HomeMy WebLinkAboutRDA Packet 2002/10/08
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CllY OF
CHUlA VISfA
TUESDAY. OCTOBER 8. 2002
6:00 P,M,
(immediately following the City Council meeting)
COUNCIL CHAMBERS
PUBLIC SERVICES BUILDING
,JOINT MEETING OF THE
REDEVELOPMENT AGENCY I CITY COUNCIL
OF THE CITY OF CHULA VISTA
CALL TO ORDER
ROLL CALL
Agency/Council Members Davis, Padilla, Rindone, Salas; Chair/Mayor Horton
CONSENT CALENDAR
The staff recommendations regarding the following item(s) listed under the Consent Calendar will be enacted
by the Agency/Council by one motion without discussion unless an Agency/Council member, 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 Secretary of the
Redevelopment Agency or the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be
discussed after Action items. Items pulled by the public will be the first items of business.
1. APPROVAL OF MINUTES - September 10, 2002, September 17, 2002
2, JOINT AGENCY/COUNCIL RESOLUTION AUTHORIZING A CONTRACT WITH
MBIA MUNI SERVICES COMPANY FOR THE PURPOSE OF CONDUCTING A
PROPERTY TAX AUDIT IN THE CITY OF CHULA VISTA - The accurate
allocation of property taxes is essential to the funding of the City of Chula
Vista and its Redevelopment Agency. MBIA Muni Services Company has
expertise and experience in conducting property tax auditing services for
cities and redevelopment agencies, Based on their expertise and past
experience with the City and due to the commission-only basis of the
contract, the competitive selection process has been waived. [Community
Development Director]
STAFF RECOMMENDATION: Agency/Council adopt the resolution,
ORAL COMMUNICATIONS
This is an opportunity for the general public to address the Redevelopment Agency on any subject matter
within the Agency's jurisdiction that is not an item on this agenda. (State law, however, generally prohibits
the Redevelopment Agency from taking action on any issues not included on the posted agenda,) If you wish
to address the Agency on such a subject, please complete the "Request to Speak Under Oral Communications
Form" available in the lobby and submit it to the Secretary to the Redevelopment Agency or City Clerk prior to
the meeting. Those who wish to speak, please give your name and address for record purposes and follow up
action.
ACTION ITEMS
The items listed in this section of the agenda are expected to elicit substantial discussions and deliberations by
the Agency, Council, staff, or members of the general public. The items will be considered individually by the
Agency/Council and staff recommendation 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 Secretary to
the Redevelopment Agency or City Clerk prior to the meeting.
3. PROGRESS REPORT ON PRELIMINARY WORK ACTIVITIES UNDERTAKEN
BY THE CITY TO DEVELOP A BROADWAY REVITALIZATION STRATEGY -
In 1998, the Broadway corridor was identified by Council as one of the
city's seven major areas in need of improvement, The purpose and intent of
Broadway Revitalization will be to implement a comprehensive revitalization
effort along the entire Broadway corridor and major city entryways to
reverse deteriorating conditions, support the vitality of commercial
establishments, and enhance the visual quality of the urban environment,
An interdepartmental revitalization team has been established to provide
guidance throughout the entire process, General Plan staff will also report
on initial land use issues identified in western Chula Vista to provide an
understanding of how the General Plan Update effort will present a broader,
long-term perspective and context for the Broadway Revitalization study,
[Community Development Director]
STAFF RECOMMENDATION: Agency/Council: 1) accept the report and
direct staff to proceed with the work tasks associated with developing a
Broadway Revitalization Strategy; and 2) to bring the item back for
Agency/Council review and consideration in Spring 2003,
4. PROGRESS REPORT ON THE FEASIBILITY STUDY FOR THE
REDEVELOPMENT OF ENERGY WAY IN THE OTAY VALLEY
REDEVELOPMENT PROJECT AREA, AS PART OF AN AGENCY INITIATIVE
ON OPEN STORAGE USES IN REDEVELOPMENT PROJECT AREAS - The
Otay Valley Redevelopment Project Area Implementation Plan for the years
2000 - 2004 noted that existing auto wrecking and recycling operations on
Energy Way have Special Use Permits (SUPs) that expire in 2004 - 2006,
The implementation plan calls for the evaluation of the potential for
alternative uses on Energy Way and analysis of considerations for the
possible extension of those SUPs should extensions be requested,
[Community Development Director]
STAFF RECOMMENDATION: Agency accept the progress report and direct
staff to proceed with the presented action plan strategy which includes
bringing back for Council consideration an Open Storage ordinance by
December 2002,
Redevelopment Agency, October 8, 2002
Page 2
5, JOINT AGENCY/COUNCIL RESOLUTION APPROVING A JOINT PLANNING
AGREEMENT WITH THE PORT DISTRICT; ACKNOWLEDGING THAT THE
PORT DISTRICT PROPOSES TO ISSUE A REQUEST FOR
QUALIFICATIONS/PROPOSALS TO OBTAIN LAND USE PLANNING
CONSULTANT SERVICES FOR THE PREPARATION OF THE CHULA VISTA
BAYFRONT (PORT PROPERTIES) MASTER PLAN; AND DIRECTING STAFF
TO REQUEST THAT THE PORT DISTRICT REALLOCATE CITY/PORT MOU
FUNDS FOR THE CITY'S SHARE OF THE CONSULTANT CONTRACT - On
6/26/02, at a joint workshop of the Board of Port Commissioners and Chula
Vista City Council, City and Port staff were directed to proceed with a
Master Plan study for the Port properties in the Chula Vista Bayfront, The
working relationship between the Port and City for this effort is being
formalized in a Joint Planning Agreement, In addition, a next step in the
master planning process is to retain a Land Use Planning consultant to assist
staff in developing a master plan, Through the Joint Planning Agreement,
the City and Port agree to equally share in the costs associated with the
Master Plan study, [Community Development Director]
STAFF RECOMMENDATION: Agency/Council adopt the resolution,
6. DIRECTOR'S REPORT/SI
7. CHAIR/MAYOR REPORT/SI
8, AGENCY/COUNCIL COMMENTS
ADJOURNMENT
The meeting will adjourn to an adjourned meeting of the Redevelopment Agency on
October 22, 2002, at 6:00 p,m" immediately following the City Council meeting in
the City Council Chambers,
AMERICANS WITH DISABILITIES ACT
The City of Chula Vista, in complying with the Americans with Disabilities Act (ADA), request individuals who
require special accommodates to access, attend, and/or participate in a City meeting, activity, or service
request such accommodation at least 48 hours in advance for meetings and five days for scheduled services
and activities. Please contact the Secretary to the Redevelopment Agency for specific information at (619)
691-5047 or Telecommunications Devices for the Deaf (TDD) at (619) 585-5647. California Relay Service is
also available for the hearing impaired.
Redevelopment Agency, October 8, 2002
Page 3
MINUTES OF ADJOURNED REGULAR MEETINGS OF
THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY
OF THE CITY OF CHULA VISTA
September 10,2002
6:00 p,m,
Adjourned Regular Meetings of the City Council and the Redevelopment Agency of the City of
Chula Vista were called to order at 6:55 p,m, in the Council Chambers, located in the Public
Services Building, 276 Fourth Avenue, Chula Vista, California,
ROLL CALL:
PRESENT:
Agency/Councilmembers: Davis, Padilla, Rindone, Salas, and
Chair/Mayor Horton
ABSENT:
Agency/Councilmembers: None
ALSO PRESENT: Executive Director/City Manager Rowlands, Agency/City
Attorney Kaheny, and City Clerk Bigelow
CONSENT CALENDAR
1. APPROVAL OF MINUTES - August 6, 2002, August 20, 2002, August 27, 2002
Staff recommendation: Council approve the minutes,
2, ORDINANCE NO, 2871, ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA EXTENDING FOR ONE YEAR INTERIM ORDINANCE NO, 2836-A
PROHffiITING THE ESTABLISHMENT OR EXPANSION OF OUTDOOR
STORAGE USES AND TOLLING THE OPERATION OF EXISTING OUTDOOR
STORAGES USES WITHIN THE REDEVELOPMENT PROJECT AREAS
On August 21,2001, the Council adopted Urgency Ordinance No, 2836-B, extending for
one year Urgency Ordinance No. 2836-A, prohibiting the establishment or expansion of
outdoor storage uses and tolling the operation of existing outdoor storage uses within the
redevelopment project areas, Pursuant to Municipal Code Section 19,12,130, the
ordinance was adopted on an urgency basis and took effect immediately upon passage to
protect the public safety, health, and welfare, Adoption of the proposed urgency
ordinance extends Urgency Ordinance No, 2836-A for one additional year.
Staffrecommendation: Council place the ordinance on second reading for adoption.
ACTION:
Agency/Councilmember Davis moved to approve staff recommendations and
offered the Consent Calendar, headings read, texts waived, The motion carried
5-0.
ORAL COMMUNICATIONS
There were none,
I-I
ACTION ITEMS
3, COUNCIL RESOLUTION NO, 2002-365 AND AGENCY RESOLUTION NO. 1794,
RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY
OF THE CITY OF CHULA VISTA APPROVING AN EXCLUSIVE NEGOTIATION
AGREEMENT WITH BARONE-GALASSO AND ASSOCIATES AND THE OLSON
COMPANY FOR DEVELOPMENT OF THE "E" STREET TRANSIT-ORIENTED-
DEVELOPMENT (TOD) PROJECT PROPOSAL LOCATED AT AND ADJACENT
TO 707 "F" STREET (OLD CITY CORPORATION YARD SITE), DEEMING
WAIVED CERTAIN OWNER PARTICIPATION RIGHTS AND DIRECTING STAFF
AND DEVELOPER TO WORK WITH DESIGNATED PROSPECTIVE OWNER-
PARTICIPANT
Redevelopment Agency staff have been in discussions with several prominent urban
development entities during the past year regarding the potential redevelopment of
properties located around the bayfront, E Street trolley station and the City's vacant old
corporation yard property, An initial conceptual plan was drafted by Barone-Galasso and
Associates and the Olson Company to develop a transit-oriented project on the super
block bounded by the trolley line, F Street, Woodlawn Avenue and E Street. The
proposal includes approximately 350 for-sale and rental residential units, 40,000 square
feet of commercial development, and a new park and ride parking structure. (Community
Development Director)
Redevelopment Manager Estes presented the proposed "E" Street transit-oriented development
project and exclusive negotiating agreement with Barone-Galasso & Associates and the Olson
Company,
Michael Galasso presented the company's background, conceptual site plan and urban images,
the goal of which is to encourage pedestrian-friendly architecture,
ACTION:
Agency/Councilmember Davis offered Council Resolution No, 2002-365 and
Agency Resolution No, 1794, headings read, texts waived, The motion carried
5-0, '
PUBLIC HEARINGS
This item was taken out of order and discussed prior to Item #3,
4, JOINT PUBLIC HEARING TO CONSIDER THE FOURTH AMENDMENT TO THE
SOUTHWEST REDEVELOPMENT PROJECT
The Southwest Redevelopment Plan was adopted on November 27, 1990 in order to
improve deteriorated properties in the areas along Main Street, south Broadway, and
south Third Avenue, Since its adoption, the Redevelopment Plan has permitted the use of
eminent domain authority to acquire property within the Southwest Redevelopment
Project Area, Pursuant to the California Community Redevelopment Law and the
Redevelopment Plan, the Agency's eminent domain authority is restricted to an initial 12-
year time period following the effective date of the ordinance adopting the
Redevelopment Plan, The Redevelopment Plan's eminent domain authority is scheduled
to expire on November 27,2002, (Community development Director)
Page 2 Council/RDA Minutes
1- J-
09/10/2002
PUBLIC HEARINGS (Continued)
Notice of the hearing was given in accordance with legal requirements, and the hearing was held
on the date and at the time specified in the notice,
Redevelopment Manager Estes presented the proposed amendment, benefits of eminent domain,
and the results of meetings with the community,
Dennis Torres, speaking on behalf of his grandparents, asked why eminent domain should apply
to Arizona Street, where he owns property, He also questioned the immediate or future plans for
redevelopment of the area, Chair/Mayor Horton replied that the area is zoned
industriaVcommercial and will remain as such, unless it is rezoned,
David Richardson, a long-time property owner on Walnut Street, stated that eminent domain
places a limited view on properties and provides owners with little incentive to improve their
homes, He stated that the threat of eminent domain is a constant cloud that hangs over the
affected residents,
Steve Palma dispelled community concerns regarding eminent domain on Jacqua Street
(formerly known as Paula Gardens), stating that it is a residential street and not subject to
eminent domain,
Alejandro Arellano Jr., representing his mother who resides on Jacqua Street, submitted a
petition requesting that Council rezone the area to residential.
Phyllis Stovall, an Ada Street resident, stated that she was assured by staff at a community
meeting that homes with residential zoning would not be involved in eminent domain, but that
homes in mixed-use zones may be affected, She opposed the inclusion of any homes in the
redevelopment plan and added that the elderly and blind residents be subjected to the possibility
of losing their homes as a result of eminent domain,
Carlos Fernandez spoke on behalf of his mother, stating that she does not want to leave her
property, He added that the property was rezoned from rural to light industrial.
Monica Mendez spoke on behalf of her father and the residents of J acqua Street, requesting that
the Council consider the request by the community to rezone the area to residential.
Bill Pack, a Dorothy Street resident, stated that he was not opposed to redevelopment, but he was
against eminent domain, which he believed should be used only for public purposes and not for
private development. He asked the Council to table the issue of eminent domain,
Robin Griffith, owner of commercial property where a new restaurant is currently being
constructed, requested that her parcel be exempt from eminent domain, sinces she has invested a
great deal of money in the property,
James Vashon, a Jacqua Street resident, stated that eminent domain lowers property values and
that many people would lose their properties in the effort to beautify Chula Vista, He pointed
out that it is the streets in the area that are blighted, not the homes, He asked the Council to table
the item, to work with the residents to beautify the blighted areas, and to place the issue of
eminent domain on the ballot for a vote of the citizens.
Page 3 Council/RD A Minutes
(-3
09/1012002
PUBLIC HEARINGS (Continued)
A property owner on 1038 Broadway requested that his property be exempted from eminent
domain,
Rudy Ramirez asked the Council to be judicious and fair when exercising the awesome power of
eminent domain, He requested that consideration be given to the people who have been long-
time residents and whose homes are their identity,
Orlando Regala, a 45-year resident on Jacqua Street, presented pictures of his well-maintained
garden and stated that there is no better place to live than at his present horne,
Migel Diaz, representing his parents, who live on Jacqua Street, asked that Council direct staff to
rezone the area back to a residential zone,
Loreto Romero stated that he purchased property on Frontage and Dorothy approximately six
years ago without the knowledge that it was subject to eminent domain. He has since expended
approximately $120,000 in required street improvements, and he did not believe he would be
able to recover those costs, should he lose his property to eminent domain,
Community Development Director Salomone spoke to comments made by Ms, Griffith and Mr.
Romero, stating that their properties may be exempted from eminent domain by way of an owner
participation agreement with the City.
With no further members of the public wishing to speak, Chair/Mayor Horton closed the public
hearing and continued the item to September 17, 2002, to consider options and to make a
decision,
OTHER BUSINESS
5, DIRECTOR'S REPORTS
There were none.
6, CHAIRlMAYORREPORTS
There were none,
7. AGENCY/COUNCIL COMMENTS
There were none.
ADJOURNMENT
At 8:10 p,m., Chair/Mayor Horton adjourned the meeting to a Regular Meeting of the
Redevelopment Agency on September 17, 2002, at 6:00 p,m., immediately following the City
Council meeting.
.......:
Susan Bigelow, CMC/AAE, City Clerk
Page 4 CounciVRDA Minutes
;-1
09/10/2002
MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CITY COUNCIL
AND A REGULAR MEETING OF THE REDEVELOPMENT AGENCY
OF THE CITY OF CHULA VISTA
September 17, 2002
6:00 p,m,
An Adjourned Regular Meeting of the City Council and a Regular Meeting of the
Redevelopment Agency of the City of Chula Vista were called to order at 6:15 p,m, in the
Council Chambers, located in the Public Services Building, 276 Fourth Avenue, Chula Vista,
California,
ROLL CALL:
PRESENT:
Agency/Councilmembers Davis, Padilla, Rindone, Salas, and
ChairlMayor Horton
ABSENT:
None
ALSO PRESENT: Executive Director/City Manager Rowlands, Agency/City
Attorney Kaheny, and Assistant City Clerk Norris
CONSENT CALENDAR
1. COUNCIL RESOLUTION NO, 2002-377, AND AGENCY RESOLUTION NO. 1795,
RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY
OF THE CITY OF CHULA VISTA APPROVING THE 2002 HOLIDAY LIGHTING
PROGRAM; AUTHORIZING WAIVING THE FORMAL BIDDING PROCESS;
APPROPRIATING FUNDS THEREFORE; AWARDING A PURCHASE
AGREEMENT TO DEKRA-LITE INDUSTRIES; AND DIRECTING STAFF TO
IMPLEMENT THE 2002 HOLIDAY LIGHTING PROGRAM
In 1998, the City initiated the Holiday Lighting Program in response to the end of the
holiday lighting and displays on Candy Cane Lane, A Request for Proposal was prepared
to solicit bids from specialty lighting and decoration companies, In October 1998,
Dekra-Lite Industries, a holiday lighting and decoration company based in Santa Ana,
was selected due to their ability to meet the Request for Proposal's program goals, the
excitement and quality of their design, and project cost. For the last three years, Dekra-
Lite has worked diligently with the City in implementing the Holigay Lighting Program
and the City has been satisfied with their performance, (Community Development
Director)
Staff recommendation: Agency/Council adopt the resolution,
2, COUNCIL RESOLUTION NO, 2002-378, AND AGENCY RESOLUTION NO. 1796,
RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY
OF THE CITY OF CHULA VISTA AMENDING THE FISCAL YEAR 2003 BUDGET
BY APPROPRIATING $240,000 IN THE MERGED PROJECT AREA FROM
UNANTICIAPTED PROCEEDS FROM THE 2000 TAX ALLOCATION BOND FOR
REPAYMENT OF OUTSTANDING ADVANCES FROM THE BAYFRONT/TOWN
CENTRE I PROJECT AREA: AND APPROPRIATING $240,000 IN THE
BAYFRONT/TOWN CENTRE I PROJECT AREA FROM UNANTICIPATED
ADVANCE REPAYMENTS FOR THE DOWNTOWN MONUMENT SIGN PROJECT
I-S-
CONSENT CALENDAR (Continued)
The Downtown Monument Sign is the culmination of proactive business efforts from the
downtown business community, and recent and proposed redevelopment activities that is
steadily transforming downtown into a vibrant central business district. Graphic
Solutions, a firm experienced in the creation of similar sign projects, was retained by the
City to provide design expertise, A Series of meetings with city staff and downtown
stakeholders determined the type and design, and the location for the installation of the
sign, (Community Development Director)
Staff recommendation: Agency/Council adopt the resolution,
3, AGENCY RESOLUTION NO. 1797, RESOLUTION OF THE REDEVELOPMENT
AGENCY OF THE CITY OF CHULA VISTA APPROVING A SETTLEMENT
AGREEMENT WITH PEOPLE'S CHEVROLET AND APPROPRIATING $53,895
THEREFORE FROM THE UNAPPROPRIATED BALANCE OF THE MERGED
PROJECT AREA FOR THE PURPOSE OF AN INCENTIVE PAYMENT DUE TO
PEOPLE'S CHEVROLET AND AUTHORIZING PAYMENT OF $12,420 FROM THIS
AMOUNT TO THE SEWER FUND FOR SEWER PUMP STATION CHARGES
The Development and Disposition Agreement for Chula Vista Auto Park Phase I requires
the City of Chula Vista Redevelopment Agency to pay incentives to auto dealers if
certain sales tax receipt thresholds are exceeded. In 2000 and 2001, People's Chevrolet
exceeded the sales tax receipt threshold, Payments are due on sewer pump station
charges from People's Chevrolet, and the Agency and People's Chevrolet have reached
an agreement to settle these charges, (Community Development Director)
Staff recommendation: Agency adopt the resolution,
ACTION:
Chair/Mayor Horton moved to approve staff recommendations and offered the
Consent Calendar, Items #1 through #3, headings read, texts waived. The motion
carried 5-0,
ORAL COMMUNICATIONS
There were none,
ACTION ITEMS
4,
CONSIDERATION OF RESPONSES TO WRITTEN
DECLARATION, AND FOURTH AMENDMENT
REDEVELOPMENT PROJECT
OBJECTIONS, NEGATIVE
TO THE SOUTHWEST
In light of issues raised by some residents and business owners in the project area, staff is
recommending that this item be continued until November 12, 2002, to a joint meeting of
the Redevelopment Agency and City Council. This additional time period will give staff
an opportunity to better respond to concerns that have been raised and to present the
Agency and Council some alternatives on how to respond to these concerns.
(Community Development Director)
ACTION:
Chair/Mayor Horton moved to continue the item to the meeting of November 12,
2002. Agencymember/Councilmember Davis seconded the motion and it carried
5-0.
Page 2 Council/RDA Minutes
1-(.,.
09/17/2002
OTHER BUSINESS
5, DIRECTOR'S REPORTS
There were none,
6, CHAIRlMAYORREPORTS
There were none,
7, AGENCY/COUNCIL COMMENTS
There were none,
ADJOURNMENT
At 6:19 p,m" ChairlMayor Horton adjourned the meeting to an Adjourned Regular Meeting of
the Redevelopment Agency on October 8, 2002, at 6:00 p,m" immediately following the City
Council meeting,
~p~
Donna Norris, Assistant City Clerk
Page 3 CouncillRDA Minutes
(- 7
09/17/2002
PAGE 1, ITEM NO.: ..;:t
MEETING DATE: 10/08/02
JOINT REDEVELOPMENT AGENCY / CITY COUNCIL
AGENDA STATEMENT
ITEM TITLE: RESOLUTION AUTHORIZING A CONTRACT WITH MBIA MUNI
SERVICES COMPANY FOR THE PURPOSE OF CONDUCTING A
PROPERTY TAX AUDIT IN THE CITY OF CHULA VISTA
SUBMITTED BY: COMMUNITY DEVELOPMENT DIRECTOR l$-~ C&
REVIEWED BY: CITY MANAGER~<- "I'-'"
(j
4/5THS YOTE: YES D NO ~
BACKGROUND
The Redevelopment Agency of the City of Chula Vista receives its supporting revenues by tax
increment growth of properties in Redevelopment Project Areas. A property tax audit is a procedure
by which each parcel in the city is analyzed to determine whether taxes are being allocated correctly
between other taxing jurisdictions, the City of Chula Vista, and the Chula Vista Redevelopment
Agency, Given the growth of the City in recent years, a property tax audit is an important process to
undertake in order to ensure an accurate and appropriate allocation of property tax revenues to the
City and Agency.
RECOMMENDATION
It is recommended that the City Council/Redevelopment Agency adopt the resolution authorizing
a contract with MBIA Muni Services Company for the purpose of conducting a property tax audit
in the City of Chula Vista,
BOARDS/COMMISSIONS RECOMMENDATION
Not applicable,
DISCUSSION
MBIA Muni Services Company is a financial services firm that exclusively services government
organizations, Currently the company provides the City's sales tax audits and services, Based on
their successful execution of the sales tax audit contract, the Agency staff approached the firm
about property tax audit services, These services, like the sales tax audits, are conducted on a
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PAGE 2, ITEM NO.:
MEETING DATE:
10/08/02
commiSSion basis where the company will benefit only if additional revenues for the Agency
ond/or City are found and received,
To conduct the audit, MBIA will conduct a parcel-by-parcel inventory and review of every property
in the City, including properties both within and outside Redevelopment Project Areas, Eoch will
be anolyzed to determine if taxes are being allocated properly to the various taxing entities.
Where errors or omissions have occurred, the firm will work with the San Diego County Tax
Assessor to rectify collections and allocations and the Agency and/or City will receive funds which
otherwise would have been misallocated, Because the contract is on a commission basis, the City
was able to use it's own experience with MBIA for selection instead of using a competitive
process,
MBIA exclusively services public entities and, as such, has numerous public sector clients for which
they have performed sales tax and property tax audits, MBIA will be compensated at a
percentage of funds actually received by the Agency and/or City that we would not have received
without their services. The commission rate will be 25-percent for any prior year funds collected.
In addition, MBIA will receive, for three future years, 25-percent of the property tax revenue
attributable to those parcels identified as misallocated, Total compensation for the contract is
capped at $750,000, Should MBIA reach this cap amount, it would mean receipts of at least an
additional $3 million in annual property tax revenue. Commission funds will be netted from
Agency/City receipts, meaning all funds received will be retoined, The 25-percent commission
rate is their bose rate; however, staff was able to negotiate the cap which is not in their standard
contract,
Unlike the sales tax audit services, which are ongoing, the property tax audit is a one time event,
Staff suggests that an audit be conducted immediately and then again after the likely expansion
of the redevelopment areas in an upcoming plan amendment and then at regular intervals of
roughly three years or anytime there are significant changes warranting it.
FISCAL IMPACT
There are no means of anticipating likely revenues to be received from the audit and resulting
corrections. It is believed that since no such audit has been conducted in at least 10 years, that
some corrections and benefits are likely. However it is remotely possible that no additional funds
will be received,
J,\COMMDEV\STAFF.REp\ 1 O.08-02\Property T ox Audd.doc
c:::2-~
RESOLUTION NO,
JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AND REDEVELOPMENT AGENCY OF THE CITY OF
CHULA VISTA AUTHORIZING A CONTRACT WITH MBIA MUNI
SERVICES COMPANY FOR THE PURPOSE OF CONDUCTING A
PROPERTY TAX AUDIT N THE CITY OF CHULA VISTA
WHEREAS, the accurate allocation of property taxes is essential to the funding of the City of
Chula Vista and its Redevelopment Agency; and
WHEREAS, MBIA Muni Services Company has expertise and experience in conducting
property tax auditing services for Cities and Redevelopment Agencies; and
WHEREAS, the Redevelopment Agency of the City of Chula Vista intends to conduct a
property tax audit; and .
WHEREAS, based on the Consultant's expertise and past experience with the City of Chula
Vista and due to the commission-only basis of the contract, the competitive selection process was
waived;
NOW, THEREFORE, BE IT RESOLVED the Redevelopment Agency of the City of Chula
Vista does hereby authorize a contract with MBIA Muni Services Company for the purpose of
conducting a property tax audit in the City of Chula Vista,
PRESENTED BY
APPROVED AS TO FORM BY
V~7.~
E'oPft..
Chris Salomone
Director of Community Development
John M. Kaheny
Agency Attorney
J:\COMMDEVlRESOSlAgency - Audit.doc
c;2--3
Parties and Recital Page(s)
Agreement between
City of Chula Vista/Redevelopment Agency
and
MBIA MuniServices Company
for Property Tax Audit Services
This agreement ("Agreement"), dated ______________ for the purposes
of reference only, and effective as of the date last executed unless another date is
otherwise specified in Exhibit A, Paragraph 1 is between the City-related entities as is
indicated on Exhibit A, paragraph 2, as such (hereinafter collectively referred to as
"City"), whose business forms are set forth on Exhibit A, paragraph 3, and the entity
indicated on the attached Exhibit A, paragraph 4, as Consultant, whose business form is
set forth on Exhibit A, paragraph 5, and whose place of business and telephone
numbers are set forth on Exhibit A, paragraph 6 ("Consultant"), and is made with
reference to the following facts:
Recitals
Whereas, City desires to recover revenue to which it is entitled from its Property
Tax and RDA Tax Increment; and
Whereas, a citywide property tax audit, on a parcel by parcel basis, to determine
tax rate area miscoding errors and omissions, will ensure property tax revenues legally
due the City are being received; and
Whereas, Consultant will conduct said citywide audit and perform all duties
necessary to correct allocation-errors that are identified and confirmed; and
Whereas, Consultant warrants and represents that they are experienced and
staffed in a manner such that they are and can prepare and deliver the services
required of Consultant to City within the time frames herein provided all in accordance
with the terms and conditions of this Agreement;
[End of Recitals, Next Page starts Obligatory Provisions,]
Chula VistalMBIA Audit Agreement
Page 1 of 19
d.-<I
Obligatory Provisions Pages
NOW, THEREFORE, BE IT RESOLVED that the City and Consultant do hereby
mutually agree as follows:
1. Consultant's Duties
A, General Duties
Consultant shall perform all of the services described on the attached Exhibit A,
Paragraph 7, entitled "General Duties"; and,
B. Scope of Work and Schedule
In the process of performing and delivering said "General Duties", Consultant
shall also perform all of the services described in Exhibit A, Paragraph 8, entitled
"Scope of Work and Schedule", not inconsistent with the General Duties, according to,
and within the time frames set forth in Exhibit A, Paragraph 8, and deliver to City such
Deliverables as are identified in Exhibit A, Paragraph 8, within the time frames set forth
therein, time being of the essence of this agreement. The General Duties and the work
and deliverables required in the Scope of Work and Schedule shall be herein referred to
as the "Defined Services". Failure to complete the Defined Services by the times
indicated does not, except at the option of the City, operate to terminate this Agreement.
C. Reductions in Scope of Work
City may independently, or upon request from Consultant, from time to time
reduce the Defined Services to be performed by the Consultant under this Agreement.
Upon doing so, City and Consultant agree to meet in good faith and confer for the
purpose of negotiating a corresponding reduction in the compensation associated with
said reduction,
D. Additional Services
In addition to performing the Defined Services herein set forth, City may require
Consultant to perform additional consulting services related to the Defined Services
("Additional Services"), and upon doing so in writing, if they are within the scope of
services offered by Consultant, Consultant shall perform same on a time and materials
basis at the rates set forth in the "Rate Schedule" in Exhibit A, Paragraph 11 (C), unless
a separate fixed fee is otherwise agreed upon. All compensation for Additional Services
shall be paid monthly as billed or as otherwise agreed upon,
Chula Vista/MBIA Audit Agreement
Page 2 of 19
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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 subconsultants employed
by it in connection with the Services required to be rendered, are protected against the
risk of loss by the following insurance coverages, in the following cate gories, and to the
limits specified, policies of which are issued by Insurance Companies that have a Best's
Rating of "A, Class V" or better, or shall meet with the approval of the City:
Statutory Worker's Compensation Insurance and Employer's Liability Insurance
coverage in the amount set forth in the attached Exhibit A, Paragraph 9.
Commercial General Liability Insurance including Business Automobile Insurance
coverage in the amount set forth in Exhibit A, Paragraph 9, combined single limit
applied separately to each project away from premises owned or rented by Consultant,
which names City as an Additional Insured, and which is primary to any policy which the
City may otherwise carry ("Primary Coverage"), and which treats the employees of the
City in the same manner as members of the general public ("Cross-liability Coverage").
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,
(1) Certificates of Insurance,
Consultant shall demonstrate proof of coverage herein required, prior to
the commencement of services required under this Agreement, by delivery of
Certificates of Insurance demonstrating same, and further indicating that the policies
may not be canceled without at least thirty (30) days written notice to the Additional
Insured,
(2) Policy Endorsements Required.
In order to demonstrate the Additional Insured Coverage, Primary
Coverage and Cross-liability Coverage required under Consultant's Commercial
General Liability Insurance Policy, Consultant shall deliver a policy endorsement to the
City demonstrating same, which shall be reviewed and approved by the Risk Manager,
H, Security for Performance,
Chula Vista/MBIA Audit Agreement
Page 3 of 19
~ - G,
(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 Cily a performance bond by a surety and in
a form and amount satisfactory to the Risk Manager or City Attorney which amount is
indicated in the space adjacent to the term, "Performance Bond", in said Paragraph 19,
Exhibit A.
(2) Letter of Credit.
In the event that Exhibit A, at Paragraph 19, indicates the need for
Consultant to provide a Letter of Credit (indicated by a check mark in the parenthetical
space immediately preceding the subparagraph entitled "Letter of Credit"), then
Consultant shall provide to the City an irrevocable letter of credit callable by the City at
their unfettered discretion by submitting to the bank a letter, signed by the City
Manager, stating that the Consultant is in breach of the terms of this Agreement. The
letter of credit shall be issued by a bank, and be in a form and amount satisfactory to
the Risk Manager or City Attorney which amount is indicated in the space adjacent to
the term, "Letter of Credit", in said Paragraph 19, Exhibit A.
(3) Other Security
In the event that Exhibit A, at Paragraph 19, indicates the need for
Consultant to provide security other than a Performance Bond or a Letter of Credit
(indicated by a check mark in the parenthetical space immediately preceding the
subparagraph entitled "Other Security"), then Consultant shall provide to the City such
other security therein listed in a form and amount satisfactory to the Risk Manager or
City Attorney.
I. Business License
Consultant agrees to obtain a business license from the City and to otherwise
comply with Title 5 of the Chula Vista Municipal Code.
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 th e term
of the agreement. In addition thereto, City agrees to provide the information, data,
Chula Vista/MBIA Audit Agreement
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d<-f
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 Exhibil 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.
3, Administration of Contract
Each party designates the individuals ("Contract Administrators") indicated on
Exhibit A, Paragraph 13, as said party's contract administrator who is authorized by said
party to represent them in the routine administration of this agreement.
4, Term,
This Agreement shall terminate after three (3) years from the date of execution
hereof or when the Parties have complied with all executory provisions hereof,
whichever is sooner,
5, Liquidated Damages
The provisions of this section apply if a Liquidated Damages Rate is provided in
Exhibit A, Paragraph 14.
It is acknowledged by both parties that time is of the essence in the completion of
this Agreement, It is difficult to estimate the amount of damages resulting from delay in
performance, The parties have used their judgment to arrive at a reasonable amount to
compensate for delay.
Failure to complete the Defined Services within the allotted time period specified
in this Agreement shall result in the following penalty: For each consecutive calendar
Chula Vista/MBIA Audit Agreement
Page 5 of 19
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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 \i\Ork 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, Paragraph 15, as an "FPPC filer",
Consultant is deemed to be a "Consultant" for the purposes of the Political Reform Act
conflict of interest and disclosure provisions, and shall report economic interests to the
City Clerk on the required Statement of Economic Interests in such reporting categories
as are specified in Paragraph 15 of Exhibit A, or if none are specified, then as
determined by the City Attorney.
B. Decline to Participate.
Regardless of whether Consultant is designated as an FPPC Filer, Consultant
shall not make, or participate in making or in any way attempt to use Consultant's
position to influence a governmental decision in which Consulta nt knows or has reason
to know Consultant has a financial interest other than the compensation promised by
this Agreement.
C. Search to Determine Economic Interests.
Regardless of whether Consultant is designated as an FPPC Filer, Consultant
warrants and represents that Consultant has diligently conducted a search and
inventory of Consultant's economic interests, as the term is used in the regulations
promulgated by the Fair Polilical 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 assu me an
economic interest during the term of this Agreement which would constitute a conflict of
interest as prohibited by the Fair Political Practices Act.
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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
lhereafter.
Consultant agrees that Consultant Associates shall not acquire any such
Prohibited Interest within the Term of this Agreement, or for 12 months after the
expiration of this Agreement, except with the written permission of City.
Consultant may not conduct or solicit any business for any party to this
Agreement, or for any third party which may be in conflict with Consultant's
responsibilities under this Agreement, except with the written permission of City.
7, Hold Harmless
Consultant shall defend, indemnify, protect and hold harmless the City, its
elected and appointed officers and employees, from and against all claims for damages,
liability, cost and expense (including without limitation attorneys fees) arising out of or
alleged by third parties to be the result of the negligent acts, errors or omissions or the
willful misconduct of the Consultant, and Consultant's employees, subcontractors or
other persons, agencies or firms for whom Consultant is legally responsible in
connection with the execution of the work covered by this Agreement, except only for
those claims, damages, liability, costs and expenses (including without limitations,
attorneys fees) arising from the sole negligence or sole willful misconduct of the City, ils
officers, employees. Also covered is liability arising from, connected with, caused by or
Chula Vista/MBIA Audit Agreement
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02. -10
claimed to be caused by the active or passive negligent acts or omissions of the City, its
agents, officers, or employees which may be in combination with the active or passive
negligent acts or omissions of the Consultant, its employees, agents or officers, or any
third party.
With respect to losses arising from Consultant's professional errors or omissions,
Consultant shall defend, indemnify, protect and hold harmless the City, its elected and
appointed officers and employees, from and against all claims for damages, liability,
cost and expense (including without limitation attorneys fees) except for those claims
arising from the negligence or willful misconduct of City, its officers or employees,
Consultant's indemrification shall include any and all costs, expenses, attorneys
fees and liability incurred by the City, its officers, agents or employees in defending
against such claims, whether the same proceed to judgment or not. Consultant's
obligations under this Section shall not be limited by any prior or subsequent declaration
by the Consultant. Consultant's obligations under this Section shall survive the
termination of this Agreement.
8, Termination of Agreement for Cause
If, throug h 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
lerminate 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 materiais up to the effective date of Notice of Termination,
not to exceed the amounts payable hereunder, and less any damages caused City by
Consultant's breach.
9. Errors and Omissions
In the event that the City Administrator determines that the Consultants'
negligence, errors, or omissions in the performance of work under this Agreement has
resulted in expense to City greater than would have resulted if there were no such
negligence, errors, omissions, Consultant shall reimburse City for any additional
expenses incurred by the City. Nothing herein is intended to limit City's rights under
other provisions of this agreement.
10, Termination of Agreement for Convenience of City
City may terminate this Agreement at any time and for any reason, by giVing
specific written notice to Consultant of such termination and specifying the effective date
Chula Vista/MBIA Audit Agreement
Page 8 of 1 9
0(-0
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.
Notwithstanding termination for convenience by City, Consultant's right to compensation
as set forth in Paragraph 110f Exhibit A shall continue for services performed as of the
effective date of termination until satisfied in accordance with that paragraph,
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 subconsultants identified thereat as "Permitted Subconsultants".
12. Ownership, Publication, Reproduction and Use of Material
All reports, studies, information, data, statistics, forms, designs, plans,
procedures, systems and any other materials or properties produced under this
Agreement shall be the sole and exclusive property of City. No such materials or
properties produced in whole or in part under this Agreement shall be subject to private
use, copyrights or patent rights by Consultant in the United States or in any other
country without the express written consent of City, City shall have unrestricted
authority to publish, disclose (except as may be limited by the provisions of the Public
Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any
such reports, studies, data, statistics, forms or other materials or properties produced
under this Agreement.
13. Independent Contractor
City is interested only in the results obtained and Consultant shall perform as an
independent contractor with sole control of the manner and means of performing the
services required under this Agreement. City maintains the right only to reject or accept
Consultant's work products. Consultant and any of the Consultant's agents, employees
or representatives are, for all purposes under this Agreement, an independent
contractor and shall not be deemed to be an employee of City, and none of them shall
be entitled to any benefits to which City employees are entitled including but not limited
to, overtime, retirement benefits, worker's compensation benefits, injury leave or other
leave benefits. Therefore, City will not withhold state or federal income tax, social
security tax or any other payroll tax, and Consultant shall be solely responsible for the
payment of same and shall hold the City harmless with regard thereto,
Chula Vista/MBIA Audit Agreement
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02 -/~
14, Administrative Claims Requirements and Procedures
No suit or arbitration shall be brought arising out of this agreement, against the
City unless a claim has first been presented in writing and filed with the City and acted
upon by the City in accordance with the procedures set forth in Chapter 1.34 of the
Chula Vista Municipal Code, as same may from time to time be amended, the
provisions of which are 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 a judgment against the other for an amount equal to
reasonable attorney's fees and court costs incurred. The "prevailing party" shall be
deemed to be the party who is awarded substantially the relief sought.
16. Statement of Costs
In the event that Consultant prepares a report or document, or participates in the
preparation of a report or document in performing the Defined Services, Consultant
shall include, or cause the inclusion of, in said report or document, a statement of the
numbers and cost i1 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
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02 - /3
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.
D, Entire Agreement
This Agreement, together with any olher 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 10 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,]
Chula Vista/MBIA Audit Agreement
Page 11 of 19
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Signature Page
to
Agreement between
City of Chula Vista/Redevelopment Agency
and
MBIA MuniServices Company
for Property Tax Audit Services
IN WITNESS WHEREOF, City and Consultant have executed this Agreement
thereby indicating that they have read and understood same. and indicate their full and
complete consent to its terms:
Dated:_____________. 200__
Cily of Chula Vista
By:
Attest:
Shirley Horton, Mayor
Susan Bigelow, City Clerk
Approved as to form:
__b_~_]~_l_f__=_~L~__
John M, Kaheny, City Attorney
MBIA MuniServices Company
Dated:
If> -0 .-0:> z...
'~..
By: -t-~ .__ _-&~"
. Ifet///1/ ee6fZq'TTl
/! 1
By: 61 d?4~-j~!~~<
~l'iC 0 ~Jt'Jby
Exhibit List to Agreement:
Approved as to form:
EXHIBIT A
/~;~?/_--'~~~~~;~:: ~==
/Neil Ackerman, Corporate Counsel
Chula Vlsta/MBIA Audit Agreement
Page 120119
0< - /S"
EXHIBIT A
To
Agreement between
City of Chula Vista/Redevelopment Agency
And
MBIA MuniServices Company
1, Effective Date of Agreement: October 8, 2002
2. City-Related Entities:
(X) City of Chula Vista, a municipal chartered corporation of the State of
California
(X) Redevelopment Agency of the City of Chula Vista, a political subdivision of
the State of California
() Industrial Development Authority of the City of Chula Vista, a
() Other: _________________________a [insert business form]
3, Place of Business for City:
City of Chula Vista
276 Fourth Avenue
Chula Vista, CA 91910
4, Consultant: MBIA MuniServices Company
5. Business Form of Consultant:
( ) Sole Proprietorship
( ) Partnership
(X) Corporation
6, Place of Business, Telephone and Fax Number of Consultant:
3433 West Shaw Avenue
Fresno, California 93711
Voice Phone (800) 800-8181 x6829
Fax Phone (559) 275-0171
7, General Duties:
Assist the City in recovering revenue to which it is entitled from its Property Tax.
Assist the City in recovering revenue to which it is entitled from its RDA Tax
Increment.
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The tax audit will focus on all types of property-related tax misallocations and not
just those associated with City's redevelopment project areas,
Conduct a citywide audit of City's local secure and unsecured valuations, on a
parcel by parcel basis to determine tax rate area miscoding errors and
omissions. in the course of said audit, Consultant shall (1) identify reporting
errors which have resulted or are resulting in the misallocation of revenues
properly due to City; (2) prepare the requisite documentation to substantiate said
errors; and (3) prepare and follow through on requests to the County Assessor or
other appropriate parties for corrective action and revenue recovery,
In conjunction with the Property Tax and RDA Tax Increment audits, Consultant
shall develop a comprehensive database/inventory of every parcel located within
the City and within RDA projects areas, including the database elements needed
to facilitate a comparison analysis with County secured and unsecured taxable
values, Consultant shall also provide quarterly and annual reports detailed in
Section 8.A below.
8. Scope of Work and Schedule:
A. Detailed Scope of Work:
(1) Establish a comprehensive inventory of every parcel located within the
City within RDA project areas, including the database elements/fields
needed to facilitate a comparison analysis with County secured and
unsecured values.
(2) Conduct an audit of the City local secured and unsecured valuations,
on a parcel by parcel basis, to determine tax rate miscoding errors and
omissions
(3) Meet with City staff to review service objectives, scope, work plan
schedule, public relations and logistical matters. Consultant will also
establish an appropriate liaison with the Oty coordinalor and logical
checkpoints for progress reviews.
(4) Represent the City for purposes of examining records pertaining to
property tax and RDA tax increment to identify and confirm any
errors/omissions resulting in deficient payment of tax revenues to the
City
(5) For each error/omission identified and confirmed, prepare
documentation to substantiate and facilitate recovery of revenue due
from prior periods plus applicable interest and penalties (collectively
"Misallocations"),
Chula Vista/MBIA Audit Agreement
Page 1401 19
.;;)-/7
Reasonable and diligent effort shall be made to identify all
Misallocations throughout the City of Chula Vista and not just those
that will result in significant compensation for Consultant.
(6) Meet with designated City official(s) as necessary to review findings
and recommendations.
(7) Initiate contacts with the necessary parties and agencies, including the
Counly Assessor, in order to verify whether current tax receipts
accurately reflect tax regulations, property value, and property situs.
Any examination of property tax records shall be conducted in
accordance with this Agreement and applicable local, state, and
federal law;
(8) Prepare and forward to the appropriate parties and agencies, including
the County Assessor, requests for corrective action and revenue
recovery for misallocations. Note: The date appropriate parties receive
and acknowledge these request is the "date of knowledge",
(9) Prepare and submit to the County Assessor or other appropriate
parties all documents and information necessary to correct any
allocation errors that are identified and confirmed;
(10) Follow-up with the necessary parties and agencies, including the
County Assessor, to ensure that identified Misallocations are
recovered.
The County Assessor's office will review the identified Misallocations,
and for those Misallocations for which a correction is required, an
Assessor's Roll Correction (ARC) will be processed by the County
correcting those Misallocations, typically triggering a reallocation,
(11) Provide additional assistance as necessary to support the City in
recovering and preventing tax allocation errors/omissions
REPORTING
(12) Actual revenue produced for the City by Consultant's service on an
annual and cumulative basis
(13) Projected revenue forthcoming to the City as a result of Consultant's
audit, specified according to source, timing and one-time payment
versus on-going
(14) Listing of all errors/omissions detected for the City including, for each,
the account number, correction status, payment amount received by
Chula Vista/MBIA Audit Agreement
Page 15 of 19
02-1'8
the City, period to which payment is related and payment type (e.g.
relocation, deficiency, assessment, etc),
(15) Status of the work including copies of reports provided by the City
addressing each reporting error/omission individually, the Incorrect
Parcel Number, Correct Parcel Number, Assessee, Correct tax rate
area assignment, business ID, address, secured and unsecured
valuation, exemptions, net total valuation of misallocated assessments.
B. Date for Commencement of Consultant Services:
(X) Same as Effective Date of Agreement
() Other:
C, Dates or Time Limits for Delivery of Deliverables:
Deliverable NO.1: Commence revenue enhancement audits within 10
days of authorization (unless otherwise instructed by
City).
Deliverable NO.2: Deliver initial audit reports within 90 - 120 days.
Deliverable NO.3: Reporting - continuing
D. Date for completion of all Consultant services: October 8,2005
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.
(X) Errors and Omissions insurance: None Required (included in Commercial
General Liability coverage).
() Errors and Omissions Insurance: $250,000 (not included in Commercial
General Liability coverage),
10. Materials Required to be Supplied by City to Consultant:
Such records as necessary to prepare the parcel by parcel database.
11. Compensation:
A.
( )
Single Fixed Fee Arrangement.
Chula Vista/MBIA Audit Agreement
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Ol-tCj
For performance of all of the Defined Services by Consultant as herein required,
City shall pay a single fixed fee in the amounts and at the times or milestones or
for the Deliverables set forth below.
(X) Contingency: 25-percent, payable as follows
Consultant shall be paid 25-percent of the incremental revenue received by the
City as a result of Consultant's detecting and documenting the errors/omissions
causing property tax/tax incremenl deficiencies ("Audit Fees"). More specifically,
said 25-percent shall apply to fund transfers received for prior-year reallocations
(i.e., retroactive adjustments for eligible amounts improperly distributed in prior
years) as well as monies received during the first three consecutive years
following the date of knowledge of a correction. The first year of the three
consecutive years shall be the year after the year associated with the date of
knowledge (i.e., the year in which the Misallocation is discovered is considered a
prior year).
The term incremental revenue shall not include any amounts determined by City
or Consultant to represent an increment attributable to causes other than
Consultant's work pursuant to this Agreement. In the event that Consultant is
responsible for an increase in the tax for a property already making tax payments
to the City, it shall be Consultant's responsibility to distinguish and support the
incremental amount attributable to its efforts.
Consultant shall provide to the City at the end of each quarter, written
documentation of detected misallocations that Consultant has sent to the County
Assessor. City shall pay Audit Fees upon Consultant's submittal of evidence of
fund transfers and payments to City that are the result of Consultant's detection
and correction of misallocations identified in the audit. Consultant shall provide
City with an itemized quarterly invoice showing all formula calculations and
amounts due for Audit Fees.
The above sums shall constitute full reimbursement to Consultant for all direct
and indirect expenses incurred by Consultant in performing audits including the
salaries of Consultant's employees, and travel expenses connected with
contacting local and out-of-state businesses and Counly Assessor
representatives.
Consultant shall be responsible for all costs and expenses incident to the
performance of Services for City, including but not limited to, all costs of
equipment provided by Consultant, all fees, fines, licenses, bonds or taxes
required of or imposed against Consultant and all other of Consultant's costs of
doing business,
Notwithstanding any other provision of this Agreement, the total amount to be
paid to Consultant shall not exceed $750,000 (seven-hundred and fifty-thousand
Chula Vlsta/MBIA Audit Agreement
Page 17 of 19
02-,;)..0
dollars). Despite reaching this "cap", Consultant shall continue to use reasonable
and diligent efforts to complete its audit of City property tax and RDA tax
increment revenue until all parcels have been analyzed or for the term of the
Agreement, whichever occurs first.
12, Materials Reimbursemenl Arrangement: N/A
13. Contract Administrators:
City: Patricia Beard, Senior Community Development Specialist
Consultant: Neil Ackerman, Corporate Counsel
14. Liquidated Damages Rate:
(X) $ 0 per day.
() Other:
15, Statement of Economic Interests, Consultant Reporting Categories, per Conflict
of Interest Code:
(X) Not Applicable. Not an FPPC Filer.
16. ()
Consultant is Real Estate Broker and/or Salesman
17, Permitted Subconsultants:
18. Bill Processing:
A. Consultant's Billing to be submitted for the following period of time:
() Monthly
(X) Quarterly
() Other:
B, Day of the Period for submission of Consultant's Billing:
(X) First of the Month
() 15th Day of each Month
() End of the Month
() Other:
C, City's Account Number:
Chula Vista/MBIA Audit Agreement
Page 18 of 19
.;)-~(
Property Tax Administration - all project areas, pending appropriation
19. Security for Performance: N/A
20, Additional Terms and Conditions:
A, Prior to directly contacting any City property owner concerning
misallocation errors or options to enhance City revenues, Consultant shall
receive prior written approval from the City's Contract Administrator or
designated representative,
B. At all times, and in accordance with appiicable local, state, and federal
regulations, taxpayer information containing personally identifiable
information shall be held in the strictest confidence by Consultant.
C, Consultant shall abide by all local, state, and federal laws regulating the
release of taxpayer information by City. Accordingly, all such laws are
incorporated into this Agreement by reference.
D. Consultant is prohibited from retaining the information contained in, or
derived from, those property tax records after this Agreement has expired,
Information obtained by examination of County Assessor records shall be
used only for purposes related to the reallocation of property tax or for
other governmental functions of the City,
E, Consultant is required to disclose information contained in, or derived
from, those property tax records only to and officer or employee of the City
who is authorized to examine the information.
F. If a subpoena or other legal process in any way concerning inforrnation
contained in, or derived from, those tax records is served upon
Consultant, Consultant shall promptly notify City before releasing the
requested records,
Chula Vista/MBIA Audit Agreement
Page 190119
c::; - .;;. ;;J..
PAGE 1, ITEM NO.: -3
MEETING DATE: 10/08/02
JOINT REDEVELOPMENT AGENCY/CITY COUNCIL
AGENDA STATEMENT
ITEM TITLE: PROGRESS REPORT ON PRELIMINARY WORK ACTIVITIES
UNDERTAKEN BY THE CITY TO DEVELOP A BROADWAY
REVITALIZATION STRATEGY
SUBMITTED BY: COMMUNITY DEVELOPMENT DIRECTOR L~ftIc,~
/'
REVIEWED BY: CITY MANAGERLP~ .7JQ)
.,
4/5THS VOTE: YES D NO 0
BACKGROUND
In January 1998, the Broadway corridor was identified by City Council as one of the city's seven major
areas in need of improvement. Due to staffing and budget priorities as well as other work plan
coordination considerations, focused attention was delayed until early 2001, However, given other city
staff efforts in this area (i,e" proposed Redevelopment Plan Amendments, and General Plan Update,
etc.), it appears to be an opportune time to advance a coordinated overall strategy.
The purpose and intent of Broadway Revitalization will be to implement a comprehensive revitalization
effort along the entire Broadway corridor and major city entryways (E, H, & Palomar Streets between
Interstate 5 & Broadway) to reverse deterioroting conditions, support the vitality of commercial
establishments, and enhance the visual quality of the urban environment. Since this challenging effort
will require the knowledge and expertise from the various professional disciplines, an
interdepartmental revitalization team has been established to provide guidance throughout the entire
process,
The team's focus will be to develop a Broadwoy Revitalization Strategy (BRS) thot will identify ond
prioritize plonning, infrastructure, crime, and code enforcement goals and objectives, and provide
focused redevelopment and economic development strategies for the area, The BRS will also identify
potential funding sources for implementation, as well as identify lead departments, agencies, or ather
groups that will champion implementing the proposed recommendations, A series of planned public
workshops with community stakeholders will assist staff to refine and prioritize revitalization
recommendations. The first public workshop is sloted to take place in November 2002,
In concert with the General Plan Update (GPU) effort led by the General Plan team, the Community
Development Department is presenting to Agency/Council preliminary work that has been
undertaken by staff to move forward the Broadway Revitalization process, This progress report will
provide the opportunity for Agency/Council to review staff's early work activities, provide comments,
and direct staff to proceed with the next work tasks associated with implementing this significant
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MEETING DATE:
10/08/02
revitalization effort, The draft BRS will be brought back to Agency/Council for review and
consideration in Spring 2003, Additionally, staff will continue to provide Agency/Council periodic
updates regarding the entire process,
RECOMMENDATION
Agency/Council accept the progress report and provide staff direction to proceed with the work
tasks associated with developing a Broadway Revitalization Strategy and bring it back for
Council/Agency review and approval in Spring 2003,
BOARDS/COMMISSIONS RECOMMENDATION
On September 18, 2002, the city's Planning Commission (PC) was presented a report regarding
Broadway Revitalization, where PC provided positive comments about the revitalization effort,
and supportive remarks in regards to moving the process forward.
Staff has also been providing the Broadway Business Association (BBA) with periodical updates, and
anticipates that the BBA will provide a key role in assisting staff throughout the entire revitalization
effort,
DISCUSSION
The proposed boundaries (attachment) of the revitalization area encompass the majority of the
Broadway corridor from C Street to the north to Faivre Street to the south, The proposed
revitalization area also includes three major city entryways: E, H, and Palomar Streets between
Interstate 5 and Broadway. Last year, staff completed a parcel-by-parcel study of the entire
Broadway corridor and major entryways to document economic and physical blighting
conditions, as well as new projects that have provided positive benefits and services to the area,
The research and fieldwork enabled staff to identify overall revitalization goals, provide a
summary of findings, and draft preliminary revitalization recommendations for the area.
Overall Revitalization Goals
Staff formulated the following revitalization goals after extensive fieldwork, research, and
analysis. As emphasized earlier in this report, a series of planned public workshops will provide
community stakeholders the opportunity to participate in the revitalization process, and assist staff
to refine goals and prioritize recommendations to revitalize the area, The goals provide a
framework for what will likely be necessary to promote successful revitalization along the
Broadway corridor and major entryways.
1, Reverse physical and economic deteriorating conditions
2, Attract and retain businesses
3, Improve the area's image
4, Enhance the visual quality of the urban environment
5, Provide, maintain, and upgrade physical improvements
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MEETING DATE:
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6, Encourage compatible land uses
7, Support the vitality of commercial establishments
8. Encourage higher density mixed use developments
9, Encourage a diversified business mix
10, Provide a pedestrian friendly atmosphere
11, Implement proactive code enforcement
12. Provide adequate parking
Focus Areas for Revitalization
In order to effectively implement Broadway Revitalization, focus areas have been proposed to
facilitate revitalization in a comprehensive and orderly manner, It is anticipated that successful
revitalization efforts will initially take place along segments of the corridor that are considered
more stable, and where recent or proposed development activities are likely to serve as a catalyst
for further revitalization efforts along the corridor. As a result, the revitalization team will
concentrate its initial work efforts in a focus area that will encompass the H to L Street segment
along Broadway, and include the H Street entryway between Interstate 5 and Broadway,
The residential properties located directly behind businesses along the western side of Broadway
have also been included in the initial focus area, The neighborhood was selected due to the high
number of residential properties that been identified as good candidates for rehabilitation
assistance such as upgrading roofs, repainting the exterior, or other similar type of
improvements, Overall, the H to L Street segment is characterized by the following economic and
physical blighting conditions:
. Outdated commercial buildings and facades
. Lots of irregular form and shape
· Awkward layout of older commercial strip centers
. Inadequate landscaping
. One of the most unattractive city entryways (H Street between Broadway and 1-5)
· Deteriorating and inadequate infrastructure (road, sidewalks, bus benches, etc,)
. Inadequate parking conditions for older commercial establishments
. Deteriorating and outdated signage
. Vacancies and potential high business turnover
. Underutilized properties
. Auto repair garages that abut the sidewalk
· Residential properties with rehab potential
· Unappealing fencing, graffiti, and other potential code violations
Although the focus area has its challenges, there have also been projects that have provided
positive benefits and necessary services to the area, These projects include Walgreen's at
Broadway and I Street, Starbucks and Verizon at Broadway and H Street, the approved H Street
Entryway Beautification project, and the proposed mixed-use commercial/residential project at
760 Broadway (former Fuller Ford site), Additionally, the initial focus area provides a unique
opportunity for prospective investors due to:
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PAGE 4, ITEM NO.:
MEETING DATE:
10/08/02
· The area's close proximity to the H Street Trolley Station and Chula Vista transit line
. Access to Interstate 5
. Popular restauronts such as Olive Garden, Family House of Pancakes, and others
. A well traveled arterial for both automobiles and pedestrians
. Primary route to the Chula Vista Shopping Center
. Direct link from Chula Vista Shopping Center to the Bayfront
. Wide sidewalks for several blocks on the eastern side of the Broadway corridor
. Palm trees that provide greenscape
. Infill development opportunities
Selecting a focus area will enable revitalization to take place in a comprehensive and orderly
manner, and provide the impetus to continue similar revitalization efforts throughout the
Broadway corridor, A draft BRS of the initial focus area will be brought back to Agency/Council
for review and consideration in Spring 2003, After the revitalization strategy for the initial focus
area is complete, similar work efforts will commence for other identified segments of the
Broadway corridor. The fieldwork, documentation, and preliminary analysis are nearly complete
for the other identified segments. The proposed segments and tentative dates for community
workshops are as follows:
E to H Street Seg ment/E Street Entryway
L to Palomar St. Segment/Palomar St. Entryway
C to E Street Segment
Palomar to Faivre Street Segment
November 2003
May 2004
November 2004
May 2005
Draft Preliminary Revitalization Recommendations
The final product for each focus area will be a Broadway Revitalization Strategy (BRS) that will
provide focused redevelopment and economic development strategies for the area, and identify
and prioritize planning, infrastructure, crime, and code enforcement goals and objectives. The
recommendations will be categorized (i,e" redevelopment, economic development, infrastructure
enhancements, planning, etc,) and identified as short-term (1-3 yrs,), mid-term (3-5 yrs,), long-
term (5-10 yrs.), or ongoing, The BRS will also identify potential funding sources and lead
departments, agencies, or other groups that will champion implementing the proposed
recommendations,
Since this challenging effort will require the knowledge and expertise from the various
professional disciplines, an interdepartmental revitalization team has been established to provide
guidance throughout the entire process, The revitalization team will also participate in public
workshops and assist in reviewing and drafting the final BRS, The following recommendations
are typical of the type of activities that will likely be required in order to proceed with this
significant revitalization effort, As stressed earlier in the report, the recommendations are
preliminary, and will be fine tuned and prioritized via the public participation process,
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PAGE 5, ITEM NO.:
MEETING DATE:
10/08/02
Redevelopment & Housinq:
1, Adopt a new or amend existing redevelopment plans to include the entire Broadway
corridor and major city entryways into a redevelopment project area, Inclusion into an
adopted redevelopment area will better enable the city's Redevelopment Agency take the
lead in facilitating the redevelopment of blighted, vacant, and underutilized properties, and
the relocation of incompatible land uses.
2, Create a balance between new and older developments by identifying and preserving,
where feasible, unique architectural buildings and signs that are reflective of Broadway's
transformation into one of the most well traveled corridors in the South Bay,
3, Conduct an inventory and analysis of multifamily complexes and mobilehome parks along
the corridor to determine their condition, rehabilitation potential, and development/financial
feasibility.
4, Vigorously market vacant and underutilized parcels; promote infill and higher-density
commercial and residential mixed-use developments provided there are adequate facilities
at proposed locations to support these types of projects,
5: Expand the city's facade program to include Broadway and city major entryways.
Economic Development:
1, Hire a consultant to prepare a Broadway market study to better understand Broadway's
market potential (trade area, market forces, level of competition, user response - shopping
mall vs, commercial strip, shopping patterns, etc.) and assist prospective investors that are
interested in conducting business in the area,
2, Improve the quality of well-managed and maintained hotels along the corridor by providing
financial assistance, such as low interest loans for facade improvements, rehabilitation,
and/or purchase of upgraded hotel furniture and accessories (energy saving lighting
fixtures, water efficient appliances, etc.).
3, Vigorously promote existing economic development programs and financial and incentive
opportunities by creating a Business Resource Guide specifically targeted for Broadway area
businesses and prospective investors, developers, retailers, and consumers,
4. Where feasible, direct public investments (schools, cultural facilities, or other similar uses)
into higher density mixed use areas, adjacent to major transit stops, and other high
pedestrian activity areas of the corridor so that they serve as a potential catalyst for further
investment opportunities, and increased redevelopment and revitalization activities along the
corridor,
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PAGE 6, ITEM NO.:
MEETING DATE:
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5. Determine the feasibility of establishing a business improvement district (BID) to enhance
marketing and economic development efforts along the corridor.
6, Determine the feasibility of developing a program whereby trolley and transit riders that
patronize Broadway businesses are offered discounts from retail establishments for
displaying same day ticket stubs,
Infrastructure Enhancements:
1. Develop overall design and landscape guidelines that will focus on streetscape, right-of-way
standards, street furniture, landscaping, and signage,
2. Provide, maintain, or upgrade deteriorating street furniture, sidewalks, curbs, gutters, roads,
streetlights, and other similar public infrastructure.
3, Provide landscaped parkways and medians in non-landscaped median areas of the
corridor, where feasible - develop consistent landscape theme throughout the corridor,
4, Evaluate the parking conditions of older commercial retail centers, and provide findings and
recommendations (shared parking, identify strategic parking locations, design, establish
parking district, etc,) to manage parking more efficiently.
5, Provide attractive bus shelters along the Broadway corridor to protect transit riders from
weather conditions, and present transit ridership as a more enjoyable and attractive
transportation alternative.
Land Use Plannina:
1, Improve the visual quality of the urban environment by reqUlnng carefully designed
landscaping in newly developed facilities and parking lots,
2, Create new diversity of land uses along the corridor by rezoning excess commercial land to
encourage more non-retail land uses, such as civic and cultural uses, recreational facilities,
open space and public gathering places, residential uses, and higher density mixed use
developments,
3, During the General Plan update, re-plan to create nodeslfocal areas of development to
include low to higher density commercial nodes that would create peaks and troughs of
commercial activity that could potentially "pump" new life into the corridor.
4, Amend the Municipal Code to provide more flexibility for processing higher density mixed-
use commercial and residential developments, particularly properties that are in close
proximity to public transit and neighborhood services, and provided that there is adequate
services to process these type of developments,
.3 -,=,
PAGE 7, ITEM NO.:
MEETING DATE:
10/08/02
5, Strive harder for architectural excellence and higher quality building designs by creating
development and design guidelines specifically tailored for Broadway. Recommend updated
development and design guidelines (bulk, intensity, setbacks, parking, signage,
landscaping, etc,) for each development type (commercial centers, mixed-uses, offices,
restaurants, motels/hotels, service stations, used car dealerships, big box retail, etc,).
6, Prohibit new auto repair garage developments that abut the sidewalk to prevent conflicts
with pedestrians.
Code Enforcement/Zonina:
1, Schedule proactive code enforcement inspections for businesses suspected of being in
violation (deteriorating and temporory signage, illegal conversions, illegal outdoor retail
displays, etc,) of city zoning laws.
2, Adopt a properly maintenance code specifically for Broadway,
3, Consider amending the Municipal Code to regulate based on lot size, the number of
vehicles that may be displayed for sale by a used car dealership; require incorporating a
consistent landscape and screening theme to provide an aesthetically relieving buffer to
pedestrians and to protect vehicles from vandalism.
Sianaae:
Outdated and deteriorating signage is prevalent throughout the area, particularly among the
older commercial establishments, The result can potentially be harmful to the visual quality of the
urban environment and can result in the depreciation and devaluation of properly values, The
city may consider:
Reviewing and updating ordinance requirements for signage, including sign permit
application materials;
Initiating amendments so that city sign regulations are consistent with contemporary
sign design regulations and standards; and
Promoting a program to assist business owners/tenants Improve their window
displays (merchandise, advertising, etc.).
CONCLUSION
Staff is presenting to Agency/Council preliminary work that has been undertaken by staff to move
forward the overall revitalization process, The session will provide the opportunity for
Agency/Council to review staff's early work activities and provide comments regarding this
significant revitalization effort, Staff is also recommending that Agency/Council accept the
progress report and provide staff direction to proceed with the work tasks associated with
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PAGE 8, ITEM NO.:
MEETING DATE:
10/08/02
developing an overall Broadway Revitalization Strategy. A draft BRS for the initial focus area will
be brought back to Agency/Council for review and consideration in Spring 2003, In the interim,
staff will continue to pravide Agency/Council periodic updates regarding the entire process.
FISCAL IMPACT
There are no fiscal impacts assaciated with this progress report, However, the BRS will identify
potential funding sources to implement revitalizations, as well as identify lead departments,
agencies, or other groups that will champion implementing the proposed recommendations.
ATTACHMENT
Attachment A: Broadway Revitalization Boundary Map
J:\COMMDEV\STAFF.REP\ 1 O-Ol-02\Broadway Revitalization.doc
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PAGE I, ITEM NO.: 4-
MEETING DATE: 10/08/02
REDEVELOPMENT AGENCY AGENDA STATEMENT
ITEM TITLE: PROGRESS REPORT ON THE FEASIBILITY STUDY FOR THE
REDEVELOPMENT OF ENERGY WAY IN THE OTAY VALLEY
REDEVELOPMENT PROJECT AREA, AS PART OF AN AGENCY
INITIATIVE ON OPEN STORAGE USES IN REDEVELOPMENT
PROJECT AREAS
SUBMITTED BY: COMMUNITY DEVELOPMENT DIRECTOR L-.\t!-~ cs.
REVIEWED BY: EXECUTIVE DIRECTORGpc-.I" 01'-'
4/5THS VOTE: YES [=:J NO
~
BACKGROUND
The Otay Valley Redevelopment Project Area Implementation Plan for the years 2000 - 2004 noted
that existing auto wrecking and recycling operations on Energy Way have Special Use Permits (SUPs)
expiring in 2004 - 2006, While recognizing that auto recycling is a necessary and beneficial land
use, the implementation plan called for the evaluation of the potential for alternative uses on Energy
Way and analysis of considerations for the possible extension of those SUPs, should extensions be
req uested,
In 2001, as staff prepared to commence a feasibility study on: 1) the likely needed environmental
remediation of wrecking/recycling yards; 2) conditions required to conduct environmentally sound
operations; and 3) the feasibility of a master redevelopment of Energy Way to higher uses;
additional impetus was added. The San Diego Regional Water Quality Control Board (RWQB)
decreed that as of February, 2002 the local municipalities would be held accountable for the Clean
Water Act standards in their jurisdictians. Specifically, cities were directed to enforce compliance with
National Pollution Discharge Elimination System (NPDES) standards or be subject to enforcement on
behalf of jurisdiction properly owners, A key focus of the RWQB is the Olay River Valley.
The auto wreckers/recyclers were relocated to Energy Way prior to being annexed into the City of
Chula Vista, When the City annexed the area, it granted SUPs on the uses that expire between 2002
- 2006, One operator - Ecology Auto Wrecking - applied to the Agency to extend its SUP prior to
the start of the feasibility study or the expir,ation of its current SUP. On May 8, 2001 the Agency
granted the requested extension for 13 years beyond Ecology's 2004 sunset date, or until 2017.
The approach of the sunset date for another operator - Honda-Acura Parts - in 2002 motivated the
Agency to create redevelopment recommendations in a timely manner.
In order to effectively manage this set of circumstances, an interim tolling ordinance on open storage
land uses was adopted to allow time for study of these uses, which are predominantly in the Otay
Valley and Southwest project areas, The Agency also authorized outside consultants to conduct an
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PAGE 2, ITEM NO.:
MEETING DATE:
10/08/02
environmentol and economic feasibility study of uses on Energy Way and initiated a study of outdoor
storage uses throughout the Redevelopment Proiect Areas.
This report (Executive Summary included as Attachment 1) summarizes the findings of the Energy
Way feasibility study, updates Agency members and the public on the status of the study regarding
other outdoor storage uses, and suggests a strategy for moving ahead from the study period to
action planning which includes bringing back for Agency consideration an Open Storage ordinance.
RECOMMENDATION
It is recommended that the Redevelopment Agency accept the progress report and provide staff
direction to proceed with the presented action plan strategy which includes bringing back for
Agency consideration an Open Storage ordinance by December 2002.
BOARDS/COMMISSIONS RECOMMENDATION
At its meeting of September 25, the City of Chula Vista Planning Commission unanimously
recommended that the Agency accept the progress report and provide staff direction to proceed
with the presented action plan strategy which includes bringing back for Agency consideration an
Open Storage ordinance by December 2002.
DISCUSSION
The Redevelopment Agency was interested in considering the feasibility of redeveloping Energy
Way to light industrial uses in conjunction with the expiration of SUPs for the existing auto
wrecking/recycling operations in 2004-2006. After a lengthy competitive selection process
Keyser Marston and Associates (KMA) and Gradient Engineers were selected to conduct both
economic and environmental feasibility studies with that objective in mind, and to give state of the
art performance standards for auto wreckers, in the event the SUPs were extended.
Economic Feasibility Study
The Economic Feasibility Study prepared by KMA includes the following findings:
. Automobile recycling serves a vital role in the preservation of natural resources and
reduces the demand for scarce landfill space. However, the industry is under increasing
pressure due to increasingly stringent local and national environmental standards,
. Industrial lands in northern San Diego County and Otay Mesa are being rapidly
absorbed, increasing the likely future market demand for industrial lands in the Otay
Valley project area.
. The absorption period for Energy Way was projected from 2015 - 2025, This coincides
with the sunset of the Otay Valley redevelopment area in 2023 and the expected Otay
Landfill closure in 2024.
. The presence of the Otay Landfill somewhat deters the recruitment of high tech or
research and development type industries to Energy Way,
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PAGE 3, ITEM NO.:
MEETING DATE:
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. The Auto Wrecker/Recyclers should begin to phase out from their current location over the
next several years coordinated with the remaining lifespan of the Otay Landfill permit.
. Firm guidelines should be implemented and strictly enforced at the renewal of use permits
to protect the environment and enhance the appearance of the properties/operations,
These conditions should include but not be limited to:
Walter filtration systems where storm water is filtered before going into the sewer
Extensive firefighting systems, both portable and fixed
Scales to weigh trucks before they exit onto roadways
Street cleaning in front of all operations twice daily
Enclosure inside a weather proof structure with an impermeable floor
Ample landscaping and other screening to shield the operation from the street and
the surrounding vicinity
Environmental Feasibility Study
Gradient Engineers performed the environmental feasibility portion of the study. It was
determined that contamination and spills have occurred at the auto wrecking/recycling
operations and are likely to continue to occur based on current methods of operation, While the
scope of this study did not include the creation of a work plan for remediation or detailed study of
each site, three potential scenarios based on minor to severe contamination were discussed,
Remediation was roughly estimated to cost $1,6 million in the most likely of three clean up
scenarios presented.
Three main factors were discovered as vital to the operation of environmentally safe auto
wrecking /recycling operations:
. How and when fluids are removed from vehicles upon their arrival at a yard;
. The length of time vehicles are stored on site
. Whether or not consumers (the public) have direct access to the vehicles or whether the
business controls removal of the parts and sells them directly
Strateay for Aaency Response
On August 27, 2002, the Agency adopted an extension of the urgency ordinance tolling outdoor
storage uses in Redevelopment Project Areas, to allow staff to complete its analysis of such uses
and to determine appropriate development standards and conditions for continuing and locating
such uses in the proiect areas.
While the study does not recommend a wholesale near-term effort to redevelop Energy Way, staff
believes strong steps must be taken to upgrade fire prevention, human safety and stormwater
run-off controls at these sites, Aesthetic appeal of the area must be enhanced, given its proximity
to the Otay Ranch, Coors Amphitheater, Knott's Soak City, homes nearby in South San Diego
and the Chula Vista Auto Park, During interdepartmental inspections and discussions, a strategy
was developed to address all of these issues:
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PAGE 4, ITEM NO.:
MEETING DATE:
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. To create a new, state of the art, list af conditions under which auto
wrecking/recycling operotions must operate throughout the City of Chula Vista's
redevelopment proiect areas,
. To communicate with operators about the new conditions and allow a reasonable
period of time to comply.
. To seek Agency Board support for strict, universal and consistent enforcement by
pertinent City departments of the conditions, once agreed to and imposed.
Staff proposes to return to the Agency prior to the end of 2002 with an Open Storage Ordinance.
The ordinance will include a section on Auto Wrecking/Recycling uses including the state of the
art conditions referenced in the strategy above, Currently staff is compiling a list of
recommended conditions to apply to any SUP extensions requested by existing auto wreckers. It
is envisioned that those recommendations will, with a period of time given for compliance,
gradually seek to improve the environmental and visual condition of the Energy Way area and
similar areas throughout the redevelopment project areas with auto wrecking/recycling uses to
match any other industrial park by housing operations within attractive buildings allowing vital
service functions to be continued without adverse impacts on the environment, property values or
to surrounding land uses.
FISCAL IMPACT
There is no immediate fiscal impact to the Agency from accepting this report, Ultimately, if
higher standards are imposed on the Auto Wrecking/Recycling industry, some operations may be
vacated but others will yield greater tax increment benefits to the Agency once additional
permanent on site improvements are completed.
ATTACHMENTS
Executive summary: Chula Vista Auto Recyclers Feasibility Study"
"copies of the full studies are available for review in the Community Development Department
J:\COMMDEV\STAFF.REP\ 1 Q.Q8.Q2\Auto Wreckers.doc
4-L/-
EXECUTIVE SUMMARY - CHULA VISTA AUTO RECYCLERS
I, INTRODUCTION
A, Objective
This report has been prepared for the City of Chula Vista in an effort to evaluate the
potential environmental remediation that may be necessary to convert property occupied
by auto recyclers into a condition consistent with marketable light industrial parcels; and,
second, to assess the level of demand in the industrial marketplace for the properties
and estimate the likely absorption schedule based on current and forecasted market
conditions.
B. Background
The study area is located within the 771-acre Otay Valley Road Redevelopment Project
Area. At the time of adoption, this area represented the largest resource of under-
developed urbanized property in the City that could be used for industrial development,
thereby improving the City's employment and economic base, Economic forecasts at
the time of the plan'adoption projected five acres per year absorption. During the
decade of the 1990's, over 80 acres were developed,
The City of Chula Vista Redevelopment Agency's Five Year Implementation Plan calls
for the Agency to examine redevelopment options for lands currently occupied by auto
recyclers. The lands to be studied are located east of Interstate 805 along Energy Way
in an area of Chula Vista north of Coors Amphitheatre, and Knotts Soak City waterpark.
At the present time, there is some inconsistency between the City of Chula Vista
General Plan, which calls for Research and Limited Industrial Uses (ILR) on the sites,
and the current zoning that allows auto dismantling under conditional/special use permit.
Existing auto recycling operations in the area continue to operate under special use
permits. The Agency would like to evaluate the redevelopment potential of the Energy
Way properties prior to the completion of the City's General Plan Update and expiration
of the special use permits.
C. Key Findings
The KMA Team concludes that the following are the key findings and possible actions
for redevelopment of the auto recycling land on Energy Way,
. The City should begin to phase out the auto recyclers from their current location over
the next several years coordinated with the remaining lifespan of the landfill's permit.
4-~-
. The City should implement firm guidelines regarding the issuance and renewal of
use permits,
. The City should strictiy enforce the newiy adopted guidelines,
. There are numerous acres of land that are vacant and availabie for industrial
development within the City of Chula Vista.
. The City should consider expanding the lifespan of the redevelopment project 10
years under S8211, This is available for all plans adopted prior to 1994. The City
should be careful in this decision, as the determination of blight is more difficult since
the enactment of AS 1290,
II. METHODOLOGY
Assessment of Redevelopment Opportunity
Initial research efforts focused on researching the history of the auto recycling industry
and determining the state of the industry today in the County of San Diego, In addition,
KMA looked at the demand for industrial space and land absorption in the project area,
KMA undertook the following tasks in order to identify and evaluate the redevelopment
opportunity,
. KMA and Gradient Engineers met with City staff to clarify the City's goals for the
study,
. KMA researched the auto recycling industry, interviewed several owners of auto
recycling businesses, toured auto-recycling sites, toured the subject site, and
interviewed a representative from the county association of auto recyclers,
. KMA surveyed industrial brokers and other real estate professionals with expertise
in this area of the City of Chula Vista and South County.
. KMA analyzed both regional and iocal absorption trends for industrial land.
. KMA reviewed regional and local land sale comparables for industrial land, both
raw/unimproved and finished lots,
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II, OVERVIEW OF AUTO RECYCLING MARKET
A. Auto Recycling Industry
Auto recycling has been around since the first cars rolled off the production lines and
represents the 16th largest industry in the United States with over $5 billion in annual
sales. It is considered the most successful recycling industry ever, recovering over 75%
of a vehicle's useable parts and resources.
Automotive recycling serves a vital role in the preserving of natural resources and
reducing the demand for scarce landfill space. The industry recycles over 4 million
motor vehicles annually, in the United States and Canada alone. Automotive recyclers
must abide by stringent local and national regulations on dealing with waste generated
by salvaged automobiles. Several individual auto recyclers have instituted their own
unique programs to further reduce the potential effects of harmful materials to their
businesses and communities,
B. Auto Recycling in San Diego County
The Automotive Recyclers Association (ARA) is the voice of the international automotive
recycling industry and was founded in 1943, Within this organization there are state
organizations, The State of California Auto Dismantlers Association (SCADA)
represents the State of California, and has 500 members and 9 chapters. The chapter in
San Diego County is the San Diego County Auto Recyclers Association (SDCARA), and
was formed in 1969,
These organizations are the only professionally licensed, and qualified industry, to
properly dismantle vehicles for the purpose of selling recyclable parts. In San Diego
County there exists two types of auto recyclers, The first type is the self-service
recycler, and the second type is the conventional auto recycler. The self-service
recycler is an operation where the consumer pays a fee to access the automotive
storage area, and the consumer searches the vehicles and extracts the part(s)
themselves. The conventional auto recycler is an operation where the recycler removes
the parts from the vehicles, At this point the parts are placed on shelves within a
building and sold, The majority of auto recyclers in the County are conventional
recyclers,
Auto recyclers generate millions of dollars to the city and state through payroll taxes,
income taxes, sales tax, property tax, business tax, and numerous fees and licenses
through various state agencies. In addition to the financial obligations of the recyclers,
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they are also required to adhere to numerous environmental and health regulations,
Auto recycling is one of the nations most heavily regulated industries. Auto recyclers are
accountable to local, state, and federal regulatory bodies for the protection of the
environment through the proper recycling or disposal of all automotive related hazardous
materials, such as gasoline, oil, antifreeze, transmission fluid, and brake fluid. Every
reusable part is removed from the vehicle and recycled.
Today's responsible auto recycler makes a conscious effort to benefit their community
by keeping it environmentally safe and friendly, In regards to the subject site, it is
evident that not all auto recyclers adhere to the same level of responsibility. A few of the
operators on Energy Way have made significant investments in protecting the
environment, disposing of the hazardous waste, and maintaining a neat and clean
appearance from the street. Unfortunately, there are an equal number of operators who
have chosen to disregard the conditions of their use permits. This is one of the many
issues that must be rectified if the City chooses to allow the auto recyclers to continue to
operate.
The future of the auto recycling industry seems ambiguous. The environmental lobby,
such as the Baykeepers and Surfriders, will seemingly remain heavy in pushing for more
legislation, and most likely the regulations affecting the recyclers will become more
burdensome. As the price of compliance becomes heavier more individual businesses
will be forced to close or risk the penalties of non-compliance.
IV, INDUSTRIAL MARKET ANALYSIS
A, San Diego County
San Diego County has experienced tremendous growth since 1996 after the economy
recovered from the recession of the early 1990's, This strong growth in the economy
continued through the year 2000 when the economy began to slow,
Burnham Real Estate Services reports that the San Diego County industrial and
research and development (R&D) markets are holding steady despite a slowing national
economy, The San Diego commercial real estate markets are more stable than most
major markets in the U,S, Clearly, companies are taking a more cautious posture given
today's economic and political climate,
Net absorption is down in all commercial sectors from the record-breaking years of 1999
and 2000, but vacancy rates are fluctuating only slightly, Vacancy rates are slightly
higher today, but real estate experts expected this, because the markets need time to
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absorb the large amounts of new space that has come on line since 1999. The San
Diego County industrial market alone has absorbed just over 1,04 million square feet
(SF) of space so far this year. By the end of 2001, the market should post 1,2 million SF
of net absorption. This is a respectable level of activity, given current world events and
when compared with the record 4,6 million SF of net absorption that the industrial sector
posted in 2000,
B, South County
The South County ranks as the third-largest industriai region in the greater San Diego
area with more than 10 million SF of space - a number that experts project to rise to as
much as 14 million SF by 2005, One factor that is helping lead the way in South
County's growth is the planned construction of State Route (SR) 125. When this is
coupled with the areas affordability compared to other more expensive submarkets, it
becomes evident that this area will most likely see an increase in building and leasing
activity over the next few years.
In 2000, Burnham Real Estate reported that the region ied all San Diego County
submarkets in net absorption with approximately 950,000 SF, and ranked second in the
category of new construction. As iliustrated in Tabie 5, South County followed the
countywide trend during the first quarter 2001 with a notabie decline in net absorption as
companies postponed or scaled back expansion plans. There was a slow return to
stability through the second quarter of 2001, which was lead by the South County
markets of Chula Vista and Otay Mesa with about 267,000 SF absorbed. Through third
quarter 2001, South County has absorbed just over 109,000 SF of space, It is believed
that cost-oriented tenants who want quality manufacturing and distribution warehouses
will increasingly look to South County to meet those needs.
C. Chula Vista and Otay Mesa
Otav Mesa
Demand is solid and growing steadily in the Otay Mesa market, states Burnham Real
Estate Services. High quality, well-designed buildings are leasing up rapidly, but
demand for less attractive and less functional projects is weaker,
Chula Vista
Prospects for build-out of industrial uses in the subject area are strengthened by an
impending shortage of developable land in the major submarkets in San Diego County.
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The City of Chula Vista recognizes this imbalance between industrial demand and land
availability. As a result the City Council has adopted policies to preserve and expand
the local supply of deliverable industrial land.
As land on Otay Mesa is absorbed, it is inevitable that the demand for industrial land in
the South Bay will shift to areas within Chula Vista, Chula Vista represents one of the
few areas remaining where assembled land with strong freeway accessibility is not a
problem, Burnham Real Estate Services reports that through 3'd Quarter 2001 Chula
Vista had 41 industrial projects with a total of 3.6 million SF of space, Of this space, only
approximately 300,000 SF is vacant, or about 8.3%. When the vacancy rates of Chula
Vista are compared to the major submarkets of Carlsbad (16.7%) and Vista (15.5%), it is
evident that Chula Vista is a prime location for industrial development.
Conclusion
In addition to Otay Mesa and Chuia Vista having more available land for industrial
development than other submarkets, another factor pushing it towards the forefront of
industrial development is the construction of high-quality residential neighborhoods, The
maturing communities of Eastlake, Rancho Del Rey, and Sunbow, and the opening of
Otay Ranch, Lomas Verdes, and Rolling Hills Ranch is introducing new buyers to the
South County, and establishing a large, highly educated work force. With the average
price per home being an estimated $100,000 less than comparable homes in North
County, it stands to reason that new, established, and out-of-state businesses would
choose to relocate to this area of the County.
V. REDEVELOPMENT STRATEGY
The strategy for redevelopment of this portion of land must take into consideration
severai aspects. First, the Otay Landfill (County) occupies approximately 265 acres
directly adjacent to the auto recycling property on Energy Way, The County currently
holds a permit allowing it to operate the landfill until the year 2023, which seemingly sets
the land use pattern of the area for the foreseeable future. The landfill could be seen as
a deterrent for light industrial, high-tech, and other high-profile users and delay the
development of the site for these specific uses. The noise and odor generated from the
landfill could seemingly discourage some developers and prospective tenants, such as
research and development companies, from locating in the area,
Another factor that could lead to the quicker absorption of the subject site is the growing
shortage of available industrial land in North County, Over the past several years, North
County has seen rapid growth and absorption of its industrial land, partly due to the
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quick emergence of the biotech and high-tech industries. The supply of land in these
selected North County cities is projected to experience a significant decrease between
1995 and 2010. As the land in North County disappears over the next few years,
companies wiil be faced with the chailenge of locating new areas for growth and
development. It Is reasonable to state that the absorption of the auto recyclers land
could occur as early as 2015, but as late as 2025 unless the City elects to take
redevelopment action,
The City's ability and willingness to fast track processing for high priority projects would
seemingly change the market status of many available properties in the City, Also, if the
City offers financial assistance, and incentives to prospective developers of the auto
recyclers land the timing of absorption of these parcels could be increased, In addition,
as for any land area, price is a driving factor in the rate of absorption. If the tenant is
price sensitive, the subject site's location and previous use becomes less of a deterrent
to more heavy industrial users, Le, trucking companies.
The auto recyclers on Energy Way are operating under conditional and special use
permits. Some of these permits expire as early as 2003, but others that have been
renewed recently have a time frame that ailows them to operate through 2017, For
those operators whose permits expire, the City could enact a policy where these permits
are reviewed on an annual basis, and only reissued if they are in fuil compliance with the
recommended guidelines.
VI. RECOMMENDATIONS
The KMA Team recommends the foilowing actions.
. That the City begin to phase out the auto recyclers from their current location, and
the remaining lifespan of the landfill's permit. The industrial data presented earlier
indicates that there Is an ample supply of land on Otay Mesa and in Chula Vista to
be absorbed during the transition of the land along Energy Way,
. That the City implement and strictly enforce guidelines that protect the environment
and enhance the appearance of the property/operation, These conditions consist
of, but are not limited to, the foilowing:
. Water filtration systems where storm water is filtered before going into the sewer,
. Extensive fire fighting systems, both portable and fixed,
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. Scales to weigh trucks before they go on to the highways,
. Street cleaning in front of all operations twice daily.
. Ample landscaping and other screening to shield the operation from the street
and the surrounding vicinity,
VII, CONCLUSIONS
The auto recycling industry currently faces a tenuous future, The pressure confronting
the industry not only comes from local entities, but also state and federal agencies. In
today's atmosphere of environmental concerns, the industry will encounter many new
regulations and orders of compliance to ensure the protection of the environment.
Locally, this entails placing restrictions on the operator's conditional and special use
permits. These restrictions consist of compliance with the conditions outlined in Section
VI of this report. These conditions would be strictly enforced, and non-compliance would
result in the operator's permit being revoked or not renewed. For example, the City
should place a limit on the duration of these permits. The permits should be renewable
on an annual basis; thereby, allowing the City to monitor the auto recyclers and invoke a
timeline on compliance with environmental regulations and City codes.
Another obstacle the industry is encountering is the County's plan to relocate the auto
recyclers to one area of the County, The auto recycling industry is currently
experiencing a downturn in the number of recyclers. The County plan does not offer
financial assistance toward the purchase of land or for relocation expenses. The
monetary hardship of purchasing or leasing the land, and the expense of relocating,
combined with the cost of compliance with environmental regulations could force several
of these recyclers in to bankruptcy.
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PAGE I, ITEM NO.: $
MEETING DATE: 10/08/02
JOINT REDEVELOPMENT AGENCY / CITY COUNCIL
AGENDA STATEMENT
ITEM TITLE: RESOLUTION APPROVING A JOINT PLANNING AGREEMENT WITH
THE PORT DISTRICT; ACKNOWLEDGING THAT THE PORT DISTRICT
PROPOSES TO ISSUE A REQUEST FOR QUALlFICATIONS/
PROPOSALS TO OBTAIN LAND USE PLANNING CONSULTANT
SERVICES FOR THE PREPARATION OF THE CHULA VISTA BAYFRONT
(PORT PROPERTIES) MASTER PLAN; AND DIRECTING STAFF TO
REQUEST THAT THE PORT DISTRICT REALLOCATE CITY/PORT MOU
FUNDS FOR THE CITY'S SHARE OF THE CONSULTANT CONTRACT
SUBMITTED BY: \ c;::;.
REVIEWED BY: CITY MANAGER
4/5THS VOTE: YES D NO ~
BACKGROUND
At a joint workshop of the Board of Port Commissioners (BPC) and the Chula Vista City Council
(Council) regarding the status of bayfront development, Port and City staff were directed (among
other things), to proceed with a Master Plan process for the Port properties in the Chula Vista
Bayfront, In the interim, Port and City staff have had a number of preparatory planning and
team building meetings designed to develop consensus on the process for implementing BPC and
Council direction,
The purpose of this item is to:
1. Consider the attached Joint Planning Agreement between the City and the Port District to plan
approximately 300 acres under the ownership and iurisdiction of the Port, including land
acquired from B.F. Goodrich, vacant and underutilized parcels, and the existing South Bay
Power Plant.
2. Authorize staff to coordinate with Port staff to solicit a Request for Qualifications/Proposals
(RFQ/RFP) for a land use planning consultant for the Chula Vista Bayfront Master Plan.
3, Direct staff to request that the Port District reallocate a portion of the remaining City/Port
MOU funds to fund the City's share of the land use consultant contract,
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PAGE 2, ITEM NO.:
MEETING DATE: 10/08/02
RECOMMENDATION
It is recommended that the City Council/Redevelopment Agency adopt the resolution approving a
Joint Planning Agreement with the Port District and acknowledging that the Port District proposes
to issue a Request for Qualifications/Proposals to obtain land use planning consultant services for
the preparation of the Chula Vista Bayfrant (Port Properties) Master Plan,
BOARDS/COMMISSIONS RECOMMENDATION
Not applicable,
DISCUSSION
On June 26, 2002, a joint workshop of the Board of Port Commissioners (BPC) and Chula Vista
City Council (City Council) was conducted and attended by Port and City staff comprising the
Chula Vista Bayfront Master Plan Joint Project Team, The Port and City staffs were directed to
proceed with the Master Plan study, The motion approved by both the BPC and City Council
directed staff to:
Begin a master planning effort for the Chula Vista Bayfront that will include
substantial public participation in order to bring back development and public
benefit concepts to the City and the Port prior to the start of the environmental
review with a range of funding options
Investigate the feasibility of a replacement power plant and switchyard on the
southern portion of the existing site
Investigate the feasibility of co-locating a desalination plant with a new
replacement power plant
Investigate the means to expedite the completion of "H" Street as well as the
demolition and remediation of the Goodrich property,
In developing the Master Plan, Port and City staff will consider refinements to the linkages
between this Bayfront Master Plan and the proposed Chula Vista Bayfront Village, and other
surrounding upland properties. As the cooperation between the Port and the City proceeds, it is
appropriate to formalize the working relationship in this Joint Planning Agreement.
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MEETING DATE:
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The Joint Planning Agreement contains the following elements:
. Background - a brief description of the approximately 300-acre study area and how the
master plan study was initiated.
. Purpose - the purpose of the CVBMP study, which is for the Port and City to work
cooperatively in a comprehensive planning process to develop the CVBMP, This section
also identifies goals of the master plan and process, which can be summarized as follows:
Consistency with tidelands trust requirements and restrictions
Broad community input and support
Protection and enhancement of environmental resources
Careful integration with adjoining areas in Chula Vista
Economic sustainability, revenue generation potential, and encouragement of
private sector participation
Creation of future market opportunities
Enhancement of a culturally diverse community
Development of a comprehensive funding program
Creation of recreational, public art, and open space opportunities
. Values - values identified by the team members as important in the master planning
process:
A process that is open and inclusive of all public points of view
Open and effective communication
- The "Wow!" factor
. Roles and responsibilities - the general roles of the team members and specific roles of
the Port departments that are part of the team,
. Decision making process - a brief description of the team structure and how the team
members will make decisions. A draft organizational chart is attached.
. Work program and communications - description of the work program concept and
general communication procedures.
. Resources and timeline - a list of potential consultant services that may be required, major
milestones, and anticipated time line.
. Cost sharing - a general commitment by the Port and City to share in the master
planning and implementation costs. The Port and City agree to equally share in the
master plan study costs, and to develop an equitable formula for sharing infrastructure
costs required to implement the CVBMP,
. Conflict resolution and sovereignty - the team members propose to resolve any
disagreements that may arise expeditiously, constructively, and by consensus when
possible. However, both the Port and the City reserve the right to approve or disapprove
of any plan or decision in accordance with applicable laws.
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MEETING DATE:
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In addition to the Joint Planning Agreement, a next step in the master planning process is to
retain a Land Use Planning Consultont to assist the Team in developing the master plan. It is
anticipoted that the Consultant team will consist of individuals in the fields of urban waterfront
planning and design, architecture, landscape architecture, civil engineering, real estate
development, public outreach, transportation planning and traffic engineering, marine biology,
and economic and financial analysis, The Consultant will be responsible for master plan related
activities such as, but not limited to holding visioning sessions with the Team and the Board and
City Council, facilitating public workshops, conducting feasibility analyses, and preparing reports
and graphics depicting master plan concepts and design guidelines, It is anticipated that the RFP
process will be completed by early December,
On October 8, 2002, the Board of Port Commissioners will consider authorizing Port staff to
enter into the Joint Planning Agreement and soliciting a Request for Qualifications/Proposals
(RFQ/P) for a land use planning consultant. In RFQ/P will contain a list of ideas derived from a
workshop held on September 12, 2002, between Port and City staff and facilitated by Katz &
Associates. This initial and very preliminary "visioning workshop" generated the following ideas:
. Resort hotel . World commerce center and civic
. Aquatic center plaza
. Bayfront promenade . Plaza/retail center
. Resta u ra nt row . Regional corporate center
. Sports complex . Eco-tourism opportunities
. Niche market convention center with . Water transportation system
associated hotels . Transit connections
. Modern power plant and possible
desalination plan
The previous bayfront proposal investigated an opportunity for inclusion of a regional shopping
center development, The preliminary visioning workshop did not identify this lond use element as
a preferred component of a future bayfront master plan. Although these concepts are neither
finite nor all inclusive, they are intended to provide early identification of uses that could be both
compatible with the City's bayfront and the State Lands Commission Public Trust requirements by
which Port land use must comply, This process identified key concepts as a starting point for
discussions with the selected consultant. Further analysis by both the consultant and staff would
be contingent upon a comprehensive public input process and direction from both the
Council/Agency and Board, as noted in the Joint Planning Agreement,
FISCAL IMPACT
Although the cost is not defined at this point, at the June 26, 2002 joint workshop between the
City Council and the Board of Port Commissioners, an overall budget was presented based on
previous master planning projects the Port had worked on, The cost estimate presented at that
meeting was $1,300,000, The cost was broken down as follows: $400,000 for planning,
$150,000 for environmental constraints, $150,000 for infrastructure studies, $150,000 for
.:J- - '-I
PAGE 5, ITEM NO.:
MEETING DATE:
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marketing studies, $400,000 for the EIR, and $50,000 for Coastal processing, We will be able
to refine these costs after the scope of work is better defined and a consultant team is selected.
The Port and City anticipate that a number of activities will need to be funded, including, but not
limited to, the staff time of their respective organizations, whose costs would be borne by the
respective organizations, In addition, the Port and the City agree to share in the following costs
in the following manner and/or percentages:
. The Port and City agree to equally share in the costs associated with the Master Plan study
. The Port and City agree to develop an equitable formula for sharing infrastructure costs
required to implement the CVBMP
At Council/Agency direction, staff will request the Port District ta reallocate a portian of the
approximate $12,2 million in remaining City/Port MOU funds to fund the City's share of the
Master Plan study, subject to a final determination of cost and resolution of the MOU Agreement.
Staff is preparing a recommendation for an updated City/Port MOU agreement for all remaining
MOU funds that will be brought forward for Council/Agency consideration in the near future,
J:\COMMDEV\STAFF.REp\ 1 Q-08-02\Joint Planning Agreement2.doc
.f;-~
AGENCY RESOLUTION NO.
AND
COUNCIL RESOLUTION NO.
JOINT RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT
AGENCY OF THE CITY OF CHULA VISTA APPROVING A JOINT PLANNING
AGREEMENT WITH THE PORT DISTRICT; ACKNOWLEDGING THAT THE PORT
DISTRICT PROPOSES TO ISSUE A REQUEST FOR QUALlFICATIONS/PROFOSALS
TO OBTAIN LAND USE PLANNING CONSULTANT SERVICES FOR THE
PREPARATION OF THE CHULA VISTA BAYFRONT (PORT PROPERTIES) MASTER
PLAN; AND DIRECTING STAFF TO REQUEST THAT THE PORT DISTRICT
REALLOCATE CITY/PORT MOU FUNDS FOR THE OTY'S SHARE OF THE
CONSULTANT CONTRACT
WHEREAS, on June 26, 2002, a joint workshop of the Board of Port Commissioners (BPC) and
Chula Vista City Council (City Council) was conducted and attended by Port and City staff comprising
the Chula Vista Bayfront Master Plan Joint Project Team; and
WHEREAS, the City and Port staffs were directed to proceed with the Master Plan study; and
WHEREAS, as the cooperation between the Port and the City proceeds, it is appropriate to
formalize the working relationship in a Joint Planning Agreement and
WHEREAS, in addition to the Joint Planning Agreement, a next step in the master planning
process is to retain a Land Use Planning Consultant to assist the Team in developing the master plan;
WHEREAS, through the Joint Planning Agreement, the City and the Port agree to equally share
in the costs associated with the Master Plan study;
NOW, THEREFORE, BE IT RESOLVED the City Council and Redevelopment Agency of the
City of Chula Vista do hereby approve a Agreement with the Port District in substantially the form
presented with the final form subject to City Attorney approval.
BE IT FURTHER RESOLVED that the City Council and Redevelopment Agency do hereby
acknowledge that the Port District proposes to issue a Request for Qualifications/Proposals to obtain
land use planning consultant services for the preparation of the Chula Vista Bayfront (Port Properties)
Master Plan with a portion of the remaining City/Port MOU funds allocated to fund the City's share of
the land use consultant contract costs.
Presented by
Approved as to form by
Chris Salomone
Director of Community Development
J:\COMMDEVlRESOSlJoint Planning Agreement.doc
5-'
JOINT PLANNING AGREEMENT
between the
San Diego Unified Port District
and the
City of Chula Vista
for the
Chula Vista Bayfront Master Plan Study
Background:
The San Diego Unified Port District (Port) has assembled a number of parcels along the Chula
Vista bayfront totaling approximately 300 acres under the ownership and jurisdiction of the Port,
including land acquired from Goodrich, vacant and underutilized areas, and the existing South
Bay Power Plant parcel. These parcels make up the Chula Vista Bayfront Master Plan
(CVBMP) study area. The Port and the Redevelopment Agency and City of Chula Vista
(collectively, City) have been working together to initiate the master planning process for the
CVBMP, including various meetings, tours and teambuilding activities among staff.
On June 26, 2002, a joint workshop of the Board of Port Commissioners (BPC) and Chula Vista
City Council (City Council) was conducted and attended by Port and City staff comprising the
CVBMP Joint Project Team (Team), and hereafter referred to as the Team Members, The
Team Members were directed to proceed with the CVBMP study. The motion approved by both
the BPC and City Council directed staff to:
. Begin a master planning effort for the Chula Vista Bayfront that will include substantial
public participation in order to bring back development and public benefit concepts to the
City and the Port prior to the start of the environmental review with a range of funding
options
. Direct the staff of Chula Vista and the Port to investigate the feasibility of a replacement
power plant and switchyard on the southern portion of the existing site
. Direct the staffs of the City and the Port to investigate the feasibility of co-locating a
desalination plant with a new replacement power plant
1 5-7
. Direct staff to investigate the means to expedite the completion of "H" Street as well as the
tear down and remediation of the Goodrich property.
In developing the CVBMP, the Team Members will consider refinements to the linkages
between the CVBMP and the proposed Chula Vista Bayfront Village, and other surrounding
upland properties. As the cooperation between the Port and the City proceeds, the Team
Members desire to formalize their working relationship in a Joint Planning Agreement.
Purpose:
The purpose of the CVBMP study is for the Port and City to work cooperatively in a
comprehensive planning process to develop a master plan for the CVBMP study area that will
result in the creation of a world-class bayfront through the following Objectives:
. Consistency with tidelands trust requirements and restrictions
. Broad community input into the planning process and support of the master plan
. Development of a master plan that protects and enhances environmental resources
. Seamless integration with adjoining properties
. Development of a visionary master plan that is economically sustainable, provides revenue
generation, and will encourage private sector participation
. Development of a plan that creates future market opportunities and defines the market
rather than simply responds to the existing market
. Development of a plan that eliminates or reduces barriers to linking the bayfront to the rest
of western Chula Vista
. Development of a plan that enhances a culturally diverse community and integrates the
bayfront with the rest of Chula Vista
. Development of a comprehensive funding program
. Development of a master plan that includes recreational, public art, and open space
opportunities as significant components of the plan
Team Values:
The Port and City have identified a number of values that are important to the conduct of the
planning process. Foremost, the process needs to be open and inclusive of all public points of
view and opinions. Given the public benefit aspect of the tidelands trust, the input into the
2 S-f
opportunities and amenities that become part of the master plan must represent an effort that
was conducted in an open and transparent process. The CVBMP study should be broad-
based, soliciting the active participation of a large number of interested and affected
stakeholders,
Open and effective communication must also be a hallmark of the process. Whether it is
communication among the Team Members, with their respective policymakers, with other
agencies, or with the community at large, effective communication will be instrumental in
building and maintaining trust among all of the participants.
The "Wow!" factor - this value is based on the belief that the CVBMP study area presents one
of the last great development opportunities for creating a legacy destination on San Diego Bay.
The Port and City are committed to developing a master plan that benefits the citizens of, and
visitors to, the region and that complements existing and proposed developments within the
City's corporate boundaries.
Roles and Responsibilities:
To achieve the CVBMP study's purpose and goals, the Port, the City, and the Team Members
have a number of complementary roles to play. These roles involve, at a minimum, land use
authority, permitting, public participation, funding, media relations, expertise, and decision-
making. In general, the Team Members are expected to:
. Share all master plan study-related data and information that will assist the Port and City
and the master plan as a whole in meeting its established goals
. Keep each other informed of actions and initiatives taken to achieve the CVBMP study
goals
. Coordinate activities that may complement or conflict with each other
. Identify existing and additional resources that can be used to achieve the CVBMP study
goals, and assist each other in utilizing or obtaining those resources
. Identify and participate in all joint actions that will achieve the CVBMP study goals
. Identify obstacles to achieving the CVBMP study goals and develop solutions for
overcoming them
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. Think creatively about how the Team Members can work collaboratively to achieve the
CVBMP study goals
. Respect each other's individual roles, opinions, and contributions
. Attempt to resolve conflicts by consensus and in a positive and constructive manner
Decision Making Process:
A successful project is dependent upon fundamental agreement between the Team Members
on all major aspects of the CVBMP study, Therefore, the Port, City, and Team Members agree
that the preferred decision making process will be collaborative discussion leading to
consensus. Consensus will be vigorously striven for and abandoned only as a last resort. If
consensus is not achievable, the Team Members will respect their differences and honestly and
objectively present the pros and cons of both approaches to their policymakers.
Executive Staff Committee - An Executive Staff Committee consisting of key executive staff
from both the Port and the City will be designated. This Committee, on behalf of the Team, will
provide direction to the Team and make recommendations to the BPC and City Council.
Joint Project Team - The Joint Project Team will be comprised of staff from both the Port and
the City assembled to assist in the preparation, review, and analysis of the CVBMP study
documents, and assist with other CVBMP study activities as needed. The Port will manage the
Joint Project Team, The Port or City will secure consultant services as necessary using scopes
of work approved by the Executive Staff Committee.
The Port departments will have the internal roles in the CVBMP study as specified in
Attachment A.
Work Program and Communications:
An overall work program, including a communications program, will be prepared by Port staff
and reviewed and approved by the Executive Staff Committee, This overall work program will
ensure that the steps in the planning process are agreed to early, the scope of the effort is
clearly defined, and the points in the process where the Team will communicate with the public,
including the policymakers, will be identified.
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Given the importance of open and effective communication, the following procedures will be
followed in the day-to-day course of the CVBMP study:
. Meetings -The Team Members will meet regularly, at least once every three weeks during
the first several months. It is anticipated that the location of the Team meetings will
alternate between the Port and City offices. Additional meetings may be necessary. If a
Team Member cannot attend a Team meeting, he/she shall send a representative from
his/her department, who shall have the same authority as the Team Member,
. Documentation - The Port staff shall prepare and timely distribute Team meeting minutes to
the Team Members, which will focus on conclusions and action items.
. Media - Individual staff may speak to the media on behalf of, and as authorized by, their
respective organization. However, the Team Members should refrain from speaking on
behalf of the Team unless the statements have been mutually considered and approved,
. Information Sharing - To keep Team Members timely informed of important
communications related to the CVBMP study, any information or interactions with
participants, elected officials, BPC, or other stakeholders outside the Team, should be
communicated to the Team Members immediately by phone, e-mail, or fax, or disclosed at
the next Team meeting. To keep the policymakers informed of the progress of the CVBMP
study, the Team Members shall regularly update the BPC and City Council, as appropriate.
. Public Outreach - As an early step in the process, a pubic participation program will be
developed that is open and inclusive,
Resources and Time Line:
The CVBMP study may require a number of resources to be accessed in order to be
successful, both within the respective organizations and from outside sources, which, in turn,
may require funding, The Port and City agree to support this effort by committing the
necessary staff resources and hiring consultants as deemed necessary to fully and efficiently
complete the CVBMP study. These consultants could include, but not be limited to, those in the
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fields of: land planning, architecture, economic development, traffic analysis, financial analysis,
economic analysis, utilities, desalination, environmental documentation, and coastal advocacy.
The Team Members agree that time is of the essence and the Team Members will strive to
cooperate to develop a time line with milestones, along with a comprehensive work program,
that the Team Members will work expeditiously to achieve.
The presumed major milestones and time line for the CVBMP study are as follows, subject to
modification by mutual agreement as the process proceeds:
. Summer/Fall 2002 - Initiate Planning Process and Solicit RFP for Consultant Team
. Fall/Winter 2002 - Initiate Public Workshops
. Spring 2003 - Joint BPC/ City Council Presentation for Concept Plan Progress and Policy
Direction
. Summer 2003 - Begin Environmental Review
. Spring/Summer 2004 - Environmental Impact Report Certification and Port Master Plan
Amendment and Local Coastal Program Amendment Adoption by BPC/City Council
. Fall/Winter 2004 - Port Master Plan Amendment and Local Coastal Program Amendment
Certification by Coastal Commission
Cost Sharing
The Port and the City anticipate that a number of activities will need to be funded, including, but
not limited to, the staff time of their respective organizations, whose costs would be borne by
the respective organizations. In addition, the Port and the City agree to share in the following
costs in the following manner and/or percentages:
. The Port and City agree to equally share in the costs associated with the CVBMP study
. The Port and City agree to develop an equitable formula for sharing infrastructure costs
required to implement the CVBMP
Conflict Resolution and Sovereignty:
In the course of joint planning activities, disagreements will inevitably arise regarding what
course of action should be taken. The Team Members agree to work in a collaborative fashion
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and to facilitate consensus on these issues whenever possible. The Team Members agree
they will attempt to resolve any disagreements expeditiously and constructively to achieve the
CVBMP study goals and to work towards a joint recommendation to the Port Board and City
Council. In the event of an impasse, subject to applicable laws, the Port shall be the final
decision maker as it relates to land use on tidelands trust areas. However, it will carefully weigh
the consequences of any decision to take action where there is a lack of consensus.
Notwithstanding the foregoing (a) each staff reserves the right to make its own recommendation
to its respective board, and (b) the Port Board and City Council each reserve the full power and
authority to act as each deems appropriate in accordance with applicable laws.
No Joint Venture; Independent Contractors:
Nothing in this agreement shall be deemed to create any form of business organization
between the parties, including, without limitation, a joint powers authority, joint venture or
partnership. Each party is an independent governmental authority, and shall be solely
responsible for the employment, acts, omissions, control and directing of its employees. Except
as expressly set forth herein, nothing contained in this agreement shall authorize or empower
any party to assume or create any obligation or responsibility whatsoever, express or implied,
on behalf of or in the name of any other party or to bind any other party or make any
representation, warranty or commitment on behalf of any other party,
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By signing below, the Team Members agree to the statements outlined in this agreement and
resolve to work together to demonstrate how public agencies and communities working in
concert can achieve significant and sustainable development that is the envy of other waterfront
communities,
Dated
San Diego Unified Port District
Stephen P. Cushman
Chairman
City of Chula Vista
Shirley Horton
Mayor
San Diego Unified Port District
Bruce B. Hollingsworth
Executive Director
City of Chula Vista
Dave Rowlands
City Manager
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Attachment A
The Port departments will have the following internal roles in the CVBMP study:
land Use Planninq
. Act as team leader
. Chair regularly scheduled CVBMP team meetings
. Assign roles of subcommittees
. Report to the Port BPC, President/CEO, Executive Vice-President, and Vice-President
Operations/COO
. Provide regular updates to the BPC on the progress of the CVBMP study
. Define and allocate work assignments and responsibilities
. Manage land use planning, traffic, or other consultant contracts
. Carry out the day to day administrative tasks relating to the CVBMP study, including but not
limited to:
;.. Keeping and maintaining the CVBMP study files
;.. Setting and noticing the team meetings and preparing and distributing agendas and
minutes
;.. Timely distributing information to all Team Members
. Assist in coordinating public outreach efforts
. Perform tasks as needed relating to the preparation of the environmental impact report
. Perform tasks needed to process a Port Master Plan Amendment
. Providing timely technical and professional expertise on land use planning issues as needed
. Coordinate other master plan study-related activities
Real Estate/Architectural and Mappino Services
. Provide timely technical and professional expertise on real estate, urban design, and
architectural design issues as needed
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. May manage market and economic consultant contracts as needed
. Provide professional expertise relating to replacement generation plants and desalination
plants
Environmental Services
. Provide timely technical and professional expertise on environmental and recreational
issues as needed
. Provide professional expertise on environmental concerns relating to energy and
desalination plants
Environmental Review
. Provide timely technical and professional expertise on California Environmental Quality Act
issues as needed
. Manage the environmental review documentation consultant contract
Enqineerinq Desiqn:
. Provide timely technical and professional expertise on engineering issues.
. May manage utility consultant contract as needed
Communications and Community Services:
. Provide timely technical and professional expertise on public outreach and recreational
issues
. May manage facilitation and other public outreach consultant contracts as needed
. Assist in coordination of public outreach efforts
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Public Art
. Provide timely technical and professional recommendation on public art issues and develop
a plan for public art within the study area
. May manage artist contracts if needed
. Facilitate coordination of joint planning between the Port's Public Art Program and the City's
Cultural Arts Commission
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Attachment B
Team Members:
SAN DIEGO UNIFIED PORT DISTRICT:
CITY OF CHULA VISTA:
Ralph Hicks
Sid Morris
Wileen Manaois
Leisa Lukes
Genene Lehotsky
Chris Salomone
E. Daniel Strum
George Krempl
James Barwick
Tony Lettieri
David Sandoval
Brian Hunter
David Merk Jim Sandoval
William Hays Lyle Haynes
Tony Heinrichs Tom Adler
Melissa Mailander Byron Estes
William Winchell Cliff Swanson
Robert Amezquita
Michael Meacham
Diana Lucero
Cheryl Dye
Catherine Sass
Jeri Gulbransen
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