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HomeMy WebLinkAboutAgenda Packet 2001/05/08 CITY COUNCIL AGENDA May 8, 2001 6:00 p.m. Council Chambers Public Services Building 276 Fourth Avenue, Chula Vista CI'IY OF CHUIA VISI'A City Council City Manager Patty Davis David D. Rowlands, Jr. Stephen C. Padilla City Attorney Jerry R. Rindone John M. Kaheny Mary Salas City Clerk Shirley A. Horton, Mayor Susan Bigelow The City Council meets regularly on the first calendar Tuesday at 4:00 p.m. and on the second, third and fourth calendar Tuesdays at 6:00 p.m. Regular meetings may be viewed at 7:00 p.m. on Wednesdays on Cox Cable Channel 24 or Chula Vista Cable Channel 47 AGENDA May 8, 2001 6:00 P.M. CALL TO ORDER ROLL CALL: Councilmembers Davis, Padilla, Rindone, Salas, and Mayor Horton. PLEDGE OF ALLEGIANCE TO TIlE FLAG, MOMENT OF SILENCE SPECIAL ORDERS OF TIlE DAY ~P_RI~_SENTATION OF PROCLAMATION TO POLICE CHI~E~ EMERSON t'ROCLAIM1NG WEDNESDAY, MAY 9, 2001, AS PEACE OFFICER S MEMORIAL DAY · INTRODUCTION OF TANYA OLANA, MISS CHULA VISTA 2001, LONNA CORNWALL, FIRST PRINCESS, AND ADRIANA ACERO, SECOND PRINCESS AND MISS CONGENIALITY CONSENT CALENDAR (Items 1 through 10) The Council will enact the staff recommendations regarding the following items listed under the Consent Calendar by one motion, without discussion, unless a Councilmember, a member of the public, or City staff requests that an item be removed for discussion. If you wish to speak on one of these items, please fill out a i'Request to Speak"form (available in the lobby) and submit it to the City Clerk prtor to the meeting. Items pulled from the Consent Calendar will be discussed after ~lction Items. Items pulled by the public will be the first items of business. 1. APPROVAL OF MINUTES of April 17 and April 24, 2001 Staff recommendation: Council approve the minutes. 2. WRITTEN COMMUNICATIONS A. Letter of resignation from Susan Carrillo, member of the Commission on Aging. Staff recommendation: The resignation be accepted with regret and the City Clerk be directed to post immediately in accordance with Maddy Act requirements. 3 A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE CONSULTANT SELECTION PROCESS AND RETAINING THE OR THE FORMATIO INFRASTRUCTURE FIN N OF AN ANCING COMMUNITY FACILITIES DISTRICT FOR THE SAN MIGUEL RANCH PROJECT AND THE OTAY RANCH VILLAGE 6 PROJECT BY ENTERING INTO AN AGREEMENT AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE CONSULTANT SELECTION PROCESS AND RETAINING THE FIRM OF BRUCE W. HULL & ASSOCIATES AS APPRAISER FOR THE FORMATION OF AN INFRASTRUCTURE FINANCING COMMUNITY FACILITIES DISTRICT FOR THE SAN MIGUEL RANCH PROJECT AND THE OTAY RANCH VILLAGE 6 PROJECT BY ENTERING INTO AN AGREEMENT AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT C. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE CONSULTANT SELECTION PROCESS AND RETAINING THE FIRM OF MCGILL MARTIN SELF, INC. AS SPECIAL TAX CONSULTANT FOR THE FORMATION OF AN INFRASTRUCTURE FINANCING COMMUNITY FACILITIES DISTRICT FOR THE SAN MIGUEL RANCH PROJECT AND THE OTAY RANCH VILLAGE 6 PROJECT BY ENTERING INTO AN AGREEMENT AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT The City currently has nine assessment districts and three community facilities districts (CFDs), all formed for the purpose of financing infrastructure improvements. Meyers Real Estate Information, Bruce W. Hull & Associates, and McGill Martin Self have participated in some of these districts as market absorption consultant, appraiser and special tax consultant, respectively, on all land-secured infrastructure financing transactions in the Otay Ranch territory and Sunbow II. It is recommended that the City enter into new agreements with each firm for the San Miguel Ranch CFD and the Otay Ranch Village 6 CFD. These agreements also provide that the City Manager may amend the agreements, with approval as to form by the City Attorney, to include CFD work for other projects, in substantial conformance with the terms of the original agreement, within a three-year period following the date of these resolutions. (Director of Public Works) Staff recommendation: Council adopt the resolutions. 4. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA VACATING AN IRREVOCABLE OFFER OF DEDICATION OF FEE INTEREST TO THE CITY OF CHULA VISTA OVER LOT "A" OF CHULA VISTA TRACT NO. 99- 03, EASTLAKE TRAILS SOUTH, MAP NO. 13812 The Eastlake Company wishes to process a summary vacation for the existing Irrevocable Offer of Dedication of Fee Interest to the City of Chula Vista over Lot "A" of Map No. 13812 and grant a new Offer of Dedication for said lot in order to facilitate a boundary adjustment between Lot "A" and the adjacent residential parcel. In accordance with Section 7050 of the California Government Code and Chapter 4, Section 8335 of the California Streets and Highways Code, this type of vacation may be performed summarily through adoption of a resolution. (Director of Public Works) Staff recommendation: Council adopt the resolution. 05/08/01 Page 2 - Council Agenda 5. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AGREEMENT WITH THE ACCOUNTING FIRM OF CAPORICCI, CROPPER & LARSON, LLP TO PROVIDE AUDITiNG SERVICES AND AUTHORIZiNG THE MAYOR TO EXECUTE SAID AGREEMENT Section 1017 of the City's Charter requires an annual independent audit of the City. The current three-year agreement with Calderon, Jaham & Osbom terminated with the completion of the June 30, 2000 audit report. A Request for Proposals to provide auditing services for the City, the Redevelopment Agency, and the Bayfront Conservancy Trust was sent to 20 auditing firms. One proposal was received and evaluated by a Selection Committee appointed by the City Manager and composed of the Assistant Director of Finance, the Fiscal Operations Manager, and the Treasury Manager. (Deputy City Manager Powell) Staff recommendation: Council adopt the resolution approving the agreement for Fiscal Years 2000/2001, 2001/2002 and 2002/2003, with the option to extend for two additional years. 6. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AWARDiNG A PURCHASE AGREEMENT iN THE AMOUNT OF $236,183.81 FOR TWO 5-CUBIC YARD DUMp TRUCKS AND ONE STREET PATCH TRUCK TO DION iNTERNATIONAL TRUCKS THROUGH A COOPERATIVE BID AGREEMENT WITH THE CITY OF SAN DIEGO, AND A PURCHASE AGREEMENT iN THE AMOUNT OF $92,139.33 TO EW TRUCK & EQUIPMENT FOR ONE 12-CUBIC YARD DUMP TRUCK On February 27, 2001, Council approved the staffing studies that authorized the addition of 11 positions and equipment for the Public Works Operations Division. The equipment approved included heavy trucks needed for the new crews. Municipal Code Section 2.56.140 and Resolution No. 6132 authorize the Purchasing Agent to participate in cooperative bids with other government agencies for the purchase of materials of common usage. The City, therefore, is participating in a current City of San Diego bid from Dion International Trucks for two 5-cubic yard dump trucks and a street patch truck. For the 12-cubic yard dump truck, EW Truck & Equipment Co. has extended the same price, terms, and conditions to the City of Chula Vista that existed on a recent purchase. (Director of Public Works) Staffreconunendation: Council adopt the resolution. 7. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE PERFORMiNG AND VISUAL ARTS TASK FORCE'S SELECTION OF THE FISCAL YEAR 2000/2001 PERFORMiNG AND VISUAL ARTS GRANT RECIPIENTS AND THEIR MONETARy GRANT AWARDS TOTALiNG $64,797 In 1997, Council approved a sublease with the House of Blues Concerts, Inc. (formerly Universal Concerts) establishing a process whereby ticket sales proceeds at the Coors Page 3 - Council Agenda 05/08/01 Amphitheater would be paid to the City and utilized for a Performing and Visual Arts Fund. This fund is to be used for arts grants to the Chula Vista community for the purpose of promoting and stimulating the growth of performing and cultural arts within Chula Vista. The Performing and Visual Arts Task Force has completed the application and selection process and is now making the necessary recommendations. (Deputy City Manager Palmer) Staff recommendation: Council adopt the resolution. 8. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AIVlENDING THE FISCAL YEAR 2000/2001 BUDGET BY APPROPRIATING $40,000 IN THE FLEET MANAGEMENT FUND FOR AN EXTRAORDINARY REPAIR OF A PUMPER FOR THE CITY OF CHULA VISTA'S FIRE DEPARTMENT, AND APPROPRIATING A TRANSFER FROM THE GENERAL FLINT) TO THE FLEET MANAGEMENT FUND TO COVER THAT COST (4/5THS VOTE REQUIRED) One of the Fire Department's pumpers has a severe engine failure. This is a front line unit that needs to be returned to service immediately. The estimated cost of repairing the pumper exceeds the amount normally covered within the Fleet Management budget. Therefore, this action will allow immediate repair of the pumper. (Director of Public Works) Staff recommendation: Council adopt the resolution. 9. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FISCAL YEAR 2000/2001 ELECTIONS BUDGET FOR THE CITY CLERK' S DEPARTMENT BY APPROPRIATING $ 8,313 FROM THE UNAPPROPRIATED FUND BALANCE OF THE GENERAL FUND TO COVER UNANTICIPATED ELECTION COSTS (4/5THS VOTE REQUIRED) Approval of the resolution will amend the City Clerk's elections budget by appropriating $8,313 to cover additional costs associated with the placement of three Charter amendments on the November 7, 2000 ballot. (City Clerk) Staffrecommendation: Council adopt the resolution. 10. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AIvlEND1NG THE FISCAL YEAR 2000/2001 BUDGET FOR THE CITY CLERK'S DEPARTMENT TO RECLASSIFY ONE DEPUTY CITY CLERK POSITION TO ASSISTANT CITY CLERK AND APPROPRIATE FUNDS THEREFOR (4/5THS VOTE REQUIRED) Approval of the resolution will reclassify one Deputy City Clerk position to Assistant City Clerk, retroactive to the pay period beginning April 20, 2001. The reclassification requires an appropriation of $1,665.54 for salary and benefits from the unappropriated fund balance of the General Fund for the remainder of Fiscal Year 2000/2001. The reclassification request has the support of the City Manager and Director of Human Resources. (City Clerk) Staff recommendation: Council adopt the resolution. 05/08/01 Page 4 - Council Agenda ORAL COMMUNICATIONS Persons speaking during Oral Communications may address the Council on any subject matter within the Council's jurisdiction that is not listed as an item on the agenda. State law generally prohibits the Council from taking action on any issue not included on the agenda, but, if appropriate, the Council may schedule the topic for future discussion or refer the matter to staff Comments are limited to three minutes. ACTION ITEMS The items listed in this section of the agenda are expected to elicit substantial discussion and deliberation by the Council, staff or members of the public. The Council will consider the items individually, and staff recommendations may, in certain cases, be presented in the alternative. If you wish to speak on any item, please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. 11. CONSIDERATION OF ACCEPTANCE OF PROPOSED SKATE PARK REPORT AND OF DIRECTING PARKS & RECREATION STAFF TO SOLICIT COMMUNITY INPUT WITH RESPECT TO A PROPOSED SKATE FACILITY AT GREG ROGERS PARK AND ENTER INTO PRELIMINARY NEGOTIATIONS WITH BOYS & GIRLS CLUB OF CHULA VISTA FOR THE OPERATION OF SAID FACILITY The need for a safe and secure skate venue in the City has been recognized for a number of years. The City-wide Youth Summit in 1992 and public meetings for the Parks and Recreation Master Plan disclosed community sentiment for a skate facility. The Parks & Recreation Department hired Purkiss Rose as a consultant to determine the feasibility of a skateboard facility in the City at Greg Rogers Park, on the campus of the Boys & Girls Club. Preliminary discussions have been held with the Boys & Girls Club for the operation of a skate facility at the Oleander/Greg Rogers site. The Parks and Recreation Department now seeks Council direction to proceed with the feasibility study and to solicit public input meetings with respect to the facility and to enter into MOU discussions with the Boys & Girls Club for operation of the facility. (Director of Parks & Recreation) Staff recommendation: Council accept the report and direct staff to (1) develop a concept plan for a skate park at Greg Rogers Park on the campus of the Oleander Boys & Girls Club; (2) continue with the feasibility study and convene public workshops with respect to the proposed facility; and (3) enter into MOU discussions for the operation of a skate park by the Boys & Girls Club. 12. CONSIDERATION OF APPROVAL OF THE CONSOLIDATED ANNUAL PLAN FOR FISCAL YEAR 2001/2002 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME INVESTMENT PARTNERSHIP (HOME) PROGRAM BUDGETS AND AUTHORIZING TRANSMITTAL OF THE CONSOLIDATED ANNUAL PLAN TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Page 5 ~ Council Agenda 05/08/01 Council held a public hearing on April 3, 2001 to review and receive public comment on projects and programs being considered for CDBG and HOME funding. The City is eligible to receive $2,114,000 in CDBG entitlement funds and $938,000 in HOME entitlement funds, for a combined total of $3,052,000. Staffrecommendation: Council adopt the following resolution: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE CONSOLIDATED ANNUAL PLAN FOR FISCAL YEAR 2000/2001 COMMUNITY DEVELOPMENT BLOCK GRANT AND HOME INVESTMENT pARTNERSHIP PROGRAM BUDGETS AND AUTHORIZING TRANSMITTAL OF THE CONSOLIDATED ANNUAL PLAN TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 13. CONSIDERATION OF ALTERNATIVES TO MEET THE OTAY RANCH COMPANY'S SPA ONE AFFORDABLE HOUSING OBLIGATIONS AND DIRECTING STAFF TO RETURN WITH IMPLEMENTING RESOLUTIONS FOR THE COUNCIL'S SELECTED ALTERNATIVE On February 20, 2001, a joint meeting of the City Council, Redevelopment Agency, and Housing Authority was convened to consider a 271-unit affordable housing complex within the Otay Ranch master planned community to meet Otay Ranch's SPA One affordable housing obligation of 246 units of low income housing. Rather than approve the resolutions expressing the Authority's intent to issue bonds and the Agency's conditional approval of financial assistance, Council directed staff to move forward with the 91-unit senior housing component of the project at the C1 site and to return with alternative proposals to meet the remaining affordable housing obligation of the Otay Ranch Company. (Community Development) Staff recommendation: Council adopt the following resolution: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING A REPORT OF ALTERNATIVES TO MEET THE OTAY RANCH COMPANY'S SPA ONE AFFORDABLE HOUSING OBLIGATION AND, ASSUMING COUNCIL DOES NOT SUPPORT THE ORIGINAL PROJECT PROPOSAL, DIRECTING THE OTAY RANCH COMPANY TO CONTINUE TO PURSUE THE 91-UNIT SENIOR HOUSING/MIXED USE DEVELOPMENT WITHIN VILLAGE ONE TO MEET THE REMAINING 155- UNIT OBLIGATION BY EITHER ALTERNATIVES I OR 2 AND TO NOT PURSUE MITIGATION OPPORTUNITIES WITHIN WESTERN CHULA VISTA ITEMS PULLED FROM THE CONSENT CALENDAR 05/08/01 Page 6 - Council Agenda OTHER BUSINESS 14. CITY MANAGER'S REPORTS A. Scheduling of meetings. 15. MAYOR'S REPORTS 16. COUNCIL COMMENTS ADJOURNMENT to the Regular Meeting of May 15, 2001, at 6:00 p.m. in the Council Chambers. Page 7 - Council Agenda 05/08/01 DATE: May 8, 2001 TO: Honorable Mayor Shirley Horton FROM: Toni McKean SUBJECT: Special Guests at Tonight's Council Meeting Southwestern Community College President -- Dr. Serafin Zasueta will introduce 19 Chinese government officials who have been studying for the past year under Southwestem's China Advanced Studies Project. I INTERNATIONAL PROGRAMS SchoOl of S°ci~i Science~ And I~tern~{ional studie~ lStude~t So.ices Ouad~ Suite 65~ ~dern DiA EdiSon J - N~jing Uoiv~si~ pr~ ilizaion, tho basic Kenneth Xie ZhongFan cy Zhongshan Municipal History: ~adu~ Schoo~of theories and concepts ofPub~c Adminis~ation, understand specific ~ ,~_o.u~ ~ ~,dl~lRist~ator Govemment Jnive~si[y of Techo~y ~dmn,sba~on;SouthCh,napubJcAdr~nlstra~on. April 19th, 2001 MEMO TO: City Clerk , / FROM: Patty Wesp RE: SEPECIAL ORDERS OF THE DAY - MAY 8, 2001 Would you please schedule the following item under Special Orders of the Day for the regular City Council meeting of May 8th: Introduction of Miss Chula Vista Tanya Olana, Miss Chula Vista 2001 Lonna Cornwall, First Princess Adriana Acero, Second Princess & Miss Congenialty Thank You~ cc: Mayor Shirley Horton Armando Buelna Patricia Salvacion April 26, 2001 MEMO TO: Donna Norris, Deputy City Clerk FROM: Patricia Salvacion, Mayor/Council office SUBJECT: SPECIAL ORDERS OF THE DAY - MAY 8, 2001 Please docket the following for presentation at the above Council meeting: PROCLAIMING WEDNESDAY, MAY 9, 2001 AS PEACE OFFICERS' MEMORIAL DAY Police Chief Rick Emerson will be accepting the proclamation. M~r-12-01 09:00A Villa Bonita 6194769621 1074 Los Pines Cour~ Chula Visla, Ca. 91910 March 4, 2001 Mayor Shirley H~ ~rton City Hail Chula Vista, Ca~ 71910 Dear Honorable I ~layor: After serious mid considcrable thought, I have concluded that it ia necessary ~r me resign from thc £ ommisslon on Ag/ng effective immcdiately. I w~-~ so honored to be appointed by you, Mayor, on February l 0, 1998, to this comn-dssion and :oak seriously lhe o~th, %£asl~istlng thc City Council ill providing thc best possible gox emmt~l for the City of Chu la Vista," Each mcmber of thc Commission on Aging is a lcader in our comnmnity mid a scnlor advocate. 110we zel:, when this group of able individuals mccts collectively, it is to agree on a pla ~ of actlon or to estabbsh goals, in my opinion, tl le community or Clmla Vista could be better served if torah member oF the commission m aghlg cmdd be appointed to mmthcr city cammission, hdng/ng wilh him er her tile k~ ,owledge el-aging mad disabled isstlCS that each oommission member has Thm~k you for tl' e support yea continually show Susan Carrillo CITY COUNCIL AGENDA STATEMENT Item ~ Meeting Date 5/8/01 ITEM TITLE: Resolution Waiving the consultant selection process and retaining the firm of Meyers Real Estate Information, Inc. as market absorption consultant for the formation of a infrastructure financing CFD for the San Miguel Ranch Project and the Otay Ranch Village 6 Project by entering into an agreement and authorizing the Mayor to execute said agreement. Resolution Waiving the consultant selection process and retaining the firm of Bruce W. Hull & Associates as appraiser for the formation of a infrastructure financing CFD for the San Miguel Ranch Project and the Otay Ranch Village 6 Project by entering into an agreement and authorizing the Mayor to execute said agreement. Resolution Waiving the consultant selection process and retaining the firm of McGill Martin Self, Inc. as special tax consultant for the formation of a infrastructure financing CFD for the San Miguel Ranch Project and the Otay Ranch Village 6 Project by entering into an agreement and authorizing the Mayor to execute said agreement. SUBMITTED BY: Director of Public Works/%z / REVIEWED BY: City Manager~ ~' ~ (4/5ths Vote: Yes No X ) The City currently has nine assessment districts and three community facility districts, all formed for the purpose of financing infrastructure improvements. Meyers Real Estate Information, Bruce W. Hull & Associates, and McGill Martin Self, have participated in some of these districts as market absorption consultant, appraiser and special tax consultant, respectively for land-secured infrastructure financing transactions in the Otay Ranch territory and Sunbow II. It is recommended that the City enter into new agreements with each firm for the San Miguel Ranch CFD and the Otay Ranch Village 6 CFD. These Agreements also provide that the City Manager may amend said Agreements, with approval as to form from the City Attorney, to include CFD work for other projects, in substantial conformance with the terms of the original Agreement, within a three (3) year period following the date of this Resolution. Page 2, Item__ Meeting Date 5/8/01 RECOMMENDATION: That Council adopt the Resolutions waiving the consultant selection process as being in the best interest of the City, retaining the firm of Meyers Real Estate Information, Inc. as market absorption consultant, Bruce W. Hull & Associates as appraiser, and McGill Martin Self, Inc. as special tax consultant for the San Miguel Ranch CFD Project and the and the Otay Ranch Village 6 CFD Project and authorizing the Mayor to execute said agreements. BOARDS/COMMISSIONS RECOMMENDATIONS: Not applicable. DISCUSSION: The City began utilizing infrastructure assessment districts in 1985 in order to provide long-term financing for necessary infrastructure in newly developing areas of the City. There are currently nine assessment districts and three community facility districts with outstanding bond debt. Trimark Pacific Homes, L.P., the developer of the San Miguel Ranch project and McMillin Land Development, the developer of a portion of Village 6 of the Otay Ranch project, have recently submitted requests for the City to consider forming community facilities districts (CFDs) for the purpose of financing certain infrastructure that will serve these projects. The City has historically utilized the same, or primarily the same team of consultants for CFD formations. On April 10th of this year, Council adopted a resolution waiving the consultant selection process for the finance team of Best, Best, & Krieger, LLP as bond counsel, Stone & Youngberg, LLC as underwriter, and Fieldman, Rolapp & Associates as financial advisor for all land-secured infrastructure financing transactions. The firms presented today are a follow up to said adopted resolution. A discussion of the duties of each firm relative to special tax financing follows: The market absorption consultant provides the annual projection of home sales that lead to the special tax revenue that will service the bond debt. The Meyers Group has extensive knowledge of this area of Chula Vista and of the San Diego region enabling the firm to analyze the projects at a depth beyond the macro- level market data. The firm has demonstrated an excellent understanding of the dynamics of a regional market place and understands the potential demand within that market. Through their work on the previous Otay Ranch and Sunbow CFDs, they have already accumulated substantial market data, successfully applying it to produce what have proved to be highly accurate sales projections in the Eastern Territories. Page 3, Item__ Meeting Date 5/8/01 A good appraisal is a key component in the viability of CFD financing and the protection of future bond purchasers. Maintenance of bond liquidity and attractiveness of bonds to investors lead to lower project financing costs and less risk to the City. Investors do consider the appraiser, its level of expertise and knowledge of the applicable market when evaluating the appraisal. Familiarity with the community, knowledge of sales price trends, fee structures and development costs are the essential qualities of reliable appraiser of land values. Bruce W. Hull and Associates is the appraiser for CFD 99-1, CFD 2000-1, CFD 97-3 and is part of the existing financing team for Otay Ranch, they have acquired an extensive background of understanding of how property values change during the course of the entitlement process. The Special Tax Consultant's role is to recommend CFD boundaries, provide input into the bond-sizing process, prepare the Engineer's Report and recommend the rate and method of apportionment of the special tax. McGill Martin Self, Inc. was selected for this role for CFD 99-1 (Otay Ranch Spa 1), and CFD 2000-1 (Sunbow II). The firm is a recognized expert in special tax and assessment financing. Their knowledge of the Eastern Territories is extensive and up-to-date. Given their experience and knowledge of the project area, staff believes that McGill Martin Self, Inc. are in a better position to provide the most accurate bond-sizing and special tax rate combination that is carefully calibrated to cover the necessary project financing costs while not over-burdening the ratepayer and jeopardizing the longer term viability of the bonds in the marketplace. The Special Tax Consultant will prepare the project's acquisition/financing agreement and coordinate with the property owners within the district boundaries After the bond sale, during project construction, as project coordinator they will perform the district and development impact fee auditing services. All of these functions and processes have aspects that are unique to the City of Chula Vista and its practices and policies. MMS has progressed along the learning curve of these processes to the point where it would be counterproductive to initiating a new Special Tax Consultant for this role. Therefore, staff recommends that the City's consultant selection process be waived in the interest of providing a team: · That has demonstrated an ability to work together efficiently on past projects, · That possesses extensive knowledge and experience in their respective fields, · That has mastered a unique understanding of the development issues in the City of Chula Vista, · That has proven its credibility with the bond market by providing support to successful bond offerings for existing projects. Page 4, Item__ Meeting Date 5/8/0'1 Retaining these three firms now rather than going through a lengthy selection process will allow the team to begin to focus on the key financing issues early in the process, resulting in a superior bond offering that will materially better serve the City's interests. Given the critical and sensitive nature of each of the elements of a successful bond sale, staff does not believe the benefits of embarking on a selection process now will outweigh the risks to the City of trying to offer bond issuances for major infrastructure that are supported by documentation from consultants who are unfamiliar with the applicable market and the needs of the City. FEE ESTIMATES Based on previous CFD work of similar nature the following fees per district would be expected: Appraiser ....................... $ 30,000 Market Absorption ............ $ 15,000 Special Tax Consultant, Audit Services, and Project Facilitation .... $ 75,000 to $120,000 Staff has verified that these fees are in line with levels that the City has previously paid and also with what other jurisdictions are currently paying. These fees are also reflected in the proposed Agreements with the three firms. CONSULTANT PAYMENTS TO DATE The total fees paid to each of these consultants on all City projects (CFD formation and other) over the past twelve months is reported as follows: Meyers Real Estate Information, inc. $ 13,200.00 Bruce W. Hull & Associates. $ 30,000.00 McGill Martin Self, Inc. $1,162,000.00 Most of the above fees paid to McGill Martin Self, Inc. were for their work on Olympic Parkway and Salt Creek Sewer contracts. The total fees paid for CFD related work was $134,930. FISCAL IMPACT: None to the General Fund. All costs will be funded by the developer and/or property owners and apportioned consistent with the relative benefits received from the improvements being financed. The City will receive the benefit of the full cost recovery for City staff. H:\HOM E\ENG[NEER\LANDDEV\CFD\CFDCONS5.DOC RESOLUTION NO. 2001- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, WAIVING THE CONSULTANT SELECTION PROCESS AND RETAINING THE FIRM OF MEYERS REAL ESTATE INFORMATION, INC. AS MARKET ABSORPTION CONSULTANT FOR THE FORMATION OF AN INFRASTRUCTURE FINANCING CFD FOR THE SAN MIGUEL RANCH PROJECT AND THE OTAY RANCH VILLAGE 6 PROJECT BY ENTERING INTO AN AGREEMENT AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT WHEREAS, the City of Chula Vista (the "City") has previously formed nine assessment districts and three community facilities districts for the purpose of providing long term financing of infrastructure improvements to serve the properties within such districts; and WHEREAS, due to the inherent complexity of such lar~d secured financings, the City has historically utilized the same team of consultants to assist the City in structuring such financings and undertaking the due diligence required for such financings; and WHEREAS, Meyers Real Estate Information, Bruce W. Hull & Associates, and McGill Martin Self, have participated as market absorption consultant, appraiser and special tax consultant, respectively for land-secured infrastructure financing transactions in the Otay Ranch territory and Sunbow II; and WHEREAS, it is recommended that the City enter into new agreements with each firm for the San Miguel Ranch CFD and the Otay Ranch Village 6 CFD; and WHEREAS, this agreement will provide that the City Manager may amend said Agreement, with approval as to form from the City Attorney, to include CFD work for other projects, in substantial conformance with the terms of the original Agreement, within a three (3) year period following the date of this Resolution; and WHEREAS, staff recommends that the City's consultant selection process be waived in the interest of providing a team that has demonstrated an ability to work together efficiently on past projects, that possesses extensive knowledge and experience in their respective fields, that has mastered a unique understanding of the development issues in the City of Chula Vista and that has proven its credibility with the bond market by providing support to successful bond offerings for existing projects; and WHEREAS, the total fees paid over the past twelve months to Meyers Real Estate Information, Inc. is $13,200. NOW, THEREFORE, the City Council of the City of Chula Vista, California, does hereby waive the consultant selection process for the reasons set forth above and retain the firm of Meyers Real Estate Information, Inc. as market absorption consultant for the formation of a infrastructure financing CFD for the San Miguel Ranch Project and the Otay Ranch Village Project by entering into an agreement and authorizing the Mayor to execute said agreement. PREPARED BY: APPROVED AS TO FORM BY: John P. Lippitt Jol{~{/~. Kaheny Director of Public Works City Attorney J:\attorney\Meyers Real Estate Parties and Recital Page(s) Agreement between City of Chula Vista and The Meyers Group for Market Analysis and Absorption Projection Services for Conununity Facilities Districts for Infrastructure Financing This agreement ("Agreement "), dated ~/~ f(5~ for the purposes of reference only, and effective as of the date last executed unless another date is otherwise specified in Exhibits A- l and A-2, Paragraph 1 is between the City-related entity as is indicated on Exhibits A-1 and A- 2, paragraph 2, as such ("City"), whose business form is set forth on Exhibits A-1 and A-2, paragraph 3, and the entity indicated on the attached Exhibits A-1 and A-2, paragraph 4, as Consultant, whose business fom~ is set forth on Exhibits A-1 and A-2, paragraph 5, and whose place of business and telephone numbers are set forth on Exhibits A-1 and A-2, paragraph 6 ("Consultant"), and is made with reference to the following facts: Whereas, the City is desirous of retaining a firm to complete an appraisal of land within Community Facility District for the financing of public infrastructure for the San Miguel Ranch Project and Village 6 of the Otay Ranch Project as further defined in Exhibits A-1 and A-2; and, Whereas, Consultant was selected based on the quality of previous similar work performed in association with the City's formation of Community Facilities Districts 99-1 (Otay Ranch) and 2000- 1 (Sunbow II); and, Whereas, the consultant selection process was waived due to (1) the need to expedite the formation of proposed Community Facilities Districts in the Eastern Territories, (2) Consultant's extensive knowledge of this area of Chula Vista and San Diego which enables Consultant to analyze the project at a depth beyond the standard macro-level market data, (3) Consultant has demonstrated a deep and unique understanding of the dynamics of a regional market place and understands the potential of the proposed development projects in the Eastern Territories within that market, and (4) Consultant's fees are comparable to those fees charged for existing financing districts; and .Whereas, Consultant warrants and represents that they are experienced and staffed in a manner such that they are and can prepare and deliver the services required of Consultant to City within the time frames herein provided all in accordance with the terms and conditions of this Agreement; Whereas, the Consultant's Scope of Work as set forth in Exhibits A-1 & A-2 may be amended to include work on additional Community Facility Districts within a three (3) year period following the date of this Agreement, as determined in the sole discretion of the City Manager and approved by the City Attorney. (End of Recitals. Next Page starts Obligatory Provisions.) Obligatory Provisions Pages NOW, THEREFORE, BE IT RESOLVED that the City and Consultant do hereby mutually agree as follows: 1. Consultant's Duties A. General Duties Consultant shall perform all of the services described on the attached Exhibits A-1 and A- 2, Paragraph 7, entitled "General Duties"; and, B. Scope of Work and Schedule In the process of performing and delivering said "General Duties", Consultant shall also perform all of the services described in Exhibits A-1 and A-2, Paragraph 8, entitled" Scope of Work and Schedule", not inconsistent with the General Duties, according to, and within the time frames set forth in Exhibits A-1 and A-2, Paragraph 8, and deliver to City such Deliverables as are identified in Exhibits A-I and A-2, Paragraph 8, within the time frames set forth therein, time being of the essence of this agreement. The General Duties and the work and deliverables required in the Scope of Work and Schedule shall be herein referred to as the "Defined Services". Failure to complete the Defined Services by the times indicated does not, except at the option of the City, operate to terminate this Agreement. C. Reductions in Scope of Work City may independently, or upon request from Consultant, from time to time reduce the Defined Services to be performed by the Consultant under this Agreement. Upon doing so, City and Consultant agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with said reduction. D. Additional Services In addition to performing the Defined Services herein set forth, City may require Consultant to perform additional consulting services related to the Defined Services ("Additional Services"), and upon doing so in writing, if they are within the scope of services offered by Consultant, Consultant shall perform same on a time and materials basis at the rates set forth in the "Rate Schedule" in Exhibits A-1 and A-2, Paragraph 11 (C), unless a separate fixed fee is otherwise agreed upon. All compensation for Additional Services shall be paid monthly as billed. E. Standard of Care Consultant, in performing any Services under this agreement, whether Defined Services or Additional Services, shall perform in a manner consistent with that level of care and skill 2 ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations. F. Insurance Consultant represents that it and its agents, staff and subconsultants employed by it in connection with the Services required to be rendered, are protected aga'mst the risk of loss by the following insurance coverages, in the following categories, and to the limits specified, policies of which are issued by Insurance Companies that have a Best's Rating of"A, Class V" or better, or shall meet with the approval of the City: Statutory Worker's Compensation Insurance and Employer's Liability Insurance coverage in the amount set forth in the attached Exhibits A-I and A-2, Paragraph 9. Commercial General Liability Insurance including Business Automobile Insurance coverage in the amount set forth in Exhibits A-1 and A-2, Paragraph 9, combined single limit applied separately to each project away from premises owned or rented by Consultant, which names City as an Additional Insured, and which is primary to any policy which the City may otherwise carry ("Primary Coverage"), and which treats the employees of the City in the same mariner as members of the general public ("Cross-liability Coverage"). Errors and Omissions insurance, in the amount set forth in Exhibits A-1 and A-2, Paragraph 9, unless Errors and Omissions coverage is included in the General Liability policy. G. Proof of Insurance Coverage. (1) Certificates of Insurance. Consultant shall demonstrate proof of coverage herein required, prior to the commencement of services required under this Agreement, by delivery of Certificates of Insurance demonstrating same, and further indicating that the policies may not be canceled without at least thirty (30) days written notice to the Additional Insured. (2) Policy Endorsements Required. In order to demonstrate the Additional Insured Coverage, Primary Coverage and Cross-liability Coverage required under Consultant's Commercial General Liability Insurance Policy, Consultant shall deliver a policy endorsement to the City demonstrating same, which shall be reviewed and approved by the Risk Manager. H. Security for Performance. (1) Performance Bond. In the event that Exhibits A-1 and A-2, at Paragraph 19, indicates the need for 3 Consultant to provide a Performance Bond (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Performance Bond"), then Consultant shall provide to the City a performance bond by a surety and in a form and amount satisfactory to the Risk Manager or City Attorney which mount is indicated in the space adjacent to the term, "Performance Bond", in said Paragraph 19, Exhibits A-1 and A-2. (2) Letter of Credit. In the event that Exhibits A-1 and A-2, at Paragraph 19, indicates the need for Consultant to provide a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Letter of Credit"), then Consultant shall provide to the City an irrevocable letter of credit callable by the City at their unfettered discretion by submitting to the bank a letter, signed by the City Manager, stating that the Consultant is in breach of the terms of this Agreement. The letter of credit shall be issued by a bank, and be in a form and mount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Letter of Credit", in said Paragraph 19, Exhibits A-I and A-2. (3) Other Security In the event that Exhibits A-I and A-2, at Paragraph 19, indicates the need for Consultant to provide security other than a Performance Bond or a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Other Security"), then Consultant shall provide to the City such other security therein listed in a form and amount satisfactory to the Risk Manager or City Attorney. i. Business License Consultant agrees to obtain a business license from the City and to otherwise comply with Title 5 of the Chula Vista Municipal Code. 2. Duties of the City A. Consultation and Cooperation City shall regularly consult the Consultant for the purpose of reviewing the progress of the Defined Services and Schedule therein contained, and to provide direction and guidance to achieve the objectives of this agreement. The City shall permit access to its office facilities, files and records by Consultant throughout the term of the agreement. In addition thereto, City agrees to provide the information, data, items and materials set forth on Exhibits A-1 and A-2, Paragraph 10, and with the further understanding that delay in the provision of these materials beyond 30 days after authorization to proceed, shall constitute a basis for the justifiable delay in the Consultant's performance of this agreement. B. Compensation 4 Upon receipt of a properly prepared billing from Consultant submitted to the City periodically as indicated in Exhibits A-1 and A-2, Paragraph 18, but in no event more frequently than monthly, on the day of the period indicated in Exhibits A-1 and A-2, Paragraph 18, City shall compensate Consultant for all services rendered by Consultant according to the terms and · conditions set forth in Exhibits A-1 and A-2, Paragraph I 1, adjacent to the governing compensation relationship indicated by a "checkmark" next to the appropriate arrangement, subject to the requirements for retention set forth in paragraph 19 of Exhibits A-1 and A-2, and shall compensate Consultant for out of pocket expenses as provided in Exhibits A-1 and A-2, Paragraph 12. All billings submitted by Consultant shall contain sufficient information as to the propriety of the billing to permit the City to evaluate that the amount due and payable thereunder is proper, and shall specifically contain the City's account number indicated on Exhibits A-1 and A-2, Paragraph 18 (C) to be charged upon making such payment. 3. Administration of Contract Each party designates the individuals ("Contract Administrators") indicated on Exhibits A-1 and A-2, Paragraph 13, as said party's contract administrator who is authorized by said party to represent them in the routine administration of this agreement. 4.Term. This Agreement shall terminate when the Parties have complied with all executory provisions hereof. 5. Liquidated Damages The provisions of this section apply ifa Liquidated Damages Rate is provided in Exhibits A-1 and A-2, Paragraph 14. It is acknowledged by both parties that time is of the essence in the completion of this Agreement. It is difficult to estimate the amount of damages resulting from delay in perormance. The parties have used their judgrnent to arrive at a reasonable amount to compensate for delay. Failure to complete the Defined Services within the allotted time period specified in this Agreement shall result in the following penalty: For each consecutive calendar day in excess of the time specified for the completion of the respective work assignment or Deliverable, the consultant shall pay to the City, or have withheld from monies due, the sum of Liquidated Damages Rate provided in Exhibits A-1 and A-2, Paragraph 14 ("Liquidated Damages Rate"). Time extensions for delays beyond the consultant's control, other than delays caused by the City, shall be requested in writing to the City's Contract Administrator, or designee, prior to the expiration of the specified time. Extensions of time, when granted, will be based upon the effect of delays to the work and will not be granted for delays to minor portions of work unless it can be shown that such delays did or will delay the progress of the work. 5 - '7 6. Financiailnterests of Consultant A. Consultant is Designated as ,an FPPC Filer. If Consultant is designated on Exhibits A-1 and A-2, Paragraph 15, as an "FPPC filer", Consultant is deemed to be a "Consultant" for the purposes of the Political Reform Act conflict of interest and disclosure provisions, and shall report economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 15 of Exhibits A-1 and A-2, or if none are specified, then as determined by the City Attorney. B. Decline to Participate. Regardless of whether Consultant is designated as an FPPC Filer, Consultant shall not make, or participate in making or in any way attempt to use Consultant's position to influence a governmental decision in which Consultant knows or has reason to know Consultant has a financial interest other than the compensation promised by this Agreement. C. Search to Determine Economic Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant warrants and represents that Consultant has diligently conducted a search and inventory of Consultant's economic interests, as the term is used in the regulations promulgated by the Fair Political Practices Commission, and has determined that Consultant does not, to the best of Consultant's knowledge, have an economic interest which would conflict with Consultant's duties under this agreement. D. Promise Not to Acquire Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will not acquire, obtain, or assume an economic interest during the term of this Agreement which would constitute a conflict of interest as prohibited by the Fair Political Practices Act. E. Duty to Advise of Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will immediately advise the City Attorney of City if Consultant learns of an economic interest of Consultant's which may result in a conflict of interest for the purpose of the Fair Political Practices Act, and regulations promulgated thereunder. F. Specific Warranties Against Economic Interests. Consultant warrants and represents that neither Consultant, nor Consultant's immediate family members, nor Consultant's employees or agents ("Consultant Associates") presently have any interest, directly or indirectly, whatsoever in any property which may be the subject matter of the Defined Services, or in any property within 2 radial miles fi:om the exterior boundaries of any property which may be the subject matter of the Defined Services, ("Prohibited Interest"), other than as listed in Exhibits A-1 and A-2, Paragraph 15. Consultant further warrants and represents that no promise of future employment, remuneration, consideration, gratuity or other reward or gain has been made to Consultant or Consultant Associates in connection with Consultant's performance of this Agreement. Consultant promises to advise City of any such promise that may be made during the Term of this Agreement, or for 12 months thereafter. Consultant agrees that Consultant Associates shall not acquire any such Prohibited Interest within the Term of this Agreement, or for 12 months after the expiration of this Agreement, except with the written permission of City. Consultant may not conduct or solicit any business for any party to this Agreement, or for any third party which may be in conflict with Consultant's responsibilities under this Agreement, except with the written permission of City. 7. Hold Harmless Consultant shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attorneys' fees) arising out of the conduct of the Consultant, or any agent or employee, subcontractors, or others in connection with the execution of the work covered by this Agreement, except only for those claims arising fi:om the sole negligence or sole willful misconduct of the City, its officers, or employees. Consultant's indemnification shall include any and all costs, expenses, attorneys' fees and liability incurred by the City, its officers, agents, or employees in defendng against such claims, whether the same proceed to judgment or not. Further, Consultant at its own expense shall, upon written request by the City, defend any such suit or action brought against the City, its officers, agents, or employees. Consultants' indemnification of City shall not be limited by any prior or subsequent declaration by the Consultant. 8. Termination of Agreement for Cause If, through any cause, Consultant shall fail to fulfill in a timely and proper manner Consultant's obligations under this Agreement, or if Consultant shall violate any of the covenants, agreements or stipulations of this Agreement, City shall have the right to terminate this Agreement by giving written notice to Consultant of such termination and specifying the effective date thereof at least five (5) days before the effective date of such termination. In that event, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by Consultant shall, at the option of the City, become the property of the 7 City, and Consultant shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused City by Consultant's breach. 9. Errors and Omissions In the event that the City Administrator determines that the Consultants' negligence, errors, or omissions in the performance of work under this Agreement has resulted in expense to City greater than would have resulted if there were no such negligence, errors, omissions, Consultant shall reimburse City for any additional expenses incurred by the City. Nothing herein is intended to limit City's rights under other provisions of this agreement. 10. Termination of Agreement for Convenience of City City may terminate this Agreement at any time and for any reason, by giving specific written notice to Consultant of such termination and specifying the effective date thereof, at least thirty (30) days before the effective date of such termination. In that event, all finished and unfinished documents and other materials described hereinabove shall, at the option of the City, become City's sole and exclusive property. If the Agreement is terminated by City as provided in this paragraph, Consultant shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials to the effective date of such termination. Consultant hereby expressly waives any and all claims for damages or compensation arising under this Agreement except as set forth herein. 11. Assignability The services of Consultant are personal to the City, and Consultant shall not assign any interest in this Agreement, and shall not transfer any interest in the same (whether by assignment or novation), without prior written consent of City. City hereby consents to the assignment of the portions of the Defined Services identified in Exhibits A-1 and A-2, Paragraph 17 to the subconsultants identified thereat as "Permitted Subconsultants". 12. Ownership, Publication, Reproduction and Use of Material All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced under this Agreement shall be the sole and exclusive property of City. No such materials or properties produced in whole or in part under this Agreement shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express written consent of City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such reports, studies, data, statistics, forms or other materials or properties produced under this Agreement. S 13. Independent Contractor City is interested only in the results obtained and Consultant shall perform as an independent contractor with sole control of the manner and means of performing the services required under this Agreement. City maintains the right only to reject or accept Consultant's work products. Consultant and any of the Consultant's agents, employees or representatives are, for all purposes under this Agreement, an independent contractor and shall not be deemed to be an employee of City, and none of them shall be entitled to any benefits to which City employees are entitled including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Therefore, City will not withhold state or federal income tax, social security tax or any other payroll tax, and Consultant shall be solely responsible for the payment of same and shall hold the City harmless with regard thereto. 14. Administrative Claims Requirements and Procedures No suit or arbitration shall be brought arising out of this agreement, against the City unless a claim has first been presented in writing and filed with the City and acted upon by the City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may fi.om time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used by the City in the implementation of same. Upon request by City, Consultant shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 15. Attorney's Fees Should a dispute arising out of this Agreement result in litigation, it is agreed that the prevailing party shall be entitled to a judgment against the other for an amount equal to reasonable attorney's fees and court costs incurred. The "prevailing party" shall be deemed to be the party who is awarded substantially the relief sought. 16. Statement of Costs In the event that Consultant prepares a report or document, or participates in the preparation of a report or document in performing the Defined Services, Consultant shall include, or cause the inclusion of, in said report or document, a statement of the numbers and cost in dollar amounts of all contracts and subcontracts relating to the preparation of the report or document. 17. Miscellaneous A. Consultant not authorized to Represent City Unless specifically authorized in writing by City, Consultant shall have no authority to act 9 as City's agent to bind City to any contractual agreements whatsoever. B. Consultant is Real Estate Broker and/or Salesman If the box on Exhibits A-1 and A-2, Paragraph 16 is marked, the Consultant and/or their principals is/are licensed with the State of California or some other state as a licensed real estate broker or salesperson. Otherwise, Consultant represents that neither Consultant, nor their principals are licensed real estate brokers or salespersons. C. Notices All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified herein as the places of business for each of the designated parties. D. Entire Agreement This Agreement, together with any other written document referred to or contemplated herein, embody the entire Agreement and understanding between the parties relating to the subject matter hereof. Neither this Agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. E. Capacity of Parties Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. F. Governing Law/Venue This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the federal or state courts located in San Diego County, State of California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City of Chula Vista. [end of page. next page is signature page.] 10 Signature Page to Agreement between City of Chula Vista and The Meyers Group for Market Analysis and Absorption Projection Services for the formation of Community Facilities Districts for Public Infrastructure Financing IN WITNESS WHEREOF, City and Consultant have executed this Agreement thereby indicating that they have mad and understood same, and indicate their full and complete consent to its terms: Dated: ,2000 City of Chula Vista by:. Shirley Horton, Mayor Attest: Susan Bigelow, City Clerk Approved as to form: J~ohn~ ~Y Dated: 4( ~d~ I~t..~l The Meyers Group Peter F. Dennehy Managing Director By: Pe~ D~3nJ~qt~y Exhibit List to Agreement (X) Exhibits Ami and A-2. ( ) Exhibit B. 13- Exhibit A-1 to Agreement between City of Chula Vista and The Meyers Group 1. Effective Date of Agreement: 2. City-Related Entity: (X) City of Chula Vista, a municipal chartered corporation of the State of California ( ) Redevelopment Agency of the City of Chula Vista, a political subdivision of the State of California ( ) Industrial Developmem Authority of the City of Chula Vista, a ( ) Other: , ("city") 3. Place of Business for City: City of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910 4. Consultant: The Meyers Group 5. Business Form of Consultant: ( ) Sole Proprietorship ( ) Partnership ( X ) Corporation 6. Place of Business, Telephone and Fax Number of Consultant: 777 South Pacific Coast Highway, Suite 100 Solana Beach, CA 92075 Voice Phone (858) 792-8276 x.224 Fax Phone (858) 792-8944 7. General Duties: A 1-1 A. Consultant shall prepare an appraisal for the Property for the formation of proposed Community Facilities District (CFD). The Property for the purpose of this agreement is generally the area described as follows: San Miguel Ranch per Chula Vista Tract 99-04 (the "Property"). 8. Scope of Work and Schedule: A. Detailed Scope of Work: 1. Materials Review and Loeational Assessment: Review all relevant materials compiled by City to date relative to the Project such as site plans, previous market studies, pertinent development agreements, etc. Information on the infrastructure improvements planned in the Project area will be analyzed in terms of impact on anticipated development in the area. 2. Definition of Competitive Market Area: Consultant shall determine the most appropriate competitive market area for each product type proposed for the subject Project. Determination will be made based on existing and planned transportation routes, natural and man-made geographic boundaries, patterns of housing and commercial growth, historical market perceptions, etc. 3. Economic and Demographic Overview: Consultant shall compile pertinent demographic data for the San Diego County and South Bay area and analyze in the context of future development such as that proposed at the project. Data to be compiled will include population and household growth trends, employment growth and distribution, household income levels, age distribution, etc. Data will be utilized to help determine anticipated future demand potential for residential in the San Diego County market area and in the South Bay market area in particular. 4. Historical Residential Market Data: Consultant shall compile relevant historical data on the San Diego County and South Bay market area for-sale housing markets. Key residential market factors to be examined will include such things as new detached home sales and inventory trends, sales and inventory by price range, sales rates by price range, building permit issuance, resale market trends, etc. 5. Active Residential Project Overview: Consultant shall survey residential projects (detached) in the Project's relevant market area (largely the South Bay). Project information will include market orientation, number of units planned, offered and sold, product types, square footage range, base price ranges, premiums, incentives, amenities, buyer and/or tenant profile, absorption rate, etc. As part of this analysis, Consultant shall evaluate recent price changes and an absorption analysis will be conducted for the sell-out of active projects. 6. Master Planned Community Case Studies: A selected number of similar large-scale residential projects in the San Diego County market area shall be analyzed by the Consultant. Survey will focus on key characteristics (size, setting, product array, unit and price ranges, conununity amenities, buyer profiles), sales performance (yearly sales, marketing characteristics), and other comments. Survey will be used to identify the annual absorption potential and market capture of the San Diego County housing market achieved by other well- segmented master planned communities and will he used to assess sales and market capture projections. 7. Proposed Project Summary and Detailed Project Buildout: Consultant shall compile and analyze information on the most relevant and major planned and proposed residential developments in the competitive market area for the Project. To the extent available, detailed information will be presented for each project (units, timing, pricing, etc.). This analysis will cover all projects in various stages of the approval process in the South Bay market area. Consultant shall prepare a market-dhven buildout projection for the proposed large-scale South Bay residential projects for use in reconciling annual supply and demand projections. 8. Demand Analysis: Consultant shall conduct a statistical demand analysis to quantify the future demand potential for each type of development proposed for the Project (for-sale residential). Demand will be based on a combination of statistical and judgmental methodologies, and will result in annual demand projections over the relevant time frame of the subject project. 9. Conclusions: Consultant shall analyze all of the above information and draw conclusions relative to current and future market trends and assess the potential for the development and absorption of residential uses as proposed for the Project. 10. Absorption Projection: Based on the above analysis, Consultant shall provide written recommendations with regard to anticipated absorption of the proposed residential development in the Project. Absorption estimates will take into account such things as expected market trends, community positioning, infrastructure timing, etc. Absorption estimates will cover the anticipated period to build-out of the community on a quarterly or armual basis (format to be determined with appraiser). 11. Consultant will attend all coordination meetings as needed and work with the project appraiser to ensure the most accurate results. 12. Consultant will provide check prints (as required by the City) of the Market Analysis and Market Projection for comments at the coordination meetings. A-l-3 13. Consultant wilt provide to the City 2 bound and 10 unbound copies of the Market Analysis and Market Projection upon completion. 14. Consultant will provide an electronic version of the absorption study in a format acceptable to City so that the City can make the report available to the underwriter or other party. 15. Consultant will work with the Project owners to obtain the following: Detailed information on current business plan projections for the development (absorption, product pricing and lot or land values), as well as details on proposed residential, timing, phasing, etc). B. Date for Commencement of Consultant Services: (X) Same as Effective Date of Agreement ( ) Other: C. Dates or Time Limits for Delivery of Deliverables: A final market absorption study and market analysis shall be delivered to the City on or before the date specified in writing by the City Engineer, but in no event shall it be completed later than 6 weeks after City Engineer directs consultant to commence the market absorption study. The delivery date may be revised as approved by the City Engineer. D. Date for completion of all Consultant services: Upon completion of the absorption study to the satisfaction of the City's Director of Public Works. 9. Insurance Requirements: (X) Statutory Worker's Compensation Insurance ( ) Employer's Liability Insurance coverage: $1,000,000. (X) Conunercial General Liability Insurance including Automobile Liability: $1,000,000. ( ) Errors and Omissions insurance: None Required (included in Commercial General Liability coverage). ( ) Errors and Omissions Insurance: $250,000 (not included in Commercial General Liability coverage). 10. Materials Required to be Supplied by City to Consultant: N/A A~l-4 1 h Compensation: A. (~) Single Fixed Fee Airangement. For performance of all of the Defined Services by Consultant as herein required, City shall pay a single fixed fee in the mounts and at the times or milestones or for the Deliverables set forth below: Single Fixed Fee Amount: $ , payable as follows: Milestone or Event or Deliverable Amount or Percent of Fixed Fee Delivery ora drag Market Analysis and Market Projection $ Delivery of completed Market Analysis and Market Projection $ which is acceptable to the City's Director of Public Works ) h Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a pementage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans, which must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Pementage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated heroin by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. B. ~ Phased Fixed Fee Arrangement. For the performance of each phase or portion of the Defined Services by Consultant as are separately identified below, City shall pay the fixed fee associated with each phase of Services, in the amounts and at the times or milestones or Deliverables set forth. Consultant shall not commence Services under any Phase, and shall not be entitled to the compensation for a Phase, unless City shall have issued a notice to proceed to Consultant as to said Phase. A-l-5 Phase Fee for Said Phase 1.60 days after "notice to proceed" from City $5,000.00 2. After delivery of completed Market Analysis and $5,000.00 Market Projection which is acceptable to the City's Director of Public Works ( ) 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans, which must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back t~om the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said pementage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. C. ~ Hourly Rate Arrangement For performance of the Defined Services by Consultant as herein required, City shall pay Consultant for the productive hours of time spent by Consultant in the performance of said Services, at the rates or amounts set forth in the Rate Schedule hereinbelow according to the following terms and conditions: · ~0 Not-to-Exceed Limitation on Time and Materials Arrangement Notwithstanding the expenditure by Consultant of time and materials in excess of said Maximum Compensation amount, Consultant agrees that Consultant will perform all of the Defined Services herein required of Consultant for $ including all Materials, and other "reimbursables" ("Maximum Compensation"). · ~ Limitation without Further Authorization on Time and Materials Arrangement At such time as Consultant shall have incurred time and materials equal to ("Authorization Limit"), Consultant shall not be entitled to any addi- tional compensation without further authorization issued in writing and approved by the City. A-l~6 Nothing herein shall preclude Consultant from providing additional Services at Consultant's own cost and expense. Rate Schedule Category of Employee Hourly of Consultant Name Rate 12. Materials Reimbursement Arrangement For the cost of out of pocket expenses incurred by Consultant in the performance of services herein required, City shall pay Consultant at the rates or amounts set forth below: None, the compensation includes all costs. (_O Copies, travel, data purchases, other expenses not to exceed $ : Cost or Rate (O Copies, not to exceed $ : (O Travel, not to exceed $ : O Printing, not to exceed $ : ~) Postage, not to exceed $ : (O Delivery, not to exceed $ : (_) Long Distance Telephone Charges, not to exceed $ ~) Other Actual Identifiable Direct Costs: , not to exceed $ : , not to exceed $ : 13. Contract Administrators: City: , Civil Engineer Consultant: _, A-l-7 14. Liquidated Damages Rate: NA (~) $ per day. (~) Other: 15. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: ~ Not Applicable. Not an FPPC Filer. (~) FPPC Filer (__) Category No. 1. Investments and sources of income. (~) Category No. 2. Interests in real property. O Category No. 3. Investments, interest in real property and sources of income subject to the regulatory, permit or licensing authority of the department. ( ) Category No. 4. Investments in business entities and sources of income which engage in land development, construction or the acquisition or sale of real property. (~) Category No. 5. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the City of Chula Vista (Redevelopment Agency) to provide services, supplies, materials, machinery or equipment. Category No. 6. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the designated employee's department to provide services, supplies, materials, machinery or equipment. ( ) Category No. 7. Business positions. (~) List "Consultant Associates" interests in real property within 2 radial miles of Project Property, if any: 16. ~ Consultant is Real Estate Broker and/or Salesman A-l-8 17. Permitted Subconsultants: n/a 18. Bill Processing: A Consultant's Billing to be submitted for the following period of time: (~) Monthly O Quarterly (~) Other: Completion of Market Analysis and Market Projection B Day of the Period for submission of Consultant's Billing: ( ) First of the Month ~0 15th Day of each Month (~) End of the Month ~ Other: Completion of Market Analysis and Market Projection C City's Account Number: 00891-2721/05091674-800000 19. Security for Performance ( ) Performance Bond, $ (~) Letter of Credit, $ ~) Other Security: Type: Amount: $ Retention. If this space is checked, then notwithstanding other provisions to the contrary requiring the payment of compensation to the Consultant sooner, the City shall be entitled to retain, at their option, either the following "Retention Percentage" or "Retention Amount" until the City determines that the Retention Release Event, listed below, has occurred: (~) Retention Percentage: % ~ Retention Amount: $ Retention Release Event: (~ Completion of All Consultant Services CO Other: A-l-9 Exhibit A-2 to Agreement between City of Chula Vista and The Meyers Group 1. Effective Date of Agreement: 2. City-Related Entity: (X) City of Chula Vista, a municipal chartered corporation of the State of California ( ) Redevelopment Agency of the City of Chula Vista, a political subdivision of the State of California ( ) Industrial Development Authority of the City of Chula Vista, a ( ) Other: , ("City") 3. Place of Business for City: City of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910 4. Consultant: The Meyers Group 5. Business Form of Consultant: ( ) Sole Proprietorship ( ) Partnership ( X ) Corporation 6. Place of Business, Telephone and Fax Number of Consultant: 777 South Pacific Coast Highway, Suite 100 Solana Beach, CA 92075 Voice Phone (858) 792-8276 x.224 Fax Phone (858) 792-8944 7. General Duties: A-2-1 A Consultant shall prepare an appraisal for the Property for the formation of proposed Community Facilities District (CFD). The Property for the purpose of this agreement is generally the area described as follows: Otay Ranch Village 6 per Chula Vista Tract (the "Property"). 8. Scope of Work and Schednle: A. Detailed Scope of Work: I. Materials Review and Locational Assessment: Review all relevant materials compiled by City to date relative to the Project such as site plans, previous market studies, pertinent development agreements, etc. Information on the infrastructure improvements planned in the Project area will be analyzed in terms of impact on anticipated development in the area. 2. Definition of Competitive Market Area: Consultant shall determine the most appropriate competitive market area for each product type proposed for the subject Project. Determination will be made based on existing and planned transportation routes, natural and man-made geographic boundaries, patterns of housing and commercial growth, historical market pemeptions, etc. 3. Economic and Demographic Overview: Consultant shall compile pertinent demographic data for the San Diego County and South Bay area and analyze in the context of future development such as that proposed at the project. Data to be compiled will include population and household growth trends, employment growth and distribution, household income levels, age distribution, etc. Data will be utilized to help determine anticipated future demand potential for residential in the San Diego County market area and in the South Bay market area in particular. 4. Historical Residential Market Data: Consultant shall compile relevant historical data on the San Diego County and South Bay market area for-sale housing markets. Key residential market factors to be examined will include such things as new detached home sales and inventory trends, sales and inventory by price range, sales rates by price range, building permit issuance, resale market trends, etc. 5. Active Residential Project Overview: Consultant shall survey residential projects (detached) in the Project's relevant market area (largely the South Bay). Project information will include market orientation, number of units planned, offered and sold, product types, square footage range, base price ranges, premiums, incentives, amenities, buyer and/or tenant profile, absorption rate, etc. As part of this analysis, Consultant shall evaluate recent price changes and an absorption analysis will be conducted for the sell-out of active projects. 6. Master Planned Community Case Studies: A selected number of similar large-scale residential projects in the San Diego County market area shall be g~-2 -2 analyzed by the Consultant. Survey will focus on key characteristics (size, setting, product array, unit and price ranges, community amenities, buyer profiles), sales performance (yearly sales, marketing characteristics), and other comments. Survey will be used to identify the annual absorption potential and market capture of the San Diego County housing market ackieved by other well- segmented master planned communities and will be used to assess sales and market capture projections. 7. Proposed Proiect Summary and Detailed Proiect Buildout: Consultant shall compile and analyze information on the most relevant and major planned and proposed residential developments in the competitive market area for the Project. To the extent available, detailed information will be presented for each project (units, timing, pricing, etc.). This analysis will cover all projects in various stages of the approval process in the South Bay market area. Consultant shall prepare a market-driven buildout projection for the proposed large-scale South Bay residential projects for use in reconciling annual supply and demand projections. 8. Demand Analysis: Consultant shall conduct a statistical demand analysis to quantify the future demand potential for each type of development proposed for the Project (for-sale residential). Demand will be based on a combination of statistical and judgmental methodologies, and will result in annual demand projections over the relevant time frame of the subject project. 9. Conclusions: Consultant shall analyze all of the above information and draw conclusions relative to current and future market trends and assess the potential for the development and absorption of residential uses as proposed for the Project. 10. Absorption Projection: Based on the above analysis, Consultant shall provide written recommendations with regard to anticipated absorption of the proposed residential development in the Project. Absorption estimates will take into account such things as expected market trends, community positioning, infrastructure timing, etc. Absorption estimates will cover the anticipated period to build-out of the community on a quarterly or annual basis (format to be determined with appraiser). 11. Consultant will attend all coordination meetings as needed and work with the project appraiser to ensure the most accurate results. 12. Consultant will provide check prints (as required by the City) of the Market Analysis and Market Projection for comments at the coordination meetings. 13. Consultant will provide to the City 2 bound and 10 unbound copies of the Market Analysis and Market Projection upon completion. A-2 -3 16. Consultant will provide an electronic version of the absorption study in a format acceptable to City so that the City can make the report available to the underwriter or other party. 17. Consultant will work with the Project owners to obta'm the following: Detailed information on current business plan projections for the development (absorption, product pricing and lot or land values), as well as details on proposed residential, timing, phasing, etc). B. Date for Commencement of Consultant Services: (X) Same as Effective Date of Agreement ( ) Other: C. Dates or Time Limits for Delivery of Deliverables: A final market absorption study and market analysis shall be delivered to the City on or before the date specified in writing by the City Engineer, but in no event shall it be completed later than 6 weeks after City Engineer directs consultant to commence the market absorption study. The delivery date may be revised as approved by the City Engineer. D. Date for completion of all Consultant services: Upon completion of the absorption study to the satisfaction of the City's Director of Public Works. 9. Insurance Requirements: (X) Statutory Worker's Compensation Insurance ( ) Employer's Liability Insurance coverage: $1,000,000. (X) Commercial General Liability Insurance including Automobile Liability: $1,000,000. ( ) Errors and Omissions insurance: None Required (included in Commemial General Liability coverage). ( ) Errors and Omissions Insurance: $250,000 (not included in Commercial General Liability coverage). 10. Materials Required to be Supplied by City to Consultant: N/A 11. Compensation: A. (~ Single Fixed Fee Arrangement. For performance of all of the Defined Services by Consultant as herein required, City shall pay a single fixed fee in the amounts and at the times or milestones or for the Deliverables set forth below: Single Fixed Fee Amount: $ , payable as follows: Milestone or Event or Deliverable Amount or Percent of Fixed Fee Delivery of a draft Market Analysis and Market Projection $ Deliver of completed Market Analysis and Market Projection $ which is acceptable to the City's Director of Public Works ) 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans, which must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back t~om the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. B. ~ Phased Fixed Fee Arrangement. For the performance of each phase or portion of the Defined Services by Consultant as are separately identified below, City shall pay the fixed fee associated with each phase of Services, in the amounts and at the times or milestones or Deliverables set forth. Consultant shall not commence Services under any Phase, and shall not be entitled to the compensation for a Phase, unless City shall have issued a notice to proceed to Consultant as to said Phase. Phase Fee for Said Phase 1.60 days after "notice to proceed" from City $5,000.00 A-2-5 2. After delivery of completed Market Analysis and $5,000.00 Market Projection which is acceptable to the City's Director of Public Works ( ) 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as Interest free loans, which must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention mount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. C. O Hourly Rate Arrangement For performance of the Defined Services by Consultant as herein required, City shall pay Consultant for the productive hours of time spent by Consultant in the performance of said Services, at the rates or amounts set forth in the Rate Schedule hereinbelow according to the following terms and conditions: · ~ Not-to-Exceed Limitation on Time and Materials Arrangement Notwithstanding the expenditure by Consultant of time and materials in excess of said Maximum Compensation amount, Consultant agrees that Consultant will perform all of the Defined Services herein required of Consultant for $ including all Materials, and other "reimbursables" ("Maximum Compensation"). · (~) Limitation without Further Authorization on Time and Materials Arrangement At such time as Consultant shall have incurred time and materials equal to ("Authorization Limit"), Consultant shall not be entitled to any addi- tional compensation without further authorization issued in writing and approved by the City. Nothing herein shall preclude Consultant from providing additional Services at Consultant's own cost and expense. A-2 6 Nothing herein shall preclude Consultant fi.om providing additional Services at Consultant's own cost and expense. Rate Schedule Category of Employee Hourly of Consultant Name Rate 12. Materials Reimbursement Arrangement For the cost of out of pocket expenses incurred by Consultant in the performance of services herein required, City shall pay Consultant at the rates or amounts set forth below: None, the compensation includes all costs. ~) Copies, travel, data purchases, other expenses not to exceed $ : Cost or Rate O Copies, not to exceed $ : ~) Travel, not to exceed $ : ~) Priming, not to exceed $__ (~ Postage, not to exceed $ (O Delivery, not to exceed $__ (~) Long Distance Telephone Charges, not to exceed $ O Other Actual Identifiable Direct Costs: _, not to exceed $ : _, not to exceed $ : 13. Contract Administrators: City:Tom Adler, Civil Engineer Consultant: Peter Dennehy A-l-7 ~ $ _ per day. (~) Other: 15. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: ~ Not Applicable. Not an FPPC Filer. (~) FPPC Filer Category No. 1. Investments and sources of income. Category No. 2. Interests in real property. Category No. 3, Investments, interest in real property and sources of income subject to the regulatory, permit or licensing authority of the department. Category No. 4. Investments in business entities and sources of income which engage in land development, construction or the acquisition or sale of real property. (~) Category No. 5. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the City of Chula Vista (Redevelopment Agency) to provide services, supplies, materials, machinery or equipment. Category No. 6. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the designated employee's department to provide services, supplies, materials, machinery or equipment. (~) Category No. 7. Business positions. (~) List "Consultant Associates" interests in real property within 2 radial miles of Project Property, if any: 16. (~) Consultant is Real Estate Broker and/or Salesman 17. Permitted Subconsultants: A~2-8 lq/a 18. Bill Processing: A Consultant's Billing to be submitted for the following period of time: (__) Monthly (~) Quarterly (~ Other: Completion of Market Analysis and Market Projection B Day of the Period for submission of Consultant's Billing: ( ) First of the Month ~ 15th Day of each Month ~ End of the Month ~) Other: Completion of Market Analysis and Market Projection C City's Account Number: 00891-2721/05091678-800000 19. Security for Performance ~ Performance Bond, $ ~ Letter of Credit, $ ~ Other Security: Type: Amount: $ Retention. If this space is checked, then notwithstanding other provisions to the contrary requiring the payment of compensation to the Consultant sooner, the City shall be entitled to retain, at their option, either the following "Retention Percentage" or "Retention Amount" until the City determines that the Retention Release Event, listed below, has occurred: (~ Retention Percentage: % (~) Retention Amount: $ Retention Release Event: (~0 Completion of All Consultant Services ~0 Other: H:LHOME~ENGINEER~LANDDEVXCFD Consultant AgreementsWIeyers Group2.doc A-2-9 RESOLUTION NO. 2001- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, WAIVING THE CONSULTANT SELECTION PROCESS AND RETAINING THE FIRM OF BRUCE W. HULL & ASSOCIATES AS APPRAISER FOR THE FORMATION OF AN INFRASTRUCTURE FINANCING CFD FOR THE SAN MIGUEL RANCH PROJECT AND THE OTAY RANCH VILLAGE 6 PROJECT BY ENTERING INTO AN AGREEMENT AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT WHEREAS, the City of Chula Vista (the "City") has previously formed nine assessment districts and three community facilities districts for the purpose of providing long term financing of infrastructure improvements to serve the properties within such districts; and WHEREAS, due to the inherent complexity of such land secured financings, the City has historically utilized the same team of consultants to assist the City in structuring such financings and undertaking the due diligence required for such financings; and WHEREAS, Meyers Real Estate Information, Bruce W. Hull & Associates, and McGill Martin Self, have participated as market absorption consultant, appraiser and special tax consultant, respectively for land-secured infrastructure financing transactions in the Otay Ranch territory and Sunbow II; and WHEREAS, it is recommended that the City enter into new agreements with each firm for the San Miguel Ranch CFD and the Otay Ranch Village 6 CFD; and WHEREAS, this agreement will provide that the City Manager may amend said Agreement, with approval as to form from the City Attorney, to include CFD work for other projects, in substantial conformance with the terms of the original Agreement, within a three (3) year period following the date of this Resolution; and WHEREAS, staff recommends that the City's consultant selection process be waived in the interest of providing a team that has demonstrated an ability to work together efficiently on past projects, that possesses extensive knowledge and experience in their respective fields, that has mastered a unique understanding of the development issues in the City of Chula Vista and that has proven its credibility with the bond market by providing support to successful bond offerings for existing projects; and WHEREAS, the total fees paid over the past twelve months to Bruce W. Hull & Associates is $30,000. NOW, THEREFORE, the City Council of the City of Chula Vista, California, does hereby waive the consultant selection process for the reasons set forth above and retain the finn of Bruce W. Hull & Associates as appraiser for the formation of a infrastructure financing CFD for the San Miguel Ranch Project and the Otay Ranch Village Project by entering into an agreement and authorizing the Mayor to execute said agreement. PREPARED BY: APPROVED AS TO FORM BY: John P. Lippitt Director of Public Works City Attorney J:\attorney\Bruce W. Hull 2 Parties and Recital Page(s) Agreement between City of Chula Vista and Bruce W. Hull & Associates, Inc. for appraisal services associated with Community Facilities Districts for Infrastructure Financing This agreement ("Agreement"), dated for the purposes of reference only, and effective as of the date last executed unless another date is otherwise specified in Exhibits A-1 & A- 2, Paragraph 1 is between the City-related entity as is indicated on Exhibits A- 1 & A-2, paragraph 2, as such ("City"), whose business form is set forth on Exhibits A- 1 & A-2, paragraph 3, and the entity indicated on the attached Exhibits A- 1 & A-2, paragraph 4, as Consultant, whose business form is set forth on Exhibits A-1 & A-2, paragraph 5, and whose place of business and telephone numbers are set forth on Exhibits A-1 & A-2, paragraph 6 ("Consultant"), and is made with reference to the following facts: Whereas, the City is desirous of retaining a firm to complete an appraisal of land within Community Facility Districts for the financing of public infrastructure for the San Miguel Ranch Project and Village 6 of the Otay Ranch Project as further defined in Exhibits A-1 and A-2; and, Whereas, Consultant was selected based on the quality of previous similar work performed in association with the City's formation of Community Facilities Districts 99-1 (Otay Ranch) and 2000- 1 (Sunbow II); and, Whereas, the Consultant selection process was waived due to (1) the need to expedite the formation of the proposed Community Facilities Districts, (2) Consultant's familiarity with the community, development costs is essential for the protection of the future bond purchasers, and (3) Consultant's extensive knowledge of property values in this area; and (4) Consultant's fees are comparable to those fees charged for existing financing districts; and Whereas, Consultant warrants and represents that they are experienced and staffed in a maturer such that they are and can prepare and deliver the services required of Consultant to City within the time frames herein provided all in accordance with the terms and conditions of this Agreement; Whereas, the Consultant's Scope of Work as set forth in Exhibits A-1 & A-2 may be amended to include work on additional Community Facility Districts within a three (3) year period following the date of this Agreement, as determined in the sole discretion of the City Manager and approved by the City Attorney. (End of Recitals. Next Page starts Obligatory Provisions.) Obligatory Provisions Pages NOW, THEREFORE, BE IT RESOLVED that the City and Consultant do hereby mutually agree as follows: 1. Consultant's Duties A. General Duties Consultant shall perform all of the services described on the attached Exhibits A-1 and A- 2, Paragraph 7, entitled "General Duties"; and, B. Scope of Work and Schedule In the process of performing and delivering said "General Duties", Consultant shall also perform all of the services described in Exhibits A-1 and A-2, Paragraph 8, entitled" Scope of Work and Schedule", not inconsistent with the General Duties, according to, and within the time frames set forth in Exhibits A-1 and A-2, Paragraph 8, and deliver to City such Deliverables as are identified in Exhibits A-1 and A-2, Paragraph 8, within the time frames set forth therein, time being of the essence of this agreement. The General Duties and the work and deliverables required in the Scope of Work and Schedule shall be herein referred to as the "Defined Services". Failure to complete the Defined Services by the times indicated does not, except at the option of the City, operate to terminate this Agreement. C. Reductions in Scope of Work City may independently, or upon request from Consultant, from time to time reduce the Defined Services to be performed by the Consultant under this Agreement. Upon doing so, City and Consultant agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with said reduction. D. Additional Services In addition to performing the Defined Services herein set forth, City may require Consultant to perform additional consulting services related to the Defined Services ("Additional Services"), and upon doing so in writing, if they are within the scope of services offered by Consultant, Consultant shall perform same on a time and materials basis at the rates set forth in the "Rate Schedule" in Exhibits A-1 and A-2, Paragraph 11 (C), tmless a separate fixed fee is otherwise agreed upon. All compensation for Additional Services shall be paid monthly as billed. E. Standard of Care Consultant, in performing any Services m~der this agreement, whether Defined Services or Additional Services, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions and in similar 2 locations. F. Insurance Consultant represents that it and its agents, staff and subconsultants employed by it in connection with the Services required to be rendered, are protected against the risk of loss by the following insurance coverages, in the following categories, and to the limits specified, policies of winch are issued by Insurance Companies that have a Best's Rating of"A, Class V" or better, or shall meet with the approval of the City: Statutory Worker's Compensation Insurance and Employer's Liability Insurance coverage in the amotmt set forth in the attached Exhibits A-1 and A-2, Paragraph 9. Commercial General Liability Insurance including Business Automobile Insurance coverage in the amount set forth in Exhibits A-1 and A-2, Paragraph 9, combined single limit applied separately to each project away from premises owned or rented by Consultant, winch names City as an Additional Insured, and which is primary to any policy which the City may otherwise carry ("Primary Coverage"), and which treats the employees of the City in the same manner as members of the general public ("Cross-liability Coverage"). Errors and Omissions insurance, in the amount set forth in Exhibits A-1 and A-2, Paragraph 9, unless Errors and Omissions coverage is included in the General Liability policy. G. Proof of Insurance Coverage. (1) Certificates of Insurance. Consultant shall demonstrate proof of coverage herein required, prior to the commencement of services required under this Agreement, by delivery of Certificates of Insurance demonstrating same, and further indicating that the policies may not be canceled without at least thirty (30) days written notice to the Additional Insured. (2) Policy Endorsements Required. In order to demonstrate the Additional Insured Coverage, Primary Coverage and Cross-liability Coverage required under Consultant's Commercial General Liability Insurance Policy, Consultant shall deliver a policy endorsement to the City demonstrating same, which shall be reviewed and approved by the Risk Manager. H. Security for Performance. (1) Performance Bond. In the event that Exhibits A-1 and A-2, at Paragraph 19, indicates the need for Consultant to provide a Performance Bond (indicated by a check mark in the parenthetical space 3 immediately preceding the subparagraph entitled "Performance Bond"), then Consultant shall provide to the City a performance bond by a surety and in a form and mount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Performance Bond", in said Paragraph 19, Exhibits A-1 and A-2. (2) Letter of Credit. In the event that Exhibits A-1 and A-2, at Paragraph 19, indicates the need for Consultant to provide a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Letter of Credit"), then Consultant shall provide to the City an irrevocable letter of credit callable by the City at their unfettered discretion by submitting to the bank a letter, signed by the City Manager, stating that the Consultant is in broach of the terms of this Agreement. The letter of credit shall be issued by a bank, and be in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Letter of Credit", in said Paragraph 19, Exhibits A-1 and A-2. (3) Other Security In the event that Exhibits A-1 and A-2, at Paragraph 19, indicates the need for Consultant to provide security other than a Performance Bond or a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Other Security"), then Consultant shall provide to the City such other security therein listed in a form and amount satisfactory to the Risk Manager or City Attorney. I. Business License Consultant agrees to obtain a business license from the City and to otherwise comply with Title 5 of the Chula Vista Municipal Code. 2. Duties of the City A. Consultation and Cooperation City shall regularly consult the .Consultant for the purpose of reviewing the progress of the Defined Services and Schedule therein contained, and to provide direction and guidance to achieve the objectives of this agreement. The City shall permit access to its office facilities, files and records by Consultant throughout the term of the agreement. In addition thereto, City agrees to provide the information, data, items and materials set forth on Exhibits A-1 and A-2, Paragraph 10, and with the further understanding that delay in the provision of these materials beyond 30 days after authorization to proceed, shall constitute a basis for the justifiable delay in the Consultant's performance of this agreement. B. Compensation Upon receipt of a properly prepared billing from Consultant submitted to the City 4 periodically as indicated in Exhibits A-1 and A-2, Paragraph 18, but in no event more frequently than monthly, on the day of the period indicated in Exhibits A-1 and A-2, Paragraph 18, City shall compensate Consultant for all services rendered by Consultant according to the terms and conditions set forth in Exhibits A-1 and A-2, Paragraph 11, adjacent to the governing compensation relationship indicated by a "checkmark" next to the appropriate arrangement, subject to the requirements for retention set forth in paragraph 19 of Exhibits A- 1 and A-2, and shall compensate Consultant for out of pocket expenses as provided in Exhibits A-1 and A-2, Paragraph 12. All billings submitted by Consultant shall contain sufficient information as to the propriety of the billing to permit the City to evaluate that the amount due and payable thereunder is proper, and shall specifically contain the City's account number indicated on Exhibits A-1 and A-2, Paragraph 18 (C) to be charged upon making such payment. 3. Administration of Contract Each party designates the individuals ("Contract Administrators") indicated on Exhibits A-1 and A-2, Paragraph 13, as said party's contract administrator who is authorized by said party to represent them in the routine administration of this agreement. 4.Term. This Agreement shall terminate when the Parties have complied with all executory provisions hereof. 5. Liquidated Damages The provisions of this section apply ifa Liquidated Damages Rate is provided in Exhibits A-1 and A-2, Paragraph 14. It is acknowledged by both parties that time is of the essence in the completion of this Agreement. It is difficult to estimate the amount of damages resulting from delay in perormance. The parties have used their judgment to arrive at a reasonable amount to compensate for delay. Failure to complete the Defined Services within the allotted time period specified in this Agreement shall result in the following penalty: For each consecutive calendar day in excess of the time specified for the completion of the respective work assignment or Deliverable, the consultant shall pay to the City, or have withheld from monies due, the sum of Liquidated Damages Rate provided in Exhibits A-1 and A-2, Paragraph 14 ("Liquidated Damages Rate"). Time extensions for delays beyond the consultant's control, other than delays caused by the City, shall be requested in writing to the City's Contract Administrator, or designee, prior to the expiration of the specified time. Extensions of time, when granted, will be based upon the effect of delays to the work and will not be granted for delays to minor portions of work unless it can be shown that such delays did or will delay the progress of the work. 5 [3-7 6. Financial Interests of Consultant A. Consultant is Designated as an FPPC Filer. If Consultant is designated on Exhibits A-1 and A-2, Paragraph 15, as an "FPPC filer", Consultant is deemed to be a "Consultant" for the purposes of the Political Reform Act conflict of interest and disclosure provisions, and shall report economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 15 of Exhibits A-I and A-2, or if none are specified, then as determined by the City Attorney. B. Decline to Participate. Regardless of whether Consultant is designated as an FPPC Filer, Consultant shall not make, or participate in making or in any way attempt to use Consultant's position to influence a governmental decision in which Consultant knows or has reason to know Consultant has a financial interest other than the compensation promised by this Agreement. C. Search to Determine Economic Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant warrants and represents that Consultant has diligently conducted a search and inventory of Consultant's economic interests, as the term is used in the regulations promulgated by the Fair Political Practices Commission, and has determined that Consultant does not, to the best of Consultant's knowledge, have an economic interest which would conflict with Consultant's duties under this agreement. D. Promise Not to Acquire Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will not acquire, obtain, or assume an economic interest during the term of this Agreement which would constitute a conflict of interest as prohibited by the Fair Political Practices Act. E. Duty to Advise of Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will immediately advise the City Attorney of City if Consultant learns of an economic interest of Consultant's which may result in a conflict of interest for the purpose of the Fair Political Practices Act, and regulations promulgated thereunder. F. Specific Warranties Against Economic Interests. 6 Consultant warrants and represents that neither Consultant, nor Consultant's immediate family members, nor Consultant's employees or agents ("Consultant Associates") presently have any interest, directly or indirectly, whatsoever in any property which may be the subject matter of the Defined Services, or in any property within 2 radial miles fi.om the exterior boundaries of any · property which may be the subject matter of the Defined Services, ("Prohibited Interest"), other than as listed in Exhibits A-1 and A-2, Paragraph 15. Consultant further warrants and represents that no promise of future employment, remuneration, consideration, gratuity or other reward or gain has been made to Consultant or Consultant Associates in connection with Consultant's performance of this Agreement. Consultant promises to advise City of any such promise that may be made during the Term of this Agreement, or for I2 months thereafter. Consultant agrees that Consultant Associates shall not acquire any such Prohibited Interest within the Term of this Agreement, or for 12 months after the expiration of this Agreement, except with the written permission of City. Consultant may not conduct or solicit any business for any party to this Agreement, or for any third party which may be in conflict with Consultant's responsibilities under this Agreement, except with the written permission of City. 7. Hold Harmless Consultant shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers and employees, fi.om and against all claims for damages, liability, cost and expense (including without limitation attorneys' fees) arising out of the conduct of the Consultant, or any agent or employee, subcontractors, or others in connection with the execution of the work covered by this Agreement, except only for those claims arising from the sole negligence or sole willful misconduct of the City, its officers, or employees. Consultant's indemnification shall include any and all costs, expenses, attorneys' fees and liability incurred by the City, its officers, agents, or employees in defendng against such claims, whether the same proceed to judgment or not. Further, Consultant at its own expense shall, upon written request by the City, defend any such suit or action brought against the City, its officers, agents, or employees. Consultants' indemnification of City shall not be limited by any prior or subsequent declaration by the Consultant. 8. Termination of Agreement for Cause If, through any cause, Consultant shall fail to fulfill in a timely and proper manner Consultant's obligations under this Agreement, or if Consultant shall violate any of the covenants, agreements or stipulations of this Agreement, City shall have the right to terminate this Agreement by giving written notice to Consultant of such termination and specifying the effective date thereof at least five (5) days before the effective date of such termination. In that event, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by Consultant shall, at the option of the City, become the property of the ? City, and Consultant shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused City by Consultant's breach. 9. Errors and Omissions In the event that the City Administrator determines that the Consultants' negligence, errors, or omissions in the performance of work under this Agreement has resulted in expense to City greater than would have resulted if there were no such negligence, errors, omissions, Consultant shall reimburse City for any additional expenses incurred by the City. Nothing herein is intended to limit City's rights under other provisions of this agreement. 10. Termination of Agreement for Convenience of City City may terminate this Agreement at any time and for any reason, by giving specific written notice to Consultant of such termination and specifying the effective date thereof, at least thirty (30) days before the effective date of such termination. In that event, all finished and unfinished documents and other materials described hereinabove shall, at the option of the City, become City's sole and exclusive property. If the Agreement is terminated by City as provided in this paragraph, Consultant shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials to the effective date of such termination. Consultant hereby expressly waives any and all claims for damages or compensation arising under this Agreement except as set forth herein. 11. Assignability The services of Consultant are personal to the City, and Consultant shall not assign any interest in this Agreement, and shall not transfer any interest in the same (whether by assignment or novation), without prior written consent of City. City hereby consents to the assignment of the portions of the Defined Services identified in Exhibits A-1 and A-2, Paragraph 17 to the subconsultants identified thereat as "Permitted Subconsultants". 12. Ownership, Publication, Reproduction and Use of Material All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced under this Agreement shall be the sole and exclusive property of City. No such materials or properties produced in whole or in part under this Agreement shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express written consent of City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such reports, studies, data, statistics, forms or other materials or properties produced under this Agreement. 8 13. Independent Contractor City is interested only in the results obtained and Consultant shall perform as an independent contractor with sole control of the manner and means of performing thc services required under this Agreement. City maintains the right only to reject or accept Consultant's work products. Consultant and any of the Consultant's agents, employees or representatives are, for all purposes under this Agreement, an independent contractor and shall not be deemed to be an employee of City, and none of them shall be entitled to any benefits to which City employees are entitled including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Therefore, City will not wittthold state or federal income tax, social security tax or any other payroll tax, and Consultant shall be solely responsible for the payment of same and shall hold the City harmless with regard thereto. 14. Administrative Claims Requirements and Procedures No suit or arbitration shall be brought arising out of this agreement, against the City unless a claim has first been presented in writing and filed with the City and acted upon by the City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may from time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used by the City in the implementation of same. Upon request by City, Consultant shall m.eet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 15. Attorney's Fees Should a dispute arising out of this Agreement result in litigation, it is agreed that the prevailing party shall be entitled to a judgment against the other for an amount equal to reasonable attorney's fees and court costs incurred. The "prevailing party" shall be deemed to be the party who is awarded substantially the relief sought. 16. Statement of Costs In the event that Consultant prepares a report or document, or participates in the preparation of a report or document in performing the Defined Services, Consultant shall include, or cause the inclusion of, in said report or document, a statement of the numbers and cost in dollar amounts of all contracts and subcontracts relating to the preparation of the report or document. 17. Miscellaneous A. Consultant not authorized to Represent City Unless specifically authorized in writing by City, Consultant shall have no authority to act 9 as City's agent to bind City to any contractual agreements whatsoever. B. Consultant is Real Estate Broker and/or Salesman If the box on Exhibits A-1 and A-2, Paragraph 16 is marked, the Consultant and/or their principals is/are licensed with the State of California or some other state as a licensed real estate broker or salesperson. Otherwise, Consultant represents that neither Consultant, nor their principals are licensed real estate brokers or salespersons. C. Notices All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified herein as the places of business for each of the designated parties. D. Entire Agreement This Agreement, together with any other written document referred to or contemplated herein, embody the entire Agreement and understanding between the parties relating to the subject matter hereof. Neither this Agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. E. Capacity of Parties Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. F. Governing Law/Venue This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the federal or state courts located in San Diego County, State of California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City of Chula Vista. [end of page. next page is signature page.] Signature Page to Agreement between City of Chula Vista and Brace W. Hull & Associates, Inc. For Appraisal Services Associated with the ffmation of Community Facilities Districts for Public Irrkastmcture Financing IN WITNESS WHEREOF, City and Consultant have executed this Agreement thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: Dated: ., 2000 City of Chula Vista by:. Shirley Horton, Mayor Attest: Susan Bigelow, City Clerk Approved as to form: John~[.bl~al~nj, City Attomey~ Dated: Brace W. Hull & AssociatSs, Inc. By: t~ Exhibit List to Agreement ( X ) Exhibits A-1 and A-2. ) Exhibit B. 13_ Exhibit A-1 to Agreement between City of Chula Vista and Brace W. Hull & Associates, Inc. h Effective Date of Agreemem: 2. City-Related Emity: ("City") (X) City of Chula Vista, a municipal chartered corporation of the State of California ( ) Redevelopment Agency of the City of Chula Vista, a political subdivision of the State of California ( ) Industrial Development Authority of the City of Chula Vista, a ( ) Other: 3. Place of Business for City: City of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910 4. Consultant: Brace W. Hull & Associates 5. Business Form of Consultant: ( ) Sole Proprietorship ( ) Partnership (x) Corporation 6. Place of Business, Telephone and Fax Number of Consultant: 115 E. Second Street, Suite t 00 Tustin, California 92780 Voice Phone (949)-581-2194 Fax Phone (949) 581-2198 7. General Duties: A. Consultant shall prepare an appraisal for the Property for the formation of proposed Al-1 Community Facilities District (CFD). The Property for the purpose of this agreement is generally the area described as follows: San Miguel Ranch per Chula Vista Tract 99-04 (the "Property"). 8. Scope of Work and Schedule: A. Detailed Scope of Work The appraisal will provide an estimate of current market value of the Property, which is defined as follows: "The most probable price in terms of money which a property should bring in competitive and open market under all conditions requisite to a fair sale, the buyer and, seller each acting prudently, knowledgeably, assuming the price is not affected by undue stimulus." Implicit in this definition is the consummation o£sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. Buyer and seller are typically motivated; 2. Both parties are well informed or well advised, and each acting in what he or she considers his/her best interest; 3. A reasonable time is allowed for exposure in the open market; 4. Payment is made in cash or its equivalent; 5. Financing, if any, is on terms generally available in the community as of the specified date and is typical for the property type in its locale; and 6. The price represents a normal consideration for the property sold, unaffected by special financing amounts and/or terms, services, fees, costs or credits incurred in the transaction." Real Estate Terminology, AIREA, SREA, edited by Byrl N. Boyce, Copyright 1981, Publisher - Ballinger, Page 160. The value estimate will reflect the fee simple interest of the subject property, as of the date of value, subject to the CFD liens. The value estimate will reflect actual conditions of the property, including appropriate deductions for any deferred maintenance; income deficiencies, if any; and any other unfavorable conditions affecting its current market value. Consultant will attend, if needed, all coordination meetings scheduled by the City. Consultant will provide periodic drafts (as required by the City) of the appraisal for Al-2 comments at the coordination meetings Consultant will provide 12 bound copies of the appraisal upon completion Consultant will provide an electronic version of the appraisal in a format acceptable to the City so that the City can make the report available to the underwriter or other party. Consultant will work with the Property Owner to obtain the following: - Legal description and recent title or preliminary title report; - Site development costs including backbone infrastructure cost and builder improvement costs per planning area or tract; - Documentation regarding purchase of the subject property in the last three years; or pending sale of the property documented by purchase agreement and/or escrow instructions; and - Property inspection. B. Date for Commencement of Consultant Services: (X) Same as Effective Date of Agreement ( ) Other: C. Dates or Time Limits for Delivery of Deliverables: A draft appraisal shall be delivered on or before June 12, 2001. A final appraisal shall be delivered on or before July 15, 2001. These time frames may be revised as approved by the City Engineer. D. Date for completion of all Consultant services: Upon completion of the appraisal to the satisfaction of the City's Director of Public Works. 9. Insurance Requirements: (X) Statutory Worker's Compensation Insurance ( ) Employer's Liability Insurance coverage: $1,000,000. (X) Commemial General Liability Insurance: $1,000,000. ( ) Errors and Omissions insurance: None Required (included in Commercial General Liability coverage). (X) Errors and Omissions Insurance: $250,000 (not included in Commercial General Liability coverage). 10. Materials Required to be Supplied by City to Consultant: Consultant shall work with the ACI Sunbow, LLC Contact Person (Bill Hamlin) to Al-3 obtain all needed material for completion of the appraisal. 11. Compensation: A. ~ Single Fixed Fee Arrangement. For performance of all of the Defined Services by Consultant as herein required, City shall pay a single fixed fee in the amounts and at the times or milestones or for the Deliverables set forth below: Single Fixed Fee Amount: $30,000, payable as follows: Milestone or Event or Deliverable Amount or Percent of Fixed Fee Acceptance by City Director of Public Works of draft appraisal $15,000 Acceptance by City Director of Public Works of Final appraisal $15,000 (_J h Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest flee loans which must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. B. (~ Phased Fixed Fee Arrangement. For the performance of each phase or portion of the Defined Services by Consultant as are separately identified below, City shall pay the fixed fee associated with each phase of Services, in the amounts and at the times or milestones or Deliverables set forth. Consultant shall not commence Services under any Phase, and shall not be entitled to the compensation for a Phase, unless City shall have issued a notice to proceed to Consultant as to said Phase. Al-4 Phase Fee for Said Phase h $ 2. $ 3. $ h Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans, which must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back fi.om the compensation due for that phase. Percentage of completion ora phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. C. ~0 Hourly Rate Arrangement For performance of the Defined Services by Consultant as herein required, City shall pay Consultant for the productive hours of time spent by Consultant in the performance of said Services, at the rates or amounts set forth in the Rate Schedule hereinbelow according to the following terms and conditions: (~) Not-to-Exceed Limitation on Time and Materials Arrangement Notwithstanding the expenditure by Consultant of time and materials in excess of said Maximum Compensation amount, Consultant agrees that Consultant will perform all of the Defined Services herein required of Consultant for $ including all Materials, and other "reimbursables" ("Maximum Compensation"). ~) Limitation without Further Authorization on Time and Materials Arrangement Al-5 At such time as Consultant shall have incurred time and materials equal to ("Authorization Limit"), Consultant shall not be entitled to any additional compensation without further authorization issued in writing and approved by the City. Nothing herein shall preclude Consultant from providing additional Services at Consultant's own cost and expense. Rate Schedule Category of Employee Hourly of Consultant Name Rate 12. Materials Reimbursement Arrangement For the cost of out of pocket expenses incurred by Consultant in the performance of services herein required, City shall pay Consultant at the rates or mounts set forth below: ~ None, the compensation includes all costs. Cost or Rate O Reports, not to exceed $__ O Copies, not to exceed $ : ~) Travel, not to exceed $ : (~) Printing, not to exceed $ O Postage, not to exceed $__ O Delivery, not to exceed $__ ~) Long Distance Telephone Charges, not to exceed $ C) Other Actual Identifiable Direct Costs: , not to exceed $ : , not to exceed $ : 13. Contract Administrators: City: Tom Adler, Civil Engineer Al-6 Consultant: Bruce Hull 14. Liquidated Damages Rate: N/A ~ $ per day. ~ Other: 15. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: ~ Not Applicable. Not an FPPC Filer. (~ FPPC Filer Category No. 1. Investments and sources of income. (_) Category No. 2. Interests in real property. Category No. 3. Investments, interest in real property and sources of income subject to the regulatory, permit or licensing authority of the department. (0 Category No. 4. Investments in business entities and sources of income which engage in land development, construction or the acquisition or sale of real property. Category No. 5. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the City of Chula Vista (Redevelopment Agency) to provide services, supplies, materials, machinery or equipment. Category No. 6. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the designated employee's department to provide services, supplies, materials, machinery or equipment. Category No. 7. Business positions. O List "Consultant Associates" interests in real property within 2 radial miles of Project Property, if any: A1 ? 16. O Consultant is Real Estate Broker and/or Salesman 17. Permitted Subconsultants: n/a 18. Bill Processing: A Consultant's Billing to be submitted for the following period of time: ~ Monthly (~) Quarterly ~ Other: Completion of appraisal B Day of the Period for submission of Consultant's Billing: ~ First of the Month ~ 15th Day of each Month (_~ End of the Month ~) Other: Completion of appraisal C City's Account Number: 00891-2721/05091674-800000 19. Security for Performance ~) Performance Bond, $_ (0 Letter of Credit, $ (0 Other Security: Type: Amount: $ (_) Retention. If this space is checked, then notwithstanding other provisions to the contrary requiring the payment of compensation to the Consultant sooner, the City shall be entitled to retain, at their option, either the following "Retention Pementage" or "Retention Amount" until the City determines that the Retention Release Event, listed below, has occurred: (0 Retention Pementage: % ~) Retention Amount: $ Retention Release Event: (O Completion of All Consultant Services (_)Other: Exhibit A-2 to Agreement between City of Chula Vista and Brace W. Hull & Associates, Inc. h Effective Date of Agreement: 2. City-Related Entity: (X) City of Chula Vista, a municipal chartered corporation of the State of Cahfomia ( ) Redevelopment Agency of the City of Chula Vista, a political subdivision of the State of California ( ) Industrial Development Authority of the City of Chula Vista, a ( ) Other: _, ("City") 3. Place of Business for City: City of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910 4. Consultant: Brace W. Hull & Associates 5. Business Form of Consultant: ( ) Sole Proprietorship ( ) Partnership (x) Corporation 6. Place of Business, Telephone and Fax Number of Consultant: 115 E. Second Street, Suite 100 Tustin, California 92780 Voice Phone (949)-581-2194 Fax Phone (949) 581-2198 7. General Duties: A. Consultant shall prepare an appraisal for the Property for the formation of proposed Community Facilities Districts (CFDs). The Property for the purpose of this agreement is generally the area described as follows: Otay Ranch, Village 6 per A2-1 Chula Vista Tract No. (the "Property"). 8. Scope of Work and Schedule: A. Detailed Scope of Work The appraisal will provide an estimate of current market value of the Property, which is defined as follows: "The most probable price in terms of money which a property should bring in competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently, knowledgeably, assuming the price is not affected by undue stimulus." Implicit in this definition is the consummation of sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 7. Buyer and seller are typically motivated; 8. Both parties are well informed or well advised, and each acting in what he or she considers his/her best interest; 9. A reasonable time is allowed for exposure in the open market; 10. Payment is made in cash or its equivalent; 11. Financing, if any, is on terms generally available in the community as of the specified date and is typical for the properly type in its locale; and 12. The price represents a normal consideration for the property sold, unaffected by special financing amounts and/or terms, services, fees, costs or credits incurred in the transaction." Real Estate Terminology, AIREA, SREA, edited by Byrl N. Boyce, Copyright 1981, Publisher - Ballinger, Page 160. The value estimate will reflect the fee simple interest of the subject property, as of the date of value, subject to the CFD liens. The value estimate will reflect actual conditions of the property, including appropriate deductions for any deferred maintenance; income deficiencies, if any; and any other unfavorable conditions affecting its current market value. Consultant will attend, if needed, all coordination meetings scheduled by the City. Consultant will provide periodic drafts (as required by the City) of the appraisal for comments at the coordination meetings Consultant will provide 12 bound copies of the appraisal upon completion Consultant will provide an electronic version of the appraisal in a format acceptable to the City so that the City can make the report available to the underwriter or other party. A2 -2 Consultant will work with the Property Owner to obtain the following: - Legal description and recent title or preliminary title report; - Site development costs including backbone infrastructure cost and builder improvement costs per planning area or tract; - Documentation regarding purchase of the subject property in the last three years; or pending sale of the property documented by purchase agreement and/or escrow instructions; and - Property inspection. B. Date for Commencement of Consultant Services: (X) Same as Effective Date of Agreement ( ) Other: C. Dates or Time Limits for Delivery of Deliverables: A draft appraisal shall be delivered on or before June 12, 2000. A final appraisal shall be delivered on or before July 15, 2000. These time frames may be revised as approved by the City Engineer. D. Date for completion of all Consultant services: Upon completion of the appraisal to the satisfaction of the City's Director of Public Works. 9. Insurance Requirements: (X) Statutory Worker's Compensation Insurance ( ) Employer's Liability Insurance coverage: $1,000,000. (X) Cotnmercial General Liability Insurance: $1,000,000. ( ) Errors and Omissions insurance: None Required (included in Commemial General Liability coverage). (X) Errors and Omissions Insurance: $250,000 (not included in Commercial General Liability coverage). 10. Materials Required to be Supplied by City to Consultant: Consultant shall work with the ACI Sunbow, LLC Contact Person (Bill Hamlin) to obtain all needed material for completion of the appraisal. 11. Compensation: A. ~ Single Fixed Fee Arrangement. A2 3 For performance of all of the Defined Services by Consultant as herein required, City shall pay a single fixed fee in the amounts and at the times or milestones or for the Deliverables set forth below: Single Fixed Fee Amount: $25,000, payable as follows: Milestone or Event or Deliverable Amount or Percent of Fixed Fee Acceptance of draft appraisal $12,500 Acceptance of Final appraisal $12,500 (~) 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest fi:ee loans which must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back fi:om the compensation due for that phase. Percentage of completion ora phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. B. O Phased Fixed Fee Arrangement. For the performance of each phase or portion of the Defined Services by Consultant as are separately identified below, City shall pay the fixed fee associated with each phase of Services, in the amounts and at the times or milestones or Deliverables set forth. Consultant shall not commence Services under any Phase, and shall not he entitled to the compensation for a Phase, unless City shall have issued a notice to proceed to Consultant as to said Phase. Phase Fee for Said Phase 1. $ 2. $ 3. $ 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of A2 -4 completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans, which must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention mount or pementage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Pementage of completion ofaphase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. C. (~) Hourly Rate Arrangement For performance of the Defined Services by Consultant as herein required, City shall pay Consultant for the productive hours of time spent by Consultant in the performance of said Services, at the rates or amounts set forth in the Rate Schedule hereinbelow according to the following terms and conditions: (~ Not-to-Exceed Limitation on Time and Materials Arrangement Notwithstanding the expenditure by Consultant of time and materials in excess of said Maximum Compensation amount, Consultant agrees that Consultant will perform all of the Defined Services heroin required of Consultant for $ including all Materials, and other "reimbursables" ("Maximum Compensation"). ~_) Limitation without Further Authorization on Time and Materials Arrangement At such time as Consultant shall have incurred time and materials equal to ("Authorization Limit"), Consultant shall not be entitled to any additional compensation without further authorization issued in writing and approved by the City. Noth/ng herein shall preclude Consultant from providing additional Services at Consultant's own cost and expense. Rate Schedule Category of Employee Hourly of Consultant Name Rate A2 -5 ( ) Hourly rates may increase by 6% for services rendered after [month], 19, if delay in providing services is caused by City. 12. Materials Reimbursement Arrangement For the cost of out of pocket expenses incurred by Consultant in the performance of services herein required, City shall pay Consultant at the rates or amounts set forth below: ~ None, the compensation includes all costs. Cost or Rate ~) Reports, not to exceed $ : O Copies, not to exceed $ : (~ Travel, not to exceed $ : O Printing, not to exceed $ : O Postage, not to exceed $ : (~ Delivery, not to exceed $ : ~) Long Distance Telephone Charges, not to exceed $ O Other Actual Identifiable Direct Costs: ., not to exceed $ : ., not to exceed $ : 13. Contract Administrators: City: Dino Serafini, Civil Engineer Consultant: Bruce Hull 14. Liquidated Damages Rate: N/A ~ $ per day. Other: 15. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: ~ Not Applicable. Not an FPPC Filer. A2-6 (~ FPPC Filer OCategory No. 1. Investments and sources of income. Category No. 2. Interests in real property. O Category No. 3. Investments, interest in real property and sources of income subject to the regulatory, permit or licensing authority of the department. Category No. 4. Investments in business entities and sources of Income which engage in land development, construction or the acquisition or sale of real property. O Category No. 5. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the City of Chula Vista (Redevelopment Agency) to provide services, supplies, materials, machinery or equipment. Category No. 6. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the designated employee's department to provide services, supplies, materials, machinery or equipment. O Category No. 7. Business positions. (~) List "Consultant Associates" interests in real property within 2 radial miles of Project Property, if any: 16. O Consultant is Real Estate Broker and/or Salesman 17. Permitted Subconsultants: n/a 18. Bill Processing: A Consultant's Billing to be submitted for the following period of time: ~) Monthly A2-7 (~3 Quarterly (~) Other: Completion of appraisal B Day of the Period for submission of Consultant's Billing: ~ First of the Month (~) 15th Day of each Month (~) End of the Month CO Other: Completion of appraisal C City's Account Number: 00891-2721/05091678-800000 19. Security for Performance O Performance Bond, $ O Letter of Credit, $ (O Other Security: Type: Amount: $ (O Retention. If this space is checked, then notwithstanding other provisions to the contrary requiring the payment of compensation to the Consultant sooner, the City shall be entitled to retain, at their option, either the following "Retention Percentage" or "Retention Amount" until the City determines that the Retention Release Event, listed below, has occurred: ~) Retention Percentage: __% ~) Retention Amount: $ Retention Release Event: O Completion of All Consultant Services OOther: H:\HOME~ENGINEER~LANDDEV\CFD Consultant Agreementsq-IULL2.doc A2 - 8 RESOLUTION NO. 2001- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, WAIVING THE CONSULTANT SELECTION PROCESS AND RETAINING THE FIRM OF McGILL MARTIN SELF, INC. AS SPECIAL TAX CONSULTANT FOR THE FORMATION OF AN INFRASTRUCTURE FINANCING CFD FOR THE SAN MIGUEL RANCH PROJECT AND THE OTAY RANCH VILLAGE 6 PROJECT BY ENTERING INTO AN AGREEMENT AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT WHEREAS, the City of Chula Vista (the "City") has previously formed nine assessment districts and three community facilities districts for the purpose of providing long term financing of infrastructure improvements to serve the properties within such districts; and WHEREAS, due to the inherent complexity of such land secured financings, the City has historically utilized the same team of consultants to assist the City in structuring such financings and undertaking the due diligence required for such financings; and WHEREAS, Meyers Real Estate Information, Bruce W. Hull & Associates, and McGill Martin Self, have participated as market absorption consultant, appraiser and special tax consultant, respectively for land-secured infrastructure financing transactions in the Otay Ranch territory and Sunbow II; and WHEREAS, it is recommended that the City enter into new agreements with each firm for the San Miguel Ranch CFD and the Otay Ranch Village 6 CFD; and WHEREAS, this agreement will provide that the City Manager may amend said Agreement, with approval as to form from the City Attorney, to include CFD work for other projects, in substantial conformance with the terms of the original Agreement, within a three (3) year period following the date of this Resolution; and WHEREAS, staff recommends that the City's consultant selection process be waived in the interest of providing a team that has demonstrated an ability to work together efficiently on past projects, that possesses extensive knowledge and experience in their respective fields, that has mastered a unique understanding of the development issues in the City of Chula Vista and that has proven its credibility with the bond market by providing support to successful bond offerings for existing projects; and WHEREAS, the total fees paid over the past twelve months to McGill Martin Self, Inc. is $1, 162,000. NOW, THEREFORE, the City Council of the City of Chula Vista, California, does hereby waive the consultant selection process for the reasons set forth above and retain the firm of McGill Martin Self, Inc. as special tax consultant for the formation of a infrastructure financing CFD for the San Miguel Ranch Project and the Otay Ranch Village Project by entering into an agreement and authorizing the Mayor to execute said agreement. PREPARED BY: APPROVED AS TO FORM BY: John P. Lipp itt Director of Public Works J:\attorney\McGill Martin Parties and Recital Page(s) Agreement between City of Chula Vista and McGill Martin Self, Inc'. for Project Management and Special Tax Consultant Services for Community Facility Districts for Infrastructure Financing This agreement ("Agreement"), dated May 8, 2001 for the purposes of reference only, and effective as of the date last executed unless another date is otherwise specified in Exhibits A-1 & A- 2, Paragraph 1 is between the City-related entity as is indicated on Exhibits A- 1 & A-2, paragraph 2, as such ("City"), whose business form is set forth on Exhibits A-1 & Ao2, paragraph 3, and the entity indicated on the attached Exhibits A- 1 & A-2, paragraph 4, as Consultant, whose business form is set forth on Exhibits A-1 & A-2, paragraph 5, and whose place of business and telephone numbers are set forth on Exhibits A-1 & A-2, paragraph 6 ("Consultant"), and is made with reference to the following facts: Whereas, the City is desirous of retaining a firm to provide project management and special tax consultant services in order to ensure the timely formation of Community Facility Districts for the financing of public infrastructure for the San Miguel Ranch Project and Village 6 of the Otay Ranch Project as further defined in Exhibits A-1 and A-2, respectively; and, Whereas, Consultant was selected based on the quality of previous similar work performed in association with the City's formation of Community Facilities Districts 99-1 (Otay Ranch) tu~d 2000- 1 (Sunbow II); and, Whereas, the Consultant selection process was waived due to (I) the need to expedite the formation of the proposed Community Facilities Districts, (2) Consultant's familiarity with the community, 3) Consultant's extensive experience in the formation of these Districts in the City and (4) Consultant's fees are comparable to those fees charged for existing financing districts; and Whereas, Consultant warrants and represents that they are experienced and staffed in a manner such that they are and can prepare and deliver the services required of Consultant to City within the time frames herein provided all in accordance with the terms and conditions of this Agreement; Whereas, the Consultant's Scope of Work as set forth in Exhibits A-1 & A-2 may be amended to include work on additional Community Facility Districts within a three (3) year period following the date of this Agreement, as determined in the sole discretion of the City Manager and approved by the City Attorney. (End of Recitals. Next Page starts Obligatory Provisions.) 3_ Obligatory Provisions Pages NOW, THEREFORE, BE IT RESOLVED that the City and Consultant do hereby mutually agree as follows: 1. Consultant's Duties A. General Duties Consultant shall perform all of the services described on the attached Exhibit A-1 and A- 2, Paragraph 7, entitled "General Duties"; and, B. Scope of Work and Schedule In the process of performing and delivering said "General Duties", Consultant shall also perform all of the services described in Exhibit A-1 and A-2, Paragraph 8, entitled" Scope of Work and Schedule", not inconsistent with the General Duties, according to, and within the time frames set forth in Exhibit A-1 and A-2, Paragraph 8, and deliver to City such Deliverables as are identified in Exhibit A-1 and A-2, Paragraph 8, within the time frames set forth therein, time being of the essence of this agreement. The General Duties and the work and deliverables required in the Scope of Work and Schedule shall be herein referred to as the "Defined Services". Failure to complete the Defined Services by the times indicated does not, except at the option of the City, operate to terminate this Agreement. C. Reductions in Scope of Work City may independently, or upon request from Consultant, from time to time reduce the Defined Services to be performed by the Consultant under this Agreement. Upon doing so, City and Consultant agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with said reduction. D. Additional Services Ih addition to performing the Defined Services herein set forth, City may require Consultant to perform additional consulting services related to the Defined Services ("Additional Services"), and upon doing so in writing, if they are within the scope of services offered by Consultant, Consultant shall perform same on a time and materials basis at the rates set forth in the "Rate Schedule" in Exhibit A-1 and A-2, Paragraph 12 (C), unless a separate fixed fee is otherwise agreed upon. All compensation for Additional Services shall be paid monthly as billed. E. Standard of Care Consultant, in performing any Services under this agreement, whether Defined Services or Additional Service~, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations. F. Insurance Consultant represents that it and its agents, staff and subconsultants employed by it in connection with the Services required to be rendered, are protected against the risk of loss by the following insurance coverages, in the following categories, and to the limits specified, policies of which are issued by Insurance Comparfies that have a Best's Rating of "A, Class V" or better, or shall meet with the approval of the City: Statutory Worker's Compensation Insurance and Employer's Liability Insurance coverage in the amount set forth in the attached Exhibit A-1 and A-2, Paragraph 10. Commercial General Liability Insurance including Business Automobile Insurance coverage in the amount set forth in Exhibit A-1 and A-2, Paragraph 10, combined single limit applied separately to each project away from premises owned or rented by Consultant, which names City as an Additional Insured, and which is primary to any policy which the City may otherwise carry ("Primary Coverage"), and which treats the employees of the City in the same manner as members of the general public ("Cross-liability Coverage"). Errors and Omissions insurance, in the amount set forth in Exhibit A-1 and A-2, Paragraph 10, unless Errors and Omissions coverage is included in the General Liability policy. G. Proof of Insurance Coverage. (1) Certificates of Insurance. Consultant shall demonstrate proof of coverage herein required, prior to the commencement of services required under this Agreement, by delivery of Certificates of Insuranc? demonstrating same, and further indicating that the policies may not be canceled without at least thirty (30) days written notice to the Additional Insured. (2) Policy Endorsements Required. In order to demonstrate the Additional Insured Coverage, Primary Coverage and Cross-liability Coverage required under Consultant's Commercial General Liability Insurance Policy, Consultant shall deliver a policy endorsement to the City demonstrating same, which shall be reviewed and approved by the Risk Manager. H. Security for Performance. (1) Performance Bond. In the event that Exhibit A-1 and A-2, at Paragraph 20, indicates the need for Consultant to provide a Performance Bond (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Performance Bond"), then Consultant shall provide to the City a performance bond by a surety and in a form and amount satisfactory to the Risk Manager or City Attorney which mount is indicated in the space adjacent to the term, "Performance Bond''~, in said Paragraph 20, Exhibit A-1 and A-2. (2) Letter of Credit. In the event that Exhibit A-1 and A-2, at Paragraph 20, indicates the need for Consultant to provide a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Letter of Credit"), then Consultant shall provide to the City an irrevocable letter of credit callable by the City at their unfettered discretion by submitting to the bank a letter, signed by the City Manager, stating that the Consultant is in breach of the terms of this Agreement. The letter of credit shall be issued by a bank, and be in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Letter of Credit", in said Paragraph 20, Exhibit A-1 and A-2. (3) Other Security In the event that Exhibit A-1 and A-2, at Paragraph 20, indicates the need for Consultant to provide security other than a Performance Bond or a Letter of Credit (indicated by a check mark in the parenthetical space inunediately preceding the subparagraph entitled "Other Security"), then Consultant shall provide to the City such other security therein listed in a form and amount satisfactory to the Risk Manager or City Attorney. I. Business License Consultant agrees to obtain a business license from the City and to otherwise comply with Title 5 of the Chula Vista Municipal Code. 2. Duties of the City A. Consultation and Cooperation City shall regularly consult the Consultant for the purpose of reviewing the progress of the Defined Services and Schedule therein contained, and to provide direction and guidance to achieve the objectives of this agreement. The City shall permit access to its office facilities, files and records by Consultant throughout the term of the agreement. In addition thereto, City agrees 4 to provide the information, data, items and materials set forth on Exhibit A-I and A-2, Paragraph 11, and with the further understanding that delay in the provision of these materials beyond 30 days after authorization to proceed, shall constitute a basis for the justifiable delay in the Consultant's performance of this agreement. B. Compensation Upon receipt of a properly prepared billing from Consultant submitted to the City periodically as indicated in Exhibit A-1 and A-2, Paragraph 19, but in no event more frequently than monthly, on the' day of the period indicated in Exhibit A-I and A-2, Paragraph 19, City shall compensate Consultant for all services rendered by Consultant according to the terms and conditions set forth in Exhibit A-1 and A-2, Paragraph 8, adjacent to the governing compensation relationship indicated by a "checkmark" next to the appropriate arrangement, subject to the requirements for retention set forth in paragraph 20 of Exhibit A-1 and A-2, and shall compensate Consultant for out of pocket expenses as provided in Exhibit A-I and A-2, Paragraph 13. All billings submitted by Consultant shall contain sufficient information as to the propriety of the billing to permit the City to evaluate that the amount due and payable thereunder is proper, and shall specifically contain the City's account number indicated on Exhibit A-1 and A-2, Paragraph 19 (C) to be charged upon making such payment. 3. Administration of Contract Each party designates the individuals ("Contract Administrators") indicated on Exhibit A- l and A-2, Paragraph 14, as said party's contract administrator who is authorized by said party to represent them in the routine administration of this agreement. 4.Term. This Agreement shall temfinate when the Parties have complied with all executory provisions hereof. 5. Liquidated Damages The provisions of this section apply if a Liquidated Damages Rate is provided in Exhibit A- 1 and A-2, Paragraph 15. It is acknowledged by both parties that time is of the essence in the completion of this Agreement. It is difficult to estimate the amount of damages resulting from delay in perormance. The parties have used their judgment to arrive at a reasonable amount to compensate for delay. Failure to complete the Defined Services within the allotted time period specified in this Agreement shall result in the following penalty: For each consecutive calendar day in excess of 5 the time specified for.the completion of the respective work assignment or Deliverable, the consultant shall pay to the City, or have withheld from monies due, the sum of Liquidated Damages Rate provided in Exhibit A-1 and A-2, paragraph 15 ("Liquidated Damages Rate"). Time extensions for delays beyond the consultant's control, other than delays caused by the City, shall be requested in writing to the City's Contract Administrator, or designee, prior to the expiration of the specified time. Extensions of time, when granted, will be based upon the effect of delays to the work and will not be granted for delays to minor portions of work unless it can be shown that such delays did or will delay the progress of the work. 6. Financial Interests of Consultant A. Consultant is Designated as an FPPC Filer. If Consultant is designated on Exhibit A-1 and A-2, Paragraph 16, as an "FPPC filer", Consultant is deemed to be a "Consultant" for the purposes of the Political Reform Act conflict of interest and disclosure provisions, and shall report economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 16 of Exhibit A-1 and A-2, or if none are specified, then as determined by the City Attorney. B. Decline to Participate. Regardless of whether Consultant is designated as an FPPC Filer, Consultant shall not make, or participate in making or in any way attempt to use Consultant's position to influence a governmental decision in which Consultant knows or has reason to know Consultant has a financial interest other than the compensation promised by this Agreement. C. Search to Determine Economic Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant warrants and represents that Consultant has diligently conducted a search and inventory of Consultant's economic interests, as the term is used in the regulations promulgated by the Fair Political Practices Commission, and has determined that Consultant does not, to the best of Consultant's knowledge, have an economic interest which would conflict with Consultant's duties under this agreement. D. Promise Not to Acquire Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will not acquire, obtain, or assume an economic interest during the term of this Agreement which would constitute a conflict of interest as prohibited by the Fair Political Practices Act. E. Duty to Advise of Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will immediately advise the City Attorney of City if Consultant learns of an economic interest of Consultant's which may result in a conflict of interest for the purpose of the Fair Political Practices Act, and regulations promulgated thereunder. F. Specific Warranties Against Economic Interests. Consultant warrants and represents that neither Consultant, nor Consultant's immediate family members, nor Consultant's employees or agents ("Consultant Associates") presently have any interest, directly or indirectly, whatsoever in any property which may be the subject matter of the Defined Services, or in any property within 2 radial miles from the exterior boundaries of any property which may be the subject matter of the Defined Services, ("Prohibited Interest"), other than as listed in Exhibit A-1 and A-2, Paragraph 16. Consultant further warrants and represents that no promise of future employment, remuneration, consideration, gratuity or other reward or gain has been made to Consultant or Consultant Associates in connection with Consultant's performance of this Agreement. Consultant promises to advise City of any such promise that may be made during the Term of this Agreement, or for 12 months thereafter. Consultant agrees that Consultant Associates shall not acquire any such Prohibited Interest within the Term of this Agreement, or for 12 months after the expiration of this Agreement, except with the written permission of City. Consultant may not conduct or solicit any business for any party to this Agreement, or for any third party which may be in conflict with Consultant's responsibilities under this Agreement, except with the written permission of City. 7. Hold.Harmless Consultant shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attorneys' fees) arising out of the conduct of the Consultant, or any agent or employee, subcontractors, or others in connection with the execution of the work covered by this Agreement, except only for those claims arising from the sole negligence or sole willful misconduct of the City, its officers, or employees. Consultant's indemnification shall include any and all costs, expenses, attorneys' fees and liability incurred by the City, its officers, agents, or employees in defendng against such claims, whether the same p~roceed to judgment or not. Further, Consultant at its own expense shall, upon written request ? by the City, defend any such suit or action brought against the City, its officers, agents, or employees. Consultants' indemnification of City shall not be limited by any prior or subsequent declaration by the Consultant. 8. Termination of Agreement for Cause If, through any cause, Consultant shall fail to fulfill in a timely and proper manner Consultant's obligations under this Agreement, or if Consultant shall violate any of the covenants, agreements or stipulations of this Agreement, City shall have the right to terminate this Agreement by g{ving written notice to Consultant of such termination and specifying the effective date thereof at least five (5) days before the effective date of such termination. In that event, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by Consultant shall, at the option of the City, become the property of the City, and Consultant shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused City by Consultant's breach. 9. Errors and Omissions In the event that the City Administrator determines that the Consultants' negligence, errors, or omissions in the performance of work under this Agreement has resulted in expense to City greater than would have resulted if there were no such negligence, errors, omissions, Consultant shall reimburse City for any additional expenses incurred by the City. Nothing herein is intended to limit City's rights under other provisions of this agreement. 10. Termination of Agreement for Convenience of City City may terminate this Agreement at any time and for any reason, by giving specific written notice to Consultant of such termination and specifying the effective date thereof, at least thirty (30) days before the effective date of such termination. In that event, alt finished and unfinished documents and other materials described hereinabove shall, at the option of the City, become City's sole and exclusive property. If the Agreement is terminated by City as provided in this paragraph, Consultant shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials to the effective date of such termination. Consultant hereby expressly waives any and all claims for damages or compensation arising under this Agreement except as set forth herein. 11. Assignability The services of Consultant are personal to the City, and Consultant shall not assign any interest in this Agreement, and shall not transfer any interest in the same (whether by assignment ?r noyation), without prior written consent of City. City hereby consents to the assignment of 8 the portions of the Defined Services identified in Exhibit A-1 and A-2, Paragraph 18 to the subconsultants identified thereat as "Permitted Subconsultants". 12. Ownership, Publication, Reproduction and Use of Material All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced under this Agreement shall be the sole and exclusive property of City. No such materials or properties produced in whole or in part under this Agreement shall be subject to private use, copyrights or patent rights by Consultant in the United States or {n any other country without the express written consent of City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such reports, studies, data, statistics, forms or other materials or properties produced under this Agreement. 13. Independent Contractor City is interested only in the results obtained and Consultant shall perform as an independent contractor with sole control of the manner and means of performing the services required under this Agreement. City maintains the right only to reject or accept Consultant's work products. Consultant and any of the Consultant's agents, employees or representatives are, for all purposes under this Agreement, an independent contractor and shall not be deemed to be an employee of City, and none of them shall be entitled to any benefits to which City employees are entitled including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other Ieave benefits. Therefore, City will not withhold state or federal income tax, social security tax or any other payroll tax, and Consultant shall be solely responsible for the payment of same and shall hold the City harmless with regard thereto. 14. Administrative Claims Requirements and Procedures No suit or arbitration shall be brought arising out of this agreement, against the City unless a claim has first been presented in writing and filed with the City and acted upon by the City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may from time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used by the City in the implementation of same. Upon request by City, Consultant shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 15. Attorney's Fees S~honid a dispute arising out of this Agreement result in litigation, it is agreed that the prevailing 9 party shall be entitle& to a judgment against the other for an amount equal to reasonable attorney's fees and court costs incurred. The "prevailing party" shall be deemed to be the party who is awarded substantially the relief sought. 16. Statement of Costs In the event that Consultant prepares a report or document, or participates in the preparation of a report or document in performing the Defined Services, Consultant shall include, or cause the inclusion of, in said report or document, a statement of the numbers and cost in dollar amounts of all contracts and subcontracts relating to the preparation of the report or document. 17. Miscellaneous A. Consultant not authorized to Represent City Unless specifically authorized in writing by City, Consultant shall have no authority to act as City's agent to bind City to any contractual agreements whatsoever. B. Consultant is Real Estate Broker and/or Salesman If the box on Exhibit A-1 and A-2, Paragraph 17 is marked, the Consultant and/or their principals is/are licensed with the State of California or some other state as a licensed real estate broker or salesperson. Otherwise, Consultant represents that neither Consultant, nor their principals are licensed real estate brokers or salespersons. C. Notices All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified herein as the places of business for each of the designated parties. D. Entire Agreement This Agreement, together with any other written document referred to or contemplated herein, embody the entire Agreement and understanding between the parties relating to the subject matter hereof. Neither this Agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. Z0 E. Capacity o£Parties Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. F. Governing Law/Venue This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the federal or state courts located in San Diego County, State of California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City of Chula Vista. [end of page. next page is signature page.] 13_ Signature Page to Agreement between City of Chula Vista and McGill Martin Self, Inc. for Project Management and Special Tax Consuitant Services for the formation of Community Facilities Districts for Public Infrastructure Financing IN WITNESS WHEREOF, City and Consultant have executed this Agreement thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: Dated: ,2001 City of Chula Vista by:_ Shirley Horton, Mayor Attest: Susan Bigelow, City Clerk Approved as to form: John M. Kaheny, City Attorney Dated: McGi~f, Inc.//~_r"// Michael R. M~cdill, P.E., President By: Exhibit List to Agreement X ) Exhibit A- 1 and A-2. ) Exhibit B. 3_2 Exhibit A-1 to. Agreement between City of Chula Vista and McGill Martin Self, Inc. 1. Effective Date of~Agreement: May 8, 2001 2. City-Related Entity: ("City") (X) City of Chula Vista, a municipal chartered corporation of the State of California ( ) Redevelopment Agency of the City of Chula Vista, a political subdivision of the State of California ( ) Industrial Development Authority of the City of Chula Vista, a ( ) Other: ., 3. Place of Business for City: City of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910 4. Consultant: McGilt Martin Self, Inc. 310 Third Street, Suite B6 Chula Vista, CA 91910 Chula Vista Office (619) 425-1343 Fax Phone (619) 425-1357 5. Business Form of Consultant: ( ) Sole Proprietorship ( ) Partnership ( X ) Corporation 6. Place of Business, Telephone and Fax Number of Consultant: McGill Martin Self, Inc. - 1500 Newell Avenue, Suite 700 A-l-1 Walnut Creek~ California 94596-5180 Voice Phone (925) 988-9188 Fax Phone (925) 988-0170 7. General Duties: Oversee the establis ~h~nent of a Community Facility District (CFD) for the San Miguel Ranch Project per Chula Vista Tract 99-04 (the "Property"). Develop and maintain concise work plans that identify critical issues; Establish lines of responsibilities; Prepare and maintain detailed schedule with milestones; Communicate responsibilities to all parties; Conduct meetings, as needed, to maintain project's schedule; Document project meetings and decisions including agenda, action plans and minutes; Track project progress and issue status reports; Coordinate the work of the financing team; Provide special tax consultant services; Prepare the Engineer's report or Special Tax Report; Prepare the acquisition/financing agreement; Recommend financial district boundaries; Coordinate with property owners within the proposed boundaries; Form financial district; Assist City in the administration of CFD; Prepare tables, exhibits and analyses for the bond sale; Provide CFD audit services and Development Impact Fee (DIF) audit services related to CFD; Review financing documents and prepare staff reports and Council agenda items. 8. Scope of Work and Schedule: A. Detailed Scope of Work: The scope of work tasks have been arranged into three inter-dependent major components as follow: 8.A.1 Project Management, Administration and Coordination The Consultant shall create and maintain a detailed project schedule showing critical path items and important milestones. The Consultant shall conduct meetings as needed to ensure that ail issues having an impact on the project schedule are addressed and acted upon by the responsible party in a timely manner to meet the project schedule. The Consultant shall communicate and coordinate project issues with, but not limited to, all of the following: Developers, private consultants and engineers, city staff, private and public utilities and public financing team. For every meeting, the consultant shall prepare a comprehensive agenda with goals to achieve and an action plan listing the responsible parties to perform. On bi-weekly basis, or as needed, the Consultant shall provide written progress report for the project status versus the project schedule. The Consultant shall ensure compliance with City and State standards and all related documents. A-l-2 The Consultant and team will serve as support to City's staff. As such, the Consultant shall perform all tasks needed to ensure project delivery in a timely manner. The Consultant shall provide written documentation to the City of all issues, meetings, project progress and decisions. The Consultant shall be proactive in identifying issues that impact the project schedule. Once an engineering issue, a policy decision, a financing decision or other issues are identified, the Consultant shall immediately propose an action plan and communicate possible solutions to all responsible parties and follow through on required actions. 8.A.2 Financial District Project Management The Consultant shall prepare all Council Agenda Reports to the satisfaction of the City Engineer. (1) District Formation and Bond Sale The Consultant shall manage and oversee the progress of District Formation and Bond Sale. The Consultant shall prepare the Engineer's report or special tax report, related boundary diagrams, collect available data and shall assist in the development, review and analysis of all related documents including but not limited to the Engineer's Report or Special Tax Report, description of improvements, bid documents, developer reimbursements, cost estimates, cost and quantity audit, compliance with City's Transportation and Public Facilities Development Impact Fee programs, appraisal reports, value-to-lien ratios, assessment and tax formulas (as many as 10 are included), official statement or disclosure documents, bond purchase agreement, continuing disclosure, and resolutions, etc. The Consultant shall ensure compliance with City Policies and State laws. The Consultant shall deliver all final data, information, district diagram, and any other material produced under this agreement in computer digital files compatible with the software utilized by the City within two months of completion of the district or sooner as requested by the City. (2) The Consultant shall document in writing all issues, meetings, project progress and decisions and report thereon to the City Engineer. The Consultant shall monitor the progress of the Public Financing District and take all necessary steps to ensure efficient and timely district formation and sale of bonds. (3) The Consultant shall facilitate the district formation and bond sale by monitoring the progress of district formation, determining critical path tasks, acting as departmental liaison, arranging meetings with City staff, the financial team, engineers, developers, etc., coordinating information between the various parties, and by performing all tasks necessary to ensure efficient, timely formation of the district and bond sale. The Consultant's tasks shall include, but not be limited to, recordation of the boundary A-l-3 map, provide legal notice, perform work associated with the ballot, update and amend the special tax report to reflect final costs, amend and record the CFD boundary map (as necessary), prepare the final special tax report for Council approval, determine the property owner protest, prepare tables and other information required by the Underwriter for inclusion in the Official Statement, prepare and execute a special tax consultant certificate confirming the adequacy of special taxes to meet debt service requirements for the bond issues; assist in the preparation of three party agreements with utility companies, if any; assist in the preparation of the Acquisition/financing Agree, ment and subsequent amendments, if any, for CFD. (4) The Consultant shall attend Council meetings to present the information to Council regarding district formation and bond sale or other related items. The Consultant shall prepare, to the satisfaction of the City Engineer, all Council Agenda reports necessary for completion of district formation and financing. 8.A.3 Audit Services for CFD (1) General The Consultant shall be responsible for providing auditing services for facilities included in CFD. These services shall include, but not be limited to, reviewing the developer's requests for each phased payment for conformity with the Financing Agreements and City policies, State law, certifying that all costs are eligible and payments have been paid to the appropriate contractor to ensure that the acquired improvements are lien free, and summarizing all costs to be reimbursed by the district fund. (2) Review Relevant Contract Documents Consultant shall obtain and review all relevant construction contract documents, the Special Tax Report, the financing agreement, utility agreements, all change orders, the as-built drawings, the resolution of intention, Transportation, Public Facilities, and all other applicable Development Impact Fee programs (DIF), and all other pertinent documents, City policies and laws. (3) Meet with Accounting Staff Consultant shall meet with the developers' and City's accounting staff to identify and confirm the accounting documents that will be required by the Consultant. Such documents shall include, but not be limited to, copies of invoices, canceled checks, change orders, unconditional lien releases, and other documents reflecting the items constructed and their cost. Improvement costs will be summarized bythe consultant as DIF eligible or not (by type of DlF). The Consultant shall document meetings in writing. A-l-4 (4) Perform Audit Services The Consultant shall review each payment request submitted to the City for reimbursement fi.om the District fund. The Consultant shall request additional documentation fi.om the developer as needed. The Consultant shall provide written documentation to the City to include: 1) an analysis comparing the original estimate to the actual cost; 2) a letter of audited cost; 3) an executive summary and audit format; 3) an improvement location map; 4) a City of Chula Vista acceptance letter or other documentation acceptable to the City Engineer; 5) a summary of hard and soft costs prorated as DIF eligible and non DIF eligible; 6) a contract stmunary outlining the original price, change orders, and final contract price; 7) invoices, canceled checks, and unconditional lien releases, as provided by the developer; and 8) certification by the Consultant that the costs are eligible for reimbursement and that the request complies with the Acquisition/Financing Agreements. Requests for payments shall be consistent with the terms of the Financing Agreements for the District. Audit services described above shall be pursuant to the applicable CFD Acquisition/Financing Agreement and other related agreements. The CFD Acquisition/Financing Agreement may list more facilities than can be financed via the CFD. For purposes of this Agreement, the Consultant shall complete the audit of costs (hard and soft costs) for purposes of release of CFD funds in accordance with the CFD Acquisition/Financing Agreement and for purposes of establishing credit. 9. Date for Commencement of Consultant Services: (X) Same as Effective Date of Agreement ( ) Other: C. Dates or Time Limits for Delivery of Deliverables: Consultant shall complete all work excluding audit services one year after the Date of Commencement. Unless otherwise approved by the City Engineer D. Date for completion of all Consultant services: Same as above 10. Insurance Requirements: (X) Statutory Worker's Compensation Insurance (X) Employer's Liability Insurance coverage: $1,000,000. (X) Commercial General Liability Insurance including Automobile Liability: $1,000,000. A-l-5 ( ) Errors.and Omissions insurance: None Required (included in Commercial General Liability coverage). ( ) Errors and Omissions Insurance: $250,000 (not included in Commercial General Liabihty coverage). 11. Materials Required to be Supplied by City to Consultant: N/A 12. Compensation: (~) Single Fixed Fee Arrangement. For performance of all of the Defined Services by Consultant as herein required, City shall pay a single fixed fee in the amounts and at the times or milestones or for the Deliverables set forth below: Single Fixed Fee Amount: $ , payable as follows: (~) Milestone or Event or Deliverable: Milestone, Event or Deliverable: Amount or Pement of Fixed Fee: $ $ $ A. ( ) 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a pementage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest fi'ee loans, which must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the Phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. B. (~ Phased Fixed Fee Arrangement. ~ - For the performance of each phase or portion of the Defined Services by Consultant as are A-l~6 separately identified below, City shall pay the fixed fee associated with each phase of Services, in the amounts and at the times or milestones or Deliverables set forth. Consultant shall not commence Services under any Phase, and shall not be entitled to the compensation for a Phase, unless City shall have issued a notice to proceed to Consultant as to said Phase. Phase Fee for Said Phase 1. $ 2. $ 3. $ ( ) 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans, which must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back fi.om the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. C. (X) Hourly Rate Arrangement For performance of the Defined Services by Consultant as herein required, City shall pay Consultant for the productive hours of time spent by Consultant in the performance of said Services, at the rates or amounts set forth in the Rate Schedule herein below according to the following terms and conditions: · ~ Not-to-Exceed Limitation on Time and Materials Arrangement A-l-7 Notwithstanding the expenditure by Consultant of time and materials in excess of said Maximum Compensation amount, Consultant agrees that Consultant will perform all of the Defined Services herein required of Consultant for $ includ'mg all Materials, and other "reimbursables" ("Maximum Compensation"). · (X) Limitation without Further Authorization on Time and Materials Arrangement At suc~h time as Consultant shall have incurred time and materials equal to $65,000 for project management and special tax consultant, $45,000 for audit services in accordance with this agreement and $7,500 for reimbursement of out of pocket expenses in accordance with paragraph 13 for a total compensation of $117,500, ("Authorization Limit"), Consultant shall not be entitled to any additional compensation without further authorization issued in writing and approved by the City. Nothing herein shall preclude Consultant from providing additional Services at Consultant's own cost and expense. Rate Schedule Category of Employee Hourly of Consultant Name Rate Senior Principal Michael McGill $165.00 Principal Harry Burrowes $150.00 Manager Greg Mattson $130.00 Senior Professional Varies $120.00 Associate Professional Varies $110.00 Assistant Professional Varies $90.00 Drafter, Designer Varies $70.00 Secretary/Clerk/Technical Varies $55.00 13. Materials Reimbursement Arrangement For the cost of out of pocket expenses incurred by Consultant in the performance of services herein required, City shall pay Consultant at the rates or amounts set forth below: (~) None, the compensation includes all costs. ~) Copies, travel, data purchases, other expenses Cost or Rate not to exceed $ : (X) Copies, not to exceed: $7,500 (aggregate total) ~) Travel, not to exceed $__: ( ) Printing, not to exceed $ __: ( ) Postage, not to exceed $__: ( ) Delivery, not to exceed $ : (0 Long Distance Telephone Charges, not to exceed $ A-l-8 (~) Other Actual Identifiable Direct Costs: , not to exceed $ : , not to exceed $ : 14. Contract Administrators: City: Tom Adler, Civil Engineer Consultant: , Greg Mattson, VP McGill Martin Self, Inc. 310 Third Ave, Suite B6 Chula Vista, CA. 92101 Phone (619) 425-1343 FAX 619) 425-1357 15. Liquidated Damages Rate: NA ~ $__ per day. (__) Other: 16. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: (_0 Not Applicable. Not an FPPC Filer. (X) FPPC Filer Category No. 1. Investments and sources of income. Category No. 2. Interests in real property. (X) Category No. 3. Investments, interest in real property and sources of income subject to the regulatory, permit or licensing authority of the department. (X) Category No. 4. Investments in business entities and sources of income which engage in land development, construction or the acquisition or sale of real property. (X) Category No. 5. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the City of Chula Vista (Redevelopment Agency) to provide services, supplies, materials, machinery or equipment. CO Category No. 6. Investments in business entities and sources of income of A-l-9 · the type which, within the past two years, have contracted with the designated employee's department to provide services, supplies, materials, machinery or equipment. ~ Category No. 7. Business positions. ~ List "Consultant Associates" interests in real property within 2 radial miles of Project Property, if any: 17. ~ Consultant is Real Estate Broker and/or Salesman 18. Permitted Subconsultants: 19. Bill Processing: A Consultant's Billing to be submitted for the following period of time: (X) Monthly (The City will use its best effort to remit payments within 30 days) ~) Quarterly (~ Other: Completion of B Day of the Period for submission of Consultant's Billing: (X) First of the Month (~) 15th Day of each Month (~) End of the Month ~_) Other: Completion of Market Analysis and Market Projection C City's Account Number: 00891-2721/05091674-800000 20. Security for Performance (~0 Performance Bond, $. ~ Letter of Credit, $ (~) Other Security: Type:_ Amount: $ g.-1-10 Retention. If this space is checked, then notwithstanding other provisions to the contrary requiring the payment of compensation to the Consultant sooner, the City shall be entitled to retain, at their option, either the following "Retention Percentage" or "Retention Amount" until the City determines that the Retention Release Event, listed below, has occurred: (__) Retention Percentage: % ~ Retention Amount: $ Retention Release Event: (__) Completion of All Consultant Services ( ) Other: A-I-ll Exhibit A-2 to Agreement between City of Chula Vista and McGill Martin Self, Inc. 1. Effective Date of Agreement: May 8, 2001 2. City-Related Entity: ("City") (X) City of Chula Vista, a municipal chartered corporation of the State of California ( ) Redevelopment Agency of the City of Chula Vista, a political subdivision of the State of California ( ) Industrial Development Authority of the City of Chula Vista, a ( ) Other: , 3. Place of Business for City: City of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910 4. Consultant: McGill Martin Self, Inc. 310 Third Street, Suite B6 Chula Vista, CA 91910 Chula Vista Office (619) 425-1343 Fax Phone (619) 425-1357 5. Business Form of Consultant: ( ) Sole Proprietorship ( ) Partnership ( X ) Corporation 6. Place of Business, Telephone and Fax Number of Consultant: McGill Martin Self, Inc. ~ ~ 1500 Newell Avenue, Suite 700 A-2-1 Walnut Creek~ California 94596-5180 Voice Phone (925) 988-9188 Fax Phone (925) 988-0170 7. General Duties: Oversee the establislmaent of a Community Facility District (CFD) for the Otay Ranch Village 6 Project per Chula Vista Tract (the "Property"). Develop and maintain concise work plans that identify critical issues; Establish lines of responsibilities; Prepare and maintain detailed schedule with milestones; Communicate responsibilities to all parties; Conduct meetings, as needed, to maintain project's schedule; Document project meetings and decisions including agenda, action plans and minutes; Track project progress and issue status reports; Coordinate the work of the financing team; Provide special tax consultant services; Prepare the Engineer's report or Special Tax Report; Prepare the acquisition/financing agreement; Recommend financial district boundaries; Coordinate with property owners within the proposed boundaries; Form financial district; Assist City in the administration of the CFD; Prepare tables, exhibits and analyses for the bond sale; Provide CFD audit services and Development Impact Fee (DIF) audit services related to CFD; Review financing documents and prepare staff reports and Council agenda items. 8. Scope of Work and Schedule: A. Detailed Scope of Work: The scope of work tasks have been arranged into three inter-dependent major components as follow: 8.A.I Project Management, Administration and Coordination The Consultant shall create and maintain a detailed project schedule showing critical path items and important milestones. The Consultant shall conduct meetings as needed to ensure that all issues having an impact on the project schedule are addressed and acted upon by the responsible party in a timely manner to meet the project schedule. The Consultant shall ck~mmunicate and coordinate project issues with, but not limited to, all of the following: Developers, private consultants and engineers, city staff, private and public utilities and public financing team. For every meeting, the consultant shall prepare a comprehensive agenda with goals to achieve and an action plan listing the responsible parties to perform. On bi-weekly basis, or as needed, the Consultant shall provide written progress report for the project status versus the project schedule. The Consultant shall ensure compliance with City and State standards and all related documents. The Consultant and team will serve as support to City's staff. As such, the Consultant shall perform all tasks needed to ensure project delivery in a timely manner. The Consultant shall provide written documentation to the City of all issues, meetings, project progress and decisions. The Consultant shall be proactive in identifying issues that impact the project schedule. Once an engineering issue, a policy decision, a financing decision or other issues are identified, the Consultant shall immediately propose an action plan and communicate possible solutions to all responsible parties and follow through on required actions. 8.A.2 Finan,cial District Project Management The Consultant shall prepare all Council Agenda Reports to the satisfaction of the City Engineer. (I) District Formation and Bond Sale The Consultant shall manage and oversee the progress of District Formation and Bond Sale. The Consultant shall prepare the Engineer's report or special tax report, related boundary diagrams, collect available data and shall assist in the development, review and analysis of all related documents including but not limited to the Engineer's Report or Special Tax Report, description of improvements, bid documents, developer reimbursements, cost estimates, cost and quantity audit, compliance with City's Transportation and Public Facilities Development Impact Fee programs, appraisal reports, value-to-lien ratios, assessment and tax formulas (as many as 10 are included), official statement or disclosure documents, bond purchase agreement, continuing disclosure, and resolutions, etc. The Consultant shall ensure compliance with City Policies and State laws. The Consultant shall deliver all final data, information, district diagram, and any other material produced under this agreement in computer digital files compatible with the software utilized by the City within two months of completion of the district or sooner as requested by the City. (2) The Consultant shall document in writing all issues, meetings, project progress and decisions and report thereon to the City Engineer. The Consultant shall monitor the progress of the Public Financing District and take all necessary steps to ensure efficient and timely district formation and sale of bonds. (3) The Consultant shall facilitate the district formation and bond sale by monitoring the progress of district formation, determining critical path tasks, acting as departmental liaison, arranging meetings with City staff, the financial team, engineers, developers, etc., coordinating information between the various parties, and by performing all tasks necessary to ensure efficient, timely formation of the district and bond sale. The Consultant's tasks shall include, but not be limited to, recordation of the boundary map, provide legal notice, perform work associated with the ballot, update and amend the special tax report to reflect final costs, amend and record the CFD boundary map (as necessary), prepare the final special tax report for Council approval, determine the property owner protest, prepare tables and other information required by the g.-2-3 Underwriter for inclusion in the Official Statement, prepare and execute a special tax consultant certificate confirming the adequacy of special taxes to meet debt service requirements for the bond issues; assist in the preparation of three party agreements with utility companies, if any; assist in the preparation of the Acquisition/financing Agreement and subsequent amendments, if any, for CFD. (5) The Consultant shall attend Council meetings to present the information to Council regarding disthct formation and bond sale or other related items. The Consultant shall prepare, to the satisfaction of the City Engineer, all Council Agenda reports necessary for completion of district formation and financing. 8.A.3 Audit Services for CFD (3) General The Consultant shall be responsible for providing auditing services for facilities included in CFD. These services shall include, but not be limited to, reviewing the developer's requests for each phased payment for conformity with the Financing Agreements and City policies, State law, certifying that all costs are eligible and payments have been paid to the appropriate contractor to ensure that the acquired improvements are lien flee, and summarizing all costs to be reimbursed by the district fund. (4) Review Relevant Contract Documents Consultant shall obtain and review all relevant construction contract documents, the Special Tax Report, the financing agreement, utility agreements, all change orders, the as-built drawings, the resolution of intention, Transportation, Public Facilities, and all other applicable Development Impact Fee programs (DIF), and all other pertinent documents, City policies and laws. (3) Meet with Accounting Staff Consultant shall meet with the developers' and City's accounting staffto identify and confirm the accounting documents that will be required by the Consultant. Such documents shall include, but not be limited to, copies of invoices, canceled checks, change orders, unconditional lien releases, and other documents reflecting the items constructed and their cost. Improvement costs will be sununafized by the consultant as DIIc eligible or not (by type of DIF). The Consultant shall document meetings in writing. (4) Perform Audit Services The Consultant shall review each payment request submitted to the City for reimbursement flom the District fund. The Consultant shall request additional A-2-4 documentation from the developer as needed. The Consultant shall provide written documentation to the City to include: 1) an analysis comparing the original estimate to the actual cost; 2) a letter of audited cost; 3) an executive smnmary and audit format; 3) an improvement location map; 4) a City of Chula Vista acceptance letter or other documentation acceptable to the City Engineer; 5) a sununary of hard and soft costs prorated as DIF eligible and non DI~ eligible; 6) a contract summary outlining the original price, change orders, and final contract price; 7) invoices, canceled checks, and unconditional lien releases, as provided by the developer; and 8) certification by the Consultant that the costs are eligible for reimbursement and that the request complies with the AcquisitionfFinancing Agreements. Requests for payments shall be consistent with the terms of the Financing Agreements for the District. Audit services described above shall be pursuant to the applicable CFD Acquisition/Financing Agreement and other related agreements. The CFD Acquisition/Financing Agreement may list more facilities than can be financed via the CFD. For purposes of this Agreement, the Consultant shall complete the audit of costs (hard and soft costs) for purposes of release of CFD funds in accordance with the CFD Acquisition/Financing Agreement and for purposes of establishing DIF credit. 9. Date for Commencement of Consultant Services: (X) Same as Effective Date of Agreement ( ) Other: C. Dates or Time Limits for Delivery of Deliverables: Consultant shall complete all work excluding audit one year after the Date of Commencement. Unless otherwise approved by the City Engineer D. Date for completion of all Consultant services: Same as above 10. Insurance Requirements: (X) Statutory Worker's Compensation Insurance (X) Employer's Liability Insurance coverage: $1,000,000. (X) Commercial General Liability Insurance including Automobile Liability: $1,000,000. ( ) Errors and Omissions insurance: None Required (included in Commercial General Liability coverage). ( ) Errors and Omissions Insurance: $250,000 (not included in Commercial General Liability coverage). 11. Materials Required to be Supplied by City to Consultant: N/A 12. Compensation: (__) Single Fixed Fee Arrangement. For performance of all of the Defined Services by Consultant as herein required, City shall pay a single fixed fee in the amounts and at the times or milestones or for the Deliverables set forth below: Single Fixed Fee Amount: $ , payable as follows: (__) Milestone or Event or Deliverable: Milestone, Event or Deliverable: Amount or Percent of Fixed Fee: $ $ $ A. ( ) 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans, which must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the Phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. B. C~ Phased Fixed Fee Arrangement. For the performance of each phase or portion of the Defined Services by Consultant as are separately identified below, City shall pay the fixed fee associated with each phase of Services, in the amounts and at the times or milestones or Deliverables set forth. Consultant shall not commence Services under any Phase, and shall not be entitled to the compensation for a Phase, unless City shall have issued a notice to proceed to Consultant as to said Phase. · Phase Fee for Said Phase 1. $ A-2-6 2. $ ( ) h Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as Interest free loans, which must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back fi'om the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. C. (X) Hourly Rate Arrangement For performance of the Defined Services by Consultant as herein required, City shall pay Consultant for the productive hours of time spent by Consultant in the performance of said Services, at the rates or amounts set forth in the Rate Schedule herein below according to the following terms and conditions: · ~ Not-to-Exceed Limitation on Time and Materials Arrangement Notwithstanding the expenditure by Consultant of time and materials in excess of said Maximum Compensation amount, Consultant agrees that Consultant will perform all of the Defined Services herein required of Consultant for $ including all Materials, and other "reimbursables" ("Maximum Compensation"). · (X) Limitation without Further Authorization on Time and Materials Arrangement A-2-7 At such time as Consultant shall have incurred time and materials equal to $25- 35,000 for project management and special tax consultant, $45,000 for audit services in accordance with this agreement and $7,500 for reimbursement of out of pocket expenses m accordance with paragraph 13 for a total compensation of $77,500-87,500, ("Authorization Limit"), Consultant shall not be entitled to any additional compensation without further authorization issued in writing and approved by the City. Nottfing herein shall preclude Consultant fi.om providing additional Services at Consultant's own cost and expense. Rate Schedule Category of Employee Hourly of Consultant Name Rate Senior Principal Michael McGill $165.00 Principal Harry Burrowes $150.00 Manager Greg Mattson $130.00 Senior Professional Varies $120.00 Associate Professional Varies $110.00 Assistant Professional Varies $90.00 Drafter, Designer Varies $70.00 Secretary/Clerk/Technical Varies $55.00 13. Materials Reimbursement Arrangement For the cost of out of pocket expenses incurred by Consultant in the performance of services herein required, City shall pay Consultant at the rates or amounts set forth below: None, the compensation includes all costs. ~0 Copies, travel, data purchases, other expenses Cost or Rate not to exceed $ : (X) Copies, not to exceed: $7,500 (aggregate total) (O Travel, not to exceed $ : ~) Priming, not to exceed $__: (O Postage, not to exceed $ : (O Delivery, not to exceed $ : O Long Distance Telephone Charges, ~ not to exceed $ ~) Other Actual Identifiable Direct Costs: _, not to exceed $ : _, not to exceed $ : 14. Contract Administrators: City: Dino Serafini, Civil Engineer A-2-8 The Consultant shall provide written documentation to the City of all issues, meetings, project progress and decisions. The Consultant shall be proactive in identifying issues that impact the project schedule. Once an engineering issue, a policy decision, a financing decision or other issues are identified, the Consultant shall immediately propose an action plan and communicate possible solutions to all responsible parties and follow through on required actions. 8.A.2 Financial District Project Management The Consultant shall prepare all Council Agenda Reports to the satisfaction of the City Engineer. (1) District Formation and Bond Sale The Consultant shall manage and oversee the progress of District Formation and Bond Sale. The Consultant shall prepare the Engineer's report or special tax report, related boundary diagrams, collect available data and shall assist in the development, review and analysis of all related documents including but not limited to the Engineer's Report or Special Tax Report, description of improvements, bid documents, developer reimbursements, cost estimates, cost and quantity audit, compliance with City' s Transportation and Public Facilities Development Impact Fee programs, appraisal reports, value-to-lien ratios, assessment and tax formulas (as many as 10 are included), official statement or disclosure documents, bond purchase agreement, continuing disclosure, and resolutions, etc. The Consultant shall ensure compliance with City Policies and State laws. The Consultant shall deliver all final data, information, district diagram, and any other material produced under this agreement in computer digital files compatible with the software utilized by the City within two months of completion of the district or sooner as requested by the City. (2) The Consultant shall document in writing all issues, meetings, project progress and decisions and report thereon to the City Engineer. The Consultant shall monitor the progress of the Public Financing District and take all necessary steps to ensure efficient and timely district formation and sale of bonds. (3) The Consultant shall facilitate the district formation and bond sale by monitoring the progress of district formation, determining critical path tasks, acting as departmental liaison, arranging meetings with City staff, the financial team, engineers, developers, etc., coordinating information between the various parties, and by performing all tasks necessary to ensure efficient, timely formation of the district and bond sale. The Consultant's tasks shall include, but not be limited to, recordation of the boundary map, provide legal notice, perform work associated with the ballot, update and amend the special tax report to reflect final costs, amend and record the CFD boundary map (as necessary), prepare the final special tax report for Council approval, determine the property owner protest, prepare tables and other information required by the A-2 -3 Underwriter for inclusion in the Official Statement, prepare and execute a special tax consultant certificate confirming the adequacy of special taxes to meet debt service requirements for the bond issues; assist in the preparation of three party agreements with utility companies, if any; assist in the preparation of the Acquisition/financing Agreement and subsequent amendments, if any, for CFD. (5) The Consultant shall attend Council meetings to present the information to Council regarding district formation and bond sale or other related items. The Consultant shall prepare, to the satisfaction of the City Engineer, all Council Agenda reports necessary for completion of district formation and financing. 8.A.3 Audit Services for CFD (3) General The Consultant shall be responsible for providing auditing services for facilities included in CFD. These services shall include, but not be limited to, reviewing the developer's requests for each phased payment for conformity with the Financing Agreements and City policies, State law, certifying that all costs are eligible and payments have been paid to the appropriate contractor to ensure that the acquired improvements are lien free, and summarizing all costs to be reimbursed by the district fund. (4) Review Relevant Contract Documents Consultant shall obtain and review all relevant construction contract documents, the Special Tax Report, the financing agreement, utility agreements, all change orders, the as-built drawings, the resolution of intention, Transportation, Public Facilities, and all other applicable Development Impact Fee programs (DIF), and all other pertinent documents, City policies and laws. (3) Meet with Accounting Staff Consultant shall meet with the developers' and City's accounting staff to identify and confirm the accounting documents that will be required by the Consultant. Such documents shall include, but not be limited to, copies of invoices, canceled checks, change orders, unconditional lien releases, and other documents reflecting the items constructed and their cost. Improvement costs will be summarized by the consultant as DIF eligible or not (by type of Dll~). The Consultant shall document meetings in writing. (4) Perform Audit Services The Consultant shall review each payment request submitted to the City for reimbursement from the District fund. The Consultant shall request additional A-2 -4 documentation from the developer as needed. The Consultant shall provide written documentation to the City to include: 1) an analysis comparing the original estimate to the actual cost; 2) a letter of audited cost; 3) an executive summary and audit format; 3) an improvement location map; 4) a City of Chula Vista acceptance letter or other documentation acceptable to the City Engineer; 5) a summary of hard and soft costs prorated as DIF eligible and non DIF eligible; 6) a contract summary outlining the original price, change orders, and final contract price; 7) invoices, canceled checks, and unconditional lien releases, as provided by the developer; and 8) certification by the Consultant that the costs are eligible for reimbursement and that the request complies with the Acquisition/Financing Agreements. Requests for payments shall be consistent with the terms of the Financing Agreements for the District. Audit services described above shall be pursuant to the applicable CFD Acquisition/Financing Agreement and other related agreements. The CFD Acquisition/Financing Agreement may list more facilities than can be financed via the CFD. For purposes of this Agreement, the Consultant shall complete the audit of costs (hard and soft costs) for purposes of release of CFD funds in accordance with the CFD Acquisition/Financing Agreement and for purposes of establishing DIF credit. 9. Date for Commencement of Consultant Services: (X) Same as Effective Date of Agreement ( ) Other: C. Dates or Time Limits for Delivery of Deliverables: Consultant shall complete all work excluding audit one year after the Date of Commencement. Unless otherwise approved by the City Engineer D. Date for completion of all Consultant services: Same as above 10. Insurance Requirements: (X) Statutory Worker's Compensation Insurance (X) Employer's Liability Insurance coverage: $1,000,000. (X) Commercial General Liability Insurance including Automobile Liability: $1,000,000. ( ) Errors and Omissions insurance: None Required (included in Commercial General Liability coverage). ( ) Errors and Omissions Insurance: $250,000 (not included in Commercial General Liability coverage). 11. Materials Required to be Supplied by City to Consultant: N/A A-2 -5 12. Compensation: (__) Single Fixed Fee Arrangement. For performance of all of the Defined Services by Consultant as herein required, City shall pay a single fixed fee in the amounts and at the times or milestones or for the Deliverables set forth below: Single Fixed Fee Amount: $ , payable as follows: (__) Milestone or Event or Deliverable: Milestone, Event or Deliverable: Amount or Pement of Fixed Fee: $ $ $ A. ( ) 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each g/ven phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans, which must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the Phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. B. ~ Phased Fixed Fee Arrangement. For the performance of each phase or portion of the Defined Services by Consultant as are separately identified below, City shall pay the fixed fee associated with each phase of Services, in the amounts and at the times or milestones or Deliverables set forth. Consultant shall not commence Services under any Phase, and shall not be entitled to the compensation for a Phase, unless City shall have issued a notice to proceed to Consultant as to said Phase. Phase Fee for Said Phase 1. $ A-2-6 2. $ 3. $ ( ) 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end o f each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans, which must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. C. (X) Hourly Rate Arrangement For performance of the Defined Services by Consultant as herein required, City shall pay Consultant for the productive hours of time spent by Consultant in the performance of said Services, at the rates or amounts set forth in the Rate Schedule herein below according to the following terms and conditions: · ~ Not-to-Exceed Limitation on Time and Materials Arrangement Notwithstanding the expenditure by Consultant of time and materials in excess of said Maximum Compensation amount, Consultant agrees that Consultant will perform all of the Defined Services herein required of Consultant for $ including all Materials, and other "reimbursables" ("Maximum Compensation"). · (X) Limitation without Further Authorization on Time and Materials Arrangement At such time as Consultant shall have incurred time and materials equal to $25- 35,000 for project management and special tax consultant, $45,000 for audit services in accordance with this agreement and $7,500 for reimbursement of out of pocket expenses in accordance with paragraph 13 for a total compensation of $77,500-87,500, ("Authorization Limit"), Consultant shall not be entitled to any additional compensation without further authorization issued in writing and approved by the City. Nothing herein shall preclude Consultant fi:om providing additional Services at Consultant's own cost and expense. Rate Schedule Category of Employee Hourly of Consultant Name Rate Senior Principal Michael McGill $165.00 Principal Harry Burrowes $150.00 Manager Greg Mattson $130.00 Senior Professional Varies $120.00 Associate Professional Varies $110.00 Assistant Professional Varies $90.00 Drafter, Designer Varies $70.00 Secretary/Clerk/Technical Varies $55.00 13. Materials Reimbursement Arrangement For the cost of out of pocket expenses incurred by Consultant in the performance of services herein required, City shall pay Consultant at the rates or amounts set forth below: None, the compensation includes all costs. ~O Copies, travel, data purchases, other expenses Cost or Rate not to exceed $ : (X) Copies, not to exceed: $7,500 (aggregate total) C) Travel, not to exceed $__: (~) Printing, not to exceed $ : ~) Postage, not to exceed $__: O Delivery, not to exceed $ : C) Long Distance Telephone Charges, not to exceed $ ~) Other Actual Identifiable Direct Costs: , not to exceed $ : , not to exceed $ : 14. Contract Administrators: City: Dino Serafini, Civil Engineer A-2-8 Consultant: Greg Mattson, VP McGill Martin Self, Inc. 310 Third Ave, Suite B6 Chula Vista, CA. 92101 Phone (619) 425 - 1343 FAX 619) 425-1357 15. Liquidated Damages Rate: NA ~ $ per day. ~ Other: 16. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: ~ Not Applicable. Not an FPPC Filer. (X) FPPC Filer ~0 Category No. 1. Investments and sources of income. ( ) Category No. 2. Interests in real property. (X) Category No. 3. Investments, interest in real property and sources of income subject to the regulatory, permit or licensing authority of the department. (X) Category No. 4. Investments in business entities and sources of income which engage in land development, construction or the acquisition or sale of real property. (X) Category No. 5. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the City of Chula Vista (Redevelopment Agency) to provide services, supplies, materials, machinery or equipment. Category No. 6. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the designated employee's department to provide services, supplies, materials, machinery or equipment. ~) Category No. 7. Business positions. ~) List "Consultant Associates" interests in real property within 2 radial miles of Project Property, if any: A-2 -9 17. ~ Consultant is Real Estate Broker and/or Salesman 18. Permitted Subconsultants: 19. Bill Processing: A Consultant's Billing to be submitted for the following period of time: (X) Monthly (The City will use its best effort to remit payments within 30 days) ~ Quarterly ~ Other: Completion of B Day of the Period for submission of Consultant's Billing: (X) First of the Month (~) 15th Day of each Month ~0 End of the Month ~ Other: Completion of Market Analysis and Market Projection C City's Account Number: 00891-2721/05091678-800000 20. Security for Performance ~ Performance Bond, $_ ~ Letter of Credit, $ (~) Other Security: Type: Amount: $ Retention. If this space is checked, then notwithstanding other provisions to the contrary requiring the payment of compensation to the Consultant sooner, the City shall be entitled to retain, at their option, either the following "Retention Percentage" or "Retention Amount" until the City determines that the Retention Release Event, listed below, has occurred: (~) Retention Percentage: % ~) Retention Amount: $ Retention Release Event: A-2-10 ~ Completion of All Consultant Services (__) Other: H:LHOME~ENGINEER~LANDDEV~CFD Consultant AgreementsW[MS.doc A-2-11 Consultant: Greg Mattson, VP McGill Martin Self, Inc. 310 Third Ave, Suite B6 Chula Vista, CA. 92101 Phone (619) 425-1343 FAX 619) 425-1357 15. Liquidated Damages Rate: NA (__) $ per day. ~ Other: 16. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: ~ Not Applicable. Not an FPPC Filer. (X) FPPC Filer (~) Category No. 1. Investments and sources of income. ( ) Category No. 2. Interests in real property. (X) Category No. 3. Investments, interest in real property and sources of income subject to the regulatory, permit or licensing authority of the department. (X) Category No. 4. Investments in business entities and sources of income which engage in land development, construction or the acquisition or sale of real property. (X) Category No. 5. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the City of Chula Vista (Redevelopment Agency) to provide services, supplies, materials, machinery or equipment. Category No. 6. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the designated employee's department to provide services, supplies, materials, machinery or equipment. ~ Category No. 7. Business positions. (~O List "Consultant Associates" interests in real property within 2 radial miles of Project Property, if any: A-2 -9 17. ( ) Consultant is Real Estate Broker and/or Salesman 18. Permitted Subconsultants: 19. Bill Processing: A Consultant's Billing to be submitted for the following period of time: (X) Monthly (The City will use its best effort to remit payments within 30 days) ( ) Quarterly ( ) Other: Completion of B Day of the Period for submission of Consultant's Billing: (X) First of the Month ( ) 15th Day of each Month ( ) End of the Month ( ) Other: Completion of Market Analysis and Market Projection C City's Account Number: 00891-2721/05091678-800000 20. Security for Performance (~) Performance Bond, $_ ~ Letter of Credit, $ ~ Other Security: Type: Amount: $ (__) Retention. If this space is checked, then notwithstanding other provisions to the contrary requiring the payment of compensation to the Consultant sooner, the City shall be entitled to retain, at their option, either the following "Retention Percentage" or "Retention Amount" until the City determines that the Retention Release Event, listed below, has occurred: ( ) Retention Percentage: % ( ) Retention Amount: $ Retention Release Event: A-2-10 . (~ Completion of All Consultant Services (~) Other: H:kHOMEkENGINEERkLANDDEVXCFD Consultant AgreementsklViMS.doc A-2-11 COUNCIL AGENDA STATEMENT Item 4 Meeting Date 5/8/01 ITEM TITLE: Resolution Vacating an Irrevocable Offer of Dedication of Fee Interest to the City of Chula Vista over Lot "A" of Chula Vista Tract No. 99-03, Eastlake Trails South, Map No. 13812. SUBMITTED BY: Director of Public Work REVIEWED BY: City Manager~4~~ .¢ (4/5ths Vote: Yes No X ) The Eastlake Company, wishes to process a summary vacation for the existing Irrevocable Offer of Dedication of Fee Interest to the City of Chula Vista over Lot "A"of Map No. 13812 and grant a new Offer of Dedication for said lot in order to facilitate a boundary adjustment between Lot "A" and the adjacent residential parcel. In accordance with Section 7050 of the California Government Code and Chapter 4, Section 8335 of the California Streets and Highways Code, this type of vacation may be performed summarily through adoption of a resolution. RECOMMENDATION: That Council adopt a Resolution Vacating an Irrevocable Offer of Dedication of Fee Interest to the City of Chula Vista over Lot "A" of Chula Vista Tract No. 99- 03, Eastlake Trails South, Map No. 13812. BOARDS/COMMISSIONS RECOMMENDATION: None. DISCUSSION: Map No. 13812, Chula Vista Tract No 99-03, Eastlake Trails South, was recorded on June 18, 1999 and included an offer to dedicate an irrevocable fee interest to the City of Chula Vista for Lot "A" for open space and other public purposes. The May Group, on behalf of their client the Eastlake Company submitted an application for a boundary adjustment plat between Lot 87 and Lot "A" of Map No 13812. The Eastlake Company is the underlying fee owners of Lot "A" (with a Irrevocable Offer of Dedication over Lot "A" to the City) and Jeffrey Yocom is the owner of Lot 87. This boundary adjustment is needed to improve the area for Lot 87. Lot "A" frontage and depth is not affected by the proposed adjustment plat and will be sufficient for open space purposes after the adjustment (see Attachment - Exhibit "A" Adjustment Plat). In order for the Engineering Page 2, Meeting Date 5/8/01 division and Planning and Building Department to approve this adjustment plat, the City of Chula Vista must summarily vacate the existing Irrevocable Offer of Dedication by means of a City Council Resolution. The Eastlake Company has submitted another Irrevocable Offer of Dedication, which includes a legal description incorporating the adjusted boundaries (see Attachment - Exhibit "B" Legal Description). O~y after the Resolution before City Council is recorded will the City Clerk acknowledge and cause to have recorded the new Irrevocable Offer of Dedication under actions previously taken by the City Council, the City Clerk has the authority to acknowledge the Offer of Dedication under Subdivision Map Act 66477.2 FISCAL IMPACT: The costs related to the processing of this request for vacation are being paid for by a deposit of monies by the Eastlake Company under the City's Full Cost Recovery System. BVH Attachments: New Irrevocable Offer of Dedication (PF-287) File No. 0740-70 PV-081 H: \HOME\ENGINEER\PERMITS\Pv\PV081 .BVH.doc Recording Requested by and Please Return to: City Clerk City of Chula Vista P.O. Box 1087 Chula Vista, Califomia 91912 This Instrument Benefits City Only. No Fee Required. ~ r~rRecorder'sUseOnly ~ APN(s) 643-290-51-00 C.V. File No. PF-287 IRREVOCABLE OFFER OF DEDICATION OF FEE INTEREST FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, THE EASTLAKE COMPANY, LLC represents that, as the owner(s) of the herein-described real property (in the case of multiple owners, collectively referred to as "Grantor"), Grantor hereby makes an Irrevocable Offer of Dedication of fee interest to THE CITY OF CHULA VISTA, A MUNICIPAL CORPORATION, the hereinafter described real property for the following public purpose: OPEN SPACE AND OTHER PUBLIC PURPOSES The real property referred to above is situated in the City of Chula Vista, County of San Diego, State of California and is more particularly described as follows: SEE EXHIBIT "A" - ADJUSTMENT PLAT AND EXHIBIT "B" - LEGAL DESCRIPTION ATTACHED HERETO AND MADE PART THEREOF This Offer of Dedication is made pursuant to Section 7050 of the Govemment Code of the State of California and may be accepted at any time by the City Clerk of the City of Chula Vista. This Offer of Dedication of fee interest shall be irrevocable and shall be binding on the Grantor, its heirs, executors, administrators, successors and assigns. Page 1 of 2 SIGNATURE PAGE Signed this day of , 2001. Grantor Signatures: (Notary Acknowledgment Required for Each Signatory) This is to certify that the interest in real property offered herein to the City of Chula Vista, a governmental agency, is hereby acknowledged by the undersigned, City Clerk, on behalf of the Chula Vista City Council pursuant to authority conferred by Resolution No. 15645 of the Chula Vista City Council adopted on June 5, 1990, and the grantee(s) consent(s) to the recordation thereof by its duly authorized officer. SUSAN BIGELOW CITY CLERK By: Date: H:\HOME\ENGIN EERh°ERMITS\PIM°F287iOD,DOC Page 2 of 2 ADJUSTMENT PLAT NO. O[ - SCALE: 1' = 60' ,EXHIBIT "A"SHFET 1 OF 11 SHEETS ,2.700 AC ~ VV/~,I-I~II~I~ O I I~.~1~ ' NET ' '~ ~POINT OF COURT . "'" ~ ~ , ~ I~~AKE TRAIL8 ~OUTH N ~ CJEFF. E ~b ~o { ~ t N A ~595-080-28 ~ ~ -,,~m ~u.~ OWNER: PCL ~: THE ~ST~KE COMPANY PARCEL A PARCEL ADDRESS;.900 ~NE AVE., ST[. 100, CHU~ VISTA, CA 91914 EXISTING ~ND USE RESIDENTAL OPEN SPACE PHONE N0.:(619)42]-1830 PROPOSED ~NO USE: RESIDENTAL OPEN SPACE SIGNATURE: ~'{.t ~ ',~--/ PROPOSED ZONING N/A OWNER: PCL 87A: JEFFR~ E. YOCOM MAP PREP~BY: PHILIP E. BR(~/~. C/O ADDRESS:2558 WALKING STICK CRT., CHU~ VISTA, CA 91915 PHONE N0,:(858)505-3551 ~ ~ I APPROVALS: ~ BY: DATE: DATE: EXHIBIT "B" LEGAL DESCRIPTION RELINQUISHMENT IN THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, THAT PORTION OF LOT A OF CHULA VISTA TRACT NO. 99-03, EASTLAKE TRAILS SOUTH, ACCORDING TO MAP NO. 13812 FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, JUNE 18, 1999 AS FILE NO. 99-427872, DESCRIBED AS FOLLOWS: BEGINNING AT THE MOST NORTHERLY CORNER OF SAID LOT 87; THENCE ALONG THE NORTHERLY LiNE OF SAID LOT 87, SOUTH 64°14'23" WEST 25.50 FEET TO THE TRUE POINT OF BEGINNING; THENCE ALONG THE WESTERLY LINE OF SAID LOT 87, SOUTH 07°49'31'' EAST 150.47 FEET; THENCE SOUTH 78°21 '36" WEST 12.83 FEET; THENCE NORTH 04o54, 13" WEST 149.86 FEET; THENCE NORTH 64o14'23" EAST 5.37 FEET TO THE TRUE POINT OF BEGINNING. SAID RELINQUISHMENT CONTAINS 0.031 ACRES MORE OR LESS. l~. t$~79 EXP. 6/30/01 ~ RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA VACATING AN IRREVOCABLE OFFER OF DEDICATION OF FEE INTEREST TO THE CITY OF CHULA VISTA OVER LOT "A" OF CHULA VISTA TRACT NO. 99-03, EASTLAKE TRAILS SOUTH, MAP NO. 13812 WHEREAS, the Eastlake Company, wishes to process a summary vacation for the existing Irrevocable Offer of Dedication of Fee Interest to the City of Chula Vista over Lot ~A" of Map No. 13812 and grant a new Offer of Dedication for said lot in order to facilitate a boundary adjustment between Lot "A" and the adjacent residential parcel; and WHEREAS, in accordance with Section 7050 of the California Government Code and Chapter 4, Section 8335 of the California Streets and Highways Code, this type of vacation may be performed summarily through adoption of a resolution. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby vacate an Irrevocable Offer of Dedication of Fee Interest to the City of Chula Vista over Lot of Chula Vista Tract No. 99-03, Eastlake Trails South, Map No. 13812. BE IT FURTHER RESOLVED that the City Clerk of the City of Chula Vista is hereby directed to record this resolution to vacate an Irrevocable Offer of Dedication of Fee Interest as set forth in Exhibits "A" and "B" Presented by Approved as to form by John P. Lippitt John M. Kaheny Director of Public Works City Attorney J:\Attorney\RESO\IOD Vacation Eastlake COUNCIL AGENDA STATEMENT ITEM: ~ MEETING DATE: 5/8/2001 ITEM TITLE: Resolution Approving agreement with the accounting firm of Caporicci, Cropper & Larson, LLP to provide auditing services and authorizing the Mayor to execute said agreement. BY: Deputy City Manager Powell SUBMITTED REVIEWED BY: City Manager ~'- Section 1017 of the Chula Vista Charter requires an annual independent audit of the City. The current three-year agreement with Calderon, Jaham & Osbom (C JO) terminated with completion of the June 30, 2000 audit report. A Request for Proposals to provide auditing services for the City, Redevelopment Agency, and Bayfront Conservancy Trust was sent to 18 auditing firms. One proposal was received and evaluated by a Selection Committee appointed by the City Manager composed of the Assistant Director of Finance, the Fiscal Operations Manager, and the Treasury Manager. RECOMMENDATION: That Council adopt the resolution approving the agreement with the audit firm of Caporicci, Cropper & Larson, LLP for fiscal years 2000-01, 2001-02, and 2002-03, with the option to extend for two additional years. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: Eighteen audit firms were mailed a Request for Proposal to audit the financial transactions of the City of Chula Vista, Redevelopment Agency, and Bayfront Conservancy Trust (Attachment A). One proposal was received and evaluated by the Selection Committee based on the following criteria: A, Organization, size, and structure of the audit firm. B. Qualifications and experience of staff to be assigned to the City's , audit. Page 2 , Item MEETING DATE: 5/8/2001 C. Audit firm's understanding of the work to be performed and comprehensiveness of audit work plan. D. Cost. Concerned that only one proposal was received, we followed up with several audit firms to determine why they did not submit a proposal. With the exception of the larger CPA firms who are performing less governmental audits, the main reason was a shortage of audit staff several audit firms were currently experiencing. The audit firm of Caporicci, Cropper & Larson, LLP, Certified Public Accountants provides auditing, accounting, and advisory services to numerous governmental entities throughout California. With offices located in Irvine and Walnut Creek and a staff of 25 audit professionals, the audit firm serves a variety of cities and counties throughout California as well as conducting financial related services to the State of California and variobs Federal agencies. Caporicci, Cropper & Larson were acknowledged by the Governmental Accounting Standards Board for participating in the early implementation of GASB 34 with the City of Corona. They are currently assisting other cities in their implementation efforts and we will benefit by their knowledge. FISCAL IMPACT: The cost of the audit for the fiscal year ended June 30, 2001, will be $53,950 (compared to $42,446 this year). The increase is due to the addition of Transient Occupancy Tax audit services which were not included under the previous audit agreement. Fees for fiscal year ended June 30, 2002 and June 30, 2003 will be $54,170 and $57,530 respectively. Fees for the two succeeding years will be adjusted based Consumer Price Index not to exceed 5% per year. Of the total fees, $34,375 will be paid from the General Fund, $10,375 from the Redevelopment Agency, $4,050 from the Bayfront Conservancy Trust, and $5,150 from Community Development Block Grant. A~tachment A 2001 Request for Proposal List of Audit Firms Armando Martinez & McGladrey & Pullen Thomas, Bigbie & Smith Company 3111 Camino del Rio 4201 Brockton Avenue, 365 Church Avenue North, Suite 1150 Suite 100 Chula Vista, CA 91910 San Diego, CA 92108 Riverside, CA 92503 Attention: Michelle Bello Attention: Greg Caporicci,Cropper & Fankhanel Larson, LLP MacNeill & Wolski, CPA's 17512 Von Karman 5575 Lake Park Way, Turnquist, Schmitt, Irvine, CA 92614 Suite 200 Kitrosser & McMahan Attention: Steven Larson La Mesa, CA 91942 2550 5th Avenue Attention: Mark J. 10th Floor Conrad & Associates MacNeill San Diego, CA 92103 1100 Main Street, Suite C Attention: Ed Kitrosser Irvine, CA 92614 Moreland & Associates Attention: Ron Conrad 1201 Doug Street Vavrinek, Trine, Day & Suite 680 Company Coradino, Hickey & Newport Beach, CA 8270 Aspen Street Hanson 92660 Rancho Cuyamonga, CA 4275 Executive Square, Attention: Michael 91730 Suite 200 Moreland Attention: Ron White La Jolla, CA 92037 Attention: Charles J. Navarro & Associates, Inc. West & Associates Coradino 2831 Camino del Rio 2550 5th Avenue South Suite 103 Diehl, Evans & Company San Diego, CA 92108 San Diego, CA 92103 2965 Roosevelt Street Attention: Ramon Navarro Attention: Chris Roberts Carlsbad, CA 92008 Attention: Harvey Pricewaterhouse Coopers Schroeder LLP 750 "B" Street, Suite 2900 KPMG Peat Marwick LLP San Diego, CA 92101 750 "B" Street, Suite 1500 Attention: Thomas Insley San Diego, CA 92101 Attention: John Davis Rushall Reital & Randall P.O. Box 643 Levitz, Zacks & Ciceric, Solana Beach, CA 92075 Inc. Attention: Richard Randall 701 "B" Street, 4th Floor San Diego, CA 92101 Schilling & Hinzman Attention: Victor 6339 Nancy Ridge Drive, Ramsauer #200 San Diego, CA 92121- 2247 Attention: Bob Hinzman RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AGREEMENT WITH THE ACCOUNTING FIRM OF CAPORICCI, CROPPER & LARSON, LLP TO PROVIDE AUDITING SERVICES AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT WHEREAS, Section 1017 of the Chula Vista Charter requires an annual independent audit of the City and the current three-year agreement with Calderon, Jaham & Osborn (CJO) terminated with completion of the June 30, 2000 audit report; and WHEREAS, a Request for Proposals to provide auditing services for the City, Redevelopment Agency, and Bayfront Conservancy Trust was sent to 18 auditing firms; and WHEREAS, one proposal was received and evaluated by a Selection Committee appointed by the City Manager composed of the Assistant Director of Finance, the Fiscal Operations Manager, and the Treasury Manager; and WHEREAS, the Committee performed reference checks and agreed to recommend the selection of Caporicci, Cropper & Larson, LLP to provide auditing services. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby approve the Agreement with the accounting firm of Caporicci, Cropper & Larson, LLP to provide auditing services for fiscal years 2000-01, 2001-02, and 2002-030, with a option to extend for two additional years, a copy of which shall be kept on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista is hereby authorized and directed to execute said Agreement. Presented by Approved as to form by Robert A. Powell Jo . Kaheny Deputy City Manager y J: \at torney\ re so\auditor Agreement between City of Chula Vista and Caporicci, Cropper & Larson, LLP for Audit services This agreement ("Agreement"), dated May 15, 2001 for the purposes of reference only, and effective as of the date last executed unless another date is otherwise specified in Exhibit A, Paragraph 1 is between the City-related entity as is indicated on Exhibit A, paragraph 2, as such ("City"), whose business form is set forth on Exhibit A, paragraph 3, and the entity indicated on the attached Exhibit A, paragraph 4, as Consultant, whose business form is set forth on Exhibit A, paragraph 5, and whose place of business and telephone numbers are set forth on. Exhibit A, paragraph 6 ("Consultant"), and is made with reference to the following facts: Recitals Whereas, Section 1017 of the City Charter requires the City Council to appoint an independent auditor to audit the annual financial statements of the City; and, Whereas, Consultant warrants and represents that they are experienced and staffed in a manner such that they are and can prepare and deliver the services required of Consultant to City within the time frames herein provided all in accordance with the terms and conditions of this Agreement; 2pty9.wp Standard Form Two Party Agreement (Fourth Revision) November 2, 1993 Page 1 Obligatory Provisions Pages NOW, THEREFORE, BE IT RESOLVED that the City and Consultant do hereby mutually agree as follows: 1. Consultant's Duties A. General Duties Consultant shall perform all of the services described on the attached Exhibit A, Paragraph 7, entitled "General Duties"; and, B. Scope of Work and Schedule In the process of performing and delivering said "General Duties", Consultant shall also perform all of the services described in Exhibit A, Paragraph 8, entitled" Scope of Work and Schedule", not inconsistent with the General Duties, according to, and within the time frames set forth in Exhibit A, Paragraph 8, and deliver to City such Deliverables as are identified in Exhibit A, Paragraph 8, within the time frames set forth therein, time being of the essence of this agreement. The General Duties and the work and deliverables required in the Scope of Work and Schedule shall be herein referred to as the "Defined Services" Failure to complete the Defined Services by the times indicated does not, except at the option of the City, operate to terminate this Agreement. C. Reductions in Scope of Work City may independently, or upon request from Consultant, from time to time reduce the Defined Services to be performed by the Consultant under this Agreement. Upon doing so, City and Consultant agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with said reduction. D. Additional Services In addition to performing the Defined Services herein set forth, City may require Consultant to perform additional consulting services related to the Defined Services ("Additional Services"), and upon doing so in writing, if they are within the scope of services offered by Consultant, Consultant shall perform same on a time and materials basis at the rates set forth in the "Rate Schedule" in Exhibit A, Paragraph 11 (C), unless a separate fixed fee is otherwise agreed upon. Ail compensation for Additional Services shall be paid monthly as billed. 2ptyg.wp Standard Form Two Party Agreement (Fourth Revision) November 2, 1993 Page 2 E. Standard of Care Consultant, in performing any Services under this agreement, whether Defined Services or Additional Services, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations. F. Insurance Consultant represents that it and its agents, staff and subconsultants employed by it in connection with the Services required to be rendered, are protected against the risk of loss by the following insurance coverages, in the following categor- ies, and to the limits specified, policies of which are issued by Insurance Companies that have a Best's Rating of "A, Class V" or better, or shall meet with the approval of the City: Statutory Worker's Compensation Insurance and Employer's Liability Insurance coverage in the amount set forth in the attached Exhibit A, Paragraph 9. Commercial General Liability Insurance including Business Automobile Insurance coverage in the amount set forth in Exhibit A, Paragraph 9, combined single limit applied separately to each project away from premises owned or rented by Consultant, which names City and Applicant as an Additional Insured, and which is primary to any policy which the City may otherwise carry ("Primary Coverage"), and which treats the employees of the City and Applicant in the same manner as members of the general public ("Cross-liability Coverage"). Errors and Omissions insurance, in the amount set forth in Exhibit A, Paragraph 9, unless Errors and Omissions coverage is included in the General Liability policy. G. Proof of Insurance Coverage. (1) Certificates of Insurance. Consultant shall demonstrate proof of coverage herein required, prior to the commencement of services required under this Agreement, by delivery of Certificates of Insurance demonstrating same, and further indicating that the policies may not be canceled without at least thirty (30) days written notice to the Additional Insured. (2) Policy Endorsements Required. In order to demonstrate the Additional Insured Coverage, Primary Coverage and Cross-liability Coverage required under Consultant's Commercial General Liability Insurance Policy, 2ptyg.wp Standard Form Two Party Agreement (Fourth Revision) November 2, 1993 Page 3 Consultant shall deliver a policy endorsement to the City demonstrating same, which shall be reviewed and approved by the Risk Manager. H. Security for Performance.. (1) Performance Bond. In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide a Performance Bond (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Performance Bond"), then Consultant shall provide to the City a performance bond by a surety and in a form and amount satisfactory to the Risk Manager or City Attorney~ which amount is indicated in the space adjacent te the term, "Performance Bond", in said Paragraph 19, Exhibit A. (2) Letter of Credit. In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Letter of Credit"), then Consultant shall previde to the City an irrevocable letter of credit callable by the City at their unfettered discretion by submitting to the bank a letter, signed by the City Manager, stating that the Consultant is in breach of the terms of this Agreement. The letter of credit shall be issued by a bank, and be in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Letter of Credit", in said Paragraph 19, Exhibit A. (3) Other Security In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide security other than a Performance Bond or a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Other Security"), then Consultant shall provide to the City such other security therein listed in a form and amount satisfactory to the Risk Manager or City Attorney. I. Business License 1. The City Attorney's Office prefers that you obtain approval of the surety or bank, the form of the security and the amount of the security from the Risk Manager in the first instance and not the City Attorney. The City Attorney's office would be available on such risk issues as an alternate only if the Risk Manager is unavailable and the matter can't wait. 2ptyg.wp Standard Form Two Party Agreement (Fourth Revision) November 2, 1993 Page 4 Consultant agrees to obtain a business license from the City and to otherwise comply with Title 5 of the Chula Vista Municipal Code. 2. Duties of the City A. Consultation and Cooperation City shall regularly consult the Consultant for the purpose of reviewing the progress of the Defined Services and Schedule therein contained, and to provide direction and guidance to achieve the objectives of this agreement. The City shall permit access to its office facilities, files and records by Consultant throughout the term of the agreement. In addition thereto, City agrees to provide the information, data, items and materials set forth on Exhibit A, Paragraph 10, and with the further understanding that delay in the provision of these materials beyond 30 days after authorization to proceed, shall constitute a basis for the justifiable delay in the Consultant's performance of this agreement. B. Compensation Upon receipt of a properly prepared billing from Consultant submitted to the City periodically as indicated in Exhibit A, Paragraph 18, but in no event more frequently than monthly, on the day of the period indicated in Exhibit A, Paragraph 18, City shall compensate Consultant for all services rendered by Consult- ant according to the terms and conditions set forth in Exhibit A, Paragraph 11, adjacent to the governing compensation relationship indicated by a "checkmark" next to the appropriate arrangement, subject to the requirements for retention set forth in paragraph 19 of Exhibit A, and shall compensate Consultant for out of pocket expenses as provided in Exhibit A, Paragraph 12. Ail billings submitted by Consultant shall contain sufficient information as to the propriety of the billing to permit the City to evaluate that the amount due and payable thereunder is proper, and shall specifically contain the City's account number indicated on Exhibit A, Paragraph 18 (C) to be charged upon making such payment. 3. Administration of Contract Each party designates the individuals ("Contract Administrators") indicated on Exhibit A, Paragraph 13, as said party's contract administrator who is authorized by said party to represent them in the routine administration of this agreement. 4. Term. This Agreement shall terminate when the Parties have 2pty9.wp Standard Form Two Party Agreement (Fourth Revision) November 2, 1993 Page 5 complied with all executory provisions hereof. 5. Liquidated Damages The provisions of this section apply if a Liquidated Damages Rate is provided in Exhibit A, Paragraph 14. It is acknowledged by both parties that time is of the essence in the completion of this Agreement. It is difficult to estimate the amount of damages resulting from delay in per- formance. The parties have used their judgment to arrive at a reasonable amount to compensate for delay. Failure to complete the Defined Services within the allotted time period specified in this Agreement shall result in the following penalty: For each consecutive calendar day in excess of the time specified for the completion of the respective work assignment or Deliverable, the consultant shall pay to the City, or have withheld from monies due, the sum of Liquidated Damages Rate provided in Exhibit A, Paragraph 14 ("Liquidated Damages Rate"). Time extensions for delays beyond the consultant's control, other than delays caused by the City, shall be requested in writing to the City's Contract Administrator, or designee, prior to the expiration of the specified time. Extensions of time, when granted, will be based upon the effect of delays to the work and will not be granted for delays to minor portions of work unless it can be shown that such delays did or will delay the progress of the work. 6. Financial Interests of Consultant A. Consultant is Designated as an FPPC Filer. If Consultant is designated on Exhibit A, Paragraph 15, as an "FPPC filer", Consultant is deemed to be a "Consultant" for the purposes of the Political Reform Act conflict of interest and disclosure provisions, and shall report economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 15 of Exhibit A, or if none are specified, then as determined by the City Attorney. B. Decline to Participate. Regardless of whether Consultant is designated as an FPPC Filer, Consultant shall not make, or participate in making or in any way attempt to use Consultant's position to influence a governmental decision in which Consultant knows or has reason to know Consultant has a financial interest other than the compensation promised by this Agreement. 2ptyg.wp Standard Form Two Party Agreement (Fourth Revision) November 2, 1993 Page 6 C. Search to Determine Economic Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant warrants and represents that Consultant has · diligently conducted a search and inventory of Consultant's economic interests, as the term is used in the regulations promulgated by the Fair Political Practices Commission, and has determined that Consultant does not, to the best of Consultant's knowledge, have an economic interest which would conflict with Consultant's duties under this agreement. D. Promise Not to Acquire Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will not acquire, obtain, or assume an economic interest during the term of this Agreement which would constitute a conflict of interest as prohibited by the Fair Political Practices Act. E. Duty to Advise of Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will immediately advise the City Attorney of City if Consultant learns of an economic interest of Consultant's which may result in a conflict of interest for the purpose of the Fair Political Practices Act, and regulations promulgated thereunder. F. Specific Warranties Against Economic Interests. Consultant warrants and represents that neither Consultant, nor Consultant's immediate family members, nor Consultant's employees or agents ("Consultant Associates") presently have any interest, directly or indirectly, whatsoever in any property which may be the subject matter of the Defined Services, or in any property within 2 radial miles from the exterior boundaries of any property which may be the subject matter of the Defined Services, ("Prohibited Interest"), other than as listed in Exhibit A, Paragraph 15. Consultant further warrants and represents that no promise of future employment, remuneration, consideration, gratuity or other reward or gain has been made to Consultant or Consultant Associates in connection with Consultant's performance of this Agreement. Consultant promises to advise City of any such promise that may be made during the Term of this Agreement, or for 12 months thereafter. Consultant agrees that Consultant Associates shall not acquire any such Prohibited Interest within the Term of this Agreement, or for 12 months after the expiration of this 2ptyg.wp Standard Form Two Party Agreement (Fourth Revision) November 2, 1993 Page 7 Agreement, except with the written permission of City. Consultant may not conduct or solicit any business for any party to this Agreement, or for any third party which may be in conflict with Consultant's responsibilities under this Agreement, except with the written permission of City. 7. Hold Harmless Consultant shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attorneys' fees) arising out of the conduct of the Consultant, or any agent or employee, subcontractors, or others in connection with the execution of the work covered by this Agreement, except only for those claims arising from the sole negligence or sole willful conduct of the City, its officers, or employees. Consultant's indemnification shall include any and all costs, expenses, attorneys' fees and liability incurred by the City, its officers, agents, or employees in defending against such claims, whether the same proceed to judgment or not. Further, Consultant at its own expense shall, upon written request by the City, defend any such suit or action brought against the City, its officers, agents, or employees. Consultants' indemnification of City shall not be limited by any prior or subsequent declaration by the Consultant. 8. Termination of Agreement for Cause If, through any cause, Consultant shall fail to fulfill in a timely and proper manner Consultant's obligations under this Agreement, or if Consultant shall violate any of the covenants, agreements or stipulations of this Agreement, City shall have the right to terminate this Agreement by giving written notice to Consultant of such termination and specifying the effective date thereof at least five (5) days before the effective date of such termination. In that event, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by Consultant shall, at the option of the City, become the property of the City, and Consultant shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused City by Consultant's breach. 9. Errors and Omissions In the event that the City Administrator determines that the Consultants' negligence, errors, or omissions in the performance of work under this Agreement has resulted in expense to City 2ptyg.wp Standard Form Two Party Agreement (Fourth Revision) November 2, 1993 Page 8 greater than would have resulted if there were no such negligence, errors, omissions, Consultant shall reimburse City for any additional expenses incurred by the City. Nothing herein is intended to limit City's rights under other provisions of this agreementl 10. Termination of Agreement for Convenience of City City may terminate this Agreement at any time and for any reason, by giving specific written notice to Consultant of such termination and specifying the effective date thereof, at least thirty (30) days before the effective date of such termination. In that event, all finished and unfinished documents and other materials described hereinabove shall, at the option of the City, become City's sole and exclusive property. If the Agreement is terminated by City as provided in this paragraph, Consultant shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials to the effective date of such termination. Consultant hereby expressly waives any and all claims for damages or compensation arising under this Agreement except as set forth herein. 11. Assignability The services of Consultant are personal to the City, and Consultant shall not assign any interest in this Agreement, and shall not transfer any interest in the same (whether by assignment or novation), without prior written consent of City. City hereby consents to the assignment of the portions of the Defined Services identified in Exhibit A, Paragraph 17 to the subconsultants identified thereat as "Permitted Subconsultants". 12. Ownership, Publication, Reproduction and Use of Material All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced under this Agreement shall be the sole and exclusive property of City. No such materials or properties produced in whole or in part under this Agreement shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express written consent of City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such reports, studies, data, statistics, forms or other materials or properties produced under this Agreement. 13. Independent Contractor City is interested only in the results obtained and 2pty9.wp Standard Form Two Party Agreement (Fourth Revision) November 2, 1993 Page 9 Consultant shall perform as an independent contractor with sole control of the manner and means of performing the services required under this Agreement. City maintains the right only to reject or accept Consultant's work products. Consultant and any of the Consultant's agents, employees or representatives are, for all purposes under this Agreement, an independent contractor and shall not be deemed to be an employee of City, and none of them shall be entitled to any benefits to which City employees are entitled including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Therefore, City will not withhold state or federal income tax, social security tax or any other payroll tax, and Consultant shall be solely responsible for the payment of same and shall hold the City harmless with regard thereto. 14. Administrative Claims Requirements and Procedures No suit or arbitration shall be brought arising out of this agreement, against the City unless a claim has first been presented in writing and filed with the City and acted upon by the City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may from time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and suc~ policies and procedures used by the City in the implementation of same. Upon request by City, Consultant shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 15. Attorney's Fees Should a dispute arising out of this Agreement result in litigation, it is agreed that the prevailing party shall be entitled to recover all reasonable costs incurred in the defense of the claim, including costs and attorney's fees. 16. Statement of Costs In the event that Consultant prepares a report or document, or participates in the preparation of a report or document in performing the Defined Services, Consultant shall include, or cause the inclusion of, in said report or document, a statement of the numbers and cost in dollar amounts of all contracts and subcontracts relating to the preparation of the report or document. 17. Miscellaneous A. Consultant not authorized to Represent City Unless specifically authorized in writing by City, Consult- 2ptyg.wp Standard Form Two Party Agreement (Fourth Revision) November 2, 1993 Page 10 ant shall have no authority to act as City's agent to bind City to any contractual agreements whatsoever. B. Consultant is Real Estate Broker and/or Salesman If the box on Exhibit A, Paragraph 16 is marked, the Consultant and/or their principals is/are licensed with the State of California or some other state as a licensed real estate broker or salesperson. Otherwise, Consultant represents that neither Consultant, nor their principals are licensed real estate brokers or salespersons. C. Notices Ail notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. Ail notices, demands and requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified herein as the places of business for each of the designated parties. D. Entire Agreement This Agreement, together with any other written document referred to or contemplated herein, embody the entire Agreement and understanding between the parties relating to the subject matter hereof. Neither this Agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. E. Capacity of Parties Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. F. Governing Law/Venue This Agreement shall be governed by and construed in accordance with the laws of the State of Cali[ornia. Any action arising under or relating to th~s Agreement shall be brought only in the federal or state courts located in San Diego County, State of California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City of Chula Vista. [end of page. next page is signature page.] 2ptyg.wp Standard Form Two Party Agreement (Fourth Revision) November 2, 1993 Page 11 MAY-05 2001 13:~6 CAPORICCI CROPPER LARSON 714 456 0686 P,02 Signature Page to _.. Agreement between Cityof Chula Vista and Caporicci, Cropper & Larson for Audit Sel-vices. IN WITNESS WHEREOF, City and Consultant have executed this Agreement thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: Dated: , 19__ City of Chula Vista by: Shirley Morton, Mayor Attest: Susan Bigelow, City Clerk Approved as to forT~: John M. Kaheny, City Attorney Dated: Caporicci, Cropper & Larson, S Larson, ~artner Gary C~oricci, P~rtner Exhibit List to Agreement (x) Exhibit A. ( ) Exhibit B: 2ptyg.wp Standard Form Two Party Agreement (Fourth Revision) November 2, 1993 Page 12 TOTAL P. 02 Exhibit A to Agreement between City of Chula Vista and Caporicci, Cropper & Larson LLP. 1. Effective Date of Agreement: May 08, 2001 2. City-Related Entity: (x) City of Chula Vista, a municipal chartered corporation of the State of California ( ) Redevelopment Agency of the City of Chula Vista, a political subdivision of the State of California ( ) Industrial Development Authority of the City of Chula Vista, a ( ) Other: , a [insert business form] 3. Place of Business for City: City of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910 4. Consultant: Caporicci,Cropper & Larson 5. Business Form of Consultant: ( ) Sole Proprietorship ( X ) Partnership ( ) Corporation 6. Place of Business, Telephone and Fax Number of Consultant: Caporicci, Cropper & Larson, LLP. Certified Public Accountants 17512 Von Karman Ave. Voice Phone (877) 862-2200 Fax Phone (866) 436-0927 2PTY9-A.wp Exhibit A to Standard Form Agreement November 2, 1993 Page 1 7. General Duties: A. General Scope of Work Consultant shall conduct an audit of the described activities pursuant to Generally Accepted Auditing Standards for the fiscal years ending June 30, 2001, 2002, and 2003, and at the City's option, 2004 and 2005. The audit examination should not include a detailed audit of all of the transactions recorded in the accounts of the City, unless otherwise herein specified, but will be based upon tests of accounting records and other supporting evidence'S'for selected periods during the fiscal year under review sufficient to enable the contracting independent auditor to express an informed written opinion on: 1. The financial position of the various funds of the City as of the balance sheet date and the results of operations for the year reported. 2. The propriety of accounting principles followed. 3. Compliance with applicable laws. 4. The financial accountability of officers and employees. Organizations to be Audited 1. City of Chula Vista ( the "City") 2. Redevelopment Agency of the City of Chula Vista 3. Chula Vista Bayfront Conservancy Trust ("BCT"). Additional Special Audits and Services 1. Financial and compliance audits required by the Single Audit Act of 1984. 2. Preparation of the Annual State and Federal Tax Returns for the "BCT". Reports to be Issued Following the completion of the audit of the fiscal year's financial statements, the auditor shall issue: 1. A report on the fair presentation of the financial statements in conformity with generally accepted accounting principles. 2PTY9-A.wp Exhibit A to Standard Form Agreement · November 2, 1993 Page 2 2. A report on the internal control structure based on the auditors understanding of the control structure and assessment of control risk. 3. A report on compliance with applicable laws and regulations. 4. A report on the internal control structure used in administering Federal financial assistance programs. 5. A report on compliance with specific requirements applicable to major Federal financial assistance programs. 6. A report on compliance with specific requirements applicable to nonmajor Federal financial assistance programs. 7. A report on compliance with general requirements for both major and nonmajor Federal financial assistance programs. 8. A report on compliance with specific requirements applicable to the State Local Transportation Partnership Program. In the required reports on internal controls the auditor shall communicate any reportable conditions found during the audit. A reportable condition shall be defined as a significant deficiency in the design or operation of the internal control structure which could adversely affect the organization's ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statements. Reportable conditions that are also material weaknesses shall be identified as such in the report. Nonreportable conditions discovered by the auditors shall be reported in a separate letter to management which shall be referred to in the reports on internal controls. 2PTY9-A.wp Exhibit A to Standard Form Agreement November 2, 1993 Page 3 Auditors shall be required to make an immediate written report of all irregularities and illegal acts or indications of illegal acts of which they become aware to the City Council, City Manager, City Attorney and Director of Finance. 8. Scope of Work and Schedule: DETAILED ~COPE OF WORK A. Budget In accordance with provisions of the Charter of the City of Chula Vista, it is the duty of the City Manager to prepare and submit to the Council the annual budget and such reports as may be required by that body. The outside auditor shall examine the final budget document as approved by the City Council and compare, on a test basis, the estimated revenues and appropriations as shown in the budget document with the entries recorded on the revenue ledger and the appropriation ledger maintained by the Finance Department. B. Funds The auditor shall examine the City Charter, ordinances or resolutions, and minutes of the City Council pertaining to all funds of the City to determine the purpose of each fund and the proper disposition of all funds revenues, expenditures, and year-end balances. The auditor shall examine the various fund transactions and balances in each fund and prepare the appropriate financial statements for the audit report. C. Verification of Cash and Securities 1. Cash and Checks The auditor shall count all cash and checks in the Finance Department as of June 30. The auditor shall subsequently be satisfied that all items counted and verified are deposited in the City's depository bank. Investment securities owned by the City and held in safekeeping by the City's various banks and financial institutions shall be verified as to their existence as of June 30. Written confirmation shall be obtained from all City depositories of balance on hand at June 30. 2PTY9-A.wp Exhibit A to Standard Form Agreement November 2, 1993 Page 4 2. Surprise Cash Counts The auditor shall make, during the year, at least two surprise cash counts of the funds in the Finance Department in cooperation with staff members. 3. Collateral Pledged for Funds on Deposit The auditor shall examine the records of pledged collateral and make such tests of depository bank pooled collateral operations as may be necessary to express an opinion as to the legal sufficiency of the collateral to safeguard the City of Chula Vista's bank deposits. 4. Accounting Records The auditor shall examine the City's internal accounting and administrative controls to determine that accounting procedures are adequate to safeguard assets and provide reasonable assurance of proper recording of financial transactions. D. Assets 1. Cash and Investments Treasury and investment operations are the responsibility of the Finance Department. The auditors shall verify the cash balances and the existence of the investments. The investments market value shall be reviewed and compared to book value. The auditor shall review balances as of June 30 and investments earnings recorded during the fiscal year. The footnote disclosure shall be in compliance with GASB #3. 2. Fixed Assets The auditor shall examine the procedures for recording the acquisition of and the disposal of property owned by the City, The auditor shall compare the annual inventories of property with the controls maintained by the Finance Department. The auditor shall review the transactions involving fixed assets to the extent necessary to assure that accountability for fixed assets is maintained. 2PTYg-A.wp Exhibit A to Standard Form Agreement November 2, 1993 Page 5 E. Liabilities 1. Accounts Payable The auditor shall make a sufficient examination of accounts payable to enable them to determine that, in general, they bear evidence of verification and approval with supporting documents such as purchase orders, vendor's invoices, receiving reports, transportation bills, contracts and other documents where necessary. The auditor shall~also be satisfied that the claims were charged against the proper departmental appropriations and that funds were available at the date the purchase was made. 2. Bonded Debt The auditor shall examine the amount of bonded debt of the City and the outstanding debt determined by the auditor should be reconciled to the accounting records of the City by fund and amount outstanding on June 30. 3. Reserves for Uncompleted Purchase Orders and Encumbrances The auditor shall examine documents supporting reserves for uncompleted purchase orders and encumbrances to determine that such reserves are adequate and properly recorded. 4. Other Liabilities and Deferred Credits The auditor shall be satisfied as to the fairness of the accounts representing other liabilities and deferred credits. F. Fund Balances The auditor shall examine revenues and expenditures by funds and analyze the changes in fund balances for the financial statement of each fund in the audit report. G. Single Audit Act The independent auditor shall perform a financial and compliance audit under the Single Audit Act of 1984. The audit shall be made in accordance with the 2PTY9-A.wp Exhibit A to Standard Form Agreement November 2, 1993 Page 6 Standards for Audit of Governmental Organizations, Programs, Activities, and Functions, issued by the U.S. General Accounting Office, and the provisions of the U.S. Office of Management and Budget (OMB) Circular A- 128, Audits of State and Local Governments. Chula Vista~s cognizant agency is the U.S. Department of Housing and Urban Development (HUD). SCHEDULE A. Date for Commencement of Consultant Services: (x) Same as Effective Date of Agreement ( ) Other: B. Dates or Time Limits for Delivery of Deliverables: Deliverable No. 1: City Financial Statements - Sept. 30 Deliverable No. 2: RDA Financial Statements - Sept. 30 Deliverable No. 3: Single Audit Report - Sept. 30 Deliverable No. 4: BCT Financial Statements - Sept.30 C. Date for completion of all Consultant services: 9. Insurance Requirements: (x) Statutory Worker's Compensation Insurance ( ) Employer's Liability Insurance coverage: $1,000,000. ( } Commercial General Liability Insurance: $1,000,000. (x) Errors and Omissions insurance: None Required (included in Commercial General Liability coverage). ( ) Errors and Omissions Insurance: $250,000 (not included in Commercial General Liability coverage). 10. Materials Required to be Supplied by City to Consultant: A. The City will prepare the following statements and schedules for the auditor. Additional statements or schedules may be prepared if mutually agreed upon in advance. 2PTYg-A.wp Exhibit A to Standard Form Agreement November 2, 1993 Page 7 General Purpose Financial Statements Cash and Investments Cash with Fiscal Agent/Trustee Transactions Interest Income Detail Operating Transfers/Residual Equity Transfers Arbitrage Calculations GFAAG Summary of Transactions Compensated Absences GLTDAG Summary of Transactions Bank Reconciliation Budget Amendments Property Tax Schedule Loans Receivable & Payable Accounts Receivable & Accounts Payable Advances Receivable & Payable between Funds PERS Summary of Covered Payroll and Contributions Single Audit Schedule of Federal Financial Assistance {SFFA) B. Work Area, Telephones, Photocopying and FAX Machines The City will provide the auditor with reasonable work space, desks and chairs. The auditor will also be provided with access to a telephone line, photocopying machine and FAX machine. Long Distance telephone and/or FAX communications will be charged to the auditor 11. Compensation: A. (x) Single Fixed Fee Arrangement. For performance of all of the Defined Services by Consultant for the fiscal year 2000-2001 audit as herein required, City shall pay a single fixed fee in the amounts and at the times or milestones or for the Deliverables set forth below: 2PTYg-A.wp Exhibit A to Standard Form Agreement November 2, 1993 Page 8 Single Fixed Fee Amount: $53,950, payable as follows: Milestone or Ryent or Deliverable Amount or Percent of Fixed Ve~ City Financial Statements $25,230 RDA Financial Statements $10,375 Single Audit Report $5,150 BCT Financial Statement $4,050 Transient Occupancy Tax Audit Report $9,145 For fiscal year 2001-2002 and fiscal year 2002-2003 will be $54,170 and $57,530 respectively. For the two option years after that, the compensation will be increased by the lessor of the increase in the Consumer Price Index - All Urban (Dec. to Dec.) or 5%. Rate Schedule~ Classification of Employee Hourly of Consultant RnTt~ PartneL $135 Managem $105 Supervisor Staff $ 95 Professional Staff $ 60 Administative Staff _ $ 50 12. Materials Reimbursement Arrangement For the cost of out of pocket expenses incurred by Consultant in the performance of services herein required, City shall pay Consultant at the rates or amounts set forth below: (x) None, the compensation includes all costs. Cost or Rate ( ) Reports, not to exceed $ : ( ) copies, not to exceed $ : ( ) Travel, not to exceed $ 1. This section should be completed in all cases--if the main compensation scheme is a "time and materials arrangement" or for the purposes of requiring Additional Services. 2PTYg-A.wp Exhibit A to Standard Form Agreement November 2, 1993 Page 9 Printing, not to exceed $ : Postage, not to exceed $ : Delivery, not to exceed $ : Long Distance Telephone Charges, not to exceed $ Other Actual Identifiable Direct Costs: , not to exceed $ : , not to exceed $ : 13. Contract Administrators: City: Robert W. Powell, Deputy City Manager Consultant: Stephen L. Larson, CPA 14. Liquidated Damages Rate: ( ) $ per day. ( ) Other: 15. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: (x) Not Applicable. Not an FPPC Filer. ) FPPC Filer Category No. 1. Investments and sources of income. Category No. 2. Interests in real property. Category No. 3. Investments, interest in real property and sources of income subject to the regulatory, permit or licensing authority of the department. Category No. 4. Investments in business entities and sources of income which engage in land development, construction or the acquisition or sale of real property. Category No. 5. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the City of Chula Vista (Redevelopment Agency) to provide services, supplies, materials, machinery or equipment. Category No. 6. Investments in business entities 2PTY9-A.wp Exhibit A to Standard Form Agreement November 2, 1993 Page 10 and sources of income of the type which, within the past two years, have contracted with the designated employee's department to provide services, supplies, materials, machinery or equipment. ( ) Category No. 7. Business positions. ( ) List "Consultant Associates" interests in real property within 2 radial miles of Project Property, if any: 16. ( ) Consultant is Real Estate Broker and/or Salesman 17. Permitted Subconsultants: 18. Bill Processing: A. Consultant's Billing to be submitted for the following period of time: (x Monthly Quarterly Other: B. Day of the Period for submission of Consultant's Billing: ) First of the Month ) 15th Day of each Month ) End of the Month ) Other: C. City's Account Number: Various 19. Security for Performance ) Performance Bond, $ ) Letter of Credit, $ ) Other Security: Type: Amount: $ 2PTYg-A.wp Exhibit A to Standard Form Agreement November 2, 1993 Page 11 (x) Retention. If this space is checked, then notwithstanding other provisions to the contrary requiring the payment of compensation to the Consultant sooner, the City shall be entitled to retain, at their option, either the following "Retention Percentage" or "Retention Amount" until the City determines that the Retention Release Event, listed below, has occurred: (x) Retention Percentage: 10% ( ) Retention Amount: $ Retention Release Event: (x) Completion of Ail Consultant Services ( ) Other: 2PTY9-A.wp Exhibit A to Standard Form Agreement November 2, 1993 Page 12 COUNCIL AGENDA STATEMENT Item ~, Meeting Date 5/8/2001 ITEM TITLE: Resolution Awarding a Purchase Agreement in the amount of $236,183.81 for two 5-cubic yard dump tracks and one street patch track to Dion International Trucks through a cooperative bid agreement with the City of San Diego, and a Purchase Agreement in the amount of $92,139.33 to EW Truck & Equipment for one 12-cubic yard dump truck. / SUBMITTED BY: Director of Public Works REVIEWED BY: City Manager?, ..~'~ (4/5ths Vote: Yes__ No X ) It is recommended that this item be pulled and continued to the meeting of 5/15/01. H:\HOM£\ENGINEER~AGENDA\A113 New Growth pulled.doc COUNCIL AGENDA STATEMENT Item Meeting Date $/08/2001 ITEM TITLE: Resolution Awarding a Purchase Agreement in the amount of $236,183.81 for two 5-cubic yard dump trucks and one street patch truck to Dion International Trucks through a cooperative bid agreement with the City of San Diego, and a Purchase Agreement in the amount of $92,139.33 to EW Truck & Equipment for one 12-cubic yard dump truck. SUBMITTED BY: Director of Public Work/~2/~ Deputy City Manager W REVIEWED BY: City Manager ~ ~ i~ (4/5tbs Vote: Yes No X ) City Council approved, on February 27, 2001, the staffing studies that authorized the addition of 11 positions and equipment for the Public Works Operations Division. The equipment approved included heavy trucks needed for the new crews. The Chula Vista Municipal Code Section 2.56,140 and Council Resolution No. 6132 authorize the Purchasing Agent to participate in cooperative bids with other government agencies for the purchase of materials of common usage. The City, therefore, is participating in a current City of San Diego bid from Dion International Trucks for two 5-cubic yard dump trucks and a street patch truck. For the 12-cubic yard dump truck, EW Truck & Equipment Co. has extended the same price, terms, and conditions to the City of Chula Vista that existed on a recent purchase. RECOMMENDATION: That the City Council approve the Resolution awarding the Pumhase Agreement in the amount of $236,183.81 for two 5-cubic yard dump trucks and one street patch truck to Dion International Trucks through a cooperative bid agreement with the City of San Diego, and a Pumhase Agreement in the amount of $92,139.33 to EW Truck & Equipment for one 12-cubic yard dump truck. DISCUSSION: In the past, the City of Chula Vista has entered into purchasing agreements with the City of San Diego for various pieces of equipment. This Council action will add three dump trucks and one street patch track to the fleet due to increased serviced demands attributed to new growth within the City of Chula Vista. FISCAL IMPACT: Sufficient funds of $328,323.14 have been provided for in the Public Facilities Development Impact Fee Fund. C:\WINDOWS~Temporary lnternet Files\OLK2230LA. I 13 New Growth.doc RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AWARDING A PURCHASE AGREEMENT IN THE AMOUNT OF $236,183.81 FOR TWO 5-CUBIC YARD DUMP TRUCKS AND ONE STREET PATCH TRUCK TO DION INTERNATIONAL TRUCKS THROUGH A COOPERATIVE BID AGREEMENT WITH THE CITY OF SAN DIEGO, AND A PURCHASE AGREEMENT IN THE AMOUNT OF $92,139.33 TO EW TRUCK & EQUIPMENT FOR ONE 12-CUBIC YARD DUMP TRUCK WHEREAS, on February 27, 2001, the City Council approved the staffing studies that authorized the addition of 11 positions and heavy equipment needed for the new crews for Public Works Operations Division; and WHEREAS, Chula Vista Municipal Code Section 2.56.140 and Council Resolution No. 6132 authorize the Purchasing Agent to participate in cooperative bids with other government agencies for the purchase of materials of common usage; and WHEREAS, the City, therefore, is participating in a current City of San Diego bid from Dion International Trucks for two 5-cubic yard dump trucks and a street patch; and WHEREAS, for the 12-cubic yard dump truck, EW Truck & Equipment Co. has extended the same price, terms, and conditions to the City of Chula vista that existed on a recent purchase. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby award a Purchase Agreement in the amount of $236,183.81 for two 5-cubic yard dump trucks and one street patch truck to Dion International Trucks through a cooperative bid agreement with the City of San Diego, and a Purchase Agreement in the amount of $92,139.33 to EW Truck & Equipment Co., Inc. for one 12-cubic yard dump truck. Presented by Approved as to form by John P. Lippitt J~hn~. Kahen~ Director Public of Works C~torney J: \attorney\reso\dump truck bid COUNCIL AGENDA STATEMENT Item: Meeting Date: 5/8/01 ITEM TITLE: Resolution Approving thc Performing and Visual Arts Task Force's selection of the FY 2000-01 Performing and Visual Arts Grant recipients and their m~ grant awards totaling $64,797 SUBMITTED BY: Deputy City Manager REVIEWED BY: City Manager/~ l~ ,~ (4/5ths Vote: Yes No X,, ,,) In 1997, thc City Council approved a Sublease with the House of Blues Concerts, Inc. (formerly Universal Concerts) that established a process whereby ticket sales proceeds at the Coors Amphitheater would bc paid to the City and utilized for a Performing and Visual Arts Fund. This fund is to be used for arts grants to the Chula Vista community for thc purpose of promoting and stimulating thc growth of performing and cultural arts within thc City of Chula Vista. As called for in the sublease, a Performing and Visual Arts Task Force was established and annually makes recommendations to the City Council regarding the arts grant awards. The Task Force is assisted by thc Office of Cultural Arts, which formally conducts the grant application process. Thc Task Force has reviewed thc FY 2000-01 applications and is now making thc necessary recommendations to the City Council. STAFF RECOMMENDATION: That Council approve the Task Force's selection of the FY 2000-01 Performing and Visual Arts Grant recipients (as listed below) and their monetary grant awards totaling $64,797. BOARDS/COMMISSIONS RECOMMENDATION: Thc Task Force recommends that the City Council award arts funds to groups and individuals as outlined in this report. DISCUSSION: In late 1998, an advisory commission, entitled the Visual and Performing Arts Task Force, was established per the requirements of the sublease. The current members are: Mayor Shirley Horton Scott Alevy, Member at Large Nora McMartin, City staff representative Larry Perondi, Sweetwater Union High School representative Tracy Goodwin, Chula Vista Elementary School representative Buck Martin, House of Blues Concerts representative William Virchis, Cultural Arts Commission representative Item: __, Page 2 Meeting Date: 5/8/01 The City's Office of Cultural Arts administered the Performing and Visual Arts Fund grant application process. Over 100 "Performing and Visual Arts Fund Grant Application Packets" were distributed by the Office to arts groups and individuals in the Chula Vista community. The Office then conducted two "Technical Workshops" on Friday, December 8, 2000, and Saturday, December 9, 2000, to assist potential applicants. The "Technical Workshops" and "Grant Application Packets" both highlighted a number of points, including the established criteria for award of grants. All interested parties were instructed that final applications were due on January 12, 2001. Forty-two applications totaling $91,001 in requests were received by the due date. Upon receipt, the Office of Cultural Arts sent a copy of each application to the members of the Visual and Performing Arts Task Fome for their review and numerical scoring on February 6, 2001. The forty-two grant applications were then reviewed and ranked by the pre-established criteria by the Task Force at two meetings on March 7, 2001, and April 18, 2001. At the April 18th meeting, the Task Force selected twenty-nine applicants, based upon their ranking, for receipt of the Performing and Visual Arts Fund Grants. The Task Fome recommends they receive the following awards, totaling $64,797: APPLICANTS RECEIVING A "4" RANKING (THE HIGHEST SCORE) · None APPLICANTS RECEIVING A "3" RANKING (THE SECOND HIGHEST SCORE) · Bonita Business and Professional Association- Bonitafest $3,000 To provide funding for a "Headliner" entertainer to perform at the Bonitafest "Kick-Off" in Rohr Park during Summer 2001 · Chula Vista Art Guild, Inc. $2,326 To conduct a major art event entitled "Portrait of a Community: Chula Vista 2001 ". The project will create a permanent record of Chula Vista as a community through drawings and paintings completed by local artists · Cultural Arts Commission $2,500 To provide funding to help defray costs for the annual Chula Vista Summer Concert Series, "Music in the Park", which takes place in Memorial Bowl, EastLake Community Park and Friendship Park, June-August 2001 Item: , Page 3 Meeting Date: 5/8/01 · Friends of the Civic Center Library $2,000 To provide funding to help defray costs for the 2001 "Library Cultural Program Series" at the Civic Center Branch Library · Friends of the Chula Vista Heritage Museum $1,850 To produce "A Guide to Public Art in Chula Vista" · Manny Ramirez: "Aerial Photography" $2,000 To create portable photo displays of aerial photos of the City of Chula Vista to be displayed in public places in Chula Vista APPLICANTS RECEIVING A "2" RANKING (THE THIRD HIGHEST SCORE) · Bonita Artists Potpourri $1,100 To provide funding to raise the awareness of arts in the community by presenting community workshops in painting and drawing · Bonita Vista High School Band $2,500 To commission a band composition for average high school to advanced middle school concert bands · Castle Park Elementary School $700 To create a multimedia and telecommunications learning experience that will allow stude l OOOOOnts to learn how to use computer and video equipment and develop writing and speaking skills · Castle Park High School Trojan Brigade $2,500 To provide funding for "The Blockbuster Teen Festival, Job Fair and Concert" · Chula Vista Children's Choir $2,500 To recruit more children in the Chula Vista Elementary School District for the Children's Choir by providing training and scholarships ~, Chula Vista Elementary School District $2,000 To provide theater arts education to approximately 600 students · Chula Vista High School for the Creative and Performing Arts $2,500 To provide.funds to expand the Chula Vista Band Review and increase the promotion and awareness of this Annual Civic Musical Event for 20-30 high school and junior high school bands Item: , Page 4 Meeting Date: 5/8/01 · Cultural Arts Commission $1,500 To provide funding to help defray costs for the annual Chula Vista Visual and Performing Arts Festival (Taste of the Arts) held in Marina View Park in April 2001 · First United Methodist Chumh of Chula Vista $1,600 To provide funding to defray costs for presenting the musical production of "Sound of Music" to the community during Summer 2001 · Friends of the Civic Center Library $2,000 To provide funding for performing arts groups for the benefit of over 5,000 children who participate in the 2001 Summer Reading Program · Friends of the Civic Center Library $2,000 To provide funding for musical performances for young adults who have participated in the 2001 Young Adult Summer Reading Program · Friends of the Chula Vista Heritage Museum $ 650 To purchase a plaque to commemorate the "Walk of History" photographs along Third Avenue · Friends of the South Chula Vista Library $1,600 To provide funding to help defray costs for the 2001 "Library Cultural Programs" at the South Chula Vista Branch Library · Hilltop High School Band Boosters $2,500 To provide training in jazz, ballet, modern & hip hop dance styles as well as elements of choreography culminating in a dance production · Hilltop High Music Tech Ensemble $1,000 To prepare and present a series of music technology concerts and clinics at local schools, community events and the California State Music Educators Conference during the spring of 2001 · Mariachi Scholarship Foundation $2,500 To present scholarships to Mariachi student musicians and to student ballet folklorico dancers who will perform in the Annual Mariachi Gala Item: ___, Page 5 Meeting Date: 5/8/01 · Music Machine Boosters- Bonita Vista High School $2,500 To help support Music Machine community performances · Montgomery High School $1,000 To provide support for the "Island Steel Drum Band" and the Mariachi Griego" performing student groups · On Stage Playhouse $2,500 To provide drama education for area children and a live theater experience for over 500 children and their families · Southwestern College $1,000 To create mural art on the campus ("Murals of Cultural Expression ") that will instill acceptance and respect for racial heritage involving students, parents and teachers in the fabrication · Sweet Adelines International, San Diego Chorus $2,000 To provide funding to expand the program in Chula Vista to take "Barbershop Music" workshops to the Chula Vista elementary schools and to organize quartets in the middle and high schools and to do a community performance · Vista Square Elementary School $700 To provide funding to allow two award-winning art students to attend "The International Creative Arts Festival" sponsored by the Center on Deafness in Chicago APPLICANTS RECEIVING A "i" RANKING (THE FOURTH HIGHEST SCORE) · Martha E. Sanchez/Ballet Xochilt To purchase music, train and prepare local dancers to perform at $750 community venues (library, schools, senior centers) In addition, The Task Force recommends that a grant award of $11,521 be given to the Cultural Arts Commission for the purpose of producing one community program at the Coors Amphitheater in 2001. The Commission receives 10% from this fund each year. The $11,521 is a combination of 10% funding from the 2000 and 2001 Arts Fund Granting Cycles. With these funds, the Task Force would like the Cultural Arts Commission, with staff assistance from the Office of Cultural Arts, to plan and conduct an event at the Coors Amphitheater. However, due to the high cost of producing a Item: , Page 6 Meeting Date: 5/8/01 performance at Coors, the Cultural Arts Commission did not do a "Community Use" day performance in 2000. Instead they decided to combine two years of funding and plan to do a community program in 2001. FISCAL IMPACT: There is no General Fund impact associated with these grants. To date $115,419 has been deposited by Coors into the Performing and Arts Fund. For the first (2000) arts grant cycle there was $64,422 available (combined funds from 1998 and 1999). On May 23, 2000, the Council approved awards totaling $47,767. This left a balance of $16,655 from the original amount of $64,422. A total of $7,822 was returned to the An Fund from the FY 1999-2000 grant awards (this included $6,422 returned by the Cultural Arts Commission). In February 2001 Coors deposited $50,997 (for FY 2000). This left a balance of $75,474 that could be used for the FY 2000-2001 grant cycle. The Performing and Visual Arts Task Force is now recommending that a total of $64,797 be approved for the FY 2000-2001 arts grant cycle. This will leave a remaining balance of $10,677 to be available for emergency "out-of-cycle" grant requests and for administrative costs (printing, postage, etc) associated with the preparation of the FY 2001-02 grant cycle, which will begin in December 2001. Any remaining funds may be carried over and added to next fiscal year's program. The Office of Cultural Arts will manage the contractual agreements and grant payments with the recipients. Attachments "A" Funding Criteria "B" List of Applicants ATTACHMENT A PERFORMING AND VISUAL ARTS FUND GRANT CRITERIA Who Can Apply - General Eligibility · Tax-exempt, non-profit organizations located in the City of Chula Vista · Educational institutions located in the City of Chula Vista · Religious organizations located in the City of Chula Vista · Performance groups associated with schools or educational institutions located in the City of Chula Vista · Visual Arts groups associated with educational institutions located in the City of Chula Vista · The City of Chula Vista and its various Departments, Boards and Commissions · Individuals residing in Chula Vista · Chula Vista residents who want scholarships for study ($1,000 maximum; must share art skill learned from scholarship with the community) · Groups located in the City of Chula Vista that want travel expenses related to a performing or visual exhibition ($1,000 maximum; must give back one performance or exhibition to the City of Chula Vista in exchange for the grant) Examples of How Grant Funds Could be Used · To pay an artist for a performance or exhibition · Materials for a creative event · Printing associated with an event or production · Rental of costumes for a production · Art/music/theater and dance projects in schools and the community · Programs that promote cultural diversity or cultural tourism · Items not covered in this section may be considered (under special circumstances) by the Performing and Visual Arts Task Force Eligibility Period or Time[rarne · Eligible events or productions held in calendar year 2001 only 7-? PERFORMING AND VISUAL ARTS FUND GRANT CRITERIA - continued Grant Application Scoring Criteria Project Administration Capability Maximum of 10 points · Artistic Merit Maximum of 30 points for organizations and 50 points for individual artists · Creativity and Innovation Maximum of 20 points · Community Impact Maximum of 20 points · Societal Relevance Maximum of 20 points for organizations (not applicable for individual artists) Rankings Based Upon Scoring Criteria · 4 ranking - 100-89 points Designates an applicant as the highest priority for funding. These are considered to be "model" in stature and to meet all review criteria to the highest degree. · 3 ranking - 88 - 79 points Considered good to excellent and receives funding, but less than that of a "4" designate applicant. This is a very good ranking and indicates a very solid organization/project that is approaching "model" status. However, there is room for improvement or development. · 2 ranking - 78 - 65 points Considered to be marginally fundable, and only if there are available funds. Applicant shows some merit, but does not meet the criteria in a strong or solid way · 1 ranking - 64 and below Not fundable under any circumstances, inappropriate for funding. -2- ATTACHMENT B PERFORMING AND VISUAL ARTS GRANT APPLICATIONS Bonita Artists Potpourri Bonita Business and Professional Association Bonita Vista High School Band Bonitafest Melodrama California Ballet Association, Inc Castle Park Elementary School Castle Park High School Trojan Brigade Chula Vista Art Guild, Inc Chula Vista Children's Choir Chula Vista Elementary School District Chula Vista High School for Creative and Performing Arts Citizen Artist Jazz Scholarship City of Chula Vista Parks and Recreation Community Jazz Performances Community Jazz Sessions Cultural Arts Commission - 2 applications First United Methodist Chumh of Chula Vista Friends of Friendship Park Sculpture Friends of the Arts Friends of the Chula Vista Heritage Museum - 2 applications Friends of the Civic Center Library - 3 applications Friends of the East Lake Branch Library Friends of the South Chula Vista Library - Literacy Team Hilltop High School Band Boosters Hilltop High School Music Tech Ensemble Immigration Express...All Aboard!) Mariachi Scholarship Foundation Montgomery High School Music Machine Boosters OnStage Playhouse Ramirez, Manny Sanchez, Martha E. Southwestern College Sweet Adelines International, San Diego Chorus Teatro Mtiscara Magica The Americas Foundation The Creative Art of Acting Program Vista Square Elementary School RESOLUTION NO. 2001- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE PERFORMING AND VISUAL ARTS TASK FORCE'S SELECTION OF THE FY 2000-01 PERFORMING AND VISUAL ARTS GRANT RECIPIENTS AND THEIR MONETARY GRANT AWARDS TOTALING $64,797 WHEREAS, in 1997, the City Council approved a Sublease with the House of Blues Concerts, Inc. (formerly Universal Concerts) that established a process whereby ticket sales proceeds at the Coors Amphitheater would be paid to the City and utilized for a Performing and Visual Arts Fund; and WHEREAS, this fund is to be used for art grants to the Chula Vista community for the purpose of promoting and stimulating the growth of performing and cultural arts within the City of Chula Vista; and WHEREAS, as called for in the sublease, a Performing and Visual Arts Task Force was established and annually makes recommendations to the City Council regarding the art grant awards; and WHEREAS, the Task Force is assisted by the Office of Cultural Arts, which formally conducts the grant application process; and WHEREAS, the Task Force has reviewed the FY 2000-01 applications and has recommended monetary grant awards totaling $64,797 as listed in the Council Agenda Statement. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby approve the Performing and Visual Arts Task Force's selection of the FY 2000-01 Performing and Visual Arts Grant recipients and their monetary grant awards totaling $64,797. Presented by Approved as to form by David Palmer John M. Kaheny [t Deputy City Manager City Attorney J:\Attomey~Reso\Visual Arts Grant recipients 7-l/ COUNCIL AGENDA STATEMENT Item ~ Meeting Date 5/08/2001 ITEM TITLE: Resolution Amending the FY00/0t budget by appropriating $40,000 in the Fleet Management Fund for an extraordinary repair of a pumper for the City of Chula Vista's Fire Department, and appropriating a transfer from the General Fund to the Fleet Management Fund to cover that cost. ./ SUBMITTED BY: Director of Public Works ~ Deputy City Manager 2,~ REVIEWED BY: City Manager (P~ ~ (4/5ths Vote: Yes X No ) One of the Fire Department's pumpers has a severe engine failure. This is a front line unit that needs to be returned to service in'unediately. The estimated cost of repairing the pumper exceeds the amount normally covered within the Fleet Management budget. Therefore, this action will allow immediate repair of the pumper. RECOMMENDATION: That the City Council amend the FY00/0I budget by appropriating $40,000 in the Fleet Management Fund for an extraordinary repair of a pumper for the City of Chula Vista's Fire Department, and appropriating a transfer from the General Fund to the Fleet Management Fund to cover that cost. BOARD/COMMISSION RECOMMENDATION: Not Applicable DISCUSSION: Recently a Fire Department's pumper experienced an engine loss of power while traveling between stations on the freeway. The pumper was taken to Valley Detroit Diesel, a factory- authorized repair facility for that type of engine, for diagnosis. It was determined that the extent of the damage would require an engine overhaul. The pumper is in the 12th year of its 20-year replacement cycle. Other agencies have also experienced engine problems around the t2th year of service with this particular manufacturer's engine type, although normally not this severe. However, after deliberation by both the Fire Department and Public Works Operations, it was determined that the transmission, which also has had 12 years of service with no extensive repairs, also be overhauled. The estimate of $40,000 includes an overhaul or replacement of the existing engine and transmission with a remanufactured (factory) engine and transmission. Included in this cost estimate are ancillary repairs that may also be needed. Page 2, Item __ Meeting Date: 5/08/2001 FISCAL IMPACT: The total fiscal impact to the General Fund is $40,000. The Fleet Management budget is an internal service fund in which funds must be expended from other departments in order for the section to operate and purchase capital items for replacement maintenance. Appropriations to fund Fleet Management are made in two places. The first place is an appropriation for Fleet Management to authorize expenditures for supplies, services and capital items. The second appropriation (which in total is the same as the amount for Fleet Management) is made to each division so that they can be charged for vehicle usage. Funds are collected on an annual basis through each affected department's operating budget. However, when additional funds are needed, these funds must be appropriated to Fleet Management from another source. M:\Public Works Operations~A113 Repair Fire App-final.doc RESOLUTION NO. 2001- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FY00/01 BUDGET BY APPROPRIATING $40,000 IN THE FLEET MANAGEMENT FUND FOR AN EXTRAORDINARY REPAIR OF A PUMPER FOR THE CITY OF CHULA VISTA'S FIRE DEPARTMENT, AND APPROPRIATING A TRANSFER FROM THE GENERAL FUND TO THE FLEET MANAGEMENT FUND TO COVER THAT COST WHEREAS, one of the Fire Department's pumpers has severe engine failure that needs to be returned to service immediately; and WHEREAS, the estimated cost of repairing the pumper exceeds the amount normally covered within the Central Garage's budget; and WHEREAS, Valley Detroit Diesel, a factory-authorized repair facility for this type of engine, determined that the extent of the damage would require an engine overhaul; and WHEREAS, after deliberation by both the Fire Department and Public Works Operations, it was determined that the engine and transmission be overhauled; and WHEREAS, a repair estimate of $40,000 includes the overhaul or replacement of the existing engine and transmission with a remanufactured (factory) engine and transmission with ancillary repairs that may also be needed. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby amend the FY00/01 budget by appropriating $40,000 in the Fleet Management Fund for an extraordinary repair of a pumper for the City of Chula Vista's Fire Department and appropriating a transfer from the General Fund to the Fleet Management Fund to cover that cost. Presented by Approved as to form by John P. Lippitt John M. Kaheny Director of Public Works City Attorney J:\Attomey\Reso\fire pumpm COUNCIL AGENDA STATEMENT ITEM: ~ MEETING DATE: 5/8/2001 ITEM TITLE: Resolution of the City Council of the City of Chula Vista Amending the Fiscal Year 2000-2001 Elections Budget for the City Clerk's Department by appropriating $8,313 from the unappropriated fund balance of the General Fund to cover unanticipated election costs SUBMITTED BY: Susan Bigelo~,,City Clerk Approval of the resolution will amend the City Clerk's elections budget by appropriating $8,313 to cover additional costs associated with the placement of three Charter amendments on the November 7, 2000 ballot. RECOMMENDATION: Council amend the Fiscal Year 2000-2001 General Fund budget to cover the above costs, from the available fund balance. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: The budget allocation for the November 7, 2000 election did not include sufficient funds for three proposed Charter amendments placed on the ballot by the City Council. Adoption of the resolution will amend the City Clerk's budget to accommodate these additional costs. FISCAL IMPACT: The net impact to the General Fund for Fiscal Year 2000-2001 will be $8,313. RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHLrLA VISTA AMENDING THE FISCAL YEAR 2000~2001 ELECTIONS BUDGET FOR THE CITY CLERK'S DEPARTMENT BY APPROPRIATING $8,313 FROM THE UNAPPROPRIATED FUND BALANCE OF THE GENERAL FUND TO COVER UNANTICIPATED ELECTION COSTS WHEREAS, in June 2000, the City Council adopted the City Clerk Department Budget for Fiscal Year 2000-2001; and WHEREAS, three proposed Charter amendments were subsequently placed on the November 7, 2000 ballot, and costs were higher than anticipated. NOW, THEREFORE, BE IT RESOLVED that $8,313 is hereby appropriated from the available balance of the general fund to the Elections Budget of the City Clerk's Department for Fiscal Year 2000-2001. Presented by Approved as to form by Susan Bigelow John ~vl.VI~at~ny City Clerk City Attorney PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, Califomia, this 8th day of May, 2001, by the following vote: AYES: Councilmembers: NAYS: Councilmembers: ABSENT: Councilmembers: Shirley Horton, Mayor ATTEST: Susan Bigelow, City Clerk STATE OF CALIFORNIA) COUNTY OF SAN DIEGO) CITY OF CHULA VISTA) I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2001- was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 8th day of May, 2001. Executed this day of May, 2001 Susan Bigelow, City Clerk COUNCIL AGENDA STATEMENT ITEM: / 0 MEETiNG DATE: May 8, 2001 ITEM TITLE: Resolution of the City Council of the City of Chula Vista Amending the Fiscal Year 2000-2001 Budget for the City Clerk's Department to reclassify one Deputy City Clerk position to Assistant City Clerk and appropriate funds therefor (4/5ths vote required) SUBMITTED BY: Susan Bigelo~, CMC/AAE, City Clerk Approval of the resolution will reclassify one Deputy City Clerk position to Assistant City Clerk, retroactive to the pay period beginning April 20, 2001. The reclassification will require an appropriation of $1,665.54 for salary and benefits from the unappropriated fund balance of the General Fund for the remainder of Fiscal Year 2000-2001. The reclassification request has the support of the City Manager and Director of Human Resources. RECOMMENDATION: Council adopt the proposed resolution. BOARD/COMMISSION RECOMMENDATION: Not applicable. DISCUSSION: The person serving in the subject Deputy position serves as an Assistant Department Head, acts as City Clerk in the City Clerk's absence, and is held accountable for the operation of the Department at such times. This person performs only those duties typically performed by a City Clerk, and the duties assigned to this position are more technical and varied and require more independent judgment and action than those currently assigned to the second Deputy position. Examples of the duties of the subject position include assisting with the election process, requiring the person in the position to be fully knowledgeable about state and local election law and procedures; counseling candidates and assisting with campaign statement filings; monitoring compliance with the Political Reform Act and the City's Conflict of Interest Code with regard to the filing of 300+ annual economic interest statements; and preparing the Council agenda in compliance with Brown Act requirements. The proposed job description for the position is attached. In addition, many cities the size of Chula Vista, as well as many smaller cities, have an Assistant City Clerk or Chief Deputy in addition to a Deputy City Clerk. Designation of an Assistant will clarify the organizational structure of this Department, will provide compensation at market value for the duties assumed, and is in keeping with the City's commitment to the retention of excellent employees. The reclassification request has the support of the City Manager and the Director of Human Resources. FISCAL IMPACT Adoption of the resolution will appropriate $1,665.54 from the unappropriated fund balance of the General Fund for salary and benefits to the City Clerk's budget for Fiscal Year 2000-2001. The ongoing expense thereafter is $8,900 annually. ASSISTANT CITY CLERK THE POSITION Under the direction of the City Clerk, the Assistant City Clerk performs professional administrative, technical, and supervisory assistance in the City Clerk's Office, serves as an Assistant Department Head, and performs the duties of the City Clerk in the absence of the City Clerk. The person in this position is required to attend evening City Council and Redevelopment Agency meetings. The nature, diversity, scope, and confidentiality of responsibilities require constant use of tact, discretion, initiative, and independent judgment. The ideal candidate is a motivated professional with excellent public relations skills; a customer-service orientation; the ability to analyze situations accurately and develop effective courses of action; the ability to communicate in a clear and concise manner both verbally and in writing; advanced computer skills; the ability to perform multiple tasks and address multiple priorities at the same time; the ability to work quickly, efficiently and accurately; the ability to establish and maintain effective working relations with staff, the public, and the Mayor and City Council; and the desire to be part of a dynamic team in a fast-paced setting. This is a mid- management, at-will position. PRINCIPAL DUTIES The Assistant City Clerk's duties may include, but are not limited to: acts as the City Clerk in the absence of the City Clerk; attends City Council, Redevelopment Agency, Housing Authority, Public Financing Authority and Industrial Development Authority meetings, records actions and prepares official minutes; supervises the preparation, assembly, and distribution of City Council agendas and agenda packets; prepares, posts and distributes notices of public meetings or heatings; assists the City Clerk with the organization and conduct of municipal elections; processes Charter amendments; codifies ordinances and updates the Municipal Code; insures that disclosure requirements are met under the Political Reform Act and Conflict of Interest Code; participates in preparation and administration of the department budget; acknowledges official signatures and administers oaths of office; assists in the preparation of the department's budget and monitors expenditures; researches and analyzes complex legal and administrative issues and prepares independent recommendations; assists in annual Board & Commission member training; maintains and updates the department procedures manual, the elected officials handbook, and the election results handbook; provides responsible, professional and technical assistance in the development, administration and implementation of City and department programs, goals, objectives, and procedures; coordinates and supervises the activities of clerical staff and departmental operations; plans and implements employee training; evaluates employee performance; responds to requests for research and information from the City Council, City staff and the public regarding City codes, ordinances and established policies and procedures; compiles data for administrative and public reports; operates technical equipment such as laptop computers and recording and lighting equipment; performs related duties as assigned. EMPLOYMENT STANDARDS Knowledge of: municipal organization and functions of City departments; applicable federal, state and municipal laws, regulations, policies and procedures as required by the job assignment, including those related to elections, agendas, meeting proceedings, conflict of interest and campaign statement filings, and related record keeping and maintenance; modem office procedures and records management methods; methods and techniques of supervision; microcomputer systems and software applications; correct English usage, spelling, grammar and punctuation; management principles and practices. Ability to: perform a wide variety of administrative duties on behalf of the City Clerk with minimal or no supervision; assist in the planning, organizing and directing of the functions of the City Clerk's Office; learn, evaluate and develop improvements in operations, procedures, and policies used in the City Clerk's Office; understand, interpret, explain, and apply related laws, regulations, policies and procedures; analyze situations accurately and develop effective courses of action; communicate in a clear and concise manner both verbally and in writing, and prepare clear and concise reports; follow and comply with written and oral instructions; establish and maintain cooperative, positive and effective working relations with staff, the public, and the Mayor and Councilmembers, and assist the public, City officials, staff and others contacted in the course of work with diplomacy and tact; lead, train, evaluate and direct the work ofpersounel, as assigned; perform administrative detail work; and perform confidential tasks with discretion. Experience and Education: Any combination equivalent to experience and education that could likely provide the required knowledge, skills and abilities is qualifying. A typical way to obtain the required knowledge, skills and abilities would be equivalent to a college degree with coursework in office technology, public or business administration, records management or a related field and four years of progressively responsible experience providing administrative staff support to a City Council, Board, Commission or other body which required developing agendas, preparing minutes, maintaining official records, and frequent contact with the public. Certified Municipal Clerk designation, Supervisory experience, elections experience, and/or experience working in a City Clerk's Office environment are highly desirable. Physical Demands and Working Conditions: Incumbents must perform work in an efficient, effective and timely manner without constant supervision; may perform work which involves lifting, pushing and pulling of objects which may weigh 25 pounds or more, such as cartons of records; require vision, which may be corrected; require hearing at a normal range as measured by a standard audiogram; are required to communicate in a clear and concise manner with both the public and co- workers; must be able to work at a computer work station or desk for extended periods of time and operate a computer keyboard; must be able to attend evening meetings regularly and occasional weekend meetings, as well. RESOLUTION NO. 2001- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FISCAL YEAR 2000-2001 BUDGET FOR THE CITY CLERK'S DEPARTMENT TO RECLASSIFY ONE DEPUTY CITY CLERK POSITION TO ASSISTANT CITY CLERK AND APPROPRIATE FUNDS THEREFOR WHEREAS, the person serving in the subject Deputy City Clerk position serves as an Assistant Department Head, acts as City Clerk in the City Clerk's absence, and is held accountable for the operation of the Department during such times; and WHEREAS, it is desirable to reclassify the subject Deputy City Clerk position to Assistant City Clerk to clarify the organizational structure of the Department, to provide compensation at market value for the duties assigned to the position, and to reflect the City's commitment to the retention of excellent employees. NOW, THEREFORE, BE IT RESOLVED that the amount of $1,665.54 for salary and benefits is hereby appropriated from the unappropriated fund balance of the General Fund to the City Clerk's budget for the remainder of Fiscal Year 2000-2001 to reclassify one Deputy City Clerk to Assistant City Clerk, effective the payroll period beginning April 20, 2001 Presented by Approved as to form by Susan Bigelow Johfi/h~.~Kaheny City Clerk City Attorney PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, Califomia, this 8~ day of May, 2001, by the following vote: AYES: Councilmembers: NAYS: Councilmembers: ABSENT: Councilmembers: Shirley Horton, Mayor ATTEST: Susan Bigelow, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN D1EGO ) CITY OF CHULA VISTA ) I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2001-__ was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 84 day of May, 2001. Executed ttfis day of April, 2000 Susan Bigelow, City Clerk /0 cou.c,. ^GE.D^ Item il Meeting Date 05/08/01 ITEM TITLE: Proposed Skate Park Report Directing Parks and Recreation staff to solicit community input with respect a proposed skate facility at Greg Rogers Park and enter into preliminary negotiations with Boys & Girls Club of Chula Vista for the operation of said facility. SUBMITTED BY: Parks and Recreation Director REVIEWED BY: City Manager ~,,~ ,~ (4/Sths Vote: Yes No X_) The need for a safe and secure skate venue in the City of Chula Vista has been recognized for a number of years. The City-wide Youth Summit in 1992 and public meetings for the Parks and Recreation Master Plan disclosed community sentiment for a skate facility. The Parks & Recreation Department has hired Purkiss Rose as a consultant to determine the feasibility of a skateboard facility in the City of Chula Vista at Greg Rogers Park on the Campus of the Oleander Boys and Girls Club. Preliminary discussions have been held with the Boys & Girls Club of Chula Vista for the operation of a skate facility at the Oleander/Greg Rodgers site. The Parks and Recreation Department now seeks direction from Council to proceed with the feasibility study and to solicit public input meetings with respect to the facility and to enter into MOU discussions with Boys & Girls Club of Chula Vista for operation of the facility. RECOMMENDATION: That the City Council: 1. Direct staff to develop a concept plan for a skate park at Greg Rogers Park on the campus of Oleander Boys & Girls Club. 2. Direct staff to continue with the feasibility study and convene public workshops with respect to the proposed facility. 3. Direct staff to enter into MOU discussions for the operation of a the skate park by the Boys & Girls Club of Chula Vista BOARD/COMMISSION RECOMMENDATION: The feasibility study was distributed to the Parks & Recreation Commission members at a special meeting on May 3, 2001. DISCUSSION: Back,qround: · In 1992 the City held the first Youth Summit at which time the need for a skate facility was enunciated. · The 1994 Youth Summit highlighted the Jack of legal and safe venues for skateboards and skates. · In 2000 the public meeting for the Parks Master Plan called for skate facilities inclusion in future parks. · Throughout this period, a history of requests by the public to City leaders for a skate facility. · In 2000 the Boys & Girls Club of Chula Vista postponed receipt of CDBG funding for a soccer facility in favor of exploring the possibility a skate facility at the Oleander Campus. · Parks and Recreation solicited RFPs for a feasibility study for a skate park and accepted/selected Purkiss-Rose-RSI Issues The overriding issue is safety. There are no skate venues in the City or South Bay to serve the needs of the youth of the community. The nearest facilities that meet the demands are in the City of San Diego at Robb Field and Mission Valley (a YMCA venture) another facility in Coronado is scheduled to open in the next couple of months. There is also the issue of illegality and the prohibition of skating and skateboarding in our City. Considerable public and private property damage may also be avoided by providing a dedicated skate venue. Liability concern regarding public operated skate parks was addressed by California Assembly Bill 1296 which added skateboarding to enumerated "hazardous recreational activities" and may potentially shield public entities from liability. The effects of this and other legislation must and will be reviewed and analyzed by the City's Liability/Risk Management Department and the City Attorney. The results of this analysis will be provided to Council prior to any additional requested action. It is the Parks & Recreation Department's intent to research the possibility of creating an ordinance requiring skaters to wear protective apparel (such as helmets, elbow pads, knee pads, etc) at all skate areas located in the City of Chula Vista. FISCAL IMPACT: None in this phase. Future impact, after public review, workshops, and approval by Council the Design and Construction of a 20,000 square foot facility is projected to cost in the neighborhood of $1,145,034. Possible funding sources are CBDG funds, state grants, fund raising opportunities, and Boys & Girls club participation. Attachments: Preliminary Feasibility Study with Conceptual Drawing Assembly Bill 1296 I~.ITY OF r~.HULA VISTA SKATE PARK FACILITY FEASIBILITY STUDY FEBI~UARY ~-0~, ~r'lO 1 ,Prepared By . Landscape Architecture Recreation and Park Planning 714,871.3638 fax 714.871.1188 email skate~purkiss-rose-rsi.com www. skatepa rkdesigner, com Skate park Facility Feasibility Study, City of Chula Feasibility Study The City of Chula Vista's Parks and l~ecreation Department, in conjunction with the Chula Vista Boys & Girls Club, is considering the feasibility of developing a skate facility at the Chula Vista Boys & Girls Club, located at 1301 Oleander Ave. With this consideration, City Staff engaged Purkiss Rose-RSI Landscape Architecture, Recreation & Park Planning to evaluate the site and make recommendations as to its strengths and ability to accommodate the proposed improvements. Once the site has been approved by Staff, pending input from the neighborhood and local skaters, the Design Team will proceed with the Design Process, which includes input from the local skaters. Steve Rose, Landscape Architect with PurMss Rose-RSI, met with City officials Andy Campbell, Sunny Shy, Charlene Long, and Ed Hall as well as Boys and Girls Club's representatives John Clingan, President and CEO and Emerald Randolph, Board member, with Luke Cully, intern, to visit the site and review the Feasibility Study process. Following, please find our evaluation and recommendations for the proposed improvements. 1 pur~iss-rose-rsi Skate Park Facility Feasibility Study, City of Chula W~ta Table of Contents Page 1. Introduction ......................................... . . . . .. .. .. 3 2 Types of Skate Park Facilities . .4 3. Impact of Public Complaints .................................... 5 4. Cost, Methods of Financing, and Maintenance ..................... 5 5. Insurance and Risk Management ................................ 6 6. Evaluation Criteria for Site Selection ............................. 8 7. Site Analysis ................................................ . 9 8. Cost Analysis .............................................. . 11 9. Summary & Recommendations ................................. 12 10. Vicinity Map, Site Plans and Photos ............................. 14 11. Examples of Similar Size Projects ............................... xx 2 If Skate Park Facility Feasibility Study, City of Chula V'tsta 1. INTRODUCTION Skateboarding has been a popular sport ia the United States for more than 30 years. According to American Sports Data, there are more than 9.3 million participants nationally, and the number is steadily growing. The majority of skateboarders are between the ages of 12-17 and primarily male, although females are showing an increasing imerest as cities are creating skating facilities where they feel safe. Advances ia equipment and facilities have opened the sport to all ages and abilities while reducing the number and severity of injuries. One advancement is the use ofurethane wheels, which allows for speed and maneuverability. Many areas were rich with Skate Parks during the mid to late 70's, and skating ia empty swimming pools was popular. Because of the nature of pools, pipes, and jumps that were used ia Skate Parks, this was the era of"vertical skating." In the 80's, due to liability issues and poor design of Skate Parks, the interest paid to skating at these parks diminished, and hundreds of Skate Parks in the nation closed. Armed with new boards and wheels, the skaters then moved to the streets, and "street skating" was born. Public spaces, parks, commercial or retail centers, where curbs, benches, rails, stairs, and street furniture could be found, were the places to skate. The production of videos showed phenomenal skills that could be displayed with modem skate technology and vertical ramps. Advances in technology for bearings and wheels, marketing of safety gear, and the growth of snowboarding as a parallel sport brought skateboarding back into the mainstream. The National Sporting Goods Association states that skateboarding is the fastest growing sport in the United States. In-line Skating is a recent sport that is sweeping the nation. According to the National Sporting Goods Association, there were 30 million participants in 1996, an increase of 70% from 1990. Unlike skateboarding, ia-line skating draws youth and adults, male and female alike. Many adults, who experience knee or other joint pain when jogging or running, find ia-line skating an inexpensive fitness alternative. Recently, the in-line skaters have moved onto the local skateboard parks and have begun to do stunts and tricks previously associated with skateboarding. These same tricks are done on snow by snowboarders. In-line skating is a byproduct of the ice hockey and skiing industry, where an alternative was needed by the athlete to stay in condition during the summer months. The first Rollerblades were manufactured in the 1980's, and this has grown into a multi-million dollar industry. The closing ceremonies of the 1996 Atlanta Olympic Games demonstrated to many a non-believer the world over the tremendous skill required for skating in the 90's. Skating has evolved into a combination of complex moves of street skating and aerial acrobatics and the daring of vertical skating. If-.7 Skate Park Facility Feasibility Study, City of Chula V'tsta 2. TYPES OF SKATE PARK FACILITIES Public and private Skate Parks are again becoming more common as recreation leaders, community leaders, user groups, and private entities see an opportunity to provide facilities to meet the currem need. There is also a driving force from merchants at commercial and retail centers to remove the skaters from their premises. This is also true of the desire to ban skaters fi.om public places such as streets, parks, plazas, schools and downtown areas. There is the potential of darnage to property, milling about by youths, potential accidents with pedestrians or customers, and a concern for loss of business. Often the proposed facilities are the result of ordinances, which prohibit skating on public or private property. Local police officers are asked to respond to these ordinances and have supported the development of Skate Parks as places for skaters to go. A variety of different Skate Parks have been constructed over the past five years across the United States. The styles generally fall into one of the following models: 1. Open, Free, Unsupervised Model This type of model is most commonly constructed by municipalities. It involves an unfenced open facility where there is no charge for participation. Built either as part of a larger park or as a stand-alone facility, it offers no supervision. These parks post rules clearly at the entrance, including a strong advisory that proper safety gear is worn. They are open for use during park hours, are not roofed, and in most cases not lighted. The design elements include street elements such as benches, ramps, curbs, pyramid, rails and free s~yle, which includes snake runs and bowls. Each style can complement the other at a single site or stand alone. A spectator's area should always be included. This model is maintained mostly by the youths who use it, and they are usually involved in the design of the park. The location of the skate facility is usually in an existing park that has parking facilities, restrooms and is close to public transportation. This modelis designed for the beginner or intermediate skater. 2. Enclosed, Free Unsupervised Model This type of model is enclosed by a fence, has movable ramps and other elements, and is often located on an existing parking lot. Ramps and obstacles are modular components made of wood and steel The facility is unmonitored, not supervised by city stall'or a non-profit organization. It is recommended that protective equipment beworn and users skate at their own risk. The facility is maintained by the users, and the city makes repairs to the components. This model can be designed for all levels of skaters. /! -? Skate Park Facility Feasibility Study, City of Chula I~tsta Enclosed, Fee, Supervised Model This type of model is enclosed or indoors, fully staffed and is a regulated facility. Even participant must register and have a parent sign a health/emergency form and release waiver. There is an admission cost, and rules regarding safety wear are strictly enforced. The facility offers clinics, lessons, summer camp, equipment and facility rentals, a repair shop, concessions, as well as promotional events. This model can be used by beginner, intermediate and advanced skaters. This model tends to exist in large market areas, which can support the attendance necessary to pay the operation costs. 3. IMPACT ON PUBLIC COMPLAINTS Local police departments, such as those in Huntington Beach and Temecula, CA and Yelm, Kent, and Des Moines, WA have reported that there has been a significant reduction in complaints from businesses and private properod owners related to skateboarding. When problems do occur, police o~cers can direct the offenders to an established alternative, a Skate Park. 4. COST, METHODS OF FINANCING, AND MAINTENANCE The cost to build a Skate Park is based on the size of the facility and type of construction. Concrete Skate Parks run between $20 and $22 per square foot to build. This cost does ~ot include removal of dirt from the site, off-site improvements, demolition of existing features, repair or retrofit of existing features, other site improvements or amenities, Architect/Engineer fees, testing fees, or inspection costs. Following are some of the ways and means available to fund the development, ongoing maintenance, and operational costs necessary to sustain a skate facility. These options can be used independently or jointly with others. 1. A nonprufit organization or service club could raise funds for development, maintenance, and insurance. 2. The facility or land could be leased to a concessionaire, who would cover cost and, if profitable, provide lessors with a share in the profits. 3. User fees could support a portion of maintenance and operation cost. This could increase insurance cost and liability. 4. Grants, donations, and volunteer labor and materials could assist with development but not necessarily cover all cost. 5. A County, City, or District could fund the improvements within its operation budget, development funds, or General Funds. Skate Park Facility Feasibility ~tudy, City of Chula Wtsta There is usually a commitment from the youths who use the facility to keep it clean and free &trash and graffiti. Park maintenance or operator staff typically would empty trash containers and maintain the surrounding areas. Existing Skate Parks constructed o£concrete with steel edging have proven to be low maintenance. 5. INSURANCE AND RISK MANAGEMENT Insurance companies have researched the issue of claims and lawsuits against jurisdictions and found little or no litigation. A similar study by the International Association of Skateboard Companies found a similar lack of litigation or settlements. According to the United States Consumer Products Safety Commission (USCPSC), approximately 26,000 persons are treated in hospital emergency rooms each year with skateboard-related injuries. Skateboarders may suffer injuries ranging from scrapes and scratches to sprains, fractures, and severe head injuries. Deaths due to collisions with cars and falls are also reported by the USCPSC. Despite these accident statistics, skateboarding is safer than many other recreational choices available to today's youth. The following data (based on 1996 statistics), concerning the number of participants, injuries, and per cent of participants receiving injuries, is compiled by the National Safety Council and the Consumer Safety Commission. Accident Levels by Sport and Level of Participation Table 1 Sport Participants Reported Injuries Percentage Baseball 36,600,000 437,207 1.26 Basketball 29,600,000 761,358 2.57 Football 14,700,000 409,296 2.78 Ice Hockey 1,700,000 61,264 3.60 Soccer 10,300,000 146,409 1.42 Volleyball 20,500,000 112,120 .54 Skateboarding 6,200,000 27,718 .40 Source: International Association of Skateboard Companies Lack of protective equipment, poor maintenance, and irregular riding surfaces are often cited as causes ofaccidents. Skateboarding requires good balance and body control, however, manyyoung riders have not developed the balance needed to quickly respond to those situations required to avoid injury. The majority of skateboarders are minors. Six out of every ten skateboard injuries involve children less than 15 years of age. Skateboarders who have been skating for less than a week suffer one-third of all injuries. Injuries to first-time skateboarders are, for the most part, due to falls. Many states have passed legislation extending public/private recreation liability exemption to 6 p~r~iss-rose-rsJ Skafe Park Facility Feasibility Study, City of Chula I~sta skateboarding and other non-motorized, wheel-based activities. As such, parties are not liable for unintentional injuries, provided there is no charge for the recreation. Skateboarding is now classified as a "hazardous recreational activity" (HRA). As a result of that designation, public agencies who construct skateboard facilities within their jurisdiction are provided limited immunity against accidents and injuries that may be suffered by skateboard enthusiasts subject to specific provisions outlined in the California Government Code (CGC) and Health and Safety Code (HSC). Existing law provides that public entities and public employees are not liable to any person who participates in an HRA, as specified, including any person who assists the participant or to any spectator who knew, or reasonably should have known, that the HRA created a substantial risk of injury to himself or herself and was voluntarily in the place or risk. An I-IRA is defined as a recreational activity conducted on the property ora public entity which creates a substantial risk of injury to a participant or spectator. On September 30, 1997, Governor Pete Wilson signed Assembly Bill (AB) 1296 into law, changing the interpretation of liability regarding skateboarders' injuries at public skateboard parks throughout California. AB 1296 (Morrow, Mazzoni and Strom-Martin), effective on January 1, 1998, adds "skateboarding" to the list of "hazardous recreational activities" for which public entities and their employees enjoy a qualified immunity from liability when a person engaged in that recreational activity on public property is injured. A similar Bill was recently signed into law by the State of Washington. AB 1296 provides that skateboarding at a public skateboard park is a "hazardous recreational activity" for purposes of those provisions if the person skateboarding is 14 years of age or older, the skateboarding activity was a stunt, trick, or luge skateboarding, and the skateboard park is on public property, as specified. The bill requires appropriate local public agencies to maintain a record of all known or reported injuries incurred by skateboarders in a public skateboard park or facility, and other information regarding those incidents, as specified, and would require copies of these records to be flied with the Judicial Council annually, beginning in 1999. By imposing additional duties on local public agencies, the bill creates a State-mandated local program. The bill requires the Judicial Council to submit a report to the Legislature regarding this information on or before March 31, 2000, as specified. The bill further provides for the repeal of these provisions on January 1, 2003. As indicated under AB 1296, public agencies must ensure that all Skate Park facilities are constructed and maintained in a manner as to reduce risk of injury to facility users. As a result, appropriate Skate Park design and construction are essential when communities are considering the possibility of building a public skate facility. No national, State, or local Skate Park standards presently exist or have been promulgated by any public agency or private organization. Within the skateboard community there may, however, exist acceptable design specifications and construction techniques that the community can utilize to enhance the safe use of those facilities while providing sufficient challenge for skateboarders of all levels. In the absence of routine supervision and enforcement of safety rules, it may be difficult to ensure that park users wear personal protective equipment (e.g., helmets, hip/knee/elbow pads, wrist braces, and gloves). As a result, design issues must take on increased importance relative to the reduction of any 7 lmr[~s~-rose'rsi Skate Park Fac'dlty Feasibility Study, City of Chula }~tsta public liability associated with those facilities. Presented below are general facility design standards: Planning and Design 1. The skateboard facility should be designed by an architect or landscape architect with experience in designing skateboard facilities; 2. Locate spectator and viewing areas for visitors at a safe distance away from the skaters; 3. Provide protective netting or barrier around skateboard runs to help impede flying boards or falls from spectator areas into the activity area; 4. Locate walkways at a safe distance from skaters; 5. Provide safe and easy pedestrian access that minimizes conflicts with any existing activities; 6. Test ramps through qualified skaters and safety experts for degree of difficulty and mark runs with signs or color for degree of difficulty; 7. Provide easy accessibility for an ambulance pick-up; 8. Provide an adequate draining system to eliminate water from ramps; 9. Provide adequate lighting; and 10. Post signs at entrances to facility requiring ANSI or SNELL approved bicycle helmets and additional protective wear for use by all entrants. Facilities Management 1. Conduct routine physical inspection of ramp, walk~?ay, parking, and spectator's area, documenting inspection, repairs, and maintenance; 2. Provide on-going maintenance (~ee of gaps, ridges, cracks, foreign material) to reduce trip, slip, and fall hazards; 3. Employ and/or contract only qualified technicians for facility maintenance and repair; 4. Post safety rules and regulation for facility use; 5. Require participants to wear personal protective gear at all times; and 6. Post and enforce the facility's operational hours. 6. EVALUATION CRITERIA FOR SITE SELECTION Site selection can be trying and time consuming. It has proven difficult to get the surrounding community, where a Skate Park is being considered, to embrace and support the idea. It is vital to the success ora project that the local residents near a proposed site be involved in the project review from the beginning. The following is a list of criteria for the evaluation ora potential site: I/-12 Skate Park Facility Feasibility Study, City of Chula V'tsta · Ownership of property · Availability of the site or time restrictions · Location within the City limits · Size, shape, and topography of available space · Site conditions (drainage patterns, trees, soils, underground utilities) · Accessibility · Visibility into the site · Existing park uses and facilities, current park layout · Adjacent land use, conflicts with neighbors · Parking · Restrooms · Security lighting · Available public transportation · Security · Site constraints, potential conflicts and impacts · Fast foods 7. Site Analysis Boys and Girls Club of Chula Vista The proposed location at the Boys and Girls Club is the dirt field, east of the existing building and is approximately 1.4 acres in size. This site is centrally located within the City and there is plenty of room for the proposed facility. Evaluation: · Ownership of Property ~ ' ' City owned. · Availability of the site or time restrictions The site is currently available. The site receives Httle use from the Boys and Girls Club with some parking activity on the site on weekends. · Location within the City limits Central portion of the City. · Size, shape, and topography of available space Rectangle shape, jTat, and approximately 1.4 acres in size · Site conditions The site is currently dirt, relatively flat, sloping to the south. There is a concrete v- 9 ~r~ss-rose-rsi Skate Park Facility Feasibility Study, City of Chula V'tsta ditch running along to the south border, sloping west to east. a Accessibility Good access n Visibility into the site Good visibility from the parking lot and east side of existing building. a Existing uses and facilities, current layout Existing fenced dirt playing field, with backstop and some play equipment. ~t portable building and storage containers are located at the north west corner. An uphill slope is to the north, while a downhill slope is located to the south and east. · Adjacent land use, conflicts with neighbors Rogers Park is located to the north, the Boys and Girls Club immediately to the west, a downwardslope andrecreation trail to the east, with residential up a slope further to the east, and a downward slope then a vacant lot to the south. ,4 street is located further south and residential beyond. Due to the distance to the closest residential area, there shouM not be a conflict with neighbors. · Parking Parking is provided on site. · Restrooms -' Restrooms are available. · Security Lighting Present in the parking lot. · Available public transportation Available in front of the Boys and Girls Club. m Security Good due to on-going activities and visual access from the parking lot. · Site constraints, potential conflicts and impacts Little, if any, site constraints. A better defined drop off area need~ to be designed as part of the improvements. There appears to be no underground utilities or easements on the existing playground No apparent neighborhood conflicts or impacts. The auto entry and exit is somewhat tight and it might be advisable to enlarge the existing condition. a Fast foods No fast food restaurant is close by. This is a nice, open play area, City owned, centrally located, in a nice neighborhood that includes an existing activity facility. The addition of the Skate Park will basically utilize an underused play area at the facility. The size of the area is ample and can be developed into a nice Skate Park. There is good visibilityinto the area. However, a drop-offshould be added. There is constant adult supervised activity happening at the facility. The project offers a great opportunity to add a stand-alone restroom / check-in / pro shop / concession stand. Parking is existing, however the entry to the parking lot and drop offarea is somewhat tight and may need to be widened. There is quite a distance to the closest neighborhood communities, so there should not be any conflicts with neighbors. Other site improvements may be required such as drinking fountain, bike racks, nighttime lighting, entry plaza, shade structures, bleachers and telephone. There is also a great opportunity for programmed events such as demonstrations, clinics and classes to improve skill for both boys and girls. 10 p~r~ss-ro~-rsi I1-/¢ Skate Park Facili~ Feasibili~ ~tudy, ¢ily of Chu~ ~a ~t ~a~ ~ecn our ex~e~cncc, on s~ proje~t~, t~at some 1o~ nd~or~ may not embrace t~c ia~a or a ~ate P~ bc~g lo~atea in thc~ nei~borhood~ There ~c m~y ~sconceptions a~out who toaay's 8gatcr~ are ~a t~e proUems that c~ oc~r at ~gate P~. We have rouna that toaay's skaters ~e average ~ds, who have sele~ skatebo~dMg or ~ine skatMg ~ thek spoa of choice, ~d just w~t a place to skate. Skate P~ks have proven not be noir, m~te~ce problems or aRractive to non-deskables ~d do not cause problems to nei~borhoods or reduce r~ estate v~ues. 8. COST ~ALYSIS There ~ be fiRle cost to prep~e the site for construction ~d we ~tidpate no cost to relocme under~ound ut~ties. The p~ng lot ~ need to be retrofitted for a drop off~m. We surest the ehstMg fence be replaced. We reco~end that the skate surface be b~een 25,000 ~d 30,000 squ~e feet in s~e. TMs ~ address ~ the skating sWles ~d s~ll levels. TMs s~e w~ ~so qu~ for competkions, ~desirable. Site meMties such as restrooms / ch~k-in / pro-shop / concessio~ ent~ plug w~ ways, shade structures, bleachers, benches, dfi~ng foum~ phone, fencMg, trash receptacles, fi~ting, some l~dscapMg, ~d ~gation ~e Mcluded M ~e cost estimate. No soil problems ~e ~ticipmed. It is expe~ed that excavated so~ c~ be leR on-site ~ ~ cases. The improvement c~ easily be develop~ in ph~es as described M Scen~o 3. C. Boys and Girls Club Site Scen~o 1 - 30,000 square foot Sk~e P~k ~th site ameni~es Item 1. ~ ~d En~roment~ Documentation ~eg. Dec,) Fees $122,140.00 Item 2. Mob~ation ~d Pe~ts 50,000.00 Item 3. ~ading ~d Dr~nage 15,000.00 Item 4. Remove e~h ~om site 0.00 Item 5. Re-routing ofut~ties 0.00 Item 6. Skate Park (30,000sq. ~.) x 660,000.00 Item 7. Site Improvements (em~ pl~ h~dscape, d~ng founts, etc.) 75,000.00 Item 8. Fenc~g (850 feet) 32,800.00 Item 9. Restrooms / Check-in / Pro-shop / Concession 225,000.00 Item 10. El~tdc~i~ting (se~ee, p~el, under~ound, Skate P~ phone) 130,000.00 Item 11. Drop o~ pl~ting ~d ~gation 40,000.00 Item 12. Secud~ System 10,000.00 10% Con~gency 135,994.00 Total Const~ction Cost Estimate $1,495,934.00 ~cena~o 2 - 20, 000 squ~e foot Sk~e P~g ~th site ameni~es Item 1. ~ ~d En~oment~ Documentation ~eg. Dec.) Fees $93,140.00 Item 2. Mobilization ~d Pe~ts 50,000.00 Item 3. ~ading ~d Dr~nage 15,000.00 Item 4. Remove e~h ~om site 0.00 Item 5. Re-routing of utilities 0.00 Item 6. Skate P~k (20,000sq. ~.) 440,000.00 Item 7. Site Improvements (ent~ plea, h~dscape, dfi~ng fount~n, etc.) 75,000.00 11 ~r~-r~-rs~ Skate Park Facility Feasibility Study, City of Chula F't~a Item 8. Fencing (850 feet) 32,800.00 Item 9. Restrooms / Check-in / Concession 175,000.00 Item 10.ElectricaFLighfmg (service, Underground, Skate Park, security lights) 110,000.00 Item I 1. Drop off, planfmg and irrigation 40,000.00 Item 12. Security System 10,000.00 10% Contingency 104,094.00 Total Construction Cost Estimate $1,145,034.00 Scenario 3 - Develop the project in phases Item 1. A/E and Environmental Documentation (Neg. Dec.) Fees $64,340.00 Item 2. Mobilization and Permits 50,000.00 Item 3. Grading and Drainage 15,000.00 Item 4. Remove earth from site 0.00 Item 5. Re-routing of utilities 0.00 Item 6. First phase Skate Park (20,000sq. fi. designed for a 30,000 sq. fi.) 440,000.00 Item 7. First Phase Site Improvements (some hardscape, drinking fountain, etc.) 50,000.00 Item 8. Fencing (850 feet) 32,800.00 Item 9. Restrooms / Check-in / Concession (not in the first phase) 0.00 Item 10. First Phase Electric/Lighting (service, underground, security lights) 62,000.00 Item 11. Drop off, planting and irrigation (not in the first phase) 0.00 Item 12. Security System 10,000.00 10% Contingency 72,414.00 Total Construction Cost Estimate for the First Phase $796,554.00 Scenario 3 is an example ora project that is built in phases. Based on the approved master plan for the entire site, priorities can be set to match the budget. In this example, 20,000 of the 30,000 square foot Skate Park would be completed, some site improvements and hardscape would be installed, the restroom / Check-in / Pro-Shop / Concession building would be handled at a later date, less lighting would be installed, and the drop off area, planting, and irrigation would be introduced at a later date. 9. Summary & Recommendations The City of Chula Vista, with a population of 174,000, could easily support the development ora public Skate Park. The need for such a facility, as experienced in other communities, has proven to be a high priority. This priority is also expressed in the City Wide Parks Master Plan. The recreational return for the dollar invested in the Skate Park will be high as compared to other sports facilities. The site selection process proves to be the most difficult aspect of building a Skate Park. Many neighbors, where Skate Parks are being considered, do not embrace the idea of adding such a facility. The City of Chula Vista is fortunate to have this site available for its first public Skate Park. City Staff considered many sites for the Skate Park and the Boys and Girls Club was an excellent choice because it offers all the attributes necessary for a successful project. There were many factors that were considered in determining the preferred site for the proposed improvements. Since it is common 12 lmr~iss-rose-rsi II Skate Park Fac.'dity Feasibility Study, City of Chula V'tsta to have several Skate Parks located throughout a City to serve the community, it is realistic to consider more than one Skate Park, if the fu-st installation proves to be successful. We feel the Boys and Girls Club site offers a great opportunity for the first Skate Park in the City to be located. We recommend that the City conducts a community meeting, inviting local neighbors and skaters to review the site, look over the site analysis, and learn about the proposed improvements. We will participate in the discussion and present who today's skaters are as well as trends in Skate Park design. Security is always an issue and we recommend the fencing be replaced. We advise a six to eight foot high black vinyl chain link with small openings (poor toe hold) and a security gates be installed. We also put for*yard that a motion detector and WebCam be installed as part of an overall security system. We will address all questions and concerns and seek to develop a consensus on the site selection. Once the site has been approved, we can proceed with public input by the user group and neighboring community in order to start the design process. The first workshop will be divided into two segments. In the first segment, we will review the user needs, types of facilities that are being proposed, design, level of difficulty, size, cost, basis for site selection, and other issues. As part of the first segment, the site analysis will be presented to thoroughly review the opportunities and constraints"ofthe preferred site. At this time, input can be received from those in attendance regarding their concerns and mediation can occur. All comments will be addressed. The second segment of the first workshop will be dedicated to working with the skaters in a design input format to receive information regarding their desires and layout preferences. We will review any plans already developed and present our critique. At a second workshop, we will present design alternatives, take input, and seek a consensus on the preferred concept. We will refine the conceptual layout based on input and present it to the City for further input and approval. Once we have approval from staff, Commissions, Boys and Girls Club, and Council, we will proceed with development of construction documents. The project will then go through the bidding and construction phases. The overall master plan for the site can be developed along with the construction cost estimates. If the overall construction cost is beyond the budget, then priorities can be established and the project can be built in phases. 13 par~is~-ros~-rs~ 1t-/7 VICINITY MAP, SITE PLANS, AND PHOTOS // 1 - Looking East /t .. 21 2 - Looking North 3 - Looking East /t-23 4 - Looking East 5 - Looking North 6 - Looking East 7 - Looking East 8 - Looking West ~ ~:5 ~ p~rf, iss rose-fsi 9 - Looking North 10 - Looking Southeast pur[~iss rose-fsi 11 ~ Parking lot, looking Southwest 12 - Looking Northeast 13 - Looking North VICIONY ULVU. 161.5 × 5 166.~ 159 161.6 x t,a "-,' <~ AB 1296 Assembly Bill - CHAPTERED Page 1 of 3 BILL N~3MBER: ~B 1296 CH3~PTERED BILL TEXT CHAPTER 573 FILED WITH SECRET~.RY OF STATE SEPTEMBER 30, 1997 APPROVED BY GOVERNOR SEPTEMBER 29, 1997 PASSED THE ASSEMBLY SEPTEMBER 11, 1997 PASSED THE SENATE SEPTEMBER 4, 1997 AMENDED IN SENATE AUGUST 29, 1997 AMENDED IN SENATE ~3LY 22, 1997 INTRODUCED BY Assenfoly Members Morrow, Mazzoni, and Strom-Martin (Coauthor: Senator Thompson) FEBRUARY 28, 1997 An act to amend, repeal, and add Section 115800 of the Health and Safety Code, relating to liability. LEGISLATIVE COUNSEL'S DIGEST A_B 1296, Morrow. Liability. Existing law provides that neither public entities nor public employees are liable to any person who participates in a hazardous recreational activity. Existing law defines "hazardous recreational activities" for these purposes to include various activities. This bill would provide that skateboarding at a public skateboard park is a hazardous recreational activity for purposes of those provisions if the person skateboarding is 14 years of age or older, the skateboarding activity was stunt, trick, or luge skateboarding, and the skateboard park is on public property, as specified. The bill would require appropriate local public agencies to maintain a record of all known or reported injuries incurred by skateboarders in a public skateboard park or facility, and other information regarding those incidents, as specified, and would require copies of these records to be filed with the Judicial Council annually, beginning in 1999. By imposing additional duties on local public agencies, the bill would create a state-mandated local program. The bill would require the Judicial Council to submit a report to the Legislature regarding this information on or before March 31, 2000, as specified. The bill would provide for the repeal of these provisions on January 1, 2003. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement, including the creation of a State Mandates Claims Fund to pay the costs of mandates that do not exceed $1,000,000 statewide and other procedures for claims whose statewide costs exceed $1,000,000. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 115800 of the Health and Safety Code is amended to read: http://info.sen.ca.gov/pub/97-98/bill/asm/ab_125.../ab_1296 bill 19970930_chaptered.htm 12/06/2000 AB 1296 Assembly Bill - CHAPTERED Page 2 of 3 115800. (a) NO operator of a skateboard park shall permit any person to ride a skateboard therein, unless that person is wearing a helmet, elbow pads, and knee pads. (b) With respect to any facility, owned or operated by a local public agency, that is designed and maintained for the purpose of recreational skateboard use, and that is not supervised on a regular basis, the requirements of subdivision (a) may be satisfied by compliance with the following: (1) Adoption by the local public agency of an ordinance requiring any person riding a skateboard at the facility to wear a helmet, elbow pads, and knee pads. (2) The posting of signs at the facility affording reasonable notice that any person riding a skateboard in the facility must wear a helmet, elbow pads, and knee pads, and that any person failing to do so will be subject to citation under the ordinance required by paragraph (1) . (c) "Local public agency" for purposes of this section includes, but is not limited to, a city, county, or city and county. (d) (1) Skateboarding at any facility or park owned or operated by a public entity as a public skateboard park, as provided in paragraph (3), shall be deemed a hazardous recreational activity within the meaning of Section 831.7 of the Government Code if all of the following conditions are met: (A) The person skateboarding is 14 years of age or older. (B) The skateboarding activity that caused the injury was stunt, trick, or luge skateboarding. (C) The skateboard park is on public property that complies with subdivision (a) or (b) . (2) In addition to the provisions of subdivision (c) of Section 831.7 of the Government Code, nothing in this section is intended to limit the liability of a public entity with respect to any other duty imposed pursuant to existing law, including the duty to protect against dangerous conditions of public property pursuant to Chapter 2 (commencing with Section 830) of Part 2 of Division 3.6 of Title 1 of the Government Code. (3) For public skateboard parks that were constructed on or before January 1, 1998, this subdivision shall apply to hazardous recreational activity injuries incurred on or after January 1, 1998, and before January 1, 2001. For public skateboard parks that are constructed after January 1, 1998, this subdivision shall apply to hazardous recreational activity injuries incurred on or after January 1, 1998, and before January 1, 2003. For purposes of this subdivision, any skateboard facility that is a movable facility shall be deemed constructed on the first date it is initially made available for use at any location by the local public agency. (4) The appropriate local public agency shall maintain a record of all known or reported injuries incurred by a skateboarder in a public skateboard park or facility. The local public agency shall also maintain a record of all claims, paid and not paid, including any lawsuits and their results, arising from those incidents that were filed against the public agency. Beginning in 1999, copies of these records shall be filed annually, no later than January 30 each year, with the Judicial Council, which shall submit a report to the Legislature on or before March 31, 2000, on the incidences of injuries incurred, claims asserted, and the results of any lawsuit filed, by persons injured while skateboarding in public skateboard parks or facilities. (5) This subdivision shall not apply on or after January 1, 2001, to public skateboard parks that were constructed on or before January 1, 1998, but shall continue to apply to public skateboard parks that are constructed after January 1, 1998. (e) This section shall remain in effect until January 1, 2003, and as of that date is repealed, unless a later enacted statute, enacted before January 1, 2003, deletes or extends that date. http://info.sen.ca.gov/pub/97-98/bill/asm/ab_125.../ab_1296 bill 19970930_chaptered.htm 12/06/2000 AB 1296 Assembly Bill - CHAPTERED Page 3 of 3 SEC. 2. Section 115800 is added to the Health and Safety Code, to read: 115800. (a) No operator of a skateboard park shall permit any person to ride a skateboard therein, unless that person is wearing a helmet, elbow pads, and knee pads. (b) With respect to any facility, owned or operated by a local public agency, that is designed and maintained for the purpose of recreational skateboard use, and that is not supervised on a regular basis, the requirements of subdivision (a) may be satisfied by compliance with the following: (1) Adoption by the local public agency of an ordinance requiring any person riding a skateboard at the facility to wear a helmet, elbow pads, and knee pads. (2) The posting of signs at the facility affording reasonable notice that any person riding a skateboard in the facility must wear a helmet, elbow pads, and knee pads, and that any person failing to do so will be subject to citation under the ordinance required by paragraph (1). (c) "Local public agency" for purposes of this section includes, but is not limited to, a city, county, or city and county. (d) This section shall become operative on January 1, 2003. SEC. 3. Notwithstanding Section 17610 of the Government Code, if the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. If the statewide cost of the claim for reimbursement does not exceed one million dollars ($1,000,000), reimbursement shall be made from the State Mandates Claims Fund. Notwithstanding Section 17580 of the Government Code, unless otherwise specified, the provisions of this act shall become operative on the same date that the act takes effect pursuant to the California Constitution. http://info.sen.ca.gov/pub/97-98/bill/asm/ab_125.../ab_1296 bill 19970930_chaptered.htm 12/06/2000 AB 1296 Assembly Bill - Bill Analysis Page 1 of 3 AB 129~ Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1296 (Morrow) As Amended August 29, 1997 Majority vote ASSEMBLY: 58 9 (May 22 ~7) SENATE: 3779 ~Se~tember ~L 1997) Original Committee Reference: SUMMARY : Adds "skateboarding" to the list of "hazardous recreational activities" (NRAs) for which a public entity is immune from liability when a person engaged in that recreational activity on public property is injured. Specifically, this bill among other things: 1) Provides that the immunity provisions referenced above only apply if all of the following criteria are met: a) The skateboarding is at any facility or park o~rned or operated by a public entity as a public skateboard park, as specified; b) The person skateboarding is 14 years of age or older; c) The skateboarding activity that caused the injury was stunt, trick, or luge skateboarding; and d) The skateboard park is on public property. 2) Provides that nothing in the bill is intended to limit the liability of a public entity with respect to any other duty imposed pursuant to existing law, including the duty to protect against dangerous conditions of public property. 3) Requires appropriate local public agencies to maintain a record of all known or reported injuries incurred by a skateboarder in a public skateboard park or facility, and other information regarding those incidents, as specified, and would require copies of these records to be filed with the Judicial Council (JC) annually, beginning in 1999. It also requires JC to submit a report to the Legislature on or before March 31, 2000, regarding the results of the reports from the local public agencies. 4) Provides that this bill would sunset on January 1, 2003. The Senate amendments delete the Asse~ly version of the bill and replace it with the more detailed provisions listed above. EXISTING yAW : 1) Provides that public entities and public employees are not liable to any person who participates in an HPJ~, including any person who assists the participant, or to any spectator who knew or reasonably should have known that the HRA created a //-5/0 http://info.sen.ca.gov/pub/97-98/bill/asm.../ab_1296 cfa 19970908_223745 asm floor.htm 12/06/2000 AB 1296 Assembly Bill - Bill Analysis Page 2 of 3 AB_~.296 Page 2 substantial risk of injury to himself or herself and was voluntarily in the place of risk. 2) Defines an HRA as a recreational activity conducted on the property of a public entity which creates a substantial risk of injury to a participant or spectator. Certain activities are specifically designated as HRAs. These include: a) animal riding; b) bicycle racing or jumping; c) mountain bicycling; d) off-road motorcycling or four-wheel driving of any kind; e) motorized vehicle racing; f) tree climbing; g) surfing; and h) diving from places other than a diving board. 3) Provides that the immunity from liability to persons participating in an HRA does not limit liability in a number of specified situations, including where the injury is caused by the public entity's or employee's negligent failure to properly construct or maintain any structure, recreational equipment or machinery utilized in the HRA. AS PASSED BY THE ASSEMBLY , this bill revised the list of HRAs to include skateboarding. FISCAL EFFECT : None COMMENTS : The many public entities and skateboard enthusiasts who support this bill argue that the risks inherent in skateboarding are similar to the risks inherent in the other HRAs for which public entities and employees have a qualified immunity from liability. Specifically, they argue that skateboarding poses risks similar to those posed by mountain biking, horseback riding, surfing and tree climbing. Manufacturers of skateboard equipment and skateboarders support this bill because they believe it will encourage public agencies to build skateboard parks. Many public agencies would like to build skateboard parks as a means of confining skateboarding activities to the park and discouraging or prohibiting skateboarding in areas where it can conflict with pedestrian and vehicular uses. AnalYaiS p~e~aKi~_~y : Daniel A. Pone / ajud / (916) 445-4560 FN 036007 http://info.sen.ca.gov/pub/97-98/bilI/asm.../ab 1296 cfa 19970908 223745 asm floor.htm 12/06/2000 CITY COUNCIL AGENDA STATEMENT ITEM NO.: !~ MEETING DATE: 05/08/01 ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA: APPROVING THE CONSOLIDATED ANNUAL PLAN FOR FISCAL YEAR 2001-02 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME INVESTMENT PARTNERSHIP (HOME) PROGRAM BUDGETS; AND AUTHORIZING TRANSMITrAL OF THE CONSOLIDATED ANNUAL PLAN TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) SUBMITTED BY: COMMUNITY D~ELOPMENT DIRECTOR ~ ~ REVIEWED BY: city MANAGER (~/~0 / 4,.NS VOTE: 'S NG BACKGROUND The Ci~/Council held a public hearing on April 3, 2001 to review and receive public comment on projects and programs being considered for CDBG and HOME funding. The 30 day comment period to review the draff Consolidated Annual Plan ("Plan") began on March 16, 2001 and ended on April 16, 2001. All public comments received by staff during the 30-day comment period have been considered and, if deemed appropriate, integrated into the final Plan. The City of Chula Vista is eligible to receive $2,114,000 in CDBG entitlement funds from the U.S. Department of Housing and Urban Development (HUD) for 2001-02. The City is also eligible to receive $938,000 in HOME funds from HUD. Combining both CDBG and HOME entitlements, the City will be able to invest into the community a total of $3,052,000 from these two sources for 2001-02. Staff is recommending that the City Council approve the Consolidated Annual Plan (Exhibit A) which includes staff recommendations for both the CDBG and HOME programs for 2001-02. Consolidated Annual Plan The Consolidated Annual Plan identifies a strategy for addressing the needs of the communi~/ through the use of CDBG and HOME funds. These needs include allocating funds for public services, community projects, economic development, capital improvements, affordable housing, single-family rehabilitation, and first-time homebuyer programs. Per HUD regulations, the Ci~/must hold a 30-day comment period for the public to review the Consolidated Annual Plan and make comments or suggest changes. This 30-day period began March 16, 2001 and ended on April 16, PAGE 2, ITEM NO.: MEETING DATE: 05/08/01 2001. A public notice was published in a local newspaper which notified the public of the process. Attached as Exhibit A is the Draft Consolidated Annual Plan. RECOMMENDATION That the Ci~ Council adopt the resolution [1] approving the Consolidated Annual Plan for fiscal year 2001-02, including both the Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) program budgets and authorizing transmittal of the Consolidated Annual Plan for fiscal year 2001-02 to the U.S. Department of Housing and Urban Development (HUD); and [2] appropriate $2,953,911 in CDBG and HOME funds for various programs and projects. BOARDS/COMMISSIONS RECOMMENDATION Staff is in the process of re-establishing the CDBG Ad-Hoc Committee for fiscal year 2002-03 to assist in the review process for all social service funding applications. A staff report will be prepared and submitted within the next six months requesting Council approval of the members of the CDBG Ad-Hoc Committee along with the formal review process. DISCUSSION For the 2001-02 CDBG program, the City of Chula Vista is eligible to receive a CDBG entitlement of $2,114,000. The total amount of CDBG funding requested is summarized as follows, along with staff's funding recommendation: CATEGORY AMOUNT REQUESTED STAFF RECOMMENDATION Public Service Funding $739,362 $317,100 Community Projects 629,003 $144,050 Economic Development 152,144 $49,759 Capital Improvement Program 2,604,702 $1,082,202 Administration and Planning 422,800 $422,800 TOTAL $4,548,011 $2,015,911 Staff recommends budgeting $2,015,911 of the $2,114,000 entitlement. The balance of $98,089 will be available in the event a mid-year budget request is necessary or to provide additional funding for under-funded capital improvement projects. In order to be eligible for block grant funding, a project or service must address at least one of the CDBG national objectives which are: [1] Benefit primarily Iow and moderate income families; PAGE 3, ITEM NO.: MEETING DATE: 05/08/01 [2] aid in the prevention or elimination of slums or blight; and [3] meet other community needs having a major emergency (disasters, etc.). Please note that substantial detail on all of the components of the CDBG and HOME budgets is provided in the CDBG Notebook that was distributed to Council for the April 3, 2001 public hearing. PUBLIC SERVICE FUNDING REQUESTS The City received twenty-five (25) eligible requests for public service funding totaling $739,362. The City may allocate up to $317,100 for public service organizations, based on a 15 percent cap of the entitlement funds. All of the funding requests from public service organizations are CDBG-eligible as they meet the national objective to primarily benefit Iow-income families. The proposals are included in the CDBG Notebook under Public Service Requests. Methodology for Making Funding Recommendations. In developing staff recommendations, the following principles were utilized: 1. Recommended funding levels for public services was based on [al ability to expend CDBG funds in a timely manner; [b] submittal of quader reports on time; and [c] review of the stated objedives as outlined in the CDBG agreement with actual performance 2. Recommended funding levels for public services should not be below levels that make the offered CDBG-eligible activities infeasible. 3. Funding preferences should go to programs which best meet the criteria of providing new services to Chub Vista, providing services from a local base, collaborating efforts, reduced funding requests, and have a successful track record in providing services and expenditure of grant funds. The above principles were utilized as follows: 1. Staff used last year's approved funding level for each program as an initial basis from which to make recommendations. 2. Staff took into account the $2,114,000 entitlement received from HUD and the federally- mandated funding cap of 15 percent. This amount calculated to $317,100 available to budget for public services. 3. As per Council direction, staff gave priority to locally-based organizations which are proposing to primarily serve Chub Vista residents and collaborating agencies. Staff also PAGE 4, ITEM NO.: MEETING DATE: 05/08/01 took into consideration the longevity factor of those organization's receiving CDBG assistance, since the main emphasis for allocating CDBG funds is to assist new requests and provide assistance to start-up organizations. Funding Recommendations. All of the programs requesting funds are identified below. The information provided includes the amount of funds requested, the prior year funding levels, and staff funding recommendations. If a program is recommended for funding, then staff has determined that it is a viable program at the recommended funding level. During a recent HUD monitoring visit, it was determined that the South Bay Community Services Graffiti Eradication program should be funded from the public services category. Previously, the Graffiti program was budgeted under the Community Projects category. As a result of the HUD monitoring, staff re-evaluated all of the funding requests and determined that other programs should be budgeted under the Public Services category. These programs include Southwestern College's South County Career Center and the Chula Vista Coordinating Council. Placing these programs in the Public Services category has placed an additional financial burden on an already limited-funding category. In an attempt to fund the current Public Service organizations and the newly classified Public Services organizations, staff recommends a 15 percent across-the-board cut on all non- collaborative organizations. This methodology has made it possible to continue to fund viable programs. Additionally, a 5 percent acrossdhe-board cuts is recommended for the remaining organizations outside of the Public Services category that has been receiving CDBG funding in excess of 5 years. As indicated at the April 3rd Public Hearing, CDBG funds should be made available as "seed money" for newly-formed non-profit organizations. Please note that the CDBG Budget Notebook previously provided to the Council contains detailed information about the requesting organizations and their programs. The following requests are in order as outlined in the CDBG Notebook under Public Service Requests. The maximum allowable for allocation is $317,100. The Public Service category has a mandated funding cap of 15%. Staff recommends budgeting the full amount of $317,100 for this category. PAGE 5, ITEM NO.: MEETING DATE: 05/08/01 PUBLIC SERVICE FUNDING REQUESTS YOUTH SERVICES TAB I UNITED WAY OF SAN DIEGO COUNTY - INFO LINE AMOUNT REQUESTED $7,500 PRIOR YEAR FUNDING $5,000 STAFF RECOMMENDATION $4,250 This program provides a seven-day-a-week confidential telephone service to the public, available toll free to callers throughout San Diego County and confidentially assists clients find public service providers. A 15 percent reduction from prior year funding is recommended. TAB 2 CNULA VISTA YOUTH SERVICES NETWORK - ¢O£LAJOIMI'ISri ~ TRAiO F OFUR ~yE~H~iN S~iNADT Gl$$1122,77640'943 ON $123,151 This program provides youth education and counseling services in the area of tutoring/literacy, fine arts, mentoring, and day camp services. This collaborative is comprised of South Bay Community Services, Chula Vista Police Activities League, South Bay Family YMCA, Boys & Girls Club of Chula Vista, Vista Square Healthy Start, the Chula Vista Coordinating Council, MAAC Project, and Chula Vista Parks & Recreation Department. TAB 3 SHARP HEALTHCARE FOUNDATION MOBILE HEALTH CLINIC AMOUNT REQUESTED $40,000 PRIOR YEAR FUNDING $25,000 STAFF RECOMMENDATION $21,250 The Sharp Mobile Health Care Clinic will provide health care to children whose parents cannot afford health insurance. The Mobile Health Clinic will rotate among seven strategically located schools. Volunteers and nurses will transport students to the clinic from schools throughout the School District. A 15 percent reduction from prior year funding is recommended. TAB 4 YOUTH POLICY ADVOCACY / CHILD CARE COORDINATOR AMOUNT REQUESTED $49~505 PRIOR YEAR FUNDING $50,000 STAFF RECOMMENDATION $0 The Youth Policy Advocacy/Child Care Coordinator will serve as a resource to the Child Care Commission on child care issues, provide research and grant writing assistance, and be involved in the hiring of a Child Care Coordinator for the City of Chula Vista. Staff recommends funding this program under the Administration category since the position will be researching alternative sources of funding, through the grant writing process, to fund child care programs. PAGE 6, ITEM NO.: MEETING DATE: 05/08/01 TAB 5 PARKS & RECREATION DEPARTMENT OTAY RECREATION CENTER YOUTH/TEEN FITNESS TEAM AMOUNT REQUERTED I $5~000 PRIOR YEAR FUNDING I NEW REQUEST STAFF RECOMMENDATION I $0 The youth fitness team is a strength and fitness-training program and will teach youth proper exercise habits. A group activity from BASE (Building Achievement through Sports and Entertainment) will follow and will use sports or entertainment scenarios to teach decision-making; self-esteem, conflict resolution; and communication. Staff recommends not funding this program at this time due to the high volume of CDBG requests. Additionally, this program should partner with the Youth Services Network collaborative. TAB 6 CHULA VISTA AQUATIC ASSOCIATION AMOUNT REQUESTED $9~600 PRIOR YEAR FUNDING $5,400 STAFF RECOMMENDATION $4~590 The Chula Vista Aquatic Association is an organization made up of volunteers who offer an after school swimming program and is constructed to serve youths between the ages of 6 and 18. A 15 percent reduction from prior year funding is recommended. Additionally, the Aquatic Association should consider partnering with the Youth Services Network collaborative since the primary clientele served is youth. TAB 7 FROM THE INSIDE OUT AMOUNT REQUESTED t $11~000 PRIORYEAR FUNDING I NEW REQUEST STAFF RECOMMENDATION I $0 Project Choice is a youth diversion program designed to provide delinquency prevention at no cost to their clients. From the Inside Out currently facilitates unique youth diversion programs for at-risk youth at correction facilities in San Diego County and Solana counties. Also offered are community links to prison outreach programs that allow youth and their families witness life at an adult correctional facility. Staff does not recommend funding this program due to the high volume of requests. Additionally, this program should consider joining the Family Violence collaborative due to the nature of the program. I SEHIOR SER¥1¢ES TAB 8 SOUTH BAY SENIOR COLLABORATIVE AMOUNT REQUESTED $50~025 PRIOR YEAR FUNDING $34~500 STAFF RECOMMENDATION $40,651 This new collaborative comprises the organizations of Meals-on-Wheels St. Charles Nutrition; Adult Protective Services; and Lutheran Social Services Shared Housing. Each of these organizations offer services to seniors, including meal delivery, adult day care, and rental assistance. PAGE 7, ITEM NO.: MEETING DATE: 05/08/01 TAB 9 ELDER LAW & ADVOCACY AMOUNT REQUESTED $44~1~8 PRIOR YEAR FUNDING REQUEST STAFF RECOMMENDATION $0 The Afforney-Legal Services program provides seniors with legal counseling and advise. The program also handles other services such as litigation or administrative hearing representation. Staff recommends not funding this program at this time due to the volume in funding requests. This organization will be part of the Senior Collaborative for the next funding cycle. TAB 10 PARKS & RECREATION DEPARTMENT PROJECT CARE & SENIORNET COMPUTER LEARNING CENTER AMOUNT REQUESTED I $12,254 PRIORYEAR FUNDING I NEW REQUEST STAFF RECOMMENDATION t $0 This program will provide outreach to seniors via safety net telephone reassurance program for persons living alone and a safety program for all persons 50 and older in regards to emergency service and medications management. The SeniorNet program will provide older adults education for and access to computer technology to enhance their lives and enable them to share their knowledge and wisdom. Staff recommends not funding this program at this time due to the volume in funding requests. Additionally, this program should partner with the Senior Collaborative due to the clientele served. TAB 11 THE SALVATION ARMY AMOUNT REQUESTED I $35,000 PRIORYEAR FUNDING I NEW REQUEST STAFF RECOMMENDATION I $0 The Senior Nutrition program was established to assist a growing number of seniors remain independent through nutritional and social services through the delivery of hot meals. Staff recommends not funding this program at this time due to the volume in funding requests. Additionally, The Salvation Army will be a part of the Senior Collaborative for the next funding cycle. TAB 12 PARKS & RECREATION DEPARTMENT LEISURE CONNECTION COORDINATOR AMOUNT REQUESTED / $12,254 PRIORYEAR FUNDING I NEW REQUEST STAFF RECOMMENDATION I $0 The Leisure Connection Coordinator will provide programs that will maximize the homebound senior's sense of independence through the use of teleconferencing equipment. Staff recommends not funding this program at this time due to the volume of funding requests. This program needs to link with the senior collaborative due to the clientele served. PAGE 8, ITEM NO.: MEETING DATE: 05/08/01 TAB 13 CNULA VISTA VETERANS HOME SUPPORT FUND AMOUNT REQUESTED I $10,000 PRIORYEAR FUNDING J NEW REQUEST STAFF RECOMMENDATION I $5,000 The Chula Vista Veteran's Home support fund solicits donations to support basic services at the Veteran's Home facility. Many of the veterans are disabled and many are full-time residents. Donations made to the foundation are used for indigent resident fund, activities fund, memorial fund, etc. Staff recommends funding this program at half the request due to the volume of funding requests. MISCELLANEOUS I TAB 14 CHULA VISTA COORDINATING COUNCIL AMOUNT REQUESTED $61,000 PRIOR YEAR FUNDING $20,000 STAFF RECOMMENDATION $17,000 The Chula Vista Coordinating Council was established in 1993 to coordinate integrated service delivery in the school setting. The vision of the CVCC is to establish the elementary school as the hub of the community where adults and children com to access services. This program was previously budgeted under the Administration category and has been moved due to the public service activities provided. A 15 percent reduction from prior year funding is recommended. TAB 15 LUTHERAN SOCIAL SERVICES - PROJECT HAND AMOUNT REQUESTED S 12,000 PRIOR YEAR FUNDING $12v000 STAFF RECOMMENDATION $10,200 Project Hand is an emergency and career assistance center that provides clients with shelter, food, clothing, transportation, medication, job search assistance, and utility assistance. A 15 percent reduction from prior year funding is recommended. TAB 16 CHULA VISTA FAMILY VIOLENCE PREVENTION AND INTERVENTION COALITION AMOUNT REQUESTED $37,685 PRIOR YEAR FUNDING $35,360 STAFF RECOMMENDATION $36~522 This program provides education and outreach services to children, youth and families to aid in the prevention of violence. This collaborative proposal is comprised of South Bay Community Services, Chula Vista Police Department, the Center for Community Solutions, YWCA Domestic Violence Services, and YMCA Family Stress Counseling Services. PAGE 9, ITEM NO.: MEETING DATE: 05/08/01 TAB 17 THURSDAY'S MEAL AMOUNT REQUESTED I $10,400 PRIOR YEAR FUNDING I $8,000 , STAFF RECOMMENDATION I $6,800 Thursdays Meal provides free hot meals to the homeless and very Iow income residents of Chula Vista. A 1 5 percent reduction from pr or year fund ng is recommended TAB 18 GRAFFITI ERADICATION PROGRAM AMOUNT REQUESTED $41,600 PRIOR YEAR FUNDING $30,000 STAFF RECOMMENDATION $0 South Bay Community Services, in partnership with the Chula Vista Police Department, is requesting funds to continue their community effort to eradicate graffiti painted on private businesses and residences. Youth offenders and community volunteers provide the labor. This program was originally budgeted under the Community Project category, however, HUD recommended this program be budgeted under the Public Services category. This program will be budgeted within the Police Depadment budget. TAB 19 CHULA VISTA THERAPEUTIC PROGPJJ AMOUNT REQUESTED $44,644 PRIOR YEAR FUNDING $26,174 STAFF RECOMMENDATION $13,087 This program promotes the benefits of a healthy lifestyle, improve physical abilities, build confidence, and strengthen interpersonal skills for disabled individuals. Due to the longevity of funding this program with CDBG and the volume of funding requests, staff recommends budgeting at half the prior year funding amount. TAB 20 CHULA VISTA LITERACY TEAM CENTER AMOUNT REQUESTED Sl 1,000 PRIOR YEAR FUNDING $11,000 STAFF RECOMMENDATION $9,405 This proposal is comprised of the Chula Vista Public Library, the Chulo Vista Adult School and the Altrusa Club of Chula Vista. This coalition was established with the goal of reducing illiteracy in the community. A 15 percent reduction from prior year funding is recommended PAGE 10, ITEM NO.: MEETING DATE: 05/08/01 TAB 21 MOBILE HOME POSITIVE ACTION COMMII~rEE AMOUNT REQUESTED $1,500 PRIOR YEAR FUNDING NEW REQUEST STAFF RECOMMENDATION $0 mobilehome owners. The program will provide information and advocacy assistance to mobilehome owners in Chula Vista via newsletters covering such topics as reducing rising energy costs; energy assistance programs; and advocacy contacts. Staff does not recommend funding this program at this time due to the volume in funding requests. TAB 22 SUITS YOU SAN DIEGO - "THE FINAL TOUCH" AMOUNT REQUESTED $25~000 PRIOR YEAR FUNDING $13~640 STAFF RECOMMENDATION $11,594 This program is designed to provide Employment Retention and Professional Image services to economically disadvantaged men and women who are making the transition from government subsidy to economic independence. A 15 percent reduction from prior year funding is recommended TAB 23 SOUTH COUNTY ECONOMIC DEVELOPMENT COUNCIL AMOUNT REQUESTED I $13~833 PRIOR YEAR FUNDING I NEW REQUEST STAFF RECOMMENDATION I $0 The South County EDC is requesting funds to establish a revolving loan fund for the creation of a Child Care/Charter School Facilities fund. This fund would enable SCEDC to work with different groups to create a fund to assist individuals interested in creating a new or expanded child care facility. Staff recommends not funding this request at this time due to the volume in funding requests. TAB 24 ALPHA PROJECT FOR THE HOMELESS AMOUNT REQUESTED $18,000 PRIORYEAR FUNDING I NEW REQUEST STAFF RECOMMENDATION $0 This program assists homeless individuals by providing an opportunity to work in the community by cleaning up spot blighted areas. This type of work provides a supportive work environment and assists in training the individuals in a structured work environment. Staff recommends not funding this program at this time due to the volume in funding requests. PAGE 11, ITEM NO.: MEETING DATE: 05/08/01 TAB 25 SOUTHWESTERN COLLEGE - SOUTH COUNTY CAREER CENTER AMOUNT REQUESTED $35,381 PRIOR YEAR FUNDING S16,000 STAFF RECOMMENDATION $13,600 The South County Career Center provides supportive services to Chula Vista job seekers in the form of training programs, assistance in determining career plans, and job development. Whenever possible, Chula Vista clients are matched with local employers. This program was previously funded under the Economic Development category, however, HUD recommended this program be funded from Public Services. A 15 percent reduction from prior year funding is recommended. COMMUNITY PROJECT REQUESTS The five (5) Community Project requests total $629,003 and include the following type of activities: [1] neighborhood revitalization/interim assistance; [2] special activities by community- based development organizations; and [3] energy conservation. There is not a CDBG funding cap for this category. Staff recommends a 5 percent across-the-board cut for organizations receiving CDBG funding in excess of 5 years. The funding recommendation for this category is $144,050. All of the funding requests are included in the CDBG Notebook under Community Projeds and are summarized as follows: II NEIGHBORHOOD REVITALIZATION/INTERIM ASSISTANCE II TAB 26 LUTHERAN SOCIAL SERVICES - CARING NEIGHBOR AMOUNT REQUESTED $47,253 PRIOR YEAR FUNDING $34,000 STAFF RECOMMENDATION $32~300 Lutheran Social Services is requesting funds to continue providing health and safety home repairs to seniors. A majority of the labor is donated by local south bay contractors. Staff recommends a reduction of 5 percent from prior year funding. TAB 27 SOUTH COUNTY EDC AMOUNT REQUESTED $13,833 PRIOR YEAR FUNDING NEW REQUEST STAFF RECOMMENDATION $0 The SCEDC proposes to create an employer assisted housing fund which would be available to employees of participating corporate partners. The funds would be an incentive for members of the SCEDC to offer their employees with the down payment towards the purchase of a home. Staff recommends not funding the request and encourage the SCEDC to utilize the City's first-time homebuyer programs. /2- -// PAGE 12, ITEM NO.: MEETING DATE: 05/08/01 TAB 28 CITY OF CHULA VISTA COMMUNITY PRESERVATION PROGRAM AMOUNT REQUESTED $139,150 PRIOR YEAR FUNDING $50,000 STAFF RECOMMENDATION $50,000 The Building Division of the Planning Department is primarily responsible for enforcing the state and locally adopted building codes. COMMUNITY BASED DEVELOPMENT ORGANIZATION TAB 29 SOUTH BAY COMMUNITY SERVICES - COMMUNITY DEVELOPMENT PROGRAM AMOUNT REQUESTED $85,000 PRIOR YEAR FUNDING $65,000 STAFF RECOMMENDATION $61,750 This program creates housing/economic development opportunities for Iow income households. Staff recommends a reduction of 5 percent from prior year funding. ENERGY CONSERVATION II TAB 30 METROPOLITAN AREA ADVISORY COMMITTEE ! AMOUNT REQUESTED I $343,767 PRIOR YEAR FUNDING I NEW REQUEST STAFF RECOMMENDATION I $0 MAAC proposes to provide weatherization services to elderly, disabled, and/or families with young children in Chub Vista. The energy efficiency services include an assessment of the home, safeh/ check of all appliances, repair or replace doors, weather stripping, install hot water heater blankets, install Iow flow showerheads, etc. Staff does not recommend funding this proiect. The City's rehabilitation program can assist Chula Vista residents with similar services. PAGE 13, ITEM NO.: MEETING DATE: 05/08/01 ECONOMIC DEVELOPMENT REQUESTS The four (4) Economic Development requests total $152,144 and include the following type of activities: [a] revolving loan program and [bi business retention and expansion. There is not a funding cap for this category. Staff recommends a 5 percent acrossdhe-board cut for those organization receiving CDBG funding in excess of 5 years. The funding recommendation for this category is $49,759. ECONOMIC DEVELOPMENT PROJECTS TAB 31 SOUTH COUNTY ECONOMIC DEVELOPMENT COUNCIL AMOUNT REQUESTED I $13,833 PRIORYEAR FUNDING I NEW REQUEST STAFF RECOMMENDATION $13,833 The SCEDC proposes to establish a small business development fund to assist small businesses. This fund would allow the SCEDC to provide Iow-interest loans to start-up and existing businesses to expand, acquire equipment or to maintain working capital to pay overhead expenses. TAB 32 SOUTH BAY COMMUNITY SERVICES - TEEN CENTER AMOUNT REQUESTED $27,560 PRIOR YEAR FUNDING $26~500 STAFF RECOMMENDATION $25,175 This program provides youth employment training through the KIDZBIZ program. Youth are taught the essentials of operating a business. Staff recommends a reduction of 5 percent from prior year funding. TAB 33 COMMUNITY DEVELOPMENT DEPARTMENT - BIOTECH ZONE DEVELOPMENT FEE REDUCTION (N~'If~RI~QUF. S~ AMOUNT REQUESTED $100~000 PRIOR YEAR FUNDING $ ! 00,800 STAFF RECOMMENDATION S0 The proposed Development Impact fee Reduction program is designed to assist qualifi/ing companies within High Tech/Biotech Zone pay the fees collected by the City to fund the actual construction cost of capital improvements (roads, sewers, etc.) Supporting the Zone. Staff recommends not funding this program since current year funds have not been expended and prior year funds for economic development activities were identified. PAGE 14, ITEM NO.: MEETING DATE: 05/08/01 TAB 34 SOUTHWESTERN COLLEGE - CONTRACTING OPPORTUNITIES CENTER AMOUNT REQUESTED ! $10,751 PRIOR YEAR FUNDING I NEW REQUEST STAFF RECOMMENDATION I $10,751 This program provides hands-on technical assistance to all small, small disadvantaged, veteran owned, woman owned and Historically Underutilized Business (HUB) zone business enterprises that desire to grow and expand their businesses in the governmental market sector. The program will provide assistance in competing and potentially achieving government contracts. CAPITAL IMPROVEMENT PROGRAM RKC~UESTS The Capital Improvement program category includes both non-profit and City requests. The non-profit capital improvement requests total $349,000 and the City capital improvement requests have been revised and now total $857,702 for a total funding request of $1,206,702. The capital improvement program category does not have a funding cap limit. Staff recommends funding $1,082,202 for this category. NON-PROFIT CIP REQUESTS TAB 35 BOYS & GIRLS CLUB OF CHULA VISTA SKATE BOARD PARK AMOUNT REQUESTED I $150,000 PRIOR YEAR FUNDING I $62,500 STAFF RECOMMENDATION I $150~000 The Boys & Girls Club is requesting funds to construct an Skate Board Park at the Oleandar facility subject to Council approval of the project. TAB 36 MAAC PROJECT CIP AMOUNT REQUESTED I $50,000 PRIORYEAR FUNDING I NEW REQUEST STAFF RECOMMENDATION $0 This request for funding is to re-pave the parking lot of their Community Services Center and Charter School located at 3rd and Quintard Street (the old Jerome's Furniture Store). Staff does not recommend funding this program at this time due to the uncertainty of the project. PAGE 15, ITEM NO.: MEETING DATE: 05/08/01 TAB 37 SCRIPPS OTAY FAMILY HEALTH CENTER AMOUNT REQUESTED $39~00 PRIORYEAR FUNDING I NEW REQUEST STAFF RECOMMENDATION $19t500 Scripps is requesting funds to rehabilitate a designated space within the Health Center to include painting, floor and door replacement, plumbing, eledrical, and furniture replacement. New capital requests have historically received half funding and staff recommends partial funding for this proiect. TAB 38 CHULA VISTA AMERICAN LITTLE LEAGUE AMOUNT REQUESTED $! 10t000 PRIOR YEAR FUNDING $32,500 STAFF RECOMMENDATION $55,000 On March 7, 2000 CVALL requested and received $50,000 in CDBG funds to complete two baseball fields for the April 1, 2000 opening day. This request is above and beyond the March 7th request. Funds are to be used to complete the two (2) multi-use fields and multi-use building (concession stand, restrooms, equipment storage and meeting rooms). Staff recommends half funding, as has been recommended in prior years, for this project. Additionally, the CVALL has yet to expend current year funds in the amount of $32,500. CITY CAPITAL IMPROVEMENT PROGRAM TAB 39 DRAINAGE IMPROVEMENTS - TOBIAS AND GLENHAVEN WAY AMOUNT REQUESTED $311,000 PRIOR YEAR FUNDING $0 STAFF RECOMMENDATION $311,000 This project involves the drainage improvements in Tobias Drive, north of Dixon Drive to Gbnhaven Way. This project is located in the Castle Park Revitalization Area. TAB 40 CONNOLEY PARK RENOVATION AMOUNT REQUESTED $196,702 PRIOR YEAR FUNDING $196,NA702 STAFF RECOMMENDATION Funds will be used to upgrade an existing park to include new playground equipment, fencing, and renovate the existing turf and slopes PAGE 16, ITEM NO.: MEETING DATE: 05/08/01 TAB 41 MISCELLANEOUS iMPROVEMENTS AMOUNT REQUESTED $0 PRIOR YEAR FUNDING NA STAFF RECOMMENDATION $0 The miscellaneous improvements included the following: Street Improvements, Dixon Drive belween Naples and Oxford; CMP Rehabilitation; and North Broadway Basin construction. All of these funding requests have been withdrawn. TAB 42 GATEWAY CHULA VISTA PROJECT AMOUNT REQUESTED $300,000 PRIOR YEAR FUNDING $300t000 STAFF RECOMMENDATION S300,000 The Gateway Chula Vista project wil~ involve the construction of improvements to the intersection of Third Avenue and "H" Street. The improvements will include new turning lanes, re-striping, changes to the traffic signals, and other improvements as needed. The prior year funds were re-programmed for the CHIP program due to the public improvement being under negotiation. Staff recommends re-budgeting the funds for fiscal year 2001-02. TAB 43 ADA CURB CUTS AMOUNT REQUESTED $150t000 PRIOR YEAR FUNDING $50,000 STAFF RECOMMENDATION I $50~000 This project provides for the construction of concrete wheelchair ramps at an estimated 50 locations throughout the City on an annual basis. PAGE 17, ITEM NO.: MEETING DATE: 05/08/01 ADMINISTRATION AND PLANNIN4~ $422,800. The City may allocate up to this amount for Administration and Planning , based on a 20% cap of the entitlement funds. Staff recommends an across-the-board cut for those organizations receiving CDBG funding in excess of 5 years. The funding recommendation for this category is $422,800. ADMINISTRATION REQUESTS TAB 44 SOUTH BAY FAMILY YMCA HUMAN SERVICES COUNCIL AMOUNT REQUESTED $33~000 PRIOR YEAR FUNDING $28~000 STAFF RECOMMENDATION $26v600 The Human Services Council develops coalitions behveen the communities of human service providers to effectively utilize personnel and programs and serve as a catalyst to bring local government, private industry and business organizations together to address and resolve the communities needs. Staff recommends a reduction of 5 percent from prior year funding. TAB 45 COMMUNITY DEVELOPMENT DEPARTMENT - REFERENCE BOOK AMOUNT REQUESTED $5,000 PRIOR YEAR FUNDING REQUEST NEW STAFF RECOMMENDATION $5~000 The Economic Development Division proposes to hire an intern to update the existing Chula Vista Reference Book which provides a wealth of information regarding the programs and projects undertaken within Chula Vista. The Reference Book also provides demographic and other useful information TAB 46 REGIONAL TASK FORCE ON THE HOMELESS AMOUNT REQUESTED $1,000 PRIOR YEAR FUNDING $1,000 STAFF RECOMMENDATION $1~000 This program provides local agencies information on the homeless population throughout San Diego County. Supporting this program credits the City under HUD's Continuum of Care requirement. TAB 47 LIBRARY AND RECREATION DEPARTMENT INFORMATION AND REFERRAL SPECIALIST AMOUNT REQUESTED $11,124 PRIOR YEAR FUNDING $9,912 STAFF RECOMMENDATION $9,912 This position provides information and referral services to community members, prepares quarterly statistical information on social service agencies and acts as a community liaison with other agencies. PAGE 18, ITEM NO.: MEETING DATE: 05/08/01 TAB 48 FAIR HOUSING COUNCIL OF SAN DIEGO AMOUNT REQUESTED $38,000 PRIOR YEAR FUNDING $39,000 STAFF RECOMMENDATION $39,000 The Fair Housing Council assists the City in providing fair housing opportunities, responds to resident's concerns, and provides landlord-tenant counseling. HUD mandates each jurisdiction have an active Fair Housing program, therefore, staff does not recommend reducing funding for this program. AMOUNT REQUESTED $211,288 PRIOR YEAR FUNDING $270~257 STAFF RECOMMENDATION $211,288 Provides for staff costs in administering the CDBG program. The reduction of $58,969 from fiscal year 2000-01 funding will not significantly impact the staff administration account. Staff received a request to fund the design portion for the Emerson Street improvement project in the amount of $80,000. This project involves the installation of drainage improvements along Emerson Street from Elm Avenue to approximately 800 feet west of Third Avenue. The design work is an eligible Administration and Planning project. CHILD CARE COORDINATOR AMOUNT REQUESTED $49,505 PRIOR YEAR FUNDING $50,000 STAFF RECOMMENDATION I $49,505 This position will be responsible for planning and coordinating child care services in the City of Chula Vista. This item was moved from the Public Services category. PAGE 19, ITEM NO.: MEETING DATE: 05/08/01 HOME PROGRAM BUDGET The City will receive $938,000 in HOME funds from HUD for FY 2001-02. HOME funds may be used to provide affordable rental housing and ownership opportunities through new construction, acquisition, rehabilitation, and tenant-based rental assistance. Over the past five-years the City has used these funds to support new construction and acquisition activities related to the development of affordable housing. The following proposals are included in the CDBG Notebook under HOME Program Budget in the following sequence: TAB A STAFF ADMINISTRATION I STAFF RECOMMENDATION I $93,800 Administrative costs for city staff to oversee the HOME program. These administrative costs represent 10% of the HOME budget. These costs include staff costs for coordination, accounting, monitoring of sub-recipients, environmental review, and HUD reporting requirements. TAB I COMMUNITY HOUSING DEVELOPMENT ORGANIZATION I STAFF RECOMMENDATION I $140,700 HOME program regulations require a participating jurisdiction to set-aside 15% of the annual HOME entitlement for a Community Housing Development Organization (CHDO) for the purpose of developing and/or supporting the City of Chula Vista in providing affordable housing project in the City. TAB C SOUTH BAY COMMUNITY SERVICES - OFFICE RENT I STAFF RECOMMENDATION I $46,900 Funds will be used for office space. As a community based development organization HOME funds are eligible for this program. TAB D AFFORDABLE HOUSING DEVELOPMENT I STAFF RECOMMENDATION I $656~600 Funds will be used to acquire land for infill affordable housing units, single-family rehabilitation, and first-time homebuyer programs. FISCAL IMPACT The City will receive $2,114,000 in CDBG entitlement funds for fiscal year 2001-02. The fifteen (15) percent cap wilt limit the public service allocation to $317,100. In addition, the City will receive $938,000 in HOME funds for fiscal year 2001-02. The total of 2001-02 CDBG and HOME funds to be used for eligible programs and projects will be $3,052,000. Staff recommends budgeting CDBG funds and HOME funds in the amount of $2,953,911. The remaining $98,089 in CDBG funds will be appropriated at a later date for consideration of a mid-year budget request or to additionally fund an under-budgeted City capital project. J:\COMMDEV~STAFF.REP\O$-08-01\CDBG Budget 2001 .doc EXHIBIT A CHULA VISTA DRAFT Consolidated Annual Plan Fiscal Year 2001-02 This Consolidated Annual Plan delineates the City's plans for use of funds during the fiscal year 2001-02. The Plan describes: A) the resources available for program implementation; B) activity to be undertaken; C) monitoring; D) homelessness; E) anti-poverty strategy; F) coordination; G) obstacles to underserved needs; H) geographic location for expenditure of CDBG funds; and I) objectives. This plan is consistent with the priority housing needs, priority homeless needs, priority special needs populations, and priority non-housing community development needs listed in the City of Chula Vista's Consolidated Plan for Fiscal Years 2000-2005. A. HOUSING AND COMMUNITY DEVELOPMENT RESOURCES Financing Resources Financing resources for addressing housing and community development needs are fairly limited for the City. To ultimately reach the goals of the City, a variety of resoumes must be used to achieve each objective. Table 1 describes the eligible activities of a variety of resources idenffified in this section. The limited City resources must be leveraged with additional funds from private and public sources and programs. Partnerships with banks, nonprofit, and private developers are needed. Achieving these goals requires community volunteer efforts to raise funds, solicit grants and donate time. The City can facilitate the use of developers and potential homeowners of tax-exempt financing (bond issuances), ~ow income tax credits, and other tax credit programs. The City anticipates using the folrowing federal prcgrems for implementation of the Consolidated Annual Plan: Community Development Block Grant (CDBG) - the City is an entitlement City and receives an annual grant from the federal government. These funds can be used for public facilities, services, or housing for Iow- income (80% and below the median County income) persons. For FY 2001-02 the City is expected to receive $2,114,000 in CDBG funds HOME Program - the City also receives an annual grant from the HUD program through a jurisdictionally competitive process. The funds can be used for new housing construction, housing rehabilitation, rental assistance or to assist first time home buyers. For FY 2001-02 the City is expected to receive $938,000 in HOME funds. Section 8 Rental Assistance - the County of San Diego operates the City's program and will receive HUD funding for the next five years to provide rental assistance for iow income families (50% of median County income). Stewart B. McKinney Homeless Act - a variety of programs are available to fund homeless transitional housing programs and emergency shelters. ~' HUD 202 Program - funds are for new construction of senior housing. ~' Federal tax-exempt housing revenue bonds provide Iow interest bonds for the acquisition and construction of Iow income housing projects. City of Chula Vista 2001 Annual Plan / 2 -~2.~ Page The City also plans to use funds through the following State or local govemment programs: > Redevelopment Agency 20% Set-Aside Program - every year, the City's Redevelopment Agency sets aside approximately twenty pement of the tax increment revenue it generates from its five redevelopment project areas to be used for the development and rehabilitation of affordable housing. > Mortgage Credit Certificate Program - tax credits for first-time home buyers. To date the City has assisted approximately 198 first-time home buyers, The City currently participates in the Regional MCC Consortium administered by the County of San Diego. The City supports the application of other entities within the City for programs which would assist the City in reaching the goals of the Plan. These programs include Emergency Shelter Grant, Supportive Housing, Housing for Persons with AIDS, Iow income housing tax credits, and mortgage revenue bonds. See Table 2: Support of Applications by Other Entities, As other programs from the State and Federal government arise during the five-year planning pedod which will assist the City in reaching the goals and objectives of the Plan, the City will pursue those resources. Non-Profit Resources Non-profit housing developers and service providers aro a cdtical resoume to the City. The following developers and service providers aro some of the non-profits who have been active in the City and play an impodant role in the Plan. Local Initiative Support Corporation (LISC) - Residential, commemial or mixed-use projects serving Iow income persons. LISC offers non-profit capacity building and pro-development grants and loans. > California Community Reinvestment Corporation (CCRC) - Provides ~ermanent financing of multi-family rental and limited equity housing cooperatives. ~ South Bay Community Sen/ices (SBCS) - Multi-service social service agency and affordable housing developer working closely with the City on numerous community improvement projects. For-Profit Resources > Bank of America - Residential, commemial or mixed-use projects serving Iow income persons. Bank of Amedca offers assistance in the form of construction loans and rehabilitation loans. City of Chula Vista 2001 Annual Plan / ~ ~ 2-I Page 2 TABLE 1 PUBLIC AND PRIVATE RESOURCES AVAILABLE FOR HOUSING AND COMMUNITY DEVELOPMENT ACTIVITIES 1. Federal Programs a. Formula/Entitlements HOME Flexible grant program awarded Acquisition 2000-01 Funding- to the City on a formula basis Rehabilitation $938,000 for housing activities. Home Buyer Assistance Rental Assistance CDBG 2000-01 Grants awarded to the City on a Acquisition Funding $2,114,000 formula basis for housing Rehabilitation activities. Home Buyer Assistance Economic Development Homeless Assistance Public Services Housing Opportunities Entitlement and Competitive Public Housing Ownemhip for Persons with AIDS Grants for Housing Assistance (HOPE1) (HOPWA) and Supportive Services for Home Ownership of Multi- PWAs. Grants awarded to City Family Units (HOPE2) on a formula basis, are Home Ownership for administered by the County. Single-Family Homes (HOPE3) HOPE Home ownership assistance awarded on a competitive basis, requires non-federal matching funds. City of Chula Vista 2001 Annual Plan / 2 -~ ~ 2~ Page 3 TABLE 1 PUBLIC AND PRIVATE RESOURCES AVAILABLE FOR HOUSING AND COMMUNITY DEVELOPMENT ACTIVITIES (continued) Program Program ~c~lon, ~![g~!~ b. Competitive Emergency ShelterGrants Grants to improve quality of Homeless Assistance Programs (continued) (ESG) existing sheltem/increase Acquisition number of new shelters for the New Construction homeless. Funds are awarded Rehabilitation to local non-profits through the Support Services State. Section 8 Rental assistance payments to Rental Assistance Rental Assistance Program owners of private market rate units on behalf of very Iow income tenants, Administered by OCHA, Shelter Care Plus Grants for rental assistance Rental Assistance offered with support services to homeless with disabilities and disabled households. Section 202 Grants to non-profit developers Acquisition of supportive housing for the Rehabilitation elderly, New Construction Rental Assistance Support Services Section 811 Grants to non-profit developers Acquisition of supportive housing for Rehabilitation persons with disabilities, New Construction including group homes, Rental Assistance independent living facilities and intermediate care facilities. City of Chula Vista 2001 Annual Plan / ~- " 2 ~ Page 4 TABLE 1 PUBLIC AND pRIVATE RESOURCES AVAILABLE FOR HOUSING AND COMMUNITY DEVELOPMENT ACTIVITIES (continued) m ~- ~¢~tlb~ EII~'~[~ b. Competitive Economic Adjustment Provides funding for areas Public facilities/services Program (continued) Assistance- Sudden and facing actual or threatened Business Development Severe unemployment as a result of Planning sudden economic dislocation. Rent supplements Mortgage payment assistance Reseamh Technical assistance Training Relocation of individuals and unemployment compensation 2. State Programs Emergency Shelter Program Grants awarded to non-profit Support Services organizations for shelter support services, Uobile Home Park Funds awarded to mobile Acquisition Conversion Program home park tenant Rehabilitation organizations to convert mobile home parks to resident ownership. California Housing Finance Below market rate financing New Construction Agency {CHFA) Multiple offered to builders and Rehabilitation Rental Housing Programs developers of multi-family and Acquisition of Properties elderly rental housing. Tax from 20 to 150 units exempt bonds provide below- market mortgage money. City of Chula Vista 2001Annual Plan / ~ ~ 2 ~/ Page 5 TABLE 1 PUBLIC AND PRIVATE RESOURCES AVAILABLE FOR HOUSING AND COMMUNITY DEVELOPMENT ACTIVITIES (continued) 2. State California Housing Finance Agency CHFA sells tax-exempt bonds to Home Buyer Programs Home Mortgage Pumhase Program make below market loans to firstAssistance (continued) time home buyers. Program operates through participating lenders who originate loans for CHFA pumhase. Mortgage Credit Certificate Program Income tax credits available to first Home Buyer time home buyers for the Assistance purchase of new or existing single- family housing. Local agencies make certificates available, Low Income Housing Tax Credit Tax credits available to individuals New Construction and corporations that invest in Iow Rehabilitation income rental housing. Tax Acquisition credits sold to corporations and people with high tax liability and proceeds are used to create housing, California Housing Rehabilitation Low interest loans for the Rehabilitation Program - Owner Component rehabilitation of substandard Repair Code homes owned and occupied by Violations lower income households. City Accessibility and non-profit sponsor housing Improvements rehabilitation projects Room Additions ~. General Property Improvements City of Chula Vista 2001 Annual Plan / ~ Page 6 TABLE 1 PUBLIC AND PRIVATE RESOURCES AVAILABLE FOR HOUSING AND COMMUNITY DEVELOPMENT ACTIVITIES (continued) 2. State Programs Defense Adjustment Provides a portion of matchingMatching funds to (continued) Matching Grant funds required by communities obtain federal seeking federal funding for planning and defense-related economic implementation adjustment strategies and grants for defense programs, conversion and base closure response activities. 3. Local Programs Chula Vista Redevelopment 20 percent of Agency funds areAcquisition Agency set aside for affordable housing Rehabilitation 2001-02 Funding- activities governed by state law. New Construction Approximately $2.6 million. 4. Private Federal National Mortgage Loan applicants apply to Home Buyer Resources/Financing Association(FNMA) padicipating lendem for the Assistance Programs following programs: a. Community Home Buyers Fixed rate mortgages issued byHome Buyer Program private mortgage insurers. Assistance Rehabilitation b. Community Home Mortgages which fund the Home Buyer Mortgage purchase and rehabilitation of a Assistance Improvement Program home c. Fannie Neighbors Low Down Payment Mortgages for Single Family Homes in under served Iow income and minodty communities. City of Chula Vista 2001 Annual Plan // ~ ~ ~ Page 7 TABLE 1 PUBLIC AND PRIVATE RESOURCES AVAILABLE FOR HOUSING AND COMMUNITY DEVELOPMENT ACTIVITIES (continued) 4. PdYate California Communit~ Non-profit mortgage banking New Construction Resourcee/Rnancing Reinvestment Corporation consortium designed to pm¥ide Rehabilitation Programa (continued) (CCI~) long term debt financing for Acquisition affordable multi-family rental housing. Non-profit and for- profit developers contact member banks. Federal Home Loan Bank Direct subsidies to non-profitNew Construction Affordable Housing Program and for-profit developers and public agencies for affordable Iow income ownership and rental projects. City of Chula Vista Table 2 U,S. Department of Housing and Urban Development CPD Consolidated Plan Support of Applications by Other Entities Report Funding Source Support Application by Other Entities? A. Formula/Entitlement Programs ESG Y Public Housing Comprehensive Grant y B. Competitive Programs HOPE 1 Y HOPE 2 Y HOPE 3 y ESG y Supportive Housing y HOPWA y Safe Havens y Rural Homeless Housing y Section 202 Elderly Y Section 811 Handicapped y Moderate Rehab SRO Y Rental Vouchers y Rental Certificates y Public Housing Development Y Public Housing MROP Y Public Housing ClAP Y LIHTC Y City of Chula Vista 2001 Annual Plan ~, ;~,~ Page 9 B. ACTIVITIES TO BE UNDERTAKEN Table 3: Funding Soumes illustrates the City's CDBG and HOME allocations and program income available for the coming fiscal year. Table 3 U.S. Department of Housing and Urban Development CPD Consolidated Plan Funding Sources Entitlement Grant (includes reallocated funds) $3,052,000 Unpmgrammed Pdor Year's Income not previously reported $0 Surplus Funds $0 Return of Grant Funds $0 Total Estimated Program Income $0 Funding Sources: I $3,052,000 Total C, MONITORING Careful evaluation of the housing and public service delivery system can be the most effective tool in detecting gaps and making appropriate moditications. Chula Vista monitors its sub-grantees, conducts in-house reviews of progress reports and expenditures and performs on-site visits to ensure compliance with federal regulations. Agreements made with subgrantees encourage uniform reporting to achieve consistent information on beneficiaries. Technical assistance is provided when necessary. D. HOMELESSNESS The City of Chula Vista will continue to support the efforts of South Bay Community Services transitional and short- term housing projects which assist the homeless and in addition, will fund the following projects to help the homeless in fiscal year 2000-01: Thursday's Meal San Diego Regional Task Fome on the Homeless Lutheran Social Services - Project Hand County of San Diego - Cold Weather Shelter Voucher Program E. ANTI-POVERTY STRATEGY As part of the City's Anti-Poverty Strategy, the City will endeavor to integrate social services and housing activities for households below the poverty line. These efforts include, but ara not limited to the following: ~ South Bay Community Services KIDSBIZ Pro.qram: This program teaches At-dsk youths to use their entrepreneurial skills in a positive way. Teenagem are taught to develop their own business plans and to run their own business. ~ Earned Income Tax Credit Proqram: SBCS has hired a program coordinator to do outreach and education to community residents about the Earned Income Tax Credit. This coordinator assists in qualifying citizens in applying for the tax credit. The goal of this program is to have 200 families receive the tax credit. Eligible families are working parents with children earning under $25,000 per year. City of Chula Vista 2oo An.ua Plan/ Pago Park Villaqe Apartments: On-site day care and job training services are offered at this very iow income apadment complex. ~' Casa Nueva Vida I & I1: Residents are required to secure an income and save money for their first month's rent plus secudty deposit. They are referred to outside job training agencies for help in secudng a job. Independent living skills are taught in areas of health, nutdfion, immunizations, parenting, and other pertinent issues. Individual and family counseling is also offered. F, COORDINATION The City will coordinate and implement its strategies through the following activities: Activity: Target available CDBG funding to those areas and population exhibiting the greatest need. Activity: Encourage social service providers to work with developers and CHDOs to provide service- endched housing. Services include health care referrals, financial counseling, and case management. Activity: Assist county, state, federal, educational, and pdvate organizations involved in economic development and job training in targeting their efforts toward those areas of Chula Vista exhibiting the greatest need. G. OBSTACLES TO UNDESERVED NEEDS The City is continuing in its effort to remove obstacles to undeserved needs throughout the community. The City has made a commitment to budget CDBG funds at the maximum allowable to offer citizens much needed programs and services in the area of literacy, job training, youth activities, senior services, violence prevention, and health care assistance for Iow- income families. H. GEOGRAPHIC AREAS FOR EXPENDITURE OF CDBG FUNDS The City plans to use CDBG funds in areas of the City where improvement is most needed. Many of the projects assisted with CDBG ara located in the western portion of the City which is also the oldest areas where infrastructure improvements and revitalization is needed. The City continues to implement ADA improvements throughout the community as required by federal mandate. PROPOSED 2000-01 HOME BUDGET The Federal HOME Investment Partnership Program (HOME) allocated funds by formula directly to state and local govemments to promote affordable housing. 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. To date, the City has been allocated $5,738,000 in HOME funds since 1992 when the program was created. HOME funds may be used to provide affordable rental housing and home ownership opportunities through new construction, acquisition, rehabilitation, and tenant-based rental assistance. In addition, HOME funds can be used to fund operational costs for Community Housing Development Organizations (CHDO). A CHDO is a non-profit, community- based organization that has, or intends to retain, staff with the capacity to develop affordable housing for the community it serves. Currently, South Bay Community Services is the only designated CHDO in the City of Chula Vista. However, Chula Vista will be actively recruiting other eligible CHDO's through a Request for Qualifications process. The City is required to provide a 25 percent match for HOME funds used for rental assistance, housing rehabilitation, and acquisition of standard housing. A 30 percent match is required for new construction. Some examples of allowable matching contributions would include Redevelopment Agency Low and Moderate Income Housing Funds, land value (donated or a loan), on and off-site improvements, waiver of local and state taxes or fees, voluntary labor City of Chula Vista 2001 Annual Plan / ~ - ~_~.,~ Page in connection with site preparation. If a preject exceeds the requirad match, the excess cradit can be applied to future prajects. The table below delineates the uSes of HOME funds for fiscal year 2001-02. Table 4 ESTIMATED 2001-02 USE OF HOME FUNDS CITY OF CHULA VISTA 1 Staff Administration $93,800 Community Housing Development $140,700 Organization (CHDO) Affordable Housing Projects $656,600 SBCS - Office Rent $46,900 TOTAL $938,000 The following is a brief description of the above HOME activities being recommended for funding: Staff Administration Administrative costs for city staff to oversee the HOME program. These administrative costs rapresent t0% of the HOME budget. These costs include staff costs for coordination, accounting, environmental review, and HUD raporting requirements. CHDO '15% Set Aside Per HUD ragulations a City is raquired to set-aside 15% of the annual allocation for Community Housing Development Organizations (CHDO) to assist the City in development and/or support in previding affordable housing projects for Iow and moderate income families. For FY 2001-02, the City of Chula Vista is setting aside $140,700 for CHDO housing projects. CHDO Operation The $46,900 praposed for CHDO operation costs is earmarked for South Bay Community Services, the only organization in Chula Vista to be designated as a CHDO. CHDO Monitoring A careful evaluation of the CHDO delivery system is an effective way to determine the organization is carrying out the goals and objectives in providing affordable housing. The City of Chula Vista will be monitoring South Bay Community Services in the same manner that it monitors CDBG subracipients. An annual financial examination of the organization will be performed along with raquiring South Bay Community service to submit quarterly progress repods. At year end, staff will tour the South Bay Community Services facility and ralated projects that were assisted with HOME funds. 1 The City has the option to modify the amounts by category in the future without HUD approval if the need adses. City of Chula Vista ,,.nua P a. / 2 / P. o Geographic Location for HOME Funds The City of Chula Vista has committed HOME funds to various projects throughout the city. These projects are designed to target Iow and moderate income households at or under 60% of median income. A major commitment is 'the down payment and closing cost assistance to 130 for-sale town homes located within the EastLake community. Barriers to Affordable Housing The City actively encourages developem to set-aside 10% of newly developed units for affordable housing purposes. The City also strongly supports the County of San Diego's effort at supplying public housing such as Dorothy Street and L Street. As part of the Housing Element, the City works closely with developem in negotiating affordable housing agreements which require a 10% Unit set-aside for Iow and moderate income housing. Five pement for households at or below 80% of median income and 5% for moderate income households. Projects that meet this criteria are Roiling Hills Ranch (116 senior and 30 family units) and Otay Ranch (242 units). Both of these projects are located on the Eastern portion of the city. Low and Moderate Income Housing Funds have been targeted for these projecst, however HOME funds could also be used. Due to the increase price of for-sale housing, the City is developing a down payment assistance program. Since the down payment and closing costs require a large cash outlay, the transition from rental to for-sale housing can be a hardship for most Iow and moderate income households. The City will provide subsidy funds for the down payment in the form of a loan and will also provide a portion of the closing costs in the form of a grant. Maintaining Affordable Housing In 1968, HUD developed the 236 program that provided both mortgage insurance and mortgage interest reduction to any for-profit or non-profit developer who agreed to build affordable housing units for families. Chula Vista has four projects which were HUD financed using the 236 program. Currently, two of these projects are nearing the expiration of the affordability term. Castle Park Garden Apartments consisting of 62 non-elderly units and Rancho Vista Apartments consisting of 24 non-elderly units. The city is attempting to preserve these units through a partnership with the apartment owner, lending institutions, and non-profit organizations. The City also maintains affordable housing through the Community Housing Improvement Program (CHIP). The purpose of this program is to assist Iow income households rehabilitate their existing home. Both single-family and mobile homes are eligible to receive assistance. Currently, Low and Moderate Income Housing funds are used to fund this program. For fiscal year 2001-02 the City anticipates assisting 40 single-family households with over $800,000 in loans. For the mobile home grant program, the City anticipates assisting 33 households. Lead-Based Paint The City currently assists homeownem alleviate lead-based paint hazards through the Community Housing Improvement Program (CHIP). When lead-based paint is discovered through the rehabilitation of the property, funds are used to remove and dispose of the paint chips and to repaint the house. The City utilizes the Low and Moderate Income Housing Funds for this purpose. The City expects to use HOME funds to rehabilitate some homes. With the newly implemented lead-based paint legislation, Chuia Vista will be designing a lead-based paint hazard program to provide information to Chula Vista residents and measures to limit the impact of lead-based paint. Housing Authority In 1995 the City received HUD certification to operate as a Housing Authority. The focus of the Chula Vista Housing Authority is on the development of affordable housing through land acquisition, bond indebtedness, and rehabilitation of the existing housing stock. The Section 8 rental assistance program will continue to be administered by the County of San Diego. Chula Vista fully supports the County of San Diego in their application for vouchers. City of Chula Vista 2001 Annual Plan / ~ ' ~ 2 Page City Administration The City can allocate 10% or $93,800 of its HOME funds for administration. These funds will be used for overall administration and coordination of the HOME Program as well as staff time devoted to individually HOME-funded projects and programs. HOME funds used for administration do not require a match. I. OBJECTIVES/ACHIEVEMENTS 1. PRIORITY HOUSING NEEDS This section describes Chula Vista's strategies for addressing housing needs which am identified as High or Medium priorities. Priorities for Allocating Investment Geographically Housing assistance can be generally described as available throughout the enfim City. Homeownership activities, preservation of at-dsk affordable housing, rehabilitation of owner-occupied housing, and mixed income rental housing acquisition and development can occur in any ama of the City exhibiting need or project feasibility (subject to program guidelines). Site selection guidelines of the City ensure that all units am built or acquired in areas of the City where them is adequate services such as schools, health cam, transportation and or recreational services. PRIORITY1.1 Continue the housing rehabilitation, rental rehabilitation, and mobilehome rehabilitation programs in order to preserve the City's aging housing stock Since the inception of the Redevelopment Agency's rehabilitation programs, these programs have served almost exclusively very-low income households whose dwelling units were in dim need of rehabilitation, in order to preserve the City's aging housing stock and provide decent places for people to live, the Agency will continue doing moderate rehabilitation. For fiscal year 2001-02 the City anticipates rehabilitating 25 mobile homes; 40 single family homes; and one rental complex. PRIORITY t.2 Continue to implement the City's Affordable Housing Program so that more newly constructed rental and for-sale units are made available to Iow, moderate, and middle income households. Chula Vista is very fortunate because a large portion of the City is yet to be developed. In an effort to gain mom housing units affordable to Iow and moderate-income groups in the undeveloped areas and to promote a balanced community, the Affordable Housing Program was developed. Census Data for 1990 shows that the City lacks affordable rental and for-sale units to pemons and families in the above income groups. The five year objective as outlined in the Consolidated Plan has targeted this as a High Priority for very Iow and Iow income family rental units with construction of 250 Iow and moderate income units (80% and below) and 345 middle and above middle income units (81% to 120%). Medium Priodty is assigned to Iow and moderate income family for-sale units. Currently, the following Affordable Housing Agreements were negotiated and approved: ~ Eastlake Greens - Easfiake Development Company. This for-sale development is currently completing construction of 130 Iow income units targeting 80% and below ama median income households, and 130 moderate units targeting 8t% to 120% ama median income households. This development is receiving financial assistance from the City through the use of HOME funds in the amount of $650,000. In addition, the developer donated the land. City of Chula Vista 2001 Annual Plan / ~.~ ~ ~ ~, Page EastLake Trails- EastLake Development Company. This for-sale development will provide 33 for-sale units targeting 80% of ama median income. The City will provide HOME funds for the down payment and closing cost assistance. ~ Ota¥ Ranch - This development will provide a total of 242 units of which 91 units will be targeted to senior households. The City expects to provide financial assistance in the amount of $910,000 in Iow and moderate income housing funds. This project is located in the Eastem territory of the City. ~ Rolling Hills Ranch - The development expects to provide a total of 116 units and will target Iow-income seniors. The City will not provide any financial assistance. The project is located in eastern Chula Vista. PRIORITY 1.3 Assist Iow, moderate and middle income residents to become homeowners. According to SANDAG and data compiled from the San Diego Union-Tribune Newspaper, approximately 30% of all households could afford to purchase a single family home in the San Diego region in 1993, and it is estimated that approximately 25% of Chula Vista residents can afford a median priced single family home in Chula Vista. This percentage does assume, however, that these individuals have the down payment for a loan and a well established credit history. The City assists moderate and middle income residents by offedng the following programs: Mortgage Credit Certificate Program (MCC) - The County of San Diego administers the MCC program on behalf of Chula Vista and allows eligible buyers to take 20% of their mortgage interest as a tax credit on their federal income taxes. To be eligible for the program in non-targetad census tracts, a household must be a first-time home buyer, buy a home in Chula Vista, and earn less than 115% of County Median Income. (A targeted census tract is one where 70% or more of the households eam 80% or less of the County Median Income). The currant objective is to assist 7 moderate income families. The funding source for this program has continue to decline. Reissued Mortgage Credit Certificate Program (RMCC) - The City of Chula Vista participates in the RMCC program administered by the County of San Diego. This program allows existing MCC holders to take advantage of lower interest rates to refinance their mortgage without losing the benefit of their MCC. ~ Lease to Own Program - Staff is working with the County of San Diego along with other participating jurisdictions to offer a lease program. This program will be available to Chula Vista residents. Qualifying households who participate in the program will qualify for a home. Instead of making mortgage payments, the household will make lease payments for a period of throe years. Upon the expiration of the lease, the household qualifies for the home and assumes the mortgage, > Citywide First Time Homebuyer Program - The City expects to implement a citywide first time homebuyer program during fiscal year 2001-02. This program will target households earning 80 percent of area median income. Assistance will average between $5,000 to $10,000 in assistance for down payment and closing cost assistance. A lead-based paint program will be a major component of the citywide first time homebuyer program. City of Chula Vista 2001 Annual Plan / 2 ~ 3 Z~ Page PRIORITY 1.4 Continue to support non-profit corporations to develop or rehabilitate rental housing for very Iow and Iow-income households. In the past, the City or the Redevelopment Agency has assisted for-profit developers to develop units for Iow-income households. However, these for-profit developers always insist upon these affordable units eventually converting to market rate rentals, and as a result, the City only realizes the benefit of their investment for a limited period of time. If a non-profit corporation develops the housing, the units will be affordable for the long-term, and the City or the Redevelopment Agency has invested in an affordable project which will benefit very Iow or Iow income rasidents of the City for the usable life of the rental units. 1990 Census Data supports the fact that there is a lack of affordable rental housing in the City for these income groups. The City is currently reviewing potential rental project applications. PRIORITY 1,5 Continue to assist mobile home park residents who are faced with paying increasing rents as well as the closure of their mobile home parks. In the City, 35 mobile home parks provide housing to many very Iow and Iow-income families and seniors. Without this form of housing, many of the families and senior citizens would be facing a severe cost burden for housing, or they might not have adequate housing at all. As a result, the City has made a substantial commitment to regulate the City's parks so that the park residents can retain their affordable housing. Social and Human Service providem confirm the need for this program, as well as the public response to issues conceming mobile home rants at City Council meetings. The five year objective outlined in the Consolidated Plan has targeted this as a Medium Pdodty. The following program represents options for addressing Pdodty 1.5: ~ Mobile Home Rent Review Ordinance and Commission - The City's Rent Review Ordinance only allows park owners to raise their rent by the Consumer Pdce Index on an annual basis. Without this control, space rents would continue to increase. As a result, park residents may face a severe cost burden. Additionally, the number of mobile home spaces are shrinking due to park closures. Because of these two factors, the affordability of mobile home rents is endangered. Therefore, the City's Rent Review Ordinance was adopted. Since very few spaces are available and park closures are common if the land is zoned something other than mobile home park exclusive, the City regulates park closures by requiring park owners to provide relocation assistance to park residents who are Iow income. > Revisions to Mobile Home Ordinance - The City is looking to amend a portion of the mobile home rent review ordinance to decrease increases in rent to residents of mobile home parks and to tie increases in rent with the health, safety, and welfare of park residents. Currently, park residents rent increases annually according to the Consumer Price Index. It is expected that increases in space rent will be determined by a fraction of the Consumer Pdce Index rather than the full Consumer Price Index. Additionally, changes to the mobile home ordinance will require the park to meet and comply with the City's building codes and any violations must be cured pdor to increasing space rent. PRIORITY 1.6 Utilize the Chula Vista Housing Authority as the financial vehicle for affordable housing projects Continue to assist in the development of affordable housing projects through the use of tax-exempt and tax credit financing. The Housing Authority is curTently analyzing potential project applications for future assistance. City of Chula Vista 2001 Annual Plan //~ - 3 ~' Page A major focus of the Chula Vista Housing Authority is developing affordable housing through the issuance or supporting the issuance of bond financing. For fiscal year 2001-02, the following projects are expected to be funded through a combination of tax-exempt financing issued by the Housing Authority and Redevelopment Iow and moderate income housing set-aside funds: > .~ain Plaza - This mixed use project will be located at the comer of Broadway and Main Street and will provide 106 affordable family units. It is expected the financing will come from a combination of tax-exempt bonds and Iow and moderate income housing funds. The City will commit approximately $1.1 million in Iow-mod funds. The Chula Vista Housing Authority will be the issuer of the bonds. ~ MAAC Project- This project will develop 41 units of senior affordable housing. The City expects to provide financing in the amount of $205,000 in HOME funds. The Chula Vista Housing Authority will be the issuer of tax-exempt bonds. > Otay Ranch - This development will provide a total of 242 units of which in Phase 1, 91 units will be targeted to senior households. The City expects to provide financial assistance in the amount of $910,000 in Iow and moderate income housing funds. This project is located in the Eastern territory of the City. 2. PRIORITY HOMELESS NEEDS This section describes Chula Vista's strategies for addressing homeless needs which are identified as High or Medium priorities. PRIORITY2.1 Continue to support programs offering transitional housing opportunities for homeless families and individuals, The City's annual goal is to provide approximately $35,000 for programs to assist homeless persons and families through the following programs: Emergency Shelter Program - The State Department of Housing and Community Development administers a HUD-funded Emergency Shelter Grant Program (ESG). This program provides grants to local governments and to non- profit corporations for the rehabilitation or conversion of buildings for use as emergency shelters for the homeless, for the payment of certain operating and social service expenses in connection with the emergency shelter program, County of San Diego Voucher Program - the City of Chula Vista continues to financially support the voucher program. This program provides hotel/motel vouchers to homeless families and individuals through the winter months. ~ Thursday's Meal - This program provides meals to homeless families and individuals, Chula Vista financially supports this program, ~ South Bay Community Services - owns and operates two transitional housing sites. In addition, the City of Chula Vista continues to assist in addressing the needs of the homeless population by funding the following programs: ~ San Diego Regional Task Force on the Homeless - This program has received $5,000 in Community Development Block Grant funds since 1995 and provides Chula Vista with statistical data on the homeless population throughout San Diego County. City of Chula Vista 2001 Annual Plan / 2 ' ~/~ Page 17 UU,OUU,U,OUU ~ Lutheran Social Services (Project Hand) - This program has received $56,000 in Community Development Block Grant funds since 1995 and provides services that include, in patt, shelters for the homeless, transitional housing, emergency food, clothing, and transportation. Approximately 1000 families and individuals have received assistance through this program. Obstacles to developing, acquiring and or rehabilitating facilifies for transitional housing purposes include political resistance and lack of financial resoumes. 3. PRIORITY SPECIAL NEEDS POPULATION This section describes Chula Vista's strategies for addressing housing for special needs populations which are identified as High or Medium Priorities. PRIORITY 3.1 Provide supportive housing projects and programs for special needs populations. Special needs groups in Chula Vista include the elderly, disabled pemons, female-headed households, persons with drug and/or alcohol addictions, and persons with AIDS and related diseases. Persons with special needs have housing needs which include affordable housing, accessible housing units, housing in proximity to public services and transportation, and larger units. Because many persons in special needs groups have limited abilities and opportunities to work, they require housing which is affordable and which enables them to live as independently as possible. The City funds the following agencies with Community Development Block Grant monies: ~' Fair Housing Council of San Diego - This organization assists the City in addressing impediments to fair housing and engage in fair housing planning to remove such impediments. The Fair Housing Council has received approximately $152,000 in CDBG funding since 1995 and has assisted over 2,200 Chula Vista residents in the area of landlord-tenant disputes and fair housing discrimination issues. ~' Adult Protective Services - This agency provides adult day care and attempts to prevent institutionalization and improve the quality of life for disabled and disadvantaged seniors. Adult Protective Services has received approximately $37,500 in CDBG funding since 1995 and has assisted over 2,000 Chula Vista residents. ~ Meals on Wheels - This agency provides home delivered hot meals to seniors ebi:fl~,ats ~l~iubrl~,, ~. $50,000 in CDBG funds which served overover ~ Lutheran Social Services (Shared Housing) - This program provides services that match Iow income seniors with individuals looking for housing at a reduced cost. Shared Housing has received approximately $19,000 in CDBG funding since 1995 and has made over 220 successful matches. ~ Access Center of San Diego - This program offers disabled persons with the skills to seek employment. The Access Center has received approximately $13,500 in CDBG funding since 1995 and has assisted ever 85 disabled persons transition to employment. This program does not apply for assistance on a regular basis. Obstacles to funding these programs at a higher level is due to a lack of financial resources, the increased demand for funding from these agencies, and the public service cap mandated by HUD. City of Chula Vista / 2001 Annual Plan PRIORITY 3.2 Provide rental assistance (Section 8 Certificates and Vouchers) to lower income households with special needs overpaying for housing. Persons with special needs have housing needs which include affordable housing, accessible housing units, housing in proximity to public services and transportation, and larger units, Because many persons in special needs groups have limited abilities and opportunities to work, they require housing assistance which will enable them to live as independently as possible. There are 2,024 eldedy renter lower income households in Chula Vista; 58 pement of the extremely Iow income eldedy renters pay more than 50 pement of their income for housing, and 46 pement of the Iow income eldedy renters pay more than 50 pement of their income for housing. Currently, the City contracts with the County of San Diego to administer the Section 8 Voucher program. Obstacles to providing the Section 8 Voucher program in the City of Chula Vista include the lack of staff required to start-up a completely new program and the lack of expertise in administering a program of this size. 4. PRIORITY NON-HOUSING COMMUNITY DEVELOPMENT NEEDS This section describes the City of Chuta Vista's strategies for addressing non-housing community development needs which are identified as High or Medium priorities. A. Community Facilities PRIORITY 4.A,1 Continue to improve the quality of existing community facilities to serve the needs of lower and moderate- income households. Respondents to past Community Development Needs Assessments and Surveys ranked Youth Centers, Child Care Centers, and Parks and Recreation facilities as the highest community facility needs. With the opening of the Otay Recreation Center in the southwest area of the City, a number of services are now offered to lower income households. Focus is now on upgrading current youth facilities. B. Infrastructure Improvements PRIORITY4. B.1 Provide for needed infrastructure improvements in lower and moderate-income target areas. Respondents to past community development surveys and other community outreach methods ranked street improvements, street lighting, sidewalk construction, and drainage improvements as the highest infrastructure needs. The five-year objective as outlined in the Consolidated Plan has targeted this as a High Pdofity with the objective of funding infrastructure improvements consistent with the urgency of the established need for improvements. The following capital improvement projects are expected to be funded in fiscal year 2001- 02 although not all from CDBG. ~ Drainage Improvements-Oxford Street- There are no existing drainage facilities in this area of Oxford Street. Houses below the street pavement along Oxford Street are subject to flooding dudng moderate and heavy rainfalls. Construction of these improvements will help eliminate this problem. ~ Judson Basin Drainage - The existing structure provides one-half of the necessary ultimate capacity. Flooding of both Hilltop Drive and Naples Street and adjacent properties now occurs, which result in traffic hazards and property damage. City of Chula Vista 2oo An.u.I Pla. / Page Drainage Improvements-Tobias Drive/Glenhaven Way - The existing unimproved channel is eroding and temporan/ bank stabilization has been installed. Installation of the PCC channel would eliminate erosion, enhance the flow characteristics of the channel and complete the improvements of this section of the Judson Basin channel up to Tobias Drive. Drainage Improvements-Emerson Street- Inadequate drainage facilities in the vicinity of this project have led to pededic flooding along Emerson Street. Implementation of this project will correct these problems and facilitate the flow from upstream drainage facilities. Street Improvements-Dixon Drive/Naples to Oxford- A petition was received by the Public Works Department requesting a 1911 Block Act project be formed in order to construct the public improvements according to City policy on 1911 Block Act Assessment District formation. ~ CMP Rehabilitation- This project involves the removal or relining of corrugaged metal storm drain pipes (CMP) that are in need of repair and would also include future drainage projects. ~ North Broadway Basin Construction - This project is shown as a Stage I pdodty. Broadway is one of the City's busiest thoroughfares. Dudng rainy seasons, water frequently tops the eastedy curb and causes flooding of the Broadway "D" C. Community Services PRIORITY 4.C.1 Continue to fund public services at the federally mandated cap. Many non-profit social service providers struggle to perform their services for the residents of Chula Vista due to budget constraints. Since the City believes the supportive services these non-profits provide are impodant to residents with special needs, the City funds these non-profits to ensure that their services will continue to meet the needs of Iow and moderate income residents of Chula Vista. D. Accessibility PRIORITY 4.D.1 Provide for the access needs of the physically disabled. ADA compliance has been given high pdodty by the City. The City believes that it is important to make sure all recreational and governmental activities are accessible to persons with disabilities. Currently, the City is undertaking the following programs: ~ ADA Curb Cuts Annual Program - The City has budgeted $149,000 for curb cuts and expended $100,000. To date, approximately 30 curb cuts have been provided throughout the City. E, Economic Development PRIORITY 4.E.1 Continue to provide an array of Business Assistance Programs to encourage job creation through business attraction, retention, and expansion. The City of Chula Vista has been negatively impacted by the economic recession which began in the eedy 1990s. Commercial and industrial vacancies were high and the City's industrial space absorption rate was Iow. The fact that the City's retail sales were relatively flat despite the rapid population growth indiindicated income were failing or City of Chula Vista 2001 Annual Plan / ~ ~ ~ Page 20 stagnating. Currently, however, there has been a turn around in the economy and Chula Vista is enjoying increasing sales tax and property tax revenues. The following programs represent the City's efforts to address this pdodty: Economic Development S~rategy (EDS) - The City is in the process of developing an Economic Development Strategy, a basic blue print for short- and long-range city development. The goal of the EDS is to ensure a balanced, fiscally strong community. An 18-month process, the EDS involves input from the private sector, local and regional agencies and the public and will result in an "Economic Development Element" to be included in the City of Chula Vista General Plan. > Redevelopment Agency - The City of Chula Vista has one of the most active and progressive redevelopment programs in California, with close to 3,000 blighted or under-utilized acres designated under state law as 'Redevelopment* Project Areas'. Chula Vista's five project areas are Bayfront, Otay Valley Road, Southwest, Town Centre I and Town Centre II. Redevelopment activities provide these areas benefits such as additional employment opportunities, more housing opportunities, increased property values and enhanced community pride. Some of the major projects to be concentrated on for fiscal year 2001-02 include the following: o Carter-Reese Project - This project is located at 760 Broadway and is a proposed mixed-use residential and retail center o Completion of Phase i and Beginning of Phase II of the Gateway Project in Town Center 1 o Bayfront Commercial Center- This proiect will be a 1.2 million square foot retail center and will be located at the foot of H Street o Bayfront Village - This project will offer a mixed-use and transit- oriented project to be located at F Street and Woodlawn o Phase II of the Chula Vista Auto Mall ~ BUSINESS RESPONSE TEAM (BRT) - The Business Response Team (BRT) is an executive-level decision-making body that acts as both a City economic development think tank and an interdepartmental action team for commemial and industrial projects. The team focuses on four activities - developing citywide economic development policies, providing timely and competitive proposals in response to business siting opportunities, implementing interdepartmental business assistance systems and implementing a comprehensive customer service training program. City of Chula Vista 200f Annual Plan / ~ ~ ~O Page 2f LOCAL EMPLOYER ASSISTANCE PROGRAM (LEAP) - The Chula Vista Local Employer Assistance Program (LEAP) is a business retention and expansion effort started by the City in 1999. LEAP's two goals are 1) to respond to the needs of individual Chula Vista businesses, while 2) creating new programs and services that will support the local business community as a whole. To date, Chula Vista's LEAP program has assisted 44 companies, resulting in more than 400 jobs being retained in the community and over 600 jobs being created. ENTERPRISE ZONE - In a collaborative effort, the Cities of Chula Vista and San Diego, the Port District and the California Technology, Trade and Commeme Agency have added portions of the Chula Vista bayfront to the State-designated "South Bay Enterprise Zone." Commemial and industrial companies located within the Zone boundaries can take advantage of substantial State financial incentives, significantly helping several major employers, including BFGoodrich and Raytheon, and a number of planned development projects. RMDZ - The Chula Vista/South San Diego RMDZ, which encompasses the entire City, is a joint effort of the City of Chula Vista, the City and County of San Diego and the California Integrated Waste Management Board to assist companies that recycle and conserve. Chula Vista manufacturers using recyclables or diverting waste from landfills can benefit from Iow interest loans and technical assistance under the program. HIGH TECH/BIOTECH ZONE - In order to attract targeted high technology, biotechnical and biomedical businesses, Chula Vista has established a High Tech/Biotech Zone within the Eastlake masterplanned community. The Zone offers firms several benefits, including a series of incentives intended to meet the specialized needs of high tech and biotech firms. SECTION 108 LOAN GUARANTEE PROGRAM - Under the Section 108 Loan/Loan Guarantee Program, the City can financially assist targeted companies by offering loan terms more favorable than pdvate financing. Such loans must be approved by the Chula Vista City Council and by the U.S. Department of Housing and Urban Development; the City's total funding authority is $10 million. The city is intending to activate a Section 108 Loan/Loan Guarantee Pregrem. City staff is evaluating a loan to Nypro San Diego, a plastic mold injection manufacturer, for approximately $1.8 million, for the purchase of manufacturing equipment to support job creation and retention efforts, issuance of a loan will be subject to approval by city council contingent upon the negotiation of legal and financial terms and conditions acceptable to the city. CONNECTORY. COM- CONNECTORY.COM, an Internet database linking businesses to each other and to the global marketplace, helps Chula Vista companies be more competitive in today's rapidly changing business environment. The free business-to-business service provides detailed information about company products, services, core capabilities and capacities to potential customers on-line. City of Chula Vista 2001 Annual Plan ?2 - ~/ ] Page 22 Other active Economic Development Projects include: GATEWAY- Located at Third and H Street, this $58 million, 334,000-square foot major mixed-use commemial/office complex is anticipated to employ as many as 1,200 people. The 4.5-acre, three- phase project (two five-story and one six-story buildings) is the largest commercial development ever undertaken in the Town Center ~ Redevelopment Project Area. LEVlTON - Leviton Manufacturing, an intemational leader in the electrical products industry, recently completed a $5.9 million western regional R&D facility in Chula Vista's EastLake Business Center. The 90,000-square-foot facility will employ 200 highly skilled personnel, and will house administrative and engineering components as well as light assembly and distribution operations. NLP FURNITURE INDUSTRIES - The South County Economic Development Council, in partnership with the City of Chula Vista, facilitated the loan of $400,000 to NLP Furniture, the largest furniture restoration company in San Diego County. The funds will allow the company to expand their current facility in Chula Vista and create 85 new jobs for Iow-income residents. The Economic Development Division of the Community Development Department has worked diligently to structure partnerships with other agencies to provide an array of services such as: CDC SMALL BUSINESS FINANCE - Chula Vista has established a formal partnership with the CDC Small Business Finance Corporation, a certified Small Business Administration (SBA) financial lender. This partnership provides Chula Vista companies with access to Iow-fnterest financial support, including a variety of loan and loan guarantee programs. CONTRACTING OPPORTUNITIES CENTER (COC) - Through a memorandum of understanding (currently submitted for Board approval) with the Contracting Opportunities Center, Chula Vista is able to offer local businesses specialized assistance in developing govemment contracting opportunities. AI~ services are free to qualified small businesses PROPERTY BASED BUSINESS IMPROVEMENT DISTRICT (PBID) - Developed by a growing coalition of property and business owners, the proposed Downtown Chula Vista property-based business improvement district is a benefit assessment district designed to improve properties located within Chula Vista's central business district. The PBID will fund new improvements and activities, including economic development, marketing, parking management and maintenance inifiatives, in conjunction with those currently provided by the City. SMALL BUSINESS DEVELOPMENT AND INTERNATIONAL TRADE CENTER (SBD&ITC) - The Small Business Development and International Trade Center (SBD&ITC) offers an array of small business resources to assist entrepreneurs in Chula Vista. The City is finalizing a memorandum of understanding with the SBD&ITC to formalize its partnership. SOUTH COUNTY CAREER CENTER (SCCC) - The San Diego Workforce Partnership, Inc., in partnership with TTI of Califomia, operates the South County Career Center, a one-stop, comprehensive workforce development and business support services for local employers. Working as a team with the City of Chula Vista, the Center seeks to find solutions individually tailored to each employer's workforce development needs. City of Chula Vista 2001 Annual Plan / ~ - ZT/ ~.. Page 23 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE CONSOLIDATED ANNUAL PLAN FOR FISCAL YEAR 2001-02 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME INVESTMENT PARTNERSHIP (HOME) PROGRAM BUDGETS AND AUTHORIZING TRANSMITTAL OF THE CONSOLIDATED ANNUAL PLAN TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD WHEREAS, the City of Chula Vista has prepared a Consolidated Annual Plan ("Plan") for fiscal year 2001-02 per HUD Rules and Regulations; and WHEREAS, the City will receive a 2001-02 CDBG entitlement of $2,114,000; and WHEREAS, the City will receive a 2001-02 HOME entitlement of $938,000; and WHEREAS, the City has followed its Citizen Participation Plan and held a public hearing on housing and community needs on April 3, 2001 at which public testimony was received and considered by the City Council with respect to the Plan; and WHEREAS, the City has determined that all of the proposed activities meet the CDBG national objectives to benefit primarily Iow-income households or aid in the elimination of slums and blight; and WHEREAS, the City has determined that it is necessary and appropriate to fund special activities by certain sub-recipients to implement neighborhood revitalization and community economic development projects in order to meet the goals and objectives of the Plan; and NOW, THEREFORE, BE IT RESOLVED based on the findings above, the City Council of the City of Chula Vista does hereby approve the Consolidated Annual Plan for FY 2001-02 including both the FY 2001-02 Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) program budgets and authorizing transmittal of the Plan to the U.S. Department of Housing and Urban Development (HUD). BE IT FURTHER RESOLVED that the City Council of the City of Chula Vista approves the Consolidated Annual Plan, a copy of which is attached hereto and incorporated herein as Exhibit A. BE IT FURTHER RESOLVED, that the Community Development Director is authorized to transmit the Consolidated Annual Plan for FY 2001-02 to the U.S. Department of Housing and Urban Development (HUD). Presented by Approved as to form by Jo~ M'~K~heny ? ' fl ChrisBalomone C, y t3 Director of Community Development CDBG and HOME Program Budget Organization FY 2001-02 Budget Public Services United Way of San Diego $4,250 Chula Vista Youth Services Network $123,151 Sharp HealthCare Foundation $21,250 Chula Vista Aquatic Association $4,590 South Bay Senior Collaborative $40,651 Chula Vista Veterans Home Support Fund $5,000 Chula Vista Coordinating Council $17,000 Lutheran Social Services - Project Hand $10,200 Chula Vista Family Violence Collaborative $36,522 Thursdays Meal $6,800 Chula Vista Therapeutics Program $13,087 Chula Vista Literacy Team $9,405 Suits You San Diego $11,594 Southwestern College - South County Career Center $13,600 Total $317,100 Community Proiects Lutheran Social Services - Caring Neighbor $32,300 Building & Housing Community Preservation $50,000 SBCS Community Development Program $61,750 Total $144,050 Economic Development South County EDC - Small Business Development Fund $13,833 South Bay Community Services - Teen Center $25,175 Southwestern College - Contracting Opportunities Center $10,751 Total $49,759 Non-Profit Capital Improvement Proqram Boys & Girls Club - Skate Board Park $150,000 Scripps Otay Family Health - Office Renovation $19,500 Chula Vista American Little League $55,000 Total $224,500 City Caoital Imorovement Proqram Drainage Improvements- Tobias/Glenhaven Way $311,000 Connoley Park Renovation $196,702 Gateway Chula Vista $300,000 ADA Curb Cuts Annual Program $50,000 Total $857,702 Administration & Planninq South Bay Family YMCA $26,600 Community Development Department Reference Book $5,000 Regional Task Force on the Homeless $1,000 Library & Recreation Information and Referral Specialist $9,912 Fair Housing Council of San Diego $39,000 Child Care Coordinator $49,505 City Staff Administration $211,783 Emerson Street Drainage Design $80,000 Total $422,800 HOME Proqram Budqet Staff Administration $93,800 CHDO Set-Aside $140,700 Sour? Bay Community Services Office Rent $46,900 Affordable Housing Development $656,600 Total $938,000 Total CDBG and HOME Program Budgets $2,953,9tt CITY COUNCIL AGENDA STATEMENT ITEM NO.: MEETING DATE: 0,5/08/01 ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING A REPORT OF ALTERNATIVES TO MEET THE OTAY RANCH COMPANY'S SPA ONE AFFORDABLE HOUSING OBLIGATION AND, ASSUMING COUNCIL DOES NOT SUPPORT THE ORIGINAL PROJECT PROPOSAL, DIRECTING THE OTAY RANCH COMPANY TO CONTINUE TO PURSUE THE 91 UNIT SENIOR HOUSING/MIXED USE DEVELOPMENT WITHIN VILLAGE ONE, MEET THE REMAINING 155 UNIT OBLIGATION BY EITHER ALTERNATIVES 1 OR 2 AND NOT PURSUE MITIGATION OPPORTUNITIES WITHIN WESTERN CHULA VISTA SUBMITTED BY: COMMUNITY DEVELOPMENT DIRECTOR~/~; PLANNING & BUILDING DIRECTOR REVIEWED BY: EXECUTIVE DIRECTOR 4/STHS VOTE: YES ~] NO ~ BACKGROUND On February 20, 2001, a joint meeting of the City of Chula Vista City Council, Redevelopment Agency, and Housing Authority was convened to consider a 271 unit affordable housing complex within the Otay Ranch master planned community to meet The Otay Ranch Company's (ORC} SPA One affordable housing obligation of 246 units of Iow-income housing. The proposed "Heritage Town Cente~' project was to be located on Otay Ranch Village 1 tentative map R-47 & C1 sites on East Palomar Street between Santa I~ita Avenue and Santa Andrea Avenue (Exhibit 1). This project, as proposed, would consist of 91 units for seniors and 180 units of multifamily housing and would be developed by a partnership between The Otay Ranch Company and South Bay Community Services (SBCS). The City Council and the Housing Authority were asked to consider the issuance of $25 million in private activity bonds from the California Debt Limit Allocation Committee (CDLAC) to finance the proposed proiect. Additionally, the City was to consider waiving certain City fees and granting additional credits for units based upon affordability levels and large bedroom sizes. The Redevelopment Agency was to consider a request for financial assistance for the proiect. Rather than approve the resolutions expressing the Authority's intent to issue bonds and the Agencyfs conditional approval of financial assistance, Council directed staff to move forward with the 91 unit senior housing component of the project at the C1 site and to return with alternative proposals to meet OP~C's remaining affordable housing obligation, including the potential for mitigating their obligation in western Chula Vista. /3 - / PAGE 2, ITEM NO.: MEETING DATE: 05/08/01 RECOMMENDATION It is staff's recommendation at this time that the City Council take the following actions: 1) Accept the report of alternatives to meet The Otay Ranch Company's SPA One affordable housing obligation; and 2) Assuming that Council does not support the original projed proposal, dired aRC to continue to pursue the development of a 91 unit senior housing/commercial mixed use projed to satisfy a portion of their SPA One affordable housing obligation, meet, remaining 155-unit obligation by either Alternatives 1 or 2 and not pursue mitigation opportunities within western Chula Vista. BOARDS/COMMISSIONS RECOMMENDATION On February 7, 2001, the Housing Advisory Commission voted to recommend the development of the original proposal of a 271-unit affordable housing projed, known as "Heritage Town Center" and the use of tax-exempt bonds and Low and Moderate Income Housing Set-aside funds to finance the project. On January 22, 2001, the Design Review Committee reviewed the proposed plans for the 271- unit Heritage Town Center project and recommended approval. Housing Element Requirements The Cih/s State-mandated Housing Element, which was adopted by Council in December 2000, requires the provision of housing for all economic groups and distribution of affordable housing developments throughout the City. The Cih/s strategy to implement this mandate is to require 10 percent of any new subdivision in excess of fifty (50) units to be made affordable for Iow and moderate-income families (5% Iow and 5% moderate) and to balance affordable housing development throughout the City. The primary objedive of this policy is to increase affordable housing opportunities in the new planned communities of eastern Chula Vista so that residents, particularly Iow-income households, have equal housing choices throughout the community. The Housing Element further stipulates that, as a priori~/, the development of affordable units be satisfied within the master planned community itself. However, in order to respond to the unique conditions of each development, the City, at the sole discretion of the City Council, may consider alternative methods, other than the actual on-site development. These alternative methods, which include off-site location mitigation, may be considered only when the City, at its discretion, has made a number of determinations and findings. Generally, the Ci~/must find that using the alternative method supports specific Housing Element policies and goals; assists the City in complying with State law for the provision of affordable housing; will not be significantly detrimental to achieving PAGE 3, ITEM NO.: MEETING DATE: 05/08/01 balanced residential communities; and will provide at a minimum an equivalent number of required affordable units, with comparable rent and occupancy restrictions. Additionally, it must be found that the new construction within the project creates an unreasonable hardship upon the developer. Affordable Housing Obligation aRC has an obligation to provide 246 units of Iow-income housing. Affordable · Otay Ranch Company SPA One Total Dus Dus ITelegraph (Janyo~ Estates (Deterred Obligation) 11 Village 1 2,649 132 Village 5 1,098 55 Village I West 845 42 ,(JTAL 4,592 i 246 Per the Affordable Housing Agreement (the "Agreement"), 50 percent of the 246 unit affordable housing obligation or 123 units must be under construction on or prior to the issuance of the 1,840th building permit (building permit threshold). As of March 29, 2001, no Iow-income units are under construdJon, 1,673 building permits have been issued and 212 building permits are in plan check and are ready for issuance. The 1,840~h unit threshold could be reached as early as June 2001. ORC's original proposal to satisfy this obligation involved the development of a 271 unit affordable housing project in Village One, with 91 senior units on site Cland 180 family units on site R-47. This proposal is consistent with the threshold requirements prescribed within the Agreement. City Council was supportive of the development of the C1 mixed-use site with 91 units for seniors. However, concerns were raised by the City Council as to the unit density and concentration of 180 affordable family units on R-47. Council directed staff to return with alternative proposals to mitigate the concentration issue by providing only the senior units in Village One of Otay Ranch and the family units in other areas of Otay Ranch and/or western Chula Vista. With the development of the 91 unit senior housing/commercial mixed use project, as well as their continued commitment to build the original project proposal if the Council is supportive, aRC has demonstrated a good faith effort to meet their affordable housing obligation within the time frame described in the Agreement. At this time, staff reasonably believes that the Developer will meet the building permit threshold prior to commencing construction on the required 123 affordable housing units. Staff will need to return to Council, at a later date, with implementing resolutions to allow for a tolling of the affordable housing threshold so that aRC is provided an opportunity to pursue other sites for development of the remaining 155-unit SPA One affordable housing obligation. PAGE 4, ITEM NO.: MEETING DATE: .05/08/01 Concentration and Density Issues As specified within the original SPA Plan, aRC is to meet their affordable housing obligation for Villages One and Five within three targeted sites of Village One. With changes in properly ownership, it was necessary to only target sites within Village One for affordable housing since the Developer did not have ownership of any multifarnily housing sites within Village Five. For various internal reasons, the Developer chose to provide market rate units on two of the targefed sites rather than low-income affordable units. This eventually lead the Developer to propose to meet its entire SPA One affordable'housing obligation on the C1 and R-47 sites within Village One. As originally proposed, Heritage Town Center would provide a total of 91 senior housing units within a mixed used development on the C1 site and 180 Iow-income family units on the R-47 site. Council raised concern over the concentration of Iow-income family units on the R~47 site and the high density of the project. The Ci~/'s balanced communities policy ideally seeks to have affordable units included within market rate developments, such as Teresina at Lomas Verdes (only 20 percent of the total 440 units are Iow- income affordable units). Currently, the financing reality for Iow-income affordable housing does not support this ideal of mixed income developments. As California's housing market tightened, the demand for affordable housing development grew. As a result of the increasing demand on the two major funding sources for affordable housing development, tax credits and tax exempt bond financing, policies were enaded by the State that favored projects developed with all units affordable to Iow income households or a 100 percent affordability level to ensure the production of the maximum amount of affordable units possible. Teresina is in fact the last mixed income housing devetopment funded by the California Debt Limit Allocation Committee (CDLAC). Under the current policies of both CDLAC and TCAC (Tax Credit Allocation Committee), priority for funding is given to housing developments with the greatest levels of affordability. Although the City, from a policy standpoint, may favor the integration of Iow-income affordable units with market rate units, this mixed income approach would likely be unsuccessful in securing the necessary financing to make such developments a reality. Whether or not aRC satisfies their affordable housing obligation on the R-47 site or other sites within Village Five or Six or even in western Chula Vista, such housing development will have to propose all units (100%) affordable to Iow income households for the practical purposes of financing. While an affordable housing development would provide a concentration of Iow-income households on one site, it does provide the needed balance of housing opportunities for all economic groups within the overall Otay Ranch development. As illustrated in Exhibit 1, there are five adjoining sites within Village One for high-densi~ multifamily development, totaling nearly 1,300 apadment units. As aRC had originally proposed, the 180 units of Iow-income family units on R-47 would have PAGE 5, ITEM NO.: MEETING DATE: 05/08/01 comprised only 14 percent of the total 1,267 apartment un~ to be developed within the core of Village One. The R-47 site is now earmarked for development as a 174-unit market rate apartment community, a reduction of only six units from the Developer's original project proposal. The density of the market rate development will still remain high at 39.5 dwelling uni~ per acre (dus/ac). A total of 1,261 multifamily units would be concentrated within the Village One Core, with 91 affordable units for seniors and no affordable housing opportunities for families. Densities of the five adjacent multifamily developments within Village One would range from' 24 to 40 dus/ac, with an average density of 29.3 dus/ac. In keeping with smart growth principles, the Metropolitan Transit District Board (MTDB) requested that densities within Villages One, Five and Six be high enough to support the proposed Trolley stop. Should aRC provide an affordable housing development within Village Five and/or Six, the same scenario of high densities and a concentration of Iow-income housing on one single site but an overall balance of housing opportunities for an economic groups would result. Neighborhoods DUs Density Income Level (duslac) Village One R20 R21 R19 R47 R15 C1 Subtotal R43 440 129.3 Mixed (Teresina) R44 ~. R30a 247 [ 30.9 Market (Proposed) R30b 326 I 31.0 Market (Proposed) R7b 165 i 28.4 Affordable/Market (Proposed)* R8 337 i 28.8 Affordable/Market (Proposed) R9b 326, 25.7 Affordable/Market (Proposed) Subtotal 8281 27.6 TOTAL 3,102 29.0 *Current proposal by The Otay Ranch Company to satisfy their SPA One affordable housing obligation. PAGE 6, ITEM NO.: MEETING DATE: 0~/08/01 See Exhibit I for the location of each neighborhood. Alternatives for Affordable Housing for Families With an affordable housing obligation of 246 units for SPA One and 91 senior units to be provided within Village One, ORC has a remaining obligation of 155 Iow-income units. As directed by Ci~/ Council, staff has worked with the Developer and is presenting three possible alternatives within other villages of Otay Ranch and/or western Chula Vista to meet this 155-unit obligation (see Exhibit 2)~ Council should be aware that there are a wide variety of potential alternatives with various options within each alternative. For simplidty purposes, staff and ORC have narrowed them down to three alternatives, in addition to the option for the original project proposal. Staff understands that the Developer is not supportive of Alternative 1 while staff does not support Alternative 3. 1. Village Five (R-30a and K-30b) The Otay Ranch Company is currently proposing a SPA One amendment to split neighborhood R-30 of Village Five into two sites (R-30a and R-30b) for market rate multifamily housing development. As proposed, R-30a would allow 247 units (30.9 dus/ac) and R-30b could accommodate 326 units (31 dus/ac). The Otay Ranch Company could readjust lot lines to create three rather than the two legal lots currently proposed. One lot of 5.2 acres could be created to accommodate the 155 affordable housing obligation of SPA One. The remaining balance of 418 market units would then be distributed between the two other lots created. This alternative would allow Otay Ranch to meet their SPA One affordable housing obligation within each Village of SPA One. The Ranchwide Affordable Housing Plan of the General Development Plan (GDP) would need to be amended to allow more than a 25 percent transfer of an affordable housing obligation from one village to another village of the same SPA. Additionally, the Affordable Housing Plan of SPA One will need to be amended to target sites within Village Five for affordable housing. In contrast to the original proposal for 271 units on C1 and R-46, a 155-unit project within Village Five would reduce the concentration of Iowdncome housing units on a single site and within a village. With 155 affordable units on R-30 and the 88 affordable units within Teresina, approximately 24 percent of the anticipated !,013 multifamily units within Village Five would be affordable for Iow-income households. A 155-unit development would still require a high densi~/(29.8 dus/ac). The higher density is consistent with the densities needed for transit oriented developments. The Otay Ranch Company does not support this alternative. The Developer has proposed R-30a and R-30b for market rate multifamily housing and has potential buyers for these sites. PAGE 7, ITEM NO.: MEETING DATE: 05/08/01 2. Villac~e Six (R-7b) Rather than providing the remaining 155 affordable housing units within SPA One, the City could allow The Otay Ranch Company to defer this affordable housing obligation to a future SPA (ViJlage Six). Since the City would not require any affordable housing within Village Five, the Developer could proceed with their proposal to split R-30, currently designated for 145 single family homes, into two multifamily sites (R-30a and P,-30b) with a capacity for a total of 573 market rate apartment units. A total of 224 affordable housing units (155 family units for the Village One obligation and 69 family units for the Village Six obligation) could be provided at the 1~-7b and/or other sites within Village Six. R-7b is ideal for affordable housing since it is transit oriented and in close proximity to community services and facilities. The proposed Village Six SPA Plan states that the maximum allowable units for R,-7b is 165 units. However, preliminary planning indicates that R-7b may not be able to accommodate the 165 units currently allowed due to site constraints. Therefore, it may not be feasible to increase the allowable units from 165 units to the 224 units necessary to meet the remaining SPA One and Village Six obligation. Should R-7b be unable to accommodate the required affordable housing units, the Developer may need to look at other sites, R*8 or R-9b, as alternatives sites for affordable housing, The Affordable Housing Plan of SPA One will need to be amended to specify the transfer of the affordable housing obligation from Village One of SPA One to Village Six of a future SPA. The Affordable Housing Plan of the General Development Plan (GDP) expressly prohibits the transfer of the affordable housing obligation from one SPA to another SPA and therefore, would need to be amended to allow such transfer. While The Otay Ranch Company would not provide any affordable housing opportunities for families within SPA One, there are still affordable housing opportunities for Iow-income households. Ninety-one (91) affordable units for seniors are to be developed within Village One and there are 88 affordable family units within McMillin's Teresina at Lomas Verdes in Village Five. By transferring the obligation to Village Six, the Developer would exceed their threshold requirements for providing affordable housing. It is anticipated that construction of units within Village Six is approximately a two and a half years away. Increasing density on R-7b to allow 224 affordable units (38.6 du$/ac) would raise the same issues of high concentration and density raised with the proposal of affordable housing for R-47 in Village One. The development of a 100 percent affordable housing project is necessary for financing purposes. The higher density is consistent with the densities needed for transit oriented developments. PAGE 8, ITEM NO.: MEETING DATE: 05/08/01 The Otay Ranch Company supports this alternative. This alternative would allow the Developer to continue with their proposal to split R-30 in Village Five into two lots (R- 30a and R-30b) for market rate multifamily housing. Staff is supportive of this alternative. 3. Villafle Six (R-7b) and western Chula Vista This alternative represents the current proposal by ORC to satisfy their SPA One affordable housing obligation. Under this alternative, the City could allow ORC to defer 105 units of their SPA One affordable housing obligation to Village Six and meet the remaining 50 units through an affordable housing projed to be developed in western Chula Vista. The transfer of a portion of the Otay Ranch Iow-income housing obligation will require amendments to the Otay Ranch General Development Plan, SPA One Plan and the SPA One affordable housing plan. A total of 174 affordable housing units (105 family units for the Village One obligation and 69 family units for the Village Six obligation) would be provided at the R-7b site within Village Six. As discussed under Alternative 2, preliminary planning indicates that R-7b may not be able to accommodate the 165 units currently allowed due to site constraints. Therefore, the Developer may need to look at other multifamily sites within Village Six to accommodate the required 174 affordable units. The proposed Village Six SPA Plan will need to be amended to increase the maximum allowable units of the multifamily sites targeted for affordable housing to accommodate a minimum of 174 units. Similar to Alternative 2, there are issues regarding the deferral of the obligation, lack of affordable housing opportunities, and high concentration and density of units. Attached os Exhibit 3 is a proposal submitted on April 24, 2001 by ORC and South Bay Community Services (SBCS). To satisfy a portion of their obligation, the Developer is proposing the new construdion of a 50 unit limited equity co-op in western Chub Vista. It is anticipated that the development would be similar to the Trolley Terrace Townhome projed developed by SBCS. Funding sources available for this project include 9 percent tax credits, the Affordable Housing Program of the Federal Home Loan Bank, and a subsidy from the City/Agency. ORC and SBCS have not yet focused on a specific site or determined development costs and financing sources for this project. The mitigation of a portion of the Otay Ranch obligation on the west side of the City does present an opportunity to further revitalize the Broadway Corridor and other locations that are in need of improvement. Such opportunities include the potential to convert some of the existing poorly maintained motels on Broadway and other less desirable uses into affordable housing projects that could also include mixed uses. The positive PAGE 9, ITEM NO.: MEETING DATE: 05/08/01 aspects of revitalization are however, balanced by the anticipated costs of developing in western Chula Vista and further concentrating Iow-income housing in the area. Based upon the City's past experience with affordable housing, it is anticipated that development costs are higher in western Chula Vista and a greater subsidy may be required from the City/Agency. The City/Agency has subsidized to a greater extent those projeds developed in western Chula Vista, such as Main Plaza, Trolley Terrace Townhomes, and Trolley Trestle. While certain development impad fees would not apply in western Chula Vista, these costs are balanced or even exceeded by land acquisition cos~ and relocation expenses. Development in western Chula Vista is likely to be limited to smaller sized projeds. Otay Ranch is proposing a fifty-unit development. With the lack of economies of scale, costs are higher the smaller the development, as seen with the Trolley Terrace Townhome development. This alternative also presents challenging issues which include the further concentration of Iow-income housing in the area and land use / zoning constraints. As shown in Exhibit 4, Citywide there are 41 affordable housing developments of approximately 2,564 Iow-income affordable units. Seventy-eight percent of the 41developments and 65 percent of the units are located in western Chula Vista. Arroraame Mousing Affordable Units Description Developments NO. I % No. I % Eastern Gl~ula Vista 9 22% 888 35% Western Ghula Vista 32 ~8% 1,676 TO I AL 41 10O"/o 2,564 100% Additionally, the City of (:hula Vista has ],874 HUD Sedion 8 Low-income Certificates/Vouchers leased and operated by the (:aunty of San Diego. Nearly oll of those tenants receiving Sedion 8 rental assistance reside within western (:hula V~sto (Exhibit 5). City Council's goal of revitalization is already being undertaken by the City and in partnership with the private development community. City staff will continue in their revitalization efforts of western Chula Vista regardless of any adion taken to mitigate Otay Ranch's affordable housing obligation. Within the last five years there has been a marked increase in improvement adlvity in the western part of the City which is expeded to continue. Examples of this trend include the Gateway Plaza, the Peartree Apartments Acquisition Rehabilitation Projed, and the proposed Main Plaza Mixed Use Project on Broadway and Main. Staff is currently working on expanding the Community Home Improvement Program (CHIP) that will also increase the amount of new investment in the housing stock on the west side of the City. PAGE 10, ITEM NO.: MEETING DATE: 05/08/01 Other Alternatives While staff has proposed three possible alternatives within other villages of Otay Ranch and/or western Chula Vista to meet The Otay Ranch Company's remaining 155-unit obligation, there are other alternatives which may also satisfy this obligation. For simplidty, staff has presented the three most feasible alternatives. Other alternatives analyzed and discussed by staff, include the following: 1. A large affordable housing development within Village Five that would satisfy the obligations of SPA One and future SPAs; and 2. Affordable homeownership opportunities, such as the Eastlake "Antigua" development. CONCLUSION Staff reasonably believes that the Developer will reach the building permit threshold related to the construction of 50 percent of the Developer's affordable housing obligations as described in Section 2b. of the Affordable Housing Agreement. The Developer, however, has made a good faith effort to meet their obligation within the time frame prescribed, Therefore, staff will return, at a later date, with implementing resolutions to a~low for a tolling of the building permit threshold. Staff recommends that the proposed 91 unit senior housing/mixed use projed as currently contemplated should proceed in order to compete for the next tax exempt bond funding cycle due June 1, 2001. This projed will be brought forward for City Council/Agency consideration on May 15, 2001. Upon Council's diredion, staff further analyzed the issues of density and concentration within Otay Ranch related to the remaining 155-unit affordable housing obligation and evaluated alternatives to mitigate these concerns. As discussed previously, all of the multifamily sites within Village One, Five and Six are planned for high densities, ranging from 24 to 40 dus/ac, in order to support the proposed Trolley line. Therefore, the original proposal for 180 affordable family units on R-47 (41dus/ac) is consistent with the densities of the surrounding properties and the allowed density for that site (40 dus/ac). Whether a multifamily proied is developed as market rate or affordable, the allowable densities and the plan for transit-oriented developments wilt result in high density developments. Additionally, affordable housing projects must be developed with all units (100%) targeted for Iow income households in order to secure financing from the two major programs available for affordable housing development (tax credits and tax exempt bond financing). The original project proposed all 91 units for seniors and 180 units for families be affordable to Iow income households in keeping with the policies of these ~wo funding sources. Any alternative proposal to meet ORC's remaining 155-unit obligation will also be proposed with all units as affordable to Iow income households (100% affordability). PAGE 11, ITEM NO.: MEETING DATE: 05/08/01 Staff believes that there are other opportunities within the Otay Ranch master planned community as possible alternatives to the R-47 site to meet the ORC's remaining SPA One affordable housing obligation. Furthermore, aRC and SBCS have not yet identified a feasible project in western Chula Vista to mitigate a portion of the Developer's obligation. Therefore, staff recommends that no mitigation opportunities be pursued within western Chub Vista. Assuming that the City Council does not support the original project proposal for 180 affordable family units on R-47 within Village One, staff further recommends that the remaining 155-unit affordable housing obligation be met through Alternatives 1 or 2. In accordance with the City's Housing Element Policy 3.3.2 Affordable Housing Requirement, it is staff's position that the new construction of a project within the Otay Ranch master planned community to satisfy the Developer's affordable housing obligation does not create an unreasonable hardship. Staff further finds that allowing the transfer of this obligation to western Chula Vista would be significantly detrimental to achieving balanced residential communities by limiting housing opportunities available for Iow-income households within eastern Chub Vista and further aggravating the concentration of ~ow-income housing in western Chula Vista. FISCAL IMPACT This item is for discussion only. No financial assistance is being requested at this time. ATTACHMENTS 1. Otay Ranch Site Plan 2. Summary of Alternatives 3. Otay Ranch/SBCS' Western Chula Vista Proposal 4. Map of Affordable Housing Developments 5. Section 8 Assisted Housing Units (HINES) J:\COMMDEV~STAFF.REP\05-08-01~,113 Otay Ranch Alternatives.doc [5/4/01 2:00 PMJ COUNCIL RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING A REPORT OF ALTERNATIVES TO MEET THE OTAY RANCH COMPANY'S SPA ONE AFFORDABLE HOUSING OBLIGATION AND, ASSUMING COUNCIL DOES NOT SUPPORT THE ORIGINAL PROJECT PROPOSAL, DIRECTING THE OTAY RANCH COMPANY TO CONTINUE TO PURSUE THE 91 UNIT SENIOR HOUSING/MIXED USE DEVELOPMENT WITHIN VILLAGE ONE, TO MEET THE REMAINING 155 UNIT OBLIGATION BY EITHER ALTERNATIVES 1 OR 2 AND TO NOT PURSUE MITIGATION OPPORTUNITIES WITHIN WESTERN CHULA VISTA WHEREAS, on February 20, 2001, a joint meeting of the City of Chula Vista City Council, its' Redevelopment Agency, and its' Housing Authority ("City/Agency/Authority") was convened to consider the issuance of private activity bonds from the California Debt Limit Allocation Committee and financial assistance from the Redevelopment Low and Moderate Income Housing Set-aside fund to finance The Otay Ranch Company's (the "Developer") development of a 271 unit affordable housing complex (the "Project") within the Otay Ranch master planned community to satisfy their SPA One 246-unit affordable housing obligation; and WHEREAS, the Project, as proposed, would consist of 91 units for seniors within a mixed use commercial development located on Otay Ranch Village One tentative map C1 and 180 affordable family units on the adjoining Village One R--47 site; and WHEREAS, the City/Agency/Authority expressed support of the development of the C1 site, with 91 units for seniors, but had concerns regarding the unit density and concentration of 180 tow income family units on the R-47 site; and WHEREAS, at such meeting, the City/Agency/Authority directed staff and the Developer to move forward with the development of the 91 unit senior housing/commercial component of the Project at the C1 site and to return with alternative proposals to mitigate the concentration issue by development of the remaining 155-unit affordable housing obligation within other areas of Otay Ranch and/or western Chula Vista; and WHEREAS, on May 8, 2001, the City considered a report of three alternative proposals to meet the remaining 155-unit affordable housing obligation; and WHEREAS, the City finds that the new construction of an affordable housing development within the Otay Ranch master planned community to satis~ the Developer's affordable housing obligation does not create an unreasonable hardship for the Developer; and WHEREAS, the City finds that allowing the transfer of this obligation to western Chula Vista would be significantly detrimental to achieving balanced residential communities by limiting housing opportunities available for Iow-income households within eastern Chula Vista and further aggravating the concentration of Iow-income housing in western Chula Vista. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista accepts the report of alternatives to meet The Otay Ranch Company's SPA One affordable housing obligation. BE IT FURTHER RESOLVED that the City Council directs the Developer to continue to pursue the development of a 91 unit senior housing/commercial mixed use project on the Cl site to satisfy a portion of the Developer's SPA One affordable housing obligation, meet the remaining 155-unit obligation through Alternatives 1 or 2, and not to pursue mitigation opportunities within western Chula Vista. Presented by Approved as to form by Chris Salomone ~"o. hn M.'~heny // % f \ '- J:\COMMDEV~RESOS\Reso Otay Ranch Alternatives.doc EXHIBIT McM R43 R30A & R44 ~ R21 42O MF '"'"" 168 MF Including 80 AF R39 R20 160 MF R30B 1 ., R19 ' R7B ~ 204 MF ,,.~.__ 165 MF R47 ., 174 AH R15 ~.uc 464 MF Village 7 / Village 8 NORTH EXHIBIT 2 .= _-- ~<~= ~=~=~<~< .... ~<~g< ~ o ~ o = m m B 3 ~ E ~ o ~g ~'~ >~ ~ 0~ O~ ~ D o-. ~l - · _. ~ ~ ~ c~ o EXHIBIT 3 HBP, ITAGB VILLAGE W~ST SIDE PROPOSAL We arc proposing to build an approxlm ately 50-unit limited equity co-op on the Westside of Chula Vista as part of Otay Ranch's affordable housing obligation. The Co-op will be similar to tile successful Trolley Terrace Town homes cu~ently in plaoe. This alternative gives residents the oppommity to own a percentage of the project after the tax credit obligation has been met. Until that time thc project functions in a similar manner to a fttll co - op. Residents receive trd~,i,~ing in co.op management, leada~dp skills, community involvement and other areas relative to budgetirtg and financial management. The p~rtnershlp hopes to fund this with a 9% tax credit, Affordable Housing Program funds through the Federal Home Loan Bank and other affordable homing funds resources. The 9% credits and AI-IP will be possible if we build with{~ a Rextcvelopmcnt Zone. We are currently looking at vmious sites along the Broadway cmridor that include empty lots and rundown motels. Obviously the development of this project will improve the West. side aesthetically. More importantly the resident oversight and leadership training will assist in building the leadership capacity of the resid~ts of the ooq~p. We have also started to meet with the Dream School principal to discuss a partnership between Heritage Village West and the school. This partnership is centered around building thc commullity leadership capacity of Westside res/dents. Children in the co-op will be able to attend this new 600-student school, and Heritage Village West will involve the resident~ in the commtmity s~rvJ, ce learning opportunities at thc school and at the co-op itself. Various educational and Raining workshops will be sponsored by the co-op and some v'ill be in partnership with the School. In conclusion, this will not only be an affordable housing co-op but it will also be a center for commmlity ser~ce learning and leadership development opport,mities, and other Westside residents will also have access to these opportunities. EXHIBIT 0 Luce Forward et. al. 5/15/01 4:09: PAGE 2/3 RightFAX Ltx [ FOR XARI) VIA FACSIMILE May 15, 2001 City of Chula Vista City Council c/o Chula Vista City Clerk 276 Fourth Avenue Clmla Vista, CA 91910 Re: Proposed Olay Valley Regional Park Concept Plan; TCM 91-08 Honorable Mayor Horton and Councilmembers: Yhis firm represents Olay Land Company, LI.C. the owner of properly within Olay Ranch subject to the draft Olay Valley Regional Park Concept Plan ("Concept Plan"), including thc Bird Ranch/Gun Club site identified as Recreation Areal/lO. Olay Land Company generally supports the draft Concept Plan and the goal of protecting, environmentally sensitive areas while respecting property rights and recognizing thc plans and policies embodied in the Otay Ranch General Development Plan CGDP"). Our specific comments are as follows: 1. The Concept Plan should clarify that it will be necessary to build roads and install other public facilities within the Focused Planning Area ("FPA") to allow the planned development of Otay Ranch and to access pnvme property within the FPA. ? The Concept Plan does not refer lo the ongoing watershed sludies within the FPA being c~ducted by the City and County of San Diego with support from the Army Corps of Engineers. To the extent that the watershed study will affect the Concept Plan or development under the GDP. these issues should be addressed. 3. At Page 44, thc Concept Plan indicates that the Bird Ranck/Gun Club s:te has been disturbed by ongoing agricultural and other development activities. The statement appearing as the last sentence of Page 46 reads: Lute Forward et. al. 5/15/01 4:03: PAGE 3/3 RightFA× Honorable Mayor Horton and Councilmembers May 15, 2001 Page 2 "However, the habitat and wildli f~ corridor value of the site have not been determined at this time and further study is needed before the site can be designated for recreational or other uses." The Gun Club/Bird Ranch site is heavily disturbed and does not support sensitive biological resources. Indeed, the entire ownership of Otay I,and Company within the FPA has been well studied with regard to biological resources (for example, the GDP, Otay Ranch EIR, County MSCP and City MSCP). The Concept Plan sbo.ld reflect that the Gun Club/Bird Ranch is suitable for development which will not adversely impact habitat and wildlife corridor values. (4) Thc Gun Club/Bird Ranch site is identified as a property targeted for acquisition for active recreational uses within the Concept Plan. The Otay Land Company and representatives of the City/County have had discussions regarding the possible sale of the site for public uses consistent with the Concept Plan. No agreement has yet been reached, in this regard, thc Acquisition Policies begi~ming on page 24 of Concept Plan provide scant detail concerning funding sources for park land acquisttion orthe timing of such acquisitions. Otay Land Company will continue its discussions with City/County representatives, however, pcndmg the approval of a purchase agreemcnt fer thc site Olay Land Company intends to process appropriate applications for the private development of the property. Thank you for your consideration of these comments. Please feel free to contact me if you have any questions. Ve~ trul~yours, ~ ~UCE, FORWARD, HAMILTON & SCRIPPS [ [~ JAC~ir Frank ]. Hen'era-A, Churn Vista ?Intoning Department (via fax) Mr. R. Randy Goodson (via fax) Mr. Simon Malk (via fax) 1639005 I INFORMATION MEMORANDUM May 8, 2001 TO: Honorable Mayor and City Council VIA: David D. Rowlands, f~ty Manager FROM: Michael T. Meacham, Special Operations Manager ~ SUBJECT: Council Meeting Broadcasts Over Cable Television BACKGROUND: On September 14, 1999 the Council approved an extension of the franchise agreement with modifications between the City and Cox Communications. The agreement became effective on October 15, 1999. Among the modifications in the agreement is a requirement that the City accept the "re-zoning" of the City Council meeting broadcasts, which would limit the broadcast to Cox customers within Chula Vista. Currently Chula Vista Council broadcasts appear on the public access channel (24) twenty-four and pre-empt public access broadcasts in the same time period in other parts of the county. Cox has stated that all other cities within the county except the City of San Diego have been moved to the Government Access Channel (Channel, 17), and are zoned to broadcast only within their respective jurisdictions. DISCUSSION: Any City Council meetings and activities broadcast on behalf of the City by Cox before May 30, 2001 will continue to be broadcast on Channel 24 and may be seen in cities outside of Chula Vista. Any City Council meetings or activities broadcast after May 30, 2001 will appear on Channel 17 and will no longer appear in cities outside of Chula Vista. However, to insure that all Chula Vista subscribers receive the Chula Vista governmental channel, a limited number of subscribers in the County and City of San Diego neighborhoods adjacent to the City of Chula Vista may receive the broadcast. To assist the City and potential viewers with the transition Cox Communications has committed to: 1) placing a message on the next round of Cox Communications monthly invoices that notifies viewers of the change from channel 17 to channel 24, 2) temporarily placing a message at the beginning of the time slot currently occupied by the City Council broadcasts that directs viewers to Channel 17 to view the Chula Vista broadcast, and 3) place a character notice at the beginning and end of current Chula Vista broadcasts that notify viewers of the pending change. Staffwill add a message to the public service announcements and item titles that appear at the bottom of the screen during City Council broadcasts that will direct the public to Channel 17 after June 1, 2001. Staffwill also add the information to the summer issue of the Spotlight that will be sent to households in late June and will promote additional public awareness through media releases and other special event opportunities. Please feel free to contact the Special Operations Manager at 409-5870 if you have any questions about the proposed broadcast change. 05/08/0i TUE 08;81 F&~ 63.9 891 7088 fliT'LA YISTA PUBLIC ~ORKS -- ~00Z . NEWS RRLEASE Contact: Trudy Thoma~ - C~mm unicatiom Dk~:or May 7, ~01 Flags to be Flown Half-staff at all County Facilities ... in honor of those who have made the ultimate sacrifice... "President Bush and Governor Davis have declared one week in Mf,y to be set aside as Police Memorial Week in honor of the men and women in law enforcement who have d~d kn the line of duty. A s!~,'~] ceremony sponsored bT the Sa.u Diego Coun~ Law Enforcement Memorial Fouadsrion, is to be held this' qednesday, Ma)' 9" at 4:30 p.m. in Balbo~ Park &t the Organ Pavilion. In honor of c ur fallen hemes, I have requested t. hat fla§$ be flown at hslf-staff at Courtly f,,~ilifies this Wednesday, May 9f stated Horn. Horn continueS, 'Our law enforcement officers perform daily act,, of heroism ant1 sometimes are t,~llu-d upon to rnske the ultimate sacrifice, l%[y fellow Board members and I salute them along with their families and friench who have been left bekind - tl:my are all heroes." pACIFIC HIGh'WAY, RDOt~1355, SAN DIEGO CAL~FOKN!A 91~.01-: 4?0 CHUIAVISTA May 8, 2001 TO: The Honorable Mayor_and City Council FROM: David D. Rowlands,~., City Manager SUBJECT: Budget and SR-125 Meeting Dates Because of conflicts in Councilmembers' schedules, the budget hearings will be held on Monday, June 11th at 4:00pm and Wednesday, June 13th at 4:00 pm. We plan to have the budget adopted on June 19th. The workshop on SR-125 is now scheduled for June 28th at 4:00pm. cc: Department Heads