HomeMy WebLinkAboutRDA Packet 1996/11/26
Notice is hereby given that the Chairman of the Redevelopment Agency has called and will convene a special joint
meeting of the Redevelopment Agency/City Council on November 26, 1996, at 6:00 p.m., immediately following
the regular City Council meeting, in Council Chambers, located in the Public Services Building, 276 Fourth
Avenue, Chula Vista, California to consider, deliberate and act upon the following:
dIzu/ /~£
) Shirley Horton, Chairman
Tuesday, November 26, 1996 Council Chambers
6:00 p.m. Public Services Building
(immediately following the City Council meeting)
Special Joint Meeting of the Redevelopment Agencv/Council of the Citv of Chula Vista
CALL TO ORDER
1. ROLL CALL: Agency Members Alevy -' Moot -' Padilla -'
Rindone -, and Chair Horton -
BUSINESS
Thefollowingitem(s) will be considered, deliberated, and acted upon by the Redevelopment Agency. [fyou wish
to speak to any item described in the Agenda before or during consideration of that item, please fill out the
"Request to Speak Form" available in the lobby and submit it to the Secretary of the Redevelopment Agency or
the City Clerk prior to the meeting. (Complete the green form to speak in favor of the staff recommendation;
complete the pink form to speak in opposition to the staff recommendation,) Comments are limited to five
minutes per individual.
2. a.AGENCY
RESOLUTION 1521 (1) APPROVING TIm APPLICATION TO THE CALIFORNIA DEBT
LIMIT ALLOCATION COMMITTEE (CDLAC) FOR AN ALLOCATION
OF QUALIFIED MORTGAGE BONDS AND ITS ALLOCATION TO
THE REDEVELOPMENT AGENCY ACCEPTING CITY'S
ASSIGNMENT TO IMPLEMENT; (2) ELECTING TO EXCHANGE
SAID ALLOCATION FOR MORTGAGE CREDIT CERTIFICATES; (3)
~a' \ a1l\ CßRTIFYING THE AVAILABILITY OF FUNDS FOR THE REQUIRED
o~ ?<:!~i'1f'}'" in tne t \ \>os~M:RFORMANCE DEPOSIT OF $50,000; (4) APPROPRIATING $3,200
~cr I'cn?\'='/,.".,'" .¡,:'~'(\'- '3(\(\ \~a'rle FROM TIm UNAPPROPRIATED BALANCE IN THE LOW AND
"\ óec\are \1~-~"..c C',',' C -,' ..';,'-¡;o:,ró- 3' \ MODERATE INCOME HOUSING FUND; AND (5) AUTHORIZING ITS
m?\o\led"bJ p,r,"", :c, C'\t\l \-\a\\ 0(\ E'XECUTION BY THE EXECUTIVE DIRECTOR--The Mortgage Credit
""~~""" "'0"" - '~ C~,- ""'= (MCC ""- - ,"""";.,, " """reo m "', ,~
(\'3," . .;,' (\,' .
tniS p,¡;en \c" \:'11.\-' Reform Act of 1984, as an alternative to mortgage revenue bond-backed
p~b\\C ~S"Gf¡o¿p financing as a tool for providing home ownership assistance to lower income
~, households. Staff recommends that the City apply for a $10 million Mortgage
op, Revenue Bond allocation. With $2.5 million, the City could issue
approximately 125 Mortgage Credit Certificates. Staff recommends approval
of the resolutions. (Community Development Director)
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Agenda -2- November 26, 1996
b. COUNCIL
RESOLUTION 18502 (1) APPROVING THE APPLICATION TO THE CALIFORNIA DEBT
LIMIT ALLOCATION COMMITTEE (CDLAC) FOR AN ALLOCATION
OF QUALIFIED MORTGAGE BONDS AND ASSIGNING ITS
ALLOCATION TO THE REDEVELOPMENT AGENCY TO
IMPLEMENT; (2) ELECTING TO EXCHANGE SAID ALLOCATION
FOR MORTGAGE CREDIT CERTIFICATES; (3) CERTIFYING TIm
AVAILABILITY OF FUNDS FOR TIm REQUIRED PERFORMANCE
DEPOSIT OF $50,000; AND (4) AUTHORIZING ITS EXECUTION BY
THE EXECUTIVE DIRECTOR
3.a. AGENCY
RESOLUTION 1522 APPROVING THE CONTRACT WITH ADVOCATION, INC. FOR
LEGISLATIVE REPRESENT A TION FOR THE 1997-1998
LEGISLATIVE SESSION, AND AUTHORIZING THE CHAIR TO
EXECUTE SAID AGREEMENT ON BEHALF OF THE
REDEVELOPMENT AGENCY--On 12/31/96, the current agreement with
Advocation, Inc. expires. That agreement provided for two 2-year extensions
to coincide with the State legislative sessions, both of which were granted. In
anticipation of the year-end expiration of that contract, the City issued a
Request for Proposals on 9/20/96 for qualified firms for legislative
representation for the period 1/1/97 to 12/31/98. Following extensive review
of the proposals submitted to the City, a firm is recommended by an evaluation
team of both in-house and outside raters to be awarded a contract. Staff
recommends approval of the resolutions. (Community Development Director)
b. COUNCIL
RESOLUTION 18503 APPROVING TIm CONTRACT WITH ADVOCATION, INC, FOR
LEGISLATIVE REPRESENT A TION FOR THE 1997-1998
LEGISLATIVE SESSION, AND AUTHORIZING THE MAYOR TO
EXECUTE SAID AGREEMENT ON BEHALF OF THE CITY OF
CHULA VISTA
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 Council on such a subject, please complete the yellow "Request to Speak Under Oral Communications
Form" available in the lobby and submit it to the 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. Your time is limited to three minutes per speaker.
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Agenda -3- November 26, 1996
OTImR BUSINESS
4. DIRECTOR'S/CITY MANAGER'S REPORT(S)
5. CHAIR'S/MAYOR'S REPORTIS)
6. AGENCY/COUNCIL MEMBER COMMENTS
ADJOURNMENT
The meeting will adjourn to the Regular Redevelopment Agency Meeting on December 17, 1996 at 6:00 p.m.,
immediately following the City Council meeting, in the City Council Chambers.
[M:\HOME\COMMDEV\AGENDAS\II-26-96.AGD]
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JOINT REDEVELOPMENT AGENCY/COUNCIL AGENDA STATEMENT
I
Item c2.- tL-~b
Meeting Date 11/26/96
ITEM TITLE: e<-) AGENCY RESOLUTION ¡5óLl (1) APPROVING THE
APPLICATION TO THE CALIFORNIA DEBT LIMIT ALLOCATION
COMMITTEE (CDLAC) FOR AN ALLOCATION OF QUALIFIED MORTGAGE
BONDS AND ITS ALLOCATION TO THE REDEVELOPMENT AGENCY
ACCEPTING CITY'S ASSIGNMENT TO IMPLEMENT; (2) ELECTING TO
EXCHANGE SAID ALLOCATION FOR MORTGAGE CREDIT CERTIFICATES;
(3) CERTIFYING THE AVAILABILITY OF FUNDS FOR THE REQUIRED
PERFORMANCE DEPOSIT OF $50,000; (4) APPROPRIATING $3,200 FROM
THE UNAPPROPRIATED BALANCE IN THE LOW AND MODERATE INCOME
HOUSING FUND; AND (5) AUTHORIZING ITS EXECUTION BY THE
EXECUTIVE DIRECTOR
b) COUNCIL RESOLUTION / f: SO d- (1) APPROVING THE
APPLICATION TO THE CALIFORNIA DEBT LIMIT ALLOCATION
COMMITTEE (CDLAC) FOR AN ALLOCATION OF QUALIFIED MORTGAGE
BONDS AND ASSIGNING ITS ALLOCATION TO THE REDEVELOPMENT
AGENCY TO IMPLEMENT; (2) ELECTING TO EXCHANGE SAID
ALLOCATION FOR MORTGAGE CREDIT CERTIFICATES; (3) CERTIFYING
THE AVAILABILITY OF FUNDS FOR THE REQUIRED PERFORMANCE
DEPOSIT OF $50,000; AND (4) AUTHORIZING ITS EXECUTION BY THE
EXECUTIVE DIRECTOR
SUBMITTED BY: Commo,;" O"""m,'" O;ffi~f -c"
REVIEWED BY: Executive Directo~ ~ (4/5ths Vote: Yes.x. No_)
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BACKGROUND:
The Mortgage Credit Certificate Program (MCC Program) was authorized by Congress in the Tax
Reform Act of 1984, as an alternative to mortgage revenue bond-backed financing and as a tool
for providing home ownership assistance to lower income households. Applications for Mortgage
Credit Certificates issuing authority are made by local agencies to the California Debt Limit
Allocation Committee (CDLAC). Over the past seven years the MCC Program has assisted over
350 first-time home buyers which has generated over $30 million in home mortgage activity within
the City.
Staff recommends that the City of Chula Vista apply for a $10,000,000 Mortgage Revenue Bond
allocation. MCCs are an allocation of Private Activity Bonds which are converted to Mortgage
Credit Certificates according to a federal conversion ratio required by the Tax Reform Act of 1986.
The conversion ratio is 4 to 1. Therefore, in order to receive authority to issue $2,500,000 of
Mortgage Credit Certificates, the City must apply for an allocation of $10,000,000 of private
activity bonds. With $2,500,000, the City could issue approximately 125 Mortgage Credit
Certificates. The CDLAC application is a standard document similar to the 1996 application, a
copy which is included as Attachment A.
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Page 2, Item 2
Meeting Date 11/26/96
Since the inception of the MCC Program in 1991, the City has received $30,844,333 in Mortgage
Revenue Bonds, which converted into MCCs equals approximately 350 certificates which have
been used to aid first-time homebuyers in the City of Chula Vista.
RECOMMENDATION: That the City Council and Redevelopment Agency adopt the resolutions,
authorizing the following: (1) City/Redevelopment Agency approve the CDLAC Application for an
allocation; (2) City Assign its Allocation and the MCC Program to the Redevelopment Agency of
the City of Chula Vista; (3) the Redevelopment Agency Accept the Assignment of the MCC
Program; (4) the Redevelopment Agency Set-Aside 10% of its Allocation for Low Income
Households; (5) the Redevelopment Agency Certify the Availability of Funds for the Performance
Deposit; (6) the Redevelopment Agency appropriated $3,200 from the unappropriated balance in
the Low and Moderate Income Housing Fund; and (7) the Redevelopment Agency Certify the
Agreement to Forfeit Deposit.
BOARDS/COMMISSIONS RECOMMENDATION: The City's Housing Advisory Commission strongly
supports the MCC Program-
DISCUSSION:
A Mortgage Credit Certificate (MCC) is a document awarded to a home buyer, whose income is
below 110% of the area median income (currently $49,940). The MCC operates as an IRS tax
credit, The qualified home buyer will be eligible to take a Federal Income Tax credit of twenty
(20%) percent of the annual interest paid on the mortgage. The MCC tax credit reduces the
federal incomes taxes of qualified home buyers purchasing qualified homes, thus having the effect
of subsidizing their payments. The qualified home buyer has use of more of their income to spend
on buying a home. As a result, their effective home buying power is increased. The certificate
is registered with the IRS; it is not transferable, and it is revoked if the certificate holder moves
out of the qualifying home.
Under the proposed MCC Program for the City of Chula Vista, a family applies for a MCC through
one of the participating lenders while applying for the loan to purchase the home. The potential
borrower pays a non-refundable $200.00 to the lender at the time the application is made, and
the lender forwards $150.00 of the $200.00 fee to the Community Development Department.
Community Development Staff reviews the application for program compliance and reserves a
Mortgage Credit for the buyer; the MCC is issued at the close of escrow.
In order to assist low-income families (those families earning 80% or less of area median income.)
staff recommends that 10% of the allocation be set aside for low-income families. A concerted
effort will be made to identify and link qualified buyers and housing stock to meet this objective.
Should it prove infeasible, the application includes an option to release these funds from the low
income restriction by the following formula: One-half of unexpended set-aside funds released after
twelve months, and the remainder at t 1e end of eighteen months.
Home buyers in Chula Vista, particularly those purchasing their first home, suffer from a large
disparity between income and housing affordability. A MCC Program is an excellent way to bridge
this existing gap. A MCC Program is considered preferable to a single family bond program in
Chula Vista because it allows home buyers the flexibility to choose from both newly constructed
homes and lower priced existing housing stock.
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Page 3, Item J-
Meeting Date 11/26/96
According to federal guidelines, program participation is open to all interested mortgage brokers
and lenders. lenders consider the MCC Program an effective way to increase first-time buyer
business, and the Program also assists lenders in fulfilling their requirements, under the Community
Reinvestment Act. Currently, there are 62 lenders participating in the City of Chula Vista MCC
Program.
Since the MCC Program will be partially funded by Low and Moderate Income Housing Fund, the
City Council must give authority to the Redevelopment Agency to implement and administer the
MCC Program. The California Debt Limit Allocation Committee has stated that the MCC Program
must first be approved by the City of Chula Vista City Council, and then the authority must be
given to the Agency to implement the Program. Therefore, it is staff's recommendation that
implementing authority be given to the City of Chula Vista Redevelopment Agency.
FISCAL IMPACT: The California Debt Limit Allocation Committee requires an application fee of
$3,200.00 and a Performance Deposit of $50,000 (.005% of the requested allocation). The
Performance Deposit is a requirement of California Government Code Section 8869.84(e) which
attempts to insure that the allocation is used properly, The Performance Deposit requirement is
satisfied by the Agency certifying the availability of $50,000 for this purpose. The Performance
Deposit of $50,000 is currently available in the Low/Moderate Income Housing fund.
The full amount of the Performance Deposit should be released by the California Debt Limit
Allocation Committee as long as the first Mortgage Credit Certificate is issued within 120 days
of receiving an allocation. Staff expects to meet this deadline. No previous deposit has ever been
forfeited during the program's seven year history.
As per the resolution, the Agency will be appropriating $3,200 from the unappropriated balance
of the Low and Moderate Income Housing Fund 993 and transfer said funds into Low and
Moderate Professional Services 993-9930-5201 account.
IJFI M,\HOMEICOMMOEVISTAFF.REP\11-26-96\COLAC INoyomb" 20, 19961L27pmll
02-3
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RESOLUTION NO. / S d-.I
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF
CHULA VISTA (1) APPROVING THE APPLICATION TO THE
CALIFORNIA DEBT LIMIT ALLOCATION COMMITTEE (CDLAC) FOR
AN ALLOCATION OF QUALIFIED MORTGAGE BONDS AND ITS
ALLOCATION TO THE REDEVELOPMENT AGENCY ACCEPTING
CITY'S ASSIGNMENT TO IMPLEMENT; (2) ELECTING TO
EXCHANGE SAID ALLOCATION FOR MORTGAGE CREDIT
CERTIFICATES; (3) CERTIFYING THE AVAILABILITY OF FUNDS
FOR THE REQUIRED PERFORMANCE DEPOSIT OF $50,000; (4)
APPROPRIATING $3,200 FROM THE UNAPPROPIRATED BALANCE
IN THE LOW AND MODERATE INCOME HOUSING FUND; AND (5)
AUTHORIZING ITS EXECUTION BY THE EXECUTIVE DIRECTOR
WHEREAS, the Health and Safety Code of the State of California, commencing at
Section 50171, ("the Act") authorizes cities or their redevelopment agencies to issue mortgage
credit certificates pursuant to a duly adopted and qualifying mortgage credit certificate program
("MCC Program"); and
WHEREAS, federal law limits the amount of mortgage credit certificates that may
be issued in any calendar year by entities within a state and authorizes the legislature of such state
to provide the method of allocation within the state; and
WHEREAS, Chapter 3.5 of Part I Division 31 of the Health and Safety Code,
commencing at Section 50171, governs the allocation among governmental units in the state
having the authority to issue mortgage credit certificates; and
WHEREAS, Section 50191 of the Act requires a local agency to file an application
with the California Debt Limit Allocation Committee' ("Committee") prior to the issuance of
mortgage credit certificates; and
WHEREAS, the Committee has, under the authority of Health and Safety Code
Section 50191, required a deposit of up to 1 percent of the portion of the allocation requested.
NOW, THEREFORE, BE IT RESOLVED the Redevelopment Agency of the City of
Chula Vista does hereby find, determine, order, and resolve as follows:
Section 1. Agency's Application for Allocation
The Agency Board approves the City's application for an allocation of qualified mortgage
bonds in the amount of $10,000,000, a copy of which is on file with the City Clerk registered
therein as Document No. xx xx-xxx.
I The enacting legislation describes a committee entitled "Mortgage Bond and Tax Credit Allocation
Committee". To the extent that this is the State committee authorized to implement Chapter 3.5 of Division 31 of
the Health and Safety Code Section, to wit: the Qualified Mortgage Bond and Mortgage Credit Certificate Program
for the State, the use of the word "Committee" shall be intended as a reference to this State Committee
DJ- cj--Z
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Section 2. Acceptance of Assignment by Agency
The Agency Board accepts the assignment of the City's allocation of qualified mortgage
bonds, and accepts the authority and duty to implement and administer the MCC Program.
Agency further agrees to issue MCCs to qualifying homeowners of property located within the
territory of the City, provided however, that if, after a reasonable attempt and for reasons beyond
the control of the Agency, the Agency is unable to issue all of the assigned certificates to
homeowners of property located within the territory of the City, any remaining certificates may
be issued to qualifying homeowners of property located within the county of San Diego.2
Section 3. Agency Sets Aside 10% of Allocation for Lower Income Households
The Agency agrees to set aside 10% of the allocation received from the State of California
for low income households (Those households earning 80% or less of area median income). If the
set-aside is unused, this set-aside may be released by the following formula: One-half of the
unexpected set-aside funds released after twelve months, and the remainder at the end of eighteen
months.
Section 4. Authority to Convert to Mortgage Credit Certificate
Pursuant to the authority of Section 59197.2, the Agency Board hereby elects to exchange
all of its authority to issue qualified mortgage bonds for authority to issue mortgage credit
certificates ("MCC's"). The Executive Director shall notify the Committee of its election, and
explain to the Committee the mechanism established in its program that will assure that the dollar
amount of the mortgage credit certificate authority will not be exceeded. 2
Section 5. Availability of Funds for Deposit
The Agency hereby certifies the availability of $50,000 from the Agency's Low and
Moderate Income Housing Fund as and for a deposit as required by the Committee under the
authority of Section 50191, Health and Safety Code.
Section 6. Appropriating Funds
The Agency hereby appropriates $3,200 from the unappropriated balance of the Low and
Moderate Income Housing Fund for the Application Fee.
Section 7. Authority to Certify Funds and Agreement to Forfeiture Rule
The Executive Director, or his designee, the Finance Director, or other written designee,
is hereby authorized to certify the amount of $50,000, and maintain certification in accordance
with the current rules and regulations of the Committee, and to certify such fact to the
Committee, includina the promise to pav same over to the Committee upon a event of forfeiture.
Section 8. This resolution shall take and be in full force and effect immediately upon the
passage and adoption hereof.
2 Health and Safety Code Section 50197.2
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Section 9. Minutes
The Secretary to the Agency shall certify to the passage and adoption of this Resolution;
shall enter the same in the book of original Resolutions of said Agency; and shall make a minute
of the passage and adoption hereof in the minutes of the meeting at which the same is passed and
adopted.
Presented by Approved as to form by
@~- Sd~ fA. ~ ~~~
Chris Salomone Ann Moore
Director of Community Development Acting Agency Attorney
({JFI M,\HOMElCOMMDEV\RESDSlCDLAC.AGY (N"'mO" 15. 1996 (H1pmll
D2 -(, -CZ
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RESOLUTION NO. I g::;-o d--
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA (1) APPROVING THE CDAC APPLICATION FOR AN
AllOCATION OF QUALIFIED MORTGAGE BONDS AND ASSIGN ITS
AllOCATION TO THE REDEVELOPMENT AGENCY TO IMPLEMENT;
(2) ELECTING TO EXCHANGE SAID ALLOCATION FOR MORTGAGE
CREDIT CERTIFICATES; (3) CERTIFYING THE AVAilABILITY OF
FUNDS FOR THE REQUIRED PERFORMANCE DEPOSIT OF $50,000;
AND (4) AUTHORIZING ITS EXECUTION BY THE EXECUTIVE
DIRECTOR
WHEREAS, the Health and Safety Code of the State of California, commencing at
Section 50171, ("the Act") authorizes cities or their redevelopment agencies to issue mortgage
credit certificates pursuant to a duly adopted and qualifying mortgage credit certificate program
("MCC Program"); and
WHEREAS, federal law limits the amount of mortgage credit certificates that may
be issued in any calendar year by entities within a state and authorizes the legislature of such state
to provide the method of allocation within the state; and,
WHEREAS, Chapter 3.5 of Part I Division 31 of the Health and Safety Code,
commencing at Section 50171, governs the allocation among governmental units in the state
having the authority to issue mortgage credit certificates; and,
WHEREAS, Section 50191 of the Act requires a local agency to file an application
with the California Debt Limit Allocation Committee' ("Committee") prior to the issuance of
mortgage credit certificates; and,
WHEREAS, the Committee has, under the authority of Health and Safety Code
Section 50191, required a deposit of up to 1 percent of the portion of the allocation requested.;
and
NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista
does hereby find, determine, order, and resolve as follows:
Section 1. City's Application for Allocation
The City Council approves the application for an allocation of qualified mortgage
bonds in the amount of $50,000, a copy of which is on file with the City Clerk registered therein
as Document No. xx-xxx, to Committee, and authorizes the City Manager to execute said
application, and deliver notice of same to the Committee.
] The enacting legislation describes a committee entitled "Mortgage Bond and Tax Credit Allocation
Committee". To the extent that this is the State committee authorized to implement Chapter 3.5 of Division 31 of
the Health and Safety Code Section, to wit: the Qualified Mortgage Bond and Mortgage Credit Certificate Program
for the State, the use of the word "Committee" shall be intended as a reference to this State Committee
d - Î -b
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Section 2. Assignment of Allocation and MCC Program
Pursuant to the authority of Health and Safety Code Section 50193, or such other
provision of law which permits same, the City Council hereby assigns all of its allocation of
qualified mortgage bonds under Chapter 3.5 of Division 31 of the Health and Safety Code to the
Redevelopment Agency of the City of Chula Vista, and delegates the authority and responsibility
to implement and administer the MCC Program to the Agency.
Section 3. This resolution shall take and be in full force and effect immediately upon
the passage and adoption hereof.
Section 4. Minutes
The City Clerk shall certify to the passage and adoption of this Resolution; shall
enter the same in the book of original Resolutions of said City; and shall make a minute of the
passage and adoption hereof in the minutes of the meeting at which the same is passed and
adopted.
Presented by Approved as to form by
C"ri~60~" ~ ú ~ . w\A~
Ann Moore
Director of Community Development Acting City Attorney
[{J'I M,\HOMEICOMMDEV\RESDS\CDLAC.CDU {Nov,mb" 15. 1996 {2Alpm{]
02 - r - b
CALIFORNIA DEBT LIMIT ALLOCATION COMMITTEE
APPLICA TION FOR 1996 ALLOCATION OF PRIVATE ACTIVITY BONDS
FOR EXISTING MORTGAGE CREDIT CERTIFICATE PROGRAMS
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PART I - ISSUER (APPLICANT)/ADMINISTRATOR INFORMATION
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1. Name, address, contact person and telephone number of the issuer (applicant) of the MCCs and the
filer of the conversion election:
City of Chula Vista
276 Fourth Avenue
Chula Vista, CA 91910
Contact Person: Judith Foland
(619) 691-5047
Issuer's federal employer identification number: 95-6000690
2. Agency name, address, contact person and telephone number of program administrator if different
from above:
Redevelopment Agency of the City of Chula Vista
276 Fourth Avenue
Chula Vista, Ca 91910
Contact Person: Judith Foland
(619) 691-5047
3. County: San Di ego
4. Attach a list of the participating jurisdictions if this is a multiple jurisdictional program. ¡fthis is a
change from the current program participation, indicate what constitutes the change.
Issuers must certify in PART V that all necessary resolutions and publicly adopted documents
are in place, or will be in place prior to receiving allocation. If the program is adding ~
jurisdictions, publicly adopted docurnents for each of the new participants must be provided.
When were publicly adopted docurnents for the continuing participants last subrnitted to CDLAC
(indicate month and year)? N/A
5. Narne, address, contact person and telephone number of tax counsel firm:
Orrik, Herrington & Sutcliff
Wells Fargo Building
400 Capitol Mall, 30th Floor
Sacramento, CA 95814
Contact Person: Perry Israel -1- MCC-Exlstlng/Rev. 12/95
(916) 329-7921
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6. Name, address, contact person and telephone number of financial advisor finn, if applicable
Not applicable.
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PART II - ALLOCATION/PROGRAM INFORMATION
_h___--__-------------_--____h___----_--__Uh______--------------------------------------------------n----___--------------
1. Amount of allocation requested: $20,000,000
2. Date MCCs will be advertised: January 13, 1996
3. Proposed issuance date of first MCC: April 11, 1996
4. Number of units expected to be financed:
30 newly-constructed units
~ resale units
-00 rehabilitated units
155 Total
5. Are the above numbers estirnates or actual prograrn requirernents irnposed by the issuer?
The above estimates are based on current issuance rates of Mortgage
Credit Certificates.
6. What type of housing is expected to be financed?
The type of housin9 expected to be financed includes Single-Family homes,
town homes , and condominiums.
7. If program contains a reservation for new construction, attach a) schedule of when new hornes or
developrnents are expected to become available, and b) description of the rnechanisrn which is in
place to use the allocation if construction is postponed or otherwise delayed.
A) CABO Development of 140 units by the Baldwin Company, 13 of these units to be
reserved for the MCC program. Units are now available.
B) Developers are awaiting allocation of MCCs for advertising purposes.
A) Trolley Terrace - Development of 14 units all of which will be reserved for
the MCC program. Units expected to be available by May 1997. . / 2/9
-2- . MCC-Exlstlng Rev. 1 5
B) If construction is postponed, the reserved MCCs will be released for general
use since demand for the MCC certificates is very high.
c::2-IO
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8. Proeram Performance
a) Provide the following information relating to previous MCC allocations:
Allocation Allocation
MonthlYear Amount Used MCCs Issued
11/94 $5,800,000 $5,800,000 60
06/95 $4,488,000 4,308,000 40*
* Note: Balance of 6 certificates reserved for 10% set-aside.
All MCCs issued within 6 months of receiving allocation.
b) Attach explanation for any unused allocation, and the anticipated usage of allocation during the
remaining term of the prograrn.
Not applicable.
c) Current average monthly rate of issuance over the past 6-9 months: 16/month
d) Expected average monthly rate of issuance: 20/month
e) Explain any differences between the current and expected rates of issuance.
The MCC program is well know in the South Bay and in order to keep up with
demand, an allocation of $20,000,000 will keep the program viable for at
least one full year.
£) Number ofhornes sold in past year which were within the purchase price limits (identify the
source): 1040 homes were so 1 din the City of Chu 1 a Vi sta rangi ng from
$65,000 to $204,000. These prices fall within the price guidelines for
both targeted and non-targeted areas.
Source: South Bay Board of Realtors.
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PART III - PUBLIC BENEFITS INFORMATION
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I. Maximum Purchase Prices. For purchase price requirernents, refer to Internal Revenue Code Section
l43(e). The proposed maxirnum limits are:
Non- Target Area Target Area
Unit Average Area Maxirnum Maximum
~ Purchase Price* Purchase Prices Purchase Prices
New Units $ 166,592 $ 149,932 $ 183,251
Existing Units $185,813 $167,231 $204,394
*This is (check one): ..25..IRS safe harbor lirnitations .
_as determined by special survey (attach copy of survey along
with bond counsel confirmation that survey methodology complies
with federal law)
-3-! MCC-Exlstlng/Rev. 12/95
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2. Maximum Income Limitations. For income requirements, refer to Internal Revenue Code Section
143. Please provide the infonnation requested below.
a. Area rnedian income: $45,400
Above rnedian incorne is (check one): _statewide rnedian _county rnedian
,LMSA/PMSA median _local median as determined by special study (attach copy of
study along with bond counsel confinnation that study methodology complies with
federal law)
b. Are there target areas in the jurisdiction( s)? .2. Y es No
If yes, percent of bond proceeds reserved for target areas: 20%
c. The proposed rnaxirnurn limits are:
Household Size Non-Target Area Target Area
1-2 persons $ 45,400 $ 54,480
3+ persons $ 52,210 $ 63,560
3. Pro2ram Reservations
If applicable, describe any reservations for lower purchase prices and/or lower incomes.
Unde~ the MCC program, 10% of the allocation is reserved for persons
earnlng at or below 80% of the median income ($36,320). However,
30% of MCC applicants who receive MCC funding are earning $36,320 and
below.
4. Based on past program experience, what is the average purchase price and income of an MCC
recipient?
Average Purchase Price: $125,000
Average Income: $ 36,000
-------------------------------------------------------------------------------------------------------------------------------
PART IV - OTHER RELATED INFORMATION
-------------------------------------------------------------------------------------------------------------------------------
l. Attach description of applicant's financial participation in the prograrn.
See "Attachment 1"
2. Attach explanation of how this program helps attain the housing goals of the participating
jurisdiction( s)-
See "Attachment 1"
-4- MCC-Exlstlng/Rev. 12/95
c2 -Id-.
-----------------------------------------------------------------------------------------_--h----____-------------------------
PART V - CERTIFICATIONS/SIGNATURE
-------------------------------------------------------------------------------------------------------------------------------
The following certifications must be made by an official of the issuer of the MCCs. This application must
contain the original signature of an official who has the knowledge and infonnation to make these
certifications.
I HEREBY CERTIFY THAT THE NECESSARY PUBLICLY ADOPTED DOCUMENTS OF ALL
CONTINUING PARTICIPATING JURISDICTIONS ARE DULY ADOPTED AND IN EFFECT AS
OF THIS DATE, OR WILL BE DULY ADOPTED AND IN EFFECT ON THE DATE WHICH THE
CALll'ORNIA DEBT LIMIT ALLOCATION COMMITTEE WILL ACT ON THIS REQUEST
FOR AN ALLOCATION OF THE 1996 VOLUME CAP ON PRIVATE ACTIVITY BONDS.
I FURTHER CERTIFY THAT ALL CURRENT COUNCIL AND/OR BOARD MEMBERS OF THE
P ARTICIP A TING JURISDICTIONS ARE AWARE OF THIS APPLICATION.
I FURTHER CERTIFY THAT THE INFORMATION PROVIDED IN THIS APPLICATION IS
TRUE, CORRECT, AND COMPLETE.
Od {) ~ 1-1n-Qh
s7e . Date
City Manager
Title
-5- MCC-Exlsting/Rev.12/95
c:::J. - I 3
ATTACHMENT #1
Part IV - OTHER RELATED INFORMATION
1. The City is currently establishing a First-time Home Buyer Assistance Program to work
in conjunction with the Mortgage Credit Certificate Programto assist low-income families
or individuals qualify for a mortgage loan.
2. This program will help those families or individuals who are unable to qualify fora
mortgage loan by offering assistance, either in the form of a silent second or down
payment assistance.
.
c:2 -( c/
- .
RESOLUTION 1482 DRAFT
Resolution of the Redevelopment Agency of the City of Chula Vista,
California Approving the Application to the California Debt Limit
Allocation Committee (CD LAC) for an allocation of qualified mortgage
bonds and its allocation to the Redevelopment Agency accepting City's
assignment to implement; Electing to exchange said allocation for
Mortgage Crcdit Certificates; Certifying the availability of funds for the
required Performance Deposit of $200,000 and authorizing its execution
by the Executivc Director
WHEREAS, the Health and Safety Code of the State of California, commencing at Section 50171,
("the Act") authorizes cities or their redevelopment agencies to issue mortgagc credit certificates pursuant
to a duly adopted and qualifying rnortgage credit certificate program ("MCC Program"); and,
WHEREAS, federal law limits the amount of mortgage credit certificates that may be issued in
any calendar year by entities within a state and authorizes the legislature of such state to provide the
method of allocation within the state; and,
WHEREAS, Chapter 3.5 of Part I Division 31 of the Health and Safety Code, commencing at
Section 50171, governs the allocation among governmental units in the state having the authority to issuc-
mortgage credit certificates; and,
WHEREAS, Section 50191 of the Act requires a local agency to file an application with the
California Debt Urnit Allocation Committee' ("Committee") prior to the issuance of mortgage credit
certificates; and,
WHEREAS, the Committee has, under the authority of Health and Safety Code Section 50191,
required a deposit of up to 1 percent of the portion of the allocation requested.
NOW, THEREFORE, THE REDEVELOPMENT AGENCY OFTHECITY OFCHULA VISTA
DOES HEREBY FIND, DETERMINE, ORDER, AND RESOLVE as follows:
Section 1. Agency's Application for Allocation
The Agency Board approves the City's application for an allocation of qualified mortgage bonds
in the amount of $20,000,000, a copy of which is on file with the City Clerk registered therein as
Docwnent No. xx xx-xxx.
Section 2. Acceptance of Assignment by Agency
The Agency Board accepts the assignment of the City's allocation of qualified rnortgage bonds,
and accepts the authority and duty to irnplernent and administer the MCC Program, Agency further
agrees to issue MCCs to qualifying homeowners of property located within the territory of the City,
provided however, that if, after a reasonable attempt and for reasons beyond the control of the Agency,
the Agency is unable to issue all of the assigned certificates to horneowners of property located within
, The enacting legislation describes a committee entitled "Mortgage Bond and Tax 'Credit Allocation
Committee". To the extent that this is the State committee authorized to implement Chapter 3.5 of Division 31 of
the Health and Safety Code Section, to wit: the Qualified Mortgage Bond and Mortgage Credit Certificate Program
for the State, the use of the word "Committee" shall be intended as a reference to this State Committee
c2-!;S-
Resolution 14S2
Page 2
the territory of the City, any remaining certificates may be issued to qualifying homeowners of property
located within the county of San Diego.2
Section 3. Agency Sets Aside 10% of Allocation for Lower Income Households
The Agency agrees to set aside 10% of the allocation received from the State of California for
low income households (Those households earning 80 % or less of area median income). If [he set-aside
is unused, [his sel-aslde may he released by the folIowing formula: One-half of [he unexpec[ed set-aside
funds released afler Iwelve mnnths. and the remainder at the end of eig]¡leen months
Section 4. Authority to Convert [0 Mortgage Credit Certificate
Pursuant to the authority of Section 59197.2, the Agency Board hereby elects to exchange all of
its authority to issue qualified morrgage bonds for authority to issue mortgage credit certificates
("MCC's"). The Executive Director shall notify the Committee of its election, and explain to the
Committee the mechanism established in its program that will assure that the dollar amount of the
mortgage credit certificate authority will not be exceeded.'
Section 5. Availability of Funds for Deposit
The Agency hereby certifies the availability of $200,000 from the Agency's low and Moderate
Income Housing Fund as and for a deposit as required by the Committee under the authority of Section
50191, Health and Safety Code.
Section 6. Authority to Certify Funds and Agreement to Forfeiture Rule
The Executive Director, or his designee, the Finance Director, or other written designee, is
hereby authorized to certify the amount of $200,000, and maintain certification in accordance with the
current rules and regulations of the Committee, and to certify such fact to the Committee, including the
promise to pav same over to the Committee upon a event of forfeiture.
Section 7. This resolution shall take and be in fulI force and effect immedia[ely upon the passage
and adoption hereof.
Section 8. Minutes
The Secretary to the Agency shall certify to the passage and adoption of this Resolution; shall
enter the same in the book of original Resolutions of said Agency; and shall rnake a minute of the passage
and adoption hereof in the minutes of the meeting at which the same is passed and adopted.
Presented by: Approved as to form by:
~ ~ <;;J~ ~
Chris Salomone
Community Development Director
[BBIC:\ WP51 \A GENCYlRESOSIR -1482.RES]
e:2-(C:-
.' Health and Safety Code Section 50197.2
- -
APPLICA nON DOCUMENTS CHECKLIST
This checklist is provided to assist you in making sure that a completed application package is filed with the
Committee.
Your application package rnust contain the following:
x $300 initial filing fee
-
-L Signed Deposit Certification Form for an arnount equal to 1 % of the allocation being requested not
to exceed $250,000
x Completed and signed application form
x Attaclunents
--.!y.. A Exhibits, if applicable
- Resolution(s), if applicable: ~Draft _Adopted
Check Comrnittee's Procedures for final filing date of adopted resolution(s).
N/A Cooperative Agreernents, if applicable: _Draft _Signed
Check Committee's Procedures for final filing date of signed cooperative agreements.
N/A MCC program manual, if applicable
x Duplicate copy [NOTE: Any subsequent rnailings of additional application materials should
be in duplicate.)
-6- MCC-Exlstlng/Rev. 12/95
c2 -17
-.
DEPOSIT CERTIFICATION FORM
FOR AN APPLICATION FOR 1996 ALLOCATION OF PRIVATE ACTIVITY BONDS
California Debt Limit Allocation Committee
915 Capitol Mall, Room 404
Sacramento, CA 95814
(916) 653-3255
CERTIFICATION OF THE City of Chula Vista (Applicant)
REGARDING AN APPLICATION FOR PRIVATE ACTIVITY BOND ALLOCATION
In connection with the following private activity bond application:
APPLICANT: City of Chula Vista
AMOUNT OF ALLOCATION REQUESTED: $ 20,000,000
PROJECT NAMEIPROGRAM TYPE: Mortgage Credit Certificate Program
the undersigned officer of the City of Chula Vista (Applicant) hereby certifies as
follows:
1. I, John D. Goss (Narne), am the City Manaqer
(Title) of the City of Chula Vista (Applicant), and arn duly authorized to
make the deposit required below.
2. The City of Chula Vista (Applicant) has collected and has placed on deposit
in an account in a financial institution, $ 200,000.00 , Two Hundred Thousand Dollars
dollars (write out dollar amount, i.e., ten thousand) which equals one percent of the amount of
private activity bond allocation being requested not to exceed $250,000.
3. The deposit will be held until receipt of a written notification ITom the California Debt Limit
Allocation Committee that the deposit is authorized to be released or forfeited, in whole or in
part, pursuant to the procedures of the Cornrnittee.
4. To the extent that any portion of the deposit is forfeited, the applicant agrees to send the
required amount in a check rnade payable to the "California Debt Limit Allocation Committee."
Such check shall be rnailed to the Committee at the address noted above irnrnediately upon
receipt of the written notification frorn the Committee.
5. The undersigned has read the procedures of the California Debt Limit Allocation Committee
and understands that if any portion of an approved private activity bond allocation is not used
for the purpose for which it was granted, then the corresponding portion of the perfonnance
deposit must be forfeited to the Committee.
1-10-96
Date c2-«{
Rev. 12/95
- .
JOINT COUNCIL/REDEVELOPMENT AGENCY
AGENDA STATEMENT
Item..3 a f /;
Meeting Date 11/26/96
ITEM TITLE: Resolution I .:;.- d- 2.. of the Redevelopment Agency approving
the contract with Advocation, Inc. for legislative representation for
the 1997-1998 legislative session, and authorizing the Chair to
execute said agreement on behalf of the Redevelopment Agency.
Resolution I 'Íf So 3 of the City Council approving the
contract with Advocation, Inc. for legislative representation for the
1997-1998 legislative session, and authorizing the Mayor to
execute said agreement on behalf of the City of Chula Vista.
SUBMITTED BY: Chris Salomone, Director of Community Development ~
Gerald Young, Principal Management Assistanr
-?
REVIEWED BY: Executive Direct~ (4/5ths Vote: Yes_No..XJ
On December 31, 1996, the current agreement with Advocation, Inc. expires, That
agreement provided for two two-year extensions to coincide with the state legislative
sessions, both of which were granted, In anticipation of the year-end expiration of
that contract, the City issued a Request for Proposals (RFP) on September 20, 1996
for qualified firms for legislative representation for the period January 1, 1997 to
December 31,1998.
Following extensive review of those proposals submitted to the City, a firm is
recommended by an evaluation team of both in-house and outside raters to be
awarded a contract.
RECOMMENDATION: That the Council/Redevelopment Agency award the contract
for legislative representation to the firm of Advocation, Inc, (proposed agreement
attached as Exhibit' A'). The effective period of the contract will be January 1, 1997
through December 31, 1998 with three two-year renewal options at the City's sole
and unfettered discretion.
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 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.
~-(
Item 3 ,Page 2
Meeting Date 11 /26/96
With the pending expiration of the current contract, staff mailed copies of an RFP to
the top 40 lobbying firms in the state along with others which had been recommended
(e.g. Art Bauer and Associates). This listing was compiled by the Secretary of State's
office based on contributions received from the firms' clients.
A total of six firms submitted proposals to the City in response to the RFP. One of
these submittals (Joe and Anthony Gonsalves) was determined to be non-responsive
to the RFP. The remaining five proposals were then reviewed and evaluated by a six-
member panel of City staff made up of: Bob Leiter, Planning Director; John Lippitt,
Public Works Director; David Palmer, Library Director; Chris Salomone, Community
Development Director; Gerald Young, Principal Management Assistant; and Colleen
M. Kelly, Administrative Analyst II.
This panel used criteria such as: experience of principal representatives in Sacramento
politics and municipal issues; proven ability to influence and affect the opinions and
actions of the legislative and executive branches of State government; demonstrated
expertise in those issues and topics covered by the City's Legislative Program;
recommendations of respondents' references; sufficiency of staff to meet the
workload and timing requirements of the City's Legislative Program; ability to meet
City budget constraints for base contract price plus expenses; and demonstrated
stability from a financial, organizational and personnel perspective, The following
rankings were the result:
FIRM NAME POINT TOTAL (out of a Dossible 100)
Advocation, Inc 90
Bob Wilson 84
The Flannery Group 73
Ochoa and Sillas 69
The Gualco Group 56
Based on those evaluations, the list was narrowed to 4 proposals, These were
presented (with no further' consideration of these initial ratings) to a five-member
interview panel of both City staff and outside legislative professionals: Dwight
Stenbakken, Legislative Director for the League of California Cities; Richard Ledford,
Senior Vice President for Public Policy for the Greater San Diego Chamber of
Commerce; Sid Morris, Assistant City Manager; David Palmer, Library Director; and
Gerald Young, Principal Management Assistant.
Topics of discussion included: recent changes in the Legislature, specific lobbying
opportunities with Chula Vista's elected representatives, the future of redevelopment
law, handling of potential conflicts, and each firm's approach to lobbying and
customer service.
At the conclusion of those interviews, the panel concurred in the designation of a first
tier and second tier of candidates, The top candidates, being Advocation and Bob
Wilson, were both found to be highly qualified firms with a good reputation for
..3-~
Item.1.-, Page 3
Meeting Date 11 /26/96
achieving results in Sacramento,
In the second tier, the Flannery Group appeared qualified but presented significant
potential conflicts via their continuing representation of the City of San Diego, Their
proposed solution to this was either to assign separate staff to each city or to offer
a subcontractor. Neither option guaranteed representation by the principal lobbyists
offered in the RFP or fit with Chula Vista's requirement that, should an unresolvable
conflict arise, the other client would be required to retain alternate representation.
Regarding Ochoa & Sillas, their range of clients, areas of specialization and interview
responses also failed to rank them among the top firms,
TOD Ranked Firms
As this report indicates, the four proposals fall into two tiers. Focusing on the top
tier, it is clear that both Advocation and Bob Wilson have performed well for the
jurisdictions and companies that they represent. In reviewing both of these firms, the
following comments are pertinent.
With Advocation and Bob Wilson in the first tier, the committee unanimously
recommended Advocation. This was based on: the results Advocation has been able
to achieve for Chula Vista with such issues as the veterans home ($12 million in State
funds), Redevelopment Agency supplemental subventions ($4 million since legislative
enactment), the nature center ($400,000) and alternative fuel programs ($750,000
in 1995); the reputation and strength of the firm as one of the top lobbyists in the
state; the interview responses; and the lack of any potentially conflicting San Diego
County clients. The reference checks for Advocation also supported this
recommendation (Fresno County Transportation Authority, J.G, Boswell, Deposition
Reporters Association of California, and Pacific Merchant Shipping Association),
Qualifications of Recommended Firm
Throughoutthe 1995-96 Legislative Session, Advocation's performance has continued
to be in keeping with the City's expectations,
* Passage of SB 1382 which, in conjunction with AB 2015, approves $12
million in State funding for a Southern California Veterans Home in Chula
Vista;
* Passage of SB 229 which appropriates $243,000 to Chula Vista for
supplemental subventions owed the City since 1994-95;
* Assisting in the passage of S8 8 which re~allocates distribution of Public
Safety half-cent sales tax in San Diego County to the benefit of cities
starting in 1997-98;
* Assisting in the defeat of bills such as AB 2569 which would have
...3. - 3
Item ~, Page 4
Meeting Date 11/26/96
limited Redevelopment Agencies' use of eminent domain and SB 323,
which would have jeopardized the City's ability to recoup the costs of its
$2.4 million GIS system;
* Developing support for those bills such as AB 2797 which would have,
in part, corrected the State's on-going take away of local property tax
revenue (vetoed in 1996, to be a continuing issue along with legislative
implementation/interpretation of Proposition 218);
Previous years' efforts have also netted
* Initial enactment of supplemental subvention legislation for Chula Vista
and five other affected cities, with a total benefit to Chula Vista of
approximately $4 million.
* Approval of $400,000 for the Nature Center Seawater system and
$750,000 for alternative fuel projects.
Advocation, Inc. continues to be a highly respected lobbying firm in Sacramento,
representing such clients as Eastman Kodak, PepsiCo, Southland Corporation, General
Motors, Federal Express, H&R Block, and the J.G. Boswell Company, to name a few.
Former clients with a local government focus have included: City of Coronado, Los
Angeles County, and the Capistrano Unified School District, The public clients
currently represented by the firm are the Fresno County Transportation Authority and
the Los Angeles County Life Guard Association.
The wide range of contacts and diversity of resources available to the City through
Advocation's expansive professional network, coupled with the firm's thorough
knowledge of the City's needs, have become a tremendous advantage to the City.
This became very much apparent during both the supplemental subventions
negotiations and the Veterans Home debates when Advocation's relationships with
individual legislators, the Department of Finance, and the Governor's office provided
the City with critical opportunities to influence the decision makers in these potentially
controversial issues. Advocation is well-positioned to keep Chula Vista advised of a
broad spectrum of issues affecting the City and has proven its ability to influence the
course of those issues for the benefit of this community,
Qualifications of Bob Wilson
The other firm in the top tier of applications is Bob Wilson. Among the projects
successfully lobbied by Bob Wilson are:
* Passage of radar enforcement pilot programs for Mast Boulevard and Chase
Avenue in Santee and EI Cajon.
* Assisting in passage of changes in allocation of auto leasing revenues to the
...$ -4
Item ~, Page 5
Meeting Date 11/26/96
site of the transaction rather than the leasing office headquarters, gaining
clients as much as $300,000 per year in additional revenues.
* Assisting in passage of bill for San Diego County agencies to self-certify their
housing elements rather than work through the state approval process.
* Defeat of legislation that would have lowered reimbursements to the San Diego
Community College District, thus saving the agency approximately $7 million.
* Approval of sand replenishment funds for San Diego beaches for more than $2
million.
* Keeping $10 million in the state budget for the San Diego to Fullerton rail line.
The Bob Wilson group focuses mostly on local government issues in the San Diego
region, currently representing the Cities of National City, EI Cajon, Santee and Poway,
as well as SANDAG. They also have excellent contacts among some of the legislative
leadership, as well as direct access to the executive branch of State government. Of
the agencies they represent in San Diego County, two respected attorneys voluntarily
called and offered their endorsement to the Wilson proposal. Lynn McDougal,
contract City Attorney for the City of EI Cajon as well as other jurisdictions in the
County, feels that they "really have done a good job for the City of EI Cajon," and
Deborah Greenfield, SANDAG's attorney, indicated that the Bob Wilson firm has
provided superior service to SANDAG over the eight years of their relationship,
Clients for which they currently work include: 3M, Consumer Attorneys of California,
San Diego Community College District, Sacramento Area Council of Governments,
SANDAG, and the Cities of National City, Poway, Santee and EI Cajon.
In connection with representing these cities, in some cases, there is room for
agreement between Chula Vista and these other cities: on the auto leasing and
housing element issues, Chula Vista joined these agencies in taking a position of
support. However, in the competition for scarce dollars in Sacramento, the committee
felt that Bob Wilson's representation of several other San Diego area governments
could occasionally prove problematic. On the other hand, on issues where Chula Vista
and other cities have had mutual interests (e.g, supplemental subventions),
Advocation has done an excellent job of working with them and/or the League of
California Cities to help achieve Chula Vista's goals,
As an added bit of information, among the largest 100 + lobbyists in Sacramento, the
size of the two firms (based upon compensation received) places Advocation as No.
4 on the list, and the Wilson firm No, 31.
ScoDe of Work
The recommended contract designates Advocation, Inc. as the City/Agency's official
legislative representative with the California State Legislature, the federal delegation
and various governmental agencies, Further, the agreement requires that the
...3-:;;:
Item "L, Page 6
Meeting Date 11/26/96
City/Agency be provided with comprehensive legislative services, including:
1 , Review of all bills introduced in the California Legislature, informing the City of
all State legislation (and Federal legislation as requested) affecting the City's
primary interests and forwarding a copy of such bills to the City;
2. Attending all League of California Cities' regular "City representative" meetings
and briefings;
3. Tracking legislation on which the City has taken a position, maintaining bill
records and sending amended/updated copies regularly to the City;
4. Arranging meetings with legislative representatives for elected officials and City
staff when necessary, and being prepared to participate as required;
5. Performing customary duties of legislative advocacy and governmental affairs
representation on behalf of the client to the best of their ability, experience and
expertise;
6. Gathering data and providing information to the City on such matters as:
a, State agency and department regulations, guidelines, directives, and
other instruments of administrative policy which 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;
7. Representing the City/Agency in meetings with state agencies, boards,
commissions, and legislative bodies;
8. Developing legislative initiatives to assist in the implementation of the
City/Agency's legislative program;
9. Tracking and monitoring propositions and initiatives at the State level and
keeping the City apprised of proposals which impact City services.
1996-97 Leaislative Proaram
With the close of the 1996 Legislative year, which was also the completion of a two-
year legislative session, it is time once again for the City to develop its legislative
goals and objectives for 1997-98, With Council and department head input, staff will
work with our lobbyist to recommend changes to the City's current Legislative
Program and strategize for the 1997-98 program. An information item including draft
..;3. - ~
- .
Item ~, Page 7
Meeting Date 11/26/96
changes to the current program will be circulated soon for Council's consideration or
potential amendments. An amended document is anticipated to be brought forward
for adoption in early January,
Alternative Actions
Another perspective the City Council may keep in mind is that, sometimes a change
of lobbyist can be useful in that, at least among the qualified firms, some have
somewhat different contacts and strengths in Sacramento than others. This would
give a local jurisdiction such as the City of Chula Vista an opportunity to tap into the
different strengths and contacts that another firm would have by occasionally making
a change if that is the desire of the City Council.
On the other hand, staff feels that Advocation provides significantly effective service
with excellent contacts and should be retained as the City's lobbyist,
Another alternative to offering this contract is for the Council to discontinue the
practice of retaining a legislative advocate altogether. This would provide the City
with an annual savings of $66,000 but would greatly diminish Chula Vista's
effectiveness in implementing the goals of the City's Legislative Program. Chula
Vista's success in achieving these goals is directly linked to having a firm in
Sacramento which lobbies on the City's behalf. The ability to obtain legislative
support for funding requests such as the PVEA allocations, or the supplemental
subvention funding would have been severely hampered without the daily assistance
of a representative in Sacramento working to protect Chula Vista's interests. As
noted earlier in this report, the combined efforts of city staff working closely with
Advocation, Inc. has resulted in more than $17 million accruing to the City in the past
two years alone.
FISCAL IMPACT: Per the City's purchasing ordinance, staff negotiated a contract
with the top ranked firm, Advocation has agreed to provide their services at a rate
of $5,100 per month plus expenses not to exceed $400 per month, for a maximum
annual total of $66,000 or a total of $132,000 for the 1997-98 two-year session,
Their previous contract was at a rate of $5,170 plus expenses not to exceed $1,000
per month, for a maximum annual total of $74,040, The negotiated maximum
amount of $66,000 is $8,040 below the previous maximum and is approximately
$3.000 below staff's budgeted estimate (only $69,060 was budgeted this year,
based on historic expense billings and projected savings from the RFP). Sufficient
funds are available in the budget (60% non-departmental, 40% redevelopment) to pay
for this year's portion of the contract, Redevelopment funds support lobbying on such
issues as the veterans home, supplemental subventions, eminent domain and
mobilehome rent control.
Since first contracting for legislative representation in 1986, the City has worked with
two firms. The first was Norbert Dall & Associates, hired specifically to represent the
d-7
- -
ltem~, Page 8
Meeting Date 11 /26/96
Agency on Redevelopment issues (at compensation of $5,000 per month plus
expenses not to exceed $1,200 per month, for a maximum annual total of $74.400).
In 1989, following the evaluation of 15 responses to an RFP for legislative
representation, Chula Vista hired Advocation Inc.. Funds expended to date on the
Advocation contract have ranged from $59,000 to $73,000 per year, depending on
actual expenses, with a total to date of $483,832,
Although the fiscal impacts of many of a lobbyist's efforts can be difficult to estimate
(e,g. issues of land use control, speed limit enforcement, potential civil liability),
Advocation's assistance has provided substantial, concrete savings and benefits. In
previous years, this has included: $12 million in state funds for the Chula Vista
veterans home, legislative enactment and preservation of supplemental subventions
($4 million), $750,000 for alternative fuel programs, $400,000 for the nature center
seawater system, and $226,000 in criminal justice grants.
Continuing fiscal issues will include making cities and agencies whole for state
property tax takeaways (ERAF) begun in 1992-93 ($5.468,513 lost as of 6/96),
protecting franchise fees from potential losses due to deregulation (at least $400,000
in cable fees at risk), protection of potential cost-recovery for the City's $2.4 million
GIS system (as recently threatened by S8 95 and S8 323), and advocating favorable
interpretations of Proposition 218 (up to $1.5 million in transient occupancy tax and
additional sums in assessment districts may be affected),
Attachments: Agreement between City/Agency & Advocation, Inc.
Exhibit A to Agreement between City/Agency & Advocation, Inc.
c:\...\rfp\a113
,3-f:
I .
RESOLUTION NO. I~;(~
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE
CITY OF CHULA VISTA APPROVING THE CONTRACT
WITH ADVOCATION, INC. FOR LEGISLATIVE
REPRESEN-TATION FOR THE 1997-98 LEGISLATIVE
SESSION, AND AUTHORIZING THE CHAIR TO EXECUTE
SAID AGREEMENT ON BEHALF OF THE REDEVELOPMENT
AGENCY
WHEREAS, the current agreement with Advocation, Inc.
expires on December 31, 1996; and
WHEREAS, the city issued a Request for Proposals (RFP) on
September 20, 1996 for qualified firms for legislative represen-
tation for the period January 1, 1997 to December 31, 1999¡ and
WHEREAS, the City received six responses to this RFP¡ and
WHEREAS, following extensive review of the proposals
submi tted to the City, Advocation, Inc. has been selected by an
evaluation team of both in-house and outside raters to be awarded
a contract with three two-year renewal options.
NOW, THEREFORE, BE IT RESOLVED the Redevelopment Agency
of the City of Chula vista does hereby approve the contract with
Advocation, Inc. for legislative representation for the 1997-98
legislative session, a copy of which is on file in the office of
the City Clerk as Document No.------.
BE IT FURTHER RESOLVED that the Chair of the
Redevelopment Agency of the City of Chula vista is hereby
authorized to execute said agreement for and on behalf of the city
of Chula Vista.
Presented by Approved as to form by
C~ ~ yV\ fj-(~
Chris Salomone, Director of Ann Y. Moore, Assistant Ageñcy
Community Development Attorney
C:\rsladvocate.inc
dj - q -~
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RESOLUTION NO. /&,~ð~
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE CONTRACT WITH
ADVOCATION, INC. FOR LEGISLATIVE REPRESEN-
TATION FOR THE 1997-98 LEGISLATIVE SESSION,
AND AUTHORIZING THE MAYOR TO EXECUTE SAID
AGREEMENT ON BEHALF OF THE CITY OF CHULA VISTA
WHEREAS, the current agreement with Advocation, Inc.
expires on December 31, 1996; and
WHEREAS, the city issued a Request for Proposals (RFP) on
September 20, 1996 for qualified firms for legislative represen-
tation for the period January 1, 1997 to December 31, 1999; and
WHEREAS, the City received six responses to this RFP; and
WHEREAS, following extensive review of the proposals
submitted to the City, Advocation, Inc. has been selected by an
evaluation team of both in-house and outside raters to be awarded
a contract with three two-year renewal options.
NOW, THEREFORE, BE IT RESOLVED the City Council of the
City of Chula Vista does hereby approve the contract with
Advocation, Inc. for legislative representation for the 1997-98
legislative session, a copy of which is on file in the office of
the city Clerk as Document No.------.
BE IT FURTHER RESOLVED that the Mayor of the city of
Chula Vista is hereby authorized to execute said agreement for and
on behalf of the City of Chula vista.
Presented by Approved as to form by
U--- N AQ>¡~
Chris Salomone, Director of Ann Y. Moore, Assistant City
Community Development Attorney
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NOV-14-96 THU 15: 12 CITY OF CHULA VISTA FAX NO, 6195855612 P,02
Parties and Recital Page(s)
Agreement between
City of Chula Vista
and
Advocation, Inc.
for Legislative Representation
This agreement ("Agreement"), dated 11/19/96 for the purposes
of reference only, and effective as of the date last executed
unless another date is otherwise specified in Exhibit A, Paragraph
1 is between the City-related entity as is indicated On Exhibit A,
paragraph 2, as such ("City") I whose business form is set forth on
Exhibit A, paragraph 3, and the entity indicated on the attached
Exhibit A, paragraph 4, as Consultant, whose business form is set
forth on Exhibit A, paragraph 5, and whose place of business and
telephone numbers are set forth on Exhibit A, paragraph 6
("Consultant"). and is made with reference to the following facts:
Recitals
Whereas, the City of Chu1a Vista has contracted for
legislative representation since 1986; and,
Whereas, on September 20 1996 the City issued a Request for
Proposals from qualified firms for Legislative Representation
from the period of January 1,1997 through December 31, 1998;
and,
Whereas, the City received six responses to this
solicitation by the final deadline of 5:00pm on October 23, 1996;
and
Whereas, the City staff, in conjunction with qualified,
outside personnel have reviewed and evaluated these proposals;
and
Whereas, based on this evaluation, the reviewing team has
recommended that the City should enter into an agreement with
Advocation, Inc. "Consultant"; 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;
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NOV-14-96 THU 15: 12 CITY OF CHULA VISTA FAX NO. 6195855612 P.03
Obligatory Provisions Pages
NOW, THEREFORE, BE IT RESOLVED that the City and Consultant
do hereby mutually agree as follows:
1. Consultant's Duties
A. General Duties
Consultant shall perform all of the services described on
the attached Exhibit A, Paragraph 7, entitled "General Duties";
and,
B. Scope of Work and Schedule
In the process of performing and delivering said "General
Dutiesn, Consultant shall also perform all of the services
described in Exhibit A, Paragraph 8, entitled" Scope of Work and
Schedule", not inconsistent with the General Duties, according
to, and within the time frames set forth in Exhibit A, Paragraph
8, and deliver to City such Deliverables as are identified in
Exhibit A, Paragraph 8, within the time frames set forth therein,
time being of the essence of this agreement. The General Duties
and the work and deliverables required in the Scope of Work and
Schedule shall be herein referred to as the "Defined Services".
Failure to complete the Defined Services by the times indicated
does not, except at the option of the City, operate to terminate
this Agreement.
c. Reductions in Scope of Work
City may independently, or upon request from Consultant,
from time to time reduce the Defined Services to be performed by
the Consultant unde~ 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 perfo~m
same on a time and materials basis at the rates set forth in the
"Rate Schedule" in Exhibit A, Paragraph 11 (C), unless a separate
fixed fee is otherwise agreed upon. All compensation for
Additional Services shall be paid monthly as billed.
contract. rfp Sto.ndard Form Two PorCy Agreement (Fourr.h R~vi.ion)
November 14, 1996 Page ~
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NOV-14-96 THU 15: 13 CITY OF CHULA VISTA FAX NO, 6195855612 P,04
E. Standard of Care
Consultant, in performing any Services under this agreement,
whether Defined Services Or Additional Services, shall perform in
a manner consistent with that level of care and skill ordinarily
exercised by members of the profession currently practicing under
similar conditions and in similar locations.
F. Insurance
Consultant represents that it and its agents, staff and
subconsultants employed by it in connection with the Services
required to be rendered, are protected against the risk of loss
by the following insurance coverages, in the following categor-
ies, and to the limits specified, policies of which are issued by
Insurance Companies that have a Best's Rating of "A, Class vn 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 inc'1uding Business
Automobile Liability 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 (nCross-liability Coveragen).
Errors and Omissions Insurance or Professional Liabflity
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.
(l) 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 (3D) days written notice
to the Additional Insured.
contract. rip Standard Form Two '.rty Ag".omcnt (Fourth ".vi.ion!
Nove."", 14, 199. ..ge 3
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NOV-14-96 THU 15: 14 CITY OF CHULA VISTA FAX NO, 6195855612 P,05
(2) Policy Endorsements Required.
In order to demonstrate the Additional Insured
Coverage. Primary Coverage and Cross-liability Coverage required
under Consultant's Commercial General Liability Insurance Policy,
Consultant shall deliver a policy endorsement to the City
demonstrating same, which shall be reviewed and approved by the
Risk Manager.
H. Security for Performance. (NOT APPLICABLE)
1. 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
urtderstanding 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
ùpon 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 11, adjacent to the governing compensation relationship
indicated by a "checkmark" next to the appropriate arrangement,
subject to the requirements for retention set forth in paragraph
19 of Exhibit A, and shall compensate Consultant for out of
pocket expenses as provided in Exhibit A, Paragraph 12.
All billings submitted by Consultant shall contain
sufficient information as to the propriety of the billing to
permit the City to evaluate that the amount due and payable
concrac<.r(p Scandard Vcr", Two Þarcy Agree",.n!. IFo"rch Revision)
Novcmbor 14, 19.. .ego 4
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NOV-14-86 THU 15: 15 CITY OF CHULA VISTA FAX NO, 6185855612 P,06
thereunder is proper, and shall specifically contain the City's
account number indicated on Exhibit A, Paragraph 18 (C) to be
charged upon making such payment.
3. Administration of Contract
Each party designates the individuals ("Contract
Administrators") indicated on Exhibit A, Paragraph 13, as said
party's contract administrator who is authorized by said party to
represent them in the routine administration of this agreement.
4. Term.
A. Initial Term
This Agreement shall terminate when the Parties have
complied with all executory provisions hereof.
B. City Renewal Options
The term of this agreement may 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.
5. Liquidated Damages (NOT APPLICABLE)
6. Financial Interests of consultant
A. Consultant is Designated as an FPPC Filer.
If Consultant is designated on Exhibit A, Paragraph 15, as
an "FPPC filer", Consultant is deemed to be a "Consultant" for
the purposes of the Political Reform Act conflict of interest and
disclosure provisions, and shall report economic interests to the
City Clerk on the required Statement of Economic Interests in
such reporting categories as are specified in Paragraph 15 of
Exhibit A, or if none are specified, then as determined by the
City Attorney.
B. Decline to Participate.
Regardless of whether Consultant is designated as an FPPC
Filer, Consultant shall not make, or participate in making or in
any way attempt to use Consultant's position to influence a
governmental decision in which Consultant knows or has reason to
know Consultant has a financial interest other than the
compensation promised by this Agreement which conflicts with the
interests of the City.
contract. rfp Standard Fc,rm Two Party Agreement (Fourth Revision)
November 14. 1... Page 5
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NOV-14-96 THU 15: 15 CITY OF CHULA VISTA FAX NO, 6195855612 P,07
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 notify
the City in advance or as soon as reasonably possible.
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. Should the City or the
Consultant determine that a conflict of interest exists regarding
legislative representation by the Consultant for the City, the
Consultant agrees to continue to represent the City and insure
that other representation is obtained by the third party(s). The
City will not be responsible for any cost borne by the Consultant
as a result of this action.
C, Search to Determine Economic Interests.
Regardless of whether Consultant is designated as an FPPC
Filer, Consultant warrants and represents that Consultant has
diligently conducted a search and inventory of Consultant's
economic interests, as the term is used in the regulations
promulgated by the Fair Political Practices Commission, and has
determined that Consultant does not, to the best of Consultant's
knowledge, have an economic interest which would conflict with
Consultant's duties under this agreement.
D. Promise Not to Acquire Conflicting Interests.
Regardless of whether Consultant is designated as an FPPC
Filer, Consultant further warrants and represents that Consultant
will not acquire, obtain,.or assume an economic interest during
the term of this Agreement which would constitute a conflict of
interest as prohibited by the Fair Political Practices Act.
E. Duty to Advise of Conflicting Interests.
Regardless of whether Consultant is designated as an FPPC
Filer, Consultant further warrants and represents that Consultant
will immediately advise the City Attorney of City if Consultant
learns of an economic interest of Consultant's which may result
in a conflict of interest for the purpose of the Fair Political
Practices Act, and regulations promulgated thereunder.
F. Specific Warranties Against Economic Interests.
Consultant warrants and represents that neither Consultant,
nor Consultant's immediate family members, nor Consultant's
employees or agents ("Consultant Associates") presently have any
interest, directly or indirectly, whatsoever in any property
con<ract,rfp Scandard Form Two Forty Agraernanc (Fo"Yth Revision>
Novomber 14, BOC Page'
...3-1'
NOV-14-96 THU 15: 16 CITY OF CHULA VISTA FAX NO. 6195855612 P.08
which may be the subject matter of the Defined Services, or in
any property within 2 radial miles from the exterior boundaries
of any property which may be the subject matter of the Defined
Services, ("Prohibited Interest"), other than as listed in
Exhibit A, Paragraph 15.
Consultant further warrants and represents that no promise
of future employment, remuneration, consideration, gratuity or
other reward or gain has been made to Consultant or Consultant
Associates in connection with Consultant's performance of this
Agreement. Consultant promises to advise City of any such
promise that may be made during the Term of this Agreement, or
for 12 months thereafter.
Consultant agrees that Consultant Associates shall not
acquire any such Prohibited Interest within the Term of this
Agreement, or for 12 months after the expiration of this
Agreement, except with the written permission of City.
Consultant may not conduct or solicit any business for any
party to this Agreement, or for any third party which may be in
conflict with Consultant's responsibilities under this Agreement,
except with the written permission of City.
7, Hold Harmless
Consultant shall defend, indemnify, protect and hold
harmless the City, its elected and appointed officers and
employees, from and against all claims for damages, liability,
cost and expense (including without limitation attorneys' fees)
arising out of the conduct of the Consultant, or any agent or
employee, subcontractors, or others in connection with the
execution of the work covered by this Agreement, except only for
those claims arising from the sole negligence or sole willful
conduct of the City, its officers, or employees. Consultant's
indemnification shall include any and all costs, expenses,
attorneys' fees and liability incurred by the City, its officers,
agents, or employees in defending against such claims, whether
the same proceed to judgment or not. Further, Consultant at its
own expense shall, upon written request by the City, defend any
such suit or action brought against the City, its officers,
agents, or employees. Consultants' indemnification of City shall
not be limited by any prior or subsequent declaration by the
Consultant.
8. Termination of Agreement for Cause
If, through any cause, Consultant shall fail to fulfill in a
timely and proper manner Consultant's obligations under this
Agreement, or if Consultant shall violate any of the covenants,
contract.rfp or.and.~d Fo%," Two rart,' Agreement (Fcu,'"" ~.vi.icn)
Novëmb.r 14. 1996 Page 7
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NOV-14-96 THU 15:20 CITY OF CHULA VISTA FAX NO. 6195855612 P.01
agreements or stipulations of this Agreement, City shall have the
right to terminate this Agreement by giving written notice to
Consultant of such termination and specifying that the
termination is effective immediately. In that event, all
finished or unfinished documents, data, studies, surveys,
drawings, maps, reports and other materials prepared by
Consultant shall, at the option of the City, become the property
of the City, and Consultant shall be entitled to receive just and
equitable compensation for any work satisfactorily completed on
such documents and other materials up to the effective date of
Notice of Termination, not to exceed the amounts payable
hereunder, and less any damages caused City by Consultant's
breach.
9. Errors and Omissions
In the event that the City Administrator determines that the
Consultants' negligence, errors, or omissions in the performance
of work under this Agreement has resulted in expense to City
greater than would have resulted if there were no stich
negligence, errors, omissions, Consultant shall reimburse City
for any additional expenses incurred by the City. Nothing herein
is intended to limit City's rights under other provisions of this
agreement.
10. Termination of Agreement for Convenience of city
City may terminate this Agreement at any time and for any
reason, by giving specific written notice to Consultant of such
termination and specifying the effective date thereof, at least
thirty (30) days before the effective date of such termination.
In that event, all finished and unfinished documents and other
materials described hereinabove shall, at the option of the City,
become City's sole and exclusive property. If the Agreement is
terminated by City as provided in this paragraph, Consultant
shall be entitled to receive just and equitable compensation for
any satisfactory work completed on such documents and other
materials to the effective date of such termination. Consultant
hereby expressly waives any and all claims for damages or
compensation arising under this Agreement except as set forth
herein.
11. Assignability
The services of Consultant are personal to the City, and
Consultant shall not assign any interest in this Agreement, and
shall not transfer any interest in the same (whether by
assignment or novation), without prior written consent of City.
City hereby consents to the assignment of the portions of the
Defined Services identified in Exhibit A, Paragraph 17 to the
aubconsultants identified thereat as "Permitted Subconsultants".
contract.rfp S<ond,,'d ',..m Two FoUty hgne"en" (Fourth Revision)
Novomb.r 14. H9C puge 8
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NOV-14-96 THU 15:21 CITY OF CHULA VISTA FAX NO. 6195855612 P.02
12. Ownership, Publication, Reproduction and Use of Material
All reports, studies, information, data, statistics, forms,
designs, plans, procedures, systems and any other materials or
properties produced under this Agreement shall be the sole and
exclusive property of City. No such materials or properties
produced in whole or in part under this Agreement shall be
subject to private use, copyrights or patent rights by Consultant
in the United States or in any other country without the express
written consent of City. City shall have unrestricted authority
to publish, disclose (except as may be limited by the provisions
of the Public Records Act), distribute, and otherwise use,
copyright or patent, in whole or in part, any such reports,
studies, data, statistics, forms or other materials or properties
produced under this Agreement.
13. Independent Contractor
City is interested only in the results obtained and
Consultant shall perform as an independent contractor with sole
control of the manner and means of performing the services
required under this Agreement. City maintains the right only to
reject or accept Consultant's work products. Consultant and any
of the Consultant's agents, employees or representatives are, for
all purposes under this Agreement, an independent contractor and
shall not be deemed to be an employee of City, and none of them
shall be entitled to any benefits to which City employees are
entitled including but not limited to, overtime, retirement
benefits, worker's compensation benefits, injury leave or other
leave benefits. Therefore, City will not withhold state or
federal income tax, social security tax or any other payroll tax,
and Consultant shall be solely responsible for the payment of
same and shall hold the City harmless with regard th~reto.
14. Administrative Claims Requirements and Procedures
No suit or arbitration shall be brought arising out of this
agreement, against the City unless a claim has first been
presented in writing and filed with the City and acted upon by
the City in accordance with the procedures set forth in Chapter
1.34 of the Chula Vista Municipal Code, as same may from time to
time be amended, the provisions of which are incorporated by this
reference as if fully set forth herein, and such policies and
procedures used by the City in the implementation of same.
Upon request by City, Consultant shall meet and confer in
good faith with City for the purpose of resolving any dispute
over the terms of this Agreement.
conrracr. rip Sr.nd.rd Fo... 1'<0 P...ty Agr....enr (Fourrh Revision)
Novembsr 14. 19% Pag. 9
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NOV-14-96 THU 15:22 CITY OF CHULA VISTA FAX NO, 6195855612 P,03
15. Attorney's Fees
Should a dispute arising out of this Agreement result in
litigation, it is agreed that the prevailing party shall be
entitled to recover all reasonable costs incurred in the defense
of the claim, including costs and attorney's fees.
16. Statement of Costs
In the event that Consultant prepares a report or document,
or participates in the preparation of a report or document in
performing the Defined Services, Consultant shall include, or
cause the inclusion of, in said report or document, a statement
of the numbers and cost in dollar amounts of all contracts and
subcontracts relating to the preparation of the report or
document.
17. Miscellaneous
A. Consultant not authorized to Represent City
Unless specifically authorized in writing by City, 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 witl1 the State
of California or some other state as a licensed real estate
broker or salesperson. Otherwise, Consultant represents that
neither Consultant, nor their principals are licensed real estate
brokers or salespersons.
C. Notices
All notices, demands or requests provided for or permitted
to be given pursuant to this Agreement must be in writing. All
notices, demands and requests to be sent to any party shall be
deemed to have been properly given or served if personally served
or deposited in the United States mail, addressed to such party,
postage prepaid, registered or certified, with return receipt
requested, at the addresses identified herein as the places of
business for each of the designated parties.
D. Entire Agreement
This Agreement, together with any other w:r'itten document
referred to or contemplated herein, embody the entire Agreement
and understandj,ng between the parties relating to the subject
matter hereof. Neither this Agreement nor any provision hereof
contract. rfp Standa,'d Form Two Party -'~r"emen<: (Fourth Revision!
Novamber H. 10" Page 10
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NOV-14-96 THU 15:22 CITY OF CHULA VISTA FAX NO. 6195855612 P.04
may be amended, modified, waived or discharged except by an
instrument in writing executed by the party against which
enforcement of such amendment, waiver or discharge is sought.
E. Capacity of Parties
Each signatory and party hereto hereby warrants and
represents to the other party that it has legal authority and
capacity and direction from its principal to enter into this
Agreement, and that all resolutions or other actions have been
taken so as to enable it to enter into this Agreement.
F. Governing Law/Venue
This Agreement shall be governed by and construed in
accordance with the laws of the State of California. Any action
arising under or relating to this Agreement shall be brought only
in the federal or state courts located in San Diego County, State
of California, and if applicable, the City of Chula Vista, or as
close thereto as possible. Venue for this Agreement, and
performance hereunder, shall be the City of Chula Vista,
eon<rae<. rfp Standard Forftl Tvo Party Ag<eemen< (Four<h Revision)
Nov"mbar 14. 1996 Paga 11
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NOV-14-86 THU 15:23 CITY OF CHULA VISTA FAX NO, 6185855612 P,05
Signature Page
to
~greement between City of Chula Vista and Advocation, Inc.
for Legislative Representation
IN WITNESS WHEREOF, City and Consultant have executed this
Agreement thereby indicating that they have read and understood
same, and indicate their full and complete consent to its terms:
Dated: , 19 - City of Chula Vista
by:
Shirley Horton, Mayor
Attest:
Beverly Authelet, City Clerk
Approved as to form:
0-- 'f'\.~
Anne Moore, Acting City Attorney
Dated: Advocation, Inc.
By:~ê(-~,9~
[name of person, title] ,
Exhibit List to Agreement
(X) Exhibit A:
contract. rfp Standard Form Two party Agnoment [Fourth Revision)
November U. 1... hgo 12
J-dd-.
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NOV-14-96 THU 15:24 CITY OF CHULA VISTA FAX NO, 6195855612 Po 06
Exhibit A
to
Agreement between
City of Chula Vista
and
Advocation, Inc.
1. Effective Date of Agreement: 11/19/97 - 12/31/98
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
( ) Industrial Development Authority of the City of Chula
Vista, a
( ) Other: a
[insert business form]
("City")
3. Place of Business for City:
City of Chula Vista,
276 Fourth Avenue,
Chula Vista, CA 91910
4. Consultant: 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.
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NOV-14-96 THU 15:24 CITY OF CHULA VISTA FAX NO, 6195855612 P,07
8. Scope of Work and Schedule:
A. Detailed Scope of Work:
1 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 during same.
2 Research and provide information to the City on (a) State
laws or proposed legislation, (b) legislative hearings,
reports and testimony, (c) State regulations/policies,
(d) funding opportunities for proposed City projects, (e)
technical memoranda or reports impacting City operations.
3 Develop strategies to successfully implement the City's
legislative program.
4 Provide sufficient support to aggressively lobby 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 I'elating to those topics and
advocating the City's position with appropriate
legislators or other officials to bring about favorable
consideration of those proposals.
5 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.
6 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.
7 Deliver letters, as directed by the City, to appropriate
committees and members of the Legislature, as well as to
executive departments and/or State officials.
8 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.
9 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.
c"noract.pla Exhibit A to Scanderd Fo,"", .~greement
Nov.mbar 14, 199G ~ -~<f Page 2
NOV-14-96 THU 15:25 CITY OF CHULA VISTA FAX NO. 6195855612 Po 08
10 Draft appropriate bill 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.
B. Date for Commencement of Consultant Services:
( ) Same as Effective Date of Agreement
(X) Other: January 1. 1997
C, Dates or Time Limits for Delivery of Deliverables:
Deliverable No. 1: Weekly status report on those bills
being tracked by City.
Deliverable No. 2: End-of-year report on those bills
being tracked by City.
D. Date for completion of all Consultant services:
December 31, 1998 (unless extended per Council action)
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) Business Automobile Liability Insurance: $1,00,000.
( ) Errors and Omissions insurance: None Required (included
in Commercial General Liabílity coverage).
(x) Errors and Omissions or Professional Liability Insurance:
$1,000,000 (not included in Commercial General Liability
coverage).
(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)
- 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. ( ) 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
contract.pr.a Exhibit A to Standud Form Agreement
November H. 195. ..3 -<=2 S- page 3
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NOV-14-96 THU 15:26 CITY OF CHULA VISTA FAX NO. 6195855612 P.09
forth below:
Single Fixed Fee Amount: , payable as
follows:
Milestone or Event or Deliverable Amount or Percent of Fixed Fee
( ) 1. Interim Monthly Advances. The City shall make
interim monthly advances against the compensation due for
each phase on a percentage of completion basis for each
given phase such that, at the end of each phase only the
compensation for that phase has been paid. Any payments
made hereunder shall be considered as interest free loans
which must be returned to the City if the Phase is not
satisfactorily completed. If the Phase is satisfactorily
completed, the City shall receive credit against the
compensation due for that phase. The retention amount or
percentage set forth in Paragraph 19 is to be applied to
each interim payment such that, at the end of the phase,
the full retention has been held back from the
compensation due for that phase. Percentage of
completion of a phase shall be assessed in the sole and
unfettered discretion by the Contracts Administrator
designated herein by the City, or such other person as
the City Manager shall designate, but only upon such
proof demanded by the City that has been provided, but in
no event shall such interim advance payment be made
unless the Contractor shall have represented in writing
that said percentage of completion of the phase has been
performed by the Contractor. The practice of making
interim monthly advances shall not convert this agreement
to a time and materials bas~s of payment.
B. (X) Phased Fixed Fee Arrangement: monthly payments
For the performance of each phase or portion of the Defined
Services by Consultant as are separately identified below, City
shall pay the fixed fee associated with each phase of Services, in
the amounts and at the times or milestones or Deliverables set
forth. Consultant shall not commence Services under any Phase, and
shall not be entitled to the compensation for a Phase, if City
shall have issued a notice not to proceed to Consultant as to said
Phase.
12 equal monthly payments of: $5,100
plus monthly expenses not to exceed: $400
(as noted in paragraph 12)
Maximum total per month: $5,500
"'JI1tráct.po. Exhihit A to Stondorct FOri" Agr.c..""t
Nov&mber 14, 1990 r,g" .
..;f - c2. ~
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NOV-14-96 THU 15:27 CITY OF CHULA VISTA FAX NO. 6195855612 P,10
( ) 1. Interim Monthly Advances. The City shall make
interim monthly advances against the compensation
due for each phase on a percentage of completion
basis for each given phase such that, at the end of
each phase only the compensation for that phase has
been paid. Any payments made hereunder shall be
considered as interest free loans which must be
returned to the City if the Phase is not
satisfactorily completed. If the Phase is
satisfactorily completed, the City shall receive
credit against the compensation due for that phase.
The retention amount or percentage set forth in
Paragraph 19 is to be applied to each interim
payment such that, at the end of the phase, the
full retention has been held back from the
compensation due for that phase. Percentage of
completion of a phase shall be assessed in the sole
and unfettered discretion by the Contracts
Administrator designated herein by the City, or
such other person as the City Manager shall
designate, but only upon such proof demanded by the
City that has been provided, but in no event shall
such interim advance payment be made unless the
Contractor shall have represented in writing that
said percentage of completion of the phase has been
performed by the Contractor. The practice of
making interim monthly advances shall not convert
this agreement to a time and materials basis of
payment.
c. ( ) Hourly Rate Arrangement
For performance of the Defined Services by Consultant as
herein required, City shall pay Consultant for the productive hours
of time spent by Consultant in the performance of said Services, at
the rates or amounts set forth in the Rate Schedule hereinbelow
according to the following terms and conditions:
(1) () Not-to-Exceed Limitation on Time and Materials
Arrangement
Notwithstanding the expenditure by Consultant of
time and materials in excess of said Maximum Compensation
amount, Consultant agrees that Consultant will perform
all of the Defined Services herein required of Consultant
for $ including all Materials, and other
"reimbursables" ("Maximum Compensation") .
(2) ( ) Limitation without Further Authorization on
Time and Materials Arrangement
ccntrBct-l't4 E.~hibit A to Standard >'orm Agnement
November 14. 19" Page 5
,J-c27
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NOV-14-96 THU 15:27 CITY OF CHULA VISTA FAX NO, 6195855612 p, II
At such time as Consultant shall have incurred time
and materials equal to ("Authorization
Limi t "), Consultant shall not be entitled to any addi-
tional compensation without further authorization issued
in writing and approved by the City. Nothing herein
shall preclude Consultant from providing additional
services at Consultant's own cost and expense.
Rate Schedule
Category of Employee Hourly
of Consultant Name Rate
( ) Hourly rates may increase by H for services
rendered after [month], 19 , if delay in providing
services is caused by City.
12. Materials Reimbursement Arrangement
For the cost of out of pocket expenses incurred by Consultant
in the performance of services herein required, City shall pay
Consultant up to $400 total per month as shown in paragraph 11 for
the expenses set forth below:
( ) None, the compensation includes all costs.
Not to exceed: $400/month
(X) Reports
(X) Copies
(X) Travel
(X) Printing
(X) Postage
(X) Deli very
(X) Long Distance Telephone Charges
(X) Other Actual Identifiable Direct Costs:
- Bill Room copy service
- Computerized bill tracking service
13. Contract Administrators:
City: City Manager or designee, 276 Fourth Avenue, Chula
Vista, CA 91910 (619) 691-5031
Consultant:
Charles L. Cole, President, Advocation, Inc., 1121
"L" Street, Suite 610, Sacramento, CA 95814 (916)
447-8229
14. Liquidated Damages Rate: NOT APPLICABLE
con<r.c~.pc. sxhibir. A co SCondard Form Agnomenc
November 14. 19>6 Page'
..$-c2e'
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NOV-14-96 THU 15:28 CITY OF CHULA VISTA FAX NO, 6195855612 P.12
15. Statement of Economic Interests, Consultant Reporting
Categories, per Conflict of Interest Code:
(X) Not Applicable. Not an FPPC Filer.
( ) FPPC Filer
( ) Category No.1. Investments and sources of income.
( ) Category No. 2. Interests in real property.
( ) Category No. 3. Investments, interest in real
property and sources of income subj ect to the
regulatory, permit or licensing authority of the
department.
( ) Category No. 4. Investments in business entities
and sources of income which engage in land
development, construction or the acquisition or
sale of real property.
( ) Category No. 5. Investments in business entities
and sources of income of the type which, within the
past two years, have contracted with the City of
Chula Vista. (Redevelopment Agency) to provide
services, supplies, materials, machinery or
equipment.
( ) Category No. 6. Investments in business entities
and sources of income of the type which, within the
past two years, have contracted with the designated
employee'~ department to provide s~rvices,
supplies, materials, machinery or equipment.
( ) Category No. 7. Business positions.
( ) List "Consultant Associates" interests in real property
within 2 radial miles of Project Property, if any:
1.6. ( ) Consultant is Real Estate Broker and/or Salesman
17. Permitted Subconsultants:
To be negotiated/approved on a case by case basis. Not
permitted without City approval.
c<>nerace. pu Exhibit A ,0 5ë3ndard Fo"" Agreemene
NOvember H. 19,6 Fage 7
J - .2..-9
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NOV-14-96 THU 15:29 CITY OF CHULA VISTA FAX NO, 6195855612 p, 13
18. Bill Processing:
A. Consultant's Billing to be submitted for the following
period of time:
(X) Monthly
( ) Quarterly
( ) Other:
B. Day of the Period for submission of Consultant's Billing:
( ) First of the Month
(X) 15th Day of each Month
( ) End of the Month
( ) Other: --
c City's Account Number: 100-0730-5298
19. Security for Performance: NOT APPLICABLE
( ) Performance Bond, $
( ) Letter of Credit, $
( ) Other Security:
Type:
Amount: $
( ) Retention. If this space is checked, then
not.withstanding 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:
contract.pta Exhihit A to Standard Form Agreement
November 1<, 199< page.
..3 -,3--0
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