Loading...
HomeMy WebLinkAboutRDA Packet 2004/11/23 Notice is hereby given that the Chairman of the Redevelopment Agency has called and will convene a special meeting of the Redevelopment Agency and an Adjourned Regular Meeting of the City Council, Tuesday, November 23, 2004, at 6:00 p.m., immediately following the City Council meeting in the Council Chambers, located in the Public Services Building, 276 Fourth Avenue, Chula Vista, California to consider, deliberate and act upon the following: tephen ~~~ :~::,-~ -jg;=~-::= el1Y OF CHUIA VISTA TUESDAY, NOVEMBER 23.2004 6:00 P.M. (immediately following the City Council meeting) COUNCIL CHAMBERS PUBLIC SERVICES BUILDING JOINT MEETING OF THE REDEVELOPMENT AGENCY J CITY COUNCIL OF THE CITY OF CHULA VISTA CALL TO ORDER ROLL CALL Agency/Council Members Davis, McCann, Rindone, Salas; Chair/Mayor Padilla CONSENT CALENDAR The staff recommendations regarding the following item(s) listed under the Consent Calendar will be enacted by the Council/Agency by one motion without discussion unless an Council/Agency 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 Redevelopment Agency or the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be discussed after Public Hearing items. Items pulled by the public will be the first items of business. 1. APPROVAL OF MINUTES - September 21 and October 26, 2004 2. JOINT RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA JOINT RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING THE SECOND AMENDMENT TO THE AGREEMENT WITH ADVOCATION, INC. EXERCISING THE CITY'S OPTION TO EXTEND THE CONTRACT FOR THE 2005-2006 LEGISLATIVE SESSION, AND AUTHORIZING THE MAYOR/CHAIR TO EXECUTE THE SECOND AMENDMENT ON BEHALF OF THE CITY OF CHULA VISTA - On December 31, 2004, the current agreement with Advocation, Inc. expires. This agreement was for the provision of legislative representation in Sacramento throughout the 2003-2004 legislative session.. Based on the firm's success in promoting Chula Vista's legislative agenda, staff recommends exercising the City's option to extend this contract. 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 II 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 Council/Agency, staff, or members of the general public. The items will be considered individually by the Council/Agency 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. JOINT RESOLUTION OF THE CITY COUNCIL AND REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA (1) AUTHORIZING THE FORMATION OF A 501C3 PUBLIC BENEFIT CORPORATION FOR PURPOSES OF CONDUCTING REDEVELOPMENT AND PLANNING ACTIVITIES WITHIN THE URBAN CORE PLANNING AND REDEVELOPMENT AREAS OF CHULA VISTA; (2) DIRECTING STAFF TO PREPARE NECESSARY LEGAL DOCUMENTS NEEDED FOR THE 501C3 FORMATION (3) APPROPRIATING FY 04-05 OPERATING BUDGET AND COMPENSATION SCHEDULE FOR THE 501C3 BOARD OF DIRECTORS; AND (4) DIRECTING CITY STAFF AND THE CITY ATTORNEY TO REPORT BACK TO THE CITY COUNCIL BY JANUARY 2005 WITH DRAFT LEGAL AND OPERATING DOCUMENTS - On February 3, 2004, the City Council directed staff and consultants to prepare an analysis and discussion paper on the creation of a 501 c3 Redevelopment Corporation. As part of the preparation for this report, two facilitated workshops were held on the formation of a 501 c3 Corporation. A detailed report was distributed to the Council and the public on July 20, 2004; the report builds upon the conclusions and recommendations from these workshops, the July report and recent legal analysis prepared by Rutan and Tucker, LLP, Attorneys at Law on behalf of the City Attorney's Office. [Director of Community Development] STAFF RECOMMENDATION: 1) Authorize the formation of a 501 c3 Public Benefit Corporation for the purposes of conducting redevelopment and planning activities within Redevelopment Agency, November 23, 2004 Page 2 the Urban Core Planning Areas and Redevelopment Project Areas of the City of Chula Vista. 2) Direct the City Attorney and the Community Development Director to prepare all necessary legal and operational documents including, but not limited to, the Articles of Incorporation, Bylaws, operational budget, and amendments to City Ordinances as described in Attachment "B." 3) Appropriate $100,000 for the preparation of formation documents and for the initial period of operation in FY 04-05. 4) Establish compensation schedule for 501c3 board members at $750 per month and $1,500 per month for the Board Chair. OTHER BUSINESS 4. DIRECTOR'S REPORT 5. CHAIR REPORT 6. AGENCY COMMENTS ADJOURNMENT The meeting will adjourn to a regular meeting of the Redevelopment Agency on December 7,2004, at 4:00 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 (TOO) at (619) 585-5647. California Relay Service is also available for the hearing impaired. Redevelopment Agency, November 23, 2004 Page 3 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 21, 2004 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 6:55 p.m. in the Council Chambers, located in the Public Services Building, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Agency/Councilmembers: Davis, McCann, Rindone, Salas and Chair/Mayor Padilla ABSENT: Agency/Councilmembers: None ALSO PRESENT: Executive Director/City Manager Rowlands, Agency/City Attorney Moore, and City Clerk Bigelow CONSENT CALENDAR Regarding Item I, Agency/Councilmember Rindone requested a report on the incentive payments and an analysis of the annual sales tax for the incentive period by dealership. I. AGENCY RESOLUTION NO. 1895, RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROPRIATING $23,465 FROM THE AVAILABLE BALANCE OF THE MERGED PROJECT AREA FOR THE PURPOSE OF AN INCENTIVE PAYMENT DUE TO PEOPLE'S CHEVROLET PURSUANT TO A 1993 DISPOSITION AND DEVELOPMENT AGREEMENT In 1993, the Redevelopment Agency adopted a disposition and development agreement for the Chula Vista Auto Park Phase I, including a provision for payment of incentives to auto dealers if they exceeded a threshold of sales tax receipts to the City during the first 15 years of operations. The auto dealer incentives are based on a formula contained in the agreement. Based on the formula, People's Chevrolet exceeded the sales tax threshold in 2003 and is due an incentive payment. (Director of Community Development) Staff recommendation: Agency adopt the resolution. 2. ORDINANCE NO. 2978, ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING A ZONE CHANGE (PCZ-03-06) FROM LIMITED INDUSTRIAL TO CENTRAL COMMERCIAL FOR 4501 MAIN STREET & Y ACOEL PROPERTIES, LLC (SECOND READING AND ADOPTION) / - ( CONSENT CALENDAR (Continued) The applicant, Yacoel Properties, LLC, requested a General Plan amendment, zone change and design review to allow the development of a retail commercial shopping center on the south side of Main Street and the east side ofInterstate 805. The proposed shopping center consists of five retail tenants and two restaurant pads, totaling approximately 189,000 square feet on a site of approximately 17.2 acres. On August 24, 2004, the Council adopted a resolution approving the General Plan amendment, and the Redevelopment Agency adopted a resolution approving the design review. The Council also placed the ordinance on first reading to approve the zone change (PCZ-03-06) from limited industrial to central commercial. (Director of Community Development) Staff recommendation: Council adopt the Ordinance. 3. ORDINANCE NO. 2979, ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE NEGATIVE DECLARATION (IS-03-034) AND AMENDING THE ZONING MAPS ESTABLISHED BY SECTION 19.18.010 OF THE MUNICIPAL CODE, REZONING A 1.2 ACRE PARCEL LOCATED AT 1030/1034 BROADWAY FROM THE THOROUGHFARE COMMERCIAL, PRECISE PLAN ZONE TO THE CENTRAL COMMERCIAL, PRECISE PLAN ZONE AND ADOPTING PRECISE PLAN STANDARDS (SECOND READING) The applicant, Carlos Madrazo, requested a zone change in order to rezone a 1.2-acre parcel located at 1030/1034 Broadway to Central Commercial to allow a mixed-use project. (Director of Planning and Building) Staff recommendation: Council adopt the Ordinance. ACTION: Chair/mayor Padilla moved to approve staffs recommendations and offered the Consent Calendar, headings read, texts waived. The motion carried 5-0. ORAL COMMUNICATIONS There were none. OTHER BUSINESS 4. DIRECTOR/CITY MANAGER'S REPORTS There were none. 5. CHAIR/MA YOR'S REPORTS There were none. 6. AGENCY/COUNCILMEMBER COMMENTS There were none. ADJOURNMENT At 7:00 p.m., ChairlMayor Padilla adjourned the meeting to a Regular Meeting of the Redevelopment Agency on October 5, 2004, at 4:00 p.m., immediately following the City Council Meeting in the Council Chambers. . -=- 'J..U~~~ Susan Bigelow, MMC, City Clerk Page 2 CouncillRDA Minutes 1- L 09/21/04 MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CITY COUNCIL AND A SPECIAL MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA October 26, 2004 6:00 p.m. An Adjourned Regular Meeting of the City Council and a Special Meeting of the Redevelopment Agency of the City of Chula Vista were called to order at 6:24 p.m. in the Council Chambers, located in the Public Services Building, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Agency/Councilmembers: Davis, McCann, Rindone, Salas and Chair/Mayor Padilla ABSENT: Agency/Councilmembers: None ALSO PRESENT: Executive Director/City Manager Rowlands, Agency/City Attorney Moore, and City Clerk Bigelow CONSENT CALENDAR Agency/Councilmember Salas stated that she would abstain from voting on Item No. 2A due to the proximity of her residence to the property. 1. APPROVAL OF MINUTES of September 14, 2004. Staff recommendation: Council! Agency approve the minutes. 2. A. COUNCIL RESOLUTION NO. 2004-345, AND AGENCY RESOLUTION NO. 1896, RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROPRIATING $575,000 AS A LOAN FROM THE GENERAL FUND TO THE BAYFRONT/TOWN CENTRE 1 REDEVELOPMENT AGENCY, TO REIMBURSE THE PORT DISTRICT FOR THE COSTS ASSOCIATED WITH CANCELLATION OF THE PROPERTY TRANSACTION FOR THE 2.73 ACRE PARCEL OF LAND AT 980 LAGOON DRIVE B. COUNCIL RESOLUTION NO. 2004-346, AND AGENCY RESOLUTION NO. 1897, RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA CONCURRING WITH PORT DISTRICT BOARD APPROVAL OF A CONSULTING AGREEMENT WITH COOPER, ROBERTSON AND PARTNERS, FOR A PERIOD OF SEVEN MONTHS FOR A FEE NOT TO EXCEED $675,000, TO PROVIDE URBAN WATERFRONT PLANNING AND DESIGN CONSULTING SERVICES FOR PHASE II OF THE CHULA VISTA BA YFRONT MASTER PLAN /-3 CONSENT CALENDAR (Continued) In 1997, the Port District and City entered into a purchase agreement for the Port's acquisition of the 2.73-acre parcel of land at 980 Lagoon Drive. Since the original transaction was negotiated, the Port and the City have embarked upon a joint master planning effort for the Chula Vista Bayfront, which includes the subject property. The intent of the original purchase agreement has changed and, therefore, cancellation of the property transaction is recommended. To reimburse the Port District for costs associated with cancellation of this transaction, a loan from the General Fund to Bayfront Town Centre I Redevelopment Agency is necessary. On October 19, 2004, the Port Board agreed to combine these reimbursed funds with other Port funds committed for the Chula Vista Bayfront master planning effort. The Board also approved a consulting agreement with Cooper, Robertson, and Partners to provide urban waterfront planning and design consulting services for the master plan. (Director of Community Development) Staff recommendation: Council/Agency adopt the resolutions. 3. COUNCIL RESOLUTION NO. 2004-347 AND AGENCY RESOLUTION NO. 1898, RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA WAIVING THE FORMAL BIDDING PROCESS AND APPROVING A TWO PARTY AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND RECON, FOR CONSULTING SERVICES TO PREPARE A MASTER ENVIRONMENTAL IMPACT REPORT FOR THE CITY'S URBAN CORE SPECIFIC PLAN, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT On May 27, 2003, the Council and Redevelopment Agency directed staff to initiate the preparation of an Urban Core Specific Plan, the completion of which has been identified as a high priority by the City, in order to assist in the revitalization of the Urban Core. Adoption of the Urban Core Specific Plan would require the certification of an Environmental Impact Report pursuant to the California Environmental Quality Act. (Director of Planning and Building) Staff recommendation: Council/Agency adopt the resolution. ACTION: Chair/Mayor Padilla moved to approve staffs recommendations and offered the Consent Calendar, headings read, texts waived. The motion carried 5-0, except for Item 2A, which carried 4-0-1, with Agency/Councilmember Salas abstaining due to the proximity of her residence to the property. ORAL COMMUNICATIONS There were none. Page 2 CounciVRDA Minutes 1- ci 10/26/04 OTHER BUSINESS 4. DIRECTOR/CITY MANAGER'S REPORTS There were none. 5. CHAIRIMAYOR'S REPORTS There were none. 6. AGENCY/COUNCILMEMBER COMMENTS There were none. ADJOURNMENT At 6:27 p.m., Chair/Mayor Padilla adjourned the meeting to a Regular Meeting of the Redevelopment Agency on November 2, 2004, at 4:00 p.m., immediately following the City Council Meeting in the Council Chambers. -c=::>>{.LL tu...l~' <(.oJ ~- Susan Bigelow, MMC, City Clerk ) 1- S; Page 3 CounciVRDA Minutes 10/26/04 PAGE 1, ITEM NO.: .;L MEETING DATE: 11/23 04 JOINT REDEVELOPMENT AGENCY / CITY COUNCIL AGENDA STATEMENT ITEM TITLE: JOINT RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING THE SECOND AMENDMENT TO THE AGREEMENT WITH ADVOCATION, INC. EXERCISING THE CITY'S OPTION TO EXTEND THE CONTRACT FOR THE 2005-2006 LEGISLATIVE SESSION, AND AUTHORIZING THE MAYOR/CHAIR TO EXECUTE THE SECOND AMENDMENT ON BEHALF OF THE CITY OF CHULA VISTA. SUBMITTED BY: COMMUNITY DEVELOPMENT DIRECTOR REVIEWED BY: EXECUTIVE DIRECTOR, REDEVELOPMENT AGENCY 4/5THS VOTE: YES D NO 0 BACKGROUND On December 31, 2004, the current agreement with Advocation Inc. expires. This agreement was for the provision of legislative representation in Sacramento throughout the 2003-2004 legislative session. Based on the firm's success in promoting Chula Vista's legislative ogenda, staff recommends exercising the City's option to extend this contract. RECOMMENDATION That the Council/Redevelopment Agency approve the Second Amendment to the Agreement with Advocation, Inc. exercising the City's option to extend the contract for the 2005-2006 legislative Session (proposed agreement attached as exhibit "A"). The effective period will be January 1, 2005 through December 31, 2006, with two two-year renewal options (at the City's sole ond unfettered discretion) remaining on the original Agreement. BOARDS/COMMISSIONS RECOMMENDATION Not applicable. DISCUSSION Backaround The City of Chula Vista, together with its Redevelopment Agency, has contracted for legislative representation since 1986 in order to augment the City's existing relationship with key legislators D2 - r PAGE 2, ITEM NO.: MEETING DATE: 11 23 04 and policy administrators, as well as to maintain a high level of effective advocacy with the legislative and executive branches of State government-- particularly with regard to the City's adopted legislative Program. Procedure In 2000, the Council approved a contract with Advocation, Inc. to provide lobbying services. At the time of the award, Council also agreed to include the option of renewing this agreement for four additional two-year periods. In determining whether or not to recommend thot the Council exercise the first of the extensions, city staff reviewed the following criteria: . degree of success in achieving the goals of the Council's adopted legislative program · experience of principal representatives in Sacramento politics and municipal issues; . proven ability to influence and affect the opinions ond actions of the legislotive ond executive branches of State government, as well as the State's administrative staff; · demonstrated expertise in those issues and topics covered by the City's legislative program; . sufficiency of staff to meet the workload and timing requirements of the City's legislative Program; · and demonstrated stability from a financial, organizational and personnel perspective. Qualifications of the Firm Advocation, Inc. has been omong the largest and most successful lobbying firms in Socramento for more than 30 years. Their staff of lobbyists represents a combined toto I of more than 100 years of experience in lobbying the California legislature and Administration. The firm currently represents such corporate clients as VISA USA, Prudential Insurance Company, NASCAR and Federal Express. The firm's association with these kinds of clients is a significant benefit when meeting with members of the legislature or with the Governor's office. In addition, the diversity of Advocation's client base, and the resulting expansive professional network developed by the firm, has given Advocation an exceptionally high level of expertise in issues with which Chula Vista is deeply involved, including: transportation funding, revenue allocation at the state and local level, utility deregulation, labor relations, workers compensation reform, and developing effective coalitions to improve the City's ability to advance its legislative agenda. Advocation is well-positioned to assist the City in addressing many of the issues facing the legislature in the coming session, including: resolution of the looming $5 - 6 billion budget deficit in the next fiscal year, development of a sound energy policy prior to potential shortages facing the state as early as 2006 and negotiation/adoption of the Governor's "California Performance .:z-2- PAGE 3, ITEM NO.: MEETING DATE: 11 23 04 Review" recommendations for restructuring the state's massive array of agencies, departments, boards and commissions and their functions. Scope of Work The recommended contract designates Advocotion, Inc. as the City/Agency's official legislative representative with the California State legislature and various governmental agencies. Further, the agreement will include requirements that the City/Agency be provided with comprehensive legislative services including: 1. Review of all bills introduced in the California legislature, informing the City/Agency of all State legislation affecting the City/Agency's primary interests, and forwarding advance copies of such bills to the City/Agency when not available electronically; 2. Attending all league of California Cities regular "city representative" meetings and briefings; 3. Coordinating legislative activities and policies with the Colifornia Redevelopment Association; 4. Tracking legislation on which the City/Agency has token a position, maintaining bill records and notifying the City/Agency of pending or completed amendments to such bills; 5. Arranging meetings with legislative representatives for elected officials and City staff when necessary, and being prepared to participate in these meetings as required; 6. Performing customary duties of legislative advocacy and governmental affairs representation on behalf of the client to the best of their ability, experience and expertise; 7. Gothering data and providing information to the City/Agency on such matters as: a. State agency and deportment regulations, guidelines, directives, and other instruments of administrative policy that may impact City/Agency projects or operations; b. Funding opportunities for proposed City/Agency projects and maximizing use of all available State resources for financing programs and mandates; c. Hearings, reports and testimony of interest to the City/Agency; 8. Representing the City/Agency in meetings with state bodies, boards, commissions, and legislative bodies; 9. Developing legislative initiatives to assist in the implementation of the City/Agency's legislative Program; 10. Tracking and monitoring propositions and initiatives at the State level and keeping the City/Agency apprised of proposals that impact City Services. 11. Consistent with the City/Agency's legislative Program, working directly with the Executive Director of the Agency on: a. Developing legislative initiatives and sponsoring appropriate legislation to further assist in the implementation of the City/Agency's legislative Program and the 0<.-3 PAGE 4, ITEM NO.: MEETING DATE: ~ 11 23 04 Agency's economic development, planning, and redevelopment programs and activities. b. Developing strategies and work programs to identify and secure federal and state grant funding opportunities and sources for the Agency's economic development, planning, and redevelopment programs and activities. c. Developing and implementing strategies to protect local funding for redevelopment agencies and prevent shifts or reallocations of redevelopment agency funds to the state or to agencies, entities, programs, or funding accounts that would otherwise be funded by the state. FISCAL IMPACT Advocation has agreed to provide their services at a monthly rate of $6,000, exclusive of expenses. The annual contract cost would not exceed $ 79,000 inclusive of expenses. A portion of this fee (35%) is paid by the City's Redevelopment Agency. This is based on the projected percentage of the lobbyist's time that is spent on redevelopment-reloted issues. Although the fiscal impacts of many of a lobbyisfs efforts can be difficult to estimate, (e.g. issues of home rule, civil liability, land use control), past assistance from lobbying firms has provided substantial, concrete savings and benefits. In previous years this has included: $12 million in State funds for construction of a veterans home in Chula Vista, $4 million for legislative enactment and preservation of supplemental subventions, $750,000 for alternative fuel programs, and $400,000 for the Chula Vista Nature Center seawater system, $490,000 for renovation of Loma Verde Park Pool ond $284,000 for improvements to Greg Rogers Park. AnACHMENTS Attachment A - Agreement dated January 1, 2001 between the City, Agency and Advocation Attachment B - Exhibit A to First Amended and Restated Agreement between the City, Agency and Advocation J:\COMMDEV\STAFF.REp\2004\11-23-04\Advocalion Contract Renewal112304.doc c2 -cf RESOLUTION NO. (COUNCIL RESOLUTION NO. 2004-~ JOINT RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING THE SECOND AMENDMENT TO THE AGREEMENT WITH ADVOCATION, INC. EXERCISING THE CITY'S OPTION TO EXTEND THE CONTRACT FOR THE 2005-2006 LEGISLATIVE SESSION AND AUTHORIZING THE MAYOR/CHAIR TO EXECUTE THE SECOND AMENDMENT ON BEHALF OF THE CITY OF CHULA VISTA WHEREAS, on December 31, 2004, the current agreement with Advocation, Inc. for the provision of legislative representation in Sacramento expires; and WHEREAS, based on the firm's success in promoting Chula Vista's legislative agenda, staff recommends exercising the City's option to extend this contract; and WHEREAS, the effective period will be January 1, 2005 through December 31,2006, with two two-year renewal options (at the City's soie and unfettered discretion) remaining on the original Agreement. NOW, THEREFORE, BE IT RESOLVED the City Council and Redevelopment Agency of the City of ChuJa Vista does hereby approve the Second Amendment to the Agreement with Advocation, Inc. exercising the City's option to extend the contract for legislative representation for the period of January 1, 2005 through December 31, 2006, at a cost not to exceed $79,000 per year inclusive of expenses, a copy of which shall be kept on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the Mayor/Chair is hereby authorized to execute said Second Amendment for and on behalf of the Redevelopment Agency and the City of Chula Vista. Presented by Approved as to form by Laurie Madigan Director of Community Development ~ A Moore City Attorney and Ag J/commdev/resos/Advocation option c2.-.s- SECOND AMENDMENT TO the Agreement Between the City of Chula Vista and the Redevelopment Agency and Advocation, Inc. for Legislative Representation Recitals This Second Amendment is entered into effective as of 1/1/05, by and between the City ofChula Vista ("City") the Redevelopment Agency of the City ofChula Vista (collectively "City") and Advocation, Inc. ("Consultant") with reference to the following facts: WHEREAS, City and Consultant entered into an agreement ("Original Agreement"), dated November 14,2000 and approved by City Council Resolution 2000-429, whereby Consultant provided Legislative Representation from January I, 2001 to December 31, 2002; and WHEREAS, the Original Agreement contained a provision for four two-year renewal options of this Agreement; and WHEREAS, the first renewal option was approved as the First Amended and Restated Agreement ("First Amendment") on November 26, 2002 by City Council Resolution 2002-487; and WHEREAS, the City staff have reviewed and evaluated the work of Consultant during the past two years and finds the work to have met the needs and expectations of the City; and WHEREAS, this second amended agreement exercises the second of the two-year renewal options; and WHEREAS, Consultant warrants and represents that they are experienced and staffed in a manner such that they can prepare and deliver the services required of Consultant to City within the timeframes herein provided all in accordance with the terms and conditions of this Agreement. NOW, THEREFORE, in consideration of the recitals and the mutual obligation of the parties set forth herein, the City and Consultant agree as follows: I. Section 8.A. of Exhibit A to the First Amendment entitled "Detailed Scope of Work" is hereby amended to include the following tasks and responsibilities: 02. - Co 8.A. 14. Coordinate legislative activities and policies with the California Redevelopment Association. IS. Consistent with the City/Agency's Legislative Program, work directly with the Executive Director of the Agency on: a. Developing legislative initiatives and sponsoring appropriate legislation to further assist in the implementation of the City/Agency's Legislative Program and the Agency's economic development, planning, and redevelopment programs and activities. b. Developing strategies and work programs to identify and secure federal and state grant funding opportunities and sources for the Agency's economic development, planning, and redevelopment programs and activities. c. Developing and implementing strategies to protect local funding for redevelopment agencies and prevent shifts or reallocations of redevelopment agency funds to the state or to agencies, entities, programs, or funding accounts that would otherwise be funded by the state. 2. Section 8.D. of Exhibit A to the First Amendment entitled "Date for completion of all Consultant services" is hereby amended as follows: 8.D. Date for completion of all Consultant Services: December 31, 2006. 3. Section 8.E. of Exhibit A to the First Amendment entitled "City Renewal Options" is hereby amended as follows: 8.E. The term of this agreement shall be extended for a maximum of two additional two-year terms. Each such two-year option shall be at the City's sole and unfettered discretion, subject to approval by the City Council and Agency Board. 4. Section 13 of Exhibit A to the First Amendment entitled "Contract Administratorslkey personnel" is hereby amended as follows: 13. City: Office of the Mayor, 276 Fourth Avenue, Chula Vista, CA 91910 5. Section 18. C. of Exhibit A to the First Amendment entitled "City's Account Number(s) is hereby amended as follows: 18.C 01000-6401,31710-6301,61110-6301,61120-6301, 65110-6301, 65120- 6301 and 65130-6301 02. -t 6. Except as expressly provided herein aU other provisions of the Original Agreement and the First Amendment thereto shall remain in full force and effect. cZ-~ SIGNATURE PAGE TO THE SECONDAMENDMENT TO the Agreement Between the City of Chula Vista and the Redevelopment Agency and Advocation, Inc. for Legislative Representation City ofChula Vista Advocation, Inc. by Steve C. Padilla, Mayor by Charles L. Cole President Date ATTEST: Susan Bigelow, City Clerk Approved in form by: Ann Moore, City Attorney C:\CKelly\Agenda Statements\Second Advocation Amended Contract.doc ~-9 ATTACHMENT A Agreement between City of Chul=. Vista and the Redevelopment Agency and Advocation, Inc. for Legislative Representation This agreement ("Agreement"), is entered into effective as of January 1, 2001 ("Effective Date") by and between the City of Chula Vista and the Redevelopment Agency of the City of Chula Vista (collecti ''-e "City") and Advocation, Inc., a California corporation ("Consultant"), and is made with reference to the following facts: Recitals Whereas,the City cf Chula Vista has contracted for legislative representa~ion since 1986; and, Whereas,on Septe~~er 18, 2000 the city issued a Request for Proposals (RFP) from qualified firms for Legislative Representation from the period of January 1, 2001 through December 31,. 2002; and, Whereas the City received four responses to this solicitation by the final deadline of 5:00pm on October 20, 2000; and Whereas the City staff have reviewed and evaluated these proposals; and, following presentation of the recommendations to Council, received direction to negotiate a contract with Advocation, Inc.; and, Whereas, Consultant warrants and represents that they are experienced and staffed in a manner such that they 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; d. -I 0 Concract.ADV NOv'!!T'.ber 14., 2rJGIj 3'tand.J:-d Form Two Pa!:'tjl Agr,=emenc (F:urt.h ?'s.t':'3ion) ..:J _ 7 ?a,;.'! 1 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". =ailure 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 Schedul~" in Exhibit A, Paragraph 11 IC), unless a separate fixed fee is otherwise agreed upon. All compensation for Additional Services shall be paid monthly as billed. E. Standard of Care Consultant, in performing any Services under this agreement, whether Defined Services or Additional Services, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations. 0< -II ~tandard r~~ Two P~rty Agreeme~t (Fourth R~'lision) P,3.gi:! 2 :.::ntract..J..CN N~'lembe= 14, 2000 ... " F. Insurance Consultant represents that it and its agents, staff and subconsultants employed by it in conneccion with the Services required to be rendere~, are protected against the risk of loss by the following insurance coverages, in the following categor- ies, and to the limits specified, policies of which are issued by Insurance Companies that have a Best's Rating of "A, Class V" or better, or shall meet with the approval of the City: Statutory Worker's Compensation Insurance and Employer's Liability Insurance coverage in the amount set forth in the attached Exhibit A, Paragraph 9. Commercial General Liability Insurance including Business Automobile Insurance coverage in the amount set forth in Exhibit A, Paragraph 9, combined single limit applied separately to each project away from premises owned or rented by Consultant, which names City and Applicant as an Additional Insured, and which is primary to any policy which the City may otherwise carry ("Primary Coverage"), and which treats the employees of the City and Applicant in the same manner as members of the general public ("Cross-liability Coverage") . Errors and Omissions insurance, or Professional Liability Insurance, in the amount set forth in Exhibit A, Paragraph 9, unless Errors and Omissions coverage is included in the General Liability policy. Any Deductibles and Self-Insured Retentions must be approved separately as noted in Exhibit A, paragraph 9. 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. .;:L - ( 2- Cont!::act.ADV November 14, 2000 3:andard F~~ Two Part, Agreement (tuurth ~~7~sion) ")- Q 2-5.ge J H. Security for Performance. Not Applicable I. Business License Consultant agrees to obtain a business license from the City and to otherwise comply with Title 5 of the Chula Vista Municipal Code. 2. Duties of the City A. Consultation and Cooperation City shall regularly consult the Consultant for the purpose of reviewing the progress of the Defined Services and Schedule therein contained, and to provide direction and guidance to achieve the objectives of this agreement. The City shall permit access to its office facilities, files and records by Consultant throughout the term of the agreement. In addition thereto, City agrees to provide the information, data, items and materials set forth on Exhibit A, Paragraph 10, and with the further understanding that delay in the provision of these materials beyond 30 days after authorization to proceed, shall constitute a basis for the justifiable delay in the Consultant's performance of this agreement. B. Compensation Upon receipt of a properly prepared billing from Consultant submitted to the City periodically as indicated in Exhibit A, Paragraph 18, but in no event more frequently than monthly, on the day of the period indicated in Exhibit A, Paragraph 18, City shall compensate Consultant for all services rendered by Consult- ant according to the terms and conditions set forth in Exhibit A, Paragraph II, adjacent to the governing compensation relationship indicated by a "checkrnark" 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 Cicy'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 bi said party to represent them in the routine administration of this agreement. c2 -(.3 Stand3rd Foom Two Pa~tJ Aqr~~m~~: !Fourth ~~'li~ion) Contra.ct .F-.C" Nov~mb~r 14, 2000 ?"';.g~ .1 _?_/,." 4. Term. A. Initial Term This Agreement shall terminate when the Parties have complied with all executory provisions hereof. 5. Liquidated Damages The provisions of ~~~s section apply if a Liquidated Damages Rate is provided in Exnl=lt A, Paragraph 14. It is acknowledged ty both parties that time is of the essence in the completio~ of this Agreement. It is difficult to estimate the amount of ca~ages resulting from delay in per- formance. The parties ha7: used their judgment to arrive at a reasonable amount to com~e~sate for delay. Failure to complete ~he Defined Services within the allotted time period specified in ~his Agreement shall result in the following penalty: For each consecutive calendar day in excess of the time specified fcr "he completion of the respective work assignment or Deliverable, the consultant shall pay to the City, or have withheld from mc~~es due, the sum of Liquidated Damages Rate provided in Exhibit A, Paragraph 14 ("Liquidated Damages Rate") .. Time extensions for =elays beyond the consultant's control, other than delays caused ty the City, shall be requested in writing to the City's Co~~ract Administrator, or designee, prior to the expiration of the s?ecified time. Extensions of time, when granted, will be basei upon the effect of delays to the work and will not be granted ::r delays to minor portions of work unless it can be shown tha~ such delays did or will delay the progress of the work. 6. Financial Interests c: Consultant A. Consultant is Designated as an FPPC Filer. If Consultant is des~gnated on Exhibit A, Paragraph 15, as an "FPPC filer", Consulta~t is deemed to be a "Consultant" for the purposes of the Poli"~=al Reform Act conflict of interest and disclosure provisions, a~= shall report economic interests to the City Clerk on the re~uirei 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 Ci ty JI.ttorney. B. Decline to Participate. Regardless of whether Consultant is designated as an FPPC Filer, Consultant shall ~o~ make, Or participate in making Or in .;;)..-( 'I- Ccr.trac:.~~V Standard For.m Two Party Agr~~m~nt (:ou=:h ~~'l:sionl NC'l'=!:'J::s::- 14., 2000 -J _II ?agt=! 5 any way attempt to use Consultant's position to influence a governmental decision in which Consultant knows or has reason to know Consultant has a financial interest other than the compensation promised by this Agreement. Consultant shall have no interest in other projects or independent contracts which would conflict in any manner Or degree with the performance required by the City. In any case in which there may be potential conflict, Consultant shall nOcify the City in advance or as soon as reasonably possible. Should the City Or the Consultant determine that a co~flict of interest exists regarding legislative representation by the Consultant for any third party(s), the Consultant agrees to continue to represent the City without interruption and shall decline to represent any such third party. Consultant represents and warrants that its performance under this Agreement and this Section does not conflict with any existing or contemplated agreement with any other party and acknowledges that City is relying on this representation in entering into this Agreement. The City will not be responsible for any cost borne by the Consultant as a result of this Section and Consultant agrees to protect, indemnify, defend and hold City harmless against any costs of liabilities incurred by City in connection herewith. Consultant agrees that prior to entering into contracts for consulting services with any parties, associations, Or individuals other than the City, Consultant shall confer with the City to discuss the potential of conflict of interest created by the addition of such contracts. 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 ot the City. C. Search to Determine Economic Interests. Regardless of whether Consultant is designated as an F??C Filer, Consultant warrants and represents that Consultant has diligently conducted a search and inventory of Consultant's economic interests, as the term is used in the regulations promulgated by the Fair Political Practices 'Commission, and has determined that Consultant does not, to the best of Consultant's knowledge, have an economic interest which would conflict with Consultant's duties under this agreement. D. Promise Not to Acquire Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will not acquire, obtain, or assume an economic interest during the term of this Agreement which would constitute a conflict of interest as prohibited by the Fair Political Practices Act. c:2-rS- Conc.ract .P-..c'/ NO'/~mber 14, 2'}GO S~andard Form Two Pa~tf Agreement (Fourth F~'l:~ion) -, ~~ ~ ?age l5 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 ACe, 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 JI.ssociates") 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, 2aragraph 15. Consuleant further warrants and represents that no promise of future e~ployment, 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 tha~ may be made during the Term of this Agreement, or for 12 months thereafter. Consul~ant agrees that Consultant Associates shall not acquire any such Prohibited Interest within the Term of this Agreement, cr for 12 months after the expiration of this Agreement, :xcept with the written ~~rmissibn of City. Consul~ant may not conduct or solicit any business for any party to this Agreement, or for any third party which may be in conflict wi~h Consultant's responsibilities under this Agreement, except with the written permission of City. 7. Hold Harmless Consul~ant shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers and employees, =rom and against all claims for damages, liability, cost and expense (including without limitation attorneys' fees) arising out of the conduct of the Consultant, or any agent or employee, s~bcontractors, or others in connection with the execution 0= the work covered by this Agreement, except only for those claims arising from the sole negligence or sole willful misconduct of the City, its officers, or employees. Consultant's indemnification shall include any and all costs, expenses, attorneys' =ees and liability incurred by the City, its officers, agents, or employees in defending against such claims, whether 0.2-1'=> Contract.t..f)/ Nov~mb~r 14, 2GC~ Standard FC:::l T.....o Par:::! j:..gr~,,=,~.sn:: (F\)urt.h Pr:"r:..s:.on) ., ~:2 ?~,;e 7 the same proceed to judgment or not. Further, Consultant at its own expense shall, upon written req~est by the City, defend any such suit or action brought against the City, its officers, agents, or employees. Consultants' indemnification of City shall not be limited by any prior or subsequent declaration by the Consultant. 8. Termination of Agreement for Ca~se If, through any cause, Consulta~t shall fail to fulfill in a timely and proper manner Consultan~'s obligations under ~his Agreement, or if Consultant shall v~olate any of the c~~e~a~~s, agreements or stipulations of this ~greement, City shall have the right to terminate this Agreement ty giving written notice ~o Consultant of such termination and specifying that the termination is effective immediately. In that event, all finished or unfinished documents, data, stud~es, surveys, drawings, ~aps, reports and other materials prepared by Consultant shall, a~ the option of the City, become the pro~erty of the City, and Consultant shall be entitled to receive just and equita~le compensation for any work satisfac~~rily completed on such documents and other materials up to the effective date of Notice of Termination, not to exceed the a~ounts payable here~nder, and less any damages caused City by Consultant's breach. For purposes of this Agreemen~, in the event of Consul~ant's brech hereof, in addition to any a~d all other rights a~d remedies to which the City may be e~titled, City shall have ~he right to recover monetary damages w~ich shall include (a) Liquidated Damages in accordance with the terms of Section 5 bf this agreement and Section 14 of ~x~ibit A for each day that the City, as a result of Cit's termination of this Agreement for cause, City is not being provided t~e Defined Services ~e~e~~der, subject to City's good faither effcrts to contract witt an alternate consultant and (b) such additional monetary da~ages to which the City may be entitled. 9. Errors and Omissions In the event that the City AGuinistrator 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. Nott~ng herein is intended to limit City's rights under other provisions or this agreement. 10. Termination of Agreement for Convenience of City City may terminate this Agreement at any time and for any reason, by giving specific written notice to Consultant of such termination and specifying the effective date thereof, at least thirty (30) days before the effective date of such termination. .,,2-1 7 3tandar.j. Form Two partj i-.gr'-~~r:,"::-.': (i:.;o..:::.h ?~'I:..~iol1) Ccn':.ract..P-.OV Nr;"o:rr.ber 14, 2000 - " I - ?.::?~ ~1 In that event, all finished and unfinished documents and other materials described hereinabove shall, at the option of the City, become City's sole and exclusive property. If the Agreement is terminated by City as provided in this paragraph, Consultant shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials to the effective date of such termination. Consultant hereby expressly waives any and all claims for damages or compensation arising under this Agreement except as set forth herein. 11. Assignability The services of Consultant are personal to the City, and Consultant shall not assign any interest in this Agreement, and shall not transfer any interest in the same (whether by assignment or novation), without prior written consent of City. 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 ~he 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. Ccntract .;'.D'/ ~jo.l,,=rr.te::- 14, 2000 c2-1 g S:andard For~ Two P~rt'l Agre~~~~: (Fourth ~,,=,~~ion) ( .Y"_,.1r ?:='';'~ 0;. 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. good over Upon request by City, Consultant shall meet and confer in faith with City for the purpose of resolving any dispute the terms of this Agreement. 15. Attorney's Fees Should a dispute arising out or this Agreement result in litigation, it is agreed that the prevailing party shall be entitled to recover all reasonable costs incurred in the derense of the claim, including costs and attor~ey's fees. 16 . Statement or Costs In the event .that Consultant prepares a report or document, or participates in the preparation of a report or document in performing the Defined Services, Consultant shall include, or cause the inclusion of, in said report or document, a statement of the numbers and cost in dollar amoun~s or all contracts and subcontracts relating to the preparation or the report or document. 17. Miscellaneous A. Consultant not authorized to Represent City Unless specifically authorized in writing by City, Consult- ant 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 or 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 sen~ to any party shall be c::2-19 Contract.ADV 3tanda:-d Form 'r.....o Pa!'tj' Agr,=,,=m~r:t (Four:.r. ?<:'r.:..sion) t-IQ'I<:rr.!::,,=!' 1 ~, 2')00 ;;..,.. ~ , . - ?.::g~ 10 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 other written document referred to or contemplated herein, embody the entire Agreement and understanding between the parties relating to the subject matter hereof. Neither this Agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. E. Capacity of Parties Each signatory and par~y hereto hereby warrants and represents to the other par~y that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all reso~utions or other actions have been taken so as to enable it to enter into this Agreement. F. Governing Law/Venue This Agreement shall be governed by and construed in accordance with the laws of ~he State of California. Any ac"ion 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, shal~ be the City of Chula Vista. ~ -.;2..0 Contract. P..DV Nov~~~er 14, 2000 2:.andar::1 Fcc Two Part:; Agr"eeme::': (E'ou:::-:.h E<::"r.:.sion) :.....~ --,~ y 25;";-= 11 Signature Page to Agreement between City of Chula Vista and the Redevelopment Agency of the City of Chula Vista and Advocation, Inc. for Leqislative Representation IN WITNESS WHEREO" City and Consultant have executed this Agreement as of the Effective Date thereby indicating that they have read and understood Same, and indicate their full and complete consent to its ~erms: City cf Chula Vista by: sti=l~y Hor~on, Mayor Attest: Susan Bigelow, City Cle=~ Redevelopment Agency of ~~~ City of Chula Vista Approved as to form: j~~fo~ by: Shirley Horton, Chairman Advocation, Inc. By: C-2r~ ~ d.-. ~ [Signature] C~I\\<..Lt2<;" L ,OLE By: "~es \ \)~",'I- [Frint name and title] Exhibit List to Agreemen~ ) Exhibit A. ~-rX..1 Com:rac1:.AfN NC'l~mb~r 14, 2000 ~~a~da~d Fo==. Two Pa::y hg=~~~~~: (Fourth ?~'l~zion) ~ -. --, . f-;.:";~ l~ Exhibi t 1'-. to Agreement between City of Chula Vista & Redevelopment 1'-.gency of City of Chula Vista and Advocation, I~c. 1. Effective Date of Agreement:January 1, 2001 2. City-Related Entity: (X) City of ChulaVista, a municipal chartered corporation of the State of California (X) Redevelopment Agency of the City of Chula Vista, a political subdivision of t~e State of California ("City") 3. Place of Business for City: City of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910 4. Consultant: Advocation, Inc. 5. Business Form of Consultant: ( ) Sole Proprietorship ( ) Partnership (X) Corporation 6. Place of Business, Telephone and Fax Number of Consultant: 1121 L Street, Suite 610 Sacramento, California 95814 Voice Phone (916) 447-8229 Fax Phone (916) 447-3447 7. General Duties: to provide legislative represerltation in Sacramento for the City in order to augment the City's existing relationship with legislators and policy administrators, as well as to maintain a high level of effective advocacy with the Legislative and Executive branches of State government. D2 - -2- "2- 2 PTYS-Ac"/oca tion Nov'!mbe:- 14, 2000 E;.;hibi~ A to S:arldard =~=::l t.-;:<;<:r:l.ent: """'-if .- ?ago'! 1 8. Scope of Work and Schedule: A. Detailed Scope of Work: 1. Perform those duties customarily performed by legislative advocates and governmental. affairs representatives on behalf of the City and, in doing so, abide by the Cit's adopted Legislative Program and City Council Policy #30C-01 as currently in force or as they may be amended. 2. As directed, represent the City in meetings or hearings with State agencies, boards, commissions or other legislative bodies and the League of California Cities, as well as testify on behalf of the City suring same. 3. >>.s directed ans o;:;::endse guided by the City's adopted Legislative progra:n, research and provide information to the City on (a) State laws or proposed legislation, (b) legislative hearings, reports and testimony, (c) State regulatio,-s and/or policies wr.ich could affect Ci;:;y operations, (~) funding opportunities for proposed and existing City ::;roj ects, (e) technical memoranda or reports impacting C~ty operations. 4. Develop strategies cO implement successfully the City's adopted Legislative Program and, with City's approval, implement said stra:egies. 5. Provide sufficient support to lobby aggressively an average of at least 3-4 major priority issues a;:; any given time, along ;,;ith at least 6-7 lesser priorities. Support would include proactively identifying potential legislative vehicles relating to those topics and advocating the City's position with appropriate legislators or other officials to bring about favorable consideration of t::ese proposals. 6. Monitor and provide the City with copies of all bills (as introduced or amended) or proposals pertaining to issues of concern or interest to the City, particularly those affecting or relating to. the' City's Legislative Program. 7. Track said legislation and provide the City with advance notice, to the City's satisfaction, of hearings or critical actier.s relating to those bills or issues in which the City has expressed an interest. 8. Prepare and deliver letters, as directed by the City, to appropriate corr~ttees and members of the State Legislature, as well as to executive departments and/or State officials. c:2 -~ 2PTY3-Ad~ocatic~ Exhibit A to S~~~dard For.n ~1=~~~~nt HO'/r:mbe= 14, 20CG ?ag~ 2 ;;:} ~ EI 9. On those bills being tracked by the City, provide written, weekly status reports and written end-of-year reports, including amendments, committee assignments, hearing and voting information and other ot~er relevent data. 10. Prepare briefing materials, provide briefings/meeting space and arrange appointments for Councilmembers and City staff when those individuals travel ~o Sacramento in furtherance of the City's Legislative Program. 11. Provide information and/or resources, ~~ available, pertaining to State and regional agencies, (and, as reasonably available, pertaining to Federal agencies and legislation) as they affect the City's Legislative Program. 12. Draft appropriate bill language (text) and/or idantify appropriate legislative or aciministrati va vehicles (e. g. spot bills, budget/trailer bills, :::iscretionary action at an agency level, etc.) to carry out the City's legislative goals. 13. At least four times per year, provide a briefing at a regularly scheduled City Councilor ?edevelopment ]I.gency meeting on the status of efforts in Sacramento on Chula Vista's behalf and the general s~ate of State legislative and executive activities. B. Date for Commencement of Consultant Services: (X) Same as Effective Date of Agreement C. Dates or Time Limits for Delivery of Deliverables: Deliverables shall be as provided for in De~ailed Scope of Work. D. Date for completion of all Consultant services: December 31, 2002 (unless extended per Council action) . E. City renewal options: The term of this agreement shall be ez~ended for a maximum of four additional two-year terms. Each such two-year option shall be at the City's sole and unfettered discretion, subject to approval by the City Council and Agency Board. c2-2-'f 2PT,S-Advoca~icn Ncv~mb~r 11, 2000 Exhibit A to Sta~~==d Form hq:~~~ent ?~':'= ] 9. Insurance Requirements: (X) Statutory Worker's Compensation Insurance (X) Employer's Liabili~y Insurance coverage: $1,000,000. (X) Commercial Gener~l Liability Insurance: $1,000,000. (X) Deductibles and Self Insured Rete!'.tions must be approved separately by the City 10. Ma~erials Required to ce Supplied by City to Consultant: Current Legislative Program (as adopted/~mended each year by the City Council) Current Council Policy (#300-01 or as ame!'.ded) on legislative ma~ters Names and phone n~~ers of appropriate Ci~y staff City position on specified legislation City correspondance or other materials to be Delivered or advocated by Consultant 11. Compe!'.sation: "A.. (X) Single Fixed :ee "A.rrangeme!'.t. For performance of all of the Defined Services by Consultant as herein required, City ,,~,all pay a single fixed fee in the amounts and at the times or milestones or for the Deliverables set forth below: Single Fixed Fee Amount: 12 equal monthly payme~~s of: $72,000, payable as follows: $6,000 with materials or other expenses reimbursed C~ provided herinbelow. 12. Mat~rials Reiro?urseme~~ Arrangement For the cost of out of pocket expenses incurred by Consultant in the performance of services herein required, City shall pay Consultant up to $583/mont~ or $7,000 annually for the expenses set forth (X) (X) (X) (X) (X) (X) (X) below: Copies Travel Printing Postage Delivery Long Distance Telephone Charges Other Ac~ual Iden~ifiable Direct Costs: Bill Room copy service Computerized bill tracking service c:< - c2.. ~ 2PTY3-Ad7C~aticn E~hibit A to 3::~da=d Fb~. Ag=~~ment No~',=mbe:- 14, 21)01') f-ag~ 4. i:ii .,(..,). 13. Contract Administrators/key personnel: City:City Manager or designee, 276 =ourth Avenue, Chula Vista, CA 91910 (619) 691-5031 Consultant: Charles L. Cole, Preside~t, Acvocation, Inc. 1121 L Street, suite 610 Sacra~ento, CA (916) 447-8229 Consultant acknowledges and agrees that City conSloers the above-referenced individual to be the individual whose employment by Consultant is the p:!:"imary basis for City's contracting with Consultant hereunder. Accordingly, Consultant represents that it is Consultant's current intent that such identified persons shall remain employed with Consultant for the term of this Agreement and that such parties shall be actively involved in the performance of the Defined Services hereunder. Consultant agrees that it will no-=. transfer or rem072 such person from this project without the prior writen permission or direction of City, which will not be unreasonably withheld. ~~y such change wit~ou~ ~~e ~=~or w=itte~ c~nsent of the City Council shall be deemed null and void and constitute a material breach of this Agreement. 14. Liquidated Damages Rate: ( ) $500 per day. (XX) Other: In lieu of an amount per day, liquidated damages shall consist of the lump SU:!l of $ E, 000 or the current monthly rate, whichever is g=ea~er. 15. . Statement of Economic Interes=s, Categories, per Conflict of Interest Code: Consultant Reporting (X) Net Applicable. Not an FPPC Filer. FPPC Filer Category No. income. 1. Investments and sources of Category No.2. Interes=s in real property. Category No. property and regulatory, department. 3. Inves=ments, interest sources of income subject permit or licensing authority in real to the of the ;2 - :2.../0 2PTY9-Ad'locati~n Nov~mber 14, 20GG ~~~i=it A to Sta~~~=d Fo~ ~~=~~ment .... ~ _1"" Pag~ 5 Category No. and sources development, sale of real 4. Investments in business entities of income which engage in land construction or the acquisition or property. Category No.5. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the City of Chula Vista (?-edevelopment lI.gency) to provide services, supplies, materials, machinery or equipment. Category No.6. Investments in business entities and sources of income of the type which, wi thin the past two years, have contracted with the designated employee's department to provide services, supplies, materials, machinery or equipment. Category No.7. Business positions. (X) List "Consultant !'.ssociates" interests in real property within 2 radial miles of Project Property, if a~y: 16. ) Consultant is Real Estate Broker and/or Salesman 17. Permitted Subconsultants: As City is relying on the personal services of the staff of Advocation, Inc. subconsultants shall not be permitted without prior City approval, which approval shall be at City's sole discretion. 18. Bill Processing: A. Consul tant' s Billing to be submitted for the following period of time: (XX) Monthly ( ) Quarterly ( ) Other: B. Day of the Period for submission of Consultant's Billing: ( ) First of the Month (XX) 15th Day of each Month ( ) End of the Month 2PTY9-Ad"rocation Nov~=~~r 11, 2000 ~-;;l..7 Ey.hibi~ A to S~a~~ard Fo~ h~~~~ment P.;gl! Ii t,~ --- C. City's Account Number(s) :05300-6401, 31710-6501, 60200-6501, 61110-6501, 61120-6501, 62100-6501, 63100-6501 19. Security for Performance Performance Bond, $ Letter of Credit, $ Other Security: Type: Amount: $ Retention. If this space is checked, e:hen notwithstanding other provisions to the Cc~e:rary requiring the payment of compensation to the Cons~:e:ant sooner, the City shall be entitled to retain, a~ e:jeir option, either the following "RetentionPerce:lta;-=" or "Retention Amount" until the City determines thae: the Retention Release Event, listed below, has occ~rre=: Ret~ntion Pe~c2~t=ge: % Retention Amount: $ Retention Release Event: ( ) Completion of All Consultant Services ( ) Other: ;;2-~g- 2 ?T"!9-.ll.d'loca t ion Hov,=!!'.oer 14, 2G0G Exhibit. l-. t.; :.Jta::.c'::!.:-':!. ::=. ;:"-;==:.:::::-.ent ...2 ~...J! ~ ;~:;.:::; 7. ATTACHMENT B Exhibit A To First Amended and Restated Agreement between City of Chula Vista & Redevelopment Agency of City of Chula Vista And Advocation, Inc. 1. Effective Date of Agreement: January 1,2003 2. City-Related Entity: (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 ("City") 3. Place of Business for City: City ofChula Vista 276 Fourth Avenue Chula Vista, CA 91910 4. Consultant: Advocation, Inc. 5. Business Form of Consultant: () Sole Proprietorship () Partnership (X) Corporation 6. Place of Business, Telephone and Fax Number of Consultant: 1121 L Street, Suite 610 Sacramento, California 95814 Voice Phone: (916) 447-8229 Fax Phone: (916) 447-3447 7. General Duties: To provide legislative representation in Sacramento for the City in order to augment the City's existing relationship with legislators and policy administrators, as well as to maintain a high level of effective advocacy with the Legislative and Executive branches of State government. c2-:L9 K:\Leg\Leg 2004\First Amended and Restated Advocation Exhibit A.doc 1 8. Scope of Work and Schedule: A. Detailed Scope of Work: I. Perform those duties customarily performed by legislative advocates and governmental affairs representatives on behalf of the City and, in doing so, abide by the City's adopted Legislative Program and City Council Policy #300-01 as currently in force or as they may be amended. 2. As directed, represent the City in meetings or hearings with State agencies, boards, commissions or other legislative bodies and the League of California Cities, as well as testify on behalf of the City sunng same. 3. As directed and otherwise guided by the City's adopted Legislative Program, research and provide information to the City on (a) State laws or proposed legislation, (b) legislative hearings, reports and testimony, (c) State regulations and/or policies which could affect City operations, (d) funding opportunities for proposed and existing City projects, (e) technical memoranda or reports impacting City operations. 4. Develop strategies to implement successfully the City's adopted Legislative Program and, with City's approval, implement said strategies. 5. Provide sufficient support to lobby aggressively an average of at least 3-4 major priority issues at any given time, along with at least 6-7 lesser priorities. Support would include proactively identifying potential legislative vehicles relating to those topics and advocating the City's position with appropriate legislators or other officials to bring about favorable consideration of these proposals. 6. Monitor and provide the City with copies of all bills (as introduced or amended) or proposals pertaining to issues of concern or interest to the City, particularly those affecting or relating to the City's Legislative Program. 7. Track said legislation and provide the City with advance notice, to the City's satisfaction, of hearings or critical actions relating to those bills or issues in which the City has expressed an interest. 8. Prepare and deliver letters, as directed by the City, to appropriate committees and members of the State Legislature, as well as to executive departments and/or State officials. ~-3-0 K:\Leg\Leg 2004\First Amended and Restated Advocation Exhibit A.doc 2 9. On those bills being tracked by the City, provide written, weekly status reports and written end-of-year reports, including amendments, committee assignments, hearing and voting information and other relevant data. 10. Prepare briefing materials, provide briefings/meeting space and arrange appointments for Councilmembers and City staff when those individuals travel to Sacramento in furtherance of the City's Legislative Program. II. Provide information and/or resources, as available, pertaining to State and regional agencies, (and, as reasonably available, pertaining to Federal agencies and legislation) as they affect the City's Legislative Program. 12. Draft appropriate bill language {text) and/or identify appropriate legislative or administrative vehicles (e.g. spot bills, budget/trailer bills, discretionary action at an agency level, etc.) to carry out the City's legislative goals. 13. At least four times per year, provide a briefing at a regularly scheduled City Councilor Redevelopment Agency meeting on the status of efforts in Sacramento on Chula Vista's behalf and the general state of State legislative and executive activities. B. Date for Commencement of Consultant Services: (X) Same as Effective Date of Agreement C. Dates or Time Limits for Delivery of De1iverables: Deliverables shall be as provided for in Detailed Scope of Work. D. Date for completion of all Consultant services: December 31, 2004 (unless extended per Council action). E. City renewal options: The term of this agreement shall be extended for a maximum of three additional two-year terms. Each such two-year option shall be at the City's sole and unfettered discretion, subject to approval by the City Council and Agency Board. ~ -3 f K:\Leg\Leg 2004\First Amended and Restated Advocation Exhibit Adoc 3 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) Deductibles and Self Insured Retentions must be approved separately by the City 10. Materials Required to be Supplied by City to Consultant: Current Legislative Program (as adopted/amended each year by the City Council) Current Council Policy (#300-01 or as amended) on legislative matters Names and phone numbers of appropriate City staff City position on specified legislation City correspondence or other materials to be delivered or advocated by Consultant 11. Compensation: A. (X) Single Fixed Fee Arrangement. For performance of all of the Defined Services by Consultant as herein required, City shall pay a single fixed fee in the amounts and at the times or milestones or for the Deliverables set forth below: Single Fixed Fee Amount: 12 equal monthly payments of: $72,000, payable as follows: $6,000 with materials or other expenses reimbursed as provided herein below. 12. Materials Reimbursement Arrangement For the cost of out of pocket expenses incurred by Consultant in the performance of services herein required, City shall pay Consultant up to $583/month or $7,000 annually for the expenses set forth below: (X) Copies (X) Travel (X) Printing (X) Postage (X) Delivery (X) Long Distance Telephone Charges (X) Other Actual Identifiable Direct Costs: Bill Room copy service Computerized bill tracking service co2 -32- K:\Leg\Leg 2004\First Amended and Restated Advocation Exhibit A.doc 4 13. Contract Administrators/key personnel: City: City Manager or designee, 276 Fourth Avenue, Chula Vista, CA 91910 (619) 691-5031 Consultant: Charles L. Cole, President, Advocation, Inc. 1121 L Street, suite 610 Sacramento, CA (916) 447-8229 Consultant acknowledges and agrees that City considers the above-referenced individual to be the individual whose employment by Consultant is the primary basis for City's contracting with Consultant hereunder. Accordingly, Consultant represents that it is Consultant's current intent that such identified persons shall remain employed with Consultant for the term of this Agreement and that such parties shall be actively involved in the performance ofthe Defined Services hereunder. Consultant agrees that it will not transfer or remove such person from this project without the prior written permission or direction of City, which will not be unreasonably withheld. Any such change without the prior written consent of the City Council shall be deemed null and void and constitute a material breach of this Agreement. 14. Liquidated Damages Rate: () $500 per day. (X) Other: In lieu of an amount per day, liquidated damages shall consist of the lump sum of $6,000 or the current monthly rate, whichever is greater. IS. Statement of Economic Interests, Consultant Reporting Categories, per Conflict ofInterest Code: (X) Not Applicable. Not an FPPC Filer. () FPPC Filer () Category No. I. Investments and sources of income. () Category No.2. Interests in real property. () Category No.3. Investments, interest in real property and sources of income subject to the regulatory, permit or licensing authority of the department. ~-33 K:\Leg\Leg 2004\First Amended and Restated Advocation Exhibit A.doc 5 () Category No.4. Investments in business entities and sources of income which engage in land development, construction or the acquisition or sale ofreal property. () Category No.5. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the City ofChula Vista (Redevelopment Agency) to provide services, supplies, materials, machinery or equipment. () Category No.6. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the designated employee's department to provide services, supplies, materials, machinery or equipment. () Category No.7. Business positions. (X) List "Consultant Associates" interests in real property within 2 radial miles of Project Property, if any: 16. ( ) Consultant is Real Estate Broker and/or Salesman 17. Permitted Subconsultants: As City is relying on the personal services of the staff of Advocation, Inc. subconsultants shall not be permitted without prior City approval, which approval shall be at City's sole discretion. 18. Bill Processing: A. Consultant's Billing to be submitted for the following period oftime: (X) Monthly () Quarter! y () Other: B. Day of the Period for submission of Consultant's Billing: () First of the Month (X) 15th Day of each Month () End ofthe Month <:2-3f K:\Leg\Leg 2004\First Amended and Restated Advocation Exhibit A.doc 6 C. City's Account Number(s): 05300-6401,31710-6501,60200-6501, 61110-6501,61120-6501,62100-6501,63100-6501 19. Security for Performance () Performance Bond, $ () Letter of Credit, $ () Other Security: Type: Amount: $ () Retention. If this space is checked, then notwithstanding other provisions to the contrary requiring the payment of compensation to the Consultant sooner, the City shall be entitled to retain, at their option, either the following "Retention Percentage" or "Retention Amount" until the City determines that the Retention Release Event, listed below, has occurred: () Retention Percentage: % () Retention Amount: $ Retention Release Event: () Completion of All Consultant Services () Other: ...- c::::J -.3 ~ K:ILeglLeg 2004\First Amended and Restated Advocation Exhibit A.doc 7 JOINT REDEVELOPMENT AGENCY/CITY COUNCIL AGENDA STATEMENT ITEM NO.: ..3 MEETING DATE: 11/23/04 ITEM TITLE: JOINT RESOLUTION (1) AUTHORIZING THE FORMATION OF A 501 C3 PUBLIC BENEFIT CORPORATION FOR PURPOSES OF CONDUCTING REDEVELOPMENT AND PLANNING ACTIVITIES WITHIN THE URBAN CORE PLANNING AND REDEVELOPMENT AREAS OF CHULA VISTA; (2) DIRECTING STAFF TO PREPARE NECESSARY LEGAL DOCUMENTS NEEDED FOR THE 501 C3 FORMATION (3) APPROPRIATING FY 04-05 OPERATING BUDGET AND COMPENSATION SCHEDULE FOR THE 501C3 BOARD OF DIRECTORS; AND (4) DIRECTING CITY STAFF AND THE CITY ATTORNEY TO REPORT BACK TO THE CITY COUNCIL BY JANUARY 2005 WITH DRAFT LEGAL AND OPERATING DOCUMENTS SUBMITTED BY: REVIEWED BY: EXECUTIVE DIRECTOR 4/5THS VOTE: YES 0 NO D BACKGROUND On February 3, 2004, the City Council directed staff and consultants to prepore an analysis and discussion paper on the creatian of a 501 c3 Redevelopment Corparation. As part af the preparation for this report, two facilitated workshops were held on the formation of a 501 c3 Corporation. The workshop participants included three representatives from the Urban Development Committee (UDC), Mayor Padilla, Councilman McCann, the City Manager, City Attorney, City Finance Director and the City Community Development Director. A detailed report, attached, was distributed to the Council and the public on July 20'h of this year. This staff report builds upon the conclusions and recommendations from these workshops, the July report, and recent legal analysis prepared by Rutan and Tucker LLP, Attorneys at Law on behalf of the City Attorney's office. RECOMMENDATION 1. Authorize the formation of 0 501 c3 Public Benefit Corporation for the purposes of conducting redevelopment and planning activities within the Urban Core Planning Areas and Redevelopment Project Areas af the City of Chula Vista; .3 - I PAGE 2, ITEM NO.: MEETING DATE: -3 11/23/04 2. Direct the City Attorney and the Community Development Director to prepare all necessary legal and operational documents including but not limited to the Articles of Incorporation, Bylaws, operational budget, and amendments to City Ordinances as described in Exhibit A. 3. Appropriate $100,000 for the preporation of formation documents and for the initial period of operation in FY 04-05. 4. Establish compensation schedule for 501 c3 board members at $750 per month and $1,500 per month for the Board Chair. BOARDS/COMMISSIONS RECOMMENDATION Not applicable. DISCUSSION The City of Chula Vista's Redevelopment Agency was formed in 1972 and became fully functional in 1975. The goals of the Redevelopment Agency are to reduce blight and to encourage new development, reconstruction, and rehabilitation of residential, commercial, industrial, and retail uses. Much of a Redevelopment Agency's success depends on its ability to time projects to correspond with market opportunities, respond to the needs of investors, and maintain sufficient financial capacity to leverage private investment. The City of Chula Vista has a number of resources that makes the proposal of the 501 c3 Corporation well timed. These include: . Chula Vista's physical location, within 7 miles of downtown San Diego, which is experiencing a magnificent urban revival, provides the City great potential to attract development capital. . A strong real estate market has created opportunities for rejuvenation in the City's urbanized area, particularly given the high demand for housing units and retail space. . Chula Vista's Bayfront is one of a few remoining prime undeveloped bayfront properties on the west coast, providing significant future development opportunities for the City. . Chula Vista's close proximity to Mexico provides an economic advantage whose potential remains largely untapped. . The political-will to support and encourage redevelopment opportunities throughout the City, particularly in the older more urbanized areas. The previously released report (July 20th, 2004) focused upon evaluating four 501 c3 Corporation structural alternatives against important tangible factors within the control of the City Council and its management staff: operational efficiency, developing and maintaining a strategic advantage, alignment of the 501 c3 Corporation goals and objectives with the City's goals and objectives and financial impact/gain to the City. This approach ensures results in the areas most critical to the success af the City and allows for the formation of a 501 c3 Corporation to occur as a model speaking to the unique needs and situation of Chula Vista. S-A PAGE 3, ITEM NO.: MEETING DATE: .3 11/23/04 Authorities Granted To the 501 c3 as a Support Entitv of the Citv of Chula Vista The 501 c3 is being created to assume certain functions of the Agency - specifically to carry out all non-delegable redevelopment activities. This means that the 501 c3 would replace the Agency as the approving authority for all redevelopment matters with the exception of use of eminent domain, issuances of bonds, approval of formation or expansion of project areas, and approval of disposition development agreements and other similar contractual matters reserved only for governmental legislative bodies. Staff is recommending that the 501 c3 be given planning, zoning, and project review responsibilities in the Redevelopment Project areas and Urban Core Specific Planning area. These additional authorities would allow for existing city processes (e.g. design review, environmental review, and planning commission functions) to be consolidated and streamlined into the responsibilities of the 501 c3. This consolidation could potentially expedite praject processing time by three to four months. An organization that operates efficiently and effectively is better positioned to be successful in meeting its goals ond objectives. In redevelopment, attaining a high level of organizational readiness means that the Redevelopment Agency has highly trained staff and is especially sensitive to the needs of investors that seek out higher risk opportunities in the blighted urbanized areas of cities. Redevelopment agencies that are successful almost always have clear policies and streamlined processes. Specifically, it is recommended that the following activities currently provided by separate commissions be the sole responsibility of the 501 c3: . All Planning Commission functions ond responsibilities . All Design Review Committee responsibilities . All Resource Conservation Commission responsibilities Finally, it should be noted that the 501 c3 is subject to the open meeting provisions of the Ralph M. Brawn Act and all legal requirements and restrictions that opply to the Planning Department and the Planning Commission. Staffinq and T erritorv The workshop participants and staff examined two aspects of the core functioning of the 501 c3 - the territory over which it would assume responsibility and the staffing of the 501 c3. The workshop participants reached general agreement that from an organizational readiness perspective all redevelopment territories should be under the authority of the 501 c3 (see page 31 of the Report on the Formation of the Chula Vista 501 c3 Corporation). This allows for one set of operational procedures to be applied to all redevelopment project areas and allows for development of consistent public outreach tools and mechanisms. Furthermore, the 3-3 PAGE 4, ITEM NO.: MEETING DATE: .3 11/23/04 recommendations from the workshop suggest that utilizing City staff provided continuity with the City, would eliminate legal and financial misalignments between the 501 c3 and the City, and would allow the 501c3 to continue to build upon the community development strategic efforts now underway. It is recommended that the by-laws of the 501 c3 establish the following: . The Chief Executive Officer (CEO) of the Corporation shall be the Director of the City's Community Development Department; . The General Counsel to the Corporation shall be the City Attorney; . The Chief Financial Officer (CFO) of the Corporotion shall be the City's Finance Director; . The Corporation's day to day staffing will be the Community Development Department and other relevant city staff as determined by the City Manager. Staff is recommending that the territory over which the 501 c3 has authority include all land within the City's redevelopment project areas and "Urban Core Specific Planning Area" (see attached maps). This provides needed continuity with planning efforts within redevelopment oreas and the adjacent territories. For example, key public amenities and improvements will likely be located in areas of the urban core that are not within the redevelopment project areas. These key public amenities such os infrastructure improvements, public parks, and housing efforts are essential to the over all successful revitalization of the "west." Streamlined project processing, proposed as part of the 501 c3 authorities (discussed below), must be extended to the urban core to assure consistent and timely processing with developments occurring within the redevelopment areas. Board of Directors The workshop participants examined multiple aspects of board composition and found that the board makeup should be related to the specific charge and function of the 501 c3 - redevelopment. The workshop participants, to varying degrees, focused on the need for board members who bring expertise that directly relate to redevelopment, real estate, community revitalization, urban design and architecture, and business (see page 28 of the Report for a complete list). The workshop members also believed that selecting board members from the San Diego region would provide greater access to talent and experience in these disciplines. This thought was directly linked to the expectotion that the 501 c3 board members would playa significant role in developing negotiation strategies and in attracting large well-capitalized developers and investors to Chula Vista. The by-laws will provide a set of clear qualifications for meeting the specific board seat qualifications. Staff recommends that the areas of "expertise" by the workshop participants be synthesized into four seats on the Board - allowing for some flexibility: . Architect . Real estate developer or business leader 3-<-1 PAGE 5, ITEM NO.: MEETING DATE: J 11/23/04 . Civil engineer/ Urban designer/ environmental planner or scientist . A Chula Vista resident who meets any of the above criteria The workshop porticipants also discussed the inclusion of the Mayor and Council members on the board as positive. Inclusion of Council members ond the Mayor provides continuity with City vision, goals, and policies that are outside the day-to-day activities of redevelopment, but which are interrelated to the overall function and operation of the City. In addition, inclusion of the Mayor and Council members on the Board is appropriate and necessary to provide prudent and fiduciary oversight of the prioritization and expenditure of public funds. A legal analysis provided by Rutan & Tucker, LLP, clarified legal parameters of the 501 c3 in relation to redevelopment ond planning activities. These parameters establish that the City may delegate "nonessential functions" to a 501 c3 as a "supporting organization" of the City; however, Internal Revenue Service guidelines require that the City exercise substantial control over the supporting entity, ond "this is usually accomplished through City representatives sitting on the board of directors. If less than the entire City Council serves on the support entity board of directors, the support entity's bylaws should provide the City representatives a veto power over major financial business decisions, and vest in the City the power to appoint successor directors to the Support Entity's governing board." Based on the obove it is recommended that all five members of the Council be seated on the 501 c3 board of directors. This would establish a nine-member board with a balanced complement of elected representatives and citizens who bring important expertise and talents to the redevelopment agency and the City. Because this new 501 c3 board will be expected to actively participate and lead the redevelopment and community enhancements of western Chula Vista, the time commitments are expected to be substantial. Compensation ond reimbursement for expenses are important for the recruitment and retention of quality board members. Staff is recommending a moderate monthly stipend of $750 for the members and $1,500 for the Chair of the Board. This amount is certainly greater than "all volunteer" board members for charitable organizations and it is substantially less than board members who serve on governmental organizations that require significant amounts of time committed to organizational functioning (e.g. water and sanitation boards). Because these amounts are to be set by ordinance, they can be reviewed periodically to determine if adjustments should be made. FISCAL IMPACT The on-going cost of operations of the 501 c3 shall become an obligation of the Agency, however, there is a one time FY04-05 loan fram the City's General Fund of $100,000 to be repaid by the Agency over time. On-going costs of operation for the 501 c3 to the agency should be off-set by revenue generated by future projects in the redevelopment areas. AnACHMENTS Attachment A - July 20, 2004 Staff Report Authorizing the Formation of a 501 c3 Corporation Attachment B - Report on the Formation of the Chula Vista 501 c3 Corporation (distributed in July) J-S- , ~ ::l~~ " ~ ,.( E ~ ~> g > . H ~Il~~ I ~ 0- ~ ~ u"'< ~~ ~ ~~ > z ~~ .+, < z::i,. < 0 w. ~ o~ ~ 0 . ~l 5~'~ <"'Q CO .0 . h 0 o. 0 Oz , ~ c ",-:> " .w .€ , uh =:~"'" . .~ w .~ c U ,. ""'~ 0 w 0 :( ", ~ ........ ~. o o ^ I . r 8'_ Ii >' " OJ 1 " -I 1 . 0 \ -I ,I $ 51 ,I """",,,,,,,,,. . I 51 \ , . \1. . -1 " " J___ j I 5 I , ;,-- _/' 111110 '" m 0 m < m .... )>)> -l -l ~ 0 ICIlI 0 "'0 0 0 0 -l )> -a mO ::e ::e c: )> -< ~ )>m Z Z -l -< .... ~O ::J: '" m 0 0 ::e < 0 Z '" )> -l m m m Z m Z Z ~ .... -l -a 0 .... '" -l -l -l m m '" '" -< 0 < m m c... m '" m .... - 0 0 0 )> -l -a 0 )> ~ '" m m Z )> -l ~ 3-7 --- -.---...--------,---- ATTACHME T A JOINT REDEVELOPMENT AGENCY/CITY COUNCIL AGENDA STATEMENT ITEM NO.: MEETING DATE: S' 1 07 /20/04 ITEM TITLE: JOINT RESOLUTION (1) AUTHORIZING THE FORMATION OF A 501 C3 CORPORATION FOR PURPOSES OF CONDUCTING CHARITABLE BUSINESS IN THE FORM OF REDEVELOPMENT AND PLANNING ACTIVITIES WITHIN THE REDEVELOPMENT AREAS OF CHULA VISTA; (2) SELECTING A NAME FOR THE 501C3 CORPORATION; (3) DIRECTING THE REDEVELOPMENT AGENCY EXECUTIVE DIRECTOR TO ESTABLISH A TECHNICAL COMMITTEE; AND (4) DIRECTING THE TECHNICAL COMMITTEE TO REPORT BACK TO THE CITY COUNCIL BY OCTOBER 2004 WITH DRAFT ARTICLES OF INCORPORATION, BY LAWS AND A PROPOSED OPERATING AGREEMENT SUBMITTED BY: COMMUNITY DEVELOPMENT DIRECTOR REVIEWED BY: EXECUTIVE DIRECTOR 4/5THS YOTE: YES 0 NO ~ BACKGROUND On February 3, 2004, the City Council directed staff and consultants to prepare an analysis and discussion paper on the creation of a 501 c3 Redevelopment Corporation. As part of the preparation for this report, two facilitated workshops were held on the formation of a 50lc3 Corporation. The workshop participants included three representatives from the Urban Development Committee (UDC), Mayor Padilla, Councilman McCann, the City Manager, City Attorney, City Finance Director and the City Community Development Director. The attached report builds upon the conclusions and recommendations from these workshops and the recent analysis prepared by Keyser Marston Associates (KMAl in their report presented to City Council on October 20,2003. RECOMMENDATION 1. Authorize the formation of a 501 c3 Corporation for the purposes of conducting charitable business in the form of redevelopment and planning activities within the redevelopment areas of Chula Vista; 2. Select a name for the 501 c3 Corporation; 3. Direct the City's Redevelopment Agency Executive Director to establish a Technical Committee consisting of the: 5--- ~<-- ( 3-8 PAGE 2, ITEM NO.: MEETING DATE: ""~ - 07/13/04 a. Mayor b. City Council member(s) c. City Manager d. City Attorney e. Community Development Director f. City Finance Director g. Chair of the Urban Development Corporation 4. Direct the Technical Committee to report back to the City Council by October 2004 with draft Articles of Incorporation, by-laws, and a proposed Operating Agreement subject to the following guidelines: a. The Board of Directors shall include regional representation with recommendations for selected professional categories as discussed by the workshop participants. b. The 501 c3 Corporation is to be staffed by City employees and include all redevelopment territory under its authority. c. The 501 c3 Corporation Chief Executive Officer initially shall be the Community Development Director. BOARDS/COMMISSIONS RECOMMENDATION Not applicable. DISCUSSION The City of Chula Vista's Redevelopment Agency was formed in 1972 and became fully functional in 1975. The goals of the Redevelopment Agency are to reduce blight and to encourage new development, reconstruction, and rehabilitation of residential, commercial, industrial, and retail uses. Much of a Redevelopment Agency's success depends on its ability to time projects to correspond with market opportunities, respond to the needs of investors, and maintain sufficient financial capacity to leverage private investment. The City of Chula Vista has a number of resources that makes the proposal of the 501 c3 Corporation well timed. These include: . Chula Vista's physical location, within 7 miles of downtown San Diego, which is experiencing a magnificent urban revival, provides the City great potential to attract development capital. . A strong real estate market has created opportunities for rejuvenation in the City's urbanized area, particularly given the high demand for housing units and retail space. . Chula Vista's Bayfront is one of a few remaining prime undeveloped bayfront properties on the west coast, providing significant future development opportunities for the City. ~ '^ ...3 - 9 PAGE 3, ITEM NO.: MEETING DATE: -- o ~ 07/13/04 . Chula Vista's close proximity to Mexico provides an economic advantage whose potential remains largely untopped. . The political-will to support ond encourage redevelopment opportunities throughout the City, particularly in the older more urbanized oreas. The ottached report is focused upon evaluating four 501 c3 Corporation structural alternatives against important tangible factors within the control of the City Council and its management staff: operational efficiency, developing and maintaining a strategic advantage, alignment of the 501 c3 Corporation goals and objectives with the City's goals and objectives and financial impact/gain to the City. This approach ensures results in the areas most critical to the success of the City and allows for the formation of a 501 c3 Corporation to occur as a model speaking to the unique needs and situation of Chula Vista. FISCAL IMPACT There is no fiscal impact at this time. AnACHMENTS Attachment A - Report on the Formation of the Chula Vista 501 c3 Corporation J:\COMMDEV\STAFF.REPl07 -20-04\501 c3 Corporot;on.doc -r;f' ;3 3-ID AGENCY RESOLUTION NO. AND COUNCIL RESOLUTION NO. JOINT RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA (1) AUTHORIZING THE FORMATION OF A 501C3 PUBLIC BENEFIT CORPORATION FOR PURPOSES OF CONDUCTING REDEVELOPMENT AND PLANNING ACTIVITIES; (2) DIRECTING STAFF TO PREPARE NECESSARY LEGAL DOCUMENTS NEEDED FOR THE 501C3 FORMATION (3) APPROPRIATING FY 04-05 OPERATING BUDGET AND COMPENSATION SCHEDULE FOR THE 501C3 BOARD OF DIRECTORS; AND (4) DIRECTING CITY STAFF AND THE CITY ATTORNEY TO REPORT BACK TO THE CiTY COUNCIL BY APRIL 2005 WITH DRAFT LEGAL AND OPERATING DOCUMENTS WHEREAS, on February 3, 2004, the City Council and Redevelopment Agency directed sta and consultants to prepare an analysis and discussion paper on the creation of a 501 c3 Corporation; and WHEREAS, two facilitated workshops were held on the formation of a 501c3 Corporation; and WHEREAS, a report evaluating four 501c3 Corporation structural altematives was prepared; and WHEREAS, on November 23, 2004, a staff report was presented to Council which built upo the conclusions and recommendations from the workshops. NOW, THEREFORE, BE IT RESOLVED that the City Council and the Redevelopment Agency of the ity of Chula Vista do hereby: 1. Authorize the formation of a 501 c3 Public Benefit Corporation for purposes of cond cting redevelopment and planning activities; 2. Direct staff to prepare necessary legal documents needed for the 501 c3 formation, including b t not limited to Articles of Incorporation, Bylaws, and Amendments to City ordinances that contain but are not limi d to the terms shown on Exhibit A; 3. Appropriate $100,000 for the preparation of formation documents and for the initial peri d of operation in FY 04-05; 4. Establish a compensation schedule for 501c3 board members at $750 per month and $1,50 per month for the Board Chair; BE IT FURTHER RESOLVED that the name selected for the 501c3 is The Chula Vista Redevelo ent Corporation. Presented by Approved as to form by , l'-~ Ann Moore City Attorney and Agency Counsel C:\Documents and SettingslericclMy Documentsl501c3 RESO revised. doc 3-1 ( Exhibit A Requirements of Key Documents for the "Chula Vista Redevelopment Corporation" A Public Benefit Corporation 1. The City Attorney is directed oversee the preparation all necessary legal documents including but not limited to Articles of Incorporation, formation of a 501 c3 "Corporation" for the following public purposes: i. To carry out all City planning and redevelopment activities within all designated territories established by resolution or ordinance of the City Council: 1. All Planning Commission functions and responsibilities 2. All Design Review Commission responsibilities 3. All Environmental Review Commission responsibilities 4. All delegable Redevelopment Agency responsibilities and authorities; 2. City staff is directed to prepare and submit Articles of Incorporation to Federal and State agencies to include the following: a. The name of the Non-profit Corporation shall be "The Chula Vista Redevelopment Corporation." b. The statement" This Corporation is a non-profit public benefit corporation and is not organized for the private gain of any person. It is organized under the Nonprofit Benefit Corporation Law for public purposes." c. The Chula Vista Redevelopment Corporation is locoted at 245 Fourth Avenue, Chula Vista, CA 91910; d. The Initial Directors shall be the City Council of the City of Chula Vista; 3. City Staff is directed to prepare a city ordinance designating to the "Corporation" all of the powers and authorities to carry out City redevelopment activities and subdivision, planning and zoning activities within the prescribed territories. 4. City staff is directed to prepare by-laws for the day to day operation of the "corporation" to include the following: a. Board of Directors I. The permanent Board of Directors shall consist of nine (9) members with the following requirements for appointment by the City Council to the Corporation Board: 1. Mayor of the City of Chula Vista 2. Vice mayor of the City of Chula Vista 3. Three Council members of the City of Chula Vista 4. One member from the public who meets criteria for "architect " 5. One member from the public who meets criteria for" real estate development or business" 6. One member from the public who meets criteria for "land planner or engineering expert" 7. One member who is a resident the City of Chula Vista who meets any of the above criteria. ii. The Mayor of the City of Chula Vista shall serve as the Chairman of the Board of Directors of the Corporation; .3-(2- -------'..- III. The terms of office for appointed members from the Public shall be four years with staggered terms. IV. Boord members shall be entitled to compensation for expenses incurred and monthly stipends. v. Authorify to remove of Board Members shall rest solely with the Cify Council b. Staffing I. The By-laws shall establish the following: 1. The Chief Executive Officer (CEO) of the Corporation shall be the Director of the Cify's Community Development Department; 2. The General Counsel to the Corporation shall be the Cify Attorney; 3. The Chief Financial Officier (CFO) of the Corporation shall be the Cify's Finance Director; 4. The Corporation's day to day staffing will be the Communify Development Department and other relevant cify staff as determined by the Corporation's CEO. c. Budgeting and Financing i. The Corporation shall prepare a budget request in the same manner and time requirements as Cify Departments for annual review and approval by the Redevelopment Agency. II. The Cify shall provide initial funding for the establishment of the Corporation based upon a Start-up date of March 1, 2005. 1. The Cify shall oppropriate $100,000 for start-up legal, financial costs and operational costs for the first three months of operations. 2. The CEO shall prepare a proposed annual budget for FY2005- 06 d. Adherence to all Open Meeting Requirements and Political Conflict of Interest Laws I. The Corporation shall comply with all requirements of the "Brown Act" II. The Corporation shall comply with the provisions of the California Political Reform Act .3 __(6 AGENCY RESOLUTION NO. AND COUNCIL RESOLUTION NO. JOINT RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA DIRECTING STAFF TO RETURN BY APRIL WITH RECOMMENDATIONS ON THE TERRITORY BOUNDARIES OF THE ALTERNATIVE AGENCY STRUCTURE IF APPROVED WHEREAS, on February 3, 2004, the City Council and Redevelopment Agency directed staff and consultants to prepare an analysis and discussion paper on the creation of a 501 c3 Corporation; and WHEREAS, two facilitated workshops were held on the formation of a 501 c3 Corporation; and WHEREAS, the discussions to date have related to the corporate structure for the proposed altern tive agency structure; and WHEREAS, staff requires additional time to analyze potential territorial boundaries of any new ag ncy structure. NOW, THEREFORE, BE IT RESOLVED that the City Council and the Redevelopment Agency of the C of Chula Vista do hereby: 1. Direct staff to return by April with an analysis and recommendations on the territorial boundari s of the alternative agency structure if said structure is approved by Council. Presented by Approved as to form by ~u~~7l1d~~ Laurie Ma gan Director of Community Development Ann Moore City Attorney and Agency Counsel .~ C:\Documents and Settings\ericc\My Documents\501 c3 RESO territory.doc 3 - /</