HomeMy WebLinkAboutAgenda Packet 1993/08/17
. ". declare under penalty of perjury that I am
employed by the CIty of Chula Vista in the
Office of the Cit., Clerk and that I posted
this Agenda/Notice on the Bulletin Board at .
Tuesday, August 17,1993 the pUbl~r;jF;.JBu'ldin~ and at City Hal1'on Council Chambers
6:00 p.m. DATED, -' SIGNED &1 ~.. Public Services Building
ReltUlar Meetin\! of the Ciev of Chula Vista lev Council
CALL TO ORDER
1.
ROLL CALL:
Councilmembers Fox -' Horton -' Moore -' Rindone -' and Mayor
Nader _
2. PLEDGE OF ALLEGIANCE TO THE FLAG. SILENT PRAYER
August 2, 1993 (Special Meeting of the City Council) and August
10, 1993 (City Council Meeting)
3.
APPROVAL OF MINlffES:
4. SPECIAL ORDERS OF THE DAY:
a. Recognition of foreign exchange students (Lions Youth Exchange).
b. Proclain1ing Saturday, October 9, 1993 as "SWEATER SATIJRDAY" . The Proclamation
declaring Saturday, 10/9/93 as .SWEATER SATURDAY" in the City will be presented to a
representative from the San Diego Gas & Electric Company.
CONSENT CALENDAR
(Item 5 through 9)
The staff recommendations regarding the following items 1isted undo the Consent CaIendm will be entlI:ted by the
Council by one motion without discussion unless a Councilmember, a member of the publk or CiIy staff requests
thot the item be pulled for discussion. If you wish to speak 011 one of these items, p1eJJse fill out a "Request to
Speak Form" available in the lobby arul submit it to the CiIy 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 Board arul Commission
Recommendations arul Action Items. Items pulled by the publk will be the first items of business.
5. WRITTEN COMMUNICATIONS: None submitted.
6.
ORDINANCE 2564
AMENDING MUNICIPAL CODE SECllON 5.54.090 (INSURANCE
REQillRED) OF CHAPTER. 5.54 (TAXICABS) TO REDUCE THE AMOUNT
OF INSURANCE FROM $500,000 TO $300,000 AND TO AMEND THE
MINIMUM CRITERIA FOR FINANCIAL STRENGTH OF TAXICAB INSURERS
(second readin\! and adoption) - The ordinance will reduce insurance
requirements for taxicab operators from $500,000 to $300,000. Staff will
begin reviewing selected insurance policies to ensure compliance with the
Code. Staff recommends Council place the ordinance on second reading
and adoption. (Director of Personnel)
Agenda
7.
RESOLUTION 1n19
8.
RESOLUTION 17220
9.
REPORT
-2-
August 17, 1993
GRANTING AN EASEMENT TO 1HE SWEElWATER AlITHORl1Y FOR
ELECfRlCAL AND TELEMETRY CONDUIT TIIROUGH CI1Y OPEN SPACE
IN TERRA NOVA, AND AlITHORlZING 1HE MAYOR TO EXEClITE 1HE
EASEMENT ON BEHALF OF 1HE CIlY - In 1990, the Sweetwater Authority
submitted a request to obtain an easement through an open space lot to
install a conduit in which to connect electrical and telemetry wires
between its reservoirs and telemetry facility adjacent to the water tank in
Terra Nova. After beginninl1 to process the easement dedication, the
Authority advised that the project was put 'on hold'. Overlooking the fact
that the City never followed through with the easement, Sweetwater
Authority completed its project and only recently discovered there was no
easement. The City has again been asked to grant an easement. Staff
recommends approval of the resolution. (Director of Public Works and
Director of Parks & Recreation)
AFFIRMING 1HE TRIAL TRAFFIC REGULATIONS - SCHEDULE ill -
PARKING PROHIBITED AT AlL TIMES ON CERTAIN STREETS - On
4/21/92, a Trial Traffic Regulation establishing a parking prohibition in
the Point Robinhood Subdivision was implemented pursuant to the
provisions of Section 10.12.030 of the Municipal Code. Signs indicating
the prohibition were installed on 9/25/92. Staff recommends approval of
the resolution. (Director of Public Works)
REQUIREMENTS FOR DEVELOPMENT OF AN INTERMODAL SURFACE
TRANSPORTATION EFFICIENCY Acr (lSTEA) GRANT PROPOSAL FORAN
ELECfRlC OR STEAM TRAIN ALONG 1HE BAYFRONT - Mr. Sam Judd
presented an offer to Council to assist the City in the preparation of an
lSTEA grant proposal for a railroad along the Bayfront. Council referred
the issue to staff with a direction to spend up to ten hours work on it.
Staff recommends Council accept the report. (Director of Public Works)
* * END OF CONSENT CALENDAR * *
PUBUC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES
The foUowing items have been advertised and/or posted as publk: hearings as required by law. [fyou wish to speak
to any item, please fill out the 'Request to Speak Form' available in the lobby and submit it to the City Clerk prior
to the meeting. (Complete the green form to speak in favor of the staff recommendation; complete the pink form
to speak in opposition to the staff recommendation.) Comments are 1imiIed to five minutes per individulll.
10.
PUBUC HEARING
A.
RESOLUTION 17221
B.
RESOLUTION 17223
C.
RESOLUTION 17224
AMENDING 1HE CITY'S 1992/93 HOME PROGRAM DESCRIPTION - South
Bay Community Services (SBCS) is a local, non-profit, public benefit
corporation providing a variety of services to youth and families in the
South Bay with emphasis in Chula Vista. SBCS is in escrow to purchase
a 14-unit apartment building at 31 Fourth Avenue which they plan to
develop into a short-term housing facility for homeless families. SBCS has
requested a grant/loan of $610,146 of HOME federal housing funds for
acquisition and rehabilitation of the apartment building. Staff recommends
approval of the resolutions. (Director of Community Development) 4/Sth's
vote required.
AMENDING 1HE CITY'S HOME PROGRAM DESCRIPTION TO
REAlLOCATE FUNDS FOR ACQUlSmON AND REHABIUTATION OF
SUBSIDIZED RENTAL PROPERlY
APPROVING AHOUSING COOPERATION AGREEMENT WITH SOlITH BAY
COMMUNllY SERVICES FOR 1HE DEVELOPMENT OF A SHORT-TERM
HOUSING FACIUlY FOR HOMELESS FAMIUES AND/OR VERY LOW
INCOME FAMIUES AT 31 FOURTH AVENUE AND AlITHORlZING 1HE
MAYOR TO EXEClITE SAID AGREEMENT AND ASSOCIATED LOAN
DOCUMENTS
APPROPRIATING FUNDS NOT TO EXCEED $610,146 FOR A LOAN TO
SBCS FOR ACQUlSmON AND REHABIUTATION OF A 14-UNIT
APARTMENT BUILDING AT 31 FOURTH AVENUE
Agenda
.3-
August 17, 1993
ORAL COMMUNICATIONS
This is an opportunity for the general public to address the City Council 011 any subject mntter within the Council's
jurisdit:tion that is not an item 011 this agend4 (State law, however, generally prohibits the City Council from
taking m;tion 011 any issues not incluiWl 011 the posted agend4) If you wish to oddress the Council 011 such a
subject, pkase complete the yeJJow "Request to Speak Under Oral Communications Form" available in the lobby
and submit it to the City CInk prior to the meeting. Those who wish to speak, pkase give your II01IIe and address
for record pwposes and faIlaw up Ddion. Your lime is limited to three minutes per speaker.
BOARD AND COMMISSION RECOMMENDATIONS
This is the lime the City Council will consider items which have been forwartkd to them for consideration by one
of the City's Boards, Conunissions and/or Committees.
None submitted.
ACTION ITEMS
The items listed in this section of the agenda ore expected to elicit substanliaI discussions and deliberations by the
Council, sIi1ff, or members of the general publU:. The items will be considered individually by ~ Council and staff
recommendations may in certain cases be presented in the a1JemaIive. Those who wish to speak, please fill out
a "Request to Speak" form available in the lobby and submit it to the City Clerk prior to the meeting. Public
comments are limited to five minutes.
11. RESOLUTION 17222 GMNG NOTICE OF INTENT TO GRANT A FRANCHISE TO LAIDLAW
WASTE SYSTEMS, INC. FOR RESIDENTIAL YARD WASTE RECYCJJNG
COlLECTION SERVICES, INC. FOR RESIDENTIAL YARD WASTE
RECYCJJNG COlLECTION AND SETTING A PUBUC HEARING THEREON -
At the 6/22/93 meeting, Council approved in concept a Yard Waste
Recycling Program and directed staff to negotiate with Laidlaw to develop
a collection service franchise. The report describes the Yard Waste
Recycling Program and with Council approval of the resolution, staff will
begin the Charter required process of giving the notice of intention to grant
the franchise and set fees for yard waste recycling collection services,
followed by a public hearing on the first reading of the proposed franchise
ordinance. Staff recommends approval of the resolution and setting a
public hearing for 9/7/93 at 4:00 p.m. to consider granting said franchise
and setting fees therefore. (Administration)
12.A REPORT SOUD WASTE ISSUES. An oral update report will be given by staff.
B. REPORT ALTERNATIVE WASTE MANAGEMENT - At the 8/10/93 meeting, Council
requested staff look at alternative trash solutions. Staff recommends
Council continue the item to 8/24/93 to allow staff time to gather
additional information. (Deputy City Manager Krempl)
ITEMS PUJJ.ED FROM THE CONSENT CALENDAR
This is the lime the City Council will discuss items which have been removed from the Consent Calendar. Agenda
items puIkd at the request of the public will be considered prior to those pulled by Coruu;iJmembers. Public
comments ore limited to five minutes per individual
Agenda
.4-
August 17, 1993
01HER BUSINESS
13. crIY MANAGER'S REPORT{S)
a. Scheduling of meetings.
14. MAYOR'S REPORT{S)
15. COUNCIL COMMENTS
ADJOURNMENT
The City Council will meet in a closed session immediately following the Council meeting to discuss:
Instructions to negotiators pursuant to Government Code Section 54957.6 - Chula Vista Employees
Association (CVEA), Western Council of Engineers (WCE), Police Officers Association (FOA) ,
International Association of Fire Fighters C1APF), Executive Management, Mid-Management, and
Unrepresented. Continued from the meeting of 8/10/93.
Pending or imminently pending litigation pursuant to Government Code Section 54956.9 - City of
Chula Vista vs. County of San Diego relating to trash surcharge.
Pending or imminently pending litigation pursuant to Government Code Section 54956.9 . City of
Chula Vista vs. various insurance companies regarding collection of clean-up costs on the paint pit.
Potential litigation pursuant to Government Code Section 54956.9 . City of Chula Vista vs. County
of San Diego regarding booking fees.
Pursuant to Government Code Section 54957 - Evaluation of performance of personnel.
Pending litigation pursuant to Government Code Section 54956.9 - City of Chula Vista vs. Aptec.
The meeting will adjourn to (a closed session and thence to) the Regular City Council Meeting on August
24, 1993 at 6:00 p.m. in the City Council Chambers.
A Joint Meeting of the City CouncillRedevelopment Agency will be held immediately following the City
Council meeting.
LIONS YOUTH EXCHANGE
COUNCIL MEETING
AUGUST 17, 1993
Certificates of Appreciation
1. Chiho Ito
2. Nina Higai
3. Terumi Nagoto
4. Kazumi Kurumada
5. Nagi Tasiro
6. Yoko Arakawa
7. Takashi Nanasawa
8. Daisuke Makino
9. Kazushi Okada
10. Ayumi Murakami
11. Shigo Kaga
74- ~ /
CITY COUNCIL MEETING
AUGUST 17,1993
Mayor,
Please add the following under "Special Orders of the Day", Item 4a.
at tonight's City Council meeting:
SISTER CITIES
These individuals will be rec~iving certificates of appreciation:
1. Akiko Sato
2. Mayumi Okutsu
3. Yuko Ishino
4. Takuya Fukumoto
J/4--:2
COUNCIL AGENDA STATEMENT
Item
J/b
MeetingDate 8/17/93
ITEM TITLE: proclamation - Proclaiming Saturday, October 9, 1993 as
SWEATER SATURDAY
SUBMITTED BY: Mayor Tim Nader
(4/5ths Vote: Yes No xX)
The proclamation declaring Saturday, october 9, 1993 as SWEATER SATURDAY in
the City of Chula Vista will be presented to a representative from the San
Diego Gas & Electric Company.
Form A-113 (Rev. 11/79)
Lfb ;1
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COUNCIL AGENDA STATEMENT
ITEM TITLE:
ITEM ~ .~/
MEETING DATE A~~93 P;~;J
r\\0~
.25, U s>0<(
Ordinance 7 Amending Section 5.5~~of Chapter 5.64
(Taxicabs) of the Chula Vista Munici \tode to Reduce the
Amount of Insurance From $500,0 $300,000 and to amend
the Minimum Criteria for Fina~$' rength of Taxicab Insurers.
~~(JJ
DIRECTOR OF PERSONNEL eft-,
,~
CITY MANAGER 10 )1 !
SUBMITTED BY:
REVIEWED BY:
Referral #27?>?-
(4/5th Vote: Yes_ NO.'!i.1
At the August 3, 1993 Council meeting, this Ordinance was presented for first
reading. Unfortunately, there was an error in the staff report and Ordinance.
Therefore, the corrected Ordinance is being presented at this meeting for first reading.
RECOMMENDATION:. Place the Ordinance on first reading.
BOARD/COMMISSION RECOMMENDATION: N/A
DISCUSSION:
When this Ordinance was presented for first reading last week, it contained an error.
The intent of the Ordinance was to revise insurance limits for taxicab operators to
mirror the requirements of the Metropolitan Transit District Board (MTDB). The
Ordinance incorrectly noted the insurance limits as $50,000 property damage,
$150.000 oer iniurv or death and $300,000 per occurrence or a $300,000 combined
single limit. The Ordinance and staff report should have read $50,000 property
damage, $100.000 oer iniurv and $300,000 per occurrence or a $300,000 combined
single limit. This is not considered a significant correction, however, it will delay the
effective date of the Ordinance by one week.
FISCAL IMPACT: None
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TInS PAGE BlANK.
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':YO'?
AN ORDINANCE AMENDING SECTION ~Q5:54.090
(INSURANCE REQUIRED) OF C~~~R 5.54
(TAXICABS) TO REDUCE THE AMi!:~F INSURANCE
FROM $500,000 TO $300,000 TO AMEND THE
MINIMUM CRITERIAL FOR Fb~ IAL STRENGTH OF
TAXICAB INSURERS ~v,O
ORDINANCE NO.
rl5&.'I
WHEREAS, in light of recent changes in the insurance
industry as it affects taxicabs, it has become necessary for the
City to reconsider its insurance requirements on taxicabs.
NOW, THEREFORE, the City Council of the City of Chula
Vista does hereby ordain as follows:
SECTION I: section 5.54.090 (Insurance Required) of
Chapter 5.54 (Taxicabs) is hereby modified to read as follows:
Sec. 5.54.090
Insurance Required.
e
It is unlawful to operate any taxicab 7ehiele as defifted
ift ~his ehap~er unless there shall be on filee with the
peliee Chief City of Chula vista a currentlY valid
certificate of insurance executed and delivered by a
company atitherieed te earry eft admitted bv the California
Deoartment of Insurance: or. if not admitted in
California. a comoanv which aft iftsaranee sHsiness ift the
state \lhieh ee'fllllaftY shall have a pelieyhelder' s ratdftlj ef
A-H a Best's Kev Ratina Guide ratina of "A. Class V or
better as listed ift the Bes~'s Key Ratiftlj Qtiide or which
shall otherwise meet with the aooroval of the city
certifvina that the ~erllls ef \ffiieh such insurance company
extends Business Automobile Liabilitv Insurance coveraae
to the ooerator and all of the aaents and emolovees of
said ooerator. ass\:lftLee rea13e}\aieilit.~- fer iftj"tlriea 15.e
pcrSBRS SF pre13ert.:f ea1:1aea. hi- the e~eratieft af sash
':e1\1618 ift t.he fel1s\:iRg ameuRt.e. The eertifiea'te shall
ahe" iRsuraaee 1ft ~fte fells\liJ\g 8m8unt.SI
~. eRe R1:1Rarea ~e1:1SaRd. dellars pri~ary eeverage fer
prepert.y damage per eeel:1rreReCI t.Jt."e hundred fift.~-
theuaaRs dellars primary eS7erage fer easily injary
BE" death ~e afty eRe parseR 1ft any eRe perseR 1ft aay
eRe aeeideR~, eRa fi7e saBsrea ~haHSafta sellars per
eeearreftse fer primary ee7cra~e fer seaily injHry
sr death ift a eemsinea eiBgle limi~ pelieYI
B.
In lieu ef 'the in5aranee ee~:erage, a eer~ifieEl
epera~er may previae preef af self insaraftse aBser
c.xietiJ\g state regalatisl\B aaef!!aate t.e meet the
limitatdefts set fer1>h ift this ~ea,,"",("4 (J/.4~J
1 6-1 ,/s tlhWi/... g/ltJ ~
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.
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Tae eer'Eifiea~e BBal! 198 ell a s~aRaar. "aasara"
ferm aRB sRall prs7iae fer aU'Eema~ie ~eB day
'FritteR J\stifieat:.ieft lay 'the iRSaral\ee sempeR)'" t.e
'Eke eity as a eertifieat:.e helder, sf aRY iRs~raRee
pelie) eaneellatisR er BaaBges ift severage,
~
B. The iRsuraRee sever age must:. se eRe sf t~e ~i~esl
eaais, er
SECTION
full force on the
su
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Presented by
ordinance shall take e
day from a
P oved i1 t
Bruce M. Booga
City Attorney
in
Candy Boshell,
Personnel
C:\OR\taxicab iuurmc:c
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COUNCIL AGENDA STATEMENT
ITEM TITLE:
(,
./
MEETING DATE ~uM"'3. 1~
8/J~'7J
Ordinance ';'.5"" r Amending Section 5. f Chapter
5.64 (Taxicabs) of the Chula Vista Muni . ae to Reduce the
Amount of Insurance From $500, 00,000 and to amend
the Minimum Criteria for Fi trength of Taxicab Insurers.
ITEM
SUBMITTED BY: DIRECTOR OF PERSONNEW
J\ I Referral #2782
REVIEWED BY: CITY MANAGER..)GtIq<.O'V.~ (4/5th Vote: Yes_ NolU
At the July 13, 1993 meeting, taxi operator, 0.0. Hedrick, asked the City Council to
consider lowering the insurance requirements for taxis operating in the City.
Amending the Code as described in this Ordinance will bring the insurance
requirements more in line with what other public agencies require.
Some concern was expressed that other operators may not be complying with the
current $500,000 insurance limit requirement. Currently, staff does not review
insurance policies, however, given the allegations of possible fraud by an operator, it
is in the City's best interest to randomly examine several policies to ensure
compliance with our Code.
RECOMMENDATION:
Place the Ordinance on first reading.
BOARD/COMMISSION RECOMMENDATION: N/A
DISCUSSION:
The Municipal Code insurance requirement for Taxicabs should be revised to lower
insurance limits and incorporate other changes which are reflective of the City's
standard. The current requirement calls for split levels of coverage; $100,000 for
property damage, $250,000 for single injury or death and $500,000 per occurrence,
or a $500,000 combined single limit.
One operator has complained that this level of insurance is difficult to obtain and
expensive and has asked the City to lower it's limit to that of the Metropolitan Transit
District Board (MTDB). MTDB oversees taxicab operations in seven cities; San Diego,
EI Cajon, Imperial Beach, Lemon Grove, Poway, Santee and National City. MTDB
requires $300,000 combined single limit or split levels of $50,000, $150,000 and
$300,000. The Risk Manager's professional opinion is that $300,000 is adequate
and lowering the City's requirement will ease some of the financial pressure on
taxicab operators in Chula Vista.
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Other proposed changes include:
-...
1. Notice of cancellation to be made to the City in 30 days instead of 10 days.
2. Requiring taxicab operators to prove financial responsibility if they obtain an
insurance policy with a self-insured retention (SIR).
3. Requiring taxicab insurers to be admitted by the California Department of
Insurance to do business in California; or, if not admitted, have a Best's Key
Guide rating of A-V or better.
When an insurance company is admitted to do business in California, it means
that policy holders can have claims paid from the California Insurance
Guarantee Assessment (CIGA) Fund if the insurance company goes bankrupt.
Many major insurance companies are not admitted in California. In keeping
with MTDB's standard, staff recommends that non-admitted insurance
companies have a Best Key Guide Rating of A-V or better. The City requires
an A-V rating for all insurers in contractual arrangements. A-V indicates
excellent overall performance of the company and policyholder assets of
$10,000,000 to $25,000,000.
In Chula Vista, as in most public agencies, proof of insurance is provided by a
certificate of insurance, and when the City is the additional insured, we require a
policy endorsement. Unless there is a specific problem, staff would not normally
review insurance policies. However, given the allegation of potential fraud, and the
fact that insurance certificates do not require full disclosure of the underlying policy,
it is in the City's best interest to randomly review several policies of taxicab operators
now to ensure their compliance with the Code. Staff believes that random sampling
will create an atmosphere wherein operators are more likely to comply with the Code.
"'"'
If Council approves the Ordinance change, it will become effective 30 days after the
second reading, or September 9, 1993. Mr. Hedrick's insurance policy expires on
August 15, 1993. Therefore, staff recommends that we administratively allow Mr.
Hedrick and other operators, if necessary, to temporarily not comply with the higher
limit in the Code if their policy expires between now and September 9, 1993. They
would, however, still have to maintain the $300,000 limit.
FISCAL IMPACT:
There will be some unidentified administrative costs associated with reviewing
insurance policies.
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W~-?
Red Cab Co. of San Diego, Inc.
A>. HEDRICK, PRES. I!IlECEIVED
Wi. HEDRICK, VICE PRES. "
P. O. Box 437240
SAN YSIDRO, CALIF. 92143
PHONE (619) 428-1107
TO:
~orn:
5IJBtECT :
NlA</(J)'( iJI'f\ rJr-.\)E~
(!;). D. H EDRIC/<
'93 JJl 21 P3 ~4
CITY OF CHULA VISTA
CITY CLERK'S OFFICE
.JU N 16 1993
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5.54.080 CcniBate-CallCcll&tiOD as cUtifjed opentl:lr.
Mer the SeMce tor Which a ceniBute is aranted ill this chapter is discontinued, or f( the CeniB~ci
PUlODsdb or discontln\les his or its business, except as provided In this chapter, the ceniBcate &ran~ed
under this chapter shall be automatically cancelled and shall be reissued only In accordance with the
provisions o{ this chapter, .
Each certifkate issued pursuani: to the provisions o{ this chllpter is. separate and cU$tinct and shall be
trans{erabl~ from the penon to whom issued o,)y Yipom renewed to another penon upon the approval o{
the Police Chie~ provided, however, that where a certi/icate II Issued pursuant to t4~ provisions of this
chapter to a fonn o{ legal entity wherein control is evidenced by shares ofsto.ck or such other evidence of
ownenhlp (i.'lc1uding but not necessarily limited t? a corporation, pannenhIp, aJoint veiuure, a Joint stock
company, or a business trust) and the majority"interest in said entity Is transferred from that entity to'
another penon or entity, said transfer, whether .vol!lhtlly, by operation of law or otherwise shall be made
only upon the approval of the Police Chief. The ipplicatlon {o~ the transfer o{ said certificate shall certify
that the owner of said certificate has notified the proposed transferee o{ the requirements o{ this chapter
pertaining'to the transfer of said certi/icate; and whenever such application {or a ttansfer o{ certificate is
made as provided for in this chapter, the Police Chie{ shall cause an investigation to be made. 'COrd. 2408
II (Part), 1990; Ord. 2003 62 (Part), 1982).
.'
5.54.090 Insurance required.
It is unlawful:to operate any vehicle as defllled in this chapter unless there shall be filed with the
Police Chief a certi/icate of insurance executed and delIvered by a company authorized to cany on an
insurance business in the state, which company shall have a policyholden rating of A.IX or better as listed
in Best's Key Rating Guide, the terms of which such insurance company assumes responsibility for inJuzies
to PCl'lons or property caused by the. operation o{ such vehicle In the foUOwi!1g amounts. The certi/icate
. shall show insurance in the following amounts:
A. Ont hWndred,thousand dollars primlly coverage fo ro ~ny dam'!ie per occurrence; two hlUldred
Iil'iY thousand dollars primlly coven-ge m'l)'odily inj 0 0 an one on in anyone person
in anyone accident, and five hundred tli'ousand dollm per occurrence or primlly coverage {or bodily
injury or death in a combined single limit policy;
""""
--
B. In lieu o{ the insurance coverage, a certified operator may provide proof of self.insurance under
existing state regulad~ns adequate..to meet the limitations set forth in.this chapter;
C. The certificate shall be on a standa:rd .accord. {om and shall provide for automatic ten-day. Written
notificadon by the insurance company to the city as a certificate holder, of any insurance policy
cancellation or changes in coverage;
D. The i~urance coverage must be one of two !)'pes:
I.
A one.year policy (although the policy could have payments made on a Jess than annual basis),
or ,
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(R 11/91)
.
.55 Imperial Avenue. Suite 1000
San Diego. CA 92101.7490
(619) 231-1466
FAX (619) 234.3407
Vehicle Seating Capacity Bodily Injury Property Combined
(including driver) per person per occurrence Damage Single Lim" ....
II passengers or less $100,000 $ 300,000 and $50,000 or $ 300,000
10 to 15 passengers 100,000 1,500.000' 50,000 1,500.000'
16 passengers or more 100,000 5,000,000' 50,000 5,000,000"
PARATRANSIT VEHICLE INSURANCE REQUIREMENTS
. TABLE 1
Minimum Required Public Liability Iniurance
Nole: Aggreg"e Ilml" "e nol permlll,d.
TABLE 2
Specific Inlormatlon Required lor Certlllcates 01 Insurance
1. The lull name of the insurer, who must be approved in advance by the Paratrans" Regulatory Adminlstration.(see Table 4)
2. The nama and address 01 the Insured, who must be the perm" holder.
3. Tne insurance policy number. Binders andlor application numbers are not acceptable.
4. The type(s) and IIm"(s) olliabil"y coverage.
5. The vehicle description, identification number and medallion number of each insured vehicle.
6. The effeelive dates of the Insurance policy.
7. The certificate issue date.
a. A statement that the insurer shall notily MTDB in writing by registered mail at lhe address on this lellerhead at
least 30 days prior to cancellation or termination of the coverage.
. Statements to the effeelthat the issuing company will'endeavor to mail notice" or "intends to notify' are not acceptable.
9. The signature of an agent who has been authorized by the insurer. The agent must also have proof on file with MTDB
that they have a current valid insurance policy covering errors and omissions.
The certificate 01 Insurance must be an original with no alterations, typeovers or white-out. ---
TABL.E 3
Specific Information Required for Assigned Risk Insurance
1. A complete copy of the application for insurance, which must contain the following information:
1.1 The exact name and address of the applicant, who must be the perm" holder;
1.2 The vehicle description, identilication number and medallion number(s) of each vehicle to be
insured;
1.3 The type(s) and lim"(s) of Iiabil"y coverage;
1.4 The effective date and time of the insurance coverage;
1.5 MTOB Included as a certHicate holder to be notilied at the address on this letterhead;
1.6 Statement as described In Table 2, "em a; and'
1.7 The signature of a bena fide agent who lias a current errors and omission policy on file with MTOB,
No alterations, lypeovera or whlte.oul
2. Proof of payment for a minimum of 25% of the annual premium; by copy of the agent's check Dr copy of the insured's cashiefs
check or money order.
3. Proof from the assigned insurer that" has issued a policy must be received by Paratrans" Regulatory Administration
within 30 days of the assigned risk application date.
TABLE 4
Insural\ce Company Standard a .
Insurer is admitted in Calilorn!a by the Calilornia Department of Insurance; orthe insurer is not admitted in Calilornia but has an A.M.
Best rating of A. and "s financial size category Is no leu than V (five). Contact the MTDB Paratrans" Regulatory Administration for
. additional information.
" In accordance with a Calilornia Vehicle Code Section 16502 as of January 1. 19aa. '.
~'.~~~~:,~,~~;:;:'c". 01 Co',....O C," <, E' C,,,. c.:;c' .mw." a..,. ~~.. c.Z...""tf:..v; C~.., .: :; .,' SO' o..go. C'" o'
s.~:" C:l..nw ~t S'i'\ O'e;~ S::.:.~! C.:dO'i'\:'
"'llIopohtan T,.nS'1 O....'lopme-nl Bo.,a IS c~c.o:n.,or 01 In, MelrCPOill.n Tr.~sil SyS!f~ ana 1$ RI;l.IlalO'Y AUlFlOf1lj,Ior ~ p.ra:rll'l5.: ':'~,",It"I'ltahon
Sub.....'y c"p1"on.. ~. S.. O,ego T....'., Co,po,",.on. ii Silo O,ego T'OU.,.I.' Ind 8 Sin D.e;. & An,onl.tlS"'" R'''','Yco",~'''y
"""
1HIS PAGE BlANK
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~~-/...2.
COUNCIL AGENDA STATEMENT
Item 7
Meeting Date 8/17/93
ITEM TITLE: Resolution /7~ /9 granting an easement to the Sweetwater Authority
for electrical and telemetry conduit through City Open Space in Terra
Nova and authorizing the Mayor to execute the easement on behalf of the
City
SUBMITTED BY: . Director of Public workspl'trr;;
Director of Parks and RecreationtyL-
REVIEWED BY: City Manager J~~ '6:~ (4/5 Vote: Yes_ No---X-)
In 1990, the Sweetwater Authority submitted a request to the City to obtain an easement through
a City open space lot to install a conduit in which to connect electrical and telemetry wires
between its reservoirs and telemetry facility adjacent to the water tank in Terra Nova (see
Exhibit "A")
After beginning to process the easement dedication, the Authority advised us that the project was
put "on hold". Sweetwater Authority completed its project and only recently discovered there
was no easement. The City has now been asked again to grant the easement.
RECOMMENDATION: That Council adopt the subject resolution granting the subject easement
and direct the Mayor to sign the document on behalf of the City.
BOARDS/COMMISSIONS RECOMMENDATION: N/A
DISCUSSION:
As part of the Hidden Vista Village (Terra Nova) Subdivision Map process, Open Space Lot "A"
was dedicated to the City in 1981. It is located in the northwest quadrant of the intersection of
Windrose Way and Moon View Drive.
Within that open space lot is a water storage tank, owned and maintained by the Sweetwater
Authority. The tank is situated upon an easement granted in 1949 to California American Water
and Telephone Company, the predecessor of the Sweetwater Authority.
In 1984, the Sweetwater Authority began construction on its l8-million-gallon Bonita Valley
reservoir in the unincorporated area just north of Hidden Vista Village. The Authority
requested, in 1990, that the City grant it an eight-foot-wide easement to install conduit for an
7./
Page 2, Item 7
Meeting Date 8/17/93
electrical power line and a telemetry line underground from the reservoir control building to a
radio building located next to the water tanle
After starting the process of the grant of easement, the City was notified by the Sweetwater
Authority to place the process on hold and its staff would contact the City when to continue the
processing. Evidently, the company was thinking of changing the location of the proposed
conduit. After some time, the work continued and the conduit was installed. The installation
of the conduit was not observed by our personnel, due to its remote location. The City was not
contacted until June of this year when Sweetwater, upon checking its records, found there was
no easement and renewed the process.
The telemetry facilities are for the communication between the tank and the reservoir. When
the water level in the tank drops to a certain point, a signal is sent to the pump at the reservoir
to engage, sending water to the tank. The electrical line supplies power from the reservoir
control building to the outbuilding at the tank to charge the batteries for a back-up generator and
to power the lights in the building.
Since the facilities have been in place (underground) for over two years and there will be no
additional disruption on the surface of the open space lot, staff recommends that the easement
be granted to the Authority at this time.
Council has adopted policies to deal with sale of open space for private use due to grading
deviation and use of open space for other private uses. That policy did require election and/or
notice within the open space. Because all of the work is underground, the easement is to
another public agency, and does not affect the status of the open space, granting the easement
to Sweetwater Authority without notifying all open space district homeowners does not violate
the Council's Open Space Policy.
Staff also recommends that no monetary compensation be asked for in return for the easement,
since the Authority is a public agency. However, we have informed the staff at Sweetwater that
we are tracking City staff time and will be billing them for costs incurred. The Authority has
agreed to this proposal by letter.
The Sweetwater Authority has submitted a grant of easement form with legal description and plat
for staff's review. It has been found to be acceptable for execution and eventual recordation.
FISCAL IMPACT: All City costs will be reimbursed by Sweetwater Authority.
Attachments:
Plat
Easement with Legal description & Plat
lWH:1'F.l7B
[F:1HOMB'IBNGlNEERlniJWlTSlA.1J3.\Jl.JWHJ
7-.2
RESOLUTION NO.
I '/.:J.) 1
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA GRANTING AN EASEMENT TO THE
SWEETWATER AUTHORITY FOR ELECTRICAL AND
TELEMETRY CONDUIT THROUGH CITY OPEN SPACE IN
TERRA NOVA, AND AUTHORIZING THE MAYOR TO
EXECUTE THE EASEMENT ON BEHALF OF THE CITY
WHEREAS, in 1990, the Sweetwater Authority submitted a
request to the city to obtain an easement through a city open space
lot to install a conduit in which to connect electrical and
telemetry wires between its reservoirs and telemetry facility
adjacent to the water tank in Terra Novaj and
WHEREAS, after beginning to process the easement
dedication, Sweetwater Authority advised us that the project was
put "on hold"j and
WHEREAS, Sweetwater Authority completed its project and
only recently discovered there was no easementj and
WHEREAS, the City has now been asked again to grant the
easement.
NOW, THEREFORE, BE IT RESOLVED that the City Council of
the city of Chula vista does hereby grant an easement to the
Sweetwater Authority for electrical and telemetry conduit through
City Open Space in Terra Nova, a copy of which is on file in the
office of the City Clerk.
IT FURTHER RESOLVED that the Mayor of the City of
is hereby authorized and directed to execute said
and on behalf of the City o~ Chula vist .
t:t-"! 0 by ~
Bruce M. Boogaard,
Attorney
BE
Chula vista
Easement for
Presented by
John P. Lippitt, Director of
Public Works
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DATE:
FILENO.: P,c-/7B
7--5
EASEM.ENT TO SWEETWA TER AUTHORITY
CONDUIT FOR POWER AND TELEMETRY
RECORDING REQUESTED AT NO FEE SINCE
IT IS TO THE BENEFIT OF SWEETWATER AUTHORITY
When recorded, please mail to:
SWEETWATER AUTHORITY
P. o. BOX 2328
505 GARRETT AVENUE
CHULA VISTA, CA 91912
ATTENTION: ENGINEERING DEPARTMENT
Assessor's Parcel No. 592-171-61
Project Name: LYNWOOD HILLS
TANK EASEMENT
DOCUMENTARY TRANSFER TAX - NONE
SWEETWATER AUTHORITY
Dian Reeves
Secretary of the Board
EASEMENT
THE CITY OF CHULA VISTA, does hereby grant to SWEETWATER AUTHORITY.
a Joint Powers Agency, a Public Agency formed pursuant to
Government Code Section 6500 at seq., its successors and assigns,
an easement for the installation of electric power lines and
telephone and for the ingress and egress for the construction,
operation and maintenance of these utilities and appurtenances
thereto within.
Being a portion of Let A of Chula Vista Tract
80-15 in the City of Chula Vista, County of
San Diego, state of California, according to
Map thereof No. 10051 on file in the office of
the County Recorder of San Diego on April 3,
1981 more particularly described in Exhibit A
attached hereto and by this reference made a
part hereof.
The Grantor herein agrees that no buildings and/or structures will
be erected, walls constructed, fences built nor trees planted upon
the easement herein described. No changes in the existing grade
will be made without prior written approval of the Grantee.
CITY OF CHULA VISTA
MAYOR OF THE CITY OF CHULA VISTA
TIM NADER
(DATE)
ATTEST:
CITY CLERK
BEVERLY AUTHELET
DATE:
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LEGAL DESCRIPTION
EXHIBIT "A"
BEING A PORTION OF LOT A OF CHULA VISTA TRACT 80-15 IN THE CITY OF
CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO
MAP NO. 10051, ON FILE IN THE OFFICE OF THE COUNTY RECORDER OF SAN
DIEGO ON APRIL 3, 1981 MORE PARTICULARLY DESCRIBED AS FOLLOWS:
BEGINNING AT THE NORTHEASTERLY CORNER OF SAID LOT A, SAID POINT
ALSO BEING ON THE WESTERLY RIGHT-OF-WAY OF MOON VIEW DRIVE; THENCE
SOUTH 71.40'25" WEST, 29.88 FEET TO THE TRUE POINT OF BEGINNING OF
AN 8.00 FOOT WIDE EASEMENT, THE CENTERLINE OF WHICH IS DESCRIBED AS
FOLLOWS: THENCE SOUTH 27.47'13" WEST, 123.71 FEET; THENCE SOUTH
31.39'22" WEST, 75.29 FEET TERMINATING SAID EASEMENT AT THE
NORTHEASTERLY CORNER OF AN INDENTURE RECORDED APRIL 1, 1949 IN BOOK
3159, PAGE 224 IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA AND
IS ON FILE IN THE OFFICE OF THE COUNTY RECORDER.
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EASEMENT FOR L YNWOOD
HILLS TANK TELEMETERING
AND RADIO BUILDING
POWER & TELEMETERING.
-------------------------------
---::~:;~::~~-.==7--
. DATE
TO: SWEETWATER AUTHORITY
FROM: CITY. OF CHULA VISTA
RECORDING DATE:
DOUMENT NO.: ?., r
3-SW-
PROJECT:
RADIO BUILDING AT
L YNWOOD HilLS TANK
SCALE: '"='00'
SHEET' OF ,
WATER EASEMENT PLAT
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COUNCIL AGENDA STATEMENT
SUBMITTED BY:
Item 8"
Meeting Date 8/17/93
Resolution ) 7.2.a () Affirming the Trial Traffic Regulation -
Schedule III - Parking Prohibited at all Times on Certain Streets
Director of Public Works~
City Manager JCi, \7-6@' (4/5ths Vote: Yes_No X)
ITEM TITLE:
REVIEWED BY:
On April 21, 1992, a Trial Traffic Regulation establishing a parking prohibition in the Point
Robinhood Subdivision was implemented pursuant to the provisions of Section 10.12.030 of
the Chula Vista Municipal Code. Signs indicating this prohibition were installed on September
25, 1992.
RECOMMENDATION: That the City Council adopt the resolution to make this Trial Traffic
Regulation permanent.
BOARDS/COMMISSIONS RECOMMENDATION: The Safety Commission, at their
meeting of July 8, 1993, voted 6-0-1 (Koester absent) to recommend that the City Council
affirm this Trial Traffic Regulation and approve a resolution making this prohibition
permanent.
DISCUSSION:
Pursuant to the provisions of Section 10.12.030 of the Chula Vista Municipal Code, adopted
by Ordinance No. 1625 on May 27, 1975, the City Engineer, on April 21, 1992, determined
that in the interest of minimizing traffic hazards and congestion and for the promotion of public
safety, a Trial Traffic Regulation prohibiting on-street parking be established on the following
streets:
Name of Street
Begimting at
Ending at
Side
Abalone Point Ct.
Anow Point Ct.
Ballast Point Ct.
Bluff Point Ct.
Cavern Point Ct.
Crown Point Ct.
Dana Point Ct.
Diablo Point Ct.
False Point Ct.
Jeremy Point Ct.
Laguna Point Ct.
Long Point Ct.
Malibu Point Ct.
Pelican Point Ct.
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
All
All
All
All
All
All
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All
All
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All
All
All
All
fr-/
\'\
Page 2, Item ~
Meeting Date 8/17/93
Name of Street
Beginning at
Ending at
Side
Pescadero Point ct.
Point Arena Ct.
Point Buchan Ct.
Point Cabrillo Ct.
Point Caiman Ct.
Point Conception Ct.
Point Defiance Ct.
Point Delgada Ct.
Point Dmne Ct.
Point Estero Dr.
Point Fermine Ct.
Point Hueneme Ct.
Point Lama Ct.
Point Medanas Ct.
Point Mugu Ct.
Point Pacific Ct.
Point Reyes Ct.
Point Sal Ct.
Point San Luis Ct.
Point Sur Ct.
Point Vicente Dr.
Presidio Point Ct.
Race Point Ct.
Rocky Point Ct.
San Mateo Point Ct.
San Pedro Point Ct.
Seal Point Ct.
Sunset Point Ct.
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
All
All
All
All
All
All
All
All
All
All
All
All
All
All
All
All
All
All
All
All
All
All
All
All
All
All
All
All
On-street parking has always been prohibited in the Robinhood Point Subdivision cul-de-sac
streets. Said regulations became effective upon posting of signs on September 25, 1992 and
has run for a trial period of eight (8) months from the date of such posting. A review of said
installation, as required by Chula Vista Municipal Code, Section 10.12.030, has been made.
In accordance with Section 10.12.030 of the Code, City Council must now adopt a resolution
making this regulation permanent or the Trial Traffic Regulation ceases to be effective.
The purpose of this parking prohibition is to replace private property parking restrictions which
were in the CC&Rs of the Homeowner's Association when these narrow streets were all
private streets. The streets were accepted as public improvements by Resolution 11761 on
September 11, 1984. The Chula Vista Police Department and the property management
company requested that these private property signs be changed to allow enforcement of the
parking prohibition possible. The streets in this subdivision are too narrow, 19 ft. gutter to
gutter with rolled curbs 3.5 ft. wide, to allow for anyon-street parking and still allow for
access by emergency vehicles.
Previous signs which were removed on September 25, 1992 stated "No Parking in cul-de-sac
violators subject to citation and tow away. c.Y.C. 21107.5 C.Y.M.C. 10.28.180, Resolution
8341 City of Chula Vista, Robinhood Point and Article XII-section 12 CC&Rs, Robinhood
~"'..2.
Page 3, ItemK
Meeting Date 8/17/93
Point and Association." C.V.C 21107.5 apply for private roads open for public use. The
Chula Vista Municipal Code (C.V.M.C.) 10.28.180 deals with private road and parking lots-
rules and regulations - posting. Therefore, the Police Department cannot enforce the no
parking with the private property signs.
The private property signs were removed and replaced with new signs on September 26, 1992
stating "No Parking Tow Away; Park Off Pavement". The new signs will allow
enforcement of the no parking prohibition within the cul-de-sacs. Enforcement will be by
citation and/or towing through the Chula Vista Police Department.
A review of the traffic conditions by staff, the Safety Commission and the Police Department
show that this Trial Traffic Regulation is operating effectively. Therefore, staff recommends
that this Trial Traffic Regulation be made permanent. The President of the Homeowners
Association has been notified that this item is on tonight's agenda.
FISCAL IMPACT: None.
Attachments: Area Plat
Resolution 8341 dated 10/5/76
NOTSO\NNED
NOT SCANNED
Resolution 11761 dated 9/11/84 f~JL)('JU''N"E.lL1
Trial Traffic Regulation No. III t,:.',f',;::'","",' '.:'C,
Q...._~ - '~....- ..,\j...".
Safety Commission minutes dated July 8, 1993 (e~ceiiit)
NOTSCANNEJ)'
DMWIFXR:File No.: CY~027
WPC F:\home\engineer\agenda\1159.93
.....
8'~;J /'-'1
RESOLUTION NO.
17J.,1.0
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AFFIRMING THE TRIAL TRAFFIC
REGULATIONS SCHEDULE III PARKING
PROHIBITED AT ALL TIMES ON CERTAIN STREETS
WHEREAS, on April 21, 1992, a Trial Traffic
establishing a parking prohibition in the Point
Subdivision was implemented pursuant to the provisions
10.12.030 of the Chula vista Municipal Code; and
Regulation
Robinhood
of section
WHEREAS, signs indicating this prohibition were installed
on September 25, 1992; and
WHEREAS, the Safety commission, at their meeting of July
8, 1993, voted 6-0-1 (Koester absent) to recommend that the city
Council affirm this Trial Traffic Regulation and approve a
resolution making this prohibition permanent.
NOW, THEREFORE, BE IT RESOLVED that the city Council of
the City of Chula vista does hereby affirm the trial traffic
regulations - Schedule III - Parking Prohibited at all Times on
certain Steets pursuant to the provisions of section 10.12.030 of
the Chula vista Municipal Code, in the interest of minimizing
traffic hazards and congestion and for the promotion of public
safety, on the following streets:
Name of Street
BegimIiDg at
Ending at
Side
Abalone Point Ct.
Arrow Point Ct.
Ballast Point Ct.
Bluff Point Ct.
Cavern Point Ct.
Crown Point Ct.
Dana Point Ct.
Diablo Point Ct.
False Point Ct.
Jeremy Point Ct.
Laguna Point Ct.
Long Point Ct.
Malibu Point Ct.
Pelican Point Ct.
Pescadero Point Ct.
Point Arena Ct.
Point Buchon Ct.
Point Cabrillo Ct.
Point Caiman Ct.
Point Conception Ct.
Point Defiance Ct.
Point Delgada Ct.
Point Dume Ct.
Point Estero Dr.
Point Fennine Ct.
Point Hueneme Ct.
Point Loma Ct.
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
All
All
All
All
All
All
All
All
All
All
All
All
All
All
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All
All
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~'5
Name or Street
Point Medanas Ct.
Point Mugu Ct.
Point Pacific Ct.
Point Reyes Ct.
Point Sal Ct.
Point San Luis Ct.
Point Sur Ct.
Point Vicente Dr.
Presidio Point Ct.
Race Point Ct.
Rocky Point Ct.
San Mateo Point Ct.
San Pedro Point Ct.
Seal Point Ct.
Sunset Point Ct.
Presented by
John P. Lippitt, Director of
Public Works
F:\home\attomey\parking.m
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Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Entire segment
Side
All
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Boogaard,
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CITY OF CHULA VISTA
COUNCIL AGENDA STATEMENT
ITEM NO. 3 .3a
FORMEETING OF, 10/5/76
ITEM TITLE: Public Hearing for Imposing Rules and Regulations on Private
Streets, Robinhood Point subdivision
Resolution f3~1 - Imposing Rules and Regulations on Private
Streets, Robinhood point Subdivision 0(11
SUBMITTEO BY' Director of Public Works/City Engineer t;J U
ITEM EXPLANATION'
~ A written request from the engineer of work for Robinhood Point Subdivision
f MS been received by the Engineering Division,' requesting the imposition of
F all rules and regulations governing the movement of vehicles, including
( but not limited to parking and stopping regulations, speed and the movement
t of vehicles on all the private streets, both existing and proposed in the
r: Robinhood Point Subdivision.
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~nstruction has begun on Unit 11 of Robinhood Point subdivision. This
resolution is to cover all of the private streets in Robinhood Point Sub-
division Units 11 through #4. These streets are shown on the revised
~ntative map of Robinhood Point P.R.D. that was accepted by the City
t Council by Resolution 'No. 8146 on May 4, 1976.
,
-:
A transparency is available for Council viewing.
EXHIBITS ATTACHED
Resokrtion .... Ordinance
Agreement
PI.' X
"the,
Erwironmental Documentl
Allaehed
Submi"ed on
STAFF RECOMMENOATION:
Approve resolution.
~
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,
,.~
BOARO/ COMMISSION RECOMMENOATION'
COIJNCIL ACTION'
APPROVED
b1 tbe
C~ t1 Council
of
. .hula Vista. California
Dat.4...J.~-'::~_:7{". ._-
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~'9 F~A-1I3(ReY;5-1~)
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RESOLUTION NO. 8341
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA IMPOSING RULES AND REGULATIONS GOVERNING THE
MOVEMENT OF VEHICLES AS CONTAINED IN THE TRAFFIC
CODE OF THE CITY OF CHULA VISTA AND THE CALIFORNIA
VEHICLE CODE ON CERTAIN PRIVATE STREETS AND PARKING
AREAS LOCATED IN THAT CERTAIN SUBDIVISION KNOWN AS
ROBINHOOD POINT
The City Council of the City of Chula Vista does hereby
resolve as' follows:
WHEREAS, the €ity Council of the City of Chula Vista has
determined, after public hearing, that those certain private streets
100 parking areas located in that certain subdivision known as Robin-
hood Point, more particularly described as:
A portion of the southwest Quarter of Fractional
Section 18 Township 18 South, Range 1 West San
Bernardino Base and Meridian in the County of
San Diego, State of California,
are of such a nature and character so as to constitut,e open and
~licly used streets and parking areas, allowing the public mave-
lent of vehicles thereon, and
WHEREAS, the City Council of the City of Chula Vista has
further determined that it is in the public interest to regulate the
klvement of vehicles thereon.
. NOW, THEREFORE, BE IT RESOLVED that the Ci ty Council of the
Cl~ of Chula Vista hereby imposes and makes applicable all provisions
~! ~e Traffic Code of the City of Chula Vista and the California
~eh:cle Code including, but not limited to, parking and stopping regu-
.Itlons, speed and movement of vehicles.
, BE IT FURTHER RESOLVED that this resolution shall become
~;fective upon the posting of signs required in Section 10.28.180
~o the Chula Vista Municipal Code.
tUlented by
Approved as to form by
George D.
(ft:' !ei~or of
- lC Works
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~IA VISTA, CALIFORNIA this 5th
ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
;:~. by the fOllowing vote, to-wit:
day of OCt:Oh~H.
TIs; CouncilmEin None
:5: Councilmen Hyde, Cox, Hamilton, Hobel
-:~\'T: Councilmen Egdahl
cfl~;" ~ ~<r
Ci CZepk
Mayop of the City of ChuZa Vista
~~.~~9z..
:' or CALIFORNIA
.~ or SAN DIEGO
"r CUtLA VISTA
)
)
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55.
.:......
'-,
., JENNIE M. FULASZ~
DO HEREBY CERTIFY
'..t, ...
. ~...l'l'ect COpy of
", ':"!f
has not been amended or repealed.
that the above and foregoing is a full~
CMC, CITY CLERK of the City of ChuZa Vista,
and
--
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Ci ty CZerk
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L The City Council of the City of Chula Vista does here~
E resolve as follONS:
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RESOLUTION NO.
11761
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA APPROVING AGREEMENT BE'lWEEN THE CITY OF CHULA
VISTA AND ROBINHOOD POINT HOMEOWNERS ASSOCIATION FOR
THE DEDICATION OF PRIVATE STREETS TO PUBLIC STREETS
AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Chula Vista that that certain agreement between THE CITY
OF CHULA VISTA, a municipal corporation, and ROBINHOOD POINT
HOMEOWNERS ASSOCIATION for the dedication of private streets to
public streets
dated the 11 th day of September ,198 4, a copy of which
attached hereto and incorporated herein, the same as though
set forth herein be, and the same is here~ approved.
is
fully
f
I
BE I~ FURTHER RESOLVED that the Mayor of the City of
Chula Vista be, and he is here~ authorized and directed to
execute said agreement for and on behalf of the City of Chula
Vista.
Presented by
. Approved as to form by
--
dZf!~~c-'
omas J. Harron, City
At torney
8"~ J.2.
( .
IHEORIUIIOH
lItH
February 13, 1992
File: CY-027
TO: The Chairperson and Members of the Safety Commission
FROM: o. Frank Rivera, Associate Tr~ffic Engineer;:;l-.
SUBJECT: Establishing a Trial Traffic Regulation
Pursuant to the provisions of Section 10.12.030 of the Chula Vista Municipal
Code, adopted by Ordinance No. 1625 on May 27, 1975, the City Engineer has
determined that in the interest of minimizing traffic hazards and congestion
and for the promotion of public safety, there is hereby established a
restriction of parking in Robinhood Point Subdivision.
.
SCHEDULE III . PARKING PROHIBITED AT ALL TINES ON CERTAIN STREETS
"amI! of Street
Abalone Point Ct.
Arrow Point Ct.
Ballast Point Ct.
Bluff Pol nt Ct.
elvern Point Ct.
crown Point Ct.
Din. Point Ct.
Diablo Point Ct.
False Point Ct.
~ere8Y Point Ct.
laguna Point Ct.
long Point Ct.
Nalibu Point Ct.
Pelican Point Ct.
Pescadero Point Ct.
Point Arana Ct.
Point Buchon Ct.
Point Cabrlllo ct.
Point calaan Ct.
Point Concaptlon ct.
'olnt Deflanca Ct.
.olnt Dalgada ct.
'olnt 0... Ct.
'olnt Estaro Dr.
Pofnt Fer.tn. Ct.
'olnt Muan..e Ct.
Point lOlla Ct.
Beainnina at
Endina at
l1.II1
Entire legment
Entire .egment
Entire leglftent
Entire ..gment
Entire .egment
Entire ..gment
Entire l.gII.nt
Entire "I_ent
Entire aeg.ant
Entire l,glRent
Entire .,gllent
Entire .,gment
Entire "IlII1.nt
Entire .,gHnt
Entire .egunt
Entire ..,ent .
Entire ....nt
Entl r. ..gaant
Entire ..g.nt
Entl r. a.pent
Entire .,gHnt
Entire "Iltent
Entire ..,ltent
Entire .."..nt
Entire .,gllent
Entire "llJIent
Entire l'l..ent
All
All
All
All
All
All
All
All
All
All
All
All
All
All
All
All
All
All
All
. All
All
All
All
All
All
All
All
'if"/ :J
a,,)
~
The Chairperson and Members of the Safety Commission
Page 2
February 13, 1992
lIame of Street
leainnina at
Endina at
WI
Point .lIed.n.. Ct.
Point lIuvu Ct.
Point P..lfl. Ct.
Point R.Y" Ct.
Point III Ct.
Point S.n Lul. Ct.
Point Sur Ct.
Point VI..nt. Dr.
Pr..ldlo Point Ct.
h.. PoInt Ct.
Ro.ky Point Ct.
S.n lI.t.o Point Ct.
S.n Pedro Point Ct.
Se.l PoInt Ct.
Sun..t Pt.
Ent I r. .eV"ont
Entire .....nt
Entl re .ev..nt
EntIre "Vlllnt
Entire ..g..nt
Entire ..g..nt
Entire ..g..nt
Entire ..,..nt
Entire ..v..nt
Entire ..g_ent
Entire ..gltent
Entire I.gllent
Entire .egltent
Entire ..'....nt
Entire aellnent
All
All
All
All
All
All
All
All
All
All
All
All
All
All
All
On-street parking is prohibited in Robinhood Point Subdivision when the
streets were private. On September 11, 1984, the City Council approved
Resolution 11761 dedicating all of the private streets within the Robinhood
Point Subdivision to public streets. Staff feels the continuation of "No
Parking Regulations" will allow for the separation of traffic as well as
maintaining one lane of traffic in each direction. Off-street parking is
allowed in this subdivision.
Said regulation to become effective upon the posting of signs or other
appropriate notice, and shall run for a trial period of eight (8) months from
the date of such posting, at which time a review of said regulation will be
made to determine if it should be made permanent.
VPC 5875E
Trl.l Tr.ffl. ""
y.j'l
Safety Commission Minutes
July 8, 1993
Page 5
8. REPORT affirming various Trial Traffic Regulations
Frank Rivera presented staff's report.
Earl Biggers, 677 G Street, Space 26, Chula Vista, CA 91910 supported staff's recommendation regarding the
trial traffic regulation on the north side of the 600 block of G Street.
MSC (Thomas/Pitts) to recommend to the City Council affirm the Trial Traffic Regulations listed below and
make them permanent. Approved 6-0-1 with Commissioner Koester absent.
TTR# LOCATION SCHEDULE REGULATION
111 Point Robinhood Schedule III No Parking Anytime
112 Main Street/Otay Valley Road Schedule X 40 MPH
114 N. Fourth Ave. (West Side) Schedule V No Stopping
SR-54 to "e" Street
115 Third Avenue (East Side) "H" Schedule VI 2 Hour Parking
Street to "I" Street
116 Wueste Roadl Otay lakes Schedule X 35 MPH
Road to Set
117 Olay lakes Road, Lane Ave- Schedule X 50 MPH
nue to Wueste Road
118 Second Avenue and "e" Schedule II All-way
Street
119 Quintard Street, Hilltop Drive Schedule X 30 MPH
to Orange Avenue
123 600 block "G" Street (North No Parking of Vehicles over 6 ft. in height
side)
9. ORAL COMMUNICATIONS
Saul Goldstein, 976 Barrett Avenue, Chula Vista, CA 91911, spoke for the disabled. He complimented the
City on installing sidewalk curb ramps for wheelchairs. His main concern was handicapped parking and
making the spaces legal. There were many handicapped parking spaces, but some of them were not legal
according to the letter of the law. In order to make the parking space legal, it needed to have the handicap
logo, sign, and striping. If one, or any, of those items were missing, the ticket could be dismissed in court.
He said that many shopping centers did not have adequate handicapped parking. Beside illegal parking, the
City could use revenue generated from tickets being issued to violators. On another subject, he said that there
was a stop sign on Nacion Avenue, north of Telegraph Canyon Road and that was difficult to see and he
wanted to make staff aware of the situation.
Chair Thomas asked staff to address the legal issue of handicapped parking.
Hal Rosenberg said there were standards for handicapped spaces. He welcomed any comments from Mr.
Goldstein on locations within the City of Chula Vista that he felt the parking spaces were not properly marked.
He would be in touch with the Code Enforcement section of Building and Housing to inspect the spaces. Staff
would be in touch with Mr. Goldstein and report any findings back to the Commission.
8""If' .
. UNOFFICIAL MINUTES
COUNCIL AGENDA STATEMENT
Item L
Meeting Date 8/17/93
SUBMITTED BY:
Report on Requirements for Development of an ISTEA Grant Proposal for
an Electric or Steam Train Along the Chula Vista Bayfront
Director of Public works/'" c...
Community Development Director (/.;..1 I
City ManagerJ4 UO~ (4/5ths Vote: Yes_No Xl
Council Referral No. 2749
ITEM TITLE:
REVIEWED BY:
During the Oral Communications portion of the City Council meeting on April 13, 1993 Mr.
Sam Judd extended an offer in behalf of the San Diego Electric Railway Association to assist
the City in the preparation of a Transportation Enhancement Activities (TEA) grant application
for a City project consisting of an electric and/or a steam powered railroad along the Chula Vista
bayfront. The TEA program was enacted as part of the Intermodal Surface Transportation
Efficiency Act (ISTEA) of 1991.
The railroad is proposed to run along the San Diego and Arizona Eastern Coronado Branch
tracks paralleling Bay Boulevard from the Chula Vista/National City boundary to some
reasonable southern terminus - possibly "F" Street. Council directed staff to work with the
Association and the San Diego Railroad Museum to pursue the grant if it could be done in
under 10 hours, reporting back to Council with the requirements of the project if a greater time
than 10 hours was needed.
RECOMMENDATION: That Council accept the report and direct staff to discontinue work
on this suggested Grant proposal.
BOARDS/COMMISSIONS RECOMMENDATION: None - Due to the limitation of ten hours
being expended on this project, the issue has not been submitted to any boards or commissions
for consideration prior to Council acceptance of this report. The Planning Commission,
Economic Development Commission and the Resource Conservation Commission may all have
an interest in such a proposal, if such is ultimately developed. Although this proposal has not
been submitted for consideration by any boards or commissions due to the lack of time, we will
do so if Council wishes to explore the possibilities of this project further.
DISCUSSION:
Engineering and Community Development Staff met with Messrs. Judd, Nietrich and Cook of
the San Diego Electric Railway Association on May 4, 1993 to discuss the Association's offer
and to more fully understand what would be involved in the project and in preparation of a grant
proposal. Based on information obtained during the preliminary investigation of this proposal
as directed by Council, it appears that the suggested project could have several negative impacts
on the City. These may include environmental impacts on the Sweetwater Marsh and "D" Street
Fill, long term fiscal impacts associated with the operation of the suggested line, and short term
'1-)
Page 2, Item 9
Meeting Date: 8/17/93
fiscal impacts associated with the construction of facilities and purchase of additional streetcars
or trains.
PROPOSAL
Members of the Association have worked with the City of Poway on a similar project
successfully, and the Association is presently working with National City on a project (a car
barn which may be operated as a museum). This project could possibly be joined with the
proposed Chula Vista project. Information from SANDAG indicates that the National City
project has been placed on a tentative list of projects to receive funding from TEA funds.
The Association envisions a Chula Vista project which includes the refurbishing of the SD&AE
Coronado Branch track from the National City/Chula Vista boundary at the Sweetwater River
south to a terminal at some point between "P" Street and "J" Street and construction of the
overhead electric line for the provision of power to an electric train (or a single streetcar).
Either or both electric and steam trains would operate over this track during certain daylight
hours under agreement with the track owners. The Association's preliminary concept included
a side track or loop to carry passengers through the mid-bayfront area or east on "P" Street to
Third Avenue.
Eighty eight percent of the cost of work on the main track and refurbishing the rolling stock
(streetcars or trains) would be covered by the proposed grant. The remaining 12 % of this cost
plus the entire cost of any new track, overhead electric power line and appurtenances would have
to be paid by the City. The purchase cost of any additional rolling stock to be acquired would
also be have to be paid by the City out of locally generated funds. If a joint project with
National City was ultimately developed, this cost would be shared to some appropriate extent.
Construction of any side track or loop would have to be paid for by the City or an unspecified
source of funding would have to be found. The rolling stock could be owned and operated by
the Electric Railway Association, the Railroad Museum, or the City. Any cost of operation in
excess of revenues the City might realize would also have to be paid by the City.
The City effort which would be required to adequately prepare a grant proposal is estimated to
amount to approximately 120 hours. This includes our time for preparation of the application
and associated exhibits (40 hours), submittal to the Planning Commission and Resource
Conservation Commission for review and recommendations (10 hours each), submittal to
Council for approval (20 hours), and coordination with other involved agencies (40 hours). In
order for this project to be considered for the second cycle of TEA program monies, the
application would have to be submitted to SANDAG by September 15, 1993. However, there
will be three to five cycles in the program so ample opportunity remains for a less hurried
consideration by the City.
The subject of an excursion train operation on the Coronado Branch of the SD&AE Railway was
discussed in a report to the City Council on March 30, 1993 (attached). That proposal by The
Western Group was for their operation of a tourist excursion train on the Coronado Branch ofithe San Diego & Arizona Eastern Railway (SD&AE) from 24th Street in National City to Silver
Strand Boulevard in Imperial Beach.
9"'.,2
,/
Page 3, Item -3-
Meeting Date: 8/17/93
The project may include the acquisition of all rolling stock, rehabilitation of track and ongoing
operation of a tourist excursion train between National City and Imperial Beach, all by the
Western Group. There would be three to seven round trips of the train daily, depending on the
season and demand.
This current proposal would involve a relatively small portion of the track involved in that
previous project. Actual implementation of this project would be by the City, with the San Diego
Electric Railway Association drawing on its experience in this area to assist in the preparation
of a grant application.
PRELIMINARY STAFF ANALYSIS
In conducting the preliminary analysis on this request, staff discussed the Association's proposal
with Planning and Community Development staff. The following reflects their concerns
regarding existing and proposed City projects as well as environmental impacts.
Staff was concerned with four potential negative impacts associated with the earlier proposed
railroad project and discussed these problems in the March 30 report. These impacts are: 1)
traffic impacts on E,F ,H and J Streets and Bay Boulevard associated with operation of the
branch line and its signalization; 2) further traffic impacts caused by inclusion of stations; 3)
environmental concerns associated with noise upon wildlife in the Sweetwater Marsh and on the
D Street Fill; and 4) Possible negative biological, geological, or hydrological impacts associated
with use and repair of tracks or equipment crossing the marsh area. Staffs recommendation for
that proposal was for further investigation of the status and environmental implications of the
project.
An additional impact may involve the proposed Bay Route Bikeway. This project could be
located within the same right of way and, although construction activities would be compatible,
the safety of the Bikeway could be compromised if this project was not separated by distance
or a fence.
CONCLUSION
Because of the similarity between the earlier proposal by The Western Group and this proposal,
we believe that the suggestion for a City project could be considered as a possible alternative
to The Western Group's project when an additional report on that project is submitted. A quick
comparison between the two projects shows that the earlier project is proposed to be a self
supporting venture with no significant cost to the City and which may present an opportunity for
the City to realize an undetermined amount of revenue, while this project would involve the City
as the principal for the project and would also involve the expenditure of significant funds, even
if the proposed ISTEA grant is approved. The report on the Western's Group proposal is being
held pending. their coordination with MTDB and further contact with the Community
Development staff.
Additional concerns which should be addressed before an application for an ISTEA grant is
submitted by the City are: 1) the cost, preparation time and processing time for an
environmental review document; 2) the cost of operating the project as opposed to any revenue
q<J
c
Page 4, Item 3-
Meeting Date: 8/17/93
which may be realized from it; 3) the willingness of MTDB to share the use of its track in this
manner; and 4) the possibility of any private party realizing a monetary benefit from the project
(a concern voiced by SANDAG personnel).
The above noted costs to be borne by the City may be substantial. As noted in the case of the
proposal by the Western Group, additional investigation would be required to determine whether
the City should approve such a project.
FISCAL iMPACT:
The estimated full cost, including overhead, of the City's work in preparing applications and
submittals for this project is approximately $7,500. Any design, right of way and construction
cost associated with a final project or revenue which may be realized is undefined at this time.
Future cost impacts associated with the further pursuit of an ISTEA grant for the project may
be significant.
J 1.
2.
3.
W 4.
i 5.
6.
Attachments:
Map showing general location of suggested possible routes.
Report to Council on 3/30/93 concerning proposed Tourist Excursion Train project by
The Western Group.
Letter from The Western group submitting proposal to MTDB.
Information on Interurban Trolley Car being offered by Gales Creek Enterprises and
forwarded by Mr. Sam Judd.
Preliminary proposal by the San Diego Electric Railway Association dated June 2, 1987.
San Diego Electric Railway Association Articles of Incorporation.
RLD:KY.158
F:\HOME\ENOINBER\AGENDA\TRAIN2
081293
9-i
ITEM TITLE:
SUBMITTED BY:
REVIEWED BY:
BACKGROUND:
COUNCIL AGENDA STATEMENT
Item
Meeting Date
10
08/17/93
PUBLIC HEARING On Amending the City's 1992-93 HOME
Program Description
RESOLUTION 17:2.:2. 1 OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA AMENDING THE CITY'S HOME PROGRAM
DESCRIPTION TO REALLOCATE FUNDS FOR ACQUISITION AND
REHABILITATION OF SUBSIDIZED RENTAL PROPERTY
RESOLUTION / '):2.2J OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA APPROVING A HOUSING COOPERATION
AGREEMENT BETWEEN THE CITY AND SOUTH BAY COMMUNITY
SERVICES FOR THE DEVELOPMENT OF A SHORT-TERM
HOUSING FACILITY FOR HOMELESS FAMILIES AND/OR VERY
LOW INCOME FAMILIES AT 31 FOURTH AVENUE AND
AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT AND
ASSOCIATED LOAN DOCUMENTS
RESOLUTION /7:<2 LJ OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA APPROPRIATING FUNDS NOT TO EXCEED
$610,146 FOR A LOAN TO SBCS FOR ACQUISITION AND
REHABILITATION OF A 14-UNIT APARTMENT BUILDING AT
31 FOURTH AVENUE (1 d
Community Development Director~
City Manager
(4/Sths Vote: YES
NO _)
x
South Bay Community Services (SBCS) is a local, non-profit, public
benefit corporation providing a variety of services to youth and
families in the South Bay with emphasis in Chula Vista. SBCS is in
escrow to purchase a 14-unit apartment building at 31 Fourth Avenue
which they plan to develop into a short-term housing facility for
homeless families. SBCS has requested a loan of $610,146 of HOME
federal housing funds for acquisition and rehabilitation of the
apartment building.
RECOMMENDATION:
1) Hold a public hearing on amending the City'S 1992-93 HOME
program description; and,
2) That the City Council adopt the attached resolutions
which:
a) Amends the City'S HOME Program Description to
reallocate $610,146 to the substantial
rehabilitation category which includes acquisition
10-'/10- .3
Page 2, Item
Meeting Date
Ii)
08/17/93
from "new construction", "acquisition-owner" and
"acquisition rental" categories; and,
b) approves the Housing Cooperation Agreement between
the City and SBCS and authorizes execution of the
agreement and associated loan documents, including
provision that SBCS may participate in decision on
ultimate distribution of a portion of loan proceeds
at term of loan; and
c) Appropriates HOME funds not to exceed $610,146 to
South Bay Community Services for a loan to acquire
and rehabilitate the 14-unit apartment building at
31 Fourth Avenue.
BOARDS/COMMISSIONS RECOMMENDATIONS: The Housing Advisory
Committee considered this proposal at its 2/24/93 meeting. Several
members expressed concern that the property was too expensive and
that the level of funding requested would restrict the City's
ability to respond to other housing needs. A motion to support the
SBCS proposal failed, 2-3.
The Resource Conservation Commission recommended approval of the
Negative Declaration at its 6/8/93 meeting, 6-1. The Planning
Commission considered the Conditional Use Permit for the project at
its 6/23/93 meeting and approved a motion to adopt the negative
declaration and Conditional Use Permit, 7-0.
DISCUSSION: The City Council. at its meetinq on March 23. 1993.
conceDtuallv aDproved fundinq in the amount of $618.000 for the
proiect. Funds identified for the project at that meeting were
Agency housing set-aside funds and CDBG entitlement funds. Based
on a letter from HUD, the project is now eligible for HOME federal
housing funds, of which the City has $1.243 million, $750,000 of
which is available for 1992-1993. To utilize the HOME funds for
this project, the City must reallocate funds to the rental property
acquisition category of its 1992-93 HOME Program Description. The
Housing Cooperation Agreement (Exhibit A) provides that the City's
duty to make the loan will be contingent on, among other things,
receipt of a loan from National City of $250,000., all others
monies necessary to acquire and propose the project for occupancy,
and proof of the available operating monies for a year period. The
Agreement contains strong provisions regarding property management
and occupancy standards. It requires the submittal and approval of
a comprehensive property management plan.
THE DEVELOPER OF THE PROJECT
South Bay Community Services (SBCS) initiated their Community
Development program two years ago. The City provides approximately
half of the program's operating funds, with the balance coming from
the San Diego Community Foundation, local banks, and private
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donations. SBCS currently operates the 8-bed Casa Nuestra shelter
for homeless and runaway youth and a 4-bed transitional living
program for young adults.
THE PROJECT
The short-term housing facility will provide housing and services
for up to 43 family members in a 14-unit apartment complex. The
maximum length of occupancy will be 60 days. Two bedroom units
will have five beds and one bedroom units will have three beds.
One unit will be for the full-time resident manager. Based on an
expected average occupancy of six weeks, the facilitv will serve un
to 372 homeless nersons ner vear. Additional information is
contained in the attached Report, Exhibit B.
SBCS is coordinating a network of human services, including the
MAAC Project, Episcopal Community Services, and Lutheran Social
Services, to provide residents with job training, Head Start,
health care, and other services geared to family self-sufficiency.
SBCS has built-up strong community support for the project, which
will help ensure its successful operation in the community. Thus
far, over eighty businesses, religious institutions, and
individuals have committed volunteer hours and donations to the
project. A list of these groups is attached as Exhibit C.
RESIDENT SCREENING AND SELECTION
Potential families will be initially screened and referred by
organizations which currently serve homeless families in the South
Bay (schools, churches, service agencies). Priority will be given
to families whose last permanent address, workplace, or school was
in the South Bay. Priority will be given to Chula Vista residents
for 9 of the 13 units in accordance with a plan to be submitted by
SBCS.
Screening procedures similar to those successfully used for the
Casa Nuestra Project will be implemented to prevent persons who are
substance abusers or violent offenders from gaining admittance. No
person will gain entry to the short-term housing project without a
referral from one of the homeless-serving organizations (thus no
one will be "lining-up" in front of the building). Referred
families will be required to sign a written agreement to abide by
strict project rules and regulations. One rule will be that all
residents refrain from the use and possession of alcohol or drugs.
THE PROPOSED SITE
The proposed short-term housing site is at 31 Fourth Ave. (between
"c" and "D" Streets) and consists of twelve 1-bedroom and two 2-
bedroom units. SBCS selected this site because of its location (on
a major bus route), manageable size, financial feasibility, and the
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flexibility of the seller (who agreed to a lengthy escrow period) .
The property was appraised one year ago for $750,0000 and
reappraised in February 1993 for the same value. SBCS has
negotiated a lower sales price of $720,000 and it has been further
reduced to $712,500 as a result of negotiations by Councilwoman
Horton.
NEIGHBORHOOD ISSUES
Neighborhood opposition to the site appears to be based on the
following issues: 1) property values, 2) parking, 3) crime, 4)
preponderance of housing for special needs, and, 5) the cost of
acquisition. Staff has reviewed these issues and finds that:
1) Property values are affected by many economic, physical,
and social factors. If the property is well-managed and well-
maintained, there is no reason to believe that the project will
affect the value of neighborhood properties. The Housing
Cooperation Agreement requires proper maintenance of the property
and a comprehensive property management plan.
2) Parking was analyzed in the environmental review. Based on
a survey of similar facilities in other communities the available
parking is adequate to serve the 14 units.
3) There is no reason to believe that homeless families are
more likely to engage in criminal activities than any other family.
Since no drugs or alcohol will be allowed on the premises, crimes
related to substance abuse should be minimized.
4) Although the surrounding neighborhood has a significant
amount of senior housing, this is a characteristic of the entire
downtown area and not unique to this neighborhood. There is one
small group home for developmentally disabled persons which is
regulated by the State. It is staff's conclusion that even given
other institutions in the area providing various types of public
services the area will not decline.
5) The sales price of the property was negotiated by SBCS with
assistance from City staff and is. based on a recent appraisal.
Staff believes that the cost of acquisition is reasonable given the
size of the project, the condition of the buildings, and sales
comparisons. At the 7/13/93 Council meeting at which the CUP was
considered and approved, comparable market data was provided by
Real Estate Appraiser Truman Brooks, which was characterized by Mr.
Brooks as evidencing that the property should be valued at about
$620,000 ($44,286 per unit), rather than the $750,000 ($53,571 per
unit) established by the appraisal and appraisal update. It is
difficult to draw any hard conclusions from Mr. Brooks information,
as it does not constitute an appraisal, but rather a survey of
apartment sales in South Bay over 15 months, with only basic
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information about the listed properties and no analyses or
adjustments. Notably some support can be drawn for the accuracy of
the $750,000 formal appraisal figure by analyzing the very basic
information on sales price and proj ect size presented by Mr.
Brooks. Mr. Brooks sales data fairly neatly divides between small
and large apartment properties, with four properties at 18 units or
less and four properties at 75 units or larger (148 units average) .
When the average cost-per-unit for the two obvious categories is
calculated, the purchase cost of 31 Fourth Avenue looks quite
favorable. The important facts are:
1. The large project average per unit cost is $44.400.
2. The small project average per unit cost is $60.882.
3. The sales price cost per unit for 31 Fourth Avenue is
$50.892. (712,500.00 + 14 units)
Obviously, smaller projects will have higher cost-per unit, so the
data is not surprising. Also, obviously, the City's historical
commitment to small, scattered-site affordable housing developments
should be sustained in this case, dictating that only smaller
properties be sought.
Although it would not be prudent, as indicated earlier, to draw any
hard conclusions from sketchy data, it is comforting to know that
the data does seem to broadly support cautious expectation that
SBCS has negotiated a favorable purchase price and that the formal,
in-depth appraisals have merit.
SOURCES OF FUNDING
The total development cost for the short-term housing facility,
which includes rehabilitation is estimated to be $930,439 or
$21,638 per bed. An estimated development budget is attached as
Exhibit D.
The City Council, at its meeting on March 23, 1993, conceptually
approved funding in the amount of $618,000 for the Project (Exhibit
E). The funds identified for the project at that time were Agency
housing set-aside funds and CDBG entitlement funds.
since then, HUD has given the City a letter of approval to use its
HOME federal housing funds for the project. The City has received
a total of $1.243 million of HOME funds $750,000 of which is
available for 1992-1993. Staff recommends that the project loan be
funded with 1992-93 HOME funds.
Procedurally, the City must amend its 1992-93 HOME program
description to increase the amount of funds to the substantial
rehabilitate category by $610,146. These funds will be reallocated
from "Acquisition- owner" ($187,500) "New construction- rental"
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($187,500), "New Construction- owner" ($187,500) and "Acquisition-
rental" ($47,646). The amended HOME Program Description is
attached as Exhibit F.
SBCS is obtaining $458,000 of additional funding commitment for
acquisition, rehabilitation, and first year operation from the
following sources: As per to our agreement these funds are
required to be obtained before City can obligate its HOME funds.
National City
State ESP
FEMA Board
Private donations
Total
$250,000
105,000
31,000
72.500
$458,000
OPERATING BUDGET
SBCS is not requesting any first-year operating funds from the
City; the proposed operating budget is attached as Exhibit G. SBCS
has obtained commitments of funding in the amount of $143,000 for
operations and needs to raise an additional $23,000. They have
applied, or are in the process of applying, for $51,500 in grants
from foundations and banks. They plan to raise a minimum of $6,000
through local fund raising events.
IMPLICATIONS FOR OTHER HOUSING EFFORTS
Funding for the this project is not expected to have a significant
impact on the ability of the City/Agency to respond to future
housing projects. In regards to available housing funds, the City
still has approximately $600,000 in the Mobilehome Relocation Park
CIP and $632,500 remains in HOME federal housing funds. In
addition, the City anticipates receiving at least $400-500,000 per
annum in HOME funds from HUD.
Proposed housing projects which may need funding within the next
year include the Palomar Apartments (at-risk of conversion to
market-rate rents) in the amount of $250,000 and Bayscene
Mobilehome Park (which will provide spaces for displaced trailer
park residents) in the amount of $260,000. The City's HOME funds
cannot be used for these two projects, but Housing Set Aside and
CDBG funds can be used.
THE HOUSING COOPERATION AGREEMENT
The Housing Cooperation Agreement between the City and SBCS
(Exhibit A) governs the use of the HOME funds and regulates the
project operation, delivery of benefit and repayment terms for the
proposed $610,146 City loan. The Agreement contains strong
provisions regarding property management and occupancy standards.
It contains the following terms and conditions:
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1) ACquisition of the property will occur within 4 months,
rehabilitation will commence within 7 months, and full occupancy
will be achieved within 10 months. (Note: SBCS' projected timeline
is more ambitious, with occupancy to occur within 3 months.)
Failure to complete such actions within the time period provided
constitute a material default under the terms of the agreement.
2) SBCS is responsible for relocating all exiting tenants and in
accordance with the Uniform Relocation Act (federal law). The City
agrees to cooperate with SBCS to assist in obtaining ~ 8
certificates for eligible relocated tenants.
3) The Loan will be evidenced by a Promissory Note in the amount
of $610,146 and will be secured by a first priority Deed of Trust.
The loan will be non-recourse (i.e., the City will have no right to
pursue any SBCS assets other than the property to collect on the
loan.
4) Loan monies shall be disbursed as follows: (a) $482,162 at
closing for acquisition; (b) $37,607 for rehabilitation throughout
the rehabilitation for soft costs, including (c) $55,877 a
developer fee changed by SBCS, throughout the rehabilitation
period; and (d) $34,500 for relocation costs, as needed. Payments
of principal and interest are to be made annually from residual
receipts, i.e, available net income from the project. At the end
of 30 years the City will have the option to: (a) extend the use
restrictions whereby SBCS's repayment obligations shall remain
limited to the extent of residual receipts; (b) call due all
outstanding principal and interest, or (c) restructure loan
repayment and interest in accordance with prevailing interest
rates.
5) In the event of a sale of the property at the end of the 30-
year term, the following arrangement has been negotiated:
a) SBCS would be obligated to payoff the City's note, which
at 30 years would have an approximate value of $3.7 million.
b) any sales proceeds over the $3.7 million would be SBCS's
equity to keep. As the City's note accrues at 6% and
represents approximately 87% of the land value, it is
distinctly possible that there would be no sales proceeds over
the City's loan pay-off amount.
c) the City's loan proceeds (approximately $3.7 million) would
be program income to the HOME Program and would be re-spent on
low income housing activities. Seventy percent of those
proceeds would be totally at the discretion of the City.
Thirty percent of the proceeds would be held and controlled by
the City, but would be reserved for funding of SBCS low-income
housing programs at the mutual discretion of the City Council
and SBCS board. It should be recognized that it is the City's
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policy to maximize return to the City of any funds extended
for low-income housing activity. Some projects by their
nature allow full recapture; some allow no recapture. Letting
SBCS have a "reservation " on thirty percent of the loan
proceeds, with SBCS' s board and the City Council concurring on
the uses could be construed as a departure from the strongest
application of the City's policy. It is recommended in this
case as a means to acknowledge SBCS's anticipated 30-year
investment in this difficult and cost-intensive project,
allowing that agency the possibility of realizing an asset
enhancement after 30 years of investment in the short-term
housing development. It is perceived that establishing a
stronger local non-profit housing corporation in SBCS is
entirely beneficial to Chula Vista's community housing effort.
6) The City loan is contingent on SBCS receiving a $250,000 loan
from National City and the other funding necessary to acquire and
rehabilitate the property. SBCS must also demonstrate the
availability of one year's worth of operating costs. SBCS is also
required to make a irrevocable offer of dedication of 10 feet from
the westerly property line for street purposes.
7) The Housing Cooperation Agreement will be recorded against the
property, will be binding on successors, and includes the following
use restrictions:
a) The property will be used solely for residential housing
for homeless or very low-income families. Evidence of
lack of funding, lack of funding for homeless family
occupancy and a public hearing are required to allow
conversion to very-low income housing.
b) The Developer will maintain the property at its own
expense.
c) The units shall be rented to homeless families at a
rental rate not to exceed 30% of actual income; if the
units are converted to use for very-low income families,
the rental rate shall not exceed 30% of the median income
for very-low income families.
d) as Chula Vista is lending 70% of the total development
costs, priority for 9 of the 13 units shall be given to
Chula Vista residents in accordance with a plan to be
submitted to the City.
e) SBCS will refrain from discrimination and promote fair
housing opportunities.
f) SBCS will prevent occupancy by persons currently using
(or recently known to use) drugs or excessive alcohol,
and violent offenders.
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and violent offenders.
8) After 30 years, upon sale of the project, SBCS will be entitled
to 100% of any sales proceeds received in excess of outstanding
principal and interest under the note (estimated at $3.7 million).
All other proceeds shall be retained by the City, but 30% shall be
allocated for future use by SBCS.
FISCAL IMPACT: The City has $1.243 million in HOME federal housing
funds. If the City makes a loan to SBCS in the amount of $610,146,
then approximately $632,500 of HOME funds will remain. The City
expects to receive future HOME entitlements of $400-500,000 per
year.
RISK ANALYSIS: The City Attorney has prepared a risks analysis
memorandum attached as Exhibit H
a:\sbcs1.113
Exhibits:
..Exhibit A
.. Exhibit B
.. Exhibit C
-Exhibit D
Exhibit E
. Exhibit F
. Exhibit G
. Exhibi t H
Housing Cooperation Agreement
Report on Short-Term Housing Project
Supporting groups/organizations
Estimated development bud~~t
Council Resolution 17020 l(()1r$C~
Amended HOME Program Descript~on
Proposed operating budget
Risk Analysis
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EXHIBIT A
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City of Chula vista
276 Fourth Avenue
Chula vista, California 91910
Attention: city Clerk
SPACE ABOVE THIS LINE
FOR RECORDER'S USE
Assessor Parcel No. 566-010-10-00
No transfer tax is due since this Agreement constitutes
a covenant to a public agency, and does not involve a
transfer of fee interest.
Declarant
HOUSING COOPERATION AGREEMENT BETWEEN THE
CITY OF CHULA VISTA AND SOUTH BAY COMMUNITY
SERVICES FOR ACQUISITION AND REHABILITATION
OF 14 UNITS AT 31 FOURTH AVENUE
THIS HOUSING COOPERATION AGREEMENT (the "Agreement") is
entered into this day of , 1993 (the "Effective
Date"), by and between the city Council of the City of Chula
vista, a public body corporate and politic ("city") and South Bay
Community Services, a California non-profit public benefit
corporation ("Developer").
RECITALS
A. Developer desires (1) to acquire certain improved real
property (the "Property") located within the city of Chula vista
at 31 Fourth Avenue, and more particularly described in
Attachment A attached hereto and incorporated herein by this
reference, (2) to rehabilitate the Property by making certain
improvements and repairs thereto, (3) to relocate existing
tenants at the Property, and (4) to operate a 14-unit short-term
transitional housing project (the "Project") for Homeless
Families (defined below), and/or for Very Low Income Families
(defined below) subject to the terms and conditions set forth
herein.
B. The total Property acquisition rehabilitation and tenant
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Housing cooperation Agmt
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relocation cost for the Project is expected to be approximately
$930,439. Developer expects to marshall the following resources
in order to finance the acquisition, rehabilitation and
relocation aspects of the Project: a loan from the city of
$$610,146, loan or grants from other public sources in the amount
of $305,000, and private donations in the amount of $15,293.
C. Through the development and operation of the project,
City and Developer desire to provide Homeless Families with an
alternative affordable housing opportunity within the City, in
accordance with the Housing Element of the city's General Plan.
In order to promote this goal, the city desires to make a loan to
Developer for the acquisition, rehabilitation, relocation and
related development aspects of the Project in the amount of
$610,146, subject to certain conditions designed to assure the
implementation of the Project in accordance with the General
Plan, Federal law, HOME program regulations, and as otherwise
provided herein.
WHEREFORE, in consideration of their mutual and respective
promises, and subject to the terms and conditions hereinafter set
forth, the parties do hereby agree as follows:
ARTICLE I
ACQUISITION AND DEVELOPMENT OF THE PROPERTY
1.1 Work to be Performed. Developer agrees to (a)
acquire the Property, (b) relocate the existing Tenants (c)
rehabilitate the 14 units (each, a "unit") of residential housing
located at the Property and otherwise prepare them for occupancy
by, Homeless Families, and (d) operate the project for occupation
by Homeless and/or Very Low Income Families, subject to the terms
of Article 3 hereof, and all other terms of this Agreement. To
the extent required by the city, all such work shall be completed
in accordance with acquisition, rehabilitation, relocation and
management plans submitted to and approved by the City prior to
and as a condition precedent to City's funding of the City Loan.
1.2 Cost of Acquisition, Rehabilitation, and
Relocation. The costs of acquisition, rehabilitation, relocation
and operations of the Project shall be borne entirely by
Developer, including any and all costs and expenses incidental
thereto, subject only to City's obligation to make the city Loan
(defined below). Developer shall indemnify, protect, defend and
hold harmless City, and any and all City's representatives,
officers, agents, employees, and their respective successors from
and against any relocation claims and any and all other claims,
damages, actions, costs, demands, expenses, or liability
including, without limitation, attorney's fees and court costs,
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August 13, 1993
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and claims ar1s1ng out of Developer's acquisition, rehabilitation
or tenant relocation efforts for the Project. Notwithstanding
the foregoing, City agrees to exercise reasonable efforts in
order to. provide the County of San Diego and/or any appropriate
agency thereof, with written evidence supporting the argument
that families currently residing at the Property are, in effect,
being displaced by "government action" taken by the City as a
result of this Agreement.
1.3 Timing of Project. Developer shall have completed
acquisition of the Property within four (4) months of the Effec-
tive Date, commenced rehabilitation within seven (7) months of
the Effective Date, and shall thereafter diligently pursue the
same to completion such that all the Units are occupied by
Homeless Families and the resident manager within ten (10) months
after the Effective Date. Developer's failure to complete such
actions within the time periods provided shall constitute a
material default under the terms of this Agreement.
1.4 city and other Government Permits; Laws.
(a) Before commencement of improvement or
rehabilitation upon the property, Developer shall, at its own
expense, obtain any and all permits and approvals which may be
required by the city or other public agencies affected by such
work. By entering into this Agreement, City makes no
representations or assurances that the City or other public
agencies affected by such work will grant the required permits
and approvals required in connection therewith.
(b) Developer shall carry out the rehabilitation
and operation of the Project in conformity with all applicable
laws, including, without limitation, all applicable federal labor
standards, procurement regulations, Americans with Disabilities
Act requirements, and City policies adopted pursuant to said
federal standards, regulations, and requirements.
(c) Developer, at its expense, shall relocate all
currently eligible inhabitants of the Property in accordance with
the Uniform Relocation Act and other applicable Federal
regulations.
1.5 Hold Harmless; Insurance.
(a) Developer agrees to indemnify, protect,
defend and hold harmless city, and city's officers, agents,
employees, representatives and their respective successors, from
and against any and all claims, damages, actions, costs, demands,
expenses or liability, including, without limitation, attorney's
fees and court costs, which may arise from the direct or indirect
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Housing Cooperation Agmt
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actions or inactions of the Developer or those of its
contractors, subcontractors, agents, employees or other persons
acting on Developer's behalf which relate to the Property or
Project. This hold harmless agreement applies, without
limitation, to all damages and claims for damages suffered or
alleged to have been suffered by reason of the operations
referred to in this paragraph, regardless of whether or not city
prepared, supplied or approved plans or specifications, or both,
for the Property or Project. This indemnity by Developer, and
all other indemnities set forth herein shall survive any
foreclosure of the Property by the City pursuant to the terms of
the Trust Deed (defined below).
(b) within ten (10) days after the Developer's
acquisition of the Property, Developer shall furnish to the City
duplicate originals or appropriate certificates of insurance
coverage evidencing that Developer has obtained, or caused to be
obtained, insurance coverage with respect to the Project in type,
amount and from insurers as are reasonably acceptable to city,
naming the city and its officers, agents, employees,
representatives, and their respective successors, as named or
additional insureds at City's option. Such policies shall
include, without limitation "all risk" property casualty
insurance and comprehensive general liability insurance. without
limiting the generality of the foregoing, such policies shall
also include coverage to insure Developer's indemnity obligations
provided herein. Such insurance policies shall be maintained and
kept in force during all periods that Developer holds title to
the Property.
1.6 Anti-Discrimination During Rehabilitation
Construction. Developer, for itself and its successors and
assigns, agrees that in the construction of improvements to
rehabilitate the Property provided for in this Agreement,
Developer will not discriminate against any contractor, employee
or applicant for employment because of race, color, religion,
sex, national origin, or disability.
1.7 Further Indemnification of City. It is understood
and agreed that the parties hereto have entered this Agreement as
a method of providing necessary City assistance to Developer in
connection with the elimination of blight and redevelopment of
the Property pursuant to all applicable laws and that by
contributing public funds to assist in the accomplishment of such
redevelopment, or by otherwise contributing or assisting with the
accomplishment of such redevelopment, the City assumes no
responsibility for insuring that Developer's redevelopment of the
Property is adequately undertaken (including, without limitation,
the remediation of any hazardous or toxic substances on the
Property) and as a material consideration to City for entering
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Housing Cooperation Agmt
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into this Agreement, (and not by way of limiting the generality
of section 1.5(a), above), Developer agrees to indemnify,
protect, defend and hold harmless city and any and all City's
representatives, officers, employees, and their respective
successors, from and against any and all claims, damages,
actions, costs, demands, liabilities, obligations, expenses,
damages, losses or costs, including without limitation,
attorney's fees and court costs, which may arise or are in any
manner connected with the redevelopment of the Property pursuant
to this Agreement.
ARTICLE 2
CITY LOAN
2.1 city Loan Commitment.
The City hereby commits to make a loan to the Developer
("City Loan"), in the total amount of SIX HUNDRED TEN THOUSAND,
ONE HUNDRED FORTY SIX DOLLARS ($610,146) to assist in financing
the acquisition and rehabilitation of the Property, the
relocation of existing tenants and related development costs,
subject to conditions herein contained and on the terms and
conditions hereinafter set forth. The following conditions must
be fully satisfied, as reasonably determined by the City, in
order for the City's obligation to make the City Loan arises:
(i) that Developer obtains final approval of a $250,000 loan
or grant from the city of National City and secures the
other funding necessary to acquire and rehabilitate the
Property, relocate existing tenants, and otherwise prepare
the Project for occupancy by Homeless Families;
(ii) that the Developer grants to the city an irrevocable
offer of dedication ("IOD") for a strip of land ten (10)
feet wide located along from the westerly Property line to
be used for street purposes, as such property is further
described in the survey document attached hereto as
Attachment B;
(iii) that the city secures the full proceeds with which to
make the city Loan from the United States Department of
Housing and Urban Development through the HOME Investment
Partnerships program;
(iv) that Developer provides the city with adequate
assurances that the Developer will have access to sufficient
operational funds to finance Project operations for a period
of one (1) year from the Date of Occupancy (defined below);
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August 13, 1993
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(v) that the Developer meets and performs all other
obligations under this Agreement required to be performed
prior to the making of the City Loan;
(vi) that Developer duly execute (and acknowledge, if
applicable) the Note and the Trust Deed described in section
2.3 below and deliver the same to the City or its designated
agent; and
(vii) that all other conditions contained in the purchase
agreement governing Developer's acquisition of the Property
(other than the deposit of other monies necessary to
complete the purchase) have been fully satisfied or waived
in accordance with the provisions thereof.
2.2 Promissory Note and Deed of Trust.
The Developer's obligation to repay the City Loan shall be
evidenced by the promissory note (the "Note"), in the form of
Attachment C attached hereto and incorporated herein by
reference, and shall be subject to the terms and conditions
contained therein. The Note shall be secured by a deed of trust
(the "Trust Deed") encumbering the Property as a first priority
deed of trust in the form of Attachment D attached hereto and
incorporated herein by reference.
2.3 Repayment Obligations.
(a) Payment of principal and interest on the city Loan
shall be made, on an annual basis out of any and all "Residual
Receipts" (defined below) derived from the Property and/or the
operations of the Project. Such amounts shall be paid to the
City on a priority basis to all other debt service on the
Property; provided, however, in the event that National city
makes a loan ("National City Loan") to Developer for Project
acquisition, rehabilitation or tenant relocation on terms
substantially similar to those of the city Loan, Residual
Receipts shall be paid to the city and National City on a 70% to
the city, 30% to National City pro rata basis. Residual Receipts
shall be calculated by Developer every six months commencing with
the Date of occupancy as provided in Section 4.3. Residual
Receipts, if any, shall be paid to the City on or before thirty
(3D) days after the first year anniversary of the Date of
Occupancy and on or before thirty (3D) days after each subsequent
yearly anniversary thereafter.
(b) "Residual Receipts" is specifically defined as the
rental income from the Project minus the reasonable "asset
oriented" operating expenses for the same period. For purposes
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August 13, 1993
Housing Cooperation Agmt
Page 6
J 0-1'6
of this calculation, reasonable "asset oriented" operating
expenses shall include any and all costs associated with
operating the Property including, without limitation, a property
management fee not to exceed 5% of all other such operating
expenses, salaries and benefits of an on-site manager, utilities,
maintenance, insurance, property and other taxes, repairs,
approved alterations, trash collection, reasonable legal fees,
and allocable agency van costs, maintenance supplies,
administrative overhead directly attributable to the Property,
replenishment of capital reserves accounts included in
Developer's approved budgets, such amounts to be held in trust
exclusively for use for capital improvements to the Property, and
reasonable "asset oriented" operational reserves not to exceed at
any time an amount equal to 5% of the upcoming year's projected
operating expenses, such amounts to be held in trust exclusively
for use for the maintenance and preservation of the Property.
Notwithstanding the foregoing, for purposes of this calculation,
reasonable operating expenses shall not include (i) programmatic
or other similar service oriented operating expenses, or (ii)
principal and interest payments on any debt subordinate to the
City's debt except as otherwise provided herein.
(c) For so long as the Property is subject to a Restricted
Operations Period, as such period may be extended by the City
from time to time in accordance with section 3.7, below,
Developer's obligation to repay the City Loan shall be limited to
Developer's annual payment of Residual Receipts as described
above. Upon the expiration, or otherwise termination of the
Restricted Operations Period, the City shall have the option, at
any time, in its sole discretion, but after good faith
discussions with Developer as to available options upon ninety
(90) days written notice to Developer, to (a) declare all amounts
owed under the Note immediately due and payable, or (b) to
require installment payments under the Note based upon (i) a
restated principal balance comprised, in the aggregate, of any
and all outstanding principal and interest existing as of the
date of City's election, (ii) an interest rate per annum equal to
the Prime Rate in effect for Wells Fargo Bank, San Diego office,
or such other rate mutually agreed to by the City and Developer,
and (iii) monthly installments of principal and interest paid
over the course of an amortization schedule to be determined by
the city, in its sole discretion, not to be less than five (5)
years. In the event that city elects repayment approach (b),
City reserves the right to require that Developer execute a new
promissory note in favor of City in substantially the same form
as the Note, but reflecting the amended repayment terms described
above.
(d) In the event that the Property is sold or otherwise
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August 13, 1993
Housing cooperation Agmt
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/0- /4
From the Office of the city Attorney
City of Chula vista
Memorandum
From:
August 17, 1993
Bruce M. Boogaard, city Attorney
Date:
To:
Honorable Mayor and Councilmembers
cc:
SBCS, via Fax 420 8722
Re:
Proposed language change to Homeless Shelter Agreements
Amend section 2.3 Repayment Obligations, subsection (d) to read as
follows:
(d) In the event that the Property is sold or otherwise
transferred at any time after the Restricted Operations Period, as
it may be extended from time to time in accordance with Section 3.7
below, regardless of whether or not such sale is voluntary or
involuntary on the part of either City or Developer, as between
City and Developer, the parties agree as follows: Any and all
sales or other proceeds in excess of an amount equal to (a) the sum
of their current outstanding principal balance and all accrued but
unpaid interest under the Note, and (b) any direct costs to the
city incurred as a result of such sale including, without
limitation, the costs to the city of prosecuting a foreclosure
action or a condemnation action, shall be distributed to the
Developer. All remaining sales or other proceeds shall be
distributed to the city as follows: (a) an amount equal to seventy
percent (70%) of such remaining proceeds shall be retained by the
city for use as the City determines in its sole discretion; (b) an
amount equal to thirty percent (30%) of such remaining proceeds
("30% Monies") shall be retained by the city in a trust account to
be appropriated for the acquisition, development, rehabilitation,
operations of (or otherwise use in connection with) residential
facilities for Homeless Families or Very-Low Income Families,
subject to the mutual approval of such appropriations by a majority
vote of the City Council and the Board of Directors for Developer.
In the event that citv proposes to Developer a use for all or a
portion of the 30% Monies and Developer and the citv cannot reach
aqreement with respect to such proposed use. the ci tv in its
reasonable discretion. bv qivinq written notice to Developer ("At
Risk Notice"). mav declare the portion of the 30% Monies proposed
for such use to be "at risk" of reversion to the citv. to be used
in the citv's sole discretion. In the event that the citv and
Developer have not resolved their disaqreement over the use of anv
such "at risk" monies within two vears after the date of city's At
It; -I?q
Risk Notice. such monies. toaether with accrued interest thereon.
shall revert to the citv to be disbursed in the citv's sole
discretion. The parties aaree to exercise their best efforts to
reach aareement as to the use of the 30% Monies in order to avoid
the need for the citv to issue an At Risk Notice and the ultimate
reversion of such monies to the citv as provided above. Such best
efforts shall include meetina and conferrina on an expeditied
schedule with Developer as to a resolution.
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transferred at any time after the Restricted Operations Period,
as it may be extended from time to time in accordance with
Section 3.7 below, regardless of whether or not such sale is
voluntary or involuntary on the part of either City or Developer,
as between City and Developer, the parties agree as follows: Any
and all sales or other proceeds in excess of an amount equal to
(a) the sum of their current outstanding principal balance and
all accrued but unpaid interest under the Note, and (b) any
direct costs to the city incurred as a result of such sale
including, without limitation, the costs to the City of
prosecuting a foreclosure action or a condemnation action, shall
be distributed to the Developer. All remaining sales or other
proceeds shall be distributed to the City as follows: (a) an
amount equal to seventy percent (70%) of such remaining proceeds
shall be retained by the City for use as the City determines in
its sole discretion; (b) an amount equal to thirty percent (30%)
of such remaining proceeds shall be retained by the city in a
trust account to be appropriated for the acquisition,
development, rehabilitation, operations of (or otherwise use in
connection with) residential facilities for Homeless Families or
Very-Low Income Families, subject to the mutual approval of such
appropriations by a majority vote of the City Council and the
Board of Directors for Developer.
(e) Notwithstanding the foregoing, in the event that
Developer, or any successors thereto, materially breaches the
terms of this Agreement, the Note, or the Trust Deed, or triggers
a due on sale, transfer or encumbrance provision set forth in the
Note or Trust Deed, the City shall have the right in its sole
discretion, to declare immediately due and payable all
outstanding principal and interest due under the Note, or to
pursue any and all other remedies provided, herein, under the
Note or Trust Deed, or as otherwise provided at law or in
equity.
2.4 Lien Priority, Title Insurance.
As a condition to City'S obligation to fund the City Loan,
there shall be no liens or encumbrances upon the Property having
priority over the Trust Deed, other than those existing
non-monetary encumbrances which are disclosed in title reports to
be hereafter delivered by Developer to City and which have been
expressly consented to by the city Manager in writing, and those
other liens otherwise expressly consented to by the City Manager
in writing. Such consent shall not be unreasonably withheld,
subject to City'S right to attach reasonable conditions thereto.
Such priority shall be evidenced by an ALTA lender's insurance
policy, including title endorsements reasonably requested by the
City ("Title Policy") issued to City by a title company
acceptable to the City Manager (at Developer'S expense),
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August 13, 1993
Housing Cooperation Agmt
Page 8
to - ~()
concurrently with the closing of the City Loan, with liability
equal to the amount of $610,146.
2.5 Funding of City Loans; Sources of city Loan.
(a) The City shall deposit $482,162 of the City Loan
(the "Acquisition Funds") into an existing escrow account #23238-
TMC at Park Camino Escrow, which has been established for the
acquisition of the Property, or a separate sub-escrow account, at
city's option, upon receipt of written proof satisfactory to the
city Manager that: (a) Developer has obtained the requisite
public and private donations to acquire the Property and to
develop the Project, and (b) all other conditions to the city's
obligation to make the City Loan hereunder have been fully
satisfied. Such funds shall remain uncashed until such time as
all other conditions to close of escrow including the deposit of
other funds necessary to complete the purchase, has been
satisfied. In the event that Developer fails to acquire title to
the property within sixty (60) days after city's deposit of the
Acquisition Funds into escrow, city, at its sole option, with
unilateral written instructions to escrow, may require that all
such proceeds be immediately returned to City. Concurrent with
the closing of Developer's purchase of the Property, the
Acquisition Funds shall be released to the seller of the Property
and this Agreement and the Trust Deed, in accordance with the
City's instructions to Escrow, shall be recorded with the Office
of the San Diego county Recorder. Developer shall be responsible
for any and all of city's escrow, title and recording costs
arising in connection with the city Loan, such costs to be paid
by the Developer through escrow.
(b) Of the remaining amount of the City Loan, $37,607
(the "Rehabilitation Funds") shall be retained by the City to be
distributed to Developer upon Developer's application to the city
for distributions of portions thereof attributable to amounts
owed for rehabilitation work performed as of the date of such
application or amounts otherwise due to contractors or
subcontractors performing rehabilitation work on the Property.
As a condition to city's obligation to make any distribution of
Rehabilitation Funds, Developer shall provide the City Manager
with (a) an invoice submitted by the contractor or subcontractor
performing the work describing the work performed and specifying
the amount owed in connection therewith; (b) appropriate
mechanic's lien releases in a form acceptable to the city, and
(c) any other reasonable information, documentation or
certifications requested by City to assure the quantity and
quality of the work performed.
(c) Of the remaining amount of the City Loan, $55,877
(the "Development Funds") shall be retained by the City to be
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August 13, 1993
Housing cooperation Agmt
Page 9
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---- I
distributed to Developer as follows: (i) 33% of such amount shall
be distributed to Developer within three (3) days after close of
escrow for Developer's acquisition of the Property; (ii) 33% of
such amount shall be distributed to Developer upon completion of
all rehabilitation work; and (iii) 33% of such amount shall be
distributed to Developer upon achieving substantial occupancy of
the Project by Homeless Families. As a condition to city's
obligation to make any distribution of Development Funds,
Developer shall provide the city with any and all information,
documentation or certificates requested by the City to assure the
use of such funds for Project development purposes in accordance
with Developer's development budget.
(d) The remaining $34,500 of the City Loan (the
"Relocation Funds") shall be retained by the city to be
distributed to Developer upon Developer's application to the city
for distributions of portions thereof attributable to amounts due
and payable for relocation of existing tenants at the Property
that qualify for relocation assistance. As a condition to city's
obligation to make any distribution of Relocation Funds,
Developer shall provide city with any and all information,
documentation or certifications requested by City to assure the
use of such funds for relocation purposes.
(e) It is understood that the source of the proceeds
for the City Loan are derived from the federal HOME Investments
Partnerships Program or as otherwise determined by the City in
its sole discretion. Any amounts of the City Loan not
distributed to Developer in accordance with the provisions hereof
shall be retained by the City, at City's election, to be offset
against outstanding principal of the city Loan.
ARTICLE 3
COVENANTS RUNNING WITH THE LAND
3.1 Use and Maintenance Covenants. Developer covenants
and agrees, for itself, its successors and assigns, and every
person acquiring an interest in the Property or any part thereof,
that the Developer will:
(a) Use at least 13 units of the Property solely for
(i) residential housing for Homeless Families at a rental rate
not to exceed 30% of the families' actual gross income, or (ii)
subject to the restrictions set forth below, for residential
housing for Very Low Income Families at a rental rate not to
exceed 30% of the then current qualifying income for such
families, described below. For purposes of this Agreement, the
term "Homeless Families" shall mean two or more persons related
by blood or marriage, at least one of which shall be a minor (a
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August 13, 1993
Housing Cooperation Agmt
Page 10
/0 -;;2.:J..
person under the age of 18 years) who, because of their economic
circumstances, are sleeping on a regular basis in a place not de-
signed or constructed for habitation by members of an individual
family unit ("Non-Habitable Sleeping Location") including, but
not limited to, a park, street, sidewalk, vehicle, open space
area or shelter, or who, because of their economic circumstances,
are in the process of being evicted from a dwelling with the
reasonable prospect that they will have to sleep on a regular
basis in a Non-Habitable Sleeping Location, or who, because of
their economic circumstances, are disabled persons being
discharged from institutions with the reasonable prospect that
they will have to sleep on a regular basis in a Non-Habitable
Sleeping Location. Such definition shall be amended to the
extent required pursuant to the HOME Investment Partnerships
Program (24 CFR 82). For purposes of this Agreement, the term
"Very Low Income Fam.ilies" shall mean family households
(consisting of at least two persons related by blood or marriage,
at least one of which is a minor) having an annual income no
greater than 50% of the San Diego County median income, as
established by the united States Department of Housing and Urban
Development (HUD), as such parameter has been established and may
be amended by applicable Federal or California law;
(b) Maintain and repair the Property in a decent, safe
and sanitary condition, and according to all applicable building
codes, at its sole expense.
(c) Operate the Property and Project in conformance
with the HOME Investment Partnerships Program regulations (24 CFR
82) and the city's HOME program description, attached hereto as
Attachment E and incorporated herein by this reference.
(d) Operate and maintain the Property and Project in
full conformance with all terms and conditions of Conditional Use
Permit No. 17165 approved by the city Council on July 13, 1993
(the "Conditional Use Permit") attached hereto as Attachment F,
including any and all terms and conditions of any and all
reports, applications or other documents upon which the approval
of such Conditional Use Permit was predicated. In the event that
the Conditional Use Permit is subsequently and finally determined
to be invalid, this condition shall not apply as of the date of
such final determination.
3.2 conversion to Very Low Income Housing Tenants.
Developer covenants and agrees, for itself, its
successors and assigns, and every person acquiring an interest in
the property or any part thereof that Developer shall use its
best efforts to obtain adequate operational funding for the
continuous provisions of thirteen (13) units of residential
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August 13, 1993
Housing Cooperation Agmt
Page 11
/0-;)..3
housing for Homeless Families. In the event that (a) adequate
operational funding is not available for the operation of one or
more units for a period of three months or greater, (b) Developer
has reasonably exhausted (i) all available appeals of decisions
to deny such funding and (ii) alternative sources of funding, and
(c) Developer provides city with reasonable proof of the
occurrence of (a) and (b), then Developer may elect to convert
such Unit(s) to use for providing residential housing to Very
Low-Income Families, subject to City approval, in its sole
discretion, after a public hearing. In the event that any such
conversion is so elected by Developer and approved by the city,
Developer agrees to exercise its best efforts to attempt to
obtain sufficient funds to reconvert the converted units back to
use for occupation by Homeless Families. From time to time, the
City may require the Developer to submit to the city written
proof reasonably satisfactory to the City of Developer's "best
efforts" to reconvert such units.
3.3 Provided they qualify for the vacant Unit, as
described above, priority for occupancy shall be given to Chula
vista residents for nine (9) of the thirteen (13) units. Such
priority shall be assured pursuant to the terms of a priority
occupancy plan to be submitted to the city for its approval; such
approval shall be a condition precedent to City's obligation to
fund the city Loan.
3.4 obligation to Refrain from Discrimination.
Developer herein covenants and agrees for itself, its
successors and assigns, and every person acquiring an interest in
the Property, or any part thereof, that there shall be no
discrimination against or segregation of any person or groups of
persons on account of race, color, religion, sex, national
origin, disability, or familial status in the sale, lease,
sublease, transfer, use, occupancy, tenure, or enjoyment of the
Property, or any part thereof, nor shall Developer himself or any
person claiming under or through him, establish or permit any
such practice or practices of discrimination or segregation with
reference to the selection, location, number, use, or occupancy
of tenants, lessees, subtenants, subleases, or vendees in the
Property.
3.5 Form of Nondiscrimination and Nonsegregation
Clause.
Developer shall refrain from restricting the rental, sale
or lease of the Property on the basis of race, color, religion,
sex, national origin, disability, or familial status of any
person. All such deeds, leases or contracts shall contain or be
subject to substantially the following nondiscrimination or
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August 13, 1993
Housing cooperation Agmt
Page 12
JO-).~
nonsegregation clauses:
(i) In deeds: "The grantee herein covenants by
and for himself, his heirs, executors, administrators and
assigns, and all persons claiming under or through them that
there shall be no discrimination against or segregation of
any person or group of persons on account of race, color,
religion, sex, national origin, disability, or familial
status in the sale, lease, sublease, transfer, use,
occupancy, tenure or enjoyment of the land herein conveyed,
nor shall the grantee himself, or any person claiming under
or through him, establish or permit any such practice or
practices of discrimination or segregation with reference to
the selection, location, number, use or occupancy of
tenants, lessees, subtenants, sublessees or vendees in the
land herein conveyed. The foregoing covenants shall run
with the land."
(ii) In leases: "The lessee herein covenants by
and for himself, his heirs, executors, administrators and
assigns, and all persons claiming under or through him, and
this lease is made and accepted upon and subject to the
following conditions:
"That there shall be no discrimination against or
segregation of any person or group of persons on account of
race, color, religion, sex, national origin, disability, or
familial status in the leasing, subleasing, transferring,
use, occupancy, tenure or enjoyment of the land herein
leased, nor shall the lessee himself, or any person claiming
under or through him, establish or permit any such practice
or practices of discrimination or segregation with reference
to the selection, location, number, use or occupancy of
tenants, lessees, sublessees, subtenants or vendees in the
land herein leased."
(iii) In contracts: "There shall be no
discrimination against or segregation of any person or group
of persons on account of race, color, religion, sex,
national origin, disability, or familial status in the sale,
lease, sublease, transfer, use, occupancy, tenure or
enjoyment of the land, nor shall the transferee himself, or
any person claiming under or through him, establish or
permit any such practice or practices of discrimination or
segregation with reference to the selection, location,
number, use or occupancy of tenants, lessees, subtenants,
sublessees or vendees of the land."
3.6 Covenants Against Permitting occupancy by Persons Using
Drugs or Alcohol and Violent Offenders
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August 13, 1993
Housing cooperation Agmt
Page 13
/D~;)r-
(a) Developer covenants and agrees, for itself, its
successors and assigns, and every person acquiring an interest in
the Property or any part thereof, that no unit shall be rented
to, or permitted to be occupied by: (i) any person who is
currently using, or recently has used illicit drugs or excessive
alcohol (but not including a "recovering" drug or alcohol abuser
who is enrolled in a on-going treatment program and has not
recently used illicit drugs or alcohol): or, (ii) any person who
has, within the period of time extending back two (2) years prior
to any period of occupancy, or proposed occupancy, been convicted
of any offense which had as one or more of its elements either
(i) the possession, sale or use of any illicit drug or (ii) the
use of violence or force provided, however, that units may be
rented to or permitted to be occupied by past users of violence
or force in domestic violence cases if such perpetrator provides
proof of current and proficient participation or completion of a
certified program for batterers.
(b) Each agreement pursuant to which any person
occupies, or obtains the right to occupy, any unit shall contain
(and is hereby deemed to contain) provisions describing the
restrictions set forth above, and making the violation thereof
(whether a violation at the commencement of occupancy, by
subsequent conviction or by permitting a convicted person to
subsequently occupy) grounds for immediate termination of any
right of continued occupancy under such agreement by such
convicted person or any other person, which termination right
Developer covenants and agrees (as described above) that it will
vigorously enforce.
(c) It is understood and agreed that the purpose of
this Section 3.6 is to provide for decent, safe living
environments, and to the extent any provision of this section 3.6
is determined by a court of competent jurisdiction to be overly
broad, such provision shall be narrowed as may be required by
such court to permit enforcement thereof to achieve the purposes
described above.
3.7 Duration of Covenants; Enforcement.
(a) The covenants contained herein shall run with the land
and remain in effect commencing with the Developer's acquisition
of the property, and thereafter, for an initial period of thirty
(30) years commencing with the Date of Occupancy, which is
defined as the date upon which the first qualified tenant takes
occupancy of a Unit on the Property. The City, in its sole
discretion, may elect to extend the effectiveness of the
restrictive covenants provided herein for an unlimited number of
successive five (5) year periods by notifying Developer, or the
then current owner of the Property, in writing, of such election
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August 13, 1993
Housing cooperation Agmt
Page 14
!{)-)..b
prior to the expiration of the restricted operations period then
in effect, and recording an amendment to this Agreement, signed
by the city, reflecting such election. This initial 3o-year
restriction period, as extended by the City from time to time
pursuant to the terms hereof, shall be referred to as the
"Restricted Operations Period". The covenants established herein
shall, without regard to technical classification and
designation, be binding on the part of the Developer and any
successors and assigns to the Property or any part thereof, and
the tenants, lessees, sublessees and occupants of the Property,
for the benefit of and in favor of the Property and the city, its
successors and assigns, and any successor in interest thereto.
city is deemed the beneficiary of such covenants for and in its
own right and for the purposes of protecting the interests of the
community and other parties, public or private, in whose favor
and for whose benefit of such covenants running with the land
have been provided, without regard to whether City has been,
remain, or are owners of any particular land or interest therein.
city shall have the right to unilaterally terminate the covenants
at any time or, if such covenants are breached (subject to any
cure rights provided herein), to exercise all rights and remedies
and to maintain any actions or suits at law or in equity or other
proper proceedings to enforce the curing of such breaches to
which it or any other beneficiaries of this Agreement and the
covenants may be entitled, including specific performance (it
being recognized that the breach of such covenants cannot be
adequately compensated by monetary damages), and any and all
remedies provided in the Trust Deed and the Note including,
without limitation, foreclosure proceedings against the Property.
(b) without limiting the generality of the foregoing,
in the event the actual rent collected by Developer for any unit
is in excess of the maximum rent allowed for such unit in
violation of this Agreement, the amount by which any actual rent
collected for such unit exceeds such maximum rent for such unit
shall be immediately remitted to City by Developer. Such amounts
shall constitute liquidated damages to city as a result of
Developer's breach of its covenants set forth in Section 3.2, it
being understood that, because of the nature of the effect of
such breach, the actual damages to city as a result thereof would
be impracticable or extremely difficult to ascertain. It is
understood and agreed that the right of City to collect, or the
actual collection by City of, such above-described amounts shall
be in addition to any other remedies City may have against
Developer as a result of the breach of such covenants, including,
without limitation, rights of specific performance and the right
to prove actual damages.
(c) without limiting the generality of the foregoing,
in the event that there is a breach of the terms of this
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August 13, 1993
Housing Cooperation Agmt
Page 15
I () -e2 ?
-r-
Agreement or any covenants provided herein, the city shall have
the right, but not the obligation, to take any and all actions
the City deems necessary, to cure such breach, including, without
limitation, taking possession of the property for management
and/or repair purposes, and to obtain reimbursement from the
Developer for any reasonable costs incurred by the City in the
exercise of such remedy. Furthermore, Developer hereby covenants
by and for itself, its successors and assigns and every person
acquiring an interest in the Property, or any part thereof, that
the city and the city and other public agencies at their sole
risk and expense, shall have the right to enter the Property or
any part thereof at all reasonable times and with as little
interference as possible for the purposes of construction,
reconstruction, maintenance, repair or service of any public
improvements or public facilities located on the Property and to
ensure compliance with the Restrictions. Any such entry shall be
made only after reasonable notice to the Developer (provided,
however, that entry to ensure compliance with the Restrictions
may be made without notice to Developer) and, any damage or
injury to the Property resulting from such entry shall be
promptly repaired at the sole expense of the public agency
responsible for the entry except to the extent any such damage or
injury arises as a result of the negligence or willful misconduct
of the Developer or its officers, employees, agents, invitees or
contractors.
(d) No violation or breach of the covenants, conditions,
restrictions, provisions or limitations contained in this
Agreement shall defeat or render invalid or in any way impair the
lien or charge of any mortgage, deed of ~rust or other financing
or security instrument; provided, however, that any successor of
Developer to the Property shall be bound by such remaining
covenants, conditions, restrictions, limitations and provisions,
whether such successor's title was acquired by foreclosure, deed
in lieu of foreclosure, trustee's sale or otherwise. Failure to
comply with the covenants, conditions, restrictions, provisions
or limitations contained in the Agreement shall constitute a
material default hereunder permitting the City to exercise any of
its rights or obligations provided hereunder, including, without
limitation, those provided under the Note or Trust Deed, or
otherwise provided at law or in equity.
ARTICLE 4
PROPERTY MANAGEMENT AND MONITORING PROVISIONS
4.1 Property Management Plan.
Developer shall prepare and submit a Property Management
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August 13, 1993
Housing cooperation Agmt
Page 16
/ ()-~8"
Plan (Plan) to the Community Development Director prior to the
rental of any unit. The Plan shall include policies and
procedures by which the property will be managed and the name of
a proposed property management agent who has low-income housing
management experience. As part of the Plan, the Developer shall
provide at its sole expense a full-time resident property manager
who will occupy one of the units of the Project. In addition,
the Plan shall incorporate all conditions contained in the
Conditional Use Permit, a copy of which is attached hereto and
incorporated herein (Attachment F). The Community Development
Director shall have 10 days from the receipt of said Plan to
approve or disapprove all or part of the Plan. subsequent to
final approval of the Plan, any amendment proposed by the
Developer to said Plan shall be submitted to the Community
Development Director for approval.
4.2 Replacement of Property Management Agent.
In the event that the Property Management agent is not
managing the property in a manner consistent with the Property
Management Plan, then the Developer shall replace said agent
within 30 days of a written request from the Community
Development Director. In the .event that the Developer wishes to
replace the Property Management agent for any reason, then the
Developer shall submit a written request to the Community
Development Director to hire a new Property Management agent.
The Community Development Director shall have ten days to approve
or disapprove the request.
4.3 Reporting.
Developer shall, on a semi-annual basis, provide a written
report ("Report") to the city for the previous six months which
includes demographic information on all the tenants which have
occupied the units. In addition, the Report shall include a
financial statement of the income, operating expenses, and
Residual Receipts, if any for the Property. The Report shall be
submitted to the Community Development Director within 30 days of
the end of the applicable six month period.
4.4 Monitoring.
Developer shall fully cooperate with city staff in
connection with the city's structuring and administration of a
program to monitor affordable housing within the city. without
limiting the generality of the foregoing, such monitoring program
shall provide a mechanism whereby, on an annual basis, the
definitions provided in section 3.1 are adjusted for the annual
change in median income promulgated by HUD.
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ARTICLE 5
GENERAL PROVISIONS
5.1 Binding Effect of Agreement.
The burdens of this Agreement bind and the benefits of
this Agreement inure to the parties' successors and assigns;
provided, however, that in no event shall Developer be entitled
to assign any of its rights hereunder without the prior written
consent of City, which may be withheld in City's sole and
absolute discretion, except that such consent shall not be
unreasonably withheld with respect to an assignment thereof to
another non-profit corporation with the demonstrated capability
to implement the Project.
5.2 Relationship of Parties.
It is understood that the contractual relationship between
City and Developer is such that Developer is an independent
entity and not an agent of city.
5.3 Notices.
All notices, demands and correspondence required or
provided for under this Agreement shall be in writing and
delivered in person or dispatched by certified mail, postage
prepaid. Notice required to be given to city shall be addressed
as follows:
City of Chula vista
276 Fourth Avenue
Chula Vista, California 91910
Attn: community Development Director
and Finance Director
Notice required to be given to Developer shall be addressed as
follows:
Executive Director
South Bay Community Services
315 Fourth Ave., Ste. E
Chula vista, CA 91910
A party may change its address by giving notice in writing to the
other party. Thereafter, notices, demands and other pertinent
correspondence shall be addressed and transmitted to the new
address.
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5.4 Attorneys' Fees.
In the event of any conflict or dispute concerning the
interpretation or enforcement of any of the terms or provisions
of this Agreement or otherwise arising out of this Agreement, the
prevailing party shall be entitled to recover from the other
party any and all reasonable costs and expenses incurred in
connection therewith, including, without limitation, attorneys'
fees and court costs, whether or not a legal action is commenced.
5.5 Costs of Implementing Agreement.
Any and all title fees, recording fees, escrow fees or
other costs related to the implementation of the terms of this
Agreement shall be borne 100% by Developer.
5.6 Rules of Construction.
This Agreement, together with all agreements referred to
herein, constitutes the entire understanding and agreement of
the parties. This Agreement integrates all of the terms and
conditions mentioned herein or incidental hereto, and supersedes
all negotiation or previous agreements between the parties,
either written or oral with respect to all or any part of the
subject matter hereof. All waivers of the provisions of this
Agreement must be in writing and signed by the appropriate
authorities of the city or by Developer. All amendments hereto
must be in writing signed by the appropriate authorities of the
city and by Developer.
5.7 counterparts.
This Agreement may be executed in counterparts, each of
which shall be deemed an original, and which shall be deemed a
single agreement.
5.8 Severability.
If any part of this Agreement is held invalid, the
remaining terms and conditions shall not be effected unless their
enforcement under the circumstances would be unreasonable,
inequitable or otherwise frustrate the purposes of this
Agreement.
5.9 Time.
Time is of the essence of this Agreement and of each and
every term and condition hereof.
5.10 Survival; Defaults.
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(a) It is understood that any and all indemnities
provided herein by Developer to the City and/or city shall
survive any termination of this Agreement or foreclosure,
release or reconveyance of the Trust Deed or security
Agreement. All other obligations of Developer hereunder
shall likewise survive any release or reconveyance of the
Trust Deed or Security Agreement. It is understood that
except for those obligations under the Note which derive
from this Agreement, none of Developer's obligations
hereunder shall be secured by the Trust Deed or Security
Agreement; provided, however, that it is understood that any
default hereunder shall constitute an "Event of Default"
under the Trust Deed.
(b) Developer shall be in default hereunder if it
shall fail to observe or perform any covenant, condition,
restriction or provision contained herein on its part to be
observed or performed which continues after written notice
to Developer and failure to cure within five (5) business
days of receipt of such notice except where by the nature of
such default five days is insufficient, in which case until
such time as it is reasonably possible in which to cure such
default in City's discretion. The provisions of this
Section 5.10 (b) are intended to govern when a default
occurs under this Agreement, it being understood that there
are separate provisions under the Note, Trust Deed and
Security Agreement which govern when a default occurs
thereunder.
(c) No reference in this Agreement to any
particular right or remedy city may have in the event of any
particular default shall be construed as limiting any other
rights or remedies city may have at law or in equity as a
result of said default or any other default by Developer
hereunder.
5.11 Third Party Beneficiary.
In addition to those rights to which city is entitled, as
specifically provided elsewhere in this Agreement, city shall be
deemed to be a third party beneficiary to each and every other
provision of this Agreement which runs in favor of city. other
than the foregoing, there shall be no third-party beneficiaries
under the terms of this Agreement.
5.12 Authority.
Developer represents and warrants that: (a) it has the
full legal right, power and authority to enter into and to fully
perform' its obligations under the terms of this Agreement and,
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August 13, 1993
Housing Cooperation Agmt
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upon execution of this Agreement, (b) the persons executing this
Agreement, and all other agreements contemplated hereby, on
behalf of the Developer are the duly designated agents of the
Developer and are authorized to do so, and (c) that the execution
of this Agreement has been authorized by a duly adopted
resolution of its Board of Directors. Prior to closing on the
city Loan, upon City's request, Developer shall provide city with
a Resolution of its Board of Directors authorizing Developer to
enter into this Agreement and all other agreements referred to
herein, the form of such resolution to be subject to the City's
prior written approval.
IN WITNESS WHEREOF, this Agreement has been executed
by the parties on the day and year first above written.
THE CITY COUNCIL OF THE CITY OF CHULA VISTA,
CALIFORNIA, a public body, corporate and politic
By
Mayor
ATTEST:
city
SERVICES, a California
benefit corporation
'+1&!Y,v ~
Tit e:
By:
Title:
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ATTACHMENT A-
ATTACHMENT B-
ATTACHMENT C-
ATTACHMENT D-
ATTACHMENT E-
ATTACHMENT F-
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August 13, 1993
Attachment List
Description of Property
10D Survey
Promissory Note
Deed of Trust
HOME Program Regulations and Description
Conditional Use Permit
Housing Cooperation Agmt
Page 22
JD-3Lt
ATTACHMENT A
DESCRIPTION OF PROPERTY
[TO BE INSERTED]
COUNCIL AUTHORIZES THE CITY ATTORNEY
TO INSERT PROPER EXHIBIT IN FINAL
FORM OF AGREEMENT
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Housing cooperation Agmt
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I D -3$"
ATTACHMENT B
IOD SURVEY
[TO BE INSERTED]
COUNCIL AUTHORIZES THE CITY ATTORNEY
TO INSERT PROPER EXHIBIT IN FINAL
FORM OF AGREEMENT
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Housing Cooperation Agmt
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10"310
ATTACHMENT C
PROMISSORY NOTE
[TO BE INSERTED]
COUNCIL AUTHORIZES THE CITY ATTORNEY
TO INSERT PROPER EXHIBIT IN FINAL
FORM OF AGREEMENT
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Housing Cooperation Agmt
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ID-,3~
ATTACHMENT D
DEED OF TRUST
[TO BE INSERTED]
COUNCIL AUTHORIZES THE CITY ATTORNEY
TO INSERT PROPER EXHIBIT IN FINAL
FORM OF AGREEMENT
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ATTACHMENT E
HOME PROGRAM REGULATIONS AND DESCRIPTION
[TO BE INSERTED]
COUNCIL AUTHORIZES THE CITY ATTORNEY
TO INSERT PROPER EXHIBIT IN FINAL
FORM OF AGREEMENT
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ATTACHMENT F
CONDITIONAL USE PERMIT
[TO BE INSERTED]
COUNCIL AUTHORIZES THE CITY ATTORNEY
TO INSERT PROPER EXHIBIT IN FINAL
FORM OF AGREEMENT
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/ 0--4 D
Housing Cooperation Agmt
Page 28
PROMISSORY NOTE
SECURED BY DEED OF TRUST
$610,146
Chula vista, CA
, 1993
This Promissory Note ("Note") is executed pursuant to the
Housing Cooperation Agreement (the "Agreement") dated as of July
20, 1993, between South Bay community Services, a California non-
profit public benefit corporation ("Debtor") and the city of Chula
vista ("City"). (Capitalized terms used herein and not otherwise
defined shall have the meanings set forth in the Agreement).
1. For value received, Debtor promises to pay to City, or
order, the principal sum of SIX HUNDRED AND TEN THOUSAND, ONE
HUNDRED AND FORTY-SIX DOLLARS ($610,146), or such amount as may be
advanced from time to time, together with interest on the principal
balance from time to time remaining unpaid from the date of
disbursement until paid at the rate of six (6) percent per annum.
Interest shall be calculated on the basis of a 360 day year and
actual days elapsed, and shall be compounded monthly. Principal
and interest shall be due and payable as follows:
2. Payment of principal and interest on the city
be made in accordance with the payment terms set forth
2.3 and elsewhere in the Agreement, which such
incorporated herein by this reference.
Loan shall
in Section
terms are
3. All payments on this Note shall be applied first to the
payment of accrued but unpaid interest, and after all such interest
has been paid, any remainder shall be applied to reduction of the
principal balance.
4. The occurrence of anyone or more of the following events
shall constitute an "Event of Default":
(a) default under any agreement or other writing executed
in favor of City in connection with this Note, including but not
limited to the Agreement or the Deed of Trust; (b) default in the
payment when due of any installment or amount of principal or
interest due on this Note; (c) the making by Debtor of any
assignment for the benefit of creditors or the voluntary
appointment (at the request or with the consent of Debtor) of a
receiver, custodian, liquidator or trustee in bankruptcy of any of
Debtor's property, or the filing by Debtor of a petition in
bankruptcy or other similar proceeding under any law for relief of
Debtors; (d) the filing against Debtor of a petition in bankruptcy
or other similar proceeding under any law for relief of debtors, or
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Note for HCA/Homeless Shelter
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the involuntary appointment of a receiver, custodian, liquidator or
trustee in bankruptcy of the property of Debtor, if such petition
or appointment is not vacated or discharged within sixty (60)
calendar days after the filing or making thereof; or (e) the
occurrence of a default under any deed of trust to which the Deed
or Trust is junior and subordinate. Upon the occurrence of an
Event of Default, City may, at its option, declare the entire
unpaid principal balance and accrued interest to be immediately due
and payable in full or pursue any and all other remedies provided
herein, under the Note or Deed of Trust, or as otherwise provided
at law or in equity. Upon the occurrence of an Event of Default,
the entire unpaid principal balance and unpaid interest accrued
thereon shall bear interest, from the date of the Event of Default
until such default is cured at a rate of nine (9%) percent,
compounded monthly ("Default Rate").
5. This Note is secured by (a) that certain Deed of
Trust and Assignment of Rents ("Deed of Trust") of even date
herewith, executed by Debtor, as trustor, in favor of City, as
beneficiary, covering certain real property located in the Count of
San Diego, State of California (the "Property") as more
particularly described therein, and (b) all other existing and
future agreements or writings, executed in favor of City securing
this Note.
6. Debtor hereby agrees and acknowledges that the Deed
of Trust contains a "DUE ON SALE" provision whereby the city may
declare all sums secured hereby to be immediately due and payable,
without notice to Debtor or its successor on any sale, further
encumbrance or other transfer, whether voluntary or involuntary, of
the Property unless expressly authorized by City in writing in
city's sole discretion. Consent to one such transaction shall not
be deemed a waiver of the right to require consent to each
subsequent transaction.
7. Debtor acknowledges that if any payment required
under this Note is not paid within fifteen (15) days after the date
when the same becomes due and payable, the holder hereof will incur
extra administrative expenses (i.e., in addition to expenses
incident to receipt of timely payment) and the loss of the use of
funds in connection with the delinquency in payment. Because, from
the nature of the case, the actual damages suffered by the holder
hereof by reason of such extra administrative expenses and loss of
use of funds would be impracticable or extremely difficult to
ascertain, Debtor agrees that five percent (5%) of the amount of
the delinquent payment shall be the amount of damages to which such
holder is entitled, upon such breach, in compensation therefor.
Therefore, Debtor shall, in such event, without further notice, pay
to the holder hereof as such holder's sole monetary recovery to
cover such extra administrative expenses and loss of use of funds,
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Note for HCA/Homeless Shelter
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I D-4J..
liquidated damages in the amount of five percent (5%) of the amount
of such delinquent payment. The provisions of this paragraph are
intended to govern only the determination of damages in the event
of a breach in the performance of the obligation of Debtor to make
timely payments hereunder. Nothing in this Note shall be construed
as an express or implied agreement by the holder hereof to forbear
in the collection of any delinquent payment, or be construed as in
any way giving Debtor the right, express or implied, to fail to
make timely payments hereunder, whether upon payment of such
damages or otherwise. The right of the holder hereof to receive
payment of such liquidated and actual damages, and receipt thereof,
are without prejudice to the right of such holder to collect such
delinquent payments and other amounts provided to be paid hereunder
or under any security for this Note or to declare a default
hereunder or under any security for this Note.
8. Accrued but unpaid interest not paid when due shall
bear interest as principal. All payments of this Notes shall be
made in lawful money of the united states of America and in
immediately available funds at City's office, the address for which
is specified in the Agreement, or at such other place as the holder
hereof may form time to time direct by written notice to Debtor.
9. Debtor waives any right of offset it now has or may
hereafter have against the holder hereof and its successors and
assigns. Debtor waives presentment, demand, protest, notice of
protect, notice of nonpayment or dishonor and all other notices in
connection with the delivery, acceptance, performance, default or
enforcement of this Note (other than notices expressly required by
the terms of the Development Agreement). Notwithstanding any
provision herein or in any instrument now or hereafter securing
this Note the total liability for payments in nature of interest
shall not exceed the limits imposed by the applicable usuary laws.
10. Debtor expressly agrees to any extension or delay in
the time for payment or enforcement of the Note, to renewal of this
Note and to any substitution or release of any of the Property, all
without any way affecting the liability of Debtor hereunder. Any
delay on city's part in exercising any right hereunder shall not
operate as a waiver. city's acceptance of partial or delinquent
payments or the failure of City to exercise any rights shall not
waive any obligation of Debtor or any right of city, or modify this
Note, or waive any other similar default.
11. Debtor agrees to pay all costs of collection when
incurred and all costs incurred by the holder hereof in exercising
or preserving any rights or remedies in connection with the
enforcement and administration of this Note or following a default
by Debtor, including but not limited to reasonable attorney' fees.
If any suit or action is instituted to enforce this Note, Debtor
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August 11, 1993
Note for HCAjHomeless Shelter
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I O-Lf ?
promises to pay, in addition to the costs' and disbursements
otherwise allowed by law, such sum as the court may adjudge
reasonable attorney's fees in such suit or action.
12. This Note shall be governed by and construed
according to the laws of the state of California.
13. Time is of the essence for each and every obligation
under this Note.
14. Debtor represents and warrants that: (al it has full
legal right, power and authority to execute and fully perform its
obligations under the Note and the Deed of Trust; and (bl the
persons executing this Note on behalf of Debtor are the duly
designated agents of Debtor and are authorized tO,do so and (cl
that the execution of this Note and the Deed of Trust have been
authorized by a duly adopted resolution of its Board of Directors.
Debtor shall have no personal liability for any deficiency on this
Note.
15. The city waives any personal liability of Debtor and
agrees to look solely to the security under the Deed of Trust for
payment of the Note except as otherwise provided in the Agreement.
"Debtor":
SOUTH BAY COMMUNITY SERVICES,
a California non-profit public
benefit corporation
By
Kathryn Lembo
Its: Executive Director
By
Its:
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Note for HCA/Homeless Shelter
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10-44
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City of Chula vista
276 Fourth Avenue
Chula vista, California
Attention: City Clerk
91910
SPACE ABOVE THIS LINE
FOR RECORDER'S USE
DEED OF TRUST AND ASSIGNMENT OF RENTS
The parties to this DEED OF TRUST AND ASSIGNMENT OF
RENTS ("Deed of Trust"), made this day of , 1993,
are SOUTH BAY COMMUNITY SERVICES, a California non-profit public
benefit corporation ("Trustor"), whose address is 315 Fourth
Avenue, suite E, Chula vista, California, PARK CAMINO ESCROW, a
California corporation ("Trustee"), and THE CITY OF CHULA VISTA,
CALIFORNIA, a public body, corporate and public ("Beneficiary"),
whose address is 276 Fourth Avenue, Chula Vista, California.
Capitalized terms used herein and not otherwise defined herein
are used with the meanings set forth in that certain Housing
Cooperation Agreement ("Agreement") dated as of
1993, between Trustor and Beneficiary.
,
GRANT IN TRUST
Trustor irrevocably grants, transfers and assigns to
Trustee, in trust, with power of sale, that certain real property
located in the City of Chula Vista, County of San Diego, State of
california, described in Exhibit "A" attached hereto and made a
part hereof, together with all easements and other rights now or
hereafter appurtenant thereto and all improvements now or
hereafter located thereon (such real property, appurtenances and
improvements being referred to herein as the "Property"), and
together with the rents, issues and profits thereof, subject,
however, to the right, power and authority given to and conferred
upon Beneficiary by Paragraph 11 below to collect and apply such
rents, issues and profits.
1
I.O~)
OBLIGATIONS SECURED
This Deed of Trust is given for the purpose of
securing: (i) payment of the indebtedness evidenced by that
certain Promissory Note Secured by Deed of Trust (the "Note") of
even date herewith, in the principal amount of SIX HUNDRED TEN
THOUSAND, ONE HUNDRED FORTY SIX DOLLARS ($610,146.00), executed
by Trustor to the order of Beneficiary; (ii) performance of each
agreement of Trustor herein contained; (iii) payment and
performance of any additional existing or future obligations of
Trustor to Beneficiary when evidenced by a writing or writings
reciting that they are so secured; and (iv) any and all
amendments, modifications, renewals and/or extensions of any of
the foregoing, including but not limited to amendments,
modifications, renewals or extensions which are evidenced by new
or additional instruments, documents or agreements or which
change the rate of interest on any obligations secured hereby.
TO PROTECT THE SECURITY OF THIS DEED OF TRUST@ TRUSTOR
AGREES:
1. To keep the Property in good condition and repair;
not to remove or demolish any building or other improvement
thereon; to complete or restore promptly and in good and
workmanlike manner any building or other improvement which may be
constructed, damaged or destroyed thereon and to pay when due all
claims for labor performed and materials furnished therefor; to
comply with all laws, covenants, conditions, restrictions, leases
and other agreements affecting the Property or requiring any
alterations or improvements to be made thereon; not to commit or
permit waste thereof; not to commit, suffer or permit any act
upon the Property in violation of any law, covenant, condition,
restriction, lease or other agreement affecting the Property; to
cultivate, irrigate, fertilize, fumigate, prune and do all other
acts which from the character or use of the Property may be
reasonably necessary, the specific enumerations herein not
excluding the general. without the prior written consent of
Beneficiary except as otherwise provided pursuant to the terms of
the Agreement, Trustor shall not make any alteration to the
property, or commence or continue any work of improvement or
other action, which will or may decrease the value of the
Property or any portion thereof; and should Beneficiary at any
time determine that Trustor has commenced or is continuing in any
such alteration, work of improvement or other action, Trustor
shall immediately upon demand by Beneficiary cease such
alteration, work of improvement or other action, and promptly
restore the Property to its original condition. Beneficiary, its
agents or employees may, at any reasonable time and from time to
time, enter upon the Property and inspect the same and any books
and reports pertaining thereto.
2. To provide, maintain and deliver to Beneficiary
2
I D ~4 ~
fire and other liability insurance on the Property covering such
risks and in such form and amount as may be required by
Beneficiary from time to time, with insurers satisfactory to
Beneficiary and with loss payable to Beneficiary as its interest
may appear, and upon request Trustor will deliver the original of
such policy or policies to Beneficiary. Beneficiary may, at its
option, settle, compromise or adjust any insurance claims in such
manner as Beneficiary may determine. Any amount collected under
any fire or other insurance policy may be applied by Beneficiary
upon any obligations secured hereby and in such order as
Beneficiary may determine, or, at the option of Beneficiary, the
entire amount so collected or any part thereof may be released to
Trustor, on such terms and conditions as Beneficiary may require.
Such application or release shall not cure or waive any default
or notice of default hereunder or invalidate any act done
pursuant to such notice.
3. To appear in and defend any action or proceeding
purporting to affect title to the Property, the security hereof
or the rights or powers of Beneficiary or Trustee; and to pay all
costs and expenses, including without limitation cost of evidence
of title and reasonable attorneys' fees, incurred by Beneficiary
or Trustee in any such action or proceeding in which Beneficiary
or Trustee may appear, and in any suit brought by Beneficiary to
foreclose this Deed of Trust. Trustor shall give Beneficiary
prompt written notice of any such action or proceeding.
4. To pay: (a) at least 10 days before delinquency,
all taxes and assessments affecting the Property, including
without limitation assessments on appurtenant water stock; (b)
when due, all other encumbrances, charges and liens, with
interest, on the property or any part thereof; (c) all costs,
fees and expenses of this Trust, including without limitation all
fees and expenses of Trustee; and (d) all costs and expenses,
including without limitation reasonable attorneys' fees, incurred
by Beneficiary or Trustee in connection with the enforcement or
foreclosure of this Deed of Trust and/or the collection of the
obligations secured hereby, whether or not suit is filed.
5. Should Trustor fail to make payment or to do any
act as herein provided, Beneficiary or Trustee, but without
obligation so to do and without notice to or demand upon Trustor
and without releasing Trustor from any obligation hereof, and at
the expense of Trustor, may: make or do the same in such manner
and to such extent as either may deem necessary in order to
protect the security hereof, Beneficiary or Trustee being
authorized to enter upon the Property for such purposes; appear
in and defend any action or proceeding purporting to affect title
to the Property, the security hereof or the rights or powers of
Beneficiary or Trustee; pay, purchase, contest or compromise any
encumbrance, charge or lien which in the judgment of either
appears to be prior or superior hereto; and in exercising any
3
{ D-41
such powers, pay necessary expenses, incur any liability, expend
whatever amounts Trustee or Beneficiary may determine in their
sole discretion to be necessary therefor (including without
limitation cost of evidence of title), employ counsel and pay
reasonable attorneys' fees. If Beneficiary shall elect to pay
any tax constituting a lien against the Property, Beneficiary may
do so in reliance upon any bill, statement or assessment procured
from the appropriate office, without inquiring into the accuracy
thereof or into the validity or enforceability of such tax; and
in making any payments to protect the security hereof,
Beneficiary shall not be bound to inquire into the validity of
any apparent or threatened adverse title, claim, encumbrance,
charge or lien before making an advance for the purpose of
preventing or removing the same. Trustor hereby indemnifies
Beneficiary and Trustee for all liabilities, losses and expenses,
including without limitation reasonable attorneys' fees, suffered
or incurred by Beneficiary or Trustee by reason of any action
taken by Beneficiary or Trustee under this paragraph.
6. To pay immediately and without demand all sums
expended by Beneficiary or Trustee pursuant to the provisions
hereof, including without limitation all costs and expenses
incurred pursuant to Paragraph 5 hereof and reasonable attorneys'
fees expended in connection with the enforcement or foreclosure
of this Deed of Trust and/or the collection of the obligations
secured hereby, together with interest thereon from the date of
expenditure at the Default Rate, all such amounts and such
interest thereon constituting a portion of the obligations
secured hereby.
7. Any award of damages in connection with any taking
or condemnation, or for injury to the Property by reason of
public use, or for damages for private trespass or injury thereto
or for any other reason, is assigned and shall be paid to
Beneficiary as further security for the obligations secured
hereby, and Beneficiary shall be entitled at Beneficiary's option
to commence, appear in and prosecute, in Beneficiary's own name,
any action or proceeding and to make any compromise or settlement
in connection with any such taking or damage; and upon receipt of
such moneys Beneficiary may hold the same as such further
security, or apply or release the same in the same manner and
with the same effect as above provided for disposition of
proceeds of fire or other insurance.
8. By accepting payment of any sum secured hereby
after its due date, Beneficiary does not waive its right either
to require prompt payment when due of all other sums so secured
or to declare a default for failure so to pay.
9. At any time or from time to time and without
notice upon written request of Beneficiary and presentation of
this Deed of Trust and the Note or other obligations secured
4
lD~43
hereby for endorsement, and without liability therefor, and
without affecting the personal liability of any person for
payment of the obligations secured hereby, and without affecting
the security hereof for the full amount secured hereby on all
Property remaining subject hereto, and without the necessity that
any sum representing the value of any portion of the Property
affected by the Trustee's action be credited on the obligations,
Trustee may, regardless of consideration: (a) reconvey all or
any part of the Property; (b) consent to the making and
recording, or either, of any map or plat of the Property; (c)
join in granting any easement thereon; or (d) join in or consent
to any extension agreement or any agreement subordinating the
lien, encumbrance or charge hereof.
10. Upon written request of Beneficiary, and upon
surrender of this Deed of Trust and all notes and other
obligations secured hereby to Trustee for cancellation or
endorsement, and upon payment of its fees and charges, Trustee
shall reconvey, without warranty, the Property then subject
hereto. Any reconveyance, whether full or partial, may be made
in terms to "the person or persons legally entitled thereto," and
the recitals therein of any matters or facts shall be conclusive
proof of the truthfulness thereof.
11. Trustor hereby absolutely (and not merely as
security) irrevocably grants, transfers and assigns to
Beneficiary, during the continuance of these trusts, all of
Trustor's right, title and interest in and to the rents, issues
and profits of the Property. Prior to the occurrence of any
event of default hereunder, Trustor shall have the right to
collect such rents, issues and profits as they become due and
payable. upon the occurrence of any event of default hereunder,
Trustor's right to collect such rents, issues and profits shall
cease and Beneficiary shall have the right, with or without
taking possession of the Property, to collect all rents, issues
and profits including those past due and unpaid. Failure or
discontinuance of Beneficiary at any time, or from time to time,
to collect such rents, issues and profits shall not in any manner
affect the subsequent enforcement by Beneficiary of the right,
power and authority to collect the same. Nothing contained
herein, nor the exercise of the right by Beneficiary to collect
the rents, issues and profits shall be, or be construed to be, an
affirmation or approval by Beneficiary of any tenancy, lease or
option, nor an assumption of liability under, nor a subordination
of the lien of this Deed of Trust to, any such tenancy, lease or
option. The collection of rents, issues and profits and the
application thereof to the indebtedness secured hereby shall not
cure or waive any default or notice of default hereunder or
invalidate any act done pursuant to such notice. In collecting
and receiving the rents, issue and profits of the Property,
and/or in taking possession thereof, Beneficiary shall be
entitled to exercise all of the rights, remedies and powers of an
5
ID~9
owner thereof, may conduct the business of Trustor in
Beneficiary's own name or in the name of Trustor, may use any and
all of Trustor's properties and facilities, and may deal with
Trustor's creditors, debtors, tenants, lessees, agents, employees
and other Persons and/or companies having any relationship
whatsoever with Trustor, and alter or amend any contracts between
them, in any manner Beneficiary may determine. All rights,
remedies and powers given to Beneficiary herein may be exercised
by Beneficiary either in person, by agent or by a receiver to be
appointed by a court.
12. All sums secured hereby shall, at the option of
Beneficiary, immediately become due and payable without notice to
Trustor, on any sale or other transfer, whether voluntary or
involuntary, of all or any part of the Property or any interest
therein unless expressly authorized by Beneficiary in writing.
13. If this Deed of Trust is given to secure
obligations of any person or entity other than Trustor (such
person or entity being hereinafter referred to as "Principal"),
Trustor waives notice of default, presentment, demand for
payment, protest, notice of protest, notice of nonpayment or
dishonor, and all other notices and demands of any kind
whatsoever; and Trustor consents and agrees that Beneficiary may,
from time to time, without notice or demand and without affecting
the enforceability or security hereof: (a) take, alter, enforce
or release any additional security for the obligations secured
hereby; (b) renew, extend, modify, amend, accelerate, accept
partial payments on, release, settle, compromise, compound,
collect or otherwise liquidate the obligations secured hereby or
any security therefor, and bid and purchase at any sale; or (c)
release or substitute Principal or any guarantors of the
obligations secured hereby. Upon the occurrence of an event of
default hereunder, Beneficiary may enforce this Deed of Trust
independently of any other remedy or security Beneficiary may at
any time hold in connection with the obligations secured hereby,
and it shall not be necessary for Beneficiary to proceed upon or
against, and/or exhaust, any other remedy or security before
proceeding to enforce this Deed of Trust. until all obligations
secured hereby are paid in full, Trustor waives all right of
subrogation.
14. There shall be a "default" or "event of default"
hereunder upon the occurrence of any of the following events:
(a) default in the payment or performance of any obligations
secured hereby or contained herein; or (b) the occurrence of any
"Event of Default" under the Development Agreement.
15. upon the occurrence of any default or event of
default hereunder, all sums secured hereby shall, at the option
of Beneficiary, immediately become due and payable without notice
to Trustor, and Beneficiary may execute and deliver to Trustee
6
~o~
written declaration of default and demand for sale and written
notice of default and of election to cause to be sold the
property, which notice Trustee shall cause to be filed for
record. Beneficiary also shall deposit with Trustee this Deed of
Trust, all notes and other obligations secured hereby, and all
documents evidencing expenditures secured hereby. After the
lapse of such time as may then be required by law following the
recordation of such notice of default, and notice of sale having
been given as then required by law, Trustee, without demand on
Trustor, shall sell the Property at the time and place fixed by
it in such notice of sale, either as a whole or in separate
parcels, and in such order as it may determine, at public auction
to the highest bidder making payment to the Trustee at the time
of sale by means of (i) cash, in lawful money of the united
states, (ii) a cashier's check drawn on a state or national bank,
a state or federal credit union, or a state or federal savings
and loan association domiciled in this state, or (iii) a cash
equivalent which has been designated in the notice of sale as
acceptable to the Trustee; each payable at the time of sale.
Trustor shall have no right to direct or determine whether the
Property shall be sold as a whole or in separate parcels or the
order of the sale of separate parcels or the part of the Property
to be sold, if only a part is sold. Trustee may postpone the
sale of all or any portion of the Property by public announcement
at such time and place of sale, and from time to time thereafter
may postpone such sale by public announcement at the time fixed
by the preceding postponement. Trustee shall deliver to such
purchaser its deed conveying the property so sold, but without
any covenant or warranty, express or implied. The recitals in
such deed of any matters or facts shall be conclusive proof of
the truthfulness thereof. Any person, including Trustor,
Trustee, or Beneficiary, may purchase at such sale. After
deducting all costs, fees and expenses of Trustee and of this
Trust, including without limitation cost of evidence of title and
reasonable attorneys' fees in connection with the sale, Trustee
shall apply the proceeds of the sale to payment of: all sums
expended under the terms hereof not then repaid with accrued
interest at the rate set forth herein; all other sums then
secured hereby; and the remainder, if any, to the person or
persons legally entitled thereto.
16. This Deed of Trust applies to, inures to the
benefit of and binds, all parties hereto, their heirs, legatees,
devisees, administrators, executors, successors and assigns. The
term "Beneficiary" shall mean the holder and owner, including
pledgee, of the note or other obligations secured hereby whether
or not named as a beneficiary herein. In this Deed of Trust,
whenever the context so requires, the masculine gender includes
the feminine and/or neuter, and vice versa, and the singular
number includes the plural and vice versa. Where more than one
person or entity signs this Deed of Trust, their obligations
hereunder shall be joint and several.
7
10-5/
17. Trustee accepts this Trust when this Deed of
Trust, duly executed and acknowledged, is made a public record as
provided by law. Trustee is not obligated to notify any party
hereto of any pending sale under any other deed of trust or of
any action or proceeding in which Trustor, Beneficiary or Trustee
shall be a party unless brought by Trustee.
18. Beneficiary, or any successor in ownership of any
obligations secured hereby, may from time to time, by instrument
in writing, substitute a successor or successors to any Trustee
named herein or acting hereunder, which instrument, executed by
Beneficiary and duly acknowledged and recorded in the office of
the recorder of the county or counties where the Property is
situated, shall be conclusive proof of proper substitution of
such successor Trustee or Trustees, who shall, without conveyance
from the predecessor Trustee, succeed to all of its title,
estate, rights, powers and duties. Such instrument must contain
the name of the original Trustor, Trustee and Beneficiary
hereunder, the book and page where this Deed of Trust is recorded
and the name and address of the new Trustee.
19. No power or remedy herein conferred is exclusive
of, or shall prejudice, any other power or remedy of Trustee or
Beneficiary given by law or under any other agreement between
Trustor and Beneficiary. Each such power or remedy may be
exercised from time to time as often as deemed necessary by
Trustee or Beneficiary.
20. For any statement regarding the obligations
secured hereby, Beneficiary may charge the maximum amount
permitted by law at the time of the request therefor.
21. This Deed of Trust shall be governed by
California law.
22. Trustor hereby requests that a copy of any notice
of default and a copy of any notice of sale be mailed to Trustor
at Trustor's mailing address set forth above.
"Trustor":
SOUTH BAY COMMUNITY SERVICES
a California non-profit, public
benefit corporation
By
Kathryn Lembo
Title: Executive Director
By
Title:
I D~5~
"Beneficiary"
THE CITY OF CHULA VISTA
Mayor
ATTEST
City Clerk
Approved as to form by
city Attorney
F: \homc\attomey\.bcsdced
I a-53
9
EXHIBIT "A"
Legal Description
[To be inserted]
fO-54
10
EXHIBIT B
REPORT ON THE SHORT TERM HOUSING PROJECT
THE NEED FOR A SHORT-TERM HOUSING FACILITY
In the Housing Element, the City has established an objective to
"identify non-profit providers to operate emergency shelter
programs" and to consider assisting shelter providers with CDBG or
RDA housing set-aside funds as well as encourage them to apply for
State or Federal funds. The City's Comprehensive Housing
Affordability strategy (CHAS) identifies housing for homeless
families as a top priority.
South Bay has only 8 of the 1,912 transitional and short-term
housing beds located in San Diego county. Last year, South Bay
Community Services surveyed providers and documented that an
average of 155 Chula Vista residents are in shelters or in need of
shelter on any given night.
To find emergency shelter, most South Bay residents must go to
downtown San Diego. During the winter months, the Interfaith
Shelter Network (ISN) provides 12 temporary shelter beds in local
churches. In addition, four South Bay social service agencies
distribute FEMA-funded hotel/motel vouchers to homeless families
during winter and spring months.
In October 1992, the Regional Task Force on Homelessness published
the "Homeless Profile: An examination of the distribution and
conditions of homelessness throughout the communities of San Diego
County." The report states that "between 350 and 500 homeless
persons, on average, live in Chula Vista. Homeless service workers
have long believed that there is a higher percentage of family
members [i.e. homeless families versus single persons] in South Bay
than there is in San Diego."
The table below summarizes information from the "Homeless Profile"
report on the distribution of transitional and short-term beds:
Est. Perm. Cold ISN* Total
Homeless Beds Weather
San Diego 4500-5500 1300 400 61 1761
No. Co. Coastal 3400-4950** 182 170 24 376
Escondido 1481-1681** 261 95 12 368
,
East County 400- 500 155 75 12 242
South Bay 1000 8 0 12 20
* ISN is Interfaith Shelter Network
** This number includes homeless farmworkers and day laborers.
/fJ/S3 / ID-S-S
RELATION BETWEEN THE SHORT-TERM AND TRANSITIONAL HOUSING PROJECTS
The development of the short-term housing project along with SBCS'
proposed transitional housing project will add 98 beds, giving
Chula Vista and the South Bay a total of 106 permanent beds; this
will be equal to 5% of the total beds county-wide. Chula vista
will still have fewer permanent beds than any other region of the
County.
The proposed transitional housing project will be located at 17
Fourth Avenue, adjacent to the short-term housing project. The
Agency approved $374,000 of housing set-aside funds for this
project a year ago, but its development is contingent upon SBCS
obtaining a federal McKinney grant (which will be announced in
August). A number of economies of scale are created by operating
the transitional and short-term housing side-by-side, including
operating efficiencies through shared property management, case
management, and administration.
The goal of both housing programs is helping families to become
self-sufficient and to get back into permanent housing. Short-term
housing gets families off the street, providing food and shelter
for up to 60 days. Transitional housing gives families needing
additional assistance the time to achieve self-sufficiency, with an
average tenancy of six months and maximum tenancy of two years. A
case manager will be assigned to each family, developing and
monitoring a plan to meet their special needs. Families meeting
the goals and objectives of their case management plan will be
eligible to move from the short-term housing into the proposed
transitional housing.
SITE SELECTION
Prior to selecting the 31 Fourth Ave. site for the project, South
Bay Community Services, with assistance from Community Development
Department staff, conducted an extensive search for potential
sites. They identified numerous available apartment complexes
(including bank-owned properties), warehouse-type sites, and small
motels; they even analyzed the feasibility of a new construction
project in eastern Chula Vista. A list of sites reviewed by SBCS
is attached.
The 31 Fourth Avenue complex was selected because of its location,
manageable size, economic feasibility, and the flexibility of the
seller, who agreed to a lengthy escrow period. It is located
between "C" and "D" Sts., across from the YMCA and Eucalyptus Park.
The location is on a major bus route and is close to shopping and
services.
Attached is a Sales Comparison Table of comparable properties sold
over the past two years. Five comparable properties sold in the
range of $60-91/sq.ft., with the subject property priced at
$76/sq.ft. Also listed on the Table are "REO" properties (sold by
banks after foreclosure). These properties are selling in the
{ 0-5'/P
range of $45-57jsq.ft. but are larger complexes (75-150 units) .
Besides their size, another problem with REO properties is that the
buyer generally needs to make an offer quickly and close escrow in
a short period of time. SBes attempted to option an REO property
for this project. However, the eity is not in a position to make
a "quick deal" due to the lengthy period necessary for local
approvals and for SBeS to submit grant applications.
[A:\SBCS.RPT]
DAVID'S DISK
lD-S1
SOU'.fB BAT COJOlU)lI'rY SERVICES
SB~-TBRK HOUSI.G SITE SBLBCTIOM
During the last two years, South Bay community services has
reviewed over forty-five s!.tes for the short-term hou.ing project.
propertie. have been presented to, and discussed by, committees of
chula vi.ta citizens and real estate experts, Ecumenical council
repre.entatives, and city staff. The sites include bank
fo:reclosure properties, motels, convertible office buildings,
public land, other apartments, and new construotion. 31 Fourth
Avenue was chosen as the 11Iost efficient and econolOical sit.e.
sites reviewed:
590 Flower street.
1049 Fourth Avenue
1160 Walnut Avenue
25 & 33 Naples st.reet
33 Woodlawn Avenue
99 Broadway
782 Third Avenue
242 Kennedy Street
317 Zenith Street
528 Flower Street
536 Parkway
550 Fourth Avenue
546 Arizona Street.
189 F Street
315 Fourth Avenue
363 B Street
1089 Broadway
250 Quint.ard Street
Dew const.ruction in East Chula
77-9 woodlawn Avenue
671 Seavale Street
Main & Walnut (NB corner)
54 woodlawn Avenue
24 Woodlawn Avenue
653 Seavale Street
551 D Street
553-563 G Street
720 Fourth Avenue
372 Broadway
566-568 Flower Street
376 MoSS Street.
3735 Bonita Canyon Road
556 Ari~ona street
564 J street.
615 Moss Street
1405 First Avenue
369 It Street
1820 Rio.. Avenue
864 Broadway
610 G street
535 Woodlawn Avenue
vista
54 Woodlawn Avenue
589 Flower Street
382 Zenith Street
ItJ-58 / {D-51
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EXHIBITC
ORGANIZATIONS/INDIVIDUALS PARTICIPATING
IN SHORT-TERM HOUSING PROJECT
The following are some of the organizations and individuals (listed
in alphabetical order) which have committed to providing services,
volunteer hours, donations, materials, or other items to the proposed
short-term housing program for homeless families:
ALPHA Project American Residential Mortgage Corp.
Balboa Thrift & Loan Bank of California
Bank of America Barber, Jonathan
B.C. McCabe Foundation Better Homes & Gardens Foundation
Boys & Girls Club of Chula vista BRIDGE Housing, Inc.
California Housing Partners~ip Corporation
California Corporation for Car~ng Communities
Calvert Securities Cas a Familiar de Amanecer
Chula vista Elementary School District
Chula vista Literacy Team Chula vista Presbyterial Church
Chula vista Welfare Council Community Congregational Church
Community Economics Comprehensive Training Systems
Downey Savings Episcopal Community Services
Fair Housing Council Family Stress Center
Fieldstone Companies First Interstate Bank
Home Depot HomeFed Bank
Household Bank International Savings Bank
Interfaith Shelter Network Knights of Columbus
Latter Day Saints Rehabilitation Services
Local Initiatives Support Corp. Lutheran Social Services
MAAC Project Mercy Housing, Inc.
METRO, Inc. MONFRIC Property Management
Needle, Mr. and Mrs. Jerry
Nonprofit Federation for Housing
North County ~ousing Foundation
Otay Family Health Center
Pilgrim Lutheran Church
Project Ayuda
Radisson Harbor View
Regional Task Force on Homeless
Salvation Army
San Diego Community Foundation
San Diego Interfaith Housing
Security Pacific Bank
Shepard, Mr. John
South Ba~~ommunity Services
South Bay Family YMCA
South Bay Head Start
South Bay Union School
Southwestern College -
Studio E Architects
Temple Beth Sholom
U.C.S.D. Volunteer Connection
Wells Fargo Bank
World SHARE
and Community Development
Occupational Training Services
Pacific Commerce Bank
Price Waterhouse
Project Safehouse
Red Cross R.S.V.P. Program
Saint Vincent de Paul
San Diego Affordable Hsg. Coalition
San Diego Co. Mental Health Svcs.
Scharff, Mr. Edward
Second Chance
Social Security Administration
South Bay Ecumenical Council
South Bay Good Neighbor Center
South Bay Pentecostal Church
District Southland Equities
Small Business Center
Sumitomo Bank
Thursday's Meal
vietnam Veterans
World Savings
Zajicek, Lupe and Fred
I D -f;/I/D -h~
.31 4th Ave. ESTIMAtED DEVELOPMENT BUDGET
14 unit AcqUisition and Rehabilitation
ACQUISITION
CONStRUCTION
Rehabilitation (1)
Overhead/Profit (15%'
Fumigation
Contingency (10%)
SOFT COSTS
Furnishings (2)
Rehab Design & Engineering (est.)
Environmental Testing
Builder Risk/Liab + Owner's Insurance
Legal Fees
Title/Recording EscroW
,
Appraisal
Consultant (3)
Administrative Expenses (4)
RE Tax During Constr. (51
Bldg. Permit/Fees
Construction Audit
Capitalize ReserveS
TENANT RELOCATION (6)
TOTAL ESTIMATED DEVEL COST
ESTIMATED OEVEL COST / UNIT
ESTIMATED DEVEL COST I SHELTER BED
.NOTES:
(1) rehab estimate by County Housing Authority
(2) $2,000 per unit, half to be donated
(3) Contract with Community Economics
(4) $8,000 per unit, llVg. nonprofit cost per LISC
(5) $750,000 appraised property value,
0.26% prop tax w/ proposed exemption, 3 mo.
(6) per Nancy Lahey. HUO Relocation Expert
SOIlRCES:
State of California - ESP grant
City of National City
In- Kind Rehab Donation
Other Donations
City of CV - Low/Mod Fund\CDBG
TOTAL SOURCES
41976
6296
4000
4198
14000
2500
5000
5000
4000
7000
1500
5000
42000
469
5000
4000
20000
46000
6(l/9S
(sth 1 deS)
$712,500
56470
115469
46000
~930.439
$.66.460
$21.638
$105,000
200000
12000
3293
610146
$930.439
IfJ-~41() -68
EXHIBIT
])
o
.~
RESOLUTION NO. 17020
IXHIBlf
E
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA CONCEPTUALLY APPROVING FUNDING NOT TO EXCEED
$618,000 TO SOUTH BAY COMMUNITY SERVICES FOR ACQUISITION
OF A 14 UNIT APARTMENT BUILDING AT 31 FOURTH AVENUE TO
BE USED AS A SHORT TERM HOUSING FACILITY
WHEREAS, the provision of short term housing units is identified as an
objective in one Housing Element and a priority in the Comprehensive Housing
Affordability Strategy; and,
WHEREAS, South Bay Community Services (hereinafter 'SBCS') is a non-profit
community based organization with the ability to acquire, rehabilitate, and
manage affordable housing, and provide services to homeless and displaced
famil ies; and,
WHEREAS, SBCS is requesting $618,000 to acquire 14 units at 31 Fourth
Avenue for short-term housing for homeless and displaced families; and,
WHEREAS, the City and Agency may have funds available from Community
Development Block Grant (CDBG), HOME federal housing program, and and Low and
Moderate-income Housing Set-aside funds.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES HEREBY
FIND, DETERMINE, ORDER AND RESOLVE AS FOLLOWS:
SECTION I.
The City Council does hereby conceptually approve funding not
to exceed $618,000 to South Bay Community Services for
acquisition of 14 units at 31 Fourth Avenue to be used as a
short-term housing facil ity for homeless famil i es. Sai d
conceptual approval shall be subject to adequate environmental
review, a conditional use permit for the project, and a
development agreement setting forth the terms and conditions
of the funding.
..
,
,
SECTION II.
The City Council does hereby direct and authorize the City
Manager to negotiate a development agreement with South Bay
Communi ty Servi ces and return same to the Ci ty Council for
approval.
SECTION I II.
This Resolution shall take and be in full force and effect
immediately ypon the passage and adoption hereof.
I D-0~
Resolution No. 17020
Page 2
.. I ~
'\
~
The City Clerk shall certify to the passage and adoption of
this Resolution; shall enter the same in the book of original
Resolutions of said City; and shall make a minute of the
passage and adoption hereof in the minutes of the meeting at
which the same is passed and adopted.
SECTION IV.
..
Presented by
(JAS~.
Chris Salomone
Community Development Director
..
,,' (.
i
Approved as to fo
Bruce M. Boogaard
City Attorney
{()-lo~
~
,
,
\
J
.~
Resolution No. 17020
Page 3
\....-
PASSED, APPROVED and ADOPTED by the City Council of the City of Chul a
Vista, California, this 23rd day of March, 1993, by the following vote:
YES: Councilmembers: Fox, Horton, Nader
NOES: Councilmembers: Moore
ABSENT: Councilmembers: None
ABSTAIN: Councilmembers: Rindone
< /:?:' .:7
~-r~p"'..-;?
Tim Nader, Mayor
ATTEST:
.,~,
% I
,
Beverly . Authelet, City Clerk
STATE OF CALIFORNIA ~
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
ss.
~ I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do
hereby certify that the foregoing Resolution No. 17048 was duly passed, approved,
and adopted by the City Council held on the 23rd day of March, 1993.
Exe~uted this 23rd day of March, 1993.
"
.,,--,
I () -~ 1
.
CITY OF CHULA VISTA
HOME PROGRAM DESCRIPTION
1992-93
(Proposed Amendment)
EXHIBIT
F
Introduction
The HOME Investment Partnership Program (HOME Program) is a new
federal housing program which allocates funds by formula directly
to state and local governments to promote affordable housing. HOME
funds may be used to provide affordable rental housing and home
ownership through new construction, acquisition, rehabilitation,
and tenant-based rental assistance. Participating jurisdictions
are able to provide this assistance to both for-profit and
non-profit housing developers or directly to qualified homebuyers
or renters. The assistance may take the form of grants, loans,
advances, equity investments, and interest subsidies.
The City of Chula vista has submitted a Comprehensive Housing
Affordabili ty strategy (CRAS) to the U. S. Dept. of Housing and
Urban Development. (HUD) . This document was approved by HUD and
they officially declared the city a participating jurisdiction in
the HOME program on July 20, 1992.
Amount and Use of Funds
The City will receive $748,000 of HOME funds from HUD and $2,000 of
HOME funds from the State for the city's 1992-93 HOME program. The
City plans to utilize these funds for the following types of
activities:
ESTIMATED USE OF FUNDS
Total HOME $
Rental $
Owner $
New construction
o
o
o
Substantial Rehab
$610,146
$610,146
o
Other Rehab
o
o
o
Acquisition
$139,854
$139,854
o
Tenant Assistance
o
o
o
The New Construction funds can be used to assist a project by a
for-profit or non-profit developer who is building home ownership
units for households earning 80% or less of the area median income.
{ D-h9
The Acquisition-Rental funds can be used to fund acquisition
of existing units for households earning less than 60% of
median.income, including short-term transitional housing for
homeless families.
Communitv Housinq Development Orqanizations (CHDO)
The City of Chula Vista will collaborate with non-profit
organizations in the development, acquisition, preservation,
and rehabilitation of affordable housing. The following
policy is part of the City's recently adopted Housing
Element for 1991-96:
"The City supports and encourages usage of a broad spectrum
of approaches to produce lower-income affordability in
rental housing including: (a) utilization of available
Federal, State and county programs and funding; (b)
participation of non-profit development corporations either
individually or in partnership with the private
developers. .."
The City will provide a minimum of 15 percent ($112,500) of
its HOME allocation to qualified CHDOs for acquisition of
rental or homeowner units. The City will provide technical
assistance to CHDOs in the following areas: applying for
HOME funds; financing housing development; processing
development projects; and, complying with HOME program
regulations. Up to 10 percent of the CHDO set-aside funds
may be used by CHDOs for project-specific assistance as
authorized under Section 92.301.
Affirmative Marketinq
The City funds and oversees a comprehensive Fair Housing
Program, which is provided under contract by the Fair
Housing Council of San Diego. This program includes
outreach, education, counseling, and assessment. The City
will work with the Fair Housing Council to promote fair
housing in all affordable housing projects and activities.
The practice of non-discrimination and equal opportunity
will be promoted for all HOME-funded housing projects
through the policies and procedures described below:
1. The Fair Housing logo and slogan will be incorporated
into all public information and outreach.
2. Development agreements between the City and a
developer/owner will specify the owner's responsibility to
promote fair housing when soliciting tenants or homebuyers.
The owner will be required to utilize BUD and/or the City's
fair housing brochures, posters, logos, etc.
lD-1D
3. The developer/owners shall be required to plan and
implement special community outreach to solicit
participation of persons who might not be reached through
mass-media outreach.
4. The developers of new housing will participate in the
County's Voluntary Advertising and Marketing Agreement to
promote fair housing in all their promotional activities.
5. In the event the City finds that a developer/owner is
not in compliance with these policies, the City will specify
corrective action which must be implemented within 30 days.
If this deadline is not met by the developer/owner, then the
City will find the him/her in default of the development
agreement.
6. Records will be maintained documenting the affirmative
marketing efforts of the City and developers/owners of HOME-
funded projects. The City will assess the progress and
effectiveness of the affirmative marketing program on an
annual basis. Modifications to the program will be made as
needed.
Minoritv/Women Business Outreach Proqram
The City of Chula Vista will establish a minority outreach
program consistent with 24 CFR 92.350 which shall be
applicable to all affordable housing activities authorized
under the HOME program or any other applicable federal
housing law. The minority outreach program will encourage
the use of minority and women-owned business enterprises in
connection with HOME-funded activities to the maximum extent
possible.
With regard to the expenditure of HOME funds, the City will:
1. Work with other local jurisdictions in the region to
develop a systematic method for identifying and maintaining
an inventory of certified MBE and WBEs, their capabilities,
services, supplies and/or products;
2. Utilize the local media, electronic and print to market
and promote contract and business opportunities for MBEs and
WBEs;
3. Develop informational and documentary materials on
contract/subcontract opportunities for MBEs and WBEs;
4. Develop solicitation and procurement procedures that
facilitate opportunities for MBEs and WBEs to participate as
vendors and suppliers of goods and services;
IO-~(
5. Sponsor business opportunity-related meetings,
conferences or seminars with minority and women business
organizations;
6. Maintain centralized records with statistical data on
the utilization and participation of MBEs and WBE as
contractors/sub-contractors in all HUD-assisted program
contracting activities.
The City has previously adopted a Minority and Women
Business Enterprise Construction Program for federally-
funded construction projects. This M/WBE policy will be
utilized in all HOME-funded construction contracts.
First-Time Homebuver provisions
Any for-sale housing units developed with HOME funds or any
units sold to first-time homebuyers who are assisted by HOME
funds will be encumbered with resale restrictions which
require that:
a) any subsequent buyer is also low-income (earning 75% or
less of median income) and will be the principal resident of
the property
b) financing is such that the subsequent buyer does not pay
more than 30% of his/her gross household income for PITI
(principle, interest, taxes, and insurance) .
c) the unit remains affordable for a period no less than 15
years for existing housing and no less than 20 years for new
housing.
Specific guidelines and deed restrictions for the resale of
HOME-assisted property will be established and submitted to
HUD for approval prior to their implementation as required
by 92.254(a) (4). These guidelines will provide the initial
owner with a fair return on his/her investment.
The City plans to utilize a "shared appreciation" loan
structure. Under the shared appreciation arrangement, any
appreciation realized during the term of home ownership will
be shared between the City (which provided the initial
subsidy loan) and the homeowner. The owner's share of
appreciation shall be calculated based on his/her
downpayment, principal reduction payments, and the cost of
any major improvements which increased the value of the
property.
I o-{ ~
~PERATING BUDGET
31 Fourth Av.pue - Short-Term Housing
Flece' Year 1993-94
EXPENSES
Personnel
Case Manager
Resident Manager
S.U.I.
F.I.C.A.
Total Personnel
Non - Personnel
Properly Management Firm ($45/u/mo)
Food ($75!u!week)
Maintenance ($30/u/rno)
Utilities ($60Mmo)
Insurance
BUB Tokene
Supplies ($25/u/mo)
Clinical Consultant
Admin & Indirect (29% of 10talelCpenllBs)
Total Non-Personnel
TOTAL EXPENSES
REVENUES
FEMA
City of National City
Donations Received/Carryover
New Donetlons Recalved
Donations Needed
TOTAL REVENUES
ponetlona Recelved/Carrvover
Sen Olego community Fndtn
Secu/lty Pacific Bank
Walla Fargo
Bank 01 America
Home Depot
Houeehold Bank
Total Donations Recvd./Csrryover
New Donations Received
Anonymous- Donor
B.C. MoCabe Foundation
Sum/tomO Bank
International Savings Bank
UCSD Student A88n.
Total New Donatione
$10,000
5000
4000
2500
5000
.1500
$28.000
$26.000
6000
21100
250
600
f33.3~
$24,400
10000
657
2632
7560
50000
5040
10080
7500
5000
4200
1976
37423
31000
50000
28000
33350
24118
1 D-~ 3
EXHIBIT
<S-
$37,689
128719
potential Donations
Fundralslng Events
Fletoher Foundation
McCarthy Family Fndtn
Home Savings
M5. Foundation
Homeland Foundation
G.A.G. Charitable corp.
Setzer Foundation
Pryor Foundation
Hearst Foundationa
Total Potential Donations
817/93
(sth1_0p3)
sacs
$166.468
S166.468
$6,000
5000
5000
2500
2000
10000
1000
5000
5000
10000
~51.500
EXHIBIT "H"
From the Office of the city Attorney
City of Chula vista
Memorandum
From:
August 13, 1993 ~~
Bruce M. Boogaard, City Attorneyro~
Glen Googins, Deputy City Attorney~
Date:
To:
Honorable Mayor and Councilmembers
City Manager
Community Development Director
Juan Arroyo
Re:
Bargain and Risk Analysis
Transitional Housing Facility
31 Fourth Avenue
I. Bargain Points:
A. We Give:
1. We loan $610,000, non-recourseY if
a. SBCS gets a National City loan or grant of
$250,000,
b. $120,000 from other sources, and
c. 1 year of operating resources of approximately
$166,000, and
d. we get HOME Funds in the amount of $610,000
2. with interest accruing at 6% annually on unpaid
principal
3. to be repaid out of excess project income ("Residual
Receipts ") ~I if any, and
1. Can't go after SBCS other assets, only the property.
2. Not modified with a constraining definition which limits the
income to rental income only, and precludes "program" income and
expenses, such as grants, loans, donations for homeless shelter
operations.
1
J D-1~
4. due on sooner of
a. sale,
b. in 30 years at city's option,
c. cessation of use as homeless or very low
income facility,
5. At end of 30 years (and, if extended, at five year
intervals thereafter), City has option to:
a. agree to extend covenant to operate as
homeless or very low income residence, in
which case repayment obligation remains
limited to extent of Residual Receipts
b. call note due and foreclose
c. restructure note repayment terms based on
present market rates.
6. Sale proceeds after 30 years to be distributed:
a. first to the city in the amount of the unpaid
principal and accrued but unpaid interest on
the note, 70% of which will be required to be
used for homeless or low income purposes under
HOME program income guidelines, and 30% of
such proceeds will be required to be used
within the constraints of the guidelines and
the concurrence of SBCS and the city Council.
b. to SBCS to the extent proceeds from the sale
exceed the principal balance (including
accrued but unpaid interest) of the Note are
available (estimated unpaid principal and
accrued but unpaid interest may equal
approximately $3.67 million if residual
receipts are insufficient to permit any
payments of debt service), (and, of course,
the 30% with the approval of the city Council
discussed above) .
B. They Give:
1. Relocate the tenants.
2. Rehabilitate the Property.
3. Covenant to use good faith to operate a transi-
tional housing facility at 31 Fourth Avenue,
2
lD-1S
consisting of 13 units, for screened~f homeless
families on approximately a 60 day cycle,~ for as
long as funds permit, not to exceed 30 years,
unless extended by agreement of the parties, with
SBCS's option to convert to very low income housing
during periods of time that operational funds to
subsidize homeless family occupation are not
available.
4. Priority given to Chula vista homeless for 9 of 13
units.if
5. Interest and principal to the extent of Residual
Receipts.
6. First priority trust deed against the property, but
any Residual Receipts will be shared on a 70-30
basis with National city.
II. Remaining Risks.
A. Risk A.
The facility may convert to a very low income
facility after 1 year.
1. Conditions to Materialization:
Lack of sufficient funding to operate "homeless"
services.
2. Likelihood of Materialization:
Unknown. Presently SBCS has no commitment of
funding beyond 1 year.
3. Magnitude of Impact if Risk Materializes:
Homeless facility and program would not be
operated. City and/or Agency may be called upon
for subsequent year subsidies, but there is no
commitment in any of the documents to do so now.
4. Partial Mitigation:
3. Non-drug users even though reformed is permitted.
reformed-alcohol abusers. Non- or reformed- batterers.
Non-or
4. Contract requires compliance with CUP which requires a 60 day
treatment cycle.
5. Enforcement of this provision is speculative, and practically
impossible to enforce.
3
{D-~~
Reasonable proof of lack of funding must be shown
to the city Council at a public hearing before they
convert. ~f
B. Risk B.
SBCS may terminate any form of subsidized
housing--homeless or very low--at the facility
at any time sooner than 30 years.
1. Conditions to Materialization:
Lack of sufficient funding to operate a very low
income facility.
2. Likelihood of Materialization:
Unknown. This risk has a lesser chance of
materialization than does Risk A because a "very
low" income facility is more likely to generate
rents that will sustain the project than a homeless
transitional facility.
3. Magnitude of Impact if Risk Materializes:
Assuming Council appropriates HOME funds for the
project,Y Federal HOME funds will be the only thing
at risk. No part of general or "set-aside" funds
are now at risk. We would lose fair share credits,
and would have to try to make them up elsewhere.
4. Partial Mitigation:
The covenants stay on the property requiring at
least very low income use for 30 years. This would
lower the market value without our release of the
covenants. The trust deed will be triggered and we
could foreclose under the deed of trust. By
foreclosure, and release of the covenants, we would
get proceeds which we could use for other homeless
or very low income projects.
C. Risk C.
The full amount of the loan may never be
repaid.
1. conditions to Materialization:
Subrisk C-l.
The value of the Property may not
6. section 3.2 of Agreement.
7. This decision is in question because of the four vote
requirement on the amendment of any budget.
4
I D-t""(\
appreciate at the same or approximately the same
rate as the accumulation of the unpaid principal
and interest on the Note.
Subrisk C-2. Of that portion that may get repaid
from the sale of the Property, approximately $1.73
million in the above example, the documents subject
the use of 30%, or $519,000, to the joint
concurrence of the SBCS Board and the city
Council.~'
2. Magnitude of Subrisk C-1:
For example, if there are insufficient Residual
Receipts to pay down any principal or accrued
interest during the 30 year life of the loan, the
unpaid balance of the loan at the end of 30 years
would equal approximately $3.67 million dollars.
If the property value only appreciates at 3% over
the same time, the property will be worth only
$1,729,424 at that time. since the note will be
payable only from the sale proceeds of the
property, we would lose approximately $1.94 million
of principal and interest on the repayment.
3. Magnitude of Subrisk C-2:
In the above example, the City Council may lose
control over $519,000, but they would have "veto
power" over this amount as the SBCS Board may
recommend.
2. Likelihood of Materialization:
Subrisk C-1 depends on the rate at which property
may appreciate in value over the next 30 years.
Subrisk C-2 is certain. Because the loan is non-
recourse to SBCS and the repayment obligation is
generally limited to net income from the Project
(which will be minimal) full repayment of the loan
is highly unlikely. Furthermore, at the end of 30
years, the city has agreed to set aside 30% of any
sales proceeds for SBCS use.
3. Aggravation of Risk:
The state may require that the city's first
8. We attempted to negotiate complete control, but met with
maximum resistance from SBCS.
5
lD~13
priority lien be subordinated to the state's
$105,000 lien for a period of two years or more.
D. Risk D.
As a condition to making its $250,000 loan to
the Project, National city may insist upon a
pro rata portion of any sales proceeds which
may reduce the city's allocable portion of the
repayment.
1. conditions to Materialization:
National City may review the terms of our loan with
SBCS and may insist, as a condition to their
contribution, that they receive a pro rata sharing
in sales proceeds. This will require further
Council approval.
2. Likelihood of Materialization:
Possible. National City has requested copies of
our documents to be used in order to implement
their loan of monies to SBCS for the project.
3. Magnitude of Impact if Risk Materializes:
We would lose approximately 30% of the
principal and interest of the note, or,
above example, approximately $519,000.
unpaid
in the
E. Risk E.
By not including loans, grants, donations
other. non-rent or programmatic income in
definition of Residual Receipts ,2/ it is
possible that monies contributed to the
project would be used by SBCS for SBCS
operations other than the Project rather than
to pay down the City loan.
1. Conditions to Materialization:
SBCS obtains surplus donations specified for the
Project, but which are reallocated for other SBCS
operations.
2. Likelihood of Materialization:
Unknown. We were unable to obtain agreement to a
definition of Residual Receipts which would include
all grants, loans, and other donations for the
9. A matter which we attempted as a negotiation strategy, but were
unsuccessful in convincing SBCS.
6
1'0-10
Project. As a result, SBCS will not be required to
fully account to the City for all Project income
and expenses or the manner in which such non-rental
income monies are allocated.
3. Magnitude of Impact if Risk Materializes:
Increases risk that there will be no Residual
Receipts from the Property and that the City Loan
will not be repaid. Note: To the extent that it
is unlikely that Residual Receipts would be derived
from the Project even with the expanded definition
proposed above, the impact of this risk may be
immaterial.
G. other Miscellaneous Risks
Risk G.
It will be practically impossible to enforce
the notion that Chula vista homeless will get
priority.
III. Disclosure Items
A. The "deal" permits use of our loan proceeds (approximately
$610,000) for the payment over to SBCS of development fees in the
amount of $42,000 which may not tangibly contribute to the direct
development of, or enhancement of, the "transi tional housing
facility" or the program to run same. It will give SBCS seed money
for future projects.
B. The "deal" permits the payment of "soft costs" many of
which have already been incurred and paid for with other SBCS
funding sources.
F:\home\attorney\sbcs2.wp
7
16-8D jltJ-81
CASA NUESTRA
RULES AND REGULATIONS
Eligibili t.y:
Youth ages 12 - 17. Youth must be willing to follow the rules and
expectations of the program. Youth must be enrolled in education
program toward completion of high school. Youth must not be
currently suicidal or homicidal. Youth may not be currently using
drugs or having just begun their recovery. Y'>uth must be
emotionally stable enough not to require hospitalization. Family
must be willing to enter into counseling with the youth working the
goal of, family reunification. If family reunification is not
possible, and the youth is of an age and maturity level where it is
feasible for them to work and become independent, they may go into
the Independent- Living Skills (LL.S.) program. In the LL.S.
program, yout~_must also be willing to get a job and save a portion
of their earnings. Family involvement in the I.L.S. program is
preferred but not required.
Int.ake Procedure:
Referrals to the program may come from anywhere. Youth may be
referred by ot.her shelters, Child Protective Services, Police
Department, social workers, parents, self, etc. All youth will be
brought in for an intake assessment. If the youth has family
involvement, the family must also be present for the assessment.
Program Descript.ion:
South Bay Community Services shelter Cas a Nuestra' s goal is to
reunify and stabilize families. If this is not possible, our goal
is to facilitate the young adult's transition from being dependent
to becoming a self-sufficient adult. The program site consists of
a four-bedroom house. Twenty-four hour Residential Counselors
supervise the youth in the milieu and provide crisis intervention.
The Program Counselor meets with the youth twice a week for
individual therapy. Additionally, the youth attends a number of
peer groups, socialization groups, and other counseling and
education groups as needed. For youth with family involvement,
there is family counseling and a weekly multi-family group.
For youth in the I.L.S. program, the youth's Case Manager assists
the youth in developing independent living skills and acquiring and
maintaining employment. The Shelter Coordinator oversees the
physical condition of the facility to assure a proper living
environment.
For all youth who enter, the program assists
meal preparation, housekeeping, in-house
socialization skills, and time management.
with such tasks as
problem solving,
Lengt.h of St.ay:
Two to six weeks for the reunification program. Up to 5 months for
the I.L.S. program.
Capacit.y:
8 youth. Male and female.
(D-~').
.
Taking Calls Requesting Services
When receiving a call for services, staff should fill out the
Potential placement Form (PPF). This form is used for recording
the initial contact with the client. Usually, this process begins
with a telephone call by the youth, parent, or another service
provider. If the PPF is filled out at the shelter, the PPF should
be brought over to the agency by the next business ~ay or as soon
as possible. If and when the youth is placed in services, the PPF
is transferred from the waiting List to the Case File.
When filling out a PPF, staff should assess whether the client
would be best served through multi-family group, individual
counseling, drug prevention services, shelter services, etc.
Clients should not automatically be set up for entering the
shelter. Some clients would be best served receiving services
while still in the home. Staff needs to assess the situation of
each client on an individual basis when taking the call.
Staff should attempt to gather information from more than one
source if possible. If the call is from a parent, attempt to get
information from the youth as well. The reverse is also true if
the call comes from a youth. It is important to indicate on the
PPF which party gave which information, particularly if the
parent's and youth's views conflict. -
Some clients may not be appropriate for services in our program or
agency. For a description of what is and is not appropriate for
our services, see the section on Screening Criteria.
Referring to Multi-Family Group
For most clients with any family involvement, staff should urge
them to attend the Multi-Family Group. Staff should inform the
client/family that Multi-Family Group is a useful intervention for
families experiencing conflicts.
Additionally the group is often a gateway to other services
including individual family counseling, drug prevention, and
shelter services. Multi-Family Group enables the group facilitator
to further assess a new client/family to see which services are
most appropriate for their needs.
Sometimes individual counseling or shelter services are not
immediately available due to lack of bedspace or counselor time.
When this is the case, Multi-Family Group is a good way to get
services to that family right away. Often, a family will find that
the support and process of Multi-Family Group is all their family
needs to help resolve their conflicts. Families who still need
other services will be referred to them as space becomes available.
Client Referral Process
When a counselor or bed space becomes available, the Case Manager
(C.M.) should arrange to interview the client in person. The C.M.
( D-8)
should try to interview the parents and youth at the same time if
possible.
Clinical Interview
The purpose of the Clinical Interview is to gather information on
the client's personal history, treatment history, a'ld behaviors.
Once the C.M. has conducted the Clinical Interview, s/he should
have enough informatLon to assess what type of services the client
needs. The Clinical Interview will also help the C.M. in making
out the Case,Plan.
Screening Criteria
In assessing a potential client, these are some of factors to be
given special consideration:
Is the clientcurrentlv suicia~l or homicidal?
If so, s/he would not be appropriate to bring into Cas a Nuestra.
We are not set up to take care of clients who are actively suicidal
or homicidal. It would be negligent to bring in a client who would
be an extreme danger to him/herself or others.
Many clients have had suicidal ideation in the past and some have
attempted suicide or made suicidal gestures. This does not
automatically exclude them from residential services at Casa
Nuestra. What is important to assess is the client.s immediate
risk of harming him/herself. If you can assess that the client is
not currently thinking of hurting him/herself or a significant
period of time has gone by since the person has had serious
suicidal ideation, they may be appropriate for placement at Casa
Nuestra. See the attachment on Suicide. .
One way to assess the client's level of danger to other clients is
to ask the client how s/he generally handles his/her anger. Asking
the client if s/he has ever injured someone else or put another
person in the hospital is another way. These questions are
included in the Clinical Interview. Sometimes the client or a
referring case worker will offer such information up front.
Many clients have difficulty in dealing with their anger and many
have in fact hit other people in their lifetimes. What is
important to assess if how often clients have acted out in this
manner and how workable you think this problem is with them. It
will be a judgement call on the part of the intake staff as to the
client's level of potential danger.
While a client who may be assessed as too dangerous for placement
at Casa Nuestra may be served through outpatient counseling
services at the agency, the intake staff needs to assess if the
client is in need of hospitalization or a more intense and
structured program to help stabilize him/her.
Intake staff should also make referrals to other services which
/o-gy .'
would be more appropriate for such a client. A client who is at a
great risk for hurting him/herself or others may be referred to
County Mental Health or other programs for hospitalization and/or
observation for the safety of themselves and others. See the
attachment Suicide for more on this.
Note: if in assessing the client, the client makes direct
references to wanting to seriously injure or kill another person
and they. . name the person by name, you - need to keep in mind
Tarasoff's Law. Tarasoff's Law states that you must notify the
threatened person as well as the police. Confidentiality does not
apply in an area where someone is in immediate physical danger.
For more information, see the section on Confidentiality and the
corresponding attachment. ~
Is the client actively addictett~o druqs or alcohol?
If so, s/he would not be appropriate to bring into Cas a Nuestra.
We are not a recovery program for drug or alcohol addiction. We do
take in clients who have had a history of drug and alcohol problems
or experimentation. However, an actively addicted person would be
better served in a more intensive recovery program.
Note: if a client is admitted into the program with a history of
drug or alcohol abuse, we need to get a urine sample the day s/he
enters the program and have it tested for presence of drugs or
alcohol. The purpose of this is to establish a baseline of the
level of drugs and alcohol in their system. Any subsequent
urinalysis would show a drop in these levels if the client is truly
staying drug and alcohol free while in our program.
Again, such a client may be served through outpatient counseling
services at the agency, but the intake staff needs to assess the
client's further need for such services as: a residential recovery
program, 12-step programs such as AA or NA, etc.
Is the client currently psychotic?
We are not equipped to handle a client who is in the midst of a
psychotic episode. If this is the case, Casa Nuestra is not an
appropriate placement.
Regarding outpatient counseling services at SBCS for such a client,
the intake staff must assess if the client requires placement in a
more structured residential program or perhaps the services of a
psychiatrist who can prescribe medication for the client. Staff
should assist in getting the client into a more appropriate
placement or program such as County Mental Health.
Is the client extremely oppositional?
If the client is completely unwilling to participate in counseling
or work on appropriate goals, s/he would not be appropriate for
services. "I f you don't have a customer, you don't have a
customer" .
c.
10-85..
If a client is willing to work on his or her issues but is not
willing to follow the rules of the shelter, s /he may still be
served through outpatient counseling services, but would not be
appropriate for Casa Nuestra.
Is the familv and the vouth willinq to work towards reunification?
If the youth is brought to us because of family conflicts and the
parents merely want.'to dump him or her into a program to "fix the
kid", or :the kid is absolutely unwilling to work towards going back
home, Casa Nuestra is not appropriate. We do not want to be a
convenient dumping ground for parents who want to get rid of their
children.
It is not possible to successfully reunify an unwilling family.
Sometimes, staff may take a youth into the shelter based on the
feeling that the family will' -~e more willing to work on their
issues once the youth is in the shelter and the problems don't feel
as overwhelming. This situation does occur and may be made at the
discretion of the intake staff.
There are going to be some cases in which the family does abandon
the youth or the youth does not want to return home due to factors
such as severe abuse or neglect. The deciding factor in whether we
will bring this person into our program or whether we will refer
him/her to another program is this: the child's age. The child
must be old enough to be capable of getting and maintaining a job,
saving money, and at the end of a five month period going to live
on his/her own or to a transitional living program. The cut-off
point is typically sixteen and older. A fifteen year-old may be
considered if the youth exhibits outstanding maturity and
responsibility. We do not have a long term residential program for
youth who are not appropriate for independent living.
Note: in cases where a child has been abandoned or neglected by
his/her parents or legal guardians, we must file a C.P.S. report.
Is the vouth an arsonist?
If the youth has a history of setting fires, it would not be safe
to take him/her into Casa Nuestra. We must always keep in mind the
safety of all the residents (and staff).
Such a youth may be served through outpatient counseling services.
Is the youth a perpetrator of sexual assault on other persons?
Youth who have perpetrated sexual assault on other persons are
generally not appropriate for Cas a Nuestra. Because we often serve
youth who are victims of sexual molest, it is not appropriate to
mix the two types of clients in the same milieu. This is again an
issue where we need to look out for the safety of all the
residents.
Perpetrators may be appropriate for outpatient counseling services.
ID-5~
However, there are programs specifically for this type of client
and referrals should be made to such programs.
Case Plan
The Case Plan should include long-term and short-term goals for the
client. The client should participate in the f')rmulation of
his/her case plan.
with a client brought in for family reunification, the number one
issue is' "What. is causing most of the conflicts in his/her home?".
The Case Plan should make this issue its central goal.
with clients~~rought in for independent living skills, the number
one issue is "What needs to happen to allow this client to live
independently when they leave our services?".
with either case, there may be a broad range of issues that need to
be addressed to accomplish the central goal. The C.M. should
attempt to address as many issues as s/he can with particular
attention to: high-risk behavior, social skills, confronting
irrational thought, self-efficacy, and independent living skills.
This is obviously a very broad
vary on a case-by-case basis.
supervision.
description, and the case plan will
All case plans will be reviewed in
Client Contact
The C.M. should meet with the client twice a week for 30 minute
sessions. Obviously, additional work may be done on the behalf of
the client, including group counseling, crisis intervention, phone
calls, etc. All work done with or on the behalf of the client must
be recorded in the client's case file.
Case Files
All clients rece~v~ng services must have individual case files.
See the section on CLIENT FILE FORM DESCRIPTIONS for a description
of all the required and optional forms for client's case files.
Making Referrals
When referring clients to other services the C.M. should keep a
record of all referrals made. The C.M. should review the client's
file throughout the week and check on the progress of referrals
made. Attempts to contact other services, messages left for other
service providers, and persons contacted should be recorded in the
client's case notes. It should be clear to another C .M. or
supervisor reviewing a file all work done on the behalf of a
client.
Confidentiality
In making referrals the C.M. needs
confidentiality. Information regarding
given out without a written release
to protect the youth's
a youth's case may not be
of information from the
I () --~7
RESOLUTION NO. 17221
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
AMENDING THE CITY'S HOME PROGRAM DESCRIPTION TO REALLOCATE
FUNDS FOR ACQUISmON AND REHABILITATION OF SUBSIDIZED RENTAL
PROPERTY
WHEREAS, the City Council has previously adopted a Comprehensive
Affordable Housing Strategy (CHAS), which includes the goals of increasing affordable home
rental housing opportunities for lower-income households, including housing for homeless
families; and,
WHEREAS, the Regional Task Force on the Homeless estimates that each night
in Chula Vista there are 300-500 homeless people, the majority of whom are family members;
and,
WHEREAS, the City of Chula Vista has received $750,000 of HOME federal
housing funds for 1992-93; and,
WHEREAS, in order to expend the HOME funds on acquisition of housing for
homeless families or rental to lower-income households, HUD requires the City to amend its
HOME Program Description to revise the estimated use of funds for eligible housing activities.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Chula Vista does hereby adopt the amended HOME Program Description, a copy of which is
attached hereto.
ruce M. Boogaard
City Attorney
1i:~~
Chris Salomone
Community Development Director
P:___~\l8CSl._
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CITY OF CHULA VISTA
HOME PROGRAM DESCRIPTION
1992-93
(Proposed Amendment)
Introduction
The HOME Investment Partnership Program (HOME Program) is a new
federal housing program which allocates funds by formula directly
to state and local governments to promote affordable housing. HOME
funds may be used to provide affordable rental housing and home
ownership through new construction, acquisition, rehabilitation,
and tenant-based rental assistance. Participating jurisdictions
are able to provide this assistance to both for-profit and
non-profit housing developers or directly to qualified home buyers
or renters. The assistance may take the form of grants, loans,
advances, equity investments, and interest subsidies.
The city of Chula Vista has submitted a Comprehensive Housing
Affordability Strategy (CRAS) to the u.S. Dept. of Housing and
Urban Development (HUD). This document was approved by HUD and
they officially declared the city a participating jurisdiction in
the HOME program on July 20, 1992.
Amount and Use of Funds
The city will receive $748,000 of HOME funds from HUD and $2,000 of
HOME funds from the State for the City's 1992-93 HOME program. The
city plans to utilize these funds for the following types of
activities:
ESTIMATED USE OF FUNDS
Total HOME $
New Construction
o
Rental $ Owner $
0 0
$610,146 0
0 0
$139,854 0
0 0
Substantial Rehab
$610,146
Other Rehab
o
Acquisition
$139,854
Tenant Assistance
o
The New Construction funds can be used to assist a project by a
for-profit or non-profit developer who is building home ownership
units for households earning 80% or less of the area median income.
ID~O
The Acquisition-Rental funds can be used to fund acquisition
of existing units for households earning less than 60% of
median.income, including short-term transitional housing for
homeless families.
Communi tv Housinq Development Orqanizations (CHDO)
The City of Chula Vista will collaborate with non-profit
organizations in the development, acquisition, preservation,
and rehabilitation of affordable housing. The following
policy is part of the City's recently adopted Housing
Element for 1991-96:
"The City supports and encourages usage of a broad spectrum
of approaches to produce lower-income affordability in
rental housing including: (a) utilization of available
Federal, State and county programs and funding; (b)
participation of non-profit development corporations either
individually or in partnership with the private
developers. . . "
The City will provide a minimum of 15 percent ($112,500) of
its HOME allocation to qualified CHDOs for acquisition of
rental or homeowner units. The City will provide technical
assistance to CHDOs in the following areas: applying for
HOME funds; financing housing development; processing
development projects; and, complying with HOME program
regulations. Up to 10 percent of the CHDO set-aside funds
may be used by CHDOs for project-specific assistance as
authorized under Section 92.301.
Affirmative Marketinq
The City funds and oversees a comprehensive Fair Housing
Program, which is provided under contract by the Fair
Housing Council of San Diego. This program includes
outreach, education, counseling, and assessment. The City
will work with the Fair Housing Council to promote fair
housing in all affordable housing projects and activities.
The practice of non-discrimination and equal opportunity
will be promoted for all HOME-funded housing projects
through the policies and procedures described below:
1. The Fair Housing logo and slogan'will be incorporated
into all public information and outreach.
2. Development agreements between the City and a
developer/owner will specify the owner's responsibility to
promote fair housing .when soliciting tenants or homebuyers.
The owner will be required to utilize HUD and/or the City's
fair housing brochures, posters, logos, etc.
{ O.q I
3. The developer/owners shall be required to plan and
implement special community outreach to solicit
participation of persons who might not be reached through
mass-media outreach.
4. The developers of new housing will participate in the
County's Voluntary Advertising and Marketing Agreement to
promote fair housing in all their promotional activities.
5. In the event the City finds that a developer/owner is
not in compliance with these policies, the City will specify
corrective action which must be implemented within 30 days.
If this deadline is not met by the developer/owner, then the
City will find the him/her in default of the development
agreement.
6. Records will be maintained documenting the affirmative
marketing efforts of the City and developers/owners of HOME-
funded projects. The City will assess the progress and
effectiveness of the affirmative marketing program on an
annual basis. Modifications to the program will be made as
needed.
Minoritv/Women Business Outreach Proqram
The City of Chula Vista will establish a minority outreach
program consistent with 2~ CFR 92.350 which shall be
applicable to all affordable housing activities authorized
under the HOME program or any other applicable federal
housing law. The minority outreach program will encourage
the use of minority and women-owned business enterprises in
connection with HOME-funded activities to the maximum extent
IJ,ossible.
With regard to the expenditure of HOME funds, the City will:
1. Work with other local jurisdictions in the region to
develop a systematic method for identifying and maintaining
an inventory of certified MBE and WBEs, their capabilities,
services, supplies and/or products;
2. Utilize the local media, electronic and print to market
and promote contract and business opportunities for MBEs and
WBEs;
3. Develop informational and documentary materials on
contract/sUbcontract opportunities for MBEs and WBEs;
4. Develop solicitation and procurement procedures that
facilitate opportunities for MBEs and WBEs to participate as
vendors and suppliers of goods and services;
1 D 1J-
5. Sponsor business opportunity-related meetings,
conferences or seminars with minority and women business
organizations;
6. Maintain centralized records with statistical data on
the utilization and participation of MBEs and WBE as
contractors/sub-contractors in all BUD-assisted program
contracting activities.
The City has previously adopted a Minority and Women
Business Enterprise Construction Program for federally-
funded construction projects. This M/WBE policy will be
utilized in all HOME-funded construction contracts.
First-Time Homebuver provisions
Any for-sale housing units developed with HOME funds or any
units sold to first-time homebuyers who are assisted by HOME
funds will be encumbered with resale restrictions which
require that:
a) any subsequent buyer is also low-income (earning 75% or
less of median income) and will be the principal resident of
the property
b) financing is such that the subsequent buyer does not pay
more than 30% of his/her gross household income for PITI
(principle, interest, taxes, and insurance)
c) the unit remains affordable for a period no less than ~5
years for existing housing and no less than 20 years for new
housing.
Specific guidelines and deed restrictions for the resale of
HOME-assisted property will be established and submitted to
BUD for approval prior to their implementation as required
by 92.254(a) (4). These guidelines will provide the initial
owner with a fair return on his/her investment.
The City plans to utilize a "shared appreciation" loan
structure. Under the shared appreciation arrangement, any
appreciation realized during the term of home ownership will
be shared between the City (which provided the initial
subsidy loan) and the homeowner. The owner's share of
appreciation shall be calculated based on his/her
downpayment, principal reduction payments, and the cost of
any major improvements which increased the value of the
property.
) 6-Cj 3
RESOLUTION NO. 172 2 3
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
APPROVING A HOUSING COOPERATION AGREEMENT BETWEEN THE CITY
AND SOUTH BAY COMMUNITY SERVICES FOR THE DEVELOPMENT OF A
SHORT-TERM HOUSING FACILITY FOR HOMELESS FAMILIES AND/OR VERY
LOW INCOME FAMILIES AT 31 FOURTH AVENUE AND AUTHORIZING THE
MAYOR TO EXECUTE SAID AGREEMENT AND ASSOCIATED LOAN
DOCUMENTS
WHEREAS, the City Council has previously adopted a Comprehensive
Affordable Housing Strategy (CHAS), which includes the goals of increasing affordable home
rental housing opportunities for lower-income households, including housing for homeless
families; and,
WHEREAS, the Regional Task Force on the Homeless estimates that each night
in Chula Vista there are 300-500 homeless people, the majority of whom are family members;
and,
WHEREAS, the City of Chula Vista has received $750,000 of HOME federal
housing funds for 1992-93; and,
WHEREAS, the City Council of the City of Chula Vista has adopted an amended
HOME Program Description to revise the estimated use of funds for eligible housing activities
in order to expend the HOME funds on acquisition of housing for homeless families or rental
to lower-income households; and
WHEREAS, South Bay Community Services has been certified as a Community
Housing Development Organization and has provided services to South Bay youth and their
families for 20 years; and
WHEREAS, South Bay Community Services has submitted a request for
$610,146 of funds to acquire a 14-unit apartment building and developed a plan and coalition
to provide housing and related services to homeless and/or very low income families (the
"Project"); and
WHEREAS, South Bay Community Services and the City have negotiated a
Housing Cooperation Agreement and related loan documents in connection with the Project.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Chula Vista does hereby approve the Housing Cooperation Agreement between the City and
South Bay Community Services and associated loan documents, copies of which are on file in
the office of the City Clerk.
16-11 Lf
RESOLUTION xxxxx
Page 2
BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista is
hereby authorized and directed to execute the Housing Cooperation Agreement and associated
loan documents for and on behalf of the City of Chula Vista upon approval by the City Council
of the appropriation of $610,146 required for the City to perform its obligations under the
Agreement.
PRESENTED BY:
0~,~
Chris Salomone
Community Development Director
F:.....'--'IS8CI1.a.
ruce M. Boogaard
City Attorney
10-15
RESOLUTION NO. 172 2 4
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
APPROPRIATING FUNDS NOT TO EXCEED $610,146 FOR A LOAN TO SBCS
FOR ACQUISmON AND REHABILITATION OF A 14-UNIT APARTMENT
BUILDING AT 31 FOURTH AVENUE
WHEREAS, the City Council has previously adopted a Comprehensive
Affordable Housing Strategy (CHAS), which includes the goals of increasing affordable home
rental housing opportunities for lower-income households, including housing for homeless
families; and,
WHEREAS, the Regional Task Force on the Homeless estimates that each night
in Chula Vista there are 300-500 homeless people, the majority of whom are family members;
and,
WHEREAS, the City of Chula Vista has received $750,000 of HOME federal
housing funds for 1992-93; and,
WHEREAS, in order to expend the HOME funds on acquisition of rental housing
for homeless families or rental to lower-income households, the City has amended its HOME
Program Description to revise the estimated use of funds for eligible housing activities; and,
WHEREAS, South Bay Community Services has been certified as a Community
Housing Development Organization and has provided services to South Bay youth and their
families for 20 years; and
WHEREAS, South Bay Community Services has submitted a request for
$610,146 of funds to acquire a 14-unit apartment building and developed a plan and cQalition
to provide housing and related services to homeless and/or very low income families (the
"Project"); and
WHEREAS, the City Council of the City of Chula Vista has approved a Housing
Cooperation Agreement and associated loan documents providing for a $610,146 loan to South
Bay Community Services for the acquisition and rehabilitation of the Project subject to certain
conditions.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Chula Vista does hereby appropriate 1992-93 HOME Entitlement Funds, not to exceed
$610,146, to South Bay Community Services Program Fund for a loan to quire and rehabilitate
a 14 unit apartment building at 31 Fourth Avenue subject to th ter s d conditions of the
Housing Cooperation Agreement.
PRES~;:~~~
Chris Salomone
Community Development Director
Bruce M. Boogaard
City Attorney
tb~~/ ID-q7
RESOLUTION NO.~
RESOLUTION OF THE CITY COUNCIL DECLARING THAT THE ADOPTION OF
CERTAIN RESOLUTIONS CONSTITUTE THE IMPLEMENTATION OF PRIOR
DISCRETIONARY ACTS DONE AFTER THE APPROVAL OF A MITIGATED
NEGATIVE DECLARATION, AND FINDING THAT THE PURCHASE PRICE
REPRESENTS THE FAIR MARKET VALUE OF CERTAIN PROPERTY.
WHEREAS, the City Council has previously adopted a Comprehensive
Affordable Housing Strategy (CHAS), which includes the goals of increasing affordable home
rental housing opportunities for lower-income households, including housing for homeless
families; and,
WHEREAS, South Bay Community Services has been certified as a Community
Housing Development Organization and has provided services to South Bay youth and their
families for 20 years; and
WHEREAS, on July 13, 1993, the City of Chula Vista approved a Conditional
Use Permit PCC-93-39 pursuant to Resolution 17165 permitting South Bay Community Services
to operate the Project on the terms and conditions set forth therein; and
WHEREAS, in connection with its approval of Conditional Use Permit PCC-93-
39, the City adopted the Negative Declaration and Addendum issued on IS-93-36; and,
WHEREAS, South Bay Community Services has submitted a request for
$610,146 of funds to acquire a 14-unit apartment building and developed a plan and coalition
to provide housing and related services to homeless and/or very low income families (the
"Project"); and
WHEREAS, in order to expend the HOME funds on acquisition of rental housing
for homeless families or rental to lower-income households, the City has amended its HOME
Program Description to revise the estimated use of funds for eligible housing activities by its
Resolution No. 172.'2.. \ ; and,
WHEREAS, the City Council of the City of Chula Vista has approved a Housing
Cooperation Agreement and associated loan documents providing for a $610,146 loan to South
Bay Community Services for the acquisition and rehabilitation of the Project subject to certain
conditions by the adoption of Resolution No. n '2.2.3 , adopted at the meeting at which this
resolution is adopted; and
WHEREAS, the City of Chula Vista is scheduled to have available to it $750,000
of HOME federal housing funds for 1992-93, which by its action at the meetin& at which this
resolution is adopted, voted to appropriate to the use of a City Loan to SBCS by Resolution No.
17"2.2..... . and
' r "
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Chula Vista does hereby find:
,
,
/ IJ .-C} g"
/7:<.25'
RESOLUTION xxxxx
Page 2
1. The City Council does hereby reaffirm its approval of the Mitigated
Declaration by which it was determined that the Project will have no
significant environmental impacts as set forth in the Negative Declaration
and Addendum issued on IS-93-36.
The City Council has previously found that the Project will have no
significant environmental impacts in that the Project does not have:
A. The potential to degrade the quality of the environment,
substantially reduce the habitat of a fish or wildlife species, cause
a fish or wildlife population to drop below self sustaining levels,
threaten to eliminate a plant or animal community, reduce the
number or restrict the range of a rate or endangered plant or
animal or eliminate important examples of the major periods of
California history or prehistory.
B. The potential to achieve short-term, to the disadvantage of long
terms, environmental goals.
C. Impacts which are individually limited, but cumulatively
considerable.
D. Effects which will cause substantial adverse effects on human
beings, either directly or indirectly.
2. The City Council acknowledges that the Notice of Determination was filed on
3. The City Council finds that the discretionary acts associated with the adoption
of the aforementioned Resolution Nos. , , and
are only an implementation of the prior discretionary actions at which it approved the
Conditional Use Permit and approved the Mitigated Negative Declaration.
4. The City Council does hereby find that based on evidence presented at the
hearing at which this Resol 'on was approved and adopted, that the price for the purchase of
the pro~ , twit: $712, is at or below the fair market value of the Property at the current
:f D A1iPP
Bruce M. Boogaard, City Atto e
F:\Jiomlo~\SBCS5...
/0 ~)11'.
~--
City of Chula Vista
\'.:;").
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--
Geographic Distribution of
Needs Populations ..and..Low-Income Housing
-p
.; ..'.0< '. c. ,~ .
N.
::::::::;:::;':~::;..'"
::::;:~:::;::::;:;:::~~.
.,............-...........,..
:111~~::liJ~l.
...-...........'
..........,......
......'.-.....'
.............
'.....,
'....
~
M'oin
t
..
,,-I r--
\
)!/~JIfJ()
. = Residential Facility
X = Low-Income Housing
T 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
BRUCE BOOGAARD, CITY ATTORNEY - state Bar No. 065253
CITY OF CHULA VISTA
276 FOURTH AVENUE
CHULA VISTA, CA 91910
(619) 691-5037
Attorney For: CITY OF CHULA VISTA
SUPERIOR COURT OF THE STATE OF CALIFORNIA
IN AND FOR THE COUNTY OF SAN DIEGO
SOUTH BAY JUDICIAL DISTRICT
Hart Klein, et al., )
)
Plaintiffs )
)
v. )
)
City of Chula Vista, South Bay )
community Services, et al., )
)
)
Defendants )
)
)
Case No.
Points and Authorities of
Defendant, City of Chula vista,
in opposition to Application
for Temporary Restraining Order
[Statute Authority]
Date:
Time:
Dept:
Judge:
I. Background
South Bay Community Services ("SBCS") is a public benefit, non-
profit California corporation whose goal is to provide, through a
coalition of community service groups, a network of various social
services to the residents of Chula Vista, National City, and other
parts of the south San Diego Bay area.
One of the services that SBCS desires to provide is a shelter
which would house homeless families for approximately 60 days, during
which time their adult members would receive vocational training,
medical attention, and other immediate aid, sufficient, it is hoped,
to get them back "on their feet" and into a more productive life
style (the "Project").
SBCS desires to provide the shelter component of the Project by
acquiring and rehabilitating a 14 unit apartment complex at 31 Fourth
Avenue in Chula vista (the "Property"). A diagram of the Property,
as well as the surrounding properties, is shown on Exhibit A.
Funding for the acquisition of the Property will come largely from
the cities benefitting most directly from the Project, the City of
Chula Vista ($610,146) and the City of NAtional City ($200,000 with
a supplemental $50,000 for operations) and the State of California
($100,000).
1
/tJ ~/tJ )
10
,
1
There is currently a housing cr~s~s in the country, in the
county of San Diego, and in the" south bay region of the county of San
Diego. The city of Chula vista desires that the homeless problem
should be addressed, and believes that the Project offered by SBCS is
an innovative, cost-efficient, and constructive way of helping one or
more parents provide shelter for their children while they learn ways
to take care of themselves and their families.
For that reason, the city of Chula vista supports the Project
and has taken the following actions towards its furtherance:
(a) Determined that, with certain modifications to the
Project to address environmental concerns, there was no
liklihood that the Project could have significant adverse
environmental consequences.
(b) Granted a conditional use permit to SBCS for the
operation of the Project at the Property.
(c) Applied for, and has received assurances of receipt
of, funds ("HOME Funds") from a special federal grant made
available under the Federal HOME Program, administered by
the Federal Department of Housing and Urban DevelopmentY
("HUD").
(d) Approved, and authorized the Mayor's execution of, a
development and loan agreement which essentially obliges
SBCS to provide the Project, including providing the
shelter component at the Property, and oblige the City to
loan Home Funds, in the approximate amount of $610,000, to
SBCS (secured by a Deed of Trust) (the "City Loan") to be
used to acquire and rehabilitate the Property.
(e) Appropriated the HOME Funds necessary to fund the City
Loan.
The Property is currently owned by Park vista Apartments, a
California general partnership consisting of O'Keefe and Rucklovic
("owners") but is in escrow under contract for sale to SBCS pending
their compliance with all funding requirements and zoning permits.
2
3
4
5
6
7
8
9
11
12
13
14
15
16
17
18
19
II. Is there waste of public funds?
SBCS proposes to acquire the Property from Owners fpr $712,500
("Purchase Price"). '. "" ,""", J/
Owners' general partners; acquired the Property in November,
1989, for approximately $680,0'00 from the previous owners;f) Mippers,
a California general partnership.
SBCS originally attempted to acquire the Property and its prop-
erty to the north, 17~~,Fourth Avenue, in March 30, 1992, 2 years and
4 months after Owners acquired same, and at a time when Owners had no
prior contract or relationship to SBCS.
SBCS's purpose was to develop property to house very low and low
income families pursuant to their general community services mission
statement.
First contact with the Owners b~ SBCS was made through a broker
retained by SBCS, one Jeff Newman-' of Suncoast commercial Real
Estate, who will be paid a 3% commission, less $2,500 when the
20
21
22
23
24
25
26
27 1. cite to Federal Legislation.
28 2. 296 0377
2 It} -ltJ;2
1 Property eventually closes escrow, if at all. Prior to such first
contact, no officer, agent or employee of SBCS had any prior contact
2 with the Owners, their agents, officers, directors, or employees.
SBCS commissioned the Broker to probe for seller's interest on sites
3 meeting certain specified criteria. Neither the Property or 17
Fourth Avenue was listed by the Owners for sale at that time.
4 Owners originally wanted $850,000 for the Property. SBCS coun-
tered with $700,000. Owners reduced to $800,000. SBCS held firm for
5 a while, then settled for a Purchase Price of $750,000 for each of
two parcels--17 Fourth Avenue and 31 Fourth Avenue. Negotiations
6 occured over a 3 week period.
SBCS's efforts to find, and negotiate for the acquisition of the
7 Property and 17 Fourth Avenue was aided, in part by their Housing
Advisory Committee, a board advisory to the SBCS Board of Directors,
. 8 and consisting of developers, bankers, lawyers, who concurred in the
decision to make the offer to Owners after reviewing 45 sites
9 seriously. They recommended proceeding wit~th~ acquisition of the-
Property and 17 Fourth Avenue at $750,000. I /'. Un' . . >:
10 In addition to the advice of their Housing Advisory Committee,
SBCS had on retainer, a consultant, community Economics, Inc., at a
11 price of $65 per hour. They work with non-profits such as SBCS, and
cities statewide, to advise them in regards to financial matters such
12 as the analysis, negotiations and acquisition of different sites.
Community Economics, Inc. reviewed this transaction, assisted SBCS in
13 negotiating the price down to $750,000, and recommended to SBCS, as
their cons~ltant, that SBCS make the final offer at the price of
14 $750,000.' ,0 " ',,' ".:'
In addition to the foregoing, other consultahts aided SBCS in
15 the analysis and approval of the transaction such as California
Housing Partnership Corporation (Sue Reynolds, Program Manager) ~/,
16 Local Initiatiye Support Corporation, a nationalwide non-profit and
lender in affordable housing (Anne Wilson, San Diego Program
17 DirectorY), and a number of other local real estate experts.
A Board Committee also helped make decisions with staff and
18 involved Ty Compton, a local real estate broker, and Rietta Morrell,
a local person with significant real estate holdings. SBCS offer of
19 $750,000 was conditioned on, inter alia, (a) an appriasal and (b)
full Board approval (c) approval of all funding sources.
20 Although SBCS was able to keep "the deal" together on 17th
Fourth Avenue with the prospect of a HUD McKinney grant (which
21 property is still in escrow for purchase) as a long term (2 years)
transitional housing project, the purchase of this Property (31
22 Fourth Avenue) collapsed at a point when the city Council rejected
conceptual approval of the very low income project originally
23 proposed for the Property.
The deal for 31 Fourth Avenue was thereafter revitalized after
24 a new Mayor held a housing summit which identified emergency housing
for homeless people as a significant unmet community need. At that
25 time, such Project was proposed to be administered by Lutheran Social
Services, but later picked up by SBCS.
26
27 3. Resume attached.
28 4. Resume Attached.
3 10 ~/03
a
t?/6
7
10
. ,
l
1
In order to fund the purchase of the Property as oi-igin~1iy
proposed for a very low and low income housing Project, SBCS applied ( .
to the state of California for a grant" and the application process /
required opinions of value. The stat~\~~~lred additional outside
leverage from private lenders. As a condition to obtaining the state
and private lender financing from a consortium .()f.'":;.~Il,p~s ("SAMCO")
organized to meet the.ir responsibility' under the Community Reinvest-
~~~;e~~~. of 1984~f, SBCS was required to o~\~~ .~p~~~~~,al o~ the
. Accordingly;; ,;in late April, 1992, SAMCO) retained an 'appra~ser,
Richard Fuller,J M.A.I., with the Appraisal 'Group of San Diego, to
determine the value of the Property. This appraisal cost SAMCO, and
subsequently SBCS, between $1,500 and $2,000. That appraised value
was $750,000 and was issued on May 7, 1992, approximately 1 year, 3
months and 10 days ago. It was done at the request of a party (SAMCO
and the State) who had an economic interest in making sure that their
loan had adequate security, and would not be inflated. That funding
prospect, after the appraisal was obtained, dissipated for reasons
unrelated to the valuation issue.
Meanwhile, SBCS paid $5,000 to extend the escrow.
At the time of trying to obtain conceptual approval of the
transaction for a short term housing project near the end of 1992 or
beginning of 1993, the Council raised objections to the purchase
price and made it a condition of the funding that the price be
reduced. SBCS thereafter confronted the Owners in a meeting in the
office of SBCS -on' .".', ,,;., h', 1993 that the price must be reduced
further or there would be "no deal." Owners were very angry at the
proposal to reduce the price, and left the meeting with the
transaction in a "no deal" status. They came back two days later
with a reduced sales price offer of $720,000 and an agreement to
extend the escrow, which was accepted by SBCS on the same
contingencies.
SBCS, in an effort to obtain the concurrance of the city Council
that the Property was exchanging hands at a current fair market
value, decided to get an updated appraisal which cost SBCS $500, and
came in again on February 24, 1993, at $750,000 again.
Based on this new information, the City Council gave conceptual
approval to the project on March 23, 1993.~ ReilQluticn. No. .
At the CUP hearing on July 13, 1993, opponents to the Project
submi tted comparable sales information from an appraiser, Truman
Brooks. It was not a certified appraisal, it was a worksheet.
The information formed a basis upon which Mr. Brooks concluded as
evid~v~ that the Property should be valued at about $620,000, or
$44,~jper unit, rather than the $750,000, or $53,sfd! per unit,
established by the appraisal and appraisal update.
Mr. Brooks information did not constitute an appraisal, but
rather a survey of apartment sales in South Bay over 15 months, with
only basic information about the listed properties and no analyses or
adjustments. Notably some support can be drawn for the accuracy of
the $750,000 formal appraisal figure by analyzing the very basic
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27 5. cite to authority.
28 6. 461 3771
4 If) ")Oi
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information on sales price and project size.presented by Mr. Brooks.
Mr. Brooks sales data fairly neatly divides between small and large
apartment properties, with four properties at 18 units or less and
four properties at 75 units or larger {148~unit.s.~age). When the
average cost-per-unit for the two obvious categories is calculated,
the purchase cost of 31 Fourth Avenue looks quite favorable. The
important facts are:
1. The large project average per unit cost is $44.400.
2. The small project average per unit cost is $60.882.
3. The sales price cost per unit for 31 Fourth Avenue is
,$50.892. ,P.J..2,5~0.O~+-14 units)
At the CUP hearing, the Council further directed SBCS to attempt
even further downward negotiations of the price. SBCS was unsuccess-
ful after two attempts, and invited one of the City councilpersons,
Shirley Horton, also a noted local real estate broker, to help in the
negotiations.
As a result of Ms. Horton's efforts, the Owners reluctantly
reduced the price by $7,500 to $712,500,
Councilmember Fox asked another appraiser, a Mr. , to
review the formal (SAMCO) appraisal and the updated appraisal, and
Mr. concurred that it was a validly based, thoroughly
reasoned appraisal.
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TRUMAN BROOKS, REAL ESTATE APPRAISALS
Certified General Real Estate Appraiser. # AG008600
August 17, 1993l
TO: Mayor and City Council
276 4th Avenue
Chula Vista, CA 91910
Pursuant to a request by Council Member Horton, I have
enclosed an alternative property for the Council to consider
for the South Bay Community Services housing needs.
The package enclosed was prepared by Hart Klein, which I
have reviewed and find that the alterna~ive property at
610 "G" Street, Chula Vista, is available at the price that
is used in this analysis. Mr. Klein provided me with
verification that he has the ability to deliver this
property at the $1,540,000 purchase price for this 33 unit
project.
It should be noted that this property is in good condition,
with new roofs, and the price per unit is approximately
$46,600 as opposed to the combined price of $56,250 on the
4th Avenue property.
Considering other properties is in the best interest of the
city, the community, and certainly the tax payers in today's
soft Real Estate Market. This is a win/win for all concern.
If I can be of further assistance do not hesitate to call.
Sincer~y yours,
---Z;;;:;~
..A'fuman Brooks
3404 Bonita Road. Chula Vista. CA 91 91 ()'3209 . 619/426-9331 . Fax 619/426-9334
If) ~ )()~
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AUGUST 16. 19'13
TRANS I T I UNAL HOUf3 I NG/FA~l I L Y HOMELESS CENTER
======================~======~================================~=
17~19 FOURTH AV8~UE. CHULA VISTA (TRANSITIONAL HOUSING-12 UNITSI
31 FOURTH AVENUE. CHULA VISTA (FAMILY HOMELESS SHELTER-14 UNITS)
SOUTH BAY COMMUNITY SERVICES CRITERIA:
* CUST/AMENITIES/REHABILITATION
* LOCATION OF PROJECT
* TU SCHOOLS
* TRANSF'Df,TATIDN
* SOCIAL SERVICES
* TO SHOPPING/OTHER COMMERCIAL
~
/tJ //~ 7
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j
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SITE/COST COMPARISON
------------------------
------------------------.
17/1 'r 4TH
AUGUST 16, 19'n
/
:)1 4TH AVE
BOTH
17/19/~;1
610 FlGII
----------------------------------------------------------------
PRICE
NUMBER OF UN ITS
COST/UNIT
COST /UNIT /REHI~B
712,500+217~OOO)
GROSS SCHED INC
GROSS i"IUL TI PLI ER
ROAD EASEMENT
ON PROPERTY
PAR~: I NG SPACEB
OPEN SPACE
TRAFFIC COUNT
AMENITIES:
*LAUNDI":Y
*CEILING FANS
*AIR CONDIT.
*F/F REFRIG
*PATIOS/BALC
*DISHWASHERS
*SECURITY DOORS
*POOL (ElIJU.,FO
*NEW ROOF
$7~50 ~ 000
12
$62,500
$ 86,B80
8.63
YES
16
VEr~Y "MAL.L
1 "7!l 580
.$712,500
14
~ieJO. F392
$1,462,500
26
~fi56, 250
$1;'1540,090
,),)
$46,666
$66, .c.12B
~; 85,260
8..35
N/A
$ 172,140
8.49
N/A
$ 239,436
6.4
YE"
YES
NO
113
.".4
50+
SI'1ALL
SMALL.
POOL/PL.AY AREA
17, 580 (1991)
2070 (1993)
YES YES YES YES
5 TOTAL ALL UNITS
NO NO NO YES
SOME: SDME YES
SOME: SOME MOST
NO NO 1\10 YES
NO NO NO YES
I\IIJ NO NO YES
NO NCI NO YES (6/9:::;)
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("UGU"iT 16. 1 ')'r5
LOCATION/TRANSPORTATION SUMMARY AND COMPARISON
************************************************
TO
FROI~
17-1') FOURTH/31 FOURTH
Ffml~
610 "e'"
__________________________.__L._._______________________________~_____
SCHOOLS
*FEASTE,:R ELE!"I
*V I STA LSD" EL.EM
*JR HIGH
1.1/!"IIL.E
" 7/MILE
,,2/MILE
. :5/MILE
*CITY HALL
n, I BRAF,Y
u7'5/MILE
.8/rULE
*SOUTH BAY COMM SERVICE
CASE WORI<ERE;
" 7:"j/MIL.E
. fJ/MIl_E
* BUS SE:RV I CE
*"H" STRRET STATION
* TROLLEY STATION
~'jO/YDS (#:2';>/706)
7S/YDS (#'1::2)
* COMMERCIAL
.1/MILE
.1/MIL.E
I N E;Ui"II~ARY:
WE F'EEL THAT THE 610 "D" UJC(.\TION IS CO~IVENIENT AND CENTR(.\L TO
ALL SERVICES PER CRITERIA ESTABLISHED BY SOUT~ BAY COMMMUNITY
SERVICES" THE NORTH/SOUTH TRANSIT LINE #952 ON BROADWAY SERVES
NATIONAL CITY/CHlLA VISTA/SAN YSICRO. THE BUS COMES EV8~Y 30
MINUTES. IN ADDITION" 'THE T"eH._LEY "H" STREET STATION IS WITHIN
A 5-10 MINUTE WALK.
:1.
/IJ~/j/I
o
I\UGU~3T 16. 1 '?9::;
v
v
SOUTH BAY COMMUNITIES SERVICES PROPCmAL,
v
1. PURCHASE 17-19 4TH AVENUE FOR TRANSItIONAL HO~SING
*PRICE= $750.000 FOR TWELVE (12) 2BR/2BA UNITS'
v
2. FURCHASE 31 4TH AVENUE F~~ FAMILY HOMELESS SHELTER
*PRICE= $712.500 FOR FO~~TEEN (14) 12/18R 2/2BR
v
*TOTAL BUDGET FOR HOMELESS SHELTER IS $930,000.
\:)
v
*SOURCE OF FUNDS,
CITY OF CHULA VISTA
CITY OF NATIONAL CITY
ESP GI~(\NT
DONA T I Cli'IS
$ 610,000
$ 250,000
$ 10~-5, 000
$ ?
v
TDTP,L
$ (~65, 000
,.,. _. .W" _W "H' __ N"., ......_. OR" _.,
._. _ .__. H'''._ _ ___H._.
v
PI~OJECT BLJMMi~RY:
v
1. ACQUISITION OF 17-19 FOURTH AVE
2. ACQUISITION OF 31 FOURTH AVE
REHAB 31 4TH AV/TENANT RELOCATION
$ 750,000
~!i 712,500
$ 217,500
v
v
TOTAL BUDGET TO IMPLEMENT TRANSITIONAL
HOUSING AND HOMELESS SHELTI~R PROGRAM
$1,680,000
---.-.---------
--.---------
v
COST PER UNIT WITHOUT REHAB MONEY
v
$ 712,500 + $ 750~OO = $ 1~462,500 / 26 UNITS - $ 56,250
~/
COST PER UNIT INCLDDING REHAB ~~NEY
v
$ 712~500 + 750~OOO .~ $ 217,500 = $ 1,680~OOO/26 = $ 64,615
'-'
v
OUR PR[~08AL: 33 ~~ITS (PURCHASE PRICE - $ 1.540,OOOl
$1,540,000/33 LINITS = $ 46,666/UNIT
~
''"-!
1
v
ItJ '110
v
j
I~UGU!JT 16, 199:3:
SUi"Ii"IAf,Y
------".._----------
------.-.-----""----
o
SOUTH BAY COMi"IUNITY SEJNICES BUDL3ET,
u
, 17-19 4TH AVE (TRANSITIONAL HOUSING) 12 UNITS
, 31 4TH AVE (FAMILY HOMELESS CENTER) 14 UNITS
REHAB BLIDOET/RELOCATION EXP/ETC
$750~(lOO
$712,500
$217,500
v
TerrAL. BUDOET
$ 1,680,000
---------------
--------.-.----.-
u
, $ 1,680,000/ 26 UNITS.........................$64,615/UNIT
""'*'*"'*""""""""""*'*""""""""'"'**"""
,--;
-v
CITIZENS PROPOSAL.:
v
PURCHASE: 610 "0" STF,EET (:"';~,,; UNIT,:;)..............$ 1,540,000
-- -..---.-.- --.- - ..---
------------.---
\:;,I
, $ 1,540,rnJO/33 UNITS..........................$ 46,666/UNIT
"""**"*"""'**'*'*****"'*"****"""""""""""""
-
...
BENEFITS,
..
, OUR TAX DOL.L.ARS ARE BUYING 7 MORE UNITS AT A SAVINGS
OF APPRO X Ii"IATEL Y ,r, 140,000. ($1,680,000 VS. $1.540,0(0)
u
, 610 "0" STm:ET UNITS Af'~E IN BETTER SHIIPE AND HAVE NO
EASEMENT FROBLEM AND LESS DEFERRED MAINTENANCE.
(NEW. 30,000 ROOF)
"
, 610 "0" STREET UN IT" ARE MOf,E CENTRAL.L. Y L.OCATED WITH
BETTER TRANSPORTATION SUPF1~~T. (BUS & TROLLEY STATION)
.
, 610 "G" STREET NOT LOCATED ON VERY BUSY STREET.
TRAFFIC COUNT ON 4TH AVE - 17,580 CARS/24HRS
TRAFFIC COUNT ON "G" STREET - 2070 CARS/24HRS
.
, 610 "G" STREET Hi TWO BL.OCKl3 TO EL.EMENTARY AND JUNIOR
HIGH SCHOOL.. THIS ELIMINATES COSTL.Y BUSING OF KIDS FOR
SOUTH BAY COMi"~NITY SERVICES.
.
,- .
v
, BOTH SITES I~RE NEAF'~ COMMEF,C I AL PROPERTY. BUT 610 "G"
STBEET IS ML~H CLOSER TO CHULA VISTA SHOF?ING CENTER
LOCATED AT "H" I\ND BI~(){\DWIW. (POTENT IAL. ,JOBS)
u
, 610 "13" sn,Ef'T UNITe, HAVE i"1ANY 1'1 DR(: Ai"IENTITIES.
DISHWASHERS, SEOJRITY DDORS, AIC, CEIL.ING FANS,
SOLAR HEATED PODL., MORE PARKING, PL.AY AREA, FROST FREE
REFRJGERATDRS AND PATIOS OR BAL.CONIES.
v
v
* 7 UNITS @ 45~OOO~ $315,000 ~, 140,OOO~ $455,0(10 + BETTER
PROJECT REQUIRING LESS REHAB WORK.
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June 21, 1993 rT10 n
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Mayor Nader and Councilmembers, -n< ::Ii> fT1
::!J(7j \0 0
We, the under~igned, support the opening of short-te~ikou~g at
31 Fourth Avenue. South Bay Community Services program will
provide housing plus supportive services to homeless families
willing.to work to become self-sufficient.
Name
Address
Phone
-------------
-------------
~~ .-~.::::::r~:::::::~:: _ .
---~ .--- ---~~----:
~;~~~---- ------------- --------------- ---- ~
~-----~-~-
JIJ -/15'
June 21, 1993
Mayor Nader and Councilmembers,
We, the undersigned, support the opening o~ short-term housing at
31 Fourth Avenue. South Bay Community' Services program will
provide housing plus supportive services to homeless families
willing.to work to become self-sufficient.
Phone
-
1,0
jf)-,/ /?
June 21, 1993
Mayor Nader and Counci1members,
We, the undersigned, support the opening of short-term housing at
31 Fourth Avenue. South Bay Community Services program will
provide housing plus supportive services to homeless families
willing.to work to become self-sufficient.
_32_ -
.. 1..-.AA L.~~-~----
'C;:--Zu a-.o s .
~'~~-~~~~- --~-~---------
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~ . . h~ ~ I"''l''t/
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~_}:f;j~-;J;;.~---
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Address
Phone
...'.." \
{>;'j ~'~.4 ~.... ~/\..".--'
-~------~~~----------
(? _ f Lo_\~~.
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----~-----------
~--------------
_~~:./;;!::!;~A---
VJ
'.
/0'/17
June 21, 1993
Mayor Nader and Counci1members,
We, the undersigned, support the opening of short-term housing at
31 Fourth Avenue. South Bay Community Services program will
provide housing plus supportive services to homeless families
willing.to work to become self-sufficient.
Name
Address
Phone
,/
.~...l.)
, . ,
. - - f- _
z.,o
JtJ-/I~'
June 21, 1993
Mayor Nader and Councilmembers,
We, the undersigned,
31 Fourth Avenue.
provide housing
willing.to work to
support the opening of
South Bay Community
plus supportive services
become self-sufficient.
short-term housing at
Services program will
to homeless families
-r~-fi~
~~--
1f --_!:_~~~------_.:_--
1;___C4_~~__----------------------.;.-------------------
Address
Phone
-
-. "'"
--------------------------------------------------------------
--------------------------------------------------------------
--------------------------------------------------------------
--------------------------------------------------------------
--------------------------------------------------------------
--------------------------------------------------------------
--------------------------------------------------------------
--------------------------------------------------------------
--------------------------------------------------------------
--------------------------------------------------------------
/tl///1
Mayor Nader and Councilmembers,
We, the undersigned, support the opening of short-term housing at
31 Fourth Avenue. South Bay Community Services program will
provide housing plus supportive services to homeless families
willing.to work to become self-sufficient.
June 21, 1993
Name
Address
Phone
~~~~~-----------------------
~:;;:,~:Ji~~--------------------------~--
-~-~l
1la.v...c~~:..--",," -' JJ:lj.'-
-------------------------
--------------------------------------------------------------
--------------------------------------------------------------
--------------------------------------------------------------
--------------------------------------------------------------
--------------------------------------------------------------
--------------------------------------------------------------
--------------------------------------------------------------
--------------------------------------------------------------
--------------------------------------------------------------
--------------------------------------------------------------
)tJ -/;L~
June 21, 1993
Mayor Nader and Councilmembers,
We, the undersigned, support the opening of short-term housing at
31 Fourth Avenue. South Bay Community Services program will
provide housing plus supportive services to homeless families
willing.to work to become self-sufficient.
Name
Address
Phone
\
J
)
. . -
, - ~
--------------------------------------------------------------
--------------------------------------------------------------
--------------------------------------------------------------
--------------------------------------------------------------
J& .--/.1 I
June 21, 1993
Mayor Nader and Councilmembers,
We, the undersigned, support the opening of short-term housing at
31 Fourth Avenue. South Bay Community Services program will
provide housing plus supportive services to homeless families
willing.to work to become self-sufficient.
Name Address
~~-(--~~~~----
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'.
June 21, 1993
Mayor Nader and councilmembers,
We, the undersigned, support the opening of short-term housing at
:n Fourth Avenue. South Bay Community Services program will
provide housing plus supportive services to homeless families
willing.to work to become self-sufficient.
Name
Address
Phone
~fL2:_ ~.JM.~--
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--------------------------------------------------------------
--------------------------------------------------------------
/tJ-/:2J "
T
June 21, 1993
Mayor Nader and Coun9ilmembers,
We, the undersigned, support the opening of short-term housing at
31 Fourth Avenue. South Bay ~ommunity Services program will
provide housing plus supportive services to homeless families
willing.to work to become self-sufficient.
Name
Address
Phone
~~D~;Q------
/lg:f~ALi?u.I1'c/.- - -
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)tJ~/.J1
"
,
June 21, 1993
Mayor Nader and Councilmembers,
We, the undersigned, support the opening of short-term housing at
31 Fourth Avenue. South Bay Community Services program will
provide housing plus supportive services to homeless families
willing.to work to become self-sufficient.
Name
Address
Phone
--------------------------------------------------------------
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Jtl-/eJ-S
June 21, 1993
Mayor Nader and Councilmembers,
We, the undersigned,
31 Fourth Avenue.
provide housing
willing.to work
support the opening of
South Bay Community
plus supportive services
to become self-sufficient.
short-term housing at
Services program will
to homeless families
Phone
/'
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Jf) -/;2?
June 21, 1993
Mayor Nader and Councilmembers,
We, the undersigned,
31 Fourth Avenue.
provide housing
willing.to work to
support the opening of
South Bay Community
plus supportive services
become self-sufficient.
short-term housing at
Services program will
to homeless families
Name
Address
Phone
--------------------------------------------------------------
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/t1J -/;2 7
'.
June 21, 1993
Mayor Nader and Councilmembers,
We, the undersigned,
31 Fourth Avenue.
provide
willing.to
support the opening of
South Bay Community
housing plus supportive services
work to become self-sufficient.
short-term housing at
Services program will
to homeless families
Name
Phone
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.
June 21, 1993
Mayor Nader and Councilmembers,
We, the undersigned, support the opening of
31 Fourth Avenue. South Bay Community
provide housing plus supportive services
willing.to work to become self-sufficient.
short-term housing at
Services program will
to homeless families
Name
Address
Phone
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"
,
June 21, 1993
Mayor Nader and Councilmembers,
We, the undersigned, support the opening of short-term housing at
31 Fourth Avenue. South Bay Community Services program will
provide housing plus supportive services to homeless families
willing.to work to become self-sufficient.
Name
Address
Phone
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June 21, 1993
Mayor Nader and Counci1members,
We, the undersigned, support the opening of
31 Fourth Avenue. South Bay Community
provide housing plus supportive services
willing.to work to become self-sufficient.
short-term housing at
Services program will
to homeless families
Name
Address
Phone
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June 21, 1993
Mayor Nader and Counci1members,
We,
31
support the opening of
South Bay Conununity
provide housing plus supportive services
willing.to work to become self-sufficient.
the undersigned,
Fourth Avenue.
short-term housing at
Services program will
to homeless families
Address
Phone
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June 21, 1993
Mayor Nader and Councilmembers,
We, the undersigned, support the opening of short-term housing at
31 Fourth Avenue. South Bay Community Services program will
provide housing plus supportive services to homeless families
willing.to work to become self-sufficient.
Name
Address
Phone
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'.
June 21, 1993
Mayor Nader and Councilmembers,
We, the undersigned, support the opening of short-term housing at
31 Fourth Avenue. South Bay Community Services program will
provide housing plus supportive services to homeless families
willing.to work to become self-sufficient.
Name
Address
Phone
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June 21, 1993
Mayor Nader and Councilmembers,
We, the undersigned, support the opening of short-term housing at
31 Fourth Avenue. South Bay Community Services program will
provide housing plus supportive services to homeless families
willing.to work to become self-sufficient.
Name
Address
Phone
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June 21, 1993
Mayor Nader and Councilmembers,
We, the undersigned, support the opening of short-term housing at
31 Fourth Avenue. South Bay Community Services program will
provide housing plus supportive services to homeless families
willing.to work to become self-sufficient.
Name
Address
Phone
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June 21, 1993
Mayor Nader and Councilmembers,
We, the undersigned, support the opening of short-term housing at
31 Fourth Avenue. South Bay Community Services program will
provide housing plus supportive services to homeless families
willing.to work to become self-sufficient.
Name
Address
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June 21, 1993
Mayor Nader and Councilmembers,
We, the undersigned, support the opening of short-term housing at
31 Fourth Avenue. South Bay Community Services program will
provide housing plus supportive services to homeless families
willing.to work to become self-sufficient.
Name
Address
Phone
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June 21, 1993
\
. Mayor Nader and Councilmembers,
We, the undersigned, support the opening of short-term housing at
31 Fourth Avenue. South Bay Community Services program will
provide housing plus supportive services to homeless families
willing.to work to become self-sufficient.
Address
Phone
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June 21, 1993
Mayor Nader and councilrnembers,
We, the undersigned,
31 Fourth Avenue.
provide housing
willing.to work to
support the opening of
South Bay Community
plus supportive services
become self-sufficient.
short-term housing at
Services program will
to homeless families
Name
Address
Phone
A:t1_~_.:~.lL~----
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June 21, 1993
Mayor Nader and Councilmembers,
We, the undersigned, support the opening of short-term housing at
31 Fourth Avenue. South Bay Community Services program will
provide housing plus supportive services to homeless families
willing.to work to become self-sufficient.
Phone
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//}-/I..-//
June 21, 1993
Mayor Nader and Councilmembers,
We, the undersigned, support the opening of short-term housing at
31 Fourth Avenue. South Bay Community Services program will
provide housing plus supportive services to homeless families
willing.to work to become self-sufficient.
Name
Address
Phone
ROSA (Ylou clI -
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June 21, 1993
Mayor Nader and Councilmembers,
We, the undersigned,
31 Fourth Avenue. South
provide housing plus supportive
willing.to work to become
support the opening of
Bay Community
services
self-sufficient.
short-term housing at
Services program will
to homeless families
Address
Phone
I' .. -.. " :AI - .. -
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June 21, 1993
Mayor Nader and Councilmembers,
We, the undersigned, support the opening of short-te~ housing at
31 Fourth Avenue. South Bay community Services, program will
provide housing plus supportive services to homeless families
willing.to work to become self-sufficient.
Name
Address
Phone
~q,.J 5 Fhd
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June 21, 1993
Mayor Nader and Councilmembers,
We, the undersigned, support the opening of short-term housing at
31 Fourth Avenue. South Bay Community Services program will
provide housing plus supportive services to homeless families
willing.to work to become self-sufficient.
Name
Address
Phone
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June 21, 1993
Mayo
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of
ommun:-ty
short-term housing at
e ogram will
eless families
g plus
C~ n .
Name
Address
Phone
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June 21, 1993
Mayor Nader and Councilmembers,
We, the undersigned, support the opening of short-term housing at
31 Fourth Avenue. South Bay Community Services program will
provide housing plus supportive services to homeless families
willing.to work to become self-sufficient.
Phone
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I
COUNCIL AGENDA STATEMENT
ITEM TITLE:
Item II
Meeting Date 08/17/93
Resolution l'l~ of the City Council of the City of Chula Vista
Giving Notice of Intent to Grant a Franchise to Laidlaw Waste
Systems, Inc. for Residential Yard Waste Recycling Collection
Services and Setting a Public Hearing Thereon.
SUBMITTED BY: Conservation Coordinator AL'i3
REVIEWED BY: City Manager ~ft ,@\
(4/5ths Vote: Yes_ NoX)
Referral #2721
At the June 22nd meeting, Council approved in concept a Yard Waste Recycling Program
and directed staff to negotiate with Laidlaw to develop a collection service franchise. This
report describes the Yard Waste Recycling Program and with Council approval of this
resolution staff will begin the Charter required process of giving the notice of intention to
grant the franchise and set fees for yard waste recycling collection services, followed by
a public hearing on the first reading of the proposed franchise ordinance.
RECOMMENDATION: Adopt the resolution giving notice of iDtent to grant a franchise to
Laidlaw Waste Systems, Inc. for residential yard waste collection services and setting a
public hearing to consider granting said franchise and setting fees therefore on September
7th 1993 at 4:00 pm.
BOARDS/COMMISSIONS RECOMMENDATION: The Resource Conservation
Commission discussed the draft franchise ordinance at their July 26, 1993 meeting and
approved a motion (4-0-3) supporting staffs recommendation provided that one member's
comments be included in this report. His comments were as follows: 1) that it should not
be up to City Council to decide what types of containers are acceptable in the Yard Waste
Program; 2) that the $3.00 per month weekly collection (and container rental) option
charge was too high; and 3) that the number of different kinds of cans now required for
recycling could present a possible financial burden and an aesthetic's problem. Minutes
from the meeting are contained in Attachment A. Staff believes that these concerns are
appropriately addressed by the very nature of the proposed "options" Yard Waste Program
and specific responses to the concerns are discussed in this report.
DISCUSSION
In this report, staff brings forward the Yard Waste Recycling Program proposal as
conceptually approved by Council1!. The draft franchise ordinance is contained in
1. As directed by City Council at the January 26, 1993 Council meeting, staff moved to finalize the "meet and confe~'
process with Laidlaw Waste Systems with regard to the City's intent to go to competitive bid for a yard waste recycling
(continued...)
//"'1
Attachment B. The City Attorney has reviewed and approved the ordinance. A summary
of the proposed Yard Waste Recycling Program and franchise follows.
Proaram Imolementation - The franchise will allow for Laidlaw to offer collection services
to all single-family residences (25,959 households, attached and detached homes) and
specified multi-family residential complexes not serviced by curbside collection or
landscapers who haul yard waste from the multi-family complex (estimated to be
approximately 100 complexes). It is planned to have yard waste collection services
Citywide by December 1, 1993. The franchise is not intended and does not preclude duly
licensed landscape contractors from collecting yard waste or residents who wish to
compost all or part of their yard waste or self-haul to a compost or mulching facility.
Yard Waste Recvclina Proaram Ootions - This unique Program proposal provides
residents with the opportunity to design a cost effective collection system that meets the
needs of both residents and the City.
Summary of optional service levels:
1. Charge if Resident is Not Using System
$0.00
2. Subscription Services, Monthly Fee with Container Rental
a. For Laidlaw Container Rental
b. For Weekly Collection Services
Total Monthly Fee for Services With Rental
$1.00
$2.00
$3.00
3. Subscription Services, Monthly Fee with Purchase of Container
a. For Weekly Collection Services
b. One-Time Laidlaw Container Purchase Price
$2.00
$50-$60
4. Pay-As-You-Go Services, Sticker Purchases
a. For 5 cans or bundles per Sticker
$1.00
Detail of optional service levels:
Subscriotion Services: Under this option, any resident who desires to have weekly yard
waste recycling collection services would pay a monthly fee of either $2 or $3 per month.
The $3.00 fee would allow residents to place yard waste in a rented Laidlaw container at
the curb once per week, with no additional costs for the service. Residents would also
1. (...continued)
program. These meetings resulted in movement toward a significantly different and better proposal than was previously
offered by Laidlaw for yard waste collection services. Staff originally brought this "new" yard waste program proposal
to Council on June 8~, at which time Council approved a "pay as you go" yard waste collection program. At the June
22"' meeting. following Councilmember Rindone's request, Council revisited the item to allow for the yard waste
recycling program outlined in this report.
2 I /~ ~
,-
have the option to purchase a container for a charge of approximately $50 to $60 per
container. Residents who purchase the Laidlaw container would then pay $2.00 per
month for weekly collection services. In addition to the container, residents may place up
to six bundles out for collection each week.
Although the $3.00 fee is on the high end of charges, it does include the rental of a
container on wheels. Oceanside has adopted a program that requires residents to use
a container on wheels (at $2.75 per month for all residents) and EI Cajon is considering
it (at a proposed $3.82 per month for all residents). Chula Vista residents that generate
a high percentage of yard waste would benefit from this option because of the
convenience and size of the container.
Residents who do not need weekly collection could, as an alternative, purchase stickers
under the "pay as you go" option described below and use their own containers for yard
waste collection. Residents who participate in the "pay as you go" option would not be
charged the $3.00 per month rate.
"Pav As You Go": Under this option, residents would purchase stickers at $1.00 per
sticker, which would allow for the pick-up of up to five cans or bundles per collection (per
sticker). This option will benefit those residents who generate an average amount of yard
waste on a regular basis, as well as those residents who occasionally have yard and
brush trimmings of which to dispose.
Moreover, those residents who generate little or no yard waste would also benefit from
this option, as they would be able to access the collection service for a nominal fee
($1.00) per pick-up, as necessary. And, those residents who do not generate yard waste
would not have to pay for unused services.
Backvard comDostina and self-haul: Under the terms of the franchise agreement,
residents would have the option to purchase a compost bin from Laidlaw at the bulk rate
(to be approximately $50-70; similar bins retail for $100-140). As part of the informational
materials to be distributed through the Yard Waste Recycling Program, residents will
receive information about back yard composting, the purchase price of a compost bin, as
well as information on how to obtain the City's composting manual.
Residents can also have the option of taking all or a portion of their green materials to a
composting site or to the County's mulching site at the Otay landfill. Residents that
already have their green waste hauled by a landscaper will have the option of having the
landscaper continue to haul materials, or participate in the City's collection service and
have the landscaper leave the debris for collection at the curb.
Multi-familv Complexes - Staff has contacted several apartment and condominium
associations to discuss the yard waste collection program. Based on conversations with
these association contacts, it is estimated that about 20 percent of Chula Vista's multi-
family complexes do not receive landscaper services. Laidlaw is prepared to offer any
multi-family complex that needs yard waste collection the option to have their services.
As City and Laidlaw staff move to implement multi-family recycling over the next three
3
II-J
months, all complex owners and/or managers will be notified of the mandatory yard waste
diversion requirements and the Program options.
Moreover, because multi-family complexes pay for refuse on a per pick-up (per volume)
basis, those complexes that do not have landscapers who haul yard waste from the
complex could potentially benefit from separate yard waste collection because of reduced
refuse disposal needs. Rates for the multi-family complexes will be the same as those
for the single-family subscription option ($3 per month for weekly collection of one 65
gallon container).
Proaram Costs Detailed - The cost of the yard waste program has been derived using the
same formula used for both the single-family and multi-family recycling programs, where
program participants get the benefit of a credit for the amount of yard waste
(nrecyclablesn) not going to the landfill for disposal. However, because at this time yard
waste does not yet bring in any revenues, a processing fee is included and there will be
no revenues to off-set costs.
The proposed Program fees are based upon the current County system-wide yard waste
tipping fee of $25 per ton and $43 per ton for refuse. Once it is determined what the
actual system costs will be for Chula Vista, the Yard Waste Recycling Program costs may
need to be revised. Regardless, these Program costs will be analyzed and brought back
to Council in April 1994 under the terms of the proposed ordinance.
The Yard Waste Recycling Program cost breakdown is in the following chart.
Program Costs Per Sticker Monthly Subscription
Total cost of operations, $1.27<1 $2.66~
includes franchise fee of .08 .16
Processing cost at $25/ton .38 .92
Diversion credit at $43/ton <.65> <1.58>
I Total cost to resident I $1.00 I $2.00 I
Collection - Collection will be on regularly scheduled refuse days or as shall be arranged
for multi-family complexes. Currently, Laidlaw is planning to pilot (in the unincorporated
County) a vehicle that will allow for the co-collection of yard waste and refuse. This
vehicle is divided in two compartments in order to keep refuse separated from yard waste.
If the vehicle proves to be cost effective and efficient, it would benefit the City to use
2. This charge is based on an estimated 30 pounds set out weight per sticker, with an estimated 25 percent of the
eligible single-family residents participating in the "pay as you go" option.
3. This charge is based upon an estimated 17 pounds per weekly set out, with an estimated 50 percent of the eligible
single-family residents participating.
4
//- 'I
similar vehicles as this would limit the number of collection vehicles on the street to the
current number of refuse collection vehicles. Staff is working with Laidlaw to explore this
possibility and should have additional information at the public hearing for the franchise.
Containers - Residents that choose to subscribe to weekly yard waste collection services,
will be offered a container on wheels (approximately 65 gallons in size) for rent or
purchase. To keep administrative costs down, residents will be provided the opportunity
to purchase a container two times per year. All residents will be notified at the beginning
of the program and on a yearly basis thereafter of the price for purchase of the container.
Containers will be sold directly by Laidlaw. The cost is estimated to range between $50-
60 for the container, to include a reasonable handling charge. Staff will bring the exact
cost for purchase of the container to Council at the time of the public hearing for the
franchise. Residents that do not wish to purchase the container outright can rent the
,container for $1.00 per month (included in the $3 monthly subscription fee). Rental of the
container includes any replacement parts and labor or replacement of entire container at
no charge; residents that purchase the container will receive no replacement parts.
It should be noted here that Council had requested that residents be allowed to purchase
the container as part of their $3 per month fee until such time that the container would be
paid off and therefore become the resident's property. However, because the Program
will be phased in over several months and because the life of the container varies
depending on individual use and care, the administrative costs involved in tracking the
resident purchases ofthe container through monthly payments would not be cost effective.
Thus, in order to keep costs down staff proposes to allow residents the option to purchase
the container outright. Residents could make two equal payments through their quarterly
refuse/recycling bill in order to payoff the full cost of the container.
Those residents who choose the "pay as you go" option will provide their own "refuse"
can-like container (up to 35 gallons in size). Multi-family complexes can sign-up for the
subscription service and will receive a 65 gallon container(s) for storage of yard waste.
In order to keep labor and program costs down, paper or plastic bags will not be
acceptable in the program, as these materials do not readily grind or compost. If a
resident does not have an extra container, the initial cost of purchasing a container
(approximately $10), will obviously be more than the price of a plastic bag. However, over
the life of the container the cost should be less than a similar investment in plastic bags.
Properly bundled materials will be collected similarly to cans under the "pay as you go"
option; residents that subscribe for weekly collection can place up to six bundles out with
their container for no additional cost.
Processina and Marketina - Currently, the market does not provide revenues for yard
waste. However, once the material is processed (placed through a grinder), the material
can be substituted for "virgin" resources and used as mulch, compost or bio-fuel, thereby
gaining some economic value. Thus, it will cost residents to have yard waste collected
and processed, but the price will be considerably less than if the material were to be
landfilled. Moreover, if the material is turned into compost, it is assumed that the market
will grow for the compost product as it gains popularity as a soil amendment.
5 I j.. f
In order to allow for the Yard Waste Program to fully assist the City in meeting its AB 939
obligations, staff believes that it is in the City's best interest to have the collected yard
waste processed for compost or mulch (not biofuelil). On July 20th, Council approved a
resolution recommending approval that a composting facility proposed to be developed
by Organic Recycling West Inc. be included in the County Solid Waste Management Plan.
This facility is expected to open sometime in late fall. The com~ost facility tipping fee will
be lower than the County's current Clean Green tipping fee of $25 per ton. Under the
franchise ordinance, Laidlaw is directed to sell the collected yard waste to a duly licensed
composting facility provided that the cost is no higher than any other options, specifically
those of the County's Clean Green Program.
Proaram Promotion - All residents eligible to participate in the yard waste collection
program will receive an information packet which will include details of all program
elements; how residents can participate; proper placement of yard waste in containers or
bundles; the City's mandatory recycling ordinance; the recycling hotline phone number;
and, a general information brochure on composting.
The "pay as you go" sticker will be designed with a tear-off portion or it will be designed
to be easily removed to allow the yard waste collection driver to remove the tear-off
portion (or the entire sticker) once the materials are collected. Laidlaw, with assistance
from the City, will arrange for distribution of the stickers through at least two retail outlets,
Laidlaw's business location and other locations, as necessary. All promotional materials
will be written in both Spanish and English. Laidlaw and City staff will participate in
community and school outreach activities to promote the Program. Additionally, where
appropriate, outreach may be conducted in conjunction with the City's other recycling
programs.
All start-up promotional costs are included in the operational costs for the program. If,
beginning in the second year, in the City's judgment, it is reasonably determined that the
public education effort has not resulted in high enough Program interest, Laidlaw can
increase its educational activities at the City's direction to be negotiated and added to the
cost of the Program fee, not to exceed $.10 per residence per month (subscription rate,
and a similar prorated amount per sticker).
Local Manaaer - Laidlaw has agreed to have a local manager charged with the
responsibility for supervision of the yard waste recycling operations and obligations of the
Grantee and agrees to provide, at a minimum, one (1), quarter-time person directly
assigned to the Yard Waste Program, whose duties are to include: promotional material
development and distribution; program monitoring (including on-site visitations);
educational outreach to school children; community outreach and reporting duties.
4. Under AS 939, diversion of yard waste through composting or mulching counts toward diversion credits for both
the 25 percent goal (by 1995) and the 50 percent goal (by 2000). However, if the yard waste is diverted as biofuel, it
can only count for up to 10 percent of the year 2000 goal of 50 percent.
6 })..(,
Additional Franchise fee - As with the City's other franchised refuse and recycling
services, staff has included in the proposed yard waste collection franchise the option for
a franchise fee. Staff has placed the franchise fee clause in the draft franchise in
conformance with the other recycling programs and brings this item to Council's attention
to allow Council to make the decision whether or not to include the additional fee. The
proposed rates include a franchise fee of 8 percent, as follows.
'The Grantee, as part of the consideration of this ordinance, agrees to pay to the
City an additional franchise fee at a rate consistent with that paid for refuse
collection and detailed in Section 4 Consideration of the Franchise, as amended by
Ordinance 2104. This rate will begin at eight percent (8%) of the annual Gross
Receipts collected by said Grantee within the City of Chula Vista from residents for
the Yard Waste Recycling Program within the City, and increase by one-half (1/2)
percent in accordance with the refuse and single-family recycling franchise fee
increases. However, said franchise fee increase must be approved by City Council.
It is understood that any such increase in the franchise fee by the City shall be
cause for the Grantee to increase charges in order to "pass through" the cost of
the franchise fee."
Term of Aareement - The proposed term for the Yard Waste Recycling Program franchise
is proposed to be until the year 2002, subject to a two year notice of cancellation by the
City without cause which cannot be tendered sooner than the end of the third year. The
services remain cancelable for cause at any time.
Vehicle Amortization clause - Similar to the Multi-family Recycling Program franchise, the
following clause has been added in case the City decides to go to a mixed waste
processing system within the first five years of the franchise.
"If during the initial period of the franchise, or any extension thereof, the City
discontinues the separate collection of multi-family recyclables and reverts to a
Mixed Waste Processing system for commingled collection of waste and
recyclables, the City agrees to allow a rate adjustment to permit the Grantee to
recover the loss incurred on the sale of vehicular equipment specifically purchased
to meet the Grantee's obligations under this ordinance. Such loss will be
calculated by deducting the realizable market value of the equipment from the
reasonably depreciated book value of the equipment at the time of the sale of
equipment."
Enforcement of mandatorv recvclina ordinance - Enforcement of yard waste recycling, as
required by the County's mandatory recycling ordinance, would operate similarly to our
Curbside Recycling Program. If a resident's refuse container is found to have yard waste
placed in it, the refuse container would be tagged by the refuse collector and the resident
would receive follow-up letters and informational materials from staff, with legal
enforcement a possibility for continued violations. To date this method of public outreach
has worked very successfully for the Curbside Recycling Program.
7
)/~ ?
Under the franchise ordinance, residents (or multi-family property managers) will receive
up to three warning notices should their (separated) yard waste container have trash in
it. Following the third notice, they shall be notified that they are in violation of the City's
mandatory recycling ordinance and that said residence is subject to the enforcement
procedure in accordance with the ordinance.
Conclusion
The average single-family residence sets-out approximately 68 gallons of refuse each
week, including yard waste (a "regular" size trash can is 30 gallons). Thus, a weekly set-
out allowance of one 60-gallon container and up to six bundles should meet the needs of
most "high end" generators of yard waste. Those residents with medium to small yards
and those who mulch and/or compost should be able to limit their use of the "pay as you
go" services to once per month, allowing for five cans or bundles per sticker (Le., per pick-
up) or at most $2 for collection twice a month (10 cans or bundles).
Staff has also included a rate survey conducted for all cities, as Attachment C. Rates
around the County range from $12.65 to $20.16 for refuse, yard waste and recycling
services combined~. The average rate for yard waste in cities that have established
programs is $2.01 per month. Currently, Chula Vista's combined refuse and recycling rate
is $14.33. Thus, if a resident chooses the proposed "pay as you go" yard waste service
option once per month, the combined services would cost $15.33 per month or if a
resident subscribes for weekly collection the cost would be $17.33 per month (including
container rental) or $16.33 per month (with purchase of the container). Staff would also
like to note that Chula Vista's recycling fee is the lowest in the County.
Most importantly, in those cities with yard waste programs, all residents are charged the
yard waste collection fee, regardless of usage. Thus, in these programs, residents who
have little or no yard waste are subsidizing the program for those who generate large
amounts of yard waste. Universal rate charges may be kept somewhat lower than the
proposed options program, depending on the option selected by a resident, because
under a universal rate program all residents are charged and thus costs are spread
between all residents, again, even though not all residents use the program. Under the
options proposal it is assumed that approximately 50 percent of the residents will use and
pay for the weekly collection option at $2 or $3 per month subscription rate, approximately
25 percent will use the "pay as you go" option and 25 percent will not use the service at
all, so it is anticipated that for most Chula Vista residents the rate will be lower than the
County average.
The "universal" rate fee is appropriate for the collection of recyclables, as there are
markets for these materials (thus bringing in monies to off-set program costs) and virtually
all residents at least generate some recyclables. However, with yard waste there is little
or no current market (thus the charges must cover virtually all collection costs) and, many
5. Please note that some cities have not yet increased their refuse rates to reflect the County's increased tipping fee
(effective August 1).
81/-Y
residents generate little or no yard waste. By charging all residents for collection, source
reduction through composting and mulching is discouraged instead of being encouraged.
In Chula Vista, we have a relatively high percentage of seniors, who generate little or no
yard waste and composting is very popular with many residents.
FISCAL IMPACT: Costs associated with the proposed yard waste recycling program will
be individually determined and brought to Council prior to moving forward with program
implementation. These costs are expected to be borne by the user at $3 per month for
weekly collection (including container rental); or, $2.00 per month (if resident purchases
the container); or, $1 per sticker for the "pay as you go" option; or, $0 per month for no
yard waste service. The proposed service charges include a proposed 8 percent
franchise fee to be paid to the City, estimated at approximately $4000 per year.
,9,.,.11<<1( .
A~(!j
NOTSCA.NNID
9 //..., /1-16
Attachment A
MINUTES OF A SCHEDULED REGULAR MEETING
Resource Conservation Commission
Chula Vista, California
6:00 p.m.
Monday, July 26, 1993
Conference Room #2
Public Services Building
CALL MEETING TO ORDER/ROLL CALL: Meeting was called to order at 6:05 p.m. by
Chairman Kracha. City Staff Environmental Review Coordinator Doug Reid called roll.
Present: Commissioners Hall, Kracha, Ghougassian, Burrascano. It was MSUC
(Hall/Burrascano) to excuse Commissioners Myers (school) and Johnson (vacation); 4-0.
APPROVAL OF MINUTES: It was MSUC (Hall/Burrascano) to approve the minutes of the
meeting of July 12, 1993.
NEW BUSINESS:
1. Yard Waste Franchise - reported by Athena Bradley. Several comments were made by
Ghougassian and requested they be forwarded in comments to council:
(a) The monthly fee of $3.00 too high (Option 2).
(b) He brought his personal bills to compare refuse rates from 1990 to present.
Although waste collection is a profit-making business for Laidlaw, the increase
in fees and the additional costs for yard waste and other recyclables is excessive.
( c) He noted on the report that the yard waste containers were approved in concept
by coupcil and believes it is not in their jurisdiction to make those decisions.
Further, that purchase of additional containers for yard waste and other
recyclables puts a financial burden on residents. He also commented that the
different kinds of containers causes non-aesthetic views from yards of residences.
Athena explained that residents are not required to purchase any specific kinds of
containers, but that Laidlaw has noted which ones are acceptable for collection.
Laidlaw also provides bins for newspapers, etc. and requests that residents just
separate the recyclables. The council approved the option plans and not the types
of containers to use.
(d) Questioned why plastic bags were unacceptable for grass clippings. It was
explained that these bags do not recycle along with the clippings and have to be
removed from the composting process by hand.
Hall asked about the cost of composting bins. The bulk rate is about $50 and Laidlaw
will sell them at that bulk rate.
It was moved and seconded (Burrascano/Hall) to support the (3) options plan of the
franchise agreement; Vote 3-1 (no - Ghougassian); motion failed.
. It was then moved and seconded (Ghougassian/Hall) to support staffs recommendation
to council with his above-noted comments to be incorporated and forwarded in the report
to council; 4-0, motion passed.
11./3
Resource Conservation Commission
Page 2
2. Negative Declaration IS-93-33 - A.A. A.A. Automobile Storage: After a brief report by
Doug Reid, it was MSUC (GhougassianlBurrascano) to support the negative declaration;
4-0, motion passed.
3. Negative Declaration IS-93-37 - Dixieline Drainage Channel Realignment: Diana
Richardson briefly explained the drainage channel realignment and the mitigation
measures taken to prevent erosion. It was MSUC (Hall/Burrascano) to support the
negative declaration; 4-0, motion passed.
4. Negative Declaration IS-93-40 - Jehovah's Witnesses Church: Diana Richardson
introduced Jim Moore, applicant and Jim Moxon, agent for the church. She noted the
significant impacts are the presence of the gnatcatcher and coastal sage scrub and that
applicants must obtain a permit for building on the site. It was MSUC
(Ghougassian/Hall) to support the negative declaration; 4-0, motion passed.
5. Negative Declaration IS-93-41 - Sanchez Medical Building: After Doug Reid's brief
summary, it was MSUC (Hall/Burrascano) to support the negative declaration; 4-0,
motion passed.
STAFF REPORT: None.
CHAIRMAN'S COMMENTS: Kracha announced he will not be present for the August
meetings.
ADJOURNMENT: The meeting was adjourned by Chairman Kracha at 7:05 p.m.
Respectfully submitted,
EXPRESS SECRETARIAL SERVICES
cJJO-WJJ~ ~-.J
Barbara Taylor
/I~/r
RESOLUTION NO.
17~J..J..
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA GIVING NOTICE OF INTENT TO GRANT A
FRANCHISE TO LAIDLAW WASTE SYSTEMS, INC. FOR
RESIDENTIAL YARD WASTE RECYCLING COLLECTION
SERVICES, INC. FOR RESIDENTIAL YARD WASTE
RECYCLING COLLECTION AND SETTING A PUBLIC
HEARING THEREON
WHEREAS, at the June 8 and June 22, 1993 meetings,
Council directed staff to negotiate with Laidlaw to develop a yard
waste recycling collection service franchise with Laidlaw Waste
systems; and
WHEREAS, staff has drafted the proposed franchise and
with Council approval of this .resolution will begin the Charter
required process of giving the notice of intention to grant the
franchise and set fees for yard waste recycling collection
services, followed by a public hearing on the first reading of the
proposed franchise ordinance.
WHEREAS, the Resource Conservation commission at its July
26, 1993 discussed the draft franchise ordinance and approved a
motion supporting staff's recommendation.
NOW, THEREFORE, BE IT RESOLVED that the city Council of
the City of Chula vista does hereby give notice of intention to
consider granting to Laidlaw Waste Systems, Inc. a franchise for
residential yard waste recycling collection services, substantially
in the form as contained in Attachment B and subject to any
modifications as may be made by the Council at subsequent hearings
and/or meetings and setting a pUblic hearing at 4:00 p.m. on the
7th day of September, 1993 in the Council Chambers, 276 Fourth
Avenue, Chula Vista, California when any person having any interest
therein or any objection to the granting thereof may appear before
the city Council and be heard.
BE IT FURTHER RESOLVED that the City Clerk of the city of
Chula vista is hereby directed to publish notice of said earing at
least once within fifteen days of the passage here in the
official newspaper.
Presented by
or
Athena Bradley, Conservation
coordinator
ruce M. Boogaard,
city Attorney
C:\rs\franchis.rcy
1)"// 1,.../'1
Attachment B
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF CHULA VISTA AMENDING
ORDINANCE NO. 1993, AS AMENDED, BY MODIFYING THE
TERMS OF THE LAIDLAW WASTE SYSTEMS, INC. FRANCHISE
TO REQUIRE COLLECTION OF YARDWASTE FROM SINGLE-
FAMILY AND SPECIFIED MULTI-FAMILY RESIDENCES WITHIN
THE CITY OF CHULA VISTA FOR THE PURPOSE OF
RECYCLING.
The City Council of the City of Chula Vista does ordain as follows:
SECTION I: That Section 8.23.010 of the Chula Vista Municipal
Code is hereby amended to add the following subsection:
Sec. 8.23.010
Definitions.
" EE 1/2.1' "Salvaging or Salvageable" means the controlled and/or
authorized storage and removal of Solid Waste, Designated Recyclables
or recoverable materials."
SECTION II: That Section 8.23.230 is hereby added to the Chula Vista
Municipal Code to read as follows:
Sec. 8.23.230 Residential Yard Waste Recvclina Services
Grantee shall provide Yard Waste Recycling services to all Single-
family Residences and those Multi-family dwellings not serviced by
Curbside Collection or by landscapers who haul yard waste from the
Multi-family dwelling ("Specified Multi-Family"), on the following terms and
conditions:
A. Exclusivitv - The City grants to Grantee, for the term herein
specified and subject to such terminations herein allowed, the
exclusive right to collect Yard Waste, deposited in Designated Yard
Waste Recycling Containers (or alternatively, "Containers") and/or
bundles located at Designated Recycling Collection or Storage
Location(s) as may be identified for Single-family households and
by Specified Multi-family dwellings. This grant of exclusive license
is not intended and does not preclude duly licensed landscape
contractors, non-profit organizations and community groups from
conducting recycling programs for the purpose of raising funds, nor
1. Clerk is authorized to renumber as appropriate.
1
11'/'>
does it preclude a person from selling or otherwise disposing of
their own Yard Waste through a landscape contractor, self-haul or
composting, so long as said collection, donation or sale does not
occur at the Designated Recycling Collection or Storage Location.
However, once the Yard Waste has been placed in the Designated
Recycling Containers or at a Designated Recycling Collection or
Storage Location, the material ("Franchised Recyclables") becomes
one of the subject matters of this grant of franchise. The Grantee
agrees to cooperate with the City in reaching a modification to this
Section to the extent required by law at anytime it should be
deemed necessary in the future.
B. Obliqations of Grantee
1. Implementation Schedule - Grantee shall commence and
diligently implement this franchise Citywide from the date of this
franchise so that all single-family residences and Specified Multi-
Family residential complexes in the City have Yard Waste
Recycling Collection service by December 1,. 1993.
2. Collection - Grantee shall furnish said labor, services, materials
and equipment required to perform this franchise. Grantee shall
provide Collection and Removal services for all Yard Waste which
is placed in Designated Recycling Containers or in bundles, at
Designated Recycling Collection or Storage Locations, as defined
by the City of Chula Vista Municipal Code Chapter 8.25,
segregated from Refuse, from all Single-family and Specified Multi-
Family residences. Grantee shall offer collection of Yard Waste not
less than once per week and provide any additional Collection as
shall be necessary to prevent overflow of the Exterior Recycling
Containers at specified Multi-family Residences. Collection will be
on regularly scheduled Refuse Collection days or as negotiated
with the City for Single-family residences and as shall be arranged
with the building property owner, manager or designated agent
thereof for Specified Multi-family complexes. The Grantee and the
City will mutually agree to any changes in Collection schedule
frequencies or Removal Frequency.
Design of Collection vehicles shall be done to limit the
contamination and maximize the salvageable value of the collected
Yard Waste. Any and all changes to the established means of
Collection of Franchised Residential Recyclables, as herein
outlined, shall be notified to the City in advance.
Acceptable materials for collection include all Yard Waste as herein
defined, excluding palm fronds, treated or processed wood or
2
/I"/~
lumber, Bulky Waste or any other materials as shall be determined
by the City as to not be Salvageable. All acceptable Yard Waste
shall be void of nails, wire, rocks, dirt or any other material that is
not considered Yard Waste.
3. Containers - Grantee shall purchase and distribute, or otherwise
arrange for the distribution of, Designated Recycling Containers, to
include the following:
a. Yard Waste Recycling Container. A Container on wheels
(approximately 67) to be used for the collection of Yard
Waste shall be offered to each eligible Residential customer
for purchase or rent. Grantee shall distribute Containers to
all customers requesting use of said Containers. The type
of Container to be used or changes of Container type shall
be approved by the City prior to purchase and distribution.
Grantee shall retain ownership of the Containers unless the
customer pays in full for the Container, as specified herein.
Paper (kraft) or plastic bags will not be acceptable in the
program, unless negotiated between the City and the
Grantee. Properly bundled materials, such as tree limbs
shall be included in the Collection, as herein defined.
Acceptable bundles shall be no longer than four (4) feet in
length, no more than eighteen (18) inches in diameter, or no
heavier than forty (40) pounds. Bundles may be tied with
string or twine only; no wire, plastic or other material may be
used. Residents may provide their own "refuse" can-like
Container for the purpose of storing the Yard Waste for
Collection. This Container must be of the type acceptable
by the City for the Collection of Refuse, in accordance with
City ordinances. No Container shall be more than 35
gallons in size and weigh more than fifty (50) pounds when
used for Storage of Yard Waste for Collection. All
Containers used for the Storage of Yard Waste. shall be kept
so that operational performance allows for maximum hauler
Collection efficiency.
Grantee will be responsible for keeping records and making
them available to the City regarding additional Containers
requested, and the reason for the request, e.g., damaged,
stolen, etc.
b. Exterior Recycling Containe.rs. An appropriate Yard Waste
Collection and Storage Container(s) shall be provided for
use at each Multi-family complex that meets the space
3
//"/7
restraints and Collection needs of the respective complex
and the residents therein. Said Containers may include 90
gallon carts on wheels, 2 cubic yard bin or 3 cubic yard bin.
Each container shall conform to the following: plastic
containers should include recycled plastic content; be fire
resistent; be of durable quality and warranty; be heat
stamped or labeled for commodity; be clearly labeled on the
lids and the front facing of the bin, in Spanish and English
(with graphics) as to the Designated Recyclable(s) and "No
Trash"; be clearly labeled with the Grantee's name and
phone number.
c. Compost bins. The Grantee agrees to offer Compost Bins
to all residents. The Grantee shall arrange for a mechanism
that allows for bins to be ordered through the Grantee and
sold to residents at the bulk purchasing cost (including
shipping and a reasonable handling and administration
charge). Compost bin types to be considered should be
sturdy and proven state-of-the-art compost design. The
Grantee may choose to offer residents a choice of two
different models, e.g., one "open composting system" and
one "closed." Bins should be composed of scrap waste
wood and/or recycled plastic content. Residents shall be
allowed to purchase the bins through an ordering system
designed by the Grantee, with assistance from the City, that
allows for wide distribution of the ordering mechanism (e.g.,
mail order coupons) to a majority of Chula Vista residents.
The franchisee will work with the City to establish and
implement the bin ordering system.
The Grantee will work with the City to provide information to
the residents on bin delivery and/or pick-up specifics, and on
the use of the composting bins, once received. Bins may be
dropped or shipped to a central location in the City for pick-
up by residents from that site, provided residents are
properly notified as to the pick-up point, or as an alternative
bins may be delivered directly to residential dwellings.
4. Transportation and Marketina of Franchised Recvclables -
Grantee shall transport collected Franchised Recyclables to a
central collection and Processing point and shall retain
responsibility of the materials, so as to yield the highest possible
Salvageable value for the Franchised Recyclables as collected and
in accordance with any Processing contract held by the Grantee.
No noncontaminated Franchised Recyclables shall be Landfilled,
unless approved by the City. Should the collected Yard Waste be
4
I/'/~
unsalvageable, only the City Manager (or designee) of the City of
Chula Vista may decide not to collect the affected Yard Waste
material. All written contracts, if any, with processors, recyclers or
other brokers of Franchised Recyclables shall be submitted to the
City.
Franchised Recyclables that are contaminated due to the
placement of Refuse in a Designated Recycling Container, or
inclement weather that leaves the Franchised Recyclables
unsalvageable, may be landfilled. The Grantee shall retain a
record of such occurrences and report said occurrences to the City
on a quarterly basis. Should contamination of Franchised
Recyclables occur at a Single-family or Multi-family complex, said
residence shall be notified. Should contamination occur three or
more times, said residence shall be notified that they are in
violation of CVMC Chapter 8.25 and that said residence in subject
to penalties therein described.
In order to allow for the Yard Waste Program to fully assist the City
in meeting its AB 939 obligations, the City is interested in having
the collected Yard Waste processed for compost or mulch (not
biofuel). To this end, the City reserves the right to direct the
Grantee to transport the collected materials to a duly permitted
composting facility in the South Bay area, if it deems it to be in the
best interest of the City. The City will negotiate with the Grantee
to allow for the most equitable and beneficial processing of the
collected yard waste. City staff will assist in the marketing of
material to the extent practical and feasible.
5. Missed Pick-ups - In case of missed pick-up called in by a
Single-family Resident or Multi-family complex property manager,
owner or designated agent thereof, Grantee shall, where possible,
provide Collection within 24 hours. If unable to accommodate due
to inadequate notice, the Franchised Recyclables shall be picked-
up on the next scheduled collection day and Single-family Resident
or Multi-family complex owner, property manager or designated
agent thereof is to be notified. If the Designated Recycling
Containers are overflowing or otherwise creating a Nuisance as a
consequence of a missed pick-up, the Grantee is required to
provide Collection within 48 hours of notification of missed pick-up.
Information on missed pick-ups shall be logged by Grantee and
shall be available to the City.
6. Public Awareness Proaram - The parties hereto agree to work
diligently to formulate promotional plans and/or advertising to
encourage Recycling in the City and thereby maximize the mutual
5
II--If:}
benefits of this ordinance. The Grantee, in conjunction with the
City, is responsible for promotion, education and outreach activities
related to the program. The Grantee will prepare an introductory
packet of information regarding the Citywide Yard Waste Recycling
program and will distribute such packet to each eligible residence
and Specified Multi-family complex owners, property managers or
designated agent thereof. The packet shall include, but not be
limited to: a) an informational notice, appropriate for hanging on
refrigerator or other location indoors, that details all program
elements, how residents can participate, proper placement of Yard
Waste in Containers or Bundles, the City's mandatory recycling
ordinance and recycling hotline phone number; and, b) a general
information brochure on composting;
A "pay as you go" sticker designed with a tear-off portion to allow
the Yard Waste Collection driver to remove the tear-off portion
once the materials are collected shall also be made available to
Program participants. The Grantee, with assistance from the City,
shall arrange for distribution of the stickers through at least two
retail outlets, the Grantee's business location, and other locations,
as necessary, to be negotiated.
All promotional materials shall be developed with the City's
Conservation Coordinator's or other designated City employee's
advise and consultation, from the first step in development, through
the final printing and distribution of materials. No materials shall be
developed or distributed without the approval of the Conservation
Coordinator or other designated City employee. All Introductory
Materials shall be fully translated into Spanish, unless otherwise
approved by the City. All subsequent materials shall be fully or at
least partially translated into Spanish, unless otherwise approved
by the City. All program materials shall utilize graphic
representation of Designated Recyclables. The franchisee will be
required to distribute the City's composting guide (upon resident
request) and other City developed yard waste related informational
materials; the City will provide copies of guides and City developed
materials at no cost to the negotiated franchisee.
The Grantee shall provide to the City a detailed outline of program
promotional materials to be developed and outreach activities to be
conducted in advance of program implementation. The Grantee
will participate in community and school outreach activities during
the initial phase of program implementation and provide ongoing
outreach activities, to include, community events, media events,
make presentations to community groups and businesses on an as
needed basis and as directed by the City, and attend County-wide
6
//".21)
meetings related to recycling, speaking on the City's Yard Waste
Recycling Program if needed and directed by the City. The
Grantee also agrees to reasonably assist in developing incentives
to increase participation and tonnage collected, and to encourage
involvement of community and youth groups. All such Yard Waste
Program outreach may be conducted in conjunction with the other
franchised Recycling programs, upon approval by the City.
The Grantee and the City agree that the main purpose of an
aggressive public education program is to increase participation
and diversion, as well as limiting contamination of Franchised
Recyclables. Beginning in the second year, if, in the City's
judgement, it is reasonably determined that the public education
effort has not resulted in high enough Program interest, the
Grantee will perform reasonable public education activities at the
City's direction at a cost to the Grantee to be agreed upon by the
City and added to the cost of the Program fee, not to exceed $.10
per Unit per month. If needed, as part of the educational activities
as determined by the City with input from the Grantee, the Grantee
will develop incentives to increase participation, such as, offering
rewards for program participants that have high participation levels
and high tonnage levels.
The Grantee agrees to work with the City to provide ongoing
Program monitoring services and quality control to prevent
contamination of materials and encourage participation to property
managers, to include on-site visitations, as deemed necessary by
the Grantee and/or the City.
The Grantee will provide to the City a quarterly accounting of all
outreach activities conducted during the previous quarter. The
Grantee will also provide an accurate accounting of all costs
associated with Program outreach, to include, but not be limited to,
costs for designing of outreach materials, printing of outreach
materials, etc.
7. Local Manaaer - The Grantee shall at all times during the term
of this ordinance have a local manager charged with the
responsibility for supervision of the recycling operations and
obligations of the Grantee and agrees to provide, at a minimum,
one (1), quarter-time person directly assigned to the Yard Waste
Program, whose duties are to include: promotional material
development and distribution; program monitoring (including on-site
visitations); educational outreach to school children; community
outreach and reporting duties.
7
I/~.:ll
8. Anti-scavenging - The Grantee agrees to provide information to
all property owners, managers or designated agents there of
regarding the City's anti-scavenging ordinance and how to report
scavenging occurrences. The Grantee agrees to inform all of its
employees of the City's anti-scavenging ordinance on a regular
basis and how said employees shall report scavenging
occurrences.
C. Obliaations of the City - Subject to the provisions of Paragraph B5
of this ordinance, the City shall have lead responsibility for directing
the development and expenditures of the public awareness
activities for the Yard Waste Recycling Program.
The City agrees to reasonably enforce all Program specifications.
This includes the following: that Single-family residents and Multi-
family complexes are allowed to place up to five containers (to be
no more than 35 gallons in size each) and/or bundles at the
Designated Collection Location per "pay-as-you-go" sticker; the
City's mandatory recycling ordinance requirements as they pertain
to Yard Waste and as described herein; and, Yard Waste
Container specifications.
If during the initial period of the franchise, or any extension thereof,
the City discontinues the separate collection of multi-family
recyclables and reverts to a Mixed Waste Processing system for
commingled collection of waste and recyclables, the City agrees to
allow a rate adjustment to permit the Grantee to recover the loss
incurred on the sale of vehicular equipment specifically purchased
to meet the Grantees obligations under this ordinance. Such loss
will be calculated by deducting the realizable market value of the
equipment from the reasonably depreciated book value of the
equipment at the time of the sale of equipment.
D. Funding and Rates for Collection
1. Funding Sources - The Residential Yard Waste Recycling
Program will be funded by four sources: a monthly recycling fee to
all eligible residents (to be billed to the property manager or
resident, as with refuse billings); Net revenues from the sale of
collected Yard Waste material, at such time as the market provides
revenues for Yard Waste; savings in disposal cost of material
diverted from the landfill; grant funds when available and awarded.
a. A monthly recycling fee, charged to eligible residents is the
primary source of funding for this program. In general, it will
be allocated equally among the customer base, as
8
/)"' "J,;L
I'
.[/
determined by Section D.2 below, receiving said Recycling
Collection services and will be determined by the Grantee's
operating expenses directly attributable to the recycling
program, less: any such revenue that shall be received from
the sale of the collected Recyclables at such time that the
market allows, the savings realized in disposal costs of
material diverted from the landfill and any grant funds
received for the program.
b. All collected Recyclables will be marketed at fair salvageable
value, as outlined in Section B.3 above, and any such net
revenues as shall be obtained from such sales shall be
retained by Grantee as an offset against operating
expenses. The City shall be notified of significant changes
in fair salvageable values in writing as part of the quarterly
reporting requirements.
c. Recyclables collected in the Program will be diverted from
disposal in the landfill, thereby resulting in a cost savings to
the Grantee ("Landfill Diversion Credit"). On a monthly
basis, Grantee will determine the recycled material tonnage
collected and the resulting Landfill Diversion Credit based on
the landfill disposal cost approved by Council for refuse
collection rates and will credit this savings during the first
year of operation as an offset against operating expenses.
When reevaluating program costs in subsequent years, the
City agrees to consider Landfill Diversion Credits of less
than 1 00 percent. The amount will be subject to negotiation
and the intent is to provide an economic incentive for the
Grantee towards increased participation and program
success.
d. Any grant funds received will be applied to the costs of the
Program when award is noticed or during the next rate
review procedure if the award takes place once a specific
rate has been determined, with the intent of directly reducing
the monthly fee to the rate payer.
2. Rates for Collection - It is the City's intent to ensure that the
rates charged to the citizens for the Yard Waste Recycling Program
are appropriate and equitable. The City hereby establishes the
following fees and charges for Residential Yard waste services,
based on using the service, using the service with a resident's own
container, or using the service with a Laidlaw-provided container,
either rented or purchased. These fees and charges are subject
to change by the Council by resolution from time to time as the
9
//-.2::1
Council determines necessary. The Council directs that the below
listed fees and charges shall be placed in the City's Master Fee
Schedule, and any amendments hereto shall be by resolution
amending said Master Fee Schedule:
Optional Service Levels. Each Item below is in the alternative:
1. Charge if Resident is Not Using System* . . . .$0.00
2. Subscription Services, Monthly Fee with Rental
1. For Laidlaw Container Rental ..... .$1.00
2. For Weekly Collection Services***. . . . .$2.00**
Total Monthly Fee for Services With Rental. . . . $3.00
3. Subscription Services, Monthly Fee with Purchase of
Container.
1. For Weekly Collection Services***. . . . .$2.00
2. One-Time Laidlaw Container Purchase
Price. . . . . . . . . . . . . . .$50.00-$70.00*
4. Pay-As-You-Go Services, Sticker Purchases
1. For 5 cans or bundles per Sticker. . . . $1.00
Notes to Service Charaes
*
Requires composting of yardwaste or self-haul.
Yardwaste may no longer be put in regular trash.
**
Purchase of Laidlaw Container Required If Resident
Desires Not to Rent Laidlaw Container. See Item 3
Below.
***
Service price entitles Resident to put out weekly 1
Laidlaw container (65 gal) and up to 6 bundles in
addition to the Laidlaw container.
Specific rate review procedures will be used by the City which are
consistent with the procedures used for normal Refuse Collection.
Council intends to provide annual reviews of the aforementioned
fees and charges, and currently intends that same shall occur on
or about May 31 st of each year. Rate review will consider
adjustments for actual sale of Recyclables and Landfill Diversion
Credits in previous period compared to original estimated amounts.
Shortfalls or overages will be used in determining rates .for
10
/1':;''/
upcoming periods. Rate review will be conducted as referenced in
Section 9 of the Franchise as amended, including the amendment
created by Ordinance No. 2104, Rates for Collection. An increase
in rates for Yard Waste Recycling services will be subject to the
same limitations and conditions for Refuse Collection rates listed
in Section 9.
E. Record Keepina and Reports - Grantee agrees to accurately record
collection data sufficient to comply with the reporting requirements
delineated below and shall file with the City written quarterly and
annual reports of Grantee's performance under this ordinance as
follows:
1. Quarterly Program Reports - Within fifteen (15) working days
after the last day of each quarter, Grantee shall submit a Quarterly
Program report to include, but not be limited to, the following:
a. Tonnage summary of all Franchised Recyclables
Recovered, by material and including a revenue statement
of all sales of Franchised Recyclables from the Program, by
material. .
b. Salvageable value for all Recyclables collected from the
Yard Waste Recycling Program by the Grantee and/or its
processor assignee. The weight receipts and salvageable
value for material at the time processed shall be available
for inspection by the City.
c. Total number of customers served in the Program and
resident participation rates in terms of an overall Program
average. Any increases to the number of customers
serviced shall also be reflected.
d. Discussion of problems and noteworthy experiences in the
Program operation, to include specifically contamination
occurrences, listed by Residence. Grantee agrees to
monitor Program participation to reflect general participation
by residents, contamination problems, other problems and
assess need for additional public outreach activities.
e. Report of all education and community outreach efforts
conducted during the quarter.
1. Overall assessment of performance during the quarter.
g. Recommendations to increase tonnage of Franchised
11
/1";,5'
-,
Recyclable materials recovered.
2. Annual Report - On or before July 31 of each year of the term
of this ordinance, Grantee shall submit a fiscal year-end annual
report to include, but not be limited to, the following:
a. A collated summary of the information contained in the
quarterly reports and a summary of the average overall
Program participation rates and tonnages of recovered
Franchised Recyclables.
b. Discussion of problems and noteworthy experiences in the
Program operation, measures taken to resolve problems,
increase efficiency and Program participation. Number of
complaints listed by type of complaint, i.e., missed pick-up,
quality of service, etc., that occurred during the year.
c. Report of all education and community outreach efforts
conducted during the year and a discussion of their general
impact on participation and recovered tonnages.
d. Overall assessment of performance during the year.
e. Recommendations to increase tonnage of recyclable
materials recovered.
f. Additional information as necessary to meet State and/or
Federal mandated reporting requirements.
F. Performance Standards - This ordinance for Residential Yard Waste
Recycling services is subject to the performance standards and franchise
conditions detailed in Section 14 Forfeiture of the franchise (ordinance No.
1993). While it is the intent of Section 23 to describe specific Yard Waste
collection services to be provided by the Grantee in addition to existing
refuse collection and disposal services, Grantee agrees that unacceptable
performance of recycling services will be considered severable from its
other obligations under the Franchise.
Every reasonable effort must be made by the Grantee to maintain high
levels of participation in order to reach the City's established diversion
goals and assist in meeting the diversion standards set out in Assembly
Bill 939 and the City and County's Mandatory Recycling Ordinances.
G. Additional Franchise Fee - The Grantee, as part of the consideration
of this ordinance, agrees to pay to the City an additional franchise fee at
a rate consistent with that paid for refuse collection and detailed in
12
/I':l~
Section 4 Consideration of the Franchise, as amended by Ordinance
2104. This rate will begin at eight percent (8%) of the annual Gross
Receipts collected by said Grantee within the City of Chula Vista from
residents for the Yard Waste Recycling Program within the City, and
increase by one-half (1/2) percent in accordance with the refuse and
single-family recycling franchise fee increases. However, said franchise
fee increase must be approved by City Council. It is understood that any
such increase in the franchise fee by the City shall be cause for the
Grantee to increase charges in order to "pass through" the cost of the
franchise fee.
H. Term - it is the intent of the City that the term for the provision of
Residential Yard Waste Recycling Services shall be to the year 2002,
subject, however, to the right of the City to cancel same upon giving a two
year notice of cancellation by the City without cause which cannot be
tendered sooner than the end of the third year from the date of the
adoption of the ordinance enacting this Section. The services remain
cancelable for cause at any time.
SECTION 3: This ordinance shall take effect and be in full force and effect
on the thirtieth day from and after its adoption.
Presented by
Approved as to form by
Athena Lee Bradley
Conservation Coordinator
Bruce M. Boogaard
City Attorney
13
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CityofChuJa Wsta
MEMORANDUM
lit-
DATE:
August 10, 1993
TO:
Honorable Mayor and City Council
FROM:
John D. Goss, City Manager!!
George Krempl, Deputy City Manager ~{t-
Teri A. Enos, Principal Management Assista~
VIA:
SUBJECT: County Solid Waste Enterprise Fund Reserve Balances
This is in response to your request for information on the amount of funding available in the County's Solid
Waste Enterprise Fund reserves for the clean-up of old landfills. This fund balance information has been provided
by County Solid Waste Division Staff and reflects the reserve fund balances as of 6130/93.
Hillsborough Reserve
$2,255,805.40
Funds in this account can
only be used on the
Hillsborough project.
Active LandfIll Closure/Post
Closure Reserve
$12,693,150.91
This is a state mandated reserve
that can only be used for the
future closure of those landfIll
sites which are currently being
operated ( e.g. Otay).
NCRRA Reserve
$10,982,677.49
A $10,000,000 reserve must be
maintained to fulfill bond
requirements.
Facilities Reserve
$5,599,859.26
This is the funding source
which could be called upon
to address the $IOOM in
capital project needs which
have been identified by the
county (Attached). These
capital costs include $27M in
inactive site remediation.
(fundbal)
/)./1-/
, 'i
.. . \...
;..-;
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.
. County of San Diego
CAPITAL PROJECI' NEEDS
ACTIVE LANDFILLS
· SAN MAROOS EXPANSION · $49 MILLION
(n.l . SI1) .
(11er Z . 110 >> .
(n. S . $7) .
(alP req'lIds . $9) .
(olb. req'mtl . SU) .
. RAMONA DUFfER ZONE . So.S .
OTAY. CANYON 3 . $6 .
OTAY J.AND PURCHASB . $0.11 .
(!fAY FLAIUi . '1 .
SYCAMORE FlARE . '1 .
TOTAL . $ 58 MILLION
INACTIVE SITE REMEDIATION
· SAN YSIDRO BURN Srr!
PALOMAR AIRPORT
JAMACHA LANDFILL
POWAY LANDfill.
ENCINITAS LANDPILL
VALLBY CBNTBR lANDFILL
GII.LIlSP,1E LANDFILL
BO~.SALL ~FJLL
TOTAL
. SO,Z' MlWON
. 56 .
. 58 .
. $I .
. 56 . I
. 52 .
. 52 .
. 51
= $27 MILLION
PROPOSED FACILITIES
NO, COUNl'Y LANDFILL
SO, OOUNTY lANDlollJ.
· VISTA TRANSFER SlTR
TOTAL
. S 6 twmllON
. S3 .
w.6 .
- $15 MD..LION
. $100 MILLION
TOTAL
* -
/NCIllf1tl1) iii I'IIIST _D 1:ISlI~Nt:lllUIQl.fIST. l'AU 1M
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,
CityofChu]a Wsta
MEMORANDUM
DATE:
August 17, 1993
FROM:
The Honorable Mayor and City Council
r'Y
John D. Goss, City Manageo
Teri A. Enos, Principal Management Assistan&
TO:
VIA:
SUBJECT: Solid Waste Update
This memorandum is to inform you of the developments which have transpired related to solid
waste have transpired since Item 12B of tonight's agenda was prepared.
. On Thursday, August 12, 1993, the North County Solid Waste Management Agency
(NCSWMA) met and took the following actions:
1) Voted to respond to Orange County's Request for Proposals to Accept Non-
County Waste. A copy of the Orange County RFP is attached for your
information.
2) The (NCSWMA) briefly discussed the attached draft "Priority Issues for the
Interim Commission to Address". The Agency members indicated that they
would be taking these priorities back to their Councils for input. You will note
that the Agency's draft list includes the determination of the ultimate form of
governance (number one priority) as well as several other issues which this
Council has raised. The Agency will discuss the final prioritization of these
matters at their next meeting (TBA) and the Carls bad representative (Mayor
Bud Lewis) indicated that his city, as both a member of the Agency and
Commission, would be presenting these items for consideration at the next
Commission meeting (September 2).
. On Thursday, August 12, 1993, the City ofEscondido sent a letter to the elected officials
of the various cities regarding issues with the NCRRA Facility. This letter (attached)
was signed by Mayor Harmon and Councilmember Lori Holt pfeller.
. On Tuesday, August 17, 1993 (today), the City ofEl Cajon may reconsider its previous
decision to join the Commission and instead consider a proposal by Waste
J2./-} ~J
~
,
Honorab]e Mayor and City Council
Solid Waste Update
August ]7, ]993
Management, Inc. (dba Universal Refuse Remova]). In a memorandum to their
Council, dated August 13, 1993, (attached) the City Manager recommends rejection of
the Waste Management Proposa] at this time, that they continue to seek solutions
through the Interim Commission, and that they concurrently investigate other options
(such as Campo) as they become available.
. On Wednesday, August 18, 1993, the cities of Oceanside and Escondido will be
considering whether or not to join the Interim Commission. Attached for Council
information is a copy of the Escondido staff report which summarizes the issues and
risks from their perspective.
Deputy City Manager George Kremp] and I have set up a series of meetings over the next week
with representatives of some of the various solid waste disposal technologies available. The
purpose of these meetings is to get an education about these technologies so that we can better
address the alternative courses of action for Chula Vista.
We will keep you apprised of any new developments.
(waste817)
Jc2 /-1 - i
,
.
MURRY.L CABLE
Director
YICKI L. WILSON
Assistant Director
INTEGRATED WASTE MANAGEMENT DEPARTMENT
1200 N. Main Street. Suite 201
Santa Ana. California 92701
(714) 568-4160
FAX (714) 834-0754
July 1, 1993
To Whom it May Concern:
The County of Orange Integrated Waste Management Department is requesting proposals to
accept Non-County Waste at Orange County landfills from surrounding jurisdictions.
The County of Orange currently has a code prohibiting the disposal of waste originating outside
of Orange County. If the code is changed to allow for acceptance of Non-County Waste at
County landfills, responsive proposals will be rated and used to award contracts.
To be considered responsive, bidders must bid in accordance with the requirements, terms, and
conditions as described and set forth in the attached Draft Request for Proposal and its
amendments, (if any).
The Request for Proposal is set out in the following format:
Section I
Section II
Section ill
Section IV
Section V
Attachments
- General Information
- Proposal Submittal
- Proposal Format
- Selection Procedure and Criteria
- Time Schedule
The iiI'St step in the process is to review the proposal and make any comments on it by July
19, 1993, completed proposals are then due by 4:00 p.m. on August 23, 1993. See complete
instructions in Section n.
If you need any further information or assistance please contact Rochelle Carpenter at (714) 568-
4883, or Mark Leets at (714) 568-4893.
Sincerely,
~~
Director
ft
'-I "'"'-..-.-s_
J;</J-~
"'
DRAFT
REQUEST FOR PROPOSAL
FOR
DISPOSAL OF NON-COUNTY WASTE
INTEGRATED WASTE MANAGEMENT DEPARTMENT
1200 N. Main Street, Suite 201
Santa Ana, California 92701
Refer any questions on this proposal to either Mark !.eets at (714) 568-4893, or Rochelle
Carpenter at (714) 568-4883.
Submit written comments by July 19. 1993 to Sharon O. Lightholder at the above address.
Submit completed proposal by 4:000m. Au!!ust 23. 1993 to Sharon O. Lightholder at the above
address. .
Issued: July I. 1993
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DRAFI' REQUEST FOR PROPOSAL
FOR DISPOSAL OF NON-COUNTY WASTE
SUBJECT: The Integrated Waste Management Department oCthe County oC Orange seeks
proposals Crom solid waste haulers interested in the receipt oC Jandf"ill disposal services at
Orange County Jandf"ills, in order to dispose oC Non-County Waste.
I. GENERAL INFORMA nON
A. BACKGROUND
In an effort to stabilize gate fees required to be charged to generators of solid
waste within the County, the Orange County Integrated Waste Management
Department is exploring alternative revenue generating methods. One potential
method to accomplish this is the acceptance of waste generated outside of the
County ("Non-County Waste") in Orange County landfills.
Currently, the Orange County Code for Sewage and Solid Waste Disposal
prohibits the disposal of Non-County Waste at any County disposal facility.
Therefore, any receipt of Non-County Waste as contemplated by this RFP will
be contingent on an amendment to the County Code allowing for such receipt.
The County has no obligation to adopt such an amendment.
This request for proposal will initially be used to assist the County of Orange in
evaluating the interest of generators and haulers of Non-County Waste, as well
as the impact and economic implications of accepting Non-County Waste from
neighboring jurisdictions to Orange Cotinty landfills. Respondents will have an
opportunity to comment on this draft. If, in the judgement of the County,
comments disclose the need to modify this draft it will be modified and the time
to respond extended. If there are no required modifications, this document shall
constitute the final request for proposal and responses shall be due on the date and
time identified in Section V.
If the analysis of the responses to this request for proposal demonstrates that the
economic advantage of acceptance of Non-County Waste is significant and the
environmental impact is minimal, the County Code may be changed to allow the
acceptance of Non-County Waste. If the County Code is modified to allow
acceptance of Non-County Waste, responsive proposals will then be rated and
used to award contracts, subject to the provisions in this document.
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B. PROJECT DESCRIPTION
As described in further detail herein, Orange County is' considering the
acceptance of up to a total of 5,000 tons of Non-County Waste per day for a five-
year period. Any acceptance of Non-County Waste must remain within all
permitted landfill uses and allow adequate planning for Orange County and
neighboring jurisdictions.
While the County initially intends to accept a maximum of 5,000 tons per day of
waste generated outside of the County, the County may increase such amount
from time to time. In the event of such increases, when determining the
disposition of any such increased capacity, the County may (but is not required
to) give a preference to haulers whose proposals are selected pursuant to this
document and are then currently delivering Non-County Waste to County
landfills.
Current projections indicate that the Non-County Waste, together with the waste
expected to be generated in the County over the next five years, would
approximate the pre-recessionarytonnage experienced in FY 1987-88, and
therefore this project would not exceed current permitted daily capacities.
Orange County will accept Non-County Waste (up to specified amounts) delivered
by solid waste haulers for an agreed upon per ton fee, during the five year period
beginning on January 1, 1994. During the five year period, the base tonnage
which is initially agreed upon with particular haulers may be increased (if added
tonnage capacity is offered, and approval obtained) at a rate agreed upon at that
time.
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The proposal(s) which, in the sole discretion of the County. are in the best
interests of the County in light of all the selection criteria specified herein may
be awarded the contract.
To mitigate the impact of added traffic, only the use of transfer trucks will be
accepted. The delivery hours for Non-County Waste haulers will be limited to
non-peak traffic periods, and times not fully utilized by local haulers. The
County currently estimates the delivery hours which will be available for haulers . >
of Non-County Waste to be between 11 :OOam and 1 :OOpm; however, the County-
may change these times or redirect haulers to other landfills if necessary to -'
improve traffic flow. Staffing will be adjusted to avoid excessive waiting time
for solid waste haulers. However, local waste haulers may benefit by shorter
waiting times than haulers delivering Non-County Waste.
2
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In order to be responsive, a proposal must specify a per ton rate at least equal to
$33.00. A portion of this fee representing operational costs will be paid to
Integrated Waste Management Enterprise Fund and the remainder, representing
a "host fee" will be paid to the County in consideration for modifying the current
County Code that prohibits disposal of out-of-county waste in Orange County
landfills and other impacts and costs to the County.
C. TERMS AND CONDmONS /v',<
The County and solid waste hauler will establish the annual minimum amount of
toMage to be delivered by each hauler and received by the County during the
contract period. The acceptable amounts of tonnage may be adjusted by mutual
agreement annually in response to regulatory changes and the projected capacity
requirements of Orange County waste generators,
Any hauler which delivers Non-County Waste into the County will be required
to enter into a Disposal of Non-County Waste Agreement with the County. This
Agreement will delineate the various rights and responsibilities of the selected
hauler. Attachment C contains a summary of several significant provisions which
the County intends to include in the Agreements.
Orange County will record and provide data of tonnage disposed to the generating
jurisdiction and the California Integrated Waste Management Board (CIWMB) in
compliance with state regulations. Non-County Waste shall not count as Orange
County generated waste in disposal based reporting.
All Non-County Waste delivered by haulers will be subject to a load check
program which inspects solid waste loads for hazardous or unacceptable waste.
The County shall have the right to refuse Non-County Waste if the waste is found
to contain hazardous, medical, sewage sludge, or waste from a non-approved
source or any waste not accepted at Class III Sanitary Landmls. Additionally,
the Non-County Waste must not exceed the agreed upon tonnage, must be
processed by a permitted transfer station or materials recovery facility ,
substantially free of recyclables, delivered by the contracted hauler, delivered
during the approved delivery hours and in compliance with any applicable law,
permit or regulation. Violation of any of these terms may result in termination
of the Agreement.
The County will not accept loads designated as "hard-to-handle" (any item which,
due to its size, weight or other physical characteristic, requires special handling
or presents a safety or operations problem), or any loads containing tires.
3
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If any hauler of Non-County Waste is required by the terms of any permit,
license, or other applicable document to deliver waste which it hauls to a specific
disposal location, then that hauler must obtain approval from the local governing
jurisdiction before delivering such waste to the County, and shall include evidence
of such approval with its proposal. .
The successful respondent(s) will be required to post a deposit equal to 25% of
the guaranteed annual deliveries times the tipping fee. They will be billed
monthly for actual tonnage delivered. The deposit must be made in cash, letter
of credit, performance bond (payable to the County), or other instrument
acceptable to the County in its discretion. If actual billings are under the
guaranteed minimum, the remainder will be billed within 60 days of the end of
the quarter.
n. PROPOSAL SUBMITTAL
The IWMD must receive the proposal package no later than 4:00pm on Monday, August
23, 1993 (closing date). The proposal enve1opelbox must be clearly marked "Proposal:
Disposal of Non-County Waste" and addressed to:
County of Orange
Integrated Waste Management Department
1200 North Main Street, Suite 201
Santa Ana, CA 92701
ATTENTION: Sharon O. Lightholder, Manager of Management Services
Ten (10) copies of the proposal are required.
All proposals must use the attached "Proposal Summary Sheet" Attachment B as the first'
page of the proposal.
Proposals received after the closing date will not be considered. A proposal may be
amended or withdrawn before the closing date if the amendment or request to withdraw
is received before the closing date. Withdrawn proposals will not be considered and will
be made available for pick up by the submitter after the closing date.
Respondents have an opportunity to submit written input regarding any element of this
RFP. The IWMD may elect to amend this RFP (see schedule Section V) based on the
comments received.
4
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All proposals will become the property of the County of Orange on the closing date.
Any proposal which is incomplete, illegible, or unclear may be rejected. All alterations
must be signed and dated by the respondent. The County reserves the right to waive
irregularities in proposals, to reject all proposals, and to negotiate with any proposer.
The County will not be responsible for the cost of the preparation of the proposal or any
other cost related to the preparation or submission of the proposal, or any added
provision of information which may be needed for the County's evaluation of the
proposal.
Proposals remain valid for a minimum of 180 days after the closing date.
ill. PROPOSAL FORMAT
A. GENERAL, BACKGROUND AND QUALIFICATION DATA
Proposals shall contain the following (Attach information to Attachment B):
1. Proposal Summary Sheet (Attachment B), containing the essential information
as to site, cost and tonnage.
2. A brief history of the solid waste hauler, its legal status (partnership,
coIpOration, governmental entity, etc.), and date of formation if non-
governmental. If the bid involves multiple agencies/finns, explain the
operating relationship.
3. A history of performance and audited fmancial statement to
demonstrate that operation for the five year contract period is possible.
4. A copy of:
a) Operating licenses/permits
b) Franchise Agreement
c) Include copies of permit violation notifications received in the last three
years, if any.
5. Proof of workers' compensation and general liability coverage in the amount
of $1,000,000.
6. A description of the organization and the manager of the contract, if awarded.
Also, identify other key personnel in your agency.
7. At least three references who are familiar with your performance in waste
delivery and fiscal responsiveness.
5
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8. . A resolution or letter of approval from the city or county generating the
waste or its solid waste director, authorizing the removal of waste from
the jurisdiction (if legally necessary).
B. REQUIREMENTS
Responding solid waste haulers must include complete answers to the following
questions in their proposals (Attach responses to Attachment B):
*
Where are the transfer stations located from which out-of-county refuse
will be collected for deposit in Orange County landfills?
*
Which landfill do you presently use to deposit refuse?
*
What is the average trip length, and capacity per truck (type and weight),
to the landfill you currently use?
*
How many extra or fewer trips and over which roadways will you need
to take to accomplish diversion to Orange County landfills?
Additionally, haulers must provide complete detail regarding the following issues
(Attach responses to Attachment B):
*
Tune period you propose to deliver waste (between l1:ooam and 1:00pm /'
will be given preference).
*
Amount of average daily tonnage to be delivered (actual daily deliveries
may range between 80%-120% of the bid amount and the monthly average
should be within 95%-105% of it).
*
Fee per ton (minimum $33.00).
*
Minimum annual guaranteed payment (average daily tonnage x proposed
fee) to be paid monthly for actual tonnage; amounts under tonnage bid
will be billed quarterly.
*
Specific Orange County landf"ill destination you propose to use.
*
Number of daily truck trips, miles driven, and routes to be used in order
to deposit waste in Orange County.
*
Describe the process by which recyclable materials have been removed
(curbside, source, Materials Recovery Facility, etc.)
6
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* Describe the materials removed for recycling (metals, plastic, paper,
wood, green waste, etc.)
* The name of the municipality(s) city(s) or county unincorporated area
generating the municipal solid waste which is being disposed.
IV. SELECTION PROCEDURE AND CRITERIA
All proposals received by the closing date will be preliminarily reviewed for
completeness and responsiveness. Then, all complete and responsive bids will be
evaluated in accordance with the following evaluation criteria:
Bid Amount: The per ton amount bid by each proposer will be considered. Bid amounts
may be considered on a landfill by landfill basis. That is to say, proposers will be
required to identify the specific landfill within the County to which they are proposing
to bring Non-County Waste. The County may then compare any particular proposal with .
the other proposals for the same landfill. Alternatively, the County may request
proposers to provide revised bids for landfills other than that contained in the proposer's
initial bid. In any event, WHILE THE PER TON BID AMOUNT WILL BE A
SIGNIFICANT FACTOR IN THE COUNTY'S EVALUATION OF PROPOSALS,
IDGHEST PER TON BID AMOUNT WILL NOT NECESSARILY BE
DETERMINATIVE. SELECTION WILL BE BASED ON THE COUNTY'S
DETERMINATION OF THE PROPOSAL(S) THAT ARE IN THE BEST INTERESTS
OF THE COUNTY, TAKING INTO ACCOUNT ALL OF THE FACTORS
IDENTIFIED HEREIN.
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Tonnal!e: The amount of tonnage proposed to be delivered will be considered.
Credit Strenl!th: The County will evaluate the credit of each proposer in light of the
amount of Non-County Waste proposed to be delivered and the bid tipping fee.
Prior Environmental COmpliance History: The County will evaluate the record of the
proposer in complying with applicable environmental and other laws and regulations.
Qperatinl! History: The County will consider the prior operating history of the proposer,
including the references provided by the proposer as well as any other information
relating to the proposer that the County deems relevant.
Mitit!ation Analysis: The County will compare the environmental impacts of the delivery
to the County of the particular Non-County Waste proposed to be delivered against the
environmental impacts associated with the current delivery and disposal arrangements
relating to such waste.
7
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The delivery of waste to Orange County landfills must be accomplished in a manner
which has minimal impact on the environment and the quality of life. In an effort to
achieve this, the proposed delivery method impact must approximate or be less than the
current impact. t...: 'C'" " ';,;.e':::ir--
The County of Orange reserves the right to confirm and verify the information provided
by the respondent. Further documentation from respondent may be required.
Those respondents who are awarded a contract must agree to continue to operate in the
manner described in the proposal. Any proposed change in transportation distance, route .,'
or other operational practices must be approved by the County of Orange in writing
before being adopted. Any substantive changes, including changes which result in
additional impacts on Orange County communities, will require the approval of the
Orange County Board of Supervisors as a contract amendment.
Delivery Vehicles: The County will evaluate the capacity, age and condition of the
delivery vehicles (transfer trucks) proposed to be used.
County staff will evaluate the proposals and develop a short list of potential bidders.
That short list will be evaluated further including additional interviews and inquiries
before submitting a slate of recommended Disposer(s) of Non-County Waste to the Board
of Supervisors for selection.
If after a reasonable amount of time, a contract cannot be negotiated between the selected
solid waste hauler and the County, negotiations may be terminated and the County may
initiate negotiations with alternate solid waste haulers. .
. ~ - .... -
The County reserves the right to-alter the selection procedure. The County also reserves
the right to reject any and all proposals and award no contract and/or to modify proposals
through contract negotiation.
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V. TIME SCHEDULE
1. July 1. 1993, Draft Request for Proposal issued to solid waste haulers in
neighboring counties.
2. July 19. 1993, Deadline for CommentslInput on RFP.
3. July 26. 1993, Addendum to Request for Proposal issued (if necessary).
4. AUl!Ust 23. 1993,4:00 p.m. Request for Proposal submittal deadline.
5. Sf:Ptember. 1993, report fact finding to Waste Management Commission.
6. November. 1993, Board of Supervisors may consider amending County Code to
permit Disposal of Non-County Waste.
7. November 1993, recommended bidder(s) may be presented to the Board of
Supervisors for contract negotiation. (If policy on waste is amended).
8. January 1. 1994, Disposal of Non-County Waste begins on contract approval.
9
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. ATTACHMENT A
LANDFilL LOCATIONS AND OPERATING HOURS
Frank R. Bowerman Landfill
11002 Bee Canyon Road
Irvine, CA 92718
Prima Deshecha Landfill
Ortega Highway at La Pata Avenue
San Juan Capistrano, CA 92675
Olinda, Olinda Alpha Landfill
1942 Valencia Avenue
Brea, CA 92621
Santiago Landfill
2503 Santiago Canyon Road
Orange, CA 92669
Landfill
Qperatint! Hours
Recommended
Deliverv Hours
Daily Tonnage for Bid
Currently Available
Frank R. Bowerman 7:00am-5:00pm
Mon - Sat
11:00am-1:00pm*
500
Prima Deshecha
7:00am-5:00pm
Mon - Fri
7:00am-4:00pm
Saturday
11:00am-1:00pm*
2,500
Brea Olinda
6: OOam-4:OOpm
Mon - Sat
1l:OOam-1:00pm*
2,000
Santiago
(not currently available for Disposal of Non-County Waste)
* The County reserves the right to adjust these times or redirect haulers to alternate landfills
within Orange County.
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ATTACHMENT B
PROPOSAL: TRANSMITfAL SHEET
ACCEPTANCE OF NON-COUNTY WASTE
(SUBMIT ONE PER SITE IF MULTIPLE SITES ARE PROPOSED FOR USE)
SUB:MUU:ill BY:
CONTACT PERSON:
PHONE:
PROPOSAL SUMMARY:
DESIGNATED COUNTY LANDFILL:
NUMBER OF DAILY DELIVERIES:
HOURS OF DELIVERY:
SOURCE(S) OF WASTE (CITYIUNINCORPORATED AREA OF COUNTY)
TOTAL DAILY TONNAGE (Maximum 5,000):
PER TON FEE (Minimum bid $33.(0):
ANNUAL GUARANTEED PAYMENT (TOTAL TONNAGE x BID FEE):
I certify that this agency/firm is willing and able to perform, to make the necessary deposit of
funds, has the legal right to deliver solid waste to the Orange County facility, or will take the
legal steps necessary to secure the legal right to deliver waste to this facility, and that I am
authorized to submit this bid for the agency/firm.
SIGNED:
TITLE:
DATE:
(Authorized signature and title)
PRINT:
NAME:
TITLE:
ATTACH ANSWERS TO ALL QUESTIONS CONTAINED ON PAGES 5,6, & 7.
11
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A'ITACHMENT C
MAJOR AGREEMENT PROVISIONS FOR
DISPOSAL OF NON-COUNTY WASTE
Following is a brief description of several significant provisions which the County intends to
include in the Disposal of Non-County Waste Agreements which may be entered into between
the County and the selected haulers. This list is not intended to represent all of the provisions
to be included in the Agreements, and the County reserves the right to include any additional
provisions which it deems necessary or desirable. However; by responding to this RFP, the
respondent acknowledges that it has prepared its bid in light of these contractual requirements,
and agrees to be bound by the provisions identified herein.
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Put-or-Pay Obligation of Hauler: The Agreement will delineate the Guaranteed Annual
Tonnage for each hauler. The hauler will be required to pay the applicable tipping fee
for an amount of waste equal to the Guaranteed Annual Tonnage in each year, whether
or not the hauler actually delivers waste in such amounts. Failure to deliver any waste
for one month or more is a material breach. Failure to produce the full amount monthly
will prompt a quarterly billing in the amount of the agreed to but undelivered waste.
Origin oC Waste Being Delivered: The Agreement will specify the jurisdictions from
which the hauler may deliver Non-County Waste to the County. The hauler may not
deliver waste from other jurisdictions, and may not commingle waste from approved
jurisdictions with waste from other jurisdictions. -
Term of Agreement: The Agreement will provide for a delivery period of five years,
commencing an January 1, 1994, upon the approval of the Orange County Board of
Supervisors.
Per Ton Tipping Fee: The Agreement will specify a per ton Tipping Fee, which will
include the "host fee" , that will be applicable for the delivery of waste by each particular
hauler. The County reserves the right to set different Tipping Fees for particular haulers
and/or particular landfills within the County, based on the results of this procurement.
Indemnification: Each hauler will be required to provide the County with the following
-indemnification:
The hauler agrees that it will protect, indemnify and hold harmless the County of
Orange and its representatives, officers, employees and subcontractors, the Waste
Management Commission, and the Cities within Orange County that are
delivering waste to the system from and against, and pay the full amount of, all
liabilities, actions, damages, claims, demands, judgements, losses, costs,
expenses, or suits and reasonable attorneys' fees, including any of the foregoing
under the Comprehensive Environmental Responsibility Compensation and
12
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Liability Act, 42 U.S.C.A. Section 9601 et seq. (collectively, "Loss-and-
Expenses"), and will defend the County Indemnified Parties in any suit, including
appeals, for personal injury to, or death of, any person, or loss or damage to
property arising out of (1) the negligence of the Hauler or any of its officers,
members, employees, agents, representatives or subcontractors in connection With
its obligations or rights under this Agreement, (2) any breach by the Hauler under
this Agreement, (3) delivery by the Hauler of unacceptable, hazardous or other
waste to the County landfills which is not permitted by the terms of the
Agreement, or (4) any loss or expense' of any kind or nature incurred by the
County arising out of or from entering into this agreement.
TerminatioD; Damages: The County shall have the right to terminate the Agreement
due to the breach by the hauler of its obligations thereunder. In the event of such
termination, the hauler will be required to pay the County damages equal to the
difference between (a) what the County would have received had the hauler performed
its obligations under the Agreement and (b) what the County actually received. The
hauler acknowledges that the selection of any particular hauler for acceptance of Non-
County Waste was based on several factors as detailed herein, and that the County will
not have any obligation to mitigate any damages incurred as a result of hauler
nonperformance unless such mitigation is consistent with the requirements of this RFP
and would not result in any environmental impacts in excess of those resulting from the
delivery of waste, including engineering, legal and other consultant costs, as well as any
other costs incurred by the County as a result of such breach.
If required, although not expected, due to an increase in the waste disposal needs of the
waste generators in Orange County, the County shall have the right to convenient
termination of this Agreement for any reason whatsoever, irrespective of breach. This
right is not available in the first year of the Agreement. If exercised in subsequent years,
the hauler shall be given 90 days written notice and paid a convenient termination fee
equal to an agreed upon number of months of disposal fees according to the following
schedule (as negotiated):
Agreement year 2 = _ months of disposal fees
Agreement year 3 = _ months of disposal fees
Agreement year 4 = _ months of disposal fees
Agreement year 5 = _ months of disposal fees
This payment shall be the sole and exclusive remedy for any damages incurred by Hauler
as a result of this convenient termination.
Assignment: The Agreement may not be assigned without the prior written consent of
the County.
13
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CompliaJice With Applicable Law: The Hauler shall be required to comply with
applicable law at all times throughout the term of the Agreement, and shall obtain and
maintain any permits, licenses or approvals which are required thereunder for the
performance by the Haulers of its obligations under the Agreement.
Reliability or Waste Supply: The hauler must demonstrate the stability of the waste
supply to insure delivery for the term of the Agreement.
Compatibility with the Goals or the Generating Community: The actions of the
hauler in entering into this Agreement must be compatible with the goals, policies and
agreements with the communities generating the waste which is to be accepted in County
landfills.
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Quality or Waste: The County will accept residential, commercial, industrial,
construction, and demolition waste. All waste must comply with acceptable standards
for deposit at a Class m Sanitary Landfill.
The County will not accept hard to handle materials, white waste, tires, medical or
hazardous waste or waste from a non-approved source under this Agreement. .
Exclusion or Recyclable Materials: The County expects each proposal to state the
method and recyclable materials which are excluded from the waste stream currently and
during the term of the Agreement. Further reductions from the waste stream of
recyclable materials will be acceptable, and compliance with the stated plan will be
expected.
Risk or Uncontrollable Circumstances: The County will not excuse performance for
strike, labor actions, changes in law, or casualty as performance is either the payment
for actual tonnage delivered under the Agreement or payment of the agreed to monthly
tonnage. Each Party will excuse performance by the other in the event of a casualty at
a County landfill or change in law which prevents delivery of solid waste by a willing
Hauler to any landfill in the County system or prevents the County from operating its
landfills or otherwise prevents County from accepting waste from a willing Hauler.
LandnIl Designation: The County reserves the right to designate the landfill in the
Agreement as the primary point of deposit but to redirect the hauler to any landfill in the"-
Colinty system. The County reserves the right to designate the landfill in the Agreement '
as the primary point of deposit but to redirect the Hauler to any landfill in the County J
system. Any planned redirection will be effective after 90 days written notice to the
Hauler. Emergency circumstance may require redirection on a temporary daily basis
without prior notice.
14
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Hauler;s Responsibility: The hauler bears all costs of collection, transfer, processing,
transportation and delivery of the waste to the landfill, not subject to any offset or
reduction for changes in designated landfill or other operating system changes. The
hauler will pay all taxes and impositions assessed by any governmental body which are
related to this agreement.
15
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County of Orange
SANITARY LANDFILL Integrated Waste Management Department
TITLE SHEET 1200 N. Man Slite 201
. Santa Ana. Ca, 92701
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Assistant Director
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July 28, 1993
INTEGRATED WASTE MANAGEMENT DEPARTMENT
1200 N. Main Street. Suite 201
Santa Ana. California 92701
(714) 568-4160
FAX (714) 834-0754
TO .~VHOM IT MAY CONCERN:
The County of Orange sent you a draft Request for Proposal ("RFP") to accept Non-County
Waste at Orange County landfills on July 1, 1993. As the initial element of the process,
comments and suggestions for clarification or amendment of the draft were requested. Those
responses received during the comment period have been reviewed and the following areas of
clarification are offered to assist in responding to the RFP.
All responses to the initial draft will be considered. Although a new draft will not be issued, the
following clarifications may assist you in drafting a proposal for consideration. The initially
published schedule remains unchanged, and proposals are due by 4:00 p.m on August 23, 1993.
ITEMS OBJECTED TO BY COMMENTORS:
Generally, each party providing comments objected to one or more particular provisions stated
in the RFP. The County will allow proposers to suggest changes to those provisions. In the
event a proposer objects to a provision contained in the RFP, the proposer should clearly state
the objection in the proposal, and provide specific language which is satisfactory to the proposer.
While it is the County's intention to give a preference to those proposals which most closely
adhere to the RFP requirements relating to contractual provisions, the County reserves the right
to accept proposals which differ from the contractual terms of the RFP.
The commenting parties' suggestions included the following.
. Less stringent indemnification provisions;
. Greater specifications regarding the County's load check requirements;
. An option to use curbside separation and waste disposal vehicles during a transition
period;
. More specification as to County's position on "hard-to-handle" materials and greater
development of procedures to be used in the presence of such materials;
o-~-- /';4/~?
IWMD/SOL:bwI8764
.
Specification of the methods by which point of origin reponing and' fee assessment are
to be accomplished if in-county and out-of-county waste are mixed in one delivery;
Lower termination damages and provision for nonce for convenient termination.
.
Because the County recognizes that the ultimate determination of these matters may result in
changes to the bid amount, the County also reserves the right to negotiate the per ton tipping fee
depending on the resolution of these and other matters.
CHANGES:
The following matters have been changed to allow greater latitude in the submission of the
proposals:
. The contracted-for tonnage should be stated as a minimum which is guaranteed and
subject to the "put-or-pay" condition. Please note, however, that added tonnage up to an
additional 10% may be delivered at the agreed-upon tipping fee;
. Failure to deliver the agreed-upon tonnage will be determined, for purposes of the "pUt-
or-pay" condition, on a quarterly, rather than monthly, basis;
. Designation of a primary landfill for disposal is allowed;
. The County will allow some flexibility in the delivery time, but the County would prefer
deliveries to be made between 11 a.m. and 1 p.m.;
. In the event of a non-emergency redirection of waste to a secondary landfill, the County
will give 180 days' notice, rather than 90 days' notice, to the hauler. Also, in the event
of such a redirection, the County reserves the right to renegotiate the tipping fees;
. If a load of waste is rejected as containing objectionable material, the County reserves the
right to subsequently accept the load, if the objectionable material is promptly removed
and it can be shown that there is no threat of load contamination.
As a point of clarification, the County will accept bids from public agencies. in addition to bids
from haulers. Further, page 8, paragraph one, is clarified to define as "current impact" the traffic
and other environmental impacts which have previously been considered and approved.
Proposals will be measured against these standards as a pa...t of the review process by IWMD.
If you need further assistance or clarification, please call either Mark Leets at (714) 568-4893
or Rochelle Carpenter at (714) 568-4883.
Sincerely,
~l~
Director
IWMDISOL:bw/8764
);2/7/;27
oe.oe.e3 04'13 PM
P02
f,
, .
,
~
DRAFT COpy
1\n 1\ ~ CO'F1
1Jl\~~ 1
"
PrMIt;, ..... for tlellderbD O:.-...~.Iv ~
1. De...w..............p~~
:a. DetermlaeIllO far"pa)' u,wJO- .,~d1ainJ _If. oftbeta=lmQIWIIIllAt.
3. BUstIn& S)'IleII1 Oporadaaa
Review ofNCRRAPmjcct
'~ l..,,"fllI Ope:adao Reqaat for BidrJOgDU'ICt B~.tO" far Herms
CommIMlon SbIfl'IDa (leJll/lDaDlF:rlll ..
4. SyIICID 0pcntI0Dal1aael
Bquhy Issue
TAP/l'mnJIae GnDt PJOJIIID
CIcan \1p Bvc:at J ...."fI11 PuIlOl
HHW PIopm
S0U4 Wille JlecWl:y Fees
MtdIl'r1~ Peel
5. Pua= Syatcm PJamdD,
Other Disposal OptlOlll
AlIe1'D8lO Teclmol.oS)' ~jects . PIA, elC.
Capllal PI'oJecII
Syncm PinIDlllq
/ ;J, /! - .). '{"
06. 1"7. S~
12:6"7 PM
P32
.JEFlAY !:.MARMON
I\4AYOR
OMCClNftAPLAZA
IlI1 NClIIIII.......I.11 ..do
ClIIIfGmIf......
.1. "104110
Ql"1'2 OF e~(]Onl)Il)O
August 12, 1983
Fellow e1eeteCI ()IlIcIIIa:
As we ItNgglll with thIllllll'llPlellllOlkl wute eo'" ~ "" county and dIielI. we thoUght II would be
IleIp/ul to 8UII\lIl8IIZ8 for you th.e key facti and ClClIllI'IlItml the county h8B rlIIdI with regald to lhe
NeRRA pIOjett. The lolIlIwlllll II our IUIlUII8IY baled upon a revieW of the ~811 flnanclllll doCUmenlt.
lIIe County'I "Conunl Agreement" wlh NeRRA. the SelViClI AQreellWl1l, IIIlCIleldlCl cIaculI'lIII18.
Wh8lher you _ an Interim Wul' CommISSIon lI'ltIIlb8r or not, these CXlnml\m8ll\l win tlIecl you and
your olty, andlhey deHlVI your ooneIcIellllon.
IlaldrnllllJlld
The original NORRA praIeclI ...lor a 1850 rnIIIon cIoIar InclneratorJI8CYCIInG lIclIity Illlhe San Mlrooe
Landllll. UllgallOn 8Illlnlllhe project wu tied by --' NoM CouIllV clIIn II wen II by oUizen
groupt. UIllrnate\y. the IlIgation wu MllI8d by ibandoMIenl of the bU,,*. The County inlillted.
how8\llr, on pIOCHdlng wllh the rec;yeUng ponlon of the proJec:l.
~ ---vdlltlJ JIIfutlJlJ!f
The curren! MCYdlllD proIIlCt II an appradn1Ile $1<10 mIIon clol" projeCll to proCllI 561,000 tona per
yfII1. The ApprOlllm8la $140 mill"1OI\ dollar 00Il1nCludeG: 186 million capllaI, $16 mII1Cm deveI\4A.lllI1I
CIllIlS, $23 mllion caplt8IIzed operallonsldlbllllVlce lor 1 year: and $12 mollon lnI1IaI equity 00IlI. II will
eepel'lle IIIlCI recIIim reoyolablel and etnd the resldua for landlIl ~I. The court)' axpecI8 lie
1hredd11lll1o CftIIlI a 70.000 ton per Y8III' volume llIdI riWlln IIncl _ of the IICYCInlll'llllldua.
13,..,..,1It1J al'M ~.J1ItIJ ~
The originally JotclF awd IInancIIIlI W8I to be by Calfom\a Pollullon Control FlnanCInII AuIIIOrllY Ilond8
(CPCFA) GOIlIbIned wMh pr1v1118 nna~ ThIll pnljaoI W8I dIIermined to be unfinanclltl\8ln lhe maIIc8I
pIIo8, 10 the CouIllV madelhe toIoldlO addItlonll commIImeru III the"'" OIlht U/IdIIIII.hiS:
1. The County oreeled a separalelund In the SaIIcI Wute EnterprIn Fund (SWEF) tar NORRA
(Ncrlh County RII8IV8 Aecount) wllh aliunde lIIenlIn l'lIlI8rved axcMIYeIy for NORRA.
2. The CclunlY II ftlqUlred 10 dIpOIll $10 mIUon clo.... k1Iolht Ncrlh CountY R8IIIV8 AecoUIIlII of
Mlrch S1. 1l1l14.
a The County must "CXlnIrol" IllIaaet 300,000 tClII8 of W8Ibt by March 81, 1984. H nol, lhe Count)lll
In brellQh of III NeRRA oomn.nmentlln whicl\ 8YII'l1l1l1Ull pay NORM alleeoured amounts
and the llIllera of GI'lICft ~ the projecl_ eance\lId. "Con\lI)I" It defkled II CXlnl1'Ol by
ardnanoe IS to urinCO."",1leCI1I'8lI wille and" alanCl wm low CXlI1IIoIagreamerl (minimum
18I'I115,em) II \0 oily wl8lt.
JERRY C. HAAtoAON. MAYOR SID HOLUNS. MAV~ PRO TSA a~ c. CAMEFlON AICHAAD.... FOSTER LORI >-IOL T Pt=EILSl'I
, Prl...-.d on AeoyatecJ P-u-'
/c2/j/21
06. 1'7.93
12:5'7 PM
P33
4. The Ooumy IIlUIt "oonIro1" at leIS! 600.000 tonI 01 wute In any year (by OIdnance andlor by
mlnlnun 15 year !low lIlIleernent) or be required to depoeft an adcIlllonaI $5 mlllon In to the North
Coull\)' A.elVe Aeclount for eech IUCh year, llIbject to a ceDillO oIl2llll'lillOn cIaIIarI and
complex bmllu ~ the 8Il8Ill arRI8I depOIft required.
IS. U the Cclunty "001 III 011" more1hen 1.2 mIIIon tons 01 waste In any year, for that ,ear the County
18 rIlkMld fRlm lh.IoJ'tClOlnlll8llulremenle-no eeparate funclll'lCl no separate cIeposI1s.
8. AD 01 these provisions Il8lntendlld 10 back up the County's "put or W a.n.,'b lIent to the
proJec:t. Le.. the CoiIIl\)' nuat PlY 1'8lYIoe tee to NCRRA tor a minllTLlm delht81')' to thelacl1lty of
350.000 llll'lI per year, """"'h... M not 111M manv In". a.. dlllivAll!ld TIlt County Is aI80 IlIqUlrecl
to have 105 percent 01 the project eelVlce leG on hand at aD UIYlllI.
Then provisions _1n8l8tlld upOn by the uncIsrwriting barN 10 make the prv(ect "tlnanCIbIe" and the
. COUntY agl8lld. These l8Qull8mt1l'1t8 P_ a Ilgnllcant financial obligation on the Solid Wille SYIlem;
eomeolthe I~ oItht8e~ III:
1. Exact 1lgul'88 for the cunei'll LrinoOr'POr8l8d, North County waatelll8lm 118 not available. A
l'luonllble eatlmatelllbout 200.000 IOns per year. Thul, the Counly'l unlrlCOlporatlCl North
County IIaw aD cannot meeI the minimum conunilmtnl to NCRRA.
. 2. Transport 01 County. unincorporated flow fJum EB8l/SouIIl CourCy to NCRRA to meet the
minimum comm1lmem may be poIItlle. but WIlUId violate Qlr/8nt BoaJd olSupII\IIlO1II policy
_net lIUCh transf8l8.
3. To reach "w. to....- of 800.000 tDn8 to aYOld the lIllIlll deposftl to the NCRRA 1ClCOUi'll tll8 County
needs flow commHmentl fRlm the dllee. Norlh County tCltal flow, from oilil8.. willIS the
unlncolllOf8llld 8/lII, 18 about 100.000 klnI.
4. To reactllhe ".. fnIe" point fRlm the lnanelal eel uide I8qUllllmIntllor NCRRA the County
must "woob<ll" 1.2 rnIlUIIn tons of wilt.. To lIIIIl this talQlll the coullly wlI need d. or newly ai,
oUIle cItlH' floW.
5. TIle County syatern'11b1lty to talInta colqllltblon for flow llllmlled alno8 the County I)'8tIm
IlHds iar;e amoun18 of flaw to meells NCRRA convnIIlTMlIll8. ThIs Ql:lIIId. 8lCpIaIn. at IeIIst In
perl, why the County lla8 acloptlld a poley IIllU1ll prIva\e 1ancIIIIa; ancl why It Ie liIigat1na
(presumably at 1118 expense 01 the SWEF) to 8lcp the ~ Iadl on grvund water lIBuea
even thOUgh this will be a new. rural. "1lIaI8 ollhe arr.1IDIIli landIIII. Convereely, the County nas
puched ahtad 10 8llJ)IIlll1ll faclllty 81 San MarcolIIn spl. of grgund wlter concems ancI1he fact
thlt the 8M MlJ'C08laclllty II Old and unlInlId. Certainly. the 0DUl'IttI flow commttrnenIB to
NCRRA are, at I8Mt In p8I'l. a l'8I8OII why the County Ie puahlnO 80 hard lor !low ~
IIlIr&8IlllIn18 and Jl<<lP08Ina to penalize thllu who do not cornmil.
8. The NCAAA commlmenaslII I Ilgnlllcam portlon 01 tha IllIrrenI $C3 ~na fee-per Emit and
Young about 36 percent. TtQ NORRA coat wi! need to be COI/IIIlId by the County lyal8m no
. matter what alIemative1 H pursu.. in the future unteea 80l'Il8 changB can be BChIeved In the
agreement This ProieCl. In Is IllIrrant Iorm, Ill8Y IIllIke It dlfftcull for the County 8Y8lem 10 offer
COlt co..lilive aIternaIiv8I incornpall8On to oIheroptlons not bu_8i by this COlt.
2
/:</9~3'(}
oe. 1'7.93
,
12:6'7 PM
P34
n.""".aIftn
AI upedI of our enlll8lOlld wute SYl\8m and lla uIIimat& long \81111 "beet pI8Illlcl8" 118 ~
ma\tI!I wlIh no clear _el8. 11le elements of the NCFIRA project weW descrIlIId .,. ruI and IlUIt
be fully ullClel'8lOOd 111he ComrnInIan ~ b.... OOVell81Cll of the &yItem. Pilar to any ftnaI
__Ide dllCSlllnl on gO'IIll18IlOt. operatlonI. _III prOIecla or ftnanc*lg, lI\e CommlUIOtIIhouId
.......:
a).
b).
A thClIougIIlII1IIylls of the cost eIdvel'IeI8 of NCARA ccmparIng It to "i/IduItJy 1WId8rd"
w... proceuIng 1allI1IIIeI; al1d
EvUlallon 01 NORM IXIIt ellec:tNelll8l '*" to the traneportatlon acoI8lIlImI\aIlonS. 1he
~ hlltleclllle of lhlt S8n MaICQI LancIfiIl. and 1he 24 year operating agrHrnent: and
Full panlC~ by the CclmnU8lon in evaUdinQ the "'Lilla of the pIOjllct'1 "teet perIOd. . IInce
no Pftlieot 01 thit ecope eUd81Ol1ay; n
An anaIyIlI of the IICOIIOIIIIcl and poIlt1ce1 !rnpac;te of NCRM In I8la1Ion to tbe CUtl8nt rnandItllI'Y
recycI~ ordinance atl8allng lliIIII and W1I/lCOIporatId area I'IIIidMllI; and
FuR dIIo1D&L1rt oIlhe ~ of connot I11OdIIIcItklM8rmlnatlon to ~ tbe SWEF
finlnclal concItion; lncludlnO the lmpIIcalIans 01 the "sale" oIlhe tax crediIS 01 the bondl and \he
ulllmatelmPlId of such "l81e. on 1he nile paY.~ fee.
It It Imperallve that a thorough dialogue 8/lIClllG COIMUslon merdlers n non..1g1lldory 011.. take p/aOe
about the long term eyatllll-wldel~ oflhe NCRRA prolect. If our anaIyels and ueurnpUon8
cIeIottbed ebcw8 118 In anyway m......act. we weIcCIme
0).
ell.
e).
LorI HoII Pleller
CouncIl M.aer
1lC: cay 01 Ban Diego
OIly MalUllltratChlel Admlnllltnllive 01Iicler
SANDAG
Newe Mectla '
3
J..? /l-Y /
.~
~
r
y
484 1'01
OFFICE: OF THE:
CITY MANAGE;R
~
.
TIl:l.ll:PHONE
111191....'.17'11
August 13, 1993
CITY COUNCIL
CITY MANAGER
UNIVERSAL REFl1SB REMOVAL OF EL CAJON
SOLID WASTE DISPOSAL OPTIONS
Xn May of 1991 the city council voted to rescind the franchi.e
agreement with universal Refuse Removal and put the contract out
for bid. As several members ot the city council will recall, this
was not a unanimous decision. At the time, the matter was debated
rather extensive1y and, more than likely, we will not know the
final outcome of that decision until the bid process is completed
some time in 1995 or 1996.
TO,
FROM:
SUBJECT:
The proposal before you not only provides for disposal service, but
contrary to the 1991 decision, restores the exclusive franchise
aqreement with universal Refuse Removal for a period of ten years
without competitive bid. It also provides for an annual CPI
Cldjustment. It was, however, not clear if the annual adjustment
was applicable to the disposal portion only or the entire
aqreement. :If applied to the disposal portion only, utilizinq a
six percent averaqe annual increase in the CPI, the $45 per ton
proposal will, in five years, result in a $60 per tan rate, arid at
the end of the ten year period will be approximately $80 per ton.
As the City Council is obviously aware, refuse removal is a two-
part equation: removal and disposal. OVerall, 70% to 80t of the
casts to the consumer are oomprised of collection costs with the
reJl\8.ininq :aO' to 30\ attributable to tippinq or disposal fees.
Although the gap has recently narrowed, we expect that relationship
to continue into the foreseeable future. In actuality, the
proposal before you addresses only the illllllediate problem of
escalatinq tippinq fees. It does not address the conqerns
expressed by the majority of the city Council in 1991 which l.ed to
the .decision to rescind the franchise aqreement. As a result, we
do not believe it would be a prudent business decision for the city
to bind itself into a lonq-term contractual relationship in an
effort to influence 20% to 30% of the total casts.
200 EAST MAIN STREET . EL CAJON. CALIFORNIA 92020
J;) /? -J:J-
FU> 16 . 93 09: 18
Page 2
August 13, 1993
EL CAJIl-l CITY a..ERI<
484 Pm
The issue ~f refuse management is complex and does not lend itsalf
to quick. and easy solutions. Collection and dispoSal can pe
consolidated or dealt. with separately. At the present t1llle, the
collection portion of the equation 1s rather uncomplicated. Becauae
of the county's mismanagement of the solid Waate Division, disposal
optiona are not at all clearly defined. In addition, changing
t.echnology and other alternative so1utions outside of the county
system tend to further complicate the decision making prooess in
this area. The solution, therefore, requires a systematic approach
in whioh the number of varial3les are held to an absolute minimUlll.
Because of it's failure t.o attain that goal, the proposal petore
you, in my opinion, only serve. to further cloud the primary issue.
As a result, it is staff's opinion that the city should not accept
the Waste Management proposal at this t.1IIIe. Furthermore, it is
recommended that the City, 1) continue to seek. out reqiona1
solutions through the interim COJIIllissionr and 2) conourrently
investigate, other viable disposal alternatives, such as the" campo
Landfill as they pecome available.
Participation in the interim commi.s10n certainly involves some
r11lk and pOllllible rate exposure. In reality, however, increase. in
the tipping fee have very little impact upon the cons~r and do
not, in :my opinion, justifY the lonq-term obligation beinq
proposed. potential legal complications relative to CEQA, closinq
costs and existing indebtedness aay further support this
recommendation of non-acceptance. These issues will be addressed
Py the City Attorney.
ltespectfu1ly,
ROPert '1'. Acker
city Manager
ItTA/th
))/f/J}
06. 1"7.8:3
12::67 PM
P02:
CITY OF EscoNDIDO
,City Council
Apuda IIIlm No.: ~\
Date: ~ 18, 1993
TO: , Honarable Mayw. aDd MembeD of die Cit1 CoaDCll
nOM: llUlk ADdencm. Deputy Chy Manager
SUBJECT: Solid Wu. IIillel- OmlideruiOll of Reviled County Wide Panicipalion
ApIl~ '
R'RmMMENDA.TTO~: .
: .
no CoW1C:ll conaicIcr the 1-.1 D'I)Il' by the IDtcrim SaUd Waste rn,.".ml8lon and
provide direcdcm to the Itllff'repntiDa the foJlowiDa:
1. Omsidcr sipl1g the m1sed hni~on Agreen..utprior to the (Jf',<,lIne of
Auauat 27, 1993. .
"
. ~
2. Provide dircctioD to Bf.IIff ~ the prioritizalion of ilsues to be ~slclered by
, the Interim rnm...;..,00'l or the NOI;th County Solid. Waato A.r,r;rwy (JP A).
. .. ," .. .
3." Direct the Bf.IIff regarding pank~OI1o with Jitlpdon apiDst the County of San
Diego reprdifta the lOUd WIlle lIUrChIIrIe for llO;JI.sipatory c1tIe..
Should the Couucil approve ligulq of the Pardclpalioa Apemeat, Illlff will mum with
an IIpprop.;iate l'OIOludoli It the August 25, 1993 meeliDl-
. i..'. .
PREVIOUS AM'lO~: '
: ~'. ".
On lane 16, 1m.the CNnocn rejec:lIed the previous apellDlelU. On July 21, 1993 the
City CoImeilIdopted ReIo1woa ",,271 OW'hllchll1' ~c poIDtI for Rm"""""""t to
the propolltd Interim ApeemeDt. 'lbiI relOlutioD. WIll ~ with by eiPt other
.ties.' .
.... "
- .'
.
. GENERALPI.AN ANALY!ilI:
ReIouiee ~atkm Ii an ia..-la4t &OIl of the 0eIICIIIl PIau lIIId'tbe City's nlri_~
dPdJlon rePrdinJ n:cycllil, lIIId dMniOll of Waste will meet me CCIIIIerVIItiOD soaJs of
me Oeneral Plan. . .
,
/c2/J'J(
oa. 1'7.83
12::5'7 PM
P03
, )
,
"";lrAl. ANAI.V!\lT.
. ,-, .,,',
,_AI.... III:liaa III this dme to lip . pII1idpadon qrer-' cxJaJd IUUll.tn m-","
I01id WIlle 11p Feea. Bow..y", die Ja.t..~ n.-...;'Iioa hu IIIIds u'tca ..'....doD to
tho Board or SuporviBorJ thlIl tho Solid W.. SY*'D _0110 OD a"lla7 U )'01\ jo" ball
whk:b Is ....,pecred lD haeuo tbe Tip Fees to IJlIlIOldmIte17 S65 pili' IllII. ...jM....I..lIIh'l\y
tho IIDIe level or tho.~ OC)' 1(IllfCMd~J.
RAneGROIIN'Il.
The County nlCloest for pu:dctpatioD by dle Cit)' in the SolId Willi: Syatem eomlnues in
. aD IIeIII. of chlnpii paraIIIIteI'I. TIle PaniclpaIioD All' """'. 1bIt ~ CoWldl
leje=cl bu boon ~ by tho ~ of the IIltcdm I'WnmlHl_ in zdadon to cbo
IelOludOD of BacoDdldo IIId tho otIIcr eliJn Cl'f&ID81I1Cl11l-II\I"~ cIdes. Additioaally, a
ltp! ........~.... been 'on-Il-' to luempt to deIor1bo die ~lt of cbo
qr00lllCQl1l1 aD effort to I:pJIIIlII8 .......cau ~ by tho DiDo clly o-lltln'l. FiDally,
the de.....'''e for IiJIIiDI baa been ClIlll"diDCl to Aupst 2.7, 1993. In dIis report I will
provide !IPCCiftc back&roIIIIIl 00' cd o1ePlellt or !he decisioD ....Irl"l pJOCeIIlhat baa
oa'IlIl...d lI:I dauI. : .
. . .
PARTICIPATION AGREEMENT STATlIS:
,
Tho lnterl'1l ~lo.lnn ......oi"""lIIl die 1OClb-....~.G.t1Q1l1 of die DIDo aOi1-JipatoI'y
citl.ea tbJouJh their l'tIOludOn 1IIId.1Ollt JIClion lD ftlo.......~.d lD tIIc Bo8nI of SupervillOll
. that DO boDdecl debt be iuII04 witllaat a lKO"""endltl,. or tile JIIIdOrlty of tho clIliI .
~~ 111 the r..m.moolOll Tho Board of SuporviBorJ hu ICtecI 00 this
rec:ommen"RtlCII lIIIll aped bY mbmlll ICtlaa that _ woaJd DOl obllpte die flow
.......1I'lI1meIUI of tbe cidI8 without a -vmt)' aedoa of tho ('lrao-lo'll""
. .
III ftllpoftdb\j lD 1be sequestecl :oaadl.tioaI. cbo r..m.mool'3CI nfuecl to moctifY tho
qrccDlCIlt terms fo allow a olty to wltbdraw abouJd it diA&ree wish tbe Joag-teml
pmIIDCCl pmvlskmI devek1ped by Ibe n-rm..I.... Withdrawal \1JIdei tbe CIIl'JeDt
qreed)olll 1IInIII CIIl 0Dly occur 00 May 31, 1994 provkUD.a d!al the city doe. DOt ....
with the termS or the aovemance lid tbI1 DO debt bu been iUDDd QWpdq Ihat cll)"a
flow <<r...I.tllmeId. ~ fIlM..n....t 1 &6~ ... the Jepl opialoa of Oomuy Cor--llD4 the
Qty Atll.....e,' otPoway 1llIIIAI1bIt die c:lIy CIA wlrbdraw faIly 00 May 31. 1994.
" . 'I::~~ . ::\~ ;"'~:'" .. ,"
In I"~ acdaD. tile ()wRMI.'" ......'I'IH'IIIe1)' ret~..~.L~':'ed. . Do BoI1'd of
Supervisors that cbo eoavm,..;OIl .,.otIIe c1uriua ita intcdm life (~I......'tl)' 10
months) 00 a "pay. you 10- baIL 'I1IIa ~._.-ndRtlCII meaDllhat theJr intent 11110I
to JO iDIo debt duriJIs Ibis 1nIedm pedod aDd tbI1 the Tip Foe WODId 110 nIacd to III
appnWma1II S65 pili' tDIL PiDa11y, die ^-,...... 1IDe'J"I"" Ibe "pi". "'-""-10 lD
Augua 27. 1993 IIlowiDi III '" It.. ...at OIr-b.oit;y for Ilon oir~ ddCII to jola.1be
n..,,~1Ud0D' .
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NlNE CITY COALl'l1ON:
Ai ~d1 Mo-'-s wm nc:aJ1, I o.,lltiOll of DiDo cities hid Idoptcd I W''''''')II
IllIOlI11iaD (AlIlK'lo~ 2) _.11..... JIdorit1 isauea to b8 nnn.I"~ bJ the rNnml_sIoD
8Dd Ietliq fonh COIldiIions, DIOIt .,. ,lblly:
~ I. ,"" "
a.) A c:oncIidoD DOt a1lowJq """..I.... to 0IXlUJ' wllhout I ~~ VOID of the
~....;a.'OD.1Dd. . .' . :
~ A <!mldl1I.... aDowInJ cidas dIIIt don't 8Il= with the nlrim.... aoverna- to
wi1hclraw u IOOD u a tJllclP- is made CD sowmance rad1er dIaD waidIl8
undl May 31, 1994-
":~-: ::.:t~ :,~.\~ 0, '" 1.. ,',' .
The coalitielll ciiles made their ,..WioDs to dte nr.n...nuiOll which resulted iD dte
previous DlCDtiooecl ~-.pon .-. .
..... f.o' .
The ~u of m 0Q0a, CarlsbId, Imperial Beach, BllclDilu. Santee ud Visla have
qrccd to the tIDmI of. the Parti~ ApcmcnL CuaeIlf:l1 tba c:iIics of Owl. Vis....
Oc:e..../.... IIId E.o-Midc> have IICII: .......-..... to Ihc eareement. In Iddilion to the
poshiOll 1llbIa by: tba aiDe cillcl, 1Oar, otbcr ekics who bave OIipa1Iy alpcd the
Aple."..... have expmssecJ IIlppOrt far tba CODditioas In tba IQ)}LUlon. The c11ies of
Poway, Del Mar, Ccltomldo IIId SoJIq Belch s..1~ muoval of 1bc lufcharge ad
IIivocatecl for die CODdhionII ..1ft Jill d by 1bc citiet. tJlIfonuuatcly. ~oril)' of the
CommIssion Could not be CODYiIlced 10 ft((o. ...-1Id a cJiu.ge ill the withdrawal pIOYisioll
IS cIiscussccl earlier. With tho lICIkII of 1he aiDe cidcs thzoup the aeaolution ad Ihc
~t suppon from _ ......1-. of the Cqrnmlulnn. dae= is an op~lullit)' to
maintain a IlrOIli eoaJitioa liuooFouttbe plOCtle"l"lJ' of the C'-""'mi,1ioa.
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PRJORIZATION OF COMMISSION ISSUES:
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A......bment 3 ~ aliJdq of tuues dIat were embodied in die reIOludcm adopted
by your CouDciI lIlUI a1Io I9JH It _n ............110lIl to b8 CQIl$lcJerle4 by the
CommI..lQI1 to be passed 011 by tho Board of Svpc:rvisgn. Staff has alao Allor"4.b;d to
prioritize them into tba 'order of acdon tb8t !bey Ihould be ......dII~ It would be
appro.91iate far your CouIICil to IDYIow IbllI priorit)' IistlDa 8DCl provide Idvl.c:e to die
t"nmmluion lito JOlir.............. whrIhcraruot'P."""",,"'nis a .qp.~c1ty. TlIe Nonh
Cowlty Solid WIItll MaDipmeDr ItpJI:y (JPA) is Il1o ovallWillg this Jilt and will be
1akiD. acdon CIa thole isslIOI u the (bMml..ltwa begiDs i1I wgdc.
JOINT POWERS AGENCY srA'l1IS:
The Narth Count)' Solid Wute ....."V"'''lIlt Af,eDtJy hu IIIIItlCl the Bequest far
Proposals (RPP) COr lIlla'll8l:i.w d1.-1 'l'bc RFP was iaued 011 Aupa 11, 1993 aDd
ftOCices of ill av-n.biJlty were _ to many poteIIlial pnMcIen of cIiIposal aDd
pnlCtluing ~ '11l1n will 60 a pre propoAl ~ on Septemw 1,
1993 It which time iIlIeIested pardes will eDtllr fDto a dialope willi dte, Agency and 0IIl'
c:oRlullllDt zeprdlng the pI~ pftlCUI. TlIe proposals lIIll due 011 October 1, 1993.
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ECONOMIC ll1SK SlJRCIWlGE:
AI! iDtqrIl JIIIIl of tho Panidpatkla Apc:mCIIt ia III a;('o - ~..I" dlk iIlIrdlIrP. to IIOD
~"tmy dolica., 'Ibil1Roa..b.u... -IamB .. . dID: claa4 CMll' Ihe llIIdre PardCJpmoa
AJret"'C1It procell 60m Ibe VfItJ "nnl1\1- MID1Iepl opiDiona have 1loeD .......
Ibat tho suzcbIrp Is i11cpl mcl baa br= lJIIdtlated I....p...,ody. As of tho pn:paratlon of
1bia It&ff rqJOn, Ibe 0t1 of O1u1a Vista baa mecl U>\ptlon IlplilRt tho CoUlll)' of Sa
DleSO declltllll the t.u.p.~ .app1IeIIio" of dIis sureharp. .
III pm'ious dilC""IIIon,' ~ CouDcIl baa ~uh.,d of the City Allomeys u to the lop!
, upectI of 1110 ~; your ~~ Is ftlCl1Hl1lecl u to particlpAtlO'l b)' ~do with
c::J11Jl& Vista in this Hliptloa. The ~;A'" dcctoftho lurdIarF it toldd $19 per ton
fee to our dispoIaI costs raisiD8: thOlllIO . IOIIl of S62 per lOG. The provlous lICtiOD b)'
tho o--;.~ IIICDtioaccl ov1icr ill dlia report to J'OOOI1.nw a "pay u your JO" bIIiI
would brIq our 'IIIAWll '* tD the _level u "pay .. you 10"; huMMr, if the Count)'
c:omiII.uel with a llU\lharp 0Il1be ..,.,. JOU JO" lite it COlIkl mile the ra1llI to over S90
per tDD.' " ' ': : :!. " ' "
. " ,.', "M;', :'. .... .'
The Illlplioll OIl the I1IfCIaarp may -.0 applle."I, 10 cideI that have aIrNd)' Iipecl the
AgroemoDt8I wc1l. The AtJ.c .-provI4oa far III inbial C"D""';_ of 5Ml of tho
dt1'1 now to the Ccluaty widi die pmmlnblJ so. able 10 be ..........I"~ to 1110
'C.......".ri"" ~,'by DocleaIJiIr of 1993, tho mF"'lnl"l wutalllUlt be '""",...iIfM
to1be County or tho surdlIrF wD.l appl)' tD that waste. Thc 01Wa Villi Bdptkm iI aIIo
invilina 0IbIlr cities (llpalDrJl ar DOQ ID p&rdclplle in the lUltIharpllJit..
. ..... .,' ,~':I..{'" ';'. !:".,: ",",
SlIM' MARY', ," -,', ,,-, ,.. ," '
______. .1. ',' ", ..... .
.:: ' , :' ..... ~ ". -,: I,t:- .
The feCCIU lICIiou by Ihe CouIIty IIIll tho IDtcriDl n.....nI.IiOll have plUYidcclll10thcr
uwwt..m.ty for us 10 booome . .....~ clty. Tho' upect of costs relalinl to 1110
operatkm of the I)'8lem maD it iDlfarIaDt far us to be full)' &Wille of eltcmativca
availab10 olllCWhcra. JWd1tlonllll)', kis ~tut for tho CowlcilIO "0"111...... tho VI1ue of
pardclpadnJ tit tho lOUd Wille &cia ....'""1 u a JeJicmal panDer. The recent lCtiaaa
by the ~.el"" 10 Iccept . 0.... 1...108 vote prb- to bolldl'lf 1'tIDOVCI108le of the
risk relI&cd toalaoa LenD debt (.-_.._.II......M tD the County. Slplfl"'''llsllllel remain u
to Ibe R...ftI'!jaJ, vlabDity of die CoaIl)' System; aDd poIIlible altcnlltMll will DOl be
aVllilab1c tD U UIIdl ~ afw _ fhIt of October. PanlcipatloA in tho Bllprlnn
aplut Ihe IlII'Chaqe Is ....JI1QP1D _Mrln& die pllllitive IIIture of the I1IfCha1p.
JACK ANDERSON ' ,
DBPUTY crrY MANAGER .
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Aulrh_nts
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GlIlffI't_
M'IHONY AI --
DIANE IlAIlDlI.8Y'
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C!I1t1mtU,nf ~an ~Usn 'II
., OI'FlClOFCOUNTY CQUNSIL -=-=t=
_ COUNn' ADftlHlS1M'I1ClN CINT1IR -::......
.. PACuiiCItClMWAV, UN DIHD. CNJFOIlM4I1tOl408l --::""".....
.1111)..... - -~~
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Jul1 28. 1m
Honorabl. Board of Supervtsors .lICI
Honorabl. Mayors In!! City Ccuncl1....rs
Ae: Sa1td Vute Inte,.1111 Pmietpltton Agw ....nt; Proposed
AIlenclment. .nd Legal Opinion
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Pl.... ftnd enclosed proposed Second AIlendlllent to So1td Vaste Interi.
Partlclpat'on Agl'8ll1lle11t recDlllllellCfecl by tile Int.,.t. Collllb.fon and legll
opinto.. Pl,..e place tilts it.. on your "nda foJ' ,ctin prior to August 4r
1'", the date of the next ..tint of th, lltertlll ColIIIis.lon. Th, IIlIlInilment
IIIU.t be IpproVed no 1.ter than August 27. 1993. can Ms. Lin Wurbs at 9%4-
2729 to I!"rUlII'lor pict up of the ....dMnt. . , .'
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, '. Res 1 .
U1H:b..
Ene.
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ltorney. City of Pow.,.
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UI'~.'>>. 4.;.~ ~Ul~ .74 zlao
PO...,
CO 50 50LID -ITE ... ESCO:\1)JJ)O 1II0021.D03
. $ .
i.urtD... HAIlMOII,.....
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GI:Oim+M'.nf Qmi':leb ~g
.... . .." "f7"'. ~ so =_
. ., 0flF1CE0f' COUNTY CCXINSIL '-J==-
. ", .' _GOUNn'Nll'1f_'M'nClH~ ""':r--
'1CI01WlII'lCtlClllWAY.lNI OIIGO.ClIIUl'ONM....... r::""aF'2.~ .
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AIiI'I'MON\'" .&1 ....
aIMllIAIlD&8W'
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.11111 a. 1193
Honorable Board of Supervisor. and
Honorable ~rs IIId en)' Counctl ....
ReI. Inter.i. SoUd Wate .....T.....t
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. It b' the opintOll 0' the undenfpelf County Counsel .., the Count)' of
51n Diego and the Cfty Attol"lle,Y of tile City 0' Pow., till' ne Interim
Agr....nt without further IIIeIIClIIent ClIl'I'tAtly provfclts that 111 flow
cOlIllIitJItnts ...de by a eit)' .han revert to that cfty OIl MI1 31. 1994. If thlt
eft)' hIS not agreed to the peruneU f111"11 of govemlllCllf. unless b1 that dau 1
lIII.'lortty of the Interf. CcaltssiOll Us reeomended and tne County h~ IssUld
the soltd wasta facility bondtng dtscrilled III SGttClll 3.8(1)(1) of the Intertm
AllreUlnt; In whtch event. onll that fl. CCBlltted to the Inte..tm eo.isston
sfiaU .revert to' such city. .....
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...... ..... . ...::: ...... :" .. aUjiect ...nid.
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co SJ) SOLID "S'11l _ EScoNliIDa /1.,0"'0'1
.
tIIalrII MRIIENr 70 DI1UIII ~-mIIMr
. 1. Section Z~l of tIl. ,.".nded Intort. Agr! It. ."'11 be r.eplaced
with tll. 'ol1ow1l1f 11llSlU"lz .'
-Thta INTEltJIl MREEMEHT ....11 take effect U 0' .1_ U, 1'", by.
bet_en .uI~ tile CotIflY alld IIl1 0' tile Clttes listed en
Attlchllent A as "Ivlag _"tee( tht. docu.nt 0It 01' ,before :
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J!}.<l/,'~' t:t'''' :-~.~
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2. Slettc... 3,'(I)m shan be replaced wttl! tile fonowtn, langulge:
-C.1)J6lond I...... As to .n ....rs.. OD 11I131. ItM~ imless .
tile TV first rella on tile Flaw COntrol Covenut In issuing
bonds to ftnuc. tile S.. MaI'COl faelHty expUstOll lll4/or closure
and to provtd. 'Inanelllf for otIIar sol tif waste ro ec I tn the
x e un 0 110 00 !lint
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12:57 PM
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APPaol,.w BY STEERING COHMl:'1"1'IE, 11 Kay 19n
blllllled for sig'nature by Any o~ All cit:i..
, paCJe 1
acaaalDDlll'l n. ..nBD alii) aIIOIIlI '1'JIII C<)u.'n Ol' .Y D%III.O
, UD 'J1JDl auxB8 01' nil COVll'n' -
U'1'ULI8JlDrliI all IJIUaDl .O:L%D WAII~III COIDa..XOII
UD l'JIOVD)DICI :raa 'lrD DX8'P08aL' OJ' .OLID ....
("INTBIlDI ACmEDIEN'1''')
o
. or up 0 epa i..,
can mut\lally participate in dU1.1ng wi1:1\ zoegional .01.1d _at:e
.atters; ancl,to develop a peraanent 9overnanc:. a\lthorlt:y t.o deal
with reljlional solld wa.te _t.t.era that. w111 prOlllote the 10n9 t:e3:a
health aneS satClty ot the r..idenu of the COtlH'1'Y'and tbe ~itiea.
, .
Now, theretore,'the undersi,ned COUNTt and Cities (collectively,
"MeJaber Agenoies.)' aFe. to participau in good faith in the
pertormance of this INTERIM AGREEMENT, and to aot in a .anner that
confo~.. to the 8pid~, intent. and qeneral Prellli... ot this IN'l'BlUM
AOREEHEN'l', and in accordance vith the followinq: .
,.
1.0 DIIIDPT.
l.:& 'COtlll'rY 1I...h.r.hlls~: : To J:le .. slqnatory of this IN'TmUH
Acm!:DIBN'l' and participate" as: a fu1.l. ..lllber of the InUrim
Commisaion, tbe COlJlft'Y ia cOllllit:t1nq 100t of its Accept:llb1.. Waste
flow in accordance with the provisions of Part 3 of thie dOCWDent..
:&.a city KembershiD. '1'0 H a sipat.ory of this ZNTERDI AGREEMENT
and participate a. a full jp-- of 1:he Int.ri. Commi..ion. each
city is co1Ulit.tin9 at l..st SO,, end may COIIllit up to 1.00t, of it..
Acceptab1.. Waate flow in acClClE'dlUlCle witb the provi.ions ot Part 3
ot this docwaent:. _ _' . .
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a. A .ellber Clit;y C01IIIl~1:in9 at lell&t 50t of 1u ACCIlpt.able
Wast. flow .t ~. time of eivniDv th1. dOClWllent _y, until l)eoellber
1, 1913. deliver lIlOr. than it:s COIIIIIitt.d Acceptab1.. Wast.a 1:0 a
COtlH'1'l( facilit.r and .llClh adeS1t.lonal vaste shal.l not be IlUbje,* 'to
the Economio Il Ilk SUrcharga ..1: forth in this dOO\ll\ent at. Pan 3,
.action 3.6, Be.ection d~
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CllY OF
CHULA VISTA
OFFICE OF THE CITY ATTORNEY
August 17, 1993
FROM:
The Honorable Mayor and city Council
John Goss, city Manager
George Krempl, Deputy city Manager
Teri Enos, Principal Management ~~stant
Bruce M. Boogaard, city Attorney~
Solid Waste TRO Hearing
TO:
RE:
As a result of the city's Application for a Preliminary Injunction
and an Order Shortening Time for a Hearing on the preliminary
Injunction this morning, August 17, 1993 in Department 17 at 8:30
a.m., the Honorable Ronald Johnson granted an Order Shortening Time
for a Preliminary Injunction hearing to be held on August 27, 1993
at 8:30 a.m.
previously, we had hoped that the court, without any advance
communication with the court, could have held the preliminary
Injunction hearing on August 25, 1993 and, accordingly, we asked
the Council to set a special meeting for August 26, 1993 which
would give us a one-day period within which to decide whether or
not to join the Interim Commission and sign the Interim Agreement.
However, the Court could not accommodate us on either August 25 or
August 26 and instead set the matter for the morning of August 27.
I hope that the Council can meet after the hearing which should
easily be concluded by noon in order to take whatever action the
Council deems appropriate. Therefore, I am requesting that the
Mayor call a special meeting at noon on August 27, 1993 for the
purpose of discussing all matters involving solid waste including,
but not limited to, discussion of whether or not to join the
Interim Commission and/or sign the Interim Flow Control Agreement
and/or continue the litigation among other things. council should
cancel the special meeting previously set for August 26" 1993.
As an alternative to meeting on August 27 at noon, the council may
wish to meet on August 2.6 without knowing how the court is going to
react and to give the city Manager authority to respond
appropriately based on the judge's ruling on August 27. The city
Attorney prefers to have the Council meet on the 27th.
BMB:lgk
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276 FOURTH AVE/CHULA VISTA. CALIFORNIA 91910/(619) 691-5037
f'Rll"I' !lIlI)GHT WCRDEN
TO'
425 6184
fUl 17. 1993 11'43AM P.B2
~'tt.. ~^W U'IICtP nr
D..DWIGHTWORDEN
... fl'k()J.! S~I(,)NAt ~()hrOn^TI(;N
I~LO~OA.I>t,^rf r",M.!l:UI1I.'CUI
S()I,tH.. .......C:II. eMU un,..." wu,...
1U1"I"Q~tIU04. Ifnlill",l'lft,71)'l"
FAX 18,nl7t>5 filM
l) OWIOH1 w()Ifl)f-N
TlVilC"" n. nlOH.....oND
W. 1IC011 WU.L,^NS
JAMES H. ELl. to III
Tt;.MfIW'N1 (41"~
CAYRTM. CAJrWrOFl:Jo
MI~L ~l:nKC.'f"N
MBHPR&NDUJI
DATE:
Ron Ball, Frank Mannen, Dave Chapman, Jack Anderson, Dan
Hentschke, Lynn McDougal, Bruce Boogard 1') 1.7 I.
D. Dwigbt Worden, special Counsel Solid Waste ~
AUgust 17, 1993
Chula vista Litigation: Injunction hearing 8\27\93 8:30
a.m. Dept 32
'1'0:
I"ROM:
RE:
We had our TRO hearing this morning, 8\17\93 betore Judge Ron
Johnson. The county filed opposition, copies of which are being
mailed to you. you already have our moving papers. Judge Johnson
listened to some argument and gave no indication of his thinking,
other. than he overrode the county's objection and set an expedited
preliminary injunct) on hearing for Friday August 27, 1993 to
accommodate chula Vista's request in this regard. Chul. vista will
be scheduling a special city oouncil meeting immediately thereafter.
to decide what to do before the 27th signing deadline expires.
r would encourage each of you and your oities to consider
SUbmitting an amicus letter or brief to Judge Johnson before the
decision in support of Chula vista if you feel comfortable doing
so.
DDIII
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OFFICE OF THE MAYOR
TIM NADER
ellY OF
CHUlA VISTA
August 13, 1993
The Honorable Brian Bilbray and
Members of the Board of Supervisors
County of San Diego
1600 Pacific Highway
San Diego, CA 92101
Re: Solid Waste Surcharge
Dear Brian and Members of the Board:
We are writing you this letter concerning the surcharge your Board imposed on
August 1, 1993 and the notice thereon which has been posted at the entrance to
the Otay Landfi 11. We would request that the surcharge be rescinded and the
signs removed. The surcharge is not in the genera 1 pub 1 i c interest and is
inappropriate. Further, it should not have ever been considered prior to the
extended deadline of August 27, 1993 for cities to decide whether or not to sign
the Interim Solid Waste Agreement. In the meantime, it remains punitive and
regress i ve. F i na lly, there is no longer any argument for the surcharge since the
recommendation is to now go on a pay-as-you-go basis for everyone and not proceed
with bonding.
We appreciate your consideration of our request.
Sincerely,
JC' /I.A4t..
Tim Nader
Mayor
TN:GK:mab
/:6:
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1J./J--1/r
278 FOURTH AVENUElCHULA VISTA. CALIFORNIA 91910/(619) 691.5044
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.
IMPORTANT NOTICE
SOLID WASTE SURCIIARGE
IlPFECTMl AUGUST I. 1993. A SOUD WAS'Illnp FEll SURCllARGIl
Wlu. BIl U!VJIlD AGAINST SOUD WAS'Ill DISPOSED OF AT COlJNTY
IANDnlJ.S WJfICH ORIGINATES IN ANY 01' THIl FOlJ.OWlNG CI11Ils,
. .--
· CAJUsBAD · IlNClNrrAS . OCEANSIDE
· CHVLA VISTA · ESCONDIDO .5ANTBB
· EL CAJON . IMPEIUAL BBACH . VISTA
These clUes did not sIgn an Inlerfm Solid WUle Agreemenl commltllng to
be a partner In the restonal lOUd wasle I)"lem by the July 23. 1993 deadline.
Theretore, the Surcharge wID be added to the reguJll' diSPOSAl tee tor Wille
orlglnatJng III these clUes. ThIs surcharge Is required to compensale tor the
'yslem's Inllblllly to plan tor and linanes taclUtJes to dispose or Proceas
wasle from these c1lles. The surcharge also assures thaI these c1tJes pay a
lair share 01 the S)'Ilem's IancUlU closure and POSt closure costs including
COlts to remedlale environmental problems asaoc:Jated with old JandllUs.
IF .4NY PART OF YOlIR UMD ORIGINATED FROM .t NOIV-MEMaTiR CI7Y.
'I1iB DISPOSAl. FEE mu. BlJ:
MIMtd Wam
$7.00 tor can
$15.00 tor pJck.ape/lnlJen S' or I_
Grnn Wast4J
$4,00 tor can
$9.00 ror pJck.upe/lnlJen S' or lass
M/zed Wast4J
$62,00 per loa
Grnn Wast.
$37.50 per ton
.,
IlPFBcnva BIJISI
YOU MUST TEU. 11f1l Pllll COLLECToR '11m ORIGIN OF YOUR WASTIl,
FAILURB TO DO SO wru. RIlQUJIU! A SURCJfARGE, RIlGARDU!SS 01'
11f1l ORIGIN.
To mlsrepreeeat the orlgla or your load 1UbJec&8 you or your campau,.
to 1UI admlnlslratlve ree of ilia (10) tIm.. JOur lIB8e8eed tipping ree. up
to oae tholl8lUld doUan ($1.000).
nil ree ..r.-Iat.. to $10.000 'oBowln, three (3) olfllD88S.
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COUNCIL AGENOA STATEMENT
Item 12B
Meeting Oate 8/17/93
ITEM TITLE: Report on Alternative Waste Management Systems
SUBMITTEO BY: Oeputy City Manager Kremp~ ~ .
Principal Management Assistant Eno~~
REVIEWED BY: City Manage~ 4/5ths Vote: No X Yes
This report is in response to City Council's request of August 10, 1993 to look
at alternative solutions for solid waste disposal. This report is transitory,
in that staff is in the process of procuring additional information and is
scheduling meetings with Mid-America Waste Systems regarding the Campo option,
Waste Management Inc. regarding their "swap" technology, and Laidlaw regarding
transfer station and other alternatives they may have available. Any additional
information we receive in the next few days we will make available at the Council
meeting. We also expect to get more information within the next week. Staff
will continue to provide Council with on-going updates as information becomes
available.
RECOMMENOATION:
Accept the report and cont i nue for an add i t i ona I week to
August 24, 1993 for a further update.
BOAROS/COMMISSIONS RECOMMENDATION: N.A.
DISCUSSION
There appear to be seven potential alternatives to the County System. Five of
these were discussed in an earl ier report to you in June. Much of that
information then was sketchy and unfortunately remains so. However, we are in
the process of refining that information. The seven alternatives are as follows:
1. Rail Haul to Utah.
2. Campo Indian Reservation (Mid-America Waste Systems, Inc.).
3. Eagle Mountain, Riverside.
4. Amboy, San Bernardino County.
5. Orange County.
6. North of Los Angeles or Campo (laidlaw Waste Systems Site).
7. "Swap" technology, Bradley, CA disposal (Waste Management Systems
Site) .
The attached tables provide you with all of the information that we currently
have available to us on these systems. Perhaps the most telling information will
be the responses to North County Solid Waste Management Agency (NCSWMA) RFP for
solid w~ste transfer, transportation and disposal services. This RFP was issued
on August 11, 1993. The objectives of the RFP are:
I:;' /J...,
Procure interim (up to 5 years) solid waste road transfer/disposal
service contractors(s);
Procure long-term (at least 20 years) solid waste rail-transfer and
disposal service contractor(s);
Procure contractor( s) wi th exper i ence and resources to undertake
services;
Procure reliable, environmentally sound and reasonably priced
services expeditiously;
Procure disposal site(s) that meet State and Federal requirements
and keep the NCSWMA separate from past or future 1 iabi 1 ities of
other disposers.
NCSWMA indicates that there has been a great deal of interest expressed by
prospect i ve proposers and they are expect i ng to rece i ve a number of vi ab 1 e
responses. NCSWMA will be convening a pre-submittal conference on September 2,
1993 and the deadline for submittal of proposals is October 1, 1993. This
process should produce "real" proposals with specific and detailed information
which we can use to assist us in our evaluation of the available alternatives.
Ootions
Attached is a chart which provides information on the above-listed seven
alternatives to the County System. It should be noted that the cost estimates
provided therein are preliminary and are based on the best information available
at this writing. It should also be noted that these alternatives do not include
those services which are currently provided by the County which the City would
be responsible for providing (i.e. Household Hazardous Waste Program, Recycling
Serv ices, Tonnage Grant support, Techn i ca 1 Ass i stance Program support and grants,
and staff time associated with landfill studies and contract monitoring).
We will attempt to quantify and plug those numbers in within the next week. With
the information available, it appears at this point that the most viable
alternatives are: Campo, working with Mid-American Waste; working with Laidlaw
in conjunction with either Campo or a Laidlaw owned landfill in the Los Angeles
area; and working with Waste Management, Inc. (El Cajon) on their technology and
proposal to haul waste to their landfill in Bradley, CA. With re9ard to the
latter, we have talked to Waste Management Inc. and El Cajon staff and have
requested a copy of their staff report going to the El Cajon City Council on
Tuesday, August 17, 1993.
The Orange County proposal might have some possibilities as well. However, the
ra i 1 hau 1 to Utah, Rivers i de County and San Bernard i no County proposa 1 s are
further away in terms of timing, distance, or both, and should probably be
secondary focuses for the present time.
Conclusion
Council will be provided with a written, as well as verbal, updates at the
hearing. We will also continue to collect information and bring it forward as
received. Please note that your agenda packet includes an information item on
County Solid Waste Enterprise Fund reserve balances as of 6/30/93, as previously
requested by Council.
FISCAL IMPACT: This is still being developed and refined.
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