HomeMy WebLinkAboutRDA Packet 1996/05/28
Notice is hereby given that the Mayor of the City of Chula Vista/Chairman of the Redevelopment Agency has called
and will convene a special joint meeting of the Redevelopment Agency/City Council on May 28, 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:
It of ""jUry that I am
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Tuesday,~ay 28,1996 Council Chambers
6:00 p.m. Public Services Building
(immediately following the City Council meeting)
Special Joint Meeting of the Redevelopment Agencv of the City of Chula Vista
CALL TO ORDER
1. ROLL CALL: Agency/Council Members Alevy -' Moot -' Padilla -'
Rindone -' and Chair/Mayor Horton -
BUSINESS
The following item(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. The public may onlv address the A.-encv on Closed Session items prior to
the A.-encv convenin.- the Closed Session. (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 three minutes per individual.
2.A. COUNCIL
RESOLUTION 18319 AUTHORIZING AND DIRECTING THE PREPARATION AND
EXECUTION OF CERTAIN LEASE FINANCING DOCUMENTS,
AUTHORIZING THE PREPARATION AND DISTRIBUTION OF A
PRELIMINARY OFFICIAL STATEMENT IN CONNECTION WITH
THE OFFERING AND SALE OF CERTIFICATES OF PARTICIPATION
RELATING THERETO, AND AUTHORIZING AND DIRECTING
CERTAIN ACTIONS WITH RESPECT THERETO--Certificates of
Participation (COPs) were issued in 1987. Staff was directed in March 1996
to determine feasibility of refunding the COPs and it appears the City/Agency
would benefit by an average savings of more than $50,000 per year on annual
debt service payments as a result of refunding under current market conditions
through the Association of Bay Area Governments Finance Corporation. Staff
recommends approval of the resolutions. (Director of Finance/Treasurer)
Agenda ,2, May 28, 1996
B. AGENCY
RESOLUTION 1501 AUTHORIZING, APPROVING AND DIRECTING EXECUTION OF
CERTAIN DOCUMENTS AND AUTHORIZING AND DIRECTING
CERTAIN ACTIONS WITH RESPECT THERETO
3. REPORT AUDITED FINANCIAL STATEMENTS FOR FISCAL YEAR ENDED
JUNE 30, 1995--Presented for Council! Agency information and acceptance are
the Audited Financial Statements and Management Letters for the fiscal year
ended 6/30/95 as prepared by the independent audit firm of Moreland &
Associates. Also presented is staff's response to the Internal Control
Management Letter. Staff recommends the Council! Agency accept the fiscal
year 1994-95 Financial Statements, Management Letters, and staffresponse to
the Management Letter on Internal Control. (Director of Finance)
4.A. REPORT REPORT ON NATURE CENTER FIJNDING--At its 8/15/95 meeting
Council requested a report regarding alternatives other than loans from the
City or Agency to finance operation and maintenance of the Nature Center.
Staff recommends the Council/Agency accept the report. (Executive Director,
Bayfront Conservancy Trust)
B. COUNCIL
RESOLUTION 18321 [1] RESCINDING COUNCIL RESOLUTION # 18188; [2] ACCEPTING
A $100,000 GRANT FROM THE SAN DIEGO PORT DISTRICT'S
CAPITAL IMPROVEMENT PROGRAM; [3] APPROVING THE
AGREEMENT AND AUTHORIZING THE MAYOR OF THE CITY OF
CHULA VISTA TO EXECUTE AN AGREEMENT WITH THE SAN
DIEGO UNIFIED PORT DISTRICT; AND [4] REAPPROPRIATING
$100,000 TO CIP PROJECT #GG 155 FOR CONSTRUCTION OF A
CIRCULATING SEAWATER SYSTEM AT THE CHULA VISTA
NATURE CENTERnAt its 1/23/96 meeting the Council approved Resolution
#18188 accepting the grant and approved the Agreement which included
language which Port staff initially approved but the Port's Attorney
subsequently responded that language was unacceptable. Staff recommends
approval of the resolution. f4/5ths Vote ReQuired'
C. COUNCIL
RESOLUTION 18322
and
AGENCY
RESOLUTION 1502 AUTHORIZING THE MAYOR/CHAIRMAN TO EXECUTE TWO
AGREEMENTS WITH THE CALIFORNIA STATE COASTAL
CONSERVANCY TO PROTECT THE PUBLIC INTEREST IN THE
SEAWATER SYSTEM, TO PROVIDE PUBLIC ACCESS AND TO
QUALIFY THE BA YFRONT CONSERVANCY TRUST FOR LIMITED
PUBLIC ENTITY TORT IMMUNITY--At its 12/5/95 meeting the Council
approved a $400,000 grant from the State Coastal Conservancy for a flow,
through seawater system. The Conservancy requires execution of two
agreements to protect the public interest prior to release of the grant. Staff
recommends approval of the resolution.
Agenda -3, May 28, 1996
5. AGENCY
RESOLUTION 1503 AUTHORIZING A WAIVER OF OUTSTANDING CONDITIONS TO
CLOSE ESCROW UNDER 2.4a OF THE DISPOSITION AND
DEVELOPMENT AGREEMENT BETWEEN THE REDEVELOPMENT
AGENCY AND BROADWAY VILLAGE BUSINESS HOMES, L.P.,
CONCERNING THE PROVISION OF EVIDENCE OF ACCEPTABLE
CONSTRUCTION FINANCING--Staff has made the determination that San
Diego National Bank's new, conditional loan commitment letter does not meet
all of the requirements of Section 2.4a of the Disposition and Development
Agreement. A waiver of outstanding conditions of the DDA will be necessary
in order to close escrow. Staff recommends that the Agency adopt the
resolution. (Community Development Director)
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.
OTHER BUSINESS
6. DIRECTOR'S/CITY MANAGER'S REPORT(S)
7. CHAIR'S/MAYOR'S REPORT(S)
8. AGENCY/COUNCIL MEMBER COMMENTS
ADJOURNMENT
The meeting will adjourn to the Regular Redevelopment Agency Meeting on June 4, 1996 at 4:00 p.m., immediately
following the City Council meeting, in the City Council Chambers.
......
COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT
The City of Chula Vista, in complying with the Americans With Disabilities Act (ADA), request
individuals who require special accommodations to access, attend, and/or participate in a City meeting,
activity, or service request such accommodation at least forty-eight hours in advance for meetings and
five days for scheduled services and activities. Please contact the Secretary to the Redevelopment
Agency for specific information at 619.691.5047 or Telecommunications Devices for the Deaf (TDD)
at 619.585.5647. California Relay Service is also available for the hearing impaired.
[C:I WP51 IAGENCYIAGENDASIOS,28,96.AGD]
JOINT CITY COUNCIUREDEVELOPMENT AGENCY
AGENDA STATEMENT
Item ~ a., '6--b
Meeting Date 5/28/96
ITEM TITLE: A. Resolution /!3/10f the City of Chula Vista authorizing and
directing the preparation and execution of certain lease financing
documents. authorizing the preparation and distribution of a
preliminary official statement in connection with the offering and
sale of Certificates of Participation relating thereto. and
authorizing and directing certain actions with respect thereto
B. Resolution /50 J of the Redevelopment Agency of the City of
Chula Vista authorizing. approving and directing execution of
certain documents and authorizing and directing certain actions
with respect thereto
SUBMITTED BY: Ol"".,.f Fln"""fT""""~
REVIEWED BY: Executive Directo~ tcJ ~ Sths Vote: Yes _No..Å.._-'
SUMMARY:
In 1987 the Agency issued Certificates of Participation in the amount of $6.600.000
for various purposes. In March. 1996. staff was directed to determine the feasibility
of refunding these COP's. It appears that the City/Agency would benefit by an
average savings of more than $50.000 per year on their annual debt service payments
as the result of a refunding under current market conditions through the Association
of Bay Area Governments Finance Corporation (ABAG).
RECOMMENDATION:
Council: Approve the resolution authorizing the issuance and sale of 1996
Refunding Certificates of Participation to refund the outstanding 1987
Series B Certificates of Participation. approving the related legal
documents in substantially the form presented. including a restated
reimbursement agreement with the Agency. and authorizing and directing
the execution of said documents.
Agency: Approve the resolution approving related legal documents in substantially
the form presented. including a restated reimbursement agreement with
the Agency. and authorizing and directing the execution of said
documents.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable
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Page 2, Item cß. IÄ.- + j,
Meeting Date OS/28/96
DISCUSSION:
In 1987 the Agency issued Certificates of Participation in the amount of $6,600,000
to 1) refinance outstanding Certificates of Participation issued in 1982 to finance the
tri-Ievel parking structure in the downtown business district; 2) finance the Agency's
capital improvement obligation to the County of San Diego for the County's South
County Regional Center, and; 3) finance the construction of the Police communication
center and crime laboratory. This transaction is structured such that the General Fund
is responsible for the annual debt service payments with the Agency responsible to
reimburse the General Fund from available funds for the portion of such payments
attributable to the first two projects listed. There is currently $4,110,000 in
outstanding bonds with an average interest coupon of 8.34% and a final maturity date
of September, 2002. It appears that the City/Agency would benefit by a savings of
more than $50,000 per year on their annual debt service payments as the result of
a refunding under current market conditions with an obtainable average interest rate
of approximately 4.73%.
In order to maximize savings, it is being recommended that the refunding be done as
part of a pooled transaction through ABAG, which will reduce the cost of issuance by
an estimated $25,000 to $35,000. The savings are achieved by sharing Bond
Counsel, printing, and other costs with other local governments issuing debt at the
same time. The General Fund would remain responsible for the annual debt service
payments and the Agency would remain responsible to reimburse the General Fund
for all but that portion of the payments attributable to the Police communication
center and crime lab.
The resolutions approve the Preliminary Official Statement in the form on file, and
authorize it to be distributed in connection with the sale of the Certificates. The
resolutions also authorize the Official Statement to be put in final form once the
Certificates have been sold, and authorize staff to sign on behalf of the City. In
addition, Council is approving the final form of the various documents pursuant to
which the Certificates are issued, including the Indenture of Trust, the Escrow Deposit
and Trust Agreement which governs the mechanics of the refunding, including the
investment of funds in federal securities so as to fully collateralize the 1987
Certificates, the Purchase Agreement with the underwriter{s), a restated
Reimbursement Agreement, which simply replaces the agreement currently in place
for the existing Bonds, requiring the Agency to reimburse the General Fund for all but
that portion of the payments attributable to the Police communication center and
crime lab, etc. Finally, the resolutions authorize staff to take all actions as may be
necessary to close the transaction, including execution of all required closing
documents.
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Page 3. Item cJ. tL.,t. b
Meeting Date OS/28/96
ASCAL IMPACT:
All costs of issuance which are estimated at $80.000. will be paid from the debt
proceeds. including the cost of staff time spent in managing the refunding process.
This should result in less than $5.000 in reimbursement revenue to the General Fund.
Depending on market conditions at the time of sale. average annual debt service
savings to the General Fund should exceed $50.000 through the fiscal year 2002-03.
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1996 REFUNDING CERTIFICATES OF PARTICIPATION
PROJECTED DEBT SERVICE SAVINGS
FISCAL PRIOR DEBT REFUNDING PROJECTED
YEAR SERVICE DEBT SERVICE SAVINGS
1997 $779,790 $660,778 $119,012
1998 $777,165 $728,262 $48,903
1999 $775,697 $729,277 $46,420
2000 $775,250 $727,447 $47,803
2001 $770,532 $728,145 $42,387
2002 $771,035 $726,619 $44,416
2003 $766,237 $722,625 $43,612
TOTAL $5,415,706 $5,023,153 $392,553
AVERAGE $773,672 $717,593 $56,079
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11017,54 HHW:BDQ:kla 05116/96
05/17/96
REIMBURSEMENT AGREEMENT
by and between the
REDEVELOPMENT AGENCY OF 1HE CITY OF CHULA VISTA
and the
CITYOFCHULA VISTA
Dated as of June 1, 1996
(BayfrontfTown Centre Redevelopment Project)
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REIMBURSEMENT AGREEMENT
THIS REIMBURSEMENT AGREEMENT, dated as of June 1, 1996, by and between the
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA (the" Agency") and the CITY
OF CHULA VISTA (the "City");
WITNESSETH:
WHEREAS, the Agency is a dilly constituted redevelopment agency under the laws of
the State of California and pursuant to such laws has dilly proceeded with redevelopment
activities within the Bayfront/Town Centre Redevelopment Project (the "Project Area") within
the City; and
WHEREAS, the redevelopment plan for the Project Area provides for tax increment
financing in accordance with the provisions of Chapter 6, Part I of Division 24 of the California
Health and Safety Code and Section 16 of Article XVI of the Constitution of the State of
California; and
WHEREAS, the Agency is authorized, with the consent of the City Council of the City,
to pay all or part of the value of the land for and the cost of the installation and construction of
any building, facility, structure or other improvements which are publicly owned, upon a
determination by the Agency and said City Council that such buildings, facilities, structures or
other improvements are of benefit to the Project Area; and
WHEREAS, when the value of such land or the cost of the installation and construction
of such building, facility, structure or other improvement, or both, has been or will be paid or
provided for initially by the City, the Agency may enter into a contract with the City under
which it agrees to reimburse the City for all or part of the value of such land or all or part of the
cost of such building, facility, structure or other improvement, or both, by periodic payments
over a period of years; and
WHEREAS, the obligation of the Agency under such contract shall constitute an
indebtedness of the Agency for the purpose of carrying out the redevelopment project for the
Project Area, which indebtedness may be made payable out of taxes levied in the Project Area
and allocated to the Agency under subdivision (b) of section 33670 of the California Health and
Safety Code, or out of any other available funds; and
WHEREAS, the City has undertaken the financing of certain public facilities (the
"Project") a portion of which will be of substantial benefit to the Project Area; and
WHEREAS, the parties hereto in consideration of their mutual undertakings, past and
present, herein and otherwise, desire to provide for repayment by the Agency to the City of the
moneys paid as Lease Payments under and as defined in the Lease Agreement (each as
hereinafter defined), entered into between the ABAG Finance Corporation and the City in the
amounts specified in Exhibit A attached hereto and incorporated herein, which Lease
Agreement provided financing for the Project; and
WHEREAS, the Agency and the City have previously determined by resolution that the
Project is of benefit to the Project Area;
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NOW, THEREFORE, in consideration of the mutual covenants herein contained it is
agreed by and between the parties hereto as follows:
Section 1. Definitions. Unless the context otherwise requires, the terms defined in this
Section 1 shall, for all purposes of this Reimbursement Agreement and of any amendment
hereto, and of any certificate, opiruon, estimate or other document herein mentioned, have the
meanings herein specified. Any capitalized term not defined herein shall have the meaning given
to such term in the Lease Agreement.
"Agency" means the Redevelopment Agency of the City of Chula Vista, a redevelopment
agency and public body, corporate and politic, duly organized and existing under and by virtue
of the laws of the State of California.
"Business Day" means any day of the year other than a Saturday, Sunday or a day on
which banks are authorized or required to be closed in the city in which the Trustee is located.
"Certificates of Participation" or "Certificates" means the $- aggregate principal
amount of Certificates of Participation to be executed and delivered pursuant to the Trust
Agreement and which evidence a right to receive a fractional share of Lease Payments.
"City" means the City of Chula Vista, a chartered city and municipal corporation duly
organized and existing under and by virtue of the Constitution and laws of the State of
Califorrua.
"Corporation" means the ABAG Finance Corporation, a nonprofit, public benefit
corporation, duly organized and existing under and by virtue of the laws of the State of
California.
"Fiscal Year" means each twelve-month period beginning on July 1 of any year and ending
on June 30 of the succeeding year, or any other twelve-month period hereafter adopted by the
City as its official fiscal year period.
"Law" means the Community Redevelopment Law of the State of California,
constituting Part 1 of Division 24 of the California Health and Safety Code and the acts
amendatory thereof and in supplement thereto. Whenever reference is made in this
Reimbursement Agreement to the Law, reference is made to the Law as in force on the date of
the execution of this Reimbursement Agreement, unless the context otherwise requires.
"Lease Agreement" means that certain lease entitled "Lease Agreement" by and between
the Corporation, as lessor, and the City, as lessee, dated as of June 1, 1996.
"Lease Payments" means all amounts paid by the City as lease payments pursuant to
Section 4.4 of the Lease Agreement.
"1994 Bonds" means, collectively, (a) the Redevelopment Agency of the City of Chula
Vista Bayfront/Town Centre Redevelopment Project 1994 Senior Tax Allocation Refunding
Bonds, Series A issued in the aggregate principal amount of $14,810,000, (b) the Redevelopment
Agency of the City of Chula Vista Bayfront/Town Centre Redevelopment Project 1994 Senior
Tax Allocation Refunding Bonds, Series B (Taxable) issued in the aggregate principal amount of
$5,650,000, (c) the Redevelopment Agency of the City of Chula Vista Bayfront/Town Centre
Redevelopment Project 1994 Subordinate Tax Allocation Refunding Bonds, Series C, issued in
the aggregate principal amount of $8,195;0\/', and (d) the Redevelopment Agency of the City of
Chula Vista Bayfront/Tow¡\ Centre":., ,velopment Project 1994 Senior Tax Allocation
Refunding Bonds, Series D, issued in th<: :egate principal amount of $5,680,000
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"Project Area" means the Bayfront/Town Centre Redevelopment Project of the Agency.
"Surplus Revenues" means, in each year, Tax Increment Revenues remaining after
payment in full of the 1994 Bonds.
"Tax Increment Revenues" means all taxes allocated to, and paid into a special fund of
the Agency for the Project Area pursuant to Article 6 of Chapter 6 of the Law and Section 16 of
Article XVI of the Constitution of the State of California, and as provided in the redevelopment
plan for the Project Area, including all payments and reimbursements, if any, to the Agency
specifically attributable to ad valorem taxes lost by reason of tax exemptions and tax rate
limitations, but excluding any amounts required to be paid to other taxing agencies pursuant to
section 33401 of the Law and any amounts required to be used to improve the communities
supply of low or moderate income housing pursuant to Section 33334.2 of the Law.
"Trust Agreement" means that certain agreement entitled "Trust Agreement" by and
among the City, the Corporation and the Trustee, dated as of June 1, 1996.
"Trustee" means First Trust Washington, its successors and assigns, acting as trustee
under the Trust Agreement, or any other entity then performing the function of Trustee under the
Trust Agreement.
Section 2. Reimbursement. Other Payments. Subject to pledges of Tax Increment
Revenues heretofore or hereafter made by the Agency, the Agency and the City agree that, to the
extent necessary but only to the extent available, and not in excess of 55% of the amounts
specified in Exhibit A attached hereto and incorporated herein, in any Fiscal Year, Surplus
Revenues shall be used and applied to repay the City such portion of all current or previously
unreimbursed Lease Payments made by the City to the Agency under the Lease Agreement. In
addition, the Agency may apply other legally available moneys to make repayments hereunder.
This Reimbursement Agreement may be amended from time to time by the parties hereto for any
purpose and with any effect whatsoever.
Section 3. Default by Agençy. If the Agency has available Surplus Revenues and shall
fail to repay the City or shall fail to pay any other payment required to be paid hereunder at the
time specified herein, and such failure shall continue for a period of ten (10) days, then the City
or, if applicable, any assignee, shall be entitled to exercise any and all remedies available
pursuant to law.
Section 4. Remedies Not Exclusive. No remedy herein conferred upon the City shall be
exclusive of any other remedy and each and every remedy shall cumulative and shall be in
addition to every other remedy given hereunder or hereafter conferred on the City.
Section 5. Prior Agreement Terminated. This Agreement is intended to terminate and
supersede that certain Bayfront/Town Centre Repayment Contract, dated as of October 15,
1987, by and between the Agency and the City (the "Prior Reimbursement Agreement");
provided, however, that an amount equal to $- has been paid by the City under the lease
agreement relating to the Prior Certificates (as such term is defined in the Trust Agreement), for
which the Agency agrees constitutes an indebtedness of the Agency for the purpose of carrying
out the redevelopment project for the Project Area, the payment for which shall not be
extinguished by the temùnation of the Prior Reimbursement Agreement.
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IN WITNESS WHEREOF, the parties hereto have executed this Reimbursement
Agreement as of the day and year first above written.
REDEVELOPMENT AGENCY OF THE
CITY OF CHULA VISTA
By
Executive Director
Attest:
Secretary
CITY OF CHULA VISTA
By
City Manager
Attest:
City Clerk
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EXHIBIT A
AMOUNTS 10 BE REIMBURSED
Lease Total
Payment Principal Interest Lease
~ C°It\P°nent C°It\P°nent ~
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11017,54 HHW:BDQ:kIa 05/17/96
REIMBURSEMENT AGREEMENT
by and between the
REDEVELOPMENT AGENCY OF 1HE CITY OF ŒULA VISTA
and the
CITY OF OiULA VISTA
Dated as of June 1, 1996
(Town Centre n Redevelopment Project)
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REIMBURSEMENT AGREEMENT
THIS REIMBURSEMENT AGREEMENT, dated as of June 1, 1996, by and between the
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA (the" Agency") and the CITY
OF CHULA VISTA (the "City");
WITNESSETH:
WHEREAS, the Agency is a duly constituted redevelopment agency under the laws of
the State of California and pursuant to such laws has duly proceeded with redevelopment
activities within the Town Centre IT Redevelopment Project (the "Project Area") within the City;
and
WHEREAS, the redevelopment plan for the Project Area provides for tax increment
financing in accordance with the provisions of Chapter 6, Part 1 of Division 24 of the California
Health and Safety Code and Section 16 of Article XVI of the Constitution of the State of
California; and
WHEREAS, the Agency is authorized, with the consent of the City Council of the City,
to pay all or part of the value of the land for and the cost of the installation and construction of
any building, facility, structure or other improvements which are publicly owned, upon a
determination by the Agency and said City Council that such buildings, facilities, structures or
other improvements are of benefit to the Project Area; and
WHEREAS, when the value of such land or the cost of the installation and construction
of such building, facility, structure or other improvement, or both, has been or will be paid or
provided for initially by the City, the Agency may enter into a contract with the City under
which it agrees to reimburse the City for all or part of the value of such land or all or part of the
cost of such building, facility, structure or other improvement, or both, by periodic payments
over a period of years; and
WHEREAS, the obligation of the Agency under such contract shall constitute an
indebtedness of the Agency for the purpose of carrying out the redevelopment project for the
Project Area, which indebtedness may be made payable out of taxes levied in the Project Area
and allocated to the Agency under subdivision (b) of section 33670 of the California Health and
Safety Code, or out of any other available funds; and
WHEREAS, the City has undertaken the financing of certain public facilities (the
"Project") a portion of which will be of substantial benefit to the Project Area; and
WHEREAS, the parties hereto in consideration of their mutual undertakings, past and
present, herein and otherwise, desire to provide for repayment by the Agency to the City of the
moneys paid as Lease Payments under and as defined in the Lease Agreement (each as
hereinafter defined), entered into between the ABAG Finance Corporation and the City in the
amounts specified in Exhibit A attached hereto and incorporated herein, which Lease
Agreement provided financing for the Project; and
WHEREAS, the Agency and the City have previously determined by resolution that the
Project is of benefit to the Project Area;
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NOW, THEREFORE, in consideration of the mutual covenants herein contained it is
agreed by and between the parties hereto as follows:
Section 1. Definitions. Unless the context otherwise requìres, the terms defined in this
Section 1 shall, for all purposes of this Reimbursement Agreement and of any amendment
hereto, and of any certificate, opinion, estimate or other document herein mentioned, have the
meanings herein specified. Any capitalized term not defined herein sha1l have the meaning given
to such term in the Lease Agreement.
"Agency" means the Redevelopment Agency of the City of Chula Vista, a redevelopment
agency and public body, corporate and politic, duly organized and existing under and by virtue
of the laws of the State of California.
"Business Day" means any day of the year other than a Saturday, Sunday or a day on
which banks are authorized or required to be closed in the city in which the Trustee is located.
"Certificates of Participation" or "Certificates" means the $- aggregate principal
amount of Certificates of Participation to be executed and delivered pursuant to the Trust
Agreement and which evidence a right to receive a fractional share of Lease Payments.
"City" means the City of Chula Vista, a chartered city and municipal corporation duly
organized and existing under and by virtue of the Constitution and laws of the State of
California.
"Corporation" means the ABAG Finance Corporation, a nonprofit, public benefit
corporation, duly organized and existing under and by virtue of the laws of the State of
California.
"Fiscal Year" means each twelve-month period beginning on July 1 of any year and ending
on June 30 of the succeeding year, or any other twelve-month period hereafter adopted by the
City as its official fiscal year period.
"La w" means the Community Redevelopment Law of the State of California,
constituting Part 1 of Division 24 of the California Health and Safety Code and the acts
amendatory thereof and in supplement thereto. Whenever reference is made in this
Reimbursement Agreement to the Law, reference is made to the Law as in force on the date of
the execution of this Reimbursement Agreement, unless the context otherwise requires.
"Lease Agreement" means that certain lease entitled "Lease Agreement" by and between
the Corporation, as lessor, and the City, as lessee, dated as of June 1, 1996.
"Lease Payments" means all amounts paid by the City as lease payments pursuant to
Section 4.4 of the Lease Agreement.
"Project Area" means the Town Centre II Redevelopment Project of the Agency.
"Tax Increment Revenues" means all taxes allocated to, and paid into a special fund of
the Agency for the Project Area pursuant to Article 6 of Chapter 6 of the Law and Section 16 of
Article XVI of the Constitution of the State of California, and as provided in the redevelopment.
plan for the Project Area, including all payments and reimbursements, if any, to the Agency
specifically attributable to ad valorem taxes lost by reason of tax exemptions and tax rate
limitations, but excluding any amounts required to be paid to oth<:',. '-xing agencies pursuant to
section 33401 of the Law and any amounts required to be used .~ J .nprove the communities
supply of low or moderate income housing pursuant to Section 3i;¡-' 2 of the Law.
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"Trusl Agreement" means that certain agreement entitled "Trust Agreement" by and
among the City, the Corporation and the Trustee, dated as of June 1, 1996.
"Trustee" means First Trust Washington, its successors and assigns, acting as trustee
under the Trust Agreement, or any other entity then performing the function of Trustee under the
Trust Agreement.
Section 2. Reimbursement: Other Payments. Subject to pledges of Tax Increment
Revenues heretofore or hereafter made by the Agency, the Agency and the City agree that, to the
extent necessary but only to the extent available, and not in excess of 22-1/2% of the amounts
specified in Exhibit A attached hereto and incorporated herein, in any Fiscal Year, Tax
Increment Revenues shall be used and applied to repay the City such portion of all current or
previously unreimbursed Lease Payments made by the City to the Agency under the Lease
Agreement. In addition, the Agency may apply other legally available moneys to make
repayments hereunder. This Reimbursement Agreement may be amended from time to time by
the parties hereto for any purpose and with any effect whatsoever.
Section 3. Default by Agency. If the Agency has available Tax Increment Revenues and
shall fail to repay the City or shall fail to pay any other payment required to be paid hereunder
at the time specified herein, and such failure shall continue for a period of ten (10) days, then
the City or, if applicable, any assignee, shall be entitled to exercise any and all remedies
available pursuant to law.
Section 4. Remedies Not Exclusive. No remedy herein conferred upon the City shall be
exclusive of any other remedy and each and every remedy shall cumulative and shall be in
addition to every other remedy given hereunder or hereafter conferred on the City.
Section 5. Prior Agreement Terminated. This Agreement is intended to terminate and
supersede that certain Cooperation and Reimbursement Agreement, dated as of September 15,
1987, by and between the Agency and the City (the "Prior Reimbursement Agreement");
provided, however, that an amount equal to $- has been paid by the City under the lease
agreement relating to the Prior Certificates (as such term is defined in the Trust Agreement), for
which the Agency agrees constitutes an indebtedness of the Agency for the purpose of carrying
out the redevelopment project for the Project Area, the payment for which shall not be
extinguished by the termination of the Prior Reimbursement Agreement.
~;)-)7
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IN WITNESS WHEREOF, the parties hereto have executed this Reimbursement
Agreement as of the day and year first above written.
REDEVELOPMENT AGENCY OF THE
CITY OF CHULA VISTA
By
Executive Director
Attest:
Secretary
CITY OF CHULA VISTA
By
City Manager
Attest:
City Clerk
-4'~-}f)
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EXHIBIT A
AMOUNTS TO BE REIMBURSED
Lease Total
Payment Principal Interest Lease
J:!iIœ Component Component ~
E~~t ~- Jq
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This page blank.
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11017,54 JHHW:BDQ:kla 05/01/96
ABAG 36, S€ries A 05/16/96
05/17/96
REDEVELOPMENT AGENCY OF 1HE CITY OF CHULA VISTA
RESOLUTION NO, /50!
A RESOLUTION APPROVING, AUTHORIZING AND DIRECI1NG
EXECUTION OF CERTAIN DOCUMENTS AND AUTHORIZING AND
DIRECI1NG CERTAIN ACTIONS WITH RESPECT 1HERETO
RESOLVED, by the Redevelopment Agency of the City of Chula Vista (the" Agency"):
WHEREAS, the Agency is a duly constituted redevelopment agency under the laws of
the State of California and pursuant to such laws has duly proceeded with redevelopment
activities within the Bayfront/Town Centre Redevelopment Project (the "Bayfront/Town
Centre Project Area") and within the Town Centre IT Redevelopment Project (the "Town Centre
II Project Area" and collectively, the "Project Areas") within the City of Chula Vista (the
"City");
WHEREAS, the redevelopment plans for the Project Areas provide for tax increment
financing in accordance with the provisions of Chapter 6, Part 1 of Division 24 of the California
Health and Safety Code and Section 16 of Article XVI of the Constitution of the State of
California;
WHEREAS, the Agency is authorized, with the consent of the City Council of the City,
to pay all or part of the value of the land for and the cost of the installation and construction of
any buiJding, facility, structure or other improvements which are publicly owned, upon a
determination by the Agency and said City Council that such buildings, facilities, structures or
other improvements are of benefit to the Project Areas;
WHEREAS, when the value of such land or the cost of the installation and construction
of such building, facility, structure or other improvement, or both, has been or will be paid or
provided for initially by the City, the Agency may enter into one or more contracts with the City
under which it agrees to reimburse the City for all or part of the value of such land or all or part
of the cost of such building, facility, structure or other improvement, or both, by periodic
payments over a period of years;
WHEREAS, the obligation of the Agency under such contract or contracts shall
constitute an indebtedness of the Agency for the purpose of carrying out the redevelopment
project for the Project Areas, which indebtedness may be made payable out of taxes levied in
the Project Areas and allocated to the Agency under subdivision (b) of section 33670 of the
California Health and Safety Code, or out of any other available funds;
WHEREAS, the City, working together with the Agency, has heretofore caused certain
certificates of participation (the "Prior Certificates") to be executed and delivered in the
aggregate principal amount of $6,600,000, the proceeds of which were used to finance various
public improvements for the City (the "Project"), which Project is of substantial benefit to the
Project Areas;
WHEREAS, the City and the Agency, in consideration o£,'1eir mutua] undertakings,
past and preSent, desire to provide for repayment by the Agency,') .-1e City of the moneys paid
~ - ;(/
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as Lease Payments under and as defined in the Lease Agreement, dated as of June 1, 1996, by
and between the ABAG Finance Corporation and the City, in the amounts specified in (a) a
Reimbursement Agreement, dated as of June 1, 1996, by and between the Agency and the City
(the "Bayfront/Town Centre Reimbursement Agreement"), the form of which is on file with the
Secretary, and (b) a Reimbursement Agreement, dated as of June 1, 1996, by and between the
Agency and the City (the "Town Centre II Reimbursement Agreement" and, with the
Bayfront/Town Centre Reimbursement Agreement, the "Reimbursement Agreements), the form
of which is on file with the Secretary;
WHEREAS, it is in the public interest and for the public benefit that the Agency
authorize and direct execution of the Reimbursement Agreements and certain other documents
in connection therewith;
NOW, THEREFORE, it is hereby ORDERED and DETERMINED, as follows:
Section 1. The below-enumerated documents, substantially in the forms on file with the
Secretary, be and are hereby approved, and the Chairman, the Executive Director or the
Treasurer, or the designee of any such official, is hereby authorized and directed to execute said
documents, with such changes, insertions and omissions as may be approved by such official,
and the Secretary is hereby authorized and directed to attest to such official's signature:
(a) a termination agreement, by and among the Agency, the City and Wells Fargo Bank,
National Association, as successor to First Interstate Bank of California, as trustee for the Prior
Certificates, relating to the termination of the lease agreement and other documents relating to
the Prior Certificates;
(b) the Bayfront/Town Centre Reimbursement Agreement; and
(c) the Town Centre II Reimbursement Agreement.
Section 2. The Agency hereby finds and determines that (1) the buildings, facilities,
structures, or other improvements to be leased pursuant to the Lease Agreement are of benefit
to the Project Areas or the immediate neighborhood in which the Project Areas are located; (2)
no other reasonable means of financing such buildings, facilities, structures, or other
improvements, are available to the community, and (3) the payment of funds for the acquisition
of land or the cost of buildings, facilities, structures, or other improvements will assist in the
elimination of one or more blighting conditions inside the Project Areas.
Section 3. The Chairman, the Executive Director, the Treasurer, the Secretary and other
officials of the Agency are hereby authorized and directed to execute such other agreements,
documents and certificates as may be necessary to effect the purposes of this resolution.
Section 4. 1his Resolution shall take effect upon its adoption by this Board.
........
-2- ~- ~~
.
I, the undersigned Secretary of the Redevelopment Agency of the City of Chula Vista,
hereby certify that the foregoing is a full, true and correct copy of a resolution duly adopted by
the Agency at a meeting thereof on the 28th day of May, 1996, by the following vote of the
members thereof:
A YES, and in favor thereof: Boàrd Members
NOES: Board Members
ABSENT: Board Members
Secretary
~ ~- ~3
This page blank.
~-~y
11017,54 )HHW:BDQ:kJa 05/01/96
ABAG 36, Series A 05/16/96
05/17/96
OTY OF mULA VISTA. CAlifORNIA
RESOLUTION NO. /ð'J / q
RESOLUTION AUTHORIZING AND DffiECI'lNG '!HE PREPARATION AND
EXECUTION OF CERTAIN LEASE FINANCING DOCUMENTS, AUTHORIZING THE
PREPARATION AND DISTRIBUTION OF A PREUMINARY OmaAL STATEMENT
IN CONNECTION WITH '!HE OFFERING AND SALE OF CERTIFICATES OF
PARTIOPATION RELATING TIIERETO, AND AUTHORIZING AND DIRECTING
CERTAIN ACTIONS WITH RESPECT TIIERETO
RESOLVED, by the City Cmll1cil (the "Council") of the City of Chula Vista, California
(the "City"), as follows:
WHEREAS, the City, working together with the Redevelopment Agency of the City of
Chula Vista (the "Agency"), has heretofore caused certificates of participation to be executed
and delivered in the aggregate principal amount of $6,600,000 (the "Prior Certificates");
WHEREAS, the proceeds of the Prior Certificates were used to finance construction of
various capital improvements (the "Prior Project");
WHEREAS, the City, working together with the ABAG Finance Corporation (the
"Corporation"), proposes to refinance the Prior Project, as more particularly described in the
hereinafter defined Lease Agreement, and it is in the public interest and for the public benefit
that the City authorize and direct execution of the Lease Agreement and certain other financing
documents in connection therewith;
WHEREAS, Project Finance Associates, financial advisor to the City (the "Financial
Advisor"), has been directed to prepare a preliminary official statement containing information
material to the offering and sale of the Certificates described below;
WHEREAS, the Redevelopment Agency of the City of Chula Vista (the "Agency") is a
duly constituted redevelopment agency under the laws of the State of California and pursuant
to such laws has duly proceeded with redevelopment activities within the Bayfront/Town
Centre Redevelopment Project (the "Bayfront/Town Centre Project Area") and within the
Town Centre II Redevelopment Project (the "Town Centre II Project Area" and collectively, the
"Project Areas") within the City ;
WHEREAS, the redevelopment plans for the Project Areas provide for tax increment
financing in accordance with the provisions of Chapter 6, Part 1 of Division 24 of the California
Health and Safety Code and Section 16 of Article XVI of the Constitution of the State of
California;
WHEREAS, the Agency is authorized, with the consent of the City Council of the City,
to pay all or part of the value of the land for and the cost of the ins';aìation and construction of
any building, facility, structure or other improvements which 3,: ?ublicly owned, upon a
~-J.5
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determination by the Agency and said City Council that such buildings, facilities, structures or
other improvements are of benefit to the Project Areas;
WHEREAS, when the value of such land or the cost of the installation and construction
of such building, facility, structure or other improvement, or both, has been or will be paid or
provided for initially by the City, the Agency may enter into one or more contracts with the City
under which it agrees to reimburse the City for all or part of the value of such land or all or part
of the cost of such building, facility, structure or other improvement, or both, by periodic
payments over a period of years;
WHEREAS, the obligation of the Agency under such contract or contracts shall
constitute an indebtedness of the Agency for the purpose of carrying out the redevelopment
project for the Project Areas, which indebtedness may be made payable out of taxes levied in
the Project Areas and allocated to the Agency under subdivision (b) of section 33670 of the
California Health and Safety Code, or out of any other available funds;
WHEREAS, the City, working together with the Agency, has heretofore caused certain
certificates of participation (the "Prior Certificates") to be executed and delivered in the
aggregate principal amount of $6,600,000, the proceeds of which were used to finance various
public improvements for the City (the "Project"), which Project is of substantial benefit to the
Project Areas; and
WHEREAS, the City and the Agency, in consideration of their mutual undertakings,
past and present, desire to provide for repayment by the Agency to the City of the moneys paid
as Lease Payments under and as defined in the Lease Agreement (hereinafter defined), in the
amounts specified in (a) a Reimbursement Agreement, dated as of June 1, 1996, by and between
the Agency and the City (the "Bayfront/Town Centre Reimbursement Agreement"), the form of
which is on file with the City Clerk, and (b) a Reimbursement Agreement, dated as of June 1,
1996, by and between the Agency and the City (the "Town Centre II Reimbursement
Agreement" and, with the Bayfront/Town Centre Reimbursement Agreement, the
"Reimbursement Agreements), the form of which is on file with the City Clerk;
WHEREAS, the documents below specified shall be filed with the City and the members
of the City Council, with the aid of its staff, shall review said documents;
NOW, THEREFORE, it is hereby DECLARED and ORDERED, as follows:
Section 1. Certificates of Participation (ABAG 37, Series A) (the "Certificates") are
hereby authorized to be executed and delivered pursuant to the provisions of the Trust
Agreement, as hereinafter defined; provided, however, the payments of principal and interest
with respect to the Certificates shall create an annual savings of gross debt service in
comparison to the payments of principal and interest with respect to the Prior Certificates of at
least $50,000.
Section 2. The below-enumerated documents be and are hereby approved, and the
Mayor, the City Manager, the Director of Finance, or the designee of any such official, is hereby
authorized and directed to execute said documents, with such changes, insertions and
omissions as may be approved by such official, and the City Clerk is hereby authorized and
directed to attest to such official's signature:
(a) a termination agreement, by and among the City, the Agency and Wells Fargo Bank,
National Association, as successor to First Interstate Bank of California, as truste= for the Prior
Certificates, relating to the termìnation of the lease agreement and certain 0;';': documents
relating to the Prior Certificates;
~ ?;~b
(b) a site and facility lease, between the City, as lessor, and the Corporation, as lessee;
(c) a lease agreement, by and between the Corporation, as lessor, and the City, as lessee
(the "Lease Agreement");
(d) a trust agreement, by and among the Corporation, the City and First Trust
Washington (the "Trustee"), as trustee (the "Trust Agreement"), relating to the financing, and
the execution and delivery of the Certificates;
(e) an escrow trust and deposit agreement, by and between the City and Wells Fargo
Bank, National Association, as escrow bank, pursuant to which the Prior Certificates will be
defeased;
(f) a purchase agreement, by and among certain underwriters to be identified by the
Financial Advisor and approved by the Corporation (the "Underwriters"), and the City relating
to the purchase by the Underwriters of the Certificates, so long as the Underwriters' discount
does not exceed 2%, exclusive of any original issue discount which does not ~epresent
compensation to the Underwriters;
(g) the Bayfront/Town Centre Reimbursement Agreement; and
(h) the Town Centre II Reimbursement Agreement.
Section 3. The City hereby approves the preparation of a Preliminary Official Statement
describing the financing, together with any changes therein or additions thereto deemed
advisable by the Mayor, the City Manager, the Director of Finance, or the designee of any such
official. The City authorizes and directs the Mayor, the City Manager, the Director of Finance,
or the designee of any such official, on behalf of the City, to deem "final" pursuant to Rule
15c2-12 under the Securities Exchange Act of 1934 (the "Rule") the Preliminary Official
Statement prior to its distribution by the Underwriter.
Section 4. The Financial Advisor, on behalf of the City, is authorized and directed to
cause the Preliminary Official Statement to be distributed to such investors and other persons
as may be interested in purchasing the Certificates therein offered for sale if, in its judgment,
such distribution would enhance the marketing of the Certificates.
Section 5. The Mayor, the City Manager, the Director of Finance, or the designee of any
such official, is authorized and directed to cause the Preliminary Official Statement to be
brought into the form of a final official statement (the "Final Official Statement") and to
execute said Final Official Statement, dated as of the date of the sale of the Certificates, and a
statement that the facts contained in the Final Official Statement, and any supplement or
amendment thereto (which shall be deemed an original part thereof for the purpose of such
statement) were, at the time of sale of the Certificates, true and correct in all material respects
and that the Final Official Statement did not, on the date of sale of the Certificates, and does
not, as of the date of delivery of the Certificates, contain any untrue statement of a material
fact with respect to the City or omit to state material facts with respect to the City required to
be stated where necessary to make any statement made therein not misleading in the light of the
circumstances under which it was made. The Mayor, the City Manager, the Director of Finance,
or the designee of any such official, shall take such further actions prior to the signing of the
Final Official Statement as are deemed necessary or appropriate to verify the accuracy thereof.
The execution of the final Official Statement, which shall include such changes and additions
thereto deemed advisable by the Mayor, the City Manager, the Director of Finance, or the
designee of any such official, and such information permitted to be excluded from the
...a< ~-~1
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Preliminary Official Statement pursuant to the Rule, shall be conclusive evidence of the
approval of the final Official Statement by the City.
Section 6. The Final Official Statement, when prepared, is approved for distribution in
connection with the offering and sale of the Certificates.
Section 7. The City Council hereby finds and determines that (1) the buildings, facilities,
structures, or other improvements to be leased pursuant to the Lease Agreement are of benefit
to the Project Areas or the immediate neighborhood in which the Project Areas are located; (2)
no other reasonable means of financing such buildings, facilities, structures, or other
improvements, are available to the community, and (3) the payment of funds for the acquisition
of land or the cost of buildings, facilities, structures, or other improvements will assist in the
elimination of one or more blighting conditions inside the Project Areas.
Section B. The Mayor, the City Manager, the Director of Finance, the City Attorney, the
City Clerk and all other appropriate officials of the City are hereby authorized and directed to
execute such other agreements, documents and certificates as may be necessary to effect the
purposes of this resolution and the financing herein authorized.
Section 9. TIùs Resolution shall take effect upon its adoption by this Council.
........
I, the undersigned City Clerk of the City of Chula Vista, hereby certify that the foregoing
is a full, true and correct copy of a resolution duly adopted by the City Council of the City at a
meeting thereof on the 28th day of May, 1996, by the following vote of the members thereof:
A YES, and in favor thereof: Council Members
NOES: Council Members
ABSENT: Council Members
City Clerk
# J; ~C¿
JOINT COUNCIL/REDEVELOPMENT AGENCY
AGENDA STATEMENT
Item .3
Meeting Date May 28.1996
ITEM TITLE: Audited Financial statements for Fiscal Year ended
June 30, 1995
SUBMITTED BY: Oi~ct= of Fi~nc.~
REVIEWED BY: City Manage~ ~ ~ (4/5ths Vote: Yes_No..lL)
Presented for Council/Agency information and acceptance are the
Audited Financial statements and Management Letters for the fiscal
year ended June 30, 1995, as prepared by the independent audit firm
of Moreland & Associates. Also presented for your acceptance is
staff's response to the Internal Control Management Letter.
RECOMMENDATION: That Council and the Agency accept the fiscal year
1994-95 Financial statements, Management Letters, and the staff
response to the Management Letter on Internal Control.
BOARDS/COMMISSIONS RECOMMENDATION: Not Applicable.
DISCUSSION:
Pursuant to the City Charter section 1017, an annual audit is
performed of the City's financial records by an independent
accounting firm. The firm of Moreland & Associates has examined
the general purpose financial statements of the City of Chula vista
and the Redevelopment Agency, and issued their opinion that those
statements "present fairly, in all material respects, the financial
position of the city and Agency at June 30, 1995, and the results
of operations for the year then ended in conformity with generally
accepted accounting principles."
In order to form a basis for their opinion, Moreland & Associates
evaluated the internal control procedures of the City and issued a
Management Letter discussing what they feel are weaknesses in the
City's internal controls (Attachment A). As indicated in the
attachment, the auditors generally feel improvement is warranted in
the segregation of accounting/clerical duties among staff in order
to discourage/discover wrongdoing, and in Finance Department
management taking a more active role in reviewing the day to day
work performed by staff for control purposes. An example of this
latter concern is the auditor's recommendation for management to
review the reports from both the payroll and vendor payment
processes prior to releasing payments. Staff's response to the
recommendations contained in the Management Letter is included as
Attachment B.
3~)
Page 2, Item 3
Meeting Date 5/28/96
Although these reports are being presented more than four months
earlier than last year's reports, staff recognizes that there is
still a need for significant improvement in the speed with which
they are produced in order to improve their usefulness. The major
factor contributing to the delay is the continued improvement in
the fiscal year-end process and in the reports themselves.
As we work with the independent auditors to improve the reports in
accordance with Generally Accepted Accounting Principles, very time
consuming prior year adjustments are often required. This year,
such enhancements included the reclassification of the
Redevelopment Agency assets, liabilities, fund balances and
activity to more appropriate fund types and the inclusion of the
Bayfront Conservancy Trust and the Transit activities in the city's
General Purpose Financial statements for the first time. Please be
assured that staff will continue to work with the independent
auditors to streamline the year-end process, improve the financial
statements, and present them in a more timely manner.
The accounting firm also produced a Single Audit Report as required
by the Federal Government for grant recipients. This report is
available at your request. In addition to the management letters
attached, the Single Audit Report includes a summary of the City's
federal grants, primarily Community Development Block Grants and
statements of compliance with federal grant regulations. Findings
in this report indicate that there is some improvement warranted in
our documentation of grant expenditures and in the documentation we
require from subrecipients of grant funds. We will take timely
action to address these concerns.
A representative from Moreland & Associates is available to answer
any questions you may have.
FISCAL IMPACT: There is no fiscal impact to the City or Agency
from this action. The contract for the audit services totaled
$39,000 for the year reported.
3-;(
-
610 NEWPORT CENTER DRIVE. SUITE 840
M °C~~!:?u~C ~~ NEWPORT BEACH. CALIFORNIA 92660
(714) 760,9788
2111 PALOMAR AIRPORT ROAD, SUITE 150
CARLSBAD. CALIFORNIA 92009
(619) 431,8476
ATTACHMENT A
December 15, 1995
To the Honorable City Council of the
City of Chula Vista, California
Independent Auditors' Report on the
Internal Control Structure Based on an Audit of
General PUI:pose Financia] Statements
Performed in Accordance With Government Auditing Standards
We have audited the general purpose financial statements of the City of Chula Vista as
of and for the year ended June 30, 1995, and have issued our report thereon dated
December 15, 1995.
We conducted our audit in accordance with generally accepted auditing standards and
Government Auditing Standards. issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the general purpose financial statements are free of material
misstatement
The management of the City of Chula Vista is responsible for establishing and
maintaining an internal control structure. In fulfilling this responsibility, estimates and
judgments by management are required to assess the expected benefits and related costs
of internal control structure policies and procedures. The objectives of an internal control
structure are to provide management with reasonable, but not absolute, assurance that
assets are safeguarded against loss from unauthorized use or disposition, and that
transactions are executed in accordance with management's authorization and recorded
properly to permit the preparation of genera] purpose financial statements in accordance
with generally accepted accounting principles. Because of inherent limitations in any
internal control structure, errors or irregularities may nevertheless occur and not be
detected. Also, projection of any evaluation of the structure to future periods is subject
to the risk that procedures may become inadequate because of changes in conditions or
that the effectiveness of the design and operation of policies and procedures may
deteriorate.
In planning and performing our audit of the general purpose financial statements of the
City of Chula Vista for the year ended June 30, 1995, we obtained an understanding of
the internal control structure. With respect to the internal control structure, we obtained
an understanding of the design of relevant policies and procedures and whether they have
been placed in operation, and we assessed control risk in order to determine our auditing
3~3 ATTACHMENT A
-
To the Honorable City Council of the
City of Chula Vista, California ATTACHMENT A
December 15, 1995
Page 2
procedures for the purpose of expressing our opinion on the general purpose financial
statements and not to provide an opinion on the internal control structure. Accordingly,
we do not express such an opinion.
We noted certain matters listed below involving the internal control structure and its
operation which we consider to be reportable conditions under standards established by
the American Institute of Certified Public Accountants. Reportable conditions involve
matters coming to our attention relating to significant deficiencies in the design or
operation of the internal control structure that, in our judgment, could adversely affect
the City's ability to record, process, summarize, and report financial data consistent with
the assertions of management in the general purpose financial statements.
1. PAYROLL SYSTEM
a. A number of employees including the Payroll Technician, an Accountant, a
Senior Accountant and employees in the Personnel and Data Processing
Departments have the ability to input or change employee data in the payroll
computer system. In addition, no one in the Finance Department
independent of the payroll function reviews payroll changes for accuracy and
proper approval
b. The Payroll Technician has access to both the blank: check stock and the
check signer stamp. No formal documentation is maintained to keep track of
the numerical sequence of checks issued No approval is required for manual
checks under $10,000 prepared by the Payroll Technician.
c. An overall review of payroll transactions is not performed by someone
independent of the payroll function.
We recommend that access to employee data files be limited to certain individuals
and that an employee in the Finance Department independent of the payroll
function review and approve all payroll changes. We also recommend that access
to the check signer stamp be limited to individuals who have no access to the blank:
check stock, that a check log be maintained to account for the numerical sequence
of checks issued, and that all manual checks be approved by someone independent
of the preparer. Finally, an overall review of payroll transactions should be
performed by someone independent of the payroll function, preferably the Finance
Director or Assistant Finance Director.
ATTACHMENT A
3~~
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To the Honorable City Council of the
City of Chula Vista, California ATTACHMENT A
December 15, 1995
Page 3
2. CASH DISBURSEMENTS SYSTEM
a. The Accounts Payable Clerks have access to both the blank: check stock and
the check signer stamp. No formal documentation is maintained to keep track
of the numerical sequence of checks issued. No approval is required for
manual checks under $10,000 prepared by the Accounts Payable Clerks.
b. After signature, checks are returned to the Accounts Payable Clerks for
distribution/mailing. In some instances checks are distributed to the
requesting department rather than mailed to the payee. No review of warrant
packages and/or check register is performed by someone independent of the
accounts payable function.
We recommend that access to the check signer stamp be limited to individuals who
have no access to the blank check stock, that a check log be maintained to account
for the numerical sequence of checks issued, and that all manual checks be
approved by someone independent of the preparer. We also recommend that, after
signature, checks be returned to someone independent of the accounts payable
function for distribution. In addition, checks should be mailed to the payee and not
distn'buted to the requesting departmenL Finally, a review of the warrant packages
and/or check register should be performed by someone independent of the accounts
payable function, preferably the Finance Director or Assistant Finance Director.
3. CASH RECEIPTS SYSTEM
The individuals who handle cash receipts also prepare the daily cash reports and
deposit slips. No review of the daily cash reports and deposit slips is performed by
someone independent of the cash receiving function. In addition, for certain cash
receipts, the receiving and recordkeeping functions are not segregated
We recommend that the preparation of the daily cash reports and deposit slips be
performed by someone who does not receive the cash and/or that a review of the
daily cash reports and deposit slips be performed by someone independent of the
cash receiving function. Finally, the receiving and recordkeeping of all cash receipts
should be segregated.
4. JOURNAL ENTRIES SYSTEM
Journal entries can be used to adjust any accounts in the general ledger. It is,
therefore, important that they be prepared by a limited number of individuals, that
they be supported by the appropriate documentation, and that they be reviewed and
approved by someone independent of the preparer. We noted that journal entries
are not subject to review and approval by someone independent of the preparer.
3;5 ATTACHMENT A
-
To the Honorab]e City Council of the ATTACHMENT A
City of Chula Vista, California
December 15, 1995
Page 4
* * *
A material weakness is a reportable condition in which the design or operation of one or
more of the specific internal control structure elements does not reduce to a relatively low
level the risk that errors or irregularities in amounts that would be material in relation
to the genera] purpose financial statements being audited may occur and not be detected
within a timely period by employees in the normal course of performing their assigned
functions.
Our consideration of the internal control structure would not necessarily disclose all
matters in the internal control structure that might be reportable conditions and,
accordingly, would not necessarily disclose all reportable conditions that are also
considered to be materia] weaknesses as defined above. We believe the reportable
conditions descnbed above in the aggregate are material weaknesses. These conditions
were considered in determining the nature, timing, and extent of the procedures to be
performed in our audit of the financial statements of the City of Chula Vista for the year
ended June 30, 1995.
We also noted other matters of less significance involving the internal control structure
and its operation that we have reported to the management of the City of Chula Vista
in a separate letter dated December 15, 1995.
This report is intended for the information of the City Council, management of the City
of Chula Vista, and the City's federal oversight agency. However, this report is a matter
of public record, and its distribution is not limited.
~ud.~ ~ ~ðC(J~s
3-&; ATTACHMENT A
-
610 NEWPORT CENTER DRIVE. SUITE 840
M oreland &~ NEWPORT BEACH. CALIFORNIA 92660
(714) 760,9788
CERTIFIED PUBLIC ACCOUNTANTS 2111 PALOMAR AIRPORT ROAD, SUITE 150
CARLSBAD, CALIFORNIA 92009
(619) 431-8476
ATTACHMENT A
December 15, 1995
The Honorable City Council
of the City of ChuIa Vista
City of ChuIa Vista
276 Fourth Street
ChuIa Vista, CA 91910
The Honorable City Council:
We have audited the genera] purpose financial statements of the City of ChuIa Vista,
California, for the year ended June 30, 1995, and have issued our report thereon dated
December 15, 1995. Under generally accepted auditing standards, we are providing you
the attached information related to the conduct of our audit.
Our responsibility under generally accepted auditing standards is to express an opinion
on the financial statements of the City based on our audit. In carrying out this
responsibility, we assessed the risk that the financial statements may contain a material
misstatement, either intentional or unintentional, and designed and conducted our audit
to provide reasonable, but not absolute, assurance that misstatements material to the
fmancial statements would be detected. In addition, we considered the internal control
structure of the City to gain a basic understanding of the internal control policies and
procedures in order to design an effective and efficient audit approach, not for the
purpose of providing assurance on the internal control structure.
SillIlificant Accountini Policies
The significant accounting policies of the City are described in note 1 to the general
purpose financial statements. The City has fully implemented Governmental Accounting
Standards Board Statement No. 22, "Accounting for Taxpayer-Assessed Tax Revenues in
Governmental Funds", and has implemented Governmental Accounting Standards Board
Statement No. 14, "The Financia] Reporting Entity". The City has changed its method
of accounting for claims liability during the fiscal year ended June 30, 1995 and has
reclassified certain activities between various fund types.
We noted no significant, unusual transactions during the year, or transactions for which
there is a lack of authoritative guidance or consensus.
3-7 ATTACHMENT A
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The Honorable City Council ATTACHt"IENT A
of the City of Chula Vista
December 15, 1995
Page 2
Manal!ement Jud~ents and Accounting Estimates
Accounting estimates are an integra] part of the financial statements prepared by
management and are based upon management's current judgments. Those judgments are
normally based on knowledge and experience about past and current events and
assumptions about future events. The judgments and estimates which may significantly
effect the City's genera] purpose financial statements include recording a liability for
general liability and workers' compensation claims.
During our audit of the genera] purpose financial statements, we have performed
procedures to determine the reasonableness of the estimates used by management.
These procedures included but were not limited to inquiries of the City Attorney and Risk
Manager. Based on these other procedures performed, we were able to conclude that
the liability recorded by management was reasonable.
Significant Audit Adiustments
As a result of our audit related testwork, we proposed several corrections of the financial
statements that, in our judgment, either individually or in the aggregate, had a significant
effect on the City's financial reporting process.
Other Information in Documents Containing Audited Financial Statements
Our responsibility for other information in documents containing the City's general
purpose financial statements and our report thereon does not extend beyond financial
information identified in our report, and we have no obligation to perform any procedures
to corroborate other information contained in these documents.
Disagreements With Management
There were no disagreements with management on financial accounting and reporting
matters that, if not satisfactorily resolved, would have caused a modification to our report
on the City's 1995 financial statements.
Consultation With Other Accountants
We are not aware of any instances where management has consulted with or obtained
opinions, written or oral, from other independent accountants during the past year that
were subject to the requirements of Statement on Auditing Standards No. 50, Reports on
the Application of Accounting Principles.
3~~ ATTACHMENT A
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The Honorable City Council
of the City of Chula Vista ATTACHMENT A
December 15, 1995
Page 3
Major Issues Discussed With Management Prior to Retention
We generally discuss a variety of matters, including the application of accounting
principles and auditing standards, with management each year prior to retention as the
City's auditors. These discussions occurred in the normal course of our professional
relationship.
Delays in Issuing- the Financial Statements
Although there is always some amount of "familiarization time" encountered during the
first year of an audit engagement, the audit process for the fiscal year ended June 30,
1995, took an inordinate amount of time. This was primarily due to several significant
changes made to the financial statements presentation, such as the reclassification of the
Redeve]opment Agency assets, liabilities, fund balances and activity to more appropriate
fund types and the inclusion of the Bayfront Conservancy Trust and the Transit activities
in the City's General Purpose Financia] Statements.
* * * *
This information is intended solely for the use of the City Council, and should not be used
for any other purpose. However, we understand that this document may be public
information.
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]-g ATTACHMENT A
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3~ O
610 NEWPORT CENTER DRIVE. SUITE e4D
M O~~!~~C f:c~ NEWPORT BEACH. CALIFORNIA 9?660
(714) 760-9788
2111 PALOMAR AIRPORT ROAD. SUITE 150
CARLSBAD. CALIFORNIA 92009
(619) 431-8476
ATTACHMENT A
December 15, 1995
The Honorable City Council of
the City of Chula Vista, California:
We have applied the procedures enumerated below to the accompanying Appropriations
limit Worksheet #6 of the City of Chula Vista, for the year ended June 30, 1995. These
procedures, which were agreed to by the League of California Cities and presented in
their Article XIIIB Appropriations Limitation Uniform Guide]ines, were performed solely
to assist you in meeting the requirements of Section 1.5 of Article XIIIB of the California
Constitution. This report is intended for the information of management and the City
Council. This restriction is not intended to limit the distribution of this report, which is
a matter of public record.
The procedures performed and our findings were as follows:
1. We obtained the completed worksheets (#1 through #7) presented in the Article
XIIIB Appropriations limitation Uniform Guidelines (or other alternative
computations), and determined that the limit and annual adjustment factors were
adopted by resolution of the City Council. We also determined that the population
and inflation options were selected by a recorded vote of the City Council.
2. For the accompanying Appropriations Limit worksheet #6, we added line A, last
year's limit, to line E, total adjustments, and agreed the resulting amount to line F,
this year's limit.
3. We agreed the current year information presented in the accompanying
Appropriations Limit worksheet #6 to the other worksheets described in #1 above.
4. We agreed the prior year appropriations limit presented in the accompanying
Appropriations Limit worksheet #6 to the prior year appropriations limit adopted
by the City Council during the prior year.
Under Article XIIIB Appropriations limitations Uniform Guide]ines, the appropriation
limit may be adjusted each year by two factors, namely, a population and inflation factor.
A City may select either the growth in the City or County population as the population
factor and either the Ca]ifornia per capita income or the increase in non-residential
assessed valuation due to new construction as the inflation factor. The City used the
change in the Ca]ifornia consumer price index for the inflation factor, which is not an
available alternative, and the non-residential assessed valuation due to new construction
for the population factor. Although using the change in the California consumer price
index for the inflation factor caused the calculated limit to be understated the City's
budgeted appropriations were still significantly Jess than the limit.
3~ 1/ ATTACHMENT A
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The Honorable City Council of
the City of Chula Vista ATTACHMENT A
December 15, 1995
Page 2
These agreed-upon procedures are substantially Jess in scope than an audit, the objective
of which is the expression of an opinion on the accompanying Appropriations Limit
worksheet #6. According]y, we do not express such an opinion.
Based on the application of the procedures referred to above, nothing came to our
attention that caused us to believe that the accompanying Appropriations Limit worksheet
#6 was not computed in accordance with Article XIIIB of the California Constitution
except as noted above. Had we performed additional procedures or had we made an
audit of the accompanying Appropriations Limit worksheet #6 and the other completed
worksheets described in #1 above, other matters might have come to our attention that
would have been reported to you. ~"c(a.f~J'
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3-1~ ATTACHMENT A
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CITY OF CHULA VISTA
APPROPRIATIONS liMIT WORKSHEET #6 ATTACHMENT A
Fiscal Year 1994-95
BUDGET
AMOUNT
1$133,470,6431
A. LAST YEAR'S liMIT
B. ADJUSTMENT F ACI'ORS
1. Population % I 4.33%1
2. Inflation % .71%
I 1.05% I
Total Adjustment %
I $6,767,9531
C. ANNUAL ADJUSTMENT
D. OTHER ADJUSTMENTS:
Assumed Responsibility
(Lost Responsibility)
(Transfer to Private)
(Transfer to Fees)
Sub-total 1 - 1
1 $6,767,9531
E. TOTAL ADJUSTMENTS
1$140,238,5961
F. TIllS YEAR'S liMIT
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ATTACHMENT B
COUNCil INFORMATION
DATE: April 24, 1996
TO: Honorab]e Mayor and City Council
VIA: John D. Goss, City Manager
FROM: Robert W. Powell, Director of Finance Jl-f
SUBJECT: RESPONSE TO THE INDEPENDENT AUDITOR'S REPORT ON
INTERNAL CONTROL
The findings and recommendations included in the Auditor's report have been thoroughly reviewed and
considered. The following comments are offered in response to the recommendations:
PAYROLL SYSTEM
Recommendation
"We recommend that access to employee data files be limited to certain individuals and
that an employee in the Finance Department independent of the payroll function review
and approve all payroll changes. We also recommend that access to the check signer
stamp be limited to individuals who have no access to the blank check stock, that a check
log be maintained to account for the numerical sequence of checks issued, and that all
manual checks be approved by someone independent of the preparer. Finally, an overall
review of payroll transactions should be performed by someone independent of the
payroll function, preferably the Finance Director or Assistant Finance Director. "
Resoonse
We agree in concept with all parts of the recommendation. Discussions are underway with Management
Information Services to formulate a plan to strengthen the access controls over who can do what within
the payroll system. We have implemented a more structured segregation of duties surrounding access
to and approval of manual checks, and have assigned a professional staff member the responsibility to
perform a cursory review of overall payroll each payperiod. We will not implement a check log to
account for the numerical sequence of checks issued, since we believe we accomplish the same purpose
when tracking the issuance of each check by number within our check reconciliation system.
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ATTACHMENT B
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CASH DISBURSEMENTS SYSTEM
Recommendation
"We recommend that access to the check signer stamp be limited to individuals who have
no access to the blank check stock, that a check log be maintained to account for the
numerical sequence of checks issued, and that all manual checks be approved by someone
independent of the preparer. We also recommend that, after signature, checks be
returned to someone independent of the accounts payable function for distribution. In
addition, checks should be mailed to the payee and not distributed to the requesting
department. Finally, a review of the warrant packages and/or check register should be
performed by someone independent of the accounts payable function, preferably the
Finance Director or Assistant Finance Director."
Resoonse
These recommendations are very similar to those made on the Payroll System, and again, we generally
concur in concept. The recommendations related to controls over the preparation and approval of
manual checks have been implemented. Only in rare instances will checks be returned to the requesting
department rather than mailed directly to the payee from the Finance Department and check registers
will be reviewed by the professional responsible for supervising the accounts payable function. Again,
we will not be maintaining a numerical Jog of checks issued for the same reasons stated under the
response to the Payroll System recommendations. A]so, system generated checks will continue to be
returned to staff responsible for accounts payable for distribution due to the frequent need to attach
additional documentation, etc., and the lack of other staff available to absorb the additional workload.
CASH RECEIPTS SYSTEM
Recommendation
"We recommend that the preparation of the daily cash reports and deposit slips be
performed by someone who does not receive the cash and/or that a review of the daily
cash reports and deposit slips be performed by someone independent of the cash
receiving function. Finally, the receiving and recordkeeping of aI] cash receipts should
be segregated."
~
Again, we agree in concept, but staffing limitations dictate a slightly different implementation than what
is actually recommended by the Auditors. There are only two staff normally involved in the cash
receiving function. Preparation of the daily cash reports and deposit slips is routinely assigned to one
of these staff, while the review or reconciliation of the cash reports and deposit slips is performed by
the other individual. These responsibilities are currently rotated on a monthly basis. Finally, we have
reminded those departments that routinely collect cash that their daily cash reports are to be reviewed
and signed off by an individual different from the person collecting the cash.
3 ~ J{¡; ATTACHMENT B
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ATTACHMENT B
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JOURNAL ENTRIES SYSTEM
Recommendation
"It is, therefore, important that they Gournal entries) be prepared by a limited number
of individuals, that they be supported by the appropriate documentation, and that they be
reviewed and approved by someone independent of the preparer."
Resoonse
We concur with the recommendation and have implemented such procedures.
We appreciate the professionalism displayed by the Auditors during their work at the City and look
forward to working with them to improve both the system of internal control and the financial
statements. Should you have any questions regarding the actions proposed in this report, please feel
free to contact me.
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JOINT CITY COUNCIL/REDEVELOPMENT AGENCY
AGENDA STATEMENT ItemM ~
Meeting Date 5/28/96
ITEM TITLE: A) Report on Nature Center Funding.
B) Reso]ution /9'32/1) rescinding Council Resolution #18188,
2) accepting a $100,000 grant from the San Diego Port District's
Capita] Improvement Program, 3) approving the agreement
and authorizing the Mayor of the City of Chula Vista to execute
an agreement with the San Diego Unified Port District; and 4)
reappropriating $100,000 to CIP# GG155 for construction of
circulating seawater system at the Chula Vista Nature Center.
C) Resolution / cf:32 ~uthorizing the Mayor to execute two
agreements with the California State Coastal Conservancy to
protect the public interest in the seawater system, to provide
public access and to qualify the BCT for limited public entity tort
immunity.
Agency Reso]ution / S D 2--- authorizing the Chairman to
execute two agreements with the California State Coastal
Conservancy to protect the public interest in the seawater
system, to provide public access and to qualify the BCT for
limited public entity tort immunity.
SUBMITTED BY: Executive Director, Bayfront Conservancy Trust
REVIEWED BY: City Manager f/~ 1&
(4/5ths Vote: Yes for Item B)
ITEM A: At their 8/15/95 meeting, the Chula Vista City Council requested
information on the City's and the developer's obligations to the Bayfront
Conservancy Trust (BCT) and requested a report regarding alternatives other than
loans from the City and Redevelopment Agency to finance the operation and
maintenance of the Chula Vista Nature Center. Item A is the requested report
which is attached to this Agenda Statement and summarized in the discussion
section of this Agenda statement.
ITEM B: At their 1/23/96 meeting, the Chula Vista City Council approved
Resolution #18188 which accepted a grant, appropriated funds and approved an
agreement with the Port District for a $100,000 grant for a seawater system at the
Nature Center. The agreement approved by Council included a phrase in Paragraph
#6 stipulating that the City would operate the system as long as it was economically
feasible. Although Port staff had initially approved the added language, the Port
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Attorney subsequently responded that the addition was unacceptable. This item
recommends acceptance and execution of the original agreement without the
additional phrase.
ITEM C: The Chula Vista City Council approved a $400,000 grant from the State
Coastal Conservancy for a flow-through seawater system at their December 5, 1995
meeting in addition to the $100,000 grant from the San Diego Unified Port District.
The California State Coastal Conservancy is requiring the execution of two
agreements to protect the public interest prior to the release of their $400,000 grant
for the seawater system. The agreements: Agreement To Protect The Public Interest
In Certain Improvements And Development and Agreement To Provide Public
Access And To Qualify Nonprofit Organization For Limited Public Entity Tort
Immunity are attached.
RECOMMENDATION:
A) That Council and Agency accept the attached report on Nature Center
Funding;
B) That Council adopt the resolution: 1) rescinding Resolution #18188; 2)
accepting a $100,000 grant from the Port District; 3) approving the
agreement with Port District; 4) reappropriating $100,000 to CIP Project
#GG155 for construction of a flow-through seawater system and
C) 1) That Council adopt Resolution authorizing the Mayor to
execute the public interest agreements with the State Coastal
Conservancy; 2) That the Agency adopt Resolution authorizing
the Chairman of the Redevelopment Agency to execute the public
interest agreements with the State Coastal Conservancy.
BOARD ¡COMMISSION RECOMMENDATION:
The Bayfront Conservancy Trust(BCT) Board of Directors has authorized and
directed the Executive Director to execute agreements, secure funding and construct
the seawater system as soon as possible.
DISCUSSION:
ITEM A:
At their August 15, 1995 meeting, the City Council requested information on the
City's, Redeve]opment Agency's and developers' obligations to the BCT and
information regarding alternate funding sources. That report is attached and
summarized below. There is more information and eight tables and charts in the
attached full report.
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The Bayfront Conservancy Trust was formed by the Chula Vista City Council in 1985
as a section of the Loca] Coastal Plan. The Environmenta] Management Plans
contained in those documents created the Chu]a Vista Bayfront Conservancy Trust.
The most recent LCP, Local Coastal Plan Resubmittal #8, was adopted by the
California Coastal Commission in January of 1993.
The Redevelopment Agency owns the building and the easement to use the Nature
Center. In December of 1986, the City of Chula Vista and the BCT made a
cooperative agreement for the management and operation of the BCT.
The Board was organized to support a free museum and the Director was hired with
the understanding that the operation and maintenance costs would be covered and
he would raise funds for special projects. Even though the Board felt strongly that
Chula Vista had promised a Free Nature Center, they realized in 1993 that
development would take some time and they needed to reduce the BCT's financial
dependence on the City. The City formalized the Agreements with the BCT in a
comprehensive three party agreement between the City of Chula Vista,
Redevelopment Agency and Chula Vista Bayfront Conservancy Trust for a Lease,
Loan and Operating Agreement for the Chula Vista Nature Center. In May of 1993
the BCT Board of Directors approved the L,L,O & A with the City of Chu]a Vista and
the Redevelopment Agency. That agreement was amended and extended on
August 15, 1995.
Through June 30, 1995, the BCT owed the City Genera] Fund ($1,827,785), the City
Sewer Fund ($46,607) and the Redevelopment Agency ($1,754,285) for a total of
$3,628,677. To date in this fiscal year, the BCT owes an additional $380,504 plus
interest. Therefore the total debt to both the City and Agency, without interest for
this year, is $4,009,181.
Some of the strongest obligations of the City to operate the Nature Center are
covenants to operate contained in Environmental License Plate Grants (ELP) Grants
from the California State Coastal Conservancy. Since 1986, the BCT has received
five Environmental License Plate Grants (ELP) Grants which contain covenants to
operate and maintain the Nature Center until 2009. Three of the five grants and
covenants were approved by the City. These covenants do not, however, specify the
level of operation or funding required.
The Local Coastal Plan (LCP) established the Bayfront Conservancy Trust (BCT) as a
public benefit, nonprofit corporation to enhance, restore, and preserve the
Sweetwater Marsh and to provide free educational programs and facilities at the
Chula Vista Nature Center. It is important to note that the requirements of the LCP
are tied to the plan and not the land. In other words, if the LCP is scrapped or
abandoned, the requirements to support the BCT would disappear as well. However
it is doubtful that the California Coastal Commission would approve a new LCP that
did not provide support for the BCT and Chu]a Vista Nature Center. On March 18,
1993 the California Coastal Commission stated that "the Nature Interpretive Center
and its associated financing plan was included as part of the environmental
management program of the certified LCP". Prior to the issuance of any coastal
development permits for the proposed Midbayfront development, a funding
mechanism for the maintenance, improvement and continued operation of the
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Nature Center incorporating a benefit assessment district or other long-term
method of funding shall be implemented.
The Nature Center is part of the mitigation of the midbayfront development
through the Local Coastal Plan and the Stipulated Settlement. The obligation
created by the LCP is to secure a funding mechanism for the Nature Center before a
Coastal Development Permit can be issued.
In 1986 a lawsuit (Sierra Club and League for Coastal Protection v. John O. Marsh,
Secretary of tire Army, et a/.) challenged the Local Coastal Plan (LCP) of Chula Vista
and the proposed mitigation of the U.S. Army Corps of Engineers Sweetwater Flood
Control Project and the Federal Highway Safety Administration and CaITrans I-
5/SR54 Interchange project. The Stipulated Settlement provided for the operation
of the Nature Center as a public museum; gave the Redevelopment Agency an
easement for permanent access to and operation of the Nature Center, allowed
completion of the Federal Projects; gave the Developer a 404 drainage permit,
excluded any further development of Gunpowder Point; required that the portion of
Gunpowder Point Drive which crosses the marsh be hard-surfaced, utilities
relocated underground and that interpretive trails be established on Gunpowder
Point. It should be noted that neither the City nor the Agency was a party to the
settlement agreement and if we fail to operate the Nature Center the result may
only be the Joss of the easement to the Nature Center.
The California Coastal Commission approved the US Army Corps of Engineers
Consistency Determination which stipulates a nature trail on Gunpowder Point and
an Interpretive Center on Gunpowder Point. The Determination states that these
facilities would provide the public with access consistent with the California Coastal
Act, but there is no specific requirement to operate the Nature Center.
In light of the legal obligations summarized in this section, there are severa]
potential negative consequences of failing to operate the Nature Center. The ELP
grants contain a mandatory obligation to operate the Nature Center until the year
2009. If the City were to attempt to close the Nature Center, the State Conservancy
could sue the City to operate the Center or declare a breech of contract and attempt to
force the city to repay part or all of the grant funds. However, there is nothing in the
ELP grant that specifies the level of operation of the Nature Center. If we did not
operate the Center at all we might forfeit the easements and the right to operate the
Center.
The LCP and documents pertaining to the development of the midbayfront stipulate
the formation of a Bayfront Open Space and Maintenance Assessment District or an
alternate source of funding for the operation and maintenance of the Bayfront
Conservancy Trust. Previous drafts of a DDA for the midbayfront have included an
annual developer payment in the amount of actual costs or $500,000 per year. The
drafts also included an annual cost of living increase of 3% per year. To date the
Beneficial Tax Assessment District has not been formed, but staff is reviewing the
possibility of forming such a district prior to development.
Funding of the Nature Center to date has come partly from corporate sponsors and
donations and mainly from a split between the Chula Vista Redevelopment Agency
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and the City of Chula Vista's General Fund. In 1993 the BCT instituted admission
fees to try reduce the amount of funds loaned by the City and Agency.
The BCT continues to seek funding for the Nature Center from foundations,
corporations and private individuals. In calendar year 1995 we submitted more
than 30 complete proposals. It is important to realize that heretofore, nearly all
fundraising efforts have focused on soliciting funds for new exhibits and special
programs. Less effort has previously been devoted to raising funds for general
operating support. It is harder to raise operating funds because most donors prefer
to support a specific exhibit or program rather than operating expenses.
Consequently we need to reconfigure and expand our fundraising efforts. In
February of 1996, the Nature Center submitted its extensive application for a General
Operating Support Grant (GaS) from the federal Institute of Museum Services.
Since the formation of the Sweetwater Marsh National Wildlife Refuge in 1988, the
US Fish and Wildlife Service has spent Jess than $5,000 on direct enhancement of
the natural resources or visitor improvements. Over the same time period the BCT
has spent more than $350,000, through donations and volunteers, on the Nationa]
Wildlife Refuge. We have made repeated requests and appeals to the US
Department of the Interior and the US Fish and Wildlife Service for support but
have receive nothing from them.
A significant change in our fundraising approach has already been approved by the
Board of Directors. The BCT now includes overhead expenses on all of its grant
applications to help support the day to day operation and maintenance of the
Center. We need to consider either restructuring the BCT Board of Directors into a
more typical, philanthropic, museum Board which gives and raises funds or
creating an additional development Board. The City Council could assist the BCT by
helping the existing Board to create some form of a fundraising body that would be
in charge of development for the institution, and staff will provide a subsequent
report to the Council after this issue has been discussed further with the BCT Board.
It takes several years for a museum to develop support in the community. The
museum must attain a certain stature before it can attract large donations. The
Chula Vista Nature Center, with its Nationa] standing through its accreditation and
reputation of excellence in programs and exhibits, is just coming of age. A]ready in
this fiscal year we have raised $500,000 in grant funds and more than $100,000 in
cash donations. Prior to receipt of tax revenues from the Beneficial Tax Assessment
District, our goal is to earn as much revenue as possible to support operations.
In addition to our efforts to increase revenues we have been taking several actions
to reduce expenditures. In addition to previous cutbacks and extensive use of
volunteers, the proposed FY 1996-97 budget recommends eliminating the Bookstore
Manager position and operating the store with part-time and volunteer staff. We
are also exploring whether to reduce hours of operation.
We also have calculated the projected economic impact of the Center on Chula
Vista. Indirect spending was calculated using a very conservative tourism
multiplier of 2.12. Based on the 20,685 who paid, there was $620,550 in direct
spending and an additional $1,315,566 in indirect spending. The Nature Center
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spends at least a $175,000 a year on goods and services in Chula Vista. In 1994 - 95
the City and Redeve]opment Agency loaned the BCT a total of $434,655 for operation
and maintenance of the Center plus interest on loans from the City. When that
loan amount is subtracted from the projected total economic impact, the Chula
Vista Nature Center had a net positive effect of $1,676,461 on the Chula Vista
economy. These analyses do not support the contention that the Nature Center has
been a continual bleed on the City without any return. The Nature Center enriches
Chula Vista's economy.
Museums matter - we sustain and enrich lives in our community. We help to
enhance Chula Vista's image by demonstrating its recognition of the importance of
its natural resources and the value it places on cultural institutions. The Nature
Center is the only accredited museum in the South Bay. It brings national
recognition of Chula Vista's foresight in natural resource conservation and its
leadership and excellence in cultural enrichment and public education. In many
ways the Nature Center is an educational institution that provides opportunities for
both forma] and informal learning by people of all ages.
ITEM B:
Currently the aquaria and petting pool at the Chula Vista Nature Center are
supplied by a recirculating seawater system that uses water trucked to the site. We
now spend about $1,250 per month to import seawater. More importantly, we are
unable to display severa] species because they are filter feeders which eat plankton.
Microscopic food (phytoplankton and zooplankton) would be available to them in a
flow-through system, but are never present in the required abundance in the
trucked-in water.
Our seawater system was designed to operate as either closed-cycle or open-cycle
(with the addition of an offshore intake). We have been having difficulty
maintaining our fishes and invertebrates because of thermal and chemica] water
quality problems that could also be solved by conversion to a flow-through system.
The flow-through seawater system will provide the Chula Vista Nature Center with
continuous seawater for maintenance of exhibit animals, facilitate educational
programs and allow for credible scientific research.
At their 1/23/96 meeting (Agenda Statement attached), the ChuJa Vista City Council
approved Resolution #18188 which accepted a grant, appropriated funds and
approved an agreement with the Port District for a $100,000 grant for a seawater
system at the Nature Center. The agreement approved by Council included a phrase
in Paragraph #6 stipulating that the City would operate the system as long as it was
economically feasible. Although Port staff had initially approved the added
language, the Port Attorney subsequently responded that the addition was
unacceptable. This item recommends acceptance and execution of the original
agreement. Paragraph #6 of that agreement stipulated that: City will cause BCT, at
its sole cost and expense, to operate and maintain the circulating seawater system.
At the suggestion of the City Attorney, we had added the clause; for as long as the
City determines it is economically feasible. The Port responded that the addition
was unacceptable (see attached 3/25/1996, letter from Manue] 1. Aceves to Jim
Thomson). t/-~
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Subsequently the Port proposed a compromise addition to paragraph #6: In the
event the City determines that it is economically unfeasible to continue to operate
or maintain said system, the City shall at its sole cost and expense remove all
circulating seawater improvements located on District tidelands.
Since the original paragraph (#6) does not specify a time period for which the system
must be operated and most of the seawater system that will be built on Port property
is subtidal, its eventual removal would require marine contractors, divers and
considerable expense. It is the recommendation of City and BCT staff that Council
not accept the proposed addition and simply authorize the Mayor to execute the
original agreement without any modifications.
The reason for the reappropriation of the $100,000 is that rescinding Resolution
#18181 would also rescind the previous appropriation. This is not an additional
appropriation.
ITEM C: The Chula Vista City Council approved a $400,000 grant from the State
Coastal Conservancy for a flow-through seawater system at their December 5, 1995
meeting in addition to the $100,000 grant from the San Diego Unified Port District.
The California State Coastal Conservancy is requiring the execution of two
agreements to protect the public interest prior to the release of their $400,000 grant
for the seawater system. The agreements: Agreement To Protect The Public Interest
In Certain Improvements And Development and Agreement To Provide Public
Access And To Qualify Nonprofit Organization For Limited Public Entity Tort
Immunity are attached.
The public interest agreements are standard formalities required by the State Coastal
Conservancy before they provide funds for public projects. Similar agreements
have been executed for all of our Conservancy grants in the past. These agreements
must be executed before the State will release the $400,000 for the seawater system.
Once they are executed, the Public Interest Agreement must be recorded with the
County Recorders Office.
As with all of the Coastal Conservancy's grants, the agreement to protect the public
interest contained a covenant to operate the project. Originally the Coastal
Conservancy proposed that the agreement contain a covenant to operate the project
for 20 years. After review by the City Attorney and following negotiations with
Conservancy, the covenant to operate was reduced to a 10 year term to run
concurrently with grant agreement #85-083-85-084-A, executed by the Mayor and
City Council, June 24, 1986 (Chula Vista City Council Resolution #12552). That
agreement contains a covenant to maintain and operate the seawater system
through June 30, 2006.
The receipt of this $500,000 in grant funds ($400,000 from the Coastal Conservancy
and $100,000 from the Port District) this year is further evidence of our continual
efforts to seek grants and donations in support of the Nature Center. The
construction of the system will not only greatly improve our exhibit and
educational capabilities it will reduce our annual operations expenses because we
will not have to pay to truck-in water, a savings of $15,000/year. Since this grant and
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the one from the Port will be charged for BCT overhead expenses, they will reduce
the amount of money that the BCT will borrow from the City and Agency to pay for
our operations and maintenance. We now plan to begin construction in September
1996.
FISCAL IMP ACT:
Once the seawater system is operational, it will save the BCT $15,000 per year
because we will not pay to truck-in seawater. There will be some ongoing operation
costs of the new system, but these costs will be significantly less than the $15,000 per
year savings. The grant will help to support the operation of the Nature Center by
providing for overhead expenses and thereby reducing the amount of money
loaned by the City.
All of the funding for this project will come from the grant administered by the
State Coastal Conservancy and funds from the San Diego Unified Port Districts' CIF
program. None of the construction funds is from the City of Chula Vista's General
Fund nor any other City or Redevelopment Agency fund.
H- "I
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'All
RESPONSE TO COUNCIL
REGARDING NATURE CENTER FUNDING
Prepared By
Dr. Stephen Neudecker, Executive Director
Bayfront Conservancy Trust
Chula Vista Nature Center
1000 Gunpowder Point Drive
Chula Vista, CA 91910-1201
~
CHULA VISTA
NATURE
CENTER
===
March 19, 1996
Revised 5/21/96
t1~(
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t/~ If) .
OUTLINE
I. Introduction
II. Formation of the BCT
a. LCP and City Council
b. Ownership and Operation of the Nature Center
ill. Legal Obligations to Support the BCT
a. Covenants to Operate
b. LCP and Mitigation for Midbayfront Deve]opment
c. Stipulated Settlement
d. US ACOE and CalTrans Consistency Determination CD-19-82
IV. Deve]oper's Finical Obligation to BCT
V. Alternative Sources of Funding
VI. Expenses, Revenues and Community Support
VII. Services Provided by BCT
a. Educational and Cultural Institution
b. Focus Attention on Loca] Natural Resources
c. Support and Promote Tourism
d. Restore and Enhance Our Commonwealth
VIII. Economic Impacts on ChuJa Vista
IX. Recent Progress by the BCT
X. Summary
APPENDICES
Table 1. Chronological History of the BCT
Table 2. Attendance/Donation Summary
Table 3. Cash Donations 1987 - 1995
Table 4. Donations of Materials and Services 1987 - 1995
Table 5. Economic Effects of the ChuJa Vista Nature Center
Chart 1. Attendance 1987 - 1995
Chart 2. Annua] Budget 1987 - 1995
Chart 3. Per capita Receipts 1987 - 1995
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I. INTRODUCTION
At their 8/15/95 meeting (Minutes attached), the Chula Vista City Council requested
information on the City's and the developer's obligations to the Bayfront Conservancy Trust
(BCT) and requested a report regarding alternatives other than loans from the Gty and
Redevelopment Agency to finance the operation and maintenance of the OIula Vista Nature
Center. The purpose of this report is to respond to those questions.
California has lost about 90% of its wetlands since the year 1900. OIula Vista has recognized
the value of its wetlands through its commitment at the Nature Center. This commitment is not
only to the education and the environment but to life itself. Conservation of these resources
affects our quality of life both economically and esthetically.
Our purpose is to stress the importance of Southern California's coastal wetlands to migratory
waterfowl and other animals that make their home in wetlands and their associated uplands
through education, refuge restoration and enhancement. In the Sweetwater Marsh there are
seven rare and endangered species. We are working to improve their population status through
habitat enhancement, captive breeding and education.
We believe that facilities in the coastal zone such as the Chula Vista Nature Center will be
responsible for the conservation of important natural resources for the future. We are helping to
educate the public about San Diego County's special habitats, including Coastal Sage Scrub,
Vernal Pools, Eel Grass and Sand Dune communities. Museums matter - we sustain and enrich
lives in our community.
We are fostering a strong environmental ethic in students for the conservation of our natural
resources by providing hands-on participation in the restoration of degraded ecosystems.
While these programs actively aide in the restoration of the marsh and uplands, they also
help to preclude a sense of futility that our planet has already been destroyed by rnan's past
activities. Environmental education programs like these also provide students with a sense of
stewardslùp for natural resources.
II. FORMATION OF THE BCT
A chronological history of the BCT is shown in Table 1 and the annual attendance at the Center
since it opened in 1987 is presented as Chart 1.
The Bayfront Conservancy Trust was formed by the Chula Vista Gty Council in 1985 as a
section of the Local Coastal Plan {Oluia Vista Local Coastal Plan 1984 & 1985 & Chula Vista
Bayfront Specific Plan (Chula Vista Local Coastal Program, Phase III) Section 19.88
Environmental Management Policies and Objectives §19.88.5}. The Environmental Management
Plans contained in those documents created the OIula Vista Bayfront Conservancy Trust
(§19.88.52). The most recent LCP, Local Coastal Plan Resubmittal #8, was adopted by the
California Coastal Commission in January of 1993.
The Bayfront Conservancy Trust was established by § 19.88.5, Environmental Organization and
Administration of the Chula Vista Bayfront Specific Plan. Chula Vista Local Coastal
Program Phase 3, a division of the Chula Vista zoning ordinance title 19-Chula Vista
Municipal Code Amended 11/86. Subsection 19.88.51 established an environmental
organization and administration. Subsection 19.88.52 - Bayfront Conservancy Trust and §
19.88.53 Management Goals and Objectives, establish the goals and objectives. Subsection
19.88.54 Administrative Organization Bayfront Conservancy Trust Governing Board outlined
the administrative organization of the Bayfront Conservancy Trust governing board. Subsection
19.88.55 - Bayfront Conservancy Trust Organization & Functions detailed the structure of the
board. Subsection 19.88.56 - Revenue Sources specified revenue sources to be a Bayfront open
/ 1-/3
space and maintenance assessment district. Other sections of that LCP related to the BeT were:
§ 19.88.57 - Program Definition, § 19.88.58 - Bayfront Management Plan Elements: Initial
Restoration and Clean up, § 19.88.88.59 - Wildlife Habitat Restoration and Enhancement, §
19.88.60 - Bayfront Conservancy Trust Maintenance & Monitoring Programs, § 19.88.61 -
Educational and Interpretive Programs, § 19.88.62 - Staffing, and § 19.88.63 -Development of
Habitat Restoration and Enhancement.
To initiate management of Bayfront resources, the Bayfront Conservancy Trust, a public
nonprofit corporation, was formed by the City in 1985. It will administer funds generated by
the Bayfront Open Space and Conservation District. The LCP established the Bayfront
Conservancy Trust (BeT) as a public benefit, nonprofit corporation to enhance, restore, and
preserve the Sweetwater Marsh and to provide free educational programs and facilities at the
Chula Vista Nature Center. At the same time, developable areas around the marshes were
identified, appropriately zoned and a beneficial tax assessment district was planned to fund
the restoration and enhancement of the marsh and to operate the Chula Vista Nature Center.
The BeT Board was configured as a political entity to address several issues surrounding the
Midbayfront development, and to address a lawsuit regarding the US Army Corps of Engineers'
Sweetwater Flood Control Channel Project and the Federal Highway Administration and
CalTrans SR54/15 Interchange Project. While the Board configuration has proved to be most
effective at resolving regulatory and management issues and has provided good oversight of
museum operations, it has not functioned as a typical museum Board of Directors in that it has
not provided nor raised financial support for the rnuseum.
An easement for the Nature Center and a license for access and utilities was granted by Santa Fe
Land Improvement Company to the Redevelopment Agency of the City of Chula Vista in 1986,
therefore the Redevelopment Agency of the City of Chula Vista owns the building and the
easement to use the Nature Center compound, an area of approximately 3.32 acres. In December
of 1986, the City of Chula Vista and the BeT made a cooperative agreement for the
managernent and operation of the BCT.
The Board was organized to support a free museum and the Director was hired with the
understanding that the 0 & M would be covered and he would raise funds for special projects.
Even though the Board felt strongly that Chula Vista had promised a Free Nature Center,
they realized in 1993 that development would take some time and they needed to reduce the
BCT's financial dependence on the City. At the same time the City realized that some of the
Agreements with the BeT needed to be formalized and prepared a comprehensive three party
agreement between the City of Chula Vista, Redevelopment Agency and Chula Vista Bayfront
Conservancy Trust for a Lease, Loan and Operating Agreement for the Chula Vista Nature
Center which is known as the Lease, Loan, and Operating Agreement (L,L,O & A). In May of
1993 the BeT Board of Directors approved the L,L,O & A with the City of Chula Vista and the
Redevelopment Agency. That agreement was amended and extended on August 15, 1995.
The purpose of the L,L,O & A was to consolidate several different agreements for the operation
and management of the Chula Vista Nature Center into one comprehensive agreement. The
principal facts of the agreements are:
1. The Chula Vista Redevelopment Agency owns the building and leases it to the
Bayfront Conservancy Trust.
2. The Redevelopment Agency owns grants of easement for:
a. Use of the Nature Center compound;
b. Access to the property, and
c. Utility easements to serve the Nature Center
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3. The L,L,O & A is a cooperation agreement for the hiring and management of staff,
loaning of funds to the BCf and provision of other City support services to the BCf.
Through June 30, 1995, the BCT owed the City General Fund ($1,827,785), the City Sewer Fund
($46,607) and the Redeve]opment Agency ($1,754,285) for a total of $3,628,677. To date in this
fiscal year, the BeT owes an additional $380,504 plus interest. Therefore the total debt to both
the City and Agency, without interest for this year, is $4,009,181.
III. LEGAL OBLIGATIONS TO SUPPORT THE BeT
To respond to the Council's inquiry regarding the City's and Agency's legal obligations to the
BeT we reviewed all of the documents we believed to be pertinent and the relevant documents
are discussed below.
a. Covenants to operate the Nature Center
Since 1986, the BCT has received five Environmental License Plate Grants (ELP) Grants from
the California State Coastal Conservancy which contain covenants to operate and maintain
the Nature Center. Of the five ELP grants, the first three were approved by the City. The first
grant agreement, Chula Vista Nature Center Construction Grant (Contract # 85-083-85-084-A),
provided $375,000. It was accepted and executed by the Mayor of Chula Vista and the Chula
Vista City Council on June 24, 1986 (Resolution #12552). With acceptance of that grant, the
City agreed to assume all costs to operate and maintain the Nature Center until June 24, 2006.
The City agreed "to operate and maintain the Project as a Nature Interpretive Center
throughout the term of this Agreement ... The Grantee may be excused from its obligations for
operation and maintenance of the Project during the term of this Agreement only upon the
written approval of the Executive Officer."
Similarly, ELP Grant Contract #87-019 (August 20,1987) was a grant of $150,000 for Nature
Center exhibits. Grant Agreement #87-019 contains a covenant to operate and maintain the
Nature Center until August 20, 2007.
In 1989, the BCT received an ELP grant administered by the California Department of Fish and
Game for $50,000 to construct a greenhouse for wetland restoration projects. That agreement
contains a covenant to operate and maintain the Nature Center until the year 2009.
The covenants do not specify the level of operation, staffing or funding required to meet the
obligation of the covenants.
b. LCP AND MITIGATION FOR MIDBA YFRONT DEVELOPMENT
To initiate management of Bayfront resources, the Bayfront Conservancy Trust, a public
nonprofit corporation, was formed by the City in 1985. It is supposed to administer funds
generated by the Bayfront Open Space and Conservation District. The Local Coastal Plan
(LCP) established the Bayfront Conservancy Trust (BeT) as a public benefit, , nonprofit
corporation to enhance, restore, and preserve the Sweetwater Marsh and to provide free
educational programs and facilities at the Chula Vista Nature Center. At the same time,
developable areas around the marshes were identified, appropriately zoned and a beneficial
tax assessrnent district was planned to fund the restoration and enhancement of the marsh and
the costs of operation and maintenance of the Chula Vista Nature Center.
It is important to note that the requirements of the LCP are tied to the plan and not the land. In
other words, if the LCP is scrapped or abandoned, the requirements to the BCT would disappear
as well. However it is doubtful that the California Coastal Commission would approve a new
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LCP that did not provide support for the BCT and Chula Vista Nature Center. On March 18,
1993 the California Coastal Commission approved the City's LCP Amendment - Resuboùttal
#8. The Commission approval of the LCP stated that "the Nature Interpretive Center and its
associated financing plan was included as part of the environmental management program of
the certified LCP". Prior to the issuance of any coastal development permits for the proposed
Midbayfront development, a funding mechanism for the maintenance, improvement and
continued operation of the Nature Center incorporating a benefit assessment district or other
long-term method of funding shall be implemented.
The Nature Center is part of the oùtigation of the Midbayfront development through the Local
Coastal Plan and the Stipulated Settlement. It is also a recognized public education component
of the Sweetwater Marsh National Wildlife Refuge. The obligation created by the LCP is to
secure a funding mechanism for the Nature Center before a Coastal Development Permit can be
issued.
At their November 26, 1991 meeting the BCT Board of Directors passed a Resolution (#58)
reaffirming the importance of the Beneficial Tax Assessment District to fund the operation of
the Nature Center while serving as model for the world to demonstrate how environmental
groups and developers can cooperate to the rnutual benefit of the environrnent and business. One
of the most innovative and exciting aspects of the LCP was the establishment of the BCT and a
beneficial tax assessment district to fund the marsh restoration and preservation and to operate
the Nature Interpretive Center. This was the first time that a special assessment district was
to be used as a revenue vehicle to fund restoration and education projects simultaneously. The
assessment district is important because those who benefit the most from the natural resources
pay to restore and conserve them; it uses locally-generated revenue to support environmental
enhancement and conservation. In turn, the Nature Center attracts business to the surrounding
development. This is a way to balance the needs of conservation and development without
depending on government funds.
c. Stipulated Settlement
In 1986 a lawsuit (Sierra Club and League for Coastal Protection v. John O. Marsh, Secretary of
the Army, et al.) challenged the Local Coastal Plan (LCP) of Chula Vista and the proposed
oùtigation of the U.S. Army Corps of Engineers Sweetwater Flood Control Project and the
Federal Highway Safety Adoùnistration and CalTrans 1--5/SR54 Interchange project. To settle
those suits, the judge ruled that the landowner (Chula Vista Investment Company) would
convey 280 acres of the marsh to the federal government in exchange for Section 404/10 permits
under the Clean Water and River and Harbors Acts to develop the Midbayfront. Chula Vista
Investment Company transferred 280.3 acres and the State of California transferred 35.5 acres
to make a total of 316 acres. All of the wetlands, Gunpowder Point and the D Street Fill then
became the Sweetwater Marsh National Wildlife Refuge. This conclusion of the law suits in
August of 1988 became known as The Stipulated Settlement.
The Stipulated Settlement provided for the operation of the Nature Center as a public museum;
gave the Redevelopment Agency an easement for permanent access to and operation of the
Nature Center, allowed completion of the Federal Projects; gave the Developer a 404 drainage
peroùt, excluded any further development of Gunpowder Point; required that the portion of
Gunpowder Point Drive which crosses the marsh be hard-surfaced, utilities relocated
underground and that interpretive trails be established on Gunpowder Point.
It should be noted that neither the City nor the Agency was a party to the settlement
agreement and if we fail to operate the Nature Center the result may only be the loss of the
easement to the Nature Center.
d. US ACOE - California Coastal Commission Consistency Determination CD-19-82.
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The California Coastal Commission approved the US Army Corps of Engineers Consistency
Determination which stipulates a nature trail on Gunpowder Point and an Interpretive Center
on Gunpowder Point. The Determination states that these facilities would provide the public
with access consistent with the California Coastal Act, but there is no specific requirement to
operate the Nature Center.
In summary, in light of the legal obligations stated in this section, there are several potential
negative consequences of failing to operate the Nature Center. The ELP grants contain a
mandatory obligation to operate the Nature Center until the year 2009. If the City attempts to
close the Nature Center, the State Conservancy could sue the City to operate the Center or
declare a breech of contract and attempt to force the city to repay part or all of the grant funds.
However, there is nothing in the ELP grant that specifies the level of operation of the Nature
Center. If we did not operate the Center at all we might forfeit the easements and the right to
operate the Center.
IV. DEVELOPER'S FINANCIAL OBLIGATION TO THE BeT
The LCP pertaining to the development of the Midbayfront stipulates the formation of a
Bayfront Open Space and Maintenance Assessment District or an alternate source of funding for
the operation and maintenance of the Bayfront Conservancy Trust. Previous drafts of a DDA for
the Midbayfront have included an annual developer payment in the amount of actual costs or
$500,000 per year. The drafts also included an annual cost of living increase of 3% per year. To
date the Beneficial Tax Assessment has not been formed but staff is reviewing the possibility of
forming one prior to development.
The LCP and the previous Developer Disposition Agreement (DDA) negotiations regarding the
Midbayfront development have included an annual payment of $500,000 for the operation and
maintenance of the Nature Center plus an annual cost of living increase not to exceed 3% per
annum. To date, a DDA, has not been executed. It is the opinion of the City Attorney that a
reduction in funding of (loans to) the OCT would negatively affect our position in future DDA
negotiations. The Coastal Commission sees the Nature Center as an integral part of the LCP
and as important mitigation for the Midbayfront development. It is unlikely that they would
approve any amendment to the LCP that did not provide for the Nature Center.
V. ALTERNATE SOURCES OF FUNDING
Funding of the Nature Center to date has come partly from corporate sponsors and donations and
mainly from a split between the Chula Vista Redevelopment Agency and the City of Chula
Vista's General Fund. The bulk of City and Agency funds have been carried as a loan to the
Bayfront Conservancy Trust to potentially be repaid once the development starts and the Tax
Assessment District cornes on-line. In 1993 the BCT instituted admission fees to try reduce the
amount of funds loaned by the City and Agency.
The OCT continues to seek funding for the Nature Center from foundations, corporations and
private individuals. In calendar year 1995 we submitted more than 30 complete proposals. It is
important to realize that heretofore, nearly all fundraising efforts have focused on soliciting
funds for new exhibits and special programs. Less effort has previously been devoted to raising
funds for general operating support. This is because we expected our annual operations and
maintenance expenses to be covered by the Beneficial Tax Assessment District. It is harder to
raise operating funds because most donors prefer to support a specific exhibit or program rather
than operating expenses. Consequently we need to reconfigure and expand our fundraising
efforts.
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In February of 1996, the Nature Center submitted its extensive application for a General
Operating Support Grant (Gas) from the federal Institute of Museum Services in Washington,
OC. The application requests the maximum allowable amount, $112,000, over a two-year
period. The exhaustive grant application comprises more than 35 pages. The GOS grant is one
of the most competitive in the country and fewer than 10% of the applicants receive funding.
We will receive notification of funding or lack thereof in August of 1996.
The Executive Director of the BCT has met briefly with Congressman Filner to discuss potential
federal support and plans to arrange additional meetings with him and other members of our
federal delegation. We plan to work with the City to expand our efforts with both the state
and federal delegations.
Since the formation of the Sweetwater Marsh National Wildlife Refuge in 1988, the US Fish
and Wildlife Service has spent less than $5,000 on direct enhancement of the natural resources
or visitor improvements. Over the same time period the BCf has spent more than $350,000,
through donations and volunteers, on the National Wildlife Refuge. This includes an $85,000
interpretive trail system and the cleanup and disposal of more that 100 metric tons of steel and
concrete debris. We have made repeated requests and appeals to the US Department of the
Interior and the US Fish and Wildlife Service for support but have received nothing from
them.
A significant change in our fundraising approach has already been approved by the BCT Board
of Directors. The BeT now includes overhead expenses on all of its grant applications to help
support the day to day operation and maintenance of the Center. We also need to consider
either restructuring the BCT Board of Directors into a more typical, philanthropic, museum
Board which gives and raises fund or creating an additional development Board. The City
Council could assist the BeT by helping the existing Board to create some form of a fundraising
body that would be in charge of development for the institution. They could also oversee a
major campaign for operating support and a rnembership drive to increase the number of
members in the Friends of Nlc. Staff will provide a subsequent report on this issue after further
discussion with the BCT Board. Another option for significantly expanding development
efforts would be to hire a full-time Director of Development.
It takes several years for a museum to develop support in the community. The museum must
attain a certain stature before it can attract large donations. The Chula Vista Nature Center,
with its National standing through its accreditation and reputation of excellence in programs
and exhibits, is just coming of age. Already in this fiscal year we have raised $500,000 in grant
funds and more than $100,000 in cash donations. A single, lead gift for the Clapper Rail
Exhibit constituted half of that amount.
Prior to receipt of tax revenues frorn the Beneficial Tax Assessment District, our goal is to earn
as much revenue as possible to support operations. We have already employed several
innovative revenue and marketing ideas. We have received donations through our HomePage
on the World Wide Web. We have used surplus parking meters to earn significant sums. We
have collaborated with a major California dairy to get our logo on 6,000,000 school-lunch milk
cartons. Some of the revenue ideas we are pursuing include:
A. Increased number of admissions
B. Expansion of fee-based programs
C. To increase Friends of NIC Membership.
D. Corporate Sponsors
E. Grants
F. Foundations
G. Fees for overnight parking
{ L(--/f
H. Increase use by SeaCamp, Project exploration
I. Facility rental
J. Birthday party rentals
K. Add overhead costs to all grants
L. Hire a Development Director to increase donations
M. Apply for Gas grant
N. Sell native plants grown in greenhouse
O. Encourage USF&WS to participate in funding
P. Seek collaborative funding from: Sea World, SDUPD, SDNHM
Q. Seek affiliation with EarthShare
R. Send out an appeal for funds to all members and past donors
S. Use HomePage on Internet for fundraising
T. Restructure Board to be more typical of museums with philanthropic clout or form a
special development Board
U. Start Adopt-an-Animal and/or exhibit programs
V. United Way/CHAD - Earth Share
X. Over-night truck parking
Y. Increase advertising through press coverage
DECREASE EXPENSES
In addition to our efforts to increase revenues and thereby reduce the amount of money loaned to
the OCT by the City and Agency we are taking several actions to reduce expenditures. Some of
the management actions we are either exploring or employing are:
A. Eliminate bookstore manager and operate the store with part-time and volunteer staff
B. Reduce hours of operation
C. Recycle, reuse and conserve
VI. EXPENSES, REVENUES AND COMMUNITY SUPPORT
The annual budget of the OCT is currently about $470,000 and has ranged from $330,830 to
$497,670. Chart 2 shows the annual budget for the BCf since 1987. Special projects and exhibits
are not included in those numbers. Table 2 is a summary of attendance and donations at the
Nature Center.
The Chula Vista Nature Center has been successful in large part because of the strong
community we have received. Citizens and businesses has provided both cash and materials
and services in support of our exhibits and programs. Table 3 shows that a total of $1,555,355.18
in cash was donated between 1987 and 1995. Table 4 shows that $365,200 worth of materials
and services were donated between 1987 and 1995.
The Nature Center has received strong support from a crew of about 125 volunteers. These
volunteers assist with all aspects of the operation and maintenance of the Nature Center.
Volunteers gave 21,669 hours in 1994-95; 10,845 hours so far this fiscal year and 107,806 hours
since 1987.
In addition to admissions, revenue is earned on fee-based programs, overnights, bookstore sales
and facility rentals. Chart 3 presents the Per Capita income at the door which has increased
from 6~ per person in 1987 to $1.13 per person last year.
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We spend significant amounts of time on fundraising. In addition to all of our other job
responsibilities, we prepare at least 20 requests for support and grant applications every year.
Additional fundraising ideas are summarized in the previous section.
VII. SERVICES PROVIDED BY THE BCT
Museums matter - we sustain and enrich lives in our community. Until the opening of the
Olympic Training Center, the Chula Vista Nature Center has been the only destination-
location in the City. We help to enhance Chula Vista's image by demonstrating its recognition
of the importance of its natural resources and the value it places on cultural institutions. The
Nature Center is the only accredited museum in the South Bay. It brings national recognition of
Chula Vista's foresight in natural resource conservation and its leadership and excellence in
cultural enrichment and public education. In many ways the Nature Center is an educational
institution that provides opportunities for both formal and informal learning by people of all
ages.
Our purpose is to stress the importance of Southern California's coastal wetlands to migratory
waterfowl and other animals that make their home in wetlands and their associated uplands
through education, refuge restoration and enhancement. In the Sweetwater Marsh there are
seven rare and endangered species. We are working to irnprove their population status through
habitat enhancement, captive breeding and education.
We believe that facilities in the coastal zone such as the Chula Vista Nature Center will be
responsible for the conservation of important natural resources for the future. We are helping to
educate the public about San Diego County's special habitats, including Coastal Sage Scrub,
Vernal Pools, Eel Grass and Sand Dune communities.
We are fostering a strong environmental ethic in students for the conservation of these natural
resources by providing hands-on participation in the restoration of degraded ecosystems.
While these programs actively aide in the restoration of the marsh and uplands, they also
help to preclude a sense of futility that our planet has already been destroyed by man's past
activities. Environmental education programs like these also provide students with a sense of
stewardship for these important natural resources.
VIII. ECONOMIC IMPACTS ON CHULA VISTA
In response to concerns that have been expressed that the Nature Center has been a continual
bleed on the City budget with no return, we decided to calculate the projected positive economic
impact of the Center on Chula Vista. We used data and methods provided by the American
Association of Museums (Wilcoxon, S.K. 1991. Museum News 12-91) and the San Diego
Convention and Visitors Bureau to calculate both Direct and Indirect spending by visitors.
We used a conservative assumptions in our calculations and did not include our volunteers.
Inclusion of staff and volunteer spending would result in increasing the total economic impact of
the Center on Chula Vista. Indirect spending was calculated using a very conservative tourism
multiplier of 2.12 provided by ConVis rather than the multiplier between 6 and 8 as suggested
by Wilcoxon. Table 5 presents the results of those calculations and shows that while 41,228
persons visited the Chula Vista Nature Center in 1994 - 95, only 20,685 paid admission. School
children are not included. When we based our numbers on the 20,685 who paid, they provided
$620,550 in direct spending and an additional $1,315,566 in indirect spending. The Nature
Center spends at least a $175,000 a year on goods and services in Chula Vista. Using those
rnethods and data, the total economic effect of the Nature Center on Chula Vista's economy in
1994 - 95 was $2,111,116 (Table 5).
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During 1994 - 95 the City and Redevelopment Agency of Chula Vista loaned the OCT a total of
$434,655 for operation and maintenance of the Center plus interest on loans from the City.
When that loan amount is subtracted from the total economic impact the Chula Vista Nature
Center had a net positive effect of $1,676,461 on the Chula Vista economy. These analyses do
not support the contention that the Nature Center has been a continual bleed on the City
without any return. The Nature Center enriches Chula Vista's economy.
IX. RECENT PROGRESS OF THE BCT
While the staff of the Nature Center is srnall, we are very productive. To illustrate the scope
of our activities, we prepared a list of activities for our Board of Directors. This is a partial
list of projects completed in 1994 - 95, major projects in progress, workshops we have hosted and
attended, collaborative projects and partners, Boards and Commissions we serve on and
consultations we have given. The list is more representative than comprehensive. We have
published many articles in various local and national publications and a chapter in the book,
The New Earth Keepers. We are presenting this information to indicate the extent of our
activities.
MAJOR PROJECTS COMPLETED 1994 - 95
Shuttle Bus Station
Road Surfacing
Began using trolleys
Replaced eelgrass exhibit tank
Constructed additional Clapper rail holding cage
Interpretive Trails
Opened July 4, 1994
Surfaced trails with gravel
Planted more than 200 native plants
Installed plant ID tags
Installed an Ethernet Network
Burrowing Owl Births (5)
MAJOR PROJECTS STARTED OR IN PROGRESS 1994 - 95
Used Oil Grant
OIay Ranch Preserve Owner/Manager (paM), Leader of collaborative team including Natural
History Museum and Zoological Society
Revegetation of Gunpowder Point Trails with native plants and Trail Improvements
Home Page on the World Wide Web (WWW)
Opened Second Art Exhibition - called Sea Reflections
Exhibited Endangered Wildlife Quilts
Clapper Rail Captive Propagation
Flow-through Seawater System Funding
Clapper Rail Fundraising
Hosting of NMEA National Conference Event
Fencing along railroad tracks
Efficient lighting retrofit
Burrowing Owl Breeding and Release
NEW PROJECTS
Jellyfish Exhibit
Clapper Rail Fundraising over Internet
/' ~ - ;2-/
Seek American Zoo and Aquarium (AZA) Accreditation
COLLABORATIVE PROGRAMS
United States Fish and Wildlife Service
us Coast Guard
US Navy
California Department of Fish and Game
San Diego County Parks
California State Parks
San Diego Unified Port District
City of Chula Vista
California Coastal Commission
San Diego Bay Water Quality Task Force
Association of Nature Center Administrators
American Association of Museums
Museum Assessment Project
Accreditation Committee
San Diego Natural History Museum
Stephen Birch Aquarium
San Diego Zoological Society
Stephen Birch Aquarium
Sea World
Orange County Marine Institute
Monterey Bay Aquarium
San Diego Audubon
San Field Ornithologists
Point Reyes Bird Observatory
San Diego State University
Southwestern College
Chula Vista City Schools
Sweetwater Union High School District
Grossmont College
San Diego City College
The Advertising Arts College
San Diego Environmental Education Project
Science Supervisors
National Marine Educators Association
Adopt a Watershed
Used Oil Grant
Hidden Treasures Video, Earth Visions
San Diego BayKeeper
Discovery Store
Nature Company Chula Vista Harbor Day
Americorps
Urban Corps
California Conservation Corps
San Diego County Department of Social Services
Boy Scouts of Arnerica
~ 1-J-'V
Girl Scouts of America
Rotary District 5340
South Bay Bottom Bunch
Project Wildlife
I Love A Clean San Diego
Donovan State Prison
CONSULTATIONS
California State Parks
American Youth Hostels
Sierra Club
Volcanic National Park Rwanda
WORKSHOPS AND SPECIAL PROGRAMS
Workshop for The Friends of Batiquitos Lagoon
Workshop for San Elijo Lagoon Conservancy
Workshop for Friends of the San Dieguito River Valley
Workshop for Friends of Wilderness Gardens
Workshop for Wild Animal Park Education Staff
Workshop for Mission Trails Parks
Bird workshop for San Diego National History Museum (SDNHM)
SDNHM Planning Retreat
Xeriscape Workshop
United States Fish and Wildlife Service, Ecological Services
California Aquatic Science Education Consortium Bilingual Workshop
Global Environmental Change Education Video Conference
AAM Annual Mæting
San Diego Water Test Training
Douglas Ryan Interpretive Trairting
Math, Science and Beyond
San Diego Science Teachers Conference
Frontiers in Science
Coast Walks
Environmental Education Outreach at Loews Bay Coronado Resort
Chula Literacy Project
Science Fair Judges
SeaCamp of San Diego
Project Exploration, Arizona
Las Primeras
California retired teachers Association
Rohr Toastmasters
International Friends Commission
Student Exchange program with Japan, Mt. Helix
Environmental Science Merit Badge, BSA
Chula Vista Nature Center Bat rays Softball Tearn
BOARDS AND COMMISSIONS
Association of Nature Center Admirtistrators, Board of Directors (Neudecker)
Museum Assessrnent Program Surveyor (Neudecker)
Accreditation Visiting Commission (Neudecker)
Oil Spill Prevention Task Force (Neudecker)
;1 t.f - J-5
San Elijo Lagoon Conservancy, Board of Directors (Moore)
Environmental Science/Recycling Program Advisory Committee (Moore)
San Diego County Marine Science Committee (Moore)
MEDIA
KFMB, KUSI, KPBS
Cox Cable, Dartiels Cable
Adopt-a-Child
X. Summary
At their August 15, 1995 meeting, the City Council requested information on the City's,
Redevelopment Agency's and developers' obligations to the BeT and information regarding
alternate funding sources.
The Bayfront Conservancy Trust was formed by the Chula Vista City Council in 1985 as a
section of the Local Coastal Plan. The Environmental Management Plans contained in those
documents created the Chula Vista Bayfront Conservancy Trust. The most recent LCP, Local
Coastal Plan Resubmittal #8, was adopted by the California Coastal Commission in January of
1993.
The Redevelopment Agency owns the building and the easement to use the Nature Center. In
December of 1986, the City of Chula Vista and the BCT made a cooperative agreement for the
management and operation of the BCT.
The Board was organized to support a free museum and the Director was hired with the
understanding that the operation and maintenance costs would be covered and he would raise
funds for special projects. Even though the Board felt strongly that Chula Vista had promised
a Free Nature Center, they realized in 1993 that development would take some time and they
needed to reduce the BCT's financial dependence on the City. The City formalized the
Agreements with the BCT in a comprehensive three party agreement between the City of
Chula Vista, Redevelopment Agency and Chula Vista Bayfront Conservancy Trust for a Lease,
Loan and Operating Agreement for the Chula Vista Nature Center. In May of 1993 the BCT
Board of Directors approved the L,L,O & A with the City of Chula Vista and the
Redevelopment Agency. That agreement was amended and extended on August 15, 1995.
Through June 30, 1995, the BCT owed the City General Fund ($1,827,785), the City Sewer Fund
($46,607) and the Redevelopment Agency ($1,754,285) for a total of $3,628,677. To date in this
fiscal year, the BCT owes an additional $380,504 plus interest. Therefore the total debt to both
the City and Agency, without interest for this year, is $4,009,181.
Some of the strongest obligations of the City to operate the Nature Center are covenants to
operate contained in Environmental License Plate Grants (ELP) Grants from the California
State Coastal Conservancy. Since 1986, the BeT has received five Environmental License Plate
Grants (ELP) Grants which contain covenants to operate and maintain the Nature Center until
2009. Three of the five grants and covenants were approved by the City. These covenants do not
specify the level of operation or funding required.
The Local Coastal Plan (LCP) established the Bayfront Conservancy Trust (BCT) as a public
benefit, nonprofit corporation to enhance, restore, and preserve the Sweetwater Marsh and to
provide free educational programs and facilities at the Chula Vista Nature Center. It is
important to note that the requirements of the LCP are tied to the plan and not the land. In
Y'-f-~tf
other words, if the LCP is scrapped or abandoned, the requirements to the BCT would disappear
as well. However it is doubtful that the California Coastal Commission would approve a new
LCP that did not provide support for the BCT and Omla Vista Nature Center. On March 18,
1993 the California Coastal Commission stated that "the Nature Interpretive Center and its
associated financing plan was included as part of the environmental management program of
the certified LCP". Prior to the issuance of any coastal development permits for the proposed
Midbayfront development, a funding mechanism for the maintenance, improvement and
continued operation of the Nature Center incorporating a benefit assessment district or other
long-term method of funding shall be implemented.
The Nature Center is part of the mitigation of the Midbayfront development through the Local
Coastal Plan and the Stipulated Settlement. The obligation created by the LCP is to secure a
funding mechanism for the Nature Center before a Coastal Development Permit can be issued.
In 1986 a lawsuit (Sierra Club and League for Coastal Protection v. John O. Marsh, Secretary of
the Army, et al') challenged the Local Coastal Plan (LCP) of Chula Vista and the proposed
mitigation of the U.S. Army Corps of Engineers Sweetwater Flood Control Project and the
Federal Highway Safety Administration and CalTrans 1-5/SR54 Interchange project. The
Stipulated Settlement provided for the operation of the Nature Center as a public museum;
gave the Redevelopment Agency an easement for permanent access to and operation of the
Nature Center, allowed completion of the Federal Projects; gave the Developer a 404 drainage
permit, excluded any further development of Gunpowder Point; required that the portion of
Gunpowder Point Drive which crosses the marsh be hard-surfaced, utilities relocated
underground and that interpretive trails be established on Gunpowder Point. It should be noted
that neither the City nor the Agency was a party to the settlement agreement and if we fail to
operate the Nature Center the result may only be the loss of the easement to the Nature Center.
The California Coastal Commission approved the US Army Corps of Engineers Consistency
Determination which stipulates a nature trail on Gunpowder Point and an Interpretive Center
on Gunpowder Point. The Determination states that these facilities would provide the public
with access consistent with the California Coastal Act, but there is no specific requirement to
operate the Nature Center.
In light of the legal obligations stated in this section, there are several potential negative
consequences of failing to operate the Nature Center. The ELP grants contain a mandatory
obligation to operate the Nature Center until the year 2009. If the City were to attempt to close
the Nature Center, the State Conservancy could sue the City to operate the Center or declare a
breech of contract and attempt to force the city to repay part or all of the grant funds. However,
there is nothing in the ELP grant that specifies the level of operation of the Nature Center. If
we did not operate the Center at all we might forfeit the easements and the right to operate
the Center.
The LCP pertaining to the development of the Midbayfront stipulate the formation of a
Bayfront Open Space and Maintenance Assessment District or an alternate source of funding for
the operation and maintenance of the Bayfront Conservancy Trust. Previous drafts of a DDA for
the Midbayfront have included an annual developer payment in the amount of actual costs or
$500,000 per year. The drafts also included an annual cost of living increase of 3% per year. To
date the Beneficial Tax Assessment District has not been formed, but staff is reviewing the
possibility of forming such a district prior to development.
Funding of the Nature Center to date has come partly from corporate sponsors and donations and
mainly from a split between the Chula Vista Redevelopment Agency and the City of Chula
Vista's General Fund. In 1993 the BCT instituted admission fees to try reduce the amount of
funds loaned by the City and Agency.
Ý 1~ ~'?
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The OCT continues to seek funding for the Nature Center from foundations, corporations and
private individuals. in calendar year 1995 we submitted more than 30 complete proposals. It is
important to realize that heretofore, nearly all fundraising efforts have focused on soliciting
funds for new exhibits and special programs. Less effort has been devoted to raising funds for
general operating support. It is harder to raise operating funds because most donors prefer to
support a specific exhibit or program rather than operating expenses. Consequently we need to
reconfigure and expand our fundraising efforts. in February of 1996, the Nature Center
submitted its extensive application for a General Operating Support Grant (GOS) from the
federal institute of Museum Services.
Since the formation of the Sweetwater Marsh National Wildlife Refuge in 1988, the US Fish
and Wildlife Service has spent less than $5,000 on direct enhancement of the natural resources
or visitor improvements. Over the same time period the BCT has spent more than $350,000,
through donations and volunteers, on the National Wildlife Refuge. We have made repeated
requests and appeals to the US Deparbnent of the interior and the US Fish and Wildlife
Service for support but have receive nothing from them.
A significant change in our fundraising approach has already been approved by the Board of
Directors. The OCT now includes overhead expenses on all of its grant applications to help
support the day to day operation and maintenance of the Center. We need to consider either
restructuring the BCT Board of Directors into a more typical, philanthropic, rnuseum Board
which gives and raises funds or creating an additional development Board. The City Council
could assist the OCT by helping the existing Board to create sorne form of a fundraising body
that would be in charge of development for the institution.
It takes several years for a museum to develop support in the comrnunity. The museum rnust
attain a certain stature before it can attract large donations. The Chula Vista Nature Center,
with its National standing through its accreditation and reputation of excellence in programs
and exhibits, is just coming of age. Already in this fiscal year we have raised $500,000 in grant
funds and more than $100,000 in cash donations. Prior to receipt of tax revenues from the
Beneficial Tax Assessrnent District, our goal is to earn as much revenue as possible to support
operations.
We calculated the projected economic impact of the Center on Chula Vista. Indirect spending
was calculated using a very conservative tourism multiplier of 2.12. Based on the 20,685 who
paid, there was $620,550 in direct spending and an additional $1,315,566 in indirect spending.
The Nature Center spends at least a $175,000 a year on goods and services in Chula Vista. in
1994 - 95 the City and Redevelopment Agency loaned the BCT a total of $434,655 for operation
and maintenance of the Center plus interest on loans from the City. When that loan amount is
subtracted from the projected total economic impact, the Chula Vista Nature Center had a net
positive effect of $1,676,461 on the Chula Vista economy. These analyses do not support the
contention that the Nature Center has been a continual bleed on the City without any return.
The Nature Center enriches Chula Vista's economy.
Museums matter - we sustain and enrich lives in our community. We help to enhance Chula
Vista's image by demonstrating its recognition of the importance of its natural resources and the
value it places on cultural institutions. The Nature Center is the only accredited museum in the
South Bay. It brings national recognition of Chula Vista's foresight in natural resource
conservation and its leadership and excellence in cultural enrichment and public education. in
many ways the Nature Center is an educational institution that provides opportunities for both
formal and informal learning by people of all ages.
;£ 1- ;2..10
.
APPENDICES
Table 1. Chronological History of the BCT
Table 2. Attendance/Donation Summary
Table 3. Cash Donations 1987 - 1995
Table 4. Donations of Materials and Services 1987 - 1995
Table 5. Economic Effects of the Chula Vista Nature Center
Chart 1. Attendance 1987 - 1995
Chart 2. Annual Budget 1987 - 1995
Chart 3. Per capita Receipts 1987 - 1995
/ ~-~7
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This page blank.
tj-2-f
TABLE 1. Chronological history of the Bayfront Conservancy Trust since its inception in 1985.
CHRONOLOGICAL HISTORY OF THE BCT
1985
The Chula Vista Local Coastal Plan (the Bayfront Specific Plan)
establishes the Bayfront Conservancy Trust.
May The California State Coastal Conservancy assists in preparation
of draft Articles of Incorporation and Bylaws for the BCT.
Winn and Cutri Architects win the design competition and are
awarded a contract to design the Chu]a Vista Nature Interpretive
Center.
1986
January Recruitment and appointments begin for the Board of Directors.
June 13 Mayor Gregory R. Cox assumes Chairmanship and conducts the
first meeting of the Board of Directors of the BCT.
Ju]y Rhodes/Dah] are retained to develop interpretive themes and
exhibit designs for the Chula Vista Nature Interpretive Center.
Ju]y Recruitment begins for an Executive Director of the BCT.
Ju]y 22 The Articles of Incorporation and By]aws of the Bayfront
Conservancy Trust are executed.
September A Memorandum of Understanding is reached between the City
of Chula Vista, the State of California and the BCT giving the
BCT the responsibility for ensuring that the marsh is preserved
and enhanced.
October The BCT applies for incorporation as a 501(c)3, public benefit
nonprofit corporation with the Secretary of State of California.
The Redeve]opment Agency of Chula Vista provides $600,000
for design and construction of exhibits and furniture and fixtures
for the Chu]a Vista Nature Interpretive Center.
December Dr. Stephen Neudecker is hired as the Executive Director of the
BCT.
The City of Chula Vista and the BCT make a cooperative
agreement for the management and operation of the BCT.
tf-J-1
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1987
January 21 The Articles of Incorporation are certified by the Secretary of
State of California.
March 27 The BCT applies for recognition as a 501(c)3, public benefit
nonprofit corporation with the Interna] Revenue Service (IRS).
June Volume 1(1) of the Bayfront By-Line is published.
June 12 The Franchise Tax Board of the State of California gives the BCT
organization number 33-0225466 and tax-exempt status from
state franchise or income tax.
July 4 The Chu]a Vista Nature Interpretive Center opens its doors as a
free public museum.
Ju]y 29 The Interna] Revenue Service recognizes the BCT as a 501(c)3,
public benefit nonprofit corporation.
December The Sweetwater Union High School District assigns a full-time
science teacher to NIc.
1988
February The Chula Vista City School District assigns a full-time
science teacher to NIc.
August The USF&WS accepts a donation of all wetland resources in the
area and forms the 316 acre Sweetwater Marsh National Wildlife
Refuge.
November 11 The Chula Vista Nature Interpretive Center receives an Orchid
Award for environmental solutions, 1988 Orchids and Onions
Community Awareness Program.
1989
Apri] 17 The Chula Vista Nature Interpretive Center applies for
participation in the American Association of Museum's (AAM)
Museum Assessment Program (MAP).
April 19 The NIC opens: the Sweetwater Soup Exhibit.
May 3 The 100,000th person visits NIc.
4/,;0
June 5 Inmates from the R. J. Donovan Correctional Facility remove and
recycle more than 100 tons of debris from Gunpowder Point area
of the Refuge Gune 5 - August 9, 1989).
Ju]y 21 The Chula Vista Nature Interpretive Center applies for
accreditation by the AAM.
October 20 The NIC opens: the Marine Fossils Exhibit.
1990
June The Bayfront By-Line is published on recycled paper.
October Friends of Greg Cox establish the Gregory R. Cox, Environmental
Education Fund in recognition of his community service to the
Chula Vista Nature Interpretive Center.
October 20 The NIC opens: the Bioscanner Exhibit.
December 7 The NIC opens: the Burrowing Owl Aviary.
1991
January The NIC opens: the Greenhouse to grow native plants for Refuge
restoration and enhancement.
May The Chula Vista Bottom Bunch begins a cooperative project to
culture abalones at NIC for release to reefs in the San Diego area.
July 22 The Chula Vista Nature Interpretive Center receives interim
approval prior to accreditation from the AAM.
July 23 Mayor Time Nader becomes the Chairman of the Board of
Directors.
1992
January 27-28 The AAM accreditation visiting committee conducts exhaustive
site survey.
May The BCT adopts a Five-year Strategic Plan.
June 19 The NIC receives full accreditation from the AAM.
Ju]y4 The NIC celebrates its 5th anniversary and announces its full
accreditation by the AAM and its selection by the USF&WS to be
J}---3/
the first institution in the world to display the endangered Light-
footed clapper rail.
July 18 The NIC opens: Moons, Tides and the San Diego Bay.
The Center begins discussion of a potential merger with the San
Diego Natura] History Museum.
March 23 The California State Coastal Conservancy, citing budgetary
constraints and the success of the BCT, respectfully resigns its
seat on the BCT Board.
May 26 The BCT Board approves amendments to the Articles of
Incorporation and bylaws. The changes involve Board
membership and voting rights and give the City Council of
Chula Vista the right to approve any changes to the Articles of
Incorporation or the By]aws of the BCT.
June Executive Director, Dr. Stephen Neudecker is appointed as
Surveyor in Museum Assessment Program of the American
Association of Museums.
October TheWentzScope exhibit opens.
November A Master Plan of the Center's facilities is completed.
December US Army Corps of Engineers begins to hard-surface entrance
road to Nature Center as part of the Stipulated Settlement.
December 9 Amendments to the Articles of Incorporation are certified by the
Secretary of State of California.
1993
March Five Burrowing owlets are born in the exhibit aviary.
April The US Army Corps of Engineers completes the under
grounding of utilities and hard surfacing of the levee road across
the Sweetwater Marsh Nationa] Wildlife Refuge to the Nature
Center.
Center staff and volunteers install artificial nest platforms in the
Refuge to enhance the wild reproduction of Clapper rails.
q/3"V
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May The BCT Board of Directors approve a Lease, Loan and
Operating Agreement with the City of Chula Vista and the
Redevelopment Agency.
The potential merger with the San Diego Natural History
Museum is put on hold until financial uncertainties facing both
institutions are resolved.
June 1 The Center begins charging admission fees ($3.50 Adult, $2.50
Senior and $1 Child).
Ju]y The BCT Board of Directors approve dropping interpretive from
the museum's name to become the Chula Vista Nature Center
and adopt a new logo for the Center.
1994
January Executive Director, Dr. Stephen Neudecker is appointed to the
American Association of Museums Accreditation Visiting
Committee.
Friends of NIC brochure, Naturally You're Invited is printed.
July 4 The Center opens interpretive trails on Gunpowder Point that
were constructed by Rotary District 5340.
1995
January Shuttle Bus Station opens at the corner of E Street and Bay
Boulevard as entrance to Nature Center parking Jot.
January 24 Mayor Shirley Horton becomes Chairman of the Board of
Directors.
March Five Burrowing owlets are born in the exhibit aviary. Three
males and two females.
April 14 Nature Center becomes first museum in San Diego County to
post a HomePage on the World Wide Web.
May 15 Sea Reflections, an exhibition of Gyotaku by Cherry Sweig opens.
August 1 The Nature Center hosts Fiesta on the Marsh as a special event of
the annual meeting of the National Marine Educators
Association.
L{ - 33
August Ca]trans installs Watchable Wildlife signs on 1-5 and SR-54.
September 19 The State Coastal Conservancy agrees to administer a grant of
$400,000 from the State of California to construct a flow-through
seawater system at the Chula Vista Nature Center.
September 26 The San Diego Unified Port District approves a $100,000 CIP
project to assist in the construction of a flow-through seawater
system at the Chu]a Vista Nature Center.
October 9 Ground is broken for construction of Phase 1 of the Clapper Rail
Exhibit.
October 16 Three of the Burrowing Owls born in March are released on a
ecological preserve in Ramona, California.
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This page blank.
J-/"3b
TABLE 3. All donations of cash to the Bayfront Conservancy Trust since 1987.
TOTAL CASH DONATIONS TO DATE
Name Month Year Amount Items
E] Dr. F.L. Wergeland & D. A. 3 1996 $55,000.00 Clapper Rail
EI Laidlaw Waste Systems 2 1996 $5,000.00 Clapper Rail
E] Elisa Merino 2 1996 $100.00 Clapper Rail
E] Earthlings Club 2 1996 $100.00 Clapper Rail
EI Lora Smith 2 1996 $25.00 Clapper Rail Exhibit
E] Chula Vista Womans Club 2 1996 $25.00 Clapper Rail
E] Parking Meters' 2 1996 $12.45 Clapper Rail
[š] State Coastal Conservancy 1 1996 $400,000.00 Seawater System
[š] San Diego Unified Port District 1 1996 $100,000.00 Seawater System
E] Laidlaw Waste Systems 1 1996 $10,000.00 Clapper Rail Exhibit
[š] George Turner 1 1996 $500.00 Clapper Rail
[š] Rancho Del Rey Investors 1 1996 $500.00 Clapper Rail
[š] Dale Clark 1 1996 $250.00 Clapper Rail
[š] Mildred Cooper 1 1996 $50.00 Clapper Rail
[š] Remy & Thomas 12 1995 $2,500.00 Clapper Rail
[š] Sue Fuller 12 1995 $250.00 Clapper Rail
[š] John & Christy Walton 12 1995 $155.00 Clapper Rail
[š] Lloyd Price/Mex Insur 12 1995 $100.00 Clapper Rail
[š] Ann Klovstad & Cheryl Mann 12 1995 $100.00 Clapper Rail
[š] Francisco & Antoinette 12 1995 $50.00 Clapper Rail
[š] USF&WS 11 1995 $300.00 Clapper Rail
[š] George W. Turner 11 1995 $250.00 Clapper Rail
[š] John W. Carson 11 1995 $100.00 Clapper Rail
[š] ¡en & Michael Weatherford 11 1995 $50.00 Clapper Rail
[š] Bruce & Terry Mullis 11 1995 $50.00 Clapper Rail
[š] Sarah Lesher 11 1995 $25.00 Clapper Rail
[š] SD Community Foundation/Clark 10 1995 $5,000.00 Clapper Rail
E] Elite Racing 10 1995 $1,060.00 Clapper Rail
[š] Executive Office Systems 9 1995 $7,000.00 Clapper Rail Check 8/21/95
[š] Frost Foundation 9 1995 $4,000.00 Clapper Rail
[š] Sweetwater High School District 9 1995 $1,000.00 Clapper Rail - Check
[š] SW Lions of San Diego 9 1995 $75.00 Clapper Rail
EJ Jane & David Mootz 9 1995 $50.00 Clapper Rail
EJ Christine Malone 9 1995 $50.00 Clapper Rail
If- 37
TABLE 3. All donations of cash to the Bayfront Conservancy Trust since 1987.
TOTAL CASH DONATIONS TO DATE
Name Month Year Amount Items
~ Christine Malone 9 1995 $32.00 Director's Discretion for Mouse House Material
~ Covey SD Nat History Museum 9 1995 $25.00 Clapper Rail
~ Robert & Dolores Simmons 9 1995 $15.00 Clapper Rail
~ Michael Meacham 8 1995 $30.00 Clapper Rail
[J Las Primeras 7 1995 $500.00 Clapper Rail
~ Chula Vista Capital 7 1995 $500.00 Fences
[J Norman & Barbara Swift 6 1995 $1,000.00 2 Benches
[J Pamela Vandervliet 6 1995 $6.00 Clapper Rail
~ Seacamp 5 1995 $150.00 Clapper Rail
~ So Shores Division Retired Teachers 5 1995 $100.00 Clapper Rail
~ Carmel Creek PTA 5 1995 $100.00 Clapper Rail
~ Deborah Baker 5 1995 $50.00 Clapper Rail
~ Sea World 4 1995 $5,000.00 Clapper Rail
~ Enartec/Nestor Ramos 3 1995 $100.00 Clapper Rail/Byline
[J Stephen/Karen Neudecker 3 1995 $100.00 Clapper Rail
~ Dona Kratz 3 1995 $20.00 Clapper Rail
~ John Kruckeberg 2 1995 $50.00 Clapper Rail
~ Women's Fellowship Church 2 1995 $20.00 Clapper Rail
~ Remy & Thomas 1 1995 $5,000.00 Clapper Rail
~ Jerald & Janet Miller 1 1995 $75.00 Clapper Rail
~ Donna Lee Mallen 1 1995 $50.00 Clapper Rail
~ Myrt Eller 1 1995 $50.00 Greg Cox Fund
~ Loews Coronado 1 1995 $50.00 Clapper Rail
~ John Kruckeberg 1 1995 $50.00 Clapper Rail
~ Frost Foundation 12 1994 $4,000.00 Clapper Rail
~ Bonita Sunrise Rotary 12 1994 $200.00 Director's Discretion
~ Danny Manalo 12 1994 $30.00 Clapper Rail
~ Bonnie Hubbard 12 1994 $25.00 Clapper Rail
~ Jessie Chabliss 12 1994 $25.00 Clapper Rail
~ George W. Turner 11 1994 $250.00 Clapper Rail
~ John W. Carson 11 1994 $80.00 Clapper Rail
EJ Sweetwater Union High School 10 1994 $1,000.00 Director's Discretion
[J Penny Halgren 10 1994 $17.50 Clapper Rail
~ Bank of America 9 1994 $5,000.00 Clapper Rail
4~3g
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TABLE 3. All donations of cash to the Bayfront Conservancy Trust since 1987.
TOTAL CASH DONATIONS TO DATE
Name Month Year Amount Items
~ Louis Alexander 9 1994 $20.00 Clapper Rail
~ SDG&E 8 1994 $5,000.00 Clapper Rail
~ Southwest Lion's Club 8 1994 $100.00 Director's Discretion
~ Central Graphics 8 1994 $65.00 Clapper Rail
~ Cathy Glas"ow 8 1994 $40.00 Clapper Rail
~ Chula Vista Hills Elementary PTA 7 1994 $25.00 Clapper Rail
~ Cox & Associates 7 1994 $25.00 Director's Discretion
~ Bonita Sunrise Rotary 6 1994 $2,500.00 Interpretive Trails
~ Las Palmas School 6 1994 $157.50 Clapper Rail
~ Phyliss Bue"el 6 1994 $50.00 Clapper Rail
~ Cheryl Curtis 6 1994 $30.00 Clapper Rail
~ Penninsula Sheperd's Centers, Inc. 6 1994 $25.00 Clapper Rail
~ Hillman & Carr 5 1994 $356.00 Director's Discretion
~ Central Graphics 5 1994 $78.00 Director's Discretion
~ Phil Glas"ow 5 1994 $60.00 Director's Discretion
~ Patricia Welch 5 1994 $29.08 Director's Discretion
~ Delores Peter 5 1994 $15.00 Clapper Rail
~ Wine & Food Society of Chula Vista 4 1994 $100.00 Director's Discretion
~ Larry Wer"eland 4 1994 $50.00 Director's Discretion
~ Dr. Charles Henkelmann 4 1994 $25.00 Director's Discretion
~ Patricia Curran 4 1994 $25.00 Director's Discretion
~ John Neal 4 1994 $25.00 Director's Discretion
~ Central Graphics 3 1994 $100.00 Director's Discretion
~ P.E.O. Chapter OJ 3 1994 $25.00 Clapper Rail
~ Phyliss Bue"el 3 1994 $25.00 Clapper Rail
~ James Thomson 2 1994 $50.00 Director's Discretion
~ Laser Ri"ht 2 1994 $24.00 Director's Discretion
~ Geor"e W. Turner 1 1994 $250.00 Interpretive Trails
~ Myrt Eller 1 1994 $50.00 Gre"CoxFund
~ Elizabeth Currier 1 1994 $10.00 Clapper Rail
~ Bonita Sunrise Rotary 12 1993 $300.00 Computers
~ Ranees Rowley 12 1993 $10.40 Clapper Rail
~ National City Rotary 11 1993 $72.50 Computers
~ Elite Racin¡; 10 1993 $1,000.00 Computers
1- 3C¡
-
TABLE 3. All donations of cash to the Bayfront Conservancy Trust since 1987.
TOTAL CASH DONATIONS TO DATE
Name Month Year Amount Items
~ John W. Carson 10 1993 $100.00 Clapper Rail
~ Lions Club 9 1993 $25.00 Directors Discretion
~ Linda Mes 9 1993 $12.50 Clapper Rail
~ Carolyn Stover 8 1993 $7.50 Clapper Rail
~ Sweetwater Union HS 7 1993 $1,000.00 Computers
~ Barbara Moore 7 1993 $500.00 Clapper Rail
~ Chula Vista Hills Elementary PTA 7 1993 $128.23 Clapper Rail
~ Pat Wagner 6 1993 $100.00 Clapper Rail
~ Las Palmas School 6 1993 $96.50 Clapper Rail
~ Lori Wilcox 5 1993 $10.00 Clapper Rail
~ Susan Brown 5 1993 $7.50 Clapper Rail
~ Lori Nader 4 1993 $100.00 Director's Discretion
~ Geor!';e Kost 4 1993 $25.00 Director's Discretion
~ San Die!';o Earth Day 3 1993 $40.62 Clapper Rail
EI San Die!';o Laser 3 1993 $32.00 Clapper Rail
~ San Die!';o Trust & Savin!';s 2 1993 $250.00 Clapper Rail
~ Vir!';inia Dimino 2 1993 $15.00 Clapper Rail
EI Geor!';e Turner 1 1993 $250.00 Interpretive Trails
~ San Carlos Women's Club 1 1993 $25.00 Interpretive Trails
~ Bonia Sunrise Rotary 12 1992 $210.00 Director's Discretion
EI John W. Carson 11 1992 $100.00 Clapper Rail
~ David & Pam Lyons 10 1992 $200.00 Director's Discretion
EI Pat Wagner, Volunteer 10 1992 $100.00 Clapper Rail
EI H. L. Youn!'; 10 1992 $25.00 Clapper Rail
~ Teresa Thomas 9 1992 $150.00 Director's Discretion
~ Sweetwater School District 8 1992 $1,000.00 Director's Discretion
~ Herbert Arklin 8 1992 $250.00 Director's Discretion
~ Lyman Christopher 8 1992 $200.00 Director's Discretion
~ Southwestern Re!';ional Transport 8 1992 $104.00 Director's Discretion
EI Pacific Southwest Biolo!';ical 7 1992 $2,000.00 Clapper Rail
EI AAA 7 1992 $297.50 Director's Discretion
~ ASLA 7 1992 $100.00 Director's Discretion
~ James Shaw 7 1992 $40.00 Director's Discretion
EI School Search 7 1992 $39.00 Director's Discretion
If - tit)
-
TABLE 3. All donations of cash to the Bayfront Conservancy Trust since 1987.
TOTAL CASH DONATIONS TO DATE
Name Month Year Amount Items
~ Tom Perrotti 7 1992 $25.00 Director's Discretion
~ Judy Herschlep; 7 1992 $25.00 Director's Discretion
[] Cubberly ITA 7 1992 $25.00 Director's Discretion
~ M. K. Grimes 7 1992 $25.00 Director's Discretion
¡g Cadman PTA 7 1992 $25.00 Director's Discretion
~ Bonita Garden Club 7 1992 $20.00 Director's Discretion
[] Olp;a Turner 7 1992 $10.00 Director's Discretion
[] Las Palmas School 6 1992 $85.29 Director's Discretion
~ Ralph Chapman 6 1992 $50.00 Director's Discretion
[] Buena Vista Audubon 6 1992 $50.00 Director's Discretion
~ Educare I Corner 6 1992 $25.00 Director's Discretion
[] Shari Desmarais 6 1992 $25.00 Director's Discretion
[] Brian Mooney 5 1992 $215.00 Director's Discretion
~ Project Exploration 5 1992 $200.00 Director's Discretion
[] YMCA of San Diep;o County 5 1992 $150.00 Director's Discretion
[] East County Jewish Center 5 1992 $150.00 Director's Discretion
~ Lisa Lord 5 1992 $75.00 Director's Discretion
~ Deborah Alaso 5 1992 $75.00 Director's Discretion
[] Stacy Berman 5 1992 $75.00 Director's Discretion
~ Children's Creative Arts 5 1992 $50.00 Director's Discretion
~ Boys & Girls Club of Escondido 5 1992 $50.00 Director's Discretion
~ D. Lyrm Nep;us 5 1992 $50.00 Director's Discretion
[] Barbara Peup;h 4 1992 $25.00 Director's Discretion
[] Busch Entertainment 4 1992 $25.00 Director's Discretion
~ Lyn Conley 4 1992 $25.00 Director's Discretion
[] Robert Penner 4 1992 $25.00 Director's Discretion
[] San Diep;o Trust & Savinp;s 4 1992 $25.00 Director's Discretion
~ Diane Dykstra 4 1992 $5.00 Director's Discretion
~ Helen Aprea 3 1992 $250.00 Director's Discretion
[] Project Exploration 3 1992 $100.00 Director's Discretion
~ PI. Lorna Garden Club 3 1992 $40.00 Director's Discretion
~ Patricia Baker 3 1992 $40.00 Director's Discretion
~ Brownie Troup 6431 3 1992 $38.00 Director's Discretion
[] La Jolla Country Day School 3 1992 $25.00 Director's Discretion
tf~ '-If
TABLE 3. All donations of cash to the Bayfront Conservancy Trust since 1987.
TOTAL CASH DONATIONS TO DATE
Name Month Year Amount Items
~ Pat Wagner 2 1992 $40.00 Director's Discretion
~ Mary Un¡;er 2 1992 $25.00 Director's Discretion
[] Diane Sachs 2 1992 $25.00 Director's Discretion
~ San Die¡;o Unified School District 2 1992 $25.00 Director's Discretion
~ Brooke Corley 1 1992 $40.00 Director's Discretion
~ Madly Guelden 1 1992 $25.00 Director's Discretion
[] Marg-uerite Sard 1 1992 $25.00 Director's Discretion
~ Marsden 1 1992 $25.00 Director's Discretion
[] Baldwin Builders 12 1991 $4,000.00 Burrowin¡; Owl
[] Geor¡;e Turner 12 1991 $133.00 Director's Discretion
~ Myrt Eller 12 1991 $50.00 Gre¡; Cox Fund
[] Vivian Buenaventura 11 1991 $50.00 Director's Discretion
~ Phylis Bue¡;el 11 1991 $50.00 Director's Discretion
~ Stephen Schultz 11 1991 $40.00 Director's Discretion
[] SDG&E 10 1991 $875.00 Director's Discretion
~ Michael McLau¡;hlin 10 1991 $25.00 Director's Discretion
[] Mary Ann Nichols 10 1991 $10.00 Director's Discretion
~ Salvation Army 10 1991 $10.00 Director's Discretion
[] Con¡;re¡;ational Church 9 1991 $25.00 Director's Discretion
EI Tom Stahl 9 1991 $24.00 Director's Discretion
EI Chula Vista Rotary 8 1991 $2,000.00 Director's Discretion
EI Sweetwater Hi¡;h School 8 1991 $1,000.00 Director's Discretion
[] Baldwin Builders 7 1991 $3,000.00 Burrowin¡; Owl
EI Rotary 7 1991 $100.00 Director's Discretion
EI Dick Chase 5 1991 $1,000.00 Director's Discretion
EI Project Exploration 5 1991 $200.00 Directors Discretion
[] M. Sevier 5 1991 $120.00 Director's Discretion
~ Las Palmas School 5 1991 $94.04 Director's Discretion
EI Girl Scouts 5 1991 $25.00 Director's Discretion
EI Dick Chase 4 1991 $1,000.00 GRC Fund
EI Community Con¡;re¡;ational 4 1991 $200.00 Director's Discretion
EJ Donald He¡;e Trustee Account 1 1991 $6,000.00 Director's Discretion
EJ Don Heye 1991 $5,000.00 Burrowin¡; Owl
[] Hyspan Precision Products, Inc. 12 1990 $5,000.00 Burrowin¡; Owl
/-f - t.f 2.-
-
TABLE 3. All donations of cash to the Bayfront Conservancy Trust since 1987.
TOTAL CASH DONATIONS TO DATE
Name Month Year Amount Items
[] Gregory R. Cox 12 1990 $1,000.00 GRC Fund
~ George Turner 12 1990 $250.00 Interpretive Tails
;J Baldwin Builders 11 1990 $3,000.00 Burrowing Owl
[] Sweetwater Union HS 10 1990 $1,000.00 Directors Discretion
[] Interiors 10 1990 $200.00 Directors Discretion
;J Price Creaser Insurance 9 1990 $612.97 Director's Discretion
[] Seacamp 8 1990 $150.00 Bioscanner
[] Ambler Tours 8 1990 $80.00 Director's Discretion
[] Lucinda Girl Scouts 7 1990 $120.00 Director's Discretion
[] City of Vista 6 1990 $22.00 Director's Discretion
[] Sea camp 5 1990 $500.00 Bioscanner
;J Project Exploration 5 1990 $107.60 Directors Discretion
[] Soup Exchange 3 1990 $750.00 Director's Discretion
[] Seacamp 3 1990 $500.00 Bioscanner
[] Seacamp 3 1990 $75.00 Bioscanner
[] Chula Vista Investors 2 1990 $10,000.00 Bioscanner
[] Soup Exchange 2 1990 $750.00 Director's Discretion
[] Seacamp 2 1990 $75.00 Bioscanner
[] Project Exploration 2 1990 $50.00 Directors Discretion
;J City of Vista 2 1990 $40.00 Director's Discretion
;J La Mesa Methodist 2 1990 $10.00 Directors Discretion
[] Soup Exchange 1 1990 $750.00 Director's Discretion
[] Rogue Graphics 1 1990 $345.00 Bioscanner
[] Project Exploration 1 1990 $50.00 Directors Discretion
[] Dr. Tom & Mary Bucknell 1990 $1,000.00 Bioscanner
[] Miscellaneous 1990 $159.00 Directors Discretion
;J Alfred Colson 1990 $75.00 Burrowing Owl
;J City of Vista 1990 $62.00 Directors Discretion
[] Bonita Sunrise Rotary 12 1989 $1,000.00 Bioscanner
[] Soup Exchange 12 1989 $750.00 Director's Discretion
;J George Turner 12 1989 $250.00 Director's Discretion
EJ Project Exploration 12 1989 $50.00 Directors Discretion
EJ Soup Exchange 11 1989 $750.00 Director's Discretion
;J Project Exploration 11 1989 $50.00 Directors Discretion
L/- - Lf3
TABLE 3. All donations of cash to the Bayfront Conservancy Trust since 1987.
TOTAL CASH DONATIONS TO DATE
Name Month Year Amount Items
EJ Soup Exchange 10 1989 $750.00 Director's Discretion
~ Seacamp 10 1989 $100.00 Director's Discretion
EJ Project Exploration 10 1989 $50.00 Directors Discretion
EJ Environmental License Plate Fund 9 1989 $50,000.00 Greenhouse
EJ Soup Exchange 9 1989 $750.00 Director's Discretion
EJ Soup Exchange 8 1989 $750.00 Director's Discretion
~ Seacamp 8 1989 $100.00 Director's Discretion
EJ Seacamp 8 1989 $50.00 Bioscanner
~ Soup Exchange 7 1989 $750.00 Director's Discretion
EJ Seacamp 7 1989 $150.00 Bioscanner
EJ IBM 7 1989 $30.00 Directors Discretion
EJ Soup Exchange 6 1989 $750.00 Director's Discretion
EJ Project Exploration 6 1989 $80.00 Directors Discretion
EJ Project Exploration 5 1989 $50.00 Directors Discretion
EJ Children's Asthma League 5 1989 $46.50 Director's Discretion
EJ Soup Exchange 4 1989 $750.00 Director's Discretion
EJ Soup Exchange 3 1989 $750.00 Director's Discretion
EJ Colegia Patria 2 1989 $90.00 Director's Discretion
EJ California Yatcht Marina/L Thomas 1 1989 $2,500.00 Director's Discretion
EJ Soup Exchange 1 1989 $1,000.00 Director's Discretion
EJ Colegia Patria 1 1989 $85.00 Director's Discretion
EJ San Diego Unified Port District 1989 $42,640.00 Moons & Tides Exhibit
EJ County of San Diego 1989 $6,000.00 Bioscanner
EJ Fieldstone Company 1988 $10,000.00 Binoculars
EJ Hyspan Precision Products, Inc. 1988 $10,000.00 Burrowing Owl
EJ Sam & Mary Vener 1988 $3,000.00 Interpretive Panel
EJ Pacific Southwest Wildfowl Arts 1988 $2,500.00 Tower Bench
EJ California Yacht Marina Inc 1988 $2,500.00 Directors Discretion
EJ Environmental License Plate Fund 7 1987 $150,000.00 Exhibits
EJ The Pointe Builders 7 1987 $1,500.00 Gala Food
EJ Redevelopment Agency 7 1986 $200,000.00 Exhibits
EJ Environmental License Plate Fund 6 1986 $375,000.00 Construction
Total $1,555,355.18
If- -l/-<{-
TABLE 4. All donations of materials and services to the Bayfront Conservancy Trust since 1987.
BA YFRONT CONSERVANCY TRUST
Donations of Materials
1987 - 96
COMPANY MA TERIALS/DESIGNA TION DATE AMOUNT
The Pointe Builders Gala Food Jul-87 $1,500
Anthony's Seafood Grottos Gala Food Jul-87 $1,500
El Torito Restaurants Gala Food Jul-87 $1,500
Days Inn Gala Food Jul-87 $1,500
Dorcus Utter Slides Aug-87 $250
Ed Booth Slide Synchronizer Sep-87 $300
Frank Roseman 16 mm Projector Oct-87 $350
San Diego Brine Shrimp Brine Shrimp Eggs Oct-87 $35
Aldus Corporation Pagemaker Software Nov-87 $600
Laidlaw Waste Systems Dumpsters Dec-87 $500
Velobind Velobinder Dec-87 $600
1987 $8,635
~'- 11"-- ""IIInmlltl 1
Silicon Beach Software Feb-88 $230
Chula Vista Photo Studio Slide Equiprnent Mar-88 $537
LetraSet Software Sep-88 $1,250
Mickey's Fine Desserts Cheese Cakes Sep-88 $88
PacBell Utility Pole Removal Nov-88 $2,700
Laidlaw Waste Systems Dumpsters Dec-88 $1,085
Apple Computer Computers $80,000
1988 $85,890
,_lIIItIIr_m- m'_.- -
1/_1-5
TABLE 4. All donations of materials and services to the BayfrontConservancy Trust since 1987.
Apple Computer Computers & Software Jan-89 $12,000
informix Wingz Software Apr-89 $450
Silicon Beach SuperCard Software May-89 $299
Nutmeg Systems Computer Board May-89 $550
Zihua Tide Guide Software Jul-89 $99
Hawthorne Equipment Backhoe Driver Jul-89 $1,000
McMillin Communities Fossils Sep-89 $9,000
Farallon MacRecorder Oct-89 $199
Pyraponic industries, inc. Phototron Growth Chambers Dec-89 $2,500
Laidlaw Waste Systems Dumpsters Dec-89 $1,085
American Association of Museums MAP Program $1,400
1989 $28,582
__100 ---.----.. -
Mitsubishi Electronics America, inc. XC3715C Monitor Jan-90 $9,500
institute for Scientific Information Current Contents Software Mar-90 $395
Jim Mct:;inley Snakes May-90 $200
RCP Company, inc. Block & Mortar Sep-90 $475
Nelson and Sloan Cement Sep-90 $1,255
California State Coastal Conservancy Interpretive Panels (13) Oct-90 $6,500
ThermoMaterials Coated Owl Roof Nov-90 $1,200
California Sheet Metal Works, inc. Owl Copper Roof Nov-90 $2,000
Laidlaw Waste Systems Dumpsters Dec-90 $775
Farallon Media Tracks Software Dec-90 $300
1990 $22,600
--_IIIIII_-_ITI I JlLlllmnlllllllllllllllllllUIIIIIIIIIIIIIII-
t-f~ 1b
TABLE 4. All donations of materials and services to the Bayfront Conservancy Trust since 1987.
Nelson & Sloan Gravel for Greenhouse Jan-91 $123
Phillip Roullard Color Photographs & Slides Jan-91 $150
Mouse masher Pinky Feeder Feb-91 $150
Active Sign Company Signs May-91 $161
George Turner Weathervane Sep-91 $100
Laidlaw Waste Systems Dumpsters Dec-91 $930
1991 $1,614
UUlIt
Pioneer Communications of America LDV 4200 Video Disc Player Feb-92 $1,250
Beverlee Galli & Marian Madocks Books Feb-92 $200
Four Square Productions Moons & Tides Production Mar-92 $18,000
Silicon Beach Software Programming Mar-92 $5,000
Joesph & Michael Smith 24 Brandt Decoys Apr-92 $700
Kodak Ektalaser Pointer Apr-92 $250
Stark Manufacturing Tarp Repair Jun-92 $100
George Turner Pots Jul-92 $30
Nelson and Sloan Cement (Abalone) Jul-92 $600
Electric Abalone Lighting Systern Jul-92 $1,150
Lhose Building Materials (Abalone) Jul-92 $630
Home Depot Building Materials (Clapper Rails) Jul-92 $230
South Bay Fence, Inc. Gate & Posts (Clapper Rails) Jul-92 $165
Califorrtia State Coastal Conservancy Interpretive Panels (4) Aug-92 $2,000
U.s. Navy 4,000" of 11/2" Rope Dec-92 $14,608
Laidlaw Waste Systems Dumpsters Dec-92 $4,620
t-f ~/f1
-
TABLE 4. All donations of materials and services to the Bayfront Conservancy Trust since 1987.
1992 $49,533
John Lopez Intercom, Portable Jan-93 $100
LogiUSA Fotoman Mac Feb-93 $795
Mario Medrano 2 Clapper Rail Topiaries Jun-93 $1,500
Hard Rock Gym/Scot Hanson Clapper Rail Exhibit Gravel Oct-93 $1,730
General Dynamics 2 Work Benches, 1 Desk, 2 Chairs, Oct-93 $3,000
6 Storage Cabinets, 3 File Cabinets,
1 Paper Cutter
Laidlaw Waste Systems Dumpsters Dec-93 $4,620
1993 $11,745
. _.......,on II' ----
Allan Botterman/Petrageous Small Bat Ray Feb,94 $75
Richard & Carolyn Karpowicz 2 Boxes of Fossils Mar-94 $10
Shulteis Installation of Conduit Mar-94 $3,000
Jim Weaver, Laidlaw 2 Post Hole Diggers Apr-94 $300
Milwakee Portable Drill
Advertising Arts College Advertising/Logo 1,000 Hr Mar-94 $10,000
Georgiana Houston Mise Bird & Mammal Skulls Apr-94 $50
Andrew Simmons 80rng Hard Drive Jul-94 $250
Rotary District 5340 Interpretive Trail System Jun-94 $89,000
Hawthorne Equipment Trencher - Shuttle Station Oct-94 $500
Laidlaw Waste Systems Dumpsters Dec-94 $4,620
1994 $107,805
IImt _""",","."'_, --,"'-.
R Mitchel Beauchamp Plants for Trails Feb-95 $300
Advertising Arts College Advertising/Logo 2,200 Hr Mar-95 $22,000
J-( , Iff
-
TABLE 4. All donations of materials and services to the Bayfront Conservancy Trust since 1987.
Builder's Club/Bonita Vista Mid Sch Incubator May-95 $700
Donovan State Prison Purple Martin Bird House Jun-95 $100
Cherry Sweig Gyotaku, Original Art-Auction Jul-95 $120
Executive Office Systems Discount Minolta 8600 Copier Aug-95 $11,000
Donovan State Prison 2 Sm & 1 Lg Bat House Sep-95 $100
Larry Boucon/Pro Door Parts for Classroom Door Sep-95 $48
Square D Electrical Equipment Nov-95 $4,900
Mr. & Mrs. Miller 2 Bird Hole Nests Dec-95 $50
Laidlaw Waste Systems Dumpsters Dec-95 $4,620
Prime Artemia Inc. 4 Cans Prime Artemia Dec-95 $158
Andrew Simmons Display Aquarium System Dec-95 $4,700
1995 $48,796
.""""'-"'.-""hl ..--
TOTAL $365,200
H:-~q
-
This page blank.
H ~5D
TABLE 5. Economic Effects of the Chu]a Vista Nature Center.
POSITIVE ECONOMIC EFFECTS OF NATURE CENTER
ON CHULA VISTA'S ECONOMY
1994 - 95
ATTENDANCE Total Attendance 41,228
Tota] # who paid 20,685
ADMISSIONS REVENUE $46,810
DIRECT SPENDlNG*
20,685 persons x $30 $620,550
Goods and services purchased by BCT in Chu]a Vista $175,000
INDIRECT SPENDlNG**
Direct Spending x 2.12 (Tourism Mu]tiplier) $1,315,566
Economic Impact*** $2,111,116
Loans from City (94 - 95) ($434,655)
Net Economic Impact $1,676,461
* Wilcoxon,1991 said that metropolitan direct spending was $60 - 70/person
while suburban/mal areashad direct spending around $10 -15, we used $30/person
** We used the Tourism Mu]tiplier of 2.12 provided by San Diego Con Vis eventhough
Wilcoxon, 1991 said that the Tourism Multiplier should be in the range of 6 to 8
*** Visitor Economic Impact = Direct Spending + Indirect Spending
H~5(
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J-j-5c?
MINUfES OF A JOINT MEETING OF THE CITY COUNCILIREDEVELOPMENT AGENCY
OF THE CITY OF CHULA VISTA
Tuesday, August 15, 1995 Council Chambers
7:58 p.m. Public Services Building
CALL TO ORDER
1.
Agency/Councilmembers Alevy, Padilla, Rindone, and Mayor Horton.
ABSENT:
ALSO PRESENT: John Goss, Executive Director/City Manager; Bruce M. Boogaard, Legal
Counsel/' Attorney; and Beverly A. Authelet, City Clerk.
MSC (Alevy/Horton) to excuse Agency/Co
to get back to for the meeting.
2. APPROVAL OF MINUTES: August 1, 1995 (Joint mee of the Redevelopment Agency/City Council);
August 1, 1995 (Special joint meeting of the Redevelopment Ag /City Council)
MSC (HortoolPadilla) to approve the minutes. (Moot absent)
CONSENT CALENDAR
(Item pulled: 4)
BALANCE OF THE CONSENT CALENDAR OFJiERED BY AGENCY/COUNCILMEMBER
reading of the text was waiftd, passed, and appro..ed 4-Ð-l (Moot absent).
3. WRI1TEN COMMUNICATIONS: There were none.
4. COUNCIL RESOLUTION ISOOI AND AGENCY RESOLUI'ION 1466: APPROVING AMENDMENT
TO A THREE-PARTY AGREEMENT BETWEEN THE CITY OF CBULA VISTA, REDEVELOPMENT
AGENCY, AND CBULA VISTA BAYFRONT CONSERVANCY TRUSI' FOR A LEASE, WAN AND
OPERATING AGREEMENT FOR THE CBULA VISTA NATURE CENTER - The agreement approved on
5/4/94 by the Agency/Council provided the City with specified controls and oversight of the Nature Center
until the loans provided to the Bayfront Conservancy Trust had been repaid. The lease and loan parts of the
Agreement expired in May 1995. Staff is recommending the 1ease and loan aspects of the Agreement he
extended until the end of July 1997. Staff recommends approval of the resolutions. (Administration).
Agency/Councilmember Padilla asked for darifacation of the f'iures listed and sources of the revenues shown
on page 4-9 of the staff report. He asswned that be was looking at previous 1oans as they were broken down
on the spread sheet entitled, Advances for the End of FY 94/95.
Deputy City Manager Thomson replied that was correct.
Agency/Councilmember Padilla noted three entries of loan amounts to the Bayfront Conservancy Trust each
of which indicates its a CIP advance to the Bayfront Conservancy Trust. If you look at the spreadsheet, on
6/13/94 a CIP Advance was made to the Bayfront Conservancy Trust from Fund 100. Is that General Fund?
And Fund 415 is that the Bayfront Conservancy Trust fund with an amount listed?
Mr. Thomson replied yes.
There are two more CIP advances to the Bayfront Conservancy Trust. The second one is from fund 220.
It was his understanding that is the sewer income fund. What is the sewer income fund?
J-f- 5 r
Minutes
August 15, 1995
Page 2
Mr. Thomson responded that in this context when some work was being done on the road to the Nature
Center, it was considered advisable for enviromnental purposes to go ahead and lay the sewer line even
though we could not hook it up at the time. The work was done and booked as a loan even though it was
a legitimate sewer fund expense. It was the feeling that if there was some possibility that the Bayfront
Conservancy Trust could repay that amount at some future point, we wanted to book it as a loan.
Director of Public Works, John Lippjtt, stated that we haVi! five sewer funds, 220 through 225. Each one
bas a cliffuent source of revenue. Fund 220, the Sewer Income Fund, is basically when people hook into a
City sewer. They are required to pay a certain amount into this fund in order to connect into the system.
This money can be used for extension "Of sewers and for paybacks to developers ifihey have advanced funds.
Fund 221, Advance Fund, is for advance if we have sold some sewer capacity. We can use this fund for any
sewer purpose. Fund 222 is when people join the system and pay about $2200 per connection. The primary
purpose of this fund is for upgrades to the Metro sewer system and also major extensions. Fund 225, General
Sewer Service Fund, which is from monthly sewer collections. This goes to pay for the operation of the sewer
system and our charges to the City of San Diego. Fund 226, Sewer Replacement Fund, which is also collected
monthly from every household and ranges about seventy cenls per, month. This is used to repair and reline
existing sewers as they wear out.
Agency/COtondlm_her Padilla asked what the specific funding source was for 220?
Mr. Lippitt responded that Fund 220 is when people pay to connect to the city sewer and they haven't
installed the sewer themselves or they don't have a repayment agreement to pay someone else. Everyone has
to pay to hook into the city sewer system.
Agency/Councilmember Padilla stated that in other words the money would come from fees paid by people
in all portions of the City. \
Mr. Lippitt stated yes.
Agency/Councilmember Padilla asked if this particular sewer fund was considered a trust account or a
restricted fund?
Mr. Lippitt responded that it was not a trust account. It has to be used for sewer purposes, and it can be
used hasically for any construction sewer purpose. What happened in this case, we installed a sewer in the
roadway gOÍftg to the Nature Interpretive Center. Because of enviromnental concerns, they did not want US
to tear up the road again. At such time as the sewer became available, the rest of the Bayfront could hook
into it without tearing up the road again. This is considered like a sewer extension and is allowable under
that fund.
ÂI\!DCY/Councilmember Padilla stated that it Was for the purpose of sewer construction for sewer purposes.
If that is the case, how can we take funds from that account to loan it to help fund the operations of the
Nature Interpretative Center.
Mr. Uppitt responded that the purpose of that amount was to build a sewer in the road to get out to the
Nature Center. Our interpretation was that it would be an allowable use. The nonnal process when you
build sewers is to charge people as they hook up rather than creating a loan. In this case, we had a specific
loan and chose to do it this way because it was in the redevelopment area and could charge them back.
Agency/Councilmember Padilla asked in this partieular case, was'this excess CIP that was from an existing
project?
Mr. Lippitt replied that it was appropriated, but he would have to check.
Agency/Councilmemher Padilla stated it was his understanding that any type of restricted fund the loan has
to be booked, but you also have to have a reasonable expectation that it he repaid. His concern is with the
language in the staff report which indicates that we don't have that expectation. In this case, we have taken
4~¿'(J
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Minutes
August 15, 1995
Page 3
abnost $43,000 and loaned it. In the aggregate, looking at CIP advances alone on the spreadsheet, they total
over $126,000 none of which we expect to get back or earn the interest that we would otherwise earn. Is this
COITect?
Mr. Thomson stated that it depends on what point in time you are referring to. In other words, when we
first created this project, there was an expectation that tbe Bayfront development would have gone ahead
much earlier and that tbe beneficial tax assessment district that was envisioned would have occurred years
ago. The point we were trying to make in the staff report is that at this point this loan amount bas become
significant; $3.6 million if you include the City, the Agency, and the sewer fund. At the staff level, it is hard
for us to envision the Bayfront Conservancy Trust being able to repay that under the best of circumstances.
We thought it was appropriate to alert Council of this.
Agency/Councilmember Padilla asked how can we book a loan from this account, if we don't expect
repayment?
Finance Director, Robert Powell, stated that even though we are tenn.ing this a loan, this was really a
œnstruction project that was done in support of the Bayfront Conservancy Trust. The value of that project
was then booked as a loan. Whether or not we recoup that money, he believed at this juncture, it was a valid
expenditure of sewer funds. There is no question of legality of the expenditure of the funds. The loan itself
is fully reserved on the City's books which means we are not spending those resources even though we have
it booked as a loan receivable, we have that fully reserved indicating that we can't spend those resources
because we do not have them and may never have them. Not to book the loan, it would get lost and never
have the ability to recover it. It is simply like a place marker as far as accounting goes.
Agency/Councilmember Alevy asked what was the difference between loans and advances?
Mr. Thomson replied that loans are basically funds which have already been loaned as well as the interest
accrued. Advances refer to monies '"' anticipate being loaned during IT 95/96 or thereafter.
RESOLUTIONS 180111 AND 14660FFEREDBY AGENCY/COUNCILMEMBER PADILLA, reading oI'teIds
were waived.
Agency/Councilmember Rindone asked, "how much is enough?" Because of the delay of the development of
the Bayfront project, we are looking at a total loan in excess of $3.6 million. Also, the staff report was very
candid indicating that beyond that amount already loaned, the additional advance being proposed for
operating for the Bayfront Conservancy Trust is about $375,000 annually. Are we willing as a Council to
continue to fund this? This is like a sacred cow; its a project that we have all supported. In fact, he was the
original citizen member on the Bayfront Conservancy Trust and continues to support the objectives that the
Nature Interpretive Center sets forth. However, it does reach. a point where it is legitimate that as policy
makers that we begin to ask that question. If we don't have a reasonable expectation "ithin the next three
to five years of finding an alternative development on the Bayfront and come up with an assessment district
or some other means to accommodate the annual operating def'tåt, then it beœmes a substantial liability.
Why raise the issue? He did not feel that the Council wanted to play ostrich and bury its bead in the sand
and ignore that we have a substantial debt which is not going to be repaid in the foreseeable future. We need
to see what other alternatives we have. He will support the motion tonight, but he is going to ask staff to
come back within six months to look at alternatives such as: using CDBG funds, scholarships, douatiODS,
grants, legislative actions because we amnot continue to pass through dollars with no prospect of a Bayfront
project. He requested the maker of the motion, if he would be willing to include this in his motion to have
a report come back within six months by staff searching other alternatives other than to continue to book
loans.
Agency/Councilmember Padilla felt the point regarding alternatives was well taken. He asked what were the
parameters of our obligations in tenDS of financing?
Agency/Councilmember Alevy asked if we had made a concerted effort to sit down with the two congressmen
in our immediate area to see if they would be willing to help us. He suggested that we start there.
4-101
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Minutes
August 15, 1995
Page 4
City Ma1IIIger Goss stated that the staff at Bayfront Conservancy Trust has been ..ery successful in getting
grants, but they are primarily for capital impro...ments not operations. He assured Council that each year
wben we do tbe budget, this is a very obvious issue as to bow it impacts tbe General Fund and also the
Redevelopment budget. We have looked at options such as charging at the door to pay for an improvement,
which did not bring in the type of .....enue because of the recession, to the possibility of the Port pro..iding
1hemoney for Nature Interpnti..e Center operation since it is close to the tidelands. We would be happy to
come back in six month to discuss some alternatives.
Community Development Director, Chris Salomone, responded to the obligation that we have to fund this
facility. It is an element of our Local Coastal Plan which was adopted on the existing Bayfront project which
spoke to a funding source tbrough that development. That is where we were until August 1994 when the
de-.eIopment agreement negotiations broke off. Whether the Coastal Plan obligates us, he would like to look
into this.
Agency/Councilmember Rindone stated that the purpose of tbe intent of the addendum to the motion was to
be sure we have researched whether it is legislative, grants, foundation, Port. These alternatives need to be
examined or re-examined.
Agency/Councilmember Ale..y asked what was the obligation of the Bayfront developer to this and what has
his input been?
Mr. Salomone stated that in the development agreement negotiations we were in the process of completing
when the ownership changed, we were obligating the developer to take over the operations and the facility
for the future. It was a very complicated development agreement, but it involved a lot of obligaÛOllS for a
lot of other facilities. There were discussions in that development agreement of recovering past costs.
Mr. Thomson 5tated that the developer was also trying tG put a limit on the amount of money. So there was
some discussion about what that maximum amount of money would be. The developer was also trying to
extend the starting point of when the assessment district would come into being such as at the grading pennit
stage or building pennit or at the Ûßle of the DDA itself.
Agency/CGuncilmember Alevy stated that this won't be something which we will have to continually ..ote on,
but it will be part of an agreement that a developer will be paying these costs.
Mr. Thomson replied that this has been staff's hope and expectation.
VOI'E ON RESOLUTIONS 18001 AND ]466: Approved 4-0-1 (Moot absent).
5. L ON 1 7: APPROVING FINAL RESIDENTIAL MOVING EXPENSE CLAIMS
TOTALING$5,27 . ANT TO THE ADOPTED RELOCATION PLAN FOR 1W0 HOUSEHOLDS
FORMERLY LOCATED F SI'REET . In accordance with State law and the Purchase and Sale
Agreement with the Adamo to purc e property at 459 F Street as part of the Civic Center Expansion
Pnljed the City and Agency requires vari 'on payments for households fonnerly residina at that
location. Final Residenûal Moving Expense claims 0 be processed f()l' the tenant of Unit B and Mrs.
Adamo, the fonner owner. Staff recommends approval resolutions. (Community Development
Director)
COUNCB.. 1ŒSOLUTION 18002: AUTHORIZING THE EXPENDITURE OF .56 FROM THE
CMC CENTER EXPANSION PROJECI' (GG-13O) FOR 1W0 FINAL RESIDENTIAL MO
PURSUANT TO THE ADOPTED RELOCATION PLAN FOR HOUSEHOLDS FORMERLY RESID
459 F SI'REET
* * . End of Consent Calendar * . *
4-¿ Þ-
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AGREEMENT BETWEEN THE SAN DIEGO UNIFIED PORT DISTRICT
AND THE CITY OF CHULA VISTA TO PROVIDE
PARTIAL FUNDING FOR THE INSTALLATION OF A CIRCULATING
SEAWATER SYSTEM FOR THE CHULA VISTA NATURE CENTER
THIS AGREEMENT made and entered into this day of
, 19 -' by and betWeen the SAN DIEGO
UNIFIED PORT DISTRICT (District), a public corporation, and the CITY OF
CHULA VISTA (City), a municipal corporation of the State of California.
Recitals
WHEREAS, The District Capital Improvement Program contains One Hundred
Thousand Dollars (SlOO,OOO.OO) for the installation of a circulating seawater system for
the Chula Vista Nature Center; and
WHERE..o\S, the Bayfront Conservancy Trust (BCT) is the operating entity of the
Chula Vista Nature Center, located within the SweetWater Marsh National Wildlife
Refuge in Chula Vista; and
WHEREAS, the Nature Center is owned by the Redevelopment Agency of the
City of Chula Vista (Agency), a political subdivision of the State of California; and
WHEREAS, the BCT was incorporated by the City of Chula Vista as a nonprofit
public California corporation to oversee the Nature Center and to implement the City's
local coastal plan's environmental management provisions; and
y <{-_(,3
WHEREAS, the City of Chula Vista, Agency and BCT have a three-party
agreement for a lease, Joan and operating agreement for the Chula Vista Nature Center;
and
WHEREAS, the BCT has requested the District's allocated funds before the end
of fiscal year 1996 which ends on June 30, 1996; and
WHEREAS, the BCT will be responsible for the ongoing operation and
maintenance of the seawater system at its sole cost once it is completed; and
WHEREAS, the design documents for the installation of the seawater system have
been completed by Enartec Consulting Engineers Inc., through a separate contract with
the City,
NOW, THEREFORE, in recognition of the recitals and the mutual obligations
of the parties as herein expressed, the District and City hereby agree as follows:
The Parties Agree
1. Construction of the circulating seawater system will be as designed by Enartec
Consulting Engineers Ine., which basically specifies the materials and equipment
necessary to provide a 7S-gallon per minute circulating system for the Nature Center's
marine exhibits. The District shall have no responsibility, control or obligations for the
design, construction, maintenance or operation of the seawater system.
2. The City will advertise the project for competitive bids and award the contract
and issue the Notice to Proceed to the lowest responsible and reliable bidder.
7 q-¿,f-
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3. The City will provide construction management and administration of the
project during construction.
4. Total cost of the circulating seawater system is estimated at Five Hundred
Thousand Dollars ($500,000.00). The District will provide to City a maximum of One
Hundred Thousand Dollars ($100,000.00) as follows: Sixty Five Thousand Dollars
($65,000.00) within Thirty (30) days after the date of the contract's Notice to Proceed
and Thirty Five Thousand Dollars ($35,000.00) within Thirty (30) days after the date of
final acceptance of the completed project by the City. Payments will be made upon
written request by the City.
5. The maximum expenditure under this agreement by the District shall not
exceed One Hundred Thousand Dollars ($100,000.00). Notwithstanding such payment
to the City, District shall not be a party to the contract between the City and City's
contractor nor have any responsibility under that contract. This agreement is made
exclusively for the benefit of City and District only and not for the benefit of any third
party and no third party shall have any rights under this agreement nor shall any third
party have the right to enforce any provision of this agreement.
6. City will cause the BCT, at its sole cost and expense, to operate and maintain
the circulating seawater system. There shall be no further financial participation of any
kind by the District and any other costs, liabilities, expenses and change orders shall be
the responsibility of the City or the BCT.
? y- ~5
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7. Acquisition of all necessary permits and completion of the necessary
environmental review under California Environmental Quality Act shall be the sole
responsibility of the City and the BCT. Since a portion of the project lies within
District tidelands, a coastal development permit will be required from the District. The
District will cooperate in processing the coastal development permit expeditiously upon
submission of a completed permit application in accordance with the District's coastal
development regulations.
8. City shall indemnify, defend and save District, its officers and employees free
and harm1ess of and from all claims, demands, losses, causes of action, and liability,
including legal fees, arising out of or resulting directly or indirectly from the planning,
design, construction, maintenance or operation from the seawater system.
IN WITNESS WHEREOF, the parties hereto have caused this agreement to be
executed the day and year first above written.
DATED: ,199_. DATED: ,199_.
CITY OF CHULA VISTA SAN DIEGO UNIFIED PORT DISTRICT
By By
Approved as to form and legality Approved as to form and legality
By BY~
BRUCE M. BOOGAARD }OS D. PATELLO
ft" tf- 10 G,
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fI
C (/
Recording Requested By and
When Recorded Return to:
State Coastal Conservancy
1330 Broadway, Suite 1100
Oakland, CA 94612
Attn: Legal Counsel
EXEMPT FROM RECORDING FEES--GOV. CODE SECTION 6103
------_____--n__nn_--____-----------n__--n_--____--------------------_n______-----------------------
AGREEMENT PROTECTING THE PUBLIC INTEREST
IN CERTAIN IMPROVEMENTS AND DEVELOPMENT
(Public Resources Code § 31116(c))
Chula Vista Nature Center
This agreement is entered into by the STATE OF CAliFORNIA, acting
through the State Coastal Conservancy ("the Conservancy"), Bayfront
Conservancy Trust, a California nonprofit organization ("the nonprofit
organization"), the City of Chula Vista ("the City"), the Redevelopment
Agency of the City of Chu]a Vista ("the Redevelopment Agency"), and the
San Diego Unified Port District ("the Port District"); with respect to the rea]
property described in Exhibit A, which is incorporated by reference and
attached.
PERTINENT FACTS
A. California Public Resources Code §§ 31116 and 31400.1 authorize the
Conservancy to award grants to nonprofit organizations for the purpose
of Division 21 of the Public Resources Code.
B. Bayfront Conservancy Trust (the "nonprofit organization") is a California
nonprofit organization exempt from taxation under Section 501(c)(3) of
the United States Internal Revenue Code and has among its principal
purposes the preservation and conservation of land for scientific,
recreational, scenic and open-space opportunities.
C. The Redeve]opment Agency owns the Chula Vista Nature Center in the
City of Chula Vista, San Diego County, and holds an easement for
access to the Center over land owned by the Fish and Wildlife Service
4-61
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Public Resources Code § 31116(c) Agreement
ChuIa Vista Nature Center
of the U.S. Department of the Interior ("FWS") in the coastal zone in
San Diego County, California. The easement was recorded on June 30,
1986 in the Official Records of San Diego County as Document no. 86-
267505.
D. The nonprofit organization holds an easement dated March 3, 1990
from FWS that allows installation and operation of a flowthrough
seawater pump station and distribution system ("the seawater system")
for the Chu]a Vista Nature Center over land owned by FWS in the
coastal zone in San Diego County, California, known as Sweetwater
Marsh National Wildlife Refuge. The easement was recorded on
January 4, 1996 in the Official Records of San Diego County as
Document no. 1996-0004477.
E. The nonprofit organization holds a short term easement from the Port
District that allows installation and operation of the seawater system for
the Chu]a Vista Nature Center over land owned by the Port District in
the coastal zone in San Diego County, California. The easement was
recorded on November 21, 1995 in the Official Records of San Diego
County as Document No. 33615. The nonprofit organization is in the
process of negotiating a longer term easement from the Port District.
F. The City, the Redevelopment Agency, and the nonprofit organization
are parties to a lease, loan, and operating agreement dated May 4, 1993,
and extended as of July 25, 1995 through Ju]y 30, 1997, relating to the
Nature Center. Under the agreement, the nonprofit organization rents
the Nature Center from the Redevelopment Agency, and manages and
operates the Nature Center for public access, uses City employees as
Nature Center staff, and agrees to repay certain funds loaned to the
nonprofit organization by the City and the Redeve]opment Agency for
purposes of operating the Nature Center.
G. On March 21, 1985, the Conservancy authorized a grant to the City,
subsequently awarded under Grant Agreement # 84-67, for preparation
of the Bayfront Enhancement Plan. On March 20, 1986, the
Conservancy authorized a grant to the City, subsequently awarded under
Grant Agreement # 84-83 for construction at the Nature Center. On
September 20, 1995, the Conservancy authorized a grant to the
nonprofit organization, subsequently awarded under Grant Agreement #
95-012 to provide the seawater system for the Nature Center.
/' ~-b?
Public Resources Code § 31116(c) Agreement
Chula Vista Nature Center
H. Public Resources Code § 31116(c) requires that the Conservancy
execute an agreement sufficient to protect the public interest in any
improvements or development constructed under its grants; this
agreement must be recorded by the Conservancy in the county in which
the rea] property is located.
I. The Conservancy's grant to the nonprofit organization, referred to
above, was conditioned on the execution and recordation of an
agreement to protect the public interest in all improvements or
developments constructed with Conservancy funds and assure public
access, in accordance with Public Resources Code § 31116(c).
J. AI] parties recognize the value of the Nature Center to the public and
to the City of Chula Vista. All parties recognize the importance of
assuring that the seawater system which the Cons.ervancy is funding with
public funds can be installed, repaired, maintained, accessed, replaced,
and operated during the life of the Nature Center.
THE NONPROFIT ORGANIZATION AND THE CONSERVANCY AGREE
AS FOLLOWS, in order to carry out the purposes of Public Resources Code
§ 31116(c), and in light of the pertinent facts, above:
1. DURATION. The term of this agreement shall be from the date last
signed by a party below, through the reasonable lifetime of the
improvements made with Conservancy funds, but in no event Jess than
ten years from commencement or June 30, 2006, whichever comes first.
2. ACCESS TO THE SEAWATER SYSTEM. The City, the
Redeve]opment Agency, and the Port District shall allow the nonprofit
organization access to the seawater system for purposes of installation,
construction, repair, maintenance, access, replacement, and operation,
during the life of the Nature Center.
3. CONSTRUCTION AND MAINTENANCE. The nonprofit
organization assumes all responsibility for constructing the seawater
system in accordance with Conservancy Grant Agreement No. 95-012.
During the term of this agreement, the nonprofit organization shall
maintain and operate the seawater system and shall use it in a manner
/" 1-1, i
Public Resources Code § 31116(c) Agreement
Chura Vista Nature Center
comistent with the purposes of the Conservancy's grants to the nonprofit
organization.
4. PERMANENT CLOSURE. If for any reason the City, the
Redeve]opment Agency, or the Port District finds it necessary, and is
otherwise within its rights in permanently terminating the access of the
nonprofit organization to the seawater system, the entity closing access
shall first obtain the approval of the Executive Officer of the
Conservancy for alternate, equivalent access.
5. SIGNS. The nonprofit organization shall provide, and any other party
to this agreement shall permit, the erection of permanent signs near the
Nature Center acknowledging Conservancy assistance. The number,
design, placement and wording of the signs shall be subject to the
approval of the Executive Officer of the Conservancy.
6. INSPECTION. The other parties shall permit the Conservancy, its
agents or employees, to visit the project site at reasonable intervals to
assess progress under and compliance with this agreement and the
Conservancy's grant agreements.
7. LIABILITY. The nonprofit organization shall be responsible for,
indemnify and save harmless the Conservancy, its officers, agents, and
employees from any and all liabilities, claims, demands, damages or
costs resulting from, growing out of, or in any way connected with or
incident to the property and improvements on it, except for active
negligence of the Conservancy, its officers, agents or employees. The
duty to indemnify and save harmless includes the duty to defend as set
forth in Civil Code Section 2778. The nonprofit organization waives any
and all rights to any type of express or implied indemnity or right of
contribution from the Conservancy, its officers, agents or employees, for
any liability resulting from, growing out of, or in any way connected with
or incident to the properties and improvements on them.
8. SUCCESSORS TO THE NONPROFIT ORGANIZATION. If, for any
reason, including, but not limited to the dissolution and winding up of
the nonprofit organization, the nonprofit organization is unwilling or
unable to meet its obligations under this agreement, the Executive
Officer of the Conservancy shall have the right to designate a public
entity or nonprofit corporation to assume the responsibilities of the
/ 1-7D
Public Resources Code § 31116(c) Agreement
Chula Vista Nature Center
nonprofit organization under this agreement. The successor shall have
the same rights and obligations under this agreement as the nonprofit
organization.
9. SUCCESSORS IN INTEREST. The terms of this agreement shall be
binding on all successors and assigns of the parties to this agreement.
10. FORBEARANCE NOT A WAIVER. Any forbearance on the part of
the Conservancy, or its successor in interest, to enforce the terms and
provisions of this agreement in the event of a breach shall not be
deemed a waiver of the Conservancy's right regarding any subsequent
violation or breach.
11. SEVERABILITY. If any of the provisions of this agreement are found
by a court of Jaw to be of no force or effect, the validity of all other
provisions shall be unaffected.
12. NOTICES. Notices issued pursuant to this agreement shall be sent to
the following addresses (or to a subsequent address of which notice has
been provided in writing):
Executive Officer
State Coastal Conservancy
1330 Broadway, Suite 1100
Oakland, CA 94612
Executive Director
Bayfront Conservancy Trust
100 Gunpowder Point Drive
Chula Vista, CA 91910
Mayor
City of Chula Vista
276 4th Avenue
Chura Vista, CA 91910
Chair
Redeve]opment Agency of the City of Chula Vista
276 4th Avenue
Chu]a Vista, CA 91910
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Public Resources Code § 31116(c) Agreement
Chu)a Vista Nature Center
Port Director
San Diego Unified Port District
P.O. Box 488
San Diego, CA 92110
13. RECORDATION. This agreement shall be recorded in the official
records of the County of San Diego.
14. LOCUS OF CONTRACf. This agreement is entered into in the
County of Alameda, California.
STATE OF CALIFORNIA (The Conservancy)
Michae] L. Fischer Date
Executive Officer
State Coastal Conservancy
BAYFRONT CONSERVANCY TRUST (The Nonprofit Organization)
[authorized signature] Date
[print or type name]
[title]
~ if - 7?-
Public Resources Code § 31116(c) Agreement
Chuta Vista Nature Center
CITY OF CHULA VISTA (The City)
[authorized signature] Date
[print or type name]
[title]
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
(The Redevelopment Agency)
[authorized signature] Date
[print or type name]
[title]
SAN DIEGO UNIFIED PORT DISTRICT (The Port District)
[authorized signature] Date
[print or type name]
[title]
[ACKNOWLEDGEMENTS]
? <f- 73
EXHIBIT A - Property Description
Chula Vista Nature Center
location: .A certain parcel of ,:,eal property situated in the City
of Chula Vlsta, County of San Dle90, State of California and more
particularly described as follows: '
Along a nontangent line North 80"12'58" West
39.05 feet; thence North 00"15'26" East 195.23
feet; thence North 08"36'54" West 58.28 feet;
thence North 50"52'22" West .221.67 feet; thence
North 34'33108" East 159.09 feet~ thence North
72°44'57" East 75.24 feet; thence South 56 °08' 50"
East 283.08 feet; thence South 74'56'10" East
141.62 feet to a point on the arc of a nontangent
900.00 foot radius curve concave Northwesterly, a
radial line to said point bears South 71'55'52"
East; thence Southwesterly alon9 said curve
through a central angle of 11'31'34" an arc
distance of 181.05 feet; thence along a
nontangent line South 47'52'32" West 293.90 (eet;
thence North 80.12'58" West 24.98 feet to the
TRUE POINT OF BEGINNING.
¡r 1- 71
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C.
AGREEMENT TO PROVIDE PUBLIC ACCESS
AND TO OUALIFY NONPROFIT ORGANIZATION
FOR LIMITED PUBLIC ENTITY TORT IMMUNITY
Chula Vista Nature Center, San Diego County
THIS AGREEMENT is entered into in California this - day of
, 19- in California, by the State Coastal Conservancy, an
agency of the State of California ("the Conservancy"), Bayfront Conservancy
Trust, a California nonprofit organization ("the nonprofit organization"), the
City of ChuJa Vista ("the City"), and the Redeve]opment Agency of the City
of Chula Vista ("the Redevelopment Agency"). The nonprofit organization
will provide access as specified, and in consideration will receive limited tort
immunity under Government Code §§ 831.2, 831.25, 831.4, and 831.7.
PERTINENT FACTS
A California Public Resources Code § 31400.1 authorizes the Conservancy
to award grants to a nonprofit organization which is a public land trust
having an agreement with the Conservancy under California
Government Code § 831.5(b), and having among its purposes
development and operation of public accessways along the California
coast.
B. Bayfront Conservancy Trust (the "nonprofit organization") is a California
nonprofit organization exempt from taxation under Section 501(c)(3) of
the United States Internal Revenue Code and has among its principal
purposes the preservation and conservation of land for scientific,
recreational, scenic and open-space opportunities.
C. The Redevelopment Agency owns the Chula Vista Nature Center in the
City of Chu]a Vista, San Diego County, and holds an easement for
access to the Nature Center over land owned by the Fish and Wildlife
Service of the u.S. Department of the Interior ("FWS") in the coastal
zone in San Diego County, California. The easement was recorded on
June 30, 1986 in the Official Records of San Diego County as Document
no. 86-267505.
D. The nonprofit organization holds an easement dated March 3, 1990 from
FWS that allows installation and operation of a flowthrough seawater
pump station and distribution system ("the seawater system") for the
Chula Vista Nature Center over land owned by FWS in the coastal zone
Þf-15
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PUBUC ACCESS AGREEMENr (Gov. Code § 8315) Page 2
Chula Vi'ta Nature System
in San Dieg9 County, California, known as Sweetwater Marsh National
Wildlife Refuge. The easement was recorded on January 4, 1996 in the
Official Records of San Diego County as Document no. 1996-0004477.
E. The nonprofit organization holds a short term easement from the Port
District that allows installation and operation of the seawater system for
the Chu]a Vista Nature Center over land owned by the Port District in
the coastal zone in San Diego County, California. The easement was
recorded on November 21, 1995 in the Official Records of San Diego
County as Document No. 33615. The nonprofit organization is in the
process of negotiating a longer term easement from the Port District.
F. The City, the Redevelopment Agency, and the nonprofit organization
are parties to a lease, Joan, and operating agreement dated May 4, 1993,
and extended as of July 25, 1995 through July 30, 1997, relating to the
Nature Center. Under the agreement, the nonprofit organization rents
the Nature Center from the Redeve]opment Agency, and manages and
operates the Nature Center for public access, uses City employees as
Nature Center staff, and agrees to repay certain funds loaned to the
nonprofit organization by the City and the Redevelopment Agency for
purposes of operating the Nature Center.
G. On March 21, 1985, the Conservancy authorized a grant to the City,
subsequently awarded under Grant Agreement # 84-67, for preparation
of the Bayfront Enhancement Plan. On March 20, 1986, the
Conservancy authorized a grant to the City, subsequently awarded under
Grant Agreement # 84-83 for construction at the Nature Center. On
September 20, 1995, the Conservancy authorized a grant to the nonprofit
organization, subsequently awarded under Grant Agreement # 95-012 to
provide the seawater system for the Nature Center.
H. The Conservancy's grant to the nonprofit organization, referred to
above, was conditioned on the execution and recordation of an
agreement to assure public access and to provide the nonprofit
organization with limited tort immunity, in accordance with Government
Code § 831.5.
I. AI] parties recognize the value of public access to the Nature Center to
the public and to the City of Chula Vista. AI] parties recognize the
importance of assuring that the seawater system which the Conservancy
is funding with public funds can be installed, repaired, maintained,
accessed, replaced, and operated during the life of the Nature Center.
j,f- 7~
PUBUC ACŒ!SS AGREEMENT (Gov. Code § 831.5) Page 3
Chula V;sta Nature System
SCOPE OF AGREEMENT
.
California Government Code § 831.5 affords to certain nonprofit
organizations the benefits of limited "pub]ic entity" status for purposes of
limiting their tort liability under Government Code §§ 831.2, 831.25, 831.4
and 831.7 (collectively attached as Exhibit A). To secure these benefits, a
participating nonprofit organization must (in addition to satisfying other
conditions) enter into an agreement with the Conservancy under Government
Code § 831.5(b)(3). That section requires the participating organization "to
hold the lands or, where appropriate, provide nondiscriminatory public access
consistent with the protection and conservation of either coastal or other
natural resources or both." The purpose of this agreement is to comply with §
831.5(b)(3).
1. The nonprofit organization hereby certifies that:
a. It exists under § 501(c) of the Interna] Revenue Code.
b. Its articles of incorporation specify as among its principal charitable
purposes the conservation of land for scientific, recreational, scenic
or open space opportunities.
2. The nonprofit organization shall provide nondiscriminatory public access
over the real property, consistent with the protection and conservation of
either coastal or other natura] resources, or both. In particular, the
nonprofit organization shall permit reasonable, frequent, and convenient
public access to the Nature Center that it manages, and shall assure that
the seawater system is built and continues to function to enhance the
public's experience at the Nature Center.
3. In consideration for providing access as required above, the nonprofit
organization, pursuant to Government Code Section 831.5, is qualified
with limited status as a public entity for purposes of statutory immunity
under Government Code Sections 831.2, 831.25, 831.4 and 831.7 from
tort liability on the real property.
4. During the pendency of this agreement, the City and the Redevelopment
Agency shall neither hinder public access nor interfere with the
nonprofit organization's required provision of public access at the Nature
Center.
;.(-77
-
PUBUC ACCESS AGREEMENT (Gov. Code § 831.5) Page 4
Chuta Vista Nature System
5. The nonprofit organization shall have a permanent sign or signs erected
on the site or sites subject to this agreement, identifying the project.
The nonprofit organization shall further make best efforts to have a sign
or signs erected between the accessway and the nearest public highway
directing the public to the accessway. The number, design, placement
and wording of the above signs shall be subject to the approval of the
Executive Officer of the Conservancy.
AUTHORITY
This agreement was authorized at a duly noticed meeting of the Conservancy
held on September 20, 1995.
FAILURE TO PERFORM
Failure of the nonprofit organization to provide the required access over any
portion(s) of the separate properties which it owns shall disqualify the
nonprofit organization from treatment as a "pub]ic entity" with regard to that
property or those properties as to which such access is not provided.
Determination of any such failure shall be by majority vote of the
Conservancy following a duly noticed public hearing, and disqualification shall
not take effect until such a vote has been cast.
TERM OF AGREEMENT
This agreement shall remain in effect until and unless terminated for cause by
the Conservancy or at will by the nonprofit organization; provided however,
that the nonprofit organization may not terminate this agreement as long as it
has not fully performed its obligations under any grant agreement with the
Conservancy which was entered into in express reliance on this agreement.
Cause for termination means failure by the nonprofit organization to provide
access in accordance with this agreement. This agreement shall terminate
only upon a majority vote of the Conservancy or at the will of the nonprofit
organization.
INSPECTION
The nonprofit organization shall permit the Conservancy, its agents or
employees, to visit the project site at reasonable intervals to determine
whether access is being provided to the public on a nondiscriminatory basis in
accordance with this agreement.
;/-1f
PUBUC ACCESS AGREEMENr (Gov. Code § 8315) Page 5
Chula Vista Natu... System
SEVERABILITY
If any provision of this agreement is held by any court to be invalid, void or
unenforceable, the remaining provisions shall nevertheless continue in full
force and effect.
NOTICES. Notices issued pursuant to this agreement shall be sent to the
following addresses (or to a subsequent address of which notice has been
provided in writing):
Executive Officer
State Coastal Conservancy
1330 Broadway, Suite 1100
Oakland, CA 94612
Executive Director
Bayfront Conservancy Trust
100 Gunpowder Point Drive
Chura Vista, CA 91910
Mayor
City of ChuJa Vista
276 4th Avenue
Chu]a Vista, CA 91910
Chair
Redeve]opment Agency of the City of Chula Vista
276 4th Avenue
Chura Vista, CA 91910
LOCUS
This agreement is deemed to be entered into in the County of Alameda.
STATE OF CALIFORNIA
Michael L. Fischer Date
Executive Officer
State Coastal Conservancy
4 - 79
PUBUC ACCESS AGREEMENT (Gov. Code § &31.5) Page 6
Chula Vista Nature System
BAYFRONT CONSERVANCY TRUST
(The Nonprofit Organization)
[authorized signature] Date
[print or type name]
[title]
CITY OF CHULA VISTA
(The City)
[authorized signature] Date
[print or type name]
[title]
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
(The Redeve]opment Agency)
[authorized signature] Date
[print or type name]
[title]
[ACKNOWLEDGEMENTS]
q~J'{)
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-
Exhibit (continued)
GOVERNMENT CODE
f 831.%5. Land failure caused by natural condition
(a) Neither a public entity- nor a public employee is liable for any damage or injury to property, or
for emotional distress unless the plaintiff has suffered substantial physical injury, off the public
entity's property caused by land failure of any unimproved public property if the land failure was
caused by a natura] condition of the unimproved public property.
(b) For the purposes of this section, a natural condition exista and property shall be deemed
unimproved notwithstanding the intervention of minor ÙDprovements made for the preservation or
prudent management of the property in its unÙDproved state that did not conb-¡òute to the land
failure.
(c) As used in this section, '~and failure" means any movement of land, including a landslide,
mudallde, creep, subsidence, and any other gradual or rapid movement of land.
«I) This section shan not benefit any public entity or public employee who had actual notice of
probable damage that is likely to occur outside the public property because of land failure and who
fails to give a reasonable warning of the danger to the affected prope~ owners. Neither a public
enti nor a ublic em 10 ee is liable for an damage or ini ariain m the 'vin of a warnin
un er seetion.
(e) Notlùng in this section ahalllinút the immunity provided by Seetion 831.2.
(1) Nothing in this section ereatea a duty of care or basis of liability for damage or injury to
property or of liability for emntional distress.
(Added by Stats.1984, e. 1071, f 1. Amended by Ststs.1988, e. 1034, f 1.)
1- tJ--
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RESOLUTION NO. /13)/
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA RESCINDING COUNCIL RESOLUTION NO.
18188, ACCEPTING A $100,000 GRANT FROM THE SAN
DIEGO PORT DISTRICT'S CAPITAL IMPROVEMENT
PROGRAM, APPROVING THE AGREEMENT AND
AUTHORIZING THE MAYOR OF THE CITY OF CHULA
VISTA TO EXECUTE AN AGREEMENT WITH THE SAN
DIEGO UNIFIED PORT DISTRICT, AND
REAPPROPRIATING $100,000 TO CIP PROJECT #GG-
155 FOR CONSTRUCTION OF A CIRCULATING SEAWATER
SYSTEM AT THE CHULA VISTA NATURE CENTER
WHEREAS, at its January 23,1996 meeting, the Chula Vista
City Council approved Resolution No. 18188 which accepted a grant,
appropriated funds and approved an agreement with the Port District
for a $100,000 grant for a seawater system at the Nature Center;
and
WHEREAS, the Agreement approved by Council included a
phrase in Paragraph #6 stipulating that the City would operate the
system as long as it was economically feasible; and
WHEREAS, the Port and City want the agreement to reamin
silent as to the duration of the covenant inasmuch as both parties
understand the clause was intended to address the distribution of
operational and maintenance costs to one party or the other, not
the duration of the Agreement.
NOW, THEREFORE, BE IT RESOLVED the City Council of the
city of Chula Vista does hereby rescind Council Resolution No.
18188.
BE IT FURTHER RESOLVED that the City Council does hereby
accept a $100,000 grant from the San Diego Port District's Capital
Improvement Program.
BE IT FURTHER RESOLVED that the City Council does hereby
approve an Agreement between the San Diego Unified Port District
and the City of Chula vista to Provide Partial Funding for the
Installation of a Circulating Seawater System for the Chula vista
Nature Center, 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.
.i-J-!3
-
BE IT FURTHER RESOLVED that $100,000 is hereby
reappropriating $100,000 to CIP Project #GG-155 for construction of
a circulating seawater system at the Chu1a Vista Nature Center.
Presented by (led .,
Stephen Neudecker, Executive Bruce M.
Director, Bayfront Conservancy Attorney
Trust
1--71
-
RESOLUTION NO. /13) y
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AUTHORIZING THE MAYOR TO EXECUTE
TWO AGREEMENTS WITH THE CALIFORNIA STATE
COASTAL CONSERVANCY TO PROTECT THE PUBLIC
INTEREST IN THE SEAWATER SYSTEM, TO PROVIDE
PUBLIC ACCESS AND TO QUALIFY THE BCT FOR
LIMITED PUBLIC ACCESS AND TO QUALIFY THE BCT
FOR LIMITED PUBLIC ENTITY TORT IMMUNITY
WHEREAS, the Chula vista City Council approved a $400,000
grant from the State Coastal Conservancy for a flow-through
seawater system at its December 5, 1995 meeting in addition to the
$100,000 grant from the San Diego Unified Port District; and
WHEREAS, the California State Coastal Conservancy is
requiring the execution of two agreements to protect the public
interest prior to the release of their $400,000 grant for the
seawater system.
NOW, THEREFORE, BE IT RESOLVED the City Council of the
City of Chula Vista does hereby approve an "Agreement to Protect
the Public Interest in certain Improvements and Development" and an
"Agreement to Provide Public Access and to Qualify Nonprofit
Organization for Limited Public Entity Tort Immunity", copies of
which are on file in the office of the City Clerk.
BE IT FURTHER RESOLVED that the Mayor of the City of
Chula vista is hereby authorized and directed to execute said
Agreements for and on behalf of the City of Chula vista.
Presented by ?Xl'
Stephen Neudecker, Executive Bruce M. Boog
Director, Bayfront Conservancy Attorney
Trust
Þ¡I- YS
-
This page blank.
1;..¡¿
RESOLUTION NO. /~O~
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE
CITY OF CHULA VISTA AUTHORIZING THE CHAIRMAN
TO EXECUTE TWO AGREEMENTS WITH THE CALIFORNIA
STATE COASTAL CONSERVANCY TO PROTECT THE
PUBLIC INTEREST IN THE SEAWATER SYSTEM, TO
PROVIDE PUBLIC ACCESS AND TO QUALIFY THE BCT
FOR LIMITED PUBLIC ENTITY TORT IMMUNITY
WHEREAS, the Chula vista City Council approved a $400,000
grant from the State Coastal Conservancy for a flow-through
seawater system at the Chula vista Nature Center at its December 5,
1995 meeting in addition to the $100,000 grant from the San Diego
Unified Port District; and
WHEREAS, the Redevelopment Agency owns the Nature Center
building and has the easement to the Nature Center; and
WHEREAS, the California State Coastal Conservancy is
requiring the execution of two agreements by the City, the
Redevelopment Agency, and the Bayfront conservancy Trust to protect
the public interest prior to the release of their $400,000 grant
for the seawater system.
NOW, THEREFORE, BE IT RESOLVED the city Council of the
city of Chula vista does hereby approve an "Agreement to Protect
the Public Interest in certain Improvements and Development" and an
"Agreement to Provide Public Access and to Qualify Nonprofit
Organization for Limited Public Entity Tort Immunity", copies of
which are on file in the office of the City Clerk.
BE IT FURTHER RESOLVED that the Chairman of the
Redevelopment Agency of City of Chula vista is hereby authorized
and directed to execute said Agreements for and on behalf of the
Redevelopment Agency.
Presented by
Stephen Neudecker, Executive
Director, Bayfront conservancy
Trust
c: Irslseawater.1
1-g7
This page blank.
1-~cF
REDEVELOPMENT AGENCY AGENDA STATEMENT
Item~
Meeting Date OS/28/96
ITEM TITLE: Resolution ;SD3 Authorizing a Waiver of Outstanding
Conditions to Close Escrow Under Section 2.4a of the Disposition and
Development Agreement between the Redevelopment Agency and
Broadway Village Business Homes, loP., concerning the Provision of
E.;d,oœ 0' A,œ",bI, COO¡;"OO;og
SUBMITTED BY: Community Development Dire 0 ~~
REVIEWED BY: Executive DirectoJ~~ (4/5ths Vote: Yes - No XI
-----..
BACKGROUND: Escrow has been opened for he sale of Agency property located at 760
Broadway to Lenore and Josef Citron dba Broadway Village Business Homes, loP., for
development of a mixed use project. One of the conditions for close of escrow is the provision
of evidence of approved construction financing by the Developer. The Developers had a
construction loan commitment from the San Diego National Bank which expired due to the
extended plan review period, additional project cost and need to reappraise the project. The bank
has reviewed the project and has issued a new, conditional loan commitment letter which, in
staff's determination, does not meet all of the requirements of Section 2.4a of the Disposition and
Development Agreement (DDA). The additional research required to analyze the impact of the
conditions of this section on the bank will take several weeks to a month to complete and will thus
delay the close of escrow and demolition of buildings on the site. In order not to delay
development of the project any further, the Developer has requested that the Agency authorize
closing to proceed on the strength of the conditional commitment letter from the bank. If the
Agency wishes to proceed with the close of escrow without fully satisfying the conditions of
Section 2.4a of the DDA, a waiver of the disputed conditions will be necessary.
RECOMMENDATION: That the Agency adopt the Resolution authorizing staff to waive
outstanding conditions to close escrow under Section 2.4a of the DDA.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
Section 2.4 of the DDA stipulates the conditions which the Developer must meet in order to close
escrow. These include:
(a) Approved Financing
(b) Approved Market Study
(c) Payment of Purchase Price
(d) Pre-sale Requirement (none for Phase 1)
(e) Required Entitlements (assessment district, parcel map, CC&Rs, etc...).
As of this date, all of these requirements have been met with the exception of approved financing.
A letter of commitment has been received from the San Diego National Bank (attached as Exhibit
A) which contains several conditions which provide the Agency with less assurance than required
in Section 2.4a, subsections iv and vi (attached as Exhibit B). The lender conditions the loan
approval on due diligence review and approval of the project DDA. The lender has hired an
5" -I
-
Page 2, Item ~
Meeting Date OS/28/96
attorney to advise them as to the impacts of these conditions upon their investment in the project.
A response from the lender is expected later this week.
In addition, a major issue is that the lender requires that there not be any junior financing secured
by the same property. The Developer has deposited $300,000 in escrow, of which $200,000 are
borrowed funds to be secured by the property when escrow closes. The Developer has stated that
this is a bridge loan which will be reduced and appropriately collateralized by the time that the
construction loan closes (estimated to be one month after escrow closes). There is no guarantee
to the Agency that this will occur and, therefore, presents a risk. A letter is pending from the
lender to confirm that the bridge loan will be reduced and collateralized in a manner that will not
constitute a junior financing on the property.
Finally, the lender has requested a reappraisal of the project due to the extended review period and
added costs. If the reappraisal does not equal or exceed $1,175,000, the lender could reduce or
cancel the loan commitment. Although this is not anticipated to be a problem, there is potential
risk to the Agency.
The Developer has requested that the Agency authorize the closing of escrow on the strength of
the conditioned loan commitment letter in order not to further delay demolition and project
development activities. The Agency can do so by waiving provisions 2.4a iv and vi of the DDA
based upon the reasonable assumption that the construction loan will be approved. However, the
risk to the Agency will be that, subsequent to sale of the property, the lender may determine that
certain provisions of the DDA are not in their best interests and require renegotiations of those
provision (subject to Agency review and approval) or denial of the loan in which case the
Developer will have to seek a new lender or surrender the property to the Agency. Demolition of
structures on the property (possible destruction of value) will have already taken place.
The most conservative action on the part of the Agency would be to not close on the property nor
demolish buildings until all of the problematic conditions of the loan commitment are resolved.
This should occur within two to three weeks. However, staff and the City Attorney's Office feel
that, with receipt of the lender's letter confirming the absence of a junior loan problem, the other
issues that are not in technical compliance with the DDA (reappraisal value and due diligence DDA
review and approval) can be successfully resolved, pose no significant risk to the Agency, and can
be appropriately waived. Staff will advise the Agency on the status of the lender letter at this
meeting.
If the Agency wishes to expedite the project it is recommended that the Agency authorize waiver
of outstanding conditions to close escrow as requested. Pursuant to recent conversations with
the lender, staff is confident that all outstanding issues can be resolved with minor revisions to
the DDA.
FISCAL IMPACT: The Phase 1 property to be conveyed to the Developer through escrow is valued
at $286,000 which will accrue to the Agency less normal closing costs (approximately $10,000).
Completion of demolition is expected to cost $89,000. Removal of asbestos from the buildings
has been completed at a cost of $18,000.
The Agency also authorized a loan to the Developer to cover permit costs. Funds for this loan,
totalling up to $117,000 will also come from disposition proceeds. The closing of escrow will
thus net the Agency $70,000 and a commitment from the Developer to repay the loan.
5-r
Page 3, Item .5
Meeting Date OS/28/96
The financial impacts associated with waiver of conditions of the DDA and closing escrow before
the loan is fully approved are:
. Demolition of the buildings on the site before the Agency is assured that the project
will move forward may destroy potential value if property has to be re-marketed.
. Legal expenses associated with taking back the property if the project is not
developed.
M,'HOM ElCOMMDEV\KASSMAN\AMENDDDA. RM
5-3
May-21-96 08:55A JoseT & Lenore C;tron 619 223-3313 P-O2
MAY-2l-96 WED 8:21 All C. B. H. V FAX 110. 619 4230884 P. I
-
1 ',j - EXHIBIT "A"
~ 1420 Itct- Iou'",..
"0 010'" Ca,_.;, "'0'
r"op....., 01!1.2Jt.""
M8y21. t996
Ik. .ID8epII CIron
- ~ CiIIDR
4000 CoIanado sa, RollI
Coron8llo, CA 92118
Re: ~ IiIIncin !'cr. III pOiIIcI SIX unil°Bu.ineso HomN° ptOjecIloc8Iod cnl!loachlo8y, ~ J &
K Sbels.1n CIM8 VIlla. CA.
Dear M'.1IId M'I. CiIm:
ThIs œ/IU XIIldenct is .. 00IIIIt'IIIneIt 01 AnIs "'" mnsIIucIion fin~ 01 "" 8IIcIoe reI8nIncQd pro lel1y. TIis
œmmIImenIls .... to ... i6>wiIIO tens 8l1li cancIitÐ!Is.
IORIlOWEIt 8RIaiIw8y 8usineM Homes. LP.
GIlNIAIfTORI: JosepI1 & I..8nDrw Ollm
CraIg & Joa1 CiIII1n
INTIItØT RATE: Saft Ciego NationoIllri's PIi'ne rate (cundy 8M) p~ 2œ b8sis pOin s (2.00%)
IIo8\Ing YoÏIIIa 2.0 point ($16,450) loan oñgInlliOl1lee, ThllIoan wil 11M a 12 rrcn1h
1nI.
Tlwloln WIIUId be inIIMIcny nI )Iid.tfI«tit tom 11\ int8r8II_111 $61.000,
The ~ tIIIo wi be lIdjusIed montIIly " belela\8 dIangM.
LOAN AMOUffT: TIlt "'*' amount Is $822.500. The beI...- w be /llqulted III ~ lilt bank ¥Mh
$476,881 of loll! fII'OItd c:oÑ, aII- eqaIIy. which iII11l be 811 oIbet to tøtaI pIOjecI
c:oeII. TNt COIIW'IIImenI Is contingent on pJOjeçt COllI IIIIIIIIirq ¥II same prfcr In
~. Us1ed btIowil I SOUICI 8l1li 11M 0Ib'da blSldon!he ÞOIIoMr bud ll!:
- Lctn
Jg [ fIœ fIædI
LIIId $ il.601 'SUey -
COomIoiOll (:mIs 1, ¡1,630 215,- 738.300
~ 25.200 25.200
~ R8ooM; .B11:!2 .JLIIQ!I
,.0481 11,2118.481 1411,8111 $822,5011
Eqllilr=mollolll~"""'.
p,ge1
w/10'd l£;œ 96, œ fit!w
5~4
-
May~21-96 OB:55A JOSGT & Lanora C;tron 619 223-3313 P.O3
MAY-2J-96 WED 8:21 AM C. B. H. V FAX 110. 619 4230884 P. 2
l "¡ Iff a::8 (~96-TZ-mt
COllA T£IW.; SIn Dîø8O NaIionIIII 8n VIlli hold a ,.. 11l1li. deed 011 the ptOþQStd six home
dtI'a/opmInt. lander 10 be pnl\idId ØIIa Nuranae, wIIh exœplillns II> Iendefs
atIIf8cIion, lnauñng the <01>0... reI6.......J lion posiIIon. No jlloõor hnelng "'" ..,
atowe6.
MISC. PftOVIIIONS; 1. AI œnsIJucIiDn lunds WI be IIsbtnsed !hrough a fund c:ontrd.
2. BII'Ic IIppI8ÍJef mull ap )IOW IinII plans 8M map oJ IIU JOged projIcI. Sucb
I IpIIMI \ltl be solely at Sri's and eøøralWs 1fsaIÖIn.
3. Ph_II en\flÐnmental œøort dxtJÄIg l1li flee oIlIM'oIluen. CCII1IIIIIIIIns.
4. ThilIQIIMIIf IIiII PlY a ~ f8e 01 $5OOœ, life, l2COI'ding. bid
oonRt. InspeçlMJn 8I1d IVCOftIIY;I .... .1IIqÙrIC! and laX S8Mce/Iood .... In
the 8 IIV drr1IIt amount 01 Sð4.50. Thl Þonorafv.....-.!ln ~ be I9QVir9d II¡
0 -....-...--
~. Bri b I8'IItw Md 8 I IftMI. lit blftk's sole dlscreâon, ... ÐIspoeìb aoid
0MI0pmecIt 111-- '*- tie Cty 01 Clllia VIsta end BroIcIway
8u8Ine88 Ham., LP.
Ii. A IprIis8I uøcIaIII wItI III appr8II8d llllueol not.lI. 51, T7S.ooo.
7. No 1M,.. ehqe in ~ t'rIIIIdaI COIdIixI.
ThIs cornmImenl will be in II'8cI unIIAuguII15, 1996.
..... 9Ne me e all_III you hale MY questIOns I>t conoems. We look forward to VIIIÜ1I wi1I1)'OO.
~.
-#~
. R8rmn
Vial PI8IidInI
RR:¡8
"'2
ZO1'~' d 8t;œ 96. œ Iæ .¡
5-c;
May-21-96 08:55A JoseT & Lenore C;tron 619 223-3313 P.O4
MAY-2I-96 WED 8:56 AM C. B. H. V FAX no. 619 4230884 P. ¡
BROADWAY BUSINESS HOMES VILLAGE
CASH EXPENDITURES TO DATE
DATE: May 21.1996
C.W. Kim, AlA. ArchitecturB Design $140.999.67
(Reimburseables) 4,231.41
City of Chute Vista 38,003.26
Chicago Title. deposit In escrow for land 300.000.00
purchase
Nollie Study 1,770.00
Appraisal 4.500.00
landscapIng (Design &. Process) 2.876,32
leval 51.847.63
Accounting 600.00
SoDs Testing 6,600,00
Engineering 55.068,86
SDG&.E 6.471.00
Sweetweter Authority - Weter Service Fee 2,000,00
A&'P 11,271.03
A&G 13.043.00
Kathleen Kilman. AIBD, Interior D88lgn 3.000.00
GTE Mobllnet 674.35
Courier Service 168.58
Chula Vista Chamber of Commerce ¡membership) 150.00
Misc. (Council mt(!. video tapes) 26.00
ORAND TOTAL: $641.999.10
yÝ f} ~
~ ~/ - êJL~
S)¡/J'¡;
)/z(J'?~
5-~
May-21-96 08:55A JoseT & Lenore C;tron 619 223-3313 PoOl
To: Dave Gustafson
Company: C. V. R. D. A.
Phone: 691-5047
Fax: 476-5310
From:
Company:
Phone:
Fax:
Date: ,1996
Pages incl. this page:
"
-
-..,:~ \ .doc
766 Bangor Street, San Diego, CA 92106
5'1
May-2l-96 08:55A Joser & Lenore C;tron 6l9 223-33l3 P.O2
MAY-2l-96 WED 8:21 ill C. B. H. V FAX no. 619 4230884 P. I
1 'ci !IV e::8 G3tl96-ll-J.YJ{
. ~ 1420 Ittt- 100'......
'Ia. 01.... Cal;!",.;. f"..
"1",.".: .'9.:1>1,0-
Mey21. 1996
/k. JatI III CInIn
t.h. ~ CIIIDa
0lO0O CoIwdo Bay Road
CooQnIllo, CA 92118
Re: ConIInAc:CIon ~ fOr. propotlld six """'Businesi ~. ptojtc:t IOcaIød on Broadway. beIMen J &
K S1rMIs.In C/R VIlla, CA.
Dear Iot'. 8l1li Ms. Cift :
ThIs /XIIIt!pðI1dence is . IXIIIIIIIImeI1I 01 AIII4s ~ constnIdion financi"e 01.. IIJoM¡e IefMnced IIOpetIy. This
CDIIIII1IhIIft Is "'-10 118 iIIowitIø Ien$IIId oanditÐns.
~ 8tœdMy 8usiI1eM Homes. LP.
GUAIWfTOIt8: Joseøb & I..8oonJ OIrCh
Craig & Joan CImIn
INTPØT RATE: San Cløgo NaIfon¡¡ Brit IIÍ1Ie raIe (QlnenIy ~) pbS ZOCt b8sis poIn s (2.00%)
IIo8fIng Y/itIt . 2.0 point ($16.450) loan oñginllliOn lee. ThIs loan VIii 11M. 12 mon1h
ttnn.
The loan -ø1 lit inIÞnI8t Ifrit one! peid I1!CIIIINy tam 811 inInII- III 11'.000.
The ~"*' wi lit IIdju8Itd montI>ly ÌI .. '* c:hqM.
LOAN AMOUNT: The klwllIIICUIIIls sm.500. The 110- WI be lIIqund 10 IIO'o!dv lilt bIIIk IIØh
$476,W7 of loll! pro 8cI c:o;1a, as - equIIy, whicll ¥IIflJ œ 811 oIIMt II føtaI prajecI
coeI8. ,.,. commiImerd 18 conIinglnt on plOjett COlIs ~ V18 - plÌCf 10
~. LIa18d bebw is lSOUrcelll1Cl,," Of b'd8 bald on !he ~ bud¡¡øt:
- Loon
1* r.œ fI!I!IIdt
L.ud . i1,C;O1 S Ite01 -
CODmIoiOll Casts '.121,630 )85,330 138,300
~ 25,200 26.200
1nInoI- ß\!!!2 .JLIIIII
Tc181 11,210.481 1411.1181 $822.500
Ec¡1Ii1J-37'Atol-pqecl-.
p,ge'
i:O/iO'd l£;œ 96. œ Iìew
5~~
-
May-21-9G OB:55A JOSeT & Lenore Citron 619 223-3313 P.O3
MAY -21-96 WED 8:21 AM C. B. R V FAX 110. 619 4230884 P. 2
l 'a II'i 8::8 (3\ 96-IZ-mI
COUJ. TÐtAL; San IIiQeo N8IiotIaI eri YIDI hold . S.- 1ruM deed on the P/OPOMd six home
dtY8Iopnent. lender 10 bt proIo'id8d tIIIa inIIuranœ, loth lapllOha 10 Iendets
aIafaction. inluñng !he abo.... reIefenced lion posiIIon. No junior IinancIng >MIl be
aIoWe<I.
MISC. PftOVIIIONS: 1. AI oonstndin IIIl'ds .. be dIoburaed Ihrough a fund conlld.
2. 81M Ipp'*' musll IIOW! IinII pin am map of IIO IOIIId projocl SUch
II IpIIII'8J wi! be solely 818""$ and 8 )p1!1se(s dscnItion.
3. 1'11_11 emfmnmenIa IIIIXX!IktJÃIg siI8 flee of IIMuIdIIeII1II oonI8mIn81Is.
4. ThB ~ !iii PlY a dœumønf¡¡ gq fee 01 SSJO.oo. !We, ~, MId
cormt Ins!*lion and rwtOIIIng ,",.18qIÒd and laX 88r<fc8/Iood IIIM:8In
!he I I IQ IimIIIt - of $84.50. TIII~....mn wiI be requìed 11/
IXIIQJfe II loan ~ 10 !he lenders Nti8/don.
~. 8It* to mIew !lid 8ppftMI, .. baIIk'. soli discretion, 1he Dbpaoi1Ion .nd
DMIopmefIt ...-- ~ lie Cty 01 Clwla Vista Ind BrvøcMy
BœIMIa Hamal, LP.
6. Appr8iIaI uødate will... appraIIed V81uøof not_"111 $1,175,000.
1. No 8M," çhqe in ~ hnc!aI c:ordIìIn.
ThIs~..btinllr8dunUAu Utt15, 1996.
p-- 9'" me . cJI1 thoulll )IOU 11M Fitly quesllanS fY 00- We look fIxwan III wormg willi yua.
SinœrIIf.
~-,gQ
Roger RiIrMn
Vte PmIdanI
RR:¡a
Pogo t
W~'d In::œ ~.œ~
5-q
May-21-96 OB:55A JoseT & Lenore C;tron 619 223-3313 P.O4
MAY-2I-96 WED 8:56 AM U.H.V FAX ¡¡o. 619 4230884 P. 1
BROADW A V BUSINESS HOMES VILLAGE
CASH EXPENDITURES TO DATE
DATE: May 21.1996
C.W. Kim. AlA. Architeçtural Design t'40.999.67
(ReimbUfseliblesJ 4,231.41
City of Chute Vista 38,003.26
Chicago Title. depoSit In escrow for land 300.000.00
purchase
Noise Study 1.710.00
Appraisal 4.500.00
landSCliping (Design &: Process) 2,876.32
Legal 51,847.63
Accounting 600,00
sons Testing 6,600.00
Engineering 55,068.86
SDG&E 6.471.00
Sweetwater Authority. Water Service Fee 2,000.00
A&P 11,271.03
A&G 13,043.00
Kathleen Kilman, AIBD, Imerlor Design 3.000.00
GTE Mobllnet 674.35
CourIer Service 168.58
Chula Vista Chamber of Commerce (membership) 150.00
Misc. (Council mtg. video tapas) 26.00
QRANDTOTAL: .641.999.10
~ P j}~
,~/-.' - ~~\-/
S)Ij7¿
) fit) '110
5-/0
, ..
EXHIBIT "B" -
Developer and the Executive Director of Agency, each exercising
their sole discretion.
l~conditions to Developer's Riqht to Acquire bite.
Developer's right to acquire any portion of the Site shall be
subject to the satisfaction of the following conditions precedent
for the benefit of the Agency:
(a) Approved Financinq. Developer must present to
the Agency staff evidence of acceptable financing for construction
of improvements on the Phase to be acquired. Acceptable financing
entails a lender: (i) of excellent reputation which is reasonably
acceptable to the Agency; (ii) who validly èommits in writing on-
specified objective terms and conditions reasonably approved by
Agency to finance the construction of the phase improvements
pursuant to a disbursement schedule which is reasonably acceptable
to the Agency; (iii) who agrees that loan proceeds will only be
used for costs associated with the Project pursuant to this
Agreement; (iv) whose documentation permits the acquisition,'"
without discount.or recourse, of the loan by the Agency (or its
assignee) in the event this Agreement is terminated as a result of.
a Developer default and the Agency takes back the property (as~
described in Section 6.7 below); (v) who agrees to release any
designated areas to the assessment district that will own and
maintain such areas without consideration upon the conveyance of
the first unit; and (vi) who agrees to enter into an agreement with,
the Agency concerning the Agency's right to reenter the property
on the terms and conditions set forth in Section 6.7 of this
Agreement;
(b) Approved Marketinq Study. Developer shall
present to Agency staff in writing a marketing study prepared by
Developer demonstrating substantial demand for Business Homes units
in the Phase to be acquired, including, without limitation, a list,
with names and addresses, of interested or pre-committed
purchasers, which shall be subject to reasonable approval by Agency
staff;
(c) Payment of Purchase Price: Payment of Closinq
Costs. Developer shall pay the purchase price for such Phase, and
shall pay Developer's share of closing costs;
(d) Pres ale Requirement. There shall be no presale
requirement for the acquisition by Developer from Agency of Phase
1. However, in order to acquire Phase 2, as herein provided,
Developer must have sold or entered into "Qualified Sales
Contracts" to sell at least eleven (11) Business Homes units in
Phase 1. In order to constitute a Qualified Sales Contract, the
subject purchase and sale contract must meet the following
criteria:
p: \9\9484\46565\ Trans\OispAgr7. cln -7-
5-11
(c) the Deve1oper does not submit any p1ans,
drawings and re1ated documents as required by
this Agreement by the date provided in this
Agreement therefor; or
(d) the Developer does not pay the Purchase Price
and take tit1e to the app1icab1e Parce1 unde~
a tender of conveyance by the Agency pursuant
to this Agreement; or
(e) the Agency is unab1e, despite di1igent and good
faith efforts, to timely convey title to the
applicable Parcel under circumstances which
wi11 free1y permi t the parce1 to be c1eared and
deve1oped in accordance with the terms and
conditions of this Agreement; and
(f) if any defau1t or fai1ure referred to in
subdivisions (a), (b), (c), (d) or (e) of this
Section shall not be cured within thirty (30)
days after the date of written demand by the
Agency;
then this Agreement and any rights of the Developer, or any
assignee or transferee, in this Agreement, or arising therefrom
with respect to the Agency, sha11 at the option of the Agency, be
terminated with respect to any unconveyed Parcels, by written
notice to the Developer, and except to the extent provided in
Section 3.2(d), neither the Agency nor the Deve1oper sha11 have any
further rights against or 1iabi1ity to the other under this
Agreement with respect to any unconveyed Parce1s, or with respect
to the entire Site if no Parcel has been conveyed.
~ Riqht of Reentry
The Agency shall have the right, at its option, to reenter and
take possession of any Parcel (or portion thereof) with all
improvements thereon, and to terminate and revest in the Agency the
estate theretofore conveyed to the Deve1oper if, after conveyance
of title to such Parcel and prior to the recordation of the
Certificate of Comp1etion pertaining to such parce1 (or portion
thereof), the Deve1oper (or its successors in interest) sha11:
(a) fail to commence or comp1ete construction of
the improvements on such Parcel (or portion
thereof) as required by this Agreement for a
period of three (3) months after written notice
to proceed from the Agency, provided that the
Developer shall not have obtained an extension
or postponement to which the Deve1oper may be
entitled pursuant to Section 7.4 hereof; or
p: \9\9484\46565\ Trans\Oi spAqr7. ç 1 n -}4-
5'/~
(b) abandon or substantially suspend construction
of the improvements on'such Parcel (or portion
thereof) for a period of three (3) months after
written notice of such abandonment or
suspension has been given by the Agency to the
Developer, provided the .Developer has not
obtained an extension or postponement to which
the Developer may be entitled to pursuant to
Section 7.4 hereof; or
(c) assign or attempt to assign this Agreement, or
any rights herein, or transfer, or suffer any
involuntary transfer of such Parcel, or any
part thereof, in violation of this Agreement,
and such violation shall not be cured within
thirty (30) days after the date of receipt of
written notice thereof by the Agency to the
Developer.
Such right to reenter, repossess, terminate and revest shall
be subject to and be limited by and shall not defeat, render
invalid or limit:
(a) any mortgage, deed of trust or other security
interests permitted by this Agreement with
respect to the applicable Parcel;
(b) any rights or interests provided in this
Agreement for the protection of the holders of
such mortgages, deeds of trust or other
security interests.
The rights established in this Section 6.7 shall not apply to
any Parcel (or portion thereof) on which the improvements to be
constructed thereon have been completed in accordance with the
Agreement and for which a Certificate of Completion has been
recorded therefor as provided in Section 4.7.
The Grant Deed to each Parcel shall contain appropriate
reference and provision to give effect to the Agency's right, as
set forth in this Section 6.7 under specified circumstances prior
to the recordation of the Certificate of Completion, to reenter
and take possession of the Parcel, or any part thereof, with all
improvements thereon, and to terminate and revest in the Agency the
estate conveyed to the Developer.
Upon the revesting in the Agency of title to the applicable
Parcel, or any part thereof, as provided in this Section 6.7 the
Agency shall, pursuant to its responsibilities under state law, use
its best efforts to resell the Parcel, or any part thereof, as soon
and in such manner as the Agency shall find feasible and consistent
with the objectives of the Community Redevelopment Law and the
Redevelopment Plan to a qualified and responsible party or parties
p: \9\9484\46565\ T rans\DispAgr7. c 1 n -)5-
5~ /?J
(as determined by the Agency), who will assume the obligation of
making or completing the improvements, or such other improvements
in their stead, as shall be satisfactory to the Agency and in
accordance with the uses specified for the Parcel, or any part
thereof, in the Redevelopment Plan. Upon such resale of the
Parcel, or any part thereof, the proceeds thereof shall be applied:
.
(a) first, to payoff all liens and encumbrances
and offsets for any Developer defaults; and
(b) second, to reimburse the Agency on its own
behalf or on behalf of the City of all costs
and expenses incurred by the Agency, including
but not limited to salaries to personnel
engaged in such action, in connection with the
recapture, management and resale of the Parcel,
or any part thereof (but less any income
derived by the Agency from the sale of the
Parcel, or any part thereof, in connection with
such management); all taxes, assessments and
water .and sewer charges with respect to the
Parcel or any part thereof (or, in the event
the Parcel, or any part thereof, is exempt from
taxation or assessment or such charges during
the period of ownership, then such taxes,
assessments or charges, as would have been
payable if the Parcel, or part thereof, were
not so exempt); any payments made or necessary
to be made to discharge or prevent from
attaching or being made any subsequent
encumbrances or liens due to obligations,
defaults. or acts of the Developer, its
successors or transferees; any expenditures
made or obligations incurred with respect to
the making or completion of the agreed
improvements or any part thereof on the Parcel,
or any part thereof; and any amounts otherwise
owing to the Agency by the Developer and its
successor or transferee.
Any balance remaining after such reimbursements shall be
retained by the Agency as its property.
The rights established in this Section 6.7 are to be
interpreted in light of the fact that the Agency will convey each
Parcel to the Developer for development and not for speculation in
undeveloped land.
p: \9\9484\46565\ T rans\OispAgr7. c 1 n ~--
5-/~
RESOLUTION ¡50.?
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
AUTHORIZING A WAVIER OF OUTSTANDING CONDITIONS TO CLOSE ESCROW UNDER
SECTION 2.4a OF THE DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE
REDEVELOPMENT AGENCY AND BROADWAY VILLAGE BUSINESS HOMES, loP.,
CONCERNING THE PROVISION OF EVIDENCE OF ACCEPTABLE CONSTRUCTION
FINANCING
WHEREAS, the Agency entered into that certain Disposition and Development Agreement
(DDA) dated August 1, 1995 with Broadwa'y Village Business Homes, loP. (the "Developer") dated
which includes, under Section 2.4, Conditions to Developer's Right to Acquire Site, subsection (a),
conditions of Approved Financing; and,
WHEREAS, Under Section 2.4a of the DDA, the Developer is to present the Agency staff
evidence of acceptable financing for construction of improvements from a reputable lender whose
loan documentation will permit the acquisition, without discount or recourse, of the loan by the
Agency in the event that the DDA is terminated due to Developer Default and the Agency takes
back the Property (subsection iv), and who agrees to enter int an agreement with the Agency
concerning the Agency's right to reenter the property on terms and conditions set forth in Section
6.7 of the DDA (subsection vi); and,
WHEREAS, the San Diego National Bank (the "Bank") has issued a loan commitment letter
to the Developer which is conditioned on the Bank's review and approval of the DDA at its sole
discretion and which is currently in process; and
WHEREAS, the Developer has requested that the Agency waive those certain conditions
under Section 2.4a, iv and vi so as to not delay the close of escrow due to financial and practical
hardships caused by further delay; and,
WHEREAS, the Developer has represented he has received an acquisition loan which will
be secured by lots 7 through 18 or paid off before or at the time of the construction loan closing;
and
WHEREAS, the Agency has determined that it is in the best interests of the success of the
project to expedite the close of escrow and that the granting of the requested waivers will not
present undue risk or harm to the Agency.
NOW THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA does
hereby find, order, determine and resolve to waive Sections 2.4a, iv and vi of the Disposition and
Development Agreement by and between the Redevelopment Agency and Broadway Village
Business Homes, loP. dated August 1, 1995, concerning conditions of Approved Financing for the
Broadway Village Business Homes project.
PRESENTED BY: APPROVED AS TO FORM BY:
IBBIC:IWP51 \AGENCYIRESOSIRES01503.RESI
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