HomeMy WebLinkAboutRDA Packet 1995/09/05
Tuesday, September 5, 1995 Council Chambers
4:00 p.m. - Public Services Building
(immediately following the City Council meeting)
Joint Meeting of the Redevelooment Agency/Citv Council
of the CitY of Chula Vista
CALL TO ORDER
1. ROLL CALL: Agency/Council Members Alevy -' Moot -, Padilla_,
Rindone -' and Chair/Mayor Horton -
2. APPROVAL OF MINUTES: August 15,1995
CONSENT CALENDAR
(Items 3 through 4)
The staff recommendations regarding the following items list;d under the Consent Calendar will be enacted by
the Agency by one motion without discussion unless an Agency, a member of the public or City staff requests
that the item be pulled for discussion. If you wish to speak on one of these items, please Fill out a "Request to
Speak Form" available in the lobby and submit it to the Secretary of the Redevelopment Agency or the City Clerk
prior to the meeting. (Complete the green form to speak in favor of the staff recommendation; complete the pink
form to speak in opposition to the staff recommendation.) Items pulled from the Consent Calendar will be
discussed after Action Items. Items pulled by the public will be the first items of business.
3. WRlTIEN COMMUNICATIONS:
4. AGENCY/COUNCIL
REPORT AUDITED FINANCIAL STATEMENTS FOR FISCAL YEAR ENDED
JUNE 30, 1994--Pursuant to City Charter Section 1017, an annual audit is
performed of the City's rmancial records by an independent accounting rum.
Staff recommends that Council and Agency accept the reports. (Director of
Finance) .
. . END OF CONSENT CALENDAR' .
PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES
The following items have been advertised and/or posted as public hearings as required by law. If you wish to
speak to any item, please fill out the "Request to Speak Form" available in the labby and submit it to the
Secretary of the Redevelopment Agency or the City Clerk prior to the meeting. (Complete the green form to speak
infavorofthe staffrecommendation; complete the pinkform to speak in opposition to the staffrecommendation.)
Comments are limited to five minutes per individual.
"I declare under penalty of perjury that 1 am
emnlo"ed by the City of Chula Vista in the
Co';'mun'ty Development Department and that I posted ,'"
this Ar.enóa/Notice on the Bulletin Board at the
rublic ~.'fl;5,uílding and at 9ity H~
r',Q,L. !3IGNED~...L ~ '
Agenda -2- September 5, 1995
5. COUNCIL
PUBLIC HEARING ADDENDUM TO TIlE 1993 UPDATE OF TIlE PUBLIC FACILITIES
DEVELOPMENT IMPACT FEE, WITH NO CHANGE; IN TIlE FEE
AMOUNT --On 5/23/95, Council detertnined that the El Dorado office building,
315 Fourth Avenue (a facility proximate to the Civic Center and capable of
meeting the City's interim office space needs) is currently available for purchase
at a reasonable price. Council directed staff to pursue the City purchase of the
building as part of the Civic Center DIF. The purchase is anticipated to be an
interim step in the implementation of the Civic Center Master Plan and is not
expected to affect the end cost of the project. The proposed addendum to the
Public Facilities DIF will not impact the level of fees assessed. Staff
recommends approval of the resolution. (Deputy City Manager Krempl and
Senior Management Assistant Young) Continued from the meetim! of 8/15/95
COUNCIL
RESOLUTION 18028 APPROVING AN ADDF..NDUM TO TIlE 1993 UPDATE OF TIlE PUBLIC
FACILITIES DEVELOPMENT IMPACT FEE, WITH NO CHANGE IN
TIlE FEE AMOUNT
6. JOINT AGENCY/COUNCIL
PUBLIC HEARING SALE OF AGENCY PROPERTY LOCATED AT 315 FOURTH AVENUE
WITHIN TIlE TOWN CENTRE I REDEVELOPMENT PROJECT AREA
TO TIlE CITY OF CHULA VISTA, CALIFORNIA, WITHOUT PUBLIC
BIDDING--Staff informed the Agency at its 5/23/95 meeting the three
proposals received for purchase of the building were unacceptable. The Agency
directed staff to prepare a Purchase and Sale Agreement for Agency/Council
review and approval, Staff recommends approval of the resolutions.
(Community Development Director) Continued from the meetin!! of 8/15/95
A. AGENCY
RESOLUTION 1458 APPROVING SALE'OF CERTAIN PROPERTY LOCATED AT 315
FOURTH AVENUE WITHIN THE TOWN CENTRE I
REDEVELOPMENT PROJECT AREA TO TIlE CITY OF CHULA
VISTA, CALIFORNIA WITHOUT PUBLIC BIDDING, APPROVING
PURCHASE AND SALE AGREEMENT WITH TIlE CITY OF CHULA
VISTA, CALIFORNIA, AND AUTHORIZING TIlE CHAIRMAN TO
EXECUTE SAME
B. COUNCIL
RESOLUTION 17926 APPROVING TIlE PURCHASE OF CERTAIN PROPERTY WCATED
AT 315 FOURTH AVENUE WITHIN TIlE TOWN CENTRE I
REDEVELOPMENT PROJECT AREA FROM TIlE REDEVELOPMENT
AGENCY, APPROVING A PURCHASE AND SALE AGREEMENT WITH
TIlE REDEVELOPMENT AGENCY OF TIlE CITY OF CHULA VISTA,
CALIFORNIA, AND AUTHORIZING TIlE MAYOR TO EXECUTE
SAME
7. AGENCY
PUBLIC HEARING TO CONSIDER GRANTING A SPECIAL LAND USE PERMIT TO
ALLOW A USED CAR LOT AND AN AUTOMOTIVE SERVICE
CENTER AT 801 BROADWAY WITHIN TIlE SOUTHWEST
REDEVELOPMENT PROJECT AREA IN CHULA VISTA -- The applicant
proposes to use the site for the establishment of an RV Parts Store, a Used Car
Lot and an automotive service center. The lot and automotive service center
require a Conditional Use Permit (Special Land Use Permit when located within
--
Agenda -3- September 5, 1995
the redevelopment areas. Staff recommends approval of the resolution.
(Community Development Director)
AGENCY
RESOLUTION 1468 MAKING CERTAIN FINDINGS AND ,APPROVING A SPECIAL LAND
USE PERMIT TO ALLOW A USED CAR LOT AND AN AUTOMOTIVE
SERVICE CENTER AT 801 BROADWAY WITHIN TIlE SOUTHWES~
REDEVELOPMENT PROJECT AREA IN CHULA VISTA
ORAL COMMUNICATIONS
This is an opportunity for the general public to address the Redevelopment Agency on any subject matter within
the Agency's jurisdiction that is not an item on this agenda. (State law, however, generally prohibits the
Redevelopment Agency from taking action on any issues not incladed 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,
ACTION ITEMS
The items listed in this section of the agenda are expected to elicit substantial discussions and deliberations by
the Agency, staff, or members of the general public. The items will be considered individually by the Agency
and staff recommendations may in certain cases be presented in the alJemative. Those who wish to speak, please
fill out a "Request to Speak" form available in the lobby and submit it to the Secretary to the Redevelopment
Agency or the City Clerk prior to the meeting. Public comments are limited to five minutes.
None Submitted.
ITEMS PULLED FROM TIlE CONSENT CALENDAR
This is the time the Redevelopment Agency will discuss items which have been removed from the Conseat
Calendar. Agenda items pulled at the request of the public will be considered prior to those pulled by Agency
Members, Public comments are limited to five minutes per individual.
OTIlER BUSINESS
8. DlRECTOR'S/CITY MANAGER'S REPORT(S)
9. CHAIR'S/MAYOR'S REPORTCS)
10. AGENCY/COUNCIL MEMBER COMMENTS
Agenda -4- September 5, 1995
ADJOURNMENT
The meeting will adjourn to (a closed session and thence to) the Regular Redevelopment Agency Meeting on
September 19, 1995 at 6:00 p.m., immediately following the City Council meeting, in the City Council Chambers.
CLOSED SESSION
Unless Agency Counsel, the Executive Director, or the Redevelopment Agency states otherwise althis time, the
Agency will discuss and deliberate on the following items of business which are permitted by law to be the subject
of a closed session discussion, and which the Agency is advised should be discussed in closed session to best protect
the interests of the City. The Agency is required by law to return to open session, issue any reports ofÊ!1!1l action
taJœn in closed session. and the votes taken. However, due to the typical length of time taken up by closed sessions,
the videotaping will be terminated at this point in order to save costs so that the Agency's return from closed
session, reports of Ê!1!1l action taken, and adjournment will not be videotaped. Nevertheless, the report of final
action taJœn will be recorded in the minutes which will be available in the Office of the Secretary to the
Redevelopment Agency and the City Clerk's Office.
II. CONFERENCE WITH REAL PROPERTY NEGOTIATOR
Give Instructions to Negotiators pursuant to Government Code Section 54956.8
a. Proposed sale of property: Parcel Us 563-350-13 and 566-13l,{)J),
Negotiating Party: Chris Salomone, Redevelopment Agency and Barry Silverton, Pacific Malibu
Development Corporation and Steve and Les Warner of Warner Properties
Price and Payment Terms.
b. Property: School District property next to Community Hospital Medical Center
Negotiating parties: John D. Goss, City Manager and Robert Griego, Sweetwater Unified High School
District
Under negotiation: Price and Payment Terms,
12. REPORT OF ACTIONS TAKEN IN CLOSED SESSION
......
COMPLIANCE WITH TIlE 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 (TOO)
at 619.585.5647. California Relay Service is also available for the hearing impaired.
[c: \ WP51 IAGEN CYIAGENO AS\O9-o5-95 . AGO]
--
MINUTES OF A JOINT MEETING OF TIlE CITY COUNCIL/REDEVELOPMENT AGENCY
OF TIlE CITY OF CHULA VISTA
Tuesday, August 15, 1995 Council Chambers
7:58 p.m. Public Services Building
CALL TO ORDER
1. ROLL CALL:
PRESENT: Agency/Councilmembers Alevy, Padilla, Rindone, and Mayor Horton.
ABSENT: Agency/Councilmember Moot
ALSO PRESENT: John D. Goss, Executive Director/City Manager; Bruce M. Boogaard, Legal
Counsel/City Attorney; and Beverly A. Authelet, City Clerk.
MSC (Alevy/Horton) to excuse Agency/Councilmember Moot since he was out of town on business and unable
to get back to for the meeting.
2. APPROVAL OF MINUTES: August 1, 1995 (Joint meeting of the Redevelopment Agency/City Council);
August 1, 1995 (Special joint meeting of the Redevelopment Agency/City Council)
MSC (HortonlPadilla) to approve the minutes. (Moot absent)
CONSENT CALENDAR
(Item pulled: 4)
BALANCE OF TIlE CONSENT CALENDAR OFFERED BY AGENCY/COUNCILMEMBER RINDONE,
reading of the text was waived, passed, and approved ~1 (Moot absent).
3. WRITTEN COMMUNICATIONS: There were none.
4. COUNCIL RESOLUTION 18001 AND AGENCY RESOLUTION 1466: APPROVING AMENDMENT
TO A THREE-PARTY AGREEMENT BETWEEN TIlE CITY OF CHULA VISTA, REDEVELOPMENT
AGENCY, AND CHULA VISTA BAYFRONT CONSERVANCY TRUST FOR A LEASE, LOAN AND
OPERATING AGREEMENT FOR TIlE CHULA 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. Sbff is recommending the lease and loan aspects of the Agreement be
extended until the end of July 1997. Sbff recommends approval of the resolutions. (Administration).
Agency/Councilmember Padilla asked for clarification of the figures listed and sources of the revenues shown
on page 4-9 of the sbff report. He asswned that he was looking at previous loans 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?
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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 environmental 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 Lippitt, stated that we have five sewer funds, 220 through 225. Each one
has a different 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 if they 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 cents per month. This is used to repair and reline
existing sewers as they wear out.
Agency/Councilmember 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 basically for any construction sewer purpose. What happened in this case, we installed a sewer in the
roadway going to the Nature Interpretive Center. Because of environmental 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.
Agency/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. Lippitt 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 normal 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 particular 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/Councilmember 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 be 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
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Minutes
August 15, 1995
Page 3
almost $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
correct?
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 the Bayfront development would have gone ahead
much earlier and that the 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 has 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 tenDing this a loan, this was really a
construction 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 we anticipate being loaned during IT 95/96 or thereafter.
RESOLUTIONS 18001 AND 1466 OFFERED BY AGENCY/COUNCILMEMBER PADILLA, reading of texts
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 within 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 deficit, then it becomes a substantial liability.
Why raise the issue? He did not feel that the Council wanted to play ostrich and bury its head 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, donations,
grants, legislative actions because we cannot 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.
02-3
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Minutes
August 15, 1995
Page 4
City Manager Goss stated that the staff at Bayfront Conservancy'Trust has been very successful in getting
grants, but they are primarily for capital improvements not operations. He assured Council that each year
when we do the budget, this is a very obvious issue as to how it impacts the 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 revenue because of the recession, to the possibility of the Port providing
the money for Nature Interpretive 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 through that development. That is where we were until August 1994 when the
development 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 the 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 Alevy 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 obligations for a
lot of other facilities. There were discussions in that development agreement of recovering past costs.
Mr. Thomson stated that the developer was also trying to 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 permit
stage or building permit or at the time of the DDA itself.
Agency/Councilmember Alevy stated that this won't be something which we will have to continually vote 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.
VOTE ON RESOLUTIONS 18001 AND 1466: Approved 4.0-1 (Moot absent).
5. AGENCY RESOLUTION 1467: APPROVING FINAL RESIDENTIAL MOVING EXPENSE CLAIMS
TOTALING $5,274.56 PURSUANT TO TIlE ADOPTED RELOCATION PLAN FOR TWO HOUSEHOLDS
FORMERLY LOCATED AT 459 F SfREET - In accordance with State law and the Purchase and Sale
Agreement with the Adamo to purchase the property at 459 F Street as part of the Civic Center Expansion
Project the City and Agency requires various relocation payments for households formerly residing at that
location. Final Residential Moving Expense claims need to be processed for the tenant of Unit B and Mrs.
Adamo, the former owner. Staff recommends approval of the resolutions. (Community Development
Director)
COUNCIL RESOLUTION 18002: AUTHORIZING THE EXPENDITURE OF $5,274.56 FROM THE
CMC CENTER EXPANSION PROJECT (GG-l3O) FOR TWO FINAL RESIDENTIAL MOVING CLAIMS
PURSUANT TO TIlE ADOPTED REWCATION PLAN FOR HOUSEHOLDS FORMERLY RESIDING AT
459FSfREET
* * * End of Consent Calendar * * *
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Minutes
August 15, 1995
PageS
PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES
6. PUBLIC HEARING: SALE OF AGENCY PROPERTY LOCATED AT 315 FOURTH AVENUE
WITHIN TIlE TOWN CENTRE I REDEVELOPMENT PROJECT AREA TO TIlE CITY OF CHULA
VISTA, CALIFORNIA, WITHOUT PUBLIC BIDDING - Staff informed the Agency at its 5/23/95 meeting
the three proposals received for purchase of the building were unacceptable. The Agency directed staff to
prepare a Purchase and Sale Agreement for Agency/Council review and approval. Continued from the
August 1, 1995 meeting. Staff............... the public bearing be mntinued to September 5, l'J95.
MSC (Alevy/Padilla) to continue to September 5, l'J95. (Moot absent)
ORAL COMMUNICATIONS
None
ACTION ITEMS
None
7. DIRECTOR'S/CITY MANAGER'S REPORTS: Mr. Goss announced that the new Sports Authority will
have their grand opening on Thursday, August 16, 1995 (where the Home Depot used to be). They will have
a special guest, basketball star, Kareem Abdul-Jabar, from 6:00 p.n.
8. CHAIR'S/MAYOR'S REPORT: None
9. AGENCY/COUNCILMEMBER'S COMMENTS: None
ADJOURNMENT
Chair/Mayor Horton adjourned the meeting at 7:30 p.m. to the next regular Redevelopment Agency meeting
on September 5, 1995 at 4:00 p.m. immediately following the City Council meeting.
Respectfully submitted,
Beverly A. Authelet, CMC/AAE
City Clerk
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02.-(0
JOINT COUNCIL/REDEVELOPMENT AGENCY
AGENDA STATEMENT
Item t/
Meeting Date 09/05/95
ITEM TITLE: Audited Financial statements for Fiscal Year ended
June 30, 1994
SUBMITTED BY: Director of Finance~
REVIEWED BY: City Manageryr ~ (4/5ths Vote: Yes---No-K-)
kr
Presented for Council/Agency infc¡rmation and acceptance are the
Audited Financial statements for the fiscal year ended June 30,
1994, as prepared by the independent audit firm of Deloitte &
Touche.
RECOMMENDATION: That Council and the Agency accept the Auditor's
Reports.
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 international firm of Deloitte & Touche 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 30,1994, 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, Deloitte & Touche
evaluated the internal control procedures of the City and issued a
management letter indicating that they found no material
weaknesses.
The accounting firm also produced a Single Audit Report required by
the Federal Government for grant recipients, and a report covering
the 1983 series A Home Mortgage Revenue Bonds as required by the
legal documents for that issue.
J/-/
Page 2, Item 1
Meeting Date 9/05/95
The reports are unusually late this year due to various reasons,
but primarily due to a determination to make several presentation
changes in order to more accurately reflect the intent of certain
debt and inter fund advance transactions. These changes
necessitated a prior year change in the method of accounting for
accrued interest expense on inter fund advances, which required a
restatement of the prior year ending fund balance. This was a
complicated issue that required the approval of the auditor's
national office partners. Such approval necessarily results in a
rigorous and lengthy review process, which caused a significant
delay in issuing the audit reports.
A representative from Deloitte & Touche is available to answer any
questions.
FISCAL IMPACT: There is no fiscal impact to the City or Agency
from this action. The contract for the audit services totaled
$54,307 for the year reported.
J-/~;L
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Deloitte &
Touche LLP REDEVELOPMENT AGENCY
Item #4
0 September 5, 1995
CITY OF CHULA VISTA, CALIFORNIA
GENERAL PURPOSE FINANCIAL STATEMENTS
AND ADDITIONAL INFORMATION FOR THE
YEAR ENDED JUNE 30,1994
AND INDEPENDENT AUDITORS' REPORT
Oeloittø Touche
Tollnatsu
International
CITY OF CHULA VISTA
TABLE OF CONTENTS
YEAR ENDED JUNE 30,1994
Page
INDEPENDENT AUDITORS' REPORT I
GENERAL PURPOSE FINANCIAL STATEMENTS:
Combined Balance Sheet - All Fund Types and Account Groups 24
Combined Statement of Revenues, Expenditures, and Changes in Fund Balances -
All Governmental Fund Types and Expendable Trust Funds 5
Combined Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual (Non-GAAP Budgetary Basis) - Certain Governmental Fund Types 6-7
Combined Statement of Revenues, Expenses, and Changes in Retained Earnings -
Proprietary Fund Type 8
Combined Statement of Cash Flows - Proprietary Fund Type 9
Notes to Combined Financial Statements 10-29
ADDITIONAL INFORMATION:
General Fund:
Schedule of Revenues - Budget and Actual (Non-GAAP Budgetary Basis) 30
Schedule of Expenditures - Budget and Actual (Non-GAAP Budgetary Basis) 31
Special Revenue Funds:
Combining Balance Sheet 32-33
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
(Deficit) 34-35
Schedule of Revenues - Budget and Actual (Non-GAAP Budgetary Basis) 36-38
Schedule of Expenditures - Budget and Actual (Non-GAAP Budgetary Basis) 3940
Debt Service Funds:
Combining Balance Sheet 41
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 42
Capital Projects Funds:
Combining Balance Sheet 4344
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
(Deficit) 4546
Trust and Agency Funds:
Combining Balance Sheet 47
.Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -
Expendable Trust Funds 48
Combining Statement of Changes in Assets and Liabilities - Agency Funds 49-50
Proprietary Funds:
Combining Balance Sheet 51
Combining Statement of Revenues, Expenses, and Changes in Retained Earnings
(Deficit) 52
Combinjng Statement of Cash Flows 53
.,;
-.-
Deloitte &
Touche LLP
0 Suite 1900 Telephone: (619) 232-6500
701 "B" Street In Telex: 4995722
San Diego. California 921 01-8198 Facsimile: (619) 237-1755
INDEPENDENT AUDITORS' REPORT
City Council
City of Chula Vista, California
We hav~ audited the accompanying general purpose financial statements of the City ofChula Vista,
California., as of June 30, 1994, and for the year then ended, listed in the foregoing table of contents.
These general purpose financial statements are the responsibility of the City of Chula Vista, California
management, Our responsibility is to express an opinion on these general purpose financial statements
based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. 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. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An
audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
In our opinion, such general purpose financial statements present fairly, in all material respects, the
financial position of the City ofChula Vista, California at June 30, 1994 and the results of its
operations and the cash flows of its proprietary fund type for the year then ended in conformity with
generally accepted accounting principles.
As discussed in Note B to the general purpose financial statements, in 1994 the City of Chula Vista,
Califomia changed its method of accounting for taxpayer-assessed tax revenues in governmental funds
to conform with Statement of Governmental Accounting Standards No. 22.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial
statements taken as a whole. The combining and individual fund financial statements, account group
and schedules listed in the foregoing table of contents, which are also the responsibility of the
management of the City of Chula Vista, California., are presented for purposes of additional analysis
and are not a required part of the general purpose financial statements of the City of Chula Vista,
California, Such additional information has been subjected to the auditing procedures applied in our
audit of the general purpose financial statements and, in our opinion, is fairly presented in all material
, respects when considered in relation to the general purpose financial statements taken as a whole.
~ r ~ '¿"-'/'
October 13, 1994
DelolttøTouche
Tohmatsu - I -
~ InternatiPnal
.,
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CITY OF CHULA VISTA
.' COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30, 1994
Fiduciary
Governmental Fund T(pes Capital Fund Type
SpeCIal Deb Totals
General Revenue Service Projects Expendable (Memorandum
Fund Fund Fund Fund Trust Only)
REVENUES:
Taxes $27,276,897 $11,377,797 $ 4,315,702 $ 251,335 $ 43,221,731
hltergovernmenlal 14,587,130 4,525,789 2,867.083 21,980,002
Licenses and permits 1,669,969 1,669,969
Charges for services 2,609,651 13,341,948 15,951,599
Fines and forfeitures 238,764 151,139 389,903
Revenue from nse of money
and property 764,132 2,286,659 414,596 1,987,883 $ 194,075 5,647,345
Otlter 405,470 2,267,084 611,045 2,812,675 6,096,274
Deve!opmenl fe,s 4,635,204 4,635,204
TOlal ,"vennes 47,552,013 33,950,416 4,730,298 10,352,550 3.006,750 99,592,027
EXPENDTIlJRES:
Cnrrent:
General govenmtenl 11,607,560 10,920,071 2,850,704 25,378,335
Public safety 24,180,423 24,180,423
Public works 12,445,498 10,451,117 22,896,615
Parks and recreation 4,729,480 4,729,480
Library 3,295,298 181,859 3,477,157
Capital outlay:
Capital projects 13,556,464 13,556,464
Debt service:
Pension obligation 16,049,201 16,049,201
Principal retirement 35,393 2,329,200 209,607 2,574,200
hlteresl and charges 144,277 4,722,600 64,776 4,931,653
Tmstee expense 154,099 154,099
Premium on called bonds 71,324 71,324
Tolal expenditnres ~ 21,732,717 23,326,424 13.830,847 2,850,704 117,998,951
Excess of expenditures over revenues (8,706,246) 12,217,699 (18,596,126) (3,478,297) 156,046 (18,406,924)
OTHER FINANCING SOURCES
(USES):
Transfers in 7.039,381 2,538,338 3,641,245 7,896,334 15,874 21,131,172
Transfers out (3,120,024) (11,907,054) (594,755) (4,971,111) (175,997) (20,768,941)
Contribution from property
owners 3,499,273 3,499,273
Installment purchase (Note J) 370,000 370,000
Tax increment shift to ERAF (232,815) (232,815)
Proceeds from sale of bonds (Note J) 19,901,532 19,901,532
Contribution to developer (Note 1) (2,600,000) (2,600,000)
Increase in reserves for amounts due
ti-om oilier funds and loans receivable 4,917,845 340,970 - - 5,258,815
Total oilier sources (uses) 8,837,202 (9,260,561) 20,348,022 6,794,496 (160,123) 26,559,036
Excess of revenues and oilier
rmancing sources over (under)
expenditures and oilier rmancing uses 130,956 2,957,138 1,751,896 3,316,199 ~) 8,152,112
FUND BALANCES, JULY I, 1993 13,703,548 35,624,478 8,623,169 24,977,865 1,510,908 84,439,968
Accounting change adjustments (Note B) 2,527,162 825,633 3,352,795
Prior period adjustment (Note A) 5,208,125 - 5,208,125
As ,"slated 16,230,710 41,658,236 8,623,169 24,977,865 1,510,908 93,000,888
FUND BALANCES, JUNE 30,1994 $16,361,666 $44,615,374 $10,375,065 $28,294,064 $1,506,831 $101,153,000
See Holes to combined financial statements,
..
-5-
-,
CITY OF CHULA VISTA
. COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS)
CERTAIN GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 30, 1994
General Fund Special Revenue Fund
Actual on a Variance Actual o,n a Variance
Budgetary Favorable Budgetary Favorable
Budget Basis (Unfavorable) Budget Basis (Unfavorable)
REVENUES:
Taxes $28,515,200 $27,276,897 $(1,238,303) $10,166,018 $ 11,377,797 $ 1,211,779
Intergovernmenlal 15,665,500 14,587,130 (1,078,370) 2,743,760 4,525,789 1,782,029
Licenses and pennits 1,359,800 1,669,969 310,169
Charges for services 2,615,633 2,609,651 (5,982) 15,286,532 13,341,948 (1,944,584)
Fines and forfeitures 215,000 238,764 23,764 200,000 151,139 (48,861)
Revenue from use of money
and property 971,200 764,132 (207,068) 2,077,600 2,286,659 209,059
Otller 396,882 405,470 ~ 492,448 2,267,084 1,774,636
TOlal revenues 49,739,215 47,552,013 (2,187,202) 30,966,358 33,950,416 2,984,058
EXPENDIT1JRES:
General government 12,543,109 11,836,286 706,823 17,285,922 11,189,312 6,096,610
Public safety 23,775,619 24,225,723 (450,104)
Public works 13,089,155 12,611,430 477,725 20,780,240 10,566,466 10,213,774
Parks and recreation 4,905,029 4,813,691 91,338
Library 3,500,304 3,398,672 101,632 239,712 200,290 39,422
Debt service:
Principal retirement 35,393 35,393
hlteresl and charges - - - ~ 144,277 (140,663)
Tolal expenditures 57,813,216 56,885,802 927,414 38,344,881 22,135,738 16,209,143
Excess of revenues over
(under) expenditures (8,074,001) (9.333,789) (1,259,788) (7,378,523) 11,814,678 19,193,201
OrnER FINANCING SOURCES
(USES) 3,700,399 8,837,202 5,136,803 (8,539,554) (9,260,561) (721,007)
Excess of expenditures and
otller financing uses nver
revenues and other
rmancing sources (4,373,602) (496,587) 3,877,015 (15,918,077) 2,554,117 18,472,194
FUND BALANCES,
JULY 1, 1993 ~ ~ - 41,658,236 41,658,236
FUND BALANCES,
JUNE 3O, 1994 $11,857,108 $15,734,123 $ 3,877,015 $25,740,159 $ 44,212,353 $ 18,472,194
See notes to combined financial statements.
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.,
CITY OF CHULA VISTA
. COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS)
CERTAIN GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 30,1994 (Continued)
DEBT SERVICE FUND
Actual on a Variance
Budgetary Favorable
Budget Basis (Unfavorable)
REVENUES:
Taxes $ 3,585,000 $ 4,315,702 $ 730,702
Revenue from use of money and property 130,500 414,596 284,096
Total revenues 3,715,500 4,730,298 1,014,798
EXPENDITURES:
Paydown of pension obligation 16,049,201 {I 6,049,20 1)
Principal retirement 2,329,200 2,329,200 0
Interest 4,145,726 4,722,600 (576,874)
Trustee expense 48,400 154,099 (105,699)
Premium on called bonds 71,330 71,324 6
Total expenditures 6,594,656 23,326,424 (l6,731,768)
Excess of expenditures over revenues (2,879,156) (18,596,126) (l5,716,970)
OrnER FINANCING SOURCES 5,798,782 20,348,022 14,549,240
Excess of expenditures over revenues and
other financing sources 2,919,626 1,751,896 (I,167,730)
FUND BALANCE, JULY 1,1993 8,623,169 8,623,169
FUND BALANCE, JUNE 30, 1994 $11,542,795 $ 10,375,065 $ (I,167,730)
See notes to combined financial statements.
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"
-,
CITY OF CHULA VISTA
. COMBINED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN
RETAINED EARNINGS
PROPRIETARY FUND TYPE
YEAR ENDED JUNE 30,1994
OPERATING REVENUE:
Charges for services $2,320,222
OPERATING EXPENSES:
Operations and administration 1,635,304
OPERATING INCOME 684,918
NON-OPERATING REVENUE:
Interest. 101,870
NET INCOME BEFORE OPERATING TRANSFERS 786,788
TRANSFERS TO 01HER FUNDS (310)
NET INCOME 786,478
RETAINED EARNINGS, JULY 1,1993 1,279,094
RETAINED EARNINGS, JUNE 30,1994 $2,065,572
See notes to combined financial statements,
-8-
-
CITY OF CHULA VISTA
. COMBINED STATEMENT OF CASH FLOWS
PROPRIETARY FUND TYPE
YEAR ENDED JUNE 30,1994
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating income $ 684,918
Adjustments to reconcile operating income to net cash provided by operating activities:
Changes in assets and liabilities:
Accounts and interest receivable (8,531)
Accounts payable (53,939)
Cash advances payable (52,983)
Net cash provided by operating activities 569,465
CASH ROWS FROM NONCAPIT AL FINANCING ACTIVITIES:
Transfers to other funds (310)
Net cash used by noncapital financing activities (310)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest income 101,870
Net cash provided by investing activities 101,870
NET INCREASE IN CASH AND CASH EQUIVALENTS 671,025
CASHANDCASHEQUNALENTS, JULY 1,1993 1,726,353
CASH AND CASH EQUN ALENTS, JUNE 30, 1994 $2,397,378
See notes to combined financial statements.
-9-
,
CITY OF CHULA VISTA
NOTES TO COMBINED FINANCIAL STATEMENTS
YEAR ENDED JUNE 30,1994
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity - The accompanying financial statements comply with the provisions of the
Governmental Accounting Standards Board (GASB) Statement No. 14, The Financial ReDortin!! Entity
in that the financial statements include those activities and functions of the City and its component units:
The Chula Vista Redevelopment Agency (the "Agency")
The Chula Vista Industrial Development Authority (the "Authority").
Although the City, the Agency and the Authority are legally separate entities, the Chula Vista City
Council exercises oversight responsibility for all three entities.
Redevelopment Agency of the City of Chula Vista - The Agency was activated in October 1972
pursuant to the California Community Redevelopment Laws, for the purpose of eliminating the blighted
areas by encouraging development of residential, commercial, industrial, recreational and public
facilities. The City's Council members appoint the Agency's directors, designate management and have
full accountability for the Agency's fiscal matters. The Agency's financial data and transactions are
included with the special revenue, debt service and capital projects fund types and the general fixed
assets and general long-term debt groups of accounts.
Chula Vista Industrial Development Authority - The City formed the Authority in 1982 for the purpose
of promoting and developing commercial, industrial and manufacturing enterprise and encouraging
employment. The City's Council members appoint the Authority's directors, designate management and
have full accountability for the Authority's fiscal matters. The Authority's financial data and
transactions are included with the capital projects fund types.
Bayfront Conservancy Trust - The Chula Vista Bayfront Conservancy Trust (the "Trust") was
established to assist in carrying out the provisions of the City ofChula Vista's Local Coastal Plan, as
approved by the State Coastal Commission. The Trust is operating as a nonprofit public benefit
corporation established to ensure the protection of the environmentally sensitive areas of the Chula
Vista Bayfront. The reporting entity of the Trust includes the activities of the Trust and its bookstore
operations. Because the Trust has separate management fÌ'om the other entities of the City, and the
Trust intends to be financially independent fÌ'om the City, the Trust is reported separately.
Descriptions of Funds and Account Groups - The accounts of the City are organized on the basis of
funds and account groups, each of which is considered a separate accounting entity with a self-
balancing set of accounts. The following are the types of funds and account groups used:
Governmental Fund Types:
General Fund is used to account for all financial resources except those required to be accounted for in
another fund.
- 1O-
Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally
restricted to expenditures for specified purposes.
Capital Projects Funds are used to account for financial resources used for the acquisition or
construction of major capital fàcilities.
Debt Service Funds are established to account for tax increment revenues, bond proceeds required to be
set aside for future debt service, and related interest expense. The funds are used to repay principal and
interest on indebtedness of the City.
Proprietary Fund Types:
Internal Service Fund accounts for services performed by one governmental department for others.
Fiduciary Fund Types:
Tru!t and Agency Funds are used to account for financial resources deposited and held in a trustee or
agency capacity,
Account Groups:
The two account groups are not "funds". They are concerned only with the measurement of financial
position. They are not involved with the measurement of results of operations.
General Fixed Assets Account Group is used to account for the cost of capital assets owned by the
City.
General Long-term Debt Account Group is used to account for bonds and notes payable and other
long-term debt payable from future resources.
Basis of Accounting - Governmental fund types are accounted for using the modified accrual basis of
accounting. Revenues are recognized when they become measurable and available to finance
expenditures of the current period. Accrued revenues include taxpayer-assessed and tax increment
revenues and earnings on investments. Expenditures are recorded when the related fund liability is
incurred, except that principal and interest on general long-term debt is recognized when due, and
accumulated vacation, sick pay and compensatory time are recorded as expenditures in the year paid.
The Proprietary fund type is accounted for using the accrual basis of accounting. Revenue is
recognized when earned and expenses are recognized when incurred,
Fiduciary fund types are accounted for using the modified accrual basis of accounting. '
Budgets and Budgetary Accounting - An annual budget is adopted by the City Council prior to the first
day of the fiscal year. The budget process includes submittal of each department's budget request for
the next fiscal year, a detailed review of each department's proposed budget by the City Manager, and a
finaI City Manager recommended budget that is transmitted to the City Council for its review before the
required date of adoption. Once transmitted to the City Council, the proposed budget is made available
for public inspection. A public hearing is held to give the public the opportunity to comment upon the
proposed budget. Notice of such public hearing is given in a newspaper of general circulation.
-Il-
.
The adoption of the budget is accomplished by the approval of a Budget Resolution. The level of
budgetary control is by fund.
Any budget modifications which would result in an appropriation increase, a transfer of appropriations
among departments, or an appropriation transfer within a department for the purpose of increasing a
salary appropriation requires City Council approval. The City Manager is authorized to transfer non-
salary related appropriations within a departmental budget.
All appropriations which are not obligated, encumbered or expended at the end of the fiscal year shall
lapse and become a part of the unreserved fund balance which may be appropriated for the next fiscal
year.
An annual budget for the year ended June 30, 1994 was adopted and approved by the City Council for
the General, Special Revenue, and Debt Service Funds. The total original budget for all funds was
$87,724,804. The budgets of the Capital Projects Funds are primarily long-term budgets which
emphasize major programs and capital outlay plans extending over a number of years. Because of the
long-term nature of these projects, annual budget comparisons are not considered meaningful, and
accOrdingly, no budgetary information for Capital Projects Funds is included in the accompanying
financial statements.
During the year ended June 30, 1994, the original operating budget was modified by supplemental
appropriations totaling $14,517,393. These budget modifications were adopted and approved by the
City Council.
Formal budgetary integration is employed as a management control device. Encumbrance accounting,
under which purchase orders, contracts, and other commitments for the expenditure of monies are
recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of
formal budgetary integration, Encumbrances outstanding at year end are reported as reservations of
fund balances, since they do not constitute GAAP basis expenditures or liabilities. Fund balance
differences between GAAP basis and the City's budgetary basis of accounting are $1,030,614 of
encumbrances outstanding at year end.
The following schedule is a reconciliation of the budgetary and GAAP fund balances:
Special
General Revenue
Fund Funds
Fund balance - budgetary basis $15,734,121 $44,212,305
Outstanding encumbrances 627,545 403,069
Fund balance - GAAP basis 16,361,666 44,615,374
Total Columns on the Combined Financial Statements - Total columns on the combined statements are
captioned "Memorandum Only. to indicate that they are presented only to facilitate financial analysis.
Data in these columns do not present financial position, results of operations, or changes in financial
position in conformity with generally accepted accounting principles, nor is such data comparable to a
consolidation. Interfund eliminations have not been made in the aggregation of this data.
Reserves and Designations of Fund Equity - The City may set up "reserves" of fund equity to segregate
fund balances which cannot be appropriated for expenditure in future periods, or which are legally set
aside for a specific future use. Fund "designations" also may be established to indicate tentative plans
for financial resource utilization in a future period.
-12 -
.
General Fixed Assets - General fixed assets are recorded as expenditures of the various City funds at
the time or purchase and are subsequently capitalized for memorandum purposes in the General Fixed
Assets Account Group. Such assets include land, buildings, building improvements, furniture and
equipment. The costs of roads, streets, sidewalks, bridges, curbs, gutters, parkways, drainage and
certain improvements constructed in the public right-of-way such as lighting systems and similar assets
are not capitalized. No depreciation is provided on general fixed assets.
All fixed assets are valued at historical cost or estimated historical cost if actual historical cost is not
available. Donated fixed assets are valued at their estimated fair market value on the date donated.
Compensated Absences - The City accounts for compensated absences (unpaid vacation and sick leave)
in accordance with GASB Statement No. 16. In governmental fund types, compensated absences are
recorded as expenditures in the year paid, as it is the City's policy to liquidate any unpaid vacation or
sick leave at year end ITom future resources rather than currently available expendable resources.
Accordingly, the entire unpaid liability for the governmental funds is recorded in the General Long-
Term Debt Account Group.
Property Taxes - Under California law, property taxes are assessed and collected by the counties up to
I % of assessed value, plus other increases approved by the voters, The property taxes go into a pool
and are then allocated to the cities based on complex formulas. Accordingly, the City accrues OIùy
those taxes which are received within 60 days after year end.
The City's property taxes are levied and collected by the San Diego County Treasurer. Property taxes
(secured and unsecured) are levied on July I based upon the previous March I assessed values as
determined by the San Diego County Assessor. Taxes are due in two equal installments on December
10 and April 10 following the levy date.
Pursuant to the 1992 Budget Act and related legislation, the Agency was required to share in state
funding reductions due to budget constraints. In accordance with this requirement, the Agency is
required to make special payments through the 1994-1995 fiscal year to the Educational Revenue
Augmentation Fund (the "ERAF"). Based on the legislation, the Agency deposited $232,815 into the
ERAF in the current fiscal year. This payment has been classified as an other financing use in the
City's financial statements.
Deficit Fund Balances and Retained Deficits - Generally accepted accounting principles require
disclosure of certain information concerning individual funds including deficit fund balances or retained
deficits. As of June 30, 1994 the following funds have deficit balances:
Pension Obligation Bonds (Debt Service) Fund $ 71,361
Park Acquisition Development (Capital
Projects) Fund 323,298
Residential Construction Tax (Capital Projects)
Fund 225,791
Library Construction (Capital Projects) Fund 82,338
Central Garage (Internal Service) Fund 343,739
Measures to reduce these deficits are in the process of implementation.
Interjûnd Transactions - Interfund transactions consisting of identified services performed for other
funds or éosts billed to other funds are treated as expenditures in the fund receiving the services and
revenue in the Internal Service Funds performing the services.
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Operating transfers are made in certain funds to shift resources ITom a fund legally authorized to receive
revenue to a fund authorized to expend the revenue. These transfers are shown as other financing
sources and uses.
InterJùnd Advances - Funds have been "loaned" on a frequent basis from the City's General Fund to the
various Funds of the Redevelopment Agency. Although interest accrues on these advances, repayment
dates are unfixed and uncertain. In the General Fund, such loans, including accrued interest, are
reflected under Due From Other Funds and are fully offset by the Reserve for Amounts Due From
Other Funds, Although the Funds of the Redevelopment Agency are included under the category or
Special Revenue Funds, the amount of any long term advances, including accrued interest is reflected in
the General Long Term Debt Account Group under Advances From City due to the unfixed and
uncertain repayment tenos. Accordingly, interest expense/revenue on interfund advances
payable/receivable is recognized when paid/received.
Reserve far Amounts Due from Other Funds - As the amounts due from other funds are not expected to
be fully repaid in time to be used as a financing source in the 1994-95 fiscal year, the related fund
balances have been fully reserved.
Prior Period Adjustment - Subsequent to the issuance of the City's 1993 general purpose financial
statements, management of the City determined that such financial statements incorrectly recorded
interest of$4,080,440 on advanceslpayables between the various Agency Project Areas, and
advances/payables between the Special Revenue Fund and the General Revenue Fund. The Agency
Project Areas are accounted for in the Special Revenue Fund. As a result, prior year's Special Revenue
Fund Ending Balance was understated as the City only recorded interest expense on such
advanceslpayables. In addition, the City restated to reclassifY a $1,127,685 long-term liability ITom the
Special Revenue Fund into the General Long-term Debt Account Group in order to properly reflect the
intent of the Fund, Accordingly, the Special Revenue BegÌIU1ing Fund Balance as of July 1, 1993 has
been restated to increase such Fund Balance by $5,208,125 in order to properly reflect the effects of
these adjustments.
Reclassifications - Certain 1993 balances have been reclassified to conform to 1994 presentation.
B. ACCOUNTING CHANGE
Beginning fund balances of the General Fund and the Special Revenue Fund Type have been restated to
reflect an adjustment for the adoption of Governmental Accounting Standards Board Statement No. 22,
Accountinl! for Taxoaver-Assessed Tax Revenues in Governmental Funds. Statement No. 22
eliminates an inconsistency in the promulgated standards for the recognition of taxpayer-assessed
revenues by requiring that taxpayer-assessed revenue be recognized when measurable and available. In
those instances where another entity collects the taxes for the reporting entity, available is further
defined to be when the collecting agency holds the taxes for the reporting entity as of the end of the
reporting period. The taxes falling into this category for the City are Sales & Use Tax, Motor Vehicle
License Fees, and Highway Users Tax, all of which are collected by the State of California. Prior to
this change, the City accrued only those revenues received shortly after the end of the fiscal year. The
effect of this restatement increases fund balances at July 1, 1993 by $2,527,162 in the General Fund
and by $825,633 in the Special Revenue Fund Type. The increases are the result of adding back to
beginning fund balances those revenues recorded in the current fiscal year, which under the new criteria,
should be accrued to the prior fiscal year.
The City adopted Governmental Accounting Standards Board Statement No. 16 ("GASB No. 16"),
Accountinl! for ComDensated Absences, for the year ended June 30, 1994. GASB No. 16 provides
guidance for the measurement of accrued compensated absences, such as vacation and sick leave. The
adoption of GASB 16 did not have a material effect on the City's financial statements.
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C. CASH AND INVESTMENTS
Cash and investments at June 30, 1994 include the following:
Pooled deposits and investments $89,227,461
Cash and investments with fiscal agents 6,721,662
$95,949,123
Deposits and Investments - The City maintains a general bank account where cash from all funds is
deposited. Investments are bought using this account. For report purposes, the City's General Fund
cash includes all funds' idle cash which is recorded in other funds as cash advances receivable or
payable for their portion of the cash. Investments are recorded in each fund separately. Cash and
investments are stated at cost with accrued interest shown under a separate caption of the balance sheet.
Cash and investments, excluding amounts held by fiscal agents, at June 30, 1994, consist of the
following:
Bank Carrying Market
Balance Amount Value
Petty cash $ 11,275 $ 11,275
Checking and savings accounts $ 2,737,438 \,193,248 \,193,248
Local Agency Investment Fund 37,217,73\ 37,2\7,73\
Federal agencies 48,81\,457 47,386,929
V.S, Treasury DOleS - \,993,750 2,038,760
$ 2,737,438 $ 89,227,46\ $ 87,847,943
City Council resolution authorizes the City, including the Agency, to invest in certificates of deposit
insured or collateralized in accordance with the California Government Code; securities of the U.S.
Government or its Agencies; U.S. Treasury Bills, Notes, Bonds or Certificates of Indebtedness; Local
Agency Investment Fund; Bankers' Acceptances; Commercial Paper; Negotiable Certificates of Deposit;
and Repurchase Agreements as specified in the City's Investment Policy and Guidelines.
Cash and Investments with Fiscal Agents - Cash and investments with fiscal agents includes cash and
investments held by trustees under debt agreements which are subject to authorized investments as
specified in the agreements. Pennissible investments in the various agreements include: I) Federal
Securities; 2) Interest bearing demand or time deposits (including certificates of deposit) which are
insured by the FDIC or are rated "A" or better by S&P; 3) Commercial paper rated "A-I" or better by
S&P and "P-I" or better by Moody's; 4) Obligations issued by any corporation organized and operating
in the U.S. having assets in excess of$500 million whose obligations are rated "A" or better by S&P or
are unconditionally guaranteed by the U.S.A.; 5) Money market funds which invest solely in Federal
Securities or rated "A" by S&P; 6) Bankers' acceptances of commercial banks (which banks must be
rated for unsecured debt in one of two highest S&P classifications); 7) Obligations the interest on which
is exempt from federal income tax; 8) Federal Home Loan Mortgage Corporation or Farm Credit Bank
participation certificates or senior debt obligations; 9) Federal National Mortgage Association
mortgage-backed securities or senior debt obligations; 10) Investment agreements approved by the
Trustee representing the general obligations of a financial institution whose unsecured general
obligations are rated "A" or better by S&P; and II) Student Loan Marketing Association letter of
credit-backed issues or senior debt obligations.
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Cash and investments with fiscal agents as ofJune 30, 1994 consists of the following:
Approximate
Bank Carrying Market
Balance Amount Value
Money market accounts $ 243,313 $ 243,313 $ 243,313
Investment agreements 1,902,495 1,902,495
U.S. Treasury notes 4,575,854 4,575,854
$ 243,313 $6,721,662 $6,721,662
Deposits - At June 30, 1994, the carrying amount of the City's deposits (checking and savings accounts,
money market accounts and non-negotiable certificates of deposit) was $1,193,248 and the balance per
various financial institutions was $2,737,438. Of the balance in financial institutions,
$201,667 was covered by federal depository insurance and $2,531,771 was uninsured, The uninsured
deposits are with financial institutions which are individually legally required to have government
dep9sits collateralized, based upon the market value of the collateral, at a rate of 110% of the deposits.
Such collateral is considered to be held in the City's name.
Investments - The City's investments are categorized below to give an indication of risk assumed by the
City at the end of the fiscal year. Category 1 includes investments that are insured or registered or for
which the securities are held by the City or its Agent in the City's name. Category 2 includes uninsured
and unregistered investments for which the securities are held by the pledging financial institution's trust
department or agent in the City's name. Category 3 includes uninsured and unregistered investments for
which the securities are held by the pledging financial institution, or by its trust department or agent, but
not in the City's name.
At June 30, 1994, investments to be categorized from the City's pooled investments and investments
with fiscal agents include the following:
Category
1 2 3 Total
U.S. Treasury notes $ 1,993,750 $4,575,854 $ 6,569,604
Federal agencies 48,811,457 48,811,457
Investment agreements 1,902,495 1,902,495
$ - $50,805,207 $6,478,349 $57,283,556
Local Agency Investment Fund deposits of$37,217,73 I are fully collateralized through the State of
California collateral pool and are therefore not required to be categorized.
D. DEFERRED COMPENSATION
The City has made available to its employees a deferred compensation plan in accordance with Internal
Revenue Code section 457, whereby employees authorize the City to withhold funds from salary to be
invested in individual savings accounts. The funds are held by a local bank and the ICMA Retirement
Corporation. Funds may be withdrawn by participants upon tennination of employment or retirement.
Since the City has a fiduciary responsibility to handle the plan, assets of the plan are included in an
agency fund in the City's financial statements. At June 30, 1994, the market value of deferred
compensation under this plan totaled $11,162,994.
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E. DUE FROMffO OlliER FUNDS
Due From Due To Amount
RDA: Towne Centre II Fund (1) General Fund $ 4,284,387
RDA: Otay Valley Fund (1) General Fund 1,589,777
Telephone System Upgrade Sewer Service Revenue Fund (1)
Development Impact Fund (2) 42,493
Residential Construction Conversion
Fund (2) Sewer Service Revenue Fund (I) 18,873
Transportation Development Impact
Fund (2) Trunk Sewer Capital Reserve Fund (1) 495,600
Park Acquisition Development (2) General Fund 493,923
Residential Construction Tax(2) General Fund 206918
Total $ 7.131 971
Fuñd types are indicated as follows:
(1) Special Revenue
(2) Capital Project
The advances payable of$4,284,387 and $1,589,777 ITom the RDA to the City General Fund are
considered long-term in nature. Such long-term advances are accounted for in the General Long-term
Debt Account Group.
F. LOANS RECEIVABLE
As of June 30, 1994 the Agency had made the following loans receivable:
Community Housing Improvement Program - loans
for the purpose of offering deferred and low
interest rate home improvement loans to
qualified borrowers residing witlùn a target
area (included in the Housing Programs special
revenue fund) $3,937,500
Shinohara Loan -loan to fund clean up of hazardous waste 1,500,000
One Park, Ltd. - deferred loan for financial assistance
for construction of low and moderate income housing 850,000
Chula Vista Bayfront Conservancy Trust - loan for financial
assistance in general operations and capital improvements
of the Trust 1,446,778
Civic Center Barrio Housing Corporation - loan for
COnstruction of a 28 unit low income housing project 350,000
Scripps Memorial Hospital - loan for relocation assistance 300,000
Acquisition Association of Orange Tree Mobilehome Owners,
Inc. -loan for the purchase of the Orange Tree Mobilehome
park which is primarily used for low and moderate
income housing 143,845
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The community development block grant housing program had the following loan
receivable included in the Housing Programs Special Revenue Fund at June 30, 1994:
Community Housing Improvement Program - loans to offer
deferred and low interest rate home improvement loans to
qualified borrowers residing within a target area 785,559
The Special Revenue Funds of the City had the following
loans receivable at June 30, 1994:
Chula Vista Bayftont Conservancy Trust -loan for financial
assistance related to capital improvements of the Trust 43,852
South Bay Community Services - loan for housing programs 610,146
The General Fund of the City had the following loans
receivable at June 30, 1994:
Chula Vista Bayftont Conservancy Trust - loan for financial
. assistance in general operations and capital improvements
of the Trust 1,480,380
Girls and Boys Club -loan for construction of new facility 250,000
Total loans receivable $11,698,060
As the loans above are not expected to be repaid in time to be used as a financing source in the
1994-95 fiscal year, certain related fund balances have been fully reserved.
Chula Vista Rehabilitation Community Housing Improvement Program - The Chula Vista
Rehabilitation Community Housing Improvement Program ("Cmp") is under the direct control of the
Agency. cmp offers deferred and low interest rate home improvement loans to qualified borrowers
residing within a target area. Loan repayments are redeposited into the program cash accounts and are
redistributed as future loans. The program was originally funded entirely with Community
Development Block Grant ("CDBG") Federal funds. In recent years, the Agency began supplementing
the program due to decreased availability of Federal grants. In the current year, new contributions to
the program were made entirely with Agency funds. The outstanding principal balances of the CIDP
loans to the City's Housing Programs Fund and Redevelopment Agency Fund are $785,559 and
$3,937,500, respectively, at June 30, 1994.
Shinohara Loan - The Agency entered into a loan agreement with Judi and Jimmie Shinohara, the
previous owners of property purchased by the Agency. The loan was made to fund the clean up of
hazardous materials discovered during pre-dosing grading work agreed to be performed by the seller.
The loan is secured by a deed of trust. Interest accrues quarterly at 7%. The principal, along with
accrued interest, is payable in full on August 18, 1997. The outstanding principal balance of the loan
receivable was $1,500,000 at June 30, 1994.
Deftrred Loan - The Agency entered into a cooperative agreement with One Park, Ltd. ("OPL")
whereby the Agency's Low and Moderate Income Housing Fund provided a construction loan of
$850,000 to OPL on a deferred basis with a ten year term. The project is a rental apartment project and
under the agreement, 75% of the project units are reserved for low and moderate income occupancy at
affordable rent levels. The Agency participates in the equity gain on the project, receiving at sale or
term a percentage of the gross sales price of the project. The percentage increases incrementally over
the term of the loan and peaks at 4.5%. Interest accrues, but is not paid periodically nor is principal.
The outstanding principal balance of the OPL loan at June 30, 1994 is
$850,000.
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The deeds of trust to be provided by OPL to the Agency have been subordinated to concurrently
recorded deeds of trust held by the construction and permanent financing lenders.
Chula Vista Bayfront Conservancy Trust - As of June 30, 1994 the City and Agency had made loans of
$1,199,137 and $1,105,807, respectively, to the Chula Vista Bayfront Conservancy Trust, a nonprofit,
public benefit corporation established to ensure the protection of the envirOinnentally sensitive areas of
the Chula Vista Bayfront. Included in the loan balances at June 30, 1994 is $325,095 and $340,971 in
accrued interest relating to the City and Agency, respectively.
The Trust entered into a Lease, Loan and Operating Agreement (the "Agreement") with the City and the
Redevelopment Agency of the City ofChula Vista for the use ora building and other facilities. The
lease portion of the agreement requires payments of$1 per year through April 1995. The Agreement
states that the intention of the parties is to negotiate a longer lease term before the end of the current
term and indicates that the rental payment may be increased to fair market value at that time. In
addition, the Agreement sets forth certain operating provisions to be followed by the Trust.
Fu'!hermore, the Agreement calls for the Trust to develop a repayment schedule of advances ITom other
entities by April 1995, Should the parties fail to reach agreement by then, the outstanding advances and
interest shall be due and payable in April 1995. As of June 30, 1994 the Trust had an accumulated
deficit of $2, 786,860.
Construction Loan - The Agency has entered into a loan agreement with the Civic Center Barrio
Housing Corporation, a California non-profit public benefit corporation, The loan was made for the
purchase ofland and the development of a 28 unit low income housing project. During 1992, the loan
was assigned to Park Village Ltd., a California limited partnership in which Civic Center Barrio
Housing Corporation is the managing general partner. The loan is secured by a deed of trust on the
property and assignment of rents. Principal and interest are payable monthly, commencing February
1997. Interest accrues at 5% of the unpaid principal balance of the note, The outstanding principal
balance of the loan receivable was $350,000 at June 30, 1994.
Scripps Memorial Hospital Loan - The Agency has entered into a loan agreement with Scripps
Memorial Hospital, a California non-profit benefit corporation. The loan was made so Scripps could
provide relocation assistance to relocate Rollerskateland as part of Scripps' expansion in the City. The
loan is an unsecured promissory note. Interest accrues annually at 4.5% through December, 1997 and
8% for the remaining period; interest is payable monthly. All principal and any accrued but unpaid
interest is due and payable December 20, 2004. The loan may be required to be paid earlier in the event
of default. The outstanding principal balance of the loan receivable was $300,000 at June 30, 1994.
Mobilehome Assistance Programs - The Agency entered into an agreement with eligible residents of the
Orange Tree Mobilehome Park, whereby the Agency loaned $250,030 as permanent financing
assistance to residents for the purpose of purchasing certain mobilehome property. Loans are secured
by deeds of trust on the property and mature in 2017 or when the property is sold. The principal
balance of the loans is $143,845 at June 30, 1994. Contingent interest will be charged based on
calculations specified in the agreement (Note I).
South Bay Community Services - The City entered into a loan agreement with South Bay Community
Services, a California non-profit public benefit corporation. The loan was made so South Bay
Community Services could purchase a 14-unit apartment building to provide housing and related
services to homeless and/or very low income families. The funds were made available to the City
through a drawdown ITom the U.S. Department of Housing and Urban Development. The note is
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secured by a deed of trust on certain property and assignment of rents, Interest accrues annually at 6%
of the unpaid principal balance of the Note. Principal and interest payable annually out of any and all
residual receipts derived from the property and/or operation of the property. The outstanding principal
balance of the loan receivable was $610,146 at June 30, 1994.
Girls and Boys Club Construction Loan - The City has made a loan of $250,000 for construction of a
new facility for the Boys and Girls Club, The loan is interest free and will be repaid with equal annual
payments over 20 years, starting in February 1999.
G. GENERAL FIXED ASSETS
Fixed assets owned by the City are recorded in the General Fixed Assets Account Group, Activity in
fixed assets during the year is as follows:
Balance Balance
July 1,1993 Additions Retirements June 30, 1994
Land $29,831,054 $ 647,869 $ 134,343 $30,344,580
Building 27,211,858 4,290,378 764,765 30,737,471
Equipment 11,426,956 1,110,703 662,542 11,875,117
Improvements 6,380,994 785,472 33,583 7,132,883
$74,850,862 $6,834,422 $1,595,233 $80,090,051
H. LOANS PAYABLE
The Agency entered into loan agreements with a bank in order to purchase certain Orange Tree
Mobilehome Park lots, These lots will be held by the Agency and rented to park residents until the
residents or other qualified buyers can purchase these lots from the Agency. Loans carry interest at
11.5% annually and mature in the year 2008. The Agency intends to sell the land and pay off the loans
in the subsequent fiscal year and therefore the City has recorded the outstanding $359,469 loans as a
current debt of the Redevelopment Agency Special Revenue Fund at June 30, 1994. The land has been
recorded in the General Fixed Assets Account Group (Notes G and H).
I. SELF-INSURANCE - JOINT POWERS AUTI-IORITY
The City self-insures claims and judgments for public liability, workers' compensation, and
unemployment insurance and has excess insurance coverage as follows:
Self-Insured Excess coverage per occurrence
per occurrence over self-insurance retention
Public liability $250,000 $15,000,000
Workers' compensation $250,000 Excess to the statutory lùnit
Unemployment claim Full amount of benefits None
The City has entered into contracts with servicing agents who administer the public liability and
workers' compensation claims program.
The City is a member of the San Diego County Cities Risk Management Authority, a California Joint
Exercise of Powers Authority. Begun in 1982, the Risk Management Authority was formed for the
purpose of assisting members in insuring against various liabilities. The Agreement creating the
Authority was amended in early 1986 to provide for risk pooling of general liability insurance coverage
by participating cities in San Diego County. As a member, the City has agreed to pay annual
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premiums and to assume the initial $250,000 per OCcurrence of liability ("self-insured retention"), For a
liability above such amount, the City may draw against the funds orthe Risk Management Authority up
to the amount of $5,000,000.
At June 30, 1994 the following amounts have been accumulated related to the self-insurance program
initiated by the City:
Workers' Public Unemployment
Compensation Liability Insurance Total
Cash and investments $ 360,827 $593,596 $273,708 $1,228,131
Accrued interest
and other receivables 1,076 2,709 1,130 4,915
Accounts payable (256,436) - - (256,436)
Fund balance $ 105,467 $596,305 $274,838 $ 976,610
J. GENERAL LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS
Changes in long-term debt during the year were as follows:
Balance Balance
July 1, 1993 Additions Retirements June 30,1994
General obligation bonds $ 150,000 $ 50,000 $ 100,000
Assessment District 85-2 5,140,000 175,000 4,965,000
Assessment District 86-1 4,370,000 185,000 4,185,000
1986 tax allocation bonds 28,045,000 950,000 27,095,000
1987 Series B certifi-
cates of participation 5,315,000 375,000 4,940,000
1993 refunding certificates
of participation 11,285,000 155,000 11,130,000
1990 certificates of
participation 780,000 245,000 535,000
1993 certificates of
participation 3,115,000 3,115,000
Bonds payable - pension
obligation 16,786,532 16,786,532
Notes payable - The Price
Company 1,892,000 189,200 1,702,800
Notes payable - Adamo 370,000 370,000
HUD Section 108 loan 500,000 250,000 250,000
55,585,000 22,163,532 2,574,200 75,174,332
Capital lease obligations 49,542 17,662 31,880
Compensated absences 2,163,908 197,048 2,360,956
Self insurance -
claims payable 1,565,185 1,565,185
Advances payable 920,067 4,954,096 5,874,163
$58,718,517 $28,879,861 $2,591,862 $85,006,516
There are no specified maturity dates on the advances; interest rates range from 8.2% to 12% annually.
During the year, the City used proceeds from the issuance of pension obligation bonds to pay the City's
unfunded pension obligation. Both the proceeds from the bond issue ($16,786,532) and the payment of
the pension obligation ($16,049,201) are reflected in the debt service funds in the accompanying
financial statements.
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Detail of the June 30, 1994 balances are as follows:
General Obligation Bonds
1965 Golf Course bonds due in annual installments of $50,000
through 1996; interest ranges from 3,75% to 3,9% annually, payable
semi-annually. $ 100 000
Assessment District Bonds
District No. 85-2, (Eastlake), dated June 17, 1986, funded the acquisition
and construction of public works in the assessment area. The original
amount due was $7,680,624 and matures in amounts payable in
September, ranging from $200,000 in 1995 to $625,000 in 2007.
Interest is payable semi-annually on March 2 and September 2
at interest rates ranging from 7.3% to 7.6% annually. The bonds
are redeemable on any March 2 or September 2. $ 4,965,000
District No. 86-1, (Eastlake), dated July 22, 1986, funded the acquisition
of public works in the assessment area. The original amount due was
$5,279,986 and matures in amounts payable in September, ranging
from $200,000 in 1995 to $490,000 in 2007. Interest is payable semi-
annually on March 2 and September 2 at interest rates ranging from
7.35% to 7.6% annually. The bonds are redeemable on any March 2
or September 2. 4 185000
$ 9 150000
Revenue Bonds and Certificates ofParticioation
Revenue Bonds -
The Bayfrontffown Centre Redevelopment Project 1986 Tax Allocation
Bonds, dated May I, 1986, were issued to provide financing for
redevelopment projects in certain target areas. The original amount due
was $38,655,000 and matures in amounts ranging from $1,015,000 in 1995
to $18,275,000 in 2011. Interest is payable semi-annually on November I
and May I, at interest rates ranging from 7.5% to 8% annually. Bonds
maturing after May I, 1996 are subject to redemption at premiums from
1/2% to 2%. The bonds are secured by a first pledge of tax revenues
in the Bayfrontffown Centre project area. $ 27,095,000
Certificates of Participation -
The 1987 Series B certificates of participation (the "1987 Series B
Certificates"), dated September I, 1987, evidencing proportionate
interests in lease payments of the City, were issued to provide
capital improvements and to advance refund the 1982 Parking Facility
Certificates of Participation. The original amount due was $6,600,000
and matures in amounts ranging from $400,000 in 1995 to $735,000
in 2003. Interest is payable semi-annually on March I and September 1,
at interest rates ranging from 7.2% to 8.5% annually. The 1987
Series B Certificates maturing after September 1, 1997 are subject to
redemption at premiums ranging from zero to 2%. 4,940,000
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The 1993 refunding certificates of participation (the "1993 Refunding Certificates")
dated March 1, 1993, evidencing proportionate interests in lease payments or
the City, were issued to advance refund the 1987 Series A Certificates
of Participation (the "1987 Series A Certificates"). The original amount
due was $11,285,000 and matures in amounts ranging £Tom $365,000 in
1995 to $925,000 in 2013. Interest is payable semi-annually on March 1
and September I, at interest rates ranging ITom 3.50% to 6% annually.
The 1993 Series Certificates maturing after September I, 2003 are
subject to redemption at premiums ranging ITom zero to 2%. 11,130,000
The 1990 certificates of participation, dated October I, 1990 funded the
acquisition of certain equipment being leased to the City under an
agreement with the California Cities Financing Corporation. The
certificates evidence ftactional interests of the owners in the lease
payments to be made by the City. The original amount due was
$1,220,000 and matures as follows: $260,000 in 1995 and $275,000 in
1996. Interest is payable semi-annually on October I and April I,
at interest rates ranging ITom 6.9% to 7% annually. 535,000
The 1993 certificates of participation (the "1993 Certificates") dated
December 1, 1993, evidencing proportionate interests in lease
payments of the City, were issued to provide capital improvements
in the Town Centre II Redevelopment Project of the Agency. Net
proceeds of $2,600,000 were paid to Homart Development Co. for
construction of a public parking facility. The original amount of
the issue is $3,115,000 and matures in amounts ranging ITOm $105,000
in 1996 to $250,000 in 2014, Interest is payable semi-annually on
March 1 and September 1, at interest rates ranging £Tom 3.6% to
5.8% annually. 3 115 000
$ 46.815 000
On September 1, 1987 the Agency entered into an agreement with the
City to repay the City for certain payments made by the City. The
Agency's payments to the City shall be made within thirty days of
Agency's receipt of tax increments and shall be in the full amount of '
all tax increments attributable to the Town Centre II Redevelopment
Project, less any amounts withheld in conformance with legal requirements,
preexisting passthrough agreements with other taxing entities or funds
pledged. Reimbursement may be made on an irregular basis over a
period of time due to the necessity to use tax increment funds to complete
other projects within the project area consistent with the Agency's financial
ability to make the City whole as soon as practically possible. Interest is
payable on the advance at a rate equal to the City Treasurer's average
portfolio yield, calculated annually.
- 23-
Bonds Pavable - Pension Obli!!ation
The Pension Obligation Bonds, Series 1994 (the P.O,B.'s) were issued
by the City to pay the obligations from the City to the California
Public Employees Retirement System for the City's unfunded pension
liability. The total issue is comprised of the following:
(I) Current Interest Bonds, with original amount due of
$7,415,000. These bonds mature in amounts ranging from $310,000 in
1997 to $1,820,000 in 2009. Interest is payable semi-annually on
February 1 and August I, beginning February I, 1995, at interest rates
ranging from 6.05% to 7.875% annually; (2) $7,000,000 Term Bond due
August I, 201 I, with a stated annual interest rate of 8. 125%; (3) Capital
Appreciation Bonds, with original amount due of$2,371,532. These bonds
mature in amounts ranging from $462,424 in 2002 to $480,409 in 2005 and
$480,036 in 2006. The effective annual yield on these bonds ranges
from 7.69% to 8.34% $ 16786.532
Notes Pavable
A promissory note between the City and The Price Company resulted from
a financing agreement whereby monies were advanced from The Price
Company to fund certain construction projects. Monies were deposited in
escrow in fiscal year 1993, and drawn from the account by the contractor
subsequent to June 4, 1993, the date of the note, The original amount of
the note is $1,892,000. The note calls for annual payments of$ 1 89,200
plus interest for ten years. The annual interest rate is 8%. $ 1,702,800
As part of the purchase ofland and improvements, the City entered into a
purchase money promissory note. The original amount of the note is
$370,000. The note calls for 240 monthly payments, commencing
in 1994 in the initial amount of $2,548 and increasing three percent
annually. The annual interest rate is 8.294%. 370 000
$ 2.072 800
HUD Section 108 Loan
The City entered into a contract for Loan Guarantee Assistance with the
U.S. Department of Housing and Urban Development (HUD) in 1991.
The City signed three promissory notes for $250,000 each. The final
principal payment of$250,OOO is due on August I, 1994. The
interest is due semi-annually and the rate varies between 7.13% and
7.6%. The loan is payable to Chemical Bank and has been guaranteed
by HUD. The loan is secured by a pledge of future Community
Development Block Grant entitlements. The proceeds of the loan
were used for the Norman Park Senior Center renovation project. $ 250000
CaDitalized Lease Obli!!ation
The City entered into an agreement in 1991 for the lease of 2 copiers.
The City has options to purchase the equipment during the terms of the
leases for specified amounts; depending on when the option is exercised. $ 31.880
-24 -
At June 30, 1994, aggregate maturities of general long-term debt were as follows:
General Assessment Revenue Bonds Pension Section 108 Capital
Year ending Obligation Distñct and Certificates Obligation Notes HUD Lease
June 30, Bonds Bonds of Participation Bonds Payable Loan Agreement
1995 $ 52,925 $1,078,755 $ 5,338,612 $ 936,581 $ 356,229 $259,500 $21,878
1996 50,975 1,078,090 5,432,489 1,123,898 342,018 12,762
1997 1,084,338 5,142,509 1,424,520 327,833
1998 1,092,030 5,129,166 1,496,980 313,678
1999 1,100,990 5,112,407 1,571,222 299,552
2000 through 2013 9,052,660 59,326,941 28,093,975 1,558,555
Less amount
representing
interest (3,9OO)~) (38,667,124) (17,860,644)~) (9,500) (2,760)
Total $100,000 $9,150,000 $46,815,000 $16,786,532 $2,072,800 $250,000 $31,880
Assessment District Bonds - Special assessments bonded debt, reported in the General Long-term Debt
Account Group are not an obligation of the City and are entirely supported by the assessments made against
property owners. The City has a contingent liability against its full faith and credit on the District No. 85-2
and District No. 86-1 assessment bonds to the extent that liens foreclosed against properties involved in the
assessment district are insufficient to retire outstanding bonds.
Non-obligated Assessment District Bonds - The City has seven additional Assessment Districts for which
bonds have been issued. The City is in no manner obligated to repay these special assessment bonds. The
City functions only as an agent for the property owners by collecting assessments, forwarding collections to
special assessment debt-holders and beginning foreclosure procedures when and if necessary. As such, these
amounts are not included in the City's General Long-Term Debt Account Group. Proceeds £Tom the bonds
were used to make capital improvements in the related Assessment Districts and are recorded in the
Assessment District Improvement Fund,
The following summarizes the Non-obligated Assessment District Bonds at June 30, 1994:
Original
Assessment District Date Issued Amount Amount
85-1 Las Flores Drive June 15, 1987 $ 1,621,568 $ 467,859
87-1 East "H" Street May 2, 1989 7,752,141 6,770,000
88-2 Otay Lakes Road March 6, 1990 7,976,331 6,950,000
88-1 Otay lakes Road (EL) June 11, 1991 7,349,608 6,990,000
90-3 EastIake Greens August 6, 1991 22,352,427 21,730,000
91-1 Telegraph Canyon Road June 23, 1992 6,839,455 6,720,000
90-1 Salt Creek I August 11,1992 4,747,262 4,680,000
90-2 Otay Valley Road September 2, 1993 3,607,498 3,607,498
-25 -
K. DEFEASED DEBT
On March 1, 1993, the $9,640,000 1987 Series A Certificates of Participation were defeased. At June
30, 1994, a principal balance of$9,430,000 remained outstanding.
On March 9, 1979, the $3,400,000 1975 Tax Allocation Bond issue was defeased. At June 30, 1994, a
principal balance of$2,000,OOO remained outstanding.
On May 29,1986, the $7,150,0001979 Tax Allocation Bond issue was defeased. At June 30,1994, a
principal balance of$5,080,OOO remained outstanding.
On September 1, 1987, the $4,055,000 Parking Facility Certificates of Participation were defeased. At
June 30, 1994, a principal balance of$2,870,OOO remained outstanding.
Dereased debt and the related cash are appropriately not included in the financial statements,
L. REVENUE BONDS
The City has issued revenue bonds which do not constitute an indebtedness of the City, Neitherthe
faith bor credit of the City is pledged for payment of the bonds. The bonds, together with interest
thereon, are payable solely £Tom and secured solely by the revenues to be derived pursuant to a Loan
Agreement between the City and San Diego Gas & Electric Company. Accordingly, these bond funds
are not included in the financial statements.
The following details such revenue bonds issued:
Year Original Balance
Description Issued Amount June 30,1994
Industrial Development Revenue
Bonds (San Diego Gas &
Electric Company) 1992 $250,000,000 $250,000,000
M. COMMITMENTS AND CONTINGENCIES
Legal Claims Asserted - At June 30, 1994, the City has been named as a defendant in various legal
complaints. The City intends to contest the allegations made, but the results of the litigation are not
presently determinable. However, in the opinion of management, the amount of losses that might be
sustained would not materially affect the City's financial position.
Gann Spending Limitation Initiative - Under Article xum of the California Constitution (the Gann
Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations and, if
certain proceeds of taxes exceed allowed appropriations, the excess must be refunded to the taxpayers
through revised tax rates or revised fee schedules. However, nothing has come to the attention of City
management to indicate it is not in compliance with this law.
N. PUBLIC EMPLOYEES RETIREMENT SYSTEM
The City éOntributes to the California Public Employees Retirement System ("PERS"), an agent
multiple-employer public employee retirement system that acts as a conunon investment and
administrative agent for participating public entities within the state of California. All salaried full-time
-26 -
,
and part-time City employees are eligible to participate in PERS. Participants in the plan vest after 5
years of employment. Employees in the plan who retire at or after age 50 receive annual retirement
benefits calculated based on age, years of service and compensation during the last 12 consecutive
months of employment or another period of 12 consecutive months selected by the member if the
average payrate was higher. The City's payroll for employees covered by PERS for the year ended
June 30,1994 was $32,315,779 out of a total payroll of$35,297,816.
No securities of the City or related parties are included in plan assets.
Funding Status and Progress - The amount shown below as the "pension benefit obligation" is a
standardized disclosure measure of the present value of pension benefits, adjusted for the effects of
projected salary increases and step-rate benefits, estimated to be payable in the future as a result of
employee service to date. The measure is intended to help users assess the funding status of PERS on a
going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due,
and make comparisons among employers. The measure is the actuarial present value of credited
projected benefits and is independent of the funding method used to determine contributions to PERS.
The-pension benefit obligation was computed as part ofan actuarial valuation performed as of June 30,
1993, Significant actuarial assumptions used in the valuation include (a) a rate of return on the
investment of present and future assets of 8.75% a year compounded annually, (b) projected salary
increases of 4.5% a year compounded annually, attributable to inflation, (c) additional projected salary
increases of2.5% to 2.75% a year, attributable to seniority/merit, and (d) no postretirement benefit
lßcreases.
Total overfunded pension benefit obligation applicable to the City's employees was $1.9 million at
June 30, 1994, as follows (in millions);
Pension benefit obligation:
Retirees and beneficiaries currently receiving benefits and
terminated employees not yet receiving benefits $ 46.6
Current employees -
Accumulated employee contributions including allocated investment earnings 26.0
Employer-financed vested 35.8
Employer-financed nonvested ---LQ
Total pension benefit obligation 110.0
Net assets available for benefits, at cost (market value is $133.9) ..l.l.L2
Unfunded (overfunded) pension benefit obligation LM>
Contributions Required and Contributions Made - PERS uses the Entry Age Normal Actuarial Cost
Method which is a projected benefit cost method. That is, it takes into account those benefits that are
expected to be earned in the future as well as those already accrued.
According to this cost method, the normal cost for an employee is the level amount which would fund
the projected benefit if it were paid annually fÌOm date of employment until retirement. PERS uses a
modification of the Entry Age Cost Method in which the employer's totaI normal cost is expressed as a
level percentage of payroll. PERS also uses the level percentage of payroll method to amortize any
unfunded actuarial liabilities. The amortization period of the unfunded actuarial liability ends in the
year 2011. The dates are June 30 of the years specified on the rate sheets of the PERS Actuarial
Valuation Report.
-27-
The significant actuarial assumptions used to compute the actuarially determined contribution
requirement are the same as those used to compute the pension benefit obligation, as previously
described.
The contributions to PERS for 1994 of$6,394,379 were made in accordance with actuarially
determined requirements computed through an actuarial valuation performed as of June 30, 1993. The
contribution consisted of (a) $5,502,481 normal cost (17.03 percent of current covered payroll) and (b)
$818,898 amortization of the unfunded actuarial accrued liability (2,76 percent of current covered
payroll). The City contributed $3,861,988 (11.95 percent of current covered payroll); employees
contributed $2,532,391 (7.84 percent of current covered payroll).
Trend Injôrmation - Trend information gives an indication of the progress made in accumulating
sufficient assets to pay benefits when due. Three-year trend information may be found in the following
table. Systemwide ten-year trend information may be found in the California Public Employees
Retirement System Annual Reports.
PERS
Fiscal Year Ended
1991 1992 1993
(in millions)
Net assets available for benefits $76.2 $84,9 $1J 1.9
Pension benefit obligation 89.7 10l.7 110.0
Net assets available for benefits as a percentage
of the pension benefit obligation 85% 84% 102%
Unfunded (overfunded) pension benefit obligation $13.5 $16,8 $ (1.9)
Annual covered payroll 26.4 29.3 34.2
Unfunded pension benefit obligation as
percentage of annual covered payroll 51% 57% (5.7)%
Employer contributions (made in accordance with
actuarially determined requirements) as a
percentage of annual covered payroll 13.3% 11.9% 12.6%
......
-28 -
...
ADDITIONAL INFORMATION
CITY OF CHULA VISTA
GENERAL FUND
SCHEDULE OF REVENUES - BUDGET AND ACTUAL (NON-GAAP BUDGETARY
BASIS)
YEAR ENDED JUNE 30, 1994
Actual on a Variance
Budgetary Favorable
Budget Basis (Unfavorable)
TAXES:
Sales and use $12,200,000 $12,172,301 $ (27,699)
Property 9,050,000 7,859,456 (1,190,544)
Franchise 2,012,000 2,044,700 32,700
Property transfer 245,000 240,445 (4,555)
Transient lodging 1,200,000 1,041,482 (158,518)
Utility 2,940,000 2,953,216 13,216
Business license tax 868,200 965,297 97,097
28,515,200 27,276,897 (1,238,303)
INTERGOVERNMENTAL:
Motor vehicle license fees 5,008,000 5,312,230 304,230
Cigarette taxes
From other agencies 10,657,500 9,274,900 (1,382,600)
15,665,500 14,587,130 (1,078,370)
LICENSES AND PERMITS:
Building permits 805,475 1,051,255 245,780
Animal license 43,000 72,542 29,542
Other 5II,325 546,172 34,847
1,359,800 1,669,969 310,169
CHARGES FOR SERVICES:
Engineering, supervision and other fees 2,105,858 2,084,394 (21,464)
Pound fees 167,870 128,918 (38,952)
Police services 148,025 221,081 73,056
Parks and recreation programs 193,880 175,258 (18,622)
2,615,633 2,609,651 (5,982)
FINES AND FORFEITURES:
Court fines 215,000 238,764 23,764
INVESTMENT EARNINGS 971,200 764,132 (207,068)
OTHER 396,882 405,470 8,588
TOTAL REVENUES $49,739,215 $47,552,013 $(2,187,202)
,
-29-
CITY OF CHULA VISTA
GENERAL FUND
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (NON-GMP BUDGETARY BASIS)
YEAR ENDED JUNE 30, 1994
Actual on a Variance
Budgetary Favorable
Budget Basis (Unfavorable)
GENERAL GOVERNMENT:
City Council $ 307,772 $ 291,487 $ 16,285
City Clerk and elections 322,618 274,342 48,276
Administration 1,179,269 1,145,473 33,796
Finance 1,084,948 1,053,791 31,157
Attorney 1,321,174 996,881 324,293
Personnel 1,157,708 1,063,887 93,821
Nondepartmental 1,156,560 1,338,029 (181,469)
Insurance 1,209,593 1,244,842 (35,249)
Purchasing 318,584 266,252 52,332
Boards aDd commissions 45,218 36,784 8,434
Community promotions 28,400 25,603 2,797
Community development 1,428,089 1,348,814 79,275
Planning 1,978,635 1,799,214 179,421
Data systems 701,234 672,823 28,4 II
Word processing 94,II8 84,147 9,971
Public information 209,189 193,917 15,272
Total general government 12,543,109 1I,836,286 706,823
PUBLIC SAFETY:
Fire protection 6,930,803 6,840,415 90,388
Police protection 16,276,386 16,872,718 (596,332)
Animal regulation 417,363 390,154 27,209
Disaster preparedness 151,067 122,436 ~
Total public safety 23,775,619 24,225,723 (450,104)
PUBLIC WORKS:
Administration 168,317 164,305 4,012
Engineering 4,734,098 4,655,231 78,867
Streets, culverts, etc. 3,062,937 2,950,410 II2,527
Building inspection 919,665 883,063 36,602
Sewer system 1,542,195 1,394,797 147,398
Building maintenance 845,298 800,392 44,906
Communications 204,344 202,557 1,787
Traffic signal and street light maintenance 1,050,824 1,014,549 36,275
Traffic operations maintenance 561,477 546,126 ~
Total public works 13,089,155 12,6II,430 477,725
PARKS AND RECREATION:
Administration 1,181,972 1,175,299 6,673
Maintenance 2,255,525 2,242,929 12,596
Activities 1,467,532 1,395,463 ~
Total parks and recreation 4,905,029 4,813,691 91,338
LffiRARY:
Administration 280,919 230,924 49,995
Services 2,018,037 1,968,667 49,370
Acquisitions 537,867 518,846 19,021
Circulation 536,065 515,592 20,473
Maintenance 127,416 164,643 (37,227)
Total library 3,500,304 3,398,672 ~
TOTAL EXPENDITURES $57,813,216 $56,885,802 $ 927,414
- 30-
CITY OF CHULA VISTA -
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
JUNE 30, 1994
Elderly & Open Golf
Transportation Parking Traffic Sewer Town Handicapped Space Housing Course
Grants Meter Safety Funds Centre I Transit Districts Programs Revenue
ASSETS:
Cash and investments $2,560,827 $ 233,171 $19,543,436 $ 40,934 $ 99,819 $2,209,684 $1,074,615 $758,468
Accounts alld taxes
receivable 218,945 4,217 $ 4,395 1,324,m 58,681 460 12,965
Accrued interest receivable 12,543 1,092 231 83,354 161 323 9,866 39,545 3,041
Due fiom other funds 556,966
Loans receivable 43,852 4,723,059
Grants receivable - - - - - - - - -
TOTAL $2,792,315 $ 238,480 $ 4,626 $21,552,385 $ 99,776 $100,602 $2,232,515 $5,837,219 $761,509
= =-
LIABILITIES:
Accounts payable
and accrued payroll $ 94 $ 5,501 $ 1,095,928 $100,602 $ 42,466
Cash advances payable
Loans payable
Dd"m,d revenue - - 78,020 --
Tolalliabilities ~ ~ 1,173,948 100,602 ~
FUND BALANCE (DEFICIT):
Reserved:
For encW11brances 6,505 20,940 113,349
For amounts due fiom other
funds 473,461
For low & moderate
income housing
Forconlingencies 31,994 106,029 346,022
For loans receivable 43,852 $4,723,059
For incurred liability
For future projects
Unreserved and
wldesignated ~ 120,445 ~ 19,494,162 ~ - 2,076,700 1,114,160 $761,509
Totalfund balances (deficit) 2,792,221 ~ ~ 20,378,437 99,776 - 2,190,049 '5,837,219 761,509
TOTAL $2,792,315 $ 238,480 $ 4,626 $21,552,385 $ 99,776 $100,602 $2,232,515 $5,837,219 $761,509
=
- 31 -
Special Baldwin Trans- Other
Transit Sundry Traffic Capital Bayfront Redevelopment Project portation Miscellaneous
Service Grants Signal Outlay Trolley Agency Management Sales Tax Funds Total
$440,545 $ 827,150 $634,636 $141,011 $131,794 $ 2,083,939 $ 30,189 $4,988,540 $ 72,603 $35,871,361
78,144 971,338 88,322 12,521 31,367 2,806,132
1,219 35,667 2,178 301 530 207,170 878 16,015 329 414,443
556,%6
610,146 4,590,623 9,967,680
- 986,053 - - - - - - ~ 1,049,267
$441,764 $2,537,160 $636,814 $141,312 $132,324 $ 7,853,070 $119,389 $5,017,076 $167,513 $50,665,849
$ 8,687 $ 840,039 $ 59,222 $ 78,718 $ 1,340 $ 2,232,597
262,889 $ 2,825,858 51,709 3,140,456
359,469 359,469
- 105,309 134,624 - - - 317,953
~ 1,208,237 ~ 59,222 ~ ~ 6,050,475
19,456 $ 975 224,055 11,402 6,339 403,021
473,461
1,704,307 1,704,307
60,621 28,371 13,853 586,890
610,146 4,590,623 9,967,680
372,456 670,950 $636,814 126,484 $132,324 (1,985,866) 48,765 4,938,358 ~ 31,480,015
~ 1,328,923 636,814 141,312 132,324 4,533,119 60,167 4,938,358 114,464 44,615,374
5441,764 '$2,537,160 $636,814 $141,312 $132,324 $ 7,853,070 $119,389 $5,017,076 $167,513 $50,665,849
- 32-
,
CITY OF CHULA VISTA -
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (DEFICIT)
YEAR ENDED JUNE 30, 1994
Elderly & Open Golf
Transportation Parking Traffic Sewer Town Handicapped Space, Housing Course
Grants Meter Safety Funds Centre I Transit Districts Programs Revenue
REVENUES:
Taxes $ 2,543,506 $ 22,367 $1,599,712
111tergovenunental 698,556 131,953
Charges for service $244,879 $11,909,990 76,099
Fines and forfeilures $151,139
Revenne trom use of
money and property 148,069 11,809 1,856 1,046,369 $ 2,200 3,286 97,483 $260,885
Other ~ 127,917 - 186,365 150,500 20 ~ $ 124,945 ~
Total revenues ~ ~ ~ ~ ~ ~ 1,698,442 124,945 261,160
EXPENDITURES:
General govennnelll 260,429 6,229,413 25 233,725
Public works 3,210,723 1,267,073 24,159 530
Debt service:
Principal repayment
hlterest
Library -- ------
Total expenditures 3,210.723 260,429 ~ 25 233,725 ~ ~ ~
Excess of revenues over
(wIder) expenditures 196,101 124,176 152,995 6,913,311 152,675 431,369 100,786 260,630
OTHER FINANCING
SOURCES (USES):
Transfers in 395 1,240,107 344,994 195
Transfers out (50,000) (167,844) (4,821,537) (475,636) (55,680)
Tax increment shift to ERAF
hlcrease in reserves [or
loans receivable
Total other financing - - - - -
sources and (uses) (49,605) (167,844) (3,581,430) ~) (55,485)
Excess o[revenues and
other financing sources
over (under) expenditures
and olher financing uses ~ 74,571 (14,849) 3,331,881 152,675 ~ (29,856) 205,145
FUND BALANCES
(DEFICIT),
JULY I, 1993 2,345,193 158,408 19,475 17,046,556 (52,899) 1,758,680 6,167,075 556,364
Adjusllllents (Note B) 250.927
Adjustmenls (Note A) - - - - - - (300,000)-
As restated 2,596,120 158,408 19,475 17,046,556 (52,899) 1,758,680 5,867,075 556,364
FUND BALANCES - - - - - - - -
(DEFICIT).
JUNE 30, 1994 $ 2,792,221 $232,979 $ 4,626 $20,378,437 $ 99,776 $ 0 $2,190,049 $5,837,219 $761,509
- 33 -
Special Baldwin Trans. 01her
Transit Sundry Traffic Capital Bayfront Redevelopment Project portation Miscellaneous
Service Grants Signal Outlay Trolley Agency Management Sales Tax Funds Total
$ 2,630,060 $4,582,152 $11,377,797
$313,132 $3,171,873 $210,275 4,525,789
$693,308 417,672 13,341,948
151,139
16,161 35,481 111,986 $ 69,521 $ 6,726 213,032 $ 4,625 251,532 5,638 2,286,659
- ~ - - - 136,225 1,300,912 32,460 ~ 2,267,084
~ ~ ~ ~ ~ 3,396,989 1,305,537 ~ ~ 33,950,416
212,478 2,628,273 1,269,634 86,094 10,920,071
2,122,819 3,825,813 10,451,117
35,393 35,393
3,614 140,663 144,277
-~ ~ ----~
~ ~ ~ 2,768,936 1,269,634 ~ ~ 21,732,717
116,815 1,013,016 805,294 67,291 6,726 628.053 35,903 1,040,331 172,227 12,217,699
2,251 406,670 13,500 527,440 2,786 2,538,338
(418,406) (278,000) (13,500) (5,455,846) (170,605) (11,907,054)
(232,815) (232,815)
---- ~ - 340,970
~ ~) (278,000) - (4,820,251) (167,819) (9,260,561)
119,066 1,001,280 527,294 67,291 6,726 (4,192,198) 35,903 1,040,331 ~ 2,957,138
314,011 327,643 109,520 74,021 125,598 2,642,487 24,264 3,898,027 110,055 35,624,478
574,706 825,633
- - - - - 5,508,125 - - - 5,208,125
314,011 327,643 ~ ~ 125,598 8,725,318 24,264 3,898,027 ~ 41,658,236
$433,077 $1,328,923 $636,814 $141,312 $132,324 $ 4,533,120 $ 60,167 $4,938,358 $114,463 $44,615,374
-
- 34-
,
CITY OF CHULA VISTA
SPECIAL REVENUE FUNDS
< " 'SCHEDULE OF REVENUES
BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS)
YEAR ENDED JUNE 30,1994
Actual on a VarIance
Budgetary Favorable
Budget Basis (Unfavorable)
FUND:
Transportation Grants:
Intergovernmental $ 698,506 $ 698,506
Gasoline taxes $ 2,507,000 2,543,556 36,556
Interest 150,000 148,069 (1,931)
Other grants and contributions 17,100 16,693 (407)
2,674,100 3,406,824 732,724
Parking Meter:
Meter collections and space rentals 241,500 244,879 3,379
Interest 20,000 11,809 (8,191)
Other revenue 100,000 127,917 27,917
361,500 384,605 23,105
Traffic Safety:
Justice court fines 200,000 151,139 (48,861)
Interest 3,000 1,856 (1,144)
203,000 152,995 (50,005)
Sewer Funds:
Connection and repayment fees 11,000 10,939 (61)
Charges for current services 8,629,487 7,909,179 (720,308)
Interest 868,000 1,046,369 178,369
Sewer Facility Participation I,OIl,725 2,205,344 1,193,619
Sale of metro capacity rights 1l0,398 IlO,398
Other Non-revenue 6,900 32,ll4 25,214
Collections 2,159,500 1,784,529 (374,971)
Other revenue 43,852 43,852
12,797,010 13,142,724 345,714
Town Centre 1:
Interest 2,200 2,200
In lieu parking fee 152,250 150,500 (1,750)
152,250 152,700 450
Elderly & Handicapped Transit:
Intergovernmental 224,000 131,953 (92,047)
Charges for services 51,000 76,099 25,099
Interest 1,000 3,286 2,286
Sales tax for transportation 20,500 22,367 1,867
Other non-revenue 20 20
296,500 233,725 (62,775)
. Open Space Districts:
Taxes 1,376,318 1,599,712 223,394
Interest 62,000 97,483 35,483
Other 1,247 1,247
1,438,318 1,698,442 260,124
Housing Program:
Other 124,945 124,945
Subtotal 17,922,678 19,296,960 1,374,282
. - 35-
CITY OF CHULA VISTA
SPECIAL REVENUE FUNDS
. SCHEDULE OF REVENUES
BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS)
YEAR ENDED JUNE 30,1994 (CONTINUED)
Actual on a Variance
Budgetary Favorable
Budget Basis (Unfavorable)
Balance brought forward 17,922,678 19,296,960 1,374,282
Golf Course Revenue:
Interest 251,000 260,885 9,885
Rental and leases, land and space 275 275
251,000 261,160 10,160
Transit Service:
Interest II,OOO 16,161 5,161
Other agencies 212,430 313,132 100,702
223,430 329,293 105,863
Grants:
Community Development Block Grant 1,733,980 2,819,608 1,085,628
State Grant 142,100 352,265 210,165
Interest 17,000 35,481 18,481
Other 147,II 7 147,II7
1,893,080 3,354,471 1,461,391
Traffic Signal:
Signal fee 202,700 693,308 490,608
Interest 31,600 II 1,986 80,386
Reimbursement other agencies 1,780 (1,780)
236,080 805,294 569,214
Special Capital Outlay:
Interest 3,700 69,521 65,821
BayfTont Trolley:
Interest 5,000 6,726 1,726
Redevelopment Agency:
Taxes 2,169,700 2,630,060 460,360
Interest 396,000 213,032 (182,968)
Charges for services 2,979,620 417,672 (2,561,948)
Other 40,000 136,225 96,225
5,585,320 3,396,989 (2,188,331)
Baldwin Project Management:
Interest 4,625 4,625
Reimbursement ft-Om developers 1,298,795 1,298,795
Other 2,II7 2,Il7
1,305,537 1,305,537
Transportation Sales Tax:
Interest 255,300 251,532 (3,768)
Taxes 4,092,500 4,582,152 489,652
Other 44,020 32,460 (11,560)
4,391,820 4,866,144 474,324
Subtotal 30,512,108 33,692,095 3,179,987
- 36-
CITY OF CHULA VISTA
. SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES
BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS)
YEAR ENDED JUNE 30, 1994 (CONTINUED)
Actual on a Variance
Budgetary Favorable
Budget Basis (Unfavorable)
Balance brought forward $30,512,108 $33,692,095 $3,179,987
Other Miscellaneous Funds:
Intergovernmental 431,250 210,275 (220,975)
Interest 3,000 5,639 2,639
Other 20,000 42,407 22,407
454,250 258,321 (195,929)
TOTAL $30,966,358 $33,950,416 $2,984,058
- 37-
CITY OF CHULA VISTA
SPECIAL REVENUE FUNDS
SCHEDULE OF EXPENDITURES
BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS)
YEAR ENDED JUNE 30,1994
Actual on a Variance
Budgetary Favorable
Budget Basis (Unfavorable)
FUND:
Transportation Grants:
Select streets $ 2,968,829 $ 1,443,816 $ 1,525,013
Other streets 1,449,071 1,756,907 (307,836)
Engineering 10,000 10,000
4,427,900 3,210,723 1,217,177
Parking Meter:
Salaries 235,370 191,682 43,688
Operating costs 89,708 75,252 14,456
325,078 266,934 58,144
Sewer Funds:
Deposits refunded 2,000 2,000
Refund of fees 254,603 156,961 97,642
Sewer payment 9,089,580 5,655,128 3,434,452
Other costs 962,079 438,264 523,815
10,308,262 6,250,353 4,057,909
Town Centre 1:
Parking facilities 17,797 25 17,772
Elderly & Handicapped
Transit:
General government 330,570 233,725 96,845
Open Space Districts:
Public works 1,949,924 1,380,422 569,502
Housing Programs:
Rehabilitation grants 23,422 (23,422)
Interest 737 (737)
24,159 (24,159)
Golf Course Revenue:
Repairs and maintenance 104,537 530 104,007
,Transit Service:
Salaries 212,830 212,478 352
Subtotal 17,676,898 11,579,349 6,097,549
. - 38-
CITY OF CHULA VISTA
SPECIAL REVENUE FUNDS
SCHEDULE OF EXPENDITURES
BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS)
YEAR ENDED JUNE 30,1994 (CONTINUED)
Actual on a Variance
Budgetary Favorable
Budget Basis (Unfavorable)
Balance brought forward $17,676,898 $ll,579,349 $ 6,097,549
Grants:
Community Development Block Grant 4,797,759 1,932,617 2,865,142
State Library Act 119,898 111,307 8,591
Rental Rehabilitation Grant 120,800 120,800
OCJP State Grant 205,861 192,174 13,687
Federal Library Grants 116,577 85,779 30,798
SBA Grants 74,368 27 74,341
Principal 35,393 35,393
Interest 3,614 3,614
5,474,270 2,360,911 3,113,359
Special Capital Outlay:
Automated Library System 3,237 3,205 32
Redevelopment Agency:
General government 4,190,121 2,852,328 1,337,793
Interest 140,663 (140,663)
4,190,121 2,992,991 1,197,130
Baldwin Project Management:
Operating costs 1,351,942 1,281,036 70,906
Transportation Sales Tax:
Capital projects 9,099,091 3,825,813 5,273,278
Other Miscellaneous Funds:
Asset Seizure 6,150 12,596 (6,446)
Waste Management & Recycling 43,422 24,943 18,479
Energy Conservation Fund 499,750 54,893 444,857
549,322 92,432 456,890
TOTAL $38,344,881 $22,135,737 $16,209,144
- 39-
CITY OF CHULA VISTA
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
JUNE 30,1994
1965 1993
Golf Redevelopment Assessment 1987 1990 Refunding 1993 1994
Course Agency Districts COP COP COP COP POB Total
ASSETS:
Cash and
investments $ 376 $ 3,423,080 $ 3,421,192 $ 1,555,477 $ 121,270 $ 1,483,986 $ 366,822 $ 18,237 $ 10,390,440
AccoW1tsreceivable 60,195 60,195
Accrued interest
receivable - --E ~ ~ - - - - 14,028
TOTAL $ 376 $ 3,423,093 ~ $ 1,555,569 ~ $ 1,483,986 $ 366,822 ~ $ 10,464,663
LIABILITIES:
Accounts payable $ 11,550 $ 11,550
hllerest payable ~ 78,048
Total liabilities ~ 89.598
FUND BALANCES
(DEFICIT):
Unreserved -
Designated for
debt service $ 376 $ 3,423,093 $ 3,495,310 $ 1,555,569 $ 121,270 $ 1,483,986 $ 366,822 (71,361) 10,375.065
Total fund - - - - - - -
balances
(d.oficiI) 376 ~ ~ ~ ~ ~ ~~) 10,375,065
TOTAL ~ $ 3,423,093 $ 3,495,310 $ 1,555,569 ~ $ 1,483,986 $ 366,822 $ 18,237 $ 10,464,663
-40 -
,
CITY OF CHULA VISTA
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30,1994
1965 1993
Golf Redevelopment Assessments 1987 1990 Refunding 1993 1994 Noles
Course Agency Districts COP COP COP COP POB Payable Tolal
REVENUES,
Taxes $ 3,156,287 $ 1.159.415 $ 4,315,702
Rrvenuos from u.. of
money and property ~ ~ $ 73.960 ~ $ 60.629 $ 2,447 ~ ~
Total rrvennos ~ ~ ~ ~ ~ 2.447 73 ~
EXPENDITURES,
Pr'i"oipal r<lir"",enl $50.000 950.000 360.000 375,000 155,000 16.049.201 $ 439,200 18,378.401
In'"""" and ohMg'" 4,875 2.1g7,824 706.321 411,602 3,562 615.369 98.847 524,434 169.766 4,722,600
Tru>1« expe""" 610 31,210 48,831 4,968 322 16,140 52,018 154,099
Premium 0" called
hond, ---.2.!.:E.4 ~
- - - - - - -
Total ",]",ndiluros 55.485 ~ ~ ~ ~ ~ 150,865 ~ ~ ~
Exus, of rrvenues oV'"
over (und",)
ex-pendilur", ~) ~ ~ ~) 12l ~) (148,4l8)~)~)~)
OTHER FINANCING
SOURCES (USES),
Tra"-,,fer> in 55.680 1,745.634 t,230.725 240 608,966 3,641,245
Transfer> out (195) (310,229) (284,331) (594.755)
Procerds from ",I<
ofhonds 3.115,000 16.786.532 19,901,532
Contrihulion Iø
dev<Io¡><r - - - (2,600,000) - - ~)
Totalolherfinanoing
sour"", ~ ~ ~ 515,240 ~ ~ ~
Ex""" of rrvenu",
and oth", financing
sourr",ov",(und.,,-)
rxpenditur'" and
oth.,,- f""",cing uses ~ ~ ~ 121 ~ 366,822 ~)- ~
FUND BALANCES.
JULY I, 1993 376 ~ ~ ~ ~ ~ ~
-
FUND BALANCES
(DEFICIT),
JUNE 30, 1994 $ 376 $ 3,423.093 $ 3,495,310 $ 1,555.569 $ 121.270 $ 1.483.986 $ 366.822 $ (7I.36t) $ 0 $ 10,375,065
- - - - -
- 41 -
...
CITY OF CHULA VISTA
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
JUNE 30, 1994
Parks and Capital Park Residential State Telegraph
Recreation Improvement Acquisition Construction library Bond Act Canyon
Block Grants Program Development Tax Construction 1974 Road
ASSETS:
Cash and investments $52,208 $5,332,597 $894 $668,424
Accounts and taxes
receivable $ 170,625
Accrued interest
receivable 211 24,130 4 2,693
Grants receivable - $ 652,348
- - - -
TOTAL $52,419 $5,356,727 $ 170,625 $ 652,348 $898 $671,117
LIABILITIES:
Accounts payable $ 44,218 $ 19,699 $309,221
Cash advance payable 714,987
Due to other funds $ 493,923 $ 225,791
Deferfed revenue - - - - -
Total liabilities ~ ~ 225,791 734,686 309,221
FUND BALANCE
(DEFICIT):
Reserved:
For encumbrances
For contingencies 69,900 202,555
Designated for capital
projects $52,419 5,312,509 ~) ~) ~) $898 361,896
Total fund balances
(deficit) ~ 5,312,509 (323,298) ~) ~) 898 361,896
TOTAL $52,419 $5,356,727 $ 170,625 $ 0 $ 652,348 $898 $671,117
-42 -
Assessment Transpor-
Industñal District Development Redevelop- Sewer Facility tation
Bicycle Development Improvement Impact ment Replacement Partnership
Facility Authority Funds Funds Agency Fund Fund Total
$4,488,740 $5,525 $4,519,007 $10,503,397 $360,603 $3,300,895 $1,127,463 $30,359,753
765,887 83,492 1,020,004
18,079 18,401 44,268 749 13,323 4,563 126,421
- ~ - - - - 652,348
$4,506,819 $5,525 $4,537,408 $11,313,552 $361,352 $3,397,710 $1,132,026 $32,158,526
$ 150,025 $170,544 $ 40,040 $ 733,747
387,134 1,102,121
538,093 1,257,807
$ 4,900 765,887 - - 770,787
~ 1,841,139 ~ 40,040 3,864,462
348,506 348,506
272,455
4,501,919 $5,525 $4,537,408 9,123,907 190,808 $3,397,710 $1,091,986 27,673,103
4,501,919 ~ 4,537,408 9,472,413 190,808 3,397,710 1,091,986 28,294,064
$4,506,819 $5,525 $4,537,408 $11,313,552 $361,352 $3,397,710 '$1,132,026. $32,158,526
- 43-
.
*"
CITY OF CHULA VISTA
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES (DEFICIT)
YEAR ENDED JUNE 30, 1994
Parks and Capital Park Residential State Telegraph
Recreation Improvement Acquisition Construction Library Bond Act Canyon
Block Grants Program Development Tax Construction 1974 Road
REVENUES:
Taxes $ 251,335
hltergovenunental $202,094 $1,538,249
Revenues fi-om use of money
and property 2,559 $ 630,000 28,955 16,854 $ 46 $ 38,878
Other
Development fees - - - - - -
Total revenues 204,653 630,000 280,290 1,555,103 ~ 38,878
EXPENDITURES:
Capital projects 2,997 $ 3,740.813 2,453,932 535,448
Debt service:
Principal retirement 81,428
hlterest - ~ ~ - -
Total expenditures 2,997 3,830,590 ~ 2,453,932 ~
Excess of revenues over
(under) expenditures ~ (3,830,590) 630,000 ~ (898,829) ~ (496,570)
OTI-IER FINANCING SOURCES
(USES):
Transfers in 2,274,544 13,769 30,004
Transfers out (69,273) (1,035,380) (l24,m)
Contribution from property o""ers
h,stallment purchase - - -
Total other financial
sources (uses) 2,205,271 (1,021,611) (94.773)
Excess of revenues and other rmancing
sources over (under) expenditures
and other financing uses 201,656 (1,625,319) (391,611) 183,283 (898,829) 46 (496,570)
FUND BALANCES (DEFICIT),
July 1,1993 (149,237) 6,937,828 ~ (409,074) 816,491 ~ ~
FUND BALANCES (DEFICIT),
June 30, 1994 $ 52,419 $ 5,312,509 $ (323,298) $(225,791) $ (82,338) $ 898 $361,896
-44 -
Assessment Transpor-
Industrial District Development Redevelop- Sewer Facility tation
Bicycle Development Improvement Impact ment Replacement Partnership
Facility Authority Funds Funds Agency Fund Fund Total
$ 251,335
$ 236,800 $ 889,940 2.867,083
224,903 $ 206,406 $ 560.820 $ 9,252 $ 157,592 111,618 1,987.883
63 65,363 25,403 520,216 611,045
- - 4,635,204 - - - 4,635,204
~,766 271.769 5,221,427 ~ 677,808 1,001,558 10,352,550
19.378 110.683 2,469,625 3,420.606 32,306 770,676 13,556,464
128.179 209,607
- -~---~
~ 110.683 2,651,997 3,420,606 32,306 770,676 13,830,847
442,388 161,086 ~ (3,411,354) 645,502 ~ (3,478,297)
2,219,418 3,358,599 7,896,334
(122,263) (3,619,418) (4.971,111)
3,499,273 3,499,273
- ~ - 370,000
3,377,010 (1,030,000) 3,358,599 6,794,496
442.388 3.538,096 1,539,430 (52.755) 645.502 230.882 3.316,199
4,059,531 ~ 999,312 7,932,983 243.563 2,752,208 861,104 24,977,865
$4,501.919 $5.525 $4.537,408 $9,472,413 $ 190,808 $3,397,710 $1,091,986 $28,294,064
- 45-
CITY OF CHULA VISTA
TRUST AND AGENCY FUNDS
COMBINING BALANCE SHEET
JUNE 30, 1994
Expendable
Trust
Agency Funds Fund
Special Assessment Cash
Deferred Recreation Assessment Bond Bond
Compensation Trust District Reserve Deposits Total
ASSETS:
Cash and investments $444,919 $6,213 $10,290,976 $3,800,316 $14,542,424
Cash and investments - deferred
compensation $11,162,994 11,162,994
Accounts and taxes receivable 9,819 67,089 13,425 90,333
Accrued interest - ~ ---E ~ ~ ~
TOTAL ASSETS $11,162,994 $456,370 $6,245 $10,399,699 $3,829,164 $25.854,472
LIABILITIES:
Accounts payable $ 46 $ 310,046 $ 310,092
Refundable deposits 456,324 $6,245 $10,399,699 2,012,287 12,874,555
Deferred compensation $11,162,994 - - - - 11,162,994
Totalliabililies 11,162,994 ~ ~ 10.399,699 ~ 24,347,641
fUND EQUITY:
FUl1ds held in trust 1,506,831 1,506,831
Total fund equity 1,506.831 1,506,831
TOTAL LIABILITIES AND
fUND EQUITY $11,162.994 $456,370 $6,245 $10,399,699 $3,829,164 $25,854,472
-46 -
CITY OF CHULA VISTA
TRUST AND AGENCY FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - EXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30,1994
Cash Bond
Deposits
REVENUES:
Revenues ITom use of money and property $ 194,075
Other 2,812,675
Total revenues 3,006,750
EXPENDITURES:
General government 2,850,704
Total expenditures 2,850,704
Excess of revenues over expenditures 156,046
OTHER FINANCING USES:
Transfers in 15,874
Transfer out (175,997)
Total other uses (160,123)
Excess of expenditures and other financing uses over revenues (4,077)
FUND BALANCES, July 1, 1993 1,510,908
FUND BALANCES, June 30, 1994 $1,506,831
-47 -
CITY OF CHULA VISTA
AGENCY FUNDS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
YEAR ENDED JUNE 30,1994
Balance Balance
July 1,1993 Additions Deletions June 30,1994
Deferred Compensation
ASSETS:
Cash and investments $9,739,549 $2,017,351 $593,906 $11,162,994
$9,739,549 $2,017,351 $593,906 $11,162,994
LIABILITIES:
Deferred-compensation $9,739,549 $2,017,351 $593,906 $11,162,994
$9,739,549 $2,017,351 $593,906 $11,162,994
Recreation Trust
ASSETS:
Cash and investments $ 397,292 $ 47,627 $ 444,919
Accounts and taxes receivable 6,272 9,819 $ 6,272 9,819
Accrued interest 1,294 1,632 ~ 1,632
$ 404,858 $ 59,078 $ 7,566 $ 456,370
LIABILITIES:
Accounts payable $ 46 $ 46
Refundable deposits $ 404,858 59,032 $ 7,566 456,324
$ 404,858 $ 59,078 $ 7,566 $ 456,370
Special Assessment Districts
ASSETS:
Cash and investments $ 5,807 $ 4,335 $ 3,929 $ 6,213
Accrued interest 18 32 18 32
$ 5,825 $ 4,367 $ 3,947 $ 6,245
LIABILITIES:
Refundable deposits $ 5,825 $ 4,367 $ 3,947 $ 6,245
$ 5,825 $ 4,367 $ 3,947 $ 6,245
- 48-
CITY OF CHULA VISTA
AGENCY FUNDS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
YEAR ENDED .JUNE 30, 1994 (CONTINUED)
Balance Balance
July 1,1993 Additions Deletions June 30, 1994
Assessment Bond Reserve:
ASSETS:
Cash and investments $10,837,129 $5,859,729 $6,405,882 $10,290,976
Accounts and taxes receivable 164,989 67,089 164,989 67,089
Accrued interest 37,537 41,634 37,537 41,634
$11,039,655 $5,968,452 $6,608,408 $10,399,699
LIABILmES:
Refundable deposits $11,039,655 $5,968,452 $6,608,408 $10,399,699
$11,039,655 $5,968,452 $6,608,408 $10,399,699
Total:
ASSETS:
Cash and investments $20,979,777 $7,929,042 $7,003,717 $21,905,102
Accounts and taxes receivable 171,261 76,908 171,261 76,908
Accrued interest 38,849 43,298 38,849 43,298
$21,189,887 $8,049,248 $7,213,827 $22,025,308
LIABILITIES:
Accounts payable $ 46 $ 46
Refundable deposits $11,450,338 6,031,851 $6,619,921 10,862,268
Deferred compensation 9,739,549 2,017,351 593,906 11,162,994
$21,189,887 $8,049,248 $7,213,827 $22,025,308
-49 -
CITY OF CHULA VISTA
PROPRIETARY FUNDS
COMBINING BALANCE SHEET
JUNE 30,1994
Internal Service
Central Equipment
Garage Replacement Total
ASSETS:
Cash and investments $2,397,378 $2,397,378
Accounts receivable 2,285 2,285
Accrued interest receivable 9,648 9,648
TOTAL $2,409,311 $2,409,311
LIABILITIES:
Accounts payable $ 12,383 $ 12,383
Cash advances payable 331,356 331,356
Total liabilities 343,739 343,739
RETAINED EARNINGS (DEFICIl):
Reserved 20,980 $ 816,846 837,826
Unreserved (364,719) 1,592,465 1,227,746
Total retained earnings (deficit) (343,739) 2,409,311 2,065,572
TOTAL $ 0 $2,409,311 $2,409,311
- 50-
CITY OF CHULA VISTA
PROPRIETARY FUND TYPE
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN
RETAINED EARNINGS (DEFICIT)
YEAR ENDED JUNE 30,1994
Internal Service
Central Equipment
Garage Replacement Total
OPERATING REVENUE:
Charges for services $1,361,096 $ 959,126 $2,320,222
OPERATING EXPENSES:
Operatiol1S and administration 1,283,374 351,930 1,635,304
OPERATING INCOME 77,722 607,196 684,918
NON-OPERATING REVENUE:
Interest 101,870 101,870
Net income before operating transfers 77,722 709,066 786,788
TRANSFERS OUT TO FUNDS (310) (310)
Net income 77,412 709,066 786,478
RETAINED EARNINGS (DEFICIT),
July 1, 1993 (421,151) 1,700,245 1,279,094
RETAINED EARNINGS (DEFICIT),
June 30, 1994 $ (343,739) $2,409,311 $2,065,572
- 51 -
CITY OF CHULA VISTA
PROPRIETARY FUND TYPE
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED JUNE 30,1994
Internal Service
Central Equipment
Garage Replacement Total
CASH FLOWS FROM OPERATING
ACTMTlES:
Operating income $ 77,722 $ 607,196 $ 684,918
Adjustments to reconcile operating income
tonet cash provided by operating activities:
Changes in assets and liabilities:
Accounts and interest receivable (8,531) (8,531)
Accounts payable (24,429) (29,510) (53,939)
Cash advances payable (52,983) (52,983)
Net cash provided by operating activities -.l!Q 569,155 569,465
CASH FLOWS FROM NONCAPIT AL
FINANCING ACTIVITIES:
Transfers to other funds -ŒQ) (310)
Net cash used by noncapital financing
activities -ŒQ) (310)
CASH FLOWS FROM INVESTING ACTMTlES:
Interest 101,870 101,870
Net cash provided by investing activities 101,870 101,870
NET INCREASE IN CASH AND CASH
EQUIVALENTS 671,025 671,025
CASH AND CASH EQUIVALENTS,
JULY 1,1993 1,726,353 1,726,353
CASH AND CASH EQUIVALENTS,
JUNE 30, 1994 $2,397,378 $2,397,378
-52 -
t
»
Deloitte & REDEVELOPMENT AGENCY
Touche LLP Item #4
September 5, 1995
0
REDEVELOPMENTAGENCYOFTHE
CITY OF CHULA VISTA, CALIFORNIA
Component Unit Financial Statements
And Additional Information for the
Year Ended June 30, 1994 and
Independent Auditors' Report
DelaittøTouche
Tohmatsu
Intømatlonal
REDEVELOPMENT AGENCY OF THE
CITY OF CHULA VISTA, CALIFORNIA
TABLE OF CONTENTS
Page
INDEPENDENT AUDITORS' REPORT I
COMPONENT UNIT FINANCIAL STATEMENTS FOR THE YEAR
ENDED JUNE 30, 1994:
Combined Balance Sheet - All Fund Types and Account Groups 2
Combined Statement of Revenues, Expenditures and Changes
in Fund Balances - All Governmental Fund Types 3
Notes to Combined Financial Statements 4-13
ADDITIONAL INFORMATION FOR THE YEAR ENDED
JUNE 30, 1994:
Combining Balance Sheet - All Capital Project Funds 14
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - All Capital Project Funds 15
Supplemental Schedule of Tax Increment Shift of Educational
Revenue Augmentation Fund 16
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH
AUDIT GUIDELINES FOR CALIFORNIA REDEVELOPMENT AGENCIES 17-18
"
~
Deloitte &
Touche LLP
0 Suite 1900 Telephone: (619)232-6500
701 "B" Street ITT Telex: 4995722
San Diego. California 92101,8198 Facsimile: (619)237-1755
INDEPENDENT AUDITORS' REPORT
Board of Directors
Redevelopment Agency orthe
City ofChula Vista, California:
We have audited the component unit financial statements of the Redevelopment Agency of the City of
Chula Vista, California as of June 30, 1994, and for the year then ended, as listed in the foregoing
Table or Contents, These component unit financial statements are the fesponsibility of the management
of the Redevelopment Agency of the City ofChula Vista, California, Our responsibility is to express
an opinion on these component unit financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards, Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the component
unit financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the component unit financial statements, An
audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation, We believe that our
audit provides a reasonable basis for our opinion,
In our opinion, such component unit financial statements present fairly, in all material respects, the
financial position of the Redevelopment Agency of the City ofChula Vista, California at June 30, 1994
and the fesults of its operations for the year then ended in conformity with generally accepted
accounting principles,
As discussed in Note M to the general purpose financial statements, in 1994 the Redevelopment Agency
of the City of Chula Vista, California changed its method of accounting for taxpayer-assessed tax
revenues in govenunental funds to conform with Statement ofGovenunental Accounting Standards No,
22.
Our audit was conducted for the purpose of forming an opinion on the component unit financial
statements taken as a whole. The combining financial statements and supplemental schedule listed in
the foregoing Table of Contents, which are also the responsibility of the management of the
Redevelopment Agency of the City ofChula Vista, California, are presented for purposes of additional
analysis and are not a required part of the component unit financial statements of the Redevelopment
Agency of the City ofChula Vista, California, Such additional information has been subjected to the
auditing procedures applied in our audit of the component unit financial statements and, in our opinion,
is fairly stated in all material respects when considered in relation to the component unit financial
statements taken as a whole.
~~~ ~(..I'
October 13, 1994
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REDEVELOPMENT AGENCY OF THE
CITY OF CHULA VISTA, CALIFORNIA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 30, 1994
Fiduciary
Fund - Totals
Debt Capital Expendable (Memorandum
General Service Projects Trust Only)
REVENUES:
Tax increment revenue $ 2,630,062 $3,156,287 $ 5,786,349
Revenue from use of money and property 237,079 116,071 $ 9,252 $ 1,377 363,779
Charges for services 487,772 487,772
Reimbursement - other agencies 7,874 288,535 296,409
Miscellaneous 145,848 145,848
Total revenues 3,508,635 3,272,358 9,252 289,912 7,080,157
EXPENDITURES:
Property acquisition and operation 84,622 84,622
Improvement and construction costs 3,420,606 3,420,606
Administrative 1,444,098 1,444,098
Interest expense 43,801 43,801
Professional and consulting fees 878,466 878,466
Planning, survey and design 44,868 44.868
Rehabilitation costs and grants 23,422 23,422
Miscellaneous 132,592 298,898 431,490
Debl Service:
Principal reliremenl 950,000 950,000
Premium for called bonds 71,324 71,324
Interest 140,663 2,187,824 2,328,487
Bond trustee COSIS ~ 31,210
Total expenditures 2,792,532 3,240,358 3,420,606 298,898 9,752,394
Excess (deficiency) of revenues over
expenditures 716,103 32,000 (3,411,354) (8,986) (2,672,237)
OTHER FINANCING SOURCES
AND (USES):
Transfers in (out) (3,536,307) 3,358,599 (177,708)
Transfers out to City (1,062,090) (1,062,090)
Tax increment shift to ERAF (232,815) (232,815)
Increase in reserves for loans receivable 340,970 - - - 340,970
Total other financing sources
and (uses) (4,490,242) - 3,358,599 - (1,131,643)
Excess (deficiency) of revenues and other
financing sources over expenditures
and other financing uses (3,774,139) 32,000 (52,755) (8,986) (3,803,880)
FUND BALANCES, July 1, 1993, as
previously reported 6,752,576 3,391,093 243,563 8,986 10,396,218
PRIOR PERIOD ADJUSTMENT (Note A) 5,208,125 5,208,125
ACCOUNTING CHANGE ADJUST-
MENT (Note M) 574,705 - - - 574,705
FUND BALANCES, June 30, 1994 $ 8,761,267 $3,423,093 $ 190,808 $ o $12,375,168
See notes to combined financial statements,
-3-
REDEVELOPMENT AGENCY OF THE ¡
CITY OF CHULA VISTA, CALIFORNIA
NOTES TO COMBINED FINANCIAL STATEMENTS
YEAR ENDED JUNE 30,1994
A. SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity - The reporting entity of the Redevelopment Agency of the City ofChula Vista,
California (the "Agency") includes all funds of the Agency.
Since the City of Chula Vista, California (the "City") exercises oversight responsibility over the
Agency, it is considered to be a component unit of the City and is included in the City's annual
financial report.
Description of Funds and Account Groups - The accounts of the Agency are organized on the basis of
funds and account groups, each of which is considered a separate accounting entity with a self-
balancing set of accounts. The following are the types of funds and account groups used:
Governmental Funds
General Fund is used to account for all financial resources except those required to be
accounted for in another fund,
Debt Service Funds are established to account for tax increment fevenues, bond proceeds
required to be set aside for future debt service, and related interest expense. The funds afe used
to repay principal and interest on indebtedness of the Agency. Under provisions of the Health
and Safety Code and the Agency's bond resolutions, such funds are referred to as "Special
Funds",
Capital Projects Funds are established to account primarily fOf administfative expenses, project
improvements and construction costs, and other redevelopment project costs. Under provisions
of the Health and Safety Code and the Agency's bond resolutions, such funds are referred to as
"Redevelopment Funds",
Fiduciary Fund
Expendable Trust Funds are used to account for financial resources deposited and held in a
trustee capacity.
Account Groups - The two account groups are not "funds". They are concerned only with the
measurement of financial position. They are not involved with the measurement of results of
operatIons.
General Fixed Assets Account Group is used to maintain control and cost information on
capital assets owned by the Agency. Fixed assets are recorded as expenditures in the funds at
time of purchase, The assets are capitalized in the General Fixed Assets Account Group at cost
- 4 -
, ,I
,
! or, if donated to the Agency, at estimated fair market value at time of contribution,
Depreciation is not provided on general fixed assets. Certain improvements constructed in the
public right-of-way, such as streets, guttefs, curbs, parkways,sidewalks and drainage and
lighting systems, are not recorded in this account group,
General Long-term Debt Account Group is used to account for bonds and notes payable and
long-term advances.
Basis of Accounting - The Genefal, Debt Service, Capital Projects and Expendable Trust Funds are
accounted for using the modified accrual basis of accounting. Revenues are recognized when they
become measurable and available to finance expenditures of the current period, Accrued revenues
include tax increment revenue and earnings on investments, Expenditures are recorded when the
related liability is incurred. However, principal and interest on bonds payable are recorded as an
expenditure when due.
Investments - Temporary investments and investments held by a fiscal agent are stated at cost which
approximates market value.
Interjimd Advances - Funds have been "loaned" on a frequent basis between the individual Project
Area Funds making up the General Fund of the Agency and also to the Agency from the City's General
Fund, Advances Receivable/Payable between Agency Funds are eliminated from the balance sheet
when the various Project Area Funds are combined and reflected as the Agency Gencral Fund. The
balances of these Advances Receivable/Payable are disclosed in Footnote L.
Advances Payable to the City's General Fund, including interest accrued through June 30, 1994, are
reflected in the General Long Term Debt Account Group, since repayment dates are unfixed and
uncertain, Interest expense/revenue will only be reflected in the various Funds when it is paid/received,
Agency Budgets - The budgets of the Agency are primarily long-term budgets which emphasize major
programs and capital outlay plans extending ovef a number of years, Because of the long-term nature
of projects, annual budget comparisons are not considered meaningful, and accordingly, no budgetary
information is included in the accompanying financial statements,
Total Columns on the Combined Financial Statements - Total columns on the combined financial
statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate
financial analysis, Data in these columns do not present financial position or results of operations in
conformity with generally accepted accounting principles, nor is such data comparable to a
consolidation, Interfund eliminations have not been made in the aggfegation of this data,
Prior Period Adjustment - Subsequent to the issuance of the City's 1993 general purpose financial
statements, management of the City determined that such financial statements incorrectly recorded
interest of $4,080,440 on advances/payables between the various Agency Project Areas and
advances/payables between the General Fund and the General Revenue Fund of the City. The Agency
Project Areas are accounted for in the General Fund. As a result, prior year's General Fund Ending
Balance was understated as the Agency only recorded interest expense on such advances/payables. In
addition, the Agency restated to reclassify a $1,127,685 long-term liability from the General Fund into
the General Long-term Debt Account Group in order to properly reflect the intent of the Fund.
Accordingly, the beginning General Fund Balance as of July I, 1993 has been restated to increase such
Fund Balance by $5.208,125 in order to properly reflect the effects of these adjustments.
Reclassifications - Certain 1993 balances have been reclassified to conform to 1994 presentation.
- 5 -
.....J.
'I
II
B. ORGANIZATION AND TAX INCREMENT FINANCING
The Agency was activated in October 1972, pursuant to the California Community Redevelopment
Law, with its primary purpose to eliminate blighted areas by encouraging the development of
fesidential, commefcial, industrial, recfeational and public facilities. The Bayfront/fown Centre I
Project encompasses approximately 775 acres; its general objective is to redevelop the Bayfi-ont area
and the central business district. The goal of the Town Centre II Project, which consists of
approximately 212.5 acres in the central afea ofChula Vista, is to revitalize the area into a principal
regional shopping center. The Otay Valley Road Project area, compfising approximately 770 aCfes,
was created to establish and upgrade infi-astructure capital improvements for the promotion of
industrial development. The Southwest Project area, comprising approximately I, I 00 acres, was
cfeated to upgrade the commercial, industrial, residential properties and rights-{)f-way at a more rapid
pace than would occur without a redevelopment plan.
The Agency's primary source of funding, other than advances from the City and bond proceeds, is
property taxes, included in the accompanying financial statements as Tax Increment Revenue.
Property taxes allocated to the Agency are computed in the following manner:
a. The assessed valuation of all property within the project area was detennined on the date of
adoption of the Redevelopment Plan,
b, Property taxes related to the incremental increase in assessed values after the adoption of the
Redevelopment Plan afe allocated to the Agency; all taxes on the "frozen" assessed valuation of
the property are allocated to the City and other districts,
The Agency has no power to levy and collect taxes, and any legislative property tax refonn might
reduce the amount available to pay the principal and interest on bonds Of loans from the City.
Broadened property tax exemptions could have a similar effect, Conversely, any increase in the tax
rate or assessed valuation, or any reduction or elimination of present property tax exemptions would
increase the amount of tax revenues that would be available to pay principal and interest on bonds Of
loans from the City,
Pursuant to the 1992 Budget Act and related legislation the Agency was required to share in state
funding reductions, In accordance with this requirement, the Agency is required to make special
payments through the 1994.1995 fiscal year, to the Educational Revenue Augmentation Fund (the
"ERAF"). Based on the legislation, the Agency deposited $232,815 into the ERAF in the current fiscal
year. This payment has been classified as an other financing use in the Agency's financial statements.
C. CASH AND INVESTMENTS
The Agency's cash and investments at June 30, 1994 include the following:
Market
Cost Value
Cash or equity in pooled cash and investments $3,005,057 $2,958,479
Cash and investments with fiscal agents:
Cash 229,698 229,698
Money mafket accounts 3,182,599 3,182,599
$6,417,354 $6,370,776
- 6 -
...!.
-,
Cash or Equity in Pooled Cash and Investments - Cash or equity in pooled cash and investments
represents the Agency's net share of cash resources which are combined with the cash resources of the
City to form a pool of cash that is managed by the Finance Director, As provided for by the
Government Code, the cash balance of substantially all City and Agency funds are pooled and invested
by the Finance Director for the purpose of increasing investment earnings through investment activities,
Interest earned on pooled investments is allocated to City and Agency funds which are required by law
or administrative action to receive interest. Interest is allocated monthly based on the average cash
balance in each fund receiving interest.
City council resolution authorizes the City ofChula Vista, including the Redevelopment Agency, to
invest in certificates of deposit insured or collateralized in accordance with the California Government
Code; securities of the U.S. Government or its Agencies; U.S, Treasury Bills, Notes, Bonds or
Certificates of Indebtedness; Local Agency Investment Fund; Bankers' Acceptances; Commercial Paper,
Negotiable Certificates of Deposit; and Repurchase Agreements as specified in the City of Chula Vista
Investment Policy and Guidelines.
Cash and Investments with Fiscal Agents - Cash and Investments with fiscal agents includes cash and
investments held by trustees under debt agreements which are subject to authorized investments as
specified in the agreements, Permissible investments in the various agreements include: I) Federal
Securities; 2) Interest bearing demand or time deposits (including certificates of deposit) which are
insured by the FDIC or are rated "A" or better by S&P; 3) Commercial paper rated "A-I" or bettef by
S&P and "P-l" or better by Moody's; 4) Obligations issued by any corporation organized and operating
in the U,S, having assets in excess of $500 million whose obligations are rated "A" or better by S&P or
are unconditionally guaranteed by the U.S.A.; 5) Money market funds which invest solely in Federal
Securities or are rated "A" by S&P; 6) Bankers' acceptances of commercial banks (which banks must be
fated for unsecured debt in one of two highest S&P classifications); 7) Obligations on which the intefest
is exempt from federal income tax; 8) Federal Home Loan Mortgage Corporation or Farm Credit Bank
participation certificates Of senior debt obligations; 9) Federal National Mortgage Association mortgage-
backed securities or senior debt obligations; 10) Investment agreements approved by the Trustee
representing the general obligations of a financial institution whose unsecured general obligations are
rated "A" or better by S&P; and II) Student Loan Marketing Association letter of credit-backed issues
or senior debt obligations,
All investments and demand deposits with the fiscal agent are held in trust in the trustees' name and in
their trust department.
- 7 -
----!.
~
D. LOANS RECEIVABLE Ii
As of June 30, 1994 the Agency had made the following advances and deferred loans, included in loans
receivable:
Community Housing Improvement Program - loans for the purpose
or offering deferred and low interest rate home improvement loans
to qualified borrowers residing within a target area $3,937,500
Shinohara Loan - Loan to fund clean-up of hazardous waste 1,500,000
One Park, Ltd, - deferred loan for fmancial assistance for
construction oflow and moderate income housing 850,000
Chula Vista Bayfront Conservancy Trust - loan for financial assistance
in general operations and capital improvements of the Trust 1,446,778
Civic Center Barrio Housing Corporation - loan for the construction
of a 28-unit low income housing project 350,000
Scripps Memorial Hospital -loan for relocation assistance 300,000
Acquisition Association of Orange Tree Mobilehome Owners, Inc. -loan
for the purchase of the Orange Tree Mobile home park which is
primarily used for low and moderate income housing 143,845
$8,528,123
Chu/a Vista Rehabilitation Community Housing Improvement Program - The Chula Vista
Rehabilitation Community Housing Improvement Program ("CHIP") is undef the direct control of the
Agency, CHIP offers deferred and low interest rate home improvement loans to qualified borrowers
residing within a target area, Loan repayments are redeposited into the program cash accounts and are
redistributed as future loans, The program was originally funded entirely with Community
Development Block Grant ("CDBG") Federal funds, In recent years, the Agency began supplementing
the program due to decreased availability of Federal grants. In the current year, new contributions to
the pfogram were made entirely with Agency funds, The outstanding principal balance of the CHIP
loan due to the Agency's General Fund was $3,937,500, at June 30, 1994.
Shinohara Loan - The Agency entered into a loan agreement with Judi and Jimmie Shinohara, the
previous owners of property purchased by the Agency. The loan was made to fund the clean-up of
hazardous materials, discovered during pre-closing grading work, agreed to be completed by the seller.
The loan is secured by a deed of trust. Interest accrues quarterly at 7%. The principal, along with
accrued interest, is payable in full on August 18, 1997, The outstanding principal balance of the loan
receivable was $1,500,000 at June 30, 1994.
Deferred Loan. The Agency entered into a cooperative agreement with One Park, Ltd. ("OPL") in
1986 whereby the Agency's Low and Moderate Income Housing Fund provided a construction loan of
$850,000 to OPL on a deferred basis with a ten year term. The project is a rental apartment project
and under the agreement, 75% of the project units are reserved for low and moderate income
occupancy at affordable rent levels. The Agency participates in the equity gain on the project,
receiving at sale or term a percentage of the gross sales price of the project. The percentage increases
incrementally over the term of the loan and peaks at 4.5%, Interest accrues, but is not paid
periodically nor is principal. The outstanding principal balance of the OPL loan at June 30, 1994 is
$850,000,
The deeds of trust to be provided by OPL to the Agency have been subofdinated to concurrently
recorded deeds of trust held by the construction and permanent financing lenders,
- 8 -
Chula Vista Bayfront Conservancy Trust. As of June 30, 1994, the Agency had made loans of II
$ L 105,807 to the Chula Vista Bayfront Conservancy Trust (the "Trust"), a nonprofit public benefit
corporation established to ensure the protection of the envirorunentally sensitive areas of the Chula
Vista Bayfront. Interest accrues annually at rates ranging from 6.5% to 12%. Included in the loan
balance at June 30, 1994 is $340,971 in accrued interest receivable,
The Trust entered into a Lease, Loan and Operating Agreement (the "Agreement") with the City and
the Agency for the use ofa building and other facilities. The lease portion of the agreement requires
payment of$1 per year through April 1995, the Agreement states that the intention of the parties is to
negotiate a longer lease term before dIe end of the current term and indicates that the rental payment
may be increased to fair market value at that time. In addition, the Agreement sets forth certain
operating provisions to be followed by the Trust.
FurthermOfe, the Agreement calls for the Trust to develop a repayment schedule of advances from
other entities by April 1995, Should the parties fail to reach agreement by then, the outstanding
advances and interest shall be due and payable in April 1995.
The Trust is subject to certain covenants detailed in the Three Party Agreement which includes the
requirement that the Trust maintain minimum insurance coverages, The Trust is in compliance with
all covenants, As of June 30, 1994 the Trust had an accumulated deficit of$2,786,860.
Construction Loan - In 1991 the Agency entered into a loan agreement with the Civic Center Barno
Housing Corporation, a California non-profit public benefit corporation, The loan was made for the
purchase of land and the development of a 28 unit low income housing project. During 1992, the loan
was assigned to Park Village Apartments Ltd" a California limited partnefship in which Civic Center
Barrio Housing Corpofation is the managing general partner. The loan is secured by a deed of trust on
the property and assignment of rents, Principal and interest are payable monthly, commencing
February 1997. Interest accrues annually at 5% of the unpaid principal balance of the note. The
outstanding principal balance of the loan receivable was $350,000 at June 30,1994,
Scripps Memorial Hospital Loan - The Agency has entered into a loan agreement with Scripps
Memorial Hospital ("Scripps"), a California non-pfofit corporation, The loan was made so Scripps
could provide relocation assistance to relocate Rollerskateland as part of Scripps' expansion in the
City, The loan is an unsecured promissory note. Interest accrues annually at 4.5% through December
1997 and 8% for the remaining period; interest is payable monthly, All principal and any accrued but
unpaid interest is due and payable Decembef 20, 2004, The loan may be required to be paid earlier in
the event of default. The outstanding principal balance of the loan receivable was $300,000 at
June 30, 1994,
Mobilehome Assistance Programs - The Agency entered into agreements with eligible residents of the
Orange Tree Mobilehome Park, whereby the agency loaned $250,030 as permanent financing
assistance to residents for the purpose of purchasing certain mobilehome property, Loans are secured
by deeds of trust on the property and mature in 2017 or when the property is sold, The principal
balance of the loans is $143,845 at June 30, 1994. Contingent interest will be charged based on
calculations specified in the agreement (Note F).
E, CAPITAL LEASE RECErv ABLE
The Agency has entefed into three Lease Agreements with the City in connection with the Certificates
of Participation mentioned in Note H. The City's Annual Lease payments to the Agency are equal to
the annual debt service requirements on the outstanding Certificates of Participation. The minimum
lease payments required under the Lease are greater than the value of the capital improvements which
are the subject of the Lease, making these transactions capital rather than operating leases.
-9-
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F. GENERAL FIXED ASSETS
The following is a summary of changes in general fixed assets of the Agency:
Balance Balance
July 1, 1993 Additions Retirements June 30, 1994
Land $24,423,823 $ 647,869 $91,469 $24,980,223
Building 2,024,978 764,765 2,789,743
Equipment 399,836 6,040 405,876
Improvements 31,479 - 31,479
Total $26,880,116 $1,418,674 $91,469 $28,207,321
G, LOANS PAYABLE
The Agency entered into loan agreements with a bank in order to purchase certain Orange Tree
Mobilehome Park lots, These lots will be held by the Agency and rented to park residents until the
residents or other qualified buyers can purchase these lots from the Agency. Loans carry interest at
11.5% annually and mature in the year 2008. The Agency intends to sell the lots and pay off the loans
in the subsequent fiscal year and has therefore re.corded the outstanding $359,469 loans as a current
debt of the general fund at June 30, 1994. The Agency has recofded the lots as land in the General
Fixed Asset account group (See Note F),
H, GENERAL LONG-TERM DEBT
Changes in long-term debt during the year wefe as follows:
Balance Balance
July 1, 1993 Additions Retirements June 30, 1994
1986 tax allocation bonds $28,045,000 $ 950,000 $27,095,000
1987 Series B certificates
of participation 5,315,000 375,000 4,940,000
1993 refunding certificates
of participation 11,285,000 155,000 11,130,000
1993 certificates of
participation $3,115,000 3,115,000
44,645,000 3,115,000 1,480,000 46,280,000.
Advances payable 5,874,163 5,874,163
$50,519,163 $3,115,000 $1,480,000 $52,154,163
'-
- 10 -
...
Detail of the June 30, 1994 balance follows:
Revenue Bonds and Certifictes ofParticioation
Revenue Bonds -
The Bayfrontffown Centre Redevelopment Project 1986 Tax
Allocation Bonds, dated May 1, 1986, were issued to provide financing
for redevelopment projects in certain target areas, The original
amount due was $38,655,000 and matures in amounts ranging ITom
$1,015,000 in 1995 to $18,275,000 in 2011. Interest is payable
semi-annually on November 1 and May 1, at interest rates ranging
ITom 7.5% to 8% annually. Bonds maturing after May 1, 1996
are subject to redemption at premiums ITom 1/2% to 2%, The
bonds are secured by a first pledge of tax revenues in the
Bayfrontffown Centre project area. $27,095,000
Certificates of Participation -
The 1987 Series B certificates of participation (the" 1987 Series B
Certificates"), dated September 1, 1987, evidencing proportionate interests
in lease payments of the City, were issued to provide capital improvements
and to advance refund the 1982 Parking Facility Certificates of Participation,
The original amount due was $6,600,000 and matures in amounts ranging
from $400,000 in 1995 to $735,000 in 2003, Intefest is payable semi-annually
on March 1 and September 1, at interest rates fanging ITom 7.2% to 8.5%
annually, The 1987 Series B Certificates maturing aftef September 1, 1997
are subject to redemption at premiums ranging ITom zero to 2%, 4,940,000
The 1993 refunding certificates of participation (the" 1993 Refunding
Certificates") dated March 1, 1993, evidencing proportionate interests in
lease payments of the City, were issued to advance refund the 1987 Series A
Certificates of Participation (the "1987 Series A Certificates"). The original
amount due was $11,285,000 and matures in amounts ranging ITom 3.50%
to 6% annually. The 1993 Series Certificates maturing after September 1,
2003 are subject to redemption at premiums ranging ITom zero to 2%, 11,130,000
The 1993 certificates of participation (the" 1993 Certificates") dated
December 1, 1993, evidencing proportionate interests in lease payments of
the City, were issued to provide capital improvements in the Town Centre II
Redevelopment Project of the Agency, Net proceeds of $2,600,000 were
paid to Homart Development Co. for construction of a public parking
facility, The original amount of the issue is $3,115,000 and matures in
amounts ranging ITom $105,000 in 1996 to $250,000 in 2014. Interest is
payable semi-annually on March I and September 1, at interest rates
ranging ITOm 3.6% to 5.8% annually. 3,115,000
$46,280,000
. 11 -
--
Advances Pavable
The Agency has entered into agreements with the City to repay the City for
certain payments made by the City on each of the three certificates of
participation issues. The Agency's payments to the City shall be made
within thirty days or Agency's receipt of tax increments and shall be in the
full amount of all tax increments attributable to the Town Centre II
Redevelopment Project, less any amounts witlù1eld in conformance with
legal fequirements, preexisting passthrough agfeements with other I<Lxing
entities or funds pledged. Reimbursement may be made on an irregular
basis over a period of time due to the necessity to use tax increment funds
to complete other projects within the project area consistent with the
Agency's financial ability to make the City whole as soon as practically
possible, Interest is payable on the advance at a rate equal to the City
Treasurer's average portfolio yield, calculated annually. At June 30, 1994,
the City's payments covered under these reimbufsement agreements along
with other advances totalled $4,450,641. Interest accrued to June 30, 1994
amounted to an additional $1,423,522 in advances payable to the City, $ 5,874,163
At June 30, 1994, aggregate maturities for general long-term were as follows:
Revenue Bonds
and Certificates
Year Ending June 30, of Participation
1995 $ 5,050,392
1996 5,147,864
1997 5,142,509
1998 5,129,166
1999 5,112,407
2000 through 2013 59,326,941
Less amount representing interest (38,629,279)
Total $ 46,280,000
There are no specific maturity dates on the advances payable to the City,
l. DEFEASED DEBT
On March 9, 1979, the $3,400,000 1975 Tax Allocation Bond issue was defeased, At June 30, 1994,
a principal balance of$2,000,OOO remains outstanding,
On May 29, 1986, the $7,150,000 1979 Tax Allocation Bonds wefe defeased, At June 30, 1994 a
principal balance of $5,080,000 remains outstanding.
Defeased debt and the related cash are appropriately not included in the financial statements.
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J, RELATED PARTY TRANSACTIONS
The Agency, which does not hire its own employees, reimburses the City for personnel time charges
based on a rate which includes base salary plus benefits, including the Public Employees Retirement
System,
K. COMMITMENTS AND CONTINGENCIES
At June 30, 1994, the Agency has been named as a defendant in various legal complaints. The Agency
intends to contest the allegations made, but the results of the litigation are not presently determinable,
However, in the opinion of management, the amount oflosses that might be sustained would not
materially affect the Agency's financial position,
L. INTERFUND ADVANCES RECEIVABLE AND PAYABLE
The following interfund advances will be paid from future revenues with those indicated by an asterisk
(*) carrying intefest rates ranging from 6% to 12%, The amount shown includes accrued interest on
tile advanced amount through June 30, 1994 to be paid from future revenues, The advances
receivable/payable are not reflected in the balance sheet, but were eliminated when the individual
Project Area Funds were consolidated into the General Fund,
Due To Due From Amount
Housing Program Fund Low and Moderate Income Housing
Fund $ 300,000
Bayfrontlfown Centre I Fund* Otay Valley 8,162,914
Bayfrontlfown Centre I Fund* Town Centre II Fund 2,536,999
Bayfrontlfown Centre I Fund' Southwest Fund 489,545
Low and Moderate Income Housing Fund Otay Valley Fund 95.165
Total advances feceivable/payable $ II 584.623
M ACCOUNTING CHANGE
Beginning fund balances of the General Fund has been restated to reflect an adjustment for the
adoption of Governmental Accounting Standards Board Statement No, 22, Accountin!! for TaxDaver-
Assessed Tax Revenues in Governmental Funds, Statement No. 22 eliminates an inconsistency in the
promulgated standards for the recognition of taxpayef-assessed revenues by requiring that taxpayer-
assessed reVenue be recognized when measurable and available. The effect of this restatement
increased fund balances at July I, 1993 by $574,705 in the General Fund.
******
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ADDITIONAL INFORMATION
I
REDEVELOPMENT AGENCY OF THE
CITY OF CHULA VISTA, CALIFORNIA
COMBINING BALANCE SHEET - ALL CAPITAL PROJECT FUNDS
JUNE 30,1994
BayfrontJ Town Otay Low!
Town Centre I Centre II Valley Moderate Totals
ASSETS:
Cash and investments $185,655 $ 34 $173,389 $1,525 $360,603
Accrued interest receivable 733 16 749
- -
$186,388 $ 34 $173,405 $1,525 $361,352
LIABILITIES:
Accounts payable $169,148 $1,396 $170,544
Total liabilities 169,148 1,396 170,544
FUND BALANCE:
Designated for capital projects $186,388 $ 34 4,257 129 190,808
Total fund balance 186,388 34 ~ 129 190,808
$186,388 $ 34 $173,405 $1,525 $361,352
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REDEVELOPMENT AGENCY OF THE
CITY OF CHULA VISTA, CALIFORNIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES -ALL CAPITAL PROJECT FUNDS
YEAR ENDED JUNE 30, 1994
Bayfrontl Town Otay Low!
Town Centre I Centre II Valley Moderate Southwest Totals
REVENUES:
Revenue ti-om use of
money and property $ 9,127 $ 2 $ 120 $ 3 ~
Total revenues ~ 2 120 3 ~
EXPENDrruRES:
Improvement and con-
straction costs 336,751 267 2,899,697 161,475 $ 22,416 3,420,606
Total expenditures 336,751 267 2,899,697 161,475 22,416 3,420,606
Excess of ex pendi lures
over revenues (327,624) (265) (2,899,577) (161,472) (22,416) (3,411,354)
TRANSFERS FROM
GENERAL FUND 274.744 267 2,899,697 161,475 22,416 3,358,599
Excess of revenues
and transfers in over (W1der)
expenditures (52,880) 2 120 3 (52,755)
FUND BALANCES, July 1,
1993 239,268 -E ~ 126 - 243,563
FUND BALANCES, JW1e 30,
1994 $ 186,388 $ 34 $ 4,257 $ 129 $ 190,808
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REDEVELOPMENT AGENCY OF THE
CITY OF CHULA VISTA, CALIFORNIA
SUPPLEMENTAL SCHEDULE OF TAX INCREMENT SHIFT TO
EDUCATIONAL REVENUE AUGMENTATION FUND
YEAR ENDED JUNE 30,1994
Total Tax Increment to be shifted to the Educational Revenue Augmentation
Fund (ERAF) per State Department of Finance (DOF) letter dated
October I, 1993 $232,815
Funding Sources:
Other Redevelopment Agency Funds $232,815
TOTAL TAX INCREMENT SHIFT TO ERAF $232,815
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Deloitte &
Touche LLP
0 Suite 1900 Telephone: (6191232-6500
701 "B" Street In Telex: 4995722
San Diego. California 92101-8198 Facsimile: 16191237-1755
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH
AUDIT GUIDELINES FOR CALIFORNIA REDEVELOPMENT AGENCIES
Board of Directors,
Redevelopment Agency of the
City of Chula Vista, California:
We have audited the component unit financial statements of the Redevelopment Agency ofthe City
ofChula Vista, California (the "Agency") as ofJune 30, 1994 and for the year then ended, and have
issued our report thereon dated October 13, 1994,
We conducted our audit in accordance with generally accepted auditing standafds, Government
Auditing Standards, issued by the Comptroller General of the United States, Section 33080.I(a) of
the Health and Safety Code of the State of California, and the procedures contained in the
Controllef of the State of California Guidelines for Compliance Audits of California Redevelopment
Agencies. Those standards require that we plan and perfonn the audit to obtain reasonable
assurance about whether the component unit financial statements are fi-ee of material misstatement.
Compliance with laws, regulations and administfative requirements applicable to the Agency is the
fesponsibility of the management of the Agency. As part of obtaining reasonable assurance about
whether the component unit financial statements are fi-ee of material misstatement, we performed
tests of the Agency's compliance with certain provisions of laws, regulations and administrative
fequirements, However, OUf objective was not to provide an opinion on overall compliance with
such provisions, Accordingly, we do not express such an opinion,
The results of tests indicate that, with respect to the items tested, the Agency complied in all
material respects with the provisions referred to in the preceding paragraph, With respect to items
tested, nothing came to our attention that caused us to believe that the Agency had not complied, in
all material respects, with those provisions, We noted the following immaterial instances of non-
compliance:
Health and Safety Code Section 33334.2 and 33334.6 requires that certain findings be made
annually by resolution of the Agency if20% of the tax increment fi-om a project area is not
set aside for low and moderate income housing.
Such findings were not made for Bayfrontffown Center I and Town Center II project areas
for fiscal year ended June 30, 1994,
Agency staffhas infonned us that they were aware of the shortfall and is analyzing whether
such findings can be made given current conditions in these project areas.
DelolttlÌ Touche -
Tohmatsu
International - 17 -
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!
This report is intended for the infonnation of members, management and others within the Agency, I
and officials of the State of California Controller's Office. This restriction is not intended to limit
the distribution of this report, which is a matter of public record.
~~~ ¿t.-¡p
October 13. 1994
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Oeloitte & REDEVELOPMENT AGENCY
Toucbe llP Item #4
September 5, 1995
0
CITY OF CHULA VISTA, CALIFORNIA
Reports On Federal Financial Assistance
Programs Required For A Single Audit And
Independent Auditors' Report
Year Ended June 30,1994
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CITY OF CHULA VISTA, CALIFORNIA
REPORTS ON FEDERAL FINANCIAL ASSISTANCE PROGRAMS REQUIRED FOR A SINGLE
AUDIT AND INDEPENDENT AUDITOR'S REPORT
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 1994
Page
Independent Auditors' Report on the Internal Control Structure
Based on the Audit of the Financial Statements 1-3
,
Independent Auditors' Report on Compliance Based on the
Audit of the General Purpose Financial Statements 4
Independent. Auditors' Report on the Supplementary Schedule of Federal
Financial Assistance 5
Schedule of Fedefal Financial Assistance 6-7
Independent Auditors' Report on the Internal Control Structure
Used in Administering Federal Financial Assistance 8-10
Independent Auditors' Report on Compliance with the General Requirements
Applicable to Federal Financial Assistance 11-12
Independent Auditors' Report on Compliance with Specific Requirements
Applicable to Major Federal Financial Assistance Programs 13.14
Independent AuditOfS' Report on Compliance with Requirements
Applicable to Nonmajof Federal Financial Assistance Program
Transactions 15
Schedule of Findings and Questioned Costs 16-18
Status of Prior Year Findings and Questioned Costs 19-21
Independent Auditors' Report on Supplemental Schedules 22
Supplemental Schedules 23-24
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I
1 Deloitte &
, Touche UP
¿\. Suite 1900 TelePhone,' (6191232,6500
U 701 "B" Street In Telex' 4995722
San Diego, California 92101.8198 Facsimile: (6191237,1755
INDEPENDENT AUDITORS' REPORT ON THE INTERNAL CONTROL STRUCTURE
: BASED ON THE AUDIT OF THE FINANCIAL STATEMENTS
I
City Council
City of Chula Vista, California:
We have audited the general purpose fmancial statements of the City of Chula Vista, California as of
i and for the year ended June 30, 1994,andhaveissuedourreportthereondatedOctobef 13, 1994,
\ 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 perfonn the audit to obtain reasonable assurance about whether the general purpose
financial statements are free of material misstatement.
In planning and performing our audit of the general purpose financial statements of the City ofChula
Vista, California for the year ended June 30, 1994, we considered its internal control structure in ordef
to detennine our auditing procedures for the purpose of expressing our opinion on the general purpose
financial statcments and not to provide assurance on the internal control structure.
The management of the City ofChula Vista, California, is responsible for establishing and maintaining
an intemal control structure, In fulfilling this responsibility, estimates and judgments by managemcnt
are requifed to assess the expected benefits and related costs of internal contfol structure policies and
pfocedures, The objectives of an internal control structure are to provide management with reasonable,
but not absolute, assufance 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 pennit the preparation of genefal purpose financial statements in accordance with
generally accepted accounting principles, Bccause of inherent limitations in any internal control
structure, errors Of 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 Of that the effectiveness of the design and operation of
policies and procedures may deteriorate,
0e1øltt8 Touche
Tolunatsu
International - I -
-_.,,- '.-,,' ,~~ ':~,~,
For the purpose of this report, we have classified the significant internal control structure policies and
procedures in the following categories:
Internal Accountinl! Controls
. Cash receipts
. Cash disbursements
. Accounts payable
. Claims ar j disbursing
. Billings/revenues
. Payroll
. Journal entries/generalledger
. Property and equipment
. Grants
CONTROLS USED IN ADMINISTERING FEDERAL PROGRAMS
General Reouirements
. Political activity (Hatch Act and Intergovernmental Personnel Act
of 1970, as amended)
. Davis-Bacon Act
. Civil rights
. Cash management
. Relocation assistance and real property acquisition
. Federal financial reports
. Allowable costs/cost principles
. Drug-free Workplace Act
. Administrative requirements
Specific Reouirements
. Types of services
. Eligibility
. Matching, level of effort and/or earmarking
. Reporting
. Cost allocation
. Monitoring subrecipients
. Special tests and provisions - CFDA Number 14.218
. Special tests and provisions related to Office of Criminal
Justice Planning Grants
. Special tests and provisions related to State Local Transportation
Partnership Program contracts
For all of the internal control structure categories listed above, 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.
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I. Our consideration of the internal control structure would not necessarily disclose all matters in the
internal contfol structufe that might be material weaknesses under standards established by the
American Institute of Certified Public Accountants. A material weakness is a 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 general 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, We noted no matters
involving the internal control structure and its operation that we considef to be material weaknesses as
defined above,
We noted matters involving the internal control structure and its operation used to administer federal
financial assistance programs which we reported to management of City of Chula Vista, California, in a
report dated October 13, 1994.
This report is intended for the information of the City Council and management of the City of Chula
Vista, California, and officials of the federal and state grantor agencies, However, this report is a
matter of public record and its distribution is not limited,
~,.~ J.~"
October 13, 1994
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.. -,
Deloitte &
Touche LLP
0 Suite 1900 Telephone: 16191232.6500
701 "B" Street In Telex 4995722
San Diego. California 921 01-B1 98 Facsimile: 16191237.1755
INDEPENDENT AUDITORS' REPORT ON C()MPLIANCE BASED ON
THE AUDIT OF THE FINANCIAL ST A TEMEr, TS
City Council
City of Chula Vista, California:
We have audited the general purpose financial statements of the City ofChula Vista, California as of
June 30, 1994 and for the year then ended, and have issued our report thereon dated October 13, 1994,
We conducted our audit in accofdance with generally accepted auditing standards and Government
Auditing Standards, issued by the Comptroller General of the United States, Those standafds require
that we plan and perfonn the audit to obtain reasonable assurance about whethef the general purpose
financial statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to the City of Chula Vista,
California, is the responsibility of the management of the City ofChula Vista, California, As part of
obtaining reasonable assurance about whether the general purpose fmancial statements arc ffee of
material misstatement, we perfonned tests of the City's compliance with certain provisions of laws,
regulations, contracts, and grants, However, the objective of our audit was not to provide an opinion on
overall compliance with such provisions, Accordingly, we do not express such an opinion, However,
the results of our procedures disclosed immaterial instances of noncompliance with these previsons,
which are described in the accompanying Schedule of Findings and Questioned Costs,
The results of our tests indicate that, with respect to the items tested, the City of Chula Vista, California
complied, in all material respects, with the provisions referred to in the preceding paragraph, With
respect to items not tested, nothing came to our attention that caused us to believe that the City had not
complied, in all material respects, with those provisions.
We also noted matters involving compliance with laws and regulations related to federal financial
assistance which we reported to the City ofChula Vista, California management in our report dated
October 13, 1994 on specific compliance for norunajor program transactions,
This report is intended for the infonnation of the City Council and management of the City ofChula
Vista, California, and officials of the federal and state grantor agencies, However, this report is a
matter of public record and its distribution is not limited,
~;-~'¿'~p
October 13, 1994
lleloltte Touche
Tolunatsu
International -4.
'~,ê,,"',"'<"~'C-." ",_..,":: '",","::C"""""",,,," " .,~, _""'0"
",-,-=c=c""",:",' ,- ---
Deloitte &
Touche LLP
¿\. Suite 1900 TelePhone,: (6191 232,6500
~ 701 "B" Street In Telex 4995722
San Diego, California 92101-8198 Facsimile: (619) 237,1755
INDEPENDENT AUDITORS' REPORT ON THE SUPPLEroENTARY SCHEDULE OF
FEDERAL FINANCIAL ASSISTANCE
City Council
City ofChula Vista, California:
We have audited the general purpose fmancial statements of the City ofChula Vista, California, as of
and for the year ended June 30, 1994, and have issued our report thereon dated October 13, 1994,
i These general purpose financial statements are the responsibility of the management of the City of
I Chula Vista, California, Our responsibility is to express an opinion on these general purpose financial
I statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and Government
' Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require
that we plan and perfonn the audit to obtain reasonable assurance about whethef the general purpose
financial statements are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the general purpose financial statements, An audit
also includes assessing the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation, We believe that our audit provides a
i reasonable basis for our opinion.
I
i Our audit was made for the purpose of Conning an opinion on the general purpose financial statements
of the City ofChula Vista, California taken as a whole. The accompanying Schedule of Federal
Financial Assistance, which is also the responsibility of the management of the City ofChula Vista,
California, is presented fOf purposes of additional analysis and is not a required part of the general
purpose financial statements, The infonnation in that schedule has been subjected to the auditing
procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly
presented in all material respects in relation to the general purpose financial statements taken as a
I whole.
This report is intended for the infonnation of the City Council and management of the City ofChula
! Vista, California and officials of the federal and state grantor agencies. However, this report is a
matter of public record and its distribution is not limited,
~,.. ~ .t...1"
October 13, 1994
Deloltt8 Touche
Tohrnabu
,International - 5 -
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I
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CITY OF CHULA VISTA
SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30, 1984
: Deferred Deferred
Federal Program Revenue Year ended June 30, 1994 Revenue
Federa' GranlorlPass.Through CFDA Pass-throughl or Award (Receivable) at Kevenue txpendltures (Receivable) al
GrantorlProgram TIlle Number Grantor's Number Amounl July 1, 1113 Recognized Disbursed June 30. 1994
v,s, Denallment ofTransoonatioo
Passed througlt the State ofCalüomi.
Depanm,'Ot of Transportation:
Federal Aid 10 Urban 20,20' N.A!).ó2(1) S 1,709,'81 S (204,393) S 204,393
Defense A".... Road 20,20' M.SI9l(l) 1,4".476 (370.220) 370,220
Office of Traffic Safety 20,600 N/A ~ - - S 11,000 $(11.000)
Subtotal 3,178.0'7 <'74,613) ~ ~ ~)
U $, Denallment ofHousin. and Urban Develooment
Direct Programs:
Community Development
Block Granl 14.218 B-93.MCO6.()'40 1,664,000 622.861 622,861
Community Developo-'
Block Grant 14,218 B-92-MCO6.()'40 1.380,000 (10) 24'.100 241,090
Conununity Developmern
Block Grallt 14.218 B-9l.MC.Q6.0,40 1,297.000 179,197 179,197
Conuuunlly Developmenl
Block Orant 14.218 B-90-MCO6.()'40 2.2'6,463 1,09'.463 60,197 822.'73 333,087 (a)
Conul1unity Developmenl
Block Gra.. 14,218 B-89.MC.Q6.0'40 1,203,000 8.727 8,727
Conununity Development
Block Grant 14,218 B-88.MC.Q6.()'40 1."7,000 6,967 6,967
Conununily Developo-'
Block Grant 14.218 B-87.MCO6.()'40 86',000
Conul1uIHly Development
Block Orant 14,218 B-86.MC.Q6.0,40 862,000 390 390
Community Development
Block Grant 14,218 B-8'-MC.Q6.0,40 883,'76 6,'92 6.'92
Conununity Development
Block Grant 14,218 B-84.MC-06.()'40 8",'6' 1,837 1,837
Community Development
Block Grant 14.218 B-82.MC-06.()'40 824,3'1 698 698
Passed throu.h San Die.o Countv U,S, Denartment of Housin. and Urban Develooment
ConunuMy Developmern
Block Grant 14.218 B-88-UC-06.()'01 193.019
Community Development
Block Grant 14,218 B-87.~'()'01 341,601 7,204 7,204
Community Development
Block Grant 14,218 B-84-UCO6.()'0 I 142,494 - - -
I HUD :~~=: 08 Loan 13,9",069 1,09',4'3 1.139,770 1,902,136 333,087
14,218 N/A 750,000 97,329 ~(b)~ ~
Subtotal 14,70',069 1,192,782 1,144,697 1,976,858' 360,621
U.$, Denanment of Justice
Passed througlt the County
orSan Die8o,
J.U,D,G,E, Grant 16,'40 DC930l037D-OO ",391 ",391 '1,391
'Denotes. Major Propam
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I CITY OF CHULA VISTA
I SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30, 1994 (Continued)
Deferred Deferred
Federal Program Revenue Year ended June 3D, 1994 Revenue
CFDA P..s-throughl or Award (Receivable) at ..evenue Expenditure. (Receivable) at
Number Grantor's Number Amount July 1, 1883 Recognized Dlsb',rsed June 30, 1994
U.S. Deoar1ment of Education
Direct Programs:
Federal Library Servi.... and
Construction Act (LSCA).
Title VI Grant 84,167 RI67A:zOI99 S 32,800 S 12,132 S 12,132
Federal Library Servi.... and
Construction Act (LSCA).
Title VI 0nuIt 84.167 RI67A3004 34,845 23.'26 23,'26
Possed through the Stale of California
Education Department
I Section 321 Grant (Federal
Muh B~ie Educalion Act) 84.002 92.31-o30"-M6l9 ',9'8 1,502 1.502
! Section 321 Grant 84,002 93.31-o30"-M6l9 1,981 ',521 S '5.521)
M,U,R,!. Grant (LSCA) 84.034 40.2433 11,888 S 11,888 11,888 11,888
M,U,R,!.. Grant 84,034 4( .2663 11,615 343 343 11.212
LSCAI.9.14 84,034 4( .21 II ',000 ',000 5.000
LSCA l-13.AI 84,034 4()-2'6, ~ ~ ~(e)~ -
Subtotal ~ ....ß!.!2 ~ ~ ~
Federal Emeroencv Manaaement Aaencv
Direct Programs;
Emergency Man.a8emcn1
As8i"""ce Program 83,'°3 N/A 14,463 14,463 14,463
Roben T. Stafford DiaaatOf Relief '"
Emergency Assillana: Aot PLloo-101 FEMA.919-DR ~ ~ 80,194 135,418
Subtotal ~ ~ ~ ~
Federal Mediation/Conciliation Service
Dire" Program:
Quality .fWork Life Program Grant 34,002 9O-<:A/PS-o15 ~ --ill) _(d)- -
ralal Federal Financial Assiatanee SI8,414.O66 S116.O68 Sl,948,161 ~ $360,366
===== -====- -===-
Notal.
Bosi' o{Accounring. The supplementary schedule of federal fllW1<:ialassillance is not prepared on the acaual buis of accounting, Expenditures are recognized when they bceo""
I demand on eUrTent available financial resources. Encumbranceo are used during the year for bud8eWy control pur >OIeI and lapo< at f_1 )'<IT end,
f«Ieral filWlCiaJ assistance provided to IUbroçipients ¡, treated as an expenditure when it is paid to the IUbroçipient.
Ndo2,
Rrporting Entity. The City ofChula Vista, Califomia for purposes of the supplementary schedule offederal fmancialOssistance ineludes all the funds of the primary gov,nunenl '"
, deflOed by GASB Statement 14. The Financial Reporting Entity, The City ofChula Vista administers cauin federal fmancial IISistance programs through subrecipicots. 1110"
..brecipicots are not oonsicleced part of the City ofChula Vista reporting enlity,
(a) In July 1993. the City wired $1,095,463 to HUDas partial retum of Proposilion g5 State Grant reim""-ts for land
pu<d1ases made with CDBG funds in prior yean. HUD added the $1,095.463 to the original $1,161,000 line ofcreelit. l11e SI.O95,463 is!o be
used for "]'<'11SCS relating to the South Chula Vista Library proje<1. The deferred revenue is the unspent portion remaining of the $1,095,463,
(b) 111, Section 108 loan w...dvanced in fiscal year 1991.1992 forO.. full amount of$150,ooo and wned $4,921 in interest income for
Ibe year ended June 30. 1994,
(e) The Cily refunded $811 of funds r....jvecl in fiscal )'<IT 1993.
(d) The City...... off the $19 receivable, FMCS said expense was not reimbu""ble due tomatchin8 funds shortage,
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".---- -,. -- -'."'-"---' ,.--
-" '-
Deloitte &
Touche LLP
0 $ulle1900 Telephone 1619) 232,6500
701 "8" Street In Telex: 4995722
San Diego. California 92101.8198 Facsimile: (619) 237,1755
INDEPENDENT AUDITORS' REPORT ON THE INTERNAL CONTROL STRUCTURE
USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE
City Council
City of Chula Vista, California:
We have audited the general purpose financial statements of the City ofChula Vista, California as of
and fOf the year ended June 30, 1994, and have issued our report thereon dated October 13, 1994, We
have also audited City ofChula Vista, California's compliance with requirements applicable to major
federal financial assistance programs and have issued our report thereon dated October 13, 1994,
We conducted our audit in accordance with generally accepted auditing standards; Government
Auditing Standards, issued by the Comptroller General of the United States; and Office of Management
and Budget (OMB) Circular A-128, Audits of State and Local Governments, Those standards and
OMB Cifcular A-128 require that we plan and perform the audit to obtain reasonable assurance about
whether the general purpose financial statements are free of material misstatement and about whether
the City of Chula Vista, California complied with laws and regulations, noncompliance with which
would be material to a majof federal financial assistance program,
In planning and performing our audits for the year ended June 30, 1994, we considered the City of
Chula Vista, California's internal control structure and assessed control risk in order to determine our
auditing procedures for the purpose of expressing our opinions on the City of Chula Vista, California's
general purpose financial statements and on its compliance with requirements applicable to major
programs and to report on the internal control structure in accordance with OMB Circular A-128, This
feport addfesses our consideration of internal control structure policies and procedures relevant to
compliance with requirements applicable to federal financial assistance programs, We have addressed
internal control structure policies and procedures relevant to our audit of the general purpose financial
statements in a separate report dated October 13, 1994.
The management of the City of Chula Vista, Califomia 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, that transactions are executed in accordance with management's authorization and recorded
properly to permit the preparation of general purpose financial statements in accordance with genefally
accepted accounting principles, and that federal financial assistance programs are managed in
Deloltt8 Touche
Tohmatsu
I IRtematlonal
- 8 -
',.""....' =c ""~,,:-'- -', '"cr~>.>,~"""",."',"""=,, -... ._",--
compliance with applicable laws and regulations. Because of inherent limitations in any internal control
structure, errors, irregularities, or instances of noncompliance 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,
For the purpose of this report, we have classified the significant internal control structure policies and
procedures used in administering federal financial assistance programs in the following categories:
Internal Accountin¡! Controls
. Cash receipts
. Cash disbursements
. Accounts payable
. Claims and disbursing
. Billings/revenues
. Payroll
. Journal entries/general ledger
. Property and equipment
. Grants
CONTROLS USED IN ADMINISTERING FEDERAL PROGRAMS
General Reauirements
. Political activity (Hatch Act and Intergovernmental Personnel Act
of 1970, as amended)
. Davis-Bacon Act
. Civil rights
. Cash management
. Relocation assistance and real property acquisition
. Federal financial reports
. Allowable costs/cost principles
. Drug-free Workplace Act
. Administrative requirements
Soecific Reauirements
. Types of services
. Eligibility
. Matching, level of effort and/or earmarking
. Reporting
. Cost allocation
. Monitoring sub recipients
. Special tests and provisions. CFDA Number 14.218
. Special tests and provisions related to Office of Criminal
Justice Planning Grants
. Special tests and provisions related to State Local Transportation
Partnership Program contracts
Claims for Advances and Reimbursements
Amounts Claimed or Used for Matching
.9.
"--,. '"","'"'~,,=, _.'c,_., ,c=-,' ','-"",-,--"""',""_',,,"'k'--' .".",.-"
For all of the internal control structure categories listed above, we obtained an understanding of the
design of relevant policies and procedures and determined whcther they have been placed in operation,
and we assessed control risk.
During the year ended June 30, 1994, the City of Chula Vista, California, expended 96% of its total
federal financial assistance under its major federal financial assistance program.
We performed tests of controls, as required by OMB Circulaf A-128, to evaluate the effectiveness of
the design aCId operation of internal control structure policies and procedures that we considered
relevant to preventing or detecting material noncompliance with specific requirements, general
requirements, and requirements governing claims for advances and reimbursements and amounts
claimed Of used for matching that are applicable to the City's major federal financial assistance
programs, which are identified in the accompanying Schedule of Federal Financial Assistance, Our
procedures were less in scope than would be necessaty to render an opinion on these internal control
structure policies and procedures, Accordingly, we do not express such an opinion.
Our consideration of the internal control structure policies and procedures used in administering federal
financial assistance would not necessarily disclose all matters in the internal control structure that might
constitute material weaknesses undcr standards established by the American Institute of Certified Public
Accountants, A material weakness is a condition in which the design or operation of one or more of the
internal control structure elements does not reduce to a relatively low level the risk that noncompliance
with laws and regulations that would be material to a federal financial assistance program may occur
and not be detected within a timely period by employees in the normal course of performing their
assigned functions, We noted no matters involving the internal control structure used in administering
federal financial assistance programs and its operations that we consider to be material weaknesses as
defined above.
We also noted matters involving the intemal control structure and its operation based on our audit of
the general purpose financial statements which we reported to management of the City ofChula Vista,
California, in a report dated October 13, 1994,
This report is intended solely for the information of the City Council and management of the City of
Chula Vista, California and officials of the federal and state grantor agencies, However, this report is a
matter of public record and its distribution is not limited,
~ .. ~ N-P
October 13, 1994
- 10 -
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Deloitte &
Touche LLP
0 Suite 1900 Telephone: (619) 232,6500
701 "B" Street In Telex: 4995722
San Diego. California 92101.B198 Facsimile (619) 237-1755
INDEPENDENT AUDITo;.~S' REPORT ON COMPLIANCE WITH THE GENERAL
REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE
City Council
City ofChula Vista, California:
We have audited the general purpose financial statements of the City ofChula Vista, California as of and for
the year ended June 30, 1994, and have issued our report thereon dated October 13, 1994, We have also
audited City of Chula Vista, California's compliance applicable to requifements of major federal financial
assistance pfograms and have issued our report thereon dated October 13, 1994,
We have applied procedures to test City of Chula Vista, California's compliance with the following
requirements applicable to its federal financial assistance programs, which are identified in the Schedule of
Federal Financial Assistance, for the year ended June 30, 1994:
General Reauirements
. Political activity (Hatch Act and Intergovernmental Personnel Act
of 1970, as amended)
. Davis-Bacon Act
. Civil rights
. Cash management
. Relocation assistance and real property acquisition
. Federal financial reports
. Allowable costs/cost principles
. Drug-free Workplace Act
. Administrative requirements
Our procedures were limited to the applicable procedures described in the Office of Management and
Budget's Compliance Suoplement for Sim!le Audits of State and Local Governments, Our procedures were
substantially less in scope than an audit, the objective of which is the expression of an opinion on City of
Chula Vista, California's compliance with the requirements listed in the preceding paragraph. Accordingly,
we do not express such an opinion,
¡
;, Deloltte Touche
Tohmatsu
International
- II -
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With respect to the items tested, the results of those procedures disclosed no material instances of
noncompliance with the requirements listed in the second paragraph of this report, With respect to items not
tested, nothing came to our attention that caused us to believe that the City of Chula Vista, California had not
complied, in all material respects, with those requirements,
We also noted matters involving compliance with laws and regulations related to federal financial assistance
which we reported to the City of Chula Vista, California management in our report dated October 13, 1994
on specific compliance for nonmajor program transactions,
Ths report is intended for the information of the City Council and management of the City of Chula Vista,
CaJifonúa, and officials of the federal and state grantor agencies. However, this report is a matter of public
record and its distribution is not limited.
~r~~p
October 13, 1994
- 12 -
~ .
"
Deloitte &
Touche LLP
~\. SUl1e1900 Telephone: (619) 232,6500
~ 701 "8" Street In Telex: 4995722
San Diego. California 921 01-8198 Facsimile 1619) 237.1755
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH SPECIFIC
REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE
PROGRAMS
City Council
City of Chula Vista, California:
We have audited the general purpose financial statements of the City of Chula Vista, California as of and for
the year ended June 30, 1994 and have issued our report thereon dated October 13, 1994,
We have also audited City of Chula Vista, California's compliance with the requirements governing types of
services allowed or unallowed; eligibility; matching, level of effort, and/or earmarking; reporting; cost
allocation; monitoring subrecipients; special tests and provisions related to the approval of the Request for
Release of Funds (RROF); claims for advances and reimbursements and amounts claimed or used for
matching that are applicable to its major federal financial assistance program, which is identified in the
i accompanying Schedule of Federal Financial Assistance, for the year ended June 30, 1994, The management
of the City ofChula Vista, California is responsible for City ofChula Vista, California's compliance with
those requirements, Our responsibility is to express an opinion on compliance with those requirements based
on our audit.
We conducted our audit of compliance with these requirements in accordance with generally accepted
auditing standards, Government Auditin¡¡ Standards, issued by the Comptroller General of the United States,
and Office of Management and Budget (OMB) Circular A-128, Audits of State and Local Governments,
Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable
assurance about whether material noncompliance with the requirements referred to above occurred, An audit
includes examining, on a test basis, evidence about City of Chula Vista, California's compliance with those
requirements. We believe that our audit provides a reasonable basis for our opinion,
The results of our audit procedures disclosed immaterial instances of noncompliance with the requirements
referred to above, which are described in the accompanying Schedule of Findings and Questioned Costs. We
considered these instances of noncompliance in forming our opinion on compliance, which is expressed in the
following paragraph.
Delolttø Touche
Tohmatsu
International
- 13-
.. ,-<.- , -- .' ,,-,,~ '----=~,....:-, ,-, --'~",..."".
In our opinion, the City ofChula Vista, California complied, in all material respects, with the requirements
governing types of services allowed or unallowed; eligibility; matching, level of effort, and/or earmarking,
cost allocation; monitoring subrecipients; special tests and provisions related to the approval of the RROF;
claims for advances and reimbursements and amounts claimed or used for matching that are applicable to its
major federal financial assistance program for the yeaf ended June 30, 1994.
This report is intended for the information of the City Council and management of the City ofChula Vista,
California, and officials ')fthe federal and state grantor agencies, HowF,ver, this report is a matter of public
record and its distribut;on is not limited.
~ tY ~ .t.¿..t'
October 13, 1994
,
ì I
I
- 14.
',--- '-~------_'_".'-""-"-' ----", ,,_. ,_.,..
Deloitte &
Touche UP
Ö Suite 1900 Telephone (619) 232.6500
701 "B" Street In Telex: 4995722
San Diego. California 92101 -8198 Facsimile: 16191237.1755
INDEPENDENT AUDITORS' REP(')RT ON COMPLIANCE WITH REQUIRE~ENTS
APPLICABLE TO NON MAJOR F¿DERAL FINANCIAL ASSISTANCE PROGRAM
TRANSACTIONS
City Council
City ofChula Vista, California:
We have audited the general purpose financial statements of the City ofChula Vista, California as of and for
the year ended June 30, 1994, and have issued our report thereon dated October 13, 1994, We have also
audited the City of Chula Vista, California's compliance applicable to requirements of its major federal
financial assistance program and applied pfocedures to test compliance with general requirements applicable
to federal financial assistance programs and have issued our reports thereon dated October 13, 1994,
In connection with our audit of the 1994 general purpose financial statements of the City ofChula Vista,
California and with our consideration of the City ofChula Vista, California's control structure used to
administer federal financial assistance programs and assessment of control risk, as required by Office of
Management and Budget Circular A-128, Audits of State and Local Governments, we did not select for
testing any transactions applicable to nonmajor federal financial assistance programs for the year ended
June 30, 1994.
Nothing came to our attention during our audit that caused us to believe that the City of Chula Vista,
California had not complied, in all material respects, \\;th the requirements governing types of services
allowed or unallowed; eligibility; matching, level of effort and/or earmarking requirements; reporting; cost
allocation; monitoring subrecipients; claims for advances and reimbursements and amounts claimed or used
for matching; that are applicable to nonmajor federal financial assistance programs.
This report is intended for the information of the City Council and management of the City ofChula Vista,
California and officials of the federal and state grantor agencies, However, this report is a maUer of public
record and its distribution is not limited.
, ~;- ~ .1-..,
October 13, 1994
Deloltte Touche
Tohmatsu
Intarnatlonal
- 15 -
~"'.....",-r , . '..-.. ..' --..,- -- " "..,..,
CITY OF CHULA VISTA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30,1994
Finding/Noncompliance Questioned Cost
I. Community Develooment Block Grant - \-fant # B-93-MC-06-0540 CFDA #14,218
Paragraph 40(a)(2) of the Common Rule requires the City to obtain performance N/A
reports from subrecipients that include:
a) a comparison of actual accomplishments to objectives
established for the period (quantified wherever possible);
b) reasons why any established objectives were not met;
c) other pertinent infonnation including analysis and
explanation of cost overruns or high unit costs.
Through a review of monitoring files of six subrecipients, selected from a
total of twenty -eight subrecipients, it was noted that quarterly perfonnance
reports were not filed by three of the subrecipients of the three subrecipients
that filed a perfonnance report, some of the requested infonnation was not
included, No cost overruns or high unit costs came to our attention from
reviewing these monitoring files. The effect of this finding is that the City
did not comply with Common Rule requirements for monitoring subrecipients,
This finding was reported in the Single Audits report of the fiscal years ended
June 30, 1992 and 1993. As disclosed in the Status of Prior Year Findings and Questioned
Costs, this has been included as a repeat finding in this report,
Files have been reviewed in which findings were made regarding quarterly
reports and the following action to correct these findings will occur:
Commllnity Development: Staffwill request all missing quarterly reports,
review them for completeness and place them in the file.
Additionally, all files will be reviewed for missing required infonnation
and such infonnation will be requested from the subrecipients. All
perfonnance reports will then be reviewed for completeness and placed
in the subrecipients' files.
According to the Code of Federal Regulations (24 CFR 570.501), the N/A
City is required to monitor subrecipient perfonnance reports, including
reimbursement claims,
- 16.
,.'-',. -.-.--., "'-,-".~"
,-----,--_~,.Cn .=~~" ~.--. ~...
Finding/Noncompliance Questioned Cost
Community Develooment Block Grant - Grant # B-93.MC-06-O540' CFDA #14.218
ì
I
Through our review of monitoring files of six subrecipients, selected N/A
from a total oftwenty~ight subrecipients, we noted subrecipients
consistently submitted reimbursement requests without including invoices,
receipts, and other relevant documentation, Per the grantee agr ..ements,
it is required that subrecipients submit invoices, receipts, billings, etc. with
their requests for reimbursement. The effect of this finding is that the City
is not complying with its policy of reviewing supporting documentation
prior to reimbursing subrecipient expenditUres and, therefore, may be
reimbursing subrecipients for inappropriate expenditUres.
This finding was first reported in the Single Audit reports of the fiscal years ended
June 30, 1992 and 1993. As disclosed in the Status of Prior Year Findings
and Questioned Costs, this has been included as a repeat finding in this report.
Grantee's Resoonse: Files have been reviewed in which findings were made and
the following action to correct these findings will occur:
Required supporting documents (payroll reports, receipts) will be requested from
subrecipients. This information will be reviewed for completeness and placed in
corresponding file.
Communitv Develooment Block Grant - Grant #B-93.MC-06.0540' CFDA #14 218
Time reports for staff time allocated to a federally funded project should be N/A
turned in for each pay period and signed by a supervisor, in order to properly
monitor charges to federal grants, It was noted that staff time ofa CDBG
project was not supported by adequate time reporting records. Time sheets
of other employees, causing delays in billing staff time to the funding source
were not submitted in a timely fashion, The effect of this finding is that the
grant may be over or under charged when time reports are not done systematically.
Grantee's Resoonse: The City will take measures to ensure that all staff time
charged to federal program is properly and adequately supported by employee
time sheet. Time reports, detailing hours worked on each CDBG project, will be
required and enforced for each employee for each pay period,
Communitv Develooment Block Grant - Grant #B93-MC-06.0540' CFDA # 14 218
Through our review of six subrecipient files seleCled from a total oftwenty~ight, N/A
it was noted that three subrecipients did not have a written agreement with the
City, 240 CFR 570.503 requires the City to enter into written agreements with its
subrecipients that meet certain criteria before disbursing funds to the subrecipients.
- 17-
Finding/Noncompliance Questioned Cost
Communitv Develooment Block Grant - Grant #B93-MC-O6.0540' CFDA # 14.218
Grantee's Response: This same finding was made in a recent HUD Program
Monitoring Report dated July 28, 1994, Before that time, the City believed that
written agreements were not required for "City" operated programs. That is,
programs funded by CDBG and administered through City staff,
However, HUD indicated that written agreements were required for such programs
just as any other sub recipient of the City, HUD instructed the City to execute
FY 1994-95 written agreements with these organizations, The required agreements
have been subsequently made, HUD cleared the City in regard to these findings
in a letter dated October 3, 1994,
!
- 18-
."-,
CITY OF CHULA VISTA
STATUS OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30,1994
Finding/Noncompliance Questioned Cost
CommunitY Development Block Grant - Grant # B-92-MC-06-0540' CFDA #14.218
Paragraph 40(a)(2) of the Common Rule requires the City to obtain performance N/A
repons ITom subrecipients that include:
a) a comparison of actual accomplislunents to objectives
~ established for the period (quantified wherever possible);
b) reasons why any established objectives were not met;
î
i c) other peninent information including analysis and
4 explanation of cost overruns or high unit costs,
.¡
\
J
¡ Through a review of monitoring files of six subrecipients, selected ITom a
;:
total of twenty-five subrecipients, it was noted that infonnation relating to
the comparison of the subgrantees' accomplislunents to objectives, and where
applicable, reasons for not meeting established objectives, were not
properly included in subrecipients' perfonnance reporu submitted to the City,
No cost overruns or high unit costs came to our attention from reviewing these
monitoring files, The effect of this finding is that the City did not comply
with Common Rule requirements for monitoring sub recipients.
This finding was reponed in the Single Audits repon of the fiscal year ended
June 30, 1992, As disclosed in the Status of Prior Year Findings and Questioned
Costs, this has been included as a repeat finding in this repon,
Resolution
In the current year, we read six subrecipient files selected ITOm a total of
twenty eight and noted that three subrecipients did not submit quanerly reporu,
and the other three that did submit did not include all the required infonnation in
the repons, Therefore, this finding has been repeated as a current year finding.
See Current Year Findings.
CommunitY Develooment Block Grant - Grant # B-92-MC-06-0540' CFDA #14218
According to the Code of Federal Regulations (24 CFR 570.501), the N/A
City is required to monitor subrecipient perfonnance reporu, including
reimbursement claims.
- 19 -
-
- -.., ,--
Finding/Noncompliance Questioned Cost
Communitv Development Block Grant - Grant # B-92-MC-06-0540' CFDA #14,218
We read files of six subrecipients, selected from a total N/A
of twenty-five subrecipient, we noted subrecipients
remitted reimbursement requests without including invoices,
receipts, and other relevant documentation, Per the grantee agreements,
it is required that subrecipients submit invoices, receipts, billings, etc, with
their requests for reimbursement. The effect of this finding is that the City
is not complying with its policy of reviewing supporting documentation
prior to reimbursing subrecipient expenditures and, therefore, may be
reimbursing subrecipients for inappropriate expenditures.
This finding was first reported in the Single Audit reports of the fiscal year ended
June 30, 1992, As disclosed in the Status of Prior Year Findings
and Questioned Costs, this has been included as a repeat finding in this report,
Resolution: In the current year, we read six subrecipient files selected from
a total of twenty eight and noted that three subrecipients did not include
supporting documents, such as receipts, invoices, payroll journals, etc. along
I with their reimbursement claim as required by the agreement with the
subrecipients, Therefore, this finding has been repeated as a current year
finding. See Current Year Findings.
CommunitY Develooment Block Grant - Grant # B-92-MC-06-0540' CFDA #14.218
¡ According to the Code of Federal Regulations (24 CFR 570,50 I), the N/A
City is required to monitor subrecipient performance,
i
Through our review of monitoring files of six subrecipients, selected
from a total of twenty-five sub recipients, we noted subrecipients
consistently submitted reimbursement requests without including invoices,
receipts, and other relevant documentation. Per the grantee agreements,
it is required that subrecipients submit invoices, receipts, billings, etc. with .
their requests for reimbursement. The effect of this finding is that the City
is not complying with its policy of reviewing supporting documentation
prior to reimbursing subrecipient expenditures and, therefore, may be
reimbursing subrecipients for inappropriate expenditures.
This finding was first reported in the Single Audit reports of the fiscal year ended
June 30, 1992, As disclosed in the Status of Prior Year Findings
and Questioned Costs, this has been included as a repeat finding in this report.
Resolution: In the current year, we read six subrecipient files selected iTom
a total of twenty eight and noted that three subrecipients did not submit
quarterly reports. Therefore, this finding has been repeated as a current year
finding. See Current Year Findings.
- 20-
Finding/Noncompliance Questioned Cost
Grantee's ReSDonse: In October 1993, the Department of Community
Development assigned the duty of monitoring quarterly reports to the
Administrative Analyst II to promptly review the quarterly reports, date
and sign his Of her name. In the event that the quarterly report is not
submitted by the due date, the Analyst will contact the subrecipient in order
to assure that the report is filed, Any discrepancies between the contract and
the performance report will be noted and investigated.
Community DeveloDment Block Grant - Grant # B-92-MC-O6-O540' CFDA #14,218
Time reports for staff time allocated to a federally funded project should be N/A
turned in for each pay period and signed by a supervisor, in order to properly
monitor charges to federal grants, It was noted that staff time of a CDBG
project was not supported by adequate time reporting records, Time sheets were
not submitted in a timely fashion and time worked over a six month period was
aggregated into one time report. The effect of this finding is that the grant may be
over or under charged when time reports are not done systematically.
Resolution: In the current year, we noted that one employee was missing two time
sheets and that employees did not always turn in their time sheets in a timely
manner, causing delay in billing staff time to the funding source. Therefore, these
findings have been repeated as current year findings, See Current Year Findings.
Communitv Development Block Grant - Section 108 Loan' CFDA #14 218
Staff time charged to CDBG projects should be calculated using the payrate $2,300
and full cost recovery rate (for indirect costs) in effect in cach fiscal year for
which charges are allocated to the project. It was noted that staff time of two
Public Wofks employees which was allocated to CDBG projects was calculated
incorrectly, Staff time since the inception of the project (in a prior year) was
allocated to the fiscal year ended June 30, 1993, using 1993 rates to calculate
all years' allocations. The effect was an overcharge ofapproximately $2,300
of staff time to the project.
Resolution
In the current year, we did not note such finding.
i
!
I - 21 -
,~~"'-~-""-, ,."
Deloitte &
i Touche LLP
I 0 Suite 1900 Telephone: (6191232.6500
I 701 "B" Street ITT Telex: 4995722
¡ San Diego. California 92101.8198 Facsimile: {6191237'1755
I
i
INDEPENDENT AUDITORS' REPORT ON SUPPLEMENTAL SCHEDULES
City Council
City of Chula Vista, California:
Our audits were conducted for the purpose of forming an opinion on the general purpose financial
statements taken as a whole, The supplemental schedules listed in the table of contents are presented
for the purpose of additional analysis and are not a required pan of the general purpose financial
statements. These schedules are the responsibility of the City ofChula Vista, California's management
The information in these schedules have been subjected to the auditing procedures applied in OUf audits
of the general purpose financial statements and, in OUf opinion, are fairly stated, in all material respects.
in relation to the general purpose financial statements taken as a whole.
~ r ~ J.f¿-I'
: October 13, 1994
I
!
Deloltte Touche
Tohmatsu
International
- 22 -
~-- '-----'--",,- -- -
1 CITY OF CHULA VISTA
U.S. DEPT. OF JUSTICE J.U.D.G.E. GRANT
(JURISDICTIONS UNIFIED BY DRUG GANG ENFORCEMENT)
Program Title: Gang Drug Offender
Pass-Through Grantee: County of San Diego
Federal CFDA No,: 16.540
S.ate OCJP Grant No,: DC93010370
Grant Period: 07/01193 - 06/30/94
SUPPLEMENTAL SCHEDULE OF REVENUES AND EXPENDITURES
YEAR ENDED JUNE 30, 1994
OCJP City Match Total
REVENUES:
Total received $51,391 L $51,391
EXPENDITURES:
Personnel services 50,672 50,672
Employee benefits 719 719
Travel - - -
Total expenditures 51,391 - 51,391
EXPENDITURES OVER REVENUES $. $ - $-
GRANT AWARD BUDGET $51,391 $ -
.
- 23.
- <e.O..'.' ----'---_.'- .,--
CITY OF CHULA VISTA
SCHEDULE OF STATE LOCAL TRANSPORTATION PARTNERSHIP PROGRAM (SLTPP)
VEAR ENDED JUNE 30, 1994
Progrlm Delerred Vllr Ended June 30, 1894 Deflrred
P..s-through or Awlrd Recelvlble It Revenue Expenditures Racllvlble at
Grontor's Number Amount July 1, 1883 Recognized Disburoed June 30, 1994
~
ellilornl. DeOirtmenl of Trlnsoortltlon ." -
kW!1;
Broadway Street lmprovemenll,
Fte! Sir"" SB92 5203 004 $ 509,511 $(219,972) $509,511 $289,539
Otay Valley Road, 805 " Eut
Nirvana SB92 5203 042 ~ - - -
Çjœ[!.1; ~ (219,972) 509,511 ~
4111 Av",uo, Kiniwalte Lane Ie Del Rey
High School SB93 5203026 36,906 (36,906) 36,906
Broadway, "L" St. to Napl.. SL SB93 5203 024 ~ - ~ ~
~ (36,906) ~ ~
T"al $1,993,262 $(256,878) $890,027 $633,149 $
.
- 24-
f¡
'1
Deloitte &
Touche LLP REDEVELOPMENT AGENCY
Item #4
0 September 5, 1995
HOME MORTGAGE REVENUE BONDS,
1983 SERIES A
PROGRAM OF THE CHULA VISTA-
EL DORADO-LiVERMORE-MENLO PARK
HOUSING FINANCE AGENCY
Financial Statements and Supplemental Schedule
For the Years Ended June 30,1994 and 1993 and
Independent Auditors' Compilation Report
Deloittø Touche
Tohmatsu
Inblmational
HOME MORTGAGE REVENUE BONDS, 1983 SERIES A,
PROGRAM OF THE CHULA VISTA-EL DORADO-
LIVERMORE-MENLO PARK HOUSING FINANCE AGENCY
TABLE OF CONTENTS
Page
Independent Accountants' Compilation Report 1
Financial Statements:
Balance Sheets atJune 30, 1994 and 1993 2
Statements of Revenues, Expenses and Changes in Retained Earnings
for the years ended June 3O, 1994 and 1993 3
Statements of Cash Flows for the years ended June 30, 1994 and 1993 4
Notes to Financial Statements - Years ended June 30, 1994 and 1993 5-6
Supplemental Schedule of Cash Flows for the year ended June 30,1994 7
.. '-
--
Deloitte &
Touche LLP
0 Suite 1900 Telephone: (619) 232-6500
701 "B" Street In Telex: 4995722
San Diego. California 92101-8198 Facsimile: (619)237-1755
INDEPENDENT ACCOUNTANTS' COMPILATION REPORT
To the Board of Directors, Chura Vista-El Dorado-Livermore-
Menlo Park Housing Finance Agency:
We have compiled the accompanying balance sheets, statements of revenues, expenses and changes in
retained earnings and statements of cash flows and supplemental schedule of the Home Mortgage
Revenue Bonds, 1983 Series A., Program of the Chula Vista-El Dorado-Livermore-Menlo Park
Housing Finance Agency, as listed in the foregoing table of contents as ofIune 30, 1994 and 1993 and
for the years then ended, in accordance with standards established by the American Institute of Certified
Public Accountants.
A compilation is limited to presenting, in the form of financial statements, information that is the
representation of the Chula Vista-El Dorado-Livermore- Menlo Park Housing Finance Agency. We
have not audited or reviewed the accompanying balance sheets, statements of revenues, expenses and
changes in retained earnings and statements of cash flows and supplemental schedule and, accordingly,
do not express an opinion or any other form of assurance on them.
~,..~ ,t.¿;.~
October 13, 1994
DeloltteTouche
Tohmatsu - 1 -
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.....i
HOME MORTGAGE REVENUE BONDS, 1983 SERIES A,
PROGRAM OF THE CHULA VISTA-EL DORADO-
LlVERMORE.MENLO PARK HOUSING FINANCE AGENCY
BALANCE SHEETS
JUNE 30, 1994 AND 1993
(See Independent Accountants' Compilation Report)
ASSETS 1994 1993
Investment securities $ 96,005 $158,648
Mortgage loans receivable 196,350 392,501
Accrued interest receivable - mortgage loans 2,238 2,834
Accrued interest receivable - investment securities 80 201
Bond issuance costs (net of amortization of $636,764 and $628,084) ~ 10,850
TOTAL $296,843 $565,034
LIABILITIES AND RETAINED EARNINGS
LIABILITIES:
Home mortgage revenue bonds $ 70,000 $350,000
Accrued interest payable - bonds 613 ~
Total liabilities 70,613 353,063
RETAINED EARNINGS 226,230 211,971
TOTAL $296,843 $565,034
See notes to financial statements.
-2-
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I
I
HOME MORTGAGE REVENUE BONDS, 1983 SERIES A,
PROGRAM OF THE CHULA VISTA-EL DORADO-
LIVERMORE-MENLO PARK HOUSING FINANCE AGENCY
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
YEARS ENDED JUNE 30,1994 AND 1993
(See Independent Accountants' Compilation Report)
1994 1993
OPERATING REVENUES:
Interest on mortgage loans receivable $ 30,506 $ 72,361
OPERATING EXPENSES:
Interest on bonds 20,650 93,928
Amortization of bond issuance costs 8,680 32,263
Fees and other operating expenses 4,838 17,523
Total operating expenses 34,169 143,714
OPERATING LOSS (3,663) (71,353)
NON-OPERATING REVENUES:
Interest on invesbnent securities 17,922 39,373
NET INCOME (LOSS) 14,259 (31,980)
RETAINED EARNINGS, BEGINNING OF YEAR 211,971 243,951
RETAINED EARNINGS, END OF YEAR $226,230 $211,971
See notes to financial statements,
-3-
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I
I
HOME MORTGAGE REVENUE BONDS, 1983 SERIES A,
PROGRAM OF THE CHULA VISTA-EL DORADO-
LIVERMORE-MENLO PARK HOUSING FINANCE AGENCY
STATEMENTS OF CASH FLOWS
YEARS ENDED JUNE 30,1994 AND 1993
(See Independent Accountants' Compilation Report)
1994 1993
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating loss $ (3,663) $ (11,353)
Adjustments to reconcile operating loss
to net cash provided by operating activities:
Amortization of bond issuance costs 8,680 32,263
Decrease in accrued interest receivable - mortgage loans 596 1,212
Decrease in accrued interest payable - bonds (2,450) (9,081)
Mortgage loans principal repayments 196,151 192,601
Net cash provided by operating activities 199,314 751,642
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES:
Retirement of debt (280,000) (1,040,000)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received on investment securities 18,043 39,248
Sales and maturity of investment securities 1,11 7,074 3,132,948
Purchase of investment securities (1,054,431) (2,883,838)
Net cash provided by investing activities 80,686 288,358
NET CHANGE IN CASH - -
CASH AT BEGINNING OF YEAR -
CASH AT END OF YEAR $ - $ -
See notes to financial statements.
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I
HOME MORTGAGE REVENUE BONDS, 1983 SERIES A,
PROGRAM OF THE CHULA VISTA-ELDORADO-
LIVERMORE-MENLO PARK HOUSING FINANCE AGENCY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED JUNE 30,1994 AND 1993
(See Independent Accountants' Compilation Report)
A. AUTIIORIZING LEGISLATION AND PROGRAM PURPOSE
The Home Mortgage Revenue Bonds, 1983 Series A ("Bonds"), are issued under the provisions of and
in full compliance with the constitution and laws of the State of California, particularly Part 5 of
Division 31 of the Health and Safety Code of the State of California, in order to provide financing of
decent, safe, and sanitaIy housing for low and moderate income families. The Bonds are limited
obligations of the Chula Vista-EI Dorado-LIvermore-Menlo Park Housing Finance Agency (the
"Agency") and accordingly, do not constitute a debt of the Agency or any political subdivision thereof.
B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting - The financial statements are presented using the accrual basis of accounting,
Revenues are recognized when they are earned and expenses are recognized when they are incurred.
Bond Issuance Costs - Bond issuance costs are amortized over the term of the obligations using the
straight-line method, unless redeemed prior to maturity in which case the related bond issuance costs
are fully amortized in the year of redemption.
Income Taxes - The Agency has a tax-exempt status and therefore has not provided for any income
taxes in the financial statements.
C. INVESTMENT SECURmES
Investment securities at June 30, 1994 and 1993 consisted of$96,O05 and $158,648, respectively, in
an investment contract with a financial institution at rates fixed through the maturity of the Bonds (see
Note E). The securities, which can be redeemed at par in accordance with Articles I and vn of the
Trust Indenture, are considered short-term because of the special redemption features of the Bonds,
D. MORTGAGE LOANS RECEIVABLE
Mortgage loans of the program bear an interest rate of 10.9% per annum. At June 30, 1994 and 1993,
there were no mortgage loans delinquent in excess of ninety days. No provision for possible loan
losses has been provided because all loans are insured by private mortgage insurance and the estimated
value of underlying collateral exceeds the mortgage amount, interest due and any expected foreclosure
costs.
,
-
- 5 -
-
!
E. HOME MORTGAGE REVENUE BONDS
The Bonds were issued December 1, 1983 with interest payable semiannually, on June 1 and
December 1. The Bonds consist of the following:
Term Bonds, 10.5%, due December 1, 2016, subject
to mandatory sinking fund redemption on June 1,
2004 through December 1, 2016 $ 70000
Future debt service requirements at June 30, 1994 are as follows:
Year ending June 30 Principal interest Total
1995 $ 7,350 $ 7,350
1996 7,350 7,350
1997 7,350 7,350
1998 7,350 7,350
1999 7,350 7,350
Thereafter $70,000 124,600 194,600
Total $70,000 $161,350 $231,350
In accordance with the Trust Indenture, $260,000 of Bonds and the related accrued interest Were
redeemed on December 1, 1993. An additional $20,000 and related interest were redeemed on June I,
1994. The amounts called were allocated among the various bond lots as specified in the indenture
agreement. Also, as specified in the Trust Indenture, Bonds maturing on or after June 1, 1994 are
subject to redemption, at the option of the Agency, in whole, at a price equal to the principal amount,
any interest accrued thereon and a redemption premium.
F. ASSET RESTRICTIONS
AIl investment securities are held by a trustee and are restricted as to use as required by the Trust
Indenture. Such restricted assets are included in various funds as established by the Trust Indenture.
Such funds include the Revenue Fund, Principal Debt Reserve Fund, Operating Fund, Interest Fund,
Debt Service Reserve Fund, and Prior Redemption Fund.
******
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JOINT AGENCY/CITY COUNCIL AGENDA STATEMENT Item S
Meeting Date ~
ITEM TITI.E: PUBUC HEARING: Resolution ¿ð'óJ,.1I Approving an addendum to the
1993 Update of the Public Facili ies Development Impact Fee, with no
change in the fee amount
SUBMITTED BY: Deputy City Manager Krempl ~
Senior Managemr:nt Assistant Young7'
()¿+
REVIEWED BY: City Manager t" (4/5ths Vote: Yes- N°.1O
At the meeting of May 23,1995, Council determined that the El Dorado office building, 315 Fourth
Avenue in Chula Vista---a facility proximate to the Civic Center and capable of meeting the City's
interim office space needs---is currently available for pufchase at a reasonable price.
Since the Public Facilities Development Impact Fee (Public Facilities DIF) includes a subproject to
construct a Civic Center Annex, and this purchase would not be inconsistent with that goal, Council
directed staff to pursue the city purchase of that building as part of the Civic Center DIF.
This purchase is anticipated to be Phase I in the implementation of the Civic Center Master Plan.
The final annex needs will be accomplished either by selling this property and building the current
master plan annex building or by adding a smaller second phase to provide the same total space.
This Phase I project is not expected to affect the end cost of the project, and as a result, the
proposed addendum to the Public Facilities DIF will not impact the level of fees assessed. The
purchase itself will be accomplished via an item on tonight's joint City/Agency agenda.
RECOMMENDATION: That Council approve the resolution making an addendum to the 1993
Update of the Public Facilities Development Impact Fee.
BOARD/COMMISSION RECOMMENDATIONS: N/A
BACKGROUND
Chula Vista's Civic Center Master Plan was completed in 1989 and ratified by the City Council.
Among the general provisions of this plan are:
. Acquisition of property along F Stfeet fOf parking lot expansion (underway) and eventual
construction of a three-level pafking garage.
, Office space expansions to the existing City Hall and Public SeIVices buildings.
, Construction of a new Civic Center Annex building (with 23,045 gross square feet of office
space) on the site of the current Community Development and Legislative offices. This two-
story facility would also include underground parking for Police vehicles.
, Expansion, landscaping and access/circulation improvements to public parking and plaza
areas.
This master plan was later incorporated into the City's Public Facilities DIF program (via
Ordinances 2320, 2432 and 2554), thus assessing the cost of growth-related improvements to the new
development which is necessitating those improvements. In cases like the $20 million Civic Center
project, where it was determined that the city had an existing space deficiency, a percentage of the
.5 -I
Item~, Page 2
Meeting Date 9/5/95
cost is to be borne by the general fund. For the Civic Center and Parking expansion, respectively,
these shares are 9.4% and 25%.
DISCUSSION
The EI Dorado Office Building (with 15,740 gross square feet of office space) was purchased by the
Chula Vista Redevelopment Agency in 1990 for the amount of $1,720,000.
Although the building's value had been estimated at $1.4 to $1.6 million, a recent request for
proposals for the sale of the building did not result in any bids in excess of $1,055,000. Staff
subsequently obtained an appraisal on the building which resulted in a value of $1,175,000. It is this
value that is recommended for the tenns of the sale.
At this time, it is anticipated that the City will eventually complete the Civic Center according to
master plan guidelincs. The El Dorado building would serve as Phase I Civic Center Annex until
such time (estimated at 5-7 years) as the building can be sold in a better economic climate. With
the sale of this asset, the city would then proceed with the original annex plans.
To enable this pufchase to take place, staffrecommends the attached addendum to the Civic Center
"Needed Improvements" section of the Public Facilities DIP. This addendum would provide for the
purchase of the building to serve as the Civic Center Annex for an interim period. Although no fee
updates are recommended at this time, this addendum would anticipate a comprehensive update of
the Civic Center Mastef Plan to provide for any other necessary improvements or fee updates and
to incorporate the actual layout of the El Dorado building into the City's long-tenn space needs
forecast. Such an update is beyond the scope or timing of this report.
Notice of this item was published in the Staf-News on June 10 and June 14, with additional notice
mailed to representatives of EastLake, McMillin, Baldwin and the Construction Industry Federation.
Staff received two lettefs of concern (attached) from EastLake and McMillin. Staff also met with
the developers on June 26 and August 17. In response to their questions an appraisal was conducted
and the purchase is consistent with it. They also asked why City Hall is being expanded in this
economic climate. The response was that we are now expanding but acknowledging the current city
occupancy of the building and buying time (deferring future expansion needs) by retaining the
building until the economy improves and the building can be marketed at that time at a higher price.
Third, it was explained that the DIF program will not be amended with regard to Otay Ranch until
subsequent to annexation. In terms of the SPA plan, the current PFDIF amount will be assumed.
Finally, this purchase will not jeopardize the DIF project needs. Almost $700,000 of the total $1.1
million purchase can only be used for Civic Center Improvements. Further a 5-year DIF
expenditure plan is being developed. It does not appear over the next few years that any thresholds
will be a constraint based on Public Facility DIF expenditures. The most cfitical threshold constraint
will likely remain traffic limitations. Once a 5-year forecast for DIF has been updated, it will be
reviewed with the business and development community.
Copies of this report and of the appraisal have also been provided.
S-:L
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Item .5 , Page 3
Meeting Date 9/5/95
FISCAL IMPACT
There is no direct fiscal impact of the recommended DIF update (the sale would be accomplished
via a separate agenda item) and no impact on the level or assessment of DIF fees.
At the time of the 1993 update to the Civic Center DIF, the total cost of the project was calculated
at $15,431,300. Due to certain expectations of future cost savings (e.g. through economies of scale
to be achieved by annexation of Otay Ranch or by implementation of trip reduction measures), the
amount assessed to developers was lowered to $13,113,300. This had the effect of maintaining the
Civic Center DIF charge at the 1991 level.
With this update, staff intends to accomplish the same goal: to update the DIF and the projected
costs for identified needs, but to discount that cost based on future expectations of savings. The
purchase of this building will entail an additional $1,175,000 being spent in combination by the DIF
and the City (bringing the full project cost to $16,606,300. However, staff recommends that the
amount spread to development remain at $13,113,300 (and the fees remain unchanged) based on
the expectation that the City will eventually sell the building, with the proceeds put back toward the
cost of the final annex building.
During the period of this intefim use, the building will be owned by the city as a trustee of the DIF.
The proceeds from an eventual sale would accrue to the DIF, along with any interim rents. If an
update to the Civic Center Master Plan were to incorporate this building as a part of the final
buildout of the Civic Center, the DIF would be updated at that time to reflect the permanent
satisfaction of the space need, to shift any future rental income to the City, and to adjust the total
project cost and spfead of assessments as appropriate.
The terms of the $1,175,000 purchase are anticipated to involve $1,064,550 from available Civic
Center DIF balances and a write-off of $110,450 in Agency debt to the General Fund (equating to
the 90.6% DIF share and 9.4% City shafe). This purchase will be conducted as part of a joint
city/agency meeting.
Due to the lower than expected appraisal, the $1,175,000 pufchase price is $125,000 below the
Agency's revenue estimate from the sale of $1,300,000. With the allocation of fental income to the
DIF rathef than the General Fund, the Genefal Fund would not realize the budgeted estimate of
$131,950 in related revenues for fiscal yeaf 1995-96 (Of similar revenues for subsequent years).
By comparison, if the building would have been sold to the highest cash bidder, the Agency would
have received $1,000,000 ($300,000 below the budgeted estimate), the building would have been let
go during a down market, and neither the General Fund nor the DIF would have received any rental
revenue.
JY:c:\wp51\¡nemos\elddifl3.3
Atlachments:
1. Resolution
2, Existing Civic Center DIF narrative, April 20. 1993
3, Letlers from EastLake and McMillin
5-3
This page blank.
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I
I
I SECTION 4
I PuBLIC FACILITY REQUIREMENTS. COSTS AND DOCUMENTATION
1 This section of the report presents the requirements, costs and supporting documentation for
the nine facilities under consideration. For each facility, the following hems are identified
I and discussed:
+ Existing condition
I + Needed improvements
+ Status of needed improvements
+ Method of apportioning costs
I Pertinent documentation including memoranda, reports, and letters are included for reference
at the end of each facility section.
I
4.1 CIVIC CENTER EXPANSION
I Existin2 Condition
I The existing civic center has for many years successfully accommodated city
administtation offices. However, after the ßÙd-1980's, extensive population growth
I caused a corresponding increase in city staff and, what was once a sizeable facility
to meet the city's needs, is now seriously congested. A survey conducted by Michael
Feerer and Associates as part of the Chula Vista Civic Center Master Plan revealed
I that most staff in the public services building are seriously hindered by space short-
ages, lack of parking, privacy and storage, as well as ('requent noise distractions. The
present facility totals 101,730 square feet with 333 parking spaces.
I Needed Imorovements
I At a council conference on June 22, 1989, site alternative three "The Suburban
Scheme" was selected from the Civic Center Master Plan dated May 8, 1989 as the
design for the new civic center. The facilities, including the police and fue stations,
I will total 162,22S square feet and provide 672 parking spaces. This alternative is
estimated to cost $20,070,480 not including utilities and offsite improvements.
I
.
1993 Public Foci/ilits DIF Updolt
5~S City of Chula Vista
. ~
.
. Status of Needed Imorovements
. Appraisals have been conducted on the propeny under consideration for purchase for
the parking structure. Interim remodels and rental of interim space are ongoing.
. Method of AooortioniDl! Costs
Section 3.4 of the Master Plan for the Chu]a Vista Civic Center identifies a current
. space deficiency exceeding 10 percent. The 1988 staffing levels require 110,910
square feet of civic center space. The city currently provides 101,730 square feet.
This represents a 9,180 square foot deficiency. The civic center master plan clearly
. states that the addition of this square footage is required to meet space needs and
goals even under conditions of no growth.
I The facility cost estimate identifies the cost per square foot for new construction,
minor and extensive remodeling, demolition, furniture, fixtures and equipment.
. Averaging these estimates results in an overall cost of $]28.17 per square foot for
the completed facility. Using this average cost, the City's share (9,180 square feet)
is $1,]76,645. Including the City's share of interim facility rental results in a total
I City share of $1,197,156.
The parking improvements have been separated from the building improvements to
I more accurately account for the existing parking deficiency. According to the master
plan documents, there is a current deficiency of 114 parking spaces. At an average
cost per space of $10,480, the City's share of the parking improvements is
I $1,757,854.
The civic center and parking improvements together total $20,070,480. The City's
I share is $2,955,010. After subtracting the DIF fees collected to date including
interest earned for this facility, new development should fund $15,431,300.
. Adjustment to DIF Share
The Civic Center expansion needs may change becåuse of external events, such as
I the possible Otay Ranch annexation and trip reduction plan being developed by the
City. Given these contingencies, staff is recommending that the fee component be
I reduced to the 1991 level to reflect possible cost reductions stemming from these
events. Therefore, the revised DIF share is $13,113,300.
.
.
.
1993 Public Facilitits DlF Update
)( j-- ~ City of Chula Vista
.
~-"~--"'~:"~.d '" ~ "-'".J,~""""" '.L~~ .
June IS, 1995
Mr. George Kremple
Deputy City Manager
City ofChula Vista
276 Fourth Avenue
Chula Vista, California 91910
Re: Addendum to the 1993 Update of the Public Facilities
Development Impact Fee
Dear George:
I received a message today that the referenced agenda item has been .
withdrawn ITom the June 20, 1995 council meeting agenda. EastLake ~
Development Company has reviewed the packet forwarded to us on June 13,
1995 (Council Agenda Statement and Resolution) and has several concerns ....
regarding the information presented therein. In anticipation that we will be ....
meeting in the near future to discuss the proposed actions, I thought it would fASTLAKE
be of benefit to outline our concerns to you in writing. DMlOPMENT
COMPANY
I. The report states that the current value of the building being purchased
is $1.4 to $1.6 million, yet actual bids for the facility were at a
maximum of$I,055,OOO. Why should the City pay a $379,880
premium over the maximum actual market purchase proposal?
2. In the current economic environment (characterized by City staff
reductions), why would the City expand the City Hall complex?
3. The Otay Ranch Project should be used as justification for an
amendment to the Public Facility DIF Program only after it is annexed
to the City and a complete analysis of its full impact to services is
performed,
4. The Public Facility DIF Program funds a wide range of City service
expansion to overcome existing shortfalls and provide for future
growth. Prior to taking the action being contemplated, an analysis of
other critical needs should occur. Consideration of such an analysis
would hopefully insure that those facilities with the most imminent
need are being provided with the limited DIF funds available.
900 Lane Avenue
Suite 100
5-7 Chula Vista, CA 91914
(619) 421-0127
FAX (619) 421-1830
--.-.."..--- '--'..,
Me, George Kremple
June 15, 1995
Page Two
We remain available to discuss these and other issues relating to the proposed
Public Facility DIF Amendment. If you have any questions, please do not
hesitate to caU me.
Sincerely,
EASTLAKE DEVELOPMENT COMPANY
~
Bruce N. Sloan
Vice President
BNS:sm
cc: Kim Kilkenny, The Baldwin Company
Ken Baumgartner, McMil1in Communities
Copies to:
John Goss
Sid Morris
Jim Thomson
Chris Salomone
Bob Powell
Dawn Herri ng
Teri Enos
Gera 1 d Young
S"rf
JUN 2 7 Iqa~
June 23, 1995 A" McMillin Com¡Yanies
Mr, George Krempl
Deputy City Manager
City of Chula Vista
276 Fourth Avenue
Chula Vista CA 91910-2631
Re: El Dorado Office Building Purchase
Dear Mr. Krempl:
Regarding the proposed El Dorado office building purchase, we offer the following comments:
1. Has the current value ($1.4 to $1.6 million) been verified by an appraisal? It would appear
that the purchase price is too high given the recent high bid of $1,055,000. The City may
not be able to recapture its money when it attempts to resell the property in the future.
2, In light of our recent experience surrounding the issue of the fire facility needs, is spending
Public Facilities DIF money for this purchase a premature expense in relationship to other
priorities? It may be time to prepare a comprehensive list of priorities for spending these
as well as other development impact fees that are collected,
We appreciate you scheduling a meeting to discuss this matter and also requesting that the City
Council continue this item until July 11, 1995.
Sincerely,
CTF/lw
5-9
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,-- '->--'-'--'- --,,--
This page blank.
S -- !b
RESOLUTION NO. /!tPoZg
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING AN ADDENDUM TO THE 1993
UPDATE OF THE PUBLIC FACILITIES DEVELOPMENT
IMPACT FEE, WITH NO CHANGE IN THE FEE AMOUNT
WHEREAS, on April 20, 1993, the City Council approved the
1993 Update of the Public Facilities Development Impact Fee
(hereinafter "Public Facilities DIF") as indicated in document
number C093-075 in the city of Chula Vista; and,
WHEREAS, the Public Facilities DIF includes a subproject
to construct a civic Center Annex; and
WHEREAS, Council determined at the meeting of May 9 that
the EI Dorado office building, 315 Fourth Avenue in Chula Vista---a
facility proximate to the civic Center and capable of meeting the
City's interim office space needs---is currently available for
purchase, and such purchase would not be inconsistent with the goal
of providing said civic Center Annex; and
WHEREAS, the purchase of this building would represent a
unique opportunity to accomplish part of a master plan goal at a
reasonable price and in an innovative manner; and
WHEREAS, adding a new interim component for purchase of
the EI Dorado building to the Needed Improvements section of the
civic Center project of the Public Facilities DIF is not
anticipated to increase the end cost of the project and therefore
not require a change in the development impact fee amount; and
WHEREAS, a more detailed cost analysis is anticipated
following a comprehensive update of the City's civic Center Master
Plan; and
WHEREAS, the City has duly noticed a proposed addendum to
the Public Facilities DIF and met with the area's major developers
to discuss this proposal;
NOW, THEREFORE, BE IT RESOLVED that the Public Facilities
DIF is hereby amended in the following regards only, and as so
amended shall hereinafter be referred to as the "First Amendment to
the 1993 Public Facilities DIF":
The following addendum is added to the Needed Improvements
section of the civic Center Expansion (Section 4.1) component
of the Public Facilities Development Impact Fee:
"This project shall also include purchase of the EI Dorado
Plaza Building, 315 Fourth Avenue in Chula Vista, to serve as
a temporary and interim method of satisfying Civic Center
space demand created by new growth. The civic Center Annex
and other civic Center projects---as originally conceived in
5 - 1/
the civic Center Master Plan---shall remain the ultimate
responsibility of the DIF contributors.
Although this purchase will utilize $1,175,000 of DIF
contributions and an appropriate share paid by the city for
its existing deficiency, this cost is to be netted out through
the City's eventual sale of this building in conjunction with
the final construction of the civic Center Annex. with that
sale, all proceeds would be returned to the DIF fund. As a
result, there is not recommended to be any change in the level
of the fee.
During the term of this building's use, any and all non-city
use of space shall bear fair market rental income which shall
accrue only to the civic Center DIF fund.
Any changes in the final configuration of the civic Center
project, including any other necessary improvements, any fee
updates, or any incorporation of the Phase I improvements as
a part of the final Phase II civic Center configuration shall
be contingent upon an update of the civic Center Master Plan."
Presented by
George Krempl, Deputy City Manager City
JY
c; \wp51 \.eoos\elddifrs. 1
5' -/2
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JOINT REDEVELOPMENT AGENCY/CITY COUNCIL AGENDA STATEMENT
Item ~
Meeting Date 9/5/95
ITEM TITLE: PUBLIC HEARING: SALE OF AGENCY PROPERTY LOCATED AT 315
FOURTH AVENUE WITHIN THE TOWN CENTRE I REDEVELOPMENT
PROJECT AREA TO THE CITY OF CHULA VISTA. CALIFORNIA WITHOUT
PUBLIC BIDDING
AGENCY RESOLUTION 1~5JY APPROVING SALE OF CERTAIN PROPERTY
LOCATED AT 315 FOURTH AVENUE WITHIN THE TOWN CENTRE I
REDEVELOPMENT PROJECT AREA TO THE CITY OF CHULA VISTA,
CALIFORNIA WITHOUT PUBLIC BIDDING, APPROVING PURCHASE AND
SALE AGREEMENT WITH THE CITY OF CHULA VISTA, CALIFORNIA, AND
AUTHORIZING THE CHAIRMAN TO EXECUTE SAME
COUNCIL RESOLUTION /71,:¿t:, APPROVING THE PURCHASE OF CERTAIN
PROPERTY LOCATED AT 315 FOURTH AVENUE WITHIN THE TOWN
CENTRE I REDEVELOPMENT PROJECT AREA FROM THE REDEVELOPMENT
AGENCY, APPROVING A PURCHASE AND SALE AGREEMENT WITH THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA,
AND AUTHORIZING THE MAYOR TO EXECUTE THE SAME
SUBMITTED BY: Community Development Director ( -c, .
REVIEWED BY: Executive Director 6/v 1~
k.{ (4/5ths Vote: Yes - No _XJ
BACKGROUND:
On March 17, 1995, a Request For Proposals was issued for the purchase of Agency property
known as the EI Dorado Plaza Building located at 315 Fourth Avenue. On May 23, 1995, staff
presented a report to the Agency indicating that the three bids received were unacceptable. Staff
recommended that the Agency sell the property to the City. The Redevelopment Agency difected
staff to prepare a purchase and sale agfeement for Agency/Council review and approval pursuant
to terms outlined in the 5/23/95 report (see Attachment A). After review and approval of that
feport by the Redevelopment Agency, staff commissioned an Appraiser to conduct an appraisal
of the buildin9. The Appfaiser concluded that the building's value is $1,175.000. Staff finds the
appraisal acceptable and fecommends that the Agency sell the building to the City for the
appfaised amount.
Staff has prepared the Agency and City Council resolutions and agreement to effectuate the sale
for Council/Agency review and approval. A Grant Deed to tfansfer the property from the Agency
to the City will be prepared, processed administratively, and recorded after the agreement is
executed by all parties.
RECOMMENDATION: that the Redevelopment Agency and City Council adopt the respective
resolutions approving the sale/purchase of the EI Dorado Plaza Building located at 315 Fourth
Avenue. Chula Vista to the City of Chula Vista for the appraised value of $1.175.000.
BOARDS/COMMISSIONS RECOMMENDATION: N/A.
ro - J
-.
Page 2. Item ~
Meeting Date 09/05/95
DISCUSSION:
The Pfopertv
The EI Dorado Plaza Building is a professional office building located on Fourth Avenue near the
corner of F Street, within the Town Centre I Redevelopment Project Area. The building was
constructed in 1976. It was acquired by the Redevelopment Agency in 1990 for $1,720,000.
The building has a gross area of approximately 15,700 squafe feet and a net leasable office area
of approximately 14,344 square feet. The building is currently occupied by private professional
businesses (2,789 sq. ft.), South Bay Community Services (5,064 sq. ft.), the Otay Ranch Project
(2.220 sq. ft.), and some divisions of City Departments (2,871 sq. ft.); Two Hundred and Seventy
Five square feet of leasable space have been vacant for some time, and 1,125 sq. ft. were
recently vacated (the figures in parenthesis represent net usable square footage).
The Offers Received
On March 17, 1995, the Agency issued a Request For Proposals for the purchase of the building.
Responses were due by April 28, 1995, By the end of this period, only three offers to purchase
the building were received. The offers were considered unacceptable. The Agency rejected the
offers at its meeting of May 23, 1995 on the grounds that the bids do not represent the potential
value of the property and, considered as an alternative, the sale of the building to the City. It was
established that the City would obtain more benefits by maintaining the building under public
ownership. These benefits include:
8 Control of the site for future fedevelopment.
8 Intefim use of building to accommodate office expansion until civic center
expansion is completed.
8 Use of development impact fees to purchase building from the Agency.
Additional Benefits of Citv Purchasino Propertv
Purchase of the building by the City accomplishes several more objectives. First, City purchase
of the building releases the Agency from the responsibility of managing property that cannot be
redeveloped in the short-run. Second, it provides a cash infusion to the Redevelopment Agency
at a time when it is most needed. Third, it keeps the building under public ownership so that
future redevelopment of the site is not precluded. Finally, it provides City control to accommodate
interim space needs for staff and special projects.
Sale/Purchase Terms and Source of Funds
Prior to presenting the May report to the Agency, staff conducted an analysis on the value of the
building. A local real estate appraiser was consulted on this issue. Both opinions concurred that
the value of the building was $1,400,000. However. a full appraisal was conducted later on by
a professional appraiser that concluded that the value of the building is $1,175,000. The
difference between staff's and the appraiser's analysis is that staff used gross building square
footage figures and the appraiser used net usable square footage figures in determining the
potential value. In staff's opinion, the appraiser's analysis is appropriate. Therefore. it is
recommended that the Agency sell the building to the City for the amount of $1,175,000.
Using Development Impact Fee (DIF) funds from the Civic Center Expansion Fund would provide
the money to purchase the building from the Agency without impacting the General Fund. The
payment arrangement could consist of one payment for $1,064,550 to be applied during the
~ - 2-
Page 3, Item ~
Meeting Date 09/05/95
current Fiscal Year 1995-96 and the remaining $110,450 to be written off from Agency debt to
the City.
The Civic Center Development Impact Fee program calls for construction of a 23,000 square foot
Civic Center Annex on the current site of the Police parking lot, Community Development Building,
and the Legislative Building. However, in consideration of the City's current fiscal needs. staff
expansion is not expected for several years. Purchase of the EI Dorado Plaza building would
provide an interim option (5-7 years) to the Civic Center expansion plans. It would also take
advantage of a depressed real estate market to acquire an asset. The City Council is hold a public
hearing tonight (9/5/95) to amend the Civic Center DIF program to include the purchase of the EI
Dorado Plaza Building.
RedeveloDment Law Reauirements
California Redevelopment Law establishes certain procedural requirements for the dispositions of
Agency property. Health and Safety Code Section 33431 requires that a public hearing be held
by the Agency for any sale without competitive bidding and that notice of said hearing be
published in a local paper two weeks prior to the Agency holding the hearing. As indicated above,
the bids that were received through the RFP process were not considered satisfactory and were
rejected by the Agency. The offer from the City to purchase the building from the Agency is not
part of the competitive bidding process. In compliance with the law, public hearings were set for
the meeting dates of June 20, 1995 and August 1. 1995 which were continued to tonight's
hearing. Notices of the public hearing were published in the Star News editions of Saturday, June
10. 1995 and Saturday, June 17, 1995.
Redevelopment Law also requires that the sale of Agency property assist in the elimination of
blight. The sale of the subject property will help to eliminate blight by keeping the office under
City ownership to preserve the future opportunity to consolidate it with the adjacent commercial
property for redevelopment purposes,
FISCAL IMPACT: Rejecting the bids and having the City purchase the building from the Agency
would have the following impacts on the Agency and City, respectively.
Impacts on the Agency:
. Of the $1,175,000 sale price, $1,064.550 will be transferred from the Civic Center DIF
to the Agency during the current year; the remaining $110,450 will be written off from
debt owed by the Agency to the City.
. Disposition of the building by the Agency would forgo an income stream of approximately
$185,544 per year in gross rent revenues, including revenues from rent paid by South Bay
Community Services for its space at the building.
Impacts on the City:
- Purchase of the building by the City will require the use of $1,065,550 from the current
fiscal year's Development Impact Fee Fund. The transaction also involves the write-off of
Agency debt to the City in the amount of $110,450.
Attachments:
Exhibit 1: Plat Map
Attachment 1: Purchase and Sale Agreement e,-3
{FlLE,\MZT DISK X\A,\315SALE.RPTJ
This page blank.
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EI Dorado Building
315 Fourth Avenue "..5
City of Chura Vista Town to gm
Redevelopment Areas Centre I ø ~ :
12/18/90
This page blank.
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fI#fdJment A
REDEVELOPMENT AGENCY AGENDA STATEMENT- ~
Item L
Meeting Date 5/23/95
ITEM TITLE: ReDort Results of Request for Proposals for the sale of EI Dorado
Plaza Building at 315 Fourth Avenue
SUBMITTED BY: Community Development Director ~~.
REVIEWED BY: Executive Director 7
(4/5ths Vote: Yes - No..xJ
Council Referral Number: N/A
BACKGROUND:
At its meeting of March 7, 1995, the Redevelopment Agency directed staff to issue a Request For
Proposals (RFP) for the sale of the El Dorado Plaza Building located at 315 Fourth Avenue. The
Agency purchased this building out-right in 1990. The Agency is interested in selling the building to
convert real assets into a more liquid fonn in order to address the budgetary constraints it is currently
facing.
Staff issued the RFP on March 17, 1995. The deadline for prospective buyers to submit proposals was
Friday, April 28, 1995. Three proposals were received by staff and are described in this report. Staff
is presenting a recommendation concerning the offers received and the following alternatives for the
Agency for the sale of the building:
a) Agency maintaining ownership of the El Dorado Plaza Building.
b) City of Chula Vista purchase building using Development Impact Fees (DIF).
c) Agency hiring a specialized broker to market the building.
These alternatives will be described in detail in this report.
RECOMMENDATION:
That the Agency reject all proposals received and direct staff to prepare a project for Council/Agency
review and approval involving the sale of the building to the City pursuant to the tenns outlined in this
report.
BOARDS/COMMISSIONS RECOMMENDATION: N/A
DISCUSSION:
Staff issued the RFP for the sale of the El Dorado Plaza Building on March 17, 1995. A list of
approximately 115 brokers and real estate agents from the San Diego region was compiled and a copy
of the RFP was mailed to each of the individuals on the list. Notices were placed in the San Diego
Business Journal, the San Diego Daily Transcript, and the Chula Vista Star News.
The deadline for submittal of bids was April 28, 1995, allowing prospective bidders 45 days to respond.
An open house was also held on April 1, 1995 for prospective bidders to inspect the building. Two
people attended the open house. By the deadline, three bids were received. These bids are summarized
below (see attachments for copy of bid packets). (0,1
Page ..£., Item~
Meeting Date: 5/23 95
Bidder's Name Bid Offered Terms
South Bay Community $1,055,000 $540,000 Private Loan
Services
$250,000 City or
Agency Loan
$265,000 CDBG-I08
Loan
Mr. William D. Lynch $1,000,000 Cash Payment
Mr. Frank Real $800,000 Cash Payment
After reviewing the bids, staffs opinion is that all three are too low and unacceptable. In 1990, the
Redevelopment Agency purchased the building for $1,720,000 which was considered the market value
of the building. Since that time, real estate values have declined significantly. However, staff concludes
that the prices offered by the three bidders are too low relative to the current estimated value of the
building and anticipated rental income. An "Opinion of Value" requested by staff from a local appraiser
and dated July 11, 1994 supports staff's conclusions. It indicates that the property could command a
value of $1,400,000. The appraiser bases his "opinion" on full occupancy and rental rates between
$0.90 and $1.10 per square foot. (The building houses approximately 16,000 usable square feet.) His
observation was that "demand for this type of building is currently being driven by owner-users or
partnerships of users."
Currently, tenants that occupy the building include four private businesses, three city offices, the Otay
Ranch Planning Team office, and South Bay Community Services (SBCS) , a publicly funded social
service agency. SBCS occupies approximately one third of the building, but does not currently pay
rent. Current net revenues (gross revenues minus expenses) are approximately $6,700 per month or
$80,400 per year. If SBCS were requested to pay rent at a rate comparable to the other businesses and
city offices now in the building, net revenues would increase to approximately $12,000 per month or
$144,000 per year. Capitalizing this amount at a rate of 9% per year, the value of the building would
be approximately $1,600,000. (This estimation assumes that SBCS pays rent and that vacancy rates
remain at the current rate of 4.8%.)
Based on the above discussion, staff believes that the bids received do not represent the potential value
of the property. The Agency or the City would obtain more benefits by maintaining the building under
public ownership. These include:
. Control of the site for future redevelopment.
. Interim use of building to accommodate office expansion until civic center expansion is
completed.
. Source of income through rental of office space not needed for City use.
. Use of development impact fees to purchase building from the Agency.
The advantages and/or disadvantages of Agency/City ownership are further discussed hereto:
(/;-/1
Page 2.., Itemi
Meeting Date: 5/23/ 5
Agency maintaining ownership of the EI Dorado Plaza Building
Advantages:
As indicated above, the building currently generates $80,400 in net annual revenues and it còuld
potentially generate approximately $144,000 in net revenues per year. However, for the building to
generate that income South Bay Community Service will have to pay full rent for the space it occupies.
(Staff will be bringing forward a consideration to the City Council to use CDBG funds to pay for
SBCS's rent for the use of its space at the EI Dorado Plaza Building.) In addition, if the Agency retains
ownership, staff will be returning with a recommendation that the Agency also hire a professional
company to manage the building in a professional and comprehensive manner.
Disadvantages:
While having this cash flow is attractive, it does not resolve the Agency's need to convert real assets
into a more liquid foan in order to cover the current deficit. In addition, it is questionable whether the
Redevelopment Agency should continue to be involved in the long-tean operation of property.
Redevelopment law allows the Agency to acquire property for the purpose of redevelopment, which was
the Agency's purpose for acquiring this property in 1990. The intent was to acquire this property to
consolidate it with the adjacent shopping center property. The larger parcel would then be better able
to support a new and more substantial development. Subsequently, however, the Agency approved
plans for the remodeling of the shopping center building which has postponed the comprehensive
redevelopment of the site for about 15 years. Staff does not believe that the long-tean investment would
serve the Town Centre I redevelopment effort as well as would the sale of the property.
City of Chula Vista purchase building using Development Impact Fees (DIF)
Purchase of the building by the City accomplishes several objectives. First, City purchase of the
building releases the Agency from the responsibility of managing property that cannot be redeveloped
in the short-run. Second, it provides a cash infusion to the Redevelopment Agency at a time when it
is most needed. Third, it keeps the building under public ownership so that future redevelopment of
the site is not precluded. Fourth, it provides City control to acwmmodate interim space needs for staff
and special projects. Finally, it provides a source of income to the City which is needed to help balance
its budget through the prjvate lease of office space that is not currently needed for public use.
Using DIF funds from the Civic Center Expansion Fund would provide the money to purchase the
building from the Agency without impacting the General Fund. Further, the payment arrangement
could be as follows: Based on the analysis provided and the opinion of value of the EI Dorado Plaza
Building, the purchase price should be $1,400,000; the purchase could be undertaken in two
installments. First installment could be made by using $650,000 from the Civic Center Expansion DIF
Fund for the current fiscal year (1994-95). The second installment for $650,000 could be made during
Fiscal Year 1995-96 from the anticipated revenues to the DIF fund. The remaining $100,000 could be
written off from the existing Agency debt to the City's General Fund.
The Civic Center Development Impact Fee program calls for construction of a 23,000 square foot Civic
Center Annex on the current site of the Police parking lot, Community Development Building, and the
(;-c¡
Page ..!.., Item.!i
Meeting Date: 5/23/95
Legislative Building. Purchase of the EI Dorado Plaza building would provide an interim option to this
Annex. It would also take advantage of a depressed real estate market to acquire an asset which could
later be sold at a profit to help fmance the fmal construction. If Council opts to pursue this option,
appropriate notice and a public hearing would be required to amend the Civic Center DIF program.
Agency hiring a specialized broker to market the building
If outside sale of the building is still desired, a better price offer may be obtainable by waiting for
market conditions to improve and marketing the property through a specialized agent/broker. Market
conditions are expected to improve over the next few years and this might offer the opportunity to
obtain a better price for the building. The advantage of contracting with a specialized broker is that
brokers have access to infonnation about the market and access to clients nonnally not available to
people outside the real estate field. Contracting with a broker would also be advantageous because the
broker can seek the high bids and screen out low ones.
FISCAL IMPACT: Rejecting the bids and having the City purchase the building from the Agency
would have the following impacts on the Agency and City, respectively.
For the Agency:
. It would generate a cash infusion of $1 ,400,000; $650,000 during the current year and $650,000
during FY 1995-96; $100,000 would be written off from existing Agency debt to the General
Fund.
. Disposition of the building by the Agency would forgo a current income stream of $80,400 per
year and a potential income stream of approximately $144,000 if SBCS pays rent on its space
at the building.
For City:
. Payment to the Agency would require the use of $650,000 in the current fiscal year's
Development Impact Fees Fund for the expansion of the Civic Center; $650,000 from the
anticipated DlF revenues for FY 1995-96 for the same purpose; and writing off $100,000 of
Agency debt to the General Fund.
. City purchase of the building would accommodate the staged implementation of the Civic Center
Expansion by providing interim office space needed by City.
. Purchase of the building by the City could provide rental jncome of approximately $80,400 per
year or approximately $144,000 per year if SBCS pays rent. The amount of revenues will
depend on how much space not used by the City is rented out.
(p _/0
- ,-.., -.
315 4th Avenue, Suite E . Chura Vista. CA 91910 . (619) 420-3620/9790/5051
April 19,1995
Mr. Miguel Z. Tapia, Community Development Specialist
City of Chula Vista, Community Development Department
276 Fourth Avenue
Chula Vista, CA 91910
Dear Miguel:
South Bay Community Services is interested maintaining its office
space at 315 Fourth Avenue. Our preference would be to continue oùr
current leasing arrangement with the City of Chula Vista. If this is
not possible, and the City is going to sell the building, SBCS hopes
to be the purchaser so we can continue effectively serving lower
income Chula Vista youth and families.
Financing for SBCS' potential purchase would be a mixture of private
and government funds. We propose a purchase price of $1,055,000
derived from a $540,000 private loan; a $250,000 long term, deferred
interest loan from the Redevelopment Agency or other City resource;
and $265,000 of CDBG-Section 108 financing.
There are a number of advantages to the .City. First, the Agency would
get an immediate cash infusion of over'one million dollars. The City
would hold the $200,000 loan as a second trust deed and recover this
amount, plus interest if SBCS ever sold the property. The $275,000
CDBG-Section 108 loan is much less than the present value of many
years of CDBG dollars SBCS would request to cover its rent payments
to a private landlord. SBCS would enter into a long-term lease with
the City fo:!: its cuxrent space, plus other space as it becomes vacant.
There is local precedent for SBCS' proposal. The City of National
City recently funded MAAC Project' s purchase of an office building
under a similar financing structure utilizing CDBG funds.
Let me restate that SBCS only wishes Community Development staff to
entertain this proposal if they decide to definitely sell the
property. SBCS would prefer to continue our current relationship.
Sin~rely,
, ~-,
'--.--- ,)J //j;
--Kathryn Lembo
~n~~Executive Director
. (p ,,/1 . FUNDED 1J2J
BY
COUNTY OF BAN OIEOO
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9
Voir
Commercial Brokerage April 10, 1995
One of The Voit Compenies Miguel Z. Tapia, Community Development Specialist
Community Development Department
276 Fourth Avenue
660 Bay Boule"" Chula Vista, CA 91910
Suite 210
Chula VIsta. California
91910 RE: PROPOSAL TO PURCHASE
Tel (619I'9S"560 315 FOURTH AVENUE, CHULA VISTA, CA
Fax (619) '9S.'56?
Dear Mr. Tapia:
On behalf of my client, William D. Lynch, or assignee, I am pleased to
present this proposal to purchase the above referenced property on the
following terms and conditions:
1. PURCHASE PRICE: $1,000,000.00, Cash.
2. TERMS: Down payment of $300,000.00; new loan of
$700,000.00.
3. INITIAL DEPOSIT: $10,000.00 upon opening of escrow,
applicable to the purchase price.
4, SECOND DEPOSIT: Additional $10,000.00 also applicable to the
purchase price shall be placed into escrow upon written release
of all contingencies ninty (90) days after opening of escrow. At
this time the total deposits of $20,000.00 shall become non-
refundable, released to Seller, and constitute liquidated damages
should Buyer fail to close escrow.
5. FEASIBILITY STUDY/CONTINGENCY PERIOD: Purchaser shall
have ninty (90) days from opening of escrow to study the
feasibility of this purchase, including, but not limited to the
investigation of existing leases, financing, preliminary title report
and hazardous materials. Should purchaser find this property
suitable for its purposes, Purchaser shall indicate so in writing on
or before the ninty (90) days after opening of escrow.
~-13
wpdata\tc\315-4TH,PTP
9
Miguel Z. Tapia
April 10, 1995
Page 2
6. FUTURE PLANS FOR PROPERTY: Buyer's plans for the property are to
upgrade (where necessary), manage, and maintain a first class office building.
Buyer's most recent Chula Vista project was the purchase and rehab of the
former Holiday Honda property at 360-366 Broadway.
7. ENVIRONMENTAL ASSESSMENT REPORT: Seller, at Seller's expense, to
provide an environmental assessment report within thirty (30) days of opening
date of escrow including any findings regarding asbestos or any other
hazardous materials effecting subject property. In the event the subject
property is found to contain any hazardous material, Seller, at Seller's expense,
shall be responsible for any such hazardous cleanup.
8. CLOSE OF ESCROW: On or before thirty (30) days after release of Buyer's
contingencies.
Approval of the above conditions and contingencies are solely at the discretion
of Buyer and shall be approved by written notice no later than the time limits
stated in each paragraph. If any items subject to approval by Buyer are not
approved, this Contract may, at the option of the Buyer, be deemed terminated
without liability to the Buyer, and funds will be returned to the respective
parties who deposited same.
9. BROKERAGE: Buyer is represented by Voit Commercial Brokerage. Seller
represents itself. Seller agrees to pay a five percent (5%) sales commission to
Broker upon close of escrow.
10. NON-BINDING: The purpose of this proposal is to outline general certain
terms as the basis on which a proposed purchase contract agreement between
Seller and Buyer may be prepared. Neither Buyer nor Seller intends to be
bound by this proposal, and either party may cancel this proposal at any time
prior to execution of purchase contract agreement. If a purchase contract
agreement between Seller and Buyer is ultimately entered into, Seller and
Buyer intend the purchase contract agreement to be the entire agreement
between them, and the terms of this proposal shall not be used to construe or
interpret any such document.
If this proposal meets your approval as the basis upon which to prepare a draft
purchase contract agreement, then please sign the proposal and return a copy to me.
~ -Ilf
wpdata\tc\31S-4TH,PTP
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<0>
Miguel Z. Tapia
April 10, 1995
Page 3
Seller and Buyer acknowledge that Volt Commercial Brokerage and Ita brokers,
agents, employee. and repl'8$Gntatlves make no representation or warranty that
either Buyer" or Selle"s signing this proposal or continuing negotiation of a
proposed purchase (whether or not negotiations are baaed on this proposal) will
ensure or result In a Sale lor the Premises being executed and completed.
Mr, Tapia, I have enclosed herewith a personal resume for Mr. Lynch and a financial
statement. Please let me know If you have any questions concerning this proposal or
require any additional Information. I look forward to hearing from you.
Respectfully,
VOlT COMMERCIAL BROKERAGE
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TraCY~
VIce Praslden
TCC/tSr
~
By:
AGREED TO ACCEPTED ,HIS - DAY OF 1995.
SELLER:
By:
Ita:
SELLER, BY ITS SIGNATURE ABOVE, HEREBY ACKNOWLEDGES RECEIPT OF A
COpy OF THIS PROPOSAL.
wpdabt.lc\315-4T1i,PTP
6~/5
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~ -It,
THE WILLIAM D. LYNCH
FOUNDATION FOR CHILDREN
SCOTr B. HIMELSTEIN
EXECUTIVE DnŒcroR
William D. Lynch
Founder
William D. Lynch Foundation for Children
Date of Birth - September 8, 1942
Education - B.B.A. - State University of Iowa
Residence - 16 years Rancho Santa Fe, California
Married - Two Sons, Two Grandchildren
Occupation: Businessman - Owns and operates, Beauty
Boutique, Inc. (Cosmetology Schools), Dining Yachts,
Apartment Units, Commercial Real Estate, MLV, Inc.
( Laundromats), Iowa Farms and several other holdings and
ventures.
Current Organizations and Affiliations: Board of Directors
City Club of San Diego, Board of Directors Reading Recovery
Council of North America, S.D.S.U. Presidents Council,
C.A.R.E.S. Executive Board, Lincoln Club of San Diego
County, Fairbanks Country Club, Rancho Santa Fe Country
Club, KPBS Producers Club.
Recent Awards and Recognitions: International Reading
Association and Greater San Diego Reading Association's
Celebrate Literacy Awarã; SANDAPP-Collaborative Spirits
Award; Chilãren's Hospital and San Diego County Office of
Education - Champion for Chilãren Awarã; Sand Diego County
SER/Jobs for Progress and the Amigos ãe Ser Aãvisory Group
Awarã; Soviet-American Forum for Life with Human Rights;
University of Iowa College of Business Administration
Special Support Awarã; poway Unifieã School District -
Reaãing Recovery Awarã; San Diego County Sheriff's
Certificate of Appreciation.
Attacheã: Brief description of Lynch Founãation's mejor
programs.
6'/7
~~ ~~- Oo~- - ...~-~ 0 ..-. -- ~, ----- -- , --. '^ -.' ,-- --- -- - --.--
WILLIAM D. LYNCH, Rancho Santa Fe, California. President of the
WILLIAM D. LYNCH FOUNDATION FOR CHILDREN. The Foundation
underwrites research and funding for children's causes in San Diego
County. Current projects include:
1) San Diecro Coalition for School Acre Mothers
The Foundation provides a building, van and
technical/staff support.
2) Even Start - The Lynch Foundation is the
recipient of matching funds for the largest
Even Start Program in the State of California
- a 4 year $1.5 million project.
3) Readincr Recoverv Fund - The Foundation has
pledged $50,000.00 per year for 10 years to
supporting San Diego County Office of
Education, and the 43 Districts of San Diego
County in an attempt to fully implement
Reading Recovery in San Diego County.
Mr. Lynch is a businessman. His holdings include Commercial Dining
Yachts, Cosmotology Schools, Coin Laundries, Apartment Houses,
Commerical Real Estate and Iowa Farms.
h,l!
5.996.651
Equitv
S 150,000
25,000
150,000
Gm. MIn. Bank Stock (Iowa) 50,000
D & B, Inc. (Iowa) 140,000
M W & W(Iowa) 50,000
Marshalltown Farmland (Iowa) 70.000 635,000
Totals S 635.000 S o S 635.000
Texas Assets with Non-Recourse Debt
Market Non-Recourse
Value Debt
Raw land - 4 Acres- Rockwall S 60,000 S o S 60,000
Katy Freeway Center. Houston (49.5%) 850,000 597,124 252,876
Oal.:wood Apts - Lake Jackson 2,225,000 1,812,308 412.692 725,568
S 3,135,000 S
(;-/1 S 7,357.219
This page blank.
6/)lJ
,^,. AP.R 25 '95 13:,49. / PAGE.001
,,:' 8t.--""" ,S')',,4< '<::
, .:' == .' '..Iriteinational Real Estate .,.:' Am 199, .,,\..' .." '
, .. ." Necelved ". ,.'
.: " A DMsion cf lR.E. ~ Inc. \ ~9. Community Development (,
. , \ - Department "
" ApriI26,!';' , , \(t"""""c,,,,?.'
Miguelz. TipJa VIAFAX:,47¡S.;S~10 ,:
Commuuity..DevelOpmeøtDepartmant ORIGlNALMAlLED: +Z7-9S" .
CITY OF CHULA VIS.TA ' ,
. '.. 27{jFourthAveøu.e" '., .,
ChuJa.Vûta, CA91910'
. I "
il ':4T:--_3lSromrmA_~VJðrA ,,;;"':.>;:~.
'. ,:...' , On:bCÏha1f~Øy.ëiid.-¡:iaiJkReal(Buyer),Iamsubmitting1f1isJetœcwbl¡:liøhaø~~~:',":" ",
tol'l1rdJase;'bYthc~refercmœd Bu,erorNoØlinee, furtbe~~ above, ~tbe "
City of <':mi1å VISti¡:~) on the terms and OOndi1ioDS set furth bdow:' ' ' ,
"" ";:""':, , '" ':'
1. Tm:::i>ROPERTV: Seller hc:rtby ~ to iIeIl to Buyer, aiId Buyçi her:eby '~.:tô ' ,','
. .' ~,~,SÇIIer, that cenain réa1 property located at 31S.Fourth Aveoue. CJmJ&,V-Ä ":"
.'.'~:: . ~:~çv.¡~15,74311q1111œfi:etofnetIeasabJø~space. .'. '::':. ..
;..:', 2:' PI1RCRASR .PRJI'::E: The purdlasepriœforthe ptopeltyåaD. be.fhe sum of'-~~ ;: ':'"
:' ". ' ;!Z;;-:=_""doooof-.w, ' " "',
4. :BUYImfS' DEPósIT! Upon opeoins of escrow, Buyer shall deposinóth escrow tIoJder; :
SplÎllg:Mciun&ain'~, twenty thousand BOd NOIlOO Dollars ($20.000.00). 'IfSeJiei.1iiUS:..
to pedbi-Ql"Uddèt'.:the terms and cxmditioos of the Pun:base ~ Qr JtB~.~~, : ': '
to prcxioorI-W!th1bís tlaDsaction during tho agreed Contmaeœy'Period.1hènthi, emire déþdsir' '
, ' is to be re1ùi1ded to the B without oBJet. . '. "",
",:. ': ',' " uyer " ,
s. Rm.li'.Á~ÓF.BllVltRfSDEPOSQ': JntbeÇWÚBu:yerhas~aJl~t;i~~
, . bas~ to. his 8111Îs61cÚ0D, aJl peniøeot dowmemsIdata Ot1:thc pro¡)eny. esca'OW hoI.dcr' "
shall i:eteáso,1Iie .S70.ooo depoåt to Seller providiD,g SeI1er bas cIear.1IaDSfen1bIe title, to .the
~', ~aict$20.000 sbaJl be appliœblc to purçhaøe prioe. " "" .
6. CON'i1'NG~N~ PERIOD: The Buyer's obJigation to ~. exPœssJy ~, ,
1JPOD-.~.~on and/or approval ofeach of the fo~ withÎ114S'days af~ .
Of~,.., . '.:;".:,'
A. .HApptmiaJ.Cf.a pitün!narytltle report and copies ofa1l exc:eptHjnsof:reCord- witbintWtiy .,'
, Ç¡ l,iKi~~aI / Commerolal Properties - Sales & Leasing I Propeny Manage~errt 0' " ,.,,'.' '.'
" , 2320Paseo delas Americas, # 200, OIay Meea, CA 02173, (619) 661~¡!1;'FAX. (619) 66100065 .
~^2/,
H~~ ~b '9~ l~:~u PAGE.002
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',(io)cia,;i:;rreceipt. Buy«s&aIl reviewall1eases, 1itIeiDfotmåtioo. C'C'&:R't,.'.aø.y', ',: " ,
, ' IDd all cìitcumbmnœs of the property. ' "
... B. ~~,~oftbclpropertybueduponawalk:-throushinspectionwñhB~i:,
, 8cœtûëoninwt~r. :" .. " " .-
, , ,'" '
, ' , ' , ,
c. <.. -sbiI- Ptovide the 1bIIawiDg to the Buyer for Buyet" I ~ ~ tea (I 0) ~ at' ': ' ..
¡:tr;iã=~D:.~~~~:;~;:i':~ '
'..~' ;:4;-, ,"',~:otallQllIaltclli:ctM~ nmta1 ~orothec~,~.aDf.',:
',~,:~: .,...s.,,/'~æz::=~~~~:~~:;:':,
, ,,: "'-;ýëal'&1èdenI tax return which liststbe expenses aIid,,+.."¡i\n~ ' , " " , ','.. ,
~;: : ~ons IIIIIi WIII1'8JIties whiIIh 8baIJ surviw1he c1~of,esçrow iita.:futm ,
" ':~øads&etorytoœunselforBu,cr. ' ',"" ,<,...
'..:'7::, '.."'~: Copi8oflDyexlstiosœportSIdaliøatotþis~:, .
~"~: ' 'Ð.:~,8Ddreaewa1ofleasenICbdl8CityofChulaVJSla""WeÛ'u,~.<" - ,::,
,';~: , , '.. ~~whiahBu:1ctdoeIlI!U_II8118lytofildlibde=#le'~ ~~n1fust.":Y~f ,.',:. '
':':': . '?~~',~lIIIdllUlCutcdooly.Ullotheritemsbave-boènllflP1'OYe4byt1lø-~, " ..
7. ESCimW~:,¡'Ihesalc sbaJl be oollSWlll118ted through Spriøs MDUntain Bserow. 'The: cl~ '
8.:;:t:4:=:::==:::'&fiver~~~~:': ,", '
, by Gnmt~-:-afi!esimplciDlemtio1f:1ePropenyftee and ctearc:ifi!ll:fide,~cms:'~',;, '
~~,,:iIpproved by Bu}'CI' in writiøg. Also at the ëIóse ~ eserow;BuYet 1d!än '
, ~~~s'expease, 1111 ALTA Owner's Po1Wy of'mle. ~ isauc4 bY-Y.pst',
, Amei'¡œ#,WIIJ...subject 0Dly to the tide ezœptions pnMousIy,apprgvæ:¡¡y,Buya-. ~fi'st,
, g, . ::r~~'=::"'-""'~f»_~" ','
k?'Bttver!1I ClosiQ¡ (".om' BuF sba1I pay one-halfofall'~ fi:es;~'~s,'
'B..:l':~~Jb~-::~::aydCOSÞand~afcl~~':all:~' ',;:
6~21., n
" -~ 'U'-~ ~n~E.U03
- '...
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.. ~~-~ ' , , ,:",,~:~':,~:,:..::"":.:;>/ '
.' ~'S"......'~ ,,',:E'
, ""~ÍßaIsforUDs.tbccostofaPOlicyottitlC~,onHaIfthê~,:,
~:aiIIëS,~"tÌœ and the usual SeIler's ñnA~ dra1liDs ~ ~ cb8igcs; ,
C.' ~,~ass:r --dis1rictandICllblshallbcprolëlted_tbc~of~: All, ,,'
"" lL=tr~;.;;;;;;;::::~~~- ';' .
',':' 11.' ~::jgJÓriißœ"D..GWCE: ThlsQ.lfm-toPurdlasc~lJe,.cIe!fimed.~:I,~-';.':::Y~
~~ ~ p.D!. on May 15. 1995. aod I8Id1 ~.~..,~..~.d..:lbcU~~,.~ :"~: :" :.7'
=-~==~-::'=-~£~, )¿
ot.ba" avaiIaI# ~ properties. AnotheI" issue which we 1àctorèd into our 1U!8Iysis,. ~ tnJat
!be City ~ ~ is the TEIIOvasion of tile boiI!fing as phumed by 1he BuYer.', 'Ibis renoY:atWn. '
, plan ~~ the ~ through JI!IÌIIIÌII& new tile, ~ "tIb,ailrem-t.,. ~
ÍlDpiu,,~,~~, ~lot ~ ow. The iatuionvill be ~ wbcø. ~:~~: :" " ',-'
ShouIct ¥tjl:~'l ~ be 8GCCptIId, if is his, iaIœtion to I1II8ÏD my Finn ~ Jeue ~ ~~,; ..: ", ';;,
buIIdIas :AgiiiiJ;.Wllimst 1ho aty WOIIId IIJIlA oc;¡.., this fåçt, ,1IÎDœ 1bC ~ ~,~ : '
1IIe~ëiin,~ IIIJ!Iabce IIa IppeII1IIIœ aod opeaådøg IUCœfI I" liMIe you1O y¥c eri; ðftf1e ' ,
propcRic¡'~~,ilrdlÏch totaISOO.OOO 8qllllld,et otrcata1 spøœ.' ',:"'" :", '
"" ,f',""",,', , , "
, Thank '1bf ý'œr cOnaideœtio we both look fotward to bearÎllS"fi'om.yòu. '. . ,
.m~~':n :', .,:.,,',".::',!:'(..~,
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""" 'TOTAL pAG'E .003 "",,'
This page blank.
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= ~ International Real Estate /<',;c,~""
. A Division of I.R.E. Enterprises, Inc. . 1,: \
l riG,'
Redevelopment Agency - Agenda Item #5
This letter was faxed to staff after the Agenda
May 19, 1995 packet was delivered.
Chris Salomone Via Fax #476-3310
Community Development Director Original Mailed: 05/19/95
CITY OF CHULA VISTA
276 Fourth Avenue
Chula Vista, CA 91910
RE: FORMER FULLER FORD SITE
Dear Chris:
This letter will confinn Mr. Cowtney's desire to purchase the fonner Fuller Ford site on the west side
of Broadway in Chula Vista. We understood that this site consists of approximately 110,250 square
feet of commercially zoned land and approximately 33,000 square feet of automotive use buildings.
Based on Mr. Courtney's intimate knowledge of the property and the neighborhood, he is prepared
to offer the City $700,000 cash for this site subject to standard contingencies. This Offer is based
upon the buildings ill21 being razed and an escrow period of not more than 90 days.
Mr. Cowtney's acquisition of this property would be in addition to the South Bay Chevrolet site and
would be financed through private sources.
We look forward to working with the City on this transaction.
Sincerely,
INTERNATIONAL REAL ESTATE
-1ÍiÁ
Michael A. Vogt
MA V:sks
cc: Jim Courtney 5
h - :1- C,1WP61'MliŒICLlENTsICOURrNE!"&ILOMONELrR
:J Industrial/Commercial Properties - Sales & Leasing / Property Management:J
2320 Paseo de las Americas, # 200, Otay Mesa, CA 92173, (619) 661-6681, FAX (619) 661-6685
This page blank.
fa ,. :L~
PURCHASE AND SALE AGREEMENT
This Purchase and Sale Agreement ("Agreement") is entered into effective as of
September 5, 1995, by and between the REDEVELOPMENT AGENCY OF THE CITY OF
CHULA VISTA, a public agency corporate and politic ("Agency") and the CITY OF CHULA
VISTA, a municipal corporation ("City") with reference to the following facts:
A. Agency owns ceftain real property ("Property") located at 315 Fourth Avenue,
within the Town Centre I Redevelopment Project Area, in the City of Chula Vista, California,
comprised of a 33,977 Square Foot parcel improved with a building approximately 15,700
Square Feet of gross area.
B. The Property was appraised on July 18, 1995 by lipman, Stevens and Marshall
at $1,175,000.
C. City desifes to purchase and Agency desires to sell the Property subject to the
terms and conditions set forth herein.
D. All necessary public hearings have occurred and all necessary City/Agency
approvals have been obtained in connection with this transaction.
NOW, THEREFORE, in considefation of the mutual covenants set forth herein, and for
other valuable consideration, the receipt and sufficiency of which afe hereby acknowledged,
Agency and City agree as follows:
Section 1. Purchase and Sale. Agency agrees to sell the Property to City and City
agrees to pufchase the Pfoperty from Agency, on the terms stated herein.
Section 2. Purchase Price. The total purchase price which City agrees to pay and
Agency agrees to accept for the Property is the sum of ONE MILLION ONE HUNDRED
SEVENTY FIVE THOUSAND DOLLARS ($1,175,000), payable as follows: $1,064,550 shall
be transferred from the City's Development Impact Fee Fund to the Town Centre/Bayfront
Fund during the current fiscal year; $110,450 shall be written off ffom existing Agency debt
to the City.
Section 3. Grant Deed. Upon mutual approval of this Agreement, Agency shall
deliver a Grant Deed, duly executed and acknowledged in recordable form, conveying the
Propefty to City.
Section 4. ReDresentatives and Warranties. Agency represents and warrants to City
as follows:
(a) Agency shall deliver good and merchantable fee title to the
Propefty to City;
(b) The Property shall be delivefed free of hazardous materials, but
othefwise in an "as is" condition consistent with the condition in
which it wad appraised by lipman, Stevens and Marshall on July
18,1995.
"'¡¡€Ie 1 ~~~7
SIGNATURE PAGE
to the PURCHASE AND SALE AGREEMENT
Between the
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
and
THE CITY OF CHULA VISTA
IN WITNESS WHEREOF, the parties have entered into this Agreement a of the date first
written above.
SELLER: REDEVELOPMENT AGENCY OF THE CITY
OF CHULA VISTA, a public agency
corporate and politic
By:
Shirley Horton, Chairman
Attest:
Executive Secretary
Approved As To Form By:
Bruce M. Boogaard, Agency/City Counsel
BUYER: CITY OF CHULA VISTA, a municipal
corporation
By:
Shirley Horton, Mayor
Attest:
City Clerk
[FILE'\M,Sh."dlAttomoy\3 1 SSALE.AGR]
~ 6 -~cf
RESOLUTION 11511
RESOLlJTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA
VISTA APPROVING SALE OF CERTAIN PROPERTY LOCATED AT 315 FOURTH
A VENUE WITHIN THE TOWN CENTRE I REDEVELOPMENT PROJECT AREA TO
THE CITY OF CHUlA VISTA, CALIFORNIA WITHOUT PUBLIC BIDDING, AND
APPROVING PURCHASE AND SALES AGREEMENT WITH THE CITY OF CHLUA
VISTA, CALIFORNIA, AND AUTHORIZING THE CHAIRMAN TO EXECUTE SAME
WHEREAS, the Redevelopment Agency of the City of Chula Vista owns certain
real property at 315 Fourth Avenue in Chula Vista, California; and
WHEREAS, the Redevelopment Agency wishes to sell said property to the City
of Chula Vista, without competitive bidding; and
WHEREAS, the City of Chula Vista wishes to purchase said property from the
Agency; and
WHEREAS, a Purchase and Sales Agreement between the Redevelopment
Agency and the City of Chula Vista is being approved; and
WHEREAS, Community Redevelopment Law requires that a public hearing be
held by the Agency for the sale of Agency property without competitive bidding and requires
that notice of said public hearing be given by publication in a local newspaper for not less than
once a week for two weeks prior to the heafing; and
WHEREAS, Agency opened the public hearing on June 20, 1995 and notice of
public hearing was published in the Chula Vista Star News on Saturday, June 1O, 1995 and
Saturday, June 17, 1995; and
WHEREAS, Community Redevelopment Law requifes that the sale of Agency
property assist in the elimination of blight; and
WHEREAS, the sale of the pfoperty to the City of Chula Vista will help eliminate
blight by keeping the office building in continuous use and occupancy.
NOW THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA
VISTA does hereby find that the sale of Agency property at 315 Fourth Avenue will help to
eliminate blight by keeping the office building in continuous use and occupancy.
BE IT FURTHER RESOLVED that the Chairman of the Agency is hereby
authorized and directed to execute the Purchase and Sales Agreement with the City of Chula
Vista for the sale of Agency property at 315 FOUfth Avenue in Chula V. ta.
PRESENTED BY: ~~~~~ 0 M B~
~^' Sr¿l~/
Chris Salomone, Executive Secretary and
Community Development Director Agency General Cou sel
IFllE'IMZT DISK XIM3l5SAlEA.RES} 6- ?--~
[BBIC,IWP5lIAGENCy\RESOSl315SAlEA.RES}
This page blank.
(;;..JV
RESOLUTION /19). t:,
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
APPROVING THE PURCHASE OF CERTAIN PROPERTY LOCATED AT 315
FOURTH AVENUE WITHIN THE TOWN CENTRE I REDEVELOPMENT PROJECT
AREA FROM THE REDEVELOPMENT AGENCY. APPROVING A PURCHASE AND
SALES AGREEMENT WITH THE REDEVELOPMENT AGENCY. AND
AUTHORIZING THE MAYOR TO EXECUTE THE SAME
WHEREAS. the City of Chula Vista wishes to purchase a certain real property
owned by the Redevelopment Agency at 315 Fourth Avenue in Chula Vista. California; and
WHEREAS, the Redevelopment Agency wishes to sell said property to the City
of Chula Vista; and
WHEREAS. a Purchase and Sales Agreement between the Redevelopment
Agency and the City of Chula Vista is being approved; and
NOW THEREFORE. THE CITY COUNCIL OF THE CITY OF CHULA VISTA does
hereby resolves as follows:
1. That the Mayor of the City of Chula Vista is hereby authorized and directed
to execute the Purchase and Sales Agreement with the Redevelopment Agency for the sale
of Agency property at 315 Foufth Avenue in Chula Vista.
2. That funds in the amount of $1,064,550 be appropriated from the
Development Impact Fee Fund to the Redevelopment Agency's Town Centre/Bayfront Fund
and that $110,450 be written off from Agency debt to the City.
PRESENTED BY:
CL.c::~
Chris Salomone
Community Development Directof
IFILE'IMZT DISK XIA'I315SALEC.RESI
IBBIC,I WP5 1 ICDUNCILIAESOSI3 1 5SALEC.AESI
6,,3/
This page blank.
(;-3;)--
REDEVELOPMENT AGENCY AGENDA STATEMENT
Item ..:L
Meeting Date 09/05/95
ITEM TITLE: PUBLIC HEARING TO CONSIDER GRANTING A
SPECIAL LAND USE PERMIT TO ALLOW A USED CAR LOT AND AN
AUTOMOTIVE SERVICE CENTER AT 801 BROADWAY WITHIN THE
SOUTHWEST REDEVELOPMENT PROJECT AREA IN CHULA VISTA
RESOLUTION /t-/¿,f MAKING CERTAIN FINDINGS AND
APPROVING A SPECIAL LAND USE PERMIT TO ALLOW A USED CAR
LOT AND AN AUTOMOTIVE SERVICE CENTER AT 801 BROADWAY
WITHIN SOUTHWEST REDEVELOPMENT PROJECT AREA IN CHULA
VISTA
L S.
SUBMITIED BY: Community Development Director'
REVIEWED BY: City Manager ~.Þ ~~ (4/5ths Vote: Yes - No-->
,1-,1 Council Referral Number: -
BACKGROUND: Mr. James Courtney et ai. are in the process of purchasing the property at 801
Broadway, former site of Southbay Chevrolet, from the Redevelopment Agency. Escrow is expected to
close on September 15, 1995. Mr. Courtney proposes to use the site for the establishment of an RV Parts
Store, a Used Car Lot and an Automotive Service Center. The RV Parts Store is a use which is allowed
under the current zoning for the site. The Used Car Lot and the Automotive Service Center, however,
require the issuance of a Conditional Use Permit, which is classified as a Special Land Use Permit when
the site is located within one of the Redevelopment Areas. The site is located within the Southwest
Redevelopment Project Area (see attached map for location). The proposed project was reviewed by the
Environmental Review Coordinator who determined that the project is exempt from environmental review
since it is a minor alteration in land use under Section 15305f of CEQA.
RECOMMENDATION: That the Redevelopment Agency hold a Public Hearing, make certain findings,
and adopt a resolution approving a Special Land Use Permit and conditions to allow the establishment
of a Used Car Lot and an Automotive Service Center at 801 Broadway.
BOARDS/COMMISSIONS RECOMMENDATION: The Southwest Proj ect Area Committee attempted
to hold a meeting on the project on August 28, 1995 but did not have a quorum (only three members
attended, five are required for a quorum'). There were also three residents adjacent to the project site
who showed up to discuss the project, and the applicant, James Courtney. The committee and residents
did discuss their concerns which centered around the following issues:
Employees and clients parking along the side streets in the neighborhood, which was a
I The nine member Southwest Project Area Committee (SWPAC) is presently short by three members with one of the six
not attending for some time, !hereby effectively leaving four vacancies. As Council may recall, action was taken to redefine
the role and function of the PAC's as part of the City's pennit streamlining efforts. In order to fonnalize !his action the City
Attorney's office, in conjunction wilh the Community Development Department, will be bringing forward the municipal code
amendment that will fonnally bring the three PAC's into the City "family"' of boards and commissions. As part of !he
ordinance, it is proposed that the SWPAC be reduced from nine members to seven members, thereby reducing !he number of
actual vacancies from three to two. Due to the pending ordinance amendment (and the seating arrangements), staff felt it would
avoid confusion by waiting until the ordinance amendment is adopled before requesting the Council to fill !he vacancies. The
amendment to !he boards and commissions ordinance should be presented before the end of September 1995.
7-/
Page 2, Item 1
Meeting Date 09/05/95
major problem while Southbay Chevrolet occupied the site.
Noise from auto repair operations.
Unsightly appearance from K Street.
There were complaints concerning the contractor for the Broadway Street widening who
used the site as a temporary storage yard for equipment and materials. However, the
contractor, having completed the Broadway work, is no longer occupying the site.
Pole signage along K Street.
Dirt and debris left over from auto repair operations blowing into the neighborhood.
A letter and petition submitted by Mrs. Breininger (790 Ash Avenue, Chula Vista), fully describing
neighborhood concerns are attached to the as Exhibits A and B. Staff and the Committee members
present felt that the complaints from residents were relevant to former business operations on the site and
the conditions recommended by staff to be placed on the Special Permit should adequately control future
operations. In addition, Jim Courtney pledged his attention to resident concerns.
DISCUSSION:
The site at 801 Broadway was acquired by the Redevelopment Agency in 1993 as part of the Chula Vista
Auto Park Project. Last year the Redevelopment Agency advertised the property for development. In
July, the Agency entered into an Purchase/Sale Agreement with Mr. James Courtney et al. for the sale
of the property. Escrow on this transaction is expected to close by September 15, 1995.
The property consists of a 3.973 acres parcel and approximately 30,798 square feet of building
improvements. These improvements include showroom and auto parts department and three auto service
bays (see copy of site plan, Exhibit C-l and C-2).
Upon acquisition of the property from the Agency, Mr. Courtney and his associates intend to use the
property to establish an RV Parts Store, a Used Car Lot, and an Automotive Service Center. The parts
store will be located in the building at the corner of Broadway and K Street, just behind the auto
showroom. The Used Car Lot will occupy the showroom and the front parking lot along Broadway. The
Automotive Service Center will be located in the three bays located toward the rear of the site and along
K Street. The Automotive Service Center will consist of independent auto shops providing specialty
including tires, brakes, body work, painting, transmissions, electrical work, etc.
The current zoning on the site is CoT (Thoroughfare Commercial). As indicated above, the RV Parts
Store is allowed under the current zoning and does not require any special permit. New car sales and
ancillary auto service is an allowed use in the CoT Zone. However, the sale of used cars and an
independent automotive service center require the issuance a Special Land Use Permit. This requires
review by the Southwest Project Area Committee and approval by the Redevelopment Agency.
Although the proposed land use is not materially different from previous use of the site, there are several
concerns which are summarized in the attached letter from a neighborhood resident and as indicated
below:
8 Noise from auto repair, body work
8 Aesthetics from Broadway and K Streets
8 Traffic and commercial parking on K and Ash Streets
City planning and design review have developed a list of conditions for issuance of the Special Permit
which address these issues. The list of conditions are attached to the resolution and include the following:
7-1-,
Page 3, Item ~
Meeting Date 09/05/95
8 Six foot block wall along K Street
8 Approval of landscaping, lighting and signage plans
8 Parking and circulating controls
A full list of conditions as attached to the resolution as Exhibit I.
City regulations require that certain findings be made before a Special Land Use Permit may be issued.
The findings are as follows:
I. That the proposed use at the particular location is necessary or desirable to provide a service or
facility which will contrjbute to the general well being of the neighborhood or the community.
The relocation of Southbay Chevrolet and Fuller Ford left an economic void in the area which
has negatively impacted many neighboring businesses. The proposed facility will provide new
business investment and vitality in the area and will compliment neighboring businesses, provide
new employment opportunities and continue to provide auto related services along Broadway.
2. That such use will not, under the circumstances of the particular case, be detrimental to the
health, safety, or general welfare of persons residing or working in the vicinity or injurious to
property or improvements in the vicinity.
Compliance with the conditions of the Special Permit will protect the general health, safety and
welfare of persons residing or working in the vicinity and will protect improvements in the
vicinity.
3. That the proposed use will comply with the regulations and conditions specified in the code for
such use. The proposed use is allowed as a conditional use in the CoT Zone. Compliance with
the proposed Special Pefmit, as conditioned, will provide compliance with regulations and
conditions in the City codes.
4. That the granting of this conditional use will not adversely affect the General Plan of the City or
the adopted plans of any governmental agency. The granting of the Special Permit, as
conditioned will not have adverse effects upon the General Plan, Redevelopment Plan and any
other adopted plans for this area.
Notices of the Public Hearing were mailed to all the residents within 500 feet of the site on August 18,
1995. The notice also appeared in the Star News edition of August 26, 1995.
FISCAL IMPACT: Sales tax and property tax increment are presented below for general information.
However, the City Attorney advises that these figures should not be considered in approving or denying
the Special Permit.
Sale of 801 Broadway to James Courtney will return this property to the property tax rolls, providing a
total of $14,000 in the first year. Under the Southwest Redevelopment Plan Tax Sharing Agreement, the
Agency will receive 60% of this sum, or $8,400.
The City will receive sales tax revenue from the sale of auto parts and equipment on the site. Initial
estimates for sales tax revenue are $40,000/year. Employment is initially estimated at 100 for all new
businesses on the site although many of these jobs may be relocations from other sites.
[FILE'\MZT DISK XIA,\80IBROAD.RPr]
7-3
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EXHIBIT A
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CHULA VISTA PLANNING DEPARTMENT
LOCATOR ~~~T' Jim Courtney PROJECTDESCRJPTlON,
ø SPECIAL USE PERMIT
PROJECT 801 Broadwa . - - .
ADDRESS, Y Request: Permission to establish an automotive
center, RV parts store ond 0 used cor lot.
SCALE, I FILE NUMBER,
NORTH 400' SUPS - 96 - 01
l' /1
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RESOLUTION ¡tJ(p f
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF
CHULA VISTA MAKING CERTAIN FINDINGS AND APPROVING A
SPECIAL LAND USE PERMIT TO ALLOW A USED CAR LOT AND AN
AUTOMOTIVE SERVICE CENTER AT 801 BROADWAY WITHIN THE
SOUTHWEST PROJECT AREA COMMITTEE IN CHULA VISTA
WHEREAS, Mr. James Courtney et al. proposes to establish a Used Car Lot and an
Automotive Service Center at 801 Broadway within the Southwest Redevelopment Project Area
in Chula Vista; and
WHEREAS, the proposed use requires making certain findings and granting a Special
Land Use Permit by the Redevelopment Agency pursuant to the Southwest Redevelopment Plan;
and
WHEREAS, the Southwest Project Area Committee reviewed the proposed project on
August 28, 1995; and,
WHEREAS, certain conditions have been established for the Special Permit in order to
protect the health, safety, general welfare of residents and property improvements in the area;
and,
WHEREAS, the Environmental Review Coordinator reviewed the proposed project and
found it categorically exempt from environmental review pursuant to Section 15305f of the
California Environmental Quality Act guidelines.
NOW, THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF
CHULA VISTA does hereby resolve as follows:
Finding I
That the proposed use at the particular location is necessary or desirable to provide a
service or facility which will contribute to the general well being of the neighborhood or
the community.
The relocation of Southbay Chevrolet and Fuller Ford left an economic void in the area
which has negatively impacted many neighboring businesses. The proposed facility will
provide new business investment and vitality in the area and will compliment neighboring
businesses, provide new employment opportunities and continue to provide auto related
services along Broadway.
Finding 2
That such use will not under the circumstances of the particular case be detrimental to
the health, safety, or general welfare of persons residing or working in the vicinity or
injurious to property or improvements in the vicinity.
J-- ;2 3
RESOLUTION XXXX
Page 2
Compliance with the conditions of the Special Permit will protect the general health,
safety and welfare of persons residing or working in the vicinity and will protect
improvements in the vicinity.
Finding 3
That the proposed us will comply with the regulations and conditions specified in the
code for such use.
The proposed use is allowed as a conditional use in the C-T Zone. Compliance with the
proposed Special Permit, as conditioned, will provide compliance with regulations and
conditions in the City codes.
Finding 4
That the granting of this conditional use will not adversely affect the General Plan of the
City or the adopted plans of any governmental agency.
The granting of the Special Permit, as conditioned will not have adverse effects upon the
General Plan, Redevelopment Plan and any other adopted plans for this area.
NOW, THEREFORE, BE IT FURTHER RESOLVED that the Redevelopment Agency
of the City of Chula Vista hereby grants a Special Land Use Permit to Mr. Courtney et al for
the establishment of a Used Car Lot and Automotive Service Center at 801 Broadway within the
Southwest Redevelopment Project Area, subject to the conditions attach hereto as Exhibit A.
Submitted by 6ft~
PÀ 5~/
Chris Salomone Bruce M. Boogaard
Community Development Director Agency General C n el
[FILE;IMZT DISK XIA;\80IBROAD.RES]
7/J-tf
" EXHIBIT A
1. Conditional Use Permit Conditions:
USED CAR LOT CONDITIONS
a. Adequate access and internal circulation to serve
customers shall be maintained within the auto display
area at all times.
b. Auto display area shall be paved per City standards.
c. Landscape and irrigation shall be maintained as approved
by the Design Review Committee.
d. Business identification signs for the used car lot are
limited to the area and location specified in the Planned
Sign program for the automotive center
e. Obtain an industrial waste discharge permit as required
by the Chula Vista Municipal Code.
RV STORAGE CONDITIONS
f. Pursuant to Section 19.58.400, approval of the R. V.
storage is for a period not to 5 years but may be
extended with approval by the Zoning Administrator.
g. No vehicles over 14 feet in height shall be permitted on
the site.
h. The Conditional Use Permit shall allow for the operation
of a recreational vehicle storage yard, as provided for
in Section 19.58.400 of the Chula Vista Municipal Code.
Stðrage shall be limited to recreational vehicles, as
well as a limited number of automobiles, trucks, and
other similar vehicles, which are similar to and no more
objectionable than recreational vehicles. All vehicles
shall be operable, and no dismantling or repair work
shall be permitted on site. The applicant shall provide
a current list of types of vehicles which are intended to
be stored on site, which shall be subject to the review
and approval of the Director of Planning for conformance
with this condition.
i. The hours of operation of the facility shall be limited
to the hours between 7 a.m. until 7 p.m.
1-)5
j. The applicant shall utilize a standard rental or lease
agreement for all space rentals, which shall include the
following information relative to restrictions contained
in the Conditional Use Permit:
Types of vehicles which are allowed to be stored on
the site.
Height restrictions on vehicles within the
facility.
Other use restrictions.
k. All four sides of the R. V. storage area shall be screened
from view. A screening solution shall be submitted to
staff prior to installation.
1. R.V. vehicles shall not be advertised for sale at this
location.
m. A turn around area shall be provided at the end of the
dead end drive.
n. Business identification signs shall be limited to the
automotive center's freestanding sign.
o. The storage of vehicle parts or any other material shall
not be permitted.
p. A report shall be filed with the City on an annual basis
by the applicant, as required pursuant to Section
19.58.400 of the Chula Vista Municipal Code. the report
shall include the following:
A copy of the standard space rental or lease
agreement, referenced in Condition No. 7, and
verification that this agreement has been utilized
for all space rentals during the previous year;
Verification of property maintenance in accordance
with conditions of approval (e.g. photographs of
site, copy of contract for landscape maintenance);
Any other information which the City deems
necessary and reasonable to determine compliance
with the conditions of the Conditional Use Permit,
as determined by the Director of Planning.
q. A lighting plan addressing the performance standard
section of the Municipal Code (19.66.100) shall be
submitted to the Planning Department for review and
approval.
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AUTO REPAIR SHOPS
r. The hours of operation shall be limited to the hours
between 7:00 a.m. and 7:00 p.m.
s. All work shall be conducted under an enclosed building.
t. Storage of materials, chemicals, ports and inoperable
vehicles shall be inside the building.
u. Vehicles awaiting completion shall be parked in
designated parking stalls. Parking and internal
circulation shall be clear from obstruction at all times.
v. This permit shall be subject to any and all new,
modified, or deleted conditions imposed after approval of
this permit to advance a legitimate governmental interest
related to health, safety or welfare which City shall
impose after advance written notice to the permittee and
after the City has given to the permittee the right to be
heard with regard thereto. However, the City, in
exercising this reserved right/condition, may not impose
a substantial expense or deprive Permittee of a
substantial revenue source which the Permittee can not,
in the normal operation of the use permitted, be expected
to economically recover.
w. This conditional use permit shall become void and
ineffective if not utilized within one year from the
effective date thereof, in accordance with Section
19.14.260 of the Municipal Code. Failure to comply with
any condition of approval shall cause this permit to be
reviewed by the City for additional conditions or
revocation.
2. Design Review Conditions of Approval:
a. Parking facility shall be designed using the following
standards:
Standard size 9' X 19'
Compact size 71/2' X 15'
Handicap 14' X 19'
Vehicle backup area for all sizes 24'
b. Parking stall length shall be reduced to 17 ft. to allow
the planting strips or walks to serve as wheel stops.
7- 'J Î
c. The parking required for the project shall be as follows:
Automotive repair shops = 44 spaces
R.V parts sales = 15 spaces
Used car lot = 5 spaces
R.V. Storage = 3 spaces
d. Parking shall be located behind the required 10 ft:
landscape buffer area.
f. A layout of the auto display area showing internal
circulation and customer parking in relation to displayed
vehicles shall be submitted to the Planning Department
prior to issuance of building permits.
g. A 12 X 19 vehicular turn around area shall be provided at
the end of the parking facility located on the east side
of building 4.
h. The east "K" Street driveway shall be deleted.
i. Revised site plan shall show the existing landscaping
strip and tree cut outs along "K" Street.
j . A 20 ft. long driveway throat shall be provided for the
auto display area.
k. The driveway pocket shown on the east side of the auto
sales building does not appear to serve any purpose.
Landscaping could be incorporated here to enhance this
part of the complex.
1. A 6'X 8'X 5' high masonry trash enclosure shall be
provided for each building.
m. The trash enclosure design shall feature metal frame and
face doors and matching color and materials composition.
n. A 6 ft. high zoning wall shall be retained and or
installed along the èast property line.
o. The proposed 6 ft. high masonry wall along the north
property line shall be located behind the 10 ft. building
setback line.
p. A landscape and irrigation plan shall be submitted to the
Planning Department prior to issuance of any building
permit.
q. The proposed freestanding sign shall have no more than 5
tenants or four tenants and the name of the Automotive
Center.
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r. A detailed sign program containing ínformation about each
type of sign to be permitted in the center as well as the
freestanding sign construction and design details should
be submitted with revised drawings.
3. Comply with the following Chula Vista Municipal Code
requirements:
Payment of sewer capacity, traffic signals and
development impact fees.
Obtain a separate permit for work performed in the right
of way.
Public improvements include, but are not limited to the
following:
Install two - 150 Watt HPSV street lights along "K"
Street.
Comply with all requirements of the Chula Vista Fire
Department to the satisfaction of the Fire Marshal.
Comply with all requirements of the Chula Vista Building
and Housing Department to the satisfaction of the City's
Building Official.
Failure to use this permit within one year from the date of this
letter shall cause the permit to become null and void unless a
written request for an extension is received and granted prior to
the expiration date.
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CllY OF
(HUlA VISTA
COMMUNITY DEVELOPMENT DEPARTMENT
NOTICE OF
PUBLIC MEETING AND PUBLIC HEARING
NOTICE IS HEREBY GIVEN that a Public Meetin!! and a Public Hearing will
be held by the Southwest Project Area Committee and the Redevelopment Agency, respectively,
to consider granting a Special Land Use Permit to Mr. James Courtney et aI for the establishment
of a Used Automobile Sales Lot and other Auto Service Uses at the property located at 801
Broadway (former site of Southbay Chevrolet) in the City of Chula Vista (see attached map).
THE PUBLIC MEETING WILL BE HELD BY THE SOUTHWEST PROJECT AREA
COMMlTI'EE ON MONDAY, AUGUST 28,1995 AT 4:30 p.m. in Conference Room 1,
Public Services Building, City HaD, 276 Fourth Avenue, Chula Vista at which time and
place any interested person may appear.
THE PUBLIC HEARING WILL BE HELD BY THE REDEVELOPMENT AGENCY ON
TUESDAY, September 5, 1995 at 4:00 p.m. following the City Council meeting in the
Council Chambers, Public Services Building, City Hall, 276 Fourth Avenue, Chula Vista,
at which time and place any interested person may appear.
Copies of the related documents are on file in the office of the Director of CommuIÙty
Development.
You may present any information on this matter at the public hearing or in written
correspondence delivered to the CommuIÙty Development Department, 276 Fourth Avenue,
Chula Vista at or prior to the public hearing.
Any petitions to be submitted to the Agency must be received by the Community Development
Department office no later than 5:00 p.m. one (1) day prior to the hearing date. If you wish to
challenge the Agency's action on this Special Land Use Permit in court, you may be limited to
raising only those issues you or someone else raised at the public hearing described in this.notice,
or in written correspondence delivered to the Agency at or prior to the public hearing. .
If you have any questions or need additional information, please call Miguel Z. Tapia in the
Community Development Department at 691-5291.
~ ~
Chris Salomone
Community Development Director
Date: Au!!Ust 17. 1995
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276 FOURTH AVE/CHULA VISTA, CALIFORNIA 91910/(619} 691-5047
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CHULA VISTA PLANNING DEPARTMENT
LOCATOR PROJECT Jim Courtney PROJECTDESCRlPllON,
C) APPlICANT, SPECIAL USE PERMIT
PROJECT 801 Broadwa . - . -
ADDRESS; Y Request: PermIssion to establish on outomohve
center, RV ports store and a used car lot.
SCALE, I FILE NUMBER, - ,,'
NORTH 400' SUPS - 96 - 01
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