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HomeMy WebLinkAbout2008/07/15 Agenda Packet 1 der penalty 01 pequry trlat I alII ! dec are un Cit of Chula Vista in the ~mployed by the ~k and that \ posted this , , I Office 0\ the CIty Cle!\ t. board according t~' f ~ nntonthebu eln ~_:::: .."q""mM" ry ____ 71.0 Jl - - -- 7;/1 08S;gned ., ~~ -0:- CHULA VISTA Chery I Cox, Mayor Rudy Ramirez, Councilmember David R. Garcia, City Manager John McCann, Council member Bart Miesfield, Interim City Attorney Jerry R. Rindone, Councilmember Donna Norris, Interim City Clerk Steve Castaneda, Councilmember July 15,2008 6:00 P.M. Council Chambers City Hall 276 Fourth Avenue CALL TO ORDER ROLL CALL: Councilmembers Castaneda, McCann, Ramirez, Rindone, and Mayor Cox. PLEDGE OF ALLEGIA.NCE TO THE FLAG AND MOMENT OF SILENCE SPECIAL ORDERS OF THE DAY . OATHS OF OFFICE Erica Fessia to the Cultural Arts Commission Misty Tienken to the International Friendship Commission o INTRODUCTION BY POLICE CHIEF EMERSON OF PATRICK WHITE, PEACE OFFICER · PRESENTATION BY MAYOR COX OF A PROCLAMATION TO JIM CRAIG, KATIE DELGADILLO AND MICHELLE GREER OF THE RECREATION DEPARTMENT, PROCLAIMING JULY 11 THROUGH 17, 2008 AS "THERAPEUTIC RECREATION WEEK" · PRESENTATION BY MAYOR COX OF A PROCLAMATION TO SHANNON BULLOCK, RECREATION SUPERVISOR, PROCLAIMING JULY 17,2008 AS "GO PLAY, GET FIT, YOUTH DAY" IN THE CITY OF CHULA VISTA · REPORT FROM CHUCK COLE, PRESIDENT OF ADVOCATION, INC., ON THE STATE BUDGET Page I - Council Agenda htto:1 /www.chulavistaca.flov July 15, 2008 CONSENT CALENDAR (Items I through 11) 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. APPROVAL OF MINLJTES of May 27 and June 3, 2008. Staff recommendation: Council approve the minutes. 2. WRlTTEN COMMUNICATIONS A Memorandum from Councilmember Steve Castaneda requesting an excused absence from the City Council Meeting of July 8, 2008. Staff recommendation: Council excuse the absence. B. Letter of resignation from Aurora S. Cudal, member of the Housing Advisory Commission. Staff recommendation: Council accept the resignation and direct the City Clerk to post the vacancy in accordance Vvith Maddy Act requirements. 3. A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING $256,424 IN LOAN FUNDS FROM THE CALIFORNIA ENERGY COMMISSION FOR ENERGY-EFFICIENCY IMPROVEMENTS AT THE LOM.A. VERDE POOL COMPLEX AND POSSIBLE PROJECT COST INCREASES ASSOCLA. TED WITH PREVIOUSL Y APPROVED ENERGY-EFFICIENCY RETROFIT PROJECTS AT THE PUBLIC WORKS CORP YARD AND LOMA VERDE RECREATION CENTER; AMENDING THE FISCAL YEAR 2008/2009 CAPITAL IMPROVEMENT PROGRAM AND CEC ENERGY LOAN FUND; AND APPROPRlA TING $256,424 IN NEW LOAN FUNTIS TO CAPITAL IMPROVEMENT PROJECT GG202 (CEC ENERGY EFFICIENCY LOAN - PHASE 1) (4/5THS VOTE REQUIRED) B. RESOLUTION OF THE CITY COuNCIL OF THE CITY OF CHULA VISTA (I) ACCEPTING $150,800 IN LOAN FUNDS FROM THE CALIFORNIA ENERGY COMMISSION FOR POSSIBLE PROJECT COST INCREASES ASSOCIATED WITH PREVIOUSL Y APPROVED ENERGY-EFFICIENCY RETROFIT PROJECTS AT THE CIVIC CENTER BRANCH LIBRARY, POLICE DEPARTMENT HEADQUARTERS, AND PARKWAY RECREATION CENTER; AMENDING THE FISCAL YEAR 2008/2009 CAPITAL IMPROVEMENT PROGRAM AND CEC ENERGY LO.I\..N FUND; AND APPROPRlATING $150,800 IN NEW LOAN FUNDS TO CAPITAL IMPROVEMENT PROJECT GG202 (CEC ENERGY EFFICIENCY LOAN - PHASE 1) (4/5THS VOTE REQUIRED) Page:2 - Council Agenda htto ://www.chuJavistaca.gov July 15, 2008 C. RESOLUTION OF THE. CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING $18,643 IN LOAN FUNDS FROM THE CALIFORNIA ENERGY COMMISSION FOR POSSIBLE PROJECT COST INCREASES ASSOCIATED WITH PREVIOUSLY APPROVED ENERGY-EFFICIENCY RETROFIT PROJECTS AT THE SOUTH CHULA VISTA BRANCH LIBRARY; AMENDING THE FISCAL YEAR 2008/2009 Ci\PITA.L IMPROVEMENT PROGRAM i\ND CEC ENERGY LOAN FUND; AND APPROPRIATING $18,643 IN NEW LOAN FUNDS TO CAPITAL IMPROVEMENT PROJECT GG202 (CEC ENERGY EFFICIENCY LOAN - PHASE 1) (4/5THS VOTE REQUIRED) In September 2007, the Council authorized the Department of Conservation and Environmental Services to pursue a combination of California Energy Commission loans and San Diego Gas & Electric (SDG&E) "On-Bill Financing" to bridge the financial gap between capital costs and SDG&E incentives for energy efficiency retrofit projects at municipal facilities. In March of 2008, the City was awarded a $607,446 California Energy Commission loan to upgrade lighting, improve HV AC systems and install variable speed drives at six facilities. The amended loan amount of up to $1,033,313 will allow greater implementation flexibility. In total, the improvement projects will reduce the City's annual energy use by approximately 1.4 million kWh and 50,000 therms, generating $214,000 in annual cost savings, which will be used to repay the low interest, reimbursement loan. (Conservation and Environmental Services Director, City. Engineer/Engineering Director) Staff recommendation: Council adopt the resolutions. 4. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE FORMAL CONSULTANT SELECTION PROCESS AND APPROVING AN AGREEMENT WITH THE SA.N DIEGO STATE UNIVERSITY RESEARCH FOUNDATION IN THE AMOUNT OF ONE HUNDRED EIGHTY-TWO THOUSAND, FOUR HUNDRED NINETY DOLLARS ($182,490) TO CONDUCT A FEASIBILITY STUDY FOR A DISTRICT ENERGY SYSTEM FOR THE BA YFRONT PROJECT AREA AS PART OF THE SAN DIEGO GAS AND ELECTRIC PARTNERSHIP PROGRAM, AND TRi\NSFERRING $25,240 FROM STAFF COSTS TO CONSULTANT COSTS WITHIN THE ENERGY CONSERVATION FUND Since March 2006, the National Energy Center for Sustainable Communities (NECSe), a collaboration between the City, San Diego State University and the Gas Technology Institute, have been working to advance responsible use of energy resources through the planning process of major developments throughout Chula Vista. In an effort to further the work of the NECSC, and the broader environmental initiatives of the City, staff is recommending approval of an additional contract with the San Diego State University Research Foundation to study the feasibility of a district energy system as part of the overall development of the Chula Vista Bayfront utilizing the funding from the San Diego Gas & Electric (SDG&E) Partnership Grant Program, administered by the City's Conservation and Environmental Services Department. (Economic Development Officer) Staff recommendation: Council adopt the resolution. Page 3 - Council Agenda httD ://www.chulavistaca.zoy July i5. 2008 5. RESOLUTION OF THE CITY COuNCIL OF THE CITY OF CHULA VISTA APPROVING CHA.NGE ORDERS ASSOCIATED WITH CFD 071 FOR BROOKFIELD SHEA OTAY LLC FOR THE CONSTRUCTION OF EASTLAKE PARKWAY AND HUNTE PARKWAY SERVING OTAY RANCH VILLAGE 11 PHASE 3 Brookfield Shea Otay has submitted a payment request for reimbursement from Community Facilities District 071 bond proceeds for the construction of Eastlake Parkway and Hunte Parkway serving Otay Ranch Village II, Phase 3. Adoption of the resolution approves change orders in the amount of $388,215.18 for Brookfield Shea Otay, LLC for that purpose. Approved change orders will be paid from CFD 071 bond proceeds. (City EngineerlEngineering Director) Staff recommendation: Council adopt the resolution. 6. ORDINANCE OF THE CITY OF CHULA VISTA REVISING THE SPEED LIMIT FOR HIDDEN VISTA DRIVE BETWEEN EAST H STREET AND SMOKY CIRCLE (FIRST READING) An Engineering and Traffic survey has been completed in accordance with the California Vehicle Code, which mandates that a speed survey be completed and updated every seven years for each street with a posted speed limit within the City. Based on the results, it was determined that the speed limit on Hidden Vista Drive between East H Street and Smoky Circle should be increased from 25 mph to 30 mph, and betWeen Smoky Circle and Terra Nova Drive should retain the existing 25 mph speed limit. Adoption of the ordinance implements this revision. (City EngineerlEngineering Director) . Staff recommendation: Council hold first reading of the ordinance. 7. A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING A GRANT DEED IN FEE FOR TWO EXCESS REMNANT PARCELS ADJOINING STATE ROUTE 125, DESIGNATED AS SAN DIEGO COUNTY ASSESSOR'S PARCEL NUMBERS 595-070-52 AND 595-070-53, FROM EASTLAKE DEVELOPMENT COMPA-NY, AND AUTHORIZING THE CITY CLERK TO EXECUTE ALL DOCUMENTS NECESSARY TO ACCEPT AND RECORD THE GRANT DEED B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE TRANSFER OF PARCEL DD32019-03-01 At'JD PARCEL DD 32019-03-02, WHICH WERE GRANTED TO THE CITY OF CHULA VISTA BY THE CALIFORNIA DEPARTMENT OF TRANSPORTATION (CALTRANS) AS PART OF THE STATE ROUTE 125 PROJECT, TO MCMILLIN OTAY RANCH LLC, AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE ALL DOCUMENTS NECESSARY TO TRi\NSFER THE PARCELS Page 4 - Council Agen~a htto :llwww.chu!avistaca.Qov July 15, 2008 The State Route 125 Toll Road project started construction in September 2003, and opened to the public in November 2007. This project was approved as a "Design-Build" facility. Due to the final approved geometric alignment of the toll road, off-ramps and on-ramps, there are some portions of parcels initially anticipated to be a part of the project, that have been deemed by the California Department of Transportation to be not necessary. Adoption of the resolutions resolves the remaining excess land issues related to the construction of the toll road. (City Engineer/Engineering Director) Staff recommendation: Council adopt the resolutions. 8. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AMENDMENT TO THE OCTOBER 2006 AGREEMENT BETWEEN THE CITY AND THE CALIFORNIA DEPARTMENT OF CORRECTIONS AND REHi\BILITATION, APPROVING A NEW AGREEMENT WITH THE CALIFORNIA DEPARTMENT OF CORRECTIONS AND REHlillILITATION FOR THE IN-CUSTODY DRUG TREATMENT PROGRAM AND APPROPRIATING $54,642 TO THE FISCAL 'YEAR 2008/2009 POLICE BUDGET BASED UPON UNANTICIPATED REVENUES In 2006, the Council approved an agreement between the City and the California Department of CorreCtions and Rehabilitation for the In-Custody Drug Treatment Program. Adoption of the resolution approves an amendment to that agreement, and a new agreement to increase the daily jail rate for each parolee and increase the number of participants. (Police Chief) Staff recommendation: Council adopt the resolution. 9. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE CONSULTANT SELECTION PROCESS, APPROVING THE CONTRACTUAL AGREEMENT WITH SOUTH BAY COMMUNITY SERVICES TO CONTINUE PROVIDING YOUTH COUNSELING SERVICES, AND AUTHORIZING THE CITY MANAGER TO i\PPROVE THE FOUR ONE-YEAR EXTENSIONS OF THE AGREEMENT South Bay Community Services provides juvenile counseling services to the City. The attached agreement formally continues those services, which includes a Youth Counseling Program, Runaway Case Management Program, and Homeless Youth Outreach Programs. (Police Chief) Staff recommendation: Council adopt the resolution. 10. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE PURCHASE OF ELECTRONIC PARKlNG METERS FROM CALE PARKlNG SYSTEMS USA, INCORPORATED AND POM INCORPORATED IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF CITY OF CHULA VISTA REQUEST FOR BIDS 10-07108 FOR A ONE-YEAR TERM BEGINNING JULY I, 2008 AND ENDING JUNE 30, 2009; AND AUTHORIZING THE PURCHASING AGENT TO APPROVE FIVE ONE-YEAR EXTENSIONS OF THE . TERM THROUGH JUNE 30, 2014 Page 5 - Council Agenda httD:/ /www.chulavistaca.goy July 15,2008 The City issued a Request for Bid for electronic parking meters to replace outdated mechanical parking meters in the Downtown Parking District. Adoption of the resolution replaces all parking meters within the district with individual and multi-space meters. (Redevelopment and Housing Assistant Director) Staff recommendation: Council adopt the resolution. II. ORDINA.NCE OF THE CITY OF CHULA VISTA A.MENDING SECTIONS 8.25.020, 8.25.070 AND 8.25.095 OF THE CHULA VISTA MUNICIPAL CODE (SECOND READING A.ND lillOPTION) Adoption of this ordinance adds surety bonds, letters of credit or other surety acceptable to the City Manager or designee as a form of payment for the performance deposit. This ordinance was first introduced on July 8, 2008. (Public Works Director) Staff recommendation: Council adopt the ordinance. ITEMS REMOVED FROM THE CONSENT CALENDAR PUBLIC COMMENTS Persons speaking during Public Comments may address the Council on any subject matter within the Council's jurisdiction that is not listed as an item on the agenda. Srate law generally prohibits the Council from discussing or raking action on any issue not included on the agenda, but, if appropriate, the Council may schedule the topic for fiLture discussion or refer the matter to staff. Comments are limited to three minutes. ACTION ITEMS The Item(s) listed in this section of the agenda will be considered individually by the Council, and are expected to elicit discussion and deliberation. If you wish to speak on any item, please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. 12. CONSIDERATION OF PLACING A MEASURE RELATING TO THE CITY'S TELECOMMUNICATIONS UTILITY USERS' TAX ON THE BALLOT FOR THE SPECIAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 4, 2008 Chula Vista:s Utility Users' Tax (UUT) was adopted in 1970 as a means to help fund public services and capital improvement projects through the City's General Fund. The City receives UUT based on the usage of natural gas, electricity and telecommunications. In Fiscal Year 2006/2007, the total UUT received was approximately $7.0 million, which represents 5% of General Fund revenues. City staff is recommending that the UUT on telecommunications be updated. Adoption of the resolutions approves an ordinance to be placed on the November ballot for this purpose; and appropriates the funds necessary to cover the related costs. (Finance Director) Staff recommendation: Council adopt the following resolutions: Page 6 - Council Agenda http://www . ch ulavlstaca. gOY July] 5,2008 A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ORDERING THE SUBMISSION TO THE QUALIFIED ELECTORS OF THE CITY OF A MEASURE RELATING TO THE CITY'S TELECOMMUNICATIONS USERS' TAX AT THE SPECIAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 4, 2008; DECLARING THE EXISTENCE OF AN EMERGENCY NECESSITATING SUCH ACTION; .AND DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS OF THE MEASURE (UNANIMOUS VOTE REQUIRED) B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIA TING $105,000 FROM THE A V AILABLE BALANCE OF THE GENERAL FUND TO THE CITY CLERK'S AND NON-DEPARTMENTAL BlJDGET TO COVER ANTICIPATED COSTS AND EXPENSES RELATED TO ELECTION COSTS, AND PRINTING AND MAILING COSTS (4/5THS VOTE REQUIRED) OTHER BUSINESS 13. CITY MANAGER'S REPORTS 14. MAYOR'S REPORTS 15. COUNCIL COMMENTS CLOSED SESSION Announcements of actions taken in Closed Session shall be made available by noon on Wednesday following the Council Meeting at the City Attorney's office in accordance with the Ralph M Brown Act (Government Code 54957.7). 16. CONFERENCE WITH LEGAL COUNSEL REGARDING SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(b): Two cases ADJOURNMENT to the Regular Meeting of July 22, 2008 at 6:00 p.m. in the Council Chambers. Materials provided to the City Council -related to any open-session item on this agenda are available for public review at the City Clerk's Office, located in City Hall at 276 Fourth Avenue, Building 100, during normal business hours 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) 691-5041 or Telecommunications Devices for the Deaf (TDD) at (619) 585-5655 at least forty-eight hours in advance for meetings and five days for scheduled services and activities. California Relay Service is also available for the hearing impaired. Page 7 - Council Agenda hno:/ /v.CVo,'W. ch u lavi staC3. 2.0Y July 15,2008 DRAFT MINUTES OF A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA May 27, 2008 6:00 P.M. A regular meeting of the City Council of the City of Chula Vista was called to order at 6:00 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Council members: Castaneda (arrived at 6:02 p.m.), McCann, Ramirez, Rindone, and Mayor Cox ABSENT: Councilmembers: None ALSO PRESENT: City Manager Garcia, Senior Assistant City Attorney Miesfeld, Interim City Clerk Norris, and Records Manager Pharis PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE SPECIAL ORDERS OF THE DA Y Deputy Mayor Rindone spoke about challenges related to retaining the San Diego Junior Theatre in Chula Vista. He then introduced Mr. Chris Lewis, who announced a proposed interim re- location of the theatre, to the Chula Vista Women's Club on G Street, and plans to raise funds for a permanent relocation to the Gateway Building. He stated that the. first board meeting was scheduled for June 12, 2008. Will Neblitt recognized the community for its leadership and work towards retaining the theatre in Chula Vista, and he thanked Deputy Mayor Rindone and Mr. Lewis for their efforts. Deputy Mayor Rindone spoke about potential partnerships with Southwestern College, the YMCA, and invitations to the elementary and high school districts. He stated that anyone interested in participating in the foundation, could contact him or Mr. Lewis. Additionally, he announced that the Board would be meeting the second and fourth Wednesday of each month, conunencing July 11,2008. CONSENT CALENDAR (Items I through 4) Councilmember McCann stated he would be abstaining from voting on Item 2. 1. APPROV AL OF MINUTES of April 15,2008. Staff recommendation: Council approve the minutes. 2. ORDINANCE NO. 3113, ORDINANCE OF THE CITY OF CHULA VISTA DESIGNATING VERY HIGH FIRE HAZARD SEVERITY ZONES AS RECOMt"vIENDED BY THE DIRECTOR OF THE CALIFORNIA DEPARTMENT OF FORESTRY AND FIRE PROTECTION AS DESIGNATED ON MAPS MA..INTAINED IN THE OFFICE OF THE CITY CLERK (SECOND READING AND ADOPTION) Page 1 - Council Minutes lA-I May 27, 2008 DRAFT CONSENT CALENDAR (Continued) Pursuant to Government Code Section 51179, the City must designate by ordinance, very high fire hazard severity zones in its jurisdiction within 120 days of receiving recommendations from the Director of Forestry and Fire Protection. The City received the Director's recommendations and a map identifying very high fire hazard severity zones within Chula Vista. Adoption of the ordinance designates these zones as required by State law. This ordinance was introduced on May 20, 2008. (Planning and Building Director/Interim Fire Chief) Staff recommendation: Council adopt the ordinance. 3. ORDINANCE NO. 3114, ORDINANCE OF THE CITY OF CHULA VISTA AMENDING TITLE 9 OF THE CHULA VISTA MUNICIPAL CODE BY ADDING CHAPTER 9.23, SECTIONS 9.23.010 THROUGH 9.23.060 TO PROHIBIT THE SALE AND/OR DISTRIBUTION OF NOVELTY LIGHTERS (SECOND READING AND ADOPTION) The City must continue to address our nation's fire problem. A ban on the sale of novelty lighters will produce an immediate measurable effect in the reduction of property loss caused by fires, deaths, and injuries - especially to children. A "Nationwide Call to Action" began years ago and must carryon today. In 2006, the National Fire Protection Association published that 1,642,500 tires were reported in the United States, up 3% from 2005; that equated to 3,245 civilian fire deaths, 16,400 civilian fire injuries, $11.3 billion in property damage, and 89 firefighter deaths. Adoption of the ordinance will assist in the reduction of fire incidents within our City. This ordinance was introduced on May 20, 2008. (Interim Fire Chief). Staff recommendation: Council adopt the ordinance. 4. RESOLUTION NO. 2008-132, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE APPROPRIATION OF AN ADDITIONAL $195,000 FROM THE AVAILABLE BALANCE IN THE CITY'S HOME INVESTMENT PARTNERSHIP PROGRAM (HOME) FUNDS, APPROVING THE FIRST AMENDMENT TO THE LANDINGS LOAN AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND CIC LANDINGS, L.P. INCREASING THE LOAN AMOUNT BY $180,000, AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE FIRST AMENDMENT TO THE LANDINGS LOAN AGREEMENT AND ALL OTHER NECESSARY LOAN DOCUMENTS TO PROVIDE THE ADDITIONAL FINANCLA.L ASSISTANCE FOR THE DEVELOPMENT AND OPERATION OF THE LANDINGS APARTMENTS (4/5THS VOTE REQUIRED) On August 7, 2007, the City of Chula Vista and CIC Landings, L.P. (CIC) entered into a Loan Agreement to provide $920,000 from the City's Investment Partnership Program (HOME) to assist in the construction of a 92-unit low-income apartment development, known as the Landings within the Winding Walk master planned community. To achieve compliance with Section 504 of the Rehabilitation Act of 1973, CIC is requesting an additional $180,000. Staff is also requesting an additional $15,000 to fund City costs related to loan underwriting, legal services, and environmental review. The total proposed City contribution to the Landings project is $1,155,000, which includes a $1, I 00,000 loan to CIC and $55,000 for City costs. (Assistant Director of Redevelopment and Housing) Staff recommendation: Council adopt the resolution. Page 2 - Council Minutes /f]~ d~ May 27, 2008 DRAFT CONSENT CALENDAR (Continued) ACTION: Councilmember Ramirez moved to approve staffs recommendations and offered the Consent Calendar, headings read, text waived. Deputy Mayor Rindone seconded the motion and it carried 5-0, except Item 2, which carried 4-0-1, with Councilmember McCann abstaining. ITEMS REMOVED FROM THE CONSENT CALENDAR There were none. PUBLIC COMMENTS Jack Stanely, Chula Vista resident, spoke about the City's code enforcement actions in the southwestern region of the City. He stated that the current code enforcement policy created ill will, not goodwill, and he invited the City to participate in a dialogue to seek a goodwill resolution. Jose Preciado, Chula Vista resident, representing the South Bay Forum, suggested the Council create a comprehensive energy plan that would benefit the citizens of Chula Vista. The following members of the public spoke in opposition to the proposed expansion of the MMC Peaker Power Plant: Hugo Salazar, representing Environmental Health Coalition Javier Morena, Chula Vista resident Juan Ramos, Chula Vista resident Carina Lopez, Chula Vista resident C. Serrano, Chula Vista resident Carolina Ramos, Chula Vista resident Adela Garcia, Chula Vista resident Leo Miras, representing Environmental Health Coalition Diana Vera, Chula Vista resident, representing members of Neighborhood on Ancurza Way Carlos Lopez, Chula Vista resident Jaime Cueva, Chula Vista resident, representing the Environmental Health Coalition Margaret Tuite, Chula Vista resident Theresa Acerro, Chula Vista resident, representing Southwest Chula Vista Civic Association Ed Herrera, Chula Vista resident, representing Southwest Chula Vista Civic Association Josie Calderon, Bonita resident, spoke of the potential opportunity to upgrade the Peaker Power Plant to make it more efficient, and to work together to create a mitigation package to benefit the area. Parks Pemberton, Chula Vista resident, spoke about Memorial Day and cited a recent press release by the U.S. President. He spoke in support of Proposition E. Page 3 - Council Minutes /A~3 May 27, 2008 DRAFT PUBLIC COMMENTS (Continued) Nathan Moeder, San Diego resident, spoke with respect to the Gateway project stating that it was a classic example of how redevelopment was supposed to work. He spoke about the benefits of tax increment financing for the City. Don Kramer, San Diego resident, representing Gateway, read a letter for the record to City Manager Garcia regarding the Gateway project. He spoke of the many benefits the project had provided for the community including jobs, office space, parking, and tax increment. Jackie Lancaster, Chula Vista resident, spoke with respect to the Council Agenda Items 13 and 14, stating that the offenses warranted dismissal, and she asked that the laws be enforced. PUBLIC HEARINGS 5. CONSIDERATION OF WAIVING IRREGULARITIES FOR BID RECEIVED FOR THE EASTLAKE P ARKW A Y SEWER CONNECTION PROJECT (KY -709) PER CITY CHARTER SECTION 1009 This project involves the installation of approximately 350 lineal feet of 12-inch sewer pipe by means of tunneling under several large diameter water aqueducts and other utilities. This project will connect a gravity sewer that serves a substantial portion of the Eastlake Greens development to the Poggi Canyon Trunk Sewer, which, in turn, will allow the temporary Eastlake Parkway Sewage Lift Station to be decommissioned and removed upon completion of the gravity connection. (Engineering and General Services Director) Mayor Cox opened the public hearing. There being no members of the public who wished to speak, Mayor Cox closed the public hearing. ACTION: Councilmember Castaneda moved to adopt the following Resolution No. 2008- 133, heading read, text waived: RESOLUTION NO. 2008-133, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING IRREGULARITIES, ACCEPTING BIDS, AND A W AROING THE CONTRACT FOR THE EASTLAKE PARKWA Y SEWER CONNECTION PROJECT (KY-709) TO TC CONSTRUCTION COMPANY IN THE AMOUNT OF $569,977 AND AUTHORIZING EXPENDITURE OF ALL AVAILABLE FUNDS IN THE PROJECT (3/5THS VOTE REQUIRED) Mayor Cox seconded the motion and it carried 5-0. ACTION ITEMS 6. CONSIDERi\TION OF THE ADOPTION OF A COUNCIL POLICY ESTABLISHING A SELF-IMPOSED RESTRi\INT BY THE MAYOR AND COUNCILMEMBERS ON COMMUNICATIONS WITH PRINCIPALS OR AGENTS OF SIGNIFICANT AND COMPLEX PROJECTS Page 4 - Council Minutes /lJ--Lf May 27, 2008 DRUT ACTION ITEMS (Continued) On occasion, the City is involved in sensitive discussions and negotiations on important projects. The unauthorized release of sensitive, partial or incorrect infoffi1ation may jeopardize the outcome of those talks and negotiations. Adoption of the proposed policy will provide the City Council with a protocol for self-imposed restraint regarding sensitive discussions and negotiations with principals on significant and complex projects. (City Manager) City Manager Garcia stated that the proposed policy was a result of a City Council refcITal, requesting that as a partner in the Gaylord project, the City consider a policy similar to one adopted by the Port District. Councilmember Castaneda commented that the proposed policy was excessive, and that he was more interested in understanding how the policy established by the Port affected or protected the process with Gaylord. ACTION: Deputy Mayor Rindone moved to table Item 6. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING A COUNCIL POLICY OF SELF-IMPOSED RESTRAINT BY THE MAYOR AND COUNCILMEMBERS ON COMMUNICATIONS Wm-f PRINCIP ALS OR AGENTS OF SIGNIFICANT AND COMPLEX PROJECTS Councilmember Castaneda seconded the motion. Mayor Cox suggested an informal request to Port Commissioner Najera, requesting clarification on what the Port District Policy meant to them. It was the consensus of the Council to table Item 6. OTHER BUSINESS 7. CITY MANAGER'S REPORTS City Manager Garcia spoke with respect to the proposed Fiscal Year 2008/2009 budget, stating that the proposed budget was balanced, and would be considered at the second Council Meeting in June. 8. MA YOR'S REPORTS Mayor Cox announced the recent local openings of the Brigantine Restaurant, H & M Clothing, Best Buy, and DSW Shoe Warehouse. 9. COUNCIL COMMENTS Councilmember Ramirez spoke about a meeting with a constituent who reported fraudulent activities against him. Councilmember Ramirez stated that he and the constituent had submitted a report on the matter to the Police Department. Since that time, Councilmember Ramirez reported that a group of perpetrators were apprehended and were facing charges for fraudulent activities regarding home foreclosures. He thanked the constituent who made initial contact with him on the issue, and also thanked the Police Department for its efforts. Page 5 - Council Minutes ',(J C /rr7 May 27, 2008 DRAFT COUNCIL COMMENTS (Continued) Councilmember Castaneda reminded everyone to vote on Election Day, June 3, 2008. He also congratulated the recent Southwestern College graduates. With respect to Memorial Day, he reminded everyone to keep those who gave their lives to the country in their thoughts. He announced that the Public Safety Subcommittee meeting was scheduled for May 28, 2008,10:00 a.m., at Chula Vista Police Department Community Room. Deputy Mayor Rindone spoke of the importance of the presence of School Resource Officers at schools and was pleased to know that the program would continue. He commented on Memorial Day services that honored the fallen men and women who had made the ultimate sacrifice. Councilmember McCann congratulated the graduates of Southwestern College, and he thanked the Fleet Reserve Association for the Memorial Day ceremony. The Council recessed to Closed Session at 7:51 p.m. CLOSED SESSION 10. CONFERENCE WITH LEGAL COUNSEL REGARDING SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(b) Three (3) cases No reportable action was taken on this item. 11. PUBLIC EMPLOYEE APPOINTMENT PURSUANT TO GOVERNMENT CODE SECTION 54957 City Attorney No reportable action was taken on this item. 12. CONFERENCE WITH NEGOTIATOR PURSUANT TO GOVERNMENT CODE SECTION 54957.6 City Negotiators: City Council and City Attorney This item was not discussed. CLOSED SESSION (Continued) 13. PUBLIC EMPLOYEE DISCIPLINE/DISMISSAL/RELEASE PURSUANT TO GOVERNMENT CODE SECTION 54957 No reportable action was taken on this item. 14. PUBLIC EMPLOYEE PERFORMANCE EVALUATION PURSUANT TO GOVERNMENT CODE SECTION 54957 Title: City Manager No. reportable action was taken on this item. Page 6 - Council Minutes I 1/7,...(;; 11/ I May 27, 2008 DRAFT ADJOURJ'JMENT At 10:55 p.m., Mayor Cox adjourned the meeting to the Regular Meeting of June 3, 2008 at 4:00 p.m. in the Council Chambers. J~ ~)dd/ Donna Norris, Interim City Clerk Page 7 - Council Minutes /H-I May 27, 2008 DRAFT MINUTES OF REGULAR MEETINGS OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY AND A SPECIAL MEETING OF THE PUBLIC FINANCING AUTHORITY OF THE CITY OF CHULA VISTA June 3, 2008 4:00 P.M. A Regular Meeting of the City Council and the Redevelopment Agency, and a Special Meeting of the Public Financing Authority of the City of Chula Vista were called to order at 4:01p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Council/Agency/Authority Members: Castaneda, McCann, Ramirez, Rindone and Mayor/Chair Cox ABSENT: Council/Agency Authority Members: None ALSO PRESENT: City Manager/Executive Director Garcia, City Attorney/Agency Counsel Moore, Interim City Clerk Norris, and Deputy City Clerk Bennett 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, GENERA.L SERVICES Engineering and General Services Director Griffin introduced employee of the month, Letty Conway. Mayor Cox then read the proclamation, and Deputy Mayor Rindone presented it to Letty. . PRESENTATION BY MAYOR COX TO RETIRING CITY ATTORNEY ANN MOORE The Councilmembers recognized and thanked City Attorney Moore for her years of service to the City. Mayor Cox then presented her with a photographic image of Chula Vista City Hall. . PRESENTATION BY MAYOR COX TO RETIRING PLANNING AND BUILDING DIRECTOR JIM SANDOVAL Mayor Cox spoke on behalf of the City Council and thanked Mr. Sandoval for his service to the City. She then presented him with a photographic image of Chula Vista City Hall. . PRESENTATION BY MAYOR COX TO RETIRING PUBLIC WORKS DIRECTOR DAVE BYERS Mayor Cox spoke on behalf of the City Council, thanking Mr. Byers for his 32 years of service to the City. She then presented him with a photographic image of Chula Vista City Hall. Page 1 - CouncillRDA/PFA Minutes / 13~ ( June 3. 2008 DRAFT SPECIAL ORDERS OF THE DAY - City Council (Continued) . 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 Mayor Cox recognized Steve Miesen, who presented a $20,000 check to the City. Councilmember McCann accepted it on behalf of the Council. Mr. Miesen also presented each Councilmember with a token to recognize the upcoming Wine Taste Chula Vista event scheduled for September 20, 2008 at the Otay Ranch Shopping Center, and he encouraged everyone to attend the event. . PRESENTATION OF GAYLE MCCANDLlSS 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) Mr. Voorhees, Chairperson for the Cultural Arts Commission, thanked the Council for its support of the Commission. He then introduced the recipients of the Gayle McCandliss Rising Star Awards and presented them each with a $300 check. Councilmembers Castaneda and Ramirez then presented each of the students with a certificate of recognition. Mr. Voorhees then introduced Ofelia Alvarado, recipient of the Gayle McCandliss Bravo Award for exceptional community service. Gloria Galbreth, Chairperson for the Chula Vista Art Guild, talked about Ofelia's many accomplishments and service in the community. Council members Castaneda and Ramirez then presented Ofelia with a certificate of recognition. Deputy Mayor Rindone spoke about the legacy of fomler Mayor Gayle McCandliss, and the difference she made in the community. He also stated that he had represented the Council in the presentation of a mural named, "Rhapsody In Blue," at the School of Creative and Performing Arts. He then asked Commissioner Ron Bolles to present a plaque, commemorating the mural as the 89th public art piece in the City, and thanked Mr. Bolles for his 36 years of community service in the arts. Mr. Bolles talked about the mural's artist, Karen Maness, and then presented the plaque to the Mayor and Council. . PRESENTATION BY DAN MCALLISTER, SAN DIEGO COUNTY TREASURER/TAX COLLECTOR, REGARDING PROPERTY TAX UPDATES Mr. McAllister gave an update on San Diego County property taxes, and asked that anyone with questions about their tax bill, to contact the County at ] -877-829-4732. He also spoke about the Local Banking Initiative to invest monies with local banks, with the intent to reinvest dollars in the community. He reported that since April 2006, $100 million dollars had been invested through local banks in the San Diego region. CONSENT CALENDAR - City Council (Items 1 through 6) 1. RESOLUTION NO. 2008-134, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DIRECTING REVIEW OF THE CITY OF CHULA VISTA CONFLICT OF INTEREST CODE Page 2 - Council/RDAfPF A Minutes ,! Y? -'---j / f-:~)" (7- June 3, 2008 DRAFT CONSENT CALENDAR - City Council (Continued) 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 NO. 2008-135, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BlDS AND A WARDING A CONTRACT FOR THE "MONTEVALLE PARK FIRE REPAIR PROJECT (eLP NO. MTVPR08)" TO RMV CONSTRUCTION, INe. IN THE AMOUNT OF $68,961.78 AND APPROPR1A TING 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 NO. 2008-136, 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 government 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. 4. RESOLUTION NO. 2008-137, 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 TRlST AR 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. Page 3 - Council/RDAIPF A Minutes I -..7 ,r7 I (/"i-:::..? l ~-~/ June 3, 2008 DRAFT CONSENT CALENDAR - City Council (Continued) 5. RESOLUTION NO. 2008-138, 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 NO. 2008-139, 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: COLillcil adopt the resolution. ACTION: Deputy Mayor Rindone moved to approve staffs recommendations and offered the Consent Calendar, headings read', text waived. Councilmember Castaneda seconded the motion and it carried 5-0. ITEMS REMOVED FROM THE CONSENT CALENDAR There were none. PUBLIC COMMENTS - City Council, Redevelopment Agency and Public Financing Authority Jackie Lancaster, Chula Vista resident, read a poem in honor of Election Day. Page 4 - Council/RDAlPF A Minutes / ;:? . L.L r:.)'" ! June 3, 2008 DRAFT PUBLIC COMMENTS - City Council, Redevelopment Agency, and Public Financing Authority (Continued) Greg Mattson, San Diego resident, representing the Third Avenue Village Association (TA V A), introduced T A VA's new Executive Director, Steve Eastis. Mr. Eastis stated that he looked forward to a working partnership with the City, and he encouraged the public to access the TA VA website for information on upcoming activities in the City. ACTION ITEMS - City Council, Redevelopment Agency and Public Financing Authority 7. CONSIDERATlON OF RESOLUTION APPROVING THE REFUNDING OF THE 2000 TAX ALLOCA nON 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 EJ. De La Rosa, the following debt refunding option was identified and presented to the City Council on January 22, 2008. (Finance Director) With respect to Items 7A through E, City Attorney Moore explained that certain Council/Agency/Authority members had identified conflicts of interest with respect to the proposed resolutions, and due to these conflicts of interest, a quorum of members without conflicts could not be convened, making it legally impossible for a decision to be made without the participation of some of the disqualified members. Therefore, in order to detern1ine which members would participate in the decisions for these items, names would be randomly selected from among the disqualified members. The Council called upon a member of the audience, Lourdes Valdez, who drew the' following names of City Council/Redevelopment Agency/Public Financing Authority Members to participate in taking action on the items as follows: Item 7 A - Members Rindone, McCann, Ramirez Item 7B - Members Ramirez and McCann Item 7C & D - Members Castaneda and Ramirez Item 7E - Members Rindone, McCaIill, Ramirez With respect to Item 7A, Councilmember Castaneda recused himself, due to a conflict of interest, and left the dais at 5 :24 p.m. Finance Director Kachadoorian presented the debt refunding options. Councilmember Ramirez asked staff to come back with information about whether or not any projects had been assigned to the $300,000 federal grant funding received by the City. ACTION: Agencymember McCann moved to adopt the following Redevelopment Agency Resolution No. 2008-1994, heading read, text waived: Page 5 - CouncillRDAIPF A Minutes /13-5 June 3, 2008 DRAFT ACTION ITEMS - City Council, Redevelopment Agency and Public Financing Authority (Continued) A. RESOLUTION NO. 2008-1994, RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA DECLARING THE fNTENT 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) Agencymember Ramirez seconded the motion and it carried 4-0-1, with Agencymember Castaneda abstaining. Council/Agency/Authorityme111Oer Castaneda returned to the dais at 5:37 p.m., and Council/Agency/ Authoritymember Rindone left the dais at this time, due to a conflict of interest on Item 7B. Discussion ensued between staff and Agencymember Castaneda regarding the selection process undertaken for the selection of bond underwriting agents for the City. At 5:46 p.m., Mayor Cox announced a brief recess of the Council/Agency/Authority Meeting. The meeting reconvened at 6:06 p.m. with all members present, except Council/Agency/ Authoritymember Rindone. ACTION: Agencymember Castaneda moved to adopt the following Redevelopment Agency Resolution No. 2008-1995, heading read, text waived: B. RESOLUTION NO. 2008-1995, RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVfNG A LOAN REPAYMENT FROM THE REDEVELOPMENT AGENCY TO THE GENERAL FUND (4/5THS VOTE REQUIRED) Agencymember McCann seconded the motion, and it carried 4-0-1, with Agencymember Rindone abstaining. At 6:07 p.m., Councilmember McCann recused himself from the dais, due to a conflict of interest on Items 7C and 70. ACTION: Mayor Cox moved to adopt the following Council Resolution Nos. 2008-140 and 2008- 141, headings read, texts waived: C. RESOLUTION NO. 2008-140, 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 Page 6 - CouncillRDA/PFA Minutes / ;:2, ... / rJ 1-- "-i--" June 3, 2008 DRi\FT ACTION ITEMS - City Council, Redevelopment Agency and Public Financing Authority (Continued) D. RESOLUTION NO. 2008-141, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA REGARDING ITS INTENTION TO REIMBURSE EXPENDITURES FROM THE PROCEEDS OF TAX-EXEMPT OBLIGATIONS Councilmember ,Castaneda seconded the motion and it carried 3-0-2, with Deputy Mayor Rindone and Councilmember McCann abstaining. At 6:09 p.m., Deputy Mayor Rindone and Councilmember McCann returned to the dais, and Councilmember Castaneda recused himself on Item 7E. due to a contlict of interest. and left the dais. " ACTION: Authoritymember McCann moved to adopt the following Public Financing Authority Resolution No. 2008-013, heading read, text waived: E. RESOLUTION NO. 2008-013, 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) Authoritymember Ramirez seconded the motion and it carried 4-0-1, with Authoritymember Castaneda abstaining. Council/Agency/ Authoritymember Castaneda returned to the dais at 6: I 0 p.m. OTHER BUSINESS - City Council, Redevelopment Agency and Public Financing Authority 8. CITY MANAGER/EXECUTIVE DIRECTOR'S REPORTS City Manager Garcia announced that a Joint Workshop of the City Council/Planning CommissionlGrov,1h Management Oversight Commission was scheduled for June 5, 2008, at 6:00 p.m., at the Police Department, Community Meeting Room. 9. MAYOR/CHAIR'S REPORTS There were none. 10. COUNCIL/AGENCY/AUTHORITY MEMBERS' COMMENTS Councilmember Ramirez spoke about code enforcement activities along Main Street, and associated issues by businesses in the area. He requested that the City Manager begin to look at ways to help businesses transition from their current condition to keeping in line with the goals and objectives of the City's General Plan. He then spoke with respect to a constituent concern about the lack of an adequate ventilation system in the vehicles used to transport impounded animals to the Animal Care Facility. He requested that the City Manager come back with data on the temperature ranges that could be reached in the vehicles on hot days, and any associated impacts on the animals being transported in the vehicles. He also encouraged the Help and Education for Animal Responsibility T eam (HEART) of Chula Vista to get involved in assisting with these issues. Page 7 - CouncilIRDAlPF A Minutes J /} --; .0- / i ' June 3, 2008 DR.A.FT OTHER BUSINESS - City Council, Redevelopment Agency and Public Financing Authority (Continued) Mavor Cox referred to the earlier suggestion bv Councilmember Ramirez about code enforcement issues, stating she believed th'ii't the health and safety codes needed to be uniformly processed throughout the City, and she would be hesitant to follow the codes differently for different areas of the City. Councilmember Ramirez responded that he believed there was an unequal application of code enforcement on the west side, and he suggested that it was time for the City to develop an approach that would allow code enforcement activities to be welcomed, not rejected by the community. Councilmember Castaneda conveyed his best wishes to retiring City Attorney Moore, Planning and Building Director Sandoval, and Public Works Director Byers. He encouraged everyone to vote on this Election Day, June 3, 2008. He encouraged the community to attend the upcoming campout at Montevalle Park on June 13, 2008, at 5:00 p.m. Sign-ups and further information could be accessed on the City's website, and by calling 619/691-5269. He then spoke about his participation, together with Congressman Filner, on a recent press event regarding .the issue of foreclosures in the City, and a proposed Bill by Congressman Filner, that would provide financial assistance to members of the military currently serving, who may be experiencing difficulties with keeping their homes. He stated that he would keep the Council apprised of the legislative developments. Deputy Mayor Rindone spoke about traffic congestion issues related to a recent concert event at the Cricket Wireless Amphitheatre, and requested that staff work with concert event organizers to address future potential traffic issues and alleviation of traffic at large concert events, and to come back with a report to the Council on the matter. Mayor Cox responded that such a meeting had been conducted between the Police Department and the Amphitheatre, with a subsequent e- mail that was sent to the Council about the efforts that had been initiated to address the issues. City Manager Garcia added that work on the matter was ongoing and that staff would provide a report back to the Council on developments. ADJOURNMENT At 6:28 p.m., Mayor Cox adjourned 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. ~ Lorraine Bennett, CMC, Deputy City Clerk ~ ~ Page 8 - CouncillRDAIPF A Minutes .....-., //?->( Jtf~_/ L. , June 3, 2008 ~Ifc- -.- .--- ---- - - -- ~-~;:- Councilmember Steve Castaneda City Of Chula Vista 276 Fourth Avenue Chula Vista, Ca 91910 619.691.5044 - 619.476.5379 Fax MEMO (llY OF CHUlA VISfA Wednesday, July 02, 2008 TO: Mayor and City Councilmembers RE: City Manager, City Clerk, City Attorney Councilmember Steve cas~ Absence from Office cc: FROM: Please excuse my absence, due to personal matters, from the City Council Meeting of July 08, 2008 and from the Council Workshop of July 10, 2008. Thank you. ,/ ' ) i AURORA S. CUDAL 288 F STREET, APT. 1601 CHULA VISTA, CA 91910 Tel. (619) 426-1713 E-Mail: ascudal@sbcglobal.net June 17, 2008 Mayor Cheryl Cox and Council Members c/o Lorraine Bennett, City Clerk's Office City of Chula Vista, F Street, CA 91910 Honorable Mayor and Council Members: I am writing this letter to inform you that I am resigning as member of the Housing Advisory Commission, effective June 30, 2008. My numerous involvements in the Filipino American community and my current job as Associate Editor of The Filipino Press, has made it difficult to attend meetings of the Commission. Thank you for giving me the privilege to serve the City of Chula Vista as representative of Section 8 seniors in the Housing Advisory Commission. Very sincerely, 1 t~~&~ AURORA S. CUDAL 0'" g ~.~ -<-< :v <>0 ~ [TI .-n m", D =::t: I m ~c: cc v.. < 0:1> v fTi 11< .i:>. ~ .,...~ ;-;: - ()::....: Ui ,-" .i:>. r I I ~ / CITY COUNCIL AGENDA STATEMENT ITEM TITLE: - JULY 15, 2008, Item~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING $256,424 IN LOAN FUNDS FROM THE CALIFORNIA ENERGY COMMISSION FOR ENERGY-EFFICIENCY IMPROVEMENTS AT THE LOMA VERDE POOL COMPLEX AND POSSIBLE PROJECT COST INCREASES ASSOCIATED WITH PREVIOUSLY APPROVED ENERGY-EFFICIENCY RETROFIT PROJECTS AT THE PUBLIC WORKS CORP YARD AND LOMA VERDE RECREATION CENTER; AMENDING THE FISCAL YEAR 2008/2009 CAPITAL IMPROVEMENT PROGRAM AND CEC ENERGY LOAN FUND; AND APPROPRIATING $256,424 IN NEW LOAN FUNDS TO CAPITAL IMPROVEMENT PROJECT GG202 (CEC ENERGY EFFICIENCY LOAN - PHASE 1) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING $150,800 IN LOAN FUNDS FROM THE CALIFORNIA ENERGY COMMISSION FOR POSSIBLE PROJECT COST INCREASES ASSOCIATED WITH PREVIOUSLY APPROVED ENERGY-EFFICIENCY RETROFIT PROJECTS AT THE CIVIC CENTER BRANCH LIBRARY, POLICE DEPARTMENT HEADQUARTERS, AND PARKWAY RECREATION CENTER; AMENDING THE FISCAL YEAR 2008/2009 CAPITAL IMPROVEMENT PROGRAM AND CEC ENERGY LOAN FUND; AND APPROPRIATING $150,800 IN NEW LOAN FUNDS TO CAPITAL IMPROVEMENT PROJECT GG202 (CEC ENERGY EFFICIENCY LOAN - PHASE 1) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING $18,643 IN LOAN FUNDS FROM THE CALIFORNIA ENERGY COMMISSION FOR POSSIBLE PROJECT COST INCREASES ASSOCIATED WITH PREVIOUSLY APPROVED ENERGY-EFFICIENCY RETROFIT PROJECTS AT THE SOUTH CHULA VISTA 3-1 JULY 15,2008, Item---5- Page 2 of5 SUBMITTED BY: BRANCH LIBRARY; AMENDING THE FISCAL YEAR 2008/2009 CAPITAL IMPROVEMENT PROGRAM AND CEC ENERGY LOAN FUND; AND APPROPRIATING $18,643 IN NEW LOAN FUNDS TO CAPITAL IMPROVEMENT PROJECT GG202 (CEC ENERGY EFFICIENCY LOAN _ PHASE 1) DIR. OF CONSERVATION &~r<'V ONMENTAL SERVICES fdZ-J;..-. DIRECTOR OF ENGINEERIN ~ CITY MANAGER q ~ r f)e ASSISTANT CITY MANAGER "";;.-) REVIEWED BY: SUMMARY On September 25, 2007, City Council authorized the Department of Conservation and Environmental Services to pursue a combination of California Energy Commission loans and San Diego Gas & Electric (SDG&E) 'On-Bill Financing' to bridge the financial gap between capital costs and SDG&E incentives for energy efficiency retrofit projects at municipal facilities. In coordination with the Engineering Department, the City was awarded in March 2008 a $607,446 California Energy Commission loan to upgrade lighting, improve HV AC systems and install variable speed drives at six facilities. Staff is now seeking to amend the loan to include two new improvement projects at the Lorna Verde Pool Complex which will ensure the public facility's operational reliability and reduce its energy consumption. In addition, the amended loan amount of up to $1,033,313 will allow greater implementation flexibility for previously approved energy-efficiency improvement projects. In total, the improvement projects will reduce the City's annual energy use by approximately 1.4 million kWh and 50,000 therms, generating $214,000 in annual cost savings which will be used to repay the low interest, reimbursement loan. 4/5THS VOTE: YES 0 NO D ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed action for compliance with the California Environmental Quality Act (CEQA) and has determined that this action qualifies for a Class I categorical exemption pursuant to Section 15301 (Existing Facilities) of the State CEQA Guidelines. Thus, no further environmental review is necessary. RECOMMENDATION Staff recommends that City Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION The Resource Conservation Commission did not take a formal action on the SDG&E Partnership Program; however, they supported the energy-saving program by general consensus. 3-2 JULY 15.2008, Item -,;: , ----"..--- Page 3 of 5 DISCUSSION Public Goods Charges are collected from a monthly utility bill surcharge of approximately $0.05 per gas therm and $0.006 per electric kilowatt consumed by customers in the SDG&E service territory. The Public Goods Charges are used to implement regional Public Purpose Programs, including residential and commercial energy efficiency and conservation efforts. The San Diego Gas & Electric (SDG&E)/Chula Vista Memorandum of Understanding (October 2004) directs SDG&E to directly involve the City in developing and delivering up to $2,000,000 in Public Purpose Programs per year to ensure the community's access to their fair share of energy efficiency opportunities. As a result, both agencies have worked with the California Public Utilities Commission to create an Energy Efficiency Partnership Program to deliver energy efficiency, conservation, demand management and alternative energy programs to Chula Vista residents, businesses and municipal facilities. In October 2006, Council approved the SDG&E/Chula Vista Energy Efficiency Partnership agreement that provided the City with $731,075 annually for three calendar years. The Partnership's goal is to reduce the amount of kilowatt-hours (electricity) and therms (gas) consumed by targeted sectors, which historically have not fully participated or are not eligible for existing energy incentive programs. The Partnership also provides funding to promote energy efficiency retrofits at municipal facilities. While Partnership funds are not able to be used for capital costs associated with energy efficient municipal upgrades, it does provide financial support for City staff to evaluate, identify and coordinate the installation of energy efficiency retrofit projects. On September 25, 2007, City Council authorized the Department of Conservation and Environmental Services to pursue up to $2,000,000 in California Energy Commission loans to bridge the financial gap between capital costs and incentives for municipal energy efficiency and renewable energy retrofit projects (Resolution #2007-241). Under the Partnership agreement, the City pledged to reduce municipal building energy use by 15% (equivalent to approximately 1,700,000 kWh and 45,000 therms) compared to its 2005 energy load. By March 2008, Engineering Department staff had identified 33 facility improvements, which would reduce municipal consumption by 1,369,858 kWh and 14,463 therms. To fund the improvements, City staff applied and was awarded a California Energy Commission (CEC) loan in an amount up to $607,446 to upgrade lighting, improve HV AC systems and install variable frequency drives at six municipal facilities (Energy Efficiency Improvements Phase 1A). The total loan amount was based on estimated total net project costs which factors in the applicable SDG&E incentives of $203,155. The loan was approved by City Council at their April I, 2008 meeting and staff is beginning to implement the retrofit projects which are expected to save 1.4 million kWh and $180,410 annually. Shortly after being awarded the loan, staff was informed by the CEC that it typically encourages applicants to apply for the total grOSS project costs allowing the applicants greater implementation flexibility if actual project costs are more than the originally estimated amounts. As a result, staff has received permission from the CEC to adjust the original loan amount to reflect the total project costs of up to $810,601. 3-3 JUL Y 15,2008, Item :? ~ Page 4 of 5 In addition, shortly after being awarded the CEC loan, the Lorna Verde Pool Complex's boiler system which is used to heat both domestic and pool water ceased operating properly. Engineering Department staff identified a replacement boiler as a top priority for its Capital Improvement Program due to the Complex's reliance on the boiler for proper operations and public use. Staff also identified the replacement of the pool's solar hot water system as a top priority to further maximize the future energy cost savings and reduce the City's greenhouse gas emissions. In order to fmance the proj ects, staff has received approval from the CEC to also amend the existing loan to cover the total gross project costs of $222,712 for the new boiler and solar hot water systems (Energy Efficiency Improvements Phase IB). The new systems' estimated energy cost savings of $33,000 annually would be used to repay the additional loan amount. The estimated project costs and projected energy savings were independently calculated and verified by California Energy Commission engineers. In summary, the amended CEC loan amount of up to $1,033,313 will enable staff to implement 35 energy efficiency and renewable energy improvement projects at six municipal facilities over the next year. These projects will reduce the City's annual energy consumption by approximately 1.4 million kWh and 50,000 therms. The resulting annual energy cost savings of $214,000 will be used to repay the low interest loan (simple payback period equals 4.8 years). In addition, City staff expects to receive approximately $250,000 in SDG&E incentives to further reduce implementation costs and shorten the loan payback period. With the adoption of this loan amendment, there would be approximately $966,687 remaining in the original $2,000,000 authorization by City Council and staff expects to identify additional projects for the remaining funding over the next 12 months and to return to Council for additional loan authorization in 2009. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found conflicts exist, in that Councilmember Castaneda has property holdings within 500 feet of the boundaries of the Civic Center Branch Library, Police Headquarters and the Parkway Recreation Center which is the subject of this action and Councilmember Ramirez has property holdings within 500 feet of the boundaries of the South Chula Vista Branch Library which is also the subject of this action. FISCAL IMPACT At this time, staff is recommending amending the Fiscal Year 2008/2009 Capital Improvement Program and CEC Energy Loan Fund to reflect the additional amount of $425,867 and appropriating it to existing capital improvement project, "CEC Energy Efficiency Loan - Phase 1 (CIP GG202)" as necessary to complete improvements at the Lorna Verde Pool Complex and cover potential project cost increases associated with previously approved energy-efficiency retrofit projects. The total debt service of $1,230,361.98 (principal + interest) for the amended energy efficiency loan would be fully offset by $214,000 in estimated annual energy savings. Based on the projected amortization schedule, semiannual loan payments of $102,530.22 3-4 JUL Y 15,2008, Iteml Page5of5 would begin in 20 I 0 and last for 5.5 years. The amortization schedule will be adjusted based on the date the City requests reimbursement from the loaning agency. Should the loan repayments begin prior to 20 I 0, staff will return to Council to request a transfer of funds from the department utilities budgets based upon actual savings. If the projects' annual energy cost savings are less than expected, the loan may be renegotiated to assure that the repayment amount does not exceed the actual energy savings. However, facility operational changes or energy rate increases which result in less than expected energy cost savings are not a basis for loan renegotiation. After the loan is repaid, the City will realize net annual savings of approximately $214,000 on its energy bills, which are paid from the City's General Fund appropriations. City staff costs associated with implementing the projects are funded by the current SDG&E Partnership Program. The retrofit projects' costs, projected energy savings and payback periods were independently calculated by third-party energy engineers and verified by the California Energy Commission. ATTACHMENTS 1. Revised Municipal Facility Retrofit Project List (Phase I) 2. California Energy Commission - Energy Efficiency Loan Amendment 3. California Energy Commission - Original Energy Efficiency Loan Prepared by: Brendan Reed, Environmental Resource Manager, Conservation & Environmental Services 3-5 w I m ATTACHMENT 1 MUNICIPAL FACILITIES ENERGY EFFICIENCY RETROFITS - CEC LOAN (PHASE 1) Est. Annual Est Est. Simple Natural Annual Estimated TECISPC Estimated Simple # Locallon/Buslness Name Description of Measure Electrical Gas Cost ImplementatIon Incentive cost after Payback Payback wI Savmgs Savings Savings Costs IS) ($I incentive ($) (Years) Incentives (kWh( Uherms) 1$1 IYears) 1 Replace Metal Halides (Multiple Bays) 151,270 , 0 $14,803 $55,000 $18,152 $36,848 3.7 2.5 Public Works Corp Yard 2 Install HVAC unit for Server Room 15,569 0 $1,432 $13,650 $2,647 $11,003 9.5 7.7 3 Replace HHW pump 3,846 0 $493 $8,406 $442 $7,963 17.1 16.2 4 Install VFO on Chilled water pump 14,323 0 $1,719 $11,700 $1,647 $10,053 6.8 5.8 5 Inslall VFD on AH fans (8-1,2.3.4) 80,568 0 $9,668 $40,950 $9,265 $31,685 4.2 3.3 6 Civic Center Library Replace coils 4 0.0 0 Partof#5 $80,000 $0 $80,000 N/A N/A 7 Inslall Trane upgrade of Tracer Summel 0.0 0 Part of #5 $20,000 $0 $20,000 N/A N/A Control System 8 Retrofit Chiller with Oil-less Centrifugal 61,200 0 $15,444 $65,000 $10,404 $54,596 4.2 3.5 Compressor 9 Ughling 40,884 0 $5,533 $36,595 $4,906 $31.689 6.8 5.7 10 Upgrade Central Plant 448,637 0 $52,446 $250,000 $76,268 $173,732 4.8 3.3 Police Headquarters 11 Air Handler Oplimizalion 220,968 14,463 $37,148 $80,000 $36,981 $43,019 2.2 1.2 12 Install VFD on pool 93,435 0 $9,388 $14,000 $10,745 $3,255 1.5 0.3 13 Retrofit Ta lighting with high performance 5,931 0 $897 $6,950 $712 $6,238 7.7 7.0 TB's and extra efficient ballasts 14 Replace incandescent with a screw-in eFL 858 0 $130 $40 $103 f$63) 0.3 (0.51 Loma Verde Recreation Retrofit HID fixtures in pool area with 5,783 0 $799 $2,400 $694 $1,706 3.0 2.1 15 Center electronically ballasted metal halides 16 Retrofit pool incandescents 5,483 0 $1,904 $11,050 $659 $10,391 5.8 5.5 Boiler replacement (2) 0.0 24,076 $23,088 $113,000 $38,522 $74,478 4.9 3.2 Solar hot water panels (79) & pool covers 0.0 11,061 $10,607 $109,712 $8,848 $100,864 10.3 9.5 19 Install high efficiency ballasts for T.8 lamp 23,920 0 $2,876 $20,000 $2,870 $17,130 7.0 8.0 20 Retrofit Chiller with Oil-less Centrifugal 68,000 0 $9,737 $45,000 $11.560 $33,440 4.6 3.4 Compressor 21 South Chula Vista Library Install VFD on the condenser fans 7,162 0 $645 $5,700 $824 $4,876 8.8 7.8 CV CEC Loan (Phase 1) . Energy Project Tracking 7-7-08 Est. Annual Est. Est. Simple Electrical Natural Annual Estimated TEC/SPC Estimated Simple Payback wi # Location/Business Name Descriptlon of Measure Savings Gas Cost ImplementatIon Incentive cost after Payback Incentives IkWhl Savings Savings Costs ($) 1$1 mcentlve ($) (Years) (Years) (lherms) ISI 22 Review controls for HVAC system 24,000 0 $2.160 $2,000 $2,760 ($760) 0.9 (OA) 23 Retrofit halogen MR16's 5,242 0 $927 $720 $629 $91 0.. 0.1 24 Install VFO on pool 49,440 0 $3,969 $8,750 $5,686 $3,064 2.2 0.. 2. Retrofit HPS and MH in gym to TB 14,940 0 $2,160 $7,600 $1,793 $5,807 3.5 2.7 highbays 26 Delamp 3-lamp TB fixtures 3,137 0 $407 $1,750 $376 $1,374 4.3 3.4 27 Retrofit TB lighting with high performance 1,392 0 $202 $2,450 $167 $2,283 12.2 11.3 T8's and extra efficient ballasts 28 Relrofil2x2 with 3F17 TBs keeping 4 lamp 72 0 $10 $140 $9 $131 13.5 12.6 ballast 2. Delamp 2-lamp wrap fixtures 10 1 lamp 10. 0 $15 $1,050 $13 $1,037 69.2 68.3 Parkway Recreation Center 30 Retrofit HID wall packs 10 induction lamps 1,020 0 $147 $800 $122 $67. 5.4 4.. 31 Retrofit HID outdoor lamp to CFL 165 0 $24 $150 $20 $130 6.3 5.5 32 Retrofit outdoor HID uplight floodlamps 198 0 $29 $760 $24 $726 26.2 25.4 with Ta's 33 Retrofit HPS lamps with fluorescent lamps 11,061 0 $1,553 $5,400 $1,327 $4,073 3.5 2.6 34 Retrofit 1000W MH fixtures in pool area 7,380 0 $2,456 $4,BOO $886 $3,914 2.8 1.6 3. Retrofit in-pool incandescenls with 70W 3,870 0 $1,2BB $7,600 $464 $7,336 6.1 5.7 melal halides w I -.J 1,369,858 49,600 $214,105 c=JPhase 1A _Phase1B CV GEC loan (Phase 1)- Energy Project Tracking $1,033,313 $250,525 $782,788 4.8 3.7 7-7-06 STATE OF CALIFORNiA LOAN AGREEMENT AMENDMENT ATTACHMENT 2 This ngreement is official notification of 0. funding award amendment from the CalIfornia Energy Commission. The attachments listed below are incorporated as part of this fundine ,urreemenl l.DMfNU70IU~ -,"" City of Chula Vista 008-07-ECC A.] AcneEMENTTElIto1 '00= 276 Fourth Avenue, Chula Vista, CA 919]0 02/27/2008 - OS/21/20]0 cr.CMl.OJEt:TMAIO,CER !'llONE Califomia Energy Commission, Karen Perrin (9]6) 654-4]04 ~,= ] 5] 6 Ninth Street, MS-42, Sacramento, CA 958] 4 rll'ill'ost The purpose oftills Amendment is to augment the loan with additional funds, extend the end term ofthe Agreement, revise the estimated amortization schedule, revise the budget details, and add special conditions to this Agreement. All other terms and conditions of the original Agreement remain unchanged. CEC: $ 425,867.00 I'ROCIUJ>I -= ECAA-2005A Bond Series The Bank of New York "MOllrttENCU~IU[fIEl}II,.nUSUOC1l~ll:NT ".., la~ mrun 1""""''2007/08 $ 425,867.00 1JI10UIfrPftl!YJ01l5l.'\'!NCIIMII!1I!.Il rl1lll'OSE.OFtxnNDmmt $ 607,446.00 C-191, Program Loan Acct. Series 2005A "lOT.u. Mo\TClI S1WtE OmONAI..VSl. $ 0.00 TOT.u,.AlIIOm.TTODA'l't $ 1,033,313.00 I hereby <::crtify upon my own personnllulowicdge thnt budgeted funds are avnilable for lilt: period and purpose stateullbovc. SlGl'l.\TURE Of CO~'MlSSIOf'l ^CCOUtiTINC OFf/CElt -----J~ .", gilT/or Thc unders.i~lled parties hnve read tile attaehmcnts to this agreement nnd wilt comply witb lhe standards nnd requirements eontnined therein. CALIFORNIA ENERGY COMMISSION RECIPIENT ...t.T110IllllDSlCtlAroRL .m Aunlon=:!iICllo\nmt .m JlAl>lr PHOII! W" PIlONt John P. Butler II, SSM-I (916) 654-4204 ,\TTACUMENTS = Estimated Amortization Scnedule Budget Details Resolution Special Conditions . 3-8 200SA ECAA Revenue Bond Loan Number: OOB-07-ECC Recipient: C~TY OF CHULA VISTA Loan Amount: $1,033,313.00 Zntezeat Rate: 3.950% Number of Payments: ~2 Estimated First Disbursement Date: 02/28/2009 Estimated project Completion Date: OS/21/2010 Assumed First Payment Date: 12/22/2010 Energy Savings: $214,654.00 Loan Based on Annua.1 Energy Savings Accrued I?rinc.ipal Unpaid Date Transaction Amount Interest Reduction Principal 02/28/2009 Disbursement $1,033,313.00 $0.00 $0.00 $1,033,313.00 12/22/2010 Payment No. 1 $102,530.22 $74,027.58 $28,502.54 $1,004,810.45 OS/22/2011 Payment No. 2 $102,530.22 $19,790.54 $82,739.58 $922,070.88 12/22/2011 Payment No. 3 $102,530.22 $18,250.79 $84,259.43 $837,801. 45 OS/22/2012 :Payment No. 4 $102,530.22 $15,591.91 $85,938.31 $751,853.14 12/22/2012 Payment No. 5 $102,530.22 $14,889.98 $87,540.24 $554,222.90 OS/22/2013 Payment No. 5 $102,530.22 $1.3,082.46 $89,447.75 $574,775.14 12/22/2013 Payment No. 7 $102,530.22 $11,382.91 $91,147.31 $483,527.B3 06/22/2014 Payment No. B $102,530.22 $9,525.48 $93,004.74 $390,523.09 12/22/2014 Payment No. 9 $102,530.22 $7,735.94 $94,794.28 $295,828.81 06/22/2015 Payment No. 10 $102,530.22 $5,825.51 $95,703.51 $199,125.20 12/22/2015 payment No. 11 $102,530.22 $3,943.50 $98,585.72 $lOO,538.48 OS/22/2015 Payment No. 12 $102,529.55 $1,991. 08 $100,538.48 $0.00 Note: This Schedule is only an estimate. When your project is completed, you will be ~ssued a final schedule based on actual disbursem~nt{s) and completion date. T~s amortization schedule assumes payments of all ~stallments are made on their due dates in aocordance with the termB of the promissory note. Any payment of installment considered to have been made lace in accordance with the terms of the promissory note and any unsched~ed prepayment will affect accrued interest, principal reduction, unpaid principal, and tocal repayment. ,. " 1 3-9 EXHIBIT A BUDGETDETNLS==== GLNUMBER: 008-07-ECC RECIPIENT: CITY OF CHULA VISTA SEQ NO.: INSTITUTION: BUILDING TYPE: BUILDING USE: ECM CODE: ECM STATUS: ECM BUDGET: SEQ NO.: INSTITUTION: BUILDING TYPE: BUILDING USE: ECM CODE: ECM STATUS: ECM BUDGET: SEQ NO.: INSTITUTION: BUILDING TYPE: BUILDING USE: ECM CODE: ECM STATUS: ECM BUDGET: Budget Details 1 City Other Multi Building test ECX CONY OTHER LT Approved $165,445.00 2 City Other Multi Building test MAX OTHER AIR COND $645,156.00 3 City Other Building Type MHO REPLACE BOIL Approved $222,712.00 ,~ 2 3-10 .. 00 B-OHJ'-c RESOLUTION NO: 08.521.4 STATE OF CALIFORNIA STATE ENERGY RESOURCES CONSERVATION AND DEVELOPMENT COMMISSION RESOLUTION - RE: Energy Efficiency Loan to the City of Chula Vista WHEREAS, pursuant to the Energy Conservation Act of 1979, Public Resources Code Sections 25412 et. seq., the State Energy Resources Conservation and Development Commission (the "Energy Commission") is authorized to provide a loan to the City of Chula Vista (the "Borrower") to finance energy efficiency projects (the "Projects"); and WHEREAS, the California Infrastructure and Economic Development Bank (the "Bank") is authorized to finance energy efficiency loan programs administered by the Energy Commission, which includes the issuance of the Bank's bonds to finance the Energy Commission's energy efficiency financing program; and WHEREAS, the Bank is authorized to issue Energy Efficiency Revenue Bonds (the Bond Fund); and WHEREAS, in order to be eligible for funding, an energy efficiency project must be technically and economically feasible and have a simple payback of 10 years or less; and WHEREAS, the Energy Commission staff has recommended after a technical review of the loan application, that the Projects are worthy of receiving financial assistance; and THEREFORE, BE IT RESOLVED, the Energy Commission approves the recommendation of Energy Commission staff to provide a $425,867 loan augmentation to the City of Chula Vista's existing loan of $607,446 for a total loan amount of $1 ,033,313 from the Energy Conservation Assistance Account and/or the Bond Fund. BE IT FURTHER RESOLVED, that upon execution of all required documents, the Energy Commission hereby declares its intent to reimburse the Borrower from the Energy Conservation Assistance Account and/or the Bond Fund for approved Project expenditures delineated in the loan agreement that may occur on or after the date of this resolution. Dated: May 21, 2008 STATE ENERGY RESOURCES CONSERVATION AND DEVELOPMENT COMMISSION JACKf\ " 1/1 3 3-11 Special Conditions- City of Chula Vista Loan 1. The ReCipient shall implement all projects in Table 1. Failure to implement all projects shall reduce the. approved loan amount. The reduced loan amount will be. determined by multiplying the annual energy cost savings by 10.0. If the Recipient receives progress payments that exceed this amount, the Recipient shall refund the difference to the Commission. Table 1: Citv of Chula Vista - Summarv of Recommended Projects . Estimated Project Estimated Annual Energy Efficiency Cost and Loan Cost Savings Payback' Projects amount (Principal) (Years) Mechanical Measures Install HVAC, retrofit HVAC compressor with variable speed oil less centrifugal compressor, install VSP on water pumps $645,156 $144,798 4.5 fans, air handler fans and cooling tower fans, upgrade energy management controls on various HVAC svstems. Lighting Measures (multiple facilities and 0001 sites) Upgrade multiple lamps to high $165,445 $36,161 4.5 efficiencv Iiahtino Pool Efficiency Measures Install 2 high I efficiency condensing boilers, Replace swimming $222,712 $33,695 pool cover, reactivate hot water I 6.6 heatino Daneis. GRAND TOTAL I ALL MEASURES $1,033,313** $214.654 4.8 . Payback based on the loan amount divided by the annual savings. ** Includes both February 27 and May 21, 2008 loan approval amounts. ~ 4 3-12 2. Energy cost savings, as determined by the Commission are based on energy usage and utility costs at the time of the issuance of this Loan, and the information and data in the Borrower's loan application and technical studies. The following will not affect the Commission's initial finding of energy cost savings: a) changes in energy use. and/or rate schedules which occur after issuance of the Loan, except as required in the Special Conditions, b) deviations in the project work scope from what was approved by the Energy Commission, c) changes in the Borrower's facility and/or equipment which occur after the issuance of the loan, including, but not limited to maintenance, operations, schedules, employees and facility alterations and expansions, d) deviations, omissions or errors found in the loan application and technical studies after the loan award. The Borrower is responsible for ensuring the accuracy of the information contained in its loan application and technical studies. ,. )1' 5 3-13 'I ATTACHMENT 3 ENERGY CONSERVATION ASSISTANCE ACCOUNT LOAN AGREEMENT LOAN NUMBER: 008-07-ECC PRINCIPAL AlVlOUNT: $ 607,446.00 PROJECT TERM: 02/27/08-02/27/10 This Loan Agreement (the "Agreement") is entered into as of the date it is executed by both parties hereto, between the California Energy Resources Conservation and Development Commission (the "Commission") and City of ChuIa Vista, a City ("Borrower") located in San Diego County, California. 1. STATUTORY AUTHORITY AND LOAN A. Pursuant to the purposes authorized by section 25410, et sen.. of the California Public Resources Code (the "Energy Conservation Assistance Act"), the Commission has approved Borrower's loan application dated November 14, 2007, which is not attached but is expressly incorporated by reference herein. B. Subject to the terms, covenants, and conditions contained herein, and the Budget Detail attached as Exhibit A hereto (the "Budget Detail") to the extent it modifies Borrower's loan application, the Commission shall make a loan to Borrower (the "Loan") in the amount of six hundred seven thousand, four hundred forty-six dollars ($ 607,446.00), evidenced by a Promissory Note (the "Promissory Note") for loan number 008-07-ECC attached hereto as Exhibit B. 2. PURPOSE The Borrower agrees to expend all funds disbursed pursuant to this Agreement only for the purposes and in the amounts set forth in the attached Budget Detail (the "Project"). Any other use of funds disbursed hereunder shall require prior written approval by the Commission. 3. LOA.N DISBURSEMENT SCHEDULE A. The Commission agrees to disburse funds to the Borrower upon the Borrower's execution of the attached Promissory Note and any appropriate security instruments and required supplemental documents, including invoices as required in Section 3.C below. B. This paragraph applies only to Borrowers who have received technical assistance 01' a feasibility study by a consultant under contract to the Commission and are ;7nancing the technical assistance or feasibility study reimbursement thl'ough this Loan: The Commission will reimburse itself from the Borrower's Loan proceeds for the cost of the technical assistance or ECAA Public Entity Loan Agreement -1- Rev. 114106 ,;:' 3-14 feasibility study which was provided in accordance with the services agreement, dated N/A. Such reimbursement will occur on the date the Commission executes this Agreement and will be equal to $N/ A. C. Except for the technical assistance or feasibility study cost indicated in Section 3.B above, Loan funds shall be disbursed on a reimbursement basis based on invoices submitted by Borrower in a form approved by the Commission. Billings and proof of payment must be provided to substantiate the request. Commission staff will approve invoices only after verifying requested amounts against backup billings and determining that expenses are appropriate and used for the authorized purposes of this Loan. For executed Agreements, invoices for expenses incurred during the Project Term are eligible for reimbursement. D. All invoices must be submitted within sixty (60) days after Project completion. E. Ten percent (10%) of the Loan amount will be withheld as retention until the final report is received from the Borrower and the Commission's Project Manager determines the Project has been satisfactorily completed. 4. LOAN REPAYMENT AND INTEREST All funds disbursed hereunder, together with all interest payable thereon, shall be repaid to the Commission in accordance with the terms of the Promissory Note. The Loan shall bear simple interest at the annual rate set forth in the attached Promissory Note on the principal balance of Loan funds disbursed to the Borrower. Payment of said interest shall be due at the time of semiannual scheduled Loan repayment installments to the Commission, and interest shall accrue from the time of disbursal of funds to the Borrower until receipt of full Loan repayment to the Commission. Interest on Commission reimbursement for technical assistance or the feasibility study, if applicable, described in Section 3.B shall accrue from the date the Commission executes this Agreement until receipt of full loan repayment to the Commission. 5. TERM A. The effective date of this Agreement shall be the date on which it has been executed by both parties hereto. B. The Borrower agrees to complete performance of its obligations under this Agreement within the applicable periods stated in this Agreement. 6. PREPAYMENT Borrower shall have the right to prepay all or any part of the amount of this Loan at any time without penalty. ECAA Public Entity Loan Agreement -2- Rev. 114/06 i'i' i' 3-15 7. PROMISSORY NOTE In order to evidence its debt to the Commission hereunder, the Borrower agrees to, contemporaneously with the execution of this Agreement, execute and deliver to the Commission the Promissory Note (attached as Exhibit B hereto). 8. ACCmJNTS A. The Borrower agrees to establish on its books a separate account for this Loan. This account shall be maintained as long as the Loan obligation remains unsatisfied. B. The Borrower further agrees to maintain records that accurately and fully show the date, amount, purpose, and payee of all expenditures drawn on said account for three (3) years after this Loan is repaid in full. C. The Borrower further agrees to utilize a voucher system by which all expenditures from said account will be authorized and authenticated. D. The Borrower further- agrees to allow the Commission or any other agency of the State of California (the "State") or the federal government, or their designated representatives, on written request, to have reasonable access to, and the right of inspection of, all records that pertain to said account or the Project. The Borrower also agrees to submit to an independent audit, if requested by the Commission, at the expense of the Borrower. Borrower agrees to maintain all such records for a minimum of three years after this Loan is repaid in full, unless the Commission notifies the Borrower, prior to the expiration of such three-year period, that a longer period of record retention is necessa..ry. 9. SOURCE OF REPAYMENT; OPERATION OF PROJECT A. Semiannual payments due to the Commission under this Agreement shall be made from savings in energy costs or other legally available funds as the Borrower chooses. If Borrower is a county, city, to~, township, board of education, or school district, Borrower agrees _ that the amount of the semiannual Loan repayment shall not be raised by the levy of additional taxes and shall not be an obligation against tax revenues, but shall be obtained either from savings in energy costs resulting from the subject energy conservation projects or other legally available funds as the Borrower chooses. B. Energy cost savings as determined by the Commission are based on energy usage and serving utility rate schedules at the time of the issuance of this Loan, except as specified in Special Conditions, if any, as detailed in this Agreement, a11d the information and data contained in the Borrower's loan application and technical study. The following will not affect the Commission's initial finding ECAA Public Entity Loan Agreement ^ -~- Rev. 1/4/06 ;". 3-16 of energy cost savings, and are not a basis for claiming a lack of energy savings: a) changes in energy use andlor rate schedules which occur after issuance of the Loan, except as specified in Special Conditions, if any, as detailed in this Agreement, b) deviations in the project work scope from what was approved by the Energy Commission, c) changes in the Borrower's facility andlor equipment which occur after the issuance of the loan, including, but not limited to maintenance, operations, schedules, employees and facility alterations and expansions, d) deviations, omissions or errors found in the loan application and technical study after the loan award. The Borrower is responsible for ensuring the accuracy of the information contained in its loan application and technical study. In the event annual energy cost savings resulting from the Project, as determined by the Commission, fail to equal or exceed the amount due under this Agreement, this Agreement may be renegotiated to assure that the repayment amount does not exceed the actual energy savings or avoided costs resulting from the Project, and the Promissory Note will be revised accordingly. In no event, however, will the number of semiannual installments payable hereunder and under the Promissory Note exceed thirty. C. The Borrower shall obtain and maintain in its records any and all permits and licenses required to install or operate the Project and shall comply with all local, state, and federal laws, rules and codes concerning the Project. The Borrower shall maintain the Project in good working order for the duration of the Loan and shall insure that staff members are provided appropriate training on the operation and maintenance of the Project. The Borrower shall maintain insurance on the Project and, in the event of any casualty loss covered by such insurance policy, apply the proceeds to the repair of the Project or, with the approval of the Commission, may use the insurance proceeds to install alternate projects to generate alternative energy cost savings to repay the Loan. D. The Borrower agrees to provide the Commission with information necessary for administration of the Program for three years following completion of the Project. The needed information includes the following, at a minimum, (1) the annual computation, required by Section 25414 of the Energy Conservation Assistance Act, of energy cost savings for the most recent fiscal year, calculated in the manner prescribed by the Commission and (2) any information or change in assumptions or operations which might affect the Commission's initial determination of energy savings. E. The Borrower authorizes any official or agent of the Commission or the State to conduct physical inspections of the Project before the commencement; during construction, installation and implementation of the Project; and at any time prior to the complete repayment of the Loan. In each contract entered into with suppliers of goods and services to install, conduct, or operate the Project, including management services, the Borrower shall include terms ECAA Public Entity Loan Agreement -4- Rev. 1/4/06 ill' " 3-17 which allow any officer or agent of the Commission or the State access to the Project site and to any books, documents, or records directly relevant to the Project. F. Borrower will execute a continuing disclosure agreement to provide annual information and other operating or financial information as required by the Commission and by applicable law if Borrower is notified by the Commission that: a) its aggregate loan repayments equal or exceed 10 percent of the aggregate annual debt service on any series of Bonds, the repayment of which is secured by such loan or loans of the Borrower, or 2) its aggregate loans represent more than 10 percent of the aggregate principal amount of all Bond- funded loans pledged to a single Bond series. G. If, prior to final repayment of the Loan, the Borrower sells the equipment or material installed with the proceeds of the Loan or sells the building, facility or system in which the Project has been implemented, then the Borrower shall apply the sale proceeds to repay any remaining balance due under this Agreement in full at the time of such sale. All such transactions shall comply with the requirements in Exhibit D, Borrower Tax Certificate. The Borrower shall notify the Commission within five business days of the date on which the Borrower enters into an agreement to effect such transaction. The Borrower shall repay the Commission within 30 calendar days of receiving an invoice from the Commission for the balance due. H. In accordance with Section 25415 of the Energy Conservation Assistance Act, Borrower covenants to take such action as may be necessary to include all payments due hereunder in its annual budget and to make the necessary annual appropriations for all such payments. The obligation of the Borrower to make such payments shall be limited to the savings realized by the Borrower as a result of implementing the Project funded by the Loan. 10. DEFAULT A. The Borrower's failUre to comply with any of the terms of this Agreement shall constitute a breach of this Agreement and an Event of Default. In such case, the Commission may declare this Agreement to have been breached and be released from any further performance hereunder. B. In the event of any default or breach of this Agreement by the Borrower, the Commission, without limiting any of its other legal rights or remedies, may to the extent permitted by law, declare the Promissory Note evidencing this Loan to be immediately due and payable. ECAA Public Entity Loan Agreement -5- Rev. 114106 w' " 3-18 11. REPORTING A. Progress reports are due quarterly until Project completion. Reports are due as follows: Quarter Report Due January-March April S April-June JulyS July-September October S October-December January 5 A progress report submitted with an invoice, in accordance with Section II.C. will meet the quarterly reporting requirement if submitted within 30 days before or after the progress report due date. B. A final report is due no later than 60 days after Project completion. C. A progress report must be submitted with each request (invoice) for Loan funds. D. If requested by the Commission, Borrower shall submit, within ten (10) days after the Commission's written request, a status report on its activities to date, pursuant to this Agreement. E. Reports shall be in a format as determined by the Commission. F. The Borrower shall submit reports regarding energy savings as described in Section 9.D above. 12. GENERAL TERMS A. Indemnification bv Borrower. The Borrower agrees to indemnify, defend, and save harmless the Commission and the State and their officers, agents, and employees from any and all claims, losses, or costs (including reasonable attorney fees) arising out of, resulting from, or in any way connected with (I) the Loan or this Agreement, or the financing or the operation of the facilities financed with the Loan, or (2) the Borrower's violation or alleged violation of any tax covenant made or tax certificate executed in connection with the Loan or this Agreement or any action of the Borrower that causes interest on any bonds secured by repayment of the Loan to be included in gross income of the owners of such bonds for federal income tax purposes. ECAA Public Entity Loan Agreement -6- Rev. 1/4/06 ,!(' 3-19 ,. B. Ownersbio of Equioment and Material. All equipment and material acquired under this Agreement shall become the property of the Borrower at time of purchase. The Borrower shall obtain and maintain in its records a written waiver of all claims, other than those previously made in writing and still unsettled, from each contractor who supplies goods and services, including management services, in connection with the Project. C. Indeoendent. Caoacitv. The Borrower, and the agents and employees of Borrower, in the performance of this Agreement, shall act in an independent capacity and not as officers or employees or agents of the Commission or the State of California. D. Assignment. Without the written consent of the Commission, this Agreement is not assignable or transferable by Borrower either in whole or in part. The Cornmission may assign its rights under this Agreement for security purposes, and in such event the assignee of this Loan Agreement; including the bond trustee of any bonds which are secured by repayment of this Loan, shall be entitled to enforce the provisions hereof and shall be a third party beneficiary of this Agreement. E. Time of the Essence. Time is of the essence in this Agreement. Borrower is required to take timely actions which, taken collectively, move to completion of the purpose for which this Loan was awarded. The Commission Project Manager will periodically evaluate the progress toward completion. If the Commission Project Manager determines that the Borrower is not progressing toward completion within one (I) year after the effective date of this Agreement, the Commission Project Manager may, without penalty or prejudice to any of the Commission's other remedies, terminate this Agreement. F. Amendment. No amendment or variation of the terms of this Agreement shall be valid unless made in writing and signed by the parties hereto, and no oral understanding or agreement not incorporated herein shall be binding on any of the parties hereto. G. Severability. In the event that any prOVlSlon of this Agreement is unenforceable or held to be unenforceable, then the parties agree that all other provisions of this Agreement have force and effect and shall not be fu.'fected thereby. H. Governing Law and Venue, This Agreement is governed by and shall be interpreted in accordance with the laws of the State of California. Venue shall be in Sacramento County. 1. Non-discrimination. During the performance of this Agreement, Borrower and its contractors and subcontractors shall not unlawfully discriminate, harass, or ECAA Public Entity Loan Agreement -7- Rev. l/4/06 3-20 allow harassment against any employee or applicant for employment because of sex, race, color, ancestry, religious creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition (cancer), age (over 40), marital status, and family care leave. Borrower and its contractors and subcontractors shall insure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. Borrower and its contractors and subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code Section 12990 (a-f) et seq.) and the applicable regulations promulgated thereunder (California Code of Regulations, Title 2, Section 7285 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code Section 12990 (a-f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations, are incorporated into this agreement by reference and made a part hereof as if set forth in full. Borrower and its contractors and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. Borrower and its contractors shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under this Agreement. J. Incorporation of Energv Conservation Assistance Act. The Energy Conservation Assistance Act, together with any applicable rules, regulations or procedures authorized by such statute, is incorporated by reference in this Agreement. K. Borrower Authorization. The Borrower certifies that it has full power and authority to enter into this Agreement, and this Agreement has been duly authorized, executed and delivered by the Borrower. The Borrower acknowledges that the resolution of its governing body or other official action authorizing it to enter into this Agreement also authorizes such further acts as are necessary, including execution of the Promissory Note, to implement and further the intent of this Agreement. L. Prevailinll Walle. Borrower shall comply with Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code relating to the payment of prevailing wage for work performed on the Project financed in whole or in part with the proceeds of the Loan. 13. TAX COVENANTS The Borrower acknowledges that the proceeds of bonds issued by the California Infrastructure and Economic Development Bank., or other issuer authorized by law, may be used to fuod all or a portion of this Loan and, in consideration of such fuoding, the Borrower hereby covenants that it shall not take any action, or fail to take any action, if any such action or failure to take action would adversely affect the exclusion from gross income of interest on such bonds under Section 103 of the Internal ECAA Public Entity Loan Agreement -8- Rev. l/4/06 ;~ " 3-21 Revenue Code of 1986 and the regulations issued thereunder, as the same may be amended from time to time. In furtherance of the preceding sentence, the Borrower hereby covenants that it will comply with the provisions of the Tax Certificate which is attached hereto as Exhibit D and incorporated herein as if fully set forth herein. 14. NOTICE Any notice required to be given to the Commission hereunder shall be sent to the Commission at 1516 Ninth Street, MS-l, Sacramento, California 95814, attention Grants and Loans Office Manager, or at such other address as the Commission may designate in writing to the Borrower. Any notice required to be given to the Borrower hereunder shall be sent to the address shown below the Borrower's execution of this Agreement, or at such other address as the Borrower shall designate in writing to the Commission. Notice to either party may be given using the following delivery methods: certified mail, Federal Express, United Parcel Service, or personal delivery, providing evidence of receipt, to the respective parties identified in this Agreement. Delivery by fax or e-mail is not considered notice for the purposes of this Agreement. Notice shall be effective when received, unless a legal holiday for the State commences on the date of the attempted delivery in which caSe the effective date shall be postponed 24 hours, or whenever the next business day occurs. ECAA Public Entity Loan Agreement -9- Rev. 1/4/06 ,~ 3-22 IN WITNESS \VHEREOF, this Loan Agreement has been executed by the parties hereto. STATE OF CALIFORNIA - CALIFORNIA ENERGY COMMISSION John P. Butler IT, SSM-I PRINTED NAME OF AUTHORJZED SIGNATURE ~.i5.5M_\ AUTHORIZED SIGNATURE MANAGER, GRANTS AND LOANS OFFICE TITLE s.- 1- Oe, DATE BORROWER (If other than an individual, state whether a corporation, partnership, etc.) City ofChula Vista NAME OF BORROWER David R. GarCia PRINTED NAME OF AUTHORJZED SIGNATURE ~~~ City Manager TITLE -:/// ~p DATE MAll, ADDRESS: City ofChula Vista 276 Fourth Avenue Chula Vista, CA 92910 AMOUNT ENCUMBERED LOAN NO. 008-07-ECC FISCAL FUND -The Bank of New York YEAR I 2007/2008 ECAA - 200SA Bond Series $ 607,446.00 APPROPRIATION ORG. C-191, Program Loan Accl. Series 200SA Program - Account Number LINE ITEM ALLOTMENT NIA APPROPRIATION ADO I I I $ro~ I HEREBY CERTIFY UPON MY OWN PERSONAL KNOWLEDGE THAT BUDGETED FUNDS ARE AVAILABLE FOR THE PERIOD AND PURPOSE OF THE EXPENDITURE STATED ABOVE. SIGNATURE OF ACCOUNTING OFFICER --.j..JJ--- ECAA Public Entity LOllD Agreement i.';- 'If I DATE I "3}rr/o&- -10- Rev. 114/06 3-23 EXHIBIT A BUDGET DETAILS GLNUMBER: 008-07-ECC RECil'IENT: CITY OF CHULA VISTA SEQ NO.: INSTITUTION: BUILDING TYPE: BUILDING USE: ECM CODE: ECM STATUS: ECM BUDGET: SEQ NO.: INSTITUTION: BUILDING TYPE: BUILDING USE: ECM CODE: ECM STATUS: ECM BUDGET: Budget Details 1 City Other Multi Building test ECX CONY OTHER LT Approved $131,521.00 2 City Other Multi Building test MAX OTHER A1R COND $475,925.00 A-I i" " 3-24 EXHIBIT B PROMISSORY NOTE B-1 I". " 3-25 EXHIBIT B PROMISSORY NOTE LOAN NUMBER: PRINCIPAL AMOUNT: INTEREST RATE: 008-07-ECC $ 607.446.00 3.95% 1. For value received, the undersigned, (hereinafter referred to as the "Borrower"), promises to pay to the order of the State of California., Energy Resources Conservation and Development Commission (hereinafter referred to as the "Commission"), at its principal place of business at 1516 Ninth Street, Sacramento, California 95814, or at such other place as the Commission may designate, (1) the principal sum of six hundred seven thousand, four hundred forty-six dollars ($ 607,446.00) or such lesser amount as shall equal the aggregate amount disbursed to the Borrower by the Commission pursuant to the above-referenced Energy Conservation Assistance Account Loan Agreement (the "Loan Agreement") between the Borrower and the Commission, together with interest thereon at the rate of 3.95 percent per annum on the unpaid principal, computed from the date of each disbursement to the Borrower, and (2) the amount of Commission reimbursement for technical assistance or feasibility study cost, if applicable, from the date the Commission executes the Loan Agreement, until the loan is repaid by the Borrower, at the rate of 3.95 percent per annum on the unpaid principal. Principal, together with interest thereon, is due and payable in semiannual installments as specified in the Estimated Amortization Schedule, attached hereto as Exhibit C, and as amended in the Final Amortization Schedule, beginning on or before December 22 of the fiscal year following the year in which the Project is completed and continuing thereafter on each June 22 and December 22 until said principal and interest shall be paid in full. The Final Amortization Schedule, and any amended Final Amortization Schedule(s) are not attached but are expressly incorporated by reference herein. 2. Payment of any scheduled installment received within thirty (30) days after its due date shall be considered to have been received on its due date and shall be first applied to accrued interest from the date of disbursal to the Borrower and the balance, if any, to principal. Payment of any scheduled installment received more than thirty (30) days after its due date but before the next billing shall be considered late, and interest on the unpaid principal shall accrue from date of disbursal to the Borrower through the actual payment date. However, payment of any scheduled installment received after a subsequent billing shall be considered overdue, and interest shall accrue on the unpaid principal from date of disbursal to the Borrower through the subsequent billing due date or actual payment date, whichever is later. 3. The Borrower may prepay this Promissory Note in full or in part, without penalty. 4. In accordance with Section 25415 of the Energy Conservation Assistance Act, Borrowerocovenants to take such action as may be necessary to include all payments due hereunder in its annual budget and to make the necessary annual appropriations for all such ECAA Promissory Note B-2 Rev. 11112/03 /.'! " 3-26 payments. The obligation of the Borrower to make such payments shall be limited to the savings realized by the Borrower as a result of implementing the Project funded by the Loan. 5. If any installment is not paid within thirty (30) days after its due date, the Commission, at its option, may require the Borrower to pay a late charge equal to five percent (5%) of the amount of the installment or Five Dollars ($5.00), whichever is greater. 6. On the occurrence of any event of default, the Commission, at its sole election and without limiting any of its other legal rights or remedies, may, to the extent permitted by law, declare all or any portion of the principal and accrued interest on this Promissory Note to be immediately due and payable and may proceed at once without further notice to enforce this Promissory Note according to law. 7. Each of the following occurrences shall constitute an event of default: A. Failure of the Borrower to repay any principal or interest when due under the terms of this Promissory Note; B. Termination of the Loan Agreement pursuant to the terms thereof or breach by the Borrower of any terms of said Loan Agreement; C. Failure of the Borrower to undertake in a timely way the express and implied activities for which said Loan Agreement has been executed; D. Failure of the Borrower to obtain prior written Commission approval before undertaking a change in the scope of the activities for which said Loan Agreement has been executed; or E. Occurrence of (I) the Borrower becoming insolvent or bankrupt or being unable or admitting in writing its inability to pay its debts as they mature or making a general assignment for the benefit of or entering into any composition or arrangement with creditors; (2) proceedings for the appointment of a receiver, trustee, or liquidator of the assets of the Borrower or a substantial part thereof, being authorized or instituted by or against the Borrower; or (3) proceedings under any banlauptcy, reorganization, readjustmeniof debt, insolvency, dissolution, liquidation or other similar law, or any jurisdiction being authorized or instituted against the Borrower. 8. No delay or failure of the Commission in the exercise of any right or remedy hereunder or under any other agreement which secures or is related hereto shall affect any such right or remedy, and no single or partial exercise of any such right or remedy shall preclude any further exercise thereof, and no action taken or omitted by the Commission shall be deemed a waiver of any such right or remedy. ECAA Promissory Note B-3 Rev. 11/12/03 ;-~' ,~ 3-27 ,.- 9. A.T1Y notice to the Borrower provided for in this Promissory Note shall be given by mailing such notice by certified mail, return receipt requested, addressed to the Borrower at the address stated in the Loan Agreement, or to such other address as the Borrower may designate by notice to the Commission. Any notice to the Commission shall be given by mailing such notice by certified mail, return receipt requested, to the Commission at the address stated in the Loan Agreement, or at such other address as may have been designated by notice to the Borrower. 10. If suit is brought to collect any part of this Promissory Note, the Commission shall be entitled to collect all reasonable costs and expenses of said suit and any appeal therefrom, including reasonable attorney's fees. II. This Promissory Note shall be binding upon the Borrower and its permitted successors and assigns and upon the Commission and its permitted successors and assigns. Without the written consent of the Commission, this Promissory Note is not assignable or transferable by Borrower either in whole or in part. The Corrnnission may assign its rights under this Promissory Note for security purposes, and in such event the assignee of this Promissory Note, including the bond trustee of any bonds which are secured by repayments of this Promissory Note, shall be entitled to enforce the provisions hereof and shall be a third party beneficiary of this Promissory Note. 12. This Promissory Note shall be construed and enforced in accordance with the laws of the State of California. City ofChula Vista BORROWER David R. Garcia PRINTED NAME OF AUTHORIZED REPRESJ:; AT~.,_,../~ 11:; t~i,Manaqer . TITLE c// /i1 r DATE ECAA Promissory Note B-4 Rev. ilfl2103 1'" 'F'" 3-28 ,. EXHIBIT C ESTlM..<\TED AMORTIZATION SCHEDULE C-l i.r;" 3-29 :l005A ECAA Revenue Bond Lean Number: 008-07-ECC Recipient: CITY OF CHULA VISTA Loan Amount: $607,446.00 Interest Rate: 3.950% Number of Payments: a Est~ted First Disbursement Date: 02/28/2009 Est~ted project Completion Date: 02/27/20~O Assumed First ~ayment Date: ~2/22/2010 Energy Savings: $180,410.00 Loan Based on Annual Energy Savings Accrued Principal Unpaid Date Transaction Amount :Lnterest Reduction Principal 02/2812009 Disbursement $607,446.00 $0.00 $0.00 $607,U6.00 ~2/22/20~0 Payment No. 1 $87,051.41 $43,5~8.~0 $43, 533 .3~ $563,912.69 06/22120~~ Payment No. 2 $87,051.41 $U,~06.76 $75,944.65 $487,968.04 ~2/22120n payment No. 3 $87,05~.4~ $9,663 .77 $77,387.64 $4~0,580.40 06122/20~2 Payment No. 4 $87,051.41 $8, :1.31. ~8 $78,920.23 $33:1.,660.:1.7 ~2/22120~2 Payment No. 5 $87,05:1..4~ $6,568.23 $80,483.18 $251,176.99 06/22/2013 Payment No. 6 $87,05~.41 $4,947.15 $82,~04.26 $169,072.73 ~2/22/2013 paym.ent No. 7 $87, 051.4~ $3,348.33 $83,703.08 $85,369.65 06/22120~4 Payment No. 8 $87,051.08 $1,681.4.3 $85,369.65 $0.00 Note: Th.is Schedule is only a~ estimate. When your project is completed, you wi~l be issued a final schedule based on actual disbursement{s} and completion date. This amortization sohed~e assumes payments of a~l 1nsta~~ents are made on their due dates in aooordenoe with the ter.ms of the ~r.omiseo~ note. Any payment of installment considered to have been made late in aocordance with the terms of the promissory note and any unscheduled prepayment will affect accrued interest, princ1pal reduetiont unpaid principal, and total repayment. 1;'" -C2- 3-30 .- EXHIBIT D TAX CERTIFICATE D-l ;.". 3-31 EXHIBIT D TAX CERTIFICATE LOAN NUMBER: REVENUE BOND SERIES: REVENUE BOND ISSUANCE DATE: 008-07-ECC 2005A Mav 11,2005 In connection with the issuance by the California Infrastructure and Economic Development Bank (the "Bank"), or other issuer authorized by law, of its Bonds, (the "Bonds"), a portion of the proceeds of which will be used to fund, in whole or in part, a loan to the undersigned borrower (the "Borrower'), under the Loan Agreement (the "Loan"), from the California Energy Commission (the "Commission"), to finance the acquisition and/or construction of a capital project of the Borrower (the "Project"), the Borrower hereby certifies, with respect to proceeds of the Loan drawn by the Borrower, as follows: 1. Use of Proceeds and Project. During the period in which the Loan is outstanding, the Borrower shall not (1) sell or otherwise dispose of the Project or any portion thereof to an entity that is not a governmental unit (for this purpose "governmental unit" shall mean only a state or local governmental unit), (2) enter into a lease of the Project or any portion thereof, regardless of type or duration, with an entity other than a governmental unit, (3) enter into a ma'1agement or service contract with respect to the Project or any portion thereof with an entity other than a governmental unit, unless such management or service contract complies with the requirements of Revenue Procedure 97-13, 1997-1 C.B. 632, as amended by Revenue Procedure 2001-39, 2001-28, LR.B. 38 (collectively, "Revenue Procedure 97-13"), (4) otherwise enter into any other arrangement with respect to the Project or any portion thereof that gives rise to a "private business use," within the meaning of Section 141 of the Internal Revenue Code of1986, as amended (the "Code"), of the Project or any portion thereof, or (5) make any other use of the proceeds of the Loan that gives rise to a "private business use" of the proceeds of the Loan or any portion thereof. The Borrower shall notify the Commission of any of the aforementioned transactions within five business days of the date on which the Borrower enters into an agreement to effect such transaction. In the case of a sale or disposition of the Project or any portion thereof by the Borrower to a governmental unit, such sale or disposition shall obligate the Borrower to require said governmental unit to assume all covenants and responsibilities in this section. In the event the Borrower sells or disposes of the Project or any portion thereof to a Governmental Unit, the Borrower shall, upon such sale or disposition, repay the Loan or portion thereof allocable to the Project or portion thereof, as the case may be, and shall apply any proceeds it derives from the sale of the Project or portion thereof, as the case may be, to such repayment. Such amount shall be due and payable to the Commission within thirty (30) calendar days of receiving an invoice from the Commission for the balance due. As of the date hereof, (a) no portion of the Project is subject to a lease with a person that is not a governmental unit, and (b) no portion of the Project is subject to a management or service contract, with an entity other than a governmental unit, that does not comply \'lith Revenue Procedure 97-13. EC.-\...!\ Tax Certificate D-2 Rev. 12120/04 7!" ,~ 3-32 .' 2, No Further Loans. The Borrower shall not allocate any portion of the proceeds of the Loan to the financing of a loan by the Borrower to another entity. 3. No Payment of Debt. The Borrower shall not use any por60n of the proceeds of the Loan to pay the principal of or interest on any outstanding indebtedness of the Borrower. 4. Permitted Bases for Paving: Exnenses. All proceeds of the Loan drawn by the Borrower shall either (1) be used to reimburse the Borrower for costs of the Project paid by the Borrower (a) in anticipation of receiving such proceeds, (b) prior to the date of requisition for such draw, and (c) after the date of approval of the Commission resolution authorizing payment from proceeds of the Bonds or the Energy Conservation Assistance Account, (2) reflect a direct payment by or on behalf of the Commission to the Borrower's vendor in accordance with an arrangement approved, established and implemented by the Commission with respect to such Borrower, or (3) reflect an alternative arrangement that has been approved by Bond Counsel with respect to the Bonds and communicated in writing by the Commission to the Borrower. 5, Canital Exnenditures Onlv. The Borrower shall allocate the proceeds of the Loan solely to costs of the Project that constitute capital expenditures (which may include, among other things, "soft costs" that are properly capitalizable into the cost of the Project). No expenditures to which proceeds of the Loan will be allocated by the Borrower will be operating or working capital expenditures. 6. Economic Life of Project. The Project has a reasonably expected economic that is at least equal to the term of the Loan. 7. No Reolacement of Other Moneys. No portion of the proceeds of the Loan is being used as a substitute for other moneys that (a) would have been used to finance the Project to which proceeds of the Loan are being allocated if proceeds of the Bonds were not used to fund the Loan, and (b) have been or will be used to acquire, directly or indirectly, securities or obligations or other investment property. 8. Payment of Loan Debt Service. Payments of debt service on the Loan shall be made directly by the Borrower and, except as provided in the next sentence, the Borrower shall not set aside any moneys for such purpose in advance of such payments. The Borrower may, if it chooses to do so, set aside moneys in a fund or account in advance of a debt service payment date, but only where the Borrower makes such set-aside no more than one year prior to the time such money will be needed, such that any moneys so set aside, together with investment earnings thereon, will be used within one year of such set-aside to pay debt service on the Loan. Any fund or account so established for such purpose will be depleted no less frequently than annually. The Borrower shall make no other set- aside, nor establish any other fund or account, that is reasonably expected to pay debt service on the Loan or that is otherwise pledged as collateral for the Loan so as to create a reasonable assurance that amounts represented by such set-aside, or in such fund or account, would be available to pay debt service on the Loan in the event the Borrower were to encounter fmancial difficulties. Nothing in this Section is intended to affect the ECAA Tax Certificate D-3 Rev. 12/20104 I.'!' ., 3-33 -- requirement that the Borrower make payments of debt service on the Loan from certain energy-related savings_ 9. No Federal Guarantee. The Borrower shall not enter into any arrangement with respect to the Project or any portion thereof obligating the United States or any agency or instrumentality thereof to make payments of any kind to the Borrower. 10. No Purchase of Bonds. The Borrower shall not purchllse any of the Bonds, on the open market or otherwise. City of Chula Vista BORROWER q') - CodDO G,qo FEDERAL EMPLOYER IDENTIFICATION NUMBER Oavid R. Garcia PRINTED NAME OF AUTHORIZED 7Il:lML JTIT 0 SIGNATURE City Manaqer TITLE ~~~f DATE ECA-A. Tax Certificate D-4 Rev. 12120/04 1;0' 3-34 RESOLUTION NO: 08-0227-6 STATE OF CALIFORNIA STATE ENERGY RESOURCES CONSERVATION AND DEVELOPMENT COMMISSION RESOLUTION':'" Re: Energy Efficiency Loan to the City of Chula vista WHEREAS, pursuant to the Energy Conservation Act of 1979, Public Resources Code Sections 25412 et. seq., the State Energy Resources Conservation and Development Commission (the "Energy Commission") is authorized to provide a loan to the City of Aiameda (the "Borrower") to finance 'energy efficiency projects (the "Projects"); and WHEREAS, the California Infrastructure and Economic Development Bank (the "Bank") is authorized to finance energy efficiency loan programs administered by the Energy Commission, which includes the issuance of the Bank's bonds to finance the Energy Commission's energy efficiency financing program; and WHEREAS, the Bank is authorized to issue Energy Efficiency Revenue Bonds (the Bond Fund); and WHEREAS, in order to be eligible for funding, an energy efficiency project must be technicaliy and economicaliy feasibl.e and have a simple payback of 10 years or less; and WHEREAS, the Energy Commission staff has recommended after a technical review of the loan application, that the Projects are worthy of receiving financial assistance; and THEREFORE, BE IT RESOLVED, the Energy Commission approves the recommendation of Energy Commission staff for a $607,446 loan from the Energy Conservation Assistance Account and/or the Bond Fund. BE IT FURTHER RESOLVED, that upon execution of ali required documents, the Energy Commission hereby declares its intent to reimburse the Borrower from the Energy Conservation Assistance Account and/or the Bond Fund for approved Project expenditures delineated in the loan agreement that may occur on or after the date of this resolution. Dated: February 27, 2008 STATE ENERGY RESOURCES CONSERVATION AND DEVELOPMENT COMMISSION JACKAL Y PFANNENSTIEL, Chairman )",. -11- " 3-35 RESOLUTION NO, 2007- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOLA V1STA AOTI:IORlZING THE CITY MANAGER TO EXECUTE ALL DOCTJMENTS JN CONJUNCTION WTI:I OBTAlNING LOA-HS - TIffiOUGH THE CALIFORNIA ENERGY COMMISSION AND THE SDG&E ON-BILL FINANCING PROGRAM, NOT TO EXCEED A TOTAl OF TWO MIllION DOLLARS WHEREAS, the California Energy Commission (CEC) provides loans to local governments to fillance energy efficiency improvements; and WHEREAS, San Diego Gas & Electric (SDG&E) of(ers an "On-Bill Financing" (OBF) Program to help commercial customers pay for energy-efficient business improvements through their SDG&E bill; and WHEREAS, staff is requesting authorization to obtain loans througb the CEC and the SDG&E DBF Program; and WHEREAS, the loans would bri,dge the financial gap between energy conservation project capital costs and the available rebates for energy conservation equipment; and WHEREAS, tbe estimated annual debt service for an the proposed projects 1S $90,200, whicb is less than the projected annual savings of$137,824; and WHEREAS, tbe SDG&E and City of Chula Vista Energy Conservation Partnership funds the personnel costs to identify, analyze and administer implementation of the individual projects; and WdEREAS, the proposed projects will produce immediate environmental benefits by reducing energy consumption; and WHEREAS, staff is also working with SDG&E and other City Departments to identify project priorities for the remaining Pa.."1:nership funds that meet the state's kilowatt savings requirements, the City's env.ironmental goals and help reduce general fund costs whenever possible; and WdEREAS, staff is requesting authorization to use a combination of loans and On Bill Financing for up to two mi11ion dollars to: (1) address the funding gap for the attached list of capital projects; fu,d, (2) fund additional energy conservation and renewable energy projects that staff anticipates adding to the list during tbe remaining Pa..rtnership Program cycle which ends December 2008; and J~. -12- ,. 3-36 ,..." Resolution No. 2007- Page 2 "lVHEREAS, adoption of the resolution will have no negative impact on the general fund. NOW, TIfEREFORE, BE IT RESOLVED, that the City Council of the City of Chula Vista authorizes the City of Chula Vista to apply far an energy efficiency loan from the California Energy Commission to implement energy efficiency measures. BE IT FURTIfER RESOLVED, that if recommended for funding by the California Energy Commission, the City Council authorizes the City to accept a loan up to $2 milli on. BE IT FURTHER RESOLVED, that the amount of the loan will be paid in full, plus interest, under the t~rms and conditions of the Loan Agreement, Promissory Note and Tax Certificate of the California Energy Commission. BE IT FURTHER RESOL YED, that the City Manager is authorized to execute all documents in conjunction with implementing "on-bill financing" agreements with SDG&E, not to exceed a total of $2 million. BE IT FURTHER RESOLVED, that the City Manager is hereby authorized and empowered to execute in the name of the City of Chula Vista all necessary documents to implement and carry out the purpose of this resolution, and to undertake all actions necessary to undertake and complete the energy efficiency projects. Presented by Approved as to form by '~;fJda'J (I--Ann M Ole . ( "f' Gity orney . ichael Meacham, Director Department of Conservation & Environmental Services J:V.llD",~)'\RESov.GR;eEMS"N'TS'l!:~lifDrnQ En~r~ Cllnlm;~~iQfl_1 D-O:l-07 .llll~ ;'{ -13- " 3-37 RESOLUTION NO. 2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING $256,424 IN LOAN FUNDS FROM THE CALIFORNIA ENERGY COMMISSION FOR ENERGY- EFFICIENCY IMPROVEMENTS AT THE LOMA VERDE POOL COMPLEX AND POSSIBLE PROJECT COST INCREASES ASSOCIATED WITH PREVlOUSL Y APPROVED ENERGY- EFFICIENCY RETROFIT PROJECTS AT THE PUBLIC WORKS CORP YARD AND LOMA VERDE RECREATION CENTER; AMENDING THE FISCAL YEAR 2008-2009 CAPITAL IMPROVEMENT PROGRAM AND CEC ENERGY LOAN FUND; AND APPROPRIATING $256,424 IN NEW LOAN FUNDS TO CAPITAL IMPROVEMENT PROJECT G0202 (CEC ENERGY EFFICIENCY LOAN - PHASE 1) WHEREAS, on September 25, 2007, City Council authorized the Department of Conservation and Environmental Services to pursue up to $2,000,000 in California Energy Commission ("CEC") loans to bridge the financial gap between capital costs and incentives for municipal energy efficiency and renewable energy retrofit projects (Resolution 2007-241) and authorized the City Manager to execute all necessary documents for the loans; and WHEREAS, in March 2008, the CEC awarded the City a loan in the amount of $607,446; and WHEREAS, the total loan amount was based on estimated total net project costs which factor in applicable SDG&E incentives or $203,155; and WHEREAS, the CEC subsequently informed staff that it encourages applicants to apply for the total gross project costs, allowing the applicants greater implementation flexibility if actual project costs are more than the originally estimated amounts; and WHEREAS, staff received permission from the CEC to adjust the original loan amount to reflect the total project costs of up to $810, 601; and WHEREAS, shortly after being awarded the CEC loan, the Lorna Verde Pool Complex's boiler system which is used to heat both domestic and pool water ceased operating properly; and WHEREAS, Engineering Department staff has identified a replacement boiler as a top priority for its Capital Improvement Program due to the Complex's reliance on the boiler for proper operations and public use; and WHEREAS, staff has also identified the replacement of the pool's solar hot water system as a top priority to further maximize the future energy cost savings and reduce the City's greenhouse gas emissions; and l\AttorneyIJlLLM\CEC LOAN\CEC LQan Amendment Reso ]dQ~ 3-38 Resolution No. 2008- Page 2 WHEREAS, staffhas received approval from the CEC to increase the loan to cover the total gross project costs of $222,712 for the new boiler and solar hot water systems (Energy Efficiency Improvements Phase IB); and WHEREAS, $256,424 of the additional loan funds will be used for energy-efficiency improvement projects at the Lorna Verde Pool Complex and possible project cost increases associated with previously approved energy-efficiency retrofit projects at the Public Works Corp Yard and the Lorna Verde Recreation Center; and WHEREAS, the additional loan funds will ensure the public facilities' operational reliability and reduce its energy consumption and will allow greater implementation flexibility for previously approved energy-efficiency improvement projects. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it: 1. Accepts $256,424 in loan funds from the California Energy Commission for energy-efficiency improvement projects at the Lorna Verde Pool Complex and possible project cost increases associated with previously approved energy-efficiency retrofit projects at the Public Works Corp Yard and the Lorna Verde Recreation Center. 2. Amends the Fiscal Year 2008/2009 Capital Improvement Program and CEC Energy Loan Fund. 3. Appropriates $256,424 in new loan refunds to Capital Improvement Project 00202 (CEC Energy Efficiency Loan - Phase 1). Presented by Approved as to form by Michael Meacham Director of Conservation and Environmental Services Richard Hopkins Director of Engineering JlAllomeyVILLMlCEC LOA1'\J\CEC Loan Amendment Reso ldoc 3-39 RESOLUTION NO. 2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING $150,800 IN LOAN FUNDS FROM THE CALIFORNIA ENERGY COM.t\1ISSION FOR POSSIBLE PROJECT COST INCREASES ASSOCIATED WITH PREVIOUSL Y APPROVED ENERGY-EFFICIENCY RETROFIT PROJECTS AT THE CIVIC CENTER BRANCH LIBRARY, POLICE DEPARTJ'vIENT HEADQUARTERS, AND PARKWAY RECREATION CENTER; AMENDING THE FISCAL YEAR 2008-2009 CAPITAL IMPROVEMENT PROGRAM AND CEC ENERGY LOAN FUND; AND APPROPRIATING $150,800 IN NEW LOAN FUNDS TO CAPITAL IMPROVEMENT PROJECT GG202 (CEC ENERGY EFFICIENCY LOAN - PHASE 1) WHEREAS, on September 25, 2007, City Council authorized the Department of Conservation and Environmental Services to pursue up to $2,000,000 in California Energy Commission CCEC") loans to bridge the financial gap between capital costs and incentives for municipal energy efficiency and renewable energy retrofit projects (Resolution 2007-241) and authorized the City Manager to execute all necessary documents for the loans; and WHEREAS, in March 2008, the CEC awarded the City a loan in the amount of $607,446; and WHEREAS, the CEC subsequently informed staff that it encourages applicants to apply for the total gross project costs, allowing the applicants greater implementation flexibility if actual project costs are more than the originally estimated amounts; and WHEREAS, staff received permission from the CEC to adjust the original loan amount to reflect the total project costs; and WHEREAS, $150,800 of the additional loan funds will be used for possible project cost increases associated with previously approved energy-efficiency retrofit projects at the Civic Center Branch Library, Police Department Headquarters and Parkway Recreation Center; and WHEREAS, the additional loan funds will ensure the public facilities' operational reliability and reduce its energy consumption and will allow greater implementation flexibility for previously approved energy-efficiency improvement projects. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it: J\AtlornayIJILLlv!\CEC LOM"\CEC Loan Amendment Reso 2_doe 3-40 Resolution No. 2008- Page 2 1. Accepts $150,800 in loan funds from the California Energy Commission for possible project cost increases associated with previously approved energy-efficiency retrofit projects at the Civic Center Branch Library, Police Department Headquarters and Parkway Recreation Center. 2. Amends the Fiscal Year 2008/2009 Capital Improvement Program and CEC Energy Loan Fund. 3. Appropriates $150,800 in new loan refunds to Capital Improvement Project GG202 (CEC Energy Efficiency Loan - Phase 1). Presented by Approved as to form by ~Q:iJJ.J&uJ c ~art . Mies I '\ f ~Clty orney Michael Meacham Director of Conservation and Environmental Services Richard Hopkins Director of Engineering J\AttomeyIJILLI\iI\CEC LOAN\CEC Loan Am~ndmenl Reso 2.doc 3-41 RESOLUTION NO. 2008- RESOLUTION OF THE CITY COlTNCIL OF THE CITY OF CHULA VISTA ACCEPTING $18,643 IN LOAN FUNDS FROM THE CALIFORNIA ENERGY COMMISSION FOR POSSIBLE PROJECT COST INCREASES ASSOCIATED WITH PREVIOUSL Y APPROVED ENERGY-EFFICIENCY RETROFIT PROJECTS AT THE SOUTH CHULA VISTA BRANCH LIBRARY; AMENDING THE FISCAL YEAR 2008- 2009 CAPITAL IMPROVEMENT PROGRAM AND CEC ENERGY LOAN FUND; AND APPROPRIATING $18,643 IN NEW LOAN FUNDS TO CAPITAL IMPROVEMENT PROJECT GG202 (CEC ENERGY EFFICIENCY LOAN - PHASE 1) WHEREAS, on September 25, 2007, City Council authorized the Department of Conservation and Environmental Services to pursue up to $2,000,000 in California Energy Commission ("CEC") loans to bridge the financial gap between capital costs and incentives for municipal energy efficiency and renewable energy retrofit projects (Resolution 2007-241) and authorized the City Manager to execute all necessary documents for the loanS"; and WHEREAS, in March 2008, the CEC awarded the City a loan in the amount of $607,446; and WHEREAS, the CEC subsequently informed staff that it encourages applicants to apply for the total gross project costs, allowing the applicants greater implementation flexibility if actual project costs are more than the originally estimated amounts; and WHEREAS, staff received pennission from the CEC to adjust the original loan amount to reflect the total project costs; and WHEREAS, $18,643 of the additional loan funds will be used for possible project cost increases associated with previously approved energy-efficiency retrofit projects at the South Chula Vista Branch Library; and WHEREAS, the additional loan funds will ensure the public facility's operational reliability and reduce its energy consumption and will allow greater implementation flexibility for previously approved energy-efficiency improvement projects. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it: 1. Accepts $18,643 in loan funds from the California Energy Commission for possible project cost increases associated with previously approved energy-efficiency retrofit projects at the South Chula Vista Branch Library. J:\AttorneyVILLM\CEC LOM'\CEC Loan Amendment Reso 3 doc 3-42 Resolution No. 2008- Page 2 ) Amends the Fiscal Year 2008/2009 Capital Improvement Program and CEC Energy Loan Fund. 3. Appropriates $18,643 in new loan refunds to Capital Improvement Project 00202 (CEC Energy Efficiency Loan - Phase I). Presented by Approved as to form by Michael Meacham Director of Conservation and Environmental Services Richard Hopkins Director of Engineering J:\Auarney\JILL]'v[\CEC LOA..'l\CEC Loan Amendment Reso J.doc 3-43 CITY COUNCIL AGENDA STATEMENT ~\'f::.. CITY OF II CHUlA VISTA ITEM TITLE: SUBMITTED BY: REVIEWED BY: SUMMARY July 15,2008 Item 4 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE FORlvlAL CONSULTANT SELECTION PROCESS AND APPROVING AN AGREEMENT WITH THE SAN DIEGO STATE UNIVERSITY RESEARCH FOUNDA nON IN THE AMOUNT OF ONE HUNDRED EIGHTY TWO THOUSAND FOUR HUNDRED NINETY DOLLARS ($182,490) TO CONDUCT A FEASIBILITY STUDY FOR A DISTRICT ENERGY SYSTEM FOR THE BA YFRONT PROJECT AREA AS PART OF THE SAN DIEGO GAS AND ELECTRIC PARTNERSHIP PROGRAM, AND TRANSFERRING $25,240 FROM STAFF COSTS TO CONSULTANT COSTS WITHIN THE ENERGY CONSERVATION FUND ECONOMIC DEVELOPMENT OFFICERtt-tJ j)-; CITY MANAGER <, r h, r D~~ 4/5THS VOTE: YES ~ NO D Since March of 2006, the National Energy Center for Sustainable Communities (NECSC), a collaboration between the City, San Diego State University and the Gas Technology Institute, have been working to advance responsible use of energy resources through the planning process of major developments throughout Chula Vista. The research provides a road map for Chula Vista to integrate advanced energy practices at the building and community design level in a manner that makes the most of the economic and environmental opportunities. In an effort to further the work of the NECSC, and the broader environmental initiatives of the City of Chula Vista, staff is recommending approval of an additional contract with the San Diego State University Research Foundation to study the feasibility of a district energy system as part of the overall development of the Chula Vista Bayfront utilizing the funding from the San Diego Gas & Electric (SDG&E) Partnership Grant Program administered by the City's Conservation and Environmental Services Department. 4-1 January 15,2008, Item 4 Page 2 of5 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 project falls under the statutory exemption pursuant for feasibility and planning studies in accordance with to Section 15262 of the State CEQA Guidelines. Thus, no further environmental review is necessary. RECOMMENDATION That the Council adopt the resolution BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION The SDG&E Partnership Program (Program) provides funding to develop energy efficiency services for City, commercial and residential facilities. The City receives approximately $731,000 annually from SDG&E for this program. Per the terms of the agreement, this amount is intended to rise to approximately $2 million annually in future program years. A primary goal for the City and SDG&E is more energy efficient developments and reduced energy costs for the residents and occupants of those developments, as well as meeting the City's much broader goals for reducing greenhouse gas emissions. To date, the Program has provided funding to allow for the NECSC to conduct research and analysis for the Creekside Vistas condominiums and the Los Vecinos affordable apartment project. The research analyzed energy, economic and environmental impacts of both planned and alternative building design options for both sites. This approach entailed modeling building envelope energy losses, internal loads, and space conditioning and ventilation for the planned residential structures. An essential aspect of the NECSC mission is the demonstration of technologies, plans, public policies and market-feasible business models for energy- and resource-efficient community development throughout the City of Chula Vista. Through the SDG&E Partnership Program, the NECSC, in conjunction with the San Diego State University Research Foundation (SDSURF), seeks to study the feasibility of integrating a district energy system as part of the Chula Vista Bayfront development. This proposed research project will determine the technical and economic feasibility and environmental benefits of a district energy system. District energy systems produce electricity, hot water, steam and/or chilled water at a central plant and then distribute the energy through underground wires and pipes to adjacent buildings connected to the system. Electricity is used to energize lights, appliances, equipment and machinery, while hot and chilled water and steam are used for space heating and cooling, domestic hot water needs and a variety of commerciall industrial processing uses. District energy systems contribute to community sustainability and security by maximizing the efficient use of a variety of fuels to co-generate and deliver electricity and thermal 4-2 January 15, 2008, Item 4 Page 3 of5 energy, locally. Because district energy thermal networks aggregate and link the heating and cooling requirements of dozens or hundreds of buildings, they create a greater scale of thermal energy use in a community that facilitates fuel flexible solutions at a central plant or plants and allow for thermal storage applications that would not otherwise be functionally or economically feasible on an individual building basis. The project will produce a number of benefits for the City of Chula Vista and its utility partner, San Diego Gas and Electric (SDG&E). Specifically, the project will produce: . A thorough examination of the economic and environmental costs and benefits of a district energy system for the site, with a special focus on greenhouse gas reduction; . A recommendation for an optimal district system that could increase energy reliability, stabilize energy costs, attract new businesses to and raise property values in the site; . An assessment of the impact of a district energy system on peak demand and on future utility distribution planning for the site; . A technical basis from which municipal decision-makers can assess the potential value of including a district energy system in the infrastructure planning for the Bayfront site. Should the system be built, it will provide a state-of-the-art demonstration showcasing renewable and district energy technologies in a unique application that will draw visitors from across the U.S. Finally, the project will provide utility and state regulatory officials additional technical data upon which to assess the value of district energy systems in meeting California's greenhouse gas emission reduction goals under the California Global Warming Solutions Act of2006 (AB32). In an effort to promote the work of the NECSC, the CVRP, and the broader environmental initiatives of the City of Chula Vista, staff is recommending that the City contract with the SDSURF to continue that work and the relationships established with the local, state and federal agencies that have lead to the funding and project successes to date. The SDSURF has developed a detailed plan that will be implemented during the balance of the 2008 calendar year utilizing funding from the San Diego Gas & Electric (SDG&E) Partnership Grant Program administered by the City's Conservation and Environmental Services Department. The SDG&E Partnership Grant Program was adopted by the City on September 19, 2006, and requires staff to provide public education and specific energy services that reduce kilowatt and therm consumption at the local government, commercial and residential level through December 31, 2008. The demonstration projects implemented by Economic Development in cooperation with the National Energy Center project and Conservation and Environmental Services Department are a component of the portfolio of energy programs that are of vital importance to the Energy Commission, SDG&E and other agencies that look to Chula Vista's continued leadership in environmentally and economically sustainable energy practices. 4-3 January 15,2008, Item 4 Page 4 of5 Bidding Process Waiver Chula Vista Municipal Code section 2.56.070 requires that the contracts for all supplies, equipment and services when the estimated cost exceeds $100,000 shall be awarded by the City Council to the lowest responsive and responsible bidder submitting the best bid in accordance with a competitive bidding process. Exceptions to this requirement may be granted where there is a commodity or service available from only one known source as the result of unique performance capabilities, compatibility requirements or market conditions. The competitive bidding requirements may be waived by the City Council when they are impractical, impossible or the city interests would be materially better served by a different procurement process. Staff is recommending that the formal bidding process be waived for the district energy feasibility study as part of the work of the National Energy Center for Sustainable Communities in partnership with the San Diego Gas and Electric Partnership Program. This recommendation is based on the following capabilities that are uniquely being offered to the City by the SDSURF: . The SDSURF, in partnership with San Diego State University is a founding member of the National Energy Center for Sustainable Communities, a joint partnership established through a memorandum of understanding approved by the City Council March 28, 2006, between the City of Chula Vista, San Diego State University and the Gas Technology Institute, which is advancing energy-efficient community development in California - the subject matter of the district energy proposal. . The SDSURF has put together a research team that includes Douglas Newman, the Executive Director of the NECSC, San Diego State University and the Gas Technology Institute, all of whom are founding members of the NECSC, which have successfully designed and managed two previous projects on related subjects for the City of Chula Vista - SDG&E Energy Efficiency Partnership Program. The continuity and consistency that would be provided by the retention ofMr. Newman and GTI builds on the relationships established with local, state and federal agencies through these initial phases of the CVRP. The SDSURF and its affiliated team member's previous participation with the NECSC and the City of Chula Vista projects provides unique knowledge that could not otherwise be obtained from similar consultants. The SDSURF has managed similar projects for the City as part of the Chula Vista Research project and funded by the SDG&E Partnership Program, which will provide insight into the City's environmental programs that would not ordinarily be provided by other consultants. These service capabilities were found to be necessary in order to continue the work of the NECSC, and to promote the environmental initiatives of the City of Chula Vista, and meet the goals and objectives of the SDG&E Partnership Program. 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)(I) is not applicable to this decision. 4-4 January 15, 2008, Item 4 Page 5 of 5 FISCAL IMPACT There is no fiscal impact to the General Fund as a result of adopting this recommendation, Approval of the resolution will result in the transfer of $25,240 from the Other Expenses category to the Supplies and Services Category of the Energy Conservation Fund. ATTACHMENTS 1. Agreement between the City of Chula Vista and the San Diego State Research Foundation related to the Chula Vista Bayfront District Energy Feasibility Research Study. Prepared by: Craig Ruiz, Principal Economic Development Specialist 4-5 COUNCIL RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VIST A WAIVING THE FORMAL CONSULT Al'lT SELECTION PROCESS AND APPROVING AN AGREEMENT WITH THE SAN DIEGO STATE UNIVERSITY RESEARCH FOUNDATION IN THE AMOUNT OF ONE HUNDRED EIGHTY TWO THOUSAND FOUR HUNDRED NINETY DOLLARS ($182,490) TO CONDUCT A FEASIBILITY STUDY FOR A DISTRICT ENERGY SYSTEM FOR THE BAYFRONT PROJECT AREA AS PART OF THE SAN DIEGO GAS AND ELECTRIC PARTNERSHIP PROGRAM, AND TRANSFERRING $25,240 FROM STAFF COSTS TO CONSULTANT COSTS WITHIN THE ENERGY CONSERVATION FUND WHEREAS, the City of Chula Vista has been a local government leader in the implementation of sustainable designed community plalming; and WHEREAS, the National Energy Center for Sustainable Communities (NECSC) was founded by the City ofChula Vista, San Diego State University (SDSU), and the Gas Technology Institute (GTI), with the support of the U.S. Department of Energy; and WHEREAS, on September 19, 2006, the City Council accepted the grant for the San Diego Gas & Electric (SDG&E) Partnership Program to provide energy efficiency funding, incentives, infol111ation, training and materials to City, its residents, developers, and South Bay cities in SDG&E's service territory; and WHEREAS, the City seeks to utilize the funding ofthe SDG&E Partnership Program to work with the San Diego State University Research Foundation (SDSURF) to research and detennine the technical and economic feasibility and environmental benefits of a district energy system for the Bayfront Redevelopment Project Area in Chula Vista; and WHEREAS, the SDSURF has put together a project team that includes Douglas Newman, the Executive Director of the NECSe, San Diego State University and the Gas Technology Institute which have successfully designed and managed two previous projects on related subjects for the City of Chula Vista - SDG&E Energy Efficiency Partnership Program; and WHEREAS, staff recommends the City waive the formal consultant selection process outlined in Municipal Code section 2.56.110 because the SDSURF and its subconsultants have previously participated with the NECSC in City projects making it impractical to solicit proposals NOW, THEREFORE BE IT RESOLVED by the City Council of the City ofChula Vista as follows: 1. That it waives the fOI11Jal consultant selection process outlined in Municipal Code section 2.56.110. 4-6 2. That it approves an agreement between the City and the San Diego State University Research Foundation in the amount of One Hundred Eighty Two Thousand Four Hundred Ninety Dollars ($182,490) to conduct a study of the feasibility a district energy system for the Chula Vista Bayfront Redevelopment Project Area. 3. That it transfers $25,240 from Staff Costs to Consultant Costs within the Energy Conservation Fund. Presented by Approved as to form by David R. Garcia City Manager ~. .~ , 'fL"cv O/~C-O~ IYW Bart Miesfeld Interim City Attomey 4-7 THE ATTACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALLY SIGNED UPON AFPROV AL BY THE CITY COUNCIL ~e-; ~ ~ Bart C. Miesfeld Interim City Attorney Dated: 1((DIO~ Agreement between City of Chula Vista and San Diego State University Research Foundation for Bayfront Redevelopment Project Area 1/Jo!og Cf, ens - b~ () v-e.r f>\ ~ \Y-\-ed. . WIll p~+D ~C-o f&v ~~>u~ \J,~d'<I- ruopt" 4-8 Agreement between City of Chula Vista and San Diego State University Research Foundation for Professional Services related to the feasibility of a district energy system in the Chula Vista Bayfront Redevelopment Project area This agreement (" Agreement"), dated June 6. , 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 I, 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, the City of Chula Vista has been a leader in local government in the implementation of sustainable designed community planning; Whereas, the National Energy Center for Sustainable Communities (NECSC) was founded by the City of Chula Vista, San Diego State University (SDSU); and the Gas Technology Institute (GTI), and with the support of the U.S. Department of Energy; and Whereas, the NECSC's mission is to promote healthier and more productive communities by integrating cleaner energy systems and energy-smart planning and design into new development and redevelopment projects; and Whereas, the NECSC executes its mission through collaborative research, demonstration and capacity-building (education and training) initiatives among government agencies, universities, utilities, companies and nongovernmental organizations across the nation; and Whereas, the NECSC is collaborating with government agencies, companies and utilities to create a national demonstration site for energy-smart community development through the ultimate creation of up to 20-30 showcase technology, land use and management practice demonstration sites across the City of Chula Vista; and. Whereas, on September 19, 2006, the City Council accepted the grant for the San Diego Gas & Electric (SDG&E) Partnership Program to provide energy efficiency funding, incentives, information, training and materials to City, its residents, developers, and South Bay cities in SDG&E's service territory; and Page I 4-9 information, training and materials to City, its residents, developers, and South Bay cities in SDG&E's service territory; and Whereas, the City of Chula seeks to utilize the funding of the Partnership Program to work with the San Diego State University Research Foundation in conjunction with the NECSC to research and determine the technical and economic feasibility and environmental benefits of a district energy system for the Bayfront redevelopment site in Chula Vista. (End of Recitals. Next Page starts Obligatory Provisions.) Page 2 4-10 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 ofthis 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 IO(C), unless a separate fixed fee is otherwise agreed upon. All compensation for Additional Services shall be paid monthly as billed. E. Standard of Care Consultant, in performing any Services under this agreement, whether Defined Services or Additional Services, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations. Page 3 4-11 F. Insurance Consultant must procure insurance against claims for injuries to persons or damages to property that may arise from or in connection with the perfonnance 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 Fonn CGOOO I). (2) Insurance Services Office Fonn Number CA 0001 covering Automobile Liability, Code I (any auto). (3) Workers' Compensation insurance as required by the State of Cali fomi a and Employer's Liability Insurance. (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 . Minimum Limits ofInsurance Contractor must maintain limits no less than: I. General Liability: (Including operations, products and completed operations, as applicable) 2. Automobile Liability: 3. Workers' Compensation Employer's Liability: 4. Professional Liability or Errors & Omissions Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability insurance with a general aggregate limit is used, either the general aggregate limit must apply separately to this project/location or the general aggregate limit must be twice the required occurrence limit. $1,000,000 per accident for bodily injury and property damage. Statutory $1,000,000 each accident $1,000,000 disease-policy limit $1,000,000 disease-each employee $1,000,000 each occurrence Page 4 4-12 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; 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: (I) The City ofChula 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 ofthe Consultant, 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 contractor's insurance using ISO CG 2010 (11/85) or its equivalent. Specifically, the endorsement must not exclude Products/Completed Operations coverage. (2) The Consultant's General Liability 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) The 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 ofthe 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 General Liability, Pollution and/or Asbestos Pollution Liability and/or Errors & Omissions coverage are written on a claims-made form: Page 5 4-13 (I) The "Retro Date" must be shown, and must be before the date of the contract or the beginning of the contract work. (2) Insurance must be maintained and evidence of insurance must be provided for at least three (3) years after completion of the contract work. (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 three (3) years after completion of contract work. (4) A copy of the claims reporting requirements must be submitted to the City for review. Acceptability ofInsurers 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 insurance is placed with a surplus lines insurer, insurer must be listed on the State of California List of Eligible Surplus Lines Insurers ("LESLI") with a current A.M. Best's rating of no less than A X. Exception may be made for the State Compensation Fund when not specifically rated. 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 subconsultants as insureds under its policies or furnish separate certificates and endorsements for each subconsultant. All coverage for subconsultants are subject to all of the requirements included in these specifications. G. Security for Performance (I) Performance Bond In the event that Exhibit A, at Paragraph 18, 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, htto://www.fins.treas.gov/c570, and whose underwriting limitation is sufficient to issue bonds in the amount required by the agreement, and Page 6 4-14 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 Exhibit A, Paragraph 18. (2) Letter of Credit In the event that Exhibit A, at Paragraph 18, 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 ofthe 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 Exhibit A, Paragraph 18. (3) Other Security In the event that Exhibit A, at Paragraph 18, indicates the need for Consultant to provide security other than a Performance Bond or a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Other Security"), then Consultant shall provide to the City such other security therein listed in a form and amount satisfactory to the Risk Manager or City Attorney. H. Business License Consultant agrees to 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 ofthis agreement. The City shall permit access to its office facilities, files and records by Consultant throughout the term ofthe agreement. In addition thereto, City agrees to provide the information, data, items and materials set forth on Exhibit A, Paragraph 9, and with the further understanding that delay in the provision of these materials beyond thirty (30) days after authorization to proceed, shall constitute a basis for the justifiable delay in the Consultant's performance of this agreement. Page 7 4-15 B. Compensation Upon receipt of a properly prepared billing from Consultant submitted to the City periodically as indicated in Exhibit A, Paragraph 17, but in no event more frequently than monthly, on the day ofthe period indicated in Exhibit A, Paragraph 17, City shall compensate Consultant for all services rendered by Consultant according to the terms and conditions set forth in Exhibit A, Paragraph 10, 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 18 of Exhibit A, and shall compensate Consultant for out of pocket expenses as provided in Exhibit A, Paragraph II. 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 17(C) to be charged upon making such payment. 3. Administration of Contract Each party designates the individuals ("Contract Administrators") indicated on Exhibit A, Paragraph 12, as said party's contract administrator who is authorized by said party to represent them in the routine administration of this agreement. 4. Term This Agreement shall terminate December 31, 2008. 5. Liquidated Damages The provisions of this section apply if a Liquidated Damages Rate is provided in Exhibit A, Paragraph 13. It is acknowledged by both parties that time is ofthe essence in the completion ofthis 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 ofthe 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 13 ("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 Page 8 4-16 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 14, 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 14 of Exhibit A, or if none are specified, then as determined by the City Attorney. B. Decline to Participate Regardless of whether Consultant is designated as an FPPC Filer, Consultant shall not make, or participate in making or in any way attempt to use Consultant's position to influence a governmental decision in which Consultant knows or has reason to know Consultant has a financial interest other than the compensation promised by this Agreement. 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. Page 9 4-17 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 14. Consultant further warrants and represents that no promise offuture employment, remuneration, consideration, gratuity or other reward or gain has been made to Consultant or Consultant Associates in connection with Consultant's performance of this Agreement. Consultant promises to advise City of any such promise that may be made during the Term of this Agreement, or for twelve months thereafter. Consultant agrees that Consultant Associates shall not acquire any such Prohibited Interest within the Term of this Agreement, or for twelve 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, attomeys 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 ofthe 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. Page 10 4-18 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. For those professionals who are required to be licensed by the state (e.g. architects, landscape architects, surveyors and engineers), the following indemnification provisions should be utilized: (I) 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 7.2, 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 ofthe 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, that arise out of, or pertain to, or relate to the negligence, recklessness or willful misconduct of Consultant and its agents in the performance of services under this agreement, but this indemnity does not apply liability for damages for death or bodily injury to persons, injury to property, or other loss, arising from the sole negligence, willful misconduct or defects in design by City or the agents, servants, or independent contractors who are directly responsible to City, or arising from the active negligence of City. 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 Page II 4-19 event, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by Consultant shall, at the option of the City, become the property of the City, and Consultant shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of Notice oflermination, 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 ifthere 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 16 to the subconsultants identified thereat as "Permitted Subconsultants". 12. Ownership, Publication, Reproduction and Use of Material All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced under this Agreement shall be the sole and exclusive property of City. No such materials or properties produced in whole or in part under this Agreement shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express written consent of City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any Page 12 4-20 such reports, studies, data, statistics, forms or other materials or properties produced under this Agreement. Consultant shall have the right to use materials and data produced during this project for non-commercial research and educational purposes. 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 ofthis 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 iffully 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 ofthis Agreement. 15. Attorney's Fees Should a dispute arising out ofthis Agreement result in litigation, it is agreed that the prevailing party shall be entitled to a judgment against the other for an amount equal to reasonable attorney's fees and court costs incurred. The "prevailing party" shall be deemed to be the party who is awarded substantially the relief sought. 16. Statement of Costs In the event that Consultant prepares a report or document, or participates in the preparation of a report or document in performing the Defined Services, Consultant shall include, or cause the inclusion of, in said report or document, a statement of the numbers and cost in dollar amounts of all contracts and subcontracts relating to the preparation of the report or document. 17. Miscellaneous A. Consultant not authorized to Represent City Page 13 4-21 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 lfthe box on Exhibit A, Paragraph 15 is marked, the Consultant and/or their principals is/are licensed with the State of California or some other state as a licensed real estate broker or salesperson. Otherwise, Consultant represents that neither Consultant, nor their principals are licensed real estate brokers or salespersons. C. Notices All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified herein as the places of business for each of the designated parties. D. Entire Agreement This Agreement, together with any other written document referred to or contemplated herein, embody the entire Agreement and understanding between the parties relating to the subject matter hereof. Neither this Agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. E. Capacity of Parties Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. F. Governing LawNenue This Agreement shall be governed by and construed in accordance with the laws ofthe 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 ofChula Vista, or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City of Chula Vista. (End of page. Next page is signature page.) Page 14 4-22 JUL-IO-200e 09:50AM FROM-FRONT DeSK T-144 P 002/002 F-029 SignatUre Page to Agreement between City of Chula Vista and San Diego Stale University Research Foundation IN WITNESS WHEREOF, City and Consultant have executed !hi Agreement thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: Dated: City of Chula Vista By: Cheryl Cox, Mayo Attest: Donna Norris, Acting City Clerk Approved as to form: Bart Miesfeld, Interim City Attorney Dated: By: Gene Stein, ire Development San Diego State University F oundati on , 1/0 for Exhibit List to Agreement (X) Exhibit A (X) Exhibit B - Agreement to Jointly Deliver !he 2006-2008 City of Chu a Vista Energy Efficiency and Conservation Outreach Program between the City Of Chula Vista and San Diego Gas & Electric Company, dated July 25, 2006 ( X ) Exhibit C - N onclisc]osure 4-23 Page 15 Exhibit A to Agreement between City of Chula Vista and San Diego State University Research Foundation 1. Effective Date of Agreement: June 6, 2008 2. City-Related Entity: (X) City ofChula Vista, a municipal chartered corporation of the State of California ( ) Redevelopment Agency of the City ofChula Vista, a political subdivision of the State of California ( ) Industrial Development Authority of the City ofChula Vista, a ("City") 3. Place of Business for City: City ofChula Vista 276 Fourth Avenue Chula Vista, CA 91910 4. Consultant: San Diego State University Research Foundation 5. Business Form of Consultant: ( ) Sole Proprietorship ( ) Partnership ( X ) Corporation 6. Place of Business, Telephone and Fax Number of Consultant: 5250 Campanile Drive San Diego, CA 92182-1931 Voice Phone: (619) 594-5731 Page 16 4-24 7. General Duties: District energy systems produce electricity, hot water, steam and/or chilled water at a central plant and then distribute the energy through underground wires and pipes to adjacent buildings connected to the system. Electricity is used to energize lights, appliances, equipment and machinery, while hot and chilled water and steam are used for space heating and cooling, domestic hot water needs and a variety of commerciaVindustrial processing uses. This proposed project will determine the technical and economic feasibility and environmental benefits of a district energy system for the Bayfront Redevelopment Project Area (hereafter "Bayfront Site") in Chula Vista. 8. Scope of Work and Schedule: A. Detailed Scope of Work: Task 1- Acquisition of Site & Building Data Consultant shall work with officials from the City of Chula Vista (hereafter "City") and the Gaylord Entertainment Corporation (hereafter "Gaylord") and Pacifica Companies (hereafter "Pacifica") (hereafter "developers"), to establish the number, type and siting ofthe buildings that will comprise the Bayfront Site and the specific building construction and equipment characteristics of each. This information will be compiled in a draft site description document and submitted for approval by City and developer officials before subsequent tasks are taken. Deliverables: . Document Containing the Approved Site Description Task 2 - Development of Technical Modeling Assumptions for the Gaylord Complex Consultant shall develop a detailed technical modeling assumption manual for the Gaylord Resort and Conference Center (GRCC) building structures and receive City approval prior to the commencement of the computer modeling/simulation work. The manual shall contain all relevant material construction and design assumptions as well as detailed information on internal space conditioning and illumination equipment, systems and plug loads. Consultant shall produce and submit the manual for developer review and City review and approval before it is considered final and used as the basis for structuring the simulation models and subsequent analysis. Successful completion of this task depends on GTI receiving Gaylord Resort and Conference Center architectural and engineering drawings providing necessary information about floor plans layout, envelope geometry and materials as well as the planned HV AC equipment type and configuration. If available, access to the Title-24 compliance calculations for the Gaylord Resort and Conference Center would be important to accelerate the modeling process. Developer review and City review and approval of the Assumption Manual will be necessary before modeling is performed. Page 17 4-25 Deliverables: . Draft and Final GRCC Technical Modeling Assumptions Manual Task 3 - Simulation of GRCC Energy Consumption, Costs & Impacts Consultant shall construct and run DOE2 whole building energy simulations on all structures specified in the approved GRCC technical assumptions manual. Consultant shall construct individual models for all buildings and perform S,760 hourly analyses of energy consumption, utility costs and environmental impacts for these structures. Deliverables: . GRCC data files Task 4 - Documentation of GRCC Simulation Data for District Energy Design Team Consultant shall produce accurate, aggregate energy load profiles for all GRCC structures to the subconsultants listed in Section 16 of this Exhibit A below (along with Consultant, hereafter "District Energy Design Team") for use in defining central plant capacity and distribution system characteristics. Consultant shall analyze the simulation data files and translate the information into summary impact charts and tables for interpretation by the District Energy Design Team. Specific information contained in the document shall include: . Cooling load (kBtulh) . Heating load (kBtulh) . Domestic hot water load (kBtulh) . Electric consumption associated with building cooling and heat rejection (kWlhour) . Natural gas consumption associated with building heating and domestic hot water (kBtulh) . Building total electric consumption (kWIh) . Building total natural gas consumption (kBtulh) . Annual emission of C02, NOx, and SOx associated with consumed energy. . Annual cost of natural gas and electric utilities Deliverables: . GRCC Simulation Data and Analysis Document Task 5 - Selection of Prototypical Buildings for the Pacifica Site Consultant shall select an appropriate set of representative building prototypes that will be the closest approximation of the structures most likely to be built on the Pacifica Residential and Retail (PRR) development site. The selection will be derived from the IS-building prototypes generated by the Chula Vista Research Project for California weather zone #7 (see Appendix C). Consultant shall produce a draft document specifying these prototypes for submission and approval by the City. Consultant shall incorporate the City's comments into the final document. Successful completion of this task depends on Consultant receiving Pacifica Residential and Retail development plans and on developer providing assistance and approval of selected prototypes. If needed, prototypical buildings geometry (footprint, number of floors) will be modified to best match Pacifica Residential and Retail development, however no changes/modifications of building models envelope materials and equipment is planned Page IS 4-26 Deliverables: . PRR Simulation Document Containing Approved Prototypes Task 6 - Simulation of PRR Energy Consumption, Costs & Impacts Consultant shall construct and run DOE2 whole building energy simulations on all structures specified in the approved PRR Simulation document. Consultant shall construct individual models for all buildings and perform 8,760 hourly analyses of energy consumption, utility costs and environmental impacts for these structures. Deliverables: . PRR data files Task 7 - Documentation ofPRR Simulation Data for District Energy Design Team Consultant shall provide to the City accurate, aggregate energy load profiles for all PRR structures to the District Energy Design Team for use in defining central plant capacity and distribution system characteristics. Consultant shall conduct analysis of the raw simulation files and translate the information into summary impact charts and tables for interpretation by the District Energy Design Team. Specific information contained in the document shall include: . Cooling load (kBtulh) . Heating load (kBtu/h) . Domestic hot water load (kBtulh) . Electric consumption associated with building cooling and heat rejection (kWlhour) . Natural gas consumption associated with building heating and domestic hot water (kBtulh) . Building total electric consumption (kW/h) . Building total natural gas consumption (kBtulh) . Annual emission of C02, NOx, and SOx associated with consumed energy . Annual cost of natural gas and electric utijjties Deliverables: . PRR Simulation Data and Analysis Document Task 8 - Selection of Prototypical Community Purpose Facilities Consultant shall select an appropriate set of representative building prototypes that can approximate the community purpose facilities (CPFs) most likely to be built on the Bayfront Site (e.g.: fire station, library, municipal recreation or marina structure). Consultant shall select from the 18-building prototypes generated by the Chula Vista Research Project for California weather zone #7 (see Appendix C). Consultant shall interact with both City officials and their consultants. Consultant shall produce a draft document specifying these prototypes for submission and approval by City officials. Consultant shall incorporate the City's comments into the final document. Deliverables: . CPF Simulation Document Containing Approved Prototypes Page 19 4-27 Task 9 - Simulation of CPF Energy Consumption, Costs & Impacts Consultant shall construct and run DOE2 whole building energy simulations on all structures specified in the approved CPF Simulation document. Consultant shall construct individual models for all buildings and perform 8,760 hourly analyses of energy consumption, utility costs and environmental impacts for these structures. Deliverables: . CPF data files Task 10 - Documentation of CPF Simulation Data for District Energy Design Team Consultant shall provide accurate, aggregate energy load profiles for all CPF structures to the District Energy Design Team for use in defining central plant capacity and distribution system characteristics. Consultant shall conduct analysis of the raw simulation files and translate the information into summary impact charts and tables for interpretation by the District Energy Design Team. Specific information contained in the document will include: . Cooling load (kBtu/h) . Heating load (kBtu/h) . Domestic hot water load (kBtu/h) . Electric consumption associated with building cooling and heat rejection (kWlhour) . Natural gas consumption associated with building heating and domestic hot water (kBtu/h) . Building total electric consumption (kWIh) . Building total natural gas consumption (kBtulh) . Annual emission of C02, NOx, and SOx associated with consumed energy . Annual cost of natural gas and electric utilities Deliverables: . CPF Simulation Data and Analysis Document Task 11- Design of the District Energy System Consultant shall design a technically reliable district energy system for the 200-acre site providing power, heating, domestic hot water and cooling to the GRCC, all surrounding commercial and residential structures and structures associated with the Bayfront Site. Using GTI provided 8760 building loads data, Consultant shall: 11.1 Review and analyze rate tariffs applicable to district energy 11.2 Evaluate alternative distributed generation Combined Heat and Power (CHP) technologies for integration into the system (consider: fuel cells gas turbines, absorption and electric chillers, and thermal storage) 11.3 Based on selected equipment configuration, generate and provide to GTI 8,760 data of the energy supplied to the buildings (electric, cooling, heating) as well as energy consumed on-site (electric and natural gas) as well as annual emissions (C02, SOx, NOx) data for the proposed district plant/facility. 11.4 Prepare layout for chilled water distribution Page 20 4-28 Deliverables: . District Energy System Design for the Bayfront Development Site Task 12 - Evaluation of the District System Economic Feasibility Consultant shall determine the near- and long-term economic feasibility of the district energy system and provide a comparison to the application of conventional energy technologies for the Bayfront Site. Consultant shall: 10.1 Prepare capital cost estimates for the system 10.2 Prepare economic feasibility analysis for the system Deliverables: . Document Describing the Economic Feasibility ofthe Proposed District Energy System Task 13 - Evaluation of District Energy System Utility & Environmental Impacts Consultant shall determine the utility impacts and comparative environmental benefits of the proposed district energy system, including the quantification of C02 and criteria air emissions reduction. Deliverables: . Utility and Environmental Impact Analysis Document Task 14 - Completion and Snbmission of the Final Feasibility Report Consultant shall create and submit the final technical and economic feasibility report to the City. Consultant shall translate the technical detail into text, graphics and other illustrations that render the report intelligible for lay readers. Deliverables: . Final Technical and Economic Feasibility Report B. Date for Commencement of Consultant Services: ( X) Same as Effective Date of Agreement ( ) Other: C. Dates or Time Limits for Delivery of Deliver abIes: July 31, 2008: July 31, 2008: August 30, 2008: October 31, 2008: December31,2008 Compilation of the engineering modeling assumptions Calculation of energy loads & associated emissions for all structures Initiation of engineering design & economic feasibility analysis Completion of the preliminary findings & presentation to clients/sponsors Completion & submission ofthe final feasibility report Page 21 4-29 D. Date for completion of all Consultant services: No later than December 31, 2008 9. Materials Required to be Supplied by City to Consultant: The City shall deliver to the Consultant development plans for community purpose facilities (CPF) serving the site and on and their approval of selected prototypes. 10. Compensation: A. ( ) Single Fixed Fee Arrangement. For performance of all of the Defined Services by Consultant as herein required, City shall pay a single fixed fee in the amounts and at the times or milestones or for the Deliverables set forth below: Single Fixed Fee Amount: One Hundred Eighty Two Thousand, Four Hundred Ninety Dollars ($182,490.00), payable as follows: Milestone or Event or Deliverable Amount or Percent of Fixed Fee () 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans that must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. B. (X) Phased Fixed Fee Arrangement. For the performance of each phase or portion of the Defined Services by Consultant as are separately identified below, City shall pay the fixed fee associated with each phase of Services, in the amounts and at the times or milestones or Deliverables set forth. Consultant shall not Page 22 4-30 commence Services under any Phase, and shall not be entitled to the compensation for a Phase, unless City shall have issued a notice to proceed to Consultant as to said Phase. Task Title Fee for Said Task 1. Acquisition of Site & Building Data $ 12,078.00 2. Development of Technical Modeling $ 8,800.00 Assumptions for the Gaylord Complex 3. Simulation ofGRCC Energy $25,300.00 Consumption, Costs & Impacts 4. Documentation ofGRCC Simulation Data $ 1,100.00 for District Energy Design Team 5. Selection of Prototypical Buildings for the $ 6,600.00 Pacifica Site 6. Simulation ofPRR Energy Consumption, $17,600.00 Costs & Impacts 7. Documentation ofPRR Simulation Data $1,100.00 for District Energy Design Team 8. Selection of Prototypical Community $ 5,500.00 Purpose Facilities 9. Simulation ofCPF Energy Consumption, $15,400.00 Costs & Impacts 10. Documentation ofCPF Simulation Data $ 1,100.00 for District Energy Design Team II. Design of the District Energy System $47,732.30 12. Evaluation ofthe District System $15,910.40 Economic Feasibility 13. Evaluation of District Energy System $ 12,078.00 Utility & Environmental Impacts 14. Completion and Submission ofthe Final $ 12,078 Feasibility Report 15 Report Production $113.30 ( ) 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans that must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set Page 23 4-31 forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. C. ( ) Hourly Rate Arrangement For performance of the Defined Services by Consultant as herein required, City shall pay Consultant for the productive hours oftime spent by Consultant in the performance of said Services, at the rates or amounts set forth in the Rate Schedule herein below according to the following terms and conditions: (1) ( ) Not -to -Exceed Limitation on Time and Materials Arrangement Notwithstanding the expenditure by Consultant of time and materials in excess of said Ma.ximum Compensation amount, Consultant agrees that Consultant will perform all of the Defined Services herein required of Consultant for $ including all Materials, and other "reimbursables" ("Maximum Compensation"). (2) ( ) Limitation without Further Authorization on Time and Materials Arrangement At such time as Consultant shall have incurred time and materials equal to ("Authorization Limit"), Consultant shall not be entitled to any additional compensation without further authorization issued in writing and approved by the City. Nothing herein shall preclude Consultant from providing additional Services at Consultant's own cost and expense. Category of Employee Principal Investigator Research Assistant Rate Schedule Name of Consultant Dr. Asfaw Beyene TBD Hourly Rate $ 50.00 $ 16.50 $ $ ( ) Hourly rates may increase by 6% for services rendered after [month], 20_, if delay in providing services is caused by City. Page 24 4-32 11. Materials Reimbursement Arrangement For the cost of out of pocket expenses incurred by Consultant in the performance of services herein required, City shall pay Consultant at the rates or amounts set forth below: (X) None, the compensation includes all costs. Cost or Rate $ $ $ $ $ $ $ $ $ $ () Reports, not to exceed $ () Copies, not to exceed $ () Travel, not to exceed $ () Printing, not to exceed $ () Postage, not to exceed $ () Delivery, not to exceed $ () Long Distance Telephone Charges, not to exceed $ () Other Actual Identifiable Direct Costs: , not to exceed $ , not to exceed $ 12. Contract Administrators: City: Craig Ruiz, Principal Community Development Specialist City of Chula Vista Community Development Department 276 Fourth Avenue Chula Vista, CA 91910 Consultant: San Diego State University Research Foundation Michele Goetz 5250 Campanile Drive San Diego, CA 92182-1931 619-594-1862 mgoetz@foundation.sdsu.edu 13. Liquidated Damages Rate: ( ) $ ( ) Other: per day. 14. Statement of Economic Interests, Consultant Reporting Categories, per Conflict oflnterest Code: ( X) Not Applicable. Not an FPPC Filer. Page 25 4-33 ( ) FPPC Filer ( ) Category No. I. 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 that engage in land development, construction or the acquisition or sale of real property. ( ) Category No.5. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the City of Chula Vista (Redevelopment Agency) to provide services, supplies, materials, machinery or equipment. ( ) Category No.6. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the designated employee's department to provide services, supplies, materials, machinery or equipment. ( ) Category No.7. Business positions. ( ) List "Consultant Associates" interests in real property within 2 radial miles of Project Property, ifany: N/A 15. ( ) Consultant is Real Estate Broker and/or Salesman 16. Permitted Subconsultants: Doug Newman National Energy Center for Sustainable Communities at San Diego State University, San Diego, California Jeff Duncan Jacobs Carter Burgess (JCB/C&B), Los Angeles, California Marek Czachorski, Tim Kingston Gas Technology Institute (GTI) - Des Plaines, Illinois 17. Bill Processing: A. Consultant's Billing to be submitted for the following period of time: (X) Monthly ( ) Quarter! y Page 26 4-34 ( ) Other: B. Day of the Period for submission of Consultant's Billing: ( ) First of the Month ( ) 15th Day of each Month (X) End of the Month ( ) Other: C. City's Account Number: 18. Security for Performance ( ) Performance Bond, $ ( ) Letter of Credit, $ ( ) Other Security: Type: Amount: $ ) Retention. [fthis space is checked, then notwithstanding other provisions to the contrary requiring the payment of compensation to the Consultant sooner, the City shall be entitled to retain, at their option, either the following "Retention Percentage" or "Retention Amount" until the City determines that the Retention Release Event, listed below, has occurred: ( ) Retention Percentage: % ( ) Retention Amount: $ Retention Release Event: ( ) Completion of All Consultant Services ( ) Other: Page 27 4-35 NONDISCLOSURE AGREEMENT In connection with that certain Agreement to Jointly Deliver the 2006-2008 City of Chula Vista Energy Efficiency and Conservation Outreach Program ("Partnership Agreement") between San Diego Gas & Electric Company ("SDG&E") and City of Chula Vista ("Other Party") relating to the implementation of the Program described therein ("Transaction"), SDG&E anticipates disclosing to Other Party, and Other Party may learn of, Confidential Information (as defmed below). Capitalized terms used herein but not defined herein shall have their meanings set forth in the Partnership Agreement. As a condition to such disclosure by SDG&E to each of the Other Party's directors, officers, employees, agents or advisors who have a direct need to access such Confidential Information for the purpose of carrying out the Transaction (collectively "Representatives"), the parties hereby agree as follows: 1. DEFINITION "Confidential Information" shall mean proprietary information concernIng the business, operations and assets of SDG&E, its present and future direct or indirect subsidiaries or affiliates, whether or not prepared in connection with the Transaction, which may include, without limitation, Confidential Customer Information (as defmed in the Partnership Agreement), any business plans, documentation, source code, object code, diagrams, flow charts, research, development, processes, marketing techniques and materials, development or marketing timetables, strategies, development plans, customer, supplier or employee names or information, pricing policies and fmancial and valuation information, and other information of a similar nature whether or not reduced to writing or other tangible form, and any trade secrets, whether or not defmed as ''trade secrets" under the Uniform Trade Secrets Act of California, excludim! information (1) known to Other Party or its Representative prior to obtaining the same from SDG&E; (2) in the public domain at the time of disclosure by Other Party; (3) obtained by Other Party or its Representative from a third party who did not receive same, directly or indirectly, from SDG&E subject to an binding and enforceable nondisclosure agreement; or (4) approved for release by written authorization of an authorized officer of SDG&E. 2. LIMITED USE: NONDISCLOSURE Other Party hereby agrees that it shall use, and shall cause its Representatives to use, the Confidential Information solely for the purpose of carrying out the Transaction, and not in any way detrimental to SDG&E, and that only its Representatives shall have access to the Confidential Information. Other Party shall not, and shall cause its Representatives not to, (i) use the Confidential Information for its or its Representatives' own benefit other than for the limited purposes set forth herein, or (ii) make any copies, backups or abstracts of such Confidential Information, however stored, without first obtaining the prior written consent of SDG&E unless necessary for the implementation or completion of the Transaction. Other Party agrees to use the same degree of care it uses with respect to its own proprietary or confidential information or a reasonable standard of care to prevent unauthorized use or disclosure of the Confidential Information. Except as otherwise provided herein, Other Party will keep confidential and not disclose, and shall cause its Representatives to keep confidential and not disclose, the -1- 4-36 Confidential Information to any third party. Other Party shall cause each of its Representatives to become familiar with, and abide by, the terms of this Agreement. 3. COURT OR ADMlNISTRATIVE ORDER Notwithstanding the provisions of Article 2 above, Other Party and its Representatives may disclose any of the Confidential Information in the event, but only to the extent, that, based upon advice of counsel, it is required to do so by the disclosure requirements of any law, rule, or regulation or any order, decree, subpoena or ruling or other similar process of any court, governmental agency or governmental or regulatory authority. Prior to making or permitting any of its Representatives to make such disclosure, Other Party shall provide SDG&E with prompt written notice of any such requirement so that SDG&E (with Other Party's assistance) may seek a protective order or other appropriate remedy. 4. PUBLICITY Without the prior written consent of SDG&E, Other Party shall not, and shall cause its Representatives not to, disclose to any person (i) the fact that the Confidential Information has been made available to Other Party or its Representatives, or (ii) any information regarding the ongoing discussions between the parties, including the fact that such discussions are occurring; provided, however, that Other Party and its Representatives may disclose the information described in clauses (i) and (ii) above if such disclosure is required under any of the circumstances described in Article 3 above, in which case the procedures specified therein with respect to such disclosure shall apply. 5. DOCUMENT RETENTION At any time upon the request of SDG&E, Other Party shall promptly deliver (and return, if applicable) to SDG&E or destroy (with such destruction to be certified to SDG&E) (i) all Confidential Information existing in written form or recorded in any other tangible medium (and all copies, abstracts and backups thereof, however stored) furnished to Other Party or any of its Representatives, (ii) all portions of all documents, instruments, data, reports, plans, specifications, abstracts and media (and all copies, abstracts and backups thereof, however stored) furnished to or prepared by Other Party or any of its Representatives that contain Confidentiallnforrnation, and (iii) all other portions of all documents, instruments, data, reports, plans, specifications, abstracts and media (and all copies, abstracts and backups thereof, however stored) in Other Party's or its Representatives' possession that contain or that are based on or derived from Confidentiallnforrnation. Notwithstanding the foregoing, Other Party may retain one copy of any work product produced by Other Party in the course of carrying out the Transaction for its own archi val records (in which case the other confidentiality obligations contained in this Agreement shall continue to apply) or to comply with any disclosure requirement of any regulatory authority having jurisdiction over the Transaction. 6. SURVIVAL -2- 4 37 Notwithstanding the return or destruction of all or any part of the Confidential Information, the terms of this Agreement shall nevertheless remain in full force and effect with respect to specific Confidential Information until the date that is five (5) years after the date of disclosure of such Confidential Information, except that the terms of this Agreement shall remain in full force and effect with respect to Confidential Customer Information in perpetuity. 7. ASSIGNMENT Other Party may not assign (by operation of law or otherwise) any of its rights or obligations hereunder without the prior written consent of SDG&E. 8. REMEDIES The parties acknowledge that the Confidential Information is valuable and unique, and that damages would be an inadequate remedy for breach of this Agreement and the obligations of Other Party and its Representatives are specifically enforceable. Accordingly, the parties agree that in the event of a breach or threatened breach of this Agreement by Other Party, SDG&E shall be entitled to seek an injunction preventing such breach, without the necessity of proving damages or posting any bond. Any such relief shall be in addition to. and not in lieu of, money damages or any other legal or equitable remedy available to SDG&E. 9. NO IMPLIED LICENSES Nothing in this Agreement will be construed as granting any rights to the Other Party, by license or otherwise, to any Confidential Information, except as specifically stated in this Agreement. 10. NONWAIVER It is understood and agreed that no failure or delay by SDG&E in exercising any right, power or privilege available hereunder or under applicable law shall operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any other or further exercise thereof the exercise of any other such right, power or privilege. 11. ENTIRE AGREEMENT: AMENDMENT This Agreement contains the entire agreement between the parties with respect to the subject matter hereof, and may be amended only in writing signed by both parties. This Agreement supersedes any previous confidentiality or nondisclosure agreement or contractual provisions between the parties to the extent they relate to the subject matter hereof. 12. GOVERNING LAW The formation, interpretation and performance of this Agreement shall be governed by the internal laws of the State of California. -3- 4-38_ 13. ATTORNEYS' FEES If any action at law or in equity is brought to enforce Or interpret the provisions of this Agreement, the prevailing party shall be entitled to recover from the unsuccessful party all costs, expenses (including expert testimony) and reasonable attorneys' fees, including allocated costs and fees of in-house counsel, incurred therein by the prevailing party. 14. VENUE AND .JURISDICTION In the event of any litigation to enforce or interpret any terms of this Agreement, the parties agree that such action will be brought in the Superior Court of the County of San Diego, California (or, if the federal courts have exclusive jurisdiction over the subject matter of the dispute, in the U.S. District Court for the Southern District of California), and the parties hereby submit to the exclusive jurisdiction of such courts. 15. NOTICES All notices to be given under this Agreement shall be in writing and either sent by (i) a nationally recognized overnight courier service, in which case notice shall be deemed delivered as of the date shown on the courier's delivery receipt; (ii) telecopy during business hours of the recipient, with a copy of the notice also deposited in the United States mail (postage prepaid) the same business day, in which case notice shall be deemed delivered on transmittal by telecopier provided that a transmission report is generated reflecting the accurate transmission of the notices; or (iii) United States mail, postage prepaid, in which case notice shall be deemed delivered as of two business days after deposit in the mail, addressed as follows: If to SDG&E: San Diego Gas & Electric Company 8306 Century Park Court, CP42D San Diego, CA 92123-1530 Facsimile: (858) 654-0311 Attn: Julie Ricks -4- 4 GO With a copy to: Sempra Energy 10 1 Ash Street San Diego, CA 92101 Facsimile: (619) 696-4670 Attn: General Counsel If Other Party: City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Telephone: 619-409-5870 Facsimile: 619-476-5310 Attn: Michael Meacham These addresses may be changed by written notice to the other Party provided that no notice of a change of address shall be effective until actual receipt of the notice. Copies of notices are for informational purposes only, and a failure to give or receive copies of any notice shall not be deemed a failure to give notice. 16. SAVINGS CLAUSE: EFFECT OF UNIFORM TRADE SECRETS ACT If any provision of this Agreement or the application thereof to any person, place, or circumstance, shall be held by a court of competent jurisdiction to be invalid, unenforceable, or void, the remainder of the Agreement and such provisions as applied to other persons, places, and circumstances shall remain in full force and effect. In the event of any conflict between any provision hereof and any provision of the Uniform Trade Secrets Act of California, the provision affording the greater degree of protection to the disclosing party shall control. 17. NO REPRESENTATION OR WARRANTY Other Party acknowledges and agrees that neither SDG&E nor any of SDG&E's representatives or agents is making any representation or warranty, express or implied, as to the accuracy or completeness of the Confidentiallnformation disclosed under this agreement, and neither SDG&E nor any of SDG&E' s representatives, agents, officers, directors, employees, stockholders, owners, affiliates or advisors will have any liability to Other Party or any other person resulting from the use of the Confidentiallnformation. Only those representations or warranties that are made to Other Party in the Partnership Agreement, if any, when and as executed. and subject to such limitations and restrictions as may be specified in the Partnership Agreement, will have any legal effect. (Signature page follows) -5- 4-40 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date last written below. ::YM~ ~avid . Garcia Name: Approved as to legal form ~A_:""'" cA.. ~ Ann Moore ~ City Attorney Title: Citv Manager Date: \ol~Yol SAN DIEGO GAS & ELECTRIC COMPANY ~ ~~" Name: t:lJdtlf effIt1tg.,/~f f?~;e.~/-#P Approved as to legal form .-. . b . /I1,Q7V,4dtr7Z Title: IM1'I'- 4. S/'AS/I/UJ see.-. ~ {Is/Or p. /. "J (Attorney's initials) Date: ~o/ tf ;z -6- -4- 41 AGREEMENT TO JOINTLY DELIVER THE 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERV A nON OUTREACH PROGRAM BETWEEN CITY OF CHULA VISTA and SAN DIEGO GAS & ELECTRIC COMPANY Dated: July 25,2006 This program is funded by California utility customers under the auspices of the California Public Utilities Commission. 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT .4-42-- . q~fo-d9S- THIS AGREEMENT TO JOINTLY DEUVER THE 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM (the "Agreement"), dated July 25, 2006, is effective as of January 1, 2006 ("Effective Date") by and among SAN DIEGO GAS & ELECTRlC COMPANY ("SDG&E"), and THE CITY OF CHULA VISTA ("City"). SDG&E and City may be referred to herein individually as a "Party" and collectively as the "Parties." RECITALS WHEREAS, on September 22, 2005 the California Public Utilities Commission (the "Commission") in D.05-09-043 authorized certain energy efficiency programs to be delivered to California utility customers for the years 2006 through 2008 and the continuation of programs where local governmental entities partnered with utilities to deliver energy efficiency information and education to utility customers; WHEREAS, SDG&E submitted applications for the implementation of energy efficiency programs which included the 2006-2008 City of Chula Vista Energy Efficiency and Conservation Outreach Program (hereinafter referred to as the "Program"), involving the delivery of energy efficiency funding, incentives, information, training and materials to City, its residents, developers, and South Bay cities in SDG&E's service territory; WHEREAS, the Parties desire to set forth the terms and conditions under which the Program for the 2006 through 2008 program years shall be implemented; NOW THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: 1. DEFINITIONS 1.1. Agreement: This document and all exhibits attached hereto and incorporated herein, and as amended from time to time. 1.2. AU: The Administrative Law Judge assigned to the Commission's Energy Efficiency Rulemaking (R.01-08-028) or its successor proceeding. 1.3. Amendment: A future document executed by the authorized representatives of all Parties which changes or modifies the terms of this Agreement. 1.4. Authorized Budget: The Commission-approved total for performance of the Authorized Work is $2,193,225.00 as set forth in the Concept Paper. 1.5. Business Day: The period from one midnight to the following midnight, excluding Saturdays, Sundays, and holidays. 2 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT . 4-43-n 1.6. Calendar Day: The period from one midnight to the following midnight, including Saturdays, Sundays, and holidays. Unless otherwise specified, all days in this Agreement are Calendar Days. 1.7. Concept Paper: The Parties' plans for implementing the Program in SDG&E's service territory, approved by the Commission, and is attached hereto and incorporated herein as Exhibit A. 1.8. Contractor: An entity contracting directly or indirectly with a Party, or any subcontractor thereof subcontracting with such Contractor, to furnish services or materials as part of or directly related to such Party's Authorized Work obligations. City's Contractors shall be selected from SDG&E's approved list, where applicable, and shall not include City's contract staff labor for the Program. 1.9. Eligible Customers or Customers: Customers eligible for Program services are SDG&E customers. 1.10. Energy Efficiency Measure (or Measure): As such term is used in the Commission's Energy Efficiency Policy Manual, Version 3, August 2005, a program or measure approved by the Commission to reduce energy consumption (whether electrical energy or gas energy). 1.11. EM&V: Evaluation, Measurement and Verification of the Program pursuant to Commission requirements. 1.12. Gas Surcharge: The funds collected from gas utility ratepayers pursuant to Section 890 et al. of the California Public Utilities Code for public purposes programs, including energy efficiency programs approved by the Commission. 1.13, Program Expenditures: Actual (i.e., no mark-up for profit, administrative or other indirect costs), reasonable expenditures that are directly identifiable to and required for the Authorized Work, up to the amounts budgeted in the Concept Paper's budget worksheets for such Authorized Work. 1.14. Public Goods Charge (pGC): The funds collected from electric utility ratepayers pursuant to Section 381 of the California Public Utilities Code for public purposes programs, including energy efficiency programs approved by the Commission. In addition, all terms used in the singular will be deemed to include the plural, and vice versa. The words "herein," "hereto," and "hereunder" and words of similar import refer to this Agreement as a whole, including all exhibits or other attachments to this Agreement, as the same may from time to time be amended or supplemented, and not to any particular subdivision contained in this Agreement, except as the context clearly requires otherwise. "Includes" or 3 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 4-44 "including" when used herein is not intended to be exclusive, or to limit the generality of the preceding words, and means "including without limitation." The word "or" is not exclusive. 2. PURPOSE The Program is funded by California utility ratepayers and is adminisrered by SDG&E under the auspices of the Commission. The purpose of this Agreement is to set forth the terms and conditions under which the Parties will jointly implement the Program. The Program and work authorized pursuant to this Agreement is not carried on for profit. This Agreement is not intended to and does not form any "partnership" within the meaning of the California Uniform Partnership Act of 1994 or otherwise. 3. PROGRAM DESCRIPTION The Energy Efficiency and Conservation Outreach Program ("ECO Program") is being offered by SDG&E and the City. The ECO Program aims to enable City, its residents, developers, and South Bay cities to implement energy efficiency and conservation measures by overcoming existing barriers. South Bay includes City, Coronado, Imperial Beach, National City and unincorporated areas of the San Diego County. The ECO Program also aims to increase public awareness about energy efficiency and conservation through non-traditional education and outreach outlets and channels used by cities and San Die~o County. The ECO Program will enable target customers to implement energy efficiency and conservation measures by overcoming barriers that they face. The target customers and barriers for each customer include: · City of Chula Vista: The City does not have adequate resources to assign dedicated staff to pursue and implement energy efficiency projects on a consistent basis. · Residents: Residents do not have a clear understanding of what programs are available to them and which programs they qualify for. Residents also need face-to- face assistance to access and participate in energy efficiency programs. · Condominium Conversion Developers: Developers do not have the appropriate motivations to enhance the energy efficiency level of condominium conversion projects beyond Title 24 compliance. . South Bay Cities: South Bay cities lack policies, procedures and plans to institutionalize energy efficiency and conservation measures into how they do business. 4. AUTHORIZED WORK 4 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 4-45 4.1. Scope. The work authorized by the Commission for the Program is set forth in the Concept Paper for the service territory of SDG&E ("Authorized Work") and shall be performed by the Parties pursuant to the terms of this Agreement. 4.2. Objectives. Major objectives ("Objectives") for the Program are as follows: 4.2.1. City Enerl!V Efficient Facilities Showcase Proiect. Reduce the City of Chula Vista's energy use by 5% per year for a cumulative reduction of 15% by 2008 relative to 2005 energy use. 4.2.2. ECO Exhibit Proiect. Increase public awareness by assisting up to 160 people per day, with access to information through the implementation of up to four (4) Eco Exhibits and/or active participation in energy efficiency and conservation programs. 4.2.3. Energv Efficient Housing Proiect. Encourage condominium conversion developers to upgrade the energy efficiency of converted units by committing to complying with applicable Title 24 requirements and by further incorporating measures that go beyond Title 24 requirements by at least 10% or by reducing energy use for each unit by an average of 515 kW-hr and 15 therms per month. At least 500 condominiums per year will be targeted for upgrades for a total of 1,500 energy efficient condominiums by 2008, provided, however, the Parties may agree on a replacement program that would be designed during the program cycle, which design shall require the mutual agreement of both Parties and shall comply with Commission procedures. 4.2.4. Municipal Energv BMPs Education Proiect. Sponsor and coordinate at least four (4) energy efficiency and conservation workshops for cities every year. The goal of the workshop series is to initially assist South Bay cities develop energy action pfans to manage energy. By the fourth workshop, participating cities will have an Energy Action Plan to reduce their energy use. Workshops will be targeted to East County cities in 2007 and North County cities in 2008. The Program shall meet the objectives and goals set forth in the Concept Paper. 5. OBLIGATIONS OF THE PARTIES 5.1. Generallv. Each Party shall perform its Authorized Work obligations within the Authorized Budget and in conformance with the deliverables, schedules (including the Objectives) and the budgets associated with such Authorized Work as set forth in the Concept Paper, and shall furnish the required labor, equipment and material with the degree of skill and care that is required by current professional standards. 5 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 4-46 5.2. Additional OblilZations of Citv. 5.2.1. City shall obtain the approval of SDG&E when developing Program marketing materials prior to any distribution, publication, circulation or dissemination in any way to the public. In addition, all advertising, marketing or otherwise printed or reproduced material used to implement, refer to or is in any way related to the Program must contain the following language: 'This program is funded by California utility ratepayers and administered by San Diego Gas & Electric Company, under the auspices of the California Public Utilities Commission." 5.2,1. City will communicate regularly with the program representative of SDG&E, and shall advise SDG&E of any problems or delay associated with City's Authorized Work obligations. 5.3. Additional Oblieations of SDG&E. 5.3.1. SDG&E will be actively involved in all aspects of Program delivery. SDG&E will use its reasonable efforts to add value to the Program by dedicating the human resources necessary to implement the Program successfully and providing in-kind services support for the Program's marketing and outreach activities. 5.3.2. SDG&E shall provide, at no cost to the Program, informational and educational materials on SDG&E's statewide and local energy efficiency programs to City to enable City to implement the Program. 5.3.3. SDG&E shall provide a program representative on a part-time basis, who will be the point of contact between City and SDG&E for the Program. 5.4. EM&V. Once the Commission has approved and issued an evaluation, measurement and verification ("EM&V") plan for the Program, such EM&V plan shall be attached to this Agreement as Exhibit B and shall be incorporated herein by this reference. Any subsequent changes or modifications to such EM&V plan by the Commission shall be automatically incorporated into Exhibit B. 6. ADMINISTRATION OF PROGRAM 6.1. Decision-making and Aooroval. 6.1.1. Unless otherwise set forth in this Agreement, the following actions and tasks require unanimous approval of the Parties (which approval may be withheld by each such Party in its sole and absolute discretion): 6 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 4-47 a. Any action that materially deviates from the Concept Paper. b. Any action that materially impacts the Concept Paper's schedule or the Program. c. Any action that materially impacts the Program's budget set forth in the Concept Paper. d. Selection of any Contractor not previously approved by SDG&E. 6.1.2. Unless otherwise specified in this Agreement, the Parties shall document all material Program decisions, including, without limitation, all actions specified in Section 6.1.1 above, in meeting minutes or, if taken outside a meeting, through written communication, in all cases which shall be maintained in hard copy form on file by the Parties for a period of no less than ten (10) years after the expiration or termination of this Agreement. 6.2. Re!!Ular Meetings. During the Term of this Agreement, the Parties shall meet on a regular basis, which shall occur no less than quarterly, at a location reasonably agreed upon by the Parties, and shall engage in routine weekly communication to review the status of the Program's deliverables, schedules and the budgets, and plan for upcoming Program implementation activities. Any decision-making shall be reached and documented in accordance with the requirements of Section 6.1.2 above. 6.3. Coordinating the Program Activities. Each Party shall be responsible for (i) coordinating the implementation of its Authorized Work obligations with the other Party, and (ii) monitoring the overall progress of the Authorized Work, to ensure that the Program remains on target, (including achieving the Program's energy savings and demand reduction goals), on schedule (including pursuant to the Objectives set forth in Section 4.2), and meets all reporting and other filing requirements. 6.4. Regular Communication. The Parties agree to communicate regularly with the other Parties and to advise the other Party of any problems associated with successful implementation of the Program. 6.5. Coordinating with Other Energy Efficiencv Programs. As applicable, SDG&E shall coordinate with other existing or selected programs (including programs targeting low-income customers) to enhance consistency in incentives and other Program details, minimize duplicative administrative costs and enhance the possibility that programs can be marketed together to avoid duplicative marketing expenditures. All Parties will coordinate with other energy programs to maximize customer satisfaction and energy savings. 6.6. Non-ResDonsibilitv for Other Parties. Notwithstanding anything contained in this Agreement in the contrary, a Party shall not be responsible for the performance or non- performance hereunder of any other Party, nor be obligated to remedy any other Party's defaults or defective performance. 7 2006.2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 4-48 7. DOUBLE DIPPING PROHIBITED. In perfonning its respective Authorized Work obligations, a Party shall implement the following mechanism and shall take other practicable steps to minimize double-dipping: 7.1. Prior to providing incentives or services to an Eligible Customer, City shall obtain a signed form from such Eligible Customer stating that: 7.1.1. Such Eligible Customer has not received incentives or services for the same measure from any other SDG&E program or from another utility, state, or local program; and 7.1.2. Such Eligible Customer agrees not to apply for or receive incentives or services for the same measure from another utility, state, or local program. City shall keep its Eligible Customer-signed forms for at least ten (10) years after the expiration or tennination of this Agreement. 7.2. City shall not knowingly provide an incentive to an Eligible Customer, or make payment to a Contractor, who is receiving compensation for the same product or service either through another ratepayer funded program, or through any other funding source. 7.3. City represents and warrants that it has not received, and will not apply for or accept, incentives or services for any measure provided for herein or offered pursuant to this Agreement or the Program from any other utility, state or local program. 7.4. The Parties shall take reasonable steps to minimize or avoid the provision of incentives or services for the same measures provided under this Program from another program or other funding source ("double-dipping"). 8. REPORTING 8.1. Reporting Requirements. The Parties shall implement those reporting requirements set forth in Exhibit C attached hereto and incorporated herein by this reference, as approved by the Commission and as the same may be amended from time to time, or until the Commission otherwise requires or issues different or updated reporting requirements for the Program, in which case and at which time such Commission- approved reporting requirements shall replace the requirements set forth in Exhibit C in their entirety. 8.2. Commission Reporting Requirements Manual. All reports shall be submitted in accordance with the requirements of the latest version of the Commission's Reporting Requirements Manual (currently Version 3, August 2005) and any other reporting 8 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 4-49 protocol established by Commission staff. The Parties shall use their best efforts to provide any additional information as requested by SDG&E or by Commission staff. 9. PAYMENTS 9.1. Authorized Budget. No Party shall be entitled to compensation in excess of the total amounts approved by the Commission in the Authorized Budget for such Party's Authorized Work obligations. However, if SDG&E executes any fund shift in accordance with Section 9.4 below, then each Party shall be entitled to compensation up to, but not exceeding, the Authorized Budget, as revised to reflect such fund shift, for such Party's Authorized Work obligations. 9.2. Program Expenditures. Each Party shall be entitled to spend PGC or Gas Surcharge Program Funds on Program Expenditures incurred by such Party. 9.3. Pavment to Citv. In order for City to be entitled to PGC or Gas Surcharge funds for Program Expenditures: 9.3.1. City shall invoice SDG&E quarterly, in advance and no later than the 15th day of the first calendar month of each calendar quarter, for all reasonable projected Program Expenditures for such quarter ("Quarterly Invoice"), together with all such documentation reasonably required by SDG&E to evidence the calculation of such projected Program Expenditures and all such other documentation required to be attached thereto as described in Section 9.3.2 below. With respect to the quarter in progress at the time of execution of this Agreement, City shall submit, by the 15th day of the month in which such execution occurred (or if such 15th day has passed, then the 15th day of the following month), such Quarterly Invoice for such quarter in progress (together with all such documentation). 9.3.2. At the end of each calendar quarter of the term of this Agreement, City shall provide an accounting of all Program Expenditures that actually incurred by City during the course of such quarter. City shall calculate the difference between the actual Program Expenditures incurred by City during the quarter just passed and the amount advanced by SDG&E under Section 9.3.1 in respect of such quarter. If such actual Program Expenditures incurred by City during such quarter is greater than such amount advanced by SDG&E for such quarter, then City's Quarterly Invoice for the following calendar quarter shall include a charge in the amount of such difference. If the actual Program Expenditures incurred by City during such quarter is less than such amount advanced by SDG&E for such quarter, then City's Quarterly Invoice for the following calendar quarter shall include a credit in the amount of the amount of such difference. As a condition to payment by SDG&E in respect of a 9 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 4-50 Quarterly Invoice, City shall include with such Quarterly Invoice all such documentation reasonably required by SDG&E evidencing the accounting set forth in this Section 9.3.2 for the previous calendar quarter. 9.33. Upon the expiration or earlier termination of this Agreement or the Program, City shall provide a true-up of Program Expenditures during the entire term of the Program and shall provide (or shall have provided) no later than thirty (30) days after the effective date of such expiration or earlier termination all such documentation reasonably requested by SDG&E to evidence all Program Expenditures incurred by City during the term of the Agreement and the Program. If the total actual Program Expenditures incurred by City during the term of the Program is greater than the total amount of Program Expenditures paid by SDG&E during the term of the Program, then City shall deli ver an invoice SDG&E in the amount of such difference at the same time City delivers the documentation described above in this Section 9.33. If the total actual Program Expenditures incurred by City during the term of the Program is less than the total amount of Program Expenditures paid by SDG&E during the term of the Program, then City shall refund the difference to SDG&E within thirty (30) calendar days after the effective date of such expiration or earlier termination. 9.3.4. SDG&E shall pay all invoices within thirty (30) calendar days after receipt such invoice and all documentation and accountings required to be delivered with such invoice as set forth in this Section 9.3, exclusive of any disputed items. 9.3.5. City shall submit monthly and quarterly reports to SDG&E, in a format reasonably acceptable to SDG&E and containing such information as may be required for the reporting requirements set forth in Section 8 above ("Periodic City Reports"), by the tenth (loth) Calendar Day of the calendar month following performance, setting forth all Program Expenditures incurred during the prior calendar month or quarter, as applicable. 9.3.6. Documentation necessary to substantiate the Program Expenditures shall include, without limitation, the following: a. Incentives: Subject to the provisions of Section 7, for each incentive paid to Eligible Customers or Contractors (other than point of purchase programs): (i) Eligible Customer or Contractor name, address and telephone number; (ii) the type and quantity of each measure installed or received; (Hi) the amount of each incentive paid, and 10 2006-2008 CITY OF CHULA VISTA ENERGY EFFICJENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 4-51 (iv) the date each payment was provided or each measure was installed or received. b. Labor: For each of the Program's budget categories applicable to City (e.g. Direct Implementation), a list of individuals and total hours worked and labor rate( s) for each person during the month in each budget category. c. Equipment and Material: A list of equipment and material used andlor installed in the performance of the Authorized Work during the month, and supporting documentation for the cost incurred by City therewith. d. Overhead items other than travel/training/conferences: Supporting documentation for overhead items such as rent, computer equipment, facility charges, is required and shall be provided in accordance with the provisions of Exhibit C. However, such information must be provided upon request by either SDG&E or the Commission. e. TravelfTraining/Conference: Supporting documentation for all travel-related expenditures. While original receipts need not be submitted, a detailed expense report for all travel expenses should be provided, which includes airfare, mileage, meals, lodging, parking, etc, in the format approved by SDG&E. A detailed travel expense report should include the following information: name of person incurring expense, reason for expense, date(s) incurred and type of expense (e.g. airfare, airport parking, rental car, other parking, mileage, meals, hotel, other costs, if any). f. Contractor Costs: Copies of all Contractor invoices. If only a portion of the Contractor costs applies to the Program, City shall clearly indicate the line items or percentage of the invoice amount that should be applied to the Program, as provided in Exhibit C. g. Marketing: A copy of each distinct marketing material produced, with quantity of a given marketing material produced and the method of distribution. 9.3.7. City understands that only those costs listed in the Allowable Cost Table set forth in Exhibit C can be submitted for payment. All invoices submitted to SDG&E must report all Program Expenditures using the allowable cost items included on the Allowable Cost Table set forth in Exhibit C. 11 2006-2008 CITY OF CHULA VISTA ENERGY EFFICmNCY AND CONSERVATION OUI'REACH PROGRAM AGREEMENT 4-52 9.3.8. SDG&E reserves the right to reject any City invoiced amount for any of the following reasons: a. The invoiced amount, when aggregated with previous Program Expenditures, exceeds the amount budgeted therefor in the Authorized Budget for such Authorized Work. b. There is a reasonable basis for concluding that such invoiced amount is unreasonable or is not directly identifiable to or required for the Authorized Work, the Concept Paper or the Program. c. Such invoiced amount, in SDG&E's sole discretion, contains charges for any item not authorized under this Agreement or by the Commission, or is deemed untimely, unsubstantiated or lacking proper documentation. 9.3.9. Should SDG&E reject any Program Expenditure of City, City invoice or Periodic City Report, SDG&E may request such additional performance required from City, modification required to City's invoice or such other action as may be required of City, and any continuing dispute therefrom shall be resolved in accordance with the procedures set forth in Section 14. 9.3.10. City shall maintain for a period of not less than ten (10) years all documentation reasonably necessary to substantiate the Program Expenditures, including, without limitation, the documentation set forth in Section 9.3.6(a) through (g) above. City shall promptly provide, upon the reasonable request by SDG&E, any documentation, records or information in connection with the Program or its Authorized Work. 9.4. Shifting Funds Across Budget Categories. SDG&E may shift Program funds among budget categories (e.g. Administrative and Direct Implementation) as set forth in the Concept Paper to the maximum extent permitted under, and in accordance with, Commission decisions and rulings therefor to which this Program relates. 9.5. Reasonableness of Expenditures. Each Party shall bear the burden of ensuring that its Program Expenditures are objectively reasonable. The Commission has the authority to review all Program Expenditures for reasonableness. Should the Commission, at any time, issue a finding of unreasonableness as to any Program Expenditure, and require a refund or return of the PGC or Gas Surcharge funds paid in the reimbursement of such Program Expenditure, the Party who incurred such Program Expenditure and received reimbursement under this Agreement shall be solely and severally liable for such refund or return. 12 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 4-53 9.6. Refund of PGC or Gas Surcharge Funds. With respect to any amount subject to refund to the Commission pursuant to any subsequent Commission decision or ruling, should the Commission derermine that a refund is due and seeks to recover such refund, the amount due shall be returned as directed by the Commission, within 30 days of receipt of written notice that payment is owed, as follows: (1) if the refund is attributable to an overpayment of Program funds to a Party, then that Party shall be solely liable for such refund; (2) if the refund is attributable to an unreasonable expenditure, then the Party who (i) incurred such Program Expenditure and received reimbursement therefor under this Agreement, or (Ii) was otherwise entitled to receive reimbursement under this Agreement but did not actually receive reimbursement due to receipt of an equivalent offset, shall be solely liable for such refund; (3) for any other refund, each Party shall be solely liable for its pro-rata share, determined by calculating the percentage of the total overall Program Expenditures represented by each Party's reimbursements of Program Expenditures (both actual reimbursements and those to which the Party was otherwise entitled but did not receive due to receipt of an equivalent offset). Nothin~ in this provision is intended to limit a Party's right to pursue administrative or other remedies available with respect to a Commission decision or ruling. A Party's approval of any action which is the responsibility of another Party under this Agreement shall not shift the corresponding responsibility with respect to any overpayment or unreasonable Program Expenditure. Notwithstanding the foregoing, any overpayment of Program funds to a Party (the "Receiving Party") shall be immediately due and payable by the Receiving Party, upon demand therefor, to the Party who made the overpayment, and the Party who made the overpayment shall have the right to set the overpayment off from any other Program funds payable to the Receiving Party, if possible, or otherwise pursue any available remedies for the recovery of the overpayment. 10. END DATE FOR PROGRAM AND ADMINISTRATIVE ACTIVITIES. Unless this Agreement is terminated pursuant to Section 24 below, and subject to the Objectives, the Parties shall complete all Program Administrative activities (as defined by the Concept Paper) and reporting requirements by no later than March 31, 2009, and all Direct Implementation activities (as defined by the Concept Paper) by no later than December 31,2008, in each case unless otherwise agreed to by the Parties or so ordered by the Commission. 11. FINAL INVOICES All Parties must submit final invoices no later than March 31, 2009. 12. INDEMNITY 12.1. Indemnitv bv Citv. City shall indemnify, defend and hold harmless SDG&E, and its successors, assigns, affiliates, subsidiaries, current and future parent companies, officers, directors, agents, and employees, from and against any and all expenses, claims, losses, damages, liabilities or actions in respect thereof (including reasonable attorneys' 13 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 4-54 fees) to the extent arising from (a) City's negligence or willful misconduct in City's activities under the Program or performance of its obligations hereunder, or (b) City's breach of this Agreement or of any representation or warranty of City contained in this Agreement. 12.2. Indemnitv bv SDG&E. SDG&E shall indemnify, defend and hold harmless City and its successors, assigns, affiliates, subsidiaries, current and future parent companies, officers, directors, agents, and employees, from and against any and all expenses, claims, losses, damages, liabilities or actions in respect thereof (including reasonable attorneys' fees) to the extent arising from (a) SDG&E's negligence or willful misconduct in SDG&E's activities under the Program or performance of its obligations hereunder or (b) SDG&E's breach of this Agreement or any representation or warranty of SDG&E contained in this Agreement. 12.3. LIMITATION OF UABILITY. NO PARTY SHALL BE liABlE TO ANY OTHER PARTY FOR ANY INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES WHATSOEVER WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE) OR STRICT LIABILITY INCLUDING, BUT NOT LIMITED TO, LOSS OF USE OF OR UNDER-UTILIZATION OF LABOR OR FACILITIES, LOSS OF REVENUE OR ANTICIPATED PROFITS, COST OF REPLACEMENT POWER OR CLAIMS FROM CUSTOMERS, RESULTING FROM A PARTY'S PERFORMANCE OR NONPERFORMANCE OF THE OBLIGATIONS HEREUNDER, OR IN THE EVENT OF SUSPENSION OF THE AUTIIORIZED WORK OR TERMINATION OF TillS AGREEMENT. 13. OWNERSIDP OF DEVELOPMENTS The Parties acknowledge and agree that SDG&E, on behalf of its ratepayers, shall own all data, reports, information, manuals, computer programs, works of authorship, designs or improvements of equipment, tools or processes (collectively "Developments") or other written, recorded, photographic or visual materials, or other deliverables produced in the performance of this Agreement; provided, however, that Developments do not include equipment or infrastructure purchased for research, development, education or demonstration related to energy efficiency. Although City shall retain no ownership, interest or title in the Developments except as may otherwise be provided in the Concept Paper, it will have a permanent, royalty free, non- exclusive license to use such Developments for the City's internal use and at the City's sole but reasonable discretion for the residents and businesses within the City's current and future municipal boundaries. 14. DISPUTE RESOLUTION 14. L Dispute Resolution. Except as may otherwise be set forth expressly herein, all disputes arising under this Agreement shall be resolved as set forth in this Section 14. 14 2006-2008 CITY OF CHULA VISTA ENERGY EFFICffiNCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 4-55 14.2. Negotiation and Mediation. The Parties shall attempt in good faith to resolve any dispute arising out of or relating to this Agreement promptly by negotiations between the Parties' authorized representatives. The disputing Party shall give the other Parties written notice of any dispute. Within twenty (20) days after delivery of such notice, the authorized representatives shall meet at a mutually acceptable time and place, and thereafter as often as they reasonably deem necessary to exchange information and to attempt to resolve the dispute. If the matter has not been resolved within thirty (30) days of the first meeting, any Party may initiate a mediation of the dispute. The mediation shall be facilitated by a mediator that is acceptable to all Parties and shall conclude within sixty (60) days of its commencement, unless the Parties agree to extend the mediation process beyond such deadline. Upon agreeing on a mediator, the Parties shall enter into a written agreement for the mediation services with each Party paying a pro rate share of the mediator's fee, if any. The mediation shall be conducted in accordance with the Commercial Mediation Rules of the American Arbitration Association; provided, however, that no consequential damages shall be awarded in any such proceeding and each Party shall bear its own legal fees and expenses. 14.3. Confidentialitv. All negotiations and any mediation conducted pursuant to Section 14.2 shall be confidential and shall be treated as compromise and settlement negotiations, to which Section 1152 of the Califomia Evidence Code shall apply, which Section is incorporated in this Agreement by reference. 14.4. Iniunctive Relief. Notwithstanding the foregoing provisions, a Party may seek a preliminary injunction or other provisional judicial remedy if in its judgment such action is necessary to avoid irreparable damage or to preserve the status quo. 14.5. Continuing Obligation. Each Party shall continue to perform its obligations under this Agreement pending final resolution of any dispute arising out of or relating to this Agreement. 14.6. Failure of Mediation. If, after good faith efforts to mediate a dispute under the terms of this Agreement as provided in Section 14.2 above, the Parties cannot agree to a resolution of the dispute, any Party may pursue whatever legal remedies may be available to it at law or in equity, before a court of competent jurisdiction and with venue as provided in Section 34. 15. REPRESENTATIONS AND WARRANTIES City represents, warrants and covenants, as of the Effective Date and thereafter during the Term of this Agreement that: 15.1. The Authorized Work performed by City and its Contractors shall comply with the applicable requirements of all statutes, acts, ordinances, regulations, codes, and standards of federal, state, local and foreign governments, and all agencies thereof. 15 2006-2008 CITY OF CHULA VISTA ENERGY EFFICmNCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 4-56 15.2. The Authorized Work performed by City and its Contractors shall be free of any claim of trade secret, trade mark, trade name, copyright, or patent infringement or other violations of any proprietary rights of any person. 15.3. City shall conform to the applicable employment practices requirements of (Presidential) Executive Order 11246 of September 24, 1965, as amended, and applicable regulations promulgated thereunder. 15.4. City shall contractually require each Contractor it hires to perfonn the Authorized Work to indemnify SDG&E to the same extent City has indemnified SDG&E under the tenns and conditions of this Agreement. 15.5. City shall retain, and shall cause its Contractors to retain, all records and documents pertaining to its Authorized Work obligations for a period of not less than five (5) years beyond the termination or expiration of this Agreement. 15.6. City shall contractually require all of its Contractors to provide SDG&E reasonable access to relevant records and staff of Contractors concerning the Authorized Work. 15.7. City will take all reasonable measures, and shall require its Contractors to take all reasonable measures, to ensure that the Program funds in its possession are used solely for Authorized Wark, which measures shall include the highest degree of care that City uses to control its own funds, but in no event less than a reasonable degree of care. 15.8. City will maintain, and shall require its Contractors to maintain, insurance coverage or self insurance coverage in reasonable and customary coverage and amounts at all times during the Term of this Agreement. a. 16. PROOF OF INSURANCE 16.1. Evidence of Coverage. Upon request at any time during the Tenn of this Agreement, City shall provide evidence that its insurance policies (and the insurance policies of any Contractor, as provided in Section 15.8) are in full force and effect, and provide the coverage and limits of insurance that City has represented and warranted herein to maintain at all times during the Tenn of this Agreement. 16.2. Self-Insurance. If City is self-insured, City shall upon request forward documentation to SDG&E that demonstrates to SDG&E's satisfaction that City self- insures as a matter of normal business practice before commencing the Authorized Work. SDG&E will accept reasonable proof of self-insurance comparable to the above requirements. 16 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 4-57 17. CUSTOMER CONFIDENTIALITY REQUIREMENTS 17.1. Non-Disclosure. City, its employees, agents and Contractors shall not disclose any Confidential Customer Information (defined below) to any third party during the Term of this Agreement or after its completion, without City having obtained the prior written consent of SDG&E, except as provided by law, lawful court order or subpoena and provided City gives SDG&E advance written notice of such order or subpoena. 17.2. Confidential Customer Information. "Confidential Customer Information" includes, but is not limited to, a SDG&E customer's name, address, telephone number, account number and all billing and usage information, as well as any SDG&E customer's information that is marked confidential. If City is uncertain whether any information should be considered Confidential Customer Information, City shall contact SDG&E prior to disclosing the customer information. 17.3. Non-Disclosure Agreement. Prior to any approved disclosure of Confidential Customer Information, SDG&E may require City to enter into a nondisclosure agreement. 17.4. Commission Proceedim!:s. This Section 17 does not prohibit City from disclosing non-confidential information concerning the Authorized Work to the Commission in any Commission proceeding, or any Commission-sanctioned meeting or proceeding or other public forum. 17.5. Return of Confidential Information. Confidential Customer Information (including all copies, backups and abstracts thereof) provided to City by SDG&E, and any and all documents and materials containing such Confidential Customer Information or produced by City based on such Confidential Customer Information (including all copies, backups and abstracts thereof), during the performance of this Agreement shall be returned upon written request by SDG&E. 17.6. Remedies. The Parties acknowledge that Confidential Customer Information is valuable and unique, and that damages would be an inadequate remedy for breach of this Section 17 and the obligations of City are specifically enforceable. Accordingly, the Parties agree that in the event of a breach or threatened breach of this Section 17 by City, SDG&E shall be entitled to seek and obtain an injunction preventing such breach, without the necessity of proving damages or posting any bond. Any such relief shall be in addition to, and not in lieu of, money damages or any other available legal or equitable remedy. 17.7. Public Records Act. Notwithstanding the foregoing, SDG&E understands that all information provided to the City may be subject to public review pursuant to the California Public Records Act (California Government Code Section 6250 et seq.), which 17 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 4-58 provides that records in the custody of a public entity might be disclosed unless the information being sought falls into one or more of the exemptions to disclosure set out in Government Code Sections 6254 through 6255. As a result, City may be obligated to disclose any information provided to the City to any party that requests it to the extent permitted under the California Public Records Act. 18. TIME IS OF THE ESSENCE The Parties hereby acknowledge that time is of the essence in perfonning their obligations under the Agreement. Failure to comply with deadlines stated in this Agreement may result in tennination of this Agreement, payments being withheld or other Program modifications as directed by the Commission. 19. CUSTO.MER COMPLAlNT RESOLUTION PROCESS City shall develop and implement a process for the management and resolution of customer complaints in an expedited manner including, but not limited to: (a) ensuring adequate levels of professional customer service staff; (b) direct access of customer complaints to supervisory and/or management personnel; (c) documenting each customer complaint upon receipt; and (d) elevating any complaint that is not resolved within five (5) days of receipt by City. 20. RESTRICTIONS ON MARKETING 20.1. Use of Commission's Name. No Party may use the name of the Commission on marketing materials for the Program without prior written approval from the Commission staff. In order to obtain this written approval, SDG&E must send a copy of the planned materials to the Commission requesting approval to use the Commission name and/or logo. Notwithstanding the foregoing, the Parties shall disclose their source of funding-for the Program by stating prominently on marketing materials that the Program is "funded by California ratepayers under the auspices of the California Public Utilities Commission." 20.2. Use of SDG&E's Names. City must receive prior review and written approval from SDG&E for the use of SDG&E's name or logo on any marketing or other Program materials (which approval may be withheld at SDG&E's sole and absolute discretion). City shall allow twenty (20) days for SDG&E review and approval. 20.3. Use of Citv Name. SDG&E must receive prior written approval from City for use of City's name or logo on any marketing or other Program materials (which approval may be withheld at City's sole and absolute discretion). SDG&E shall allow twenty (20) days for such City review and approval. 21. RIGHT TO AUDIT 18 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 4-59 City agrees that SDG&E and/or the Commission, or their respective designated representatives, shall have the right to review and to copy any records or supporting documentation pertaining to City's performance of this Agreement or the Authorized Work, during normal business hours, and to allow reasonable access in order to interview any employees of City who might reasonably have information related to such records. Further, City agrees to include a similar right of SDG&E and/or the Commission to audit records and interview staff in any subcontract related to performance of City's Authorized Work or this Agreement. 22. STOP WORK PROCEDURES SDG&E may suspend City's Authorized Work being for good cause, such as concerns related to funding, implementation or management of the Program, safety concerns, fraud, or excessive Customer complaints, by notifying City in writing to suspend its Authorized Work being performed in its service territory. City shall stop work immediately, and may resume its Authorized Work only upon receiving written notice from SDG&E that it may resume its Authorized Work. 23. MObIFtCATIONS Changes to this Agreement shall only be made by mutual agreement of all Parties through a written amendment to this Agreement signed by all Parties. 24. TERM AND TERMINATION 24.1. Term. This Agreement shall be effective as of January 1, 2006. Subject to Section 36 below and Section 10 above, this Agreement shall continue in effect until March 31, 2009 ("Term") unless otherwise earlier tenninated in accordance with the provisions of Section 24.2, 24.3 or 29 below or any other provisions of this Agreement. 24.2. Termination for Breach. Any Party may tenninate this Agreement in the event of a material breach by the other Party of any of the material terms or conditions of this Agreement, provided such breach is not remedied within sixty (60) days notice to the breaching Party thereof from the non-breaching Party or otherwise cured pursuant to the dispute resolution provisions set forth in Section 14 herein. 24.3. Tennination for Convenience. SDG&E and the City of Chula Vista shall each have the right to tenninate this Agreement, at their sole convenience and without first obtaining the other Party's prior consent, by providing at least thirty (30) days' prior written notice to the other Party setting forth the effective date of such tennination. 24.4. Effect of Termination. 19 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 4-60 24.4.1. In the event of termination of this Agreement, the Parties shall be entitled to PGC and/or Gas Surcharge Funds for all Program Expenditures incurred or accrued pursuant to contractual or other legal obligations for Authorized Work up to the effective date of termination of this Agreement, provided that any Periodic City Reports or other reports, invoices, documents or information required under this Agreement or by the Commission are submitted in accordance with the terms and conditions of this Agreement. The provisions of this Section 24.4.1 shall be a Party's sole compensation resulting from any termination of this Agreement. 24.4.2. In the event of termination of this Agreement, City and SDG&E shall stop any Authorized Work in progress and take action as directed by the other Party to bring the Authorized Work to an orderly conclusion, and the Parties shall work cooperatively to facilitate the termination of operations and any applicable contracts for Authorized Work. SDG&E shall, within 30 days, make payment to the City for any Program Expenditures incurred by City prior to the effective date of the termination, unless otherwise prohibited by law or CPUC action. 25. WRITTEN NOTICES Any written notice, demand or request required or authorized in connection with this Agreement, shall be deemed properly given if delivered in person or sent by facsimile, nationally recognized overnight courier, or first class mail, postage prepaid, to the address specified below, or to another address specified in writing by a Party as follows: City: The City of Chula Vista Michael Meacham, Director Conservation & Environmental Services Department 276 Fourth Avenue Chula Vista, CA 91910 (619) 407-3545 telephone (619) 409-5884 facsimile mmeacham@ci.chula-vista.ca.us SDG&E: San Diego Gas & Electric Company Risa Baron, Energy Programs Supervisor 8306 Century Park Ct San Diego, CA 92123-1530 (858) 654-1103 telephone (858) 654-1175 facsimile rbaron@semprautilities.com Notices shall be deemed received (a) if personally or hand-delivered, upon the date of delivery to the address of the person to receive such notice if delivered before 5:00 p.m., or otherwise on the Business Day following personal delivery; (b) if mailed, three (3) Business Days after the date the notice is postmarked; (c) if by facsimile, upon electronic confirmation of transmission, followed by telephone notification of transmission by the noticing Party; or (d) if by overnight courier, on the Business Day following delivery to the overnight courier within the time limits set by that courier for next-day delivery. 20 2006.2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 4-61 26. CONTRACTS Each Party shall, at all times, be responsible for its Authorized Work obligations, and acts and omissions of Contractors and persons directly or indirectly employed by such Party for services in connection with the Authorized Work. 27. RELATIONSHIPOFTHEPARTlES The Parties shall act in an independent capacity and not as officers or employees or agents of each other. This Agreement is not intended to and does not form any "partnership" within the meaning of the Califomia Uniform Partnership Act of 1994 or otherwise. 28. NON-DISCRIMINATION CLAUSE No Party shall unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex, race, color, ancestry, religious creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition (cancer), age (over 40), marital status, and denial of family care leave. Each Party shall ensure that the evaluation and treatment of its employees and applicants for employment are free from such discrimination and harassment, and shall comply with the provisions of the Fair Employment and Housing Act (Government Code Section 12990 (a)-(f) et seq.) and the applicable regulations promulgated thereunder (California Code of Regulations, Title 2, Section 7285 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code Section 12990 (a)-(f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations, are incorporated into this Agreement by reference and made a part hereof as if set forth in full. Each Party represents and warrants that it shall include the substance of the nondiscrimination and compliance provisions of this clause in all subcontracts for its Authorized Work obligations. 29. COMMISSION AUTHORITY TO MODIFY This Agreement shall at aU times be subject to the discretion of the Commission. including, but not limited to, review and modifications, excusing a Party's performance hereunder, or termination as the Commission may direct from time to time in the reasonable exercise of its jurisdiction. In addition, in the event that any ruling, decision or other action by the Commission adversely impacts the Program, as determined at their respective sole discretion, SDG&E and the City shall each have the right to terminate this Agreement (subject, however, to the provisions of Sections 24.4 and 36) by providing at least ten (10) days' prior written notice to City setting forth the effective date of such termination. SDG&E shall, within 30 days, make payment to the City for any Program Expenditures incurred by City prior to the effective date of the termination, unless otherwise prohibited by law or CPUC action. 21 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 4-62 30. NON-WAIVER None of the provisions of this Agreement shall be considered waived by any Party unless such waiver is specifically stated in writing. 31. ASSIGNMENT No Party shall assign this Agreement or any part or interest thereof, without the prior written consent of the other Party, and any assignment without such consent shall be void and of no effect. Notwithstanding the foregoing, if SDG&E is requested or required by the Commission to assign its rights and/or delegate its duties hereunder, in whole or in part, such assignment or delegation shall not require City's consent, and SDG&E shall be released from all obligations hereunder arising after the effective date of such assignment, both as principal and as surety. 32. FORCE MAJEURE Failure of a Party to perform its obligations under this Agreement by reason of any of the following shall not constitute an event of default or breach of this Agreement: strikes, picket lines, boycott efforts, earthquakes, fires, floods, war (whether or not declared), revolution, riots, insurrections, acts of God, acts of govertunent (including, without limitation, any agency or department of the United States of America), acts of terrorism, acts of the public enemy, scarcity or rationing of gasoline or other fuel or vital products, inability to obtain materials or labor, or other causes which are reasonably beyond the control of such Party. 33. SEVERABILITY In the event that any of the terms, covenants or conditions of this Agreement, or the application of any such term, covenant or condition, shall be held invalid as to any person or circumstance by any court, regulatory agency, or other regulatory body having jurisdiction, all other terms, covenants, or conditions of this Agreement and their application shall not be affected thereby, but shall remain in full force and effect, unless a court, regulatory agency, or other regulatory body holds that the provisions are not separable from all other provisions of this Agreement. 34. GOVERNING LAW; VENUE This Agreement shall be interpreted, governed, and construed under the laws of the State of California as if executed and to be performed wholly within the State of California. Any action brought to enforce or interpret this Agreement shaH be filed in San Diego County, California. 35. SECTION HEADINGS Section headings appearing in this Agreement are for convenience only and shall not be construed as interpretations of text. 22 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 4-63 36. SURVW AL Notwithstanding completion or of this Agreement, the Parties shall continue to be bound by the provisions of this Agreement which by their narure or terms survive such completion or termination. Such provisions shall include, but are not limited to, Sections 8,9,12, 13, 14, 17, 21, 34, 36 and 37 of this Agreement. 37. ATTORNEYS' FEES Except as otherwise provided herein, in the event of any legal action or other proceeding between the Parties arising out of this Agreement or the transactions contemplated herein, each Party in such legal action or proceeding shall bear its own costs and expenses incurred therein, including reasonable attorneys' fees. 38. COOPERATION Each Party agrees to cooperate with the other Parties in whatever manner is reasonably required to facilitate the successful completion of this Agreement. 39. ENTIRE AGREEMENT This Agreement (including the Exhibits hereto) contains the entire agreement and understanding between the Parties and merges and supersedes all prior agreements, representations and discussions pertaining to the Authorized Work. 40. APPROVALS Unless otherwise set forth in herein, approvals required of a Party shall not be unreasonably withheld by such Party. 41. COUNTERPARTS. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which together shall be deemed to be one and the same instrument. (Signature page follows) 23 2006.2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 4-64 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their duly authorized representatives. CITY: THE CITY OF CHULA VISTA d~ At~ - Attest: Susan Bigelow, City Clerk: f rf&,~i?::A- SDG&E: LECTRIC COMPANY , Name: Anne Shen Smith Title: Sr. Vice President, Customer Service 24 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 4-65 EXHIBIT A 2006-2008 CONCEPT PAPER 2006-2008 Energy Efficiency Concept Paper City of Chula Vista & San Diego Gas & Electric Initiative Conservation Outreach Program (ECO Program) 1. Proiected Pro.ram Budeet 2006 2007 2008 l6.dministration Administrative Overheads $ 36,554 $ 36,554 i$ 36 554 Administrative Other $ 255 876 $ 255,876 $ 255,876 Marketina & Outreach $ . $ . $ . Direct Implementation Incentives $ - $ . $ - Activitv $ 438,845 $ 438 645 $ 438,645 Installation $ . $ - $ . Hardware & Materials $ - $ - $ - Rebate Processing & Insoection $ . $ . $ . EM&V $ - $ . $ - Total $ 731,075 $ 731,075 $ 731,075 2. Savings identified in this paper are estimated based on the Energy Efficient Housing Project component. Tbe kW, kWh and therm savings along with incentives and rebates for City of Chula Vista retrofit projects for City facilities are included in the SDG&E Energy Savings Bid Program (see City Energy Efficient Facilities Showcase Project below). There are no projected kW, kWh and therm direct savings for the ECO Exhibit and the Municipal Energy BMPs Education Projects. 3. Program Cost ElTectiveness Attached 4. Program Descriptors The Energy Efficiency and Conservation Outreach Program (ECO Program) is being offered by San Diego Gas & Electric Company, (SDG&E) and the City of Chula Vista (Chula Vista). The ECG Program aims to enable Chula Vista. residents, developers, and Southbay cities to implement energy efficiency and conservation measures by overcoming existing barriers. Southbay includes Chula Vista, Coronado. Imperial Beach, National City and unincorporated areas of the San Diego County. The ECO Program also aims to increase public awareness about energy efficiency and conservation through non-traditional education and outreach outlets and channels used by cities and the COtmty. 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 4-66 5. Program Statement The ECO Program will enable target customers to implement energy efficiency and conservation measures by overcoming barriers lbat lbey face. The target customers and barriers for each customer include: . City of Cbula Vista: The City does not have adequate resources to assign dedicated staff to pursue and implement energy efficiency projects on a consistent basis. . Residents: Residents do not have a clear understanding of what programs are available to lbem and which programs lbey qualify for. Residents also need face-to-face assistance to access and participate in energy efficiency programs. . Condominium Conversion Developers: Developers do not have lbe appropriate motivations to enhance the energy efficiency level of condominium conversion projects beyond Title 24 compliance. . Southbay Cities: Southbay Cities lack policies, procedures and plans to institutionalize energy efficiency and conservation measures into how they do business. 6. Program Rationale . City Energy Efficient Facilities Showcase Project: Chula Vista has over 100 City owned buildings and infrastructure that consume electricity and natural gas. The City has about 550 electricity and natural gas meters and uses approximately 18 million kW-hrs of electricity and approximately 800,000 lberms of natural gas annually. Due to addition of new City buildings and infrastructure, the City's energy use is projected to increase by at least 5% in 2006. The City's annual energy budget is approximately $3.4 million. The City~s actual energy costs are also projected to increase due to new City load and rising energy rates. Although the City has aggressively pursued energy efficiency retrofits to reduce energy use. to reduce cost. to improve maintenance and to reduce its impact on the environment, there are still many opportunities to improve how the City uses energy. An opportunity to position City facilities to participate in SDG&E's demand response programs also exists, The ECO Program seeks to enable the City to manage its energy use more effectively and consistently by providing funding to the City for dedicated energy staff. . ECO Exhibit Project: Chula Vista has co-sponsored Hard-to-Reach lighting events wilb SDG&E for the past three years at various City venues. Year after year, an average of 600 households (.01 % of Chula Vista~s housing stock) participate in the one-day events to exchange their inefficient incandescent light bulbs for more efficient compact fluorescent lights. Approximately 15% of lbe participating households also sign up for SDG&E programs available to low income and senior citizens. The City believes that the success of the events can be attributed to effective execution of a marketing plan developed by SDG&E and City staff, face-to-face assistance from SDG&E and City staff and customer convenience. The mobile ECO Exhibits aims to provide face-to-face assistance and convenience on a more predictable basis by placing lbe staffed ECO Exhibits in high traffic community locations. The City's believes that it can reach more lban lbe .01 % of the households in lbe City by providing a predictable location where residents can go to for assistance on energy issues. . Energy Efficient Housing Project: There are currently about 800 apartment units at various stages of the condominium conversion process by the City's Planning and Building Department. The Chula Vista Planning and Building department estimates that at least 500 units per year will undergo conversions from apartments to cOudominiumsfrom 2006 to 2008 in. There is an untapped potential for energy efficiency since condominium conversion developers are not often required to meet the most current Title 24 requirements. Under this project, condominium conversion projects with three or more units will be eligible for expedited plan review and permitting if they commit to incorporating energy efficiency measures to exceed Title 24 requirements by at least 10% or if they incorporate measures to reduce lbe average energy use for each unit by 515 kW-hr and 15 therms per month. Note: SDG&E, along with lbe City of Chula Vista, City of San Diego, and the County of San Diego will continue to review various options for implementing Title 24 guidelines. Where necessary. standard thresholds may be applied Allbough it is preferred lbat program participants not receive utility incentives payments, in exchange for expedited approval of their requested building permits or land use, ability to participate in 26 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 4-67 both the expedite and incentive programs may be considered. Both strategies will be reviewed during the initial pbases of the program. . Municipal Energy BMPs Education Project: Staff from Southbay cities bave continually expressed their desire to participate in energy efficiency programs available from SDRBO and SDG&E. Unfortunately, due to competing priorities, .taff from Southbay cities bave not dedicated time or resources to pursuing potential energy reCroftt projects. Staff believes that the major barrier to participating in energy efficiency programs is their City's lack of policies related to energy management. Tbe goal of the Municipal Energy BMP. Education project workshop series is to assist cities develop energy action plans for Council adoption to manage energy more effectively. The City ofChula Vista's C02 Reduction Plan will be used as a model for the workshop.. By the end of the fourth workshop, participating cities will have an Energy Action Plan to reduce their energy use. 7. Program Outcomes The program is a savings, education and outreach program, which will deliver net energy savings, peak demand savings and sustained efficiency at City facilities, for residents, multi-family housing units and at otber Cities. Tbe desired outcomes of the ECO Partnership are to: o Enable the City to pursue energy efficiency projects and implement demand response at City owned facilities, o Enable residents to take action by educating residents about energy efficient technology and energy conservation best management practices, o Enable and motivate developers to invest in energy efficiency upgrades for multi-dwelling units by expediting the City's plan review and permitting process, o Enable Southbay cities to institutionalize energy efficiency and conservation into their practices by providing a step-by-step approach to developing and implementing locally adopted policies. 8. Program Strategy The City will assign an Energy Administrator to oversee general management of the ECO Program. The Energy Administrator will be responsible for coordinating with SDG&E, SDREO and other third party provider staff to ensure ECO Program projects work plans are developed and implemented to meet established goals and objectives. The Energy Administrator will also coordinate efforts with internal and ex.ternal partners to develop effective outreach and marketing material to ensure program clarity. The program strategies that will be used are: . Residential New Construction . Residential Target Marketing 8.1.1 Program Strategy Description Residential New Construction: The program strategy for this part of the program is to expedite plan review and permitting to ineent builders to include more energy efficient measures into condos converted from apartments. Tbe City will reach condominium conversions developers by modifying plan review and permit applications to inform developers about the expedite process, Residential Target Marketing There are several parts to this strategy. The fIrst is to provide face-tn-face energy efficiency and conservation outreacb to low income, elderly and other hard-to-reacb customers. This will be done thorough mobile energy efficiency and conservation outreach exhibits (BeG Exhibits) staffed by trained personnel. The mobile BeO 27 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 4-68 Exhibits will be located at City facilities and at regional centers such as shopping centers and maIIs throughout the Southbay. The second is to share lessons learned and best management practices (EMPs) with Southbay cities through a series of four workshops. The last element is to provide the City with funding to hire dedicated energy staff. Energy staff funded by the partnership will develop retrofit projects for both new and existing City buildings and facilities, working with SDG&E's Saving's by Design and Sustainable Communities Program to design and build City facilities that are at least 20% more energy efficient than state standards. g, 1.2 Program Indicators Encourage condominium conversion developers to upgrade the energy efficiency of converted units by committing to complying with applicable Title 24 requirements and by further incorporate measures that go beyond Title 24 requirements by at least 10% or by reducing energy use for each unit Increase public awareness by assisting an average of 160 people per day (average of 40 people per day at each ECO Exhibit) access and participate in energy efficiency and conservation programs. Sponsor and coordinate at least four energy efficiency and conservation workshops for cities every year. The goal of the workshop series is to initiaily assist South Bay cities develop energy action plans to manage energy. Major program objectives for the ECO Program projects are as follows: City Energy Efficient Facilities Showcase Project: Reduce the City's energy use by 5% per year for a cumulative reduction of 15% by 2008 relative to 2005 energy use. ECO Exhibit Project: Increase public awareness by assisting an average of 160 people per day (average of 40 people per day at each ECO Exhibit) access and participate in energy efficiency and conservation programs. Energy Efficient Housing Project: Encourage condominium conversion developers to upgrade the energy efficiency of converted units by committing to complying with applicable Title 24 requirements and by further incorporate measures that go beyond Title 24 requirements by at least 10% or by reducing energy use for each unit by an average of 515 kW-hr and 15 therros per month. Participating developers will receive expedited plan review and permitting. At least 500 condominiums per year will be targeted for upgrades for a total of 1,500 energy efficient condominiums by 2008. Municipal Energy BMPs Education Project: Sponsor and coordinate at least four energy efficiency and conservation workshops for cities every year. The goal of the workshop series is to initially assist South Bay cities develop energy action plans to manage energy. By the fourth workshop. participating cities will have an Energy Action Plan to reduce their energy use. Workshops will be targeted to east county cities in year 2 and north county cities in year 3. 9. Program Objectives Major program objectives for the ECO Program projects are as follows: City Energy Efficient Facilities Showcase Project: Reduce the City's energy use by 5% per year for a cumulative reduction of 15% by 2008 relative to 2005 energy use. ECO Exhibit Project: Increase public awareness by assisting an average of 160 people per day (average of 40 people per day at each ECO Exhibit) access and participate in energy efficiency and conservation programs. Energy Efficient Housing Project: Encourage condominium conversion developers to upgrade the energy efficiency of converted units by committing to complying with applicable Title 24 requirements and by further 28 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERV ATlON OUTREACH PROGRAM AGREEMENT 4-69 incorporate measures that go beyond Title 24 requirements by at least 10% or by reducing energy use for each unit by an average of 515 kW-hr and 15 therms per month. Participating developers will receive expedited plan review and permitting. At least 500 condominiums per year will be targeted for upgrades for a total of 1,500 energy efficient condcminiums by 2008. Municipal Energy BMPs Education Project: Sponsor and coordinate at least four energy efficiency and conservation workshops for cities every year. The goal of the workshop series is to initially assist South Bay cities develop energy action plans to manage energy. By the fourth workshop, participating cities will have an Energy Action Plan to reduce their energy use. Workshops will be targeted to east county cities in year 2 and north county cities in year 3. 10. Program Implementation The ECO Program consists of four projects to overcome barriers to implementing and participating in energy efficiency and conservation programs. Each project aims to achieve energy efficiency and conservation through a combination of energy efficiency retrofit projects at City facilities, public education and outreach at high traffic community destinations, expedited plan review and permitting services for condominium conversion projects and best management practices workshops for County cities. The projects and implementation plans are described below: a) City Energy Efficient Facilities Showcase Project The goal of this element is to facilitate installation of energy efficiency measures and development of efficiency and conservation outreach best management practices (BMPs) for City facilities and employees by providing the City with funding to hire dedicated energy staff. Energy staff funded by the partnership will develop retrofit projects for City buildings and facilities. For existing facilities, energy staff will work with the San Diego Regional Energy Office's (SDRBO) to participate in SDG&E's Energy Savings Bid Program. SDRBO will assist the City to assess opportunities through audits and identify incentives, development of an implementation plan, access project incentives, develop a funding mechanism and coordinate project execution to achieve energy savings. For new facilities, energy staff will work with SDG&E's Saving's by Design and Sustainable Communities Program to design and build City facilities that are at least 20% more energy efficient than state standards. Energy staff will also work to develop, implement and train City personnel about energy BMPs to improve energy conservation practices by employees. The City's goal is to reduce baseline energy use at City facilities by at least 5% per year over the three-year period. The City's energy goals are captured in SDG&E's Energy Savings Bid Program. 29 2006-2008 CITY OF CHULA VISTA ENERGY EFFICmNCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 4-70 b) ECO Exhibit Project The goal of this element is to provide face-to-face energy efficiency and conservation outreach to low income, elderly and other hard-to-reach customers. This project will reach the target audience through mobile energy efficiency and conservation outreach exhibits (ECO Exhibits) staffed by trained personnel. The mobile ECO Exhibits will be located at City facilities and at regional centers such as shopping centers and malls throughout the Southbay and potentially countywide. Specifically, the mobile ECO Exhibits locations will include but are not limited to a local City hall, at libraries, recreational centers, police stations, local shopping centers and regional shopping malls. The ECO Exhibits will be used to engage the target audience to learn about energy efficiency and energy conservation. Trained personnel will demonstrate energy efficient technology available in the marketplace to residents, educate residents about low or n<H:ost energy conservation practices, assist residents access programs offered by energy conservation program providers such as SDG&E and SDREO, allow residents to conduct home energy audits via the internet and direct residents to EnergyStar product retailers. The ECO Exhibits will also coordinate with SDG&E's Hard-to-Reach Lighting Turn-in Program to market and provide a venue for hard to reach customers to exchange inefficient lights for more efficient lights. Lastly, the ECO Exhibits will serve as an outlet to recruit participants for SDREO's Shade Tree Program. c) Energy Efficient Housing Project: The goal of this element is to improve the energy efficiency of existing multi-family housing units that are proposed for conversion from apartments to condominiums by providing expedited plan review and permitting services. The City will reach condominium conversions developers by modifying plan review and permit applications to inform developers about the expedite process. d) Municipal Energy BMPs Education Project The goal oftrus element is to share lessons learned and BMPs with Southbay cities through a series of four workshops. In November 2000, the City adopted a C02 Reduction Plan to reduce the City's greenhouse gas emissions. The C02 Plan's goals are to reduce the City's reliance on fossil fuel and to improve the energy efficiency of City buildings and facilities. Since 1990, the City has retrofitted and constructed buildings and facilities that are more energy efficient than the State's conservation standards (Title 24). The City will use existing forums and outlets to reach Southbay cities. The City will use the C02 Plan as a model to encourage and assist other cities develop their own strategic plan to achieve energy efficiency at their facilities and to incorporate low or no cost energy conservation BMPs into how they do business. The project's goal is to enable Southbay cities to develop and adopt strategic policies to improve their energy efficiency and reduce their environmental impact. 11. Customer Description City facilities and staff, residents, condominium conversion developers, Southbay cities in San Diego County are eligible to participate in ECO Partnership programs. 12. Customer Interface 30 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 4-71 . City Energy Efficient Facilities Showcase Project: The Energy Atlm;niRl;rator will coordinate internally with city staff to develop and implement retrofit projects for City facilities. As described in the SDG&E's Energy Savings Bid Program, public agencies including the City of Chula Vista will receive the following energy efficiency project related services from the San Diego Regional Energy Office (SDREO) at no coat: o Energy audits o Technical assistance, and o Incentive documentation/procesaing . ECO Exhibit Project: The Energy Administrator will coordinate with SDREO, SDG&E, cities and the County to develop and place the mobile ECO Exhibits in high treffic locatiollB. The ECO Exhibits staff will serve to engage customers to participate in energy efficiency and conservation programs. ECO Exhibits customers will have an opportunity to learn about energy efficient technology, receive information about low-or- no cost energy conservation best management practices and receive direct assistance to access offerings from other program providers. . Energy Efficient Housing Project: The Energy Administrator will coordinate with SDG&E and the City's Planning and Building staff to streamline the City's plan review and permitting process application for condominium conversions projects. The Energy Administrator will also act as a liaison between the City's Planning and Building staff and developers to resolve any potential issues. . Municipal Energy BMPs Education Project: The Energy Administrator will work with SDREO and SDG&E to develop a series oHour workshops per year to assists cities develop individual strategic plans to manage their energy use and budget more effectively. The Energy Administrator will base the workshops on the City of Chula Vista's C02 Reduction Plan. The C02 Plan guides the City's effort to reduce reliance on fossil fuel, improve energy efficiency for buildings and vehicles and to reduce the City's overall impact on the environment. The workshops will be marketed to cities through existing working group technical committees such as San Diego County's Pollution Prevention Committee and SANDAG's Energy Working Group. 13. Energy Measures and Program Activities 13.1. Prescriptive Measures See SDG&E February I, 2006 Filing Workbook. 13.2. kWh Level Data- See SDG&E February 1,2006 Filing Workbook.- Savings are included in the Energy Savings Bid Program 13.3. Non-Energy Activlties- Audits, Education and Technical Assistance may be utilized 14. Subcontractor Activities None 15. Quality Assurance and Evaluation Activities Quality assurance for city facilities projects will consist of on-site inspections by SDREO through SDG&E's Energy Savings Bid Program. Quality assurance for condominiwn conversion projects will consist of on-site inspections by SDG&E's utility inspection department. 31 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 4-72 An evaluation plan will be developed in accordance with the soon to be developed EM&V Protocols. The CPUC Energy Division will be holding meetings, workshops and possibly hearings throughout the summer to develop these Protocols. SDG&E looks forward to participating and commenting on those activities and plans to file EM&V plans for aU programs on October 1.2005 in conjunction with the ED. CEC, and the other IOUs 16. Marketing Activities The City will work with. SDREO. SDG&E. City of San Diego and the County of San Diego to develop and distribute marketing material to promote the ECO Partnership Programs to target customers through new and existing distribution channels. These cbannels will include but are limited to the four mobile ECO Exhibits. governing board meetings. public access cable stations. partner websites. partner publications (Chula Vista Spotlight). employee newsletters and local community newspapers.. 17. CPUC Objective Tbe Energy ECO Partnership between SDG&E and the City of Chula Vista is a community wide effort that will enable the City. residents, developers and Southbay cities to implement sustainable energy efficiency and conservation measures. The program supports the CPUC objectives of minimizing lost opportunities and increasing the pursuit and implementation of cost-effective energy efficiency. 32 2006.2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 4-73 EXlllBIT B EM&V PLAN [TO BE ATTACHED WHEN ISSUED BY THE COMMISSION] 2006-2008 CITY OF CHULA VISTA ENERGY EFFICmNCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 4-74 EXHIBIT C REPORTING REQUIREMENTS 1. Reporting 1.1 City sball provide SDG&E with the requisite information, in accordance with Section 9.4 of the Agreement, on the prior month's activities, accomplishments and expenditures related to its respective Authorized Work obligations, for purposes of preparing the Monthly, Quarterly and Annual Reports. 1.2 SDG&E sball provide City in accordance with the provisions of Section 2S of the Agreement, or otherwise make available to City on SDG&E's website, a copy of the filed Monthly Report within five (5) Business Days after filing. 2. Monthly Report 2.1 Program Data - A spreadsheet table or tables listing which includes the following information: Program Costs (cost reported cumulative-la-date (also referred to as inception-la-date)) a. Program identification number as provided by the Program Administrator b. Program name C. Total cumulative program authorized budget as adopted by the Commission d. Total cumulative program operating budget which includes any mid-course budget modifications (e.g., fund shifts) e. Total cumulative program expenditures f. Total program expenditures for the report month g. Total cumulative commitments (limited to incentive commitments) Program Impacts (cost reported cumulative~to~date (also referred to as inception-to-date)) a. Total cumnlative net kW, kWh, and Therm savings projections b. Total cumulative achieved net kW, kWh and Therm savings c. Total achieved net kW, kWh and Therm savings for the repon month d. Total committed (limited to incentive commitments) net kW, kWh and Theon savings 2.2 Program ChangesINew Program Information If applicable, the following information should be reporred in the Monthly reporr: a. Identification of program with operating budgets reduced during the repan month b. Identification of program with operating budgets increased during the report mnnth c. Identification of program terminated during the report month 3. Quarterly Repnrt 3.1 Portfolio Benelit/Cost Metrics (Cumulative to Date) a. Total cost to billpayers (TRC, administrative cost and incremental oost per the Standard Practice Manual) b. Total savings to billpayers (TRC) c. Net benefits to billpayers (TRC) d. TRC Ratio e. PAC Ratio f. Cost per kWh saved (cents/kWh) (PAC) g. Cost per therm savings ($Itherm) (pAC) 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 4-75 3.2 Measure List -A spreadsheet table for each program or program elementl containing each measure installed, service rendered. or measure/service committed during the report month for which the Program Implementer intends to claim savings. The Program Implementer should include any new messures as part of the quarterly report. The list should display each measure as it is tracked and recorded by the implementer and should include the following parameters at a minimum: a. Name of Measure or Service Rendered b. Measure or Service Description c. DEER Measure 1D (where applicable) d. DEER Run ill (where applicable) e. Unit DefInition f. Unit gross kWh savings g. Unit gross Therms savings h. Unit gross k W demand reduction i. Incremental Measure Cost j. Net to Gross Ratio k. Effective Useful Life t Detailed end use classification (using classification scheme in section 6) m. Quantity Installed during report period n. Quantity Committed during report period o. Rebate amount paid p. Market Sector classification (using classification scheme in section 6) q. Market Segment classification (using classification scheme in section 6) 3.3 Expenditures for the program per cost reporting format below (Appendix to Attachment contains list of allowable costs) : a. Commission Authorized Budget b. Operating Bodget c. Total Expenditures i. Administrative Cost ii. MarketinglAdvertisinglOutresch Costs iii. Direct Implementation 3.4 GBI Report - Progress towards achieving goals of the Green Building Initiative, if applicable (Cumulative results) a. Estimate of expenditures on program activities that contribute towards GBl goals (including both public and non-public commercial participants) b. Net cumulative achieved kW, kWh and Therrn savings contributing towards GBl goals. c. Net achieved kW, kWh and Therrn savings contributing towards GBl goals for the quarter. d. A description of non-resource program activities that support the Green Building Initiative, including marketing and oUlreach activities. e. Estimate of square footage affected by program activities supporting the Green Building Initiative f. Items b, c and e above disaggregated by: i. 2-digit NAICS code ii. Aggregated end use classification (using classification scheme in section 5) 3.5 Program Narratives - For the program, a description of the program activities occuning during the quarter. a. Administrative activities b. Marketing activities 1 Identification of distinct programs and program elements may be determined by CPUC staff at a later time. 35 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT - 4-76 c. Direct Implementation activities d. City's assessment of program performance and program status (is the program on target, exceeding expectations, or falling short of expectations, etc.) e. For non-resource programs and program elements (programs or program elements that are not claiming direct energy impacts), a discussion of the status of program achievements. f. Discussion of changes in program empbasis (new program elements, less or more emphasis on a particular delivery strategy, program elements discontinued, measure discontinued, etc.) g. Discussion of near term plans for program over the coming months (e.g., marketing and outreach efforts that are expected to significantly increase program participation, etc.) h. Changes to staffing and staff responsibilities, if any i. Changes to contacts, if any j. Changes to subcontractors and subcontractor responsibilities, if any k. Number of customer complaints received 1. Program Theory and Logic Model if not already provided in the program's implementation plan, or if revisions have been made. 3,6 UtUlty Quarterly Reports - SDG&E shall provide City a copy of the flied Quarterly Report within two (2) Business Days after filing with the Commission in accordance with the provisions of the Agreement. 4. Annual Reports The format and content of the annual report is expected to be developed by the CPUC in fan 2006. The Program Implementer will be required to fulfUI these reporting obligations for their program. 5, Reporting Terminology Definitions Adopted Program Budget - The program budget as it is adopted by the Commission. Inclusive of costs (+/-) recovered from other sources. Operating Program Bndget - The program budget as it is defmed by the program administrators for internal program budgeting and management purposes. Inclusive of costs (+/-) recovered from other sources. Direct Implementation Expenditures - Costs associated with activities that are a direct interface with the customer or program participant or recipient (e.g., contractor receiving training). (Note: This is still an open issue, the items included in this definition may be changed by the CPUC pending discussion on the application of the State's Standard Practice Manual.; Report Month - The month for which a particular monthly report is providing data and information. For example, the report month for a report covering the month of July 2006, but prepared and delivered later than July 2006, would be July 2006_ Program Strategy - The method deployed by a program in order to obtain program participation. Program Element - A subsection of a program, or body of program activities within which a single program strategy is employed. (Example: A bndy of program activities employing both an upstream rebate approach and a direct install approach is not a single program eLement.) 6. Measure Classification Measure End-Use Classification Each energy efficiency measrne reported should be classified into one of the following end-use categories 36 2006.2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 4- 77 - Residential End Uses Detailed End Use Clothes Dryer Clothes Washer Consumer Electronics Cooking Dishwasher Other Appliance Building Shell Space Cooling Space Heating Interior Lighing Exterior Lighting Pool Pump Freezers Refrigeration Water Heating Other (U5<lr Entered Text String Description) Nonresidential End Uses Detailed End Use Building Shell Space Cooling Space Heating Ventilation Daylighting I nterior lighting Exterior Lighting Office Equipment Compressed Air Cooking Food Processing Motors Process Cooling Process Heat Process Steam Pumps Refrigeration Other (User EnlOOld Text String Descriptlon) Aggregated End UN Appliances Appliances Consumer Electronics Cooking Appliances Appliances Appliances HVAC HVAC HVAC Lighting lighting Pool Pump Refrigeration Refrigeration Water Heating Other Aggregated End Use HVAC HVAC HVAC HVAC Lighting Lighting Lighting Office Process Process Process Process Process Process Process Process Refrigeration Other Measure Market SectorlMarket Segment Classification Where reports require market sector or market segment classification, the following classification scheme should be used. Merket Sector Residentlal Single Family Multi Family Mobile Homes Merket Segment NA NA NA NA 37 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 4-78 Nonresidential Commercial Industrial Agricuttural Unknown NAICS CODE (greater than 2 digit not required) NAICS CODE (greater than 2 digit not required) NAICS CODE (greater than 2 digit not required) NAICS CODE (greater than 2 digit not required) NA 7. Allowable Costs Allowable Costs Table The cost items listed on the AllowabLe Costs sheet are the only costs that can be claimed for ratepayer-funded energy efficiency work. The costs reported should be only for costs actually expended. Any financial commitments are to be categorized as commitments. If the reporting entity does not have a cost as listed on the cost reporting sheet. then no cost is to be reported for that item. These Allowable Cost elements are to be used whenever costs are invoiced or reported to the program administrator. If there is a desire to include additional Allowable Cost elements, the program administrator should be contacted in order for the administrator to seek aooroval from the CPUC. 313012006 Cost Cateaarles Allowable Casts Administrative Cost Category Manaaerial end Clerical Labor IOU Labor - Clerical IOU Labor - Prnnram Desion IOU Labor - Proaram Develooment IOU Labor - Proaram Plannina IOU Labor - PrOOram/Prciiect Management IOU Labor - Staff Manaaement IOU Labor - Staff SUDervislon Subcontractor Labor. Clerical Subcontractor Labor- Proaram Desian Subcontractor Labor. Proaram Develooment Subcontractor Labor. Proaram Plannino Subcontractor Labor - Proaram/Project ManaQement Subcontractor Labor. Staff Manaoement Subcontractor Labor - Staff Supervision Human Resource SUDDort and Development IOU Labor - Human Resources IOU Labor - Staff Develooment and Training IOU Benefits. Administrative Labor IOU Benefits - Direct IriiDiementatlon Labor IOU Benefits - MarketinalAdvertisinalOutreach Labor IOU Pavroll Tax - Administrative Labor IOU Payroll Tax - Administrative Labor IOU Payroll Tax - Administrative Labor IOU Pension. Administrative labor IOU Pension - Direct Implementation labor IOU Pension - MarketiriCi7Advertlsino/Outreach labor Subcontractor labor- Human Resources Subcontractor Labor - Staff Development and Trainina Subcontractor Benefits - Administrative Labor Subcontractor Benefits - Direct Implementation Labor Subcontractor Benefits - MarketinalAdvertisina/Outreach Labor Subcontractor Pavroll Tax - Administrative Labor Subcontractor Payroll Tax - Direct Implementation labor 38 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT ~.t-7 9 Allowable Costs Table Tbe cost items listed on the Allowable Costs sheet are the only costs that can be claimed for ratepayer-funded energy efficiency work. The costs reported shoold be only for costs actually expended. Any financial commitments are CD be categorized as commitments. If the reporting entity does net have a cost as listed on the cost reporting sheet, then no cost is to be reported for that item. These Allowable Cost elements are to be used whenever costs are invoiced or reported to the program adminiatrator. If there is a desire CD include additional Allowable Cost elements, the program administraCDr shoold be contacted in order for the adntiniatrator to seek aDllIoval from the CPUC. 3130(2006 eost Catellories Allowable Coats Subcontractor Payroll Tax. Markelino/Advertisino/Outreach Labor Subcontractor Pension - Administrative Labor Subcontractor Pension. Direct Implementation Labor Subcontractor Pension - Marketing/AdvertisinalOutreach Labor Travel snd Conference Fees IOU Conference Fees IOU Labor. Conference Attendance IOU Travel - Airfare IOU Travel. Lodoino IOU Travel - Meals IOU Travel - Mileaae IOU Travel - Parkino IOU Travel - Per Diem for Misc. Expenses Subcontractor. Conference Fees Subcontractor Labor. Conference Attendance Subcontractor. Travel - Airfare Subcontractor. Travel. Lodgina Subcontractor - Travel - Meals Subcontractor - Travel - Mileaoe Subcontractor - Travel. Parklno Subcontractor. Travel - Per Diem for Misc. Exoenses Overhead IGeneral and Administrative) - Labor and Materials IOU EQuioment Communications IOU Equipment Computino IOU EQuipment Document Reproduction IOU Eouipment General Office IOU EQuiDment TransDortation IOU Food Service IOU Office Supplies IOU Postaoe IOU Labor. Accountina Suoaort IOU Laber - Accounts Pavable IOU Labar - Accounts Receivable IOU labor - Administrative IOU labor - Facilities Maintenance IOU Labor - Materials Manaoement IOU Labor - Procurement IOU Labor. Shoo Servioes IOU labor - Transportation Services IOU Labor - Automated Systems IOU Labor. Communications IOU Labor. Information Technoloav IOU Labor - Telecommunications 39 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 4-80 Allowable Costs Table The cost items listed on the Allowable Costs sheet are the only costs that can be claimed for ratepayer-funded energy efficiency work. The costs reported should be only for costs actually expended. Any financial commitments are to be categorized as commitments. If the reporting entity does not have a cost as listed on the cost reporting sheet, then no cost is to be reported for that item. These Allowable Cost elements are to be used whenever costs are invoiced or reported to the program administrator. If there is a desire to include additional Allowable Cost elements, the program administrator should be contacted in order for the administrator to seek a=roval from the CPUc. 3/3012006 Cost Cateaories Allowable Costs Subcontractor Eauioment Communications Subcontractor Eauioment Comoutina Subcontractor Eauioment Document Reoroduction Subcontractor Eauioment General Office Subcontractor Eouioment Transoortation Subcontractor Food Service Subcontractor Office Supolies Subcontractor Postane Subcontractor Labor - AccountinQ Support Subcontractor Labor - Accounts Payable Subcontractor Labor. Accounts Receivable Subcontractor Labor - Facilities Maintenance Subcontractor Labor - Materials Management Subcontractor Labor. Procurement Subcontractor Labor - Shoo Services Subcontractor Labor - Administrative Subcontractor Labor - Transoortation Services Subcontractor Labor - Automated Systems Subcontractor Labor. Communications Subcontractor Labor - Information TechnoloGv Subcontractor Labor - Telecommunications Marketln!llAdvertlsinalOutreach Cost Cateaorv IOU - Advertisements I Media Promotions IOU - Bill Inserts IOU - Brochures IOU - Door HaMers IOU - Print Advertisements IOU - Radio Soots IOU - Television Soots IOU. Webstte Deveiooment IOU Labor. Marketlno IOU Labor - Media Production IOU Labor - Business Outreach IOU Labor. Customer Outreach IOU Labor - Customer Relations Subcontractor - Bill Inserts Subcontractor - Brochures Subcontractor - Door Hanoers Subcontractor. Print Advertisements Subcontractor - Radio Soots Subcontractor - Television Soots Subcontractor - Website Development Subcontractor Labor - Marketing 40 2006.2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT -4-81 Allowable Costs Table The cost items listed on the Allowable Costs sheet are the only costs that can be claimed for ratepayer-funded energy efficiency work, The costs reported should be only for costs actnally expended. Any financial commitments are to be categorized as commitments, If the reporting entity does not bave a cost as listed on the cost reporting sbeet, then no cost is to be reported for that item.. These Allowable Cost elements are to be used whenever costs are invoiced or reported to the program administrator. If there is a desire to include additional Allowable Cost elements, the program administrator sbould be contacted in order for the administrator to seek ao...oval from the CPUC. 313012006 Cost Cateaortes Allowable Costs Subcontractor Labor - Media Production Subcontractor Labor - Business Outreach Subcontractor Labor. Customer Outreach Subcontractor Labor - Customer Relations Direct ImDlementation Cost Cateaorv Financial Incentives to Customers Activity. Direct Labor IOU laber . Curriculum Davelooment IOU labor. Customer Education and Trainino IOU Labor. Customer Eauioment Testing and Diagnostics IOU Laber - Facilities Audits Subcontractor Labor - Facilities Audfis Subcontractor Labor - Curriculum Develooment Subcontractor Labor. Customer Education and Training Subcontractor Labor - Customer Equipment Testing and Diagnostics Installation and Service. Labor IOU Labor - Customer Equioment Reoair and Servicina IOU Labor. Measure Instailation Subcontractor Labor - Customer Eauloment Reoair and Servicina Subcontractor Labor - Customer Eauipment Reoair and Servicina Dlrecllmnlementallon Hardware and Materials IOU Audfi Annlicatians and Forms IOU Direct Imolementation Literature IOU Education Materials IOU Enerav Measurement Tools IOU Instailatlon Hardware Subcontractor. Direct 1m Diem entation Literature Subcontractor - Education Materials Subcontractor - Enerav Measurement Tools Subcontractor. Installation Hardware Subcontractor .Audfi Aoollcations and Forms Rebate Processln" and Insoectlon . Labor and Materials IOU Labor - Field Verification IOU Labor - Site Insoections IOU Labor - Rebate Prooessino IOU Rebale Aoolicalions Subcontractor Labor - Field Verification Subcontractor Labar - Rebate Processin!! Subcontractor. Rebate Aoolications 41 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 4-82 EXmBIT D :MILESTONE SCHEDULE City shall achieve, during each Program year, the following targets by December 31 of such Program year: Municipal Energy BMP Education Project · Recruit & Hire intemsfTemporary Expert Professionals . Identify Interested Local Government Peer Sectors . Contact & Survey Local Governments · Develop Potential Workshop-Outreach Activity Schedule-Peer Input · Conduct Targeted Workshop-Activities - that Foster Local Energy Plans . Conduct Remaining Workshops-Activities . Evaluate · Identify Targets for Future Productive Outreach Activities . Monitor Status, Record Quarterly Report and Evaluation Data ECO Exhibit Project · Recruit & Hire InternsfTemporary Expert Professionals . Create Exhibit Plan & Seek Approval from all Parties · Order Exhibit Displays and Graphics · Establish Distribution Strategy & Schedule · Distribute Exhibits and Implement Schedules- · Ongoing Support & Maintenance of Exhibits · Implement Resident Outreach Projects to Supplement Exhibits · Monitor Status, Record Quarterly Report and Evaluation Data Energy Efficient Housing SmaIl Business and Mixed Use Project . Recruit & Hire internsfTemporary Expert Professional . Establish Program Incenti ves · Apply Incentives to Existing City Programs · Coordinate, Communicate with Development Staff for Future Eligible Project . Implement Projects Adequate to Meet Kilowatt & Therm Reduction Objectives, · Monitor Status, Record Quarterly Report and Evaluation Data City Energy Efficient Facilities Showcase Project . Recruit & Hire Staff 42 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 4~83 -- · Identify and Prioritize Facilitiesffechnologies/Services and Policies with Greatest Potential to Meet or Exceed Targeted Energy Reduction Goals · Develop Contract/Service Agreements · Implement Project Priorities · Monitor Status, Record Quarterly Report and Evaluation Data 43 2006.2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 4-84 CITY COUNCIL AGENDA STATEMENT ,\\{" .:s>.- ~ (lIT OF - CHULA VISTA 7/15/08, Item~ ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING CHANGE ORDERS ASSOCIATED WITH CFD on FOR BROOKFIELD SHEA OTAY LLC FOR THE CONSTRUCTION OF EASTLAKE P ARKW A Y AND HUNTE PARKWAY SERVING OTAYRAy;jIi VILLAGE 11 PHASE 3 DIRECTOR OF ENGINEERING~ CITY MANAGER S T f, r V~ ASSISTANT CITY MANAGER "7::J 4/5THS VOTE: YES D NO [g] SUBMITTED BY: REVIEWED BY: SUMMARY Brookfield Shea Otay has submitted a payment request for reimbursement from Community Facilities District on bond proceeds for the construction of Eastlake Parkway and Hunte Parkway serving Otay Ranch Village II, Phase 3. Change orders above $50,000 require Council approval. Tonight, Council will consider approving $388,215.18 in change orders for the construction of Eastlake Parkway and Hunte Parkway serving Otay Ranch Village II. Approved change orders will be paid from CFD 071 bond proceeds. JENVIRONMENTAL 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 is not a "Project" as defined under Section 15378(b)(2) of the State CEQA Guidelines 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. JRECOMMENDATION Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION On November 11, 2003, the City Council formed COlllillunity Facilities District No. 071 for the purpose of providing for the financing and acquisition of certain authorized public facilities associated with Otay Ranch Village II, Windingwalk (Attachment I). On April 20, 2004, per Resolution No. 2004-113, the City Council approved the issuance of bonds and the 5-1 7/15/08, Item c:; Page 2 of 4 AcquisitionlFinancing Agreement (AFA) for CFD No. 071 that established the procedure for acquiring authorized public facilities from Brookfield Shea Otay LLC (BSO). BSO publicly bid and constructed these public facilities. Once construction is complete, the developer requests reimbursement and submits invoices for eligible costs incurred during construction to the City for review. Approved costs are then paid from bond proceeds and the City acquires the facility. Therefore, the City's General Fund does not finance the construction of the eligible facilities. The AFA establishes the procedures for the reimbursement of Change Orders. Change orders are costs not originally included in the original bid but were necessary to complete the facility. Staff brings all change orders above a cumulative $50,000 to City Council for their consideration prior to authorizing reimbursement to the developer. On May 23, 2007, Brookfield Shea Otay submitted a request for reimbursement for the construction of Eastlake Parkway and Hunte Parkway. The request included additional improvements and associated soft costs. Eastlake Parkwav The change orders for the construction of Eastlake Parkway totaled $490,929.21. With the associated soft costs of $55,229.54, the total cost of the change orders for Eastlake Parkway amounts to $546,158.75, as shown below in Table 1. The audit determined that the amount of $347,937.06 was previously paid to BSO. The remaining balance of $198,221.69 will be paid if Council approves tonight's action. $175,660.12 of the $198,221.69 is TDIF Eligible (See Table 1 below). Table 1 Eastlake Parkway Uses Sources Audited eligible Change Orders for Eastlake Parkway $490,929.21 Soft costs for Chan.ge Orders $55,229.54 Total to be aDoroved by Council with tonioht's action $546,158.75 Previously paid to BSO to date ($347 .937 .06) To be paid from CFD (TDIF sub account) $175,660.1" To be paid from CFD (Non-TDIF sub account, subiect to available funds) $22561.57 Net Payment Amount $198,221.69 $198,221.6' The current TDIF program dated January 5, 2005, identifies this portion of Eastlake Parkway as Facility 46 (See Attachment 2). The TDIF estimate for facility 46, Eastlake Parkway from Birch Road to Hunte Parkway, was $8,728,976.00. The actual costs of this portion of Eastlake Parkway amount to $2,398,832.07. With the addition of the change order amount of $546,158.75, the total actual cost for the facility is $2,944,990.82 (see Table 2 below). Grading costs, which were accounted for in the TDIF estimate, were deemed ineligible for CFD reimbursement because of improper bidding after formation of the district. 5-2 7/15/08, Item c:; Page 3 of 4 Table 2 TDIF Reconciliation for Eastlake Parkway Actual costs $2,398,832.07 Change Order total $546,158.75 Total actual costs $2,944,990.82 TD IF estimate $8,728,976.00 Hunte Parkway The change orders for the construction of Hunte Parkway total $623,827.86. With the associated soft costs of $77,433.42, the total cost of the change orders for Hunte Parkway amounts to $701,261.28, as shown below in Table 3. The audit determined that the amount of $457,752.38 was previously paid to BSO. The remaining balance of $243,508.90 will be paid to BSO if Council approves tonight's action. $212,555.06 of the $243,508.90 is TDIF eligible (see Table 3 below). Table 3 Hunte Parkway Uses Sources Audited eIiaible Chanoe Orders for Hunte Parkwav $623,827.86 Soft costs for Chanoe Orders $77,433.42 Total to be approved by Council with tonight's action $701,261.28 Previously paid to BSO to date ($457.752.38 To be paid from CFD (TDIF sub account) $212,555.0E To be paid from CFD (Non- TDIF sub account, subiect to available fimds) ~30 953.8 iNet Payment Amount $243,508.90 $243,508.9( Hunte Parkway is identified as Facility 48 in the TDIF Program (See Attachment 3). The TDIF estimate for facility 48, Hunte Parkway from Olympic Parkway to Eastlake Parkway, was $16,359,525.00. The actual costs for Hunte Parkway amount to $9,913,030.60. With the addition of the change order amount of $701,261.28, the total actual cost for the facility is $10,614,291.88 (see Table 4 below). Grading costs, which were accounted for in the TDIF estimate, were deemed ineligible for CFD reimbursement because of improper bidding after formation ofthe district. Table <I TDIF Reconciliation for Hunte Parkway Actual costs $9,913,030.60 Change Order Total $701,261.28 Total Actual Costs $10,614,291.88 TDIF Estimate $16,359,525.00 The resolution on tonight's agenda, which, if adopted, will accomplish the following: . Approve the change orders for the construction of Eastlake Parkway and Hunte Parkway . Award to BSO the following amount listed in Table 5. 5-3 7/15/08, Item 5 Page 4 of 4 Table 5 Eastlake Parkway Remaining to be paid $198,221.69 Hunte Parkway Remaining to be naid $243,508.90 Total $441,730.59 Staff has reviewed the proposed change orders for eligibility and recommends approval. The changes are approximately 10 percent of the job, which is within normal contingency amounts for similar-type projects. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the property, which is the subject of this action. FISCAL IMPACT There will be no direct fiscal impact to the City. Costs associated with this processing will be borne by the developer. ATTACHMENTS Attachment 1. List of Eligible facilities for CFD 07I Attachment 2. TDIF Estimate for Eastlake Parkway (Facility 46) Attachment 3. TDIF Estimate for Hunte Parkway (Facility 48) Attachment 4. Map of Eastlake Parkway and Hunte Parkway Exhibit A. Change order breakdown for the Eastlake Parkway and Hunte Parkway Prepared by: Chester Bautista, Associate Civil Engineer, Engineering Department M:\Engineer\AGENDA\CAS2008\07-15-08\CAS Change Orders Rev 4.doc 5-4 Attachment 1 Exhibit "All A.cllllisirion and Financine A2"l'"~emcnt For CfD O"q IOTA Y Ra.NCH V!LLAGE ELEVEN) [mprnvemelu Description and Estimated COSts hnprlt",..m",nt Improvement Descroption , CO$IE.$tim.llt<l1 ~.. -".c 1 Triil'fic Ennancemem $1,200,000 2 Public Facilities to be fmanced CI'f Jevelopment Impact Fee 141 $.9 577,392 3 Hunte Parkwa\', Street 1m rovements Olvm ic Parkway 10 Eveninc Star Street .TDIF EJiaible $UI99,JSS . Munte Parkway, Street Impl'O\'ements IOlvm ie Parkway to Eveninc Slar Street - Non- TOlf Elioible $164,347 5 Hunte Parkwa . LandsC20 & Irr ation, 101 m Ie Parkwa to Evenin Star Street - TOIF Eli ible $288,965 6 Hunte Parkwa . Street 1m ro....emenls Evenin Star Street to SDGE/ColJn Water Aulho Easement) - TDIF Eli ible $2,521,148 7 Hunte Parkway. Street ImprovementS (EveninQ Star Street te SDGElCoun Water Authori Easemel1t .. Non- TDIF Eli iDle $28.8,285 8 Hunte ParKwa ,landsca e & 1m tion Evenin Star Street to SDGElCoun WaterAuth Easement . TDIF Eli ible $224,453 5 Hunte Paritwa , Street 1m rovements SDGElCoun Water Autho Easement to EastLaKe parkvi.iVf - TOIF Eliaible. $4,453,7'3 ,. Hunte Par\(wa , Street 1m rovements SDGEiCoun Water Al.itho Easement to EastLake Parkwa . Non- TDIF Eli ible $357,939 11 Hunte Parkwa . Landsca & 1m ation SDGE/Cown Water Auttlort Easement to EastLake Parir.wa - TDIF Ell ible $828,667 12 EastLake Parkway. Street Imorovements 'Olvmoic Parkway tel Kestral FaUs Road) - TDiF EllQible $1 022,385 13 EastLake Parkwav, Streetlmcrovements iOlvmnic Parkway tel Kestral Falls Road)- Non-TDIF Elinible $91509 14 EastLake Par1c:wa , Landsca & 1m atlon 01 m ic Parkwa to KestraJ Falls Road) - TDiF er ible $219,843 15 EastLake Par1twa . Street Improvements Kestral Falls Road to Plannin Area MU_1. R-19 Bounda -TDIF Eli ible $1 6M;SB8 18 EastLake Pari<;wa . Street 1m rovements Kestral Falls. Road to Plannin Area MU-1. R-19 Bounda - Non- TDIF Eli ible $268,590 17 EastLake Parkwa ,Landsca e & IITi atlOn Kestral Fa~$ Road to Planni Area MU-1, R-19 Bounda - TDIF Eli ible $295,644 18 Eastlake Parkway, Street Improvements fPlannina Area MU-1. R-19 Boundarv to Hunte ?arlcwa - TD1F Eli ible $3,426 070 19 EastLake ParKwa , Street 1m rovements Plannin Area MU-1, R-19 BOUMa to Hume Parkwa - Non- TDIF Eli ible $287,830 2. Eastlake Parkway, Landscape & Irriaation (Plannina Area MU-1, R-19 Bounda'" ta Hunte Parkwa"\ - TDIF EJinible $392217 21 Olav Lakes Road Widenina . TDIF Elioible $5,592000 22 OIYmoic Parkwav lEastLake Parkway to Hunte Parkwavl - Non- TDIF Eliaible $450,000 23 Kestrei Falls Street, Street Improvements (Eastlake Parkway to Ex loration) - Non- TOIF Eli ible $604,284 2' Kestrel Fals Street. Landscape & Imaation, (EastLake Parj(:wsv to Exoklration) - Non-TOIF EliQible $88 071 25 Expioration Falls Drive, Street Imnrovements, (Olvmoic Parkway to Hunte Parkway ~ Non-TDIF Eli ible $1,483,242 26 Ex lor"tion Falls Drive. Landscape: & 1m atien, 01 m ic Parkwa to Hunte ParKwa - Nan- TDIF Eligible $216,173 27 Ex loration Falls Drive, Street 1m rovements, 'Mndin walk Street to Hunte Parkway) - Non-TOlF Elioible $603,342 28 Ex ioration Falls Drive. Landscape & Irriaaticn, (Windinowal" Street to Hunte ParkwaY) . Non-TOIF Eliaible $se S59 25 Windin walk Streel Street Improvements, 01 mpic Parkway to Exoloration Falls Drivel - Non-TDJF Eliaible $1,565,645 3. Windln walk Street. Landsca 8. Irri ation, (01 m Ie Parkwa \0 Exoloration Falls Drive) _ Non- TDIF Elioible $228,183 31 Windin walk Street, Street 1m rovements (Exploration Falls Drive to Discovery Falls Olive) - Non-TDIF Eligible $460000 32 Windingwalk Street, Landscape 8. Irrigation, (Exploration Falls Drive to Discovery FaUs Drive - Non-TDIF Eli ible $39,921 " Evenin Star Street. Street Improvements, (Hunte Parkway to WindingwaJk Street) - Non-TD1F Eiirlible $1,2{)S,S68 3. Evenin Star Streel, Landsca e & lrli atian. (Hunte Parkwa to Windingwalk Street). Non- TDlf Eligible $176,141 35 Hidden Path Drive. Street Improvements (Evening Star to Crossroads Street) - Non-TOIF Eliaible $384,S44 3. Hidden Palh Drive, Landscape & Irriaalion, (EveninQ Star to Crossroads) - Nor'!- TOIF Elioible $56045 37 Hidden Path Drive, Street Improvements, (Crossroads \0 Hunte Parkwa ) - Non-TDIF Eli ible $368000 38 Hidden Path Orille, Landsca"e !. Irrigation, (Crossroads to Hunte Parkwav) - Non- TDIF Eliaible $31,937 39 Discove Fails Drive. Street 1m rovements, (Ex loration Falls Drive to south of MU.1 - Non-TDIF Eligible $552,000 '0 Discove Falls Drive, Landsca & Irri ation, (E" loration falls Drive to south of MU~1) - Non-TDIF Elioible $47906 ., Discovery Falls Drive, Street Improvements, (South of MU-' 10 Hunte Parkwav). Non-TDIF Elioible $656,578 .2 Discovery Fails Drive. Landscape & Irriqation, South of MU.1 to Hunte Parkwa - Non-TDIF Elinible $S5,12S ., Birch Road. Street lm rovements, EastLake Parkw.o to Discolle Falls Dri~ ~ Non-TDIF Eligible $257,600 44 Bin:t\ Road, Lal1dsca e & lrri ation, (EastLake Parkwa to Discovery FOllis Drive - Non-TDIF Er ible S22356 45 Crossroads Street, Street Improvements. (Hidden Path Drive~hrougll SDGE easement - Non-TOIF Eligible $386,400 .. Crossroads Street, Landscape & Irripation. (Hidden Path Drive through SDGE easement) - Non- TDiF Eligible $33533 4' Crossroads Street. Street Improvements, (SDGE Easement to Discove Falls Drive) - Non-TDIF 8igible i115344a 4S Crossroads Street, landsca e & Irri ation, SDGE Easement to Discove Falls Driye) - Non-TDIF Elioible $96,849 .. CFD Slo e Planting & Irri .ation (See Footnote 5) - Non-TDIF Elioible $1119869 5. CFD Slope Planting & Irrigation, See Footnote 6) - Non- TDIF Eligible $871650 51 CFD Slope P~nting & Irrigation, See Footnote 7) - Nan- TDIF Eligible $1006,760 " Perimeter Sound Walls, See Footr.ote 5 - Non~TDIF Eii jble $705,034 53 Perimeter Sound Walls, See Footnote 6). Non-TD1F Eli ible $379950 54 Perimeter Sound Wans, (See Footnote 7' ~ Non-TOIF Elioible $250,320 55 Traffic Counters - TDIF EliQible $60,000 TOTAL $49,815,643 ~ The des<:ription ofth~ Impro~ernenL~ 5et forth In this E~hibit "A" is preliminary arid B~n~ral Th~ fmal plans and specifitatiolls may ~Ilow substilutes 01 modif,:olion, 10 the proposed ImprovemenLS Bnd proposed Irnprovet.'\~"ls ma)' b~ added or deleled Mll. the tOI'~eRl of Developer l!nd lhe City EIlgifiCer C"mpom:ni. of all Wc=1 .mprovemo:nls eligible for runcj,ng ,hall ;ndude (i) grading. (ii) wet and dry utiliries within tbe righI-or-way. Iii;) ,Iorm dlOin rocililie5. (iv) pavin!\- (v) eu,b, ~Ul1er. ,idewalk. median>. (vi) trallie SIgnals, (vii) ligh,ing. (vi,;) and all olner a"purtennnt ImplOvemenu Cost es,imale, arc: prelim;mrr}' "od IDlIY be mcdified from time 10 l;"'" with lne cun.em orDe~elo,,,,,,, and the City Engineer. The Purchase Price of an Improvement sllnUbebosedonaclUalc<lm J/ Ccst estimale for Tralflt Enhoncement constllutes t~ initiol amOunt 10 ~ reserved OUI oflhe plO<:eeds tlf the Bonds The amounl reserved rnay be reduted a. sel fonll in Seelion S or\h~ Acquisition Ftrr.lnci"!l Agre:::ment AI De""lopds election, additioMI proceeds of Ille Bonds may ~ disbursed for Traffic Enilancerrn:m Irnp,,;wemenls .1; rFDIF Facihties maybe financed upon Ihe reque!! of the Developer only ir.nd to the e><lent:h~ Direclor of Finante detennines Ihalthe amDum disbu"",d is realonabl)'expected 10 be e><pended by the Cily w'lhin :!'tree (3))'<:;1rsfollow;nl! chei~suaneeDfti1e applielOble series of Bond, ~/ Adja.::ent 10 EutLa~e Parkway (Kcstrel Fal!.s Road to Olympic Parkway). Olympic Parkway (EastL.ke Parkwoy to Hunte Parkway), and Hunte Parkway (Olympic parb>iay to E~eninB S:.r SIree!) 6/ A.!jot<;ent 10 EastLake ParXway (Kroslrel Fall.': Road 10 Somh ofMU-ll. and Hunle Parkway (E'I"ning Sw Street West o( SDGE) 71 AdjaceOl to EaslLake Parkw:ty (5 of MU-I to Hunte Parkway). and Hunle Parkway (W of SDGE 10 EastLake Parkway) S('lur~'" nevok.aer McGill .:>'h"," s..rr lnc 5-5 Attachment 2 ITEM DESCRIPTION ~ "' 1/NlTS " '-QT!L U/lIIT COST - --:TOTAL ITE1fIITOTAL East/ake Pkwy Birch Rd to Hunte/Rock Mountain Rd New 6 Lane Prime Arterial Length (Lf): 4,714 1 Earthwork 2 Drainage Items 3 Surface Improvements 4 0 ry Utilities 5 Landscape & Irrigation 6 Misc. Construction Logistics 7 Special Items Habitat mitigation Linear ft Linear ft Linearft Linear ft Linear ft Linear ft 4714 $ 4714 $ 4714 $ 4714 $ 4714 $ 4714 $ 250.00 $ 130.00 $ 425.00 $ 60.00 $ 250.00 $ 10.00 $ $ Acres 13.9 $70,000 TOTAL HARD COSTS SOFT COSTS Contingency (15% of total hard costs including right-aI-way) Civil Engineering (7.5% 01 hard costs, excludes right-ol-way) Soiis Engineering (15% 01 earthwork costs) Landscape Architecture (10% of landscaping costs) Surveying (2% of hard costs, excludes right-of-way) Utility Engineering/Coordination (3% of dry utilities costs) Inspection/Administration (6% 01 total hard costs including right-aI-way) Developer Administration (1.75% 01 total hard costs including right-at-way) City Project Administration (2% 01 total hard costs including right-ol"way) TOTAL SOFT COSTS TOTAL PROJECT COST 5-6 FACILITY 46 1,178,500 612,820 2,003,450 282,840 1,178,500 47,140 973,000 $ 973,000 $ 6,276,250 $ 941,438 $ 470,719 $ 176,775 $ 117,850 $ 125,525 $ 8,485 $ 376,575 $ 109,834 $ 125,525 $ 2,452,726 $ 8,728,976 . Attachment 3 FACILITY 48 Hunte Pkwy Olympic Pkwy to Eastlake Pkwy New 6 Lane Prime Arterial Length (Lf): 8,380 lTEM DESCBJPIION UNITS _ aTl': UNIT COST TOTAl.:, - 1TElIIfTOTAL ,_ 1 Earthwork 2 Drainage Items 3 Suriace Improvements 4 Dry Utilities 5 Landscape & Irrigation 6 Misc. Construction Logistics 7 Pipeline Encasement 8 Special Items Habitat mitigation Linear It 8380 $ 250.00 $ 2,095,000 Linear It 8380 $ 130.00 $ 1,089,400 Linear tt 8380 $ 425.00 $ 3,561,500 Linear It 8380 $ 60.00 $ 502,800 Linear tt 8380 $ 250.00 $ 2,095,000 Linear It 8380 $ 10.00 $ 83,800 Lump Sum $ 600,000.00 $ 600,000 $ 1,757,000 Acres 25.1 $70,000 $ 1,757,000 TOTAL HARD COSTS $ 11,784,500 SOFT COSTS Contingency (15% of total hard costs including right-of-way) Civil Engineering (7.5% of hard costs, excludes right-of-way) Soils Engineering (15% of earthwork costs) Landscape Architecture (10% of landscaping costs) Surveying (2% of hard costs, excludes right-of-way) Utility Engineering/Coordination (3% of dry utilities costs) Inspection/Administration (6% of total hard costs including right-of-way) Developer Administration (1.75% of total hard costs including right-of-way) City Project Administration (2% of totai hard costs including right-of-way) $ 1,767,675 $ 883,838 $ 314,250 $ 209,500 $ 235,690 $ 15,084 $ 707,070 $ 206,229 $ 235,690 $ 4,575,025 $ 16,359,525 TOTAL SOFT COSTS PROJECT COST . 5-7 Attachment 4 :'--1'~ ~Jlli 1.-\ --- ~ \ '.'"'( - ,.\'A.. -..........,/ )<""....._."'"7" --'y / ".;........;' ~/ / (< - ~ / ) '/' , --........,.-..... ~~--r~\ \ _____ r-r---+-....... 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( 5 8 Exhibit A lEastiake Parkway Phase 3 (CFD 07-1 Brookfield Shea Village 11) Change Order Summary American Concrete Original Contract $ 168,314.70 - Total Change Order CO# Description Amount Approved Amount 57411 Replace damaged 3523 terminater on Eastlake Parkway damaged by American Concrete $ (3,54568) $ - 57795 Remove and pour on Eastlake Parkway $ 5,003.98 $ - 57795 Pour curb on Crossroad & Discoverv $ 4,883.19 $ - 57795 Change in Design by Shea $ 5,123.96 $ 5,12396 57795 Form and strip the lumbia, stop because of retaining wall for R-18 $ 100.00 $ - 57795 Remove the forms on Eastlake Parkway on McMillin Job $ 400.00 $ - Sawcut, break & remove concrete at various locations on Eastlake Parkway, Hunte Parkway & Crossroads. 57795 Hault convrete to dump $ 3,143.00 $ - 57796 H' curb & gutter 49 If @ $11. 75/lf $ 575.75 $ 575.75 57796 Mediem Beckon by Hazard $ 6,204.25 $ 6,20425 57796 MU-1 Site Extras for Shea $ 17,47846 $ - ~i':796 MU-1 Return Extras $ 4,358.66 $ - 517796 Set forms on 2 ramp $ 1,520.00 $ 1,520.00 57796 Credit for EWO#11536 $ 1760.00) $ (760.00) 57796 Sawcut, break & remove concrete at median on Eastlake Parkway. Haul concrete to dump $ 1,326.00 $ 1,326.00 57796 Sawcut, break & remove concrete at Eastlake & Kestral Falls. One median piece & two curbs & gutter pieces $ 393.00 $ 393.00 58254 Sawcut single side walls panel vacum control. R & R single sidewalk panel with skid steer $ 591.00 $ - Sawcut, breal( & remove concrete for turn pocket & drive entrance @ several locations haul concrete to 58254 stockpile $ 3,840.00 $ 3,84000 58254 Break and remove sidewalk on Eastlake Parkway haul concrete from stockpile to dump $ 4,740.00 $ 4,740.00 58254 Haul concrete from stockpile to dump $ 1,072.50 $ 1,072.50 Total Change Orders American Concrete $ 56,448.07 $ 24,035.46 Hazard Construction Companv Original Contract $ 997,20958 Total Change Order CO# Description Amount Approved Amount , 60235 Grind AC $ 1,284.00 $ 1,284.00 I Add for signs posts per the attached invoice from Luziach 11s @ $2400/ls (Contract quantity short for actual 59853 requirement) $ 2,640.00 $ 2,640.00 I 57797 Backcharge $ (7,530.25) $ - 57691 Trench patching, slot patching, 3 man holes various locations $ 5,71830 $ 5,71830 Finish cab on crossroads (phase 3 to phase 2) compact. Also cut parkway (-2) @ Crossroads & Eastlake 57464 Parkway +1 @ Hunte @ Eastlake Parkway $ 2,020.22 $ - I 57464 Trench patching various locations MU-1 site entrace/moving water blow off/new J.T. stub for McMillin project $ 10,912.90 $ - 57464 Trench patching various locations MU-1 site entrace/moving water blow off/new J.T. stub for McMillin project $ 2,853.61 $ - , Haul excess dirt from Hunte & Eastlake Parkway (stockpiled @ intersection) to pad north of Brookfield job i 57328 trailer off Windingwalk $ 7,274.93 $ 7,274.93 Hault last of dirt from Eastlake @ Hunte Parkway to Pad site next to job trailer and excess dirt @ new 57328 entryways into MU-1/R-19 88 Lot $ 4,889.83 $ 4,889.83 57328 Cut out entry way & x-gutter into R-19/MV-1 stockpile dirt @ edge of entry ways/ w/avl off later $ 2,132.00 $ - Dig out wet areas in front of inlet boxes @ interesection of Hunte & Eastlake Parkway also east south corner 57328 of intersection $ 5,182.11 $ 5,18211 57328 Fill digout in x-guttter w/fabric & CAB, also place CAB for x-gutter, hub & compact and finish $ 5,253.09 $ - Remove excess dirt from Eastlake Parkway & hault to R-19 (existing AC to STA 64+00). Also start removing 56910 dirt from new turn pocket on existing AC. $ 13,481.59 $ 6,740.80 56910 Regrade monolithic curb returns & handicap ramps $ 1,095.97 $ - I Sawcut AC on turn pocket into R-19 cut & roll (compact) curb grade & haul off some export (4 loads w/613) ~ ~910 on Crossroads $ 4,616.14 $ - Continue of digout of new left hand turn pocket south bond into R-19 haul off excess stockpile on R-19, a total 56601 of110CY $ 2,255.16 $ 2,255.16 South bond turn pocket into R-19 (new) finish digging out last of dirt & got compaction test & inspection, ok to 56601 place CAB after inspection $ 11,053.96 $ 11,053.96 56600 Add 6 in CAB/235, 489*6*$0.14 $ 197,810.76 $ 197,810.76 56600 Add 1 in AC/235, 489*1 *$0.40 $ 94,195.00 $ 94,195.00 Digout wet area @ existing AC on Discovery Falls. CAB & Fabric haul of 15 loads w/613, remove heavy dirt 56599 from Crossroads & Eastlake $ 14,643.60 $ 4,881.20 Haul off excess dirt from north bound Eastlake Parkay w/613 - 69 loads + 615 - 61 loads - appprox 1790 CY 56599 & haul to R-19 Stockpile $ 4,810.92 $ 4,810.92 Digout wet material in front of inlet boxes (4) on Eastlake Parkway & recompact. Also digout wet area on 56599 Crossroads @ inlet boxes ST A 11 +04 $ 7,939.51 $ 7,939.51 i Cut curb grade turn pocket into R-19. Digout light standard concrete also haul off broken pipe rubbish/greens 56482 and dirt to new stock pile $ 1,990.96 $ 1,990.96 I Digout wet material in fron of inlet boxes and dry utilities trench & 2 water services trenches, Eastlake : 56480 Parkway $ 2,837.22 $ - I 61016 6" AC on 20" CAB 1000 sf@ $4.75 $ 4,750.00 $ 4,750.00 61016 IAdditional move-in 1$ Total Change Orders Hazard $ 6,000.00 1 $ 410,111.53 $ 6,00000 I 365,493.44 Schilling Corporation Original Contract $ 312,973.30 Total Change Order CO# Description Amount Approved Amount 56036 Supply conduit $ 42,730.21 56570 Recompaction on gas tie in reslurried street for sleeve & slurried up to gas line to pass compaction $ 3,762.80 $ - 56570 Premium time for requested overtime by superintendent $ 2,173.50 $ - 57340 Changes required per final plan changes to accommodate future development $ 11,725.40 57408 Install 1-5" EB Conduit LF 730 @ $4.30 $ 3,139.00 $ 3,139.00 57408 Install 1-4" DB Conduit LF 575 @ $2.65 . $ 1,523.75 $ 1,523.75 57408 Electric only trench LF 300 $15.15 $ 4,545.00 $ 4,545.00 57410 Replace damaged 3523 terminator on Eastlake Parkway damaged by American Concrete $ 3,545.68 $ - 58109 Deductive chanqe order for the interconnect on Eastlake Parkway $ (9,505.00) $ (9,50500) . . Total Change Orders Schilling $ 63,640.34 $ U1 T C Construction Original Contract $ 240,283.00 ~ Total Change Order ctJ# Description Amount Approved Amount Build two 8"x2.5'x5' cut off walls on A-6 clo on Eastlake Parkay to resolve ground water problem dated 50538 02/17/05 $ 1,070.01 $ 1,070.01 53483 Negotiated cost increase due to unexpected fuel and material inflation $ 53,739.00 $ - 18" RCP $ 15,466.00 $ 15,466.00 18" RCP WT J $ (12,36000 $ (12,360.00) 30" RCP $ (36,344.00 $ (36,34400) 36" RCP (None in contract) $ 67,850.00 $ 67,85000 42" RCP WT J $ 7,171.00 $ 7,171.00 54" CRP (None in contract) $ 21,942.00 $ 21,942.00 Cleanout A-4 $ 6,000.00 $ 6,000.00 Cleanout Type A-5 (None in contract) $ 6,800.00 $ 6,80000 Cleanout Type A-6 (None in contract) $ 5,500.00 $ 5,500.00 5' B (None in contract) $ 3,300.00 $ 3,300.00 6' B-1 (None in contract) $ 3,100.00 $ 3,100.00 13' B-1 (None in contract) $ 5,300.00 $ 5,30000 17'B-1C.L $ 4,200.00 $ 4,200.00 18' B-1 C.L $ (4,300.00 $ (4,30000) I 19' B-1 C.I. $ (9,60000 $ (9,600.00) I 21' B-1 CI. $ (5,100.00) $ (5,10000) I 8' B-2 C.I. (None in contract) $ 4,100.00 $ 4,100.00 I 10' B-2 C.I. (None in contract) $ 4,300.00 $ 4,300.00 . 55394 Lowered 4" storm drain and backfilled $ 2,957.80 $ - I 57338 T & M repair damaged shafting to storm drain manholes on Eastlake Parkway Phase 3 $ 1,455.30 $ 1,455.30 54148 Bio Clean California Curb shelf baskets @ $1,050 each $ 11,550.00 $ 11,55000 Total Change Orders TC Construction $ Total Approved Change Orders Eastlake Parkway 01 I ~ I'V 158,097.11 $ $ 101,400.31 490,929.21 r Hunte Parkway Phase 3 (CFD 07-1 Brookfield Shea Village 11) Change Order Summary Hazard Construction Company Original Contract $ 1,583,367.76 Total Change Order CO# Description Amount Approved Amount 3 Digout & Stabilze Subgrade (Grading Outside Contract Tolerance) $ 5,985.20 $ 5,985.20 I 3 Reworked curb grade to expedite job $ 641.52 $ - I 4 Add 3" CAB (Sta 40+06 to 49+67) $ 30,618.00 $ 30,61800 ! 4 Add 5" CAB (Sta 40+06 to 49+67) $ 6,300.00 $ 6,30000 , 4 Add 1" AC (Sta 40+06 to 49+67) $ 32,760.00 $ 32,760.00 I 8 Add 5" CAB (Sta 23+43 to 40+06) $ 101,500.00 $ 101,500.00 I 8 Add 1" AC (Sta 23+43 to 40+06) $ 58,000.00 $ 58,000.00 , 10 Stabilize unsuitable subgrade $ 460.41 $ 460.41 ! . 10 Base pave additional area @ tie into exploration falls $ 4,204.00 $ 4,204.00 . 11 Dig out wet areas of subgrade per the direction of City Inspection Place dirt over waterline Discovery to Eastlake Parkway on Hunte Parkway and traffic control for pave on c.n11 Hunte Parkway $ 1,428.64 $ 1,428.64 I Haul off excess dirt from Hunte Parkway (Sta 41+00 to 24+50 (eastbond) to Eastlake paarkway & start ~ W11 maring median grade $ 4,095.78 $ 4,095.78 I Haul off excess dirt to Eastlake Parkway to build median last of eastbond & start of webound (Hunte) also 11 do digout Sta 32+20 to 40+00 (Hunte) $ 11,805.46 $ 11,805.46 I Haul off last of excess dirt to median grade on Eastlake Parkway from westbound laneslfinish digouts lay 11 fabric & fill wi cab Sta 32+20 to 24+50 $ 10,663.82 $ 10,663.82 11 Do digouts wetbound on Hunte Sta 40+00 to 25+00 & fill wi CAB no Fabric @ Hunte Parkway $ 3,924.08 $ 3,924.08 I Adjust for changes per City approved pavement sections for phase five asphalt paving (Sta 09+74 to I 19 23+49) 19 Add 4" CAB $ 64,869.84 $ 64,869.84 19 Add 6" CAB . $ 23,772.00 $ 23,772.00 19 Add 1" AC $ 57,655.00 $ 57,655.00 21 Add for additional right turn lane on Hunte Parkway @ Eastlake Parkway. Add 6" AC on 19"" CAB $ 17,811.20 $ 17,811.20 22 Rework excess spoils from street subgrade @ Hunte Parkway Phase 3 $ 41,272. 76 $ 41,272. 76 27 Backfill trench patches with AGG base $ 2,103.32 $ 2,10332 29 M10 Barricade Increase 40 @ $37/LF $ 1,48000 $ 1,480.00 29 Survey Monuments Increase 10 @ $400 $ 4,000.00 $ 4,000.00 Total Change Orders Hazard $ 485,351.03 $ 484,709.51 Schilling Corporation Original Contract $ 115,36416 Total Change Order CO# . Description Amount Approved Amount 56031 Provide conduit for Phase III dry utilities, not part ot contract due to natural disaster along gulf coast $ 42,730.21 $ - 56571 Interconnect from Hidden Path to Exploration Falls $ 9,846.01 $ - 57511 Additional work for meter pads at Hunte Parkway & Exploration Falls $ 1,467.40 $ - 55143 Additional work for meter pads at Hunte Parkway & Exploration Falls $ - $ - Total Change Orders Schilling $ 54,043.62 $ - T. C. Construction Original Contract $ 721,462.00 Total Change Order CO# Description Amount Approved Amount 56917 Upgrade to Hiqh Capacity Curb Baskets and install per Jim Biasi $ 4,160.00 $ 4,160.00 , 56917 Furnish and install easy maintenance shelf system with 5' opening $ 1,475.00 $ 1,47500 Remove & replace broken pipe 18" RCP for storm drain line on Hunte Parkway (Sta 17+00 on sheet #11 56250 run #12) $ 1,88888 $ - ~250 Prepare & pour concrete lug for 18" RCP pipe and backfill the trench $ 1,145.31 $ - 5~391 Furnish & Install storm drain to serve R-17 per plans received from Greg McDonnell $ 17,608.00 $ - ~149 Phase 3 Hunte Parkway furnish and install bio clean california curb shelf basket in B inlets $ 2,100.00 $ 2,10000 Install CMP risers per rough grading plans in Basins #1,2, 3 & 4 (48" Basin 1,48" in Basin 2, 72" in Basin 3 53651 and 54" in Basin 4) $ 32,500.00 $ - 53650 MOD Type A-6 Cleanout Y-6, 21' Deep $ 8,385.00 $ 8,385.00 53650 MOD Type A-7 Cleanout Y 725' Deep $ 10,233.00 $ 10,233.00 53650 S-9 Cut off walls on 54" RCP $ 7,86200 $ 7,86200 : 53650 54" RCP 1650 D T&G $ 17,640.00 $ 17,640.00 53650 54" RCP 1650 D WT Jon 36" slope $ 49,105.00 $ 49,105.00 53650 D-41 Dissipator on 54" RCP $ 38,513.00 $ 38,513.00 53650 Additional RIP Rap 2 ton $ 2,772.00 $ 2,772.00 53648 18" RCP $ (2,520.00 $ (2,520.00) 53648 18" RCP WTJ $ (3,600.00) $ (3,60000 53648 24" RCP $ 1,170.00 $ 1,170.00 53648 24" RCP WTJ $ (19,450.00 $ (19,45000 53648 30" RCP $ 9,920.00 $ 9,920.00 53648 30" RCP WT J $ (9,728.00 $ (9,72800 53648 36" RCP WT J $ 68,775.00 $ 68,77500 53648 48" RCP $ (3,240.00 $ (3,240.00) , 53648 48" RCP WT J $ 2,184.00 $ 2,184.00 ! ! 53648 96" RCP 2200D WT J $ (3,500.00) $ (3,500.00) , 53648 MOD A-5 Cleanout $ (5,800.00) $ (5,800.00) ! 53648 A-6 Cleanout $ 5,500.00 $ 5,50000 53648 MOD A-6 Cleandut $ (5,900.00) $ (5,900.00) 53648 12 B-2 CL $ (8,000.00) $ (8,00000) 53648 16' B-2 CL $ (5,700.00) $ (5,70000) 53648 18' B-2 $ 4,800.00 $ 4,800.00 53648 17' B-1 $ 4,200.00 $ 4,200.00 53648 18' B-1 CL $ (5,300.00) $ (5,30000) 53648 19' B-1 $ 4,800.00 $ 4,800.00 53648 21' B-1 CL $ (4,90000 $ (4,90000) 53648 Type F CB $ 2,700.00 $ 2,700.00 53648 Concrete Anchor S-9 (Added to line A-37) $ 7,600.00 $ 7,600.00 53648 Headwall D 35 MOD $ (7,200.00 $ (7,200.00) 53648 Storm water treatment unit $ 138,000.00) $ (38,00000) 51843 Trench for sub drain R-17 butress per Geocon (from toe of slope for Connelly) $ 1,114.35 $ 1,114.35 C11 5\:1637 Install 4" PVC SDR35, approx 420 If if 4' avg depth in R-15 (4"PVC SDR35, 4" Headwall per D-32 Type B) $ 9,770.00 $ - Sl'I638 Install extra 36 If of 42" RCP to connect to existing A-5 Cleanout $ 6,948.00 $ 6,948.00 Total Change Orders TC Construction $ 202,030.54 $ 139,118.35 Total Approved Change Orders For Hunte Parkway $ 623,827.86 RESOLUTION NO. 2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING CHANGE ORDERS ASSOCIATED WITH CFD 071 FOR BROOKFIELD SHEA OTAY LLC FOR THE CONSTRUCTION OF EASTLAKE PARKWAY AND HUNTE PARKWAY SERVING OT A Y RANCH VILLAGE 11 PHASE 3 WHEREAS, on November 11, 2003, the City Council formed Community Facilities District No. 071 ("CFD 071") for the purpose of providing the financing and acquisition of certain authorized public facilities associated with Otay Ranch Village 11, Windingwalk; and WHEREAS, the City entered into an Acquisition/Financing Agreement for CFD 071 (the "AF A") with Brookfield Shea Otay, which authorized Brookfield Shea Otay to construct Eastlake Parkway and Hunte Parkway and, to be reimbursed from the project funds; and WHEREAS, Brookfield Shea Otay has completed construction of Eastlake Parkway and Hunte Parkway; and . WHEREAS, in the course of constructing the project it was determined that additional items of work which were not previously included in the original contracts needed to be constructed as part of Eastlake Parkway and Hunte Parkway, thereby necessitating the approval of Change Orders to the contracts, and WHEREAS, the AF A establishes procedures for the reimbursement of Change Orders; and WHEREAS, City staff performed an audit of the project to verify the cost of the project and further verified that Eastlake Parkway and Hunte Parkway have been completed in accordance with the project plans; and WHEREAS, based on that audit, City staff has determined that the following amounts are eligible for reimbursement from the CFD funds: Eastlake Parkway/Hunte Parkway Eastlake Parkway to be oaid from CFD (TDIF sub account) $175,660.12 Eastlake Parkway to be naid from CFD (Non- TDIF sub account, subiect to available funds) $22,561.57 Hunte Parkway to be oaid from CFD (TDlF sub account) $212,555.06 Hunte Parkway to be naid from CFD (Non-TDIF sub account, subiect to available funds) $30.953.84 Total $441,730.59 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista approves change orders associated with CFD 071 for Brookfield Shea Otay LLC for the construction of Eastlake Parkway and Hunte Parkway serving Otay Ranch Village 11 Phase 3. 5-16 Resolution No. Page 2 Presented by R.A. Hopkins Director of Engineering 5-17 Approved as to form by "\ "T/( \ }4-v-'i Dtjt'~(LU 'i'\fllfr1: ((:. Mieier . .~tVm City Attorney CITY COUNCIL AGENDA STATEMENT 7/15/08, ItemL ITEM TITLE: ORDINANCE OF THE CITY OF CHULA VISTA REVISING THE SPEED LIMIT FOR HIDDEN VISTA DRIVE BETWEEN EAST H STREET AND SMOKY CIRCLE ~ SUBMITTED BY: DIRECTOR OF ENGINEERING REVIEWED BY: CITY MANAGER ST +Or DteG, ASSISTANT CITY MANAGER "'::. r 4/5THS VOTE: YES D NO ~ SUMMARY An Engineering and Traffic survey has been completed for a segment of Hidden Vista Drive in accordance with the California Vehicle Code which mandates that a speed survey be completed and updated every seven years for each street with a posted speed limit within the City. Based on the results of this speed survey, it was determined that the speed limit on Hidden Vista Drive between East H Street and Smoky Circle should be increased from 25 mph to 30 mph. It was also determined that the speed limit for Hidden Vista Drive between Smoky Circle and Terra Nova Drive should retain the existing 25 mph speed limit. 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 project qualifies for a Class I categorical exemption pursuant to Section 153301 (c) (Existing Facilities) of the State CEQA Guidelines because the streets are existing facilities. Thus, no further environmental review is necessary. RECOMMENDATION Council adopt the ordinance. BOARDS/COMMISSION RECOMMENDATION The Safety Commission, at their meeting of May 08, 2008, voted 6-0 with one Commissioner absent, to concur with staffs recommendation that the speed limit on Hidden Vista Drive between East H Street and Smoky Circle should be increased from 25 mph to 30 mph. It was also determined that the speed limit for Hidden Vista Drive between Smoky Circle and Terra Nova Drive should retain the existing 25 mph speed limit. 6-1 7/15/08, Item ,:; Page 2 of 5 DISCUSSION City staff completed a speed survey along a segment of Hidden Vista Drive between East H Street and Terra Nova Drive in accordance witb tbe California Vehicle Code which indicates tbat the posting of speed limits be determined by an Engineering and Traffic Survey at least once every seven years. As described in tbe California Vehicle Code, tbe survey shall include: (I) Prevailing speeds as determined by traffic engineering measurements; and, (2) Accident records; and (3) Traffic/roadside conditions not readily apparent to tbe driver. These roadway characteristics are then used to help determine an appropriate speed limit. In addition, tbe Manual on Uniform Traffic Control Devices (2003 MUTCD) states that speed limits should be established at the nearest 5 mph increment to the 85th percentile speed (unless engineering judgment recommends otherwise based on specific roadway characteristics) which is defined as that speed at or below which 85 percent of tbe traffic is moving. Speed limits established on this basis conform to the consensus of those who drive the street as to what speed is reasonable and safe, and are not dependent on the judgment of one or a few individuals. Speed limits higher than the 85th percentile speed are not generally considered reasonable and safe while speed limits below the 85th percentile typically do not facilitate the orderly movement of traffic. Only when roadside development results in traffic conflicts or unusual conditions not readily apparent to drivers may speed limits be further reduced. Physical Conditions: The following table describes the existing conditions of different segments along Hidden Vista Drive: Segment Limits East H Street to Smoky Circle Lenl!;th/Width 1,267 feet (0.24Mile)/ varies from 42' to 68' curb to curb Classification Class III collector ADT (Year) 8,286 (2005) Exist. Speed Limit 25 mph 85'"% Sneed 36 mph Number of Lanes 3 lanes (2 southbound and 1 northbound), 4 lanes (2 in each direction) approaching East H Street intersection Stripinl!; 3 to 4 lanes, stop signs, and speed limit legends On-Street Parkinl!; Not allowed Land Use Residential-no direct driveway access. A horizontal curve located 260' east of Windjammer Circle witb a Horizontal Alignment minimum radius of 1800' over 899' along the centerline produces a design speed of 65 mph. A crest vertical curve located 60' south of Sanibelle Circle and Hidden Vertical Alignment Vista Drive, with a + 11.0% to 6% change in grade produces a design speed of30 mph. 6-2 7/15/08, Item -5 Page 3 of 5 Accident Rate: The accident rate along this segment is 0.00 (accidents per million Segment 1 State vehicle miles) which is lower than the rate of 1.63 for similar roadways in the State of California Special Conditions Dense landscaping on both sides of the roadway. There are no private properties fronting this segment of Hidden Vista Drive. Segment Limits Smoky Circle to Terra Nova Drive Lenl?:thlWidth 1,856 feet (0.35 Mile)/42' curb to curb Classification Class III Collector ADT /Year) 8,286 (2005) Exist. Sneed Limit 25 mph 85th% Sneed 29mph Number of Lanes 2 lanes (l per direction) Stripin!! 2 lanes, stop signs On-Street Parking Generally allowed with restriction in front of 435 and 457 Hidden Vista Drive Land Use Residential (with direct driveway access), public park and school Horizontal curve located 90' east of Windrose Way with a minimum Horizontal Alignment radius of 350' over 117.23' along the centerline produces a design speed of25 moho A crest vertical curve located between Smoky Circle and Windrose Vertical Alignment Way, with a +6.0% to +3.8% grade change over 40' along the centerline produces a design speed of 42 mph. The accident rate along this segment is 0.47 (accidents per million Accident Rate: Segment vehicle miles) which is lower than the rate of 1.95 for similar roadways 1 State in the State of California. Special Conditions There is a school and a park along this segment. Most of the residential units along this segment are fronting Hidden Vista Drive. Hidden Vista Drive - East H Street to Smoky Circle As described by the California Vehicle Code, the primary factor in setting a speed limit is the prevailing speed measured along the roadway. Although the 36 mph 85% speed measured along Hidden Vista Drive north of East H Street suggests that the majority of motorists traveling through the area feel it is safe to travel at a speed higher than currently allowed by the existing posted speed limit, the roadway characteristics do not support such speed for the following reasons: I) Vertical Alignment: A crest vertical curve located 60' south of the intersection of Sanibelle Circle and Hidden Vista Drive with a grade change of 11.0% to 6% over 120' along the centerline produce a design speed of 30 mph in accordance with CalTrans Highway Design Manual. 6-3 7/15/08, Item. / f', Page 4 of5 2) Roadway Characteristics: There are four access points (two private, two public) which intersect this 1,267 lineal foot segment of Hidden Vista Drive that serve as main access points to four different residential communities. A 30 mph speed limit along Hidden Vista Drive would provide a reasonable speed limit that considers adjacent land uses, the steep roadway grade, and the transition to the further reduced design speed of 25 mph section of this road north of this segment. Based on the vertical alignment and design speed of 30mph, staff recommends a 30 mph posted speed limit. Hidden Vista Drive - Smoky Circle to Terra Nova Drive While conducting the speed survey, staff measured a 29 mph 85% speed along Hidden Vista Drive between Smoky Circle and Terra Nova Drive which suggests that the majority of motorists traveling through the area feel it is safe to travel at a speed higher than currently allowed by the existing posted speed limit. However this residential neighborhood generates a significant number of pedestrians. Therefore, staff recommends the segment of Hidden Vista Drive from Smoky Circle to Terra Nova Drive retain the 25 mph speed limit for the following reasons: a. Terra Nova Park. Terra Nova Park is an 8.25 acre neighborhood park that serves the surrounding area. It is located at the northwest comer of the intersection of Hidden Vista Drive and Parkside Drive. The park has a playground, two tennis courts, restrooms and a large playing field. With so many amenities, this park attracts a significant number of pedestrians and motorists from the surrounding communities. b. Clear View Elementary School: Clear View Elementary School is a public school with 538 students and 26 faculties. The school is located at the northeast comer of Windrose Way and Hidden Vista Drive. As is the case with all elementary schools, Clear View Elementary generates a significant amount of pedestrian activities within the area. The kindergarten classes dismiss at 2:00 p.rn., all other classes dismiss at 3:07 p.m. There is a pedestrian walkway between the school and the park that exits onto Hidden Vista Drive and is heavily used by students. During school dismissal many parents park their vehicles on both sides of Hidden Vista Drive near the walkway, and wait to pick up their kids. Staff visited the site on April 29, 2008, during school dismissal from 2:30 p.m. to 3:30 p.m., and observed 35 pedestrians that crossed Hidden Vista Drive at this location. Although the location does not include a crosswalk, vehicles were traveling at an appropriately slow speed, most likely due to the proximity of stops signs and the existing 25 mph speed limit, and allowed pedestrians to cross Hidden Vista Drive safely. In addition, staff observed 29 pedestrians that crossed Hidden Vista Drive at its intersection with Woodhouse Avenue. This intersection is controlled by stop signs in all directions, includes yellow crosswalks across both streets, and as such, provides the best location for pedestrians to cross Hidden Vista Drive. 6-4 7/15/08, Item C: Page 5 of 5 c. Residential Street: Hidden Vista Drive provides direct access to 25 residential homes fronting the street within the 0.35 mile segment north of Smoky Circle. Taking into consideration the residential nature of this segment, staff is recommending a 25 mph speed limit. 4) Horizontal Alignment: This segment of Hidden Vista Drive has a horizontal curve located 90' east of Windrose Way with a minimum radius of350' over 117.23' along the centerline that produces a design speed of 25 mph in accordance with CalTrans Highway Design Manual. Based on the above, staff recommends a 25 mph speed limit from Smoky Circle to Terra Nova Drive CONCLUSION: Should the City Council vote to establish the proposed 30 mph speed limit, Schedule X of the register maintained in the office of the City Engineer would be revised to show the following: 10.48.020 Schedule X - Established Speed Limits in Certain Zones - Designated Name of Street Beginning At Ending At Proposed Speed Limit Hidden Vista Drive East H Street Smoky Circle 30 mph Hidden Vista Drive Smoky Circle Terra Nova Drive 25 mph 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: The proposed speed limit modification would require the posting of two new speed limit signs as well as the removal and replacement of two pavement legends. The cost to install these improvements is approximately $602. There are sufficient funds in Capital Improvement Project TF332, "Signing and Striping Program", to fully offset all costs associated with this modification. Thus, there is no impact to the General Fund. ATTACHMENT 1. Speed Survey 2. Location Plat M:\Engineer\AGENDA\CAS2008\07-15-08\Hidden Vista Dr_Speed Survey.doc 6-5 ATTAChMENT SPEED LIMIT - ENGINEER1NG/TR~FIC SDRV~Y I STREET: Hidden Vista Drive LTh'IlTS: Smoky Circle - Terra 010va Drive Length of Segment (ft): 1,856' (0.35 miles) Existing Posted Limit (mph): 25 mph S1JMMARY OF SPEED S1JR\'EYS Segment: Smoky Circle. - Terra Nova Drive Date Taken: 6/12/2006 No. of Vehicles on Sample (cars): 100 85th Percentile (mph): 29 Range of Speeds Recorded (mph): 18 - 33 ROADWAY CHARACTERISTICS Width (ft): 42' curb to curb Total No. of Lanes: 2 lanes (one per direction) . Horizontal Alignment: Horizontal curve located 90' east of Windrose Way with a minimum radius 0050' over 117.23' oflength along the centerli..TJe produces a design speed 0[25 mph. Vertical Alignmen t: A crest vertical curve located between Smoky Circle and Windrose Way, with a +6.0% to +3.8% grade change over 40' along the centerline produces a design speed of 42 mph. TRAFFIC CHARACTERISTICS Average Daily Traffic: 5,565 (2005) On-Street Parking: Restricted infrout of 453 and 457 Hidden Vista Drive. Special Conditions: Clearview Elementary School is located at the intersection of Wind rose and Hidden Vista Drive. Terra Nova Park is located at the intersection of Parks ide Drive and Hidden Vista Drive. Single family dwellings with direct driveway access. Accident History: The accident rate at this segment is 0.47 (accidents per million vehicle miles) which is lower than the rate of 1.95 for similar roadways in the State of California. SURVEY RESULTS Study was Prepared by: Erica Mancilla Date: 3/7/2008 b b CITY OF CHULA VISTA - VEHICLE SPEED SURVEY SEGMENT UNDER STUDY Hidden Vista Drive (Smoky Cirlce to Terra Nova Drive) DATE 06/12/2006 SURVEY SITE 500' West ofTerra Nova Drive POSTED SPEED 25 mph TIME START 1:20 PM TIME END 2:10 PM WEATHER Clear DIRECTION:....L. =0 --Yi.. = \ MPH 5 10 '5 20 TOTAL % CUM% 45 44 43 42 41 40 39 38 37 36 35 . 34 33 / 1 1 100 32 / 1 1 99 31 '0 / / / 4 4 98 30 0 0 0 / / / / / / 9 9 94 '" ..: _il 28 0 0 0 0 0 / / / / / / 11 1"\ 72 27 0 0 0 0 0 0 0 0 0 0 0 / / / / / / 17 17 61 26 0 0 0 0 0 0 / / / / 10 10 44 25 0 0 0 0 0 0 0 / / / / 11 11 34 24 0 0 / / / / / 7 7 . 23 23 0 0 0 0 0 / / 7 7 16 22 0 0 0 / 4 4 9 21 0 / 2 2 5 20 0 / 2 2 3 19 18 0 1 1 1 17 16 15 14 13 12 11 10 9 8 7 6 RECORDER: David Nuno TOTAL NUMBER OF VEHICLES: 100 H:\HOME\ENGINEER\TRAFFIC\Speed Surveys\Hldden Vista (Terra Nova Dr - Smoky).xls - 6-7 SPEED LIMIT - ENGINEERlNG/TRAFFIC SURVEY STREET: Hidden Vista Drive LIMITS: East "H" Street - Smoky Circle Length of Segment (ft): 1,267' (0.24 miles) Existing Posted Limit (mph): 25 mph SUMMARY OF SPEED SURVEYS Segment: East "H" Street - Smoky Circle Date Taken: 3/13/2008 No. ofVehic1es on Sample (cars): 100 85th Percentile (mph): 36 Range of Speeds Recorded (mph): 22 - 44 ROADWAY CHARACTERISTICS Width (ft): 42' - 68' curb to curb Total No. of Lanes: 3 lanes (2 southbound and 1 northbound). 85' north of Sanibelle Circle to East "H" Street it turns to 4 total lanes (2 per direction). Horizontal Alignment: A horizontal curve located 260' east of Windj amrner Circle with a minimum radius of 1800' over 899' of length along the centerline. Vertical Alignment: A crest vertical curve located 60' south of Sanibelle Circle and Hidden Vista Drive, with a +11.0% to +6.0% grade change over 120' along the centerline produces a design speed ono mph. TRA.FFIC CHARACTERISTICS Average Daily Traffic: 5,565 (2005) On-Street Parking: Not allowed Special Conditions: Segment contains 6% to 11 % grade along entire segment, 30' is the average distance in feet required to achieve a 1 % change in grade produces a design speed ono mph. Accident History: The accident rate at this segment is 0.00 (accidents per million vehicle miles) which is lower than the rate of 1.63 for similar roadways in the State of California'. SURVEY RESULTS Study was Prepared by: Erica Mancilla Date: 3/13/2008 Recommendation: Due to the design speed a 5 mph reduction from the 85th percentile speed is recommended. The speed limit shall be increased to 30 mph. Date Recommendation Approved: By: Jim Newton, P.E. Approved Speed Limit (mph): 30 mph Per cve 40803, Survey Expires: 3/13/2015 6-8 CITY OF CHULA VISTA - VEHICLE SPEED SURVEY SEGMENT UNDER STUDY: Hidden Vista Drive (E "H" Street - Smoky Circle) DATE: 03/13/2008 SURVEY SITE: Hidden Vista Dr & Sanibelle Circle TIME START: 9:14 AM TIME END: 9:51 AM POSTED SPEED: 25 mph WEATHER: Cloudy DIRECTION: S -0 N -/ MPH 5 10 15 20 TOTAL % CUM% 50 49 48 .' 47 46 45 44 0 1 1 100 43 0 0 99 42 0 0 99 41 0 1 1 99 40 0 0 2 2 98 39 0 1 1 96 38 0 0 2 2 95 37 0 0 0 0 4 4 93 35 0 0 0 / / 5 5 84 34 0 0 0 0 0 0 / / / 9 9 79 33 0 0 0 0 / / / / / / 10 10 70 32 0 0 0 0 / / / / ! 9 9 60 31 0 0 0 0 0 0 0 / / ! / / 12 12 51 30 0 0 0 0 ! ! ! ! ! / / 11 11 39 29 0 0 0 / ! / / ! 8 8 28 28 0 / ! / / / 6 6 20 27 0 / ! / 4 4 14 26 0 ! / 3 3 10 25 0 / / / 4 4 7 24 / 1 1 3 23 / 1 1 2 22 ! 1 1 , 1 21 0 0 0 20 19 18 17 16 15 14 13 RECORDER: ERICA MANCILLA TOTAL NUMBER OF VEHICLES: 100 H:IHOMEIENGINEERITRAFFICISpeed_SurveysIHidden 61:.t9 Drive R~DAR (E H Street -Smoky Circle).xls.xls Q o ~ c o +- o U o --l ~ ~It 0> ~~5~ :r: u ATfACHMENl '2 # ORDINANCE NO. ORDINANCE OF THE CITY OF CHULA VISTA REVISING THE SPEED LlMIT FOR HIDDEN VISTA DRIVE BETWEEN EAST H STREET AND SMOKY CIRCLE WHEREAS, based on the provisions of the California Vehicle Code and pursuant to authority under the Chula Vista Municipal Code, the City Engineer has determined that the speed limit on Hidden Vista Drive between East H Street and Smoky Circle should be 30mph; and WHEREAS, the prevailing speeds, accident history, roadway design characteristics and land use justify a 30 mph posted speed limit; and WHEREAS, the Engineering and Traffic Survey was prepared pursuant to all provisions of the California Vehicle Code and the Manual on Uniform Traffic Control Devices; and WHEREAS, the Safety Commission concurs with staff's recommendation to revise the speed limit on Hidden Vista Drive between East H Street and Smoky Circle to 30mph; and WHEREAS, this recommendation and other information in the City Engineer's report has been fully considered by the City Council; NOW, THEREFORE, the City Council of the City of Chula Vista ordains as follows: SECTION I: That the speed limit on Hidden Vista Drive between East H Street and Smoky Circle is revised to 30mph. SECTION II: That Schedule X of the Register of Schedules maintained by the City Engineer as provided in Section 10.48.020 of the Chula Vista Municipal Code, "Established Speed Limits in Certain Zones-Designated," is amended to include the following inforination: 10.48.020 Schedule X - Established Speed Limits in Certain Zones - Designated Name of Street Beginning At Ending At Proposed Speed Limit Hidden Vista Drive East H Street Smoky Circle 30 mph Hidden Vista Drive Smoky Circle Terra Nova Drive 25 mph SECTION III: This ordinance shall take effect and be in full force on the thirtieth day from and after its adoption. Presented by Approved as to form by Rick Hopkins Director of Engineering . . L . -(~r!~^- tL . '~~ix 1--~ Bart Miesfeld {/ . Interim City Attorney N-\ENGINEER\OrdinancesIOrd2008\07-15-0S\Hiddel1 Vista Speed Limit-doc 6-11 CITY COUNCIL AGENDA STATEMENT ITEM TITLE: SUBMITTED BY: REVIEWED BY: 7/15/08, Item~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING A GRANT DEED IN FEE FOR TWO EXCESS REMNANT PARCELS ADJOINING STATE ROUTE 125 DESIGNATED AS SAN DIEGO COUNTY ASSESSOR'S PARCEL NU11BERS 595-070-52 AND 595-070-53 FROM EASTLAKE DEVELOPMENT COMPANY AND AUTHORIZING THE CITY CLERK TO EXECUTE ALL DOCUMENTS NECESSARY TO ACCEPT AND RECORD THE GRANT DEED RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE TRANSFER OF PARCEL DD 32019-03-01 AND PARCEL DD 32019-03-02 WHICH WERE GRANTED TO THE CITY OF CHULA VISTA BY THE CALIFORNIA DEPARTMENT OF TRANSPORTATION (CALTRANS) AS PART OF THE STATE ROUTE 125 PROJECT TO MCMILLIN OTAY RANCH LLC AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE ALL DOCUMENTS NECESSARY TO TRANSFER TW. ,PARCELS DIRECTOR OF ENGINEERING . CITY MANAGER <; T fLr D"'-G; ASSISTANT CITY MANAGER 'S) 4/5THS VOTE: YES D NO [g] SUMMARY The State Route 125 Toll Road project started construction in September 2003 and opened to the public in November 2007. This project was approved as a "Design-Build" facility. Due to the final approved geometric alignment of the toll road, off-ramps and on-ramps, there are some portions of parcels initially anticipated to be a part of State Route 125 that have been deemed by the California Department of Transportation (Caltrans) to be not necessary for the toll road. Adoption of these Resolutions will resolve the remaining excess land issues related to the construction of the Toll Road. ENVIRONMENT AL 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 is not a "Project" as defined under Section 15378 (b)(4) of the State CEQA Guidelines; therefore, pursuant to Section 15060( c )(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no further environmental review is necessary. 7-1 -7 7/15/08, Item~ Page 2 of3 RECOMMENDATION Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION EASTLAKE PARCELS There are two existing parcels of land held in fee ownership by the Eastlake Development Company that were initially set aside to be used for right-of-way as part of the SR-125 transportation corridor. These parcels were set aside for transportation purposes as part of the SR-125 project. A portion of these two parcels was eventually taken for the purposes intended, with the majority of the parcels left as excess. The alignment of the SR-125 has been finalized and no more right-of-way is needed in this area. The Eastlake Development Company does not want these remnant parcels and wishes to deed these parcels to the City of Chula Vista at no cost. These parcels have a current land use designation of OS-3. Under the current land use designation these parcels could accommodate: · Agriculture - interim basis · Horticultural garden . Christmas Tree Sales . Field Crops . Fruit and Vegetable stands . Parks and recreational facilities . Public quasi-public uses . Tree farming · Utilities public and private, such as electrical substations All of these uses are subject to CEQA and may require environmental review. The total area ofthese two parcels is approximately 15 acres. (See Attachment I) McMILLIN PARCELS On April 16, 2002, the City of Chula Vista entered into the Toll Road Agreement to facilitate development of the SR-125 toll road through the City of Chula Vista. This agreement set forth the terms and conditions for the City's transfer of property back to the private landowner. On September 25,2007, Council approved the transfer of two Caltrans fee owned parcels to the City of Chula Vista. These two parcels were deemed to be excess land, fell outside the SR-125 right- of-way, and were no longer needed for the reason originally granted. The City of Chula Vista now holds title to these two parcels, and pursuant to the conditions in the Toll Road Agreement, must convey these properties back McMillin Otay Ranch, LLC. (See Attachment 2) 7-2 ~ 7/15/08, Item-=--- Page 3 of 3 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. FlSCAL IMPACT There is no impact to the General Fund as a result of this action. All costs associated with the maintenance of those parcels being transferred to McMillin will be borne by McMillin. The parcels being granted to the City by the Eastlake Development Company are anticipated to be leased or sold and will be maintained by others. ATTACHMENTS: I. Eastlake Grant deed with Legal Description 2. McMillin Quit Claim Deeds with Exhibits Prepared by: Rick Ryals, Real Property A4anager, Engineering Department M:\Engineer\AGENDA\CAS2008\06-17-08\SR-125 Eastlake-McMillin Parcels CAS.doc 7-3 A"IT AGhi-,,,;H:f'J-:r / Recording requested by and please return to: City Clerk City of Chula Vista P.O. Box 1087 Chula Vista, CA 91912 This instrument benefits City, only. No fee required > (This s ace for Recorder's use, only) > Assessor's Parcel Number's 595-070-52 and 595-070-53 Chula Vista ClP File No. SR-125 Grant Deed FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, THE EASTLAKE COMPANY, LLC, a California limited liability company hereby grants to THE CITY OF CHULA VISTA, A MUNICIPAL CORPORATION, the following real property situated in the City of Chula Vista, County of San Diego, State of California and more particularly described as follows: See Legal Description Designated as Exhibit" A" attached hereto and by reference made a part hereof. Signed this day of , 2008 THE EASTLAKE COMPANY, LLC. a California limited liability company By: Its By: Its: (Notary Acknowledgment required for each signatory.) 7-4 This is to certify that the interest in real property conveyed herein to the City of Chula Vista, a governmental agency, is hereby accepted by the undersigned, City Clerk, on behalf of the Chula Vista City Council pursuant to authority conferred by Resolution No. 15645 of said Council adopted on June 5, /990, and the grantee(s) consent(s) to the recordation thereof by its duly authorized officer. SUSAN BIGELOW, CITY CLERK By: Date: J:ISurveyIST922ILegalslFinal\617-071-09g.doc 7-5 Form No. 1068-2 ALTA Plain Language Commitment EXHIBIT "A" Commitment No.: NCS-345891-SD Page Number: 5 THOSE PORTIONS OF THE SOUTHWEST QUARTER OF SEmON 27 AND OF THE NORTHWEST QUARTER OF SEmON 34 IN TOWNSHIP 17 SOUTH, RANGE 1 WEST, SAN BERNARDINO MERIDIAN, IN THE CITY OF CHULA VISTA, COUN1Y OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF, LYING EASTERLY OF THE WESTERLY LINE OF THE 120 FOOT WIDE EASEMENT DESCRIBED IN FINAL ORDER OF CONDEMNATION RECORDED APRIL S, 1983 AS DOCUMENT NO. 107938 OF OFFICIAL RECORDS, AND LYING WESTERLY OF THE WESTERLY LINE OF PARCEL MAP NO. 13883, FILED IN THE OFFICE OF THE COUN1Y RECORDER OF SAN DIEGO COUN1Y, JULY 26,1985. EXCEPTING THAT PORTION LYING WITHIN EASTLAKE DRNE AS DEDICATED ON MAP NO. 11403, FILED IN THE OFFICE OF THE COUN1Y RECORDER OF SAN DIEGO COUN1Y. ALSO EXCEPTING THEREFROM THOSE PORTIONS THEREOF CONVEYED TO THE STATE OF CALIFORNIA BY DEEDS RECORDED MAY 22, 2003 A5 FILE NO. 2003-0604639 AND 2003- 0604642, BOTH OF OFFICIAL RECORDS. ALSO EXCEPTING THEREFROM THAT PORTION OF LAND CONVEYED TO THE STATE OF CALIFORNIA BY DOCUMENT RECORDED NOVEMBER 16, 2007 AS INSTRUMENT NO. 2007- 0723402 AND 2007-0723403, BOTH OF OFFICIAL RECORDS. APN: 595-070-52-00 and 595-070-53-00 First American Titie Insurance Company 7-6 t-:T-T,:::",CHNiENT '" ):.?-' Recording requested by and please return to: City Clerk City ofChula Vista P.O. Box 1087 Chula Vista, CA 91912 This instntment benefits City, only. No iee required > (This s ace or Recorder's use, only) > Chula Vista CIP File No. SR-125 Quitclaim Deed FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the City of Chula Vista, a municipal Corporation, does hereby remise, convey and forever Quitclaim to McMilliu Otay Ranch, LLC a Deleware limited liability company, the following real property Situated in the City of Chula Vista, County of San Diego, State of California and more particularly described as follows: See Legal Description and Plat designated as Exhibit "A" attached hereto and by reference made a part hereof. This deed is subject to all existing easements, Signed this day of , 2008 THE CITY OF CHULA VISTA Cheryl Cox, Mayor City ofChula Vista (Notary Acknowledgment required for each signatory.) CT Pel, No, 32019-03-01 7-7 This is to certify that the interest in real property conveyed herein to the City of Chula Vista, a governmental agency, is hereby accepted by the undersigned, City Clerk, on behalf of the Chula Vista City Council pursuant to authority conferred by Resolution No. 15645 of said Council adopted on June 5, 1990, and the grantee(s) consent(s) to the recordation thereof by its duly authorized officer. SUSAN BIGELOW, CITY CLERK By: Date: J :ISurveyIST922ILegalslFinalI617 -071-09g.doc CT Pel. No. 32019-03-01 7-8 EXHIEIT uA" That portion of land conveyed to the State of California recorded on May 22, 2003 as Document No. 2003-0604607 lying Easterly of the following described line: Commencing at a 2" iron pipe with disc stamped 'R.C.E 22606" marking the Northeast corner of Lot 23 of Rancho Otay, as shown on Record of Survey No. 16504, recorded March 9111, 2000, in the office of the County Recorder of San Diego County, said pipe bearing North 71057'57" East 2640.41 feet from a 2" iron pipe with disc stamped "L.S. 5284" marking the Southwest comer of Lot 10 of Map No. 14432, recorded August 30th, 2002, in the office of said County Recorder; thence along the Northerly line of said Lot 23 South 71057'57" West 22.30 feet; thence North 63024'16" West 138.24 feet to the beginning of a 550.03 foot radius curve concave Northeasterly; thence Northwesterly along said curve through a central angle of 22039'08' a distance of 217.46 feet to the beginning of a non-tangent 433.15 foot radius curve concave Northeasterly, a radial bearing to said point bears South 44015'53" West; thence Northwesterly along said curve through a central angle of 02000'16" a distance of 15.15 feet; thence non-tangent to said curve North 60045'28" West 30.31 feet to the beginning of a non- tangent 320.41 foot radius curve concave Northeasterly, a radial bearing to said point bears South 46022'51" West; thence Northwesterly along said curve through a central angle of 09043'46" a distance of 54.41 feet to the beginning of a 3606.39 foot radius curve concave Northeasterly; thence Northwesterly along said curve through a central angle of 02030'08" a distance of 157.51 feet to the beginning of a 1913.84 foot radius curve concave Northeasterly; thence Northwesterly along said curve through a central angle of 05'38'03" a distance of 188.19 feet to the beginning of a 6998.01 foot radius curve concave Northeasterly; thence Northwesterly along said curve through a central angle of 01024'52" a distance of 172.745 feet to the beginning of a non-tangent 3624.21 foot radius curve concave Northeasterly, a radial line to said beginning bears South 65027'01" West; thence Northwesterly along said curve through a central angle of 03'14'26" a distance of 204.98 feet; thence North 21018'33" West 204.19 feet; thence North 17"29'08" West 83.50 feet to the beginning of a 1407.94 foot radius curve concave Easterly; thence Northerly along said curve through a central angle of 08037'48" a distance of 212.07 feet; thence North 08'37'59" West 232.59 feet; thence North 09011'35" West 169.93 feet; thence North 08022'34" West 56.24 feet; thence North 09'10'03" West 77.41 feet to the beginning of a 137.26 foot radius curve concave Easterly; thence Northerly along said curve through a central angle of 13032'35" a distance of 32.44 feet; thence North 04'22'32" East 131.80 feet to the beginning of a 284.84 foot radius curve concave Westerly; thence Northerly along said curve through a central angle of 14'16'08" a distance of 70.93 feet to the beginning of a 121.88 foot radius reverse curve concave Easterly; thence Northerly along said curve through a central angle of 19'00'59" a distance of 40.45 feet; thence North 09007'23" East 160.03 feet to the beginning of a 911.54 foot radius curve concave Southeasterly; thence Northeasterly along said curve through a central angle of 14039'39" a distance of 233.25 feet to the beginning of a 2155.33 foot radius curve concave Southeasterly; thence Northeasterly along said curve through a central angle of 04035'30" a distance of 172.73 feet; thence North 28022'31" East 120.32 feet; thence North 26'32'21" East 169.27 feet to the True Point of Beginning, said point being the beginning of a 593.50 foot radius curve concave Westerly; thence Northerly along said curve through a central angle of 33033'34" a distance of 347.62 feet to the beginning of a 1262.42 foot radius curve concave Westerly; thence Northerly along said curve through a central angle of 07'09'41" a distance of 157.79 feet to the beginning of a FORM IU' 6.t(3) (RSVISnl 4/96} lU2KXA_n019_03_01_noa1g.1X)C 11/14./07 51> 7-9 36.88 foot radius reverse curve concave Southeasterly; thence Northeasterly along said curve through a central angle of 90039'38" a distance of 58.35 feet; thence non-tangent to said curve North 08"18'56" West 45.88 feet; thence along a radial bearing North 08010'13'West 65.00 feet to a point on a 3700.00 foot radius curve concave Southeasterly, said point being the Point of Terminus and being on the Southerly line of land described as Parcel 32019-1 conveyed to the State of California recorded on May 22, 2003 as Document No. 2003-0604607; thence Northeasterly along said curve and said State land through a central angle of 03048'57" a distance of 246.42 feet to the Southerly terminus of that certain course in said State land bearing North 04021'16" West 95.92 feet. Containing 0.71 acres more or less. Coordinates, bearings and distances, as stated hereon, are based on the California Coordinate System of 1983, HPGN EPOCH 1991.35, Zone VI as shown on Record of Survey No. 15374. Multiply distances by 0.999 993 8 to obtain ground level distances. To convert U.S. survey feet to meters, multiply distances by 0.30480061. There shall be no abutter's ri9hts, including rights of access appurtenant to the above-described parcel of land in and to the adjacent State highway. PORM RY 6-lle) UUN'ISKD 4/91S} 1.49:l:lt;tA.J20U.03-01'DQdg.OOC 11/14/07 51 7-10 CI F 29 28 ~ LOT 10 ULA , ct) i: EXHIBIT "A" VISTA 30 ----- SECTION 3 OTAY LAKES ~ ROAD ,,\:jC) ~<(-. ~ c..O IOOR PARCEL 'tJ.~ G S\:j ~'r ~c.. o PARCEL 3 PM 18 81 KEY MAP This mop has been prepared by me. or under my direct Ion. in conformance with the Profes d Surveyors' Signotur Dote Act. STATE OF CALIFORNIA D~PARTMENT OF lRAN8PORTATlON OlSTR1CT I 1 ~,;, DIRECTOR'S DEED MAP DD32019-03-01 RIG~;"O~OWAY Por. 52015m COUNTY ROUTE KlQU.(T(R POST SCAlE SO 125 8.11 NONE SH::ET 1 Of 2 d.5~5 E.A. 232302 L----J cp iii CITY OF fj;O ~ , ~ ~ 0/" . ~ o . ~'" ,," ,~ / (32019-2) REF. "'-16.!\9'1(~ t o17S. 9/3' o ~ji~~~y Gi~R:~CESS E4Sf~ENT CRA~TED 10 1HE CITY or CHVL4 VISTA PER FILE NO. 2ooJ-057-4411 REe.' IoUY 16, 2flO.'l @ SLOPE E4SEU(NT OA.6.IHED TO THE CITvor CHULA vIsa PER F'IU': NO. 200J-O~H"'17 RH.' IUY 16, 200J CHULA EXISTINC RrCHT or WAY GR"~TEO TO THE. STA.T€ OF CAL I FOR~ I j, PER FILE NO. 200.1-0804607 REC. I ~/2210J Ro12,152. ~~,~ ro.01'09, \....\!Jl.19 \OD32019 -0,3-011 0.71 .l..C l']61_B5' l'4 6. ~i" PARCEL J PM 18481 , \v I I ~ I I I I I I I I I I I I I I I I I I I I '. I I I I So..t 18'!\6"E. 4!>.?8' \ I I POINT OF TERMINUS ISTA RO"O t,.~lAt~:E. C I Ti CfI,J.,.iE.tl iO ,,, p[R Of (HUlol ~~6.1_0!>74-420 fl\.E.~'/l13/0J Po!:.c. I 12 .00' ..<.;/ ~~'\/ ~/~$ ..,~/. RJ.O ri /HO~' \0": ~ ReJI3.88 6.90' Jll' J8~ l.5a.Jl>' NQ7"V'24"1I 4~. 26' '" '" n :& N'4(I'"3'37''' 64. I~' I I I '0 'v I I '(jj) \-{ I I I I I I II I, 'I 'I \. " " :\ I STATE DEPARTMENT OP TRANSPORTATION DtSTRIC T 1 I r~ .' _0 .~ " . .0 ON ~~ ~., I I , I , I I I I , I I \I /~ r~' ., . ,;~':j " !"':8 o ~:8 ~ ~. 950.92' ~OA-' 2" ,!,~'fI' RolD EXHIBIT "B" OF I I I tJ10I9-1) \ REF. , , EXIST 11-10 RIGftT Of" WAY GR~NTED TO THE ST~TE OF CAUICOP.NIA PER rllf. NO. 2003-0604507 RH. 5/22/0J , I I I I I , I I , I I , I I I , 1 I I I I , I , I , I I 1 , I , , I I I I I I , I I , PM N ~ 1 r- I I I I I I I I , I I I , I I I I CALIFORNIA I , I I I , , , DIRECTOR'S DEED MAP 0032019 - 03 -01 POI~. 52016m RIGHT OF WAY MAP NO. COUNTY ROUTE SO 125- E.A.232302 ~O},lElEfl POST 7.4 SCALE NONE Sl-EET 2 or 2 ATIACHMENT ~b Recording requested by and please return to: City Clerk City of Chula Vista P.O. Box 1087 Chula Vista, CA 91912 This instrument benefits City. only. No fee required > (This s ace or Recorder's use, onl :> > Chula Vista CIP File No. SR-125 Quitclaim Deed FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the City of Chula Vista, a municipal Corporation, does hereby remise, convey and forever Quitclaim to _McMillin Otay Ranch, LLC a Deleware limited liability company, the following real property situated in the City of Chula Vista, County of San Diego, State of California and more particularly described as follows: See Legal Description and Plat designated as Exhibit "A" attached hereto and by reference made a part hereof. This deed is subject to all existing easements. Signed this day of , 2008 THE CITY OF CHULA VISTA Cheryl Cox, Mayor City of Chula Vista (Notary Acknowledgment required for each signatory.) CT Pel. No. 32019-03-02 7-13 This is to certify that the interest in real property conveyed herein to the City of Chula Vista, a governmental agency, is hereby accepted by the undersigned, City Clerk, on behalf of the Chula Vista City Council pursuant to authority conferred by Resolution No. 15645 of said Council adopted on June 5, 1990, and the grantee(s) consent(s) to the recordation thereofby its duly authorized officer. SUSAN BIGELOW, CITY CLERK By: Date: J:ISurveyIST922\Legals\FinalI6 I 7-07 I -09g.doc CT Pel. No. 32019-03-02 7-14 EXHIBIT nA" That portion of land conveyed to the State of California recorded on May 22, 2003 as Document No. 2003-0604607 lying Easterly and Northeasterly of the following described line: Commencing at a 2" iron pipe with disc stamped "R.C.E 22606' marking the Northeast corner of Lot 23 of Rancho Otay, as shown on Record of Survey No. 16504, recorded March 9th, 2000, in the office of the County Recorder of San Diego County, said pipe bearing North 71057'57" East 2640.41 feet from a 2" iron pipe with disc stamped "L.S. 5284' marking the Southwest corner of Lot 10 of Map No. 14432, recorded August 30th, 2002, in the office of said County Recorder; thence along the Northerly line of said Lot 23 South 71057'57" West 22.30 feet to the True Point of Beginning; thence North 63'24'16" West 138.24 feet to the beginning of a 550.03 fcot radius curve concave Northeasterly; thence Northwesterly along said curve through a central angle of 22'39'08" a distance of 217.46 feet to the beginning of a non-tangent 433.15 foot radius curve concave Northeasterly, a radial bearing to said point bears South 44"15'53" West; thence Northwesterly along said curve through a central angle of 02'00'16" a distance of 15.15 feet; thence non-tangent to said curve North 60'45'28" West 30.31 feet to the beginning of a non-tangent 320.41 foot radius curve concave Northeasterly, a radial bearing to said point bears South 46"22'51" West; thence Northwesterly along said curve through a central angle of 09'43'46" a distance of 54.41 feet to the beginning of a 3606.39 foot radius curve concave Northeasterly; thence Northwesterly along said curve through a central angle of 02'30'08" a distance of 157.51 feet to the beginning of a 1913.84 foot radius curve concave Northeasterly; thence Northwesterly along said curve through a central angle of 05"38'03" a distance of 188.19 feet to the beginning of a 6998.01 foot radius curve concave Northeasterly; thence Northwesterly along said curve through a central angle of 01'24'52" a distance of 172.745 feet to the beginning of a non- tangent 3624.21 foot radius curve concave Northeasterly, a radial line to said beginning bears South 65'27'01" West; thence Northwesterly along said curve through a central angle of 03"14'26" a distance of 204.98 feet; thence North 21"18'33" West 204.19 feet; thence North 17"29'08" West 83.50 feet to the beginning of a 1407.94 foot radius curve concave Easterly; thence Northerly along said curve through a central angle of 08"37'48" a distance of 212.07 feet; thence North 08037'59" West 232.59 feet to the Point of Terminus; thence North 09"11'35" West 169.93 feet; thence North 08'22'34" West 56.24 feet; thence North 09"10'03" West 77.41 feet to the beginning of a 137.26 foot radius curve concave Easterly; thence Northerly along said curve through a central angle of 13'32'35" a distance of 32.44 feet; thence North 04'22'32" East 131.80 feet to the beginning of a 284.84 foot radius curve concave Westerly; thence Northerly along said curve through a central angle of 14"16'08" a distance of 70.93 feet to the beginning of a 121.88 foot radius reverse curve concave Easterly; thence Northerly along said curve through a central angle of 19000'59" a distance of 40.45 feet; thence North 09'07'23" East 160.03 feet to the beginning of a 911.54 foot radius curve concave Southeasterly; thence Northeasterly along said curve through a central angle of 14039'39" a distance of 233.25 feet to the beginning of a 2155.33 foot radius curve concave Southeasterly; thence Northeasterly along said curve through a central angle of 04'35'30" a distance of 172.73 feet; thence North 28'22'31" East 120.32 feet; thence North 26'32'21" East 169.27 feet to the beginning of a 593.50 foot radius curve concave Westerly; thence Northerly along said curve through a central angle of 33'33'34" a distance of 347.62 feet to the beginning of a 1262.42 foot radius curve concave Westerly; thence Northerly along said curve through a central angle of 07"09'41" a distance of 157.79 FORM !nf 6.1{B) (RrllBKD 4./96) lH2BXA-3:2019.0J.Q4.DOI1g.OCC 11/14/07 SE 7-15 feet to the beginning of a 36.88 foot radius reverse curve concave Southeasterly; thence Northeasterly along said curve through a central angle of 90039'38" a distance of 58.35 feet; thence non-tangent to said curve North 08018'56" West 45.88 feet; thence along a radial bearing North OS010'13'West 65.00 feet to a point on a 3700.00 foot radius curve concave Southeasterly, said point being on the Southerly line of land described as Parcel 32019-1 conveyed to the State of California recorded on May 22, 2003 as Document No. 2003-0604607; thence Northeasterly along said curve and said State land through a central angle of 03048'57' a distance of 246.42 feet to the Southerly tenminus of that certain course in said State land bearing North 04021'16' West 95.92 feet. Containing 0.25 acres more or less. Coordinates, bearings and distances, as stated hereon, are based on the California Coordinate System of 1983, HPGN EPOCH 1991.35, Zone VI as shown on Record of Survey No. 15374. Multiply distances by 0.9999938 to obtain ground level distances. To convert U.S. survey feet to meters, multiply distances by 0.30480061. There shall be no abutter's rights, including rights of access appurtenant to the above-described parcel of land in and to the adjacent State highway. FORM Rtf 6.1(8) (UVI&IW ,nil 1492~.J:.iI01'.03-02-nod9'OOC 11/14/01 sa 7-16 ell ~ 29 28 IDD32019-03-02! --- -.I I ~ \-.1 OT 10 F 30 ULA VISTA ~ MAP 14432 SIR H ROAD LOT ~\:.- G S<:) ~'Y- ~C '? PARCEL PARCEL 3 PM 18 81 ThiS map has been prepared by me, or under my direct lon, I n conformance with the Profession I Land urveyors' Signoture Dote Act. ..r / .y-/,..r- ~'" E.A. 232302 , cD y---- EXHIBIT "A" SECTION 3 KEY MAP STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION DISTRICT 1 I DIRECTOR'S DEED MAP 0032019-03-02 RIG::':"'O~OWAY POI. 52015m COUNTY ROUTE KUlll(T[R POST SCAlE SO ,,, 6.8 NONE SHEET 1 OF .5 ~D r IRON PIPE ....lIl$C SUa.cPEO "L.S. !l264~ PEf! ROS 15171 !. UAP 104.4.32 S.YI'. CORNER OF 10, !.lAP 144J2 -.J J ~ '!\ '" "'\ . \ ~ , \ " -g. . 00 .' , --- CITY OF CHULA VISTA cD ~ McMilliN olAY RANCH VILLAGE: to MAP NO, I LlL}32 ~o LOT 10 KP G.B .- (32G19<~j) REF. \~<, !)' \,<, PRClf'OSED RIGHT Of WAY 'l,'e.~ \ 'i'>."!>~.~t,"I,'J l>~O()...~ ,.! " .' Q\' ~ "3~"6'I,."J'j; . ",.to, 'l.1"J' ~\ 1(_,1').' '}.';). \E> \'1e ..\Q,' ~\~. '-"'\,,) ~\.....O t:' ,\~ ~\~ .p\~ "&\ EXISTING RIGHT or WA~ GA:ANTED TO THE sTATE: Of CALIFORNIA PER FilE NO. 200J-0604607 REC.' 5122/03 .' PARCEl , PARCEL MAP 18481 ::ij~94~!~6~ l-54.-41' _ SEE O(TA1L-r~~. ...~ { , 32112-1 REF. f--------------~-----------------~--, , , I : , , , , ! .\'..to' t.'i '! I ":J').(h'.>~',~ ~~~i: l \ ~;.~~..." (." ~!~~~~~ to l 6.00' ~5' 23H ~:\ \ 1."51J.oY I I' ,~~~ 1 "'..~'~ 1 l ".....,~.lb_ I , ~~..:"~ -1' : I A.Ol.OO.02.......t/-.(...o : : Lo~.MI' 1"~ ! : "'.1 I L-_______________________________--J RIGHT Of WAY MAP NO. COUNTY ROUTE SO 125 STATE OF ., R"300.00 AoOl'4S'Og- L-40.85' ," ,- '" ~ w '" ~ EXHIBIT "6" DEPARTMI!NT OF TRAN8PORTATlON DISTRICT 11 CALIFORNIA ~,;, DIRECTOR'S DEED MAP 0032019-03- 02 Por. 52015m FD 2" l. P. W\OISC STAMPED ~A.l;. E. 22606M PEA R.O.S. I&~. H. E. CORNER LOT 1J DETAIL N.T.S. E.A.232302 KLOIJ(T(R POST 0." SCAlE NONE 5t*:ET 2 Of' J CITY OF McMJLLJN DrAY RANCH v J LUGE b MAP NO, 14432 tOT to ~o ~~ ...... I .,~ ".1,\et ~.~f>J"''''O.' t:...O~o".<;l . \..... rf:J c";oO. .'> <O~\~? \ \-> PROf'OSED RICillT OF WAY KP 6.8 R-JOO.OO' b."0" 4S'09~ L.~.8S' IOD32019-03-021 0.25 AC (,32019-2 ) REF. CHULA POINT Of TEroAlNUS ,g' .'Z")~' '0' f1,.'~~1'4'8. t:~~'1.01' \ ....~\~...t;. r:,a..\O.,,!, 7'~'~.~ ~:..\~ . ......-, '%I .;';.\~~ l; '\ \ 1~'.l.. ~9' soe" :5'7,~g"( PlRCEt ,) VISTA "..-----~ .. 16'il.o;;Y KOg' \ l' 3~~1l PARCEL MAP 1848) o ~ .. l.at:5'!'N.31' 'Cj) r I' 11 I'LL o c- " ~ R-26-4.S4' Ll.-14'16'08" t-70. i3' NO... 22' J2~E - 131.80' -....... ~ 71.41' S09'IO'OJ"E EXHIBIT "e" STATE OF CALIFORNIA DEPARTMeNT OF TRANSPORTATION DiSTRICT 11 ~, DIRECTOR'S DEED MAP 0032019-03-02 Por, 52015m RIGHT OF WAY y,.o.p NO. COUNTy ROUTE SO 12~ E.A. 232302 KLOurWl. POST 6.8 SCAlE NONE StEEl 3 or ) RESOLUTION 2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING A GRANT DEED IN FEE FOR TWO EXCESS REMNANT PARCELS ADJOINING STATE ROUTE 125 DESIGNATED AS SAN DIEGO COUNTY ASSESSOR'S PARCEL NUMBERS 595-070-52 AND 595-070-53 FROM EASTLAKE DEVELOPMENT COMP ANY AND AUTHORIZING THE CITY CLERK TO EXECUTE ALL DOCUMENTS NECESSARY TO ACCEPT AND RECORD THE GRANT DEED WHEREAS, the Eastlake Development Company owns two parcels of land that were set aside to be used for right-of-way purposes as a pari of the State Route 125 (SR-125) transportation conidor; and WHEREAS, a portion of these two parcels was taken for right-of-way purposes with the majority of the parcels left as excess; and WHEREAS, the alignment of SR-125 has been finalized and the Califomia Department of Transportation (Caltrans) has determined that these excess parcels are not necessary for SR- 125; and WHEREAS, the Eastlake Development Company does not want these remnant parcels, clllTently designated as San Diego County Assessor's Parcel Numbers 595-070-52 and 595-070- 53, and wishes to deed these parcels to the City ofChu1a Vista at no cost NOW THEREFORE, BE IT RESOLVED by the City Council of the City ofChula Vista that it accepts a Grant Deed in fee for two excess remnant parcels adjoining State Route 125 designated as San Diego County Assessor's Parcel Numbers 595-070-52 and 595-070-53, more particularly described in a legal description attached to this Resolution as Exhibit "A", from Eastlake Development Company. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that it authorizes the City Clerk to execute all documents necessary to accept and record the Grant Deed. Presented by Approved as to fonn by ,J., 4 -L .~ cA- -'{t~~\ /0.,;'-.- Bart Miesfeld V Interim City Attorney R. A. Hopkins Director of Engineering 7-20 FOl1Tl No. 1068-2 ALTA Plain Language Commitment EXHIBIT "A" Commitment No.: NCS-345891-SD Page Numben S THOSE PORTIONS OF THE SOUTI-lWEST QUARTER OF SECTION 27 AND OF THE NORTHWEST QUARTER OF SECTION 34 IN TOWNSHIP 17 SOUTH, RANGE 1 WEST, SAN BERNARDINO MERIDIAN, IN THE.01Y OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CAllFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF, LYING EASTERLY OF THE WESTERLY llNE OF THE 120 FOOT WIDE EASEMENT DESCRIBED IN FINAL ORDER OF CONDEMNATION RECORDED APRIL 5,1983 AS DOCUMENT NO. 107938 OF OFFICIAL RECORDS, AND LYING WESTERLY OF THE WESTERLY llNE OF PARCEL MAP NO. 13883, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, JULY 26,1985. EXCEPTING THAT PORTION LYING WITHIN EASTlAKE ORNE AS DEDICATED ON MAP NO. 11403, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY. ALSO EXCEPTING THEREFROM THOSE PORTIONS THEREOF CONVEYED TO THE STATE OF CAllFORNIA BY DEEDS RECORDED MAY 22, 2003 AS FILE NO. 2003-0604639 AND 2003- 0604642, BOTH OF OFFICIAL RECORDS. ALSO EXCEPTING THEREFROM THAT PORTION OF LAND CONVEYED TO THE STATE OF CALIFORNIA BY DOCUMENT RECORDED NOVEMBER 16, 2007 AS INSTRUMENT NO. 2007- 0723402 AND 2007-0723403, BOTH OF OFFICIAL RECORDS. APN: 595-070-52-00 and 595-070-53-00 First American Titfe Insurance Company 7-21 EXHIEIT "A" That portion of land conveyed to the State of California recorded on May 22, 2003 as Document No. 2003-0604607 lying Easterly of the following described line: Commencing at a 2' iron pipe with disc stamped "R.C.E 22606" marking the Northeast corner of Lot 23 of Rancho Otay, as shown on Record of Survey No. 16504, recorded March 9th, 2000, in the office of the County Recorder of San Diego County, said pipe bearing North 71057'57" East 2640.41 feet from a 2" iron pipe with disc stamped "L.S. 5284' marking the Southwest corner of Lot 10 of Map No. 14432, recorded August 30th, 2002, in the office of said County Recorder; thence along the Northerly line of said Lot 23 South 71057'57' West 22.30 feet; thence North 63024'16" West 138.24 feet to the beginning of a 550.03 foot radius curve concave Northeasterly; thence Northwesterly along said curve through a central angle of 22039'08" a distance of 217.46 feet to the beginning of a non-tangent 433.15 foot radius curve concave Northeasterly, a radial bearing to said point bears South 44015'53" West; thence Northwesterly along said curve through a central angle of 02'00'16" a distance of 15.15 feet; thence non-tangent to said curve North 60045'28" West 30.31 feet to the beginning of a non- tangent 320.41 foot radius curve concave Northeasterly, a radial bearing to said point bears South 46022'51" West; thence Northwesterly along said curve through a central angle of 09043'46' a distance of 54.41 feet to the beginning of a 3606.39 foot radius curve concave Northeasterly; thence Northwesterly along said curve through a central angle of 02030'08" a distance of 157.51 feet to the beginning of a 1913.84 foot radius curve concave Northeasterly; thence Northwesterly along said curve through a central angle of 05'38'03" a distance of 188.19 feet to the beginning of a 6998.01 foot radius curve concave Northeasterly; thence Northwesterly along said curve through a central angle of 01024'52" a distance of 172.745 feet to the beginning of a non-tangent 3624.21 foot radius curve concave Northeasterly, a radial line to said beginning bears South 65027'01' West; thence Northwesterly along said curve through a central angle of 03014'26" a distance of 204.98 feet; thence North 21018'33" West 204.19 feet; thence North 17'29'08" West 83.50 feet to the beginning of a 1407.94 foot radius curve concave Easterly; thence Northerly along said curve through a central angle of 08037'48" a distance of 212.07 feet; thence North 08037'59' West 232.59 feet; thence North 09'11'35" West 169.93 feet; thence North 08022'34" West 56.24 feet; thence North 09010'03' West 77.41 feet to the beginning of a 137.26 foot radius curve concave Easterly; thence Northerly along said curve through a central angle of 13032'35' a distance of 32.44 feet; thence North 04'22'32' East 131.80 feet to the beginning of a 284.84 foot radius curve concave Westerly; thence Northerly along said curve through a central an9le of 14016'08' a distance of 70.93 feet to the beginning of a 121.88 foot radius reverse curve concave Easterly; thence Northerly along said curve through a central angle of 19'00'59" a distance of 40.45 feet; thence North 09007'23" East 160.03 feet to the beginning of a 911.54 foot radius curve concave Southeasterly; thence Northeasterly along said curve through a central angle of 14039'39' a distance of 233.25 feet to the beginning of a 2155.33 foot radius curve concave Southeasterly; thence Northeasterly aiong said curve through a central angle of 04035'30" a distance of 172.73 feet; thence North 28022'31" East 120.32 feet; thence North 26'32'21' East 169.27 feet to the True Point of Beginning, said point being the beginning of a 593.50 foot radius curve concave Westerly; thence Northerly along said curve through a central angle of 33'33'34' a distance of 347.62 feet to the beginning of a 1262.42 foot radius curve concave Westerly; thence Northerly along said curve through a central angle of 07'09'41" a distance of 157.79 feet to the beginning of a f'OllH R'" 6-US) {UVISEII 'H96l 1-492RXA.n019-0J-Ol-noa1g.00c n/B/07 SE 7-22 36.88 foot radius reverse curve concave Southeasterly; thence Northeasterly along said curve through a central angle of 90039'38" a distance of 58.35 feet; thence non-tangent to said curve North 08018'56" West 45.88 feet; thence along a radial bearing North 08010'13"West 65.00 feet to a point on a 3700.00 foot radius curve concave Southeasterly, said point being the Point of Terminus and being on the Southerly line of land described as Parcel 32019-1 conveyed to the State of California recorded on May 22, 2003 as Document No. 2003-0604607; thence Northeasterly along said curve and said State land through a central angle of 03"48'57" a distance of 246.42 feet to the Southerly terminus of that certain course in said State land bearing North 04'21'16" West 95.92 feet. Containing 0.71 acres more or less. Coordinates, bearings and distances, as stated hereon, are based on the Califomia Coordinate System of 1983, HPGN EPOCH 1991.35, Zone VI as shown on Record of Survey No. 15374. Multiply distances by 0.999 993 8 to obtain ground level distances. To convert U.S. survey feet to meters, multiply distances by 0.30480061. There shall be no abutter's rights, including rights of access appurtenant to the above-<lescribed parcel of land in and to the adjacent State highway. PORM RW 6.1fB) IRBVISiD 4/96) lU21D1.A-nQU.QJ-Ol-nQd9'.OOC 11/14/07 sa 7-23 . CI F UL'A VISTA cDI EXHIBIT "A" 30 29 28 ----- SECTION 3 OTAY LAKES R-- ROAD \'VC) R--'0- /- GO IDOR LOT 10 PARCEL 2 'tJ-~ '0 s'V ~'0 S'VC PARCEL 3 PM 18 81 KEY MAP This map has been prepared by me, or under my direction, in conformance with the Profes d Surveyors' Date 4J~S- ~,;, STATE OF CALIFORNIA DEPARTIIENT OF lRAN8PORTATlON DISTR!CT 11 Act. NO. lS * Exp. Signatur E,A 232302 DIRECTOR'S DEED MAP 0032019-03-01 RIC~:"O~OWAY POI. 52015m COUNTY ROUTE KlOl.l[TER POST SCAlE SO 125 6.11 NONE St-t::ET 1 Of 2 "-------' cO ~ CITY OF ~!'O ~ , n ~ a;'o . ~ o . ~'" ,,~ ,n I (J2019-2) I<EF. tl.-15.59',.- l.'7....ge. @ 12.00' GENERAL UTILITY AND ACCESS EASEUENf GRANTED TO THE tlTV ~ CHUlA VISTA PER nlE NO. 2ooJ-0514411 !lEe. I MlY 16. 200J @ SLOPE EASEUENT CRAN1(O TO THE CITY Of CHUll VISTA PER I'ILE NO. 200J~057H17 RH.' l.lAY 18, 200J CHULA EXISTING RIGHT OF WAY GRANTED TO HIE STATE OF ClLIFORN1.1. PER FILE NO. 2ooJ-0604607 REC.' ~/22/0) no' 1!\2. ~14" ~ c.o07-Ot.! \,.",!>1.19' lDDJ2019.0J.011 0.71 AC l-Jo/il.8S' l-46.97' PA.I1CEl J PM 18481 ~ I , I , , , I , \ , , , , , , ' I ' soJ.. \8'~6"E "5.~8' \ I ' , , , \ ....")/ \ -/ \ sor,O'5'''(. I lU,D \ "44"4"'E\ so ~~.1':>' !l.JS,88 .0'90' 39'J8" Lolle.36' \ \v , I ISTA \ , \ \ , \ , f\O~O US(~~:E. (Ii'\' GRAHTEO T~ lSa p(R Of C~U\"'" 100J_(}!>14420 fll.( 1'<0. \IVo3 REC.' ~/ , 12 .00 "''-'/ ....'/'/ ~/~(;J ,..,~/ R"I) /ttO!l'\O'\~"'!I POINT OF TERl.4INUS '" '" n '" I \ , '0 \.J I , '(jj) \-{ \ , \ I \ , \, " " " \, " " :\ , ". .' _0 .~ . ' -0 o~ '-':~ STATE DEPARTMeNT OP TRANSPORTATION OISTRICT 11 ~rl' , \ , \.32019-1) \ REF'. , , EXISfHlG RIGHT Of WAT GRANTED TO THE STAlE OF' CALIFORNIA PER rILE NO. 2003-060-4607 RH. 5/2210~ I , , \ I , , , , , \ , , \ \ \ , , \ ,,/ I , I , H010 V'2-4"1I ,,~. 2&' , , I I I , I , I I , I , I , , LO N I r- PM ".~ . .' -:;e'::: . '8 ~ '~:8 ~ ~. \ \ \ , \ , I \ I , , , , , \ , , I \ , , , , , I I \ , , , , , I I 95.92' 1 NO'"11'1V'lI' R-.O \ I I , , , EXHIBIT uau I OF CALIFORNIA DIRECTOR'S DEED MAP DD32019-03-01 POI. 52016m RIGHT OF WAY MAP NO. CQUtHY ROUTE so \25 E.A. 232302 Kl.OllEl[Il POST 7,' SCAlE NONE St-t;:ET 2 Of 2 RESOLUTION 2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE TRANSFER OF PARCEL DO 32019-03-01 AND PARCEL DD 32019-03- 02 WHICH WERE GRANTED TO THE CITY OF CHULA VIST A BY THE CALIFORNIA DEPARTMENT OF TRANSPORTATION (CALTRANS) AS PART OF THE STATE ROUTE 125 PROJECT TO MCMILLIN OTAY RANCH LLC AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE ALL DOCUNIENTS NECESSARY TO TRANSFER THE PARCELS WHEREAS, in 2002, the City of Chula Vista (City) entered into the City of Chula Vista Toll Road Agreement with San Diego Expressway Limited Partnership and Agreement Affecting Real Propetiy to facilitate development of the State Route 125 (SR-125) toll road through the City; and WHEREAS, McMillin Otay Ranch LLC previously transferred Parcel DD 32019-03-01 and Parcel DD 32019-03-02 to the California Depaliment of Transportation (Caltrans) to t8ci IItate the construction of SR-125; and WHEREAS, on September 25, 2007, pursuant to Resolution No.2007-240, the City Council accepted Parcel DD 32019-03-01 and Parcel DD 32019-03-02 in fee from Caltrans in order to finalize the right-of-way for the SR-125; and WHEREAS, the alignment of SR-125 has been finalized and Caltrans has deternlined that these Parcels are not necessary for SR -125; and WHEREAS, the City is obligated to transfer these Parcels to McMillin Otay Ranch LLC. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it approves the transfer of Parcel DD 32019-03-01 and Parcel DD 32019-03-02, more par,tlcularly described in legal descriptions attached to this Resolution as Exhibit "A", which were granted to the City by the Califomia Department of Transportation as part of the State Route 125 project, to McMillin Otay Ranch LLC. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that it authorizes the Mayor and City Clerk to execute all documents necessary to transfer title to these Parcels to McMillin Otay Ranch LLC. Presented by Approved as to fornl by '--{:~ J,- /(;'-~-=* rF~ Bart Miesfeld Interim City Attorney Rick Hopkins Di rector of Engineering 7-26 EXHIBIT "A" That portion of land conveyed to the State of California recorded on May 22, 2003 as Document No. 2003-0604607 lying Easterly and Northeasterly of the following described line: Commencing at a 2" iron pipe with disc stamped "R.C.E 22606" marking the Northeast corner of Lot 23 of Rancho Otay, as shown on Record of Survey No. 16504, recorded March 91h, 2000, in the office of the County Recorder of San Diego County, said pipe bearing North 71057'57" East 2640.41 feet from a 2" iron pipe with disc stamped "L.S. 5284' marking the Southwest corner of Lot 10 of Map No. 14432, recorded August 30th, 2002, in the office of said County Recorder; thence along the Northerly line of said Lot 23 South 71057'57" West 22.30 feet to the True Point of Beginning; thence North 63024'16" West 138.24 feet to the beginning of a 550.03 foot radius curve concave Northeasterly; thence Northwesterly along said curve through a central angle of 22039'08" a distance of 217.46 feet to the beginning of a non-tangent 433.15 foot radius curve concave Northeasterly, a radial bearing to said point bears South 44015'53" West; thence Northwesterly along said curve through a central angle of 02000'16' a distance of 15.15 feet; thence non-tangent to said curve North 60045'28" West 30.31 feet to the beginning of a non-tangent 320.41 foot radius curve concave Northeasterly, a radial bearing to said point bears South 46022'51' West; thence Northwesterly along said curve through a central angle of 09043'46" a distance of 54.41 feet to the beginning of a 3606.39 foot radius curve concave Northeasterly; thence Northwesterly along said curve through a central angle of 02030'08" a distance of 157.51 feet to the beginning of a 1913.84 foot radius curve concave Northeasterly; thence Northwesterly along said curve through a central angle of 05038'03" a distance of 188.19 feet to the beginning of a 6998.01 foot radius curve concave Northeasterly; thence Northwesterly along said curve through a central angle of 01024'52" a distance of 172.745 feet to the beginning of a non- tangent 3624.21 foot radius curve concave Northeasterly, a radial line to said beginning bears South 65027'01" West; thence Northwesterly along said curve through a central angle of 03014'26" a distance of 204.98 feet; thence North 21018'33" West 204.19 feet; thence North 17029'08" West 83.50 feet to the beginning of a 1407.94 foot radius curve concave Easterly; thence Northerly along said curve through a central angle of 08037'48" a distance of 212.07 feet; thence North 08037'59" West 232.59 feet to the Point of Terminus; thence North 09011'35" West 169.93 feet; thence North 08'22'34" West 56.24 feet; thence North 09010'03" West 77.41 feet to the beginning of a 137.26 foot radius curve concave Easterly; thence Northerly along said curve through a central angle of 13032'35" a distance of 32.44 feet; thence North 04022'32" East 131.80 feet to the beginning of a 284.84 foot radius curve concave Westerly; thence Northerly along said curve through a central angle of 14016'08" a distance of 70.93 feet to the beginning of a 121.88 foot radius reverse curve concave Easterly; thence Northerly along said curve through a central angle of 19000'59" a distance of 40.45 feet; thence North 09007'23" East 160.03 feet to the beginning of a 911.54 foot radius curve concave Southeasterly; thence Northeasterly along said curve through a central angle of 14039'39" a distance of 233.25 feet to the beginning of a 2155.33 foot radius curve concave Southeasterly; thence Northeasterly along said curve through a central angle of 04035'30" a distance of 172.73 feet; thence North 28022'31" East 120.32 feet; thence North 26032'21" East 169.27 feet to the beginning of a 593.50 foot radius curve concave Westerly; thence Northerly along said curve through a central angle of 33033'34" a distance of 347.62 feet to the beginning of a 1262.42 foot radius curve concave Westerly; thence Northerly along said curve through a central angle of 07"09'41" a distance of 157.79 FO~ RV i.liB) (klVlSCO 4/96) U92&xA-3:2a1.9-01-o2-no.1g.DOC ll/14/07 sa 7-27 feet to the beginning of a 36.88 foot radius reverse curve concave Southeasterly; thence Northeasterly along said curve through a central angle of 90039'38" a distance of 58.35 feet; thence non-tangent to said curve North 08018'56" West 45.88 feet; thence along a radial bearing North 08010'13"West 65.00 feet to a point on a 3700.00 foot radius curve concave Southeasterly, said point being on the Southerly line of land described as Parcel 32019-1 conveyed to the State of California recorded on May 22, 2003 as Document No. 2003-0604607; thence Northeasterly along said curve and said State land through a central angle of 03048'57" a distance of 246.42 feet to the Southerly terminus of that certain course in said State land bearing North 04021'16" West 95.92 feet. Containing 0.25 acres more or less. Coordinates, bearings and distances, as stated hereon, are based on the California Coordinate System of 1983, HPGN EPOCH 1991.35, Zone VI as shown on Record of Survey No. 15374. Multiply distances by 0.9999938 to obtain ground level distances. To convert U.S. survey feet to meters, multiply distances by 0.30480061. There shall be no abutter's rights, including rights of access appurtenant to the above-described parcel of land in and to the adjacent State highway. roaM RlI' 6-1{BllUV1SIW ./gEi) lU2BX.A-J;201S.0).01-tlOaig,OCC 1l!U/07 sa 7-28 , cp r EXHIBIT "A" F VISTA ULA ell ~ 30 29 28 10032019-03-021 ----- SECTION 3 MAP 14432 SIR H ROAD LOT OT 10 --- IDOR -..J I N \CD :e-<V <;)G .,,1;>- S 0' S<:J PARCEL 2 \ PARCEL 3 PM 18 81 KEY MAP ThiS map has been prepared by me, or under my direct lon, In conformonce with the Profession I Lond urveyors' Act. STATE OF CALIFORNIA DEPARTMENT OF TRA.N8PORTATION DISTRICT 11 ~ ~m No. LS * Exp. Signature DIRECTOR'S DEED MAP 0032019-03-02 RIG~:"O~OWAY Por. 52015m COUNTY ROUTE Kl.OU(T[R POST SCAlE SO 12> 6.8 NONE SHEET 1 OF :s J/~.r- Dote E.A. 232302 - FO 2~ IRON PIPE W\OISC STAMPED "L_ S, 52B4~ PEn HOS 15771 I!. UAP lHJ2 THE S.W. COONER OF LOT 10. ...AP 14432 0:. '!.. 0:. .. -./ I w C) ~ .~ ~ ~ . .' CITY OF CHULA VISTA McMILLIN MAP NO, OTAY RANCH V I LLAGE: b I LJL}32 PROPOSED RIGHT Of WAY 'J.\'e.~ \ ~.~f;t\'I"J [)_O()It..q V' o\'').~ /. q9j'6.It.'t: \ \\'~\ 'l-,';J .' t(.\1').' 1.~"e. t>-\~' lOT 10 .- (.32019-3 ) REF. ,t" .J'C;,t;).J' , .' [~I~TINC RIGHT or WAY GRANTED TO THE S.TATE OF C~Ll~ORNIA PER FILE NO, 200J~O&O~607 REC. I S/2210J (32019-2) REF. ~:5~94~!~6- L-54,41' 31112-1 REF, S60. 4!>' 26"[ .10, JI' ,-----------------------------------, , , I : , , , , ! ,.,' ..~. ~'i '! : .,,.<}....;.,.' .~. tf>>..~t{, : l ,\,--.l;l:..,~ r." ~.~~;\~.t> I to.OO' !IS' 23" t>. t{.'.\{) I l'SO, 03' I ":tr'-"O.1'_ 1 ~..~.~ l .)~,~~ ! ;':>-=?~:"~'1'! I A'Ol' 00'02""'." ,<"-<.,.., I : L-!>.59':(-. I I ".:;1 I L__~______________._______________~ Fe 2" t. P. l'r\CI'!iC STAMPED ~R,C.E. :22606~ flER R,O.S, fllW4 N. E. CORNER LOT 2J DET A I L N.T.S. KP 6.8 '-t, ~~. .,,., 0",--' ;D\~ &,\~ "\~ %~ , cD r ~o ., fl..\49\'1~~' b._OS, 01' L-'1\ . //. R.JOO.OO A'07' "8'09~ Lo40.85' ," ,- '" 1l: '" ~ PARCEL MAP 18481 PARCEl J ~"O E.A. 232302 EXHIBIT "8" STATE OF CALIFORNIA DEPARTMeHT OF TRAN8PORTATION DISTRICT 11 DIRECTOR'S DEED MAP 0032019-03 - 02 POI. 52015m RIGHT OF WAY MAP NO. COUNTY ROUTE SO 125 KL(>>,l[lER POST ... SCAlE NONE s.€ET 2 OF J ..... I "w lJ,.1~!t ~.~t ,ill , tlo.O~...Cli!> , V'l of) 0,,;;0. .., KP 6.B CITY OF CHULA VISTA McMILLIN OrAY RANCH V J LLAGE b MAP NO, 14432 lOT 10 ~o PROPOSED RieHl ($ WAY RoJOO.OO' tt,.07' 4S'09H L.40.85' 10032019-03-021 0.25 AC POINT Of TtRl.lIN\JS (32019-2) REF. ,.' .'l"')~' g" fl,.\-'09~'r.4'3" boaB.. co' 1...'1\.... , ..~~...~ ~~X'Y' ~~\~."tt t:..\~ . .y", 13 .,r~l\~ r, ~ '\ \ 232.~9' '50e" :!I1'~9"(, P.lRCEl J PARCEL MAP 18481 .,..----- .. .boJ\'!l1'Jg.. " L.tJ~.J7' cp ~ L u " ~ R"2M.e.' 6.'14"6'08" L'70.93' NO"'22'J2~E" ...--- IJ1.80' -..... '69.'it~' "09' \1' J~"- Rot.H.2t>' .o.oIJ'32'3.5" l-J2. "'... J2112-2 R(F. ~,,< E.A.232302 77.41' SOli" 10' OJ"f: EXHIBIT "e" STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION DISTRICT 11 DIRECTOR'S DEED MAP 0032019-03-02 Por. 52015m RIGHt OF WAY M.&P NO. COUNTY ROUTE SO 125 Kl.OU(T[R POSI 6.8 SCAlE NONE SHEET "' or J CITY COUNCIL AGENDA STATEMENT 07/15/2008 1tem---B- SUBMITTED BY: REVIEWED BY: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AMENDMENT TO THE OCTOBER 2006 AGREEMENT BETWEEN THE CITY AND THE CALIFORNIA DEPARTMENT OF CORRECTIONS AND REHABILITATION, APPROVING A NEW AGREEMENT WITH THE CALIFORNIA DEPARTMENT OF CORRECTIONS AND REHABILITATION FOR THE IN- CUSTODY DRUG TREATMENT PROGRAM AND APPROPRIATING $54,642 TO THE FISCAL YEAR 2008/2009 POLICE BUDGET BASED UPON UNANTICIPATED REVENUES. CHIEF OF POLIC~ CITY MANAGER C;") +; r f)/<,6j ITEM TITLE: 4/5THS VOTE: YES X NO SUMMARY On October 24, 2006, the Council authorized the Mayor to execute an agreement with the California Department of Corrections and Rehabilitation for the In-Custody Drug Treatment Program. This program is intended for parolees who have committed violations as a result of drug or alcohol related dependency and/or have a need for a period of confmement and treatment to get their substance abuse under controL A new agreement has been created to increase the daily jail rate for each parolee and increase the number of participants. ENVIRONMENTAL REVIEW This proposed activity has been reviewed for compliance with the California Environmental Quality Act (CEQA) and it has been determined that the activity is not a "Project" as defmed under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in 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 That Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not Applicable. 8-1 DISCUSSION Since December 2006, the Chula Vista Police Department has been hosting the In-Custody Drug Treatment Program (ICDTP) in its holding facility. Because of this involvement, the Department has been assisting the criminal justice system to reduce overcrowding in j ails as well as providing much needed treatment programs in order to reduce the recidivism rate for criminals with dependency problems. ICDTP is intended for parolees who have committed violations as a result of drug or alcohol related dependency and/or have a need for a period of confinement and treatment to get their substance abuse under control. The program's components include a 60- day in-custody, educationally-based drug treatment program, immediately followed by a mandatory 30-day residential aftercare treatment program, which then transitions to a 60-day community-based treatment phase. The parolees in this program are non-violent offenders. The Department's involvement ofICDTP is the initial60-day in-custody phase. 07/15/2008, Item 8 Page 2 of2 The current ICDTP agreement allows the State to house as many as 24 parolees at any given time at a daily jail rate of $71.57. The State has agreed to execute a new agreement to increase the daily jail rate to $77.17 for each parolee and increase the number of participants from 24 to 36. This new agreement will be effective July I, 2008 and will supersede the current agreement. Additionally, the increase in the daily jail rate is retroactive to July I, 2007 and thus an amendment to the current agreement is also required. The amendment will allow the Police Department to invoice the California Department of Corrections and Rehabilitation for the difference between the new and old daily jail rate as a retroactive rate adjustment for the period of July I, 2007 to June 30, 2008. This retroactive adjustment will result in one-time revenue of approximately $43,000. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found a conflict exists, in that City Council Member Steve Castaneda has property holdings within 500 feet of the boundaries of the property which is the subject of this action. FISCAL IMPACT The maximum allowed cost of the new ICDTP agreement is $2.7 million over three fiscal years. The term of the new agreement is July I, 2008 through June 30, 2011. Due to the increase of parolees participating in ICDTP, there will be a corresponding increase in expenses to operate the program. There will be an increase in prisoner food costs of $42,642, medical services of $8,000 and routine jail supplies of$4,000, which will all be fully offset by the increased revenue, resulting in no net fiscal impact to the General Fund. The contract amendment to increase the daily jail rate will generate one-time revenue in the amount of$43,000, resulting in a positive fiscal impact to the General Fund. ATTACHMENTS A. Agreement Number C08.052 with the California Department of Corrections and Rehabilitation B. Amendment Number 1 to Agreement Number P06.40l3 with the California Department of Corrections and Rehabilitation Prepared by: Edward Chew, Administrative Services Manager, Police Department 8-2 RESOLUTION NO. 2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AMENDMENT TO THE OCTOBER 2006 AGREEMENT BETWEEN THE CITY AND THE CALIFORNIA DEPARTMENT OF CORRECTIONS AND REHABILITATION, APPROVING A NEW AGREEMENT WITH THE CALIFORNIA DEPARTMENT OF CORRECTIONS AND REHABILITATION FOR THE IN-CUSTODY DRUG TREATMENT PROGRAM AND APPROPRIATING $54,642 TO THE FISCAL YEAR 2008/2009 POLICE BUDGET BASED UPON UNANTICIPATED REVENUES. ( WHEREAS, on October 24, 2006, the Council approved an agreement with the California Department of Corrections and Rehabilitation for the In-Custody Drug Treatment Program; and WHEREAS, this program is intended for parolees who have committed violations as a result of drug or alcohol related dependency and/or have a need for a period of confinement and treatment to get their substance abuse under control; and WHEREAS, a new agreement has been created to increase the daily jail rate for each parolee and to increase the number of participants; and WHEREAS, this new agreement will be effective July 1,2008 and will supersede the 2006 agreement; and WHEREAS, before the new agreement is in place, the California Department of Corrections and Rehabilitation seeks to amend the 2006 agreement to address the increased daily jail rate; and WHEREAS, the amendment will allow the Police Department to invoice the California Department of Corrections and Rehabilitation for the difference between the new and old daily jail rate as a retroactive rate adjustment for the period of July 1,2007 to June 30, 2008. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it approves an amendment to the October 2006 agreement between the City and the California Department of Corrections and Rehabilitation, approves a new agreement with the California Department of Corrections and Rehabilitation for the In-Custody Drug Treatment Program and appropriate $54,642 to the Fiscal Year 2008/2009 Police budget based upon unanticipated revenues. Presented by: Approved as to form by: ^, . , DV\... -'2 ~; ~ /t..__~_-"""l/c /7"1 l/ . ._,--(~-~'{~~~ Richard P. Emerson Police Chief Bart Miesfeld Interim City Attorney 8-3 THE ATTACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALL Y SIGNED UPON APPROVAL BY THE CITY COUNCIL (1 A f\ -J- ! ..-/ .-Z.~ /~ jl)/~ /~.----- Bart C. Miesfeld {I Interim City Attorney Dated: 7/1 I J 't / I First Amendment to the 2006 Agreement between the California Department of Corrections and Rehabilitation and The City of Chula Vista for The In-Custody Drug Treatment Program 8-4 A~Vv'-~+ ~ ATTACHMENT A S-:-ATE OF CAliFORNIA - DEPARThlENT OF CORRECTIONS AND REHABILlTATlON ARNOLD SCHWARZENEGGER. GOVERNOR DIVISION OF SUPPORT SERVICES OFFICE OF BUSINESS SERVICES 1515 S Street. Sacramento. CA 95814 P Q. Box 942883 Sacramento, CA 94283-0001 April 16, 2007 City of Chula Vista Attn: Lt Lon Turner 315 Fourth Avenue Chula Vista, CA 91910 Oear Lt Turner: AGREEMENT NUMBER: C08.052 SERVICES: IN-CUSTODY DRUG TREATMENT PROGRAM Enclosed are four (4) copies of the Standard Agreement (STO 213) for the above-referenced Agreement All four (4) copies of the STO 213's must be signed with an original signature by an authorized representative You will note that this Agreement does not include a hard copy of the General Terms and Conditions for Private Contractors (Exhibit C), which is incorporated into the Agreement by reference only on the STO 213 Exhibit C may be downloaded from the Internet at www.ols.dos.ca.oov/standard+lanouaoe and printed for your files. If you do not have Internet access, you may request a hard copy of the Exhibit C by contacting the contract analyst at the telephone number listed in the last paragraph of this letter. Please have all STO 213s dated and signed with an original signature by an authorized representative All documentation must be returned to the California Department of Corrections and Rehabilitation (CDCR), Office of Business Services (OBS), at the address on this letterhead Please use the address below for overnight or hand delivery. California Department of Corrections and Rehabilitation Office of Business Services Attention. Joyce Stevens 7667 Folsom Blvd, Suite 10 1 Sacramento, CA 95826 If not previously submitted, copies of the following document(s) are necessary for approval of this Agreement . Board Resolution . Certificate of Insurance . Contractor Certification Clauses (CCC) . STD 204, Payee Data Record . OBS 4002, Subcontractor/Consultant List . COCR Form 1786 - DVBE Participation in Exempt Contracts 8-5 BOARD RESOLUTION Please provide a certified copy of the board resolution, order, motion, or ordinance of the local governing body, which by law has authority to enter into this Agreement, authorizing execution of the Agreement as required in the Contractor Certification Clauses. CERTIFICATE OF INSURANCE Self-insured public entities MUST provide proof of self-insurance, which includes Commercial General Liability, which carry a minimum of $1,000,000 per occurrence for bodily injury and property damage liability combined CONTRACTOR CERTIFICATION CLAUSES Enclosed for your convenience is a copy of the Department of General Services (DGS), Contractor Certification Clause (CCC). An original signed copy of page 1 of the CCC's must be returned. Failure to submit a signed CCC will delay approval of this Agreement The CCC's can also be downloaded from the Internet at www.ols.dos.ca.oov/standard+lanouaqe STD 204 - PAYEE DATA RECORD Contractors shall comply with State and Federal Reportable Payment Identification and Classification Requirements by fully completing the enclosed Payee Data Record (STD 204) as required in the Contractor Certification Clauses. The STD 204 must correspond with the Contractor's name exactly as written on the STD 213 OBS 4002 - SUBCONTRACTOR/CONSULTANT INFORMATION In order for the CDCR to be in compliance with Section 14835 et seq of the California Government Code, Contractors must identify all subcontractors and consultants that will be used in the performance of this Agreement on the enclosed Subcontractor/Consultant list Contractors must further identify on the list those subcontractors and consultants that will be used in the performance of this Agreement that are also qualified Small and Micro Business Enterprises The completed Subcontractor/Consultant list must be completed and returned to the Office of Business Services CDCR is mandated to complete a Small Business Participation Report that includes each Contractor doing business with it It is therefore important for reporting purposes to know whether your firm is considered a Small or Micro business, as those terms are defined in the California Government Code Failure to complete the Prime Contractor information section on the enclosed Subcontractor/Consultant List will result in the classification of your business as a large business 8-6 CDCR 1786 - DVBE Participation in Exempt Contracts The State has waived the DVBE requirement for this Agreement However, the State is committed to achieving legislatively established goals for the participation of Disabled Veteran Business Enterprises (DVBEs) in all state contracting and seeks to use certified DBVE business whenever possible. Therefore, the State requests your voluntary participation in reporting any certified DVBEs, including yourself, that will be used in the performance of this Agreement A CDCR 1786 (DVBE Participation in Exempt Contracts) is enclosed to assist you in reporting certified DVBE participation levels This Agreement is not valid unless and until approved by the Department of General Services, or, under its authority the CDCR The State has no legal obligation unless and until the contract is approved. Any work commenced by the Contractor prior to approval may be considered voluntary and the Contractor may have to pursue claim for payment by filing with the Victims Compensation and Government Claims Board When this Agreement is fully approved, an original will be forwarded to you. If you have any questions or need assistance, do not hesitate to contact Joyce Stevens at (916) 229<-5078 Sincerely, ~~ JOYC~TEVENS Contract Analyst Office of Business Services Enclosure(s) 8-7 ST." TE OF CALIFORNIA STANDARD AGREEMENT SID 213 (Rev 061031 AGREEMENT NUMBER C08.052 I REGISTRA nON NUMBER This Agreement is entered into between the State Agency and the Contractor named below: STATE-AGENCY'S NAME CALIFORNIA DEPARTMENT OF CORRECTIONS AND REl-IABILlT A TlON CONTRACTOR'S NAME 2. CITY OF CHULA VISTA The term of this July 1,2008 Agreement is: The maximum amount $2,704,038 of this Agreement is: Two Million Seven Hundred Four TllOlIsand Thirty Eight Dollars 4 The parties agree to comply with the terms and conditions of the fallowing exhibits, which are by this reference made a part of the Agreement Exhibit A - Scope of Work Exhibit B - Budget Detail and Payment Provisions Exhibit B -1 - Bid Proposal Exhibit B -2 - Rate Sheet Exhibit C' - General Terms and Conditions Exhibit -0 - Special Terms and Conditions (Attached hereto as part of this agreement) Exhibit E - Additional Provisions Attachment 1 - Monthly Invoice Attachment 2 - Register of Participation through June 30, 2011 3 7 pages 3 pages 1 page 1 page GTC 307 10 pages 2 pages 1 page i page Items shown with an Asterisk (*), are hereby incorporated by reference and made part of this agreement as if attached hereto These documents can be viewed at www.o}s,dgs ca gov/Standard+Language IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto. CONTRACTOR California Department of General Services Use Only CONTRACTOR'S NAME (if other then an individual. stale whelher a corporation. partnership. etc) CITY OF CHULA VISTA BY (Aulhorized Signature) I OATE SIGNEO(l)" """!P') 15 PRINTED NAME AND TITLE OF PERSON SIGNING CHERYL COX, MAYOR ADDRESS 315 Fourth A vellue, Chula Vista, CA 91910 619-476-2452 STATE OF CALIFORNIA AGENCY NAME CALIFORNIA DEPARTMENT OF CORRECTIONS AND REHABILlT A nON BY (AUJhot7zed Signature) I DATE SIGNED(T)1I /JIll '.Ll'l:) tK PRINTED NAME AND TITLE OF PERSON SIGNING o Exempt per: ST ACY LOPEZ-KASSIS, CHIEF, SERVICE CONTRACTS SECTION ADDRESS POBox 942883 Sacramento, CA 94283-000 I 8-8 City of Chula Vista California Department of Corrections and Rehabilitation SCOPE OF WORl( Agreement No. C08.052 Exhibit A IN-CUSTODY DRUG TREATMENT PROGRAM I. OBJECTIVE The City Jail Facility is designated as an In-Custody Drug Treatment Program (lCDTP) pursuant to provisions of Health and Safety Code (l-l&S) Section 11560 When the Division of Adult Parole Operations (DAPO) conclude that there are reasonable grounds for believing that a parolee is addicted to, habituated to, or is in imminent danger of addiction to controlled substances or alcohol, the parolee may be placed in the lCDTI' City Jail Facility in a non-suspended status under H&S Section 11561 (male) or 11563 (female) for a period not to exceed 90 days. Under the terms of this Agreement, the City Jail Facility will provide secure housing for up to 60 days for lCDTP parolees while participating in intensive substance abuse treatment II. CONTRACT PROVISIONS The City agrees to provide up to 32 male beds per day commencing July I, 2008 through June 30, 2011. The City agrees to staff the facility to ensure that ICDTI' parolees are supervised and provided program services, to the extent and in the same manner as City inmates. The City will, whenever possible, make a best effort to house all lCOTP parolees within the immediate proximity of the ICDTP STAR classroom. The City has the authority, when deemed necessary, to commingle ICDTP parolees with the City general population The City agrees to make all [COTP parolees available for their scheduled program location at the City Jail Facility on a timely basis, and within prescribed timeli'ames. Costs for such supervision and services me included in the negotiated daily per diem rate. The City agrees to operate the City Jail in compliance with minimum standards lor local detention facilities established by the COlTections Standard Authority pursuant to Penal Code (PCl 6030. Failure to meet minimum jail standards may result in termination of tbis Agreement, or the State withholding all or part of payments due the City for services provided under this Agreement, but only if the City fails to make a reasonable effort to con'ect noted deficiencies. The State will give consideration to Cit)' resources available lor such purposes, with COlTections Standards Authority making the Jinal determination. A. Administrative Requirements All COCR, STAR ar1d SASCA staff shall comply with the City Jail Facility's policy and procedures to include security clearanees, oftice rules, etc. The City agrees to faeilitate security clearances for access as required to designated office and classroom areas~ -1- 8-9 City of Chula Vista California Department ofCon"ections and Rehabilitation SCOPE OF WORK Agreement No C08052 Exhibit A 1" Administrative Offices The City agrees to provide offices and other space necessary to accommodate COCR and STAR staff performing administrative, liaison and programming activities. Classrooms and ofiice space must be adequately sized and acceptahle to the State, equipped with operational heating and air conditioning, electrical, telephone, and data line capability. The COCR and/or STAR contractor will provide office furnishings and equipment for CDCR/ST AR staff At no additional cost to the State, the City will provide access to City Jail Facility phone lines and janitorial services for said City offices occupied by CDCR/ST AR stafT The State and/or STAR contractor will pay local, long distance and one-time set up telephone and data line charges incurred. The City will facilitate establishment of telephone service company(s) direct billing to the State and/or STAR contractor for actual phone line charges. 2. STAR Classroom Space Requirements The City agrees to provide a dedicated classroom sufficient to accommodate one (I) STAR program daily for every 32 parolee participants. The classroom setting will be a minimum size of 20' x 20' and contain space for one instructor WOl kstation, round top table and file cabinet An area with secured storage space for supplies and equipment wiIJ be made available in the near proximity of the classroom. B. Program Requirements I. ICOTP Parolee Assignment and Booking Services a. The CDCR wiIJ retain the right to select and assign ICDTP parolees to the City Jail Facility. b. The City retains the light to exclude specific individual ICDIP parolees at the time of assiglID1ent to the City Jail Facility for safety/security and/or medical issues requiring non-routine medical services. c" The City agrees to provide full booking services of lCDTP parolees at the City Jail Facility. The City wiIJ photograph each lCDTP parolee displaying applicable detail and, upon request, provide a copy of the photograph and booking demographics to CDCR. The City further agrees to provide the COCR access to rCDTP parolee files, inclllding the State's parolee files maintained in the Automated Jail Information System CAJIS), or equivalent At the time of booking, the CDCR will designate the rCDTP parolee's primary charge for booking as H&S Section 11561 - PC Section 3056 (male) or H&S Section 1 1563 - PC 3056 (female). - 2- 8-10 City of Chula Vista California Department of Corrections and Rehabilitation SCOPE OF WORK Agreement No C08052 Exhibit A 2. Visiting Programs Visiting will be provided to lCDTP parolees to the extent and in the same manner as it is to City hIDlates. 3. Canteen/Trust Accounts lCDTP parolees will have the right to access such accounts and make canteen purchases to the extent and in the same manner as it is to City inmates, providing such access does not interfere with, or disrupt, agreed upon STAR programming Profits from canteen purchases will remain in the City Inmate Welfare Fund. 4. [CDTP Parolee Propertv The City will maintain ICDTP parolee property to the extent and in the same manner as City ilIDlates. 5. Recreational and Religious Programs The City will provide recreational and religious program services lor ICDTP parolees to the extent and in the same manner as provided to City inmates 6. Medical Care The City agrees to provide all required routine and non-routine medical care for lCDTP parolees housed at the City Jail Facility in the same manner as to City inmates. The City agrees to hold the State, its officers and employees, harmless lor any and all medical treatment approved by the City for any ICOTP parolee. 7. lCDTP Parolee Discipline lCDTP parolees assigned to the City Jail Facility pursuant to this Agreement will be required to follow all applicable rules established by the Facility Commander. The administration of discipline to ICDTP parolees and any resultant appeals by parolees will be in accordance with the pIOvisions in place for City inmates. The City will provide the State's Representative with a copy of reports for all disciplinary actions related to ICOTP parolees 8. Gun Storage The City shall provide storage at the City Jail Facility for firearms brought to the facility by State employees on any official State business. 9. ICDTP Parolee RecePtion and Release The CDCR agrees to deliver and receive all ICDTP parolees I-ro111 tbe City Jail Facility_ Typically, lCDTP parolee booking and release occurs Monday through Friday 8:00 AM to 5:00 PM This Agreement shall not preclude delivery of ICDTP parolees prior to or after normal hours by the CDCR. lCDTP parolees shall be released from tbe City Jail Facility in the same manner as City inmates. lCOTP parolees must be waiting in Reception and Release, processed and ready for departure in a timely manner. - 3 - 8-11 City of Chula Vista California Department of Corrections and Rehabilitation SCOPE OF WORK Agreement No. C08.052 Exhibit A 10. Limitation on Authority to Release The City agrees that ICDTP parolees assigned to the City Jail Facility shall be released only upon receipt of written order from the State's Representative Such release orders shall result from the removal onhe State's parole hold a. Non-Routine Medical Care If an ICDTP parolee requires non-routine medical services while in the care of the City, excluding injuries sustained at the City Jail Facility, the State retains the right to release the parole hold and/or remove said parolee from the care of the City. The City must provide verbal notification to the State's Representative within 24 hours of detem1ining the non-routine medical need. If the State elects to continue the parole hold for the ICDTP parolee requiring non-routine medical services, the City may submit a written request, via e-mail, fax, US Postal Service or personal delivery, to the State's Representative for release of the ICDTP parolee from the care of the City. The State shall release the ICDTP parolee from the care of the City within 48 hours of receiving written request. The written request to the State must provide the specific nature and level of medical services required Under no circumstances shall the City delay or withhold emergency medical services while awaiting the State's disposition of such notice. Failure of the City to submit a written request for the release of the ICD fl' parolee from the care of the City shall nullify the obligation of the State to remove the parole hold or transfer responsibility of said parolee from the City to the State. [n the event the parole hold is continued and the State receives proper notice, but is unable to remove the parolee, the State shall reimburse the City for the authorized cost of non-routine medical care incun'ed by the City beyond 48 hours of notice. The State's obligation for reimbursements under tcrms of this contract does not extend beyond the City Non-routine medical services of a non-emergency nature which necessitate continuing medical care beyond 48 hours of notice require written pre-authorization tiom the State b. ICDTP Parolee Behavior If the City determines that an ICDTP parolee's behavior is unmanageable. the City may submit a written request to the State's Representative that the ICDlP parolee be released from the care of the City. Upon receiving such request, the State shall remove the ICDTP parolee from the City Jail Facility within two (2) working days. c. Completion of 60-Dav ICDTP/ST AR Program Upon completion of the 60-Day ICDTP/ST AR Program, the State shall order the release of the ICDTP parolee from the care of the City A SASCA representative will be assigned to receive and transport the leDTP parolee from the City to a Phase II community-based program. - 4- 8-12 City of Chula Vista California Department of Corrections and Rehabilitation SCOPE OF WORK Agreement No C08 052 Exhibit A d. Operation Review The Facility Commander and State's Representative will meet as needed to discuss and resolve mutual administrative concerns and operational problems An agenda will be prepared and items discussed will be promptly noted in meeting minutes with copies provided to the State. If the City and State cannot resolve mutual disagreements related to direct parolee operational problems, the City will make the final decision III. CONTRACT DEFINITIONS Bed Day - each full consecutive 24-hour period following time and date of actual placement that a State parolee is housed in the City Jail Facility pursuant to this contract. CDCR - California Department of Corrections and Rehabilitation, its agents and employees City - the City of Chula Vista, its agents and employees City Jail Facility - the Chula Vista Police Department, Main Jail Facility City's Representative - the Chula Vista Police DepaJ1ment, its agents and employees. Contracted Bed - all bed space for housing of ICDTP parolees within the City Jail Facility. Contractor - the City. DAPO - the CDCR, Division of Adult Parole Operations, its agents or representatives DARS - the CDCR, Division of Addiction and Recovery Services, its agents or representatives. Facility Commander - the employee in charge of Chula Vista Police Department, Main Jail Facility, within which the contracted beds are located ICDTP - In-Custody Drug Treatment Program as defined in I-I&S Section I] 561 (male) and 11563 (female). ICDTP Parolee - any person under the jurisdiction of the COCR returned to physical custody pursuant to an order under H&S Section 1] 561 (male) or 1 1563 (female). Non-Routine Medical Services - medical services provided to an individual for a speciJic condition or specialized care, such as those that typically require a specialized physician - 5 - 8-13 City ofChula Vista California Department of Corrections and Rehabilitation SCOPE OF WORK Agreement No. C08.052 Exhibit A Per Diem Rate - the amount payable by the State for services rendered by the City for eaeh ICDTP parolee housed during each bed day. Routine Medical Services - medical services that are normally provided in a City Jail Facility. Routine medical and dental costs include, but are not limited to physical and dental examinations received by inmate when they arrive at a City jail, distribution of over- the-counter drugs (i.e., aspirin and cold/cough medicine) and medical and dental supplies such as band-aids or tape and gauze for cuts and bruises, dental floss, toothpaste and tooth brushes. Custodial detoxification services shall also be included in ICDTP Routine Medical Services and shall be consistent with those provided to an inmate in a City Jail F aeility requiring detoxification services. State - the State of California, its agents and employees State's Representative - the ICDTP Parole Agent II or designee assigned to perfoml overall administrative liaison and coordination duties between the State and the City. Substance Abuse Services Coordination Agency (SASCA) - There are four regional SASCAs, aligned with the four parole regions that ptOvide case management services within the ICDTP facility in which the parolee participates The SASCAs arc also responsible to have available community-based providers who deliver the residential services to the parolee during Phase II, 3D-day residential aftercare treatment. Substance Abuse Treatment and Recovery I'rogl'am (STAR) - an educational based, 60-day rehabilitation program for adult offenders that offers an alternative to traditional sanctions and used in conjunction with an ICDTP during Phase I IV. CHULA VISTA POLICE DEPARTMENT'S CONTACT INFORMATION Notices, correspondence or communication relating to this agreement should be directed to: Lieutenant Lon Turner Facility Commander City of Chula Vista Main Jail Facility 315 Fourth Avenue Chula Vista, CA 91910 Phone: (619) 691-5228 Fax: 619-476-2390 - 6- 8-14 City of Chula Vista California Department of Corrections and Rehabilitation SCOPE OF WORK Agreement No. C08.052 Exhibit ^ V. CDCR CONTACT INFORMATION Should questions or problems arise during the term of this contract, the contractor should contact the following offices: BillinglPayment Issues: . Headquarter Accounting Office Phone Number: (916) 327-0283 FAX Number: (916) 445-2248 Scope of ServieelPerformllnce Issues: . Division of Adult Parole Operations Phone Number: (916) 445-6200 FAX Number: (916) 327-0785 . Division of Addiction and Recovery Services Phone Number: (916) 323-6125 FAX Number: (916) 445-4439 General Contract Issues: . Office of Business Services Phone Number: (916) 229-5000 FAX Number: (916) 229-5127 - 7 - 8-15 City of Chula Vista California Department of Corrections and Rehabiiitation BUDGET DETAIL AND PAYMENT PROVISIONS Agreement No COB 052 Exhibit B 1. A!!reement Compensation The State agrees to reimburse the City for bed space as follows: The State agrees to compensate the City for the actual number of beds occupied by ICOTP parolees based on a contract per diem rate for the period of July 1, 2008 through June 30, 2011. Any and all services provided by the City to the State are included in the contract per diem rate. The contract per diem rate shall be based on the Local Assistance Program, Daily Jail Rate (DJR) for subject City Jail Facility, approved by the CDCR for the period in which services are provided, and shall include applicable booking fees and non-routine medical services. The State shall not reimburse the City for more than 60 bed days per ICOTP parolee. Note: Since lCDTP parolees ale usually in custody for only part of the first day, and a part of the last day, the City shall be reimbursed for the first day only. If a charge for both the first and last day is submitted, justification for this charge must accompany the claim. The min::imum contract per diem rate for services provided is presently set at $77 .17 per day. The maximum contract per diem rate for services provided during FY 200911 0 and FY 2010111 will be the same as the maximum OJR as detennined annually by the Department of Finance. Exhibit B and Exhibit B-2 will be amended annually to reflect the new maximum contract per diem rate. a. Contract Per Diem Rate Requirements The State requires that the City have an approved DJR for the City Jail Facility to use in establishing the contract per diem rate. DJR guidelines are outlined in the Daily Jail Rale Manual for Reimbursements under Seelion 40165 of Ihe PenCil Code, Seclion 1776 of Ihe Welfare and 1nslilutions Code (DJR) MClnual, which is distributed annually to participating cities and counties by the CDCR Fisca] Business Management and Audit Unit. The contract per diem rate for this Agreement shall be limited to the same cost factors allowed for the DJR calculation, with the exception of applicable booking Fees and non-routine medical services and to the extent that the contract per diem rate may not exceed the maximum DJR. b. Annual Contract Per Diem Rate Reviews In accordance with the Per Diem Rate Requirements, as defined above, and the DJR Manual, the City Jai] Facility must submit annual DJR Proposals, to the CDCR no later than March] preceding each new fiscal year. Guidelines for preparation and submittal of annual DJR Proposals are detailed in the DJR Manua] applicable to each Jiscal year and subject to update and/or revision. A new per diem rate may be negotiated by the City and the State and shall be based on a weighted average of actual bed usage for allowable expenditures incurred by the City at the City Jail Facility divided by the total inmate bed days (Average Daily Population x the total number of bed days) in the prior] 2 months. Until a new per diem rate is negotiated between the City and the State, the State shall reimburse the City at the currently approved contract rate. During this time the City must 8-16 City of Chula Vista California Department of Corrections and Rehabilitation BUDGET DETAIL AND PAYMENT PROVISIONS Agreement No C08 052 Exhibit B continue to accept all State ICDTP parolees at the City Jail Facility. If the new rate is higher than the previous rate, the State agrees to reimburse the City the difference between the new rate and the previous rate for bed days already reimbursed subsequent to the approved rate change. If the new rate is lower than the previous rate, the City agrees to a per diem rate adjustment by an amount sufficient to effect full recovery of overpayments to the State by the end of the current fiscal year, or a lump sum payment reimbursement to the State, at the City's option. 2. lnvoicine: and Payment The City shall submit monthly in arrears to the State, no later than 45 days following each monthly billing period, a Monthly Invoice (AttaclU11ent 1) and a Register of Participation (Attachment 2), attached hereto and by reference made a paJ1 of this contract. Each form must have the original signature of the Facility Commander. The original signed forms and two copies of the invoice for housing ICDTP parolees must be sent to: California Department of Corrections and Rehabilitation (CDCR) Division of Addiction and Recovery Services Attention: Invoice Unit P.O. Box 942883 Sacramento, CA 94283-000 I The City shall sequentially number each monthly invoice submitted. Unless otherwise provided for under Section 926.10 of the California Government Code, payment will bc remitted within 60 calendar days of receipt, unless City is notified of a billing dispute within 30 days of receipt. 3. Bude:et Contine:ency Clause a. It is mutually agreed that if the California State Budget Act for the currcnt fiscal year and/or any subsequent fiscal years covered under this Agreement does not appropriate sufficient funds for the program, this Agreement shall be of no further force and effect In this event, the State shall have no liability to pay any funds whatsoever to Contractor, or to furnish any other considerations under this Agreement, and Contractor shall not be obligated to perforn1 any provisions of this Agreement. b. If funding for the purposes of this program is reduced or deleted for any fiscal year by the California State Budget Act, the State shall have the option to either cancel this Agreement with no liability occurring to the State, or offer an Agreement amendmcnt to Contractor to reflect the reduced amount. 2 8-17 City of Chula Vista California Department of Corrections and Rehabilitation BUDGET DETAIL AND PAYMENT PROVISIONS Agreement No C08 052 Exhibit B 4 Promot Payment Clause Payment will be made in accordance with, and within the time specified in, Government Code Chapter 4.5, commencing with Chapter 927. Payment to small/micro businesses shall be made in accordance with and within the time specified in Chapter 4.5, Government Code 927 etseq. 5. Claims The State's monetary obligation in subsequent years is subject to and contingent upon the availability of funds appropriated for the purpose of this Agreement. ]n the event fLlI1ding is not available and the City has provided services in good faith, the CDCR agrees to support the City's filing of a California Victim Compensation and Government Claim. 3 8-18 City of Chula Vista California Department of Corrections and Rehabilitation (CDCR) CONTRACTOR RATE REQUEST Agreement No cas 052 Exhibit B-1 IN CUSTODY DRUG TREATMENT PROGRAM (ICDTP) The contractor hereby agrees to provide all labor, materials, supplies, licenses, permits, equipment and transportation necessary to perfonm all services required for the foregoing titled work in accordance with the Scope of Work, all Terms and Conditions, and Disabled Veteran Business Enterprise (DVBE) requirements, if applicable, at the rates set forth by the contractor in Exhibit B-2. Any and all services perfonmed outside the scope of this Agreement shall be at the sole risk and expense Df the contractor. Rates must be provided fDr all services listed in Exhibit B-2. Exhibit B-2 shall remain in fDrce for the stated term Df this Agreement and shall include every item of expense, direct and indirect, including any taxes incidental to the specified rates. Any quantities listed on Exhibit B-2 are COCR's estimates only The State does not expressly or by implication agree that the actual amDunt of work will correspond therewith and reserves the right to omit portions of the work as may be deemed necessary or advisable by the State. SMALL BUSINESS ENTERPRISE Current law encourages state departments to first consider a Small Business Enterprise (Small)/Microbusiness Enterprise (Micro) fDr contracting opportunities The California Department of Corrections and Rehabilitation (COCR) is cDmmitted to supporting Small/Micro business participatiDn in state contracting and seeks to use certified Small/Micro businesses whenever possible FDr certification informatiDn, contact the Department of General Services, Office of Small Business and Disabled Veteran Business Enterprise CertificatiDn (OS DC) by telephone at (916) 375-4940 or access the OSDC Internet website at wwwpddgscagov/smbus The CDCR asks that you encourage any subcontractor(s) and/or consultant(s) that are not currently certified as a Small/Micro business, that you believe may meet the certification requirements, to become certified through the DGS, OS DC Please provide those subcontractor(s)/consultant(s) with the asoc contact and certification information provided above To ensure correct reporting of Small/Micro business and large business participation by COeR, the contractor shall complete the information section below. PRiME CONTRACTOR NAME: o I am a Small Business Enterprise My DGS reference number is: o I am a Microbusiness Enterprise My DGS reference number is: o I am a large business NOTE: IF YOU ARE A CERTIFIED SMALUMICRO BUSINESS ENTERPRISE AND FAIL TO COMPLETE THIS SECTION, YOUR BUSINESS WILL BE CLASSIFIED AS A LARGE BUSINESS. 8-19 City of Chuta Vista California Department of Corrections and Rehabilitation RATE SHEET Agreement No. CDS 052 Exhibit B-2 IN CUSTODY DRUG TREATMENT PROGRAM (ICDTP) TOTAL BUDGET SUMMARY FISCAL YEAR NO. DAYS NO. BEDS PER DIEM TOTAL BUDGET 2008/2009 365 32 $77. 17 $901,346 . 2009/2010 365 32 $77 17 $901,346 2010/2011 365 32 $77.17 $901,346 "......;;............>.. TOT ALCONTRACT ALLOCATION $2,704,038.00 Annual Per Diem Rate not to exceed $77.17 per day Contractor may offer a discount on invoices in order for the invoices to be paid within thirty (30) days of receipt. Discount offered must be at least one-half of one percent and a minimum of $5 00 Discount offered on invoices to be paid within 30 days of receipt = _0/0 . . The percent of discount (highest discount prevails) may be used in the event of tie bids. Refer to the Notice to Prospective Bidders, Bid Submission Requirements. 8-20 City of Chula Vista California Department of Corrections and Rehabilitation (CDCR) SPECIAL TERMS AND CONDITIONS Agreement No C08.052 Exhibit 0 1. Contract Disputes with Public Entities (Supersedes provision number 6, Disputes, of Exhibit C) As a condition precedent to Contractor's right to institute and pursue litigation or other legally available dispute resolution process, if any, Contractor agrees that all disputes and/or claims of Contractor arising under or related to the Agreement shall be resolved pursuant to the following processes. Contractor's failure to comply with said dispute resolution procedures shall constitute afailure to exhaust administrative remedies. Pending the final resolution of any such disputes and/or ciaims, Contractor agrees to diligently proceed with the performance of the Agreement, including the delivering of goods or providing of selVices Contractor's faiiure to diligently proceed shall constitute a material breach of the Agreement. The Agreement shall be interpreted, administered, and enforced according to the laws of the State of California. The parties agree that any suit brought hereunder shall have venue in Sacramento, California, the parties hereby waiving any claim or defense that such venue is not convenient or proper A county, city, district or other local public body, state board or state commission, another state or federal agency, or joint-powers authority shall resolve a dispute with CDCR, if any, through a meeting of representatives from the entities affected If the dispute cannot be resolved to the satisfaction of the parties, each entity may thereafter pursue its right to institute litigation or other dispute resolution process, if any, available under the laws of the State of California 2. Confidentialitv of Data All financial, statistical, personal, technical and other data and information relating to State's operation, which are designated confidential by the State and made available to carry out this Agreement, or which become available to the Contractor in order to carry out this Agreement, shall be protected by the Contractor from unauthorized use and disclosure. If the methods and procedures employed by the Contractor for the protection of the Contractor's data and information are deemed by the State to be adequate for the protection of the State's confidential information, such methods and procedures may be used with the written consent of the State The Contractor shall not be required under the provisions of this paragraph to keep confidential any data already rightfully in the Contractor's possession that is independently developed by the Contractor outside the scope of the Agreement or is rightfully obtained from third parties. No reports, information, inventions, improvements, discoveries, or data obtained, repaired, assembled, or developed by the Contractor pursuant to this Agreement shall be released, published, or made available to any person (except to the State) without prior written approval from the State Contractor by acceptance of this Agreement is subject to all of the requirements of California Government Code Section 110199 and California Civil Code Sections 1798, et seq , regarding the collection, maintenance, and disclosure of personal and confidential information about individuals. 8-21 City of Chula Vista CDCR SPECIAL TERMS AND CONDITIONS Agreement No COB 052 Exhibit 0 3. Workers' Compensation Contractor hereby represents and warrants that Contractor is currently and shall, for the duration of this agreement, carry workers' compensation insurance, at Contractor's expense, or that it is self-insured through a policy acceptable to the COCR, for all of its employees who will be engaged in the performance of this agreement. Such coverage will be a condition of CDCR's obligation to pay for services provided under this agreement. Prior to approval of this agreement and before performing any work, Contractor shall furnish to the State evidence of valid workers' compensation coverage. Contractor agrees that the workers' compensation insurance shall be in effect at all times during the term of this agreement. In the event said insurance coverage expires or is canceled at any time during the term of this agreement, Contractor agrees to give at least thirty (30) days prior notice to COeR before said expiration date or immediate notice of cancellation Evidence of coverage shall not be for less than the remainder of the term of the agreement or for a period of not less than one year The State reserves the right to verify the Contractor's evidence of coverage. In the event the Contractor fails to keep workers' compensation insurance coverage in effect at all times, the State reserves the right to terminate this agreement and seek any other remedies afforded by the laws of this State Contractor also agrees to indemnify, defend and save harmless the State. its officers, agents and employees from any and all of Contractor's workers' compensation claims and losses by Contractor's officers, agents and employees related to the performance of this agreement 4. Liability for Loss and DamaQes Any damages by the Contractor to the State's facility including equipment, furniture. materials or other State property, will be repaired or replaced by the Contractor to the satisfaction of the State at no cost to the State The State may, at its option, repair any such damage and deduct the cost thereof from any sum due Contractor under this Agreement 5. Computer Software Contractor certifies that it has appropriate systems and controls in place to ensure that state funds will not be used in the performance of this Agreement for the acquisition, operation or maintenance of computer software in violation of copyright laws. 6. Accountin~ Principles The Contractor will adhere to generally accepted accounting principles as outlined by the American Institute of Certified Public Accountants. Dual compensation is not allowed, a contractor cannot receive simultaneous compensation from two or more funding sources for the same services performed even though both funding sources could benefit. 7. Liability for Nonconformin~ Work The Contractor will be fully responsible for ensuring that the completed work conforms to the agreed upon terms If nonconformity is discovered prior to the Contractor's deadline, the Contractor will be given a reasonable opportunity to cure the nonconformity If the nonconformity is discovered after the deadline for the completion of the project, CDCR, in its -2- 8-22 City of Chula Vista CDCR SPECIAL TERMS AND CONDITIONS Agreement No C08052 Exhibit D sole discreUon, may use any reasonable means to cure the nonconformity. The Contractor shall be responsible for reimbursing CDCR for any additional expenses incurred to cure such defects 8. Subcontractor/Consultant Information Contractor is required to identify all subcontractors and consultants who will perform labor or render services in the performance of this Agreement Additionally, the Contractor shall notify the Department of Corrections and Rehabilitation, Office of Business Services, in writing, within ten (10) working days, of any changes to the subcontractor and/or consultant information 9. Contract Violations The Contractor acknowledges that any violation of Chapter 2, or any other chaptered provision of the Public Contract Code (PC C), is subject to the remedies and penalties contained in PCC Sections 10420 through 10425. 10. Temporary Nonperformance If, because of mechanical failure or for any other reason, the Contractor shall be temporarily unable to perform the work as required, the State, during the period of the Contractor's inability to perform, reserves the right to accomplish the work by other means and shall be reimbursed by the Contractor for any additional costs above the Agreement price. 11. Extension of Term This Agreement may be amended to extend the term if it is determined to be in the best interest of the State Upon signing the amendment, Contractor hereby agrees to provide services for the extended period at the rates specified in the original Agreement 12. Employment of Ex-Offenders Contractor cannot and will not either directly, or on a subcontract basis, employ in connection with this Agreement. a. Ex-Offenders on active parole or probation, b Ex-Offenders at any time if they are required to register as a sex offender pursuant to Penal Code Section 290 or if such ex-offender has an offense history involving a "violent felony" as defined in subparagraph (c) of Penal Code Section 6675, or c Any ex-felon in a position which provides direct supervision of parolees Ex-Offenders who can provide written evidence of having satisfactorily completed parole or probation may be considered for employment by the contractor subject to the following limitations: a Contractor shall obtain the prior written approval to employ any such ex-offender from the Authorized Administrator, and -3- 8-23 City of Chula Vista COCR SPECIAL TERMS AND CONDITIONS Agreement No. COB.052 Exhibit D b Any ex-offender whose assigned duties are to involve administrative or policy decision- making; accounting, procurement, cashiering, auditing, or any other business-related administrative function shall be fully bonded to cover any potential loss to the State of California 13. Electronic Waste Recvclina The Contractor certifies that it complies with the requirements of the Electronic Waste Recycling Act of 2003, Chapter B.5, Part 3 of Division 30, commencing with Section 42460 of the Public Resources Code, relating to hazardous and solid waste Contractor shall maintain documentation and provide reasonable access to its records and documents that evidence compliance 14. ~ Unless required by law, the State of California is exempt from federal excise taxes. The State will only pay for any state or local sales or use tax on the services rendered or goods supplied to the State pursuant to this Agreement 15. Conflict of Interest The Contractor and their employees shall abide by the provisions of Government Code (Ge) Sections 1090, 81000 et seq, 82000 et seq., 87100 et seq, and 87300 et seq., Public Contract Code (PCC) Sections 10335 et seq and 10410 et seq _, California Code of Regulations (CCR), Title 2, Section 18700 et seq and Title 15, Section 3409, and the Department Operations Manual (DOM) Section 31100 et seq. regarding conflicts of interest a. Contractors and Their Employees Consultant contractors shall file a Statement of Economic Interests, Fair Political Practices Commission (FPPC) Form 700 prior to commencing services under the Agreement, annually during the life of the Agreement, and within thirty (30) days after the expiration of the Agreement Other service contractors and/or certain of their employees may be required to file a Form 700 if so requested by the CDCR or whenever it appears that a conflict of interest may be at issue Generally, service contractors (other than consultant contractors required to file as above) and their employees shall be required to file an FPPC Form 700 if one of the following exists: (1) The Agreement service has been identified by the COCR as one where there is a greater likelihood that a conflict of interest may occur; (2) The Contractor and/or Contractor's employee(s), pursuant to the Agreement, makes or influences a governmental decision; or (3) The Contractor and/or Contractor's employee(s) serves in a staff capacity with the COCR and in that capacity participates in making a governmental decision or performs the same or substantially all the same duties for the COCR that would otherwise be performed by an individual holding a position specified in the COCR's Conflict of Interest Code. b. Current State Employees (1) No officer or employee shall engage in any employment, activity or enterprise from which the officer or employee receives compensation or has a financial interest and which is sponsored or funded by any state agency, unless the -4- 8-24 City of Chula Vista CDCR SPECIAL TERMS AND CONDITIONS Agreement No COB 052 Exhibii D employment, activity or enterprise is required as a condition of regular state employment (2) No officer or employee shall contract on his or her own behalf as an independeni contractor with any state agency to provide goods or services (3) In addition to the above, CDCR officials and employees shall also avoid actions resulting in or creating an appearance of. (a) Using an official position for private gain, (b) Giving preferential treatment to any particular person; (c) Losing independence or impartiality, (d) Making a decision outside of official channels; and (e) Affecting adversely the confidence of the public or local officials in the integrity of the program (4) Officers and employees of the Department must not solicit, accept or receive, directly or indirectly, any fee, commission, gratuity or gift from any person or business organization doing or seeking to do business with the State c. Former Slale Employees (1) For the two year (2-year) period from the date he or she left state employment, no former state officer or employee may enter into an Agreement in which he or she engaged in any of the negotiations, transactions, planning, arrangements or any part of the decision-making process relevant to the Agreement while employed in any capacity by any state agency (2) For the twelve-month (12-month) period from the date he or she left state employment, no former state officer or employee may enter into an Agreement with any state agency If he or she was employed by that state agency in a policy- making position in the same general subject area as the proposed Agreement within the 12-month period prior to his or her leaving state service In addition to the above, the Contractor shall avoid any conflict of interest whatsoever with respect to any financial dealings, employment services, or opportunities offered to inmates or parolees The Contractor shall not itself employ or offer to employ inmates or parolees either directly, or indirectly through an affiliated company, person or business unless specifically authorized In writing by the CDCR In addition, the Contractor shall not (either directly, or indirectly through an affiliated company, person or business) engage in financial dealings with inmates or parolees, except to the extent that such financial dealings create no actual or potential conflict of interest, are available on the same tenms to the general public, and have been approved in advance in writing by the CDCR. For the purposes of this paragraph, 'affiliated company, person or business" means any company, business, corporation, nonprofit corporation, partnership, limited partnership, sole proprietorship, or other person or business entity of any kind which has any ownership or control interest whatsoever in the Contractor, or which is wholly or partially owned (more than 5% ownership) or controlled (any percentage) by the Contractor or by the Contractor's owners, officers, principals, directors and/or shareholders, either directly or indirectly "Affiliated companies, persons or businesses" include, but are not limited to, subsidiary, parent, or sister companies or corporations, and any company, corporation, nonprofit corporation, partnership, limited partnership, sole proprietorship, or other person or business entity of any kind that is wholly or partially owned or controlled, either directly or indirectly, by the Contractor or by the Contractor's owners, officers, principals, directors and/or shareholders -5- 8-25 City of Chula Vista CDCR SPECIAL TERMS AND CONDITIONS Agreement No coe 052 Exhibit D The Contractor shall have a continuing duty to disclose to the State, in writing, all interests and activities that create an actual or potential conflict of interest in performance of the Agreement The Contractor shall have a continuing duty to keep the State timely and fully apprised in writing of any material changes in the Contractor's business structure and/or status. This includes any changes in business form, such as a change from sole proprietorship or partnership into a corporation or vice-versa, any changes in company ownership, any dissolution of the business; any change of the name of the business, any filing in bankruptcy; any revocation of corporate status by the Secretary of State; and any other material changes in the Contractor's business status or structure that could affect the performance of the Contractor's duties under the Agreement If the Contractor violates any provision of the above paragraphs, such action by the Contractor shall render this Agreement void Members of boards and commissions are exempt from this section if they do not receive payment other than payment for each meeting of the board or commission, payment for preparatory time and payment for per diem 16. Disclosure Neither the State nor any State employee will be liable to the Contractor or its staff for injuries inflicted by inmates or parolees of the State. The State agrees to disciose to the Contractor any statement{s) known to State staff made by any inmate or parolee which indicate violence may result in any specific situation, and the same responsibility will be shared by the Contractor in disclosing such statement{s) to the State 17. . Security Clearance/Finqerprintinq The State reserves the right to conduct fingerprinting and/or security clearance through the Department of Justice, Bureau of Criminal Identification and Information (BCII), prior to award and at any time during the term of the Agreement, in order to permit Contractor and/or Contractor's employees access to State premises. The State further reserves the right to terminate the Agreement should a threat to security be determined 18. Notification of Personnel Chanqes Contractor must notify the State, in writing, of any changes of those personnel allowed access to State premises for the purpose of providing services under this Agreement In addition, Contractor must recover and return any State-issued identification card provided to Contractor's employee(s) upon their departure or termination. The following provisions apply to services provided on departmental and/or institution grounds: 19. Bloodborne Pathoqens Provider shall adhere to California Division of Occupational Safety and Heaith (CAL-OSHA) regulations and guidelines pertaining to blood borne pathogens -6- 8-26 City of Chula Vista CDCR SPECIAL TERMS AND CONDITIONS Agreement No C08.052 Exhibit 0 20. Tuberculosis ITS) Testinq In the event that the services required under this Agreement will be performed within a COCR institution/parole office/community-based program, prior to the perfollTlance of contracted duties, Contractors and their employees who are assigned to work with inmates/parolees on a regular basis shall be required to be examined or tested or medically evaluated for TS in an infectious or contagious stage, and at least once a year thereafter or more often as directed by COCR Regular basis is defined as having contact with inmates/parolees in confined quarters more than once a week Contractors and their employees shall be required to furnish to COCR, at no cost to COCR, a form COCR 7336, "Employee Tuberculin Skin Test (TST) and Evaluation," prior to assuming their contracted duties and annually thereafter, showing that the Contractor and their employees have been examined and found free of TB in an infectious stage The form COCR 7336 will be provided by COCR upon Contractor's request 21. Primary Laws. Rules. and Requlations Reqardinq Conduct and Association with State Prison Inmates Individuals who are not employees of COCR, but who are working in and around inmates who are incarcerated within California's institutions/facilities or camps, are to be apprised of the laws, rules and regulations governing conduct in associating with prison inmates The foliowing is a summation of pertinent information when non-departmental employees come in contact with prison inmates By signing this Agreement, the Contractor agrees that if the provisions of the Agreement require the Contractor to enter an institution/facility or camp, the Contractor and any employee(s) and/or subcontractor(s) shall be made aware of and shall abide by the following laws, rules and reguiations governing conduct in associating with prison inmates. a Persons who are not employed by COCR, but are engaged in work at any institution/facility or camp must observe and abide by all laws, rules and regulations governing the conduct of their behavior in associating with prison inmates Failure to comply with these guidelines may lead to expulsion from COCR institutions/facilities or camps SOURCE: California Penal Code (PC) Sections 5054 and 5058; California Code of Regulations (CCR), Title 15, Sections 3285 and 3415 b COCR does not recognize hostages for bargaining purposes COCR has a "NO HOSTAGE" policy and all prison inmates, visitors, and employees shall be made aware of this. SOURCE. PC Sections 5054 and 5058; CCR, Title 15, Section 3304 c. All persons entering onto institution/facility or camp grounds consent to search of their person, property or vehicle at any time. Refusal by individuals to submit to a search of their person, property, or vehicle may be cause for denial of access to the premises .7. 8-27 City of Chula Vista COCR SPECIAL TERMS AND CONDITIONS Agreement No. C08 052 Exhibit D SOURCE. and 3288 PC Sections 2601,5054 and 5058; CCR, Title 15, Sections 3173,3177, d Persons normally permitted to enter an institution/facility or camp may be barred, for cause, by the COCR Director, Warden, and/or Regionai Parole Administrator SOURCE: PC Sections 5054 and 5058; CCR, Title 15, Section 3176 (a) e It is iIIegai for an individual who has been previously convicted of a feiony offense to enter into COCR institutions/facilities or camps without the prior approval of the Warden It is also illegal for an individual to enter onto these premises for unauthorized purposes or to refuse to leave said premises when requested to do so Failure to comply with this provision could lead to prosecution SOURCE: 3289 PC Sections 602, 45705 and 4571, CCR, Titie 15, Sections 3173 and f. Encouraging and/or assisting prison inmates to escape is a crime It is illegal to bring firearms, deadly weapons, explosives, tear gas, drugs or drug paraphernalia on COCR institutions/facilities or camp premises it is illegal to give prison inmates firearms, explosives, alcoholic beverages, narcotics, or any drug or drug paraphernalia, Including cocaine or marijuana SOURCE: 4574 PC Sections 2772, 2790, 4533, 4535, 4550, 4573, 45735, 4573 6 and g It is illegal to give or take ietters from inmates without the authorization of the Warden It is also illegal to give or receive any type of gift and/or gratuities from prison inmates SOURCE: PC Sections 2540,2541 and 4570; CCR, Title 15, Sections 3010,3399, 3401, 3424 and 3425 h In an emergency situation the visiting program and other program activities may be suspended SOURCE: PC Section 2601; CCR, Title 15, Section 3383 For security reasons, visitors must not wear clothing that in any way resembles state issued prison inmate clothing (blue denim shirts, blue denim pants) SOURCE: CCR, Title 15, Section 3171 (b) (3) Interviews with SPECIFIC INMATES are not permitted Conspiring with an inmate to circumvent policy and/or regulations constitutes a rule violation that may result in appropriate legal action. SOURCE. CCR, Title 15, Sections 32615,3315 (3) (W), and 3177 -8- 8-28 City of Chula Vista CDCR SPECIAL TERMS AND CONDITIONS Agreement No C08052 Exhibit D 22. ClothinQ Restrictions While on institution grounds, Contractor and all its agents, employees, and/or representatives shall be professionally and appropriately dressed in clothing distinct from that worn by inmates at the institution. Specifically, blue denim pants and blue chambray shirts, orange/redlyellow/white/chartreuse jumpsuits and/or yellow rainwear shall not be worn onto institution grounds, as this is inmate attire Contractor should contact the institution regarding clothing restrictions prior to requiring access to the institution to assure the Contractor and their employees are in compliance. 23. Tobacco-Free Environment Pursuant to Penal Code Section 5030.1, the use of tobacco products by any person on the grounds of any institution or facility under the jurisdiction of the Department of Corrections and Rehabilitation is prohibited 24. Prison Rape Elimination Policy The California Department of Corrections and Rehabilitation (CDCR) is committed to providing a safe, humane, secure environment, free from sexual misconduct This will be accomplished by maintaining a program to ensure education/prevention, detection, response, investigation and tracking of sexual misconduct and to address successful community re-entry of the victim The CDCR shall maintain a zero tolerance for sexual misconduct in its institutions, community correctional facilities, conservation camps and for all offenders under its jurisdiction All sexual misconduct is strictly prohibited As a contractor with the CDCR, you and your staff are expected to ensure compliance with this policy as described in Department Operations Manual, Chapter 5, Article 44 25. Security ReQulations a Unless otherwise directed by the entrance gate officer and/or Contract Manager, the Contractor, Contractor's employees and subcontractors shall enter the institution through the main entrance gate and park private and nonessential vehicles in the designated visitor's parking lot Contractor, Contractor's employees and subcontractors shall remove the keys from the ignition when outside the vehicle and all unattended vehicles shall be locked and secured while on institution grounds b Any State- and Contractor-owned equipment used by the Contractor for the provision of contract services, shall be rendered temporarily inoperative by the Contractor when not in use, by locking or other means unless specified otherwise. c In order to maintain institution safety and security, periodic fire prevention inspections and site searches may become necessary and Contractor must furnish keys to institutional authorities to access all locked areas on the worksite. The State shall in no way be responsible for Contractor's loss due to fire d Due to security procedures, the Contractor, Contractor's employees and subcontractors may be delayed at the institution vehicle/pedestrian gates and sally ports Any loss of -9- 8-29 City of Chula Vista CDCR SPECIAL TERMS AND CONDITIONS Agreement No C08 052 Exhibit D time checking in and out of the institution gates and sally ports shall be borne by the Contractor. e Contractor, Contractor's employees and subcontractors shall observe all security rules and regulations and comply with all instructions given by institutional authorities f Electronic and communicative devices such as pagers, cell phones and cameras/microcameras are not permitted on institution grounds. g Contractor, Contractor's employees and subcontractors shall not cause undue interference with the operations of the institution h. No picketing is allowed on State property. 26. Gate Clearance Contractor and Contractor's employee(s) and/or subcontractor(s) must be cleared prior to providing services. The Contractor will be required to complete a Request for Gate Clearance for all persons entering the facility a minimum of ten (10) working days prior to commencement of service The Request for Gate Clearance must include the person's name, social security number, valid state driver's license number or state identification card number and date of birth Information shall be submitted to the Contract liaison or his/her designee CDCR uses the Request for Gate Clearance to run a California law Enforcement Telecommunications System (ClETS) check. The check will include Department of Motor Vehicles check, Wants and Warrants check, and Criminal History check Gate clearance may be denied for the following reasons. Individual's presence in the institution presents a serious threat to security, individual has been charged with a serious crime committed on institution property, inadequate information is available to establish positive identity of prospective individual, and/or individual has deliberately falsified his/her identity All persons entering the facilities must have a valid state driver's license or photo identification card on their person -10- 8-30 City of Chula Vista California Department of Corrections and Rehabilitation (CDCR) ADDITIONAL PROVISIONS Agreement No COS 052 Exhibit E 1. Contractor Emplovee Misconduct During the performance of this Agreement, it shall be the responsibility of the Contractor whenever there is an incident of use of force or ailegation(s) of employee misconduct associated with and directly impacting inmate and/or parolee rights, to immediately notify the COCR of the incident(s), to cause an investigation to be conducted, and to provide COCR with ail relevant information pertaining to the incident(s) All relevant information includes, but is not limited to: a) investigative reports; b) access to inmates/parolees and the associated staff; c) access to employee personnel records; d) that information reasonably necessary to assure COCR that inmates and/or parolees are not or have not been deprived of any legal rights as required by law, regulation, policy and procedures, and e) written evidence that the Contractor has taken such remedial action, in the event of unnecessary or excessive force, or employee misconduct with inmates and/or parolees, as wiil assure against a repetition of incident(s) or retaliation. To the extent that the information provided by the Contractor fails to so assure COCR, COCR may require that any implicated Contractor staff be denied access to and the supervision of CDCR inmates and/or parolees at the facility and access to inmate and/or parolee records. Notwithstanding the foregoing, and without waiving any obligation of the CQntractor, COCR retains the power to conduct an independent investigation of any incident(s). Furthermore, it is the responsibility of the Contractor to include the foregoing terms within any and all subcontracts, requiring that subcontractor(s) agree to the jurisdiction of COCR to conduct an investigation of their facility and staff, including review of subcontractor employee personnel records, as a condition of the Agreement 2. Riqht to Terminate (Supersedes provision number 7, Termination for Cause, of Exhibit C) The parties hereto agree that either party may cancel this Agreement by giving the other party written notice thirty (30) days in advance of the effective date of such cancellation In the event of such termination, the State agrees to pay Contractor for actual services rendered up to and including the date of termination 3. Subcontractinq Services provided are to be performed primarily with the staff of the public entity or, in the case of educationai institutions, auxiliaries or foundations, by the faculty, staff or students associated with the particular institution Agreements are not to be used by state agencies to circumvent the competitive bidding requirements of Public Contract Code Section 10340 If more that twenty-five (25).percent of the total contract amount or $50,000.00, whichever is less, is subcontracted, non-competitive bid approval must be obtained from the Agency Secretary of the Youth and Adult Correctional Agency and the Department of General Services prior to the commencement of services, unless the subcontract was competitively bid or the subcontractor(s) also qualifies as a state agency, governmental agency, or joint power 4. Insurance Requirements Insurance as required herein shall be a condition of the State's obligation to pay for services provided under this Agreement. Prior to approval of this Agreement and before performing any work, Contractor and any subcontractor shall furnish to the State evidence of valid 8-31 City of Chula Vista CDCR ADDITIONAL PROVISIONS Agreement No CDS 052 Exhibit E coverage. The following shall be considered evidence of coverage. A certificate of insurance, a "true and certified" copy of the policy, or any other proof of coverage issued by Contractor's insurance carrier. Binders are not acceptable as evidence of coverage. Providing evidence of coverage to the State conveys no rights or privileges to the State, nor does it insure any State employee or insure any premises owned, leased, used by or otherwise or under the control of the State It does, however, serve to provide the State with proof that the Contractor and any subcontractor is insured at the minimum levels required by the State of California Contractor agrees that any liability insurance required in the performance of this Agreement shail be in effect at all times during the term of this Agreement in the event said insurance coverage expires or is canceled during the term of this Agreement, Contractor's insurance provider must agree to give at least thirty (30) days prior notice to the State before said expiration date or notice of canceilation. Evidence of coverage required in the performance of this Agreement shall not be for less than the remainder of the term of this Agreement or for a period of not less than one yeaL The State and the Department of General Services (OGS) reserve the right to verify. the Contractor's evidence of coverage; evidence of coverage is subject to the approval of the OGS. In the event the Contractor fails to keep insurance coverage as required herein in effect at all times, the State reserves the right to terminate this Agreement and to seek any other remedies afforded by the laws of the State of California Contractor hereby represents and warrants that the Contractor and subcontractors are currently and shail for the duration of this Agreement be insured and provide proof of self- insurance against Commercial General Liabilitv - Provider agrees to carry a minimum of $1,000,000 per occurrence for bodily injury and property damage liability combined - 2 - 8-32 City of Chula Vista In-Custody Drug Treatment Program Agreement No~ C08 052 Attachment 1 MONTHLY INVOICE 60-DA Y rCDTP Contract Program Cily of Chuln Vista And STATE OF CALIFORNIA DEPARTMENT OF CORRECTIONS & REHABILITATION SUBMITTED BY: VIA: TO: Facility Commander City of Chula Vista 315 Fourth Avenue Chula Vista, CA 91910 Department of Corrections & Rehabilitation Office of Substance Abuse Programs POBox 942883 Sacramento, CA 94283 (916) 323-6125 Department of Corrections & Rehabilitation Accounting Services PO Box 187018 Sacramento, CA 95818 (916) 327 -0283 In accordance with the terms of Agreement No. C08.052. payment is requested for services satisfactorily provided during the month of .20_ Line I TOTAL ICDTP PARflC1PANT Dt\YSI1): Line 2 DAIl Y PER DIEM M IE x Line 3 TOT AL I' A YMENT REQUESTED: Line I X Lim: 1 CLAIM CER11FICA nON: I hereby certify under penalty of perjury that the County named herein is entitled to amount claimed, thallhc claim within is in all respects a Imc and correct statement of costs incUlred under this agreement and that this certification tS not in violmion of any of tile provisions in Government Code Sections 1090 and 1096, inclusive Signature ufFacilily Commander Oak Signature or Slate Representative Duil.: Note: (I)"! olal participants days: is obtnincd from llttllcbcd 60-DA Y lCDTP R(:gistcr of"Participl.ltion fonn. which includes the nrsL day of participation, bUll10t the last day 8-33 City of Chula Vista In-Custody Drug Treatment Program Agreement No, COB,052 Attachment 2 GO-DAY ICDTP REGISTER OF PARTICIPATION TolallCDTP placement not to exceed 60 days CD I c..J .1>0 Booking Number Last Name First Name COeR Number Rare Date ollCDTP Dale of ICDTP Billable Days In (1) (2) (3) (4) Plac;;~ent Re:~~se ,cgiP 15 - - --- I (1) Jail Booking Number (2) Name of Parolee (May nol agree with COeR name) (3) COCR 10 Number (4) Enter ~R" for Released or ~C~ for Parolee continumg miD the following month (5) Dale of lCOTP placement/OHO detention starts or the first date of invoice period (6) Date ICDTP/OHO placement ends or lasl day of invoice month (7) Days In ICOTP/STAR programmmg (billable month only). Column (7) equals column (6) mmus column (5) date THE ATTACHED AGREE.MENT HAS BEEN REVIE\VED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALLY SIGNED UPON APPROVAL BY THE CITY COUNCIL ~~~ lL/~ ;j.~ Bart C. Miesfeld & Interim City Attorney Dated: 1 / ? /0 1 I I Agreement between the California Department of Corrections and Rehabilitation and the City of Chula Vista for the In-Custody Drug Treatment Program 8-35 A-+tv.c.hvYler+B ATTACHMENT B STATE OF CALIFORNIA - DEPARTMENT OF CORRECTIONS AND REHABILITATION ARNOLD SCHWARZENEGGER. GOVERNOR DIVISION OF SUPPORT SERVICES OFFICE OF BUSINESS SERVICES 7667 Folsom Blvd, Suit. 101 Sacramento, CA 95826~261 S PO Box 942883 Sacramento, CA 94283.000 1 June 4, 2008 Ll Lon Turner City of Chula Vista 315 Fourth Avenue Chula Vista, CA 91910 Dear Lt. Turner: AGREEMENT NUMBER: P06.4013 AMENDMENT NUMBER: 1 SERVICE: IN.CUSTODY DRUG TREATMENT PROGRAM (ICOTP) Enclosed for your signature are the above-referenced Standard Agreements and related exhibits. This amendment is not valid unless, and until, approved by the Department of General Services, or under its authority, the California Department of Corrections and Rehabilitation (COCR). The State has no legal obligation unless, and until, the amendment is approved. The State assumes no responsibility for any work commenced by the Contractor and will not reimburse the Contractor for any work performed prior to approval of the amendment. When this amendment is fully approved, an original will be forwarded to you. Please allow up to two months for approval. The following documents must be returned to our office before this Agreement can be sent to DGS for approval: Board Resolution Please proVide a certified copy of the board resolution, order, motion, or ordinance of the local governing body which by law has authority to enter into this Agreement, authorizing execution of the Agreement as required in the Contractor Certification Clauses. Certificate of Insurance Self-insured public entities MUST provide proof of self-insurance Please have all items dated and signed with an original signature by an authorized representative. All documentation must be returned to CDCR, Contracts Management Branch, at the address below: 8-36 City of Chula Vista Page 2 California Department of Corrections and Rehabilitation Contracts Management Branch Attention: Richard Zeunges 1515 S Street, Suite 127N Sacramento, CA 95811-7243 If the amendment and other required document(s) are not returned within two weeks, payment of any outstanding invoices may be delayed until the amendment is approved. If you have any questions or need assistance, do not hesitate to contact me at (916) 229-5045. Sincerely, Richard Zeunges Contract Analyst Contracts Management Branch 8-37 STATE Or: CALIFORNIA STANDARD AGREEMENT AMENDMENT 570 213A{Revli/03) o CHECK HERE IF ADDITIONAL. PAGES ARE AITACHED _Pages AGREEMENT NUMBER AMENDMENT NUMBER P06.4013 1 REGISTRATION NUMBER 1. This Agreement is entered into between the State Aqency and Contractor named below: STATE AGENCY'S NAMe. California Department of Corrections and Rehabilitation (CDCR) CONTRACTOR'S NAME City of Chula Vista 2 The term of this July I, 2006 through July 31, 2008 Agreement is or upon approval, whichever occurs later 3. The maximum amount of this $1,362,229 Agreement after this amendment is: One Mlllion Three Hundred Sixty-two T110Usand Two Hundred Twenty-nine Dollars 4. The parties mutually agree to this amendment as follows. AIi actions noted below are by this reference made a part of the Agreement and incorporated herein: Contract No P06A013, dated December 6, 2006, for the In-Custody Drug Treatment Program (ICDTP) at the City of Chula Vista jail facility, is amended effective 7/1/2007, to increase the per diem rate for the 2007/08 Fiscal Year, reduce funding for Fiscal Year 2008/09, and change the contract end date to July 31, 2008. All funding for Fiscal Year 2009/10 and Fiscal Year 2010/11 is eliminated. Effective 7/1/2007, Exhibit 8-1 (Fiscal Year Funding Summary), is replaced with the new Exhibit B-1, Amendment No I, that revises the following: a. The per diem jail rales for FY 2007/08 and FY 2008/09 are increased to $77.17 per bed b The total amount funded for FY 2008/09 is reduced by $569,539 to $57,414. c All funding for FY 2009/10 and FY 2010/11 is eliminated. d. The maximum amount of this Agreement is decreased by $1 ,774,255 from $3,136,484 to $1,362,229 2 Changes the term end date of this agreement to July 31,2008. All other terms and conditions shall remain the same IN WITNESS WHEREOF, this A9reement has been executed by the parties hereto. CALIFORNlA CONTRACTOR Department of General Services CONTRACTOR'S NAME (If other than an individual, state whether a corporation, partnership. elc) Use Only City of Chula Vista BY (Avthorized Signalul1J} I DATE SIGNED (Do not type) 25 PRINTED NAME AND TITLE OF PERSON SIGNING Cheryl Cox, Mayor ADDRESS 315 Fourth Avenue Chula Vista, CA 91910 STATE OF CALIFORNIA AGENCY NAME California Department of Corrections and Rehabilitation (CDCR) BY (Authorized Signature) I DATE SIGNED (Do not type) 25 PRINTED NAME AND TITLE OF PERSON SIGNING o Exempt per: Stacy Lopez-Kassis, Chief, Service Contracts Section ADDRESS PO Box 942883 Sacramento, CA 94283-0001 8-38 ex:> I w <D California Department of Corrections and Rehabilitation City of Chula Vista FISCAL YEAR FUNDING SUMMARY City of Chula Vista Conlrad Year Contracled BudgelerJ Beds ParOiem Totnl&dgel Allocalion Aml!lldml!nl(t:3) Amount Punod FY No. Oavs Per Year . 1 7/1/06 - 6/30/07 06107 365 2' $ 71.57 $ 626.953 2 711/07 - 6/30108 07/08 366 24 $ 77.17 $ 677.862 $ 49.190 3 7/1/08 - 7/31/08 08109 31 24 $ 77.17 $ 57,414 8/1/08 - 6/30/09 334 0 $ - $ - $ (569.539) 4 7/1/09.6/30/10 09/10 365 0 $ . $ - $ . (626.953) 5 7/1/10-6/30/11 10/11 365 0 $ - $ - $ . (626.953) $ 1.362.229$ (1.774.255) Agreement No. P06.4013. AM1 CITY COUNCIL AGENDA STATEMENT ~VJ~ C1lYOF H ~~ CHULA VlsrA 07/15/2008 Item~ SUBMITTED BY: REVIEWED BY: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE CONSULTANT SELECTION PROCESS, APPROVING THE CONTRACTUAL AGREEMENT WITH SOUTH BAY COMMUNITY SERVICES TO CONTINUE PROVIDING YOUTH COUNSELING SERVICES, AND AUTHORIZING THE CITY MANAGER TO APPROVE THE FOUR ONE-YEAR EXTENSIONS OF THE AGREEMENT. 0..__ CHIEF OF POLIC~ CITY MANAGER S'" -1:." !) rZ- ~ 4/5THS VOTE: YES NO X ITEM TITLE: SUMMARY Since 1985, South Bay Community Services has provided juvenile counseling services to the City. The attached agreement formally continues those services to be provided which includes a Youth Counseling Program, Runaway Case Management Program and Homeless Youth Outreach Program. ENVIRONMENTAL REVIEW This proposed activity has been reviewed for compliance with the California Environmental Quality Act (CEQA) and it has been determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in 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 That Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not Applicable. DISCUSSION South Bay Community Services (SBCS) and the Juvenile Services unit of the Police Department have worked together since 1985 providing a variety of services for juveniles 9-1 07/15/2008, Item~ Page 2 00 and their families. The proposed contract with SBCS will continue this relationship and formalize the agreement with the following services: :>> A minimum of 80 hours per week of a Youth and Family Development Associate. These associates will work with juveniles who have been contacted, detained, or taken into custody by police officers for minor non-violent offenses such as vandalism, curfew violation, burglary, and petty thefts. Last year, this component of the program provided assistance to 293 juveniles. This program has a 91 % success rate, which results in a low 9% recidivism rate. :>> Management of reported cases of runaway juveniles. The counselors track the status of the case and offer counseling and intervention services to the juveniles and their families. Last year, the SBCS counselors managed 561 runaway cases. :>> Other services include anger management instruction, educational assistance, parenting classes and substance abuse counseling. :>> Confidential progress reports will be issued at quarterly and annual intervals. SBCS has tailored their programs to meet the needs of the City. Their experience, qualifications and community presence make them a unique service provider. The Police Department does not have comparable staff or expertise to provide adequate similar services. The cost for providing the same level of service "in-house" would be prohibitive. Furthermore, the Police Department has been satisfied with the level of service and professionalism from South Bay Community Services SBCS employees have all completed pre-employment testing and have a bachelor's degree or equivalent experience in the counseling field. Since these employees are located at the Police Department facility, they undergo a background check, which is performed by Police Department staff. SBCS provides local youth counseling services approved by the County of San Diego court system. No other service provider has expressed an interest in providing these services and the City is not aware ofaltemate services capable of meeting the City's youth counseling and community outreach requirements. For these reasons, staff recommends that the City's normal consultant selection process be waived. The proposed contract is effective July 1, 2008 and will expire on June 30, 2009, and may be extended an additional four years upon mutual agreement and authorization of the City Manager. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found a conflict exists, in that City Council Member Steve Castaneda has property holdings within 500 feet of the boundaries of the property which is the subject of this action. FISCAL IMPACT The contract amount of $120,000 for SBCS Youth Counseling services has already been included in the fiscal year 2008/2009 Police budget. Approval of this resolution will result in no net fiscal impact to the General Fund. Funds for subsequent years will be appropriated through the normal budget process. 9-2 07/15/2008, Iteml Page 3 of3 ATTACHMENTS A. Agreement with South Bay Community Services for Youth Counseling Services Prepared by: Edward Chew, Administrative Services Manager, Police Department 9-3 RESOLUTION NO. 2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WANING THE CONSULTANT SELECTION PROCESS, APPROVING THE CONTRACTUAL AGREEMENT WITH SOUTH BAY COMMUNITY SERVICES TO CONTINUE PROVIDING YOUTH COUNSELING SERVICES, AND AUTHORIZING THE CITY MANAGER TO APPROVE THE FOUR ONE-YEAR EXTENSIONS OF THE TERM OF THE AGREEMENT WHEREAS, since 1985, South Bay Community Services has provided the City with quality juvenile counseling services; and WHEREAS, South Bay Community Services has 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, the cost for providing the same level of service "in-house" would be prohibitive; and WHEREAS, the Police Department has been satisfied with the level of service and professionalism from South Bay Community Services; and WHEREAS, the tenn of this Agreement is for one year commencing July 1, 2008, and is subject to four additional one-year extensions; and WHEREAS, staff requests that the City Manager be authorized to approve those four additional one-year extensions. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City ofChula Vista as follows: 1. That it waives the fonnal consultant selection process outlined 111 Municipal Code section 2.56.110. 2. That it approves the contractual agreement with South Bay Community Services to continue to provide youth counseling services. 3 That it authorizes the City Manager to approve the four additional one- year extensions of the term of the Agreement. Presented by Approved as to fOlm by Richard P. Emerson Police Chief "I -?'J 1- I :' /; , , ~.~ ilL- "j....../'-"'';b;; ;-r-.-. Bart Miesfeld ...' Interim City Attorney 9-4 THE A TT ACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALLY SIGNED UPON APPROVAL BY THE CITY COUNCIL ~~~~\;\ Bart C. Miesfeld Interim City Attorney Dated: h'1o 3) ?OO1s Agreement between the City of Chula Vista and South Bay Community Service for Youth Counseling Services 9-5 Agreement between City of Chula Vista and South Bay Community Services for Youth Counseling Services This agreement ("Agreement"), dated 07/15/2008 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, South Bay Community Services and the Police Department have worked together since 1985 providing a variety of services for juveniles and their families; 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 9-6 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. 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 Page 2 9-7 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 sub consultants 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 priorto 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 I nsurance 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; 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 Page 3 9-8 are to be named as additional insured 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 fumished 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 contract or 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. 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 (LESU) and be A.M. Best's rated A-V. Page 4 9-9 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 insured 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 I nsu ranee. 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 Addftionallnsured. (2) Policy Endorsements Required. In order to demonstrate the Additional Insured Coverage, Primary Coverage and Cross-liability Coverage required under Consultant's Commercial General Liability Insurance Policy, Consultant shall deliver a policy endorsement to the City demonstrating same, which shall be reviewed and approved by the Risk Manager. H. Security for Performance. (1) Performance Bond. In the event that Exhibit A, 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, htlp://www.fms.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 Page 5 9-10 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 eventthat Exhibit A, at Paragraph 19, indicates the need for Consultant to provide security other than a Performance Bond or a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Other Security"), then Consultant shall provide to the City such other security therein listed in a form and amount satisfactory to the Risk Manager or City Attorney. I. Business License 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 Page 6 9-11 , 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 goveming 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. 4. Term. This agreement shall terminate on June 30, 2009 and may be extended an additional four years, upon mutual agreement of both parties based upon a market assessment of no other qualified service providers; provided however (a) the effectiveness of this Agreement for the fiscal year commencing July 1, 2008 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 Page 7 9-12 designee, prior to the expiration of the specified time. Extensions of time, when granted, will be based upon the effect of deiays to the work and will not be granted for deiays to minor portions of work unless it can be shown that such delays did or will deiay the progress of the work. 6. Financial Interests of Consultant A. Consultant is Designated as an FPPC Filer. If Consultant is designated on Exhibit A, Paragraph 15, as an "FPPC filer", Consultant is deemed to be a "Consultant" for the purposes of the Political Reform Act conflict of interest and disclosure provisions, and shall report economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 15 of Exhibit A, or if none are specified, then as determined by the City Attorney. B. Decline to Participate. Regardless of whether Consultant is designated as an FPPC Filer, Consultant shall not make, or participate in making or in any way attempt to use Consultant's position to influence a governmental decision in which Consultant knows or has reason to know Consultant has a financial interest other than the compensation promised by this Agreement. 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 Page 8 9-13 of interest for the purpose of the Fair Political Practices Act, and regulations promulgated thereunder. F. Specific Warranties Against Economic Interests. Consultant warrants and represents that neither Consultant, nor Consultant's immediate family members, nor Consultant's employees or agents ("Consultant Associates") presently have any interest, directly or indirectly, whatsoever in any property which may be the subject matter of the Defined Services, or in any property within 2 radial miles from the exterior boundaries of any property which may be the subject matter of the Defined Services, ("Prohibited Interest"), other than as listed in Exhibit A, Paragraph 15. Consultant further warrants and represents that no promise of future employment, remuneration, consideration, gratuity or other reward or gain has been made to Consultant or Consultant Associates in connection with Consultant's performance of this Agreement. Consultant promises to advise City of any such promise that may be made during the Term of this Agreement, or for 12 months thereafter. Consultant agrees that Consultant Associates shall not acquire any such Prohibited Interest within the Term of this Agreement, or for 12 months after the expiration of this 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 orother 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 Page 9 9-14 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. 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 Page 10 9-15 termination. In that event, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by Consultant shall, at the option of the City, become the property of the City, and Consultant shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused City by Consultant's breach. 9. Errors and Omissions In the event that the City Administrator determines that the Consultants' negligence, errors, or omissions in the performance of work under this Agreement has resulted in expense to City greater than would have resulted if there were no such negligence, errors, omissions, Consultant shall reimburse City for any additional expenses incurred by the City. Nothing herein is intended to limit City's rights under other provisions of this agreement. 10. Termination of Agreement for Convenience of City City may terminate this Agreement at any time and for any reason, by giving specific written notice to Consultant of such termination and specifying the effective date thereof, at least thirty (30) days before the effective date of such termination. In that event, all finished and unfinished documents and other materials described hereinabove shall, at the option of the City, become City's sole and exclusive property. If the Agreement is terminated by City as provided in this paragraph, Consultant shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials to the effective date of such termination. Consultant hereby expressly waives any and all claims for damages or compensation arising under this Agreement except as set forth herein. 11. Assignability The services of Consultant are personal to the City, and Consultant shall not assign any interest in this Agreement, and shall not transfer any interest in the same (whether by assignment or 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 sub consultants identified thereat as "Permitted Sub consultants". 12. Ownership, Publication, Reproduction and Use of Material All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced under this Agreement shall be the sole and exclusive property of City. No such materials or properties produced in whole or in part under this Agreement shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express written consent Page 11 9-16 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. 16. Statement of Costs In the event that Consultant prepares a report or document, or participates in the preparation of a report or document in performing the Defined Services, Consultant shall include, or cause the inclusion of, in said report or document, a statement of the numbers and cost in dollar amounts of all contracts and subcontracts relating to the preparation of the report or document. Page 12 9-17 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 Agreeml"nt nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. E. Capacity of Parties Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. F. Governing 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 13 9-18 Signature Page to Agreement between City of Chula Vista and South Bay Community Services for Youth Counseling 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: Bart Miesfeld, Interim City Attorney Dated: i,'S-OTltf43ay \;::ommunity Services . \ ' '. ~I ~ / ,~'\ '. By' I ,7. I / /',.., ;<'[ ) . . /~1A(' ,/;17'" . f ~/l. /> ,.:"-,, "t', 1..-<::.... ::/ J(_-.. "/ . / Kathryry~mbo jExecuwe Director Exhibit List to Agreement / (X) Exhibit A Page 14 9-19 Exhibit A to Agreement between City of Chula Vista and South Bay Community Services 1. Effective Date of Agreement: 07/01/2008 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) 420-3620 Fax Phone (619) 420-8722 7. General Duties: Operate the Community Service Program 8. Scope of Work and Schedule: A. Detailed Scope of Work: Provide assessment and treatment plan services to juvenile offenderfirst referrals following arrest and runaways. Provide individual, family and/or group counseling services to youth and families that are referred through the juvenile diversion program. Other services may include parenting classes, substance abuse counseling, mediation, educational assistance and anger management instruction. Page 15 9-20 Provide for a six-month recidivism check via ARJIS. Maintain client records including log of master list, monthly statistics and recidivism checks. Provide for crisis intervention by telephone and meetings for families in need of immediate services for mediation and counseling. Provide monthly invoice for counseling and outreach services rendered. B. Date for Commencement of Consultant Services: ( ) Same as Effective Date of Agreement (X) Other: 07/01/2008 C. Dates or Time Limits for Delivery of Deliverables: Deliverable No.1: Provide quarterly and annual reports on status of programs; Runaway and Homeless Outreach; Youth Diversion Program. D. Date for completion of all Consultant services: 06/30/2009, subject to up to four annual extensions by mutual agreement and approval of the City Manager. 9. Insurance Requirements: 1. General Liability: (I ncluding operations, products and completed operations, as applicable.) 2. Automobile Liability: 3. Workers' Compensation Employer's Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability insurance with a general aggregate limit is used, either the general aggregate limit must apply separately to this project/location or the general aggregate limit must be twice the required occurrence limit. $1,000,000 per accident for bodily injury and property damage. Statutory $1,000,000 each accident $1,000,000 disease-policy limit $1,000,000 disease-each employee 4. Professional Liability or $ 500,000 each occurrence Errors & Omissions $1,000,000 policy aggregate Page 16 9-21 Liability: 10. Materials Required to be Supplied by City to Consultant: None. 11. Compensation: 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: $120,000 per year, payable as follows: Monthlv installments of $10,000.00 per month. 12. Materials Reimbursement Arrangement Forthe 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: Edward Chew, Administrative Services Manager Chula Vista Police Department 315 4th Avenue Chula Vista, CA 91910 (619) 691-5013 Consultant: Kathryn Lembo, Executive Director South Bay Community Services 1124 Bay Blvd, Suite D Chula Vista, CA 91911 (619) 420-3620 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. Page 17 9-22 16. ( ) Consultant is Real Estate Broker and/or Salesman Not Applicable 17. Permitted Sub Consultants: None. 18. Bill Processing: A. Consultant's billing to be submitted for the following period of time: (X) Monthly B. Day of the period for submission of Consultant's billing: (Xj First of the Month C. City's Account Number: 100-14330-6401 19. Security for Performance None Required. 9-23 Page 18 CITY COUNCIL AGENDA STATEMENT ~(ft... CITY OF _-!..- (HULA VISTA ITEM TITLE: SUBMITTED BY: REVIEWED BY: SUMMARY JULY 15,2008, Item /0 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORlZING THE PURCHASE OF ELECTRONIC PARKING METERS FROM CALE PARKING SYSTEMS USA, INCORPORATED AND POM INCORPORATED IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF CITY OF CHULA VISTA REQUEST FOR BIDS 10-07/08 FOR A ONE YEAR TERM BEGINNING JULY 1, 2008 AND ENDING JUNE 30, 2009 AND AUTHORlZING THE PURCHASING AGENT TO APPROVE FIVE ONE YEAR EXTENSIONS OF THE TERM THROUGH JUNE 30, 2014. ASSISTANT DIRECTOR OF !~RE9E~.shPPMENT AGENCY AND HOUSING AUTHORlTY,/- / ~ CITY MANAGER ";::> ) ~ r Dr< G, 4/5THS VOTE: YES D NO 0 The City issued a Request for Bid to purchase electronic parking meters to replace outdated mechanical parking meters in the Downtown Parking District. Adoption of the resolution will replace all the parking meters within the District with individual and multi-space meters. 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 is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because it does not invol ve 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 the City Council adopt the resolution. BOARDS/COMMISSION RECOMMENDA nON Not Applicable. 10-1 JULY 1;;2008, Item It') Page 2 of2 DISCUSSION The purpose of issuing a Request for Bids was to fulfill the directive by the City Council of upgrading and replacing outdated and broken parking meters and to replace individual meters with multi-space meters in public parking lots, as approved through the Parking District Interim Action Plan on November 13,2007. City of Chula Vista Request for Bids 10-07/08 was advertised in the Star News and was posted electronically on Planet Bids. The objective was to contract with vendors who could provide new technology in the form of electronic individual and multi-space parking meters. Vendor quotes were based on estimated quantities and the different types of parking meters as needed by the City. The majority of parking meter companies are based internationally but have offices located in the Midwest or Eastern United States. There are no local parking meter companies. The two vendors being considered have offices in Florida and Arkansas. Seven vendors responded to the Request for Bids, two of whom provided a bid for both multi- space and individual meters. Five vendors were interviewed, and two were selected. The selection committee recommends that Cale Parking Systems USA, Incorporated provide the multi-space meters and POM Incorporated provide the individual meters. Awarding the contract to Cale and POM is in the best interest of the City as they both provide the most competitive pricing and the highest quality products to meet the City's needs. Cale and POM were also the lowest responsive bidders. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found a conflict exists, in that Councilmember Castaneda has property holdings within 500 feet of the Downtown Parking District boundaries, which is the subject of this action. FISCAL IMP ACT Funding for this action was included in the FY 2008-2009 City Budget approved on June 10, 2008. The budgeted funds include approximately $120,000 from the Parking Meter Fund and a loan of approximately $121,000 from the Redevelopment Agency, which shall be repaid in full from the Parking Meter Fund by June 30, 2010. The cost of purchasing new individual and multi-space parking meters will be approximately $241,000 of which $101,000 is for new individual meters and $140,000 is for multi-space meters. Prepared by: Diem Do Senior Project Coordinator, Redevelopment Agency and Housing Authority 10-2 RESOLUTION NO. 2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE PURCHASE OF ELECTRONIC PARKING METERS FROM CALE PARKING SYSTEMS USA, INC. AND POM INCORPORATED IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF CITY OF CHULA VISTA REQUEST FOR BIDS 10-07/08 FOR A ONE YEAR TERM BEGINNING JUL Y 1,2008 AND ENDING JUNE 30, 2009 AND AUTHORIZING THE PURCHASING AGENT TO APPROVE FIVE ONE YEAR EXTENSIONS OF THE TERM THROUGH JUNE 30, 2014. WHEREAS, City of Chula Vista Request for Bid 10-07/08 for electronic parking meters was advertised in the Star News and posted on Planet Bids; and WHEREAS, electronic parking meters are being purchased to replace outdated mechanical parking meters as described in the Parking District Interim Action Plan and approved by the City Council on November 13,2007; and WHEREAS, potential vendors submitted quotes for either or both individual and multi- space parking meters and provided pricing based upon estimated quantities and technology as needed by the City; and WHEREAS, awarding the contract to Cale and POM is in the best interest of the City as they both provide the most competitive pricing and the highest quality products to meet the City's needs; and WHEREAS, Cale and POM were also the lowest responsive bidders; and WHEREAS, the City will be expending approximately $241,000 of which $101,000 is for new individual meters and $140,000 is for multi-space meters; and WHEREAS, the funds were approved in the FY 2008-2009 City budget and those funds include approximately $120,000 from the Parking Meter Fund and a loan of approximately $121,000 from the Redevelopment Agency; and WHEREAS, the Redevelopment Agency loan shall be repaid in full from the Parking Meter Fund by June 30, 2010; and WHEREAS, the agreement is for a one year term beginning July 1,2008, and ending on June 30, 2009; and WHEREAS, staff requests that the Purchasing Agent be authorized to approve fi ve one- year extensions of the term through June 30, 2014. 10-3 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City ofChula Vista that it authorizes the purchase of electronic parking meters from Cale Parking Systems USA, Incorporated and POM Incorporated in accordance with terms and conditions of City of Chula Vista Request for Bids 10-07/08 for a one year term beginning July 1,2008, and ending June 30, 2009, and authorizing the Purchasing Agent to approve five one-year extensions of the terms through June 30, 2014. Presented by Eric Crockett Assistant Director of Redevelopment Agency and Housing Authority 10-4 Approved as to form by THE A TT ACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALL Y SIGNED UPON APPROVAL BY THE CITY COUNCIL /~ ;' ( \ ~<~ I ~ ; \ 1 j . iJ '- Ba~ 6~M~~1e{a--. . C~) \ !fnM-im City Attorney Dated: --1fm.\ Cl~ Loan Agreement Amendment between the California Energy Commission and the City of Chula Vista r\,-;'_. r' , <....----" _._-~(),,() ~' 10-5 STAR OF CALIFORNIA CALIFORNIA. ENERGY COrvnvuSSION LOA1'\1 AGREEMENT A.l\1ENDMENT This agreement is official notification of a funding award amendment from the California Energy Commission. The attachments listed below are inCOlilvratcd as part at ~his funding agreement. leD""","",,,, IAGR"",~::8-07 . ECC A.l 02/27/2008 - OS/21/20 I 0 N!-::rrnl'IT City of Chula Vi,ta ADDIllIs:> 276 Fourth Avenue, Chula Vista, CA 91910 cite PROJECT MANAGER PHON!! Calif0rrlla Energy Commission, Karen Perrin (916) 654-4104 ADDRESS 1516 Ninth Street, MS-42, Sacramento, CA 95814 PORPOSE The purpose of this A.mendment is to augment the loan with additional funds, extend the end term of the Agreement, revise the estimated amortization schedule, revise the budget details, and add special conditions to this Agreement. All other terms and conditions of the original Agreement remain unchanged. CEC: $ 425,867.00 PROGRAM _rnu ECAA-2005A Bond Series The Bank of New York AMOUNT ENCUMBERED BY 1HlS DOcmnf'IT illM 0HAnRR STATIm FISCAL YEAR $ 425,867.00 2007/08 A..'1:0UNT PREVIOUSLY I!.NCUMllERED PtlRPOSI!.Of EXl'ENDITURE $ 607,446.00 C-191, Program Loan Acct. Series 2005A TOTALMATCHSHAflE Ol'TJONALUSE $ 0.00 TOTALM10llNTTO DAU $ 1,033,313.00 1 hereby certify upon my own personal knowledge that budgeted funds are available for the period and purpose stated above. SlGNATURE OF COMMISSION ACCOUNTING OFFICER --Lf.;-.-- DAn gilT/or Tile undersigned parties have read the attachments to this agreement and wiil comply with the standards and requirements contained therein. CALIFORNIA ENERGY COMMISSION RECIPIENT AUTIlORIZE.D SIGt'lATURE DATE A\I1ll0RJZED SIGNATURE DATE. "'" PHom ''''' PHONE John P. Butler II, SSM-I (916) 654-4204 ATTACHMENTS TITLl Estimated Amortization Schedule Budget Details Resolution Special Conditions 10-6 2005A ECAA Revenue Bond Loan Number: 008-07-ECC Recipient: CITY OF CHULA VISTA Loan Amount: $1,033,313.00 Interest Rate: 3.950% Number of Payments: l2 Estimated First Disbursement Date: 02/28/2009 Estimated Project Completion Date: OS/2l/2010 Assumed First Payment Date: l2/22/20l0 Energy Savings: $2l4,654.00 Loan Based on Annual Energy Savings Date Transaction Amount Accrued Interest Principal Reduction Unpaid Principal $l,033,313.00 )2/28/2009 L2/22/20l0 J6/22/20U L2/22/20U J6/22/20l2 L2/22/20l2 J6/22/20l3 L2/22/20l3 J6/22/20U L2/22/2014 J6/22/2015 L2/22/20l5 J6/22/2016 Note: Disbursement Payment No. 1 Payment No.2 Payment No. 3 Payment NO.4 Payment No.5 Payment No.6 Payment No.7 Payment No.8 Payment No.9 Payment No. 10 Payment No. 1J. Payment No. l2 $1,033,313.00 $0.00 $l,004,810.46 $922,070.88 $837,801.45 $751,863.14 $664,222.90 $574,775.14 $483,627.83 $390,623.09 $295,828.81 $199,125.20 $100,538.48 $0.00 This Schedule is only an estimate. When your project is completed1 you will be issued a final schedule based on actual disbursement{s} and completion date. $0.00 $102,530.22 $102,530.22 $102,530.22 $102,530.22 $l02,530.22 $102,530.22 $102,530.22 $102,530.22 $102,530.22 $102,530.22 $l02,530.22 $102,529.56 $74,027.68 $19,790.64 $18,260.79 $16,591.n $U,889.98 $13,082.46 $11, 382. 9l $9,525.48 $7,735.94 $5,826.61 $3,943.50 $1,991.08 $28,502.54 $82,739.58 $84,269.43 $85,938.31 $87,640.24 $89,447.76 $91,l47.31 $93,004.74 $94,794.28 $96,703.H $98,586.72 $100,538.48 This amortization schedule assumes payments of all installments are made on their due dates in accordance with the terms of the promissory note. Any payment of installment considered to have been made late in accordance with the terms of the promissory note and any unscheduled prepayment will affect accrued interest I principal reduction, unpaid principal I and total repayment. 10-7 .EXHIBIT A ==~ BTJDGET DETAILS GLNUMBER: 008-07-ECC RECIPIENT: CITY OF CHULA VISTA SEQ NO.: INSTITUTION: BUILDING TYPE: BUILDING USE: ECM CODE: ECM STATUS: ECM BUDGET: SEQ NO.: INSTITUTION: BUILDING TYPE: BUILDING USE: ECM CODE: ECM STATUS: ECM BUDGET: SEQ NO.: INSTITUTION: BUILDING TYPE: BUILDING USE: ECM CODE: ECM STATUS: ECM BUDGET: Budget Details 1 City Other Multi Building test ECX CONV OTHER L T Approved $165,445.00 2 City Other Multi Building test MAX OTHER AIR COND $645,156.00 " ~ City Other Building Type MHO REPLACE BOIL Approved $222,712.00 10-8 ,f')'o ~~.~r!.l-I..r9(; 1.-,. V...... L"'-,,- RESOLUTION NO: 08-521-4 STATE OF CALIFORNIA STATE ENERGY RESOURCES CONSERVATION AND DEVELOPMENT COMMISSION RESOLUTION - RE: Energy Efficiency Loan to the City of Chula Vista WHEREAS, pursuant to the Energy Conservation Act of 1979, Public Resources Code Sections 25412 et. seq., the State Energy Resources Conservation and Development Commission (the "Energy Commission") is authorized to provide a loan to the City of Chula Vista (the "Borrower") to finance energy efficiency projects (the "Projects"); and WHEREAS, the California Infrastructure and Economic Development Bank (the "Bank") is authorized to finance energy efficiency loan programs administered by the Energy Commission, which includes the issuance of the Bank's bonds to finance the Energy Commission's energy efficiency financing program; and WHEREAS, the Bank is authorized to issue Energy Efficiency Revenue Bonds (the Bond Fund); and WHEREAS, in order to be eligible for funding, an energy efficiency project must be technically and economically feasible and have a simple payback of 10 years or less; and WHEREAS, the Energy Commission staff has recommended after a technical review of the loan application, that the Projects are worthy of receiving financial assistance; and THEREFORE, BE IT RESOLVED, the Energy Commission approves the recommendation of Energy Commission staff to provide a $425,867 loan augmentation to the City of Chula Vista's existing loan of $607,446 for a total loan amount of $1 ,033,313 from the Energy Conservation Assistance Account and/or the Bond Fund. BE IT FURTHER RESOLVED, that upon execution of all required documents, the Energy Commission hereby declares its intent to reimburse the Borrower from the Energy Conservation Assistance Account and/or the Bond Fund for approved Project expenditures delineated in the loan agreement that may occur on or after the date of this resolution. Dated: May 21 , 2008 STATE ENERGY RESOURCES CONSERVATION AND DEVELOPMENT COMMISSION ENS IIEL, Chairman 10-9 Special Conditions- City of Chula Vista Loan 1. The Recipient shall implement all projects in Table 1. Failure to implement all projects shall reduce the approved loan amount. The reduced loan amount will be determined by multiplying the annual energy cost savings by 10.0. If the Recipient receives progress payments that exceed this amount, the Recipient shall refund the difference to the Commission. Table 1: City of Chula Vista. Summary of Recommended Proiects Estimated Project Estimated Annual Energy Efficiency Cost and Loan Cost Savings Payback* Projects amount (Principal) (Years) Mechanical Measures Install HVAC, retrofit HVAC compressor with variable speed oil less centrifugal compressor, install VSP on water pumps $645,156 $144,798 4.5 fans, air handler fans and cooling tower fans, upgrade energy management controls on various HVAC systems. Lighting Measures (multipie facilities and pool sites) Upgrade multiple lamps to high $165,445 $36,161 4.5 effiCiency lighting Pool Efficiency Measures Install 2 high efficiency condensing boilers, Replace swimming $222,712 $33,695 pool cover, reactivate hot water 6.6 heatino panels. GRAND TOTAL ALL MEASURES $1,033,313** $214,654 4.8 . Payback based on the loan amount divided by the annual savings. *. Includes both February 27 and May 21, 2008 loan approval amounts. 10-10 2. Energy cost savings, as determined by the Commission are based on energy usage and utility costs at the time of the issuance of this Loan, and the information and data in the Borrower's loan application and technical studies. The following will not affect the Commission's initial finding of energy cost savings: a) changes in energy use. and/or rate schedules which occur after issuance of the Loan, except as required in the Special Conditions, b) deviations in the project work scope from what was approved by the Energy Commission, c) changes in the Borrower's facility and/or equipment which occ;:ur after the issuance of the loan, including, but not limited to maintenance, operations, schedules, employees and facility alterations and expansions, d) deviations, omissions or errors found in the loan application and technical studies after the loan award. The Borrower is responsible for ensuring the accuracy of the information contained in its loan application and technical studies. 10-11 R"'()~ ORDINANCE NO. __\\) ,;>-\)0 . GN" AN ORDINANCE OF THE CITY ~~A VISTA At\1ENTIING SECTIONS ~O, 8.25.070 At"TI 8.25.095 OF THE CHULA ~AMUWCIPAL CODE The City Council of the City ofChula Vista does ordain as follows: SECTION I. That Sections 8.25.020, 8.25.070 and 8.25.095 of tbe Chula Vista Municipal Code are bereby amended to read as follows: 8.25.020 Definitions. F or purposes of this chapter, and other municipal code provIsions referring hereto, the following words shall have the meanings ascribed thereto, unless the context in which they are used clearly indicates another meanmg: AI. "Aluminum" means recoverable materials made from aluminum, such as used aluminum food or beverage containers, aluminum foil, siding, screening, and other items manufactured from aluminum. A2. "Applicant" means any individual, firm, limited liability company, association, partnership, political subdivision, government agency, municipality, industry, public or private corporation, or any other entity whatsoever who applies to the City for the applicable permits to undertake any construction, demolition, or renovation project within the City of Chula Vista. B. "Bin" shall mean t~ose plastic or metal containers of one cubic yard (202 gallons) to eight cubic yards that have plastic lids on the top (unless metal lids are designated by the City Manager). Bins are used for weekly or more frequent collection of waste, yard waste or designated recyclables by the City or its franchise agent. C. "Bulky waste" means discarded items whose large size or shape precludes or complicates their handling by standard residential or commercial solid waste, recycling and green waste collection methods. Bulky items include white goods, furniture, large auto parts, trees, stumps, carpet and other potentially oversize wastes. Bulky waste does not include hazardous or infectious waste unless specifically exempt, such as freon- containing refrigerators. D. "Buy-back center" means a facility licensed and permitted by the Department of Conservation and/or local jurisdiction which pays a fee for the delivery and transfer of ownership to the facility of source-separated materials for the purpose of recycling or composting. E. "Cardboard" means post-consumer waste paper grade corrugated cardboard (grade No. II), kraft (brown) paper bags, or solid fiber boxes which have served their packaging purposes and are discarded and can later be reclaimed for collection and recovery for recycling. J:'.Ai..om",/\ELIS~\QRD(NANCES'COl\s"ucJion Dcmo\ilion OrCin::nce'.cV~lC 8_ -. 1-1.'::"~1.lc~n ec).doc Ordinance No. Page 2 F. "Carts" shall mean those plastic containers with a capacity of less than 202 gallons (one cubic yard). Carts shall have a fixed lid and are designed for automated and/or semi-automated collection of solid waste, yard waste and/or designated recyclables by the City or its franchise agent. G. "City" shall mean the City ofChula Vista, a municipal cOl1loration of the State of California, in its present incorporated form or in any later reorganized, consolidated, enlarged or reincol1lorated form. R. "Collection" means the act of removing and conveying nonhazardous and noninfectious solid waste, commingled or source- separated materials, from residential, commercial, industrial, or institutional (governmental) generators to a facility for processing, composting, transfer, disposal or transformation. 1. "Commercial" means a site and/or business zoned or permitted for any use other than residential including, but not limited to, commercial, light industrial, industrial and agricultural. Commercial generators that generate three or more cubic yards of waste per week are serviced by a bin or compactor collection vehicle. J. "Commercial recyclables" means designated recyclable materials from the two commercial subcategories of "offlce" and "hospitality." Materials include, but are not limited to: office paper, cardboard, newspaper, and aluminum from offices; and cardboard, glass bottles and jars, plastic bottles, aluminum, tin and bi-metal cans, and white goods from hospitality establishments. K. "Compactor containers" means those fully enclosed metal containers of two to 40 cubic yards provided by the City's hauler or customer. Compactors typically serve very large quantity generators. L. "Compost" means the product resulting from the controlled biological decomposition of organic wastes that are source-separated from the municipal solid waste stream. . M. "Composting" shall mean the controlled and monitored process of converting organic wastes into compost. N 1. "Construction" means the building of any facility or structure or any portion thereof including any tenant improvements to an existing facility or structure. N2. "Construction and demolition waste" means used or discarded materials removed from the premises during demolition, dredging, grubbing, and building, resulting from construction, remodeling, repair, and/or demolition activities on housing, commercial, governmental buildings, and other structures and pavement. o l. "Contract or franchise agent(s)" means any person or private or public entity designated by the City Council, pursuant to Article XII of the City Charter and Chapter 8.23 CVMC, as being responsible for administering the collection, processing and/or disposal of solid waste or designated recyclables. 11-2 Ordinance No. Page 3 02. "Conversion rate" means the rate set forth in the standardized conversion rate table approved by the City pursuant to this chapter for use in estimating the volume or weight of materials identified in a waste management report 03. "Covered project" shall have the meaning set forth in CYMC 8.25.095. 04. "Demolition" means the decimating, deconstructing, razing, ruining, tearing down or wrecking of any facility, structure, pavement or building, whether in whole or in part, whether interior or exterior. 05. "Divert" means to use material for any purpose other than disposal in a landfill or transformation facility. 06. "Diversion requirement" means the diversion of 90 percent of inert waste and not less than 50 percent of the remaining waste generated via reuse or recycling, unless a partial or full diversion exemption has been granted pursuant to CYMC 8.25.095, in which case the diversion requirement shall be the maximum feasible diversion rate established by the Waste Management Report Compliance Official for the project P. "Recycling box" shall mean those containers with a capacity of 18 gallons to 32 gallons which are supplied by the City or its franchise agent for manual collection of designated recyclables at special events. Q. "Curbside collection" means the service of removing and conveying nonhazardous and noninfectious solid waste, source-separated recyclables and/or green waste from the public thoroughfare at the curb or alley. (The City shall make the final detern1ination regarding eligibility for curbside collection, which shall generally apply to small quantity generators.) Rl. "Designated containers" ("containers") shall mean those containers designated .by the City Manager for temporary storage and collection of waste or designated recyclables including but not limited to curbside bins, carts, bins, roll-off boxes, and/or compactor containers. R2. "Designated recyclables" means those materials designated by the City Manager for recovery or reuse. Any material having an economic value on the secondary materials market or that is otherwise salvageable shall be included and/or other materials that have been separated from other small quantity Or large quantity generators for the purposes of being recycled for resale and/or reuse, and placed at a designated recycling or waste collection or storage location or in a designated recycling or waste container for the purpose of collection and processing, or any such designated recyclable materials collected under a mixed waste processing program. The list includes, but is not limited to: newspaper (ONP), mixed paper (MP), corrugated cardboard (OCC), steel, tin and bi-metal cans, metal coat hangers, aluminum containers, white goods, glass food and beverage containers, No. 1 and No. 2 plastic containers, all California redemption containers, used oil, used oil filters, yard waste, clean lumber, concrete and asphalt. 11-3 Ordinance No. Page 4 S. "Designated solid waste and recycling collection or storage location" means a place designated by the City Manager for storage and/or collection of waste, green waste and/or recyclables pursuant to CvMC 8.24.100. Designated locations include, but are not limited to, the curb, alley, waste/recycling enclosure, a loading dock, or basement of a commercial enterprise or multifamily complex where waste and recyclables are placed for collection or temporary storage prior to collection by the City's franchise agent. T. "franchised recyclables" means any residential, commercial or industrial recyclables, as defmed herein, to be collected by the City's contract agent or franchisee, placed in designated recycling containers or at designated recycling collection or storage location(s). U. "Garbage" means all nonhazardous, noninfectious organic waste including: kitchen and table waste, and arumal or vegetable waste that attends or results from the storage, preparation, cooking, or handling of food stuffs, except organic wastes separated therefrom and used in composting in accordance with CYMC 8.25.090. Y. "Generator" means every owner, tenant, occupant or person owning or having the care and control of any premises in the City including the temporary use of parks, open space or a public thoroughfare. W. "Glass bottles and jars" means food and beverage containers made from silica or sand, soda ash, and limestone, the product being transparent or translucent and being used for packaging or bottling, including container glass designated redeemable under the California Beverage Container Recycling and Litter Reduction Law, Division 12.1 (commencing with Section 14500) of the California Public Resources Code, as well as glass jars and bottles without redeemable value ("scrap"), but excluding household, kitchen, and other sources of noncontainer glass such as drinking glasses, ceramics, light bulbs, window pane glass, and similar glass products that are not bottles or jars. X. "Grantee" shall mean the City's franchise agent(s). Y. "Green wastes" means the leaves, grass, weeds, shrubs, tree branches, tree trunk and other wood materials from trees. Green waste may also include preconsumer food waste, incidental amounts of waxed or plastic-coated cardboard and mixed paper, and unpainted and untreated lumber. Green waste does not include tree stumps in excess of 35 pounds, more than incidental dirt or rock, plastic, glass, metal, painted or treated lumber, plywood, particle board, or other manufactured products that contain glue, formaldehyde, nonorganic or nonbiodegradable materials. Z. "Green waste processing"l)1eans the accumulation and storage of green waste in a manner that leads to the intentional or unintentional thermophilic decomposition of green waste. The acceptance of payment for green waste and the accumulation of more than 15 yards or three tons per year of unprocessed, shredded, ground or composted material shall constitute green waste processing and is subject to the City, County and State requirements regulating compost and/or solid waste facilities. 11-4 Ordinance No. Page 5 Residential, commercial and agricultural sites that generate, stockpile or process green waste material generated on-site and used on-site without sale of finished or unfinished material, that are otherwise compliant with all conditions of the municipal code for nuisance, may apply for an annual exemption. AA. "Hazardous or toxic waste" means any waste material or mixture of wastes which is toxic, corrosive, flammable, explosive, an irritant, a strong sensitizer, and which generates pressure through decomposition, heat or other means, if such a waste or mixture of wastes may cause substantial personal injury, serious illness or harm to humans, domestic animals, or wildlife, during, or as an approximate result of, any disposal of such wastes or mixtures of wastes as defined in Section 25117 of the California Health and Safety Code, which is not legally disposable at a Class III landfill. BB. "Hospitality" means any establishment that offers dining services, food or beverage sales. This includes taverns, bars, cafeterias, and restaurants, as well as motels and hotels (temporary housing of less than one month duration), hospitals, schools, colleges, and other such establishments that have dining services, or a restaurant or bar, on their premIses. Cc. "[ndustrial recyclables" means recyclables from industrial, construction, and demolition operations, including, but not limited to, asphalt, concrete, dirt, land-clearing brush, sand and rock. DD. "Industrial solid waste" means solid waste originating from mechanized manufacturing facilities, factories, refineries, construction and demolition projects, ancllor publicly operated treatment works, excluding recyclables and compostables, if properly handled and treated, and excluding hazardous or toxic waste. EE. "Inert waste" means materials such as concrete, soil, asphalt, . ceramics, earthen cooking ware, automotive safety glass, and mirrors. FF. "Improper disposal" means the discarding of any item or items upon public or private premises that were not generated on the premises as a part of its authorized use, unless written consent of the property owner is first obtained. GG. "Improper disposal site" means any premises that have intentionally or unintentionally accumulated solid waste or recyclables and/or charged a fee for accepting material without a solid waste or composting permit from the county local enforcement agency. This does not include businesses licensed and permitted in the City to purchase source-separated recyclables. HH. "Incidental waste" means less than one pound of waste deposited in a public litter bin or designated waste container to prevent litter, such as waste from a fast food meal deposited in a designated waste container or public litter bin by a pedestrian or vehicle operator. 11-5 Ordinance No. Page 6 II. "Industrial generator" means any property or generator that is engaged in the manufacture of products including but not limited to construction and demolition. Industrial generators are typically serviced by roll-off box containers of IO-yard to 40-yard capacities and typically generate inert materials such as asphalt, concrete, building debris and some wood and dry green waste. JJ. "Industrial" means any form of mechanized manufacturing facilities, factories, refineries, and construction. and demolition operations, excluding hazardous waste operations. KK.. "Institutional" shall mean any premises owned and/or occupied by local, State and federal agencies, typically office or education facilities with a common waste stream. LL. "Integrated solid waste management" means a planned program for effectively controlling the storage, collection, transportation, processing and reuse, conversion, or disposal of solid waste, recyclables and/or compostables in a safe, sanitary, aesthetically acceptable, environmentally sound and economical manner. It. includes all administrative, financial, environmental, legal and planning functions as well as the operational aspects of solid waste handling, disposal, litter control and resource recovery systems necessary to achieve established objectives. MM. "Landfill" means a disposal system by which solid waste is deposited in a specially prepared area which provi.des for environmental monitoring and treatment pursuant to the California Code of Regulations, California Public Resources Code and the Federal Resource Conservation and Recovery Act. NN. "Large quantity generator" means those residential, commercial, industrial and institutional entities that generate more than 300 gallons of waste per week excluding source-separated recyclables diverted from disposal or transformation. 00. "Mixed waste processing" means a system of recovering recyclables from the mixed waste stream through separation at a processing facility, transfer station, landfill, or other such facility, instead of separation at the primary waste generation source. PP. "Multifamily" means a structure or structures containing a total of four or more dwelling units in any vertical or horizontal arrangement on a single lot or building site. QQ. "Newspaper" means newsprint-grade paper including any inserts that come in the paper, and excluding soiled paper, all magazines and other periodicals, telephone books, as well as all other paper products of any nature. RRI. "Non-covered project" shall have the meaning set forth in CYMC 8.25.095. RR2. "Nuisance" means anything which is injurious to human health, or is indecent or offensive to the senses, and interferes with the comfortable enjoyment of life or property, and affects at the same time an 11-6 Ordinance No. Page 7 entire community or neighborhood, or any number of persons, although the extent of annoyance or damage inflicted upon the individual may be unequal, and which occurs as a result of the storage, r.emoval, transport, processing, or. disposal of solid waste, compost, andior designated recyclables. SS. "Office" or "offices" for purposes of this chapter shall mean any office, combination of offices, or connected building or office space regardless of office affiliation, ownership, or occupancy. This includes, but is not limited to, businesses used for retail, wholesale, professional services, legal services, financial services (to include banks), medical services, shipping and receiving areas, churches, schools, colleges, and libraries. IT. "Office paper" means waste paper grades of white and colored ledgers and computer paper. Examples include forms, copy paper, stationety, and other papers that are generally associated with desk and employee work area activity, and any additional materials to be added by ordinance. UU 1. "Performance deposit" means cash, money order, check, letter of credit, or surety bond in the amount set forth in section 8.25.095.B.3. UU2. "Plastic bottle" means a plastic container with narrow neck or mouth opening smaller than the diameter of the container body, used for containing milk, juice, soft drinks, water, detergent, shampoo or other such substances intended for household or hospitality use; to be distinguished from nonbottle containers (e.g., deli or margarine tub containers) and from nonhousehold plastic bottles such as those for containing motor oil, solvents, and other nonhousehold substances. VV. "Pollution" means the condition caused by the presence in or on a body of water, soil, or air of any solid waste or substance derived therefrom in such quantity, or such nature and duration, or under such condition, that the quality, appearance, or usefulness of the water, soil, land, or air is significantly degraded or adversely altered. WW 1. "Processing" means the reduction, separation, recovery, conversion, or recycling of any component(s) of solid waste. WW2. "Project" means any activity which requires an application for a construction or demolition permit, or any similar permit from the City of Chula Vista. Xx. "Putrescible wastes" means the waste in organic material with the potential decomposition capacity to emit noticeable quantities of odor and gas by-products. Material in this category includes, but is not limited to, kitchen waste, dead animals, food from containers, etc., except organic wastes separated therefrom and used in composting. YY. "Recyclables" means any materials that are recyclable, reclaimable, andior reusable within the following generating categories: small quantity generator and large quantity generator. Any material having an economic value on the secondary materials market or that is otherwise salvageable shall be included andior other materials that have been 11-7 Ordinance No. Page 8 separated from other small or large quantity generators for the purposes of being recycled for resale and/or reuse, and placed at a designated recycling or waste collection or storage location or in a designated recyding or waste container for the purpose of collection and processing, or any such designated recyclable materials collected under a mixed waste processing program. ZZ. "Recyding" shall mean any process by which materials which would otherwise be discarded, deposited in a landfill or transformation facility and become solid waste are collected (source-separated, commingled, or as "mixed waste"), separated and/or processed, and returned to the economic mainstream in the form of raw materials or . products or materials which are otherwise salvaged or recovered for reuse. AAA. "Refuse" means garbage and rubbish. BBB. "Removal" means the act of taking solid wastes or designated recyclables from the place of generation either by the contract or franchise agent(s), or by a person in control of the premises. CCC 1. "Removal frequency" means frequency of removal of solid wastes or recydables from the place of generation. CCC2. "Renovation" means any change, addition, or modification in an existing structure. DDD. "Residential," for purposes of this chapter, means any building or portion thereof designed or used exclusively as the residence or sleeping place of one or more persons, including single- and multiple- family dwellings, apartment-hotels, boarding and lodging houses. "Residential" does not include short-term residential uses, such as motels, tourist cabins, or hostels which are regulated as hospitality establishments. EEE I. "Residential recyclables" means those specific recyclable materials from residential solid waste (single-family and multifamily) induding, but not limited to, aluminum, glass botHes and jars, newspaper, plastic bottles, tin and bi-metal cans, white goods, and yard waste. EEE2. "Reuse" means further or repeated use. FFF. "Roll-off service" means service provided for the collection, removal and disposal of industrial waste such as construction, demolition and other primarily inert nonputrescible wastes and green wastes. Roll-off service is usually provided using metal containers of 10 to 40 cubic yards that are open on the top with doors on one end. GGG. "Rubbish" means nonputrescible solid wastes such as ashes, paper, glass, bedding, crockery, plastics, rubber by-products or litter. Such materials that are designated as recyclable or compost may be exempt from categorizing as rubbish; provided, such materials are handled, processed and maintained in a properly regulated manner. HHH. "Salvaging or salvageable" means the controlled and/or authorized storage and removal of solid waste, designated recyclables or recoverable materials. 11-8 Ordinance No. Page 9 III. "Scavenging" means the uncontrolled and/or unauthorized removal of solid waste, designated recyclables or recoverable materials. Such activiry is unlawful and is a misdemeanor punishable by up to six months in jail and $1,000 in civil penalties under CVMC 8.24.200 and 8.25.080 and Chapter 9, Section 41950 of the California Integrated Waste Management Act of 1989. JJJ. "To segregate waste material" m~ans any of the following: the placement of designated recyclables in separate containers; the binding or bagging of designated recyclables separately from other waste material and placing in a separate container from refuse, or the same container as refuse; and the physical separation of designated recyclables from other waste material (either at the generating source, solid waste transfer station, or processing facility). KKK. "Small quantity generator" means those residential, commercial, industrial and institutional entities that generate less than 300 gallons of waste per week excluding source-separated recyclables diverted from disposal or transformation. LLL. "Solid waste" means all putrescible and nonputrescible solid, semisolid and liquid wastes, such as refuse, garbage, rubbish, ashes, industrial wastes, demolition and construction wastes, abandoned vehicles and parts thereof, discarded home and industrial appliances, manure, vegetable or animal solid and semisolid wastes, and includes liquid wastes disposed of in conjunction with solid wastes at solid waste transfer/processing stations or disposal sites, which are generated by residential, commercial or industrial sites within the City. Solid waste shall .aot include: hazardous and infectious waste, sewage collected and treated in a municipal or regional . sewage system or materials or substances having commercial value' or other importance which can be salvaged for reuse, recycling, composting or resale. MMM. "State" shall mean the State of California. NNN. "Storage" means the interim containment of solid wastes, yard wastes, or recyclables in an approved manner after generation and prior to disposal, collection or processing. ("Interim" means for one week or less; roll-off containers may store nonputrescible waste for up to 30 days.) 000. "Streets and byways" shall mean the public streets, ways, alleys and places as the same now or may hereafter exist within said city, including State highways now or hereafter established within said city. PPPL "Tin and bi-metal cans" means any steel food and beverage containers with a tin or aluminum plating. PPP2. "Total project costs" means the total value of a project as calculated using Chula Vista's standard valuation multipliers. QQQ. "Transfer or processing station" means those facilities utilized to receive solid wastes and to temporarily store, separate, convert, or otherwise process the solid waste and/or recyclables. RRRL "Unit" means an individual residence contained in a residential multifamily complex. 11-9 Ordinance No. Page 10 RRR2. "Waste management report (WMR)" means a 'WMR form, approved by the City Manager or designee, for the purpose of compliance with this chapter. RRRJ. "Waste Management Report Compliance Official" means the designated staff person(s) authorized by the City Manager and responsible for implementing the construction and demolition debris recycling program. SSS. "White goods" means kitchen or other large enameled appliances which include, but are not limited to, refrigerators, washers, and dryers. TTT. "Wood waste" means lumber and wood products but excludes tree stumps in excess of 35 pounds, more than incidental dirt or rock, plastic, glass, metal, painted or treated wood, plywood, particle board or other manufactured products that contain glue, formaldehyde, nonorganic or nonbiodegradable materials. UUU. "Vector" means any nuisance such as odor, unsightliness, sound, or a carner, usually insects or rodents, that is capable of transmitting a disease. VVV. "Yard waste" means the leaves, grass, weeds, and wood materials from trees and shrubs from the single-family and multifamily residential sources of the City's green waste (to include landscape haulings from residential sources). Acceptable materials for collection include all yard waste as herein defined, excluding treated or processed wood or lumber, bulky waste or any other materials as shall be determined by the City as to not be salvageable. All acceptable yard waste shall be void of nails, wire, rocks, dirt or any other material that is not considered yard waste. . 8.25.070 Reports. A. All commercial and industrial establishments shall submit recycling tonnage documentation on an annual basis to the City's conservation coordinator, due on or before January 31st, for the previous year. Annual reporting shall be on the form promulgated by the City Manager, and commence on the first anniversary of the date set forth in the mandatory recycling implementation schedule as established in this chapter as July I, 1993. Voluntary reporting prior to the required mandatory recycling is encouraged. B. All applicants for a construction or demolition permit for a covered project must submit a waste management report (WMR) to the Waste Management Report Compliance Official for approval, prior to permit issuance, per CVMC 8.25.095. 11-10 Ordinance No. Page 11 8.25.095 Construction and demolition debris recycling. A. Projects. 1. Covered Projects. The following project categories are covered projects and must comply with this section: a. Any project requiring a permit for demolition or construction, with a project valuation of $20,000 or more, unless defined as a non-covered project in subsection (A)(3) of this section. b. Any sequenced developments, such as housing subdivision construction or subdivision demolition must be considered as a "project" in its entirety for purposes of this section, and not as a series of individual projects. . 2. City-Sponsored Projects. All City construction and demolition projects shall be considered "covered projects" and shall submit a waste management report to the City Manager or designee prior to issuance of any construction or demolition permits. 3. Non-Covered Projects. A performance. deposit and waste management report shall not be required for the following: a. Work for which a construction or demolition permit is not required. b. Roofing projects that do not include tear-off of existing roof. c. Work for which only a plumbing, only an electrical, or only a mechanical permit is required. d. Seismic tie-down projects. e. Projects less than 10,000 square feet, where no structural building modifications are required. f. Emergency required to protect public health and safety. g. Individual single-family home renovations that are not part of a larger project. While not required, it shall be encouraged that at least 50 percent of all project-related construction, renovation and demolition waste from non-covered projects be diverted. B. Submission of Waste Management Report. 1. Construction and Demolition Waste Management Report Forms. Applicants for any covered project shall complete and submit a construction and demolition waste management report on a waste management report form (WMR) approved by the City for this purpose. The WMR shall be submitted for review and approval prior to issuance of a construction or demolition permit. The completed WMR shall indicate all of the following: a. The type of project; b. The total square footage of the project; c. The estimated volume or weight of construction and demolition debris, by material type, to be generated; d. The maximum volume or weight of construction and demolition debris that will be recycled or diverted from the landfill; 11-11 Ordinance No. Page 12 e. The maximum volume or weight of construction and demolition debris that will be disposed of in a landfill; and f. The vendors or facilities that the applicant proposes to use to collect, process or receive the construction and demolition debris. In estimating the volume or weight of materials identified in the WiVlR, the applicant shall use the standardized conversion rates established and approved by the City for this purpose. 2. Initial Application. Notwithstanding any other provision of this code, no construction or demolition permit maybe issued until the initial construction and demolition waste management report has been approved by the WlvIR Compliance Official. The WivIR Compliance Official will respond to the applicant's WiVlR submittal within 10 business days with an approval, denial or request for clarification. If the WiVlR Compliance Official does not respond within 10 business days, the applicant should notify the Official. After notification by the applicant, the Official will then have three business days to complete the review. If the review is not completed within three business days after the notification, the deposit requirement will be waived. 3. Amount of Performance deposit. The applicant for any covered project shall submit to the City a performance deposit. The amount of the performance deposit shall be calculated as the lesser of three percent of the total project cost or $30,000. All letters of credit must be issued by a financial institution acceptable to the City and on a form prescribed by the City and approved by the City Attorney. All bonds shall be in the form prescribed by the City and by such sureties which are admitted insurers in the State of California, are subject to regulation by the Department of' Insurance, and which satisfy all State requirements. The City shall not accept a surety bond for less than $10,000. The WMR Compliance Official shall waive the performance deposit if the total deposit required pursuant to this section would be $SO.OO or less. Performance deposit funds in the form of cash, money order, or check will be placed in a secured account, subject to interest. The performance deposit shall be returned to the applicant upon acceptance of proof of compliance in full, or if partial compliance, on a prorated basis dependent on the degree of compliance. All interest earned will be the property of the City and used for waste reduction and recycling activities. 4. Documentation. Within 30 days after demolition is completed (if a demolition permit only) or 30 days after the issuance of a certificate of occupancy or at the time of issuing the last certificate of occupancy for units within a phased project of any covered project, the applicants shall submit to the WMR Compliance Official, documentation that it has met the divers.ion requirement for the project, unless applicant has been granted an exemption pursuant to subsection (C) of this section. The documentation shall include all of the following: a. Receipts from the vendor or facility that received each material, showing the actual weight or volume of that material; 11-12 Ordinance No. Page 13 b. A copy of the completed waste management report form, in its entirety; and c. Photographs and narrative documentation of the applicant's reuse activities. 5. Weighing of Wastes. Applicants shall make reasonable efforts to ensure that all construction, renovation and demolition waste diverted for reuse or disposed of is measured and recorded using the most accurate method of measurement available. To the extent practical, all construction. renovation and demolition waste shall be weighed by measurement on scales. Such scales shall be in compliance with all regulatory requirements for accuracy and maintenance. For construction, renovation and demolition waste for which weighing is not practical due to small size or other considerations, a volumetric measurement shall be used. For conversion of volumetric measurements to weight, the applicant shall use the standardized rates established by the conversion rates table approved by the City for this purpose. Conversion rate tables will be included with the waste management report form. 6. Determination of Compliance and Release of Performance Deposit. The WMR Compliance Official shall review the information submitted under this section and determine whether the applicant has complied with the diversion requirement, as follows: a.. Compliance. If the WMR Compliance Official determines that the applicant has fully complied with the diversion requirement applicable to the project, he or she shall cause the release of the performance deposit to the applicant within 30 days of the applicant's submission of the documentation required under this section. If the applicant has complied in part, a portion of the performance deposit will be withheld. The amount withheld will be proportional to the percentage of materials that are not recycled/diverted. b. Noncompliance. If the WMR Compliance Official determines that the applicant failed to submit the documentation within the requlred time period, then the performance deposit shall be forfeited to the City. All forfeited and/or unrecovered funds shall be used for waste reduction and recycling activities. C. Exemption. I. Application. If an applicant for a covered project experiences unique circumstances that the applicant believes make it infeasible to comply with the diversion requirement, the applicant may apply for an exemption at the time that he or she submits the WMR. The applicant shall indicate on the WMR the maximum rate of diversion he or she believes is feasible for each material and the specific circumstances that he or she believes makes it infeasible to comply with the diversion requirement. 2. Meeting with WMR Compliance Official. The WMR Compliance Official shall review the information supplied by the applicant and may meet with the applicant to discuss possible ways of meeting the diversion requirement. 11-13 Ordinance No. Page 14 3. Granting of Exemption. If the 'NNlR Compliance Official determines that it is infeasible for the applicant to meet the diversion requirement due to unique circumstances, he or she shall determine the maximum feasible diversion rate for each material and shall indicate this rate on the Wi\1R submitted by the applicant. The WMR Compliance Official shall return a copy of the WMR to the applicant marked "Approved with Exemption." The applicant shall then be responsible for diverting the revised rate noted by the Wi\1R Compliance Official on the approved WMR, in compliance with the provision~ of this section. 4. Denial of Exemption. If the WMR Compliance Official determines that it is possible for the applicant to meet the diversion requirement, he or she shall so inform the applicant in writing. The applicant shall resubmit a WMR form in full compliance with this section. If the applicant fails to resubmit the WMR, or if the resubmitted WMR does not comply with this section, the WMR Compliance Official shall deny the WMR. D. Appeal. Appeals of a determination made by the. WMR Compliance Official under this section shall be made to the City Manager or designee. The appeal shall be in writing and filed with the City Clerk within 10 business days of issuance of the WMR Compliance Official's decision. The appeal shall be limited to the following issues: (I) the granting or denial of an exemption; and (2) the amount of security to be released. The decision of the City Manager or designee shall be final. SECTION II. EFFECTIVE DATE. This ordinance will take effect and be in force thirty days after final passage. Presented by Approved as to form by Jack Griffin Director of Public Works ....;!t~ /2- ~~"6 1-" Bart C. MJesfeld Interim City Attorney 11-14 CITY COUNCIL AGENDA STATEMENT ~\'f::.. (In' OF ~ (HULA VISTA ITEM TITLE: SUBMITTED BY: REVIEWED BY: JULY 15,2008 Item ) Q RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ORDERING THE SUBMISSION TO THE QUALIFIED ELECTORS OF THE CITY OF A MEASURE RELATING TO THE CITY'S TELEC01vuvlliNTCATIONS USERS' TA.X AT THE SPECIAL I'vlUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVn,'ffiER 4, 2008; DECLARING THE EXISTENCE OF A1'f EMERGENCY NECESSITATING SUCH ACTION; AND DIRECTING THE CITY ATTORNEY TO PREPARE A1'f I.,vlPARTLA.L ANALYSIS OF THE MEASlTRE (UNANIMOUS VOTE REQUIRED) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING $105,000 FROM THE A VAILABLE BALANCE OF THE GENERAL FUND TO THE CITY CLERK'S AND NON-DEPARTMENTAL BUDGET TO . ) COVER ANTICIPATED COSTS AND EXPENSES RELATED TO ELECTION COSTS, AND PRINTING AND 1vLi-\ILING. COSTS (4/5THS VOTE REQUIRED) DIRECTOR OF FINANCE/TREASURE'Wn~ CITY 1vLA.NAGER <;' -S~ J) e ~ 4/5THS VOTE: YES I X I NO D SlJl\1ivlARY Chula Vista's Utility Users' Tax (UUT) was adopted in 1970 as a means to help fund public services and capital improvement projects through the City's General FLmd. The City receives UUT based on the usage of natural gas, electricity and telecommunications. In fiscal year 2006- 07, the total UUT received was approximately $7.0 million, which represents 4.3% of General Fund revenues. The current rates charged are .00919 per therm, .0025 per kilowatt, and 5% on telephone. There are over 150 cities in California with a Utility Users Tax. City staff is recommending that the UUT on telecommunications be updated. The resolutions presented for the Council's consideration would (i) approve an ordinance to be submitted to the voters for this purpose; and (ii) appropriate the nmds necessary to cover the related costs. 12-1 I/" JUL Y 15, 2008, Item ,cr- Page 2 of 5 ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance \oVith the California Environmental Quality Act (CEQA) and has determined that the activity of calling and giving notice of a special election for the purpose of updating the Utility Users Tax (UTT) on telecommunications is not a "Project" as deftned under Section 15378 of the State CEQA Guidelines because it will not result in a physical change to the environment; therefore, pursuant to Section l5060(c)(3) of the State CEQA Guidelines the actions proposed are not subject to CEQA. RECOMMENDA nON That Council adopts the resolutions. BOARDS/COMMISSION RECOMMEl'l1)A nON Not applicable. DISCUSSION In 1970, the City ftrst adopted a UUT that is applied to usage of natural gas, electricity and telecommunications. The City's UUT ordinance (Chula Vista Municipal Code Chapter 3.44) is outdated as it applies to telecommunications and needs to be amended to reflect recent changes in Federal tax law and to modernize the deftnition of telecommunications so that it is technology neutral. Presently, the City's ooT is imposed at a rate of 5% of the charges billed for telephone communications services. The City's tax has been historically applied in a similarrrtanner as the application of the Federal Excise Tax (FET) upon local and long distance telecommunication services as the Internal Revenue Service (IRS) interprets the FET. The FET statute deftnes long distance or "toll" calls as those for which charges varied according to both the elapsed time of the call and the distance between the persons on the call. Today, long distance calls are based on time only, or in the case of cellular calls, they are based on a flat monthly rate. On May 25, 2006, the IRS issued a Notice that it intended to stop applying the FET to nearly all telephone communication services, except local exchange services, which leaves only about 25% of all the telecommunication services as federally taxable. This IRS action came following many federal court losses involving the outdated deftnition of "toll telephone service" (or long distance) contained in the FET. Like the vast majority of California cities that have a liuT ordinance, Chula Vista's ooT ordinance refers to the FET and some of its many exemptions, in response to the telephone companies' request of many years ago to do so to achieve administrative ease. The Treasury Department's May 25th Notice reversed its prior Revenue Rulings and interpretation of the FET. The proposed Ordinance is an updated version of the telecommunications portion of the City's existing (juT ordinance. It is intended to replace those portions of the existing ordinance that apply to telecommunications. The new ordinance would modernize the telecommunications tax deftnitions and other provisions by, among other things, eliminating the reference to the FET and broadening the scope of telecommunication services that already include intrastate services but will now 12-2 JULY IS, 2008, Item~ Page 3 of 5 include: interstate, and international telecommunication services; private communication services (e.g, T-l lines); paging; and VoIP and toll free numbers. Importantly, the new definitions are teclmology-neutral and anticipate additional changes in teclmology, reflecting the modem use of telecommunications. This updating of definitions closes "teclmology" loopholes, and ensures that all taxpayers ~vill be treated equitably, regardless of the teclmology used. This more equitable application broadens the tax base and allows the City to reduce the tax rate on current taxpayers that make up approximately 80% of all wireless telecommunication customers with no net loss of revenue anticipated. The reduction from a tax rate of 5% to 4.75% for intrastate services amounts to $850,000 which is anticipated to be recovered through the 20% of wireless customers who currently do not pay the ta,< and the application to interstate and international calls. The broadening of the tax base will now include interstate and international services for wireless and land line telecommunication customers. Telecommunication services do not include cable or video programming services that are subject to a cable or video service franchise fee. The total fiscal year 2006/07 UUT revenue received was approximately $7.0. million for the General Fund, representing approximately 4.3% of total General Fund revenue. The telecommunications related portion of the UUT revenue is approximately $4.6 million. An estimated 75% or $3.4 million of these revenues are derived from wireless telecommunications. The loss of these revenues would have a substantial impact on the City's ability to provide essential services, including public safety. Electric 30% Wired 25% Wireless ~ 75% $3.4M Telecomm eE% Over twenty cities throughout the state have recently g<,me to ballot and successfully adopted a modem UUT ordinance (see Attachment A - Proposed Ordinance) with only one initially failing to pass their ballot measure (Covina's initial measure failed, but a subsequent initiative reinstated the ordinance). Detailed information about each city's ballot process, challenges and results is provided in Attachment B. Recently in April 2008, three more cities successfully passed their UUT ballot measures. The information below summarizes the data from both Attachment B and the results of the April 2008 election: . Number of Cities that went to Ballot 22 . Number of Successful UUT Elections 21 . Number of Cities that Reduced Rate 14 0 Number of Cities that Maintained Rate 7 . Number of Cities that Increased Rate 1 12-3 .I rl JUL Y 15, 2008, Item / (/ Page 4 of 5 An estimated twenty more cities are scheduled to go to ballot in November as there is predicted to be a historic voter turnout for the presidential election. The following is a brief summary of the proposed amendments/updates to the City's UUT relative to telecommunication services: o Reduces the current ta, rate on telecommunications and video services from 5% to 4.75% for approximately 80% of Chula Vista's wireless telecommunications customers and all land line customers . o Applies the reduced tax rate to interstate and international calls for wireless and land line customers. . Includes a modern, functional defInition of telecommunication services that is technology- neutral, and now adds or specifIcally id~ntifies the following services: interstate and international calls; wireless; VoIP, paging, private communication services (e.g., T-l lines for providing data, video and voice services), toll free and public service numbers. . Incorporates defInitions of "ancillary telecommunication services" that are commonly recognized by the industry as being part of such services. o Anticipates the possibility of new technologies and services to provide telecommunication and video services, so that rates and revenues are stabilized and all taxpayers will be treated the same . Provides other administrative tools for addressing telecommunication taxation issues including administrati ve rulings and sourcing, bundling and nexus guidelines. o Updates the local Municipal Code to be consistent with current Federal and State laws and makes Chula Vista's ordinance consistent with the direction of other California cities with UUT. ,/ Failure to modernize the City's UUT ordinance relative to telecommunication services could result in a loss of 75% to 100% of the telecommunications related portion of the UUT or upwards to approximately $3.4 million from the General Fund, which would have a substantial impact on the City's ability to maintain current programs and provide essential services, including public safety. Staff recommends that the City Council adopt the attached Resolution calling for a measure to be placed on the November 2008 ballot. This resolution requires a unanimous vote of the City Council. The measure would need to be approved by a simple majority of voters. If approved by voters the earliest implementation date will be February 1,2009. To ensure that residents of the City are aware of the ballot measure receive factual and accurate information about the measure, staff proposes to conduct an informational program with respect to the measure. In order to minimize costs, it is proposed to use internal resources, rather than a consultant, to conduct the program. The informational program will consist primarily of speaking to various civic organizations in the city and sending out informational brochures to the registered voters of Chula Vista. These informational brochures will also be made available at the public counters and facilities of the City." 12-4 i (', JUL Y 15,2008, Item / CI Page 5 of 5 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 total fiscal year 2006/07 UUT revenue received was approximately $7.0 million for the General Fund, representing approximately 4.3% of total General Fund revenue. The telecommunications related portion of the UUT revenue is approximately $4.6 million. An estimated 75% or $3.4 million of these revenues are derived from wireless telecommunications. The loss of these revenues would have a substantial impact on the City's ability to provide essential services, including public safety. This updating of definitions closes "technology" loopholes, and ensures that all taxpayers will be treated equitably, regardless of the technology used. This more equitable application broadens the tax base and allows the City to reduce the tax rate on current taxpayers that make up approximately 80% of all wireless telecommunication customers \v1th no net loss of revenue anticipated. The reduction from a tax rate of 5% to 4.75% for intrastate services a'llounts to $850,000 which is anticipated to be recovered through the application to interstate and international calls, and the 20% of wireless customers who currently do not pay the tax. The broadening of the tax base will now include interstate and international services for wireless and land line customers. I Approval of the appropriation willlmpact General Fund reserves by $105,000. In an effort to minimize costs, staff proposes to manage the informational program internally and would request an appropriation of $105,000 to cover the election costs (City Clerk $35,000) and printing and mailing costs (Non-Departmental $70,000). A TT ACHiYlENTS Attachment A Proposed Ordinance Attachment B Election Results from Other Cities Prepared by: Phillip Davis, Assistant Director, Finance Department 12-5 Attachment A ORDINANCE NO. AI"! ORDINA.NCE OF THE CITY OF CHULA VISTA ADDING CHAPTER 3.42 TO TITLE. 3 OF THE CHULA v1STA i\HJNICIPAL CODE REGARDING A TELECOMMUNICATION USERS' TiL,( THE PEOPLE OF THE CITY OF CHULA VISTA DO ORDAIN AS FOLLOWS: SECTION 1: Chapter 3.42 is hereby added to Title 3 of the Chula Vista Municipal Code, and it shall read as follows: Chapter 3.42 TELECOlVL\1UNICATION USERS' TAX 3.42.010 Definitions. 3.42.020 Constitutional, Statutory, and Other Exemptions. 3.42.030 Exemptions - Senior Citizens 3.42.040 Telecommunication Users' Tax. 3.42.050 Bundling Taxable Items with Non-taxable Items. 3.42.060 Substantial Nexus / Minimum Contacts. 3.42.070 Duty to collect--Procedures. 3.42.080 Collection Penalties - Service Suppliers. 3.42.090 Actions to Collect. 3.42.100 Deficiency Determination and Assessment - Tax Application Errors. 3.42.110 Administrative Remedy - Non-Paying Service Users. 3.42.120 Additional powers and duties of the Tax Administrator. 3.42.130 Records. 3.42.140 Refunds. 3.42.150 Appeals. 3.42.160 Notice No InjunctionlWrit of Mandate. 3.42.170 Notice of Changes to Ordinance. 3.42.180 Effect of State and Federal Reference/Authorization. 3.42.190 Independent Audit of Tax Collection, Exemption, Remittance, and Expenditure. 3.42.200 Interaction with Prior Tax. 3.42.210 Remedies Cumulative. 3.42.220 Violations deemed infractions. ,I J 1 12-6 3.42.010 Definitions. The following words and phrases whenever used in this Chapter shall be construed as defmed in this section. (a) "Ancillary telecommunication services" means services that are associated with or incidental to the provision, use or enjoyment of telecommunications services, including but not limited to the following services: (I) "Conference bridging service" means an ancillary service that links two or more participants of an audio or video conference call and may include the provision of a telephone number. "Conference bridging service" does not include the telecommunications services used to reach the conference bridge. (2) "Detailed telecommunications billing service" means an ancillary service of separately stating information pertaining to individual calls on a .customet's billing statement. (3) "Directory assistance" means an ancillary servIce of providing telephone number information, and/or address information. (4) "Vertical service" means an ancillary service that is offered in connection with one or more telecommunications services, which offers advanced calling features that allow customers to identify callers and I to manage multiple calls and call connections, including conference bridging serl-ices. (5) "V oicemail service" means an ancillary service that enables the customer to store, send or receive recorded messages. "V oicemail service" does not include any vertical services that the customer may be required to have in order to utilize the voice mail service. (b) "Billing Address" shall mea.'l the mailing address of the service user where the service supplier submits invoices or bills for payment by the customer. (c) "City" shill mean the City ofChula Vista. (d) "Mobile Telecommunications Service" has the meaning and usage as set forth in the Mobile Telecommunications Sourcing Act (4 U.S,c. Section 124) and the regulations thereunder. (e) "Month" shall mean a calendar month. (f) "Paging service" means a "telecommunications service" that provides transmission of coded radio signals for the purpose of activating specific pagers; such transmissions may include messages and/or sounds. 2 12-7 (g) "Person" shall mean, without limitation, any natural individual, firm, trust, common law trust, estate, parmership of any kind, association, syndicate, club, joint stock company, joint venture, limited liability company, corporation (including foreign, domestic, and non- profit), municipal district or municipal corporation (other than the City) cooperative, receiver, trustee, guardian, or other representative appointed by order of any court. (h) "Place of Primary Use" means the street address representative of where the customer's use of the telecommunications service primarily occurs, which must be the residential street address or the primary business street address of the customer. (i) "Post-paid telecommunication service" means the telecommunication service obtained by making a payment on a telecommunication-by-telecommunication basis either through the use of a credit card or payment mechanism such as a bank card, travel card, credit card, or debit card, or by charge made to a service number which is not associated with the origination or termination of the telecommunication service. U) "Prepaid telecommunication service" means the right to access telecommunication services, which must be paid for in advance and which enables the origination of telecommunications using an access number or authorization code, whether manually or electronically dialed, and that is sold in predetermined units or dollars of which the number declines with use in a known amount. (k) "Private telecommunication service" means a telecommunication service that entitles the customer to exclusive or priority use of a telecpmmunications channel or group of channels between or among termination poims, regardless of the manner in which such channel or channels are connected, and includes switching capacity, extension lines, stations, and any other associated services that are provided in connection with the use of such channel or channels. A telecommunications channel is a physical or virtual path of telecommunications over which signals are transmitted between or among customer channel termination points (i.e., the location where the customer either inputs or receives the telecommunications). (1) "Service Address" means either: (1) The location of the service user's telecommunication equipment from which the telecommunication originates or terminates, regardless of where the telecommunication is billed or paid; or, (2) If the location in subsection (1) of this definition is unknown (e.g., mobile telecommunications service or VoIP service), the service address means the location of the service user's place of primary use. (3) For prepaid telecommunication service, "service address" means the location associated with the service number. 3 12-8 (m) "Service Supplier" shall mean any entity or person, including the City, that provides telecommunication service to a user of such service within the City. (n) "Service User" shall mean a person required to pay a tax imposed under the provisions of this Chapter. (0) "State" shall mean the State ofCalifomia. (p) "Streamlined Sales and Use Tax Agreement" shall mean the multi-state agreement commonly kno\vn and referred to as the Streamlined Sales and Use Tax Agreement, and as it is amended from time to time. (q) "Tax Administrator" means the Finance Director of the City or his or her designee. (r) "Telecommunications services" means the transmission, conveyance, or routing of voice, data, audio, video, or any other information or signals to a point, or between or among points, whatever the technology used. The term "telecommunications services" includes such transmission, conveyance, or routing in which computer processing applications are used to act on the form, code or protocol of the content for purposes of transmission, conveyance or routing without regard to whether such services are referred to as voice over internet protocol (V oIP) services or are classified by the Federal Telecommunications Commission as enhanced or value added, and includes video and/or data services that is functionally integrated with "telecommunication services." "Telecommunications services" include, but are not limited to the following services, regardless of the manner or basis on which such serviqes are calculated or billed: intrastate, interstate, and international telecommunication services; ancillary telecommunication services; mobile telecommunications serVice; pre-paid telecommunication service; post- paid telecommunication service; private telecommunication service; paging service; 800 service (or any other toll-free numbers designated by the Federal Telecommunications Commission); 900 service (or any other similar numbers designated by the Federal Telecommunications Commission for services whereby subscribers call in to pre-recorded or live service). "Telecommunication services" does not include cable or video programming services that are subject to a cable or video service franchise fee. (s) "V oIP" (voice over internet protocol) means the digital process of making and receiving real-time voice transmissions over any Internet Protocol network. (t) "800 service" means a "telecommunications service" that allows a caller to dial a toll- free number without incurring a charge for the call. The service is typically marketed under the name "800," "855," "866," "877," and "888" toll-free calling, and any subsequent numbers designated by the Federal Communications Commission. (u) "900 service" means an inbound toll "telecommunications service" purchased by a subscriber that allows the subscriber's customers to call in to the subscriber's prerecorded announcement or live service. "900 service" does not include the charge lor: collection services provided by the seller of the "telecommunications services" to the subscriber, or service or product sold by the subscriber to the subscriber's customer. The service is 4 12-9 typically marketed under the name "900" service, and any subsequent numbers desimated bv the Federal Communications Commission. - ~ 3.42.020 Constitutional, statutory, and other exemptions. (a) Nothing in this Chapter shall be construed as imposing a tax upon any person or service when the imposition of such tax upon such person or service would be in violation of a federal or state statute, the Constitution of the United States or the Constitution of the State. (b) Any service user that is exempt from the tax imposed by this Chapter pursuant to subsection (a) of this section shall file an application with the Tax Administrator for an exemption; provided, however, this requirement shall not apply to a service user that is a state or federal agency or subdivision with a commonly recognized name for such service. Said application shall be made upon a form approved by the Ta;, Administrator and shall state those facts, declared under penalry of perjury, which qualify the applicant for an exemption, and shall include the names of all telecommunication service suppliers serving that service user. If deemed exempt by the Tax Administrator, such service user shall give the Tax Administrator timely written notice of any change in telecommunication service suppliers so that the Tax Administrator can properly notify the new telecommunication service supplier of the service user's tax exempt status. A service user that fails to comply with this section shall not be entitled to a refund of telecommunication users' taxes collected and remitted to the Tax Administrator from such service user as a result of such noncompliance. The decision of the Tax Administrator regarding an application may be appealed pursuant to Section 3.42.150 of this Chapter) Filing an application with the Tax Administrator and appeal to the Ciry Administrator pursuant to Section 3.42.150 of this Chapter is a prerequisite to a suit thereon. (c) The City Council may, by resolution, establish one or more classes of persons or one or more classes of utility service otherwise subject to payment of a tax imposed by this Chapter and provide that such classes of persons' or service shall be exempt, in whole or in part from such tax for a specified period of time. 3.42.030 Exemptions - Senior citizens. Any individual who qualifies for an exemption under Section 3.44.021 of Chapter 3.44 shall be exempt from the tax imposed by Section 3.42.040. The procedures for obtaining such an exemption shall be followed as set forth in Section 3.44.021. 3.42.040 Telecommunication Users' Tax. (a). There is hereby imposed a tax upon every person in the City using telecommunication services. The tax imposed by this section shall be at the rate of four and 75/100 percent (4.75 %) of the charges made for such services and shall be collected from the service user by the telecommunication services supplier or its billing agent. Tnere is a rebuttable presumption that telecommunication services, which are billed to a billing or service address in the City, are used, in whole or in part, within the City's boundaries, and such ;J 12-10 services are subj ect to taxation under this Chapter. If the billing address of the service user is different from the service address, the service address of the service user shall be used for purposes of imposing the tax. As used in this Section, the term "charges" shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by the service user in exchange for the telecommunication services. (b) "Mobile Telecommunications Service" shall be sourced in accordance with the sourcing rules set forth in the j'v/obile Telecommunications Sourcing Act (4 Us. C. Section 124). The Tax Administrator may issue and disseminate to telecommunication service suppliers, which are subject to the tax collection requirements of this Chapter, sourcing rules for the taxation of other telecommunication services, including but not limited to post-paid telecommunication services, prepaid telecommunication services, and private telecommunication services, provided that such rules are based upon custom and common practice that further administrative efficiency and minimize multi-jurisdictional taxation (e.g., Streamline Sales and Use Tax Agreement). (c) The Tax Administrator may issue and disseminate to telecommunication service suppliers, which are subject to the tax collection requirements of this Chapter, an administrative ruling identifying those telecommunication services, or charges therefor, that are subject to or not subject to the tax of subsection (a) above. (d) As used in this section, the term "telecommunication services" shall include, but is not limited to charges for: connection, reconnection, termination, movement, or change of telecommunication services; late payment fees; detail,ed billing; central office and custom calling features (including but not limited to caE waiting, call forwarding, caller identification and three-way calling); voice mail and other messaging services; directory assistance; access and line charges; upjversal service charges; regulatory, administrative and other cost recovery charges; local number portability charges; and text and instant messaging. "Telecommunication services" shall not include digital downloads that are not "ancillary telecommunication services" such as, music, ringtones, games, and similar digital products. (e) To prevent actual multi-jurisdictional taxation of telecommunication services subject to tax under this section, any service user, upon proof to the Tax Administrator that the service user has previously paid the same tax in another state or local jurisdiction on such telecommunication services, shall be allowed a credit against the tax imposed to the extent of the amount of such tax legally imposed on, and paid by, the service user in such other state or local jurisdiction; provided, however, the amount of credit shall not exceed the tax owed to the City under this section. (f) The tax on telecommunication services imposed by this section shall be collected from the service user by the service supplier. The amount of tax collected in one (I) month shall be remitted to the Tax Administrator. and must be received bv the Tax Administrator on or before the twentieth (20th) day of the following month. ' I 6 12-11 3.42.050 Bundling Taxable Items with Non-Taxable Items. If any non-taxable charges are combined with and not separately stated from taxable service charges on the customer bill or invoice of a service supplier, the combined charge is subject to tax unless the service supplier identities, by reasonable and veritiable standards, the portions of the combined charge that are non-ta'(able and taxable through the service supplier's books and records kept in the regular course of business, and in accordance with generally accepted accounting principles, and not created and maintained for tax purposes. The service supplier has the burden of proving the proper apportionment of taxable and non-ta'(able charges. If the service supplier offers a combination of ta'(able and non- taxable services, and the charges are separately stated, then for taxation purposes, the values assigned the taxable and non-taxable services shall be based on its books and records kept in the regular course of business and in accordance with generally accepted accounting principles, and not created and maintained for ta'( purposes. The service supplier has the burden of proving the proper valuation of the taxable and non-taxable services. 3.42.060 Substantial Nexns / Minimnm Contacts. For purposes of imposing a tax or establishing a duty to collect and remit a tax under this Chapter, "substantial nexus" and "minimum contacts" shall be construed broadly in favor of the imposition, collection and/or reminance of the telecommunication users' ta'( to the fullest extent permined by state and federal law, and as it may change from time to time by judicial interpretation or by statutory enactment., Any telecommunication service (including VoIP) used by a person with a service address in the City, which service is capable of terminating a call to another person on the general telephone network, shall be subject to a rebuttable presumption that "substantial nexus/minimum contacts" exists for purposes of imposing a ta'(, or establishing a duty to collect and remit a tax, under this Chapter. A service supplier shall be deemed to have sufficient activity in the City for tax collection and remittance purposes if its activities include, but are not limited to, any of the follo\Ning: maintains or has \Nithin the City, directly or through an agent or subsidiary, a place of business of any nature; solicits business in the City by employees, independent contractors, resellers, agents or other representatives; solicits business in the City on a continuous, regular, seasonal or systematic basis by means of advertising that is broadcast or relayed from a transminer ,,,ith the City or distributed from a location within the City; or advertises in newspapers or other periodicals printed and published within the City or through materials distributed in the City by means other than the United States mail; or if there are activities performed in the City on behalf of the service supplier that are significantly associated with the service supplier's ability to establish and maintain a market in the City for the provision of services that are subject to a tax under this Chapter. 3.42.370 Duty to Collect--Procedures. (a) Collection by Service Suppliers. The duty of service suppliers to collect and remit the taxes imposed by the provisions of this Chapter shall be performed as follows: 12-12 7 (1) The ta'i: shall be collected by service suppliers insofar as practicable at the same time as, and along 'With, the collection of the charges made in accordance with the regular billing practice of the service supplier. Where the amount paid by a service user to a service supplier is less than the full amount of the charge and tax which was accrued for the billing period, a proportionate share of both the charge and the ta'i: shall be deemed to have been paid. In those cases where a service user has notified the service supplier of refusal to pay the tax imposed on said charges, Section 3.42.110 shall apply. (2) The duty of a service supplier to collect the tax from a service user shall commence with the beginning of the first regular billing period applicable to the service user where all charges normally included in such regular billing are subject to the provisions of this Chapter. \Vhere a service user receives more than one billing, one or more being for different periods than another, the duty to collect shall arise separately for each billing period. (b) Filing Return and Payment. Each person required by this Chapter to remit a tax shall tile a return to the Tax Administrator, on forms approved by the Tax Administrator, on or before the due date. The full amount of the tax collected shall be included with the return and filed with the Tax Administrator. The Tax Administrator is authorized to require such additional information as he or she deems necessary to determine if the tax is being levied, collected, and remined in accordance 'With this Chapter. Returns are due immediately upon cessation of business for any reason. Pursuant to Revenue and Tax Code Section 7284.6, such filing returns are confidential information anf! are exempt from the disclosure provisions of the Public Records Act.' 3.42.080 Collection Penalties - Service Suppliers. (a) Ta'(es collected from a service user are delinquent if not received by the Ta'( Administrator on or before the due date. Should the due date occur on a weekend or legal holiday, the return must be received by the Tax Administrator on the first regular working day follomng the weekend or legal holiday. A direct deposit, including electronic fund transfers and other similar methods of electronically exchanging monies between financial accounts, made by a service supplier in satisfaction of its obligations under this subsection shall be considered timely if the transfer is ipjtiated on or before the due date, and the transfer settles into the City's account on the follomng business day. (b) If the person required to collect and/or remit the telecommunication users' tax fails to collect the ta'( (by failing to properly assess the tax on one or more services or charges on the customer's billing) or fails to remit the tax collectedon or before the due date, the Ta'( Administrator shall attach a penalty for such delinquencies or deficiencies at the rate of fifteen (15%) percent of the total tax that is delinquent or deficient in the remittance, and shall pay interest at the rate of and 75/l00ths (0.75%) percent per month, or any fraction thereof, on the amount of the ta'(, exclusive of penalties, from the date on which the remittance first became delinquent, until paid. 8 12-13 (c) The Tax Administrator shall have the power to impose additional penalties upon persons required to collect and remit ta;-ces pursuant to the provisions of this Chapter for fraud or gross negligence in reporting or remining at the rate of fifteen (15%) percent of the amount of the tax collected and/or required to be remitted, or as recomputed by the Tax Administrator. (d) For collection purposes only, every penalty imposed and such interest that is accrued under the provisions of this section shall become a part of the ta"C herein required to be paid. (e) Notwithstanding the foregoing, the Ta"C Administrator may, in his or her discretion, modify the due dates of this Chapter to be consistent INith any uniform standards or procedures that are mutually agreed upon by other public agencies imposing a utility users' ta"C, or otherwise legally established, to create a central payment location or mechanism. 3.42.090 Actions to Collect. A.ny tax required to be paid by a service user under the provisions of this Chapter shall be deemed a debt owed by the service user to the City. Any such ta"C collected from a service user which has not been remitted to the Tax Administrator shall be deemed a debt owed to the City by the person required to collect and remit and shall no longer be a debt of the service user. Any person owing money to the City under the provisions of this Chapter shall be liable to an action brought in the name of the City for the recovery of such amount, including penalties and interest as provided for in thi;; Chapter, along with any collection costs incurred by the City as a result of the person's noncompliance INith this Chapter, including, but not limited to, reasonable attorneys' fees. Any tax required to be collected by a service supplier or owed by a service user is an unsecured priority excise tax obligation under 11 USCA. Section 507(a)(8)(C). 3.42.100 Deficiency Determination and Assessment - Tax Application Errors. (a) The Tax Administrator shall make a deficiency determination if he or she determines that any service user or service supplier required to payor collect taxes pursuant to the provisions of this Chapter has failed to pay, collect, and/or remit the proper amount of ta"C by improperly applying, or failing to apply, the tax to one or more ta"Cable services or charges. Nothing herein shall require that the Tax Administrator institute proceedings under this Section 3.42.100. (b) The Tax Administrator shall mail a notice of such deficiency determination to the person or entity allegedly owing the ta"C, wpjch notice shall refer briefly to the amount of the taxes owed, plus interest at the rate of 75/l OOths (0.75%) percent per month, or any fraction thereof, on the amount of the tax from the date on which the tax should have been received by the City. Within fourteen (14) calendar days after the date of service of such notice, the person or entity allegedly oINing the tax may request in writing to the Tax Administrator for a hearing on the matter. 9 12-14 (c) If the person or entity allegedly owing the tax fails to request a hearing within the prescribed time period, the amount of the deficiency determination shall become a final assessment, and shall immediately be due and owing to the City. If such person or entity requests a hearing, the Tax Administrator shall cause the matter to be set for hearing, which shall be scheduled within thirty (30) days after receipt of the written request for hearing. Notice of the time and place of the hearing shall be mailed by the Tax Administrator to such person at least ten (10) calendar days prior to the hearing, and, if the Tax Administrator desires said person to produce specific records at such hearing, such notice may designate the records requested to be produced. (d) At the time fixed for the hearing, the Tax Administrator shall hear all relevant testimony and evidence, including that of any other interested parties. At the discretion of the Tax Administrator, the hearing may be continued from time to time for the purpose of allowing the presentation of additional evidence. Within a reasonable time following the conclusion of the hearing, the Tax Administrator shall issue a [mal assessment (or non- assessment), thereafter, by confirming, modifying or rejecting the original deficiency determination, and shall mail a copy of such [mal assessment to the person or entity owing the tax. The decision of the Tax Administrator may be appealed pursuant to Section 3.42.150 of this Chapter. Filing an application with the Tax Administrator and appeal to the City Manager pursuant to Section 3.42.150 of this Chapter is a prerequisite to a suit thereon. (e) Payment of the [mal assessment shall become delinquent if not received by the Tax Administrator on or before the thirtieth (30th) day 1ollowing the date of receipt of the notice of final assessment. The penalty for delinquency shall be fifteen percent (15%) on the total amount of the assessment, along with interest at the rate of 75/100ths (0.75%) percent per month, or any fraction thereof, on the amount of the tax, exclusive of penalties, from the date of delinquency, until paid. The applicable statute of limitations regarding a claim by the City seeking payment of a ta'\: assessed under this Chapter shall commence from the date of delinquency as provided in this subsection (e). (f) All notices under this section may be sent by regular mail, postage prepaid, and shall be deemed received on the third calendar day following the date of mailing, as established by a proof of mailing. 3.42.110 Administrative Remedy - Non-Paying Service Users. (a) Whenever the Ta'\: Administrator determines that a service user has deliberately withheld the amount of the ta'\: owed by the service user from the amounts remitted to a person required to collect the tax, or whenever the Ta'\: Administrator deems it in the best interest of the City, he or she may relieve such person of the obligation to collect the taxes due under this Chapter from certain named service users for specific billing periods. To the extent the service user has failed to pay the amount of ta'\: owed for a period of two (2) or more billing periods, the service supplier shall be relieved of the obligation to collect ta'\:es due. The service supplier shall provide the City with the names and addresses of such service users and the amounts of taxes owed under the provisions of this Chapter. Nothing 12-15 10 herein shall requue that the Tax Administrator institute proceedings under this Section 3.42.110. (b) In addition to the tax owed, the service user shall pay a delinquency penalty at the rate of fifteen percent (15%) of the total tax that is owed, and shall pay interest at the rate of 75/100ths (0.75%) percent per month, or any fraction thereof, on the amount of the tax, exclusive of penalties, from the due date, until paid. (c) The Tax Administrator shall notify the non-paying service user that the Tax Administrator has assumed the responsibility to collect the taxes due for the stated periods and demand payment of such taxes, including penalties and interest. The notice shall be served on the service user by personal delivery or by deposit of the notice in the United States mail, postage prepaid, addressed to the service user at the address to which billing was made by the person required to collect the tax; or, should the service user have a change of address, to his or her last known address. (d) If the service user fails to remit the tax to the Tax Administrator within thirty (30) days from the date of the service of the notice upon him or her, the Tax Administrator may impose an additional penalty of fifteen percent (15%) of the amount of the total tax that is owed. 3.42.120 Additional Powers and Duties of the Tax Administrator. (a) The Tax Administrator shall have the power anp ,duty to enforce each and all of the provisions of this Chapter. ' (b) The Tax Administrator may adopt administrative rules and regulations consistent with provisions of this Chapter for the purpose of interpreting, clarifying, carrying out and enforcing the payment, collection and reminance of the taxes herein imposed. The administrative rules and regulations shall not impose a new tax, revise an existing tax methodology as stated in this Section, or increase an existing tax, except as allowed by California Government Code Section 53750(h)(2). A copy of such administrative rules and regulations shall be on file in the Tax Administrator's office. To the extent that the Tax Administrator determines that the tax imposed under this Chapter shall not be collected in full for any period of time from any particular service supplier or service user, ti}at determination shall be considered an exercise of the Tax Administrator's discretion to senle disputes and shall not constitute a change in taxing methodology for purposes of Government Code Section 53750 or otherwise. The Tax Administrator is not authorized to amend the City's methodology for purposes of Government Code Section 53750 and the City does not waive or abrogate its ability to impose the communication users' tax in full as a result of promulgating administrative rulings or entering into agreements. (c) Upon a proper showing of good cause, the Tax Administrator may make administrative agreements, with appropriate conditions, to vary from the strict requirements of this Chapter and thereby: (1) conform to the billing procedures of a particular service supplier so long as said agreements result in the collection of the ta"X in conformance with the 11 12-16 general purpose and scope of this Chapter; or, (2) to avoid a hardship where the administrative costs of collection and remittance greatly outweigh the tax benefit. A copy of each such agreement shall be on file in the Tax Administrator's office, and are voidable by the Tax Administrator or the City at any time. (d) The Tax Administrator may conduct an audit, to ensure proper compliance with the requirements of this Chapter, of any person required to collect and/or remit a tax pursuant to this Chapter. The T a,< Administrator shall notify said person of the initiation of an audit in writing. In the absence of fraud or other intentional misconduct, the audit period of review shall not exceed a period of three (3) years immediately preceding the date of receipt of the "'Titten notice by said person from the T a,< Administrator. Upon completion of the audit, the Tax Administrator may make a deficiency determination pursuant to Section 3.42.100(d) of this Chapter for all taxes (and applicable penalties and interest) owed and not paid, as evidenced by information provided by such person to the Ta,< Administrator. If said person is unable or un",illing to provide sufficient records to enable the Tax Administrator to verify compliance with this Chapter, the Tax Administrator is authorized to make a reasonable estimate of the deficiency. Said reasonable estimate shall be entitled to a rebuttable presumption of correctness. (e) Upon receipt of a ",ntten request of a taxpayer, and for good cause, the Tax Administrator may extend the time for filing any statement required pursuant to this Chapter for a period of not to exceed forty-five (45) days, provided that the time for filing the required statement has not already passed when the request is received. No penalty for delinquent payment shall accrue by reason of such eXlension. Interest shall accrue during said extension at the rate of 75/l OOths (0.75%) percent per month, prorated for any portion thereo f. (f) The Ta,< Administrator shall determine the eligibility of any person who asserts a right to exemption from, or a refund ot: the tax imposed by this Chapter. (g) Notwithstanding any provision in this Chapter to the contrary, the Tax Administrator may waive any penalty or interest imposed upon a person required to collect and/or remit for failure to collect the tax imposed by this Chapter if the non-collection occurred in good faith. In determining whether the non-collection was in good faith, the Tax Administrator shall take into consideration industry practice or other precedence. 3.42.130 Records. (a) It shall be the duty of every person required to collect and/or remit to the City any ta,< imposed by this Chapter to keep and preserve, for a period of at least three (3) years, all records as may be necessary to determine the amount of such tax as he/she may have been liable for the collection of and remittance to the Ta,< Administrator, wpich records the Tax Administrator shall have the right to inspect at a reasonable time. (b) The City may issue an administrative subpoena to compel a person to deliver, to the Tax Administrator, copies of all records deemed necessary by the Ta,< Administrator to 12 12-17 establish compliance with this Chapter, including the delivery of records in a common electronic format on readily available media if such records are kept electronically by the person in the usual and ordinary course of business. As an alternative to delivering the subpoenaed records to the Tax Administrator on or before the due date provided in the administrative subpoena, such person may provide access to such records outside the City on or before the due date, provided that such person shall reimburse the City for all reasonable travel expenses incurred by the City to inspect those records, including travel, lodging, meals, and other similar expenses, but excluding the normal salary or hourly wages of those persons designated by the City to conduct the inspection. (c) The Ta'{ Administrator is authorized to execute a non-disclosure agreement approved by the City Attorney to protect the confidentiality of customer information pursuant to California Revenue and Tax Code Sections 7284.6 and 7284.7. (d) If a service supplier uses a billing agent or billing aggregator to bill, collect, and/or remit the tax, the service supplier shall: i) provide to the Tax Administrator the name, address and telephone number of each billing agent and billing aggregator currently authorized by the service supplier to bill, collect, and/or remit the tax to the City; and, ii) upon request of the Tax Administrator, deliver, or effect the delivery of, any information or records in the possession of such billing agent or billing aggregator that, in the opinion of the Tax Administrator, is necessary to verify the proper application, calculation, collection and/or remittance of such tax to the City. (e) If any person subject to record-keeping under this ,section umeasonably denies the Tax Administrator access to such records, or fails to produce the information requested in an administrative subpoena within the time specified, then the Ta'{ Administrator may impose a penalty of $500 on such person for each day following: i) the initial date that the person refuses to provide such access; or, ii) the due date for production of records as set forth in the administrative subpoena. This penalty shall be in addition to any other penalty imposed under this Chapter. 3.42.140 Refunds. Whenever the amount of any tax has been overpaid or paid more than once or has been erroneously or illegally collected or received by the Tax Administrator under this Chapter from a person or service supplier, it may be refunded as provided in this section: (a) The Tax Administrator may refund any tax that has been overpaid or paid more than once or has been erroneously or illegally collected or received by the Ta'{ Administrator under this Chapter from a person or service supplier, provided that no refund shall be paid under the provisions of tl;1js section unless the claimant or his or her guardian, conservator, executor, or administrator has submitted a wTitten claim to the Tax Administrator within one year of the overpayment or erroneous or illegal collection of said tax. Such claim must clearly establish claimant's right to the refund by WTitten records showing entitlement thereto. Nothing herein shall permit the filing of a claim on behalf of a class or group of 13 12-18 taxpayers unless each member of the class has submitted a written claim under penalty of perjury as provided by this subsection. (b) The filing of a "'Titten claim pursuant to Government Code Section 935 is a prerequisite to any suit thereon. Any action brought against the City pursuant to this section shall be subject to the provisions of Governmenr Code Sections 945.6 and 946. The Tax Administrator, or the City Council where the claim is in excess of five thousand dollars ($5,000), shall act upon the refund claim within the time period set forth in Government Code SecTion 912.4. If the Tax Administrator/City Council fails or refuses to act on a refund claim within the time prescribed by Government Section 912.4, the claim shall be deemed to have been rejected by the City Council on the last day of the period ",ithin which the City Council was required to act upon the claim as provided in Government Code Section 912.4. The Tax Administrator shall give notice of the action in a form which substantially complies with that set forth in Government Code Section 913. (c). Notwithstanding the notice provisions of subsection (a) of this Section, the Tax Administrator may, at his or her discretion, give written permission to a service supplier, who has collected and remitted any amount of tax in excess of the amount of tax imposed by this Chapter, to claim credit for such overpayment against the amount of tax which is due the City upon a subsequent monthly retum(s) to the Tax Administrator, provided that: i) such credit is claimed in a return dated no later. than one year from the date of overpayment or erroneous collection of said tax; ii) the Tax Administrator is satisfi.ed that the underlying basis and amount of such credit has been reasonably established; and, iii) in the case of an overpayment by a service user to the service supplier that has been remitted to the City, the Tax Administrator has received prock, to his or her satisfaction, that the overpayment has been refunded by the service supplier to the service user in an amount equal to the requested credit. (d) Notwithstanding subsections (a) through (c) above, a service supplier shall be entitled to take any overpayment as a credit against an underpayment whenever such overpayment has been received by the City within the three (3) years immediately preceding a deficiency determination or assessment by the Tax Administrator in connection with an audit instituted by the Tax Administrator pursuant to Section 3.42.120(d). A service supplier shall not be entitled to said credit unless it first clearly establishes, to the satisfaction of the Tax Administrator, the right to the credit by written records showing entitlement thereto. Under no circumstances shall an overpayment taken as a credit against an underpayment pursuant to Lhis subsection qualify a service supplier for a refund to which it would not other",ise be entitled under the one-year written claim requirement ofthis section. 3.42.150 Appeals. (a) The provisions of this section apply to any decision (other than a decision relating to a refund pursuant to Section 3.42.140 of this Chapter), deficiency determination, assessment, or administrative ruliIlg of the Tax Administrator. Any person aggrieved by any decision (other than a decision relating to a refund pursuant to Section 3.42.140 of this Chapter), defi.ciency determination, assessment, or administrative ruling of the Tax Administrator, 14 12-19 shall be required to comply with the appeals procedure of this section. Compliance with this section shall be a prerequisite to a suit thereon. [See Government Code Section 935(b).] Nothing herein shall permit the tiling of a claim or action on behalf of a class or group of ta\:payers. (b) If atlY person is aggrieved by any decision (other than a decision relating to a refund pursuant to Section 3.42.140 of this Chapter), deficiency determination, assessment, or administrative ruling of the Tax Administrator; he or she may appeal to the City Manager by filing a notice of appeal with the City Clerk within fourteen (14) days of the date of the decision, deticiency determination, assessment, or administrative ruling of the Tax Administrator which aggrieved the service user or service supplier. (c) The matter shall be scheduled for hearing before an independent hearing officer selected by the City Manager, no more than thirty (30) days from the receipt of the appeal. The appellant shall be served with notice of the time and place of the hearing, as well as any relevant materials, at least five (5) calendar days prior to the hearing. The hearing may be continued from time to time upon mutual consent. At the time of the hearing, the appealing party, the Tax Administrator, and any other interested person may present such relevant evidence as he or she may have relating to the determination from which the appeal is taleen. (d) Based upon the submission of such evidence and the review of the City's files, the hearing officer shall issue a wrinen notice and order upholding, modifying or reversing the determination from which the appeal is taleen. The notice shall be given within fourteen . , (14) days after the conclusion of the hearing and shall state the reasons for t\-je decision. The notice shall specify that the decision is final and that any petition for judicial review shall be filed within ninety (90) days from the date of the decision in accordance with Code of Civil Procedure Section 1094.6. In the event the hearing officer's decision is in favor of the City, all costs of the hearing shall be borne by the appellant. (e) All notices under this section may be sent by regular mail, postage prepaid, and shall be deemed received on the third calendar day following the date of mailing, as established by a proof of mailing. 3.42.160 No InjunctionIWrit of Mandate. No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action, or proceeding in any court against this City or against any officer of the City to prevent or enjoin the collection under this Chapter of any ta\: or a.TlY amount ofta\: required to be collected and/or remitted. 3.42.170 Notice of Changes to Ordinance. If a ta.x under this Chapter is added repealed, increased, reduced, or the tax base is changed, the Ta\: Administrator shall follow the notice requirements of California Public Utilities Code Section 799. 15 12-20 3.42.180 Effect of State and Federal Reference/Authorization. Unless specifically provided otherwise, any reference to a state or federal statute in this Chapter shall mean such statute as it may be amended from time to time, provided that such reference to a statute herein shall not include any subsequent amendment thereto, or to any subsequent change of interpretation thereto by a state or federal agency or court of law with the duty to interpret such law, to the extent that such amendment or change of interpretation would require voter approval under California law, or to the extent that such change would result in a tax decrease (as a result of excluding all or a part of a communication service, or charge therefor, from taxation). Only to the extent voter approval would otherwise be required or a tax decrease would result, the prior version of the statute (or interpretation) shall remain applicable; for any application or situation that would not require voter approval or result in a decrease of a tax, provisions of the amended statute (or new interpretation) shall be applicable to the maximum possible extent. To the extent that the City's authorization to collect or impose any tax imposed under this Chapter is expanded or limited as a result of changes in state or federal law, no amendment or modification of this Chapter shall be required to conform the tax to those changes, and the ta.'i: shall be imposed and collected to the full extent of the authorization up to the full amount of the tax imposed under this Chapter. 3.42.190 Independent Expenditure. Audit of Tax Collection, Exemption, Remittance, and .' l The City may periodically verify that the ta'i:es owed under this Chapter have been properly applied, exempted, collected, and remitted in accordance with this Chapter, and properly expended according to applicable municipal law. The annual verification shall be performed by a qualified independent third party and the review shall employ reasonable, cost-effective steps to assure compliance, including the use of sampling audits. The verification shall not be required of tax remitters where the cost of the verification may exceed the tax revenues to be reviewed. 3.42.200 Interaction with Prior Tax. (a) Satisfaction of Tax Obligation by Service Users. Any person who pays the tax levied pursuant to Section 3.42.040 of this Chapter with respect to any charge for a telecommunication service shall be deemed to have satisfied his or her obligation to pay the ta.x levied pursuant to Section 3.44.030 of this Code with respect to that charge. Likewise, prior to April 1,2009, any person who pays the ta'i: levied pursuant to Section 3.44.030 of this Code with respect to any charge for a service subject to ta'i:ation pursuant to this Chapter shall be deemed to have satisfied his or her obligation to pay the tax levied pursuant to Section 3.42.040 of this Chapter with respect to that charge. The intent of this paragraph is to prevent the imposition of multiple ta'i:es upon a single utility charge during the transition period from the prior telecommunication users' tax to the new 16 12-21 telecommunication users' tax (which transition period ends April 1, 2009) and to permit telecommunication service providers, during that transition period, to satisfy their collection obligations by collecting either tax. (b) Collection of Tax by Service Providers. Service providers shall begin to collect the tax imposed by this Chapter as soon as feasible after the effective date of the Chapter, but in no event later than permitted by Section 799 of the California Public Utilities Code. (c) In the event that a final court order should determine that the election enacting this Chapter 3.42 is invalid for whatever reason, or that any tax imposed under this Chapter 3.42 is invalid in whole or in part, then the tax imposed under Sections 3.44.030 (unless repealed) shall automatically continue to apply \vith respect to any service for which the tax levied pursuant to this Chapter has been determined to be invalid. Such automatic continuation shall be effective beginning as of the first date of service (or billing date) for which the tax imposed by this Chapter is not valid. However, in the event of an invalidation, any tax (other than a tax ti'1at is ordered refunded by the court or is otherwise refunded by the City) paid by a person with respect to a service and calculated pursuant to this Chapter shall be deemed to satisfy the tax imposed under Section 3.44.030 on that service, so long as the tax is paid with respect to a service provided no later than six months subsequent to the date on which the final court order is published. 3.42.210 Remedies Cumulative. All remedies and penalties prescribed by this Chapter or which are available under any other provision of law or equity, including but not li.rb.ited to the California False Claims Act (Government Code Section 12650 et seq.) and the California Unfair Practices Act (Business and Professions Code Section 17000 et seq.), are cumulative. The use of one or more remedies by the City shall not bar the use of any other remedy for the purpose of enforcing the provisions of this Chapter. 3.42.220 Violations Deemed Infractions. i\ny person who willfully attempts in any manner to avoid or defeat the tax imposed by this Chapter or the payment of all or any part thereof, or any person required by this Chapter to pay the ta'(, to make a return, to keep any records, or to supply any information who willfully fails to pay all or any part of such tax, make such return, keep such records, or supply such information at the time or times required by this Chapter, shall be guilty of an infraction. SECTION 2. Effective Date. This Chapter shall become effective immediately upon the date that this Ordinance is comirmed and approved by the voters of Chula Vista at the Municipal Election of November 4, 2008. Service Suppliers will not be required to implement the provisions of this ordinance prior to February 1,2009. SECTION 3. Amendment or Repeal. Chapter 3.42 of i\rticle XIII of the Chula Vista Municipal Code may be repealed or amended by the City Council without a vote of the people. However, as required by Chapter XIIIC of the California Constitution, voter 17 12-22 approval is required for any amendment provision that would increase the rate of any t<LX . levied pursuant to this Ordinance. The People of the City of Chula Vista affinn that the following actions shall not constitute an increase of the rate of a t<LX: I. The restoration of the rate of the tax to a rate that is no higher than that set by this Ordinance, if the City Council has acted to reduce the rate of the t<LX; 2. An action that interprets or clarifies the methodology of the t<LX, or any definition applicable to the t<LX, so long as interpretation or clarification (even if contrary to some prior interpretation or clarification) is not inconsistent with the language of this Ordinance. 3. The establishment of a class of person that is exempt or excepted from the t<LX or the discontinuation of any such exemption or exception (other than the discontinuation of an exemption or exception specifically set forth in this Ordinance); and 4. The collection of the t<LX imposed by this Ordinance, even if the City had, for some period oftime, failed to collect the t<LX. SECTION 4. Severability. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be invalid or unenforceable by a court of competent jurisdiction, the remaining portions of this, Ordinance shall nonetheless remain in full force and effect. The people hereby declares' that they would have adopted each section, subsection, sentence, clause, phrase, or portion of this Ordinance, irrespective of the fact that anyone or more sections, subsections, sentences, clauses, phrases, or ponions of this Ordinance be declared invalid or unenforceable. SECTION 5. Execution. The Mayor is hereby authorized to attest to the adoption of this Ordinance by the voters of the City by signing where indicated below. 18 12-23 I hereby certify that the foregoing Ordinance was PASSED, APPROVED and ADOPTED by t\1e people of the City of Chula Vista voting on the day of ,2008. Mayor ATTEST: City Clerk APPROVED AS TO FORM: City Atto~~ ~PROVED AS TO FOR,vf: " , 12-24 19 ATTACHHEfIT 8 MUIliSenices' Client Cities Summary of UUT Eledion Results Huntingcon Park Ic-cr.~~.2i (500:') CiTY uf Los Angdes IC--=:Jer::J (50".:;) P3.saden:l l~ner~[(5iJO"i I?as~s '( ~s: is%: No: .: !:; 1:?J.Ssei Y~s' 65'.. No: 3:50'~ Ip'lSs.;:~ ~~s: 53%: No: ~::O'o Rkimond Ge:Je:-l! (50.-'1 ?'lssec.. -~-~s: I~~'". ;-.;u: 2:::'., S;.ln Bernardino I r?lSS~:::. i BenicLa I Ie . ",. I 'cnc1'":l.l t ~I},! I El :.10D[e IGene,~j i,51]O",:1 Eme;-:/viIle I':'''''~ ,50'" i I~,.". I' ,.- Gil,oy , I IGe~<::211.50Q"J Eer:nGsa Beac:: , li~,,,,c . _~W~~ , i 1"""',1 ".",' I'""'" ~~~-'~'.-' , ~-~~- , . '1""'''11'''''' I"".," __.. ,_ _.i _ __~ _ Ie...."'. "".1 1'0",,' '-"-.-'-" ,. --".)'-- I"""", ,50",; I"""~ Los Altos Red '-Vooa Cl,:.' \: =~ltlJ r:l -~. ~s: SO".;,; ~Io: 200,., Y~S' 70'-a: ;--;0' 30"0 y~s: c;')'o: rio: 37':, .~. ~s:3c" L ;'10: I.!"', ,.. :-,,0,; ;';c. ;co" ~s: 7:0" ~ :--ie, 2:5", ~s: .3.:!.0.,; :-;c: , 5~ , ~s: , , :-re. ! ?~" ,_. 5';%: ~e: .;70., l~eCUCrion... l~ico (:::G":!S"WIe) R~:.:uC7:crl... T ~lco 1::--;0 i=<..e::ucTIoc :?'cC'lcrion Teko& "/icieo I:"".~C:I!C;:OE' ~ elco 3:. "leeo, ennr~ orchoaZlce " -. :;.ecuC1Jor,: ,eie:;o &V;oeo lu.-::C".:.50:;!.1:e Telecom I , I?-;:::iuc.:oll.. l::::eco T:::;eco &:\/;.::eo. o,d:na.."l.ce IL'CUC~JOn... ~e:ecc I&:'v'icee 1.!..l,C2S~[e ,ekeo;::..) IRec'lcnar.._ T ~!ecc i&:'iidec' li=C"~t2.te I,e!ecarn! 1?,ecucriOL ,e:<:::ca IX_-"".a.~" ':"''---''''''''-Q _. n "'~ ."._~~"""'_ :eie:::~ml 1~:~:CtiCD.' L~ie:;o 6.:VI<:.eo !.l:1i:"3S"..aTe ,eiecou:.) IRecucroan... Teieco d:Viceo(:::~r:l.te ,decam) Nt,-'-, <'i:A N.. jordi:1;l.'1C= revise:':: by Cola.."1ruonoiCiry A::or::ey 1 lordi.nano:::: r.~vised by COlanruono,Cty .\r.oGey <'i/A ?:1i,t;a,-u.:lvblin !...ew =:dwar,:s N:,':', )Ji..l.. :-1.....\. TC-:!...'11U1;Ob N.. 10,0"'", '" CO, C'",oi! m'~o'" T,am'ltolc. N ..i, )J:.-'-. li:~~'~~~~~~~:~;E;:'::, ~,~' 1:~;~~.I~::~~~;~:r~b~~:~~~~J~" II-'T"_ ~~.-'".~. ,r'-. - , ~",...,.,.,..;., T_, I_'''l-O.~_.~ .>>" ~,.! l.0l.'.Il'-.1 .,.eo~.~~" en cress. 17'';''0 7<:,:;;on~ ,---!.f.:::ung for '=i~1 C,xu:c:l )s:--!.-c~or;:=:i ':a!.!c[ :::.~:!S;'1t.: , , Evans':,[CDonal--!.gb. ':..:::w SdwaI2.s 'N,.-J.. ~;.~. ;:~2~,-i.:: ;\.l~h:: ~':::')i =:c!W3J"CS :--'.. ~~:!:nl!1:vlc. ;C:~\l:f:::J.2.::: :~,.\ T"leNor,-,1 I ICi~i 'lsed ii:s ..;.~.:site. '''::O'1c.uc,ec. 0LL:"eac:c... :me 3.:::~i:'Jl!, ,::i::!11e:3. T~3..'1l'lrol2. I"""~ (50%1 I?"OUO"OU. "I", Campton P2.ssec. Yes: ~9~": N~. 111/ &:Viceo (lnccastate N/.-J.. ..., ,1:e!ecam) Daly C!",. 10e:Je~2.! \50"';'1 I?""~ '(:s' 720..;: No: 23~'" 1"1,,, &0 Video Yes Eilrreka IGe:::er21 150"',) 51 ",: ~;o: ~';~~, j!"ekCO & Viceo :.i,'.'J.. 1-"'.' '(=s. ' ~_. (ir;C"as;aIe ,elecom) ;\.ie~lo P3.rk IG<:,:ne~::!.! lSOu,;,.: !?3.Ssec... -':,':$: 5~%: No: 19% jE:nire new Dfcinanc:: Yes 1 2-25 ~ NIA ~;..l.. 'N. A ~'ew ijL)T ,:r:iin.'1ce for :;.ii '.ltilities. RESOLUTION NO. 2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ORDERING THE SlJBMISSION TO THE QUALIFIED ELECTORS OF THE CITY OF A- MEASlTRE RELATING TO THE CITY'S TELECOMMUNICATIONS USERS' TAX AT THE SPECIAL MlJ'NICIP AL ELECTION TO BE HELD ON HJESDA Y, NOVEMBER 4, 2008; DECLARING THE EXISTENCE OF AI" EMERGENCY NECESSITATING SUCH ACTION; AND DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTlAL ANAL YSIS OF THE MEASURE WHEREAS, pursuant to Chula Vista MlUlicipal Code Chapter 3.44, the City currently levies a Utility Users' Tax ("UUT'); and WHEREAS, the City COlUlcil desires to adjust the rate of the Telephone Users' Tax (a component of the Utility Users' Tax) from 5% to 4.75%; to rename the Telephone Users' Tax as the Telecommunications Users' Tax; to modernize the tax base so that different telecommunications technologies are treated similarly; to apply the tax to interstate and international calls for all customers; and to make other revisions to the method of calculating and collecting the tax to ret1ect technological advances in telecommunications services, and changes in federalla'w; and WHEREAS, the proposed ordinance, attached hereto and incorporated herein as Exhibit "A" would implement these proposed revisions to the ta'C (the "Ordinance"), and if approved by voters the earliest implementation date will be Febmary 1,2009; and WHEREAS, by its Resolution No. 2008-016, adopted on January 15,2008, the City Council has called a Special MlUlicipal Election for Tuesday, November 4, 2008; and WHEREAS, pursuant to Government Code section 53724 and California Elections Code section 9222, the City COlUlcil desires to submit the Ordinance to the electorate at the Special Municipal Election. NOW, THEREFORE, BE IT RESOLVED by the City COlUlcil of the City of Chula Vista as follows: SECTION I. All of the foregoing recitals are tme and correct. SECTION 2. That the City COlUlcil, pursuant to its right and authority, does order submitted to the voters at the Special Municipal Election on November 4, 2008, the following question: 12-26 Shall an ordinance be adopted to reduce the rate of the City of Chula Vista's Telecommunications Users' Ta"( YES (currently the Telephone Users' Tax) from 5% to 4.75% while maintaining exemptions for low-income sem or citizens; to ensure that Tax proceeds continue to be available for general municipal purposes, such as police, tire, streets and parks; and to revise the method for NO calculating and collecting the Tax to reflect technological advances and changes in federal law? SECTION 3. That the proposed Ordinance to be submitted to the voters IS attached as Exhibit "A." SECTION 4. That notice of the time and place of holding the election is given and the City Clerk is authorized, instructed, and directed to give further or additional notice of the election, in time, form and manner as required by law. SECTION 5. That pursuant to California Elections Code S9280, the City Clerk is directed to transmit a copy of the measure to the City Attorney. The City Anorney is directed to prepare an impartial analysis of the measure, not to exceed 500 words in length, showing the effect of the measure on the exi~ting law and the operation of the measure, and transmit such impartial analysis to the City Clerk within ten days of the adoption of this Resolution. SECTION 6. That pursuant to California Constitution Article XIIIC S2(b), the City Council declares, by a. unanimous vote of its membership, that a fiscal emergency exists necessitating that the Ordinance be submined to the voters at the November 4, 2008 Special Election. The circumstances giving rise to this emergency are as follows: A. The City currently receives $4.6 million a year in UUT proceeds from telecommunication services, and such tax revenues are critical to the public welfare and the City's financial ability to provide essential municipal services such as police, tire, street repair, parks and libraries. B. Lawsuits have been filed against other jurisdictions challenging the application of the utility users ta"( to certain telecommunication services based upon definitions contained in the ordinances governing such ta"(es and/or references to allegedly inapplicable federal laws. C. Legislation (H.R. 5793) has been introduced in the United States Congress, which would impose a five-year moratorium on new local wireless ta"(es, and could limit the ability of the City to respond to possible future adverse court rulings regarding the City's existing utility users' ta"( on wireless communications. 12-27 D. Due to a signitlcant, and unexpected, decline in revenue growth over the past 18 months, the City has undergone signitlcant budgetary cuts in order to balance the Fiscal Year 2008-09 general fund operating budget, which assumes the continued collection of Utility Users Tax. The Fiscal Year 2009-10 budgetary gap is projected to be $3.1 million, this gap would be exacerbated by any loss in OUT revenue. E. General fund operating reserves are projected at 4.8% for the fiscal year ending June 30, 2008. This is below the 8% reserve goal established by the City Council, and makes the City finances especially sensitive to a loss of substantial expected revenues. F. Additional budgetary cuts resulting from a loss of the Utility Users Tax would likely have a signiiicant impact upon the City's ability to provide essential public services including public safety. G. Therefore, it is urgently important that the City amend its UUT ordinance to reduce the legal and legislative risks that currently endanger this critical funding stream. H. These circumstances are such that it would be imprudent to delay the revision of the OUT ordinance until June 8, 20 I 0, which is the date of the next General Municipal Election. . , SECTION 7. That the City Clerk shall certify to the adoption of this resolution, and file it with the City's original resolutions. Presented by Approved as to form by \l~ .0, Bart Miesteld '(qImerim City Attorney Maria Kachadoorian Finance Director 12-28 RESOLUTION NO. 2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRlATING $105,000 FROM THE A V AILABLE BALA1"fCE OF THE GENERAL FONTI TO THE CITY CLERK'S AND NON- DEPA.RHvIENTAL BUDGET TO COVER ANTICIP A TED COSTS M-iD EXPENSES RELATED TO ELECTION COSTS, AND PRINTING A1"fD MA1LING COSTS WHEREAS, Chula Vista's Utility Users' Tax (UUT) was adopted in 1970 as a means to help fund public services and capital improvement projects through the City's General Fund; and \VHEREAS, the City receives UUT based on the usage of natural gas, electricity and telecommunications; and WHEREAS, in fiscal year 2006-2007, the total {JUT received was approximately $7.0 million, which represents 5% of General Fund revenues; and WHEREAS, the current rates charged are .00919 per therm, .0025 per kilowatt, and 5% on telephone; and . i WHEREAS, there are over 150 cities in California with a {jlJT; and WHEREAS, city staff is recommending that the City's ulJT ordinance, as it applies to telecommunications, be updated to reflect recent changes in Federal tax law and to modernize the detinition of "telecommunications" to make it technology neutral; and WHEREAS, the City Council desires to adjust the rate of the Utility Users' Tax from 5% to 4.75%, apply the tax to interstate and international calls for all customers; and to make other revisions to the method of calculating and collecting the tax to reflect technological advances and changes in state and federal law; and WHEREAS, failure to modernize the City's UUT ordinance relative to telecommunication services could result in a loss of 75% to 100% of the telecommunications related portion of the UlJT, or upwards to approximately $3.4 million from the General Fund, which would have a substantial impact on the City's ability to maintain current programs and provide essential services, including public safety; and 12-29 WHEREAS, updating the UUT ordinance requires a measure be placed on the ballot and approval by a majority of the voters; and WHEREAS, City staff is recommending that the proposed UUT ordinance relating to telecommunications be placed on the November 2008 ballot; and WHEREAS, in an effort to minimize costs, staff proposes to manage the informational program internally and requests an appropriation of $105,000 to cover the election costs (City Clerk $35,000) and printing and mailing costs (Non-Departmental $70,000). NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista appropriates $105,000 from the available balance of the General Fund to the City Clerk's and non-departmental budgets to cover anticipated costs and expenses telated to election costs, and printing and mailing costs. Presented by Approved as to form by ",(8'" Nli~~~ Interim City Attorney Maria Kachadoorian Finance Director J , 12-30