, of any of the foregoing.
B. Description of Items
The facilities and items to be maintained by Open Space District #33 are as follows:
1. Maintain landscaping and irrigation system improvements within the
designated open space lots and areas. Maintenance will conform to approved
landscape plans for subject area.
2. Maintain the parking lots, walkway areas and parkway. Maintenance will
conform to approved landscape plans for subject area.
3. Maintain the back screen wall, including graffiti removal.
/ ~ - It?
~,.
V. COST ESTIMATE
The estimated annual cost for Open Space District No. 33 is as follows:
Proposed Date to
fb.a& !.!n.ia Annual Cost Intel!ration to District
1 Unit 1 6 $ 6,174.00 December, 1996
1 Unit 2 12 $ 6,174.00 April, 1997
2 18 $12,348.00 February, 1998
A breakdown of the estimated annual maintenance cost is presented in attachment A. This
preliminary estimate is based on information obtained from the developer and has been
reviewed by the open space coordinator.
VI. ASSESSMENT SCHEDULE
The proposed district will contain 36 units (commercial/residential). Staff recommends that
the assessment be set based only on the first 6 units being developed with Phase 1 Unit 1.
The amount collected against the assessment for FY 96-97 will include the cost for
maintenance of Phase 1 Units 1 and 2 because both Units are anticipated to be turned over
to the City for maintenance during that fiscal year. The amount collected will be adjusted
to include the cost of maintenance for the entire project in FY 97-98.
The total annual estimated maintenance cost for the district is $24,695.00 which translates
into a $686.00 assessment per equivalent dwelling unit (BDU) upon completion of all
development phases. The FY 96-97 assessment is proposed at $1,029.00 per EDU as the
development will not be complete during that FY and the collectable is proposed at $686.00
per EDU as the turnover of open space to the City for maintenance for Phase 1 Units 1 and
2 will occur in that fiscal year.
(M,IHOMElENGINEERIAGENDAIOSD33ER.BOB)
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CITY AGENDA STATEMENT
Item
Meeting Date
r7
11/14/95
ITEM TITLE:
Ordinance ~~ Amending section 5.07.020 of the
Chula vista Municipal Code to enable the City
Council to abate the Business License Tax rates in
one-year increments for up to three calendar years,
and amending section 5.02 of the CVMC to make
administrative changes to make the CVMC consistent
with existing procedures for processing business
license applications.
Public Hearing: Considering abating the Calendar
Year 1996 Business License Tax rates to retain them
at the current CY 1995 levels and potentially
abating the CY 1997 and CY 1998 business license
tax rates to retain them at the CY 1995 level on
the condition that the proposed ordinance :ll..<;~
allowing multi-year abatements is adopted.
Resolution 1& I'~ Abating the Business License Tax
rates for Calendar Year 1996 to retain the tax
rates in CY 1996 at the CY 1995 levels.
. "
SUBMITTED BY: Director of Finance~/
REVIEWED BY: City Manager~
The Business License Tax ordinance (effective January 1, 1991) is
structured so that the business license tax rates increase annually
unless the city Council takes action to abate them each year.
Since 1991, tax rates have remained the same, due to annual
abatements. Last year Council expressed a desire to eliminate the
need for annual abatement hearings. Staff recommends against this
based on the relevancy of an earlier city Attorney opinion which
advises against eliminating the abatement proceeding because, due
to recent legislative and initiative efforts, the City is in the
unique position of having an option to increase revenues where
warranted , despite minority protests. As an alternative, it is
recommended that the requirement that an abatement hearing be held
every year be modified to allow Council to abate the tax rates for
up to three calendar years. This would eliminate the need for
abatement hearings to be held each year, while still protecting the
city against potential State legislation or court decisions which
could prohibit the Council from ever raising the taxes.
Based on Council direction, revenue estimates in the current FY 95-
96 budget were prepared based on current tax rates. Abating the CY
1996 tax rates to retain them at their current CY 1995 levels would
not require a budget adjustment. Any action to abate CY 1997 tax
rates would affect next year's budget and CY 1998 tax rates would
affect FY 97-98 budgeted revenues.
\1-)
i~
,..,
Page 2 Item
Meeting Date 11/14/95
Notification of the public hearing and copies of this report were
sent to the Chamber of Commerce, the Broadway Business Association,
the Downtown Business Association and the Bonita Professional
Association.
RECOMMENDATION: That Council:
1. Adopt Ordinance , increasing the period for
which business license taxes can be abated from one
to three years, and making other administrative
changes to the Business License ordinance.
2. Conduct the public hearing.
3.
Adopt Resolution
1996 business license
in Calendar Year 1996
to abate the scheduled CY
tax increase to retain taxes
at their current level.
Ordinance
Allowinq for Multi-Year Tax Increase Abatements
The Business License Tax ordinance which became effective January
1, 1991 is structured so that the business license tax rates
increase annually unless the City Council takes action to abate
them each year. Since 1991, tax rates have remained the same, due
to annual abatements accomplished by City Council resolution. At
last year's abatement hearing, Council requested that staff return
with a means of eliminating the annual abatement hearing.
The City Attorney advises that continuing the abatement process is
advantageous to the City, as it preserves this and future Council's
ability to increase business license taxes, where deemed warranted
by the Council despite a minority protest. Changing the ordinance
to fix business license tax rates at this time would pose a large
risk, because there is a strong probability that new State
legislation or court rulings would forever preclude the City
Council from increasing the tax rates. Since the City's tax is
based on a flat rate (rather than gross receipts) structure,
periodic adjustments in the tax rate are warranted to maintain the
current level of City services which is supported by the Business
License Tax.
As an alternative, it is recommended that the requirement, that an
abatement hearing be held every year, be modified to allow Council
to abate the tax rates for up to three calendar years. This would
eliminate the need for abatement hearings to be held each year,
while still preserving the Council's ability to increase taxes in
the future.
\l"~
Page 3 Item
Meeting Date 11/14/95
In addition to lengthening the abatement period allowed, the
ordinance also makes administrative changes which make the CVMC
consistent with current business license processing practices.
These changes clarify the contents of business license application
information and the license application routing procedures and will
have no impact on business license taxes, fees or service levels.
Public Hearinq and Tax Abatement Resolution
The Business License Tax Ordinance 2408 requires that a public
hearing be conducted to discuss the advisability of abating the
business license tax increase which is scheduled for Calendar Year
1996. Ordinance 2408 provides that after the public hearing,
Council may pass a resolution to reduce the tax for a one year
period to any level not below CY 1991 rates. Currently the rates
are at the lowest level allowed. Due to the way the Ordinance is
structured Council must abate the tax for CY 1996 prior to January
1, 1996 or the taxes will increase automatically.
Although the city of Chula vista has one of the lowest tax rates in
the County and state, now is probably not a good time to raise
these taxes. Unlike most cities whose business license taxes are
based on a business' gross receipts, Chula vista's tax is based on
a flat rate plus a per employee increment. Gross receipts-based
tax structures automatically adjust for recessionary and
inflationary periods on an individual business basis. Flat rate
structures must be frequently adjusted to account for inflation or
other economic changes. While the ordinance has built in
protections against inflation eroding the tax base, the abatement
process is the only way to adjust for recessionary periods, while
still retaining the future ability to adjust the taxes upwards
dur ing more prosperous economic times. If tax rates are not
adjusted accordingly, the relative tax burden on a business will be
highest during poor economic times and lowest during prosperous
times.
If Ordinance (discussed above) is adopted, Council may also
discuss the advisability of abating the taxes in Calendar Years
1997 and 1998 at this time. While the Ordinance gives Council the
flexibility of abating taxes for up to three years at a time, staff
is not recommending a multi-year abatement at this time. Given the
current economic downturn and uncertainty about future economic
conditions, staff is recommending that Council abate the taxes to
retain them at their current level for Calendar Year 1996 only.
While the annual abatement process is somewhat cumbersome, it has
generated fairly positive reactions from the business community,
demonstrating the City's sensitivity to the less than optimal
economic conditions facing our local businesses. staff is
recommending that discussion of the advisability of abating the
1997 tax rate be deferred until late CY 1996.
1""'3
Page 4 Item
Meeting Date 11/14/95
FISCAL IMPACT: Based on direction given by the city council, the
$930,000 of business license tax revenue estimated in the current
budget is based on abating the CY 1996 tax rates to keep taxes at
their current level.
Abating the tax for CY 1997 or CY 1998 to retain it at the current
level, will have an impact on next year I s and the FY 1997-98
budgets respectively, fixing business license tax revenues for
these years at a similar level.
Each five percent increase over current tax levels for most
businesses would result in approximately $37,500 of additional
General Fund Revenue annually. Each five percent increase would
cost an average business (four employees) $3.92 more annually and
each professional an additional $5.25 annually.
\l.-Lf
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.-
7/93
PUBUC HEARING a-lECK UST
PUBUCHEARlNGDATE: _ ~ ~ \;~ \4, \qq{'
SUBJECT: ~\.\Al",.LLd ~ tMi:.
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LOCATION:
SENT TO STAR NEWS FOR PUBUCATION -- BY FAX.x:: ; BY HAND ; BY MAlL
'\\\'\\\~'A \.t, \?1< -
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MAlLED NOTICES TO PROPERIT OWNERS "~Q.../'"
~ ........ -?'\ ..;
-
PUBUCATION DATE
NO. MAlLED
PER GC 954992 Legislative Staff, Construction Indusoy Fed, 6336 Greenwich Dr Suite F. San Diego, 92122
LOGGED IN AGENDA BOOK \ \) \ ~l\ 11 ~
, ,
COPIES TO:
Administration (4)
~
Planning
Originating Department
Engineering
~ ~
City Clerk's Office (2)
POST ON BULLETIN BOARDS
\\\ \ \~~
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SPECIAL INSTRUCTIONS:
-55-
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/7-~
CITY OF CHULA VISTA
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that the City Council of the city of Chula
Vista, California, will hold a public hearing for the following
item{s):
to consider abating the Business License Tax rates to
retain them at their current level in Calendar Year 1996,
and potentially 1997 and 1998 on the condition the
proposed ordinance allowing multi-year abatements is
adopted.
Any written comments or petitions to be submitted to the City
Council must be received by the City Clerk no later than noon on
the date of the hearing. Please direct any questions or comments
to Robert Powell, Finance Director, Public Services Building, Chula
vista civic Center, 276 Fourth Avenue, Chula Vista, California
91910, or by calling 691-5051.
SAID PUBLIC HEARING WILL BE HELD ON TUESDAY, November 14, 1995
beginning at 6:00 p.m. in the Council Chambers, Public Services
Building 276 Fourth Avenue, Chula Vista, at which time any
interested person may appear.
If you wish to challenge the city Council's action on this matter
in court, you may be limited to raising only those issues you or
someone else raised at the public hearing described in this notice
or in written correspondence delivered to the city Clerk at or
prior to the Public Hearing.
BEVERLY A. AUTHELET, CMC/AAE
CITY CLERK
DATED: October 31, 1995
PUBLISH: November 4, 1995
)?~t
FOR NOVEMBER 14, 1995 COUNCIL MEETING
PUBLIC HEARING:
To consider abating the Business License Tax
rates to retain them at their current level in
Calendar Year 1996, and potentially 1997 and
1998 on the condition the proposed ordinance
allowing multi-year abatements is adopted.~
/7-)
..
~Vt--
~
~~~~
CllY OF
(HUlA VISTA
OFFICE OF THE CITY CLERK
TELEFAX COVER LEITER
Telecopier No. (619) 585-5612
DATE:
/p'jJ:?
/'
TO: Star News Lel!:a1 / Teresa
FAX NO: (619) 426-6346
FROM: ~ 0~'
SURJECT: t?~ ' 9?k~~
TOTAL NO. PAGES (including cover):
02.
Jj/f/j~
PUBUCATION DATE:
If all pages are not received, please call Carla @ (619) 691-5041.
/7....~
276 FOURTH AVENUE' CHULA VISTA' CALIFORNIA 91910 . (619) 691.5041
~..."""'"_....
NOTICE OF PUBLIC HEARINGS
BY THE CHULA VISTA CITY COUNCIL
CHULA VISTA, CALIFORNIA
NOTICE IS HEREBY GIVEN THAT THE CHULA VISTA CITY COUNCIL will hold
public hearings to consider the following:
A rate increase requested by Laidlaw Waste Systems, Inc. for the collection and
disposal of commercial and residential refuse, and the collection processing and
marketing of residential recyclables and yard waste. For further information call the
Conservation Coordinator at 691-5122.
A five year extension of time for a conditional use permit and the modification of
certain existing conditions for the continued operation of an existing recreational
vehicle storage facility at 1375 Broadway filed by Broadway Palomar R V Storage.
For further information call the Planning Department at 691-5101.
Abating the Business License Tax rates to retain them at their current level in
Calendar Year 1996, and potentially 1997 and 1998 on the condition the proposed
ordinance allowing multi-year abatements is adopted. For further information call
the Finance Department at 691-5051.
If you wish to challenge the City's action on these matters in court, you may be limited to
raising only those issues you or someone else raised at the public hearing described in this
notice, or in written correspondence delivered to the City Clerk's Office at or prior to the
public hearing.
SAID PUBLIC HEARINGS WILL BE HELD BY THE CITY COUNCIL on Tuesday,
November 14, 1995, at 6:00 p.m. in the Council Chambers, Public Services Building, 276
Fourth Avenue, at which time any person desiring to be heard may appear.
DATED: November 1,1995
J7~/
ORDINANCE NO.
,{ t.5 :J..
AN ORDINANCE OF THE CITY OF
AMENDING CHAPTERS 5.02 AND 5.07
VISTA MUNICIPAL CODE RELATING
LICENSE TAXES AND REGULATIONS
CHULA VISTA
OF THE CHULA
TO BUSINESS
SECTION I: That Chapters 5.02 and 5.07 of Title 5 of the
Chula vista Municipal Code of which are hereby amended to read as
set forth below.
SECTION II: Pursuant to the provisions of Charter section
312(d) (3), this ordinance shall take effect and be in full force
immediately upon the second reading and adoption hereof, which
occurred upon the passage hereof by at least three affirmative
votes, because it fixes the rate of taxation for business license
taxes.
Presented by
Approved as to form by
Robert W. Powell
Director of Finance
Bruce M. Boogaard
City Attorney
"5.02.040 Application-contents required-Investigation Fee(s).
Before any license is issued to any person, such person shall
make written application therefore to the finance officer of the
city. Such application shall:
A. State the nature or kind of business or enterprise for which
the license is required;
B. State the place where such business or enterprise will be
transacted or carried on;
C. State the followinq:
~ The ~ name and address of the owner of the business or
enterpriserr
~ The ownership classification: sole proprietorship.
partnership or corporation and the federal tax
identification number of the business.
~ The date business commenced in the citv of Chula vista.
~ The number of persons emploved bv the business.
17/7,/
~ state license number(s) and state of California resale
number of the business or person conductinq the business.
D. Be signed by the applicant;
5.02.050 Issuance-Prerequisites and procedure generally.
Upon application therefor as provided in this chapter, it
shall be the duty of the finance officer to prepare and issue a
license pursuant to this chapter; provided however, that the
finance officer shall not issue any such license until it has been
noted on the application therefor that the location of the proposed
business has been reviewed by both the fire department of builaiR~
and houaiR~ inapection and the planning department and any other
department deemed appropriate by the finance director, and has been
approved in accordance with the provisions of the building code,
the zoning ordinance and any other applicable code. (Ord. 2537 51
(part), 1992; Ord. 2191 51 (part), 1987; Ord. 1293 51 (part), 1970;
prior code 518.5).
5.07.020 Applicable tax rates - by year.
E. Power to Abate in 1992 and thereafter to 1991 floor.
Notwithstanding anything else to the contrary in this section
contained, commencing for the 1992 calendar year and
continuing thereafter, the city council is hereby authorized
for RO more than one calendar year, but is not required, to
lower the tax imposed by this section in one vear intervals
for no more than three calendar years but to no less than
taxes imposed in the 1991 calendar year."
/7// - ~
/ .
RESOLUTION NO.
/8'//;'
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ABATING THE BUSINESS LICENSE TAX
RATES FOR CY 1996 TO RETAIN THE TAX RATES IN
CY 1996 AT THE CALENDAR YEAR 1995 LEVELS ON
THE EFFECTIVE DATE OF ORDINANCE
WHEREAS, the Business License Tax Ordinance 2408 requires
that a public hearing be conducted to discuss the advisability of
abating the business license tax increase which is scheduled for CY
1996; and
WHEREAS, Ordinance 2408 provides that after the public
hearing, Council may pass a resolution to reduce the tax for a one
year period to any level not below CY 1991 rates; and
WHEREAS, Council must abate the tax for CY 1996 prior to
January 1, 1996 or the taxes will increase automatically; and
WHEREAS, given the continued economic downturn and the
unlikelihood the economy will turn around completely in the near
future, staff is recommending that Council abate the taxes to
retain them at their current level for one calendar year--1996.
NOW, THEREFORE, BE IT RESOLVED that the City Council of
the City of Chula vista does hereby abate the Business License Tax
rates for Calendar Year 1996 to retain the tax rates in CY 1996 at
the CY 1995 levels, on the effective date of Ordinance No.
Presented by
Approved as to form by
Bruce M. Boogaard, City
Attorney
Robert Powell, Director of
Finance
C:\rs\buslicen.tax
178-/
.
COUNCIL AGENDA STATEMENT
Item
/Y
Meeting Date
11/14/95
ITEM TITLE: Report on city of Chula vista Rate setting:
Financial Indicators for Solid Waste
SUBMITTED BY: Deputy ci ty Manage~emp~\&
Director of Finance
REVIEWED BY: City Manager~~( ~(4/sths Vote: Yes___ No-K-)
Earlier this year, in cooperati~ with Laidlaw, the City entered
into a contract with a consulting firm, Hilton Farnkopf and Hobson,
to develop solid waste financial indicators. The contract was
awarded administratively following an RFP process. The cost is
being paid by Laidlaw from a deposit account in the amount of
$6,885. The objective of the study is to develop financial
benchmarks to assist us in the rate review of any cost increase
proposals made by Laidlaw. The attached report represents the
study findings.
RECOMMENDATION: That Council accept the report directing staff
to continue to monitor and track the indicator changes over time
and advise Council as part of any future rate setting hearings.
BOARD/COMMISSION RECOMMENDATION: N/A
DISCUSSION:
The consultant's report recommends that the City evaluate five
different financial indicators as part of our overall monitoring of
Laidlaw with the caveat, "By themselves, financial indicators
cannot be conclusive with regard to whether specific rates are
inadequate, adequate or more than adequate." As more fully defined
in the attached report, the primary indicators recommended are the
Expense Ratio and the Return on Assets, while the subsidiary
indicators recommended are the Operating Ratio, Sales on Assets
Ratio, and Debt to Worth Ratio. These specific indicators were
selected to assist the City in evaluating Laidlaw's management
effectiveness regarding matters that directly impact the rates paid
by City residents and businesses. They provide insight into the
management of expenses, assets, and debt.
Based on unverified data provided by Laidlaw, the calculated
financial indicators showed basically that their ratio of expenses
to revenues was relatively high when compared to other refuse
companies accross the country. These resul ts would tend to
indicate that either the billing rates are too low, that the
company is less than effective in managing operating expenses, or
a combination of both.
I~d-I
Meeting Date
11/14/95
Page 2
CONCLUSION: The indicators developed are helpful but are not a
substitute for analysis of actual company specific operational and
cost data for any rate adjustment request. The limitations of the
indicators are that specific, consistent and objective information
is lacking for both Southern California and the Western Region.
While comparison with nationwide data is helpful, it may not
reflect results that may be more indicative of this region.
Second, currently there is no trend information to be able to
assess Laidlaw's position from year to year. Obviously, as the
indicators are compliled over time, this problem will be
alleviated. In addition, as noted, an indicator's position can be
explained by either rates not being high/low enough or operating
expenses not being managed efficiently. Thus, additional analysis
is required to evaluate each request.
Staff believes that the indicators can be used to help focus the
area of analysis and if the analysis tends to support a Laidlaw
C.P.I. request, then the financial indicators can be looked at as
a further confirmation of that particular conclusion.
FISCAL IMPACT: The study has now been completed within the original
budget of $6,885. No additional fiscal impact is contemplated, and
Laidlaw will be able to provide us with the information needed
ongoing to determine the appropriate ratios. Measuring the
indicators periodically will provide the city with valuable
comparative information.
M:\HOME\ADMIN\GK\UJDlA W.A13
/8' /J - ...2.
, ~ f'
11/~1/1995 11:42
51~7133294
H F & H
PAGE ~3
. H1LTONl'AJtt.lKOPl'&HOBSON
Mvkc.XYSt:tvict$tu
Muolclr,IM_nt
t:1l:UI''1Jt
N~\"I....IJ'tl\tllCh
39)50 CMc Center Drive, Sultc: 100
Frcmr'lrlt, CAlifornt" 945)8-2331
Tel.ph..,.,510171.J.)Z!O
Fa., SlOI7l)-3294
October 25, 1995
Mr. George K:rempl
Deputy City Mimager
City of Chula Vista
Office of the City Manager
276 Fourth Ave.
Chula Vista, California 91910
Solid Waste Financial Indicators
Dear Mr. Krempl:
In accordance with our agreement, Hilton Famkopf &. Hob$on (HF&H) is pleased to
~t this final report to the City of Chula Vista (City).
pa..klVound
The City entered a Waste Management Franchise Agreement (Agreement) with
Laidlaw Industries (Company) to provide refuse collection and disposal and
recycling services to residents and businesses in the City through the year 2001. In
exchange for providing these services, conducting a new operating service facility
and perfonning in accordance with the terms and conditions of the Agreement, the
Company charges customers at rates determined by the City Council.
The Council sets rates in accordance with the Agreement. The Agreement
disaggtegates the rates into the following three components; Landfill Rate
Component; Franchise Fee Rate Component; and, Other Rate Component. The
Landfill Rate Component is adjusted in accordance with the change in the landfill
gate rate since the last time rates were adjusted. The Franchise Fee Rate
Component is adjusted in accordanoe with the actual change in franchise fees since
the last time rates were adjusted. The Other Rate Component is adjusted in
accordance with the change in the San Diego Consumer Price Index for all urban
customers since the last time rates were adjusted. However, the Other Rate
Component adjustment is not to exceed 6%, unless a public hearing regarding the
greater-1han-6% rate increase ls conducted by the City Council.
leo::wC:lI!dOP,PI
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. HILTON FARNKOPF & HOBSON
Mr. George Krempl
October 25,1995
Page 2
The City staff and Council have expressed concern that the rate adjustment
method contained in the Agreement does not:
. Document the Company's performance;
. Provide a method for monitoring the Company's performance over time;
or,
. Allow the City to compare the Company's performance to other similar
companies.
For this reason, the City and the Company engaged HF&H, through a competitive
procurement process, to identify financial indicators that would allow the City to
document, monitor and compare the Company's performance to other similar
companies. Initially, HF&H proposed a broader scope of work at significantly
higher fees to perform the engagement. After discussions with and direction from
the City and Company staff, the scope of work was reduced to that described below
in order to more cost-effectively achieve the City's objectives.
Approach and Limitations
The procedures used in this analysis were the result of discussions with City and
Company staff. HF&H performed the following tasks related to the achievement
of the Cities objectives:
Task 1: Review background documents, identify alternative financial
indicators (based on our prior experience from similar engagements)
and document the advantages and disadvantages related to each
indicator. Obtain industry data regarding other company's
performance regarding these indicators and receive from the Company
its calculation of these indicators.
Task 2: Meet with City and Company staff to discuss the results of Task 1 and
review the materials for presentation to the City Council.
Task 3: Attend a City Council meeting to present the recommended indicators
and respond to questions. As with any approach, these procedures are
"'Y'''' 0 '"'' I g/J~r
. HILTON FARNKOPF & HOBSON
Mr. George Krempl
October 25, 1995
Page 3
As with any approach, these procedures are limited. The most significant
limitations are:
. The City staff were responsible for defining the City's objectives for the
engagement and approving the scope of work.
. The City and Company staff were responsible for providing HF&H with all
relevant background documents and information. (HF&H did not perform
any independent verification of the information provided by the City and
Company staff.)
. No procedures have been developed to adjust rates based on the findings
and conclusions resulting from the analysis of the indicators.
. Financial indicators are helpful in understanding the results of operations
for a particular company. Also, they can be useful in developing insightful
questions regarding a company's operations. By themselves, financial
indicators cannot be conclusive with regard to whether specific rates are
inadequate, adequate or more than adequate.
Findings and Description
To be useful to the City, financial indicators have to be readily available for the
refuse industry, on a consistent basis, from an independent source. On the basis of
discussions with City and Company staff and our own knowledge, we found that
no San Diego-specific or California-specific financial indicator data has been or is
anticipated to be consistently available from an independent source. We did find
that an annual publication of nation-wide data has been and is anticipated to be
readily available from the independent firm of Robert Morris and Associates.
We found that two primary and three subsidiary financial indicators reported by
Robert Morris & Associates would best achieve the City's objectives of comparing
the Company's performance to companies of similar size in the refuse industry,
and to evaluating the Company's management effectiveness regarding matters
that directly affect the rates paid by the City's residents and businesses. These
financial indicators relate to the:
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. HILTON FARNKOPF & HOBSON
Mr. George Krempl
October 25, 1995
Page 4
. Management of expenses;
. Management of assets; and,
. Management of debt.
Other financial indicators are available from Robert Morris and Associates.
However, they measure more specific indicators of performance (e.g.,
sales/working capital). While these indicators may be useful for more detailed
analyses, we believe that the reporting of fewer indicators which are more
representative of management's overall performance would be more useful on a
routine basis. The primary indicators are:
. Expense Ratio: This ratio measures a firm's ability to manage total expenses
in relation to its sales. A high ratio can mean either the management of
expenses is ineffective or prices for services are too low. A low ratio can
mean either the management of expenses is effective or prices for services
are too high.
. Return on Assets: This ratio measures a firm's rate of return on assets it
employs in the provision of service. A high return can men either an
effective use of capital or an under-capitalized operation. A low return can
mean either an ineffective use of capital or an over-capitalized operation.
In order to help interpret the results of these two primary indicators, we
recommend that the City also evaluate three subsidiary indicators. The subsidiary
indicators are:
. Operating Ratio: This ratio measures a firm's ability to manage operating
expenses in relation to sales. A high ratio can mean either an ineffective
management of operating expenses or rates are too low. A low ratio can
mean an effective management of operating expenses or rates are too high.
. Sales on Assets Ratio: This ratio measures an operations ability to generate
sales in relation to total assets. When comparing companies within an
industry: the higher the ratio, the more effectively capital is used; the lower
the ratio, the less effectively capital is used.
,ecycled U paper / 8'A -~
. HILTON FARNKOPF & HOBSON
Mr. George Krempl
October 25, 1995
Page 5
. Debt to Worth Ratio: This ratio expresses the relationship between capital
contributed by creditors and that contributed by owners. When comparing
companies with an industry: the higher the ratio, the greater the risk
assumed by creditors and the lower the firm's debt capacity; the lower the
ratio, the greater the risk assumed by the owners and the greater the firm's
debt capacity.
By using the subsidiary indicators, the results of the analysis of the primary
indicators can become clearer. For example, if the Expense Ratio is relatively high
the City can determine whether this results from an ineffective management of
operating expenses or assets. As another example, if the Return on Assets ratio is
relatively low the City can determine whether the Company has relatively too
many assets (low Sales to Assets ratio) or has too much debt (a relatively high Debt
to Worth ratio).
Data Results Hntel1'retations and Comparison)
The following table compares the ratios for the Company to those of other
companies in the industry.
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Expense Ratio 98 1 % 93 %
Return on Assets 2. 9 % 1 3. 7% / 7. 0% / 2. 6 %
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Operating Ra tio 94. 5 % 9 1 0 %
Sales on Assets 1 .6 2.2/ 1 .7/ 1 .0
Debt / Worth Not C urrently Available .9/ 2.1 /5.7
Conclusions
On the basis of the comparison of the Company's financial indicators to those of
other comparable companies in the industry, the following conclusions appear
appropriate.
1 Reported by Laidlaw Waste Systems Inc., for the 12 months ending August 1994.
2 Robert Morris Associates, Annual Statement Studies - Refuse Systems' 103 companies with $2-$10
million in assets. Where available upper quartile (best performing 25% of companies reporting),
median quartile (half of the companies reporting perform better, while half do not perform as
well), and lower quartile (75% of companies reporting perform better) results are reported.
..""" 0 "'" / r//l - 7
rw~
. HILTONFARNKOPF & HOBSON
Mr. George Krempl
October 25, 1995
Page 6
. Because its Expense and Operating ratios are relatively high, the Company's
rates are either too low or it is relatively less effective in managing its
operating expenses.
. Because its Return on Assets ratio falls between the median and lower
quartile, either the Company's rates are too low or it is relatively less
effective in managing its assets. However, because the Sales on Assets ratio
is close to the median of companies in the industry, capital appears to be
effectively managed.
We believe these indicators can be used by the City to:
. Help determine whether a rate adjustment may be necessary to bring the
Company in-line with the profitability of other refuse companies of similar
size;
. Help identify whether the apparent cause for such an adjustment relates to
operations, capital investment or debt management; and,
. Help to focus the evaluation of the Company's application for rate
adjustment on the key areas that may be driving the apparent need for the
rate adjustment.
HF&H appreciates this opportunity to be of service to the City and Company and
look forward to the presentation of this matter to the City Council.
Very truly yours,
~J!~
Robert D. Hilton, CMC
Managing Partner
cc: Jim Weaver, Laidlaw Industries
Dan Higgins, Laidlaw Industries
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COUNCIL AGENDA STATEMENT
Item
1<6 ~
Meetinq Date
11/14/95
Public Hearing consideration of Rate
Adjustment Regarding the Consumer Price Index (CPI)
for Collection and Disposal of Refuse, Residential
Curbside and Yard Waste Recycling.
Resolution )8 113 Approving a 2.5% increase in the
operating cost rate component for the Residential
Yardwaste Contract, effective July 1, 1995.
SUBMITTED BY: Deputy City Manager Krempla;'~
Finance Director~
REVIEWED BY: city Manager~~~\4/5thS Vote: Yes___ No~l
On June 27, 1995 the City Council approved a comprehensive set of
changes to the solid waste and recycling rates. The changes
amounted to a significant decrease in rates following a successive
number of increases in prior years due to the County increasing
tipping fees at the landfill. At the June hearing Laidlaw
requested, but was not granted, a 2.5% Consumer Price Index (CPI)
adjustment to the operational cost portion of the waste and
recycling rates. The request was referred back to staff for
further review and analysis. This report provides that analysis.
It also responds to an October 24, 1995 request by Laidlaw for a
larger, 6,7% CPI increase in place of the earlier request for an
increase of 2,5% in both the Residential and Residential Recycling
Contracts, and a request to be reimbursed for unrecovered landfill
costs totaling $450,679 (copy attached).
ITEM TITLE:
RECOMMENDATION: That Council:
1. Deny Laidlaw's request for rate increases in the
operating cost rate component for the Residential,
Residential Recycling, and Commercial Contracts.
2. Approve Resolution approving their request for a 2.5%
increase in the operating cost rate component for the
Residential Yardwaste Contract effective July 1, 1995.
3. Deny Laidlaw's request to be reimbursed for unrecovered
landfill costs, and direct staff to evaluate whether
there is adequate justification to recommend an amendment
to the Waste Management Ordinance to allow Laidlaw to
recover all landfill costs in the future.
BOARD/COMMISSION RECOMMENDATION: N/A
l ~'6 -1
,,'
,,i:_{
Meeting Date
11/14/95
Page 2
BACKGROUND:
When Council adjusted rates in June, 1995, the following changes
and savings were realized:
Type of Service Prior to Effective Monthly
6/30/95 7/1/95 Change
ReSidential (Single $19.85 $12.41 <$7.44>
Family) Avg. Monthly Cost
Senior "Yellow Bag" $12.00 $6.78 <$5.22>
Program Avg. Monthly cost
Commercial Avg. Monthly $91. 35 $76.79 <$14.56>
Cost
At the time, Laidlaw requested a 2.5% CPI adjustment based on the
change in the Consumer Price Index for San Diego County from
January 1 - December 31, 1994 (attached letter dated June 22,
1995). Staff's position on the CPI increase request was (and is)
that any increase must be justified by increases in actual
operating costs and limited by the increase in the local CPl.
Staff could not support the CPI request as they had not received
documentation substantiating Laidlaw's changes in operational costs
for the various contract programs. Council agreed and requested
staff to report back in 90 days (September 30, 1995). As we got
into the issues with Laidlaw, it became apparent that some
additional time was going to be needed to collect as well as review
all the data. Council was advised of the delay via an Information
Memo as we approached the initial deadline.
By letter dated October 24, 1995 (copy attached), Laidlaw replaced
their original request for a 2.5% CPI increase with a request for
a 6.7% CPI increase for the Residential and Residential Recycling
contracts and a 2.5% increase for the Residential Yardwaste and
Commercial contracts, as well as requesting to be reimbursed for
unrecovered landfill costs which totaled $450,679 during their 1995
fiscal year ($69,434 for Residential and $381,245 for Commercial).
The new request for 6.7% is based on the increase in the CPI over
the last three years, which is the limit allowed by the ordinance.
The legal framework for Laidlaw's CPI increase request is found in
section 8.23.090 of the Municipal Code-- "Rates for Collection".
The text reads as follows:
B2. "The proportion of modification to the other rate
component [as opposed to the landfill rate component or
the franchise fee component] shall be limited by the
proportion of change since grantee's last rate increase
in the San Diego area Consumer Price Index for all urban
1'25 ~ -d--
Meeting Date
11/14/95
Page 3
consumers as compiled by the united states Department of
Labor, Bureau of Labor statistics for the latest twelve
month period for which statistics are available. In no
event shall the amount of the increase exceed six percent
(6%) of the service rates."
Laidlaw's last CPI increase was 3.1% in July, 1992.
In addition to the CPI analysis, staff has been working with
Laidlaw and a consultant, Hilton, Farnkopf and Hobson, to explore
the development of "financial indicators" with which comparisons
can be made between Laidlaw's performance and other waste
management providers. Although of general interest, this exercise
was determined to be of little benefit in actually judging the
reasonableness of billing rates, due in part to the lack of
comparable data for similar companies in this region. A companion
report addresses that topic.
Also attached at Laidlaw's request is a copy of a report by
Laidlaw's auditor, Coopers and Lybrand, dated October 25, 1994,
basically attesting to the mathematical accuracy of Laidlaw's
computation of the Company's return on investment and net income as
a percentage of revenue related to the City of Chula vista contract
for the twelve months ended August 31, 1994. It should be noted
that the auditor's opinion is based upon a review of workpapers
prepared by Laidlaw and that they disclaim any opinion as to the
appropriateness of the basis for the calculations performed on
those workpapers.
Finally, it is always of interest to note Laidlaw's rate
comparisons with other jurisdictions' rates in San Diego County.
The comparison is attached as Exhibit I, and shows that our overall
residential billing rate, including recycling and yard waste, is
the lowest in the County. This ranking is due to the large
decreases put into effect in July, especially in the Recycling and
Yardwaste programs. The comparison also shows that our Commercial
billing rate ($76.79) is the seventh lowest out of the seventeen
cities in the County, and is $4.48 or 5.5% less than the average
rate for the other cities.
DISCUSSION:
Before commenting on the data and our conclusions, it is important
to understand our assumptions and approach. We did not perform a
comprehensive rate review, which is very time consuming and entails
a level of expertise unavailable with City staff. Such a review
would include examining the efficiency with which Laidlaw manages
each program, from route scheduling to vehicle maintenance and
replacement. A comprehensive rate review was last performed for
this franchise in 1991.
l'tB-3
.1
lip
Meeting Date
11/14/95
Page 4
What we did do was begin by looking at actual cost information
provided by Laidlaw for all the programs combined and how they have
changed over Laidlaw's last three fiscal years, ended August 31,
1995. The information was provided for nine categories:
1. Operations, labor and fringe benefits
2. Franchise fees
3. Fuel, oil, tires and vehicle costs
4. Insurance costs
5. Vehicle Maintenance Costs
6. container maintenance costs
7. Depreciation expense
8. Support services
9. Interest expense
It was subsequently concluded that it would be better to focus on
only the last two years (that coincides with the time period that
Laidlaw has been separating out all its records for just the City
of Chula vista as opposed to Chula Vista/Imperial Beach). Second,
it was decided to look at the cost changes for each of the four
contracts individually rather than all together and make
recommendations accordingly. The four contracts are the
Residential Contract, the Residential Recycling Contract, the
Residential Yardwaste Contract and the Commercial Contract. This
would provide a picture of the cost justification for each contract
and more clearly allow an objective evaluation of any CPI increase
proposal. It is important to note that our review was limited in
scope to reviewing the reasonableness of reported operating cost
increases based solely on data provided by Laidlaw for this
analysis.
EVALUATION OF OPERATING COST DATA:
Residential Contract
The cost data submitted by Laidlaw related to the Residential
Contract shows a decrease in operating costs in 1995 as compared to
1994 of $67,476. Therefore, no increase in the operating cost
component of the rate for this contract is recommended.
Residential Recvclinq Contract
The cost data submitted by Laidlaw related to the Residential
Recycling Contract shows an increase in operating costs in 1995 as
compared to 1994 of $74,371. When cost increases for those
categories for which we received inadequate justification are
excluded (Support Services), the operating costs for this contract
increased by $60,698. Since this contract and the Residential
Contract serve the same customers, it would seem reasonable to net
this cost increase against the cost decrease in that contract,
arriving at a net decrease of $6,778 ($67,476 less $60,698).
Therefore, no increase in the operating cost component of the rate
for this contract is recommended.
l't 63 - Y
'r"\
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Meeting Date
11/14/95
Page 5
Residential Yardwaste Contract
This Contract as a mandatory program for residents completed its
first full year at the end of August, 1995. The initial year's
rates were established based on raw estimates of what Laidlaw
thought it would cost to operate such a program. Actual cost data
submitted by Laidlaw covering the first full year of operation, now
shows that the original estimates were somewhat low in the cost
categories of Labor and Support Costs. The overall operating cost
of the program based on the first year actual data exceeded the
estimated operating cost by 4.92%. Therefore, the 2.5% increase
requested by Laidlaw for the operating cost rate component for this
contract is recommended to be effective retroactive to July 1,
1995.
Commercial Contract
The cost data submitted by Laidlaw related to the Commercial
Contract shows a decrease in operating costs in 1995 as compared to
1994 of $156,546, or 8.45%. According to Laidlaw, these
substantial cost decreases are due in large part to their constant
attention to cost cutting measures. No increase in the operating
cost component of the rate for this contract is recommended.
LANDFILL PASS-THROUGH COSTS:
The Municipal Code section governing modifications to the landfill
cost portion of the waste hauling rate is 8.23.090 B.3., and reads
as follows:
"The proportion of modification to the Landfill Rate Component
shall not exceed the proportion of change since grantee's last
rate increase in the rate charged by the County of San Diego
to Grantee for "tipping fees" at the otay Landfill, or if the
otay Landfill has been closed, at the next closest operating
landfill, for the latest twelve-month period."
It is important to understand that this component is integrated
into the unit rate structure by estimating the number of tons per
unit, since landfill tipping fees are charged on a per ton basis.
It is Laidlaw's contention that the ordinance should allow not only
changes in the landfill tipping fees to be passed through to the
ratepayers, but also any increased landfill costs due to changes in
the actual tons collected per unit. staff's interpretation of the
ordinance is that it currently only allows changes in the landfill
tipping fees to be passed through as rate changes.
To illustrate, according to Laidlaw, during their 1995 fiscal year,
the landfill rate billed to residential ratepayers was based on
estimates of 0.13600 tons/month per residential unit. Again,
according to Laidlaw, actual landfill costs were incurred at the
rate of 0.13653 tons/month per residential unit. Therefore,
l<6f:>~S
A/
IV
Meeting Date
11/14/95
Page 6
Laidlaw incurred landfill costs in excess of what had been
collected from the ratepayers for this rate component even though
the landfill tipping fee did not change. Per Laidlaw, the weight
per unit can vary because of numerous factors such as purchase
practices, the economy, and the weather.
staff is requesting additional time to further
before deciding whether a modification to
desireable.
examine this issue
the ordinance is
CONCLUSION:
Although the local CPI has increased a cumulative 6.7% over the
last three years, based on the data provided by Laidlaw, their
operating costs for both Residential and Commercial waste
collection have remained relatively constant, and in many cases,
due to their active management, have actually decreased.
Therefore, for the Residential, Residential Recycling, and
Commercial Contracts we are recommending that their requests for
increases in the operating cost rate component based on the
increases in the local CPI be denied.
since we now have cost data covering one full year of operation for
the mandatory Residential Yardwaste Program, we can now adjust the
operating cost component of the rate to more closely recover the
actual costs of the program. We are therefore recommending
approval of Laidlaw's request for a 2.5% increase in the operating
cost rate component for the Residential Yardwaste Contract to be
effective 7/1/95. The July effective date is based on Council
direction given during the June 27 discussion.
FISCAL IMPACT:
The impact to residential ratepayers would be $0.60 per year per
household as the result of staff recommendations. If the actual
rate charged to ratepayers is implemented effective 1/1/96, this
will amount to an increase of $0.10 per month per household for the
remaining 6 months of the fiscal year. Assuming no other changes,
as of 7/1/96, the rate will decrease again to amount to only $0.05
per month per household for the subsequent full year period.
There would be no fiscal impact to Commercial ratepayers as a
result of staff recommendations.
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8888886
LAIDLAW WASTE SYSTEMS
October 24, 1995
LWS-1084
George Krempl
Deputy City Manager
City of Chula Vista
276 Fourth Avenue
Chula Vista, CA 92010
George:
After three years of review and research using internal and external resources, it
is difficult to understand City Staffs preliminary position regarding the requested
adjustment by Laidlaw Waste Systems. We do appreciate your confirmation that
tile item will go before Council on November 14, 1995.
In your October 18th letter, you requested a response to Item Number 5,
regarding our CPI request accordingly to each business contract. Before doing
so I would like to confirm our conversation regarding Item Number 2 and the
Financial Indicators Report from Hilton, Farnkopf & Hobson. We appreciate
your concurrence to provide the final written report to Laidlaw upon receipt. . As
you know we did provide some language changes to the draft report which were
factual in nature rather than opinion. Contractual and other documentation
were provided to Bob Hilton of Hilton, Farnkopf & Hobson in our response to
support those facts.
Specific to item #5 we request CPI adjustments which follow. We believe our
request is supported by the industry financial indicators which were provided by
your selected waste industry consultant. Please understand that our CPI
requests are only to be applied to the Operational Component of our rate. The
overall effective rate requests are indicated on the data tables provided.
P.O. BOX 967 . Chuta Vista, Cal~omia 91912 . (619) 421-9400 . FAX (619) 421-0841
\t:tg~
Recycled Paper
i~- I
George Krempl
Deputy City Manager
City of Chula Vista
Page 2
RATE INCREASE REQUEST:
San Diego Area CPI:
1992
1993
1994
2.1%
2.1%
2.5%
Other Rate
Component
Overall Effective
Rate Impact
Total Rate
Increase Request:
6.7%
3.2%
RESiDENTIAL WASTE CONTRACT
FINANCIAL RATIOS SEPT '93-AUG '94 SEPT '94-AUG '95 HFHINDUSTRY
12 MONTHS 12 MONT~S STANDARD
Expense Ratio 109.8% 107.8% 93.0%
Operatina Ratio 103.9% 103.4% 91.0%
Financial Ratios Adjusted For CPI Rate Increase:
PROJECTED RATIO HFH INDUSTRY STANDARD
Expense Ratio 104.6% 93.0%
Operatina Ratio 100.2% 91.0%
OVERALL EFFECTIVE RATE INCREASE REQUIRED TO MEET INDUSTRY
STANDARD:
OVERALL EFFECTIVE
RATE IMPACT
Expense Ratio
Operating Ratio
14.8%
12.4%
,\ 'e:>-1
.J
George Krempl
Deputy City Manager
City of Chula Vista
Page 3
RATE INCREASE REQUEST:
San Diego Area CPI:
1992
1993
1994
2.1%
2.1%
2.5%
Operating Cost
Component
Overall Effective
Rate Impact
Total Rate
Increase Request:
6.7%
6.3%
RESIDENTIAL CURBSIDE RECYCLING CONTRACT
FINANCIAL RATIOS SEPT '93-AUG '94 SEPT '94-AUG '95 HFHINDUSTRY
12 MONTHS 12 MONTHS STANDARD
Expense Ratio 93.0% 101.5% 93.0%
OperatinQ Ratio 83.0% 92.5% 91.0%
Financial Ratios Adjusted For CPI Rate Increase:
PROJECTED RATIO HFH INDUSTRY STANDARD
Expense Ratio 95.2% 93.0%
Operating Ratio 86.2% 91.0%
OVERALL EFFECTIVE RATE INCREASE REQUIRED TO MEET INDUSTRY
STANDARD:
Expense Ratio
Operating Ratio
OVERALL EFFECTIVE
RATE IMPACT
8.5%
1.5%
l~&-JD
:;;
, '-/L-'
George Krempl
Deputy City Manager
City of Chula Vista
Page 4
RATE INCREASE REQUEST:
San Diego Area CPI:
1994
2.5%
Operating Cost
Component
Overall Effective
Rate Impact
Total Rate Increase
Requested:
2.5%
1.6%
RESIDENTIAL YARDWASTE CONTRACT
FINANCIAL RATIOS SEPT '93-AUG '94 SEPT '94-AUG '95 HFHINDUSTRY
12 MONTHS 12 MONTHS STANDARD
Expense Ratio 250.9% 110.4% 93.0%
Operating Ratio 249.0% 104.1% 91.0%
Financial Ratios Adjusted For CPI Rate Increase:
PROJECTED RATIO HFH INDUSTRY STANDARD
Expense Ratio 98.3% 93.0%
Operatina Ratio 92.0% 91.0%
OVERALL EFFECTIVE RATE INCREASE REQUIRED TO MEET INDUSTRY
STANDARD:
Expense Ratio
Operating Ratio
OVERALL EFFECTIVE
RATE IMPACT
6.9%
2.6%
--
l~ B-))
.: . o'J
i .-.J ,-
..',
George Krempl
Deputy City Manager
City of Chula Vista
Page 5
RATE INCREASE REQUEST:
San Diego Area CPI:
1994
2.5%
Operating Cost
Component
Overall Effective
Rate Impact
Total Rate Increase
Requested:
2.5%
1.4%
COMMERCIAL CONTRACT
FINANCIAL RATIOS SEPT '93-AUG '94 SEPT '94-AUG '95 HFHINDUSTRY
12 MONTHS 12 MONTHS STANDARD
Expense Ratio 91.7% 93.9% 93.0%
OperatinQ Ratio 86.5% 90.0% 91.0%
Financial Ratios Adjusted For CPI Rate Increase:
PROJECTED RATIO HFH INDUSTRY STANDARD
EXDense Ratio 92.5% 93.0%
Operating Ratio 88.6% 91.0%
OVERALL EFFECTIVE RATE INCREASE REQUIRED ro MEET INDUSTRY
STANDARD:
Expense Ratio
Operating Ratio
OVERALL EFFECTIVE
RATE IMPACT
(0.9)%
1.0 %
l~ e,-/~
j'''.^''
,,~ ~.--.,
\...-2,1
,/
George Krempl
Deputy City Manager
City of Chula Vista
Page 6
If the CPI request is approved, the monthly residential impact will be 61~ per
household. A typical commercial customer requiring one (1) - 3 yard container
serviced one (1) time per week would be impacted $1.09 per month. Please
keep in mind that last July the residential rates were reduced by $7.44 per month
and the same commercial customer's rate decreased by $14.56 per month.
In addition to our CPI request for Operational Cost Increases, an adjustment is
requested for reimbursement of Landfill and Processing Fees. Laidlaw was not
fully reimbursed for Landfill Disposal and Yardwaste Processing Costs of
$450,679 in 1995 due to higher weights per unit. These are real costs that have
been incurred by Laidlaw because of the higher weight of the waste and
yardwaste disposed that have not been passed through to the ratepayers. The
Landfill and Processing Cost Components of the rates do not reflect the actual
weights being disposed.
The Franchise Ordinance as revised by Ordinance 2475 of September 3, 1991,
supports our request for the "pass through" of Laidlaw's actual landfill costs:
SECTION 9 Rates for Collection
9.2-1 Contents of Notice of Intention
The Notice of Intention shall demonstrate for each type of service
(residential, commercial), the existing rate; that portion of said rate
charged for the purpose of reimbursina the Grantee for Grantee's landfill
costs (Landfill Rate Component)...
Our request for reimbursement is borne out by the Council Agenda Statement of
July 21, 1992. There, the City Manager noted:
DISCUSSION:
I. Previous Years' Rate Reviews
The procedure for rate review was initially established by ordinance in
1985 and allows for, among other things, a direct pass throuah of
landfill cost increases imposed bv the Countv of San Dieao...
1<(8- 13
i L")IO
George Krempl
Deputy City Manager
City of Chula Vista
Page 7
Laidlaw requests that a rate adjustment be made for the unreimbursed 1995
Landfill and Processing Costs. Clearly, the ordinance supports our request that
these costs be a direct pass through. In the event Staff or the City Attorney does
not support our request for reimbursement of Landfill and Processing Fees, as
provided by the ordinance, Laidlaw is then submitting the rate increase request
as an extraordinary expense item which is also provided for in the ordinance.
The Franchise Ordinance as revised by Ordinance 2475 of September 3, 1991,
supports our request for reimbursement.
SECTION 9 Rates For Collection
9.2-9 Frequency of Rate Increase Requests
... grantee shall have at any time the right to submit a request to City
Council for additional rate relief at any time extraordinary expenses are
incurred.
Clearly the increase in weight per unit above the weight provided for with the
current Landfill and Processing Rate Components, qualifies as an extraordinary
expense incurred by Laidlaw. On September 29, 1995 Laidlaw provided Staff
with schedules that identify the Landfill Component billed to the ratepayers in
1995 and the Landfill Fees incurred by Laidlaw in 1995 and compare the Landfill
Component billing tons per uniUyard to the actual weights per uniUyard for the
twelve months ended August 31, 1995. Cost information to support our request
for reimbursement of the $450,679 is summarized below:
COST INFORMATION
RESIDENTIAL CONTRACT LANDFILL FEES NOT PASSED THROUGH:
1995 Landfill Fees Not Passed Through
$2,273
In 1995 Laidlaw incurred Landfill Fees of $2,273 that were not 'Passed
through"to the ratepayers. The portion of the rate billed to the ratepayers
for Landfill Fees in 1995 amounted to $2,778,484 and the Landfill Fees
incurred by Laidlaw in 1995 were $2,780,757. The
)~ ~ ,)If
:. r
. ""., /
(.......:
George Krempl
Deputy City Manager
City of Chula Vista
Page 8
Landfill Component billed was based on. .13600 tons/month per
residential unit. The actual 1995 Landfill Fees incurred were .13653
tons/month per residential unit. The weight per unit can vary because of
numerous factors such as purchase practices, the economy, and the
weather. Landfill Fees of $2,273 were not passed through because the
Landfill Component portion of the rates billed to the ratepayers was not
adjusted based on the actual weight of the Landfill Fees. The Landfill
Component was last adjusted based on the actual weight per residential
unit in 1991.
RESIDENTIAL YARDWASTE CONTRACT PROCESSING FEES NOT PASSED
THROUGH:
1995 Processing Fees Not Passed Through:
$67,161
In 1995 Laidlaw incurred Yardwaste Processing Fees of $67,161 that
were not 'Passed through" to the ratepayers. The portion of the rate
billed to the ratepayers for Processing Fees in 1995 amounted to
$218,868 and the Processing Fees incurred by Laidlaw in 1995 were
$286,030. The Processing Component billed was based on .02559
tons/month per residential unit. The actual 1995 fees incurred were
.03344 tons/month per residential unit. Landfill Fees of $67,161 were not
passed through because the Processing Cost Component for billing the
ratepayers was based on a lower weight per unit.
COMMERCIAL CONTRACT LANDFILL FEES NOT PASSED THROUGH:
1995 Landfill Fees Not Passed Through
$381,245
In 1995 Laidlaw incurred Landfill Fees of $381,245 that were not 'Passed
through"to the ratepayers. The portion of the rate billed to the ratepayers
for Landfill Fees in 1995 amounted to $2,711,168 and the Landfill Fees
incurred by Laidlaw in 1995 were $3,092,413. The Landfill Component
billed was based on .04459 tons/per yard. The actual 1995 Landfill Fees
incurred were .05089 tons/per yard. The
l~B-/S
: '-~'I
. . (
I C).
George Krempl
Deputy City Manager
City of Chula Vista
Page 9
weight per yard can vary because of numerous factors such as purchase
practices, the economy, the weather, and the waste density and
compaction. Landfill Fees of $381,245 were not passed through because
the Landfill Component portion of the rates billed to the ratepayers was
not adjusted based on the actual weight of the Landfill Fees. The Landfill
Component was last adjusted based on actual weight per yard in 1991.
We hope that logic and reasonableness is applied in granting the pass through
request. We don't control the County Landfill system, their rates, or the actual
weights of materials disposed of commercially or residentially. We are merely
looking to be reimbursed for what we have paid to the County for disposing of
the City of Chula Vista waste and for the landfill diversion credits we have
returned to the ratepayers -- nothing more and nothing less.
We hope the same logic and reasonableness is applied in considering the CPI
request. We have researched and provided financial information employing a
variety of internal and independent external resources. The information must be
viewed in its entirety... not selective components in isolation. By doing so, a fair
and equitable decision can be made.
We appreciate being an important part of the Chula Vista community and your
service partner. Again, we ask for your careful consideration and support of our
business request.
Sincerely,
~.tJ~
Ja s L. Weaver
ket General Manager
Laidlaw Waste Systems, Inc.
JLW/mc
cc: Daniel P. Higgins, Market Area Controller
I~ e ,11.,
i:}i
:~
Coopen . L,........ LV.
G! lIIoo<Holri _PhollO (elt) S5DOO
....
8m ~12101_ _ (all)_
. r . J........ ftrm
Od:ober2S,1994
Mr. Daniel P. Higgins
:Ma.Ibt Area CoDlroller
Laidlaw Waste Systems, Inc:.
1364 CJaOmuDt Mesa Boulevard
San Diego, Calif'omia 92111
De8r Mr. Ifjgins:
We have applied die procedures tIIIIIDIlll'ate below respect to the --d1ecI Schedule or
Return on IDvestment - Oty ofCbula VISta ConIrICtS the twelve moaths elided August 31,
15194 of Laidlaw Waste Systems, Inc. ("IAidIaw") prep by the IIIIDI&emeDt or Laidlaw in
CODDeCtioD with the City of ChuIa VIJta Ccmtrms. Th procedures, which were BgTeed to by
Laidlaw, _e performed IOlely to provide additiODll iDfo 'on in comaection with 1he CODtnIl:t
with the City of Cbu1a VISta. ThiJ ~ i& intended sol y for your infoJmatioD and &houkl not
be ...ed to or cIistn"buted for any purpose to anyone w is DOt a member of IIWIIganeot or a
.~~ of the parties involved in determining the
In performing tilt procedures enumerated below, we
1inauc3al iDformatioD of Laidlaw prepared by maDBg
"'~_t petIODl'~ Our procedure& and findi'18" are
provided ~ to certain reportS ad
eat and made inquiries of certain
follows:
A We compared the amOUDh on the attIcbed Schedule 0 ReturIl on Invatemmt. City ofCbJla
Vista Contract to the "City ofChuIa VISta Coutraots turn on lnvMl..oen{ Workpapen" (the
ROT Worltpapen) prepared by mRnJlB""'- and fol1lld to be in ~.
B. We obtained from mRn"l""'etIt the ROI WorIcpapen the twcm months ended August 31,
l5194 and: .
1. Tested 1he mathcmatiGal ~ of the
2. For the mODtha ofNoverober, Marcb. May and
a. Contract Rnm.e - We compared the
Raum on InveIlfmcDt WorlqJa;cn to
oJ ,inltRSIIl Report- ad found them to be in
b. EamiDp Before Jacome Tua - For cada division jndndtd in the ROI
Workplpen, we compared other RYeIIIJ aod 111 8lJlenses &om the JyItem
purated inoome lltatcment to the geaerall gar via the T in".. Report IIXI fouud
than to be in 8IlflIIlIIltlDl. We then cala1l Eaminp Bef'ore IDCOme T_ and
compared the UDOUDt \0 the ROI Wo ad f'ow1d them to be in agr-_.t.
QlopotI.l.YDIII'o\"\,,P..."llIIlOfeO-_,.....,..... -......
I~B -)1
we perfon:ned the foIlowiIIg:
ouats lilted 1Dr 8ICh division Oft the
gentnl lecIpr of Laicllaw. the
'~I'''''I_~
I i\
. .,\0\)
Mr, DlIDid P. ftinins
LIicI1aw Waite SyItems, IDe.
October 25, 1994
Pase 2
~. C1Irreat Asseb; ~eeon"'" Recelnble; perty, l'Imt ad Equipment; ud
OtIaer As_ - W. comparod 1he amounts' on the aOI Wotkpapera to the
ClOIlSOIidatcd 1em:ral1edBer ofLaid1aw 8Dd them to be ill agreemerrt:
3. We discasrecl withllllllAgfllllllthe methods to usip UKtatothe City ofClwla
VISla comnscta IIld noted IJId pafixmed the fun :wing:
L Current AalIc:ta were Illocated OIl the basis ChIIa VISta contraot reYeDUe to total
reveDlle. We compared total revenue t the divisional iDcome .,..- at
August 31, 1994 used in the a11oc:ation compared Chula Villta rcYaI\IC k! the
amollD1l noted ill procedure B abcM IJId them to be in ~
b. AoooI)l1tA ReceiYable were aDocatod b on lIduIl CbuIa Villa acc:ounts
receivable to lIClUII tota1 acc:ountI e for the months of December' 1993
through May 1994 IIld 1u1y 1994 throu August 1994. We compared total.
accounts m;cMble to the IUID of the "W'upOate onontll. Iiom the ROI
Workpapera IllCl found them to be in IlIDIIIt.. W. CO"'lp8I'ed CIwIa Villa
aGlXlunts receivable to the 111m of the appro' montll. aceouol5 RCCiwble from
a schedule prepared by mana.gement cI contraCt receivables and found them
to be in asr-'.
c. Property, Plant, aDCl Equipment ("PP&:E")
on Chula Villa PP&E 8Dd Other Assets
31, 1994. We compared Chula VIsta PP
IistinB prepared by management of CbuIa
apeciflr.Ally id""';~M PP&:B and Other
coatiact and provided for a1JOC""on of
reveDUe IICIIlfCe.. We compared the tota1
PP&:E aDd Other Nset IIDOlIIItIIisted on
bein~.
d Other Anets were .111V't1tod based
total PP&:B and Other Assets at 1uly
IJId Otber ABets to the total of a
iIta PP&:E 8Dd Other ~ whidJ
attributlhle to the Ch1la. VISta
unta not lIp8CificaDy attributable to a
&Ii and Other AIscta to the II.IID of
ROl WorkpaperI and found them to
nose agreed-upon proccdurea an: IllhmontiA1ly _ in
b the ~l"easion of III ophicm on the consolidated IDd
md ita reIatcd CDtitieI. AA:cordinslY, we do DOt oqnaa
ewluate tbe IIf'I".....i~1 of the basil fbr tbe
Jnvestmmt Wolkpapcn. AI:c:cmfiDsIy, we eqlI'8IS DO
. We also JIIIIke DO nprewo..tVmA IS to the adoquacy of the
thin an Illdit. the objeclM or whicl1
anIte financ;iIIltatementl of Laid1aw
an opinion. AdditioDa11y, _did DOt
~ on the lletum of
'on on tbe buia of the _1(,.l9fl')1lS,
fur JOUf pwpolel.
1 ~ ~ .. )<(
.101
OCT-31-1geS 10:13
LAI~ I.ASTE SD
Mr. DaIliel Po H:Vn.
Lticl1aw Waste Systems, IDe.
Octoblll" 25, 1994
P.3
r.DC
DOthiD,g ClIlDIl to our ~ that
on Investment - City or CbuIa
. '0111I1 procec\ureI or had we made
of Laidlaw IDd its RlIated ...t:itit. in
matteB misht have _ to our
Baocl on the application of the procccJures .db ...d to
......-t us to tJetiev8 that the IICCOID.panyins ~nle or
VIIlt& CordnK:ts requires adjustment. Had __ .-fvrmcd
lID audit of GOJIIOlidated ml aeparate fln.nrl.l
accordlnce with s-aJIy acceptOcl auditing atlII1cW'ds,
lIttention that would bavo becII reported to you.
This report is m.-'ed lOleIy far the iaCormation II1d or the DIIJlIICIIICIIt of lAicllaw in
mnnectioD wil:h tbe City of ChuIa Vista ContrBCtllllld Iho d not be used for 8DY other purpose.
Very tndy ygun,
~i
L.L f
l~ ~>" 14
.,
j
LAIDLAW WASTE SYS
snnmULlt OF BE'IlJRN ON
CITY OP CBULA VISTA
For the Twelve MoDtbI Ended
BIltDm 011 L..""'....nt (Net IDc.omclAvaqc Auc:ta)
Net J"CO"'O IS a Pcircent8ge oFReveauo
t ~~ ,d-D
S, INC.
.LZ%
lJ.%
TOTFL P.'lf7
oj:
'I...
f 'y ,
11/~1/1995 11:42 51~7133294
H t- & t1
,HUJ;;;. '-'<J
. J:lD.TONl'AN'll<OPI'&.HOIl5ON
AidvilaV-'"
" MUl'kIpaIM~
t:~mnnt
N""'I""'\lotAch
39350ClvIcCeDttrDriv<,5"".loo
Fronol\t, Ce1ifcmla 94$)3.2)31
Tcl<phoao' $10I7D-3270
Fax, Sl0I7U.32ll4
October 25, 1995
Mr. George I<rempl
Deputy City Mlmager
City of Chula VlSta
Office of the City Manager
276 Fourth Ave.
Chula Vista, California 91910
Solid Waste Financial Indicators
Dear Mr. Krempl:
In accordance with our agreement, Hilton Famkopf & Hobson (HF&:H) is pleased to
present this final report to the City of Chula Vista (City).
B..,,1qvnund
The City entered a Waste Management Franchise Agreement (Agreement) with
Laidlaw Industries (Company) to provide refuse collection and disposal and
recycling services to reslden1s and businesses in the City through the year 2001. In
exchange for providing these services, CIOIlducting a new operating service facility
;md perfonning in acmrdance with the terms and conditions of the Agreement, the
Company charges customerS at rates determined by the City Council.
The Council sets rates in accordance with the Agreement. The Agreement
disaggregates the rates into the following three components; Landfill Rate
Colnponent; Fr;mchise Fee Rate Component; and, Other Rate Component. The
Landfill Rate Component is adjusted in accordance with the change in the landfill
gate rate since the last time rates were adjusted. The Franchise Fee Rate
Component is adjusted In accordance with the actual change in franchise fees since
the last time rates were adjusted. The Other Rate Component is adjusted in
accordlmce with the change in the San Diego Consumer Price Index for all w:ban
customers since the last time rates were adjusted. However, the Other Rate
Component adjustment is not to exceed 6%, unless a public hearing regarc:1iI1g the
greater-than-6% rate increase is conducted by the City Coundl.
.......0_
1 ~ f> -.;).1
f ' ~:: /
,
. HILTON FARNKOPF & HOBSON
Mr. George Krempl
October 25, 1995
Page 2
The City staff and Council have expressed concern that the rate adjustment
method contained in the Agreement does not:
. Document the Company's performance;
. Provide a method for monitoring the Company's performance over time;
or,
. Allow the City to compare the Company's performance to other similar
companies.
For this reason, the City and the Company engaged HF&H, through a competitive
procurement process, to identify financial indicators that would allow the City to
document, monitor and compare the Company's performance to other similar
companies. Initially, HF&H proposed a broader scope of work at significantly
higher fees to perform the engagement. After discussions with and direction from
the City and Company staff, the scope of work was reduced to that described below
in order to more cost-effectively achieve the City's objectives.
Approach and Limitations
The procedures used in this analysis were the result of discussions with City and
Company staff. HF&H performed the following tasks related to the achievement
of the Cities objectives:
Task 1: Review background documents, identify alternative financial
indicators (based on our prior experience from similar engagements)
and document the advantages and disadvantages related to each
indicator. Obtain industry data regarding other company's
performance regarding these indicators and receive from the Company
its calculation of these indicators.
Task 2: Meet with City and Company staff to discuss the results of Task 1 and
review the materials for presentation to the City Council.
Task 3: Attend a City Council meeting to present the recommended indicators
and respond to questions. As with any approach, these procedures are
~
recycled\-J paper
l ~ 6-d.J.-
. HILTONFARNKOPF & HOBSON
Mr. George Krempl
October 25, 1995
Page 3
As with any approach, these procedures are limited. The most significant
limitations are:
. The City staff were responsible for defining the City's objectives for the
engagement and approving the scope of work.
. The City and Company staff were responsible for providing HF&H with all
relevant background documents and information. (HF&H did not perform
any independent verification of the information provided by the City and
Company staff.)
. No procedures have been developed to adjust rates based on the findings
and conclusions resulting from the analysis of the indicators.
. Financial indicators are helpful in understanding the results of operations
for a particular company. Also, they can be useful in developing insightful
questions regarding a company's operations. By themselves, financial
indicators cannot be conclusive with regard to whether specific rates are
inadequate, adequate or more than adequate.
Findinp and Description
To be useful to the City, financial indicators have to be readily available for the
refuse industry, on a consistent basis, from an independent source. On the basis of
discussions with City and Company staff and our own knowledge, we found that
no San Diego-specific or California-specific financial indicator data has been or is
anticipated to be consistently available from an independent source. We did find
. that an annual publication of nation-wide data has been and is anticipated to be
readily available from the independent firm of Robert Morris and Associates.
We found that two primary and three subsidiary financial indicators reported by
Robert Morris & Associates would best achieve the City's objectives of comparing
the Company's performance to companies of similar siZe in the refuse industry,
and to evaluating the Company's management effectiveness regarding matters
that directly affect the rates paid by the City's residents and businesses. These
financial indicators relate to the:
1~~e;'}'~3
i ...~
. HILTONFARNKOPF & HOBSON
Mr. George Krempl
October 25,1995
Page 4
. Management of expenses;
. Management of assets; and,
. Management of debt.
Other financial indicators are available from Robert Morris and Associates.
However, they measure more specific indicators of performance (e.g.,
sales/working capital). While these indicators may be useful for more detailed
analyses, we believe that the reporting of fewer indicators which are more
representative of management's overall performance would be more useful on a
routine basis. The primary indicators are:
. Expense Ratio: This ratio measures a firm's ability to manage total expenses
in relation to its sales. A high ratio can mean either the management of
expenses is ineffective or prices for services are too low. A low ratio can
mean either the management of expenses is effective or prices for services
are too high.
. Return on Assets: This ratio measures a firm's rate of return on assets it
employs in the provision of service. A high return can men either an
effective use of capital or an under-capitalized operation. A low return can
mean either an ineffective use of capital or an over-capitalized operation.
In order to help interpret the results of these two primary indicators, we
recommend that the City also evaluate three subsidiary indicators. The subsidiary
indicators are:
. Operating Ratio: This ratio measures a firm's ability to manage operating
expenses in relation to sales. A high ratio can mean either an ineffective
management of operating expenses or rates are too low. A low ratio can
mean an effective management of operating expenses or rates are too high.
. Sales on Assets Ratio: This ratio measures an operations ability to generate
sales in relation to total assets. When comparing companies within an
industry: the higher the ratio, the more effectively capital is used; the lower
the ratio, the less effecti vel y capital is used.
"
l <(BJ~~eCYe'ed,".)~aper
. HILTONFARNKOPF & HOBSON
~
Mr. George Krempl
October 25,1995
Page 5
. Debt to Worth Ratio: This ratio expresses the relationship between capital
contributed by creditors and that contributed by owners. When comparing
companies with an industry: the higher the ratio, the greater the risk
assumed by creditors and the lower the firm's debt capacity; the lower the
ratio, the greater the risk assumed by the owners and the greater the firm's
debt capacity.
By using the subsidiary indicators, the results of the analysis of the primary
indicators can become clearer. For example, if the Expense Ratio is relatively high
the City can determine whether this results from an ineffective management of
operating expenses or assets. As another example, if the Return on Assets ratio is
relatively low the City can determine whether the Company has relatively too
many assets (low Sales to Assets ratio) or has too much debt (a relatively high Debt
to Worth ratio).
Data Results Untell'retations and Comparison)
The following table compares the ratios for the Company to those of other
companies in the industry.
~Rl~').1Ral'JQl?
Ex nse Ratio
Return on Assets
....-...-w.....,
;::;~%~
.........<llO. .M... A. ..N..);1. ..
. .~. .
'm\.}.......... ...........~..........................))
98.1%
2.9%
:;:,:;.::::::)tN\t:;
.., \Ml~PUl?l'R"Xfji\.
93%
13.7% /7.0% /2.6%
;.,:,.;.,.,.:.:....,-
::::~:::,:,::::::: n.,..' .......
94.5%
1.6
Not Currentl Available
91.0%
2.2/1.7 1.0
.9/21/5.7
Conclusions
On the basis of the comparison of the Company's financial indicators to those of
other comparable companies in the industry, the following conclusions appear
appropriate.
1 Reported by Laidlaw Waste Systems Inc., for the 12 months ending August 1994.
2 Robert Morris Associates, Annual Statement Studies - Refuse Systems' 103 companies with $2-$10
million in assets. Where available upper quartile (best performing 25% of companies reporting),
median quartile (half of the companies reporting perform better, while half do not perform as
well), and lower quartile (75% of~ompanies reporting perform better) results-are reported.
\ ~ '& ' &-.S ..",,,, 0 ",..
. HILTON FARNKOPF & HOBSON
Mr. George Krempl
October 25, 1995
Page 6
. Because its Expense and Operating ratios are relatively high, the Company's
rates are either too low or it is relatively less effective in managing its
operating expenses.
. Because its Return on Assets ratio falls between the median and lower
quartile, either the Company's rates are too low or it is relatively less
effective in managing its assets. However, because the Sales on Assets ratio
is close to the median of companies in the industry, capital appears to be
effectively managed.
We believe these indicators can be used by the City to:
. Help determine whether a rate adjustment may be necessary to bring the
Company in-line with the profitability of other refuse companies of similar
size;
. Help identify whether the apparent cause for such an adjustment relates to
operations, capital investment or debt management; and,
. Help to focus the evaluation of the Company's application for rate
adjustment on the key areas that may be driving the apparent need for the
rate adjustment.
HF&H appreciates this opportunity to be of service to the City and Company and
look forward to the presentation of this matter to the City Council.
Very truly yours,
~Jl~
Robert D. Hilton, CMC
Managing Partner
cc: Jim Weaver, Laidlaw Industries
Dan Higgins, Laidlaw Industries
\ ~ e, ., d..b f~eyeled 0 pape,
"
7/93
PUBUC HEARlNG CHECK UST
PUBUC HEARlNG DATE:". 00. c,-: , _ "
SUBJECT: ~~~.a-- ~ ~--zAu1 -7 .-L. ~Ai?~ ~~
LOCATION: .~~.-<- ~ ,4-, ~ r-~.r~ .,; /~ ~ ~"_.....".-</y
A,,/' I ~ ~/ ~
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"'r~ ~ ,...;-~ ~=~ ~L!~";-_ A ~0..' ,
~""'~.-/~/~:..-"" "r--<-<F~...4 i/0~ ~'/ /- V
SENT TO STAR NEWS FOR PUBLICATION -- BY FAX ;/;/7-, BY HAND~; BY MAlL ~'-"_
PUBLICATION DATE /1/;/;)95 /
/ /
,
"",k NO. MAlLED .-?'\./--~
/ /
PER GC ~54992 Legislative Staff, Consnuction Industry Fed, 6336 Greenwich Dr Suite F. San Diego, 92122
I?J}L?/~
/ /
MAlLED NOTICES TO PROPERTY OWNERS
LOGGED IN AGENDA BOOK
COPIES TO:
./
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.-e-
Engineering ~
~~ /-</L~
V'
/}/;/7..3'
Administration (4)
Planning
Originating Department
Others
/
City Clerk's Office (2)
POST ON BULLETIN BOARDS
SPECIAL INSTRUCTIONS:
.55.
Iyg-c2?
NOTICE OF PUBLIC HEARING BY THE
CITY COUNCIL OF THE CITY OF
CHULA VISTA, CALIFORNIA
NOTICE IS HEREBY GIVEN THAT THE CHULA VISTA CITY COUNCIL will hold a public
hearing to consider the following:
The purpose of considering a rate increase requested by Laidlaw Waste Systems Inc., for the
collection and disposal of commercial and residential refuse, and the collection processing and
marketing of residential recyclables and yard waste.
Any petitions to be submitted to the City Council must be received by the City Clerk's office no later than
noon of the hearing date.
If you wish to challenge the City's action On this matter in court, you may be limited to raising only those
issues you or someone else raised at the public hearing described in this notice, or in written
correspondence delivered to the City Council at or prior to the public hearing.
SAID PUBLIC HEARING WILL BE HELD BY THE CITY COUNCIL on Tuesday, November 14, 1995
at 6:00 p.m. in Council Chambers, Public Services Building, 276 Fourth Avenue, at which time any person
desiring to be heard may appear.
DATED:
November 1, 1995
/rfJr;2.r?
RESOLUTION NO. 101/3
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A 2.5% INCREASE IN THE
OPERATING COST RATE COMPONENT FOR THE
RESIDENTIAL YARDWASTE CONTRACT, EFFECTIVE JULY
1, 1995
WHEREAS, on June 27, 1995 the City Council approved a
comprehensive set of changes to the solid waste and recycling
rates; and
WHEREAS, said changes amounted to a significant decrease
in rates following a successive number of increases in prior years
due to the County increasing tipping fees at the landfill; and
WHEREAS, at the June hearing Laidlaw requested, but was
not granted, a 2.5% Consumer Price Index adjustment to the
operational cost portion of the waste and recycling rates; and
WHEREAS, the request was referred back to staff for
further review and analysis; and
WHEREAS, after a public hearing on November 14, 1995,
staff recommends that Council:
Deny Laidlaw's request for rate increases in the
operating cost rate component for the Residential,
Residential Recycling and Commercial Contracts.
Deny Laidlaw's request to be reimbursed for unrecovered
'landfill costs, and direct staff to evaluate whether
there is adequate justification to recommend an amendment
to the Waste Management Ordinance to allow Laidlaw to
recover all landfill costs in the future.
Approve Laidlaw's request for a
operating cost rate component
Yardwaste Contract effective July
2.5% increase in the
for the Residential
1, 1995.
NOW, THEREFORE, BE IT RESOLVED the City Council of the
City of Chula vista does hereby approve a 2.5% increase in the
operating cost rate component for the Residential Yardwaste
Contract, effective July 1, 1995.
Presented by
as
/
tf
Robert W. Powell,
Finance
C:\rs\yardwaste.inc
Director of
,71:.
~
Bruce M.
Attorney
City
I$"C-I
ITEM TITLE:
SUBMITTED BY:
REVIEWED BY:
COUNCIL AGENDA STATEMENT
Item
/'1
Meeting Date
11/14/95
Public Hearing: PCC-90-25M; Request for five year extension to an
existing Conditional Use Pennit for an RV Storage Yard at 1375
Broadway, within the S-94 zone - Broadway Palomar RV Storage
Resolution Granting a five year extension for Conditional Use
Pennit PCC-90-25M to Broadway Palomar RV Storage to operate a
storage yard for recreational vehicles at 1375 Broadway
Director of Planning e ~ 1\
C;'y M""" ~ '0 ~\
(4/5ths Vote: Yes_No--XJ
Staff requests continuation of this item to November 21, 1995.
I'J~I /19-fC
riJ
"
7/93
PUBUC HEARING CHECK UST
PUBUC HEARING DATE:
\\~~ li+_N'i(
~ Ilr,lbfl.. vuSl I'rnHlA tsV sJiiili\R
\ .
l?'.Il)nJJJJLl1
('.H~ -
SUBJECT:
LOCATION:_131 ::::
SENT TO STAR NEWS FOR PUBLICATION n BY FAX~; BY HAND_; BY MAlL
PUBLICATION DATE \\\J\~"""~J^ ~, \qQS
,
MAlLED NOTICES TO PROPERTY OWNERS \ \\ \\ ~ NO. MAlLED / Pi
... "
PER GC 954992 Legislative Staff, Construction Industry Fed, 6336 Greenwich Dr Suire F. San Diego, 92122
LOGGED IN AGENDA BOOK \ \)\ ""':,\\ ct.(
,
COPIES TO:
Administration (4)
"
Planning
"
Originating Department
Engineering
Others
City Clerk's Office (2) ~
POST ON BULLETIN BOARDS
SPECIAL INSTRUCTIONS:
// /0/ /;/
.55.
/~ -3
NOTICE OF PUBLIC HEARING
BY THE CITY COUNCIL OF THE
CITY OF CHULA VISTA, CALIFORNIA
NOTICE IS HEREBY GIVEN THAT A PUBLIC HEARING WILL BE HELD BY THE CITY
COUNCIL of the City of Chula Vista, California, for the purpose of considering an extension
of time for a conditional use permit for the property located at 1375 Broadwav as depicted on
the map duplicated on the reverse side of this notice. The application, filed by Broadway
Palomar RV Storage, requests a five year extension and the modification of certain existing
conditions for the continued operation of an existing recreational vehicle storage facility.
The Environmental Review Coordinator has determined that the proposal is exempt from
environmental review as a Class 1 exemption pursuant to the California Environmental Quality
Act.
Any written comments or petitions to be submitted to the City Council must be received by the
City Clerk no later than noon on the date of the hearing. Please direct any questions or
comments to Project Planner Patty Nevins in the Planning Department, Public Services Building,
Chula Vista Civic Center, 276 Fourth Avenue, Chula Vista California 91910, or by calling 691-
5101. Please include the Case Number noted at the bottom of this notice in all correspondence.
If you wish to challenge the City's action on this application in court, you may be limited to
raising only those issues you or someone else raised at the public hearing described in this
notice, or in written correspondence delivered to the City Council at or prior to the public
hearing described in this notice. A copy of the application and accompanying documentation
and/or plans are on file and available for inspection and review at the City Planning Department.
SAID PUBLIC HEARING WILL BE HELD BY THE CITY COUNCIL ON
Tuesday, November 14.1995, at 6:00 p.m.
Council Chambers, Public Services Building
Chula Vista Civic Center, 276 Fourth Avenue
At which time any person desiring to be heard may appear.
COMPLIANCE WITH AMERICANS WITH DISABILITIES ACT (ADA)
The City of Chula Vista, in complyiug with the Americau With Disabilities Act, requests individuals who require
special accommodation to access, attend audlor participate in a City meeting, activity or service request such
accommodatiou at least 48 hours in advance for meetings and 5 days for scheduled services and activities. Please
contact Nancy Ripley for specific information at (619) 691-5101. California Relay Service is available for the
heariug impaired.
Date:
Case No:
October 31. 1995
PCC-90-25M
SEE LOCATOR MAP ON REVERSE SIDE.
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PROJECT
LOCATION
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CHULA VISTA PLANNING DEPARTMENT
LOCA.TOR PlOJECl' Broadway Plomar CONDITIONAL USE PERMIT
(!) Al'PUCANT, 'iN Storage
PIOJECT 1375 Broadway Requutl For modifications of conditions of an
ADDW!SS, approval to Rasa. 1567.c, and 5 year extension.
SCALE, fILE NUMBEJ,
NORTH .cOO' PCC. 90 .25M
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COUNCIL AGENDA STATEMENT
Item
Meeting Date 10/17/95
ITEM TITLE:
REVIEWED BY:
Resolution Approving Cash Advances from the Trunk
Sewer Capital Reserve Fund to Various Redevelopment Agency
Funds and from the Equipment Replacement Fund to the Central
Garage Fund
Director of Finance//'
City Manager Y'
(4/5ths Vote: Yes _No_X_J
SUBMITTED BY:
BACKGROUND: Over the last few years, while the City's all Funds balance has
been substantial, the available cash in certain City/Agency Funds has been
depleted beyond a zero balance. This, in effect, is an unrecorded, interest-free
loan against all other City/Agency Funds. In addition, Funds with positive cash
balances are earning less interest revenue than warranted due to this practice. As
of September 25, 1995, there were twenty-two different Funds with deficit cash
balances totaling approximately $5.7 million. It is recommended that we move
towards returning all Funds to a positive cash balance as soon as practical and
implementing strict controls to not allow any transaction against any cash account
which would reduce it below zero.
RECOMMENDATION: That the Council approve the resolution authorizing cash
advances to various Agency Project Area Funds from the Trunk Sewer Capital
Reserve Fund in an amount not to exceed $3,550,000, and a cash advance to the
Central Garage Fund from the Equipment Replacement Fund in an amount not to
exceed $550,000, all to be repaid with interest as soon as possible.
BOARDS/COMMISSIONS RECOMMENDATION:
Not applicable.
DISCUSSION: The City Attorney issued his opinion dated November 1, 1994,
(copy attached), indicating that loaning temporarily excess cash in the Sewer
Funds to other Funds is legal and appropriate as long as, among other conditions,
the Fund providing the loan receives interest in return.
Over the last few years the available cash in several City/Agency Funds has been
depleted beyond a zero balance. This in effect is an unrecorded, interest-free loan
against other City/Agency Funds and causes financial reports of those Funds to be
inaccurate and misleading. Other City/Agency Funds are also earning less interest
revenue than warranted due to t",IS treatment.
-dP'-Jd-. - <:10 - (
The most significant cash deficits currently exist in the following funds:
RDA-Town Centre II ....................... ($1,431,983)
RDA-Southwest . . . . . . . . . . . . . . . . . . . . . . . . ($ 628,419)
RDA-BayfrontlTown Ctr I ....................... ($1,366,801)
Library Construction Fund ....................... ($ 607,158)
Central Garage Fund ........................... ($ 487,506)
Redevelooment Aaencv Funds
Due to the magnitude of the cash deficits in the Agency Funds, the issue can only
be resolved in the near term through a cash advance from another Fund, such as
the Trunk Sewer Capital Reserve T=und. Currently, the Trunk Sewer Capital
Reserve Fund has the largest cash balance of any City Fund at $14,330,531. If
there continues to be a concerted effort to reduce the deficit through land sales
and to curtail deficit spending in the Agency, the situation should correct itself and
allow the advance to be repaid with interest over only a few years or less.
Since the primary source of revenue for these Agency Funds is property tax, and
this revenue is received only in three or four lump sums during the year, it is
necessary to borrow more than the deficit amounts listed above in order to cover
scheduled expenditures until the next significant cash receipts are anticipated in
December. Taking this into consideration, as well as the imminent receipt of cash
from the sale of the EI Dorado Building, it is recommended that the advances be
approved for the following maximum amounts to be repaid with interest applied at
the rate earned by the City Investment Pool:
Town Centre II
Southwest
BayfrontlTown Centre I
TOTAL
. . . . . . . . . . . . . . . . . . . . . . .. $1,700,000
. . . . . . . . . . . . . . . . . . . . . . . . . $ 850,000
. . . . . . . . . . . . . . . . . . . . . . .. $1.000.000
. . . . . . . . . . . . . . . . . . . . . . .. $3,550,000
The Finance Department will monitor the cash situation in the Agency Funds and
only transfer the minimum amount of cash necessary to maintain a zero balance in
order to minimize the interest expense to the Agency. In this sense, the
transactions will be handled similar to a line of credit.
As previously indicated, the Trunk Sewer Capital Reserve Fund has a cash balance
of $14,330,531, the largest in the City. The balance in this fund is expected to
grow to in excess of $16 million by the end of this fiscal year. The Trunk Sewer
Capital Reserve Fund includes all revenue derived from connection fees charged to
developers for permits to develop or modify use of any property which is projected
by the City Engineer to increase the volume of flow into the City sewer system.
For several years, the City has been charging $2,000 per EDU, primarily to provide
money necessary to fund the anticipated Metro Sewer Upgrade. Another example
c:><'z5' ;;:'.J dO -:<
/.',:::.',
Page 3, Item
Meeting Date 10/17/95
of a major project that may be required is the Otay Valley Line between the
location of the proposed Otay Valley Water Reclamation Plant and the Metro Sewer
Trunk near the 1-5 freeway, which could cost in the neighborhood of $10 million.
While we do not yet know the total cost of the Metro Sewer Upgrade, it is
expected that the costs for the Upgrade and other sewer infrastructure .needs will
greatly escalate over the next few years, drawing down the existing reserves.
Since most of the projected infrastructure needs are still some years off, and the
current cash balance in the Trunk Sewer Capital Reserve Fund is so large, the
proposed advances to the Agency are not expected to have any negative impact
on the City's ability to fund sewer needs over the next few years.
Librarv Construction Fund
The Library Construction Fund, which is funded through a reimbursement grant
from the State, and the miscellaneous grant Funds will self-correct as the
anticipated reimbursements from the Grantor Agencies materialize. In the case of
most grants, the local governmental entity is expected to front the money for the
grant activity in exchange for the promise of reimbursement from the Grantor
Agency. The reimbursement rarely, if ever, includes interest on the funds
advanced by the local government. In thlJ future, it is recommended that grants be
specifically advance funded by an ongoing City Fund such as the General Fund.
Any such arrangements will necessarily be included in recommendations to Council
at the time the grant-funded project is approved.
Central Garace
The Central Garage is accounted for as an Internal Service Fund and as such,
expected to recover all costs through charges to other City Funds, primarily the
General Fund. Since the 1970's, when this activity was organized in this fashion,
it has incurred relatively small annual operating deficits. resulting in the large deficit
cash balance shown today. The cost recovery system currently in place will be
thoroughly reviewed over the next several months in order to arrive at a solution to
this ongoing problem. In the interim, it is recommended that the current cash
deficit in the Central Garage be eliminated through an advance from the Equipment
Replacement Fund in the maximum amount of $550,000. The current cash
balance in the Equipment Replacement Fund is $1.5 million, with revenues
projected to be approximately $200,000 greater than expenditures during fiscal
year 1995-96. The proposed advance is not expected to adversely impact the
City's ability to fund routine equipment replacement during the life of the advance.
oJ9 c2 7/ dO-3
r---.-"
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Page 4. Item
Meeting Date 10/17/95
Other Funds
Several other City Funds are also currently in a cash deficit situation. However, no
action is recommended at this time since, as in the case of the Library
Construction Fund, this condition is expected to be only temporary and will be
remedied by the receipt of current year reimbursements, revenues, etc.
FISCAL IMPACT: The fiscal impact from the recommended action to advance City
funds to the Agency will be increased interest expense to the three Agency Funds
and increased interest revenue to the Trunk Sewer Capital Reserve Fund. The
dollar amount will vary by year based on the amount of the advance outstanding
and the earnings rate of the City Investment Pool. Assuming the entire
recommended advance amount is approved and remains outstanding throughout
the remaining nine months of fiscal year 1995-96, the related interest cost/revenue
would be approximately $147,845 (advance amount ($3.55 million) times interest
rate (5.63%) times 270/365 days). In reality, the actual amount should be
significantly less than this.
The fiscal impact from the recommended action to advance cash from the
Equipment Replacement Fund to the Central Garage Fund will be increased interest
expense to the Central Garage Fund and increased interest revenue to the
Equipment Replacement Fund. Assuming the entire recommended advance
amount is approved and remains outstanding throughout the remaining nine
months of fiscal year 1995-96, the related interest cost/revenue would be
approximately $22,905 (advance amount ($550,000) times interest rate (5.63%)
times 270/365 days). In reality, the actual amount should be significantly less
than this.
:?<v. ;J:< ;;0 - J-j
RESOLUTION NO. / J'tJ l 'f
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING CASH ADVANCES FROM THE
TRUNK SEWER CAPITAL RESERVE FUND TO VARIOUS
REDEVBLOPMENT AGENCY FUNDS AND FROM THE
EQUIPMENT REPLACEMENT FUND TO THE CENTRAL
GARAGE FUND
WHEREAS, over the last few years the available cash in
various city/Agency Funds has been depleted beyond a zero balance;
and
WHEREAS, this, in effect, is an unrecorded, interest-free
loan against all other City/Agency Funds; and
WHEREAS, in addition, funds with positive cash balances
are earning less interest revenue than warranted due to this
practice; and
WHEREAS, as of September 25, 1995, there were twenty-two
different Funds with deficit cash balances totaling approximately
$5.7 millions; and
WHEREAS, it is recommended that we move towards returning
all funds to a positive cash balance as soon as practical and
implementing strict controls to not allow any transaction against
any cash account which would reduce it below zero.
NOW, THEREFORE, BE IT RESOLVED that the City Council and
the Redevelopment Agency does hereby jointly authorize, acknowledge
and consent to the existence of an indebtedness of the Agency to
the City'S Trunk Sewer Capital Reserve Fund in an amount as set
forth adjacent to each Project Area Fund below ("Funds", jointly
herein), commencing as of the date set forth adjacent thereto,
which indebtedness shall be repaid on demand by the City acting for
the benefit of the Trunk Sewer Capital Reserve Fund given the
reasonable demands that such Trunk Sewer Capital Reserve Fund may
have for cash requirements, but as aggressively as the resources of
the Project Area Funds permit given a rational allocation of the
resources of the Funds between the bonded debt service requirements
of the Funds, which shall have priority, the operational
requirements of the Funds, and the repayment of the indebtedness
herein acknowledged. Said indebtedness shall bear interest, as of
the date set forth adjacnet to the Fund named, compounded monthly,
at the City'S average yield on its Investment Pool earnings,
determined quarterly by the Finance Director:
1
d.Y3
RDA-Town Centre II. . . . . . .
RDA-Southwest . . . . . . . . .
RDA-Bayfront/Town Ctr I. . . . .
Library Construction Fund . . .
Central Garage Fund. .. . . . .
Total . . . . .. ....
Presented by
Robert powell, Director of
Finance
c: \rs\loan.RA
2
Date of Interest
$1,366,000
$1,431,983
$ 350,000
$ 607,158
S 487.506
4 24 647
10/10/95
10/10/95
10/10/95
10/10/95
10/10/95
J.>~ t
,
."
From the Office of the City Attorney
City of Chula Vista
Legal Opinion
Date: November 1,1994
From: Bruce M. Boogaard, City Attorney
fo: Honorable Mayor and Councilpcrsons
cc: City Manager
Finance Director
Joseph Garcia
Re: Authority for Interfund Loans
The Council has referred Mr. Garcia's letter of October S, 1994, attached, to my Office
with a request for a legal opinion as to the legality of making intcrfund 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'?
n. Conclusion:
Within the following constraints, the sewer fund may make interim intcrfund loans to other
operating funds under the control of the City:
A. Legitimate Purpose for Havin& Ex~ss Cash.
We have to have a leiitimate sewer purpose fortbe 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 . cash reserve, we have 10 allow the
funds to stay idle. They can and should be invested to ",n;m;,.. purchasing
power until aufficient funds are collected to do the project for which they were
collected. The excess in the sewer funds should be created pursuant to.
e:\sewer4.wp
November 1,1994
Interfund Loan Opinion
Page I
d5'7
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 btar a fair market interest rate which is set in
approximate relation to the risks associated with other investments in which the
Fund might invcst its excess cash.
C. No Liquidity Interference
The interim borrowing by other funds should lIot be structured with repayment
dates that would, by the Jack of cash in the Sewer Fund, interf~ with the
legitimate sewer purpose for which the monies w~ 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 invcstment by the invcstment pool. The risk should be
separately assessed by the Council at the time the loan is being made.
m. Analysis.
Municipal interfund borrowing has not, by our RSCIl'Ch, been directly attacked.
Specifically, there is no California statutory law, case law or attorney &encral opinion that
we w~ able to find directly dealing with interfund borrowin& or interfund transfers on
point to guide us on the legality of this practice. Th~ arc indirect principles of law that
&overn our conclusion, as follows:
A. The City Must Have a Legitimate Purpose for Havin& Excess Cash.
Section 8 (c), a definition section, of Article XInB of the California Constitution
creates the concept that an imposition of a fee in excess of the Jc&itimate needs of a fund
is in fact a special tax.
-(c) -Proceeds oftaxcs- Ibal1 include, but not be restricted to, all tax JeVeIIUCS and
the proceeds to an entity of &ovcmment, from (1) Jqulatory JicenIcs, user
charges, and user fees to the extent that those ptoc:eeds exceed die costs
rasonably borne by that entity in pmvidin& the Jqulation, product, or 1CrVicc, .
-
. .
e:\sewer4.wp
Novem~i 1, 1994
Jnterfund Loan Opinion
Page 2
cl->'Y
. .
Sec. 4 of Article XIUA 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 lpecial 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 lIuch 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 DOt include any fee which does not
exceed the reasonable cost of providing the service or rqulatory 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 Cal.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 56 'per ton to fund a recycling
program. The City's attack was based, in pan, 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 XIUA, 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 permissive language, the aupermajority 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 Dielo (1991) 1 Cal.4th
1,5-6,2 Cal.Rptr.2d 490, 820 P.2d 1000.) ...
Special taxes must be distinguished from rqulatory fees imposed under the police
power, which are not subject to the constitutional provision. (J>>ennell v. Citr of San
~ (1986) 42 Cal.3d 365,374-375, 228.Cal.Rptr. 726, 721 P.2d 1111.) Special
taxes do not encompass fees char&ed to particular individuals in connection with
rqulatory activities or services "..hen those f~1 do not ~---' the rea_ble cost
of pmvidin, the li!rviee M activi\y for whieh the fee is ehaneJtt and are not Imelt
for unrelated revenue pumoses. (Gov.Code, Sec. SOO76; Pennell v. Citr of San
~, supra, at p. 375, 228 Cal.Rptr. 726, 721 P.2d 1111 [fee on rental units to
defray costs of administrative bearin& p.~ under rent control antinance);
pnited Business Com. v. Citr of San Dil:fo (1979) 91 Cal.App.3d 156, 164-165,
e:\sewer4.wp
November I, 1994
Interfund Loan Opinion
Pale 3
.2f,1
154 Cal.Rptr. 263 [fee on existing signs to recover costs of 8dministering sign
control ordinance]; )fillsv. County of Trinity (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 lenerate more
funds than n~ssary to pay for the . cost of operating, expandinl or maintaining the
sewage system, for the purpose of creating excess cash to loan to the 1e.:ma1 or other
funds for the purpose of financing leneral 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 -c:ustody
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
Jaws of the State governming the handling, depositing and securing of public funds; ..
"
.
The state Jaw to which our Charter makes reference includes the investment
standards set forth in Government Code Section 53601 and 53635 ("Permissible
Investments for Loca1 Agencies") and CivilCode Section 2261 ("Prudent Person Rule").
Both standards are generally the ameli and include such safe, low risle, 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; deposit or investment", permits
investment in the notes, warrants, and other evidence of indebtness of a local public
agency:
" As far as possible, all money belonging to, or in the c:ustody of, a Ioca1
agency, including money paid to the treasurer or other officialto pay the principal,
interest, or penalties of bonds, I1la11 be deposited for aaf,~ in state or
national banks ... in this state selected by the treasurer or other official baving the
1. Except that a City Council is panted a little more latitude than a City
1'reasurerlFinance Director. Compared Exhibit A to Exhibit B.
e:\sewer4.wp
November 1,1994
Interfund Loan Opinion
Page 4
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Jf"/()
II
. .
legal' custody of the money; or, unless otherwise directed by the qislative 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-pioducing 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
&lency within this state, including bonds payable solely out of the revenues from
a revenue-producing property owned, controlled, or operated by the local &lency,
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 lIllII1I&ed 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 IeweI' fund to
another governmental fund lIllII1I&ed by the City or CbuIa Vista, is that it must bear . fair
market interest approximately similar to the interest we would receive from. similar
investment in the bonds or security of another public qency for. similar risk.
e:\sewer4. wp
November I, 1994,
Interfund Loan Opinion
Page 5
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Funhennore, 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
fonnula interest ra~, and stating a given due date.II A lesser, but Iti1l acceptable
practice, 'Would be for the Finance Director, who is by our Charter vested with investment
authority over SUJplus cash, to memorialize the loan by a written and fullyexec:uted DOte
from the sewer fund to the borrowing fund.
D. No Liquidity Interference
Part of the important earmarkings ofan arm's length loan which we would require
when investing our cash in a non-City managed investment is a fixed tenn of borrowing.
As an investor in outside investments, we would select an investment term based on our
liquidity needs.
Funhennore, 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 Itructured 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 ,)n the practice of interfund loaning is fixing, by
a fonnal act, a due date for the repayment, and detennining, 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 pennits interfund loans is the state law investment policy.
The thrust of Government Code Section S363S 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 or the City to pay the simple averqe 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
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\.....;
COUNCIL INFORMATION
DATE:
November 10, 1995
SUBJECT:
Honorable Mayor and city council
John D. Goss, City Manager(4?
Robert W. Powell, Directo~f Finance~
ADDITIONAL INFORMATION ON PROPOSED RESOLUTION 18074
- CASH ADVANCES
TO:
VIA:
FROM:
When the attached item entitled "Resolution 18074 Approving Cash
Advances from the Trunk Sewer Capital Reserve Fund to Various
Redevelopment Agency Funds and from the Equipment Replacement Fund
to the Central Garage Fund" was considered by Council at the
regular meeting of October 17, 1995, several questions were
addressed to staff with direction to retllrn on November 14, 1995
with additional information. staff continues to view this item as
a positive proposal recommending equitable improvements in the
City's cash management process and regrets any implication that the
current practice jeopardizes the city's fiscal integrity in any
material way, or indicates a trend toward deficit spending for the
entity as a whole.
When looking at the City as a whole, it is important to note that
no interest earnings have been lost, as all available cash is
invested to the benefit of the entire entity. The recommendations
are intended soley to improve the allocation of those interest
earnings in a more logical and appropriate fashion. Over the years
that the current practice has been followed, it appears that the
net result of this practice may have been to provide the General
Fund with more resources than would have been available had the
recommended changes been implemented, but to the detriment of other
more restricted Funds. It also should be remembered that unlike
what may have been the misimpression when this matter was last
considered, the impact of the negative cash balances has been
applied proportionately to all City/Agency Funds, and not simply
the Sewer Funds.
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2
The questions from Council basically fall into four categories:
1. Provide additional information regarding the genesis of
the current practice of carrying negative cash balances
at the Fund level, including who authorized the practice,
why Council was not advised, etc.
2. Provide additional information regarding the dollar
impact to those Funds with a positive cash balance,
including specific information by Fund for the previous
fiscal year.
3. Provide additional information regarding the impact on
the accuracy of financial reports presented to Council,
including any possible impact on budgetary deliberations
of the Council.
4. Offer alternatives to providing the cash advances from
the Trunk Sewer Capital Reserve Fund or any other Special
Revenue Fund.
Current Practice - What. Who. When. Whv?
The current practice is to assume that any negative cash balances
at the Fund level as the result of expenditure or transfer
transactions are temporary, since adopted budgets are balanced and
therefore the future receipt of projected revenue or transfers-in
will tend to cure any temporary shortfall. It is important to
understand that spending authority, as contained in the Council-
adopted budget, is based upon projected revenues and it is the
timing of those expenditures and the actual receipt of projected
revenues that determine a Fund's cash balance, especially if the
Fund has little or no reserves.
This has been the routine practice by the Finance Department for as
long as anyone involved can remember (at least as early as the
1970's and probably much earlier), and is not unreasonable when the
negative balance is relatively small and is expected to be cured
within a relatively short period of time. In speaking with the
City's former Finance Director (1951-1984), he indicated that he
does not recall the practice even though it was utilized for Grant
and CIP funding.
staff assumes that neither Council nor senior management were
advised of this practice because it has been a routine cash
management practice of the Finance Department and until fairly
recently, almost all negative amounts were relatively immaterial
and did tend to cure themselves over a limited timeframe of usually
less than one year. The issue has not surfaced in written form
since most reports to council, especially those related to resource
allocation and budgetary decisions, deal with revenues,
expendi tures, and less frequently, reserves. Al though, in the
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preliminary Budget Summary Reports attached to each year's proposed
Budget, one could surm~se that those Funds where a Fund Balance
deficit is projected could reasonably incur a related cash balance
deficit.
Specific balance sheet accounts, such as cash, are rarely if ever
the topic of discussion at the Council level. It is typically only
when available reserves are depleted or exhausted that cash
balances become an issue. Cash shortages should normally be
considered a symptom of a larger problem, such as deficit spending,
and are not the basic problem.
The twenty-two Funds with negative cash balances totaling $5.7
million as of September 25, 1995, include twelve different Grant
Funds, three Special Assessment District Funds which have since
been corrected, two Development Impact Fee Funds, the Park
Acquisition and Development Fund, the Garage Fund, and three
Redevelopment Project Area Funds. It is important to note that
with any analysis of balance sheet accounts, it is only a snapshot
as of a given date and if the same analysis is done one day, week,
or month later, the picture may likely be significantly different.
For example, you may recall that just a few years ago, the Agency
Funds had some of the largest cash balances in the city. The
majority of the discussion and the recommendations address
primarily those Funds with major negative balances that will not
likely be remedied in the near future.
The magnitude of the total negative amount in past years has been
fairly minimal, related mainly to the manner in which the City
administers grant and CIP funding. It has only been within the
last two to three years that there have been large Fund Balance
deficits incurred in a small number of Funds causing the larger,
longer lasting, cash balance deficits. The Agency deficit issue,
of which the cash deficit issue is merely a symptom, was the
subject of significant discussion during the fiscal year 1995-96
Budget deliberations, with the Agency/City now taking steps in
accordance with Council direction to eliminate that deficit through
the sale of some of its properties.
A straight-forward example of the current practice would be the
Park Acquisition and Development Fund (PAD). If it is assumed for
discussion purposes that this Fund has a cash balance of $100,000
at July 1, revenue for that year is estimated at $300,000, and that
Council has adopted a budget to spend $200,000 on various capital
projects. The current practice is to immediately transfer $200,000
from the PAD Fund to the Capital Improvement Fund to set aside the
money for the specific projects, leaving the PAD Fund temporarily
with a negative cash balance of ($100,000). In effect, since the
PAD Fund only had $100,000 on hand, the additional $100,000 that
was transferred was borrowed proportionately from all other
City/Agency Funds having positive balances. The PAD Fund cash
halance remains negative until some future date, usually a number
of months, until revenues are received to increase the cash balance
to a positive figure.
---
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4
Another common occurrence has been in the case of Grants. It has
been a common practice in order to facilitate documentation and
reimbursement claim preparation for state and Federal Grants to
establish separate Funds for each Grant. Expenditure budgets are
adopted by Council based on future reimbursement revenue.
Expenditures are recorded in the Grant Fund resulting in a
reduction to an already zero cash balance. The cash balance
remains negative until some future date, usually months, but
occasionally years, at which time the Grantor Agency reimburses the
city for the eligible expenditures. In effect, during the time the
cash balance is negative, the Grant Fund has borrowed
proportionately from all other City/Agency Funds having positive
cash balances.
Both of the Capital Improvement and Grant examples are reasonably
common practices for Municipalities. The difference between what
is commonly practiced by other cities and the city of Chula vista
practice is in the allocation of investment interest earnings on
the "borrowed" amounts. Again using the PAD Fund example, some
Cities probably would have reduced the Capital Improvement Fund
cash balance for interest apportionment purposes by the negative
cash balance in the PAD Fund, thereby reducing the amount of
interest revenue to the Capital Improvement Fund and not impacting
all other Funds. In the Grant Fund example, the General Fund cash
balance probably would have been reduced for interest allocation
purposes by the negative cash balance in the Grant Fund, thereby
reducing the amount of interest revenue to the General Fund and not
impacting all other Funds. The practice here has been to ignore
those Funds with negative cash balances during interest
apportionment, thereby reducing proportionately the interest earned
by all Funds. In effect, where the City of Chula vista treats the
negative balances as de facto loans from all Funds, at least a
number of other cities treat the negative balances as loans from a
specific Fund for interest apportionment purposes.
The current City practice warrants change when the negative cash
amount (loan) is large and is not expected to be cured within a
short period of time, as in case of the Agency Funds and the
Central Garage. In both of these cases, annual revenues have not
been sufficient to cover annual expenditures, pushing the Funds
into deficit Fund Balance situations. In other words, the liquid
assets, including cash, are less than the current liabilities.
The only cure for this situation is to increase revenues, decrease
expenditures or a combination of both until liquid assets,
including cash, exceed current liabilities. Once this is done and
a reasonable Fund Balance (reserve) is established, the negative
cash situation will disappear as a result. However, this is not
expected to be a short term process and since the negative cash
balances (loans) are significant, it is being recommended that
formal cash advances from specific Funds be authorized in order to
better account for this condition.
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It should be remembered that this cash management practice is
strictly that, a matter of practice, and not a matter of law. As
was mentioned in the City Attorney's opinion, there is no case law,
legislation, nor Attorney General's opinion that addresses this
particular issue. Therefore, it is a matter of practice, and logic
would dictate that what is proposed is how the cash management
between Funds should be handled.
Dollar Imoact of Current Practice
As indicated in the original a~enda item, arguably there has been
an opportunity cost to all other city/Agency Funds in the form of
lost interest earnings as the result of the practice of allowing
negative cash balances. Exhibits I and II show the approximate
dollar impact of that lost interest by major Fund category for
fiscal year 1994-95 and the first quarter of fiscal year 1995-96.
The attachment indicates that the total amount of interest revenue
lost amounted to approximately $280,400 during fiscal year 1994-95,
including $102,200 for the Sewer Funds, $47,000 for the various
Assessment District Funds, and $25,000 for the General Fund. Of
course, if there is interest revenue lost by most Funds, then it
follows that the Funds having the negative cash balances must have
avoided interest expense in the same amount. The Attachment shows
that the amount of interest expense avoided by the negative cash
balance Funds for fiscal year 1994-95 was approximately $148,000
for the Agency Funds, $115,400 for the Grant Funds (primarily the
Library Construction Fund), and $17,000 for the Garage Fund.
Financial Reoortinq Imoact of Current Practice
As indicated under the discussion of the current practice of
allowing negative cash balances at the Fund level, most financial
reports outside of the Finance Department deal strictly with
revenues, expenditures, and reserves. Therefore, unless one had a
reason to examine a balance sheet for a given Fund, they would not
realize that the Fund had a negative cash balance that should in
reality be classified as a loan or cash advance. Since such a
reclassification for a short-term condition would have no impact on
either the borrowing or lending Funds available reserves, it would
not cause any reports produced for others outside of the Finance
Department to be inaccurate.
However, in the case where a Fund has a relatively large long-term
negative cash situation caused by a chronic Fund Balance (reserve)
deficit, it is reasonable to assume that a loan should be recorded
and reserves reduced to reflect the unavailability of those
resources. This would seem to be the case with the Agency and
Central Garage Funds. In not recording the loan in the "lending
Funds," it could be argued that their Available Fund Balances
(reserves) are overstated by the amount of the unrecorded cash
advances (loans). It should be noted that since no actual
dtJ-J?
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6
loans have been recorded, any overstatement would be spread
proportionately to all City/Agency Funds and therefore the
materiality of the dollar impact is significantly more diluted than
if the loan was recorded against a single Fund.
Let's take the Central Garage Fund as an example and assume a
negative cash balance of $400,000 and that the Equipment
Replacement Fund has a cash and Available Fund Balance (reserve) of
$1,500,000. Under the current practice of not recording a cash
advance (loan), the Equipment Replacement Fund Available Fund
Balance (reserve) is theoretically overstated by approximately
$6,680, due to that Funds share of the unrecorded cash advance to
the Central Garage Fund. The $6,680 figure is derived by
determining the Equipment Replacement Fund's proportionate share of
the City's entire cash investment pool of approximately $90
million. That fraction, $1.5 million divided by $90 million, is
then applied to the negative cash balance of $400,000 to arrive at
the $6,680. All other City/Agency Funds would be proportionately
impacted. If, for instance, another Fund had a cash and Available
Fund Balance (reserve) of $6,000,000, then that Funds Available
Fund Balance is theoretically overstated by approximately $26,720
due to the cash deficit in the Garage Fund.
If we then take this scenario and using the actual numbers as
reported in the October 17 Agenda Item for the Agency Funds
($3,427,203) and the Garage Fund ($487,506) for a total negative
cash balance of $3,914,709, and apply this to all other Funds
having positive cash balances proportionately, we could conclude
that the Available Fund Balance (reserve) for any Fund with a cash
balance of $1.5 million is theoretically overstated by
approximately $65,245 (1.5/90 x $3,914,709). simply extrapolating
from these figures, the Available Fund Balance (reserve) for any
Fund with a cash balance of $6.0 million would theoretically be
overstated by four times the amount for the Fund with $1.5 million,
or $260,980. As large as these numbers appear, they need to be
considered in relation to the size of the reserves. In the case of
the $6.0 million Fund, the overstatement would be approximately
4.34 percent of the Available Fund Balance (reserve). If budget
deliberations for any given Fund included consideration of either
drawing down the existing reserve balance or increasing the
existing reserve balance through budget reductions, then these
numbers should provide you with an idea of how much that process
may have been impacted. Also, General Fund budget discussions
generally focus on expenditure levels as compared to current year
revenue estimates, and it is not uncommon for fiscal year-end
reserve estimates to fluctuate in the magnitude of $1 million up or
down during those discussions.
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7
Alternatives to Special Revenue Fund Borrowinq
Since no other City Funds have cash balances sufficient to allow a
$3.55 million loan for longer than three to four months, the only
viable alternative to a Special Revenue Fund borrowing to cure the
negative cash balances in the Agency Funds is to continue the
status quo and allow the situation to be remedied by reducing
expenditures or increasing revenues sufficiently in the impacted
Agency Funds to achieve a reasonable Fund Balance (reserve) level
in the near-term. Due to the size of the negative balances and the
difficulty in achieving such a significant savings in the very near
future, the Special Revenue Fund borrowing is recommended. If such
savings are indeed achieved, then the borrowing could be repaid
with only minimal interest cost to the Agency.
It also bears mentioning, that basically the Garage and Equipment
Replacement Funds account for the same general function, which is
the acquisition and maintenance of City vehicles. While the annual
expenditures of the Garage Fund have been within budget
authorizations, the related revenue from internal transfers from
primarily the General Fund have been somewhat lower than projected
over an extended period of time. On the other hand, the dollars
accumulated for equipment replacement in the Equipment Replacement
Fund are currently slightly higher than near-term needs, so it
appears reasonable to view the two Funds as one for cash purposes.
This comment is not intended to downplay the importance of
accumulating money over time for equipment replacement, simply to
point out the inter-relationship of these Funds. It may very well
make sense to combine these Funds in the future to more clearly
account for these important costs.
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EXHIBIT I
NEGATIVE CASH BALANCE IMPACT BY FUND TYPE
FISCAL YEAR 1994-95
INTEREST INTEREST
EARNINGS EXPENSE
FUND TYPE FOREGONE AVOIDED
SEWER 102,215
CAPITAL PROJECTS 67,187
ASSESSMENT DISTRICTS, ETC 46,996
GENERAL FUND 25,057
TRANSIT 21,119
DEVELOPMENT IMPACT FEES 10,985
DEVELOPER FEES 6,630
BCT 196
REDEVELOPMENT AGENCY 147,964
GRANTS 115,452
EQUIPMENT REPLACEMENT, GARAGE 16,969
TOTAL 280,385 280,385
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EXHIBIT II
NEGATIVE CASH BALANCE IMPACT BY FUND TYPE
FIRST QUARTER FISCAL YEAR 1995-96
INTEREST INTEREST
EARNINGS EXPENSE
FUND TYPE FOREGONE AVOIDED
SEWER 9,657
CAPITAL PROJECTS 5,942
DEVELOPMENT IMPACT FEES 4,013
ASSESSMENT DISTRICTS, ETC 3,099
TRANSIT 2,107
GENERAL FUND 1,851
DEVELOPER FEES 667
BCT 141
REDEVELOPMENT AGENCY 19,822
GRANTS 5,640
EQUIPMENT REPLACEMENT, GARAGE 2,015
TOTAL 27,477 27,477
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Council Agenda Statement
TITLE: Resolution l%\ \ If authorizing the Mayor to execute a Power to
Save Incentive Agreement with SDGE for the implementation of
Phase II of a comprehensive energy retrofit program; amending
CIP GG149 Energy Retrofit Phase II to the FY 1995/96
appropriating $75,000 funds therefor.
SUBMITTED BY: Barbara Bamberger, Environmental Resource Manager
REVIEWED BY' Jo"o D. Go", C;ly Maoo,oc J~ 'Q ~
Staff recommends this item be continued to 11/21/95.
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COUNCIL AGENDA STATEMENT
ITEM TITLE:
Ite~
Meeting Date 11/14/95
Resolution \~ \ \ S Approving a Memorandum of Understanding with San
Diego Economic Development Corporation and Resolution
approving a Memorandum of Understanding with the South County Economic
Development Council, both providing for business attraction and retention services and
related cooperative economic development efforts for the benefit of the City of Chula Vista
Community Development ~t~r C ~S,
City Manager J ~ ~ ~ \ (4/5ths Vote: Yes_No_)
SUBMITTED BY:
REVIEWED BY:
BACKGROUND:
On May 3, 1995, the Chula Vista Economic Development Commission received requests for funding from both the
San Diego Economic Development Corporation (SDEDC) and the South County Economic Development Council
(SCEDC). The City's Commission recommended that Council approve $10,000 for the SDEDC and $7,500 for the
SCEDC. This recommendation was subsequently included as a FY 1995/96 supplemental budget request. On
June 20, 1995, Council approved $10,000 for the SDEDC and $7,500 for the SCEDC. At that time, staff
recommended that an MOU be negotiated between the City and each of the recipients to provide for: 1)
representation on their respective boards and committees; and 2) quarterly reporting of activities which benefit the
City of Chula Vista. Council's motion to fund included the message that the SDEDC should not request funds next
year "unless the City was an appointing authority (to the Board)." While there was no formal motion regarding
MOU's and reporting requirements, Council questioned Vice President Jane Signaigo-Cox as to whether the
SDEDC would enter into such an agreement. Ms. Cox indicated they would. Based upon staff's understanding
of Council's desire to proceed with the MOU's that will help to clarify assistance being provided Chula Vista
businesses, staff is submitting proposed agreements for each agency.
RECOMMENDATION: That Council adopt: 1) Resolution approving an MOU with the San Diego
Economic Development Corporation and 2) Resolution approving an MOU with the South County
Economic Development Council, both providing for business attraction and retention services and cooperative
economic development efforts benefitting the City of Chula Vista.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
I. PAST FUNDING LEVELS
The City has provided funding for both the SDEDC and the SCEDC since 1990/91. Funding has varied each year.
Basically, the City paid a $1,000 membership fee to SDEDC in FY 90/91 and 91/92 and made a $7,500
contribution in 92/93, with no funding in 93/94 or 94/95. The City provided first year seed money to the SCEDC
in the amount of $15,000 in FY 91/92, and $7,500 in contributions in FY 92/93 and 93/94, with no funding in 94/95.
II. REGIONAL SERVICES, BUDGETS, AND CITY CONTRIBUTIONS
A. SDEDC
The SDEDC's goal is to develop and expand the region's economic and industrial base through:
1) local outreach and expansion; 2) attraction; 3) image improvement/public relations; and 4) pro-
business public policy. SDEDC has a $1.8 million annual budget and is very influential in state
~d..- I
Page 2, Item_
Meeting Date 11/14/95
and regional economic development activities. Funding received from cities in San Diego County
is identified in Exhibit A.
B. SCEDC
The EDC describes its mission as "to promote and assist business relocations to the South County
region, and create general awareness of the region." Activities include informative luncheons,
seminars, site tours and the annual Economic Summit. The SCEDC annual budget is
approximately $60,000. Funding received from San Diego County cities is identified in Exhibit B.
III. PROPOSED TERMS OF MOU'S
The two proposed MOU's are essentially the same. Each commits the City to continue to coordinate with the
signing regional entity in terms of responding to business referrals and inquiries, to proactively providing each
signing entity with Chula Vista promotional materials, and to participating in each entity's events as appropriate.
Duties required of SDEDC and SCEDC, respectively, are summarized below:
A. Representation on Boards and Committees
1. SDEDC
Consistent with the existing SDEDC by-laws (see Exhibit C), the Chula Vista Council may
participate in the selection of one Chula Vista-based private sector business
representative to the SDEDC Board as a voting member. The representative must be a
SDEDC member in good standing. The SDEDC will provide Council a list of all Chula
Vista-based SDEDC members. Council may nominate one of these members to the
SDEDC Selection Committee which will make the final appointment. (Currently there are
two Chula Vista companies in good standing - EastLake Development Company and North
Island Federal Credit Union.) This nomination and selection process is currently followed
by the City of San Diego (2 representatives), the Port District (1 representative) and San
Diego County (1 representative). Additionally, the SDEDC shall invite a Chula Vista
Council, staff and/or business representative to sit on SDEDC advisory committees,
including the "Team San Diego" Business Advisory Board, International Advisory
Committee, and Business News Bureau. Currently City staff sits on the International
Advisory Committee.
2. SCEDC
As per existing SCEDC by-laws (see Exhibit D), the Chula Vista Council may appoint a
representative from among themselves to sit on the SCEDC Board as a voting member.
The City shall designate a director each year and at least 1 alternate. Currently,
Councilmember Moot is the City's voting representative. Additionally, City representatives
- Council and/or staff - may attend all Board meetings as non-voting members. Also, the
SCEDC shall invite City representatives to participate in standing committees, including
the Transborder Business Development Committee, and the Transportation and
Infrastructure Committee, as well as any ad hoc committees. Currently, Councilman Moot
and City staff sits on the Transportation Border Business Development Committee.
B. Enhanced Coordination/Assistance to Chula Vista Businesses
Both MOU's provide for the signatories to cooperate with and assist the City of Chula Vista, and
particularly with the Economic Development staff of the City's Community Development
Department. Duties include:
1. Referring business leads
2. Including Chula Vista businesses in retention activities
~~
Page 3, Item_
Meeting Date 11/14/95
3. Including Chula Vista information in promotional materials
4. Including Chula Vista information in public relations activities
5. Including Chula Vista in pro-business advocacy activities
6. Partnering with Chula Vista in terms of participation in trade shows and conferences when
appropriate, and disseminating Chula Vista materials and information from SDEDC and
SCEDC booths
7. Inviting Chula Vista to participate in foreign and other out-of-County trade missions and
hosting of incoming business delegations
8. In the case of the SDEDC, assisting Chula Vista businesses through the One-Stop Permit
Assistance Center
C. Quarterlv Reportinq
The MOU's further require the two entities to submit quarterly reports in the form provided in
Exhibit 1 to the MOU. These reports require each entity to quantify business assistance, by
category (e.g. attraction, retention, expansion), countywide as well as within Chula Vista. They
require identification of all businesses successfully assisted - by name and location. The reports
also require a breakdown of promotional and business development activities, highlighting areas
of direct benefit to or participation by Chula Vista. Additionally, the entities are required to report
on efforts undertaken to assist Chula Vista in implementing its High Tech/Biotech Zone and
Western Regional BioProcessing Center, the Border Environmental Commerce Alliance program,
and other business development efforts such as the Hydrogen Fuel Cell Bus Demonstration
Program.
IV. PAYMENT AND FUTURE FUNDING
A. SDEDC
The MOU stipulates that payment will be in two installments of $5,000 each. The first payment
will be made upon receipt of the second quarterly report. The second payment will be made upon
receipt of the fourth quarterly report - through the month of May. (This will allow SDEDC to
receive payment during its fiscal year. Reporting for the month of June is due by July 30.)
B. SCEDC
Payment will be made in two equal installments of $3,750 each. The first payment will be made
upon receipt of the 2nd Quarterly Report; the second payment will be made upon receipt of the
4th Quarterly Report and Annual Report.
Each MOU indicates that future funding requests will be evaluated in light of the previous year's
performance as documented in the quarterly reports.
FISCAL IMPACT:
Council previously approved $10,000 for SDEDC and $7,500 for SCEDC for FY 95/96. Funding is available in
Account 100-0261-5223
EXHIBITS
A-
B -
C-
D-
City funding of SDEDC
City funding of SCEDC
SDEDC By-Laws
SCEDC By-Laws
[(MOl c:\wp51\documenl\mou.edc (November 9, 1995)}
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RESOLUTION
/8"//.5'
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY OF CHULA VISTA
AND THE SAN DIEGO ECONOMIC DEVELOPMENT
CORPORATION IN SUPPORT OF MUTUALLY BENEFICIAL
SOUTHBAY ECONOMIC DEVELOPMENT EFFORTS
WHEREAS, the City of Chula Vista has determined that business development and job creation
efforts are important to the City's economic health and stability; and
WHEREAS, the City desires to cooperate with and support the San Diego Economic
Development Corporation to further local and regional economic development goals; and
WHEREAS, the San Diego Economic Development Corporation desires to cooperate with,
support and promote Chula Vista economic development goals; and
WHEREAS, the City as part of the fiscal year 1995-96 budget awarded SDEDC a $10,000
contribution; and
WHEREAS, SDEDC understands that this City support is contingent upon the execution of a
Memorandum of Understanding which provides for a quarterly reporting of activities benefiting San
Diego County and specifically Chula Vista, as well as representation on the SDEDC Board by a Chula
Vista based company representative.
WHEREAS, SDEDC understands that future funding requests will be evaluated in light of the
SDEDC's performance as reflected in the quarterly reports.
/
,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA does
hereby fmd, detennine and resolve to authorize the Mayor to execute the agreement between the City
of Chula Vista and the San Diego Economic Development Corporation in support of mutually beneficial
economic development efforts.
~~
Bruce M. Boogaard
City Attorney
PRESENTED BY:
Chris Salamone
Community Development Director
[(MD)c:\wpSl\clocumcnt\619.9S (rev. November 2, 1995)]
..J..1 ,.. ~
MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY
OF CHULA VISTA AND THE SAN DIEGO ECONOMIC
DEVELOPMENT CORPORATION IN SUPPORT OF MUTUALLY
BENEFICIAL REGIONAL ECONOMIC DEVELOPMENT
EFFORTS
This MEMORANDUM OF UNDERSTANDING (MOU) is entered into and effective as of
between the City of Chula Vista, a chartered municipal corporation ("City") and the San Diego
Development Corporation, a non-profit corporation ("SDEDC") with reference to the following facts:
, by and
Economic
RECITALS
A. WHEREAS, the City of Chula Vista has determined that business development and job creation
efforts are important to the City's economic health and stability; and
B. WHEREAS, the City desires to cooperate with and support the San Diego Economic Development
Corporation to further local and regional economic development goals; and
C. WHEREAS, the San Diego Economic Development Corporation desires to cooperate with, support
and promote Chula Vista economic development goals; and
D. WHEREAS, the City as part of the fiscal year 1995-96 budget awarded SDEDC a $10,000
contribution; and
E. WHEREAS, SDEDC understands that this City support is contingent upon the execution of a
Memorandum of Understanding which provides for a quarterly reporting of activities benefiting San Diego County
and specifically Chula Vista, as well as representation on the SDEDC Board by a Chula Vista based company
representative.
F. WHEREAS, SDEDC understands that future funding requests will be evaluated in light of the
SDEDC's performance as reflected in the quarterly reports.
NOW, THEREFORE, in consideration of the above recitals, the mutual obligations set forth herein, and
other valuable consideration, the receipt and sufficiency of which the parties hereby acknowledge, the City and
SDEDC do hereby agree as follows:
1. CITY OF CHULA VISTA DUTIES.
1.1 Financial Support.
The City agrees to fund the efforts of the SDEDC in the amount of $1 0,000 in fiscal year 1995-96,
contingent upon the receipt of four (4) quarterly reports and representation on the Board and committees
as stipulated in this MOU.
Payment shall be made in two (2) equal installments. The first payment of five thousand dollars
($5,000) will be made upon receipt of a SDEDC invoice and delivery of the second quarterly report.
Because SDEDC by laws require receipt of fiscal year contributions within its fiscal year, which terminates
June 30, 1996, the second payment will be made upon receipt of a SDEDC invoice for five thousand
dollars ($5,000) and delivery of the fourth quarter report through May. This second payment will be made
by June 25, 1996 contingent upon receipt of the invoice and required reports no later than June 7, 1996.
The full fourth quarter report (including the month of June) will be due by July 30. SDEDC will furnish an
Annual Report for FY 1996 within 90 days of the fiscai year end (June 30, 1996).
I(MD)c:\wp51\document\597.95 (rev. November 2, 1995)]
Page 1
d.d. - S;
Memorandum of Understanding
III I
1.2 Response to Inquiries and Business Leads.
The City will continue to cooperate with the SDEDC by providing timely responses to information
requests regarding the site or building availability, incentives, permit processing and other issues related
to business development in Chula Vista, as well as to provide proactive follow-up to business referrals.
1.3 Participation in SDEDC Sponsored Events.
The City will continue to participate in and coordinate with events sponsored by the SDEDC as
appropriate and within budgetary constraints.
1.4 Availability of Chula Vista Promotional Materials.
The City will continue to provide SDEDC with promotional materials and information both
proactively and as requested to assist SDEDC in promoting the region and to highlight Chula Vista
information as appropriate.
1.5 Acknowledgement of SDEDC.
The City agrees to acknowledge SDEDC contributions which lead to the successful attraction or
retention of desirable business or development in Chula Vista.
2. SAN DIEGO ECONOMIC DEVELOPMENT CORPORATION DUTIES.
2.1 SDEDC Board and Committee Representation.
In accordance with existing SDEDC by laws as pertains to representation of funding government
entities (section 3.3.2) the SDEDC agrees to allow the City of Chula Vista to participate in the selection
of a Chula Vista business representative for the SDEDC Board from a list of members in good standing
prepared by the SDEDC. The City of Chula Vista shall also be invited to appoint a Council, staff, and/or
business representative to any of the SDEDC advisory committees, (including Team San Diego Business
Advisory Board, International Advisory Committee, Business News Bureau, and Cross Border Economic
Development/International Trade Legislative Action Committee).
2.2 Referral of Business Leads.
The SDEDC will continue to forward all appropriate business development leads to the Economic
Development division within Chula Vista's Community Development Department in a timely manner.
Sources of leads will include, but are not limited to, the State's Trade and Commerce Agency; inquiries
generated by ad placements, conferences and trade shows, and trade missions; general "call-ins" and
"walk-ins"; and other sources, including other public or private entity referrals.
2.3 Retention Activities.
SDEDC retention efforts will include Chula Vista companies in the survey, on-site visits, and
interview process.
2.4 Promotional Materials.
SDEDC promotional materials shall integrate information regarding Chula Vista assistance
programs, development projects, special events, business trends, business support systems,
demographics, amenities and other pertinent and general information as appropriate.
2.5 Public Relations.
SDEDC's public relations and image improvement program will proactively include Chula Vista
program, activities and firms, including participation in the SDEDC Business News Bureau.
[(MD}c:\wp51\document\597.95 (rev. November 2, 1995))
Page 2
d~-l,
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Memorandum of Understanding
2.6 Public Policy.
SDEDC's pro-business public policy program will include proactive solicitation of Chula Vista public
and private leaders to participate in discussion forums when appropriate, and Chula Vista involvement in
the development of information to be distributed amongst policy makers when appropriate, as well as the
presentation of such information to the policy makers when appropriate.
2.7 Trade Shows and Conferences.
The SDEDC agrees to: 1) notify the Economic Development Division in advance of
participation/exhibition at trade shows and conferences, and 2) disseminate information regarding Chula
Vista economic development efforts at the SDEDC booth. SDEDC also agrees to advise Chula Vista of
opportunities to partner with SDEDC and/or "Team California".
2.8 Trade Missions.
The SDEDC will notify the Chula Vista Economic Deveiopment Manager well in advance of foreign
or U.S. trade missions or incoming business delegations and will invite Chula Vista representative(s) to
participate where appropriate. SDEDC will proactively seek and offer opportunities to Chula Vista to co-
host these events, and to offer Chula Vista tours or receptions as appropriate. SDEDC will provide Chula
vista with a list of the incoming delegation participants to facilitate follow-up by Chula Vista staff as
appropriate, and will share all trade mission generated leads as appropriate.
2.9 One Stop Permit Assistance Center.
The SDEDC agrees to provide technical assistance to city-wide Chula Vista commercial and
industrial businesses via the one stop regional permit assistance center, generally in accordance with the
management systems previously established related to the High Tech/Biotech Zone.
2.10 Quarterly Reporting.
Coinciding with the Chula Vista fiscal year, Juiy 1 to June 30, the SDEDC will make quarterly
reports to the City (with each report due at the end of the quarter) utilizing the reporting format provided
in Exhibit 1. By responding to each item on Exhibit 1, the SDEDC will provide information regarding its
economic development activities which have taken place over the reporting quarter and highlighting the
benefit to Chula Vista. Where no activities have taken place in a particular category, the item should
simply be marked "Not Applicable." The standardized reporting format allows for the SDEDC (and other
economic development entities receiving funding from the City) to provide the following information, as
applicable:
a. Names of all businesses that the SDEDC has successfully assisted, broken out by
recruitment, retention, and expansion assistance, and identifying each businesses' original
location, and relocation jurisdiction and site (as applicable). This information should
highlight Chula Vista businesses assisted, and include the name and title of the Chula
Vista business contact and phone.
b. Names of businesses that were referred to City of Chula Vista staff for local assistance;
information concerning follow-up assistance provided to these clients by SDEDC; and final
outcome of client assistance (e.g. site selection; etc.).
c. Names of business clients personally shown Chula Vista sites by SDEDC; information
concerning follow-up assistance provided to these clients by SDEDC; and final outcome
of client assistance (site selection).
[(MD)c:\wp51\document\597.95 (rev. November 6, 1995)]
Page 3
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""
"C
Memorandum of Understanding
d. Copies of all marketing materials produced by the SDEDC during the reporting quarter and
identification of information included in these materials which promotes Chula Vista and/or
specific Chula Vista amenities, events, projects, programs, businesses, services or other
pertinent activities. Upon execution of this MOU, SDEDC shall provide Chula Vista a list
of all existing PR materials currently available to clients, and shall make available 10
copies each of these and of new materials as requested by the City, offering additional
copies for purchase by the City at cost. .
e. listing of all marketing activities undertaken during the reporting quarter and an
explanation of how Chula Vista was either represented and/or directly involved. This
listing should include, but not be limited to:
Print advertising
Trade shows (exhibits)
Conferences/seminars (presentations)
. Trade missions (both in-bound and foreign)
Business delegations/receptions
. PR efforts to promote positive news coverage, including the "Business
News" Bureau
Newsletters
Press releases
Direct mail
f. Quantification of all businesses visited as part of the SDEDC business retention ("Local
Outreach") program highlighting Chula Vista businesses visited. For Chula Vista
businesses SDEDC will provide company names and locations, and business contact, title,
and phone.
g. List of all businesses successfully assisted by the One Stop Permit Assistance Center,
highlighting Chula Vista businesses.
h. Quantification of the total number of company's provided "Red Team" assistance. Identify
all successful efforts by providing company name and location, and contact name, title and
phone, highlighting Chula Vista companies assisted. Also, identify the members of each
"Red Team" by name, title, and organization. For each successful "Red Team" effort
briefly summarize the company's needs and issues and the type of assistance provided.
i. Identification of any business or other surveys conducted and explanation of how Chula
Vista was represented and/or directly involved.
j. Listing and description of any public policy forums and/or advocacy meetings held and
explanation of how Chula Vista was represented and/or directly involved.
k. Identification of efforts made to promote utilization of regional firms for goods and services
as part of the "Buy San Diego" program and explanation of how Chula Vista businesses
were directly involved and/or represented.
[(MD)c:\wp51\document\597.95 (rev. November 2, 1995)]
Page 4
~.). -%'
,1i~/
'~
Memorandum of Understanding
I. Description of efforts to promote regional targeted industries and technology specialties,
including the environmental industry and the biotech/biomed industry, and explanation of
how Chula Vista was represented and/or directly involved. This should specifically include
reporting on efforts to assist Chula Vista to promote the Chula Vista High Tech/Biotech
Zone, including the Western Regional BioProcessing Center, and the Border
Environmental Commerce Alliance (BECA).
m. Description of efforts to support Chula Vista-initiated economic development efforts and
special projects that actively seek regional, state and/or federal funding and/or
programmatic support, such as the two Chula Vista cluster-related initiatives referenced
in item "1" above (High Tech/Biotech Zone and Western Regional BioProcessing Center;
and Border Environmental Commerce Alliance) and the Hydrogen Fuel Cell Business
Demonstration Program.
Coinciding with the end of the Chula Vista fiscal year, the SDEDC will provide the City's Economic
Development Manager with a copy of the SDEDC annual report. If the annual report is not yet available,
the SDEDC will notify the Economic Development Manager as to when the report should be expected.
[SIGNATURE PAGE FOllOWS]
[(MD}c:\wp51\document\597.95 (rev. November 2,1995)]
Page 5
~~~
Memorandum of Understanding
Signature Page to the Memorandum of Understanding between the City of Chula Vista and the San Diego
Economic Development Corporation in support of their mutually beneficial regional economic development efforts.
IN WITNESS WHEREOF, City and SDEDC have executed the Memorandum of Understanding thereby indicating
that they have read and understand same, and indicate their full and complete consent to its terms.
DATED:
,1995
City of Chula Vista
BY:
Shirley Horton, Mayor
ATTEST:
Beverly Authelet, City Clerk
APPROVED AS TO FORM:
Bruce M. Boogaard, City Attorney
DATED:
,1995
San Diego Economic Development Corporation
BY:
Daniel Pegg, President
[(MD)c:\wp51\document\597.95 (rev. November 2,1995)]
Page 6
d~-'D ~:"-/~
MEMORANDUM OF UNDERSTANDING BETWEEN THE .CITY
OF CHULA VISTA AND THE SOUTH COUNTY ECONOMIC
DEVELOPMENT COUNCIL IN SUPPORT OF MUTUALLY
BENEFICIAL SOUTHBA Y ECONOMIC DEVELOPMENT
EFFORTS
This MEMORANDUM OF UNDERSTANDING (MOU) is entered into and effective as of , by and
between the City of Chula Vista, a chartered municipal corporation ("City") and the South County Economic
Development Council, a non-profit corporation ("SCEDC") with reference to the following facts:
RECITALS
A. WHEREAS, the City of Chula Vista has determined that business development and job creation
is important to the City's economic health and stability; and
B. WHEREAS, the City recognizes the importance of participating in regional as well as local
economic development efforts; and
C. WHEREAS, the South County Economic Development Council plays a major role in South bay
economic development efforts; and
D. WHEREAS, the City as part of the fiscal year 1995-96 budget awarded SCEDC $7,500 to support
their South bay economic development efforts; and
E. WHEREAS, SCEDC understands that this City support is contingent upon the execution of a MOU
which provides for quarterly reporting of activities which benefit the South San Diego region and specifically Chula
Vista, and representation on the SCEDC Board and various committees; and
F. WHEREAS, SCEDC understands that future funding requests will be evaluated in light of SCEDC's
performance as refiected in their quarterly reports.
NOW, THEREFORE, in consideration of the above recitals, the mutual obligations set forth herein, and
other valuable consideration, the receipt and sufficiency of which the parties hereby acknowledge, the City and
SCEDC do hereby agree as follows:
1. CITY OF CHULA VISTA DUTIES.
1.1 Financial Support.
The City agrees to fund the efforts of the SCEDC in the amount of $7,500 in fiscal year 1995-96,
contingent upon the receipt of four (4) quarterly reports and representation on the Board and committees
as stipulated in this MOU.
Payment shall be made in two equal installments of $3,750 each. The first payment will be made
upon receipt of a SCEDC invoice and delivery of the 2nd quarterly report. The second payment will be
made upon receipt of a SCEDC invoice and delivery of the 4th quarterly report and the SCEDC annual
report.
1.2 Response to Inquiries and Business Leads.
The City will continue to cooperate with the SCEDC by providing timely responses to information
requests regarding the site or building availability, incentives, permit processing and other issues related
to business development in Chula Vista, as well as to provide proactive follow-up to business referrals.
1.3 Participation in SCEDC Sponsored Events.
The City will continue to participate in and coordinate with events sponsored by the SCEDC as
appropriate and within budgetary constraints.
[(MD)c:\wp51\document\599.95 (rev. November 9, 1995)]
Page 1
...l..~-J3
Memorandum of Understanding
-
1.4 Availability of Chula Vista Promotional Materials.
The City will continue to provide SCEDC with promotional materials and information both
proactively and as requested to assist SCEDC in promoting the Southbay region and to highlight Chula
Vista information as appropriate.
1.5 Acknowledgement of SCEDC.
The City agrees to acknowledge SCEDC contributions which lead to the successful attraction or
retention of desirable business or development in Chula Vista.
2. SOUTH COUNTY ECONOMIC DEVELOPMENT COUNCIL DUTIES.
2.1 SCEDC Board and Committee Representation.
The SCEDC agrees to the City of Chula Vista Council selecting a representative from among
themselves and one alternate to represent Chula Vista on the SCEDC Board on a yearly basis. Further,
the City of Chula Vista may appoint Councilor staff liaisons to attend the Board meetings as non-voting
members. The City of Chula Vista shall also be invited to appoint 1 or more representatives to any of the
SCEDC advisory committees.
2.2 Referral of Business Leads.
The SCEDC will continue to forward all business development leads to the Economic Development
division within Chula Vista's Community Development Department in a timely manner. Sources of leads
will include, but are not limited to, the State's Trade and Commerce Agency; SCEDC inquiries generated
by ad placements, conferences and trade shows, and trade missions; general "call-ins" and "walk-ins"; and
other sources, including other public or private entity referrals.
2.3 Retention Activities.
SCEDC retention efforts will include Chula Vista companies in the survey, on-site visits, and
interview process.
2.4 Promotional Materials.
SCEDC promotional materiais shall integrate information regarding Chula Vista assistance
programs, development projects, special events, business trends, business support systems,
demographics, amenities and other pertinent and general information as appropriate.
2.5 Public Relations.
SCEDC's public relations efforts will proactively include Chula Vista program, activities and firms,
including articles in the "Briefings" newsletter.
2.6 Public Policy.
SCEDC's will proactively solicit Chula Vista public and private leaders to participate in public policy
discussion forums and meetings, and Chula Vista involvement in the development of information to be
distributed amongst policy makers, as well as the presentation of such information to the policy makers.
2.7 Trade Shows and Conferences.
The SCEDC agrees to: 1) notify the Economic Development Division in advance of
participation/exhibition at trade shows and conferences, 2) disseminate information regarding Chula Vista
economic development efforts at the SCEDC booth, and 3) to encourage partnerships with Chula Vista
in terms of shared space and/or co-staffing of the SCEDC booth. SCEDC also agrees to advise Chula
Vista of opportunities to partner with SCEDC.
((MD)c:\wp51\document\599.95 (rev. November 2,1995)]
Page 2
~~ -1'-\
Memorandum of Understanding
2.8 Trade Missions.
The SCEDC will notify the Chula Vista Economic Development Division well in advance of foreign,
out-of-city or out-of-state missions and of incoming business delegations and will invite Chula Vista
representative(s) to participate. SCEDC will proactively seek and offer opportunities to Chula Vista to co-
host these events, and to offer Chula Vista tours or receptions as appropriate. SCEDC will provide Chula
vista with a list of the incoming delegation participants to facilitate follow-up by Chula Vista staff as
appropriate, and will share all trade mission generated leads.
2.9 Quarterly Reporting.
Coinciding with the Chula Vista fiscal year, July 1 to June 30, the SCEDC will make quarterly
reports to the City (with each report due at the end of the quarter) utilizing the reporting format provided
in Exhibit 1. By responding to each item on Exhibit 1, the SCEDC will provide information regarding its
economic development activities which have taken place over the reporting quarter and highlighting the
benefit to Chula Vista. Where no activities have taken place in a particular category, the item should
simply be marked "Not Applicable." The standardized reporting format allows for the SCEDC (and other
economic development entities receiving funding from the City) to provide the following information, ~
applicable:
a. Names of all businesses that the SCEDC has assisted, broken out by recruitment,
retention, and expansion assistance, and identifying each businesses' original location,
and relocation jurisdiction and site (as applicable). This information should highlight Chula
Vista businesses assisted, and include the name and title of the Chula Vista business
contact and phone.
b. Names of businesses that were referred to City of Chula Vista staff for local assistance;
information concerning follow-up assistance provided to these clients by SCEDC; and final
outcome of client assistance (e.g. site selection; etc.).
c. Names of business clients personally shown Chula Vista sites by SCEDC; information
concerning follow-up assistance provided to these clients by SCEDC; and final outcome
of client assistance (site selection).
d. Copies of all marketing materials produced by the SCEDC during the reporting quarter and
identification of information included in these materials which promotes Chula Vista and/or
specific Chula Vista amenities, events, projects, programs, businesses, services or other
pertinent activities. Upon execution of this MOU, SCEDC shall provide Chula Vista a list
of all existing PR materials currently available to clients, and shall make available copies
of these and of new materials as requested by the City on an ongoing basis.
e. Listing of all marketing activities undertaken during the reporting quarter and an
explanation of how Chula Vista was either represented and/or directly involved. This
listing should include, but not be limited to:
Print advertising
Trade shows (exhibits)
Conferences/seminars (presentations and/or sponsorships)
Trade missions (both in-bound and foreign)
Business delegations/receptions
PR efforts to promote positive news coverage
Newsletters
Press releases
Direct mail
[(MD)c:\wp51\document\599.95 (rev. November 6, 1995)]
Page 3
~-/S-
Memorandum of Understanding
f. Quantification of all businesses visited as part of a SCEDC retention program, including
respective names and locations, with Chula Vista businesses highlighted, and including
the Chula Vista business contact name, title and phone.
g. Identification of any business or other surveys conducted and explanation of how Chula
Vista was represented and/or directly involved.
h. Listing and description of any public policy forums and/or advocacy meetings held and
explanation of how Chula Vista was represented and/or directly involved.
i. Identification of any efforts made to promote utilization of regional firms for goods and
services as part of the "Buy South bay" program and explanation of how Chula Vista
businesses were directly involved and/or represented.
j. Description of efforts to support Chula Vista-initiated economic development efforts and
special projects that actively seek regional, state and/or federal funding and/or
programmatic support, such as the High Tech/Biotech Zone and Western Regional
BioProcessing Center; and Border Environmental Commerce Alliance, and the Hydrogen
Fuel Cell Business Demonstration Program.
Coinciding with the end of the Chula Vista fiscal year, the SCEDC will provide the City's Economic
Development Manager with a copy of the SCEDC annual report. If the annual report is not yet available,
the SCEDC will notify the Economic Development Manager as to when the report should be expected.
The SCEDC agrees to respond to requests regarding the SCEDC budget.
[SIGNATURE PAGE FOLLOWS]
[(MO)c:\wp51\documenl\599.95 (rev. November 2, 1995)]
Page 4
~-lb
Memorandum of Understanding
Signature Page to the Memorandum of Understanding between the City of Chula Vista and the South County
Economic Development Council in support of their mutually beneficial South bay development efforts.
IN WITNESS WHEREOF, City and SCEDC have executed the Memorandum of Understanding thereby indicating
that they have read and understand same, and indicate their full and complete consent to its terms.
DATED:
,1995
City of Chula Vista
BY:
Shirley Horton, Mayor
ATTEST:
Beverly Authelet, City Clerk
APPROVED AS TO FORM:
Bruce M. Boogaard, City Attorney
DATED:
,1995
South County Economic Development Council
BY:
Doug Perkins, Executive Director
[(MD)c:\wp51\documEml\599.95 (rev. November 2,1995)]
~-1l}J(-/9
Page 5
!~:(
'J,',
619 2341935
'II
ECONOMIC OEVELOPMENT'iiCORP.
P.01
. . .
'. .
06-20-1995 11:07
City of SUltee $ 3,000
FY 95/96 Actual
R qs-j'l' City of Vista is 5,000 City of San Diego
KclS(\Jesreo City of San Marcos $ 1,000 Port District ~
City ofChula Vista $10,000 San Diego County
City orOceansidll S 5,000 Carlsbad
Escondido
EDe
SaD Diego Economic Development Corporadon
701 B Street, Suite 1850
San Diego, CA 92101
234-8484, (fax) 234-1935
EXHIBIT A
MEMORANDUM
TO; CURTIS VALENZUELA 1
FROM: JANE SIGNAIGOoCOX
~, -,,,.,
RE: ClTY FUNDING ,.",J.,' 1::;I:(p
DATE: JUNE 20, 1995
As requested, the following IItll cities ill SUI Diego region funding 1he SUI Diego
Economic Development Corporation during this 6scal year '95 llDll their level offlmdlf\&:
City ofSctn Diogo $670,453
CityofCarlab8d is 10,000
CityofPoway is 1,000
CityofEscoadido $ 1,000
WIlIltll projecting the IIlme level offilndlng ftom SlID Diego, Cerlsbed IlDd EtcoDdido
1bl.s upnnml"l ycIt' (FbeaI Yew '96). W. an projoctlDc rocelvIDc $5.000 from Poway
thll upeomlq yoar. Furthermore, welltll actively purIIliDs 8dditionsl funding 1iom
o1hc:r oities fur 1bl.s ,.,...-1,,& fiscal year. They arc (with amounts requesting):
$593,271
$110,000
$30,000
$10,000
$1,000
Poway
$1,000
~d.-r /;.:1-#:.
-.. -- ---- -- ~.,.. '."......" ....J............... "-UU.'l11 CUI",...
. TO
4765310 P.02
EXHIBIT B
South Couiuy Economic Developmettt Council
Source
Cuttently BudgetedJ
Or~_
F'-l -<t.-i 9~
Proposed FY 96
f-<{ 1:r/lb
City of Chula Vista
$ 7,500.00 $ 15,000.00
$ ; 1,000.00 $ 1,000.00
$ 1,000.00 $ '1,000:00
"fr.
$ U,299.00" $ 15,000.00
$ 14,250.00 $ 40,000.00
$ 5,500.00 $ 10,000.00
. .. .
$ 15,000.00 $ 15,000.00
Oty of Coronado
CIty of Imperial Beach
. C1ty of Natio.nat City
Clry of San Diego
CounLy of San Diego
San Diego Port DJ.st.
· - City of NatiooaI CIty leases SCEDC apptoximate1y 400 Sq.Ft. of space Inlnrl(l
spaoc. .' ..... . ..': . .
I, .
~
I
i dd--dd.-)~~-~'
TOTA... P.02
"f'
\:)ti-1ti-188~ .1.~: tl1.
m9 2341935
ECONOMIC DEVELOPMENT CORP.
P.03
-.
J.DEOL-
6~-L-AWS
EXHmIT C
members.
CHAPTER 3
DIRECTORS
3.1 PO""I'S of Dtl'lletot'S. SUbJect to limitations In the Articles of
Incorporation, thIS' Bylav" and all applicable laws, an powers of
the Corporation shall be exercised by or under the authority of, and.
the business and affafrs of the Corporatfon shall b. controlled by,
the Board. Without Hlliting the foregoing, the Board shall have the
following powers:
3.1.1 To select and rllllOve all of the officers, agenu and employees
of the Corporation, prescribe such powers and duties for then
as lIay not be Inconsistent with law, the Articl.s, or these
Bylaws, Ind fix their compensation;
3.1.2 To conduct, manage and control the affairs and business of the
Corporation and make such rules and regu1ations therefore 1$
they Ilay delllll best;
3.1.3 To set the amount of dues froll time to tiMe to be paid by the
members;
3.1.4 To borrow IIOney and incur fndebtedness for the purposes of the
Corporation. and to cause to be executed and delivered
therefore, In the corporate n_, pl"Olllissory notlS, or other
evidences of debt and instruments securillf the payment of the
same;
~..2
3.1.5 To cooperate and coordinate clos.lywlth the Greater San Diego
Chamber of COIIIIIIrce (th. "Chamber"), wIth respect to the
purpose for which the Corporation is famed, including but not
limited to prOVidIng for the President of the Corporation to
sit .ex-off1clo on.the Board of Directors of the Chamber, to
work toward the Ivai dance of duplication of effort by IssUlIling
sole responsibility fn the 8Con~ic development field fn the
City and County of San Diego.
~ISS and lfulllbsl' nf Dired:orl. The Board shall consist of two
c mes 0' D~r:::07~.nV9Vn~'u~~rec:J~Jnd d~~~~:~ng :~~~i~~o
ors, eac salve e Slllle
vot ng 9 s. on-yo ng rec shill consIst Df Honorlry
Directors desIgnated bY the Board. ~ n~8r of Votin9 Directors
-.lban h. not less tbfi 12 nor IIOre ~.H.. The exaet number of
Voting Directors .ha be fixed wit in tliit I1l1its set forth In
Section 3.3. The number of Hon.iovot1nll Directors shan be dete1'lllined
by the nUllb11' of persons meeting the qualification requil"llllllnts.
nualification of Dil'8ctDl's.
3.3
8
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ECONOMIC DEVELOPMENT CORP.
P.(J4
3.3.1 Elected Directors. There shall be -a lIinilllllnl of 8 and a
IIlXimulII of 18 Directors elected by the Members. All Directors
elected by the Members shall be Melllbers fn good standing or
-- representatfves of Members In good standing.
---~
(3.3.2 AP, POf, n,t, ed Dil"eCtars. ~~~ ~!..~s IShaM be
-L/ ==1~;:f~M~e!a~~=~:;:!~ fg!
c.:~ of ..s4UI-/)I'f~' ,,- 2.. nurilber of DI rectors to be designated by a publf c member shall
= t"' ^ S - I be established by the Board. Appofnted Directors shall serve
eO '->> 111m I S I for 3 year terns. The posftion of any Director not so
~_.. A.~_O C'tO{)l\h. - I desfgnated shall be fflled in accordance with Sectl,on, 3.5.
,;,>I(U\. Vl - "4) Those DI rect rs a ointed the fund s 1
' e Presf ent s i '>
e avotfngblll he/she slIrves as/
President.
3.3.3 Ex-officio Directors. The following persons shall be
Ix.officio directors of the Corporation: The IllOst recent past
Chdnlliln of the Board whose tel'll IS a Director elected by the
members has expired, for a one year term and the President of
the Sreater San Diego Chamber of CommercII. so long as
comparable membership on the Chamber's Board of Directors fs
extended to the Corpora~ion's President.
Term of O~'1cl!. Except as. otherwise proVided in these Bylaws,
directors shall be e119ible to serve two three year terms of offfce.
The tel'll of office of any appointed director shall terminate IS of
the end of any year during which the public aglll1CY IIIking that
appointment has 'ailed to fulff11 fts funding obligations pursulnt
to then eJCisting contracts between the agency and the CO\"porltion or
has detlrmined not to fulf111 such office until their respective
successors are elected or designated, as the elSe lilY tie, and
qual tffed.
V4cancies 11 t~e Board. If a director fails to serve his or her
full term 0 of iCI, the Board shall fill such vacancy by a lIIIjority
vote .1though less than a quorum, or by the vote of a sole
,...Inin; director. Such vacancy shall be filled ~ the Board at
its next regular ..eting after the occurrence of the vacancy or at
a sPlcfalmeeting of the Board called for the purpose of filling the
vacancy Wi th I n a reasonab 1 e time after such oc:c:urrence. Each
director so elllcted shill hold office for the balance of the tll'lll of
his predecessor if elected due to vacancy by death, resignation or
removal, and ff otherwfse thin as fixed by thl Bylaw.
3.4
3.5
A vacancy or vacancies in the Board shall be deemed to exist In the
caSI of death, reslgnatfon or relloval of any director: or if the
authorized nulllber of dfrectors is increased: or if the members f.fl
at any annual eetfnlJ or special meeting at whfch a director or
directors are elected. to elect the full authorized nlllllber of
directors to be voted for at that meeting. A vacancy or vacancfes
9
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ow
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GV~ LAWS
EXHffiIT D
.
meetings of the Council, only such business as stated in the call for such
meeting shall be transacted.
When a special meeting Is called, the Secretary shall give the members
five (5) days notice of such meeting by mail, faX, or telephone, stating the
time, place, and the business to be transacted at the special meeting.
~ctlon.t. ve"~tt ~ch i~~iViduAI mAmbor and ggoh mgmbQl!' r8pr8!8ntfltive
shall be entitled to one vote on issues before the council. Absentee or
proxy voti"~ !1l!1I not bo pgrrnittsu. Majority of vats! cast will approve.
Section 5. QUORUM FOR MEETINGS. Twenty-five percent of the total number
of members entitled to vote, represented in person at the meeting, shall
constitute a quorum for a meeting of members.
Exoopl ~ 6tM~!1 ~fC~dOd in thO Artiolo~ of Inoorporcruon, in th8!@
Bylaws, or by law, every act or decision done or made by a majority of the
members present at a meeting duly held at which a quorum is present
shall be the act of the Council.
-
The members present at a duly called or held meeting at which a quorum
is pre~nt may continue to transact business until adjournment
notwithstanding the withdrawal of enough members to leave less than a
quorum, if any action taken (other than adjournment) is approved by at
least a majority of the members r~uifAd t6 MnAtitutA a Quorum.
In the absence of a quorum, any meeting of members may be adjourned
from time to time by the vote of a majority of the members present, but no
other business may be transacted.
ARTICLE VII . DESCRIPTION. OF BOARD OF DIRECTORS
sectIon 1. QUAUflGATlON5. DlreGlorn ohall be elOGtod from thu memb@rihlp of
the Council, and must continue to be members In good standing or
representatives of members in good standing during their term of office.
Section 2. COMPENSATION. The Directors shall receive no compensation or
salary from the Council for their services in acting as directors of the
Council. They may receive expenses for special activities on behalf of
the Council upon vote by the Board of Directors.
.
.,'
Secuon 3. BOARD OF DIRECTORS.
~ ~
i The Board of Director may increase or decrease t e (
number of voting and non-voting members as they deem necessary to
further the goals of the Council. This discretion includes appointing Ex.
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It
officio Directors, such appointment to enjoy all the privileges of
Dlrectol'$hip except voting.
All Directors shaD be members of the Council.
Section 4. MANNER OF SELECTION AND TERM OF OFFICE
Elede(l Direaors. Beaod Dlreaors shall take office on the first day of
Janual)' following their election and shall serve for two years. In selecting
the first Elected Board of Directors, seven (7) Directors shall be elected
for one year terms and seven (7) Dil9ctors for two year tenns. In addition,
Qffi991i fh~" be (I~9lW PUlWint to ArtiOle XI Suction 1.
.
. Section 5. VACANCIES. Subject to the provisions of Section 5226 of the
CaUfomla Non-profit Public Benefit Corporation Law, any Director may
resign effective upon gMng written notice to the President or the
Secretary of the Board. Such resignation will be effective when received
unless the notice specifies a later time for the effectiveness of such
resignation. If the resignation is effective at a future time, a successor
may be selected before such time, to take offlce when the resignation
becomes effective.
Vacancies In the Board of Directors shall be filled from the members of
the Council by a majority vote of the remaining Directors, and the person
fIIUng the vacancy shall hold office until the expiration of the term being
filled.
.
Section 6. REGULAR MEETINGS. The Board of Directors shall meet monthly at
a time and place to be determined by the Board. Regular meetings shaU
be held on five (5) days' notice by first-class mail, postage prepaid, or on
forty-eight (48) hours' notice delivered personally, or by telephone or
telegraph. Notice of the regular meeting need not be given to any
Director who signs a waiver of notice or a written consent to hold the
meeting or any approval of the minutes thereof, whether before or after
the meetlng, or who attends the meeting without protesting. prior thereto
or at Its commencement, the lack of such notice to such Director. AR such
5
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EXHIBIT 1 TO MOU
QUARTERLY REPORT OF ACTIVITIES TO CITY OF CHULA VISTA
FOR THE PERIOD OF:
1. TOTAL BUSINESSES ASSISTED - Fill in #'5 below and complete Attachment A.
TYPE OF
ASSISTANCE
TOTAL #
ASSISTED
COUNTYWIDE
# SUCCESSES
COUNTYWIDE
TOTAL #
ASSISTED IN
CHULA VISTA
# SUCCESSES
IN CHULA VISTA
Attraction Go to #2 Go to #2
Retention
Expansion
2. CHULA VISTA-RELATED ATTRACTION EFFORTS - Fill in #'s below and complete Attachment A.
TOTAL #
#OF
SUCCESSFUL
RECRUITMENTS
Companies referred to
Chula Vista staff
Companies shown Chula
Vista sites
3. PROMOTIONAL ACTIVITIES - List marketing materials produced during the quarter and highlight
any materials directly promoting the City of Chula Vista.
PROMOTIONAL ITEM
NATURE OF ITEM AND
TARGET AUDIENCE
HOW PROMOTES CHULA
VISTA, AS APPLICABLE
Print Ads:
Brochures:
((MD)c:\wp51\document\617.95 (rev. November 2, 1995)]
PAGE 1
dd--~
EXHIBIT 1 TO MOU
QUARTERLY REPORT
FOR THE PERIOD OF:
PROMOTIONAL ITEM
NATURE OF ITEM AND
TARGET AUDIENCE
HOW PROMOTES CHULA
VISTA, AS APPLICABLE
Newsletters:
Press Releases or Other PR:
Direct Mail:
4. PROMOTIONAL ACTIVITIES - List business outreach activities undertaken during the quarter and
highlight any activities directly promoting the City of Chu/a Vista.
PROMOTIONAL ACTIVITY
Trade Shows:
NATURE OF EVENT AND
TARGET AUDIENCE
HOW PROMOTED CHULA
VISTA, AS APPLICABLE
Conferences/Seminars (e.g. SCEDC Economic Summit):
I(MD)c:\wp51\document\617.95 (rev. November 2, 1995)]
PAGE 2
d.;)..-~l
EXHIBIT 1 TO MOU
QUARTERLY REPORT
FOR THE PERIOD OF:
PROMOTIONAL ACTIVITY
NATURE OF EVENT AND
TARGET AUDIENCE
HOW PROMOTED CHULA
VISTA, AS APPLICABLE
Trade Missions:
Business Delegations/Receptions:
Shop Local Program (e.g. "SDEDC Buy San Diego"):
5. BUSINESS DEVELOPMENT ACTIVITIES - List business development activities undertaken during
the quarter and highlight how Chula Vista officials or businesses were involved, as applicable.
ACTIVITY
NATURE OF ACTIVITY
AND AUDIENCE
HOW CHULA VISTA INVOLVED
Surveys Conducted:
Public Policy Forums:
Technology Specialties: (Discuss special projects to assist targeted industries. Highlight efforts undertaken to
assist the City of Chula Vista in promoting the High Tech/Biotech Zone, the Westem Regional BioProcessing Center,
the Border Environmental Commerce Alliance, including the Border Environmental Technology Resource Center and
the Border Environmental Business Cluster, and other technology related projects such as the Hydrogen Fuel Cell
Bus Demonstration Program.)
[(MD)c:\wp51\document\617.95 (rev. November 2, 1995)]
PAGE 3
~-30
'"
ATTACHMENT A TO EXHIBIT 1
QUARTERLY REPORT
BUSINESSES SUCCESSFULLY ASSISTED
FOR THE PERIOD OF:
1. ATTRACTION - Identify all businesses successfully recruited to the San Diego area. List all
companies relocating to Chula Vista first.
COMPANY NAME
GENERAL
INDUSTRY
TYPE
CONTACT NAME
TITLE
PHONE
ORIGINAL
CITY &
RELOCATION
CITY
NATURE OF
ASSISTANCE
2. RETENTION - Identify all companies successfully assisted to retain their operations in the San Diego
area. List all Chula Vista companies first. If a Red Team was used, please enter information in
Section 4.
COMPANY NAME
GENERAL
INDUSTRY
TYPE
CONTACT NAME
TITLE
PHONE
CITY
NATURE OF
ASSISTANCE
[(MD)c:\wp51\document\617.A (rev. November 2, 1995)1
PAGE 1
d-d - ~,
(C/r"'"
I (
ATTACHMENT A TO EXHIBIT 1
QUARTERLY REPORT
FOR THE PERIOD OF:
3. EXPANSION - Identify all businesses successfully assisted to expand their operations in the San
Diego area. List all Chula Vista companies first. If a Red Team was used, please enter information
in Section 4.
GENERAL
INDUSTRY
TYPE
CONTACT NAME
TITLE
PHONE
CITY
4. RED TEAMS
a. Fill in total numbers assisted below.
# ASSISTED # ASSISTED IN
COUNTYWIDE CHULA VISTA
TYPE OF ASSISTANCE
I Retention
Expansion
b. Identify all successful efforts. List any Chula Vista companies first.
COMPANY NAME
INDUSTRY
TYPE
CITY
NATURE OF
ASSISTANCE
((MD)c:\wp51\document\617.A (rev. November 2, 1995)]
PAGE 2
~~- 3~
n
ATTACHMENT A TO EXHIBIT 1
QUARTERLY REPORT
FOR THE PERIOD OF:
5. ONE STOP PERMIT ASSISTANCE - Identify all businesses successfully assisted by the One Stop
Permit Assistance program. List any Chula Vista businesses first.
COMPANY NAME
GENERAL
INDUSTRY
TYPE
CONTACT NAME
TITLE
PHONE
((MD)c:\wp51\document\617.A (rev. November 2, 1995)]
PAGE 3
d.~;'"?3
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RESOLUTION
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY OF CHULA VISTA
AND THE SOUTH COUNTY ECONOMIC DEVELOPMENT
COUNCIL IN SUPPORT OF MUTUALLY BENEFICIAL
SOUTHBA Y ECONOMIC DEVELOPMENT EFFORTS
WHEREAS, the City of Chula Vista has determined that business development and job creation
is important to the City's economic health and stability; and
WHEREAS, the City recognizes the importance of participating in regional as well as local
economic development efforts; and
WHEREAS, the South County Economic Development Council plays a major role in Southbay
economic development efforts; and
WHEREAS, the City as part of the fiscal year 1995-96 budget awarded SCEDC $7,500 to
support their Southbay economic development efforts; and
WHEREAS, SCEDC understands that this City support is contingent upon the execution of a
MOU which provides for quarterly reporting of activities which benefit the South San Diego region and
specifically Chula Vista, and representation on the SCEDC Board and various committees; and
WHEREAS, SCEDC understands that future funding requests will be evaluated in light of
SCEDC's performance as reflected in their quarterly reports.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA does
hereby fmd, detennine and resolve to authorize the Mayor to execute the agreement between the City
of Chula Vista and the South County Economic Development Council in support of mutually beneficial
Southbay economic development efforts.
&
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PRESENTED BY:
Chris Salamone
Community Development Director
Bruce M. Boogaard
City Attorney
[(MD)c:\wp51\documeDt\619.95 (rev. November 2, 1995)]
~-~~
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RESOLUTION
/%II~
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY OF CHULA VISTA
AND THE SOUTH COUNTY ECONOMIC DEVELOPMENT
COUNCIL IN SUPPORT OF MUTUALLY BENEFICIAL
SOUTHBAY ECONOMIC DEVELOPMENT EFFORTS
WHEREAS, the City of Chula Vista has determined that business development and job creation
is important to the City's economic health and stability; and
WHEREAS, the City recognizes the importance of participating in regional as well as local
economic development efforts; and
WHEREAS, the South County Economic Development Council plays a major role in Southbay
economic development efforts; and
WHEREAS, the City as part of the fiscal year 1995-96 budget awarded SCEDC $7,500 to
support their Southbay economic development efforts; and
WHEREAS, SCEDC understands that this City support is contingent upon the execution of a
MOO which provides for quarterly reporting of activities which benefit the South San Diego region and
specifically Chula Vista, and representation on the SCEDC Board and various committees; and
WHEREAS, SCEDC understands that future funding requests will be evaluated in light of
SCEDe's performance as reflected in their quarterly reports.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA does
hereby f"md, determine and resolve to authorize the Mayor to execute the agreement between the City
of Chula Vista and the South County Economic Development Council in support of mutually beneficial
Southbay economic development efforts.
~
/
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PRESENTED BY:
Chris Salamone
Community Development Director
Bruce M. Boogaard
City Attorney
[(MD)c:\wp5l\document\619.9S (rev. November 2, 1995)}
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CllY Of
CHUtA VISTA
!'tLEM.Q RAl'<LD_ U~~j
November 8, 1995
TO
Honorable Mayor and Councilmembers
FROM
Council member John Moot
<J8W'-
SUBJECT
Implementation of Performance-Based Budgets
I recently attended a training class on budgeting. As a result of this class, and, after completion
of my first budget review process as a Council member, I have many suggestions on how we can
improve our process. Originally, I had an informal discussion with John Goss, who referred me
to our budget manager, Dawn Herring. I met with Dawn to discuss my ideas and found that they
fit in very well with what she and John were trying to do as part of implementation of the new
budget system.
I asked Dawn to prepare some information for me on the recommendation to implement a
performance based budget in Chula Vista. Since I am concerned about having staff complete
work without the full Council's authorization, Dawn has assured me that pulling this information
together took minimal time as she had previously prepared similar reports and that it would take
less that the 8 hours Council limit.
It is my i11lent with this action to have the Council authorize the City Manager to begin
implementation of a "performance based budget". I would recommend that the Council approve
the following list of budget criteria, then refer the implementation process to the City Manager:
I. Establish a Statement of Purpose for each Department and Major Program/Division
2. Establish Goals/Objectives and Performance/Output Measures for Each Division/Program
3. Have Department Heads present all the above information to Council at a regularly
scheduled Council meeting
4. Have the City Manager present a preliminary view of the FY 1996-97 budget revenues,
expenditures and key budget or policy issues. City Council to give direction on priorities
to be addressed in the preparation of the Manager's proposed budget.
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Councilmember John Moot
Implementation of Performance-Based Budgets
October 30, 1995
Page 2
BACKGROUND
Sometimes it's easy to slip into the pattern that the budget is just something that needs to be done
on an annual basis. When this happens I believe we can lose sight of the fact that the budget is the
primary policy and direction setting forum for the City. If we can provide better policy direction
at the beginning of the process, then we can make our budget a more useful and viable long-range
planning tool.
Currpnt Runget Format
Chula Vista's existing budget format has been in place in excess of ten years. The budget format
is most closely aligned to a line item budget, with financial information presented by department.
All discussion related to each individual department is stated in a narrative description of the
department which includes changes frolll the current budget, revenue sources, sOllle goals and
objectives and issues facing the department. The format of these department narratives, while
generally consistent, are not standardized and have been flexible in order to convey what was most
appropriate for the current fiscal year. As an introduction to the citywide budget, the City
Manager presents a very detailed narrative transmittal ldter which includes citywide statistical
information, major issues, highlights, revenue detail and other significant factors which were
involved in the development of the proposed budget. This transmittal has been designed to
provide a broad overview of the entire budget so that anyone could read the transmittal and get
a good feel for the City's budget as a whole. While the current budget format includes a
significant amount of valuable and informative information, it can be cumbersome to review and
difficult to find specific information.
The purpose of this format was to get away from line item review by the City Council and to
focus on citywide policy issues, i.e., changes in operations. The City Council desired this
modification of budget format at that time so it could discuss policy issues, not each line item that
went up $200 over the previous year. Basically, it looked at major changes by department, had
mission statement and work program statements for some departments and basically had many
elements of a program budget.
Budget Pr.o.cess
While the budget is primarily reviewed by Council and the public during May and June, then
adopted prior to July 1, the actual budget process is year-round. In general, during the fall,
departments begin to determine their needs for the coming year. At the same time, budget and
finance staff are evaluating the revenue situation and monitoring expenditures to prepare
preliminary information of the City's financial situation for the coming year. Based on this
preliminary information, the City Manager establishes guidelines for departments in the
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Council member John Moot
Implementation of Performance-Based Budgets
October 30, 1995
Page 3
development of their budgets, based on a variety of input/factors including Coucnil directives,
economic conditions, employee negotiations, etc.
Guidelines typically include whether or not departments may submit supplemental, or new,
requests, whether a "cut" list is required and what percent of cut is sought, and other general
directions related to city wide issues such as travel, memberships and assumptions on utility rates.
Based on these guidelines, departments input their budget request into the mainframe budget
system. This specific account information is supplemented with the department's transmittal
memo which included narrative descriptions of major issues in their budget as well as the
department's goals and objectives. In addition to this more formal part of the process, the City
Manager independently provides more specific direction on policy issues to departments to address
as part of their budget submittal.
The dcpartment's budget document is then reviewed by budget staff, the Deputy City Manager,
Assistant City Manager and finally the City Manager. It is the City Manager's recommendation
on changes to the department's request that is ultimately forwarded in the proposeil budget
document to City Council and the public.
NeW-lludgetSystem
The City recognized several years ago that the budget system on the City's mainframe computer
provided significant limitations in retrieving information as well as in presentation of budget
information. As a result, a CIP was developed and approveU to purchase budget system software
to be placed on the City's Local Area Ndwork (LAN) which would provide a more user-friendly
system and significantly improve the presentation of budget information as well as the retrieval
of budget information for improved management decision making. The new budget system has
lx..-en selected and installed on the Citywide LAN. Staff is still in the process of implementation
but will be preparing the FY 1996-97 budget on this new system. When this budget system was
selected, one of the reasons it was preferred was that it allowed the flexibility to apply different
types of budget formats.
Tl1e.-BudgeLas.anJnfmm.tion and Decision_M.1dne Document
One of the difficulties the general public finds in reviewing our budget is that it includes no real
definitions of what each department's purpose is, what they do and what their plans are for the
future. A part of the format built into our new budget system is space to input a mission statement
for each department, goals, objectives and performance and output measures for each division.
As an example, if someone wanted specific information on the Fire Prevention Bureau, the current
budget format only includes information for the entire Fire Department, and you would have to
look within the narrative description to see if anything was written about the Fire Prevention
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Council member John Moot
Implementation of Performance-Based Budgets
October 3D, 1995
Page 4
Bureau. If this was a year that no signiticant changes were made in Bureau's operations it's likely
nothing would be included in the budget document related to the Fire Prevention Bureau's
operations. However, in the proposed format, in addition to the currently provided summary
information on the number of positions and funding level by categories for this division would be
goals, objectives, performance and output measures for the activities related specifically to this
division. In terms of improving Council's ability to make better policy decisions from our
proposed budget document, Council would clearly see the purpose of the Fire Prevention Bureau
and could focus on the types and frequencies of inspections that occur and make recommendations
on changes in inspection levels which may translate into a need for additional staffing.
Eerformanre-Based BudgelS-
Much has been wriUtm about the best type of budget. While there are standard definitions for
many budget types, the reality in most organizations is that they develop a hybrid that most meets
the needs of the organization and the community. The most effective budget system is one that
works for an organization. In reviewing the alternative budget types the main points include: lump
sum budgets which appropriate set amounts of funds, but then provide no controls of expenditures
within that amount; line item which organizes and appropriates by expenditure aecounts to plan
specifically what will be spent; performance and programs which are based on appropriating
based on a work program and specific goals and objectives for that program then evaluation
criteria to measure goal attainment; and finally zero-based which assembles cost/benefit decision
packages and compared these priorities to the funding available.
RECOM.'\fENDA nON
It is my recommendation that the City transition to a performance based budget process. While
the definition of performance budget does not exactly define all the parameters of the type of
budget that will be best for the city, the term "performance" most accurately sends a message that
the budget we want links the funding to some measurement of effectiveness. The goals of the
performance or program budget will provide a more efficient and effective budget by building a
budget from the top down, instead of the bottom up. What this means is that we should be
identifying what we want to accompli5h first, then developing a budget that supports our goals.
While the performance budget most mects our needs, I would not want to focus only on that type
of budget, but include the best aspects from all budget types to create a budget which truly fits out
organization. The aspects which are valuable from each budget type which should be included
are: continued appropriations based on determining spending needs in advance (line item) and
evaluating the cost/bencfit of programs then establishing priorities for funding (zero-based) and
focusing on major City/Department issues.
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Councilmember John Moot
Implementation of Performance-Based Budgets
October 30, 1995
Page 5
While much has been said about the bcnefits of a zerobascd budget, experience in other
organizations is that this only works for a short period of time before transitioning to a line-item
budget. Because budget staff takes such as close look at all expenditure requests, this type of
review is currently occurring.
The main emphasis in transitioning to the performance budget is not the focus on procedure but
on the establishmcnt of a framework to create a budget from a policy perspective.
'Tr~n"'lhnnlng
Even though our new budget system can provide a significant amount of information, it is
unrealistic to believe that this transition year will produce a budget document which meets all of
our ultimate needs. In this transition process, it is recommended that we concentrate and focus
on the following objectives for this first year:
1. Establish a Statement of Purpose for each Department and Major Program/Division
The tenl! starement of purpose more accurately describes the common tenn of mission
statement. This bifonnation will clearly identify why each deparrmem exists, as well as
the purposes for all major divisions, such as Engineering.
2. Establish Goals/Objectives and Performance/Output Measures for Each Division/Program
In order to make good decisions 011 the funding levels for various programs, the
establishment of goals and objectiws will give us valuable information on purposes and
direction afvarious programs, and, identification ofperfonnance and output measures will
allow for evaluation of the effectiveness of these programs in meeting their goals.
3. Have Department Heads present all the abovc information to Council at a regularly
scheduled Council meeting (January)
Suggest that we take a minimum of an hour of each meeting In January under the
City Manager's Comments for these presentations. This will allow the Council to
interface with depamnent heads 011 what they believe are the highest priorities and
the directiOllthey think the depanment should be heading.
4.
City Manager to present a preliminary view of the FY 1996.97 budget revenues,
expenditures and key budget or policy issues ( February)
Suggest a COlllU:il workshop to evaluate the infonnationfrom departmelll heads and
the preliminary revenue Information with the City Manager, Budget Manager and
the Director of Finance. This will give Council a fOn/m earlier in the bzuIget
process to state areas of concern and to give the Manager feedback on the
priorities of the Council.
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Councilmember John Moot
Implementation of Performance-Based Budgets
October 30, 1995
Page 6
ronti nlling-Budget.De~lnprnenL
The most important aspect of transitioning to a new budget type and format is to continually
reevaluate the process and Ihe product. J would sincerely hope that the Council can provide
constructive feedback 10 the Manager on aspects which work well and those which need 10 be
refined or changed. If we all take responsibility for trying 10 mold the process alld producl into
one which better serves the needs of the Council and the community, we should be able 10 create
a product that we can all be proud of and really make Ihe budget a valuable long-range planning
too\.
Further areas I would like to see implemented include:
1. Eva! uation Process
In proceeding budget years I would like to have the City Manager and Department Heads
report to Council at the end of a budget year to say how they did in achieving their goals
and how they balanced at the end of the fiscal year with revenues and expenditures as
compared to their budget. This feedback and review is designed not as a punitive tool but
rather as an educational process for Council and staff alike.
2. Incentive Program
It is recommended that staff evaluate the development of an incentive program for
departments to encourage them to live within budge.t amounts, accomplish more and get
some rewards when they do so.
cc: John Goss
Sid Morris
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