Loading...
HomeMy WebLinkAbout2008/06/03 Agenda Packet I declare under penalty of perjury that I am employed by the City of Chula Vista In the Office of the City Clerk and that I posted this document on the bulletin board accordi~~ IJ:. Brown Act reqUiremen~ ::s ~ d2130lm Signed~~~~; CllY OF CHULA VISTA rY Cheryl Cox, Mayor/Chair Rudy Ramirez, Council/Agency Member David R. Garcia, City Manager/Executive Director John McCann, Council/Agency Member Ann Moore, City Attorney/Agency Counsel Jerry R. Rindone, Council/Agency Member Donna Norris, Interim City Clerk Steve Castaneda, Council/Agency Member REGULAR MEETINGS OF THE CITY COUNCIL AND REDEVELOPMENT AGENCY AND SPECIAL MEETING OF THE PUBLIC FINANCING AUTHORITY June 3, 2008 4:00 P.M. Council Chambers City Hall 276 Fourth Avenue CALL TO ORDER ROLL CALL: Councilmembers/Agency Members/Authority Members: Castaneda, McCann, Ramirez, Rindone, and Mayor/Chair Cox PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE SPECIAL ORDERS OF THE DAY - City Council . INTRODUCTION BY ENGINEERING AND GENERAL SERVICES DIRECTOR JACK GRIFFIN, OF EMPLOYEE OF THE MONTH, LETICIA "LETTY" CONWAY, LEAD CUSTODIAN, GENERAL SERVICES . PRESENTATION BY MAYOR COX TO RETIRING CITY ATTORNEY ANN MOORE . PRESENTATION BY MAYOR COX TO RETIRING PLANNING AND BUILDING DIRECTOR JIM SANDOVAL . PRESENTATION BY MAYOR COX TO RETIRING PUBLIC WORKS DIRECTOR DAVE BYERS . PRESENTATION TO THE MAYOR AND CITY COUNCIL OF A CHECK IN THE AMOUNT OF $20,000 BY STEVE MIESEN OF THE CHULA VISTA ROTARY CLUB FOR THE MEMORIAL BOWL RENOVATION . PRESENTATION OF GAYLE MCCANDLISS ART AWARDS BY TODD VOORHEES, CHAIR OF THE CULTURAL ARTS COMMISSION TO OFELIA ALVARADO (BRAVO AWARD); JOSEPH SANCHEZ, NATHAN SUSLOVIC, GLORIA CASILLAS, ARTHUR ARMENTA IV, RICHARD ARMEZOLA, MONICA VILLEGAS AND NICOLE ROSE DUMAS (RISING STAR AWARDS) . PRESENTATION BY DAN MCALLISTER, SAN DIEGO COUNTY TREASURER/TAX COLLECTOR, REGARDING PROPERTY TAX UPDATES Page I - Council Agenda httn ://www.chulavistaca.gov June 3, 2008 CONSENT CALENDAR - City Council (Items I through 6) The Council will enact the Consent Calendar staff recommendations by one motion, without discussion, unless a Councilmember, a member of the public, or staff requests that an item be removed for discussion. If you wish to speak on one of these items, please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be discussed immediately following the Consent Calendar. 1. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DIRECTING REVIEW OF THE CITY OF CHULA VISTA CONFLICT OF INTEREST CODE Adoption of the resolution directs the City Attorney and City Clerk to review the City's Conflict of Interest Code to determine whether or not amendments are needed and to submit a notice to the Council prior to October I, 2008, indicating either that amendments are required or that no amendments are necessary (City Attorney/Interim City Clerk) Staff recommendation: Council adopt the resolution. 2. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND A WARDING A CONTRACT FOR THE "MONTEV ALLE PARK FIRE REPAIR PROJECT (CIP NO. MTVPR08)" TO RMV CONSTRUCTION, INC. IN THE AMOUNT OF $68,961.78 AND APPROPRIATING FUNDS WHICH WILL BE REIMBURSED THROUGH THE INSURANCE RECOVERY PROCESS (4/5THS VOTE REQUIRED) In July 2007 vandals set fire to and completely destroyed two City vehicles, two pieces of park maintenance equipment and did an estimated $100,000 worth of damage to the Montevalle Park facility storage building, its contents, security fencing and concrete slab. An informal bid attempted to bring qualified companies; however, only one qualified bid was received. In order to branch out and attract more companies, the formal bidding process was utilized. Adoption of the resolution awards the bid to RMV Construction, Inc. (Engineering and General Services Director) Staff recommendation: Council adopt the resolution. 3. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ESTABLISHING THE APPROPRIATIONS LIMIT FOR THE CITY OF CHULA VISTA FOR FISCAL YEAR 2008/2009 Article XIIIB of the California Constitution, approved by the voters in 1979 and commonly referred to as the Gann Initiative, requires each local govemment to establish an appropriations limit by resolution each year. The purpose of the limit is to restrict spending of certain types of revenues to a level predicated on a base year amount increased annually by an inflation factor. Adoption of the resolution establishes the limit at $607,303,566 for Fiscal Year 2008/2009. (Finance Director) Staff recommendation: Council adopt the resolution. Page 2 - Council Agenda htto:! !www.chulavistaca.gov June 3, 2008 4. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE FORMAL CONSULTANT SELECTION PROCESS AND APPROVING THE FIRST AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND TRISTAR RISK MANAGEMENT FOR THIRD- PARTY ADMINISTRATION OF THE CITY'S WORKERS' COMPENSATION CLAIMS The City has exhausted its five one-year contract extensions included in the existing contract for third-party administration of its workers' compensation claims. Due to the cost, financial and operational, of changing vendors at this time it is recommended that it is in the best interest of the City that the competitive bid process for this contract be deferred for one year and that the existing contract be extended to cover that period. (Human Resources Director) Staff recommendation: Council adopt the resolution. 5. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE CREATION OF A PROFESSIONAL UNIT On June 5, 2007 the Council approved the results of the Middle Management classification study, which was the last phase of the on-going project that reviewed all classified positions throughout the City. Now that the study is completed, one of the findings was the need to separate the Middle Managers into two distinct groups, Middle Managers and Professionals based on the level of overall management and administrative responsibilities of each position. (Human Resources Director) Staff recommendation: Council adopt the resolution. 6. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING $83,219 FROM THE GOVERNOR'S OFFICE OF EMERGENCY SERVICES AND APPROPRIATING FUNDS THEREFOR, WAIVING THE CONSULTANT SELECTION PROCESS AND APPROVING THE CONTRACTUAL AGREEMENT WITH SOUTH BAY COMMUNITY SERVICES TO PROVIDE SERVICES FOR DOMESTIC VIOLENCE CASES (4/5THS VOTE REQUIRED) The Police Department and South Bay Community Services have been working in partnership for the past eleven years providing domestic violence services to the community. Adoption of this resolution will accept a grant from the Governor's Office of Emergency Services for Domestic Violence Response Team services and approve a contractual agreement with South Bay Community Services to provide services for domestic violence cases. (Police Chief) Staff recommendation: Council adopt the resolution. ITEMS REMOVED FROM THE CONSENT CALENDAR Page 3 - Council Agenda htto:if www.chulayistaca.gov June 3, 2008 PUBLIC COMMENTS - City Council, Redevelopment Agency and Public Financing Authority Persons speaking during Public Comments may address the Council/Agency/Authority on any subject matter within the Council/Agency/Authority's jurisdiction that is not listed as an item on the agenda. State law generally prohibits the Council/Agency/Authority from discussing or taking action on any issue not included on the agenda, but, if appropriate, the Council/Agency/Authority may schedule the topic for future discussion or refer the matter to staff. Comments are limited to three minutes. ACTION ITEMS - City Council, Redevelopment Agency and Public Financing Authority The ltem(s) listed in this section of the agenda will be considered individually by the Council, Agency and Authority, and are expected to elicit discussion and deliberation. If you wish to speak on any item, please fill out a "Requestto Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. 7. CONSIDERATION OF RESOLUTION APPROVING THE REFUNDING OF THE 2000 TAX ALLOCATION BONDS As part of the Fiscal Year 2007/2008 budget balancing process, the Finance Department has been exploring various debt-refunding options, which would generate cash flow savings to the General Fund. With the assistance of Harrell & Co. and E.J. De La Rosa, the following debt refunding option was identified and presented to the City Council on January 22, 2008. (Finance Director) Staff recommendation: Redevelopment Agency adopt the following resolutions: A. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA DECLARING THE INTENT TO REFUND THE 2000 TAX ALLOCATION BONDS; AUTHORIZING AND DIRECTING THE ISSUANCE AND SALE OF NOT TO EXCEED $24 MILLION PRINCIPAL AMOUNT 2008 TAX ALLOCATION REFUNDING BONDS FOR THE MERGED REDEVELOPMENT PROJECT; APPROVING DOCUMENTS; AUTHORIZING OFFICIAL ACTIONS AND PROVIDING FOR OTHER MATTERS PROPERLY RELATING THERETO (4/5THS VOTE REQUIRED) B. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING A LOAN REPAYMENT FROM THE REDEVELOPMENT AGENCY TO THE GENERAL FUND (4/5THS VOTE REQUIRED) Page 4 - Council Agenda http://www . ch ulavistaca. gOY June 3, 2008 City Council adopt the following resolutions: C. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE SALE OF NOT TO EXCEED $24 MILLION PRINCIPAL AMOUNT 2008 TAX ALLOCATION REFUNDING BONDS FOR THE MERGED REDEVELOPMENT PROJECT D. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA REGARDING ITS INTENTION TO REIMBURSE EXPENDITURES FROM THE PROCEEDS OF TAX-EXEMPT OBLIGATIONS Public Financing Authority adopt the following resolution: E. RESOLUTION OF THE BOARD OF DIRECTORS OF THE CHULA VISTA PUBLIC FINANCING AUTHORITY AUTHORIZING PURCHASE AND SALE OF TAX ALLOCATION REFUNDING BONDS FOR THE CHULA VISTA MERGED REDEVELOPMENT PROJECT AND APPROVING CERTAIN RELATED DOCUMENTS AND AUTHORIZING CERTAIN OTHER ACTIONS (4/5THS VOTE REQUIRED) OTHER BUSINESS - City Council, Redevelopment Agency and Public Financing Authority 8. CITY MANAGER/EXECUTIVE DIRECTOR'S REPORTS 9. MAYOR/CHAIR'S REPORTS 10. COUNCIL/AGENCY/AUTHORITY MEMBERS' COMMENTS ADJOURNMENT The City Council to a Joint Workshop Meeting with the GMOC and Planning Commission, June 5, 2008 at 6:00 p.m. in the Chula Vista Police Headquarters, Community Meeting Room, 315 Fourth Avenue, and thence to the Regular Meeting of June 10, 2008 at 6:00 p.m. in the Council Chambers; the Redevelopment Agency to a Special Meeting on June 10, 2008 at 6:00 p.m. in the Council Chambers, and thence to the Regular Meeting of June 17, 2008 at 6:00 p.m. in the Council Chambers, and the Public Financing Authority until further notice. In compliance with the AMERICANS WITH DISABILITIES ACT The City of Chula Vista requests individuals who require special accommodations to access, attend, and/or participate in a City meeting, activity, or service, contact the City Clerk's Office at (619) 691-50415041 or Telecommunications Devices for the Deaf (TDD) at (619) 585-5655 at least forty-eight hours in advance for meetings and jive days for scheduled services and activities. California Relay Service is also available for the hearing impaired. Page 5 - Council Agenda htto://www.chulavistaca.!lOV June 3, 2008 CITY COUNCIL AGENDA STATEMENT JUNE 3, 2008 Item~ ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DIRECTING REVIEW OF THE CITY OF CHULA VISTA CONFLICT OF INTEREST CODE SUBMITTED BY: DONNA NORRIS, INTERlM CITY CLERK J2;-rI ANN MOORE, CITY ATTORNEY -giI,\ 4/STHS VOTE: YES D NO ~ SUMMARY Adoption of the resolution directs the City Attorney and City Clerk to review the City's Conflict of Interest Code to determine whether or not amendments are needed and to submit a notice to the Council prior to October I, 2008, indicating either that amendments are required or that no amendments are necessary. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity, review of the City of Chula Vista Conflict of Interest Code, is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because it does not involve a physical changes to the environment; therefore, pursuant to Section 15060( c )(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. RECOMMENDATION Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not Applicable. 1-1 JUNE 3, 2008, Item~ Page 2 of2 DISCUSSION The Political Reform Act requires every local agency to review its Conflict of Interest Code biennially to determine if amendments are needed. Once the determination has been made, a notice must be submitted to the Code-reviewing body (the City Council) no later than October I of even-numbered years. The City Council, prior to July I st in even-numbered years, must direct a review of the City's Code for possible amendments. The proposed resolution directs the City Attorney and the City Clerk to review the Code on behalf of all staff and designated City boards and commissions, and requires that a notice be submitted to the Council prior to October 1st indicating whether or not amendments are necessary. If amendments are necessary, the amended Code must be forwarded to the Council for approval within 90 days of submission of the notice. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations section I 8704.2(a)(l) is not applicable to this decision. FISCAL IMPACT The proposed resolution will have no impact on the general fund. ATTACHMENTS Resolution directing review of the City's Conflict ofInterest Code Prepared by: Donna Norris, Interim City Clerk 1-2 RESOLUTION NO. 2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DIRECTING REVIEW OF THE CITY OF CHULA VISTA CONFLICT OF INTEREST CODE WHEREAS, the Political Reform Act requires every local agency to review its Conflict of Interest Code biennially to determine its accuracy or, alternatively, that the Code must be amended; and WHEREAS, the Political Reform Act requires every local agency to direct a review of the Code prior to July I of each even-numbered year; and WHEREAS, this review must be completed and a notice of determination must be submitted to the City Council as the Code-reviewing body prior to October I of each even-numbered year. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City ofChula Vista that the City Attorney and City Clerk are hereby directed to review the Conflict ofInterest Code on behalf of City staff, all departments of the City, and designated City boards and commissions; and to provide specific notice to the City Council prior to October I, 2008, either that amendments are required or that no amendments are necessary. Presented by Approved as to form by Donna Norris Interim City Clerk J :\Attomey\RESO\CLERK\Coo nict of Interest Code _ 06-03-08_doc 1-3 CITY COUNCIL AGENDA STATEMENT 6/3/08, Item~ SUBMITTED BY: REVIEWED BY: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING A CONTRACT FOR THE "MONTEVALLE PARK FIRE REPAIR PROJECT (CIP NO. MTVPR08)" TO RMV CONSTRUCTION, INC. IN THE AMOUNT OF $68,961.78 AND APPROPRIATING FUNDS WHICH WILL BE REIMBURSED THROUGH THE INSURANCE RECOVERY PROCESS DIRECTOR OF ENGINEERING AND GENERAL SERVICES (j % CITY MANAGER "":;,-r';; r O(l G; ASSISTANT CITY MANAGER S 7" 4/5THS VOTE: YES [g] NO D ITEM TITLE: SUMMARY In July of 2007 vandals set fire to and completely destroyed two City vehicles, two pieces of park maintenance equipment and did an estimated $100,000 worth of damage to the Montevalle Park facility storage building, its contents, security fencing and concrete slab. An informal bid attempted to bring qualified companies, however, only one qualified bid was received. In order to branch out and attract more companies, the formal bidding process was utilized in an attempt to receive better competitive bids and make the contracting community aware of the "Montevalle Park Fire Repair, 840 Duncan Ranch Road, in the City of Chula Vista, CA (CIP No. MTVPR08)" project. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the proposed project was adequately covered in the Salt Creek Ranch Environmental Impact Report (EIR) 89-03 and Supplemental EIR (SEIR) 91-03. Thus, no further environmental review is necessary. RECOMMENDATION Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not applicable. 2-1 ~ 6/3/08, Item~ Page 2 of 3 DISCUSSION In July of 2007 vandals set fire to and completely destroyed two City vehicles, two pieces of park maintenance equipment and did an estimated $100,000 worth of damage to the Park Facility Storage building, it's contents, security fencing and concrete slab. The cost to replace and repair these City assets is covered by insurance. The insurance provider, McLarens Young International, requires the insured (City) to secure replacement and repairs, and provides payment for these expenses. Over the past several months, City staff has replaced the lost equipment and received payments into an insurance settlement fund (MTVPR 08). Included in this fund is the estimated cost for repairs to the park storage facility. In January 2008, eight qualified fire restoration companies were contacted and requested to attend a mandatory job site visit to review the damages and receive the informal bid packages. Four companies of the contacted eight attended the site visit, with only two qualified companies returning completed bid documents by the specified date. The low bidder's documents when opened were found to be incomplete. Able Restoration, the low bidder, was thereby notified of the deficiency and of the bid rejection. The second low bidder, Luth & Turly Inc's bid was complete, within 1 % of the insurance company's estimate and therefore accepted. However, City contracting practices require that a minimum of three companies is necessary for bid comparison and fair practices with all informal bids. In order to branch out and attract more companies from the construction industry, a formal bid process was necessary. Staff re- organized the contract documents and all necessary preparations to have the "Montevalle Park Fire Repair, 840 Duncan Ranch Road, in the City of Chula Vista (MTVPR08)" project advertised. To ensure qualified Contractors understood the requirements of the contract, a mandatory job walk was conducted one week before the bids were to be received. Questions and detailed discussions on the project's task was the main objective for the site visit. City staff was available to answer any questions during the bid process. On May 6, 2008 the Director of Engineering and General Services' received one bid for this project. Different guidelines have been established with a formal bidding process and the acceptance of one bid is allowable. RMV Construction submitted a bid of $68, 961.78. The bid is below the Engineer's estimate of $75,000 by $6,038.22 or approximately 8%. The Engineer's estimate was prepared by City staff and was based on average unit prices for similar types of work completed recently. City staff will incorporate the unit price bid results received into a database for future project cost estimates. Because RMV Construction, Inc. has not performed on any jobs for the City, staff carefully checked the references that the contractor submitted. The reference check asked RMV Construction, Inc. to provide information for any work similar to this repair project. A minimum of five references was required and the work performed for the five companies had to be similar in tasks performed and dollar amount. Additionally, all work used for reference purposes had to be performed within the last five years. The contractor met all the reference requirements. All references provided were verified and their work has been satisfactory. RMV Construction, Inc. carries clear and current licenses for both a General A (General Engineering License) and a General B (General Building License) Contractor's License. All the requirements have been met by RMV Construction, Inc. and their bid package had no errors. Thus, RMV Construction, Inc. 2-2 6/3/08, Item :) Page 3 of 3 of San Diego was declared responsive and clear to perform the necessary work. Staff is recommending awarding the contract to RMV Construction, Inc. in the amount of $68,961.78 DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. FISCAL IMPACT There is an impact to the General Fund of $5,000 for the per insurance claim deductible, however, the remaining portion of the funding will be recovered through the claim process at project completion in Fiscal Year 2008-09. Building repair amounts are paid by insurer at Actual Cash Value. Upon completion of repair, the City will make claim for: . Balance of Replacement Cost (Actual cost of repair incurred less amounts paid) . Administrative Overhead incurred in construction oversight FUNDS REOUlRED FOR PROJECT A. Contract Amount $68,961.78 B. Contingencies (10% of contact amount) $6,896.00 C. Staff Time Cost (approx % age of total): Construction Inspection (9%) $8,275.00 Design/Construction Management (11%) $10,345.00 TOT AL FUNDS REQUIRED FOR CONSTRUCTION $94,477.78 FUNDS A V AILABLE FOR CONSTRUCTION A. Insurance funds available to date. $69,3743.88 B. General Fund appropriation (Insurance Recovery Process) $25,102.90 TOT AL FUNDS AVAILABLE FOR CONSTRUCTION $94,477.78 Upon completion of the project, the improvements will require only routine City maintenance. ATTACHMENTS I. Contractor's Disclosure Statement Prepared by: Gordon Day. Building Project Manager, Engineering & General Services M:\General Services\GS AdministrationlCouncil Agenda\MTVPR08 Montevalle Park Fire Damage1MTVPR08 Montevalle Fire Repair AGENDA STATEMENT Final3.doc 2-3 ATTACHMENT _ I City of Chola Vista Disclosure Statement Pursuant to Council Policy 101-01, prior to any action upon matters that will require discretionary action by the Council, Planning Commission and all other official bodies of the City, a statement of disclosure of certain ownership or fmancial interests, payments, or campaign contributions for a City of Cb.ula Vista election must be filed. The following information must be disclosed: 1. List lb.e names of all persons having a fmancial interest in the property that is the subject of the application ortbe contract, e.g., owner, applicant, contractor. subcontractor, material supplier. N/A 2. If any person' identified pursuant to (1) above is a corporation or partnership, list the names of all individuals with a $2000 investment in the business (corporation/partnership) entity. AliA ' 3. If any person' identified pursuant to (J) above is a non-profit organization or trust, list the names of any person serving as director of the non-profit organization or as trustee or beneficiary or trustor of the trust. AI/A , . 4. Please identify every person, including any agents, employees, consultants, or independent contractors you have assigned to represent you before the City in this matter, N/A 5. Has any person' associated with this contract had any financial dealings with an official" of the City ofChuJa Vista as it relates to this contract within the past 12 months? Yes_ NoL 13 2-4 If Yes, briefly describe the nature of the financial interest the ollicial" may have in this contract. 6. Have you made a contribution of more than $250 within the past twelve (12) months to a current member of the Chula Vista City Council? No L Yes _ If yes, which Council member? 7. Have you provided more than $340 (or an item of equivalenl value) 10 an official*' of the City of Chula Vista in the past twelve (12) months? (This includes being a source of income, money to retire a legal debt, gift,loan, etc.) YesL No_ If Yes, which official** and what was the cature of item provided? Date: OJ/OS /')I;08 nrJLLJ tU I Signature of Contractor IApp lie ant (( m;( Jta.e I_Iks:/ -:rr;: Prinl or type name of Contractorl Applicant . Person is defined as: any individual, firm, co-partnership, joinl venture, association, social cluh, fraternal organization, corporation, estate, trust, receiver, syndicate, any other county, city, municipality, district, or other political subdivision, -or any other group or combination acting as a unit. .. Official includes, bUI is nol limited 10: Mayor, Council member, Planning Commissioner, Member of a.board, commission. or committee of the City, employee. or staff members. 14 \. 2-5 RESOLUTION NO. 2008 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING A CONTRACT FOR THE "MONTEV ALLE PARK FIRE REPAIR PROJECT (CIP NO. MTVPR08)" TO RMV CONSTRUCTION, INC. IN THE AMOUNT OF $68,961.78 AND APPROPRIATING FUNDS WHICH WILL BE REIMBURSED THROUGH THE INSURANCE RECOVERY PROCESS WHEREAS, in July 2007, at Montevalle Community Park, vandals set fire to and completely destroyed two City vehicles and two pieces of park maintenance equipment. These losses resulted in over $100,000 in property damage to the park storage facility building, its contents, security fencing and concrete slab; and WHEREAS, the cost to replace and repair these City assets is covered by insurance; and WHEREAS, the insurance provider, McLarens Young International, requires the insured (City) to secure replacement and repairs, and provides payment for these expenses; and WHEREAS, in January 2008, eight qualified fire restoration companies were contacted and requested to attend a mandatory job site visit to review the damages and receive informal bid packages; and WHEREAS, four companies attended the site visit, with only two qualified companies submitting bid documents by the specified date; and WHEREAS, the apparent low bidder, Able Restoration, was declared non-responsive when the submitted documents were found to be incomplete; and WHEREAS, the lowest responsive bidder, Luth & Turly Inc.'s bid was complete, within I percent of the insurance company's estimate; and WHEREAS, contracting regulations requires that a mlillmum of three companies IS necessary for bid comparison and fair practices with all informal bids; and WHEREAS, in order to branch out and attract more companies from the construction industry, a formal bid process was necessary; and WHEREAS, staff prepared documents for the contract and advertised the "Montevalle Park Fire Repair, 840 Duncan Ranch Road, in the City of Chula Vista (CIP No. MTVPR08)" project on April 18, 2008; and WHEREAS, on May 6, 2008, the Director of Engineering and General Services received one (1) bid for the "Montevalle Park Fire Repair, 840 Duncan Ranch Road, in the City of Chula Vista (CIP No. MTVPR08)"; and H:\ENGINEER\RESQS\Resos2008\Q6-03-08\MTVPR08 MOlltevalle Fire Repair ResoREv.~c_ 6 Resolution No. 2008- Page 2 WHEREAS, because different guidelines have been established with a formal bidding process for any project, the acceptance of one bid is allowable; and WHEREAS, the lowest responsive bidder, RMV Construction, Inc's bid of $68,961.78 was complete, within the insurance company's estimate, and therefore accepted. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista accept bids and award a contract for the "Montevalle Park Fire Repair Project (CIP No. MTVPR08)" to RMV Construction, Inc. in the amount of$68,961.78. BE IT FURTHER RESOLVED that the City Council appropriate funds which will be reimbursed through the insurance recovery process. Presented by Approved as to form by Jack Griffin Director of Engineering and General Services ~~~~~ ~~ Ann Moore City Attorney H:\ENGINEERIRESOS\Resos2008\06-03-08\MTVPR08 Monlevalle Fire Repair ResoREV.dj;f L.-7 CITY COUNCIL AGENDA STATEMENT ~f:.. CITY OF h <~ CHULA VISTA :;> JUNE 3, 2008, Item~ ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ESTABLISHING THE APPROPRIATIONS LIMIT FOR THE CITY OF CHULA VISTA FOR FISCAL YEAR 2008/2009 SUBMITTED BY: REVIEWED BY: DIRECTOR OF FINANCE/TREAS CITY MANAGER 4/5THS VOTE: YES I i NO 0 SUMMARY Article XIIIB of the California Constitution approved by the voters in 1979 and commonly referred to as the Gann Initiative, requires each local government to establish an Appropriations Limit by resolution each year at a regularly scheduled meeting or noticed special meeting. The purpose of the limit is to restrict spending of certain types of revenues to a level predicated on a base year amount increased annually by an inflation factor. ENVIRONMENT AL REVIEW Not Applicable. RECOMMENDATION The City Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not Applicable. DISCUSSION Article XIIIB of the California Constitution, approved by the voters in 1979, imposed the concept of spending limits on local governments. This Constitutional provision and related implementing legislation specifies that annual increases in appropriations financed from "Proceeds of Taxes" are limited to a base year (1978/1979) amount increased annually by an inflation factor comprised of the change in population of the City combined with the greater of the change in new non-residential construction or the change in the California per capita personal income. By definition, "Proceeds of Taxes" includes such revenues as property taxes, sales and 3-1 JUNE 3, 2008, Item~ Page 2 of 3 use taxes, utility users taxes, transient occupancy taxes, and state subventions. Revenues from other sources like fees/charges and federal grants are considered "Non-Proceeds of Taxes" and are not subject to the annual spending limit. This calculation has always been perfunctory for the City of Chula Vista, since the proceeds of taxes for the City are far less than the statutory appropriation limit. The State Department of Finance and the San Diego County Assessor's Office are charged with providing the data necessary for local jurisdictions to establish their appropriation limit. According to these sources, for purposes of the Fiscal Year 2008/2009 calculation, the population increased 1.51 % and California per capita personal income increased by 4.29%. New non-residential construction increased 16.86% and was used in the formula to compute the limit since this increase was higher than the increase in California per capita personal income. The Fiscal Year 2008/2009 Appropriation Limit has been calculated as follows: Fiscal Year 2007/2008 Appropriation Limit $511,957,324 Increased by an inflation factor composed of the increases in population and new non-residential construction X 1.1862 Fiscal Year 2008/2009 Appropriations Limit $607.303.566 The "Proceeds of Taxes" as included in the fiscal year 2008-09 Proposed Budget that are subject to the appropriations limit are estimated to be $92,391,854 (see attachment). Therefore the City has what is referred to as an appropriation "gap" of$514,911,712 ($607,303,566 - $92,391,854). Simply stated. this means that the City could collect and spend up to $514,911,712 more in taxes during Fiscal Year 2008/2009 without exceeding the Constitutional limit. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations section 1 8704.2(a)(l) is not applicable to this decision. FISCAL IMP ACT This action will enable the City to appropriate and spend tax revenues estimated at $97,543,636 included in the proposed budget for Fiscal Year 2008/2009. A TT ACHMENTS Attachment A - Appropriations Gap Calculation Prepared by: Phillip Davis, Assistant Director of Finance, Finance Department 3-2 JUNE 3, 2008, Item~ Page 3 of 3 A TT ACHMENT A APPROPRIATION (GANN) LIMIT GAP CALCULATION FOR FISCAL YEAR 2008/2009 Proceeds of Taxes Property Taxes Sales and Use Taxes Transient Ocupancy Taxes Utility Taxes Other Local Taxes Real Property Transfer Tax Business License State Motor Vehicle Licenses State Homeowners Property Taxes Total Proceeds of Taxes Appropriation Limit FY 2008-09 Proposed Budget 30,232,200 29,677,977 2,752,514 7,122,095 841,402 1,267,000 20,215,866 282,800 92,391,854 607,303,566 GAP (Under Limit) (514,911,712) ~ b ciTaxes ~ to Legal Sperdng Urrit .,$700 c: 0 == $3:D :::;; $3:D $4OJ +- $3JJ $!Xl $100 ro FY()4.{lS ~ FY C5D5 FY= FY07-<:8 FYCBW 1_ A1:x:a;d;ciT""'" -+- Pq:rq:ri2liCJ1 Unit 1 3-3 RESOLUTION NO. 2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ESTABLISHING THE APPROPRlA TIONS LIMIT FOR THE CITY OF CHULA VISTA FOR FISCAL YEAR 2008/ 2009 WHEREAS, Article XIIIB of the California Constitution, approved by the voters in 1979, imposed the concept of spending limits on local governments; and WHEREAS, this Constitutional provision and related implementing legislation specifies that annual increases in appropriations financed from "Proceeds of Taxes" are limited to a base year (1978-1979) amount increased annually by an inflation factor comprised of the change in population of the City combined with the greater of the change in new non-residential construction or the change in the California per capita personal income; and WHEREAS, by definition, "Proceeds of Taxes" includes such revenues as property taxes, sales and use taxes, utility users taxes, transient occupancy taxes, and state subventions; and WHEREAS, revenues from other sources like fees/charges and federal grants are considered "Non-Proceeds of Taxes" and are not subject to the annual spending limit; and WHEREAS, this calculation has always been perfunctory for the City ofChula Vista, since the proceeds of taxes for the City are far less than the statutory appropriation limit; and WHEREAS, the State Department of Finance and the San Diego County Assessor's Office are charged with providing the data necessary for local jurisdictions to establish their appropriation limit; and WHEREAS, according to these sources, for purposes of the Fiscal Year 2008/2009 calculation, the population increased 1.51 percent and California per capita personal income increased by 4.29 percent; and WHEREAS, new non-residential construction increased 16.86 percent and was used in the formula to compute the limit since this increase was higher than the increase in California per capita personal income; and WHEREAS, the Fiscal Year 2008/2009 Appropriation Limit has been calculated to be $607,303,566; and WHEREAS, the "Proceeds of Taxes" as included in the Fiscal Year 2008/2009 Proposed Budget that are subject to the appropriations limit are estimated to be $92,391,854; and WHEREAS, the City has what is referred to as an appropriation "gap" of$514,911,712 ($607,303,566 - $92,391,854); and 3-4 Resolution No. 2008- Page 2 WHEREAS, this means that the City could collect and spend up to $514,911,712 more in taxes during Fiscal Year 2008/2009 without exceeding the Constitutional limit. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City ofChula Vista does hereby establish an appropriations limit of$607,303,566 for Fiscal Year 2008/2009. Presented by Approved as to form by Maria Kachadoorian Director of Finance J:\Attomey\RESOIFlNANCElAppropriation Limit for FY 2008-09_ 06-0J-08.doc 3 - 5 CITY COUNCIL AGENDA STATEMENT ~'Yf:. CITY OF - - (HUlA VISTA ( SUBMITTED BY: REVIEWED BY: JUNE 3, 2008, ItemL RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE FORMAL CONSULTANT SELECTION PROCESS AND APPROVING THE FIRST AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND TRISTAR RISK MANAGEMENT FOR THIRD-PARTY ADMINISTRATION OF THE CITY'S WORKERS' COMPENSATION CLAIMS DIRECTOR OF HUMAN RESOURCES tvfZ-- CITY MANAGER ASSIST ANT CITY MANAGER <::;:J ITEM TITLE: 4/STHS VOTE: YES D NO 0 SUMMARY The City has exhausted its five one-year contract extensions included in the existing contract for third-party administration of its workers' compensation claims, Due to the cost, financial and operational, of changing vendors at this time it is recommended that it is in the best interest of the City that the competitive bid process for this contract be deferred for one year and that the existing contract be extended to cover that period, ENVIRONMENTAL REVIEW Not Applicable, RECOMMENDATION That Council adopt the subject resolution. DISCUSSION TRISTAR Risk Management has administered the City's workers' compensation claims since 1995. In 2002, the City solicited proposals for third-party claims administration services. As a result of that solicitation the City entered into a one-year contract with TRISTAR Risk Management with a provision for five one-year extensions. The City has exhausted the extensions included in the existing agreement. 4-1 JUNE 3, 2008 ITEM ~ Page 2 of2 The City has been extremely satisfied with the services provided by TRlST AR and staff believes that it is highly unlikely we would [md a firm that could provide the same level of service at a price that could justify the additional expense of changing administrators (transferring data bases, system/process development) nor the disruption of service/care of our employees, especially during these times of fiscal uncertainty and limited resources. Staff will commence the request for proposal process in March 2009 for services going forward. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations section I 8704.2(a)(l) is not applicable to this decision. FISCAL IMPACT TRlST AR has agreed to continue the eXlstmg agreement under the same terms and conditions. The annual contract price for these services is $287,500. Funding for this contract is included in the proposed Fiscal Year 2008/2009 Budget. ATTACHMENTS I) Original Agreement with TRISTAR 2) Proposed Addendum F Prepared by: Teri A Enos, Risk Manager, Human Resources Department 4-2 , i, fi , CC[~ J ;L~~A,-~~__ ;:)) >~: }--.:t (c ~' '~ Contract Agreement Page 1 of 24 ,:,: ~ r ~ (~ ATTACHMENT 1 Parties and Recital Page(s) Agreement between City of Chula Vista and TRISTAR Risk Manaqement For Third-Party Administration of Workers' Compensation Claims This agreement ("Agreement"), dated July 23, 2002, 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 Service Company, 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 ("Service Company"), and is made with reference to the following facts: Recitals Whereas, City requested the Service Company to provide professional services; and Whereas, the Service Company is willing to perform such services; and Whereas, Service Company 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 Service Company to the City within the time frames herein provided all in accordance with the terms and conditions of this Agreement Obligatory Provisions Pages 4-3 IJ_ , - , ',;: , -/' " c.:> Contract Agreement Page 2 of 24 NOW, THEREFORE, BE IT RESOLVED that the City and Service Company do hereby mutually agree as follows: 1. Third Party Administrator's Duties A. General Duties Service Company 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", Service Company 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 Service Company, from time to time reduce the Defined Services to be performed by the Service Company under this Agreement. Upon doing so, City and Service Company 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 Service Company 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 Service Company, Service Company shall perform same on a time and materials basis at the rates set forth in the "Rate Schedule" in Exhibit A, Paragraph 11, unless a separate fixed fee is otherwise agreed upon. All compensation for Additional Services shall be paid monthly as billed. 4-4 Contract Agreement Page 3 of 24 E. Standard of Care Service Company, 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 Service Company 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 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 Service Company, 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, Paragraph 9, unless Errors and Omissions coverage is included in the General Liability policy. G. Proof of Insurance Coverage. (1) Certificates of Insurance. Service Company 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. 4-5 Contract Agreement Page 4 of 24 I n order to demonstrate the Additional I nsured Coverage, Primary Coverage and Cross-liability Coverage required under Service Company's Commercial General Liability Insurance Policy, Service Company shall deliver a policy endorsement to the City demonstrating same, which shall be reviewed and approved by the Risk Manager. H. Securitv for Performance. (1) Performance Bond. I n the event that Exhibit A, at Paragraph 19, indicates the need for Service Company to provide a Performance Bond (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Performance Bond"), then Service Company 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 to 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 Service Company to provide a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Letter of Credit"), then Service Company 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 Service Company 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 fm.Service Company 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 Service Company 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 Service Company agrees to obtain a business license from the City and to otherwise comply with Title 5 of the Chula Vista Municipal Code. 4-6 Con tract Agreemen t Page 5 of 24 2. Duties of the City A. Consultation and Cooperation City shall regularly consult the Service Company 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, fiies and records by Service Company 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 Service Company's performance of this agreement. B. Compensation Upon receipt of a properly prepared billing from Service Company 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 Service Company for all services rendered by Service Company 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 Service Company for out of pocket expenses as provided in Exhibit A, Paragraph 12. All billings submitted by Service Company shall contain sufficient infonmation 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 tenminate when the Parties have complied with all executory provisions hereof. 4-7 Contract Agreement Page ,; of 24 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 performance. 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 Service Company 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 Service Company'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 Service Company A. Service Company is Designated as a Fair Political Practices Commission (FPPC) Filer. If Service Company is designated on Exhibit A, Paragraph 15, as an "FPPC filer", Service Company is deemed to be a "Service Company" 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 I nterests 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 Service Company is designated as an FPPC Filer, Service Company shall not make, or participate in making or in any way attempt to use Service Company's position to influence a governmental decision in which Service Company knows or has reason to know Service Company has a financial interest other than the compensation promised by this Agreement. 4-8 Contract Agreement Page 7 of 24 C. Search to Determine Economic Interests. Regardless of whether Service Company is designated as an FPPC Filer, Service Company warrants and represents that Service Company has diligently conducted a search and inventory of Service Company's economic interests, as the term is used in the regulations promulgated by the Fair Political Practices Commission, and has determined that Service Company does not, to the best of Service Company's knowledge, have an economic interest which would conflict with Service Company's duties under this agreement. D. Promise Not to Acquire Conflicting Interests. Regardless of whether Service Company is designated as an FPPC Filer, Service Company further warrants and represents that Service Company 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 Service Company is designated as an FPPC Filer, Service Company further warrants and represents that Service Company will immediately advise the City Attorney of City if Service Company learns of an economic interest of Service Company'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. Service Company warrants and represents that neither Service Company, nor Service Company's immediate family members, nor Service Company's employees or agents ("Service Company 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, ParagrB.ph 15. Service Company further warrants and represents that no promise of future employment, remuneration, consideration, gratuity or other reward or gain has been made to Service Company or Service Company Associates in connection with Service Company's performance of this Agreement. Service Company promises to advise City of any such promise that may be made during the Term of this Agreement, or for 12 months thereafter. Service Company agrees that Service Company 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. 4-9 Contract Agreement Page 8 of 24 Service Company may not conduct or solicit any business for any party to this Agreement, or for any third party, which may be in conflict with Service Company's responsibilities under this Agreement, except with the written permission of City. 7. Hold Harmless Service Company 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 attomeys fees) arising out of or alleged by third parties to be the result of the negligent acts, errors or omissions or the willful misconduct of the Service Company, and Service Company's employees, subcontractors or other persons, agencies or firms for whom Service Company is legally responsible in connection with the execution of the work covered by this Agreement, except only for those claims, damages, liability, costs and expenses (including without limitations, attorneys fees) arising frorn the sole negligence or sole willful misconduct of the City, its officers, employees. Also covered is liability arising from, connected with, caused by or claimed to be caused by the active or passive negligent acts or omissions of the City, its agents, officers, or employees which may be in combination with the active or passive negligent acts or omissions of the Service Company, its employees, agents or officers, or any third party. With respect to losses arising from Service Company's professional errors or omissions, Service Company 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) except for those claims arising from the negligence or willful misconduct of City, its officers or employees. Service Company'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. Service Company's obligations under this Section shall not be limited by any prior or subsequent declaration by the Service Company. Service Company's-egligations under this Section shall survive the termination of this Agreement. . For those professionals who are required to be licensed by the state (e.g. architects and engineers), the following indemnification provisions should be utilized: 1. Indemnification and Hold Harmless Agreement. With respect to any liability, including but not limited to claims asserted or costs, losses, attorney fees, or payrnents for injury to any person or property caused or claimed to be caused by the acts or omissions of the Service Company, or Service Company's employees, agents, and officers, arising out of any services performed involving this project, except liability for Professional Services covered under 4-10 Contract Agreement Page 9 of 24 Section 7.2, the Service Company agrees to defend, indemnify, protect, and hold harmless the City, its agents, officers, or employees from and against all liability. Also covered is liability arising from, connected with, caused by, or claimed to be caused by the active or passive negligent acts or omissions of the City, its agents, officers, or employees which may be in combination with the active or passive negligent acts or omissions of the Service Company, its employees, agents or officers, or any third party. The Service Company's duty to indemnify, protect and hold harmless shall not include any claims or liabilities arising from the sole negligence or sole willful misconduct of the City, its agents, officers or employees. This section in no way alters, affects or modifies the Service Company's obligation and duties under Section Exhibit A to this Agreement. 2. Indemnification for Professional Services. As to the Service Company's professional obligation, work or services involving this Project, the Service Company agrees to indemnify, defend and hold harmless the City, its agents, officers and employees from and against any and all liability, claims, costs, and damages, including but not limited to, attomeys fees, losses or payments for injury to any person or property, caused directly or indirectly from the negligent acts, errors or omissions of the Service Company or Service Company's employees, agents or officers; provided, however, that the Service Company's duty to indemnify shall not include any claims or liability arising from the negligence or willful misconduct of the City, its agents, officers and employees. 8. Termination of Agreement for Cause If, through any cause, Service Company shall fail to fulfill in a timely and proper manner Service Company's obligations under this Agreement, or if Service Company 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 Service Company 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 Service Company shall, at the optiQn of the City, become the property of the City, and Service Company 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 to the City by the Service Company's breach. 9. Errors and Omissions In the event that the City Administrator determines that the Service Company's 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, Service Company shall reimburse City for any 4-11 Contract Agreement Page 10 of 24 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 Service Company 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, Service Company 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. Service Company 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 Service Company are personal to the City, and Service Company 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 is 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 the 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 Service Company in the United States or in-am other country without the express written consent of the 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. Confidential Information "Confidential Information" shall mean that information disclosed to the Service Company by the City in connection with, and during the term of this Agreement in connection with the services to be performed hereunder. All Confidential Information disclosed to the Service Company during the term or in anticipation of 4-12 Contract Agreement Page 11 or 24 this Agreement shall be deemed to be in connection with this Agreement. The term, Confidential Information, shall not mean any information that is previously known to the Service Company without obligation of confidence, or without breach of this Agreement; is publicly disclosed by either prior or subsequent to the Service Company's receipt of such information; or is rightfully received from a third party without obligation of confidence. The Service Company agrees to hold all Confidential Information in trust and confidence and not to use such Confidential I nformation other than for the benefit of the City during the term of this Agreement. Except as may be authorized in writing by the City, the Service Company agrees not to disclose any such Confidential Information, by publication or otherwise, to any person other than those who have a need to know for purposes of carrying out services in connection with this Agreement. The Service Company may make a reasonable number of copies of documents or other media containing Confidential Information for purposes of performing the services under this Agreement. Upon termination or expiration of this Agreement, the Service Company will prepare and make available to the City all written or descriptive matter of other documents, tapes or any other media, which contain any such Confidential Information. 14. Independent Contractor City is interested only in the results obtained and Service Company 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 Service Company's work products. Service Company and any of the Service Company'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 Service Company shall be solely responsible for the payment of same and shall hold the City harmless with regard thereto. 15. 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, Service Company shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 4-13 Contract Agreement Page 12 of 24 16. 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 attomey's fees and court costs incurred. The "prevailing party" shall be deemed to be the party who is awarded substantially the relief sought. 17. Statement of Costs In the event that Service Company prepares a report or document, or participates in the preparation of a report or document in performing the Defined Services, Service Company 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. 18. Miscellaneous A. Service Company not authorized to Represent City Unless specifically authorized in writing by City, Service Company shall have no authority to act as City's agent to bind City to any contractual agreements whatsoever. B. Service Company is Real Estate Broker and/or Salesman If the box on Exhibit A, Paragraph 16 is marked, the Service Company 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, Service Company represents that neither Service Company, nor their principals are licensed real estate brokers or salespersons. C. Notices All notices, demands or requests provided for or permitted to be given ptJI~uant 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 4-14 Contract Agreement Page 13 of 24 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 LawNenue 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. 4-15 Contract Agreement Page 14 of~4 Signature Page to Agreement between City of Chula Vista and TRISTAR Risk Management For Third Party Administrator Services IN WITNESS WHEREOF, City and Service Company have executed this Agreement thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: Dated: ,2002 City of Chula Vista By: l; . 4-;'7j~~f</;l1.L;M Shirley H on Mayor Attest: ~..uo,~\[;o~ Susan Bigelow, City CI rk Approved as to form: ~K~ JOhz:#. Kaheny, City ~ney Dated: July~, 2002 TRISTAR Risk Management Thomas Vale, President 4-16 Exhibit List to Agreement (X) Exhibit A. 4-17 Con trac t Agreemen t Page 15 of 24 Contract Agreement Page 16 of 24 Exhibit A to Agreement between City of Chula Vista and TRIST AR Risk Management 1. Effective Date of Agreement: August 1 , 2002 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: 3. Place of Business for City: City of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910 .4. Service Company: TRISTAR Risk Management 5. Business Form of Service Company: (X) Sole Proprietorship () Partnership () Corporation 6. Place of Business, Telephone and Fax Number of Service Company: Corporate Headquarters TRISTAR Risk Management 100 Oceangate Suite 700 Long Beach, CA 90802 Main (562-495-6600 Fax (562)432-8619 Servicing Location 4-18 Contract Agreement Page 1.7 of 24 TRISTAR Risk Management 8665 Gibbs Drive, Suite 200 San Diego, CA 92123 Main (858) 715-8800 Fax (858) 715-8801 7. General Duties: To perform for the City Third Party Administration services as described in Paragraph 8, Scope of Work and Schedule below. 8. Scope of Work and Schedule: A. Detailed Scope of Work: Administrative Services: (1) Forms. Provide all required statutory forms and brochures customized for the City of Chula Vista. (2) Process Claims. Review and process all reported industrial injury and occupational disease claims in accordance with State requirements. (3) Compensability Determinations. Determine compensability of injury or illness claims in accordance with all rules and regulations goveming the administration of self-insurance pursuant to Section 3700 of the California Labor Code and California administrative regulations. Denial of claims shall be made only after prior discussion with the City. (4) Medical Treatment. Determine eligibility for and authorize appropriate medical treatment for injured employees, including arranging appointments. Monitor all medical reports and statements of charges to ensure that treatment and charges are compatible with injuries reported. (5) Reviews: Periodically review program progress with City personnel, identifying problem areas and recommending a plan at- remedial action. This shall include projections of cash flow and actual projections of annual incurred costs, as requested. (6) Index Use. Utilize the Index Bureau on all new indemnity cases and re-index cases every 6 months or when deemed necessary and agreed upon by the Service Company and the City. (7) File Maintenance. Maintain claims files, case logs, check disbursement copies and all other records, files and data as may be required by California law, statute and rules and regulations of the City's self-insurance plan, on each reported claim, which shall be available to the City during normal business hours. (8) Approve Payments. Determine extent and degree of all disability and death benefits payable to injured employees in accordance with 4-19 Contract Agreement Page 18 of 24 acceptable and standard practices. Authorize payments in accordance with Findings and Awards of the Workers' Compensation Appeals Board CNCAB) or approved Compromise and Release Settlements, acting or recommending action to preclude unnecessary litigation to the extent that acceptable claims practice permits. (9) Reserves. Establish, maintain and revise individual claim file reserves as the situation at any given time may warrant, and as payments are made. Reserve levels shall be reviewed at least quarterly on active claims. (10) Investiqations. Subject to prior approval of the City, arrange for field investigation of questionable cases, as well as surveillance on behalf of the City. The expense for such investigation or surveillance is understood to be an "Allocated Loss Expense" as otherwise defined in this Agreement. (11) EDPServices. Provide at least monthly, computerized loss runs in such formats and at such times as may be reasonable required and mutually agreed upon. Loss runs to be fumished within fifteen (15) days following the end of the month in which the claim is reported. On line computer access will be available to the City. (12) Filinq Reports. Prepare and file on time, all reports of self-insured employers as may be required by the Department of Industrial Relations or other Divisions of the State of California. A copy of the annual report will be prepared and filed with the Risk Manger of the City not later than 30 days prior to the filing date established by the State. (13) Litiqation and Subroqation. Service Company shall be responsible for the following tasks in connection with litigated and third party claims: a. File and serve medical reports to all interested parties on behalf of the City. b. Arrange all medical/legal evaluations, with copies of the medical records and a cover letter setting forth the issues of the case. This applies to agreed medical evaluations as well. c. Arrange for and control outside photocopy costs {,yo sharing with all interested parties medical or personnel records when feasible. d. Make Workers' Compensation Appeals Board appearances on behalf of the City on those cases that involve issues of permanent disability or future medical treatment as they may be required in Service Company's capacity as a claim handler. e. Assign complex issues, including but not limited to questions of apportionment, AOE/COE, 132(a), serious & willful conduct ect.. to legal counsel with prior knowledge and consent of the City. However, Service Company will still continue to monitor and assist with the earliest resolution of the case. The City 4-20 Contract Agreement Page 19 of 24 retains the right to terminate legal counsel considered unsatisfactory to the City. f. Monitor all cases for potential subrogation, write correspondence to effect recovery, take all necessary action, including timely notification to the City, assist in recovering through third party subrogation and recommend retaining counsel where litigation is necessary to effect recovery. g. Provide a written summary of all pending litigated and subrogated cases on a semi-annual basis, if requested. (14) Rehabilitation. Subject to prior review with the City, initiate, coordinate, monitor and reports all vocational rehabilitation activities as required by statue. Prepare all necessary reports for the Rehabilitation Unit of the Division of Industrial Relations. Arrange for the timely examining and testing of applicabte injured employees. Supervise long-range or extensive vocational rehabilitation programs approved by the State to ensure optimum results, and maintain control over costs. (15) Consult with Emplovees. Claims personnel of Service Company will, if requested, consult with designated employee groups and safety committees of the City regarding specific areas of interest. Warrants: (1) Assiqned Staff: Certification: Hours of Work. Service Company warrants that it shall maintain a claim office in San Diego County to handle the City's claims. The claims office must maintain office hours of 8:00 a.m. to 5:00 p.m., Monday through Friday, excepting those Service Company holidays (not to exceed 12 days per calendar year) of which the City are given not less than 14 days notice. Service Company will commit qualified state certified supervisory staff with at least three to five years of claims administration experience, preferably including Labor Code Section 4850 experience to the City. One DEDICATED State certified claims examiner, preferably with Labor Code 4850 experience, and one-half (Y2) of a full time J3.ssistant will be assigned to the City's claims. The examiner and the assistant shall normally be available to the City during Service Company working hours understanding that the Service Company's workday consists of 7.5 hours; in any event an examiner or supervisor with knowledge of the claims of the City shall be available during working hours. Written notice shall be provided to the City of any change in the work schedule of the examiner. In the event Service Company replaces the current claims examiner temporarily for a period of more than 10 consecutive working days, the replacement shall also be of the same caliber. (2) Notification of Personnel Chanqes; Assiqnment of Claims. Service Company shall notify the City prior to any change in claims examiner, 4-21 Contract Agreement Page 20 of 24 within 3 working days of the change, including temporary changes. Service Company shall deliver to the City, by the 15th day of the month, a written report for the examiner handling the City's claims under this agreement, showing the total number of open indemnity claims assigned to the examiner during the prior month. Service Company expressly warrants that the examiner shall not at any time have a caseload which exceeds 175 open active indemnity files. (3) Settlement Authority. Service Company also warrants that it will confer with a duly appointed representative in accordance with the written instructions of the City, or in the absence of any written instructions, on all claims which may require any payment or which may result in a denial of benefits. All claims will require a duplicate case file as permitted by law to be provided to the City. (4) Pavments. Service Company shall prepare and draft all checks necessary for payment of claims and claims expenses on behalf of the City. (5) Audit. Service Company agrees to accept an independent audit of its work performance whenever requested by the City. Files on all claims are the property of the City and Service Company agrees to provide access to such files at the request of the City and in the event of termination of this contract Service Company agrees to prepare and make available all files on claims hereunder to the City within five (5) working days of such request. (6) San Dieoo Office. Service Company agrees that during the term of this Agreement, it will establish and maintain a centrally located office in San Diego County, California, from which the majority of all claims activity will be conducted, including storage of the City's claim files. (7) Attendance at Meetinos. Upon request of the City, Service Company shall attend meetings called by the City with reasonable notice, to discuss issues arising under this agreement. (8) Claims Handlino. In the performance of its obligations under this contract. work shall be assigned only to persons who are specially trained, experienced and competent in the administration of municipal workers' compensation claims. The City shall have the righqo direct Service Company to not use a person who, in the opinion oflhe City, is not so specially trained, experienced, and competent to render the required services. In addition, the City may at its own expense assign claims over six months old to an alternate administrator selected by the City. (9) Status Report. Service Company shall review all open indemnity claims within 60 days of the commencement of work under this contract to determine their status and necessary action, as appropriate, and provide a brief written report to the City on the results of that review within two (2) weeks of completion. 4-22 Contract Agreement Page 21 of 24 Excess Policies The City agrees to provide a complete copy of Excess Workers' Compensation insurance policies to Service Company. Service Company agrees to notify the Excess Workers' Compensation insurer of claims as required under the policies. Penalties The parties acknowledge that any untimely payment of temporary and permanent disability benefits may result in the imposition of automatic penalties. Penalties imposed as a result of the failure of Service Company to properly perform its duties under this agreement shall be and remain the responsibility of Service Company. Written notice of such penalties must be provided to the City within two (2) weeks of being identified, and reimbursement shall be provided to the City within 60 days of being identified. However, where the City unreasonably delays notification to Service Company of an injury, and Service Company has no opportunity to make provision for timely payment, and so advises the City upon being notified, any penalty resulting from late payment shall not be the responsibility of Service Company, but shall be the responsibility of the City. Notification by the City to the Service Company within 5 working days after the City's knowledge of an injury to an employee shall not be considered an unreasonable delay. B. Date for Commencement of Third Party Administration Services: (X) Same as Effective Date of Agreement () Other: C. Dates or Time Limits for Delivery of Deliverables: N/A Deliverable NO.1: Deliverable NO.2: Deliverable No.3: 4-23 Contract Agreement Page 22 of 24 D. Date for completion of all Third Party Administration services: For a one-year period with five one-year options to renew, or until this Agreement is terminated in accordance with Section 8, Termination of Agreement for Cause and Section 10, Termination of Agreement for Convenience of City. 9. Insurance Requirements: (X) Statutory Worker's Compensation Insurance: $1,000,000. (X) Employer's Liability Ins.urance coverage: $1,000,000. (X) Commercial General Liability Insurance: $1,000,000. (X) Errors and Omissions Insurance: $1,000,000 (included in Commercial General Liability coverage). () Errors and Omissions Insurance: $25,000 (not included in Commercial General Liability coverage). 10. Materials Required to be Supplied by City to Service Company: o Third Party Administration Agreement between City and [Name of Firm]. o All available documents related to the administration of the City's workers' compensation program including related City policies and procedures. 11. Compensation: A. (X) Single Fixed Fee Arrangement For performance of all of the Defined Services by Service Company as herein required, the Service Company shall be compensated for the all the Defined Services by a flat annual fee of $ 175,000.00. For the initial period of August 1, 2002 through June 30, 2003 the annual fee will be pro-rated in the amount of $160,416.00 Subsequent renewals will be based on the flat annual fee for the expiring base year plus CPI for San Diego County. 1/12of the annual fee will be paid monthly in arrears, thirty (30) days following month end and presentationlGthe City of an itemized invoice. Allocated Loss Expenses will also be paid by the City. Any costs (including check costs) associated with the trust account will be paid by the Service Company as part of the administrative fee. 12. Materials Reimbursement Arrangement For the cost of out of pocket expenses incurred by Service Company in the performance of services herein required, City shall pay Service Company at the rates or amounts set forth below: (X) None, the compensation includes all costs. 13. Contract Administrators: 4-24 Contract Agreement Page 23 of 24 City: Kim Stevens Disability Manager Human Resources Department Risk Management Division Third Party Administrator: Thomas J. Veale President TRIST AR Risk Management Corporate Headquarters 14. Liquidated Damages Rate: N/A () $ per day. () Other: 15. Statement of Economic Interests, Service Company 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 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. 4-25 Contract Agreement Page 24 of 24 () List "Service Company Associates" interests in real property within 2 radial miles of Project Property, if any: 16. () Service Company is Real Estate Broker and/or Salesman 17. Permitted Subconsultants: None 16. Bill Processing: A. Service Company's Billing to be submitted for the following period of time: (X) Monthly () Quarterly () Other: B. Day of the Period for submission of Service Company's Billing: () First of the Month () 15th Day of each Month (X) End of the Month () Other: C. City's Account Number: 17. Security for Performance N/A () 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 Service Company sooner, the City shall be entitled to retain, at their option, either the{ollowing "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 Service Company Services () Other: 4-26 Contract Agreement Page ~ of 1 Addendum A to Agreement between City of Chula Vista And TRISTAR Risk Management This addendum ("Addendum"), dated May 1, 2003, is intended to be part of, and attached to, that certain Agreement between the City of Chula Vista and TRIST AR Risk Management that- is dated August 1 , 2002 and duly executed. Whereas both parties are operating under the aforementioned Agreement and there exist, pursuant to Exhibit A, Section 8.0., an option to extend the contract beyond the initial one year period, both parties hereby elect to extend the current contract for another one year. This election would effectively extend the contract through June 30,2004. For performance of all the Defined Services by Service Company, and pursuant to the Compensation provided for under Exhibit A, Section 11. A., the annual fee for the contract period of July 1, 2003 through June 30, 2004 shall be $175,000 plus CPI or $181,125. This annual fee will be paid monthly, in arrears, in twelve equal installments. This Addendum is not intended to change any other provision of the Agreement between the parties. IN WITNESS WHEREOF, City and Service Company have executed this Addendum thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: Dated: ') !?;i I ,2003 City of Chula Vista By: Dated: /14;/ ,d./ ,2003 , By: ~ 4-27 Contract Agreement Page 1 of 1 Addendum B to Agreement between City of Chula Vista And TRISTAR Risk Management This addendum ("Addendum"), dated May 1, 2004, is intended to be part of, and attached to, that certain Agreement between the City of Chula Vista and TRISTAR Risk Management that is dated July 23, 2002 and duly executed. Whereas both parties are operating under the aforementioned Agreement and there exist, pursuant to Exhibit A, Section 8.0., an option to extend the contract beyond the initial one year period, both parties hereby elect to extend the current contract for another one year. This election would effectively extend the contract through June 30,2005. For performance of all the Defined Services by Service Company, and pursuant to the Compensation provided for under Exhibit A, Section 11. A., the flat annual fee for the contract period of July 1, 2004 through June 30, 2005 shall be $186,000. This annual fee will be paid monthly, in arrears, in twelve equal installments. This Addendum is not intended to change any other provision of the Agreement between the parties. IN WITNESS WHEREOF, City and Service Company have executed this . Addendum thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: /' ~- Dated: >z & ..) I ,2004 City of Chula Vista John Cog' , urchasing Agent By: Dated: '0-<- / ,2004 TRISTAR Risk Management By: 4-28 Con tract Agreemen t Page ~ of ~ Addendum C to Agreement between City of Chula Vista And TRISTAR Risk Management This addendum ("Addendum"), dated June 15, 2005, is intended to be part of, and attached to, that certain Agreement between the City of Chula Vista and TRISTAR Risk Management that is dated July 23, 2002 and duly executed. Whereas both parties are operating under the aforementioned Agreement and there exist, pursuant to Exhibit A, Section 8.0., an option to extend the contract beyond the initial one year period, both parties hereby elect to extend the current contract for another one year. This election would effectively extend the contract through June 30, 2006. For performance of all the Defined Services by Service Company, and pursuant to the Compensation provided for under Exhibit A, Section 11. A., the flat annual fee for the contract period of July 1, 2005 through June 30, 2006 shall be $242,500. This annual fee will be paid monthly, in arrears, in twelve equal installments. Also, it is the intent of both parties to increase the staffing under the Warrants section of the Agreement to one full time and one-half (20 hours/week) dedicated claims examiners while maintaining one-half claims assistants. This Addendum is not intended to change any other provision of the Agreement between the parties. IN WITNESS WHEREOF, City and Service Company have executed this Addendum thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: Dated: '711( I ,2005 City of Chula Vista - John Cog rchasing Agent By: Dated: &- /2/ ,2005 TRIST AR Risk Man gement By: 4-29 Contract Agreement Page 1 of 1 Addendum 0 to Agreement between City of Chula Vista And TRIST AR Risk Management This addendum ("Addendum"), dated July1, 2006, is intended to be part of, and attached to, that certain Agreement between the City of Chula Vista and TRISTAR Risk Management that is dated July 23, 2002 and duly executed. Whereas both parties are operating under the aforementioned Agreement and there exist, pursuant to Exhibit A, Section 8.0., an option to extend the contract beyond the initial one year period, both parties hereby elect to extend the current contract for another one year. This election would effectively extend the contract through June 30, 2007. For performance of all the Defined Services by Service Company, and pursuant to the Compensation provided for under Exhibit A, Section 11. A., the flat annual fee for the contract period of July 1, 2006 through June 30, 2007 shall be $271,300. This annual fee will be paid monthly, in arrears, in twelve equal installments. Also, it is the intent of both parties to increase the staffing under the Warrants section of the Agreement to one full time dedicated examiner, one half-time (20 hours/week) examiner, one quarter time (10 hours/week) medical only examiner and one half time (20 hours/week) claims assistant. This Addendum is not intended to change any other provision of the Agreement between the parties. IN WITNESS WHEREOF, City and Service Company have executed this Addendum thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: Dated: ~I;q I ,2006 City of Chula Vista By: By: Dated: a~;; // ,2006 {/I 4-30 . "-;_-1 r: i" ~,', ' '-'" '-' ,. - '.; --. ,- ~, ~'. '..- ~ ".. 21Jn7}~1_2S f?i 3~25 20]7 JI.~~_ 2~; Contract Agreement . ",~ .,~ ."..\ iJ: i:j Page 1 of 1 H'.n1 f~ 'H ~ E ':: ,_I <:E --~ C;:i HU~~ t..;.,i -,',,", ." '. ';:; :c:s [;~(lT Addendum E to Agreement between City of Chula Vista And TRISTAR Risk Management This addendum ("Addendum"), dated June 26, 2006, is intended to be part of, and attached to, that certain Agreement between the City of Chula Vista and TRISTAR Risk Management that is dated July 23, 2002 and duly executed. Whereas both parties are operating under the aforementioned Agreement and there exists, pursuant to Exhibit A, Section 8.0., an option to extend the contract beyond the initial one year period, both parties hereby elect to extend the current contract for another one year. This election would effectively extend the contract through June 30, 2008. For performance of all the Defined Services by Service Company, and pursuant to the Compensation provided for under Exhibit A, Section 11. A., the flat annual fee for the contract period of July 1, 2007 through June 30, 2008 shall be $280,800. This annual fee will be paid monthly, in arrears, in twelve equal installments. Also, it is the intent of both parties to maintain the staffing under the Warrants section of the Agreement to one full time dedicated examiner, one half-time (20 hours/week) examiner, one quarter time (10 hours/week) medical only examiner and one half time (20 hours/week) claims assistant. This Addendum is not intended to change any other provision of the Agreement between the parties. IN WITNESS WHEREOF, City and Service Company have executed this Addendum thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: Dated: I /:2 C. ,2007 / City of Chula Vista By: Dated: 14 ,2007 TRISTAR isk Management Thomas J By' 4-31 ATTACHMENT '1. Addendum F To Agreement between City Of Chula Vista And TRISTAR Risk Management This addendum ("Addendum"), dated June 4, 2006, is intended to be part of, and attached to, that certain Agreement between the City of Chula Vista and TRISTAR Risk Management that is dated July 23, 2002 and duly executed. Whereas both parties are operating under the aforementioned Agreement and there exists, pursuant to Exhibit A, Section 8.D., an option to extend the contract beyond the initial one year period, and the City Council at its meeting of June 3, 2008, authorized an additional one year option. This election would effectively extend the contract through June 30, 2009. For performance of all the Defined Services by Service Company, and pursuant to the Compensation provided for under Exhibit A, Section 11.A, the flat annual fee for the contract period of July 1, 2008 through June 30, 2009 shall be $287,500. This annual fee will be paid monthly, in arrears, in twelve equal installments. Also, it is the intent of both parties to maintain the staffing under the Warrants section of the Agreement to one full-time dedicated examiner, one half-time examiner, one quarter time (10 hours/week) medical only examiner and one half- time (20 hours/week) claims assistant. This Addendum is not intended to change any other provision of the Agreement between the parties. IN WITNESS WHEREOF, City and Service Company have executed this Addendum thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: Dated: ,2008 City Of Chula Vista By: Suzanne Brooks, Purchasing Agent Dated: ~"'/ / J' ,2008 . By: President 4-32 ATTACHMENT 2 FIRST AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND TRISTAR RISK MANAGEMENT For Third-Party Administration of Workers' Compensation Claims RECITALS WHEREAS, on August 1,2002, the City of Chula Vista ("City") and TRISTAR Risk Management ("Service Company") (together "Parties") entered into an agreement (the "Agreement") where the Service Company agreed to perform Third Party Administration of Workers' Compensation Claims for the City; and WHEREAS, the term of the Agreement was for one year with five one-year options to renew; and WHEREAS, the Parties agreed to renew the Agreement for the five one-year options pursuant to Addendum A, dated May 1,2003; Addendum B, dated May 1,2004; Addendum C, dated June 15,2005; Addendum D, dated July I, 2006; and Addendum E, dated June 26, 2006 (in error) and signed by the Parties on July 6, 2007, and July 26,2007. WHEREAS, staff is very satisfied with the services provided by the Service Company and wishes to extend the term of the Agreement for one year terminating on June 30, 2009; and WHEREAS, staff recommends that the City Council waive the formal consultant selection process outlined in Municipal Code section 2.56.110 because it is impractical to solicit proposals at this time due to the cost and operational expenses of changing service providers at this time. NOW, THEREFORE, the City and Service Company agree as follows: AGREEMENT 1. Exhibit A, Paragraph 8. Scope of Work and Schedule, A. Detailed Scope of Work: Warrants, paragraph (1), delete "and one-half (1/2) of a full time assistant" and replace with "one half-time examiner, one quarter time (10 hours/week) medical only examiner and one half-time (20 hours/week) claims assistant." 2. Exhibit A, Paragraph 8. Scope of Work and Schedule, D., Date for Completion of all Third Party Administration services: delete this section in its entirety and replace with the following: "July 31, 2009." C:\Documents and Settings\terie\Local Settings\Temporary Internet Files\OLK58\Tristar First Amendment 5.29.08.doc 4-33 3. Exhibit A, Paragraph 11, Compensation: A. Single Fixed Fee Arrangement, delete this section in its entirety and replace with the following: "For performance of all of the Defined Services by Service Company as herein required, the Service Company shall be compensated for the Defined Services by a fixed fee of $287,500. The fee will be paid monthly, in arrears, in twelve equal installments. Allocated Loss Expenses will be paid by the City. Any costs (including check costs) associated with the trust account will be paid by the Service Company as part of the administrative fee." All other terms of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, City and Consultant have executed this First Amendment to the Agreement indicating that they have read and understood the First Amendment and indicate their full and complete consent to its terms: Dated: ,2008 City of Chula Vista By: Cheryl Cox, Mayor Attest: Donna Norris, Interim City Clerk Approved as to form: City Attorney TRISTAR Risk Management Dated: By: Thomas J. Veale, President Exhibit List to First Amendment to Agreement: (X) Agreement between the City ofChula Vista and C:\Documents and Settings\terie\Loca! Setlings\Temporary Internet Files\OLK58\Tristar First ^2endment S.29.08.doc 4-34 MoY 30. 2008 10:23AM ~o. 3169 P. 2 I //EIJ1 -IF ~ S; ttJeb Nffee;J'iYJn FIRST AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF CBULA VISTA AND TRISTAR RISK MANAGEMENT For Tbird-Party Administration of Workers' Compensation CIai:mB RECITALS WHEREAS, on August 1, 2002, the City of Chula Vista ("City") and TRlSTAR Risk Mana,,<>ement ("Service Company'') (togerl:ter "Parties'') entered into an agreement (the "Agreement'') where the Service Company agreed to perform TJriId party Administration of Workers' Compensation Claims for the City; and WHEREAS, the term of the Agreement was for one year with nve one-year options 10 renew; and WHEREAS, the Parties agreed to renew the Agreement for the five one-year options pursuant to Addendum A, dated May 1.2003; Addendum B, dated May 1,2004; Addendum C, dated June 15,2005; Addendum D. dated July 1,2006; and Addendum E, dated June 26, 2006 (in error) and signed by the Parties on July 6, 2007, and July 26, 2007. WHEREAS, staff is very satisfied with the services provided by tb.e Service Company and wishes to extend the term of the Agreement for one year terminatiog on June 30, 2009; and WHEREAS, staff recommends that the City Council waive the formal consultant selection process outlin~d in Municipal Code section 2.56.110 because it is impractical to solicit proposals at this time due to th~ cost and operational expenses of changing service providers at this time. NOW, THEREFORE, the City and Service Company agree as follows: AGREEMENT 1. Exhibit A, Paragraph 8. Scope of Work and Schedule, A. Detailed Scope of Work: Warrants, paragraph (1), delete "and one.half (112) of a full time assistantn and replac~.:IYith "one half-time examiner, one quarter time (10 hours/week) medical only examiner and one balf-time (20 hourslweek) claims assistant." 2. Exhibit A. Paragraph 8, Scope of Work and Schedule, D., Date for Completion of all Third Party Administration services: delete this section in. its entirety and replace with the following: "July 31. 2009." G~~tttcY1ViJaAdtAal~U9.DLiDc Moy 30. 2008 10:23AM ~o. 3169 P. 3 3. Exhibit A, Paragraph 11, Compensation: A. Single Fixed Fee Arrangement, delete this section in its entin:ty and replace with the following: "For performance of all of the Defil1ed Services by Service Company as herein required. the Service Company shall be compensated for the Defined Services by a fixed fee of $287,500. The fee will be paid monthly, in arrears, in twelve equal installments. Allocated Loss Expenses will be paid by the City. AIJ.y costs (including check costs) associated with the trust account will be paid by the Service Company as part of the admiDistrative fee." All other terms of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, City and Consultant have executed this First Amendment to the Agreement indicating that they have :read and understood the First Amendment and indicate their full and complete consent to its terms: Dated: .2008 City of Chula Vista By: Cheryl Cox, Mayor Attest: Donna Norris, Interim City Clerk Approved as to form: City Attorney Dated: ExJ;Ubit List to First Amendment to Agreement: (X) Agreement between the City of ChuIa Vista and G:\Admlm\~~9'..rOuK"i"",-FIQI.Ju:.."obo:=1S.19m..dOi: 2 RESOLUTION NO. 2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE FORMAL CONSULTANT SELECTION PROCESS AND APPROVING THE FIRST AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND TRISTAR RISK MANAGEMENT FOR THIRD-PARTY ADMINISTRATION OF THE CITY'S WORKERS' COMPENSATION CLAIMS WHEREAS, TRISTAR Risk Management [TRISTAR] has administered the City of Chula Vista's workers' compensation claims since 1985; and WHEREAS, in 2002, the City solicited proposals for third-party claims administration services; and WHEREAS, as a result of that solicitation, the City entered into a one-year contract with TRISTAR with a provision for five, one-year extensions; and WHEREAS, the City has exhausted the extensions included in the existing agreement; and WHEREAS, the City has been extremely satisfied with the services provided by TRISA TR and staff believes it is highly unlikely the City would find a firm able to provide the same level of service at a price that would justify the additional expense of changing administrators (transferring data bases, system/process development) nor the disruption of service/care of our employees, especially during these times of fiscal uncertainty and limited resources; and WHEREAS, due to the cost (financial and operational) of changing vendors, staff recommends that it is in the best interest of the City that the competitive bid process for this contract be waived so the contract with TRISTAR can be amended to extend the contract for an additional one-year period; and WHEREAS, staff will commence the RFP process in March 2009 for services going forward. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby waive the formal consultant selection process and approve the First Amendment to the Agreement between the City ofChula Vista and TRISTAR Risk Management for third-party administration ofthe City's workers' compensation claims. Presented by Approved as to form by Marcia Raskin Director of Human Resources ~~~<~ Ann Moore City Attorney J:\AI1t>rncy\RESOIAGREEMfNTS\Trislar Risk Mgml_06-(J3-08.doc Y' ..3~ RESOLUTION NO. 2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE FORMAL CONSULTANT SELECTION PROCESS AND APPROVING THE FIRST AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND TRISTAR RISK MANAGEMENT FOR THIRD-PARTY ADMINISTRATION OF THE CITY'S WORKERS' COMPENSATION CLAIMS WHEREAS, TRISTAR Risk Management [TRISTAR] has administered the City of Chula Vista's workers' compensation claims since 1985; and WHEREAS, in 2002, the City solicited proposals for third-party claims administration services; and WHEREAS, as a result of that solicitation, the City entered into a one-year contract with TRISTAR with a provision for five, one-year extensions; and WHEREAS, the City has exhausted the extensions included in the existing agreement; and WHEREAS, the City has been extremely satisfied with the services provided by TRISA TR and staff believes it is highly unlikely the City would find a firm able to provide the same level of service at a price that would justify the additional expense of changing administrators (transferring data bases, system/process development) nor the disruption of service/care of our employees, especially during these times of fiscal uncertainty and limited resources; and WHEREAS, due to the cost (financial and operational) of changing vendors, staff recommends that it is in the best interest of the City that the competitive bid process for this contract be waived so the contract with TRISTAR can be amended to extend the contract for an additional one-year period; and WHEREAS, staff will commence the RFP process in March 2009 for services going forward. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby waive the formal consultant selection process and approve the First Amendment to the Agreement between the City ofChula Vista and TRISTAR Risk Management for third-party administration of the City's workers' compensation claims. Presented by Approved as to form by ~~~<~~l\ Ann Moore City Attorney Marcia Raskin Director of Human Resources J:l.Allomey\RESO\AGREEMENTSITrislar Risk Mgml~06-03-08.doc 4-35 CITY COUNCIL AGENDA STATEMENT ~~ CITY OF . (HULA VISTA JUNE 3, 2008 Item~ SUBMITTED BY: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE CREATION OF A PROFESSIONAL UNIT DIRECTOR OF HUMAN RESOURCES /fP-- CITY MANAGER c;::.T -hr,.. .b re G.,. ASSISTANT CITY MANAGER s-r' ITEM TITLE: REVIEWED BY: 4/5THS VOTE: YES D NO 0 SUMMARY On June 5, 2007, Council approved the results of the Middle Management classification study, which was the last phase of the on-going project that reviewed all classified positions throughout the City. Now that the study is completed, one of the findings was the need to separate the Middle Managers into two distinct groups, Middle Managers and Professionals based on the level of overall management and administrative responsibilities of each position. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed actlvlY for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because it does not include a physical change to the environment; therefore, pursuant to Section l5060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. RECOMMENDATION That Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not Applicable. 5-1 JUNE 3, 2008, Iteml Page 2 of6 DISCUSSION In June 2007, Council approved the results of a comprehensive classification study of professional and middle management positions in the Middle Management group. The purpose of the study was to conduct a detailed analysis of each position; determine essential job functions for each classification; develop and/or revise class specifications to ensure that they were current, accurate and in compliance with the Americans with Disabilities Act; allocate each position to an appropriate classification; collect and analyze labor market data; and assess internal salary relationships for any new or revised classifications. Unit designation was not part of the study conducted in 2007, however, Human Resources staff conducted follow-up analysis of each classification. As a result of the analysis conducted, it was determined that many of the classifications designated as Middle Management positions did not meet the term "Middle Management" as defined in the Government Code under the State Employer Relations Act (SERA). Although the City is not bound by the SERA, we have used it as guidance in defining various groups. The Government Code defines a "Managerial Employee" as any employee having significant responsibility for formulating or administering agency or departmental policies and programs or administering an agency or department and exercising independent judgment and discretion in the duties performed. The City's current makeup of the Middle Management group has encompassed both supervisory and professional classifications. Many of these classifications do not perform functions that fall within the criteria set forth in the Government Code definition of "Managerial Employee." Therefore, because the current Middle Manager group has been defined broadly, it is over-inclusive. In addition, the Meyers Milias Brown Act defines a Professional as those who are engaged in work requiring specialized knowledge and skills attained through a recognized course of instruction and exercise independent judgment and discretion in the course oftheir work. Human Resources staff is recommending creating an additional group called the Professional Unit. This unit would more closely align classifications based on the above definition. Two subgroups would also be required to further appropriately designate classifications within both the Middle Management and Professional groups. These subgroups would be "Confidential" and "Unclassified". State Employer Relations Act defines "Confidential employee" as any employee who is required to develop or present management positions with respect to employer-employee relations or whose duties normally require access to confidential information contributing significantly to the development of management positions. The City Charter sections 500 (a) and 701 define "Unclassified" positions. In general, unclassified employees serve in an "at-will" status. The Charter states these positions serve "at the pleasure of' the City Councilor City Manager and are not covered by the Civil Service Rules and Regulations. The City Manager has the authority to designate management positions to the unclassified service. 5-2 JUNE 3, 2008, Item~ Page 3 of6 Currently, 105 classifications are designated to the Middle Management group. Of these 105 classifications, 41 classifications would remain in the Middle Management group, 2 classifications would be designated as Middle Management (Confidential), 4 classifications as Middle Management (Unclassified), 45 classifications designated as Professional, 4 classifications as Professional (Confidential), and 9 classifications as Professional (Unclassified). DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations section I 8704.2(a)(1) is not applicable to this decision. FISCAL IMPACT No fiscal impact. ATTACHMENTS A. List of Classifications and Group Designation Prepared by: Irene Mosley, Human Resources Operations Manager, Human Resources Department 5-3 ATTACHEMENT A I 'Classification ANIMAL CARE FACILITY SUPERVISOR APPLICATIONS SUPPORT MANAGER CODE ENFORCEMENT MANAGER COLLECTIONS SUPERVISOR COMMUNICATIONS SYSTEM MANAGER CONSTRUCTION & REPAIR MGR CRIME LABORATORY MANAGER CUSTODIAL & FACILITIES MANAGER DETENTION FACILITY MANAGER DEVELOPMENT SERV COUNTER MANAGER ENVIRON SVCS PROG MGR EQUIPMENT MAINTENANCE MANAGER FIRE BATTALION CHIEF (112 HR) FIRE MARSHAL FLEET MANAGER GIS SUPERVISOR INFO TECH SUPPORT MANAGER LIBRARY DIGITAL SERVICES MGR LIBRARY OPERATIONS MANAGER LITERACY AND PROGRAM COORD" OPEN SPACE MANAGER OPS&TELECOM MGR PARKS MANAGER PERMITS PROCESSING SUPERVISOR PLAN CHECK SUPERVISOR POLICE COMMUNICATIONS MANAGER PLANNING & ENVIRONMENTAL MANAGER POLICE SUPPORT SERVICES MGR PRINCIPAL CIVIL ENGINEER PRINCIPAL LANDSCAPE ARCHITECT PRINCIPAL LIBRARIAN PRINCIPAL PLANNER PRINCIPAL RECREATION MANAGER PUBLIC WORKS MANAGER RECORDS MANAGER SENIOR EQUIPMENT MAINT SUPERVISOR SR LIBRARIAN SR RECREATION MGR URBAN FORESTRY MANAGER TRANSIT MANAGER WASTEWATER COLLECTIONS MANAGER JUNE 3, 2008, Item~ Page 4 of 6 I Group Designation Middle Management Middle Management Middle Management Middle Management Middle Management Middle Management Middle Management Middle Management Middle Management Middle Management Middle Management Middle Management Middle Management Middle Management Middle Management Middle Management Middle Management Middle Management Middle Management Middle Management Middle Management Middle Management Middle Management Middle Management Middle Management Middle Management Middle Management Middle Management Middle Management Middle Management Middie Management Middle Management Middle Management Middle Management Middie Management Middle Management Middle Management Middle Management Middle Management Middle Management Middle Management 5-4 JUNE 3, 2008, Item2 Page5of6 I Classification BENEFITS MANAGER SR ACCOUNTANT REAL PROPERTY MANAGER CBAG BUDGET MANAGER CBAG NE1WORK MANAGER CBAG PROGRAM MANAGER APPLICATIONS SUPPORT SPECIALIST BUILDING PROJECTS SUPERVISOR BUILDING PROJECT MANAGER CULTURAL ARTS COORDINATOR DEPUTY CITY CLERK DESIGN REVIEW COORDINATOR DEVELOPMENT AUTOMATION SPEC EMERGENCY SERVICES COORDINATOR ENVIRONMENTAL RESOURCE MANAGER FIRE PREVENTION ENGINEER FISCAL SERVICES ANALYST INFO TECH SUPPORT SPECIALIST LANDSCAPE ARCHITECT LITERACY TEAM COORDINATOR LIBRARY ADMINISTRATIVE COORD NATURE CENTER PROGRAM MANAGER ODT SPECIALIST I ODT SPECIALIST II POLICE TRAINING & DEV SUPV PRIN PROJECT COORD PRINCIPAL ECONOMIC DEV SPEC PRINCIPAL MANAGEMENT ANALYST PRINCIPAL REVENUE ANALYST PROGRAMMER ANALYST PUB INFO OFFICER (PD) PUBLIC WORKS COORDINATOR REDEVELOPMENT COORDINATOR REVENUE & RECOVERY MANAGER RISK ANALYST RISK MANAGEMENT SPECIALIST SPECIAL EVENTS PLANNER SR APPLICATIONS SUPPORT SPEC SR ECONOMIC DEV SPEC SR PROJECT COORD SR GRAPHIC DESIGNER SR INFO TECH SUPPORT SPEC SR MANAGEMENT ANALYST SR PLANNER SR PROCUREMENT SPECIALIST SR PROGRAMMER ANALYST Group ~i\:inati6n" Middle Management (Confidential) Middle Management (Confidential) Middle Management (Unclassified) Middle Management (Unclassified) Middle Management (Unclassified) Middle Management (Unclassified) Professional Professional Professional Professional Professional Professional Professional Professional Professional Professional Professional Professional Professional Professional Professional'" Professional Professional Professional Professional Professional Professional Professional Professional Professional Professional Professional Professional Professional Professional Professional Professional Professional Professional Professional Professional Professional Professional Professional Professional Professional 5-5 Classific.atiolt . SR PUBLIC SAFETY ANALYST SR RISK MGMT SPECIALIST SYSTEMS/DA TABASE ADMINISTRATOR TRAFFIC ENGINEER VETERINARIAN TRANSIT OPERATIONS COORD FISCAL AND MANAGEMENT ANALYST HR ANALYST SR HR ANALYST PRINCIPAL HR ANALYST CBAG LEAD PROGRAMMER ANALYST CBAG METH STK FORCE COORDINATOR CBAG MICROCOMPUER SPECIALIST CBAG PROGRAM ANALYST CBAG NTWKADMINISTRATOR I COASTAUENVIRON POLICY CONSULTANT CONSTNT SRVCS MGR SENIOR DEPUTY CITY CLERK EXECUTIVE ASST TO THE CITY MGR DEPUTY CITY ATTY II 'Pending Council approval on 6110108. JUNE 3, 2008, Item---5- Page 6 of6 Group De$ilination Professional Professional Professional Professional Professional Professional Professional (Confidential) Professional (Confidential) Professional (Confidential) Professional (Confidential) Professional (Unclassified) Professional (Unclassified) Professional (Unclassified) Professional (Unclassified) Professional (Unclassified) Professional (Unclassified) Professional (Unclassified) Professional (Unclassified) Professional (Unclassified)' Professional (Unclassified) 5-6 RESOLUTION NO. 2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE CREATION OF A PROFESSIONAL UNIT WHEREAS, in June 2007, the Chula Vista City Council approved the results of a comprehensive classification study of professional and middle management positions in the Middle Management group; and WHEREAS, the purpose of the study was to conduct a detailed analysis of each position; determine essential job functions for each classification; develop and or revise class specifications to ensure that they were current, accurate and in compliance with the Americans with Disabilities Act; allocate each position to an appropriate classification; collect and analyze labor market data; and assess internal salary relationships for any new or revised classifications; and WHEREAS, unit designation was not part of the study conducted in 2007, however, Human Resources staff conducted follow-up analysis of each classification; and WHEREAS, as a result of the analysis conducted, it was determined that many of the classifications designated as Middle Management positions did not meet the term "Middle Management" as defined in the Government Code under the State Employer Relations Act (SERA); and WHEREAS, although the City is not bound by the SERA, the City has used it as guidance in defining various groups; and WHEREAS, the Government Code defines a "Managerial employee" as any employee having significant responsibility for formulating and administering agency or departmental policies and programs or administering an agency or department and exercising independent judgment and discretion in the duties performed; and WHEREAS, the City's current makeup of the Middle Management group has encompassed both supervisory and professional classifications, and is therefore over-inclusive; and WHEREAS, the Meyers Milias Brown Act defines a Professional as those who are engaged in work requiring specialized knowledge and skills attained through a recognized course of instruction and who exercise independent judgment and discretion in the course of their work; and WHEREAS, Human Resources staff is recommending creating an additional group called the Professional unit; and J:\Altorney\RESO\HRICreation of Prof! Unit_ 06.0J-08.doc 5-7 Resolution No. 2008- Page 2 WHEREAS, this unit would more closely align classifications based on the definition found in the Meyers Milias Brown Act; and WHEREAS, two subgroups, "Confidential" and "Unclassified," would also be required to further appropriately designate classifications within both the Middle Management and Professional groups; and WHEREAS, SERA defines "Confidential employee" as any employee who is required to develop or present management positions with respect to employer-employee relations or whose duties normally require access to confidential information contributing significantly to the development of management positions; and WHEREAS, the City Charter currently designates several positions In the Middle Management unit as unclassified positions; and WHEREAS, currently, 104 classifications are designated to the Middle Management group; and WHEREAS, of these 104 classifications, 42 classifications would remain in the Middle Management group, 3 classifications would be designated as Middle Management (Confidential), 4 classifications as Middle Management (Unclassified), 44 classifications designated as Professional, 3 classifications as Professional (Confidential), and 8 classifications as Professional Unclassified). NOW, THEREFORE, BE IT RESOLVED by the City Council of the City ofChula Vista that it hereby approves the creation of a Professional Unit. Presented by Approved as to form by ~~;\q;~,\~'{.q\,,\:).~\ Ann Moore City Attorney Marcia Raskin Director of Human Resources J:lAttomeyIRESO\HR\Crealion of prorl Unil_ 06-03-08.doc 5-8 CITY COUNCIL AGENDA STATEMENT ~~f:. CITY OF - - ~--- (HULA VISTA 06/03/2008 Item~ ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING $83,219 FROM THE GOVERNOR'S OFFICE OF EMERGENCY SERVICES AND APPROPRIATING FUNDS THEREFOR, WAIVING THE CONSULTANT SELECTION PROCESS AND APPROVING THE CONTRACTUAL AGREEMENT WITH SOUTH BAY COMMUNITY SERVICES TO PROVIDE SERVICES FOR DOMESTIC VIOLENCE CASES CHIEF OF POLICE btt0 CITY MANAGER 4/5THS VOTE: YES X NO SUBMITTED BY: REVIEWED BY: SUMMARY The Police Department and South Bay Community Services have been working in partnership for the past eleven years providing domestic violence services to the community. Adoption of this resolution will accept a grant from the Governor's Office of Emergency Services for Domestic Violence Response Team services and approve a contractual agreement with South Bay Community Services to provide services for domestic violence cases. ENVIRONMENTAL REVIEW Not Applicable. RECOMMENDATION That Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not Applicable. DISCUSSION Since 1985, the Chula Vista Police Department (CVPD) and South Bay Community Services (SBCS) have partnered to address issues with juveniles. And since 1997, CVPD has been working in a partnership with SBCS to provide direct services to domestic violence victims and protect the children from abuse. The partnership between CVPD and SBCS resulted in the formation of a 24-hour/7-day per week Domestic Violence 6-1 06/03/2008, Item~ Page 2 of3 Response Team (DVRT). In order to provide more consistent and intensified follow-up services, the DVRT program was expanded in October 2003 with the addition of two full-time SBeS Advocates working on site at eVPD. A federal grant administered by the Governor's Office of Emergency Services (OES) has funded advocacy services since fiscal year 2003/2004, and the Police Department has been notified of the grant approval for the period of January 1,2008 to December 31, 2008, subject to available federal funding. This award is being funded with Violence Against Women Act (VAWA) Federal Fiscal Year 2007 and 2008 funds. If the federal funds appropriated for the purposes of the grant award are reduced or eliminated by the Federal government, OES may reduce the grant award upon written notice. Services provided by the two Advocates are contingent upon grant funding to support the program. Because of the established working relationship with SBCS, eVPD is seeking to waive the consultant selection process and approve the contractual agreement with SBCS to provide services for domestic violence cases. SBCS has tailored their programs to meet the needs of the City and their experience, qualifications and community presence make them a unique service provider. The Domestic Violence Response Team consists of detectives from the Family Protection Unit of the Police Department and Advocates from South Bay Community Services. The Advocates work closely with the Detectives, provide more intensified follow-up services after the violent incident, and help prevent the need for further intervention by law enforcement. SBCS' Advocates are mandated to provide 24-hour immediate mobile crisis intervention in response to 9 11 calls to the CVPD on all family violence cases involving children. Immediate response is construed to mean 20 minutes and current average response time is 19-22 minutes. SBCS emergency staff meets CVPD officers at the scene of domestic violence crimes to assess for child abuse as well as offer services to victims. Additionally, eVPD has dedicated personnel from the Family Protection Unit to arrive in such cases. This dedicated staffing will allow both eVPD and the SBes Advocate to have increased access to victims after the incident. The following business day, the Advocate will follow-up with victims (alone or with a CVPD Detective), set up home visits with those not sheltered and provide case management and additional services to those placed in shelter. These visits will be coordinated with a Detective, depending on the severity of the abuse and if the perpetrator is still at large. Other SBCS Advocate services include safety planning, support groups and counseling, Temporary Restraining Order information and assistance, and transportation to a domestic violence shelter. Fiscal Year 2006/2007 DVRT Accomplishments Investigated 1,787 cases of suspected domestic violence Made contact and offer advocacy to 100% of victims with cases assigned to the unit Provided advocacy, including crisis intervention, resource and referral assistance, emergency assistance, and/or restraining order assistance to 973 victims Provided 8 training sessions to officers, highlighting the DVRT process as well as other agency-wide services available to the community 6-2 06/03/2008, Item~ Page 3 of3 DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations section 18704,2(a)(l) is not applicable to this decision, FISCAL IMPACT The grant funding from the Governor's Office of Emergency Services in the amount of $83,219 will completely offset the South Bay Community Services subcontracting costs of two full-time Advocates from January I, 2008 to December 31, 2008, Continuing services of the two Advocates beyond December 31, 2008 is contingent upon additional grant funding from the Office of Emergency Services to support the program, Adoption of this resolution will result in an appropriation of $41,609 to the fiscal year 2007/2008 budget of the Police Grant Fund, and direct staff to include $41,610 to the fiscal year 2008/2009 Police Grant Fund budget As additional grant funds are secured, the Department will bring forward additional requests for further funding of these positions, ATTACHMENTS A Agreement with SBCS for Domestic Violence Response and Advocacy Services Prepared by: Edward Che'r\l, Administrative Services Manager, Police Department 6-3 THE ATTACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY A TTORNEY'S OFFICE AND WILL BE FORMALLY SIGNED UPON APPROVAL BY THE CITY COUNCIL ~~~ ~'\>,5>\~ 1\"()~ Ann Moore ' City Attorney Dated: ~\\i'G 1...'-), ?S,)()<"G Agreement between City ofChula Vista and South Bay Community Services for Domestic Violence Response and Advocacy Services Attachmer:t A Agreement between City of Chula Vista and South Bay Community Services for Domestic Violence Response and Advocacy Services This agreement ("Agreement"), dated 06/03/2008 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, since 1997, the City has worked with South Bay Community Services to provide Domestic Violence Response and Advocacy services; 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. Page 1 6-4 Attachment A 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. All compensation for Additional Services shall be paid monthly as billed. Page 2 6-5 P-*ttaC:-unent Jo, 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 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: Consultant must procure insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work under the contract and the results of that work by the consultant, his agents, representatives, employees or subcontractors and provide documentation of same prior to commencement of work. The insurance must be maintained for the duration of the contract. Minimum Scope of Insurance Coverage must be at least as broad as: 1. Insurance Services Office Commercial General Liability coverage (occurrence Form CG0001) in the amount set forth in Exhibit A, Paragraph 9. 2. Insurance Services Office Form Number CA 0001 covering Automobile Liability, Code 1 (any auto) in the amount set forth in Exhibit A, Paragraph 9. 3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance in the amount set forth in the attached Exhibit A, Paragraph 9. 4. Professional Liability or Errors & Omissions Liability insurance appropriate to the consultant's profession. Architects' and Engineers' coverage is to be endorsed to include contractual liability in the amount set forth in Exhibit A, Paragraph 9. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either the insurer will reduce or eliminate such deductibles or self- insured retentions as they pertain to the City, its officers, officials, employees and volunteers; Page 3 6-6 Attachment A volunteers; or the consultant will provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration, and defense expenses. Other Insurance Provisions The general liability, automobile liability, and where appropriate, the worker's compensation policies are to contain, or be endorsed to contain, the following provisions: 1. The City of Chula Vista, its officers, officials, employees, agents, and volunteers are to be named as additional insureds with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the consultant, where applicable, and, with respect to liability arising out of work or operations performed by or on behalf of the consultant's including providing materials, parts or equipment furnished in connection with such work or operations. The general liability additional insured coverage must be provided in the form of an endorsement to the consultant's insurance using ISO CG 20 10 11 85 or its equivalent. 2. The consultant's insurance coverage must be primary insurance as it pertains to the City, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers is wholly separate from the insurance of the contractor and in no way relieves the contractor from its responsibility to provide insurance. 3. Each insurance policy required by this clause must be endorsed to state that coverage will not be canceled by either party, except after thirty (30) days' prior written notice to the City by certified mail, return receipt requested. 4. Coverage shall not extend to any indemnity coverage for the active negligence of the additional insured in any case where an agreement to indemnify the additional insured would be invalid under Subdivision (b) of Section 2782 of the Civil Code. 5. Consultant's insurer will provide a Waiver of Subrogation in favor of the City for each required policy providing coverage during the life of this contract. If Errors & Omissions coverage are written on a claims-made form: 1. The ''Retro Date" must be shown, and must be before the date of the contractor the beginning of the contract work. 2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract work. Page 4 6-7 Attachment A 3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a "Retro Date" prior to the contract effective date, the Consultant must purchase "extended reporting" coverage for a minimum of five (5) years after completion of contract work. 4. A copy of the claims reporting requirements must be submitted to the City for review. Acceptability of Insurers Insurance is to be placed with licensed insurers admitted to transact business in the State of California with a current A.M. Best's rating of no less than A-V. If the insurance is placed with a surplus lines insurer, insurer must be listed on the State of California List of Eligible Surplus Lines Insurers (LESLI) and be A.M. Best's rated A-V. Verification of Coverage Consultant shall furnish the City with original certificates and amendatory endorsements effecting coverage required by this clause. The endorsements should be on insurance industry forms, provided those endorsements or policies conform to the contract requirements. All certificates and endorsements are to be received and approved by the City before work commences. The City reserves the right to require, at any time, complete, certified copies of all required insurance policies, including endorsements evidencing the coverage required by these specifications. Subcontractors Consultants must include all sub-consultants as insureds under its policies or furnish separate certificates and endorsements for each sub-consultant. All coverage for sub- consultants is subject to all of the requirements included in these specifications. 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. Page 5 6-8 Attachment A 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, 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 in the form prescribed by the City and by such sureties which are authorized to transact such business in the State of California, listed as approved by the United States Department of Treasury Circular 570, http://www.frns.treas.qov/c570, and whose underwriting limitation is sufficient to issue bonds in the amount required by the agreement, and which also satisfy the requirements stated in Section 995.660 of the Code of Civil Procedure, except as provided otherwise by laws or regulations. All bonds signed by an agent must be accompanied by a certified copy of such agent's authority to act. Surety companies must be duly licensed or authorized in the jurisdiction in which the Project is located to issue bonds for the limits so required. Form must be 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, 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 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 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 Page 6 6-9 Attachment A 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. Page 7 6-10 Attachment A 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 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 Consultant according to the terms and conditions set forth in Exhibit A, Paragraph 11, adjacent to the governing compensation relationship indicated by a "checkmark" next to the appropriate arrangement, subject to the requirements for retention set forth in paragraph 19 of Exhibit A, and shall compensate Consultant for out of pocket expenses as provided in Exhibit A, Paragraph 12. All billings submitted by Consultant shall contain sufficient information as to the propriety of the billing to permit the City to evaluate that the amount due and payable 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. Page 8 6-11 p..~ttachment A 4. Term. This agreement shall terminate on December 31, 2008 provided however (a) the effectiveness of this Agreement for the fiscal year commencing July 1, 2007 shall be contingent upon City's appropriation, in its sole discretion, of the necessary funds therefore; and (b) Consultant's obligations under Section 7 hereof shall survive such termination. 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 performance. 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. Page 9 6-12 Attach.:nent A 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 that 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, Page 10 6-13 P-.ttachment A 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, orfor 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 that 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 or alleged by third parties to be the result of the negligent acts, errors or omissions or the willful misconduct of the Consultant, and Consultant's employees, subcontractors or other persons, agencies or firms for whom Consultant is legally responsible in connection with the execution of the work covered by this Agreement, except only for those claims, damages, liability, costs and expenses (including without limitations, attorneys fees) arising from the sole negligence or sole willful misconduct of the City, its officers, employees. Also covered is liability arising from, connected with, caused by or claimed to be caused by the active or passive negligent acts or omissions of the City, its agents, officers, or employees which may be in combination with the active or passive negligent acts or omissions of the Consultant, its employees, agents or officers, or any third party. With respect to losses arising from Consultant's professional errors or omissions, 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) except for those claims arising from the negligence or willful misconduct of 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. Consultant's obligations under this Section shall not be limited by any prior or subsequent declaration by the Consultant. Consultant's obligations under this Section shall survive the termination of this Agreement. Page 11 6-14 ll.ttachment A For those professionals who are required to be licensed by the state (e.g. architects and engineers), the following indemnification provisions should be utilized: 1. Indemnification and Hold Harmless Agreement. With respect to any liability, including but not limited to claims asserted or costs, losses, attorney fees, or payments for injury to any person or property caused or claimed to be caused by the acts or omissions of the Consultant, or Consultant's employees, agents, and officers, arising out of any services performed involving this project, except liability for Professional Services covered under Section X.2, the Consultant agrees to defend, indemnify, protect, and hold harmless the City, its agents, officers, or employees from and against all liability. Also covered is liability arising from, connected with, caused by, or claimed to be caused by the active or passive negligent acts or omissions of the City, its agents, officers, or employees which may be in combination with the active or passive negligent acts or omissions of the Consultant, its employees, agents or officers, or any third party. The Consultant's duty to indemnify, protect and hold harmless shall not include any claims or liabilities arising from the sole negligence or sole willful misconduct of the City, its agents, officers or employees. This section in no way alters, affects or modifies the Consultant's obligation and duties under Section Exhibit A to this Agreement. 2. Indemnification for Professional Services. As to the Consultant's professional obligation, work or services involving this Project, the Consultant agrees to indemnify, defend and hold harmless the City, its agents, officers and employees from and against any and all liability, claims, costs, and damages, including but not limited to, attorneys fees, losses or payments for injury to any person or property, caused directly or indirectly from the negligent acts, errors or omissions of the Consultant or Consultant's employees, agents or officers; provided, however, that the Consultant's duty to indemnify shall not include any claims or liability arising from the negligence or willful misconduct of the City, its agents, officers and employees. 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 Page 12 6-15 Attachment A 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 notation), 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 Page 13 6-16 Attachment A use, copyrights or patent rights by Consultant in the United States or in any other country without the express written consent of City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such reports, studies, data, statistics, forms or other materials or properties produced under this Agreement. 13. Independent Contractor City is interested only in the results obtained and Consultant shall perform as an independent contractor with sole control of the manner and means of performing the services required under this Agreement. City maintains the right only to reject or accept Consultant's work products. Consultant and any of the Consultant's agents, employees or representatives are, for all purposes under this Agreement, an independent contractor and shall not be deemed to be an employee of City, and none of them shall be entitled to any benefits to which City employees are entitled including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Therefore, City will not withhold state or federal income tax, social security tax or any other payroll tax, and Consultant shall be solely responsible for the payment of same and shall hold the City harmless with regard 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 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. Page 14 6-17 Attachment A 16. Statement of Costs I n 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, 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. Page 15 6-18 Attachment A 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 LawNenue 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. Page 16 6-19 Attachment P-. Signature Page to Agreement between City of Chula Vista and South Bay Community Services for Domestic Violence Response and Advocacy services 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: ,2008 City of Chula Vista by: Cheryl Cox, Mayor Attest: Donna Norris, Interim City Clerk Approved as to form: Ann Moore, City Attorney South Bay Community Services Dated: By: Kathryn Lembo Executive Director Exhibit List to Agreement (X) Exhibit A. Page 17 6-20 Attachment A Exhibit A to Agreement between City of Chula Vista and South Bay Community Services 1. Effective Date of Agreement: 01/01/2008 2. City-Related Entity: (X) City of Chula Vista, a municipal chartered corporation of the State of California 3. Place of Business for City: City of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910 4. Consultant: South Bay Community Services 5. Business Form of Consultant: (X) Corporation 6. Place of Business, Telephone and Fax Number of Consultant: 1124 Bay Blvd, Suite D Chula Vista, California 91911 Voice Phone (619) 420-5094 Fax Phone (619) 420-8722 7. General Duties: Domestic Violence Response and Advocacy Services 8. Scope of Work and Schedule: Detailed Scope of Work: The Operational Agreement (Exhibit B) between South Bay Community Services and the Chula Vista Police Department signed February 6, 2008 and Office of Emergency Services grant #LE07056364 shall serve as scope of work for this agreement. Page 18 6-21 Attachment A B. Date for Commencement of Consultant Services: ( ) Same as Effective Date of Agreement (X) Other: 01/01/2008 C. Dates or Time Limits for Delivery of Deliverables: Deliverable No.1: The Operational Agreement (Exhibit B) between South Bay Community Services and the Chula Vista Police Department signed February 6, 2008 details time limits and deliverables for this agreement. D. Date for completion of all Consultant services: Upon compliance with all executory provisions herein. 9. Insurance Requirements: 1. General Liability: (Includin! $1,000,000 per occurrence for bodily injury, personal injury an operations, products and property damage. If Commercial General Liability insurance with completed operations, as general aggregate limit is used, either the general aggregate Iim applicable.) must apply separately to this project/location orthe general aggregat limit must be twice the required occurrence limit. 2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage. 3. Workers' Compensation Employer's Liability: Statutory $1,000,000 each accident $1,000,000 disease-policy limit $1,000,000 disease-each employee 4. Professional Liability or Error $ 500,000 each occurrence & Omissions Liability: $1,000,000 policy aggregate 10. Materials Required to be Supplied by City to Consultant: None. 11. Compensation: Page 19 6-22 Attachment A A. (X) 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: $79,256, payable as follows: Quarterly installments of $19,814 each. 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. 13. Contract Administrators: City: Lieutenant Gary Ficacci, Investigations Division Police Department 315 4th Avenue Chula Vista, CA 91910 (619)585-5670 Consultant: Kathryn Lembo, Executive Director 1124 Bay Blvd, Suite D Chula Vista, California 91911 14. Liquidated Damages Rate: None. 15. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: (X) Not Applicable. Not an FPPC Filer. 16. ( ) Consultant is Real Estate Broker and/or Salesman Not Applicable 17. Permitted Subconsultants: Page 20 6-23 None. 18. Bill Processing: A. Consultant's billing to be submitted for the following period of time: (X) Quarterly B. Day of the period for submission of Consultant's billing: (X) First of the Month C. City's Account Number: 25203-6401 19. Security for Performance None Required. 6-24 Attachment A Page 21 Exhibit B OPERATIONAL AGREEMENT Between Chula Vista Police Department and South Bay Community Servic~s This Operational Agreement stands as evidence thai the Chula Vista Police Department (CVPD) and South Bay Community Services (SBCS) intend to work together toward the mutual goal of providing maximum avallabie assistance for crime victims residing in tile City of Chula Vista Both agencies believe tilat implementation of the Domestic Violence Response and Advocacy applicetlon, es described herein, will furiherthis goal To this end, each agency agrees 10 participate in the program, if selected for funding, by coordinating/providing the following services: The Chuia Vista Police Department project will closely coordinate the following services wilh South Bay Community Services through. SBCS Project staff being readily available to the Chula Vista Police Department for service provision; Regularly scheduled meetings once per monlh between SBCS' Family Wellness and Self Sufficiency Depariment Director and CVPD's Family Protection Unit Investigator to discuss strategies, timelables and implamentalion of mandated services . Specificaily: Chula Vista Police Department agrees to: . Act as iead administrative and fiscal agent for the project; Facilitate the provision of domestic violence training for CVPD officers by SBCB staff; Prompt notification of SBCS Community Assessment Workers by officers al the scene of domestic violence; Participation in joint meetings to ensure optimal project effectiveness end uliiization of resources; Provision of information for evaluation and measurement or services South Bay Community Services agrees to: Provide 24 hourf7days a week services of the Community Assessment wod(ers far the Domestic Vioience Response Team, in response to cails from CVPD ohicers; Provide and coordinate a continuum of services to the families identified by the project which may include: crisis intervention, assessment, case management, individual group and family counseling, confidential sheiter or transition housing, and a temporary restraining order clinic; .. Provide cooperation and Information for evaluation and measurement of components of the project Upon award of grant funds, the Chula Vista Police Department wiii pay a Quarterly amount of $19,814 to South Bay Community Services for the delivery of services ouliined In lhis Operational Agreement A total of $79,256 of grant funds will be transferred from the Chula Vista Police Department to South Bay Community Services during the grant period of January 1, 2008 to December 31, 2008 We, Ihe undersigned, as authorized represen Community Services, do tJe(eby approve this d ~p(~ Ri hard P Emarson, Chief of Police For Chula Vista Police Department 315 Fourth Avenue Chula Vista, CA 91910 Date .2j&/OA So~th Bay Community Services 1124 Bay Boulevard, Suite D Chula Visla, C~~ Date OJ 6. :J j / CITY OF CHUlA VISTA 6-25 RESOLUTION NO. 2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING $83,219 FROM THE GOVERNOR'S OFFICE OF EMERGENCY SERVICES AND APPROPRIATING FUNDS THEREFOR, WAIVING THE CONSULTANT SELECTION PROCESS AND APPROVING THE CONTRACTUAL AGREEMENT WITH SOUTH BAY COMMUNITY SERVICES TO PROVIDE SERVICES FOR DOMESTIC VIOLENCE CASES WHEREAS, the Governor's Office of Emergency Services has awarded a grant to the Chula Vista Police Department for the Domestic Violence Response Team; and WHEREAS, the Police Department is seeking to waive the consultant selection process as South Bay Community Services has partnered with the Police Department since 1985 and tailored their programs to meet the needs of the City; and their experience, qualifications and community presence make them a unique service provider; and WHEREAS, acceptance of this grant amendment will offset the cost of subcontracting services of two South Bay Community Services Advocates for the period of January 1,2008, to December 31, 2008; and WHEREAS, the services provided by the two South Bay Community Services Advocates are contingent upon available grant funding to support the program; and WHEREAS, the Domestic Violence Response Team will provide advocacy, cnSIS intervention, resource and referral assistance, emergency assistance and/or restraining order assistance to the community. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby accept $83,219 from the Governor's Office of Emergency Services for the Domestic Violence Response Team. BE IT FURTHER RESOLVED THAT the City Council does hereby amend the Police Grant Fund budget by appropriating $41,609 to the fiscal year 2007/2008 budget and direct staff to include $41,610 in the Police Grant Fund fiscal year 2008/2009 budget. BE IT FURTHER RESOLVED THAT the Mayor of the City of Chula Vista is hereby authorized to execute the Agreement on behalf of the City of Chula Vista. Presented by Approved as to form by ..Z~\.'i (1\"v~ \0~;d,'U\\ - " Ann Moore City Attorney Richard P. Emerson Police Chief J:\AltomeyIRESO\POLlCE\SOUlh Bay Community Srvcs_ 06.03-08.doc 6-26 CITY COUNCIL AGENDA STATEMENT ~('r:::.. CITY OF _!11 (HULA VISTA JUNE 3, 2008, Item r CITY COUNCIL, REDEVELOPMENT AGENCY AND PUBLIC FINANCING AUTHORITY- A. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA DECLARING THE INTENT TO REFUND THE 2000 TAX ALLOCATION BONDS: AUTHORIZING AND DIRECTING THE ISSUANCE A.ND SALE OF NOT TO EXCEED $24 MILLION PRINCIPAL AMOUNT 2008 TAX ALLOCATION REFUNDING BONDS FOR THE MERGED REDEVELOPMENT PROJECT: APPROVING DOCUMENTS; AUTHORIZING OFFICIAL ACTIONS AND PROVIDING FOR OTHER MATTERS PROPERLY RELATING THERETO (4!5THS VOTE REQUIRED) ITEM TITLE: B. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING A LOAN REPA YMENT FROM THE REDEVELOPMENT AGENCY TO THE GENERAL FUND (4!5THS VOTE REQUIRED) C. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE SALE OF NOT TO EXCEED $24 MILLION PRINCIPAL AMOUNT 2008 TAX ALLOCATION REFUNDING BONDS FOR THE MERGED REDEVELOPMENT PROJECT D. RESOLUTION OF THE CITY C01JNCIL OF THE CITY OF CHULA VISTA REGARDING ITS INTENTION TO REIMBURSE EXPENDITURES FROM THE PROCEEDS OF TAX-EXEMPT OBLIGATIONS E. RESOLUTION OF THE BOARD OF DIRECTORS OF THE CHULA VISTA PUBLIC FINANCING AUTHORITY AUTHORIZING PURCHASE AND SALE OF TAX ALLOCATION REFUNDING BONDS FOR THE CHULA VISTA MERGED REDEVELOPMENT PROJECT AND APPROVING CERTAIN RELATED DOCUMENTS AND AUTHORIZING CERTAIN OTHER ACTIONS (4!5THS VOTE REQUIRED) SUBMITTED BY: DIRECTOR OF FINANCEJ/~ REVIEWED BY: CITY MANAGER ST -k,r D.-t:.G, 4/5THS VOTE: YES ~ NO c=J 7-1 JUNE 3, 2008, Iteml Page 2 of5 SUMMARY As part of the Fiscal Year 2007/2008 budget balancing process, the Finance Department has been exploring various debt-refunding options, which would generate cash flow savings to the General Fund, With the assistance of Harrell & Co. and EJ. De La Rosa. the following debt refunding option was identified and presented to the City Council on January 22, 2008. - ENVIRONMENTAL REVIEW Not Applicable. RECOMMENDATION A. The Redevelopment Agency adopt Resolutions A and B. B. The Council adopt Resolutions C and D. C. The Public Financing Authority adopt Resolution E. BOARDS/COMMISSION RECOMMENDATION The Finance Director/Treasurer presented the financing plan to the Chula Vista Redevelopment Corporation Board members at the March 13, 2008 meeting at which time the CVRC recommended that the City proceed v.ith the refunding and raising of funds to repay a portion of the outstanding General Fund loan. DISCUSSION As part of the Fiscal Year 2007/2008 budget balancing process, the Finance Department has been exploring various debt-refunding options, which would generate cash flow savings to the General Fund. The recommended refunding would provide for a loan repayment from the Redevelopment Agency of approximately $4.3 million as well as funding for street improvements of approximately $800,000. 2000 Tax Allocation Bonds (TAB) - Refunding In May 2000, the City/Redevelopment Agency approved the issuance of$17.0 million in Merged Project Area Tax Allocation Bonds to repay outstanding interfund loans, raise capital for projects, eliminate deficit balances in the project areas as well as restructure cash flow to provide sufficient funding for staff and operating costs on an ongoing basis. As of June 30, 2007, there was $15.5 million in outstanding bonds with a net interest cost of 5 .32% and a final maturity date of 2030. Based on the financial analysis conducted by the financing team, it appears that through the proposed refunding the Agency could improve cash flow to the Redevelopment Agency by approximately $250,000 armually over the next 6 years. The improved cash flow would be timely because the Legislative Analyst's Office has proposed to the Legislature that it take $1.2 billion from Redevelopment Agencies over the next 5 years to offset the State's obligation to the schools in order to help reduce the State's budget deficit. This proposed refunding would help mitigate the impact of the proposed ERAF payments. The new debt would be an estimated $21.01 million with an estimated net interest cost of 4.75% and the final maturity date extended to 2036, which would take advantage of the entire life of the project area. After refinancing the 2000 Bonds, there would be net bond proceeds of $4,532,000 to be allocated as follows. 7-2 JUNE 3, 2008. Item~ Page 3 of 5 Sources and Use of Funds 2000 TAB Refunding/Restructuring Source of Funds Tax Allocation Bond Proceeds $21,013,000 Use of Funds 2000 Bonds Escrow Fund Increase in Reserve Fund $15,395,000 $300,000 Costs of Issuance! Underwriter! Bond Insurance Contingency Street Improvements General Fund PFDlF. Obligation General Fund Loan Pmt to PFDlF' Reimburse PFDlF for Capital Projects Sub- Total (Net Bond Proceeds) Total $779,000 $7,000 $800,000 $1,337,031 $866,000 $1,528,969 $4,532,000 $21,013,000 RDA Street Improvements On April 4, 2006, Congressman Bob Filner notified the City of Chula Vista that the City was awarded $300,000 in SAFETEA-LU a federal grant. The purpose of the grant is to enhance public infrastructure and provide amenities to support key catalyst projects and future redevelopment activity and to increase walkability and multi-modal transportation in the Third Avenue corridor between E Street and H Street. The Third Avenue Streetscape Masterplan will respond to the urban form objectives and development regulations and design guidelines found in the City's General Plan and Urban Core Specific Plan. This is a "matching fund" program, which requires that the City provide a portion of the funding to complete the project. The implementation of the Third Avenue Streetscape Masterplan will consist of two phases. The first is to incorporate community outreach and design recommendations culminating in the Plan. The second phase will be the construction of the capital improvements. The Redevelopment Agency is proposing to use $800,000 for the second phase of the plan and will retwn at a later date for the appropriation. RDA Loan Repayment to General Fund As of June 30, 2007, the Redevelopment Agency owed the General Fund $25.4 million related to the Town Centre II Certificates of Participation. Beginning in Fiscal Year 2007/2008 the debt service payments have been paid directly by the Redevelopment Agency's Merged Project Area. In order to reduce the outstanding loan and to assist in relieving the City's fiscal stress a loan repayment of $4.3 million ($3.7 million 2000 TABS and $550,000 from the RDA reserves) from the Redevelopment Agency to the General Fund is recommended. ] Fund to payoff outstanding OF loan from PFDIF for its share of the Animal Shelter Project - current outstanding principal $866,000 approved 3/7/2000. 7-3 JUNE 3, 2008, Iteml Page4of5 Flow of Funds RDA Loan Repayment to General Fund Loan Repayment from RD A Reserves General fund PfDIf Obligation General Fund Loan Payment to PFDIf' Reimburse PFDIf for Capital Projects Loan Repayment from 2000 TABS $550,000 $1,337,031 $866,000 $1,528,969 $3,732,000 Total Loan Repayment to General Fund $4 282 000 For federal tax purposes bond proceeds need to be spent within three years. Repayment of Agency interfund loans are not treated as expenditures of bond proceeds, for those purposes, expenditures of bond proceeds will be tracked through the timely capital expenditures of repaid funds. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council, Redevelopment Agency and Public Financing Authority members and has found a conflict exists with Council/Agency/Authority members Jerry Rindone, Rudy Ramirez, John McCann and Steve Castaneda who having holdings within 500 feet of the boundaries of the property. which is the subject of this action. The Council Member conflicts are as follows: 1. Council Members McCann, Rindone. and Ramirez have conflicts with Resolutions A, B, C,D&E. 2. Council Member Castaneda has conflicts with Resolutions A, C, D and E. FISCAL IMP ACT Redevelopment Agency Fund There would be a net impact to the RDA reserves of $550,000 in fiscal year 2007/2008 but a cash flow savings over the next six years of$1.5 million due to the refunding of the 2000 TABS. The overall refunding would result in a 1 % net present value cost to the Redevelopment Agency of$125,000 due to the up front cash flow savings and the extension of the maturity. General Fund There would be a positive impact to the General Fund reserves of $550,000 m Fiscal Year 2007/2008 related to the RDA loan repayment. The 2000 TAB refunding would also provide funds for the General Fund obligation related to the PFDIF of approximately $1.3 million. This would save the General Fund approximately $786,000 in interest cost by avoiding an interfund loan. In addition, the payment of the outstanding loan from the PFDIF to the General Fund related to the Animal Shelter would save the General Fund $377,000 in interest costs over the remaining term of the loan (12 years) and provide for budgetary savings of$103,517 beginning in Fiscal Year 2008/2009. 'fund to payoff outstanding GF loan from PFDlF for its share of the Animal Shelter Project - current outstanding principal $866,000 approved 3/712000. 7-4 JUNE 3, 2008, Item-3::.- Page 5 of 5 Public Facilities Development Impact Fund !PFDIF) There would be a positive impact to the PFDIF fund in Fiscal Year 2007/2008 of $3.7 million ($1.3 million General Fund Obligations, $0.9 million Payment of Animal Shelter Loan, $1.5 million in reimbursement for PFDIF projects), which would assist in mitigating the projected cash deficit of $6.0 million at the end of fiscal year 2007/2008. Mitigating the projected cash deficit in the PFDIF fund is critical in order to ensure that the PFDIF allocable share of existing bonded debt service can continue to be met without impacting the General Fund reserves or having to pursue other interfund loan options. 2000 TAB Costs ofIssuance All costs of issuance, including the cost of the underwriter, bond counsel, disclosure documents etc. will be paid from the bond proceeds. The fees are summarized as follows: . Financial Advisor - A fee of $77,000 is contingent on refunding of the bonds plus expenses. . UndernTiter - The fee is .82% of the par amount of the bonds or $ 1 73,000 based on an estimated bond sizing of$21.01 million. . Bond Counsel - A fee of approximately $80,000, which includes $30,000 for disclosure counsel work, based on an existing two-party agreement. . Bond Insurance - $396,000 . Other Costs - $53,000 (rating fees, printing, etc.) A TT ACHMENTS Attachment A - Flow of Funds Attachment B - Debt Service Schedules 2000 TAB Refunding Attachment C - Staff Report 3/7/2000 - Approving the Loan to the General Fund Attachment D - Amortization Schedule for Outstanding Loan - Animal Shelter Prepared by: lviaria Kachadoorian, Director of Finance/Treasurer, 7-5 r- ..... I 0> ~ 2000 TAB Refunding - Net Bond Proceeds 2008 Tax Allocation Bond Refunding Net Proceeds ($4.5 million) I ~ ~ RDA Street Loan Pmt. to Improvement General Fund Projects ($3.7million) ($800,000) I . . . Fund PFDIF Project GF obligation GF Loan Pmt. to improve cash flow towards PFDIF PFDIF Animal ($1.5 million) ($1.3 million) Shelter ($0.9 million) :>0- -1 -1 :>0- n ::r: 3: fTl :z: -1 :>0- MERGED REDEVELOPMENT PROJECT CASHFLOW Existing Debt Service Net 2000 2000 Reserve Repay 2003 Parking 2003 Reserve Available FYE Tax Bonds Earnings/ ERAF COP Earnings/ Balance June 30 Increment Debt Service Release Loan Payments Release for Admin 2008 4,816,600 (1,204,000) 60,000 (225,000) (1,081,630) 37,000 2,402,970 2009 4,961,800 (1,201,000) 60,000 (225,000) (1,061,420) 26,000 2,560,380 2010 5,113,400 (1,201,000) 60,000 (225,000) (1,063,390) 26,000 2,710,010 2011 5,263,400 (1,201,000) 60,000 (225,000) (1,061,370) 26,000 2,862,030 2012 5,421,000 (1,203,000) 60,000 (225,000) (1,071,175) 877,000 3,858,825 2013 5,578,600 (1,205,000) 60,000 (225,000) (227,700) 227,700 4,208,600 2014 5,740,800 (1,204,000) 60,000 (225,000) 4,371,800 2015 5,684,800 (1,142,000) 60,000 (225,000) 4,377,800 2016 5,823,800 (1,141,000) 60,000 (125,000) 4,617,800 2017 5,965,200 (1,138,000) 60,000 4,887,200 2018 6,112,600 (1,139,000) 60,000 5,033,600 ..... 2019 6,259,600 (1,142,000) 60,000 5,177,600 I 2020 6,408,400 (1,139,000) 60,000 5,329,400 ..... 2021 6,562,400 (1,139,000) 60,000 5,483,400 2022 6,720,200 (1,141,000) 60,000 5,639,200 2023 6,877,800 (1,142,000) 60,000 5,795,800 2024 7,039,600 (1,140,000) 60,000 5,959,600 2025 7,206,200 (1,141,000) 60,000 6,125,200 2026 7,375,600 (1,140,000) 60,000 6,295,600 2027 7,546,800 (1,141,000) 60,000 6,465,800 2028 7,725,400 (1,139,000) 60,000 6,646,400 2029 7,903,800 (755,000) 449,000 7,597,800 2030 8,087,600 (753,000) 753,000 8,087,600 2031 8,272,600 8,272,600 :P 2032 7,466,400 7,466,400 --l --l 2033 7,646,200 7,646,200 :P n 2034 7,822,600 7,822,600 :r: 3: 2035 7,986,000 7,986,000 fTl :z 2036 8,150,800 8,150,800 --I co 194,897,200 (27,092,313) 2,522,000 (2,125,000) (6,873,965) 1,297,700 161,268,423 5/6/2008 MERGED REDEVELOPMENT PROJECT CASHFLOW Debt Service - Refunding, New Money to Repay City Loan + Streets, Extend Term to 2036 Net Refunding 2000 Reserve Repay 2003 Parking 2003 Reserve Available FYE Tax Bonds Earnings/ ERAF COP Earnings/ Balance June 30 Increment Debt Service Release Loan Payments Release for Admin 2008 4,816,600 (989,000) 60,000 (225,000) (1,081,630) 37,000 2,617,970 2009 4,961,800 (944,000) 60,000 (225,000) (1,061,420) 26,000 2,817,380 2010 5,113,400 (944,000) 60,000 (225,000) (1,063,390) 26,000 2,967,010 2011 5,263,400 (944,000) 60,000 (225,000) (1,061,370) 26,000 3,119,030 2012 5,421,000 (944,000) 60,000 (225,000) (1,071,175) 877,000 4,117,825 2013 5,578,600 (944,000) 60,000 (225,000) (227,700) 227,700 4,469,600 2014 5,740,800 (1,509,000) 60,000 (225,000) 4,066,800 2015 5,684,800 (1,506,000) 60,000 (225,000) 4,013,800 2016 5,823,800 (1,508,000) 60,000 (125,000) 4,250,800 2017 5,965,200 (1,508,000) 60,000 4,517,200 2018 6,112,600 (1,508,000) 60,000 4,664,600 2019 6,259,600 (1,506,000) 60,000 4,813,600 -.I 2020 6,408,400 (1,509,000) 60,000 4,959,400 I 2021 6,562,400 (1,505,000) 60,000 5,117,400 co 2022 6,720,200 (1,505,000) 60,000 5,275,200 2023 6,877,800 (1,507,000) 60,000 5,430,800 2024 7,039,600 (1,508,000) 60,000 5,591,600 2025 7,206,200 (1,505,000) 60,000 5,761,200 2026 7,375,600 (1,506,000) 60,000 5,929,600 2027 7,546,800 (1,509,000) 60,000 6,097,800 2028 7,725,400 (1,506,000) 60,000 6,279,400 2029 7,903,800 (1,506,000) 60,000 6,457,800 2030 8,087,600 (1,508,000) 60,000 6,639,600 2031 8,272,600 (1,507,000) 60,000 6,825,600 2032 7,466,400 (1,504,000) 60,000 6,022,400 :P 2033 7,646,200 (1,509,000) 60,000 6,197,200 -< -< 2034 7,822,600 (1,506,000) 60,000 6,376,600 :P co 2035 7,986,000 (1,509,000) 60,000 6,537,000 :r: 3: 2036 8,150,800 (1,508,000) 1,508,000 8,150,800 tT1 :z -< 194,897,200 (41,572,313) 3,248,000 (2,125,000) (6,873,965) 1,297,700 147,514,423 "" 5/6/2008 ATTACHMENT C COUNCIL AGENDA ITEM STATEMENT Item 1 Meeting Date 3/7/2000 ITEM TITLE: REVIEWED BY: Resolution Accepting bids and awarding contract for the "Chula Vista Animal Care Facility, at 130 Beyer Way in the City ofChula Vista, CA (GG-158)" project to C & S Doctor, Inc., in the amount of$l,904,856,00, appropriating an additional $70,927 of Public Facilities Development Impact Fee-Corporation Yard (pFDIF-Corp Yard) funds, and appropriating $1,181,960 ofPFDIF-Corp Yard funds as a loan to the General Fund, Director of Public Works ~ Police Chief City Manager ~t'> (4/5ths Vote: YesX No-J SUBMITTED BY: On February 9, 2000, the Director of Public Works received sealed bids for the "Chula Vista Animal Care Facility 130 Beyer Way, in the City ofChula Vista, CA (GG-158)" project. The work to be done includes construction ofan animal shelter, including earthwork, on and off-site utilities, paving, fire protection, mechanical, electrical and incidental work. RECOMMENDATION: That Council approve a resolution accepting bids and awarding the contract for the "Chula Vista Animal Care Facility, at 130 Beyer Way in the City ofChula Vista, CA (GG-158)" project to C & S Doctor, Inc., in the amount $1,904,856.00, appropriating an additional $70,927 of Public Facilities Development Impact Fee-Corporation Yard (PFDIF-Corp Yard) funds, and appropriating S 1,181 ,960 of PFDIF -Corp Yard funds as a loan to the General Fund, to be repaid Over a term of 20 years at the interest rate earned by the City's Investernnt Pool. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. BACKGROUND: On July IS, 1997, the City Council approved the construction of a new Animal Shelter and appropriated funds for the design and construction documents required to build the facility. Subsequently, the City purchased property in the Southwest Redevelopment Area at 4th Avenue and Beyer. On September 15,1998, the City Council approved il contract with Sutro and Company for financial advisory services to assist in formulating and implementing a financing plan for the anintal care facility and other capital improvement projects. On October 6, 1998, the City Council approved a contract with architectural firms Jackson and Ryan from Texas, and Eric Davy from San Diego for the design of the new animal shelter in south Chula Vista, Design of the new facility is nearing completion and construction is expected to begin later this year, 7-9 Page 2, Item Meeting Date 3/7/2000 1 On May 18, 1999, the City Council approved the preliminary financing plan and proposed design for construction of the new animal care facility. On January 25, 2000, the City Council approved the rejecting of bids and the re-advertisement of the project as a result of inconsistencies with the bid proposals, per Resolution No. 2000-026. DISCUSSION: The existing animal shelter is currently outdated and under capacity to serve the City's projected population growth. The animal shelter is being relocated from Otay Valley Road to the intersection of Beyer Way and Fourth Avenue. The project is to construct a 7,800 square foot building with offices and medical facilities. The animal shelter will include 84 kennel spaces and petting areas. The work generally includes grading of the existing site, construction of the building, landscaping and the construction of all appurtenances as may be necessary to render the project complete and workable, however equipment and furniture costs are not included. A pre-bid meeting was held on November 2, 1999, in order to review the contract requirements and to receive questions regarding the specifications in the bid documents. The contractors present raised several concerns during the meeting, and issues were addressed through Addendums #1 and #2. On December I, 1999, fourteen (14) sealed bid proposals for the project were received. However, based on the bid proposals submitted by the Contractors, it was apparent that the Contractors did not fully understand the requirements of the bid alternates. Due to the inconsistencies all bids were rejected. The project was re-advertised on January 29, 2000 with modifications to the bid specifications and the deletion of five of the six the bid alternates. Bids were received from 12 contractors as follows: Bid Amount I $1,904,856.00 I I Contractor 11. C & S Doctor, Inc., San Diego, CA 2. Golden Springs Construction Inc., Santee, CA I 1,975,877.00 I 3. EMS, Carlsbad, CA 1,977,000.00 4. Universal Construction & Maintenance, San Pedro, CA 2,010,000.00 5. Kenai Construction Company Inc., San Diego, CA 2, I 08,000.00 6. KV AAS Construction, San Diego, CA 2,125,000.00 7. Greer Construction Company, San Diego, CA 2,149,000.00 8. ALCO Construction Inc., Laguna Niguel, CA 2,157,013.00 9. Mesa Construction Projects Inc., San Diego, CA 2,189,293.00 7-10 Page 3, Item ? Meeting Date 31712000 I Contractor Bid Amount 10, The Augustine Company, San Diego, CA 2,270,277.00 11, Har Construction Inc., National City, CA 2,282,000,00 12, Erickson-Hall Construction Company, Escondido, CA 2,294,000,00 Staff received bids for the proposed work. The low bid, submitted by C & S Doctor, Inc., is below the Architect's estimate of$2,100,000.00 by $195,144.00 or 9.3%. The Architect's estimate was based on bids received for similar proj ects, It is our opinion that staff received adequate bids for the proj ect. The bid prices from the previous fourteen (14) bid proposals that were rejected ranged from $1.8 million to $2.7 million with a difference of $900,000 compared to a range difference of $390,000 for the 12 recent bidders. Although the $1,904,856 bid price of the contract increased $105,900 from the previous bid that was rejected ($1,799,000), stafffeels that the most recent bids reflected a more quantified bid, based on the more narrow range of the bid proposals. The project specifications required that all contractors have the relevant experience in doing a silnilar project. We have contacted the references provided by C & S Doctor, Inc, and determined that they have the relevant experience necessary to complete this project as defined in the specification. In addition, we have verified their license and the Subcontractors and determined that it is current and in good standing. We therefore recommend that the contract for the "Chula Vista Animal Care Facility, at 130 Beyer Way in the City ofChula Vista, CA (GG-158)" project be awarded to C & S Doctor, Inc., San Diego, CA. C & S Doctor, Inc, is currently completing work on the construction of the Otay Recreation Center, located at 3554 Main Street. The performance of C & S Doctor, Inc, on the project has been satisfactory, despite working simultaneously on a similar project with Fallbrook High School for the construction of a gymnasium, The construction of the Animal Care Facility is to begin work on March 27, 2000 and last for 180 working days, The project is scheduled to be completed on December 11, 2000, Included in the construction oftbe Animal Care Facility are three (3) banks of28 kennels eacb for a total of 84 kennels, Current findings indicate that there will be enough capacity to accommodate the current animal volume. The City will continue to pursue opportunities that will enable the sale of its animal control services to other jurisdictions, Should sufficient revenues materialize through contract with other cities or other opportunities, staff will return to Council with a recommendation to complete a fourth bank of kennels. Disclosure Statement A copy of the contractor's Disclosure Statement is attached, 7-11 Page 4, Item 7 Meeting Date 3/7/2000 Prevailing Wa~e Statement This project is funded through PFDIP-Corp Yard. Based on the current project funding guidelines, no prevailing wage requirements were necessary as part of the bid documents. Environmental Status The City's Environmental Review Coordinator has reviewed the work involved in this project. A Notice of Determination was approved on April 27, 1998. Fin.n.cial Statement FUNDS REQUIRED FOR CONSTRUCTION A. Contract Amount $1,904,856.00 C. Contingencies (10%) $190,000.00 D. Material Testing $25,000.00 E. Staff Cost (Design, Inspection, Administration) $50,000.00 TOTAL FUNDS REQUIRED FOR CONSTRUCTION $2,169,856.00 FUNDS AVAILABLE FOR CONSTRUCTION A. Animal Shelter Expansion/Relocation - 2109158563 $870,000.00 (GG-158) - Projects Accounts B. Animal Shelter Expansion/Relocation In - Kind General Fund $33,475.00 C. Additional In-Kind General Fund Services Needed $81,525.00 D. Additional Appropriation from the PFDIF-Corporation Yard Fund $70,927.00 E. Loan from Public Facilities DIF-Corp Yard to General Fund $1,113,929.00 TOTAL FUNDS AVAILABLE FOR CONSTRUCTION $2,169,856,00 FISCAL IMPACT: The Animal Shelter is included as a component of the Corporation Yard in the Public Facilities Development Impact Fee (PFDIF). Listed below are the estimated Animal Shelter costs, followed by the funding sources and amounts needed for the project. In the 1999-00 CIP budget, the estimated construction costs were $2,021,838, which is $148,081 lower than the current projected construction costs of$2,169,856. The costs are higher due to having a 10% versus 5% contingency ($95,000 additional), a $15,000 increase in anticipated material testing costs, and approximately $40,000 in higher staff costs. Additional funding of$68,031 is needed also to cover the City's share of the entire project costs, and not just for the construction cost. 7-12 Animal Shelter Costs Land Acquisition Architectural Services Project Management Staff Services General Administration FurniturelEquipment Construction (from previous table) TOTAL COSTS Animal Shelter Funding Development Share (PFDIF): Land Acquisition (100%) Remaining Costs (48.5%) TOTAL PFDIF funds appropriated Additional funds to appropriate TOTAL PFDIF Share City Share (General Fund): Land Acquisition (0%) Remaining Costs (51.5%) TOTAL General Fund In-Kind Services Additional In-Kind Services Additional funds to appropriate TOTAL General Fund Share TOTAL FUNDING Page 5, Item 7 Meeting Date 3/7/2000 $ 670,000 $ 174,000 $ 65,000 $ 31,350 $ 78,162 $2.169.856 $3,188,368 $ 670,000 $1.221.408 (3,188,368-670,000 = 2,518,368 x .485) $1,891,408 $1,820,481 $ 70.927 $1,891,408 $ 0 $1.296.960 (2,518,368 x .515) $1,296,960 $ 33,475 $ 81,525 $1.181.960 (As a loan from PFDIF to Gen Fund) $1,296,960 $1,891,408 $1.296.960 $3,188,368 As shown in the funding costs, an appropriation of$70,927 from the PFDIF-Corp Yard is needed to fund the remaining Development Share obligation. An additional $81,525 is shown as General Fund In-Kind Services for staff costs associated with design, inspection, and administration, as well as project management. The total General Fund In-Kind Services is $115,000, with $50,000 for the Public Works staff costs, and $65,000 for the Police staff project management costs. In addition, an appropriation of an additional $1,181,960 from the PFDIF-Corp Yard is needed, as a loan to the General Fund, to cover the City's share of the cost. (Of this amount, $1,113,929 is needed for the share of the construction cost, per the table on page 3.) The Finance Director and Special Projects 7-13 Page 6, Item 7 Meeting Date 3/7/2000 Manager have recommended that the General Fund portion be funded with a loan from the PFDIF- Corporation Yard component, to be paid back, with interest, over a 20-year period. The annual impact to the General Fund over the 20 years would be roughly $100,000 per year, including a total interest cost of $864,416 over the term of the loan.. This proposal is consistent with earlier actions whereby the General Fund loaned funds to the PFDIF, and was paid back with interest. This proposal is different from the project submittal in the 1999-00 ClP Budget, where it was initially proposed to fund the City share with bond proceeds, to be paid back, with interest, from Residential Construction Tax funds. By using an inter-fund loan, the project will have no bond issuance costs and lower financing costs, thereby reducing the financial impact to the City and the PFDIF. Exhibit: Contractor's Disclosure Statement H:\HOME\ENGlNEER\AGENDA\GG 158BAS. WPD March 1,2000 (5:00pm) 7-14 Loan Amortization Schedule ...... I ~ 0'1 loan amount Annual interest rate Loon period in years Number of payments per year Start date of loan Optional extra payments Enter values I Loan summa 1- - Scheduled payment i Scheduled number of payments Actual number of payments Total early payments Total interest Lender name: I GF Animal Shelter loan from Corp Yard DIF ~ Reso 2000-077 Pm! No. Payment Dote 1 2 3 4 5 o 7 8 9 10 11 12 13 14 15 10 17 18 19 20 03/07/2001 $ 03/07/2002 03/07/2003 03/07/2004 03/07/2005 03/0712006 03/07/2007 03/07/2008 03/07/2009 03/07/2010 03/07/2011 03/07/2012 03/07/2013 03/07/2014' 03/07/2015 03/07/2016 03/07/2017 03/07/2018 03/07/2019 03/07/2020 Beginning Balance 1,181,960,00 $ 1.150,021.87 1,116,149.58 1,080,225.97 1,042,126,83' 1,001,720.41 958,866,97 913,418,33 865,217,33 814,097.20 759,881,37 702,382,10 041,400,80 570,72QAl 508,135.34 435,390.39 358,240.01 276,417.40 189,639.62 97,606.57 Scheduled Payment 103,517.62 $ 103,517.62 103,517.62 103,517.02 103,517.62 . 103,517.62 103,517,02 103,517.62 103,517,62 103,517,62 103,517,62 103,517.62 103,517,62 103,517.62 103,517.62 103,517.62 103,517.62 103,517.62 103,517.62 103,517.62 Extra Payment Total Payment $ 103,517.62 $ 103,517.62 103,517.02 103,517.62 103,517.62 103,517.62 103,517.62 103,517.62 103,517.62 103,517.62 103,517.62 103,517.62 103,517.62 103,517.62 103,517.62 103,517,62 103,517,62 103,517.62 103,517.62 97,606.57 Principal 31,938.13 $ 33,872.30 35,923,61 38,099.14 40,406.42 42,853.44 45,448.64 48,201.01 51,120.06 54,215.89 57,499.21 60,981.36 64,674.3~ 6~,591.07 72,744.95 77,150.38 81,822.61 86,777.79 92,033.05 91,695,52 Interest 71,579.50 69,645,32 67,594.02 65,418.48 63,111.io 60,664.19 58,068.98 55,316.61 52,397.56 49,301.73 46,018.42 42,536.20 38,843.23 34,920.55 30,772.68 26,367.24 21,695.02 10,739,84 11,484,58 5,911,05 Ending Cumulative Balance Interest $1,1 50,021.87 1,116,149.58 1,080,225.97 1,042,126.83 1,001,720.41 958,806.97 913,418,33 865,217,33 814,097.26 759,881.37 702,382,16 641,40080 576,726.41 508,135.34 435,390,39 358,240,01 276,417.40 189,639.62 . 97,606.57 0,00 $ 71,579.50 141,224.82 208,818.84 274,237.33 337,348,53 398,012,71 456,081. 70 511,398,31 563)95,87 013,097.60 659,116,02 701,652.28 740,495,52 775,422,07 806,194.74 832,561.99 854,257.00 870,996,84 882,481.41 888,392.47 :P -i -i :P n :r: 3: m :z -i c::> RDA RESOLUTION NO. 2008- RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA DECLARING THE INTENT TO REFUND THE 2000 TAX ALLOCATION BONDS; AUTHORIZING AND DIRECTING THE ISSUANCE AND SALE OF NOT TO EXCEED $24 MILLION PRINCIPAL AMOUNT 2008 TAX ALLOCATION REFUNDING BONDS FOR THE MERGED REDEVELOPMENT PROJECT; APPROVING DOCUMENTS; AUTHORIZING OFFICIAL ACTIONS AND PROVIDING FOR OTHER MATTERS PROPERLY RELATING THERETO WHEREAS, the Redevelopment Agency of the City of Chula Vista (the "Agency") is a redevelopment agency duly created, established and authorized to transact business and exercise its powers, all under and pursuant to the provisions of the Community Redevelopment Law of the State of California (Part I of Division 24 of the Health and Safety Code of the State of California, commencing with Section 33000) (the "Redevelopment Law"), including the power to issue bonds for any of its corporate purposes, including the purpose of refunding bonds previously issued by the Agency; and WHEREAS, a Redevelopment Plan for the Town Centre II Redevelopment Project Area in the City of Chula Vista (the "Town Centre II Redevelopment Project") has been adopted and subsequently amended in compliance with all requirements of the Redevelopment Law; and WHEREAS, a Redevelopment Plan for the Otay Valley Road Redevelopment Project Area in the City of Chula Vista (the "Otay Valley Road Redevelopment Project") has been adopted and subsequently amended in compliance with all requirements of the Redevelopment Law; and WHEREAS, a Redevelopment Plan for the Southwest Redevelopment Project Area in the City of Chula Vista (the "Southwest Redevelopment Project") has been adopted and subsequently amended in compliance with all requirements of the Redevelopment Law; and WHEREAS, by ordinances of the City Council of the City of Chula Vista, the City has duly taken action to merge the Town Centre II Redevelopment Project, the Otay Valley Road Redevelopment Project and the Southwest Redevelopment Project into a single project area for financial purposes pursuant to the Redevelopment Law, and as so merged and subsequently amended in compliance with all requirements of the Redevelopment Law, such project areas are referred to herein as the Merged Redevelopment Project; and WHEREAS, the Agency has previously issued its $17,000,000 principal amount 2000 Tax Allocation Bonds (Merged Redevelopment Project) (the "2000 Bonds") pursuant to an Indenture of Trust by and between the Agency and U.S. Bank National Association (the "2000 Indenture"); and J:\AttomeyIRESOIFINANCE\AUlhorizin!l issuance of Bonds (Agencyl_06-03-08.doc DOCSOC/1268583v7/024212-00 1 0 7-16 RDA Resolution No. 2008- Page 2 WHEREAS, in order to take advantage of prevailing market conditions and/or restructure debt service for cash flow purposes, the Agency has determined at this time to issue its not to exceed principal amount $24 million Redevelopment Agency of the City of Chula Vista, 2008 Tax Allocation Refunding Bonds (Merged Redevelopment Project) (the "2008 Bonds") pursuant to the provisions of the Redevelopment Law for the purpose of providing funds to refund the 2000 Bonds and, in an amount up to $5 million, to reimburse costs of capital relating to certain certificates of participation of the City, to repay certain loans made by the City to the Agency, to payor repay the costs of redevelopment activity of the Agency for the Merged Redevelopment Project, or other costs of financing and refinancing the Merged Redevelopment Project; and WHEREAS, the 2008 Bonds shall be secured by a pledge of available tax increment of the Agency for the Merged Redevelopment Project, and exclusive of all tax increment chargeable to such housing fund to the extent not expressly pledged to the repayment of the 2008 Bonds in the Indenture, and on a basis junior to certain existing obligations of the Agency to the extent set forth in the Indenture; and WHEREAS, proceeds of the 2008 Bonds will be used (i) to payor repay costs of redevelopment activity of the Merged Redevelopment Project; (ii) to refund the 2000 Bonds; (iii) to reimburse costs of capital relating to certain certificates of participation of the City, (iv) to repay certain loans made by the City to the Agency, (v) to establish a reserve account for such 2008 Bonds; and (vi) to pay a portion ofthe costs of issuing such 2008 Bonds; and WHEREAS, (a) the 2008 Bonds shall be sold to the Chula Vista Public Financing Authority for concurrent resale to E.J. De La Rosa & Co., Inc. (the "Underwriter") pursuant to a Bond Purchase Agreement and a Preliminary Official Statement for the 2008 Bonds, in accordance with Article 4 of Chapter 5 of Division 7 of Title I of the California Government Code (the "JPA Law") (b) a portion of the net proceeds of the 2008 Bonds, together with other available moneys, will be applied to the prepayment and defeasance of the 2000 Bonds and any related obligations, pursuant to the terms of the Escrow Agreement approved pursuant to Section 6 hereof or other arrangements approved herein, and (c) the Agency will undertake to provide certain continuing disclosures pursuant to the Continuing Disclosure Agreement approved pursuant to Section 5 hereof, each in the form on file with the Executive Director, subject to completion as approved pursuant to this resolution; and WHEREAS, the Agency wishes at this time to declare its intent to refund the 200 Tax Allocation Bonds, and to authorize the issuance of the 2008 Bonds for the purpose of providing funds to refund the 2000 Bonds and to finance or refinance redevelopment activities and to pay certain other costs related to the issuance of such 2008 Bonds. NOW, THEREFORE, the Redevelopment Agency ofthe City ofChula Vista does hereby resolve and declare as follows: SECTION I. The Redevelopment Agency of the City of Chula Vista declares its intent to refund the outstanding 2000 Tax Allocation Bonds. J:\AltomeyIRESOIF1NANCE\AUlhorizing issuance of Bonds (Agencyl_06-03-08.doc DOCSOC/ 1268583v7/024212-00 10 7-17 RDA Resolution No. 2008- Page 3 SECTION 2. The sale of the 2008 Bonds in an aggregate principal amount of not to exceed twenty four million dollars ($24 million) (or such lesser amount as may be specified in the Bond Purchase Agreement as approved by the Chair) for purposes referenced in the recitals hereto is hereby approved. SECTION 3. The Preliminary Official Statement with respect to the 2008 Bonds (the "Preliminary Official Statement"), in the form presented herewith, with such changes, insertions and omissions as the officer or officers executing said documents may require or approve, is hereby approved, such approval to be conclusively evidenced by the execution and delivery thereof. The Executive Director of the Agency is hereby authorized to sign a certificate pursuant to Rule 15c2-12 promulgated under the Securities Exchange Act of 1934 relating to the Preliminary Official Statement. The Underwriter is hereby authorized to distribute copies of said Preliminary Official Statement to persons who may be interested in the initial purchase of the 2008 Bonds. The Chair or Executive Director of the Agency are hereby authorized and directed to execute, approve and deliver the final Official Statement in substantially the form of the Preliminary Official Statement, upon execution as authorized below. The Underwriter is hereby directed to deliver copies of any final Official Statement to all actual initial purchasers of the 2008 Bonds. SECTION 4. The Indenture of Trust between the Agency and U.S. Bank National Association for the 2008 Bonds (the "Indenture") is hereby approved in substantially the form presented, together with such changes thereto as may be approved by the Executive Director on the advice of bond counsel, the Executive Director's execution thereof to be conclusive evidence of such approval. SECTION 5. The Bond Purchase Agreement (the "Bond Purchase Agreement") by and among the Agency, the Chula Vista Public Financing Authority (the "Authority"), and the Underwriter providing for the sale of the 2008 Bonds to the Authority for concurrent resale to the Underwriter is hereby approved in substantially the form presented, together with such changes thereto as shall be approved by the Executive Director of the Agency upon the advice of bond counsel, the Executive Director's execution thereof to be conclusive evidence of such approval. In no event shall such Bond Purchase Agreement provide (i) for underwriter's discount (exclusive of original issue discount) in excess of eighty-two hundredths of one percent (0.82%) of the principal amount of the 2008 Bonds, (ii) for an interest rate in excess of six and one half percent (6.5%) per annum in the case of the 2008 Bonds, or (iii) for principal amounts allocated to purposes materially in excess of the amounts referenced in the recitals hereto and Section I hereof. SECTION 6. The form of the Continuing Disclosure Certificate applicable to the 2008 Bonds, respectively, (the "Continuing Disclosure Certificate") is hereby approved in substantially the form presented, together with such changes thereto as may be approved by the Executive Director of the Agency upon the advice of bond counsel, the Executive Director's execution thereof to be conclusive evidence of approval. j:\Atlomey\RESO\FINANCE\Authorizing issuance of Bonds (Agency)_ 06-0J-08.doc DOCSOC/1268583v7/024212-00 1 0 7-18 RDA Resolution No. 2008- Page 4 SECTION 7. The form of the Escrow Agreement providing for the defeasance of the 2000 Bonds (the "Escrow Agreement") among the Agency, the Authority, and U.S. Bank National Association (or other entity as may be selected by the Executive Director to act as escrow bank), as Escrow Agent, is hereby approved in substantially the form presented, together with such changes thereto as may be approved by the Executive Director of the Agency upon the advice of bond counsel, the Executive Director's execution thereof to be conclusive evidence of such approval. The Executive Director may direct the Trustee to provide for the repayment of one or more loans made by the City to the Agency pursuant to separate instructions. SECTION 8. All actions heretofore taken by the officers and agents of the Agency with respect to the issuance of the 2008 Bonds are hereby approved, confirmed, and ratified. The Chair, the Executive Director, the Secretary, the Treasurer, or any of their written designees (the "Authorized Officers") and any and all other proper officers of the Agency are hereby authorized and directed, for and in the name and on behalf of the Agency, to do any and all things and take any and all actions which they, or any of them, may deem necessary or advisable in order to consummate the purchase of the 2008 Bonds from the Agency and the sale and delivery of the 2008 Bonds to the Underwriter and to carry out the transactions contemplated by this resolution, the Indenture, the Escrow Agreement, the Continuing Disclosure Agreement, the Bond Purchase Agreement, and the terms of any bond insurance and reserve surety bond commitments authorized hereunder. Such actions may include execution and delivery by the Authorized Officers, or any of them, of any agreements or other instruments with the City confirming subordination by the City of any and all lien, right or interest of the City to tax increment revenues related to (i) payment of statutory pass-throughs, if any, payable to the City by the Agency pursuant to Health and Safety Code Sections 33607.5, 33607.7 or any related statutes or, (ii) payments pursuant to any other loan, cooperation or other agreements between the Agency and the City or the subordination of any required payments by the Agency to the City to the lien and pledges provided pursuant to the Indenture for the 2008 Bonds and any related obligations, to the extent determined by the Executive Director upon the advice of the City Attorney to be reasonably necessary or convenient to facilitate the sale and delivery of the 2008 Bonds, the Authorized Officer's execution thereof to be conclusive evidence of such approval. Without limiting the foregoing, the Authorized Officers, acting singly, are each authorized to (i) solicit bids on a municipal bond insurance policy and/or surety for reserve, (ii) negotiate the terms of such policy or policies, (iii) finalize, if appropriate, the form of such policy or policies with a municipal bond insurer, and (iv) if it is determined that the policy or policies will result in net savings for the Agency, pay the insurance premium of such policy or policies from the proceeds of the issuance and sale of the 2008 Bonds. SECTION 9. The Agency finds each and all of the Recitals provided herein are true and correct and are a substantive part of this Resolution. SECTION 10. The Secretary of the Agency shall certify as to the approval of this Resolution and copies of the final form of the documents approved herein shall be placed in the Secretary of the Agency's records and in the offices of the Agency. J:\Altomey\RESO\FINANCE\Aulhorizing issuance of Bonds (Agencyl_06-03-08.doc DOCSOC/1268583v7 /024212-0010 7-19 RDA Resolution No. 2008- Page 5 SECTION 11. This Resolution shall take effect upon adoption. Presented by Maria Kachadoorian Director of Finance J:\Altomey\RESOIF'INANCE\Authorizing issuance of Bonds (Agencyl_06-03-08.doc DOCSOC/1268583v7/024212-00 1 0 Approved as to form by J" " (/ i (_ ' v ~\ i d-LVJ -Moore 'v " I CA\gency,Attorney ~v- v 7-20 RDA RESOLUTION NO. 2008- RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING A LOAN REP A YMENT FROM THE REDEVELOPMENT AGENCY TO THE GENERAL FUND WHEREAS, as of June 30, 2007, the Redevelopment Agency of the City of Chula Vista (the "Agency") owed $25.4 million to the general fund of the City of Chula Vista, due to the Town Centre II Certificates of Participation; and WHEREAS, beginning in fiscal year 2007-2008, the Town Centre II Certificates of Participation debt service payments have been paid directly by the Agency, with funds from the Agency's Merged Project Area; and WHEREAS, in order to reduce the outstanding loan balance and to assist in relieving the City's fiscal stress, staff is recommending the Agency make a loan repayment in the amount of $4.282 million to the City's general fund; and WHEREAS, staff recommends that the loan repayment be funded partially from RDA reserves, and partially from the bond proceeds from the refunding of the 2000 Tax Allocation Bonds. NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency of the City of Chula Vista does hereby approve a loan repayment in the amount of $4,282,000 from the Redevelopment Agency to the general fund of the City of Chula Vista. Maria Kachadoorian Director of Finance Approved as to form by l ., 1)~j( ) i . 1/" Il"," L>--c. / ~..)'v.'/I'. y >"ore'~' . cy Attorney . j/ Presented by J:\Atlomey\RESO\FlNANCE\Approving Loan Repayment (AgencYL 06-03-08.DOC DOCSOC/1269139v5/024212-00 1 0 7-21 RESOLUTION NO. 2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE SALE OF NOT TO EXCEED $24 MILLION PRINCIPAL AMOUNT 2008 TAX ALLOCATION REFUNDING BONDS FOR THE MERGED REDEVELOPMENT PROJECT WHEREAS, the Redevelopment Agency of the City of Chula Vista (the "Agency") is a redevelopment agency duly created, established and authorized to transact business and exercise its powers, all under and pursuant to the provisions of the Community Redevelopment Law of the State of Califomia (Part I of Division 24 of the Health and Safety Code of the State of Califomia, commencing with Section 33000) (the "Redevelopment Law"), including the power to issue bonds for any of its corporate purposes, including the purpose of refunding bonds previously issued by the Agency; and WHEREAS, a Redevelopment Plan for the Town Centre No. II Redevelopment Project Area in the City of Chula Vista (the "Town Centre No. II Redevelopment Project") has been adopted and subsequently amended in compliance with all requirements of the Redevelopment Law; and WHEREAS, a Redevelopment Plan for the Otay Valley Road Redevelopment Project Area in the City of Chula Vista (the "Otay Valley Road Redevelopment Project") has been adopted and subsequently amended in compliance with all requirements of the Redevelopment Law; and WHEREAS, a Redevelopment Plan for the Southwest Redevelopment Project Area in the City of Chula Vista (the "Southwest Redevelopment Project") has been adopted and subsequently amended in compliance with all requirements of the Redevelopment Law; and WHEREAS, by ordinances of the City Council of the City of Chula Vista, the City has duly taken action to merge the Town Centre No. II Redevelopment Project, the Otay Valley Road Redevelopment Project and the Southwest Redevelopment Project into a single project area for financial purposes pursuant to the Redevelopment Law, and as so merged and subsequently amended in compliance with all requirements of the Redevelopment Law, such project areas are referred to herein as the Merged Redevelopment Project; and WHEREAS, the Agency has adopted its resolution entitled: RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA DECLARING ITS INTENT TO REFUND THE 2000 TAX ALLOCATION BONDS; AUTHORIZING AND DIRECTING THE ISSUANCE AND SALE OF NOT TO EXCEED $24 MILLION PRINCIPAL AMOUNT 2008 TAX ALLOCATION REFUNDING BONDS FOR THE MERGED REDEVELOPMENT PROJECT; J:\Altomey\RESQ\FINANCE\Approving sale of Bonds (CityL06.0)-08,DOC DOCSOCI1269139v5/024212-00 I 0 7-22 Resolution No. 2008- Page 2 APPROVING DOCUMENTS; AUTHORIZING OFFICIAL ACTIONS AND PROVIDING FOR OTHER MATTERS PROPERLY RELATING THERETO ; and WHEREAS, the Agency has previously issued its $17,000,000 principal amount 2000 Tax Allocation Bonds (Merged Redevelopment Project) (the "2000 Bonds") pursuant to an Indenture of Trust by and between the Agency and U.S. Bank National Association (the "2000 Indenture"); and WHEREAS, in order to take advantage of prevailing market conditions and/or restructure debt service for cash flow purposes, the Agency has determined to issue its not to exceed $24 million Redevelopment Agency of the City of Chula Vista, 2008 Tax Allocation Refunding Bonds (Merged Redevelopment Project) (the "2008 Bonds") pursuant to the provisions of the Redevelopment Law for the purpose of providing funds to refund the 2000 Bonds and, in an amount up to $5 million, to reimburse costs of capital relating to certain certificates of participation of the City, to repay certain loans made by the City to the Agency, to payor repay the costs of redevelopment activity of the Agency for the Merged Redevelopment Project, or other costs of financing and refinancing the Merged Redevelopment Project. NOW, THEREFORE, the City Council of the City of Chula Vista does hereby resolve and declare as follows: SECTION 1. Approval of Issuance of the 2008 Bonds. The City Council hereby approves the issuance of the 2008 Bonds for the purposes referenced in the recitals hereto, pursuant to the terms of the Agency resolution referenced in the recitals hereof and the accompanying Indenture (as such term is defined in the Agency resolution). This City Council hereby finds and determines that use of the proceeds of the 2008 Bonds (or any debt refinanced thereby) outside the Project Area or any Component Area, is and will be of benefit to the Merged Redevelopment Project, to the extent it occurs or has occurred. SECTION 2. Further Acts. The Mayor and City Manager of the City and any other appropriate official of the City are hereby authorized and directed to take any and all necessary and desirable steps to accomplish the delivery of the bonds referenced above, including execution of any and all other documents or agreements necessary to deliver the 2008 Bonds in a timely and expeditious manner including without limitation, the negotiation, execution and delivery of instruments or agreements confirming understandings or making any further assurances relative to existing arrangements among the parties or otherwise in furtherance of the delivery of the 2008 Bonds. Such instruments may include agreements confirming subordination by the City of any and all lien, right or interest of the City to tax increment revenues related to (i) payment of statutory pass-throughs, if any, payable to the City by the Agency pursuant to Health and Safety Code Sections 33607.5, 33607.7 or any related statutes or (ii) payments pursuant to any other loan, cooperation or other agreements between the Agency and the City or the subordination of any required payments by the Agency to the City to the lien and pledges provided pursuant to the Indenture for the 2008 Bonds and any related obligations, to the extent determined by the City Manager upon the advice of the City Attorney to be reasonably necessary J:\Attomey\RESO\FINANCElAppro\ling sale of Bonds (Cily)~ 06-03-08.DOC DOCSOC/1269139v5/024212-00 1 0 7-23 Resolution No. 2008- Page 3 or convenient to facilitate the sale and delivery of the 2008 Bonds, the authorized officer's execution thereof to be conclusive evidence of such approval. The City Clerk is authorized to attest the final form of such documents. SECTION 3. Effective Date. This Resolution shall take effect upon adoption. Presented by Approved as to form by ~ ~~/ auJ' " ,,' \jJt. i . \. u . . eft [,Ann o. re J I /\ cC-ity Atforney , Maria Kachadoorian Director of Finance J:\AttomeyIRESO\FINANCE\Approving sale of Bonds (CilYJ_06-03-08.DOC DOCSOC1l269139v5/024212-0010 7-24 RESOLUTION NO. 2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA REGARDING ITS INTENTION TO REIMBURSE EXPENDITURES FROM THE PROCEEDS OF TAX-EXEMPT OBLIGATIONS WHEREAS, the City Council of the City ofChula Vista (the "City") desires to reimburse its General Fund to finance the costs of capital improvements eligible to be funded from amounts in the City's Public Facilities Development Impact Fee Fund (the "Project"); WHEREAS, the City intends to reimburse its expenditures for and to finance the acquisition of the Project or portions of the Project with the proceeds of obligations to be issued by the Redevelopment Agency of the City of Chula Vista, the interest upon which is excluded from gross income for federal income tax purposes (the "Obligations"); and WHEREAS, prior to the issuance of the Obligations the City desires to incur certain expenditures with respect to the Project from available monies of the City which expenditures are desired to be reimbursed by the City from a portion of the proceeds of the sale of the Obligations; NOW, THEREFORE, the City Council of the City of Chula Vista DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS: SECTION 1. The City hereby states its intention and reasonably expects to reimburse the Project costs incurred prior to the issuance of the Obligations with proceeds of the Obligations. Those Project costs will include capital improvements eligible to be funded from amounts in the City's Public Facilities Development Impact Fee Fund. SECTION 2. The reasonably expected maximum principal amount of the Obligations is $5,000,000. . SECTION 3. This resolution is being adopted not later than 60 days after the payment of the original expenditures with respect to the Project (the "Expenditures Date or Dates"). SECTION 4. Except as described below, the expected date of issue of the Obligations will be within eighteen months of the later of the Expenditure Date or Dates and the date the Project is placed in service; provided, the reimbursement may not be made more than three years after the Expenditure Date. SECTION 5. Proceeds of the Obligations to be used to reimburse for Project costs are not expected to be used, within one year of reimbursement, directly or indirectly to pay debt service with respect to any obligation (other than to pay current debt service coming due within the next succeeding one year period on any tax-exempt obligation of the City (other than the ]:\AtLomey\RESO\FINANCEIJntenlion to Reimburse (CiIYL 06-03-08.doc 7-25 Resolution No. 2008- Page 2 Obligations, the 2004 Certificates and the 2006 Certificates)) or to be held as a reasonably required reserve or replacement fund with respect to an obligation of the City or any entity related in any manner to the City, or to reimburse any expenditure that was originally paid with the proceeds of any obligation, or to replace funds that are or will be used in such manner. SECTION 6. This resolution is consistent with the budgetary and financial circumstances of the City, as of the date hereof. No monies from sources other than the Obligation issue are, or are reasonably expected to be reserved, allocated on a long-term basis, or otherwise set aside by the City (or any related party) pursuant to their budget or financial policies with respect to the Project costs. To the best of our knowledge, this City Council is not aware of the previous adoption of official intents by the City that have been made as a matter of course for the purpose of reimbursing expenditures and for which tax-exempt obligations have not been issued. SECTION 7. The limitations described in Section 3 and Section 4 do not apply to (a) costs of issuance of the Obligations, (b) an amount not in excess of the lesser of $100,000 or five percent (5%) of the proceeds of the Obligations, or (c) any preliminary expenditures, such as architectural, engineering, surveying, soil testing, and similar costs other than land acquisition, site preparation, and similar costs incident to commencement of construction, not in excess of twenty percent (20%) of the aggregate issue price of the Obligations that finances the Project for which the preliminary expenditures were incurred. SECTION 8. This resolution is adopted as official action of the City in order to comply with Treasury Regulation S 1.150-2 and any other regulations of the Internal Revenue Service relating to the qualification for reimbursement of City expenditures incurred prior to the date of issue of the Obligations, is part of the City's official proceedings, and will be available for inspection by the general public at the main administrative office of the City. SECTION 9. All the recitals in this Resolution are true and correct and this City Council so finds, determines and represents. Presented by Approved as to form by ~cv ) Maria Kachadoorian Director of Finance J:\AltomeyIRESO\FINANCE\lntenlion 10 Reimburse (CitYJ_06-03-08.doc 7-26 PF A RESOLUTION NO. 2008- RESOLUTION OF THE BOARD OF DIRECTORS OF THE CHULA VISTA PUBLIC FINANCING AUTHORITY AUTHORIZING PURCHASE AND SALE OF TAX ALLOCATION REFUNDING BONDS FOR THE CHULA VISTA MERGED REDEVELOPMENT PROJECT AND APPROVING CERTAIN RELATED DOCUMENTS AND AUTHORIZING CERTAIN OTHER ACTIONS WHEREAS, the City of Chula Vista (the "City") and the Chula Vista Redevelopment Agency (the "Agency") have entered into a Joint Exercise of Powers Agreement (the "Agreement"), creating the Chula Vista Public Financing Authority (the "Authority"); and WHEREAS, the Agency has adopted its resolution entitled: RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA DECLARING THE INTENT TO REFUND THE 2000 TAX ALLOCATION BONDS; AUTHORIZING AND DIRECTING THE ISSUANCE AND SALE OF NOT TO EXCEED $24 MILLION PRINCIPAL AMOUNT 2008 TAX ALLOCATION REFUNDING BONDS FOR THE MERGED REDEVELOPMENT PROJECT; APPROVING DOCUMENTS; AUTHORIZING OFFICIAL ACTIONS AND PROVIDING FOR OTHER MA TIERS PROPERLY RELATING THERETO ; and WHEREAS, the Agency has previously issued its $17,000,000 principal amount 2000 Tax Allocation Bonds (Merged Redevelopment Project) (the "2000 Bonds") pursuant to an Indenture of Trust by and between the Agency and U.S. Bank National Association (the "2000 Indenture"); and WHEREAS, in order to take advantage of prevailing market conditions and/or restructure debt service for cash flow purposes, the Agency has determined to issue its not to exceed $24 million Redevelopment Agency of the City of Chula Vista, 2008 Tax Allocation Refunding Bonds (Merged Redevelopment Project) (the "2008 Bonds") pursuant to the provisions of the Community Redevelopment Law of the State of California (Part 1 of Division 24 of the Health and Safety Code of the State of California, commencing with Section 33000) (the "Redevelopment Law"), for the purpose of providing funds to refund the 2000 Bonds and, in an amount up to $5 million, to reimburse costs of capital relating to certain certificates of participation of the City, to repay certain loans made by the City to the Agency, to payor repay the costs of redevelopment activity of the Agency for the Merged Redevelopment Project, or other costs of financing and refinancing the Merged Redevelopment Project; and J:\Allomey\RESO\FJNANCE\AUlhorizing SPA (AulhorilYL 06-03-08.DOC DOCSOC/1269234v3/024212-00 1 0 7-27 PF A Resolution No. 2008- Page 2 WHEREAS, pursuant to Article 4 of Chapter 5 of Division 7 of Title I of the Government Code of the State of California (the "Law") and the Agreement, the Authority is authorized to purchase bonds issued by the Agency; and WHEREAS, pursuant to the Law and the Agreement, the Authority is further authorized to sell bonds so purchased to public or private purchasers at public or negotiated sale; and WHEREAS, the Authority desires to purchase from the Agency the 2008 Bonds, solely from the proceeds received from the Authority's concurrent sale of the 2008 Bonds to EJ. De La Rosa & Co., Inc. (the "Underwriter"); and WHEREAS, the proceeds of the 2008 Bonds will be used, among other things, to refund the 2000 Bonds to the extent determined by the Agency pursuant to its authorizing resolution of even date herewith. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Chula Vista Public Financing Authority, as follows: SECTION I. The foregoing recitals are true and correct and this Authority so finds and determines. SECTION 2. The Bond Purchase Agreement (the "Bond Purchase Agreement") by and among the Agency, the Authority and the Underwriter providing for the sale of the 2008 Bonds to the Authority for concurrent resale to the Underwriter is hereby approved in substantially the form presented, together with such changes thereto as shall be approved by the Executive Director of the Agency upon the advice of bond counsel, the Authority Executive Director's execution thereof to be conclusive evidence of such approval. With respect to the 2008 Bonds, in no event shall such Bond Purchase Agreement provide (i) for underwriter's discount (exclusive of original issue discount) in excess of eighty-two hundredths of one percent (0.82%) of the principal amount of the 2008 Bonds, (ii) for an interest rate in excess of six and one half percent (6.5%) per annum in the case of the 2008 Bonds, or (iii) for principal amounts allocated to purposes materially in excess of the amounts referenced in the recitals hereto. SECTION 3. The form of the Escrow Agreement providing for the defeasance of the 2000 Bonds (the "Escrow Agreement") among the Agency, the Authority, and U.S. Bank National Association (or other entity as may be selected by the Executive Director to act as escrow bank), as Escrow Agent, is hereby approved in substantially the form presented, together with such changes thereto as may be approved by the Executive Director of the Agency upon the advice of bond counsel, the Executive Director's execution thereof to be conclusive evidence of such approval. SECTION 4. All actions heretofore taken by the officers and agents of the Authority with respect to the issuance of the 2008 Bonds or the consummation of the transactions contemplated by the Escrow Agreement, the Bond Purchase Agreement or this resolution are hereby approved, confirmed and ratified. The Chair, Executive Director, Secretary and Treasurer of the Authority and any and all other officers of the Authority are hereby authorized and J:\Altomey\RESO\FINANCElAuthorizing SPA (AUlhoriIYL06-03-08.DQC DOCSOC1l269234v31024212-00 1 0 7-28 PFA Resolution No. 2008- Page 3 directed, for and in the name and on behalf of the Authority, to do any and all things, to execute any and all agreements and take any and all other actions which they, or any of them, may deem necessary or advisable in order to consummate the purchase of the 2008 Bonds from the Agency and the sale and delivery of the 2008 Bonds to the Underwriter pursuant to the Bond Purchase Agreement approved herein, and to facilitate the refunding of the portion of the 2000 Bonds to be refunded with the proceeds of the 2008 Bonds. SECTION 5. This resolution shall take effect from and after its adoption. Presented by Approved as to form by Maria Kachadoorian Chief Financial Officer ~'.1) I n Moore , . ut29rity Alto J:\AttomeyIRESOIFINANCE\Aulhorizing BPA (Aulhoriiyl_ 06-03-08DOC DOCSOC/1269234v3/024212-00 1 0 7-29