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Home My WebLink About2008/11/04 Agenda Packet " Cheryl Cox, Mayor Rudy Ramirez, Councilmember Scott Tulloch, Interim City Manager John McCann, Council member Bart Micsfeld, Interim City Attorney Jerry R. Rindone, Council member Donna Norris, City Clerk Steve Castaneda, Councilmember November 4, 2008 4:00 P.M. Council Chambers City Hall 276 Fourth Avenue CALL TO ORDER ROLL CALL: Councilmembers Castaneda, McCann, Ramirez, Rindone, and Mayor Cox PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE SPECIAL ORDERS OF THE DAY . INTRODUCTION BY CONSERVATION & ENVIRONMENTAL SERVICES DIRECTOR MICHAEL MEACHAM OF EMPLOYEE OF THE MONTH, BRENDAN REED, ENVIRONMENTAL RESOURCE MANAGER . INTRODUCTION BY INTERIM CITY MANAGER SCOTT TULLOCH OF NEW FIRE CHIEF, DA VlD HAI\TNEMAN . INTRODUCTION BY POLICE CHIEF RICHARD EMERSON OF RECENTLY PROMOTED SERGEANT DONALD REDMOND AND AGENTS STEVEN SZYMCZAK AND COLIN EVANS . PRESENTA nON BY MAYOR COX OF A PROCLAMATION TO JEANIE BALDERAS, POLICE RECORDS SP~CIALlST AND BARBARA BROOKOVER, POLICE SUPPORT SERVICES MANAGER, PROCLAIMING WEDNESDAY, NOVEMBER 5, 2008 AS LAW ENFORCEMENT RECORDS AND SUPPORT PERSOI\TNEL DA Y · PRESENTATION ON THE CHULA VISTA CHRISTMAS IN OCTOBER PROGRAM BY CO-CHAIR EMERALD RANDOLPH, HOUSE CAPTAIN ROD VIESCA AND HOMEOWNERS ODELIA KELL Y AND LOIS MILLER Page] - Council Agenda ntto:/ /www.enulavistaca.QOV November 4, 2008 CONSENT CALENDAR (Items 1 through 9) The Council will enacl Ihe Consenl Calendar slaff recommendalions by one motion, wilhcml discussion, unless a Councilmember, a member of Ihe public, or staff requesls Ihat an item be removedfor discussion. Jfyou wish 10 speak on one of these items, please fill oul a "Request 10 Speak "form (available in Ihe lobby) and submil il to the Cily Clerk prior 10 Ihe meeling. l1ems pulled .fi'om Ihe Consenl Calendar will be discussed immedialelyfollowing Ihe Consenl Calendar. 1. APPROVAL OF MINUTES of September ]6, 2008. Staff recommendation: Council approve the minutes, 2. ORDINANCE OF THE ClTY OF CHULA VISTA AMENDING CHAPTERS 20.04 AND 5,02 OF THE CHULA VISTA MUNICIPAL CODE BY ADDING SECTIONS 20.04,025 AND 20.04.050 AND A CROSS REFERENCE IN SECTION 5.02 (SECOND READING AND ADOPT]ON) Adoption of the ordinance assists businesses with identifying opportunities to reduce their monthly utility costs through a no-cost, voluntary assessment program, which will be integrated into the business licensing process, This ordinance was introduced on October 2],2008, (Conservation & Environmental Services Director) Staff recommendation: Council adopt the ordinance. 3. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND A WARDING THE CONTRACT FOR THE ENERGY EFFICIENCY LIGHTING RETROFIT A T MULTIPLE FACILITIES IN THE CITY OF CHULA VISTA, CALIFORNIA (CIP NO. GG202E) TO AMERlCAN POWER SOLUTIONS The Energy Efficiency Lighting Retrofit is part of the City of Chula Vista's Phase One Loan agreement with SDG&E and the California Energy Commission (CEC). This retrofit is one component of the Engineering Department staffs program to comply with the requirements as outlined in the Energy Savings Summary Tables developed by consultants in cooperation with SDG&E and the CEC. (City Engineer/Engineering Director) Staff recommendation: Council adopt the resolution. 4. RESOLUTION OF THE ClTY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FISCAL YEAR 2008/2009 ENGlNEERlNG AND DEVELOPMENT SERVICES REVENUE AND OPERATING BUDGETS AND APPROPRIATING UNANTICIPATED REVENUE IN THE AMOUNT OF $122,708 RECEIVED FROM NATIONAL ClTY (4/5THS VOTE REQUIRED) Page 2 - Council Agenda httn:/ !v.,:ww .ch u la vi staca. !IOV November 4,2008 The City of Chula Vista Engineering and Development Services staffs have been contracted to provide professional services to the City of National City for their capital improvement projects. A portion of the revenues received from National City are requested to be appropriated to the Engineering and Development Services Operating Budgets as necessary to cover the cost of overtime incurred. (City Engineer/Engineering Director, Public Works Director) Staff recommendation: Council adopt the resolution. 5. A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A MEMORANDUM OF UNDERSTAND1NG (MOU) W1TH THE SAN DIEGO ASSOCIATION OF GOVERNMENTS (SANDAG) FOR THE PURPOSE OF CONDUCTING A STUDY TO EXAMINE MULTl-MODAL IMPROVEMENTS TO THE INTERSTATE 5 CORRIDOR B. RESOLUTION OF THE ClTY COUNCIL OF THE ClTY OF CHULA VISTA AUTHORIZING THE TRANSFER OF EX1STING FUNDS FROM CAPITAL IMPROVEMENT PROJECT (CIP) STM362 "1-5/H STREET INTERCHANGE IMPROVEMENTS" TO CIP STM36] "1-5 MULT1-MODAL CORRiDOR IMPROVEMENT STUDY", APPROPRiATING $],987,200 IN SAFETEA-LU (SAFE, ACCOUNTABLE FLEXIBLE, EFF]CIENT, TRANSPORTAT10N EQUlTY ACT: A LEGACY FOR USERS) FUNDS AND AMENDING THE FISCAL YEAR 2008/2009 C1P PROGRAM (4/5THS VOTE REQUIRED) Adoption of the iirst resolution would enter the City of Chula Vista into an MOU with SANDAG for the purpose of conducting a study to examine multi-modal improvements to the Interstate 5 corridor between the Main Street interchange and State Route 54. The second resolution transfers funds from the 1-5/1-1 Street Interchange Project to the 1-5 Multi-Modal Corridor Study Project. (City Engineer/Engineering Director) Staff recommendation: Council adopt the resolutions. 6. RESOLUTION OF THE CITY COUNCIL OF THE ClTY OF CHULA VISTA APPROVING THE GRANT OF AN ENCROACHMENT PERMIT WITHIN THE CITY RIGHT-OF-WAY OF MACE STREET TO THE UNlTED STATES GEOLOGICAL SURVEY (USGS) FOR THE INSTALLATION, OPERATION, AND MAINTENANCE OF A MULTI-DEPTH GROUND WATER MONITORING WELL No comprehensive study of groundwater resources currently exists for the coastal San Diego area, including Chula Vista. The present USGS project proposes to complete such a study using the installation of multi-depth monitoring wells at select speciiic locations in four coastal river basins; San Dieguito, San Diego River, Sweetwater River, and the Otay River, The USGS has requested that the City grant an easement to allow the installation of one of these monitoring wells adjacent to the Otay River, (City Engineer/Engineering Director) Staff recommendation: Council adopt the resolution. Page 3 - Council Agenda h.!m:/ /www.chulavistaca.flo\' November 4, 2008 7. INVESTMENT REPORT FOR THE QUARTER ENDED SEPTEMBER 30, 2008 The quarterly investment report provides infomlation on various cash balances, investment transactions and the status of the pooled investment portfolio in accordance with the Govemment Code and the Council Investment Policy adopted on February 12, 2008. (Finance Director) Staff recommendation: Council accept the report. 8. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY AND I:NVESTCAL REALTY TO SURRENDER THE CITY'S LEASED PREMISES LOCATED AT 900 LANE AVENUE SUITE 200 AND AUTHORIZE THE PA YMENT OF THE BUY-OUT FEE The City cUlTently leases 5,843 square feet of office space from Investcal Reality, Inc. This office space, located at 900 Lane A venue has been used by the Building Inspection and Plan Review sections of the Planning and Building Department since 1998. Due to the relocation of all Planning and Building Services to the City Hall campus, this office space is no longer needed. Because the cUlTent lease has 14 months left before it expires, staff is proposing to buyout the remainder of the term at a discounted rate and sUlTender the lease. (City Engineer/Engineering Director) Staff recommendation: Council adopt the resolution. 9. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA REGARDING AMENDMENTS TO INDENTURES AND LOAN AGREEMENTS RELA TING TO OUTSTANDING INDUSTRIAL DEVELOPMENT REFUNDING REVENUE BONDS OF THE CITY OF CHULA VISTA ISSUED TO REFINANCE COSTS OF CERTAIN ELECTRlC FACILITIES FOR SAN DIEGO GAS & ELECTRlC COMPANY AND RELATED BOND INSURANCE TERMINATION AND RELEASE AGREEMENT The Chula Vista City Council has the ability to issue tax-exempt bonds for large industrial/manufacturing projects. Industrial Development Bonds (JDBs) are tax-exempt bonds, which can raise funds for manufacturing businesses or energy development projects. On March 23, 2004, the City Council authorized the issuance and sale of up to $686.4 million of IDBs to refund IDBs previously issued by the City of Chula Vista and the City of San Diego to finance or refinance certain costs of gas and electric facilities for San Diego Gas and Electric. Adoption of this resolution approves certain amendments to the existing IDBs and the execution of an agreement that will terminate certain bond insurance policies related thereto. (Finance Director/Treasurer) Staff recommendation: Council adopt the resolution. ITEMS REMOVED FROM THE CONSENT CALENDAR Page 4 - Council Agenda htto:l /www.chu]a vistaca. ~ov November 4,2008 PUBLIC COMMENTS Persons c11Jeaking during Public Commenls may address Ihe Council on any subjecI mailer within Ihe Council'sjurisdicrion Ihal is nor lisled as an ilem on rhe agenda. Slale law generally prohibils rhe Councilfi-om discussing or laking aclion on any issue nol included on rhe agenda. bur. if appropriare. rhe Council may schedule rhe ropiclorlulure discussion or refer Ihe mailer 10 srarf Commenrs are limired 10 Ihree minures. OTHER BUSINESS 10. CITY MANAGER'S REPORTS I 1. MAYOR'S REPORTS Ratifications of the appointments of Carol Nottley, Lisa Jensen and Ken Lockman to the Commission on Aging. 12. COUNCIL COMMENTS CLOSED SESSION Announcemenis of aclions raken in Closed Session shall be made available by noon on Wednesday Iollowing rhe Council Meering ar Ihe City Allorney's office in accordance with Ihe Ralph M. Brown Act (Governmenr Code 54957. 7). 13. PUBLIC EMPLOYEE APPOINTMENT PURSUANT TO GOVERNMENT CODE SECTION 54957 Title: City Manager 14. CONFERENCE WITH LEGAL COUNSEL REGARDING SIGNIFICANT EXPOSURE TO LlTIGA nON PURSUANT TO GOVERNMENT CODE SECTION 54956.9(b) Two cases. ADJOURNMENT to an Adjourned Regular Meeting on November 17, 2008 at 6:30 p.m. in the Council Chambers. The Regular Meeting of November 11, 2008 is cancelled. Malerials provided 10 the Cily Council relaled 10 any open-session ilem on rhis agenda are availablefCir public reviewal Ihe Cily Clerk '.I' Office, loealed in Ciry Hall al 276 Fourlh Avenue. Building 100, during normal business hours. III compliallce with the AMERICANS WITH DISABILITIES ACT The City of Chula Vista requesrs individuals who require special accommodmions ro access, aliend. and/or parricipate in a City meering, acrivily, or service, col1iacr rhe Ciry Clerk's Office al (619) 691-5041 or Telecommunicarions Devices lor Ihe Deaf (TDD) al (619) 585-5655 at leasl lorry-eight hours in advance lor meerings and .live days lor scheduled services and acriviries. Califhrnia Relay Service is also available fCH rhe hearing impaired. Page 5 - Council Agenda hun:/ /wv.'w. ell u lay istaca. gOY November 4. 2008 DRAFT MINUTES OF A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA September 16, 2008 6:00 P.M. A Regular meeting of the City Council of the City of Chula Vista was called to order at 6:01 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Councilmembers Castaneda, McCann, Ramirez, Rindone, and Mayor Cox ABSENT: None ALSO PRESENT: City Manager Garcia, Interim City Attorney Miesfeld, Interim City Clerk Norris, and Deputy City Clerk Bennett PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE SPECIAL ORDERS OF THE DAY . INTRODUCTION BY INTERIM FIRE CHIEF GEERING OF EMPLOYEE OF THE MONTH, JAMES "JIM" GARCIA, BATTALION CHIEF Interim Fire Chief Geering introduced employee of the month Jim Garcia. Mayor Cox read the proclamation and Deputy Mayor Rindone presented it to Jim. . OATH OF OFFICE Brandon Marvin to the Charter Review Commission Ariana Perfecto to the Youth Action Council Interim City Clerk Norris administered the oath of office to Ariana Perfecto, and Councilmember McCann presented her with a certificate of appointment. Mr. Marvin was not present at the meeting. Mayor Cox then introduced and welcomed Boy Scout Troop 151. CONSENT CALENDAR (Items I through 4) Mayor Cox announced that Item 4 had been properly noticed as a Public Hearing, and was moved to the Public Hearings section of the agenda. 1. RESOLUTION NO. 2008-212, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FINAL "B" MAP OF CHULA VISTA TRACT NO. 06-05, OTAY RANCH VILLAGE TWO, NEIGHBORHOOD R-13; APPROVING THE ASSOClA.TED SUBDIVISION IMPROVEMENT AGREEMENT FOR THE COMPLETION OF THE IMPROVEMENTS; AND APPROVING THE ASSOCIATED SUPPLEMENTAL SUBDIVISION IMPROVEMENT AGREEMENT Page 1 - Council Minutes September 16, 2008 1-1 DRAFT CONSENT CALENDAR (Continued) On May 23, 2006, by Resolution No. 2006-157, Council approved the Tentative Subdivision Map for Chula Vista Tract No. 06-05 for Oray Ranch Village Two and Portions of Village Four (Tentative Map). Adoption of the resolution approves the Final "B" Map for Chula Vista Tract No. 06-05, Otay Ranch Village Two, Neighborhood R- 13. (City EngineerlEngineering Director) Staff recommendation: Council adopt the resolution. 2. RESOLUTION NO. 2008-213, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING CONTRACT FOR THE "PAVEMENT REHABILITATION PROGRAM, FISCAL YEAR 2006/2007, CHIP SEAL & SCRUB SEAL IN THE CITY OF CHULA VISTA, CALIFOR..l\JIA (CIP NO. STL-340D)" PROJECT TO WINDSOR FUEL CO., INC. IN THE AMOUNT OF $1,597,625.45, WAIVING COUNCIL POLICY 574-01, AND AUTHORIZING THE EXPENDITURE OF ALL A V AILABLE FUNDS IN THE PROJECT On August 13, 2008, the Engineering Director received sealed bids for the project. The work consists of the application of a chip seal, removal and replacement of damaged asphalt concrete pavement, and the application of scrub seal on various pavement locations in the City. Work for this project also includes striping, traffic control, and other miscellaneous work, and all labor, material, equipment, and transportation necessary for the project. (City EngineerlEngineering Director) Staff recommendation: Council adopt the resolution. 3. RESOLUTION NO. 2008-214, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING $59,740 OF UNANTICIPATED REVENUES FROM THE CALIFOR..l\JIA DEPARTMENT OF CONSERVATION, DIVISION OF RECYCLING BEVERAGE CONTAINER RECYCLING AND LITTER REDUCTION ACTIVITIES GRANT PROGRAM AND AMENDING THE WASTE MANAGEMENT AND RECYCLING FUND (4/5THS VOTE REQUIRED) The California Department of Conservation, Division of Recycling distributes $10.5 million for Fiscal Year 2008/2009 to eligible cities and counties, specifically for beverage container recycling and litter reduction activities. The goal of the program is to reach and maintain an 80 percent recycling rate for all California Redemption Value beverage containers - aluminum, glass, plastic and bi-metal. Chula Vista has received $59,740 for Fiscal year 2008/2009. (Public Works Director) Staff recommendation: Council adopt the resolution. 4. Item 4 was moved to Public Hearings. ACTION: Deputy Mayor Rindone moved to approve staffs recommendations and offered the Consent Calendar (Items I, 2, and 3) headings read, text waived, Councilmember McCann seconded the motion and it carried 5-0. Page 2 - Council Minutes September 162008 1-2 DR-A.FT ITEMS REMOVED FROM THE CONSENT CALENDAR There were none. PUBLIC COMMENTS Scott Vinson, Chula Vista resident, requested that the taxpayers' money spent for payment of legal fees for Councilmember Castaneda be returned to the City for Police and Fire, Parks and streets. James L. Lambert, Carlsbad resident, representing American Family Association, asked for Council's support of a proposed proclamation that would affirm support of Proposition 8, a constitutional amendment on the November 4,2008 ballot. Juan Gonzales, Chula Vista resident, stated that while -the City cancelled this year's Fourth of July fireworks, the Council recently approved payment of legal fees for Councilmember Castaneda. He asked the Council to reconsider the matter. Larry Breitfelder, Chula Vista resident, representing Chula Vista Taxpayers Association, spoke about the Association's objection to City fees being inflated to the point of becoming hidden taxes. To that end, he cited the City's fire inspection fee .on businesses, which he stated was a new tax on local businesses, was not based upon a new risk assessment, and that the cost to the public would be above the cost to the City of doing the inspection. He encouraged the Council to reconsider the matter. Carlos Lopez spoke about the M.lYlC Peaker Plant proposal, stating that he was not opposed to having a peaker plant in the City, but was opposed to its proposed location. Mayor Cox announced that the California Energy Commission was scheduled to hold a hearing in the Chula Vista Council Chambers, Thursday, September 18, 2008 at 3:00 p.m. Theresa Acerro, Chula Vista resident, spoke in opposition to the proposed MMC Peaker Power Plant. Guillermo Lopez, Chula Vista resident, spoke in opposition to the proposed MMC Peaker Plant and asked for the Council's response to his concerns. Reiner Jose Leal, Chula Vista resident, requested that Councilmember Castaneda reimburse the City for payment of his legal fees. Paula Whitsell, Chula Vista resident, spoke in opposition to the recent Council decision to pay Councilmember Castaneda's legal fees. She suggested that Councilmember Castaneda pursue the District Attorney's Office for reimbursement of the legal fees. Cheryl Presto, Chula Vista resident, spoke in opposition to the Council's decision to pay for Councilmember Castaneda's legal fees. Page 3 - Council Minutes September 16,2008 1-3 DRAFT PUBLIC COMMENTS (Continued) Jamie Del Rosario, Chula Vista resident, spoke in favor of bringing new jobs and businesses to the City, and asked the Council to stop playing politics with taxpayers' money. Gabriel Gutierrez, Chula Vista resident, stated that the City was not doing enough to resolve its financial issues, and he expressed concern over not being allowed to vote for the Utility Users' Tax. Michael Gorski, Chula Vista resident, spoke in opposition to the Council's decision to pay for Councilmember Castaneda's legal fees. He asked Councilmember Castaneda to pay the money - back to the City. Michael Spethman, Chula Vista resident, asked Councilmember Castaneda when the citizens could expect repayment of his legal fees. Kevin O'Neill, Chula Vista resident, requested information regarding the basis for the Council's decision to pay Councilmember Castaneda's legal fees, and he requested that the Council place the matter on a future Council agenda. Steven Pavka, Chula Vista resident, spoke in opposition to the MMC Peaker Power Plant. PUBLIC HEARINGS 4. RESOLUTION NO. 2008-215, RESOLUTION OF THE CITY COlTNCIL OF THE CITY OF CHULA VISTA PURSUANT TO SECTION 147(F) OF THE INTERNAL REVENUE CODE APPROVING THE CONVERSION OF TAX/\BLE BO?\TDS ISSUED BY THE CITY OF CHULA VISTA FOR TERESINA APARTMENTS TO TAX EXEMPT STATUS A.ND APPROVING THE MA TURlTY DATE THEREOF In 2006, multi-family revenue bonds were refunded utilizing a variable rate mode. Due to tax law restrictions, the bonds could not be tax-exempt, but could be converted to tax-' exempt status at a particular date. The City is now proceeding with the conversion of $37,940,000 City of Chula Vista variable Rate Demand Multifamily Housing Revenue Refunding Bonds to tax-exempt. Adoption of the resolution approves the conversion. (Redevelopment and Housing Assistant Director) Notice of the hearing was given in accordance with legal requirements, and the hearing was held on the date and at the time specified in the notice. Housing Manager Mills explained the proposed bond conversion. Mayor Cox opened the public hearing. There being no members of the public who wished to speak, Mayor Cox closed the public hearing. ACTION: Deputy Mayor Rindone moved to adopt Council Resolution No. 2008-215, heading read, text waived. Councilmember Ramirez seconded the motion and it carried 5-0. Page 4 - Council Minutes September 16 2008 1-4 DRAFT PUBLIC HEARINGS (Continued) 5. CONSIDERATION OF AMENDING UTILITY UNDERGROUNTIING DISTRICT NO. 133 ALONG FOURTH A VENUE FROM L STREET TO ORANGE AVENUE TO INCLUDE FIVE ADDITIONAL PARCELS AND DELETE ONE PARCEL The Utility Undergrounding District on Fourth Avenue from L Street to Orange Avenue was originally established in 2001. During the final design and construction process, San Diego Gas and Electric determined that it would be desirable to include five adjacent parcels that were not included within the boundaries of the original district. Staff is recommending the boundaries of the district be modified to include these additional parcels. (City EngineerlEngineering Director) Notice of the hearing was given in accordance with legal requirements, and the hearing was held on the date and at the time specified in the notice. Councilmember Ramirez stated he would be abstaining from voting on Item No.5, due to the proximity of his property to the parcels. He then left the dais. City Engineer Hopkins explained SDG&E's recommendations for under grounding the utilities. He stated that the project was anticipated to be completed in 2009. 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 McCann moved to adopt the following Resolution No. 2008-216, heading read, text waived: RESOLUTION NO. 2008-216, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE BOUNDARIES OF UTILITY UNDERGROlJNDING DISTRICT NO. 133 ALONG FOURTH A VENUE FROM L STREET TO ORANGE A VENUE TO INCLUDE PARCELS APN 618-400-11,619-010-21,618-190-44,619-211-21 AND 619- 211-20 AND TO DELETE PARCEL APN 618-270-41 Councilmember Castaneda seconded the motion and it carried 4-0-1, with Councilmember Ramirez abstaining. Councilmember Ramirez returned to the dais at 6:54 p.m. ACTION ITEMS 6. CONSIDERATION OF PRESENTATIONS BY PROPONENTS AND OPPONENTS REGARDING A NOVEMBER 2008 BALLOT INITIATIVE ENTITLED "THE PORT OF SAN DIEGO MARINE FREIGHT PRESERVATION MTI BAYFRONT REDEVELOPMENT INITIATIVE" Representatives of the proponents and opponents of the November 4, 2008 General Election Ballot Initiative have been invited to present information on the initiative. Staff has requested that the representatives limit any formal remarks and/or presentations to approximately 10 minutes and that they be prepared to answer any questions the Councilmember's may have regarding the initiative. (Economic Development Officer) Page 5 - Council Minutes September 16, 2008 1-5 DRAFT ACTION ITEMS (Continued) City Manager Garcia explained that the City's partnership with the Port District would give Chula Vista residents the opportunity to vote on the proposed ballot initiative. He then introduced Economic Development Manager Stone who explained the proposed initiative. Staff Member Stone referenced correspondence that was distributed to the Council from Frank Gallagher, proponent of the initiative, dated September 16, 2008. He then introduced Chris Barnes, Vice President and General Counsel for NASSCO, representing "Save Our Working Waterfront", who spoke on behalf of organizations that were opposed to the proposed initiative. He spoke about issues, concerns and adverse effects of the iniative on the region. Patricia Aguilar, Chula Vista resident and President of Crossroads II, suggested that the City join with other regional cities to take a position on the matter, and for the Council to give direction to staff to place Council's position on record against the proposed initiative. She stated that the proposed initiative would have a detrimental effect on the regional economy. Mayor Cox spoke in agreement with the comments by Ms. Aguilar, stating her concerns that the proposed initiative would affect 40,000 higher-paying jobs; did not take in to account the environmental, traffic, pollution, and noise that could adversely affect the public; the proposal could potentially shift millions of dollars from the 5 port cities of San Diego to the hands of private developers, and she was against ballot box planning. Bill Hall, Port Commissioner Emeritus and Chula Vista resident, responded to questions from Deputy Mayor Rindone regarding components of the proposed initiative. He also spoke about the negative economic impacts the initiative would have on the region, including sustainability of waterfront repair capability, which in turn would jeopardize the presence of the Navy, as well as numerous technology contractors within the region. Deputy Member Rindone asked, and City Attorney Miesfeld responded that it was appropriate for the Council to go on record to support or oppose a measure, but the expenditure of public funds could not be authorized toward that effort. ACTION: Deputy Mayor Rindone moved to oppose the November 2008 ballot initiative entitled, "The Port of San Diego Marine Freight Preservation and Bayfront Redevelopment Initiative". Councilmember McCann seconded the motion. Councilmember McCann spoke of the need to get the message out to the citizens that the proposed initiative was a bad idea. The motion carried 5-0. OTHER BUSINESS 7. CITY M.A..NAGER'S REPORTS City Manager Garcia referenced a newspaper article by the San Diego Daily Transcript, dated September 15, 2008, that was distributed to the Council, about the City's partnership with Chula Vista-based Goodrich Aerostructures, in applying the Toyota Production System to effectively manage a municipality. He was hopeful that the project would create a culture change for the organization and incorporate productivity and process improvements. He stated that staff would be reporting to the Council with regular updates. Page 6 - Council Minutes September 162008 1-6 DRAFT 8. MA YOR'S REPORTS Consideration of ratification of reappointments to the following boards and commissions: . Board of Appeals and Advisors: Albert Sides . Charter Review Commission: Bill Richter . Child Care Commission: Mary Alim . Civil Service Commission: Stacey Stevenson . Commission on Aging: Mikki Zbikowski . Cultural Arts Commission: Diannah Smith, Susan O'Shaughnessy . Design Review Board: Enrique Martinez, Ricardo Balvaneda . Grow1h Management Oversight Commission: David Krogh, Russ Hall (Central City Rep.) . Housing Advisory Commission: Earl Jentz (Ex-Officio), Margie Reese (Tenant Rep.) . Nature Center Board of Trustees: Susan Fuller, Floyd Wergeland . Parks and Recreation Commission: Kathleen Cien-Mayer . Planning Commission: Bryan Felber . Safety Commission: Jesse Navarro . Veterans Advisory Commission: Alfred Pellerin ACTION: Mayor Cox moved to approve the ratification of reappointments. Deputy Mayor Rindone seconded the motion and it carried 5-0. Mayor Cox announced the following upcoming events: Coastal Clean-up Day, September 20, 2008. wViw.cleanupdav.org. Information and registration at Beautifv Chula Vista. October 4, 2008. www.B'eautifvchulavista:org. Information and registration at 9. COUNCIL COMMENTS Councilmember Ramirez requested that staff place an item on the September 23 2008 Council agenda to discuss the information provided to the Council in Closed Session regarding the payment of legal fees for Councilmember Castaneda. Interim City Attorney Miesfeld responded that the matter could be placed on an agenda. Mayor Cox responded to the request by Councilmember Ramirez, and asked that the following points, addressed by the speakers under public comments, be included in the staff report: I) Clarification about whether or not the City was required to pay the fees; 2) The criminal investigation as it related to conduct within employment; and 3) The ability to use campaign funds for payment oflega! fees. Councilmember Ramirez spoke regarding the community foreclosure workshops hosted by the Library, and requested a parallel series of the foreclosure workshops in Spanish. He congratulated staff on the idea behind the library card design contest, and he looked forward to seeing the design proposals. He announced that his next public office hours would be held September 22, 2008, and more information could be found on the City's website. Page 7 - Council Minutes September 16, 2008 1-7 DRAFT COUNCIL COMMENTS (Continued) Councilmember McCann congratulated the Boys and Girls Club on the success of its fundraiser event at the Otay Ranch Center. Deputy Mayor Rindone congratulated the South County Economic Development Council (SCEDe) on the success of its recent summit. He recognized Dan Biggs, the current President of SCEDC, and Cindy Gompper-Graves for coordinating the event. He also congratulated staff members Leah Browder and Ed Van Eenoo on their recent promotions to Deputy City Managers. Mayor Cox recessed the meeting to convene in Closed Session at 7:36 p.m. CLOSED SESSION 10. PUBLIC EMPLOYEE DISCIPLINE/DISMISSALlRELEASE PURSUANT TO GOVERNMENT CODE SECTION 54957 ACTION: Council member Ramirez moved to terminate the contract of the City Manager, effective immediately, without the requirement of severance under the terms of his employment. Councilmember Castaneda seconded the motion and it carried 4-1, with Deputy Mayor Rindone voting no. 11. CONFERENCE WITH LEGAL COUNSEL REGARDING SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO GOVER.NMENT CODE SECTION 54956.9(b) Two cases Case 1: ACTION: Councilmember McCann moved to authorize and direct the City Attorney to release on Friday, September 19, 2008, at 5:00 p.m., to the Copley Press, in response to its July 14, 2008 Public Records Act request, records that are responsive to that request, except for personal financial accounting information. Councilmember Ramirez seconded the motion and it carried 4-1, with Deputy Mayor Rindone voting no. Case 2: No reportable action was taken on this item. ADJOUR.NMENT At 11 :35 p.m., Mayor Cox adjourned the meeting to the Regular Meeting of September 23, 2008 at 6:00 p.m. in the Council Chambers. &~~ ~ #~j Lorraine Be ett, CMC, Deputy City Cler Page 8 - Council Minutes September 162008 1-8 ORDINAc"iCE NO. f>-OO?\\O" _,...,('; f>-"O ORDINA..NCE OF THE CITY OF C;~WISTA A..MENDING CHA.PTERS 20.04 A1.,;l) ~O~"THE CHl-TLA vlSTA lv1UN1CIPA..L CODE BY AIDING SECTIONS 20.04.025.AND 20.04.050 A.Nl) A CROSS REFERENCE IN SECTION 5.02 The Ciry Council of the City of Chula Vista does ordain as follows: SECTION I. Tnat Chapter 20.04 of the Chula Vista Municipal Code is hereby amended to read as follows: Chapter 20.04 E)\I"ERGY CONSERVATION REGULATIONS Sections: 20.04.010 Intent and purpose of provisions. 20.04.020 Cont1ict with other provisions. 20.04.025 Definitions. 20.04.030 Solar water heater preplumbing. 20.04.050 Business energy assessments. 20.04.010 Intent and purpose of provisions. The conservation of energy and narural resour.ces has been determined to be a legitimate and worthy function of the city. The :provisions of this chapter are imended to decrease dependence upon nonrenewable energy sources by encouraging and, in some inSTances, requiring the 'installation of devices, struCnlres or materials for the conservation of energy on cenain str'~ctures within t,l-je city. 20.04.020 Conflict with other provisions. , Portions of this chapter which are in 'connict with other sections of the municipal code' are imended to be exceptions to those sections and shall take precedence over such sections. 20.04.025 Definitions.. The following words and phrases, when used in this chapter, shall be construed as defined in this section: A. ':Assessment" means a written evalu2.tion of a facility's energy use from building systems, appliances and office equipment. B. ;:Energy Conservation" means reduction of energy use ac:hieved by relying on changes to.behavior. C. '~Energy Efficienq/' means activi.ties or programs that reduce energy use by upgrading to mOre efficiem equipment or controls. . D. "Greenhouse Gas Emission" me,,-,"lS the direct or indirect emission of one or more of the six gases idemified in the Kyoto Protocol. J;'AIL~cy\Ordin1lllcc\Bu:ljn= E..,ef\ty O~i;uncc (cle::n c:;_llI-,-l-ml.Uoc 2-1 Ordiilance No. Page 2 E. "Nonrenewable" means an energy resource that is not replaced or is replaced o~Jy veri slowly by natura! processes. F. "Solar Water Heater" means a device that heats domestic water bv allowina solar energy collectors to transfer solar heat energy to water. J .~ 20.04.030 Solar water heater preplumbing. All new residential units shall include plumbing specifically designed to allow the later installation of a system which utilizes solar energy as the primary means of heating domestic potable water. No building pelTI1jt shall be issued unless the plumbing required pursuant to this section is indicated on the building plans. Preplumbing shall exrend through the roof when the slope of the roof is less rhan four inches and 12 inches and when the roof covering is of clay or concrete tile. Preplumbing pipes for domestic solar hot water heating shall be insulated. This section shall apply only to those residential dwelling units for which a building permit was applied for after the effective date of the ordinance codified in this chapter. Exception: The provisions of this chapter can be modified or waived when it can be satisfactorily demonstrated to the building official that the solar preplumbing is impractical due to shading, building orientation, construcrion constraims or configuration of L~e parcel. 20.04.050 Business energy assessments. All commercial and industrial businesses in the City of Chula Vista are encouraged to participate iTI a free energy Assessment of their facilities to help them identify Energy Efficiency and Conservation opportunities thar potentially reduce participants' reoccurring energy costs and corresponding Greenhouse Gas Emissions. Assessments are recorru-nended when a new business license is issued or once every. three years for an existing license. Participating businesses are encouraged to cooperate with City staff or their delegate(s) by providing; 1) a date and time for the Assessment convenient for Lf)e business, 2) access to their facilities for the Assessment during their regul2.r business hours, 3) authorization to review their historical energy usage and 4) a signarure and title of a facility manager on a completed Assessment forrn acknowledging that the busLl1ess has received a completed Assessment and relevant information about voluntary Energy Efficiency improvement opportUnities. The owner of a multi-tenan.t commercial building or their designee (property manager) may, at their discretion, authorize a whole building Assessment replacing the need for individual tenant Assessments. Assessment Notification Process: The City may send a notice to each business at least once every three years in conjunction \vrth the City's annual business license renewal mailer providing information thaI facilitates the scheduling of an Assessment at the business's convenience. A business may also receive a business Assessment notice whenever a new license is required such as the establishment of a new business or transfer of ownership for an existing business. J:\Altnm"y\Onlino.oc.,IS...inc:ss En~~,;, Oroin~IlC: \el....., (;(;~_I 0-2 t -I)8.';D(; 2-2 Ordinance No. Page 3 Assessment DeIiverables: The Assessment findings, provided to the panicipating business on a form establisbed by the Ciry Manager in' conjunction witb the local utility and business representatives, may include a cbart of their bistorical energy consumption, an eSTimate of potential energy and cost savings from identified Energy Conservarion and Efficiency oppartunities and an estimate of the corresponding Greenhouse Gas Emission reductions. The Assessment may also. review water conservation, alternative transportation and other practices whicb the business co.uld implement and/or promote to itS employees and. customers and an estimate of the resulting Greenhouse Gas Emission reductions. The Ciry may offer participants assistance with completing the applicable rebate, incentive and/or on-bill financing forrns to facilitate the adoption of the identified Energy Efficiency improvements and help reduce the business's time and cost of implementin.g the voluntary measures. The Ciry may also provide contact information for the local utility's program staff that may funher assist the business in reducing its energy costS. Exclusions: Because Energy Efficiency is commonly related to a facility's age and design, a voluntary Energy Assessment is not recommended for new busL'lesses occupying a commercia! space wbich have completed one of the following: I) been permitted by tbe City Building Division within the laST three years for a remodel or new construction to meet the mo.st current Ciry Title 24 aD.d. above standards, 2) bas been certified thro.ugh a California Energy Cornmission- approved (or other applicable scate agency) green building program or 3) has already received an Assessment within the last three years. In additio.n, Assessments are not necessary for home offices,- mabile businesses and o.Lt,er business entities that do not have a utility gas or electric meter on a co.mmercial rate schedule. SECTION n. That the Ctoss'Reference sectio.n of Chapter 5.02 of the Chula Vista Municipal Code is hereby amended to read as follows: Chapter 5.02 BUSli'lESS LICENSES GENERALLY CROSS REFERENCE: Business Energy AssessmentS, see Ch. 20.04 CYMe. Charitable Solicitations, see Ch. 9.2 i CYMC. ObstruCting Stree,s, see Ch. 12.12 CY?vIC. Building and Construction Permits, see CVi\1C Title 15. SECTION III. This ordinance shall take effect and be in full force thirty days fro.m its adaption. Presented by Appro.ved as to form by '--~'r;p. FJa0.' - , J' ,,1 . \;' (. I . .j , .. , "r~;iarr~~~la~ . '~. .~ l~)Y1m Clry Atto.rney Michael Meacham Director of Co.nservation & Environ..'Tlental Services J:\AHomc)'\OrdifUnC=-'~iJ.5in= ~ Or:::in=ce (cl=n ~)_IO-:l.os.Joc 2-3 CITY COUNCIL AGENDA STATEMENT ~\~ CITY OF ~ ~ (HUlA VISTA 11/04/08, Iteml ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VIST A ACCEPTING BIDS AND A WARDING THE CONTRACT FOR THE ENERGY EFFICIENCY LIGHTING RETROFIT AT MULTIPLE FACILITIES IN THE CITY OF CHULA VISTA, CALIFORNIA (CIP NO. GG202E) TO AMERICAN PO~OLUTIONS \.",,- DIRECTOR OF ENGINEERING ~ __~ DIRECTOR OF CONSERVATION & ENVrRONMENTAL SERVICES <- ----I INTERIM CITY MANAGER 7 SUBMITTED BY: REVIEWED BY: 4/STHS VOTE: YES 0 NO [g] SUMMARY The Energy Efficiency Lighting Retrofit Project is part of the City of Chula VistalSDG&E Partnership Program and is funded through the California Energy Commission (CEC) loan program. This retrofit is one component of the Engineering Department staff s program to comply with the requirements as outlined in the Energy Savings Summary Tables developed by consultants in cooperation with SDG&E and the CEC. 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 15301 (Existing Facilities) of the State CEQA Guidelines because the project involves the retrofitting of existing lighting fixtures with more energy efficient fixtures. Thus, no further environmental review is necessary. RECOMMENDATION Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION The Energy Efficiency Lighting Retrofit Project is the first phase of a plan to retrofit City facilities with the most efficient lighting available. Existing lighting fixtures will be replaced with energy efficient fixtures which save energy and greatly reduce staff maintenance. The new 3-1 " 11/04/08, Item ~ Page 2 of 3 fixtures have a longer lamp life span and a ten year warranty. Additional staff time savings will be derived from changing out lamps that have currently reached their life span. This facility lighting improvement project is part of the City's broader efforts to promote energy efficiency at municipal sites and to lower citywide greenhouse gas or "carbon" emissions. The Chula Vista/SDG&E Partnership Program has provided financial support for City staff to evaluate, identify and coordinate the installation of these energy retrofit projects. Because Partnership nmds are not able to be used for capital costs associated with renewable energy upgrades, the City pursued and was awarded California Energy Commission loans which are designed to provide local agencies with capital funding to install energy-efficient systems and are re-paid through the resulting energy savings. Once the loan debt is re-paid, the City would capture the net savings on its annual energy costs. On September 12, 2008, staff prepared documents and advertised the Energy Efficiency Lighting Retrofit at Multiple Facilities Project (CIP No. GG202E) through the formal bid process. On September 24,2008, the Director of Engineering received two (2) bids for the project as follows: CONTRACTOR BID AMOUNT l. American Power Solutions - Fullerton, CA $64,180 2. Ace Electric, Inc. - San Diego, CA $126,370 The low bid submitted by American Power Solutions of $64, 180 is below the Engineer's estimate of$75,000 by $10,821 or 16.8%. Staff has verified the references provided by American Power Solutions and its work has been satisfactory. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found that Councilman' Castaneda has property holdings within 500 feet of the boundaries of the property which is the subject of this action. FISCAL IMPACT There is no impact to the General Fund as there are sufficient funds in the existing project. The CIP expenditures will be reimbursed through the CEC loan program previously approved by Council on April 1, 2008. City staff costs associated with implementing the projects will be funded by the current SDG&E Partnership Program. FUNDS REQUIRED FOR PROJECT A. Contract Amount (GG202E) $64,180.00 B. Contingencies (10% of contract amount) $6,418.00 TOTAL FUNDS REQUIRED FOR CONSTRUCTION $70,598.00 3-2 11/04/08, Item---3- Page 3 of 3 FUNDS AVAILABLE FOR CONSTRUCTION A. Existing C!P, GG202E $70,598.00 TOTAL FUNDS AVAILABLE FOR CONSTRUCTION $70,598.00 The initial investment from the General Fund for this project will be reimbursed through the CEC loan program whereby anticipated annual energy savings will be first utilized to payoff the debt service for the loan and thereafter all future energy savings will be realized in the General Fund. Upon completion of the project, the improvements will require only routine City maintenance. ATTACHMENTS 1. Contractor's Disclosure Statement Prepared by: Gordon Day, Sr. Building Project Nfanager, Engineering Department M:IGenera! ServiceslGS AdministrationlCounci! AgendalGG202ElAl13 Lighting Retrofit GG202eREV_BJR.doc 3-3 .ATTACHMENT I CITY OF CHULA VISTA DISCLOSURE STATEMENT Pursuant to Council Policy. 101-01, prior to any action upon matters that will require discretionary action by the Council, Planning Commission and all other official bodies of the City, a statement of disclosure of certain ownership or [mancial interests, payments, or campaign contributions for a City of Chula Vista election must be filed. The following information must be disclosed: 1. List the names of all persons having a [mancial interest in the property that is the subject of the application or the contract, e.g., owner, applicant, contractor, subcontractor, material supplier. YOLWl! K". HaM --42ei~r- Y 00 n 2. _ If any person' identified pursuant to (I) above is a corporation or partnership, list the names of all individuals with a $2000 investment in the business (corporation/partnership) entity. y 00 /<" H~ 3. If any person' identified pursuant to (I) above is a non-profit organization or trust, list the names of any person sen-ing as director of the non-profit organization or as trustee or beneficiary or trustor of the trust. fJ./ A- 4. Please identify every person, including any agents, employees, consultants, or independent contractors you have assigned to represent you before the City in this matter. P..R;(-.Jl y Yoon fl.W! (J~/~ 5. Has any person' associated with this contract had any [mancial dealings with an official" .at the City of Chula Vista as itrelates to this contract within the past 12 months? Yes_ No~ 3;"4 l\.[.\(i.-,npr" I .c:."rvi,~p~\r,...~iot1\1-,r;)r.7\l~(; ','I"i) F\..-;(;7It"; ':', ('n", ;;d q ", !1~ d,",r' If Yes, briefly describe the nature of the financial interesi the official*' may have in this contract. 6. Have you made a contribution of more than $2~0 within the past twelve (12) months to a current member of the Chula Vista City Council? No ':!..- Yes _If yes, which Council member? 7. Have you provided more than $340 (or an item of equivalent value) to an official" of the City of Chula Vista in the past twelve (12) months? (TQis includes being a source of income, money to retire a legal debt, gift, loan, etc.) Yes _ No ~ If Yes, which official" and what was the nature of item provided? Date: ~^ j,/O '6 , Person is defmed as: any individual, firm, co-partnership, joint venture, association, social club, fraternal organization, corporation, estate, trust, receiver, syndicate, any other county, city, municipality, district, or other political subdivision, -or any other group or combination acting as a unit. " Official includes, but is not limited to: Mayor, Council member, Planning Commissioner, Member of a board, commission, or committee of the City, employee, or staff members. 16 3-5 C\Documents and Settings\Peter Yoon\Local Settings\Temp~rary Internet Files\OLKC\GG202E Con~ct 9 3 08 (2).doc RESOLUTION NO. 2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING THE CONTRACT FOR THE ENERGY EFFICIENCY LIGHTING RETROFIT AT MULTIPLE FACILITIES IN THE CITY OF CHULA VISTA, CALIFORNIA (CIP NO. GG202E) TO AMERlCAN POWER SOLUTIONS WHEREAS, the Energy Efficiency Lighting Retrofit Project is part of the City of Chula Vista's Phase One Loan agreement with SDG&E and the California Energy Commission (CEC); and WHEREAS, this retrofit is one component of the Engineering Department staffs program to comply with the requirements as outlined in the Energy Savings Summary Tables developed by consultants in cooperation with SDG&E and the CEC; and WHEREAS, on September 12, 2008, the Engineering Department prepared documents and advertised the Energy Efficiency Lighting Retrofit at Multiple Facilities (CIP No. GG202E) through the formal bid process; and WHEREAS, on September 24, 2008, the Director of Engineering received two bids for the project as follows: CONTRACTOR BID AMOUNT 1. American Power Solutions - Fullerton, CA $64,180.00 2. Ace Electric, Inc. - San Diego, CA . $126,370.00 WHEREAS, the low bid submitted by American Power Solutions of $64,180 is below the Engineer's estimate of$75,000 by $10,821 or 16.8%; and WHEREAS, staff has verified the references provided by American Power Solutions, and its work has been satisfactory; and WHEREAS, this project shall be funded as follows: $70,598.00 from CIP No. GG202E, which shall be reimbursed in full from California Energy Commission Loans; and staff costs from ClP No. GG199, Energy Efficiency Program, which is funded from the SDG&E Partnership Program. 3-6 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City ofChula Vista that it accepts bids and awards the contract for the Energy Efficiency Lighting Retrofit at Multiple Facilities in the City of Chula Vista, California (CIP No. GG202E) to American Power Solutions, Inc. Presented by ~ 1 art Mies eld Interim City Attorney Richard A. Hopkins Director of Engineering 3-7 CITY COUNCIL AGENDA STATEMENT ~lff:.. CITY OF .~ (HULA VISTA 11/04/08, Item~ ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA MIENDING THE FISCAL YEAR 2008/2009 ENGINEERING AND DEVELOPMENT SERVICES REVENUE AND OPERATING BUDGETS AND APPROPRIATING UNANTICIPATED REVENUE IN THE AMOUNT OF $122,708 RECEIVED FROM NATIONAL CITY DIRECTOR OF ENGINEERING ~ DIRECTOR OF PUBLIC WORKS KK INTERIM CITY MANAGER <;;..-r-J SUBMITTED BY: REVIEWED BY: 4/STHS VOTE: YES [g] NO 0 SUMMARY The City of Chula Vista Engineering and Development Services (Engineering and Public Works) staff have been contracted to provide professional services to the City of National City for their capital improvement projects. A portion of the revenues received from National City are requested to be appropriated to the Engineering and Development Services Operating Budgets as necessary to cover the cost of overtime incurred. ENVIRONMENTAL REVIEW Not applicable. RECOMMENDATION Council adopt the resolution. BOARDS/COMMISSION RECOMMENDA nON Not applicable. DISCUSSION City staff has been contracted to provide professional services to National City in an effort to provide inter-jurisdictional support and to increase revenue opportunities. The services provided for as per the agreement with National City include capital improvement project related tasks such as inspection services, construction management, professional engineering, and project management. 4-1 11/04/08, Item~ Page 2 of 2 The original agreement included a not-to-exceed amount of $200,000. The agreement allowed for increasing the not-to-exceed amount with mutual agreement of the parties. The agreement was amended on September 16, 2008, increasing the not-to-exceed amount to $475,000, an increase of $275,000. Due to the nature of the work and expedient effort of National City to get projects completed, staff has had to incur a reasonable amount of overtime. The City has received to date a total of $155,531.25 in contract revenue. It is anticipated that the City will receive a not-to-exceed amount of $475,000 for staff time including overtime as contracted. Of that amount, actual overtime incurred and anticipated overtime is estimated at $122,708. Approval of this item will appropriate overtime funds in this amount to the Development Services and Engineering operating budgets, along with offsetting revenues. There are sufficient funds received and anticipated per contract from National City for this purpose. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations Section I 8704.2(a)(I) is not applicable to this decision. FISCAL IMPACT The FY09 budget assumed revenues in the amount of $200,000 per the original agreement with National City dated June 3, 2008. The agreement has been amended on September 16, 2008 to a not to exceed amount of $475,000. Tonight's action will appropriate unanticipated revenue in the amount of $122,708 in the Engineering and Development Services (Engineering and Public Works) Overtime expenditure budgets and offsetting revenue resulting in a no net impact to the General Fund and Development Service Fund. A summary of the appropriations by Fu.nd/Department are as follows: Fund Department Overtime A ro riation $51,648 $49,291 $21,769 $122,708 Offsetting Revenue General DSF DSF Engineering PW - Construction Inspection En - Trans ortation Plannin Total A ro riations $51,648 $49,291 $21,769 $122,708 ATTACHMENTS I. National City Agreement and Amendment Prepared by: Merce LeClair, Sr. }vfanagement Analyst, Engineering Dept. M:\Engineer\AGENDA\CAS2008\11-04-08\NC OT AppropriationFfNAL.doc 4-2 pTTACHMENT / AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF CHULA VISTA At'ID THE CITY OF NATIONAL CITY This Agreement for Professional Services Between the City of Chula Vista and the City of National City (AGREEMENT) is entered into and in effect as of this 4th day of June, 2008, by and between the City of Chula Vista (CHULA VISTA), a municipal corporation, and the City of National City (NATIONAL CITY), a municipal corporation, and is made in reference to the following facts: WHEREAS, NATIONAL CITY desires to employ the services of CHULA VISTA to provide professional engineering services, including construction and project management, to NATIONAL CITY, more specifically described in the Scope of Services. WHEREAS, CHULA VISTA is experienced in providing engineering, constl1lction management, and project management services and is fully qualified to provide the assistance sought by NATIONAL CITY. THEREFORE, IT IS AGREED AS FOLLOWS: 1. TERN[ OF AGREEMENT A. This AGREEMENT shall be effective beginning June 4, 2008. B. CHULA VISTA shall commence the performance of its obligations under this AGREEMENT upon the effective date of this AGREEMENT, and shall continue through June 30, 2009, unless this AGREEMENT is otherwise terminated or extended. 2. SCOPE OF WORK A. Scope of Services. CHULA VISTA will perform services (DESCRIBED SERVICES) as set forth in the attached Exhibit" A". B. Research and Review. CHULA VISTA shall be responsible for all research and review related to the work and shall not rely on personnel of NATIONAL CITY for such services, except as authOlized in advance by NATIONAL CITY. C. Changes to Scope of Services. NATIONAL CITY may from time to time reduce or increase the Scope of Services to be performed by CHULA VISTA under this AGREEMENT Upon doing so, NATIONAL CITY and CHULA VISTA agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction or .increase in the compensation associated with the change in services, subject to NATIONAL CITY City Council approval if the change leads to an amount due that exceeds the funds authorized and appropriated pursuant to this AGREEMENT, otherwise subject to approval by the NATIONAL CITY Director of Engineering. 1 of 11++ 4-3 Agreement for Professional Services D. CHULA VISTA will periodically, and at the request of NATIONAL CrTY, provide the services listed above at facilities operated by NATIONAL CITY or at other sites designated by NATIONAL CITY. CHULA VISTA will periodically, and at the request of NATIONAL CITY, attend and pa11icipate in meetings involving matters and/or . projects for which CHULA VISTA is providing services pursuant to this AGREEMENT. 3. ADDITIONAL DUTIES CHULA VISTA shall not perform work in excess of the DESCRIBED SERVICES without the prior, written approval of NATIONAL CITY'S Director of Engineering and CHULA VIST A'S City Engineer. All additions to the Scope of Work shall be mutually agreed upon and in writing, signed by the appropriate parties prior to the commencement of any additional duties. 4. ASSIGNMENT OF DUTIES The duties in the described scope of work are personal to CHULA VISTA, and may not be assigned or subcontracted to a third party without the prior written approval of NATIONAL CITY'S Director of Engineering. CHULA VISTA shall provide the names of the individuals assigned to perform the work pursuant to this AGREEMENT. Any changes in the individual(s) who will be assigned by CHULA VISTA to perfom1 these services shall be subject to approval by NATIONAL CITY's Director of Engineering. 5. CONFIDENTV\LITY OF INFORMATION The parties recognize that much of the information to which access is granted may be confidential in nature. As such, CHULA VISTA agrees not to disclose this information to unauthorized persons without the prior written consent of NATIONAL CITY'S City Manager. To the extent any of the infoTInation is protected by the attorney-client communication privilege or the attorney work-product privilege, CHULA VISTA agrees not to disclose this infol1nation, unless specifically authorized by the City Council of NATIONAL CITY and the City Attorney for NATIONAL CITY, respectively. All work performed by CHULA VISTA including but not limited to all drafts, data, correspondence, proposals, reports, and estimates compiled or composed by CHULA VISTA pursuant to this AGREEMENT is for the sole use of NATIONAL CITY. 6. PAYMENT FOR DESCRIBED SERVICES NATIONAL CITY shall pay CHULA VISTA for constl1lction and/or project management services in accordance with the fee schedule attached as Exhibit B. In order for payment to be made, CHULA VISTA shall submit detailed monthly invoices to NATIONAL CITY for the number of hours for which it has provided consulting services. Payment shall be made on a monthly basis within forty-five (45) days of NATIONAL CITY'S 'receipt of CHULA VISTA'S invoices. 2 of UP 4-4 Agreement for Professional Services NATIONAL CITY has appropriated or otherwise duly authorized the payment of an amount not to exceed two-hundred thousand dollars ($200,000.00) for engineeling, construction management, and project management services and out-of-pocket disbursements pursuant to this AGREEMENT. In no event shall the total fees plus out-of-pocket disbursements exceed this amount without written authorization ofNA TIONAL CITY. A. Billing Fonnat. Each billing entry must be complete, discrete and appropriate. 1. Comp lete a. Each entry must name the person or persons involved. For instance, telephone calls must include the names of all participants. b. The date the work was performed must be included. c. The hours should be billed in .10 hour increments. d. The specific task performed should be described, and the related work product should. be referenced ("telephoae call re: change order request," "precon meeling with NC staff and contractors"). e. The name and title of the individual associated with the billing entry should be included. 2. Discrete. Each task must be set out as a discrete billing entry; neither narrative nor block billing is acceptable. 3. Appropriate a. NATIONAL CITY does not pay for clerical supp0l1, administrative costs, overhead costs, mileage, outside expenses or excessive expenses. For example, NATIONAL CITY will not pay for secretarial time, word processing time, air conditioning, rental of equipment, including computers, meals served at meetings, travel time, postage, online research, or the overhead costs of sending or receiving faxes. Neither will NATIONAL CITY pay for outside expenses such as messenger delivery fees, outside photocopying, or overnight mail. To the extent such expenses are incurred by CHULA VISTA, they are considered to already have been compensated for such expenses by the hourly rate being paid for the services provided pursuant to the AGREEMENT and no additional payment shall be due or made. b. Due to the nature of NATIONAL CITY's payment process, NATIONAL CITY will not pay any late charges. NATIONAL CITY will pay bills within forty-five (45) days. 3 of UP 4-5 Agreement for Professional Services B. Acceptabilitv of Work. NATIONAL CITY shall decide any and all questions which may arise as to the quality or acceptability of the services perfOlmed, and the acceptable completion of this AGREEMENT. In the event CHULA VISTA and NATIONAL CITY calmot agree to the quality or acceptability of the work perfOlmed by CHULA VISTA pursuant to this AGREEMENT, NATIONAL CITY or CHULA VISTA shall give to the other party written notice within ten (10) business days, CHULA VISTA and NATIONAL CITY shall each prepare a report which supports their position and file the report with the other party. NATIONAL CITY shall, with reasonable diligence, determine the quality or acceptability of the work and/or the compensation payable to CHULA VISTA. 7. TERNIINATION NATIONAL CITY may immediately terminate this AGREEMENT for cause at any time. In the event NATIONAL CITY terminates this AGREEMENT, CHULA VISTA shall submit a detailed invoice for services already performed. Payment for services perfOlmed shall be made within thirty (30) days of a receipt of CHULA VISTA'S invoice for services. Either NATIONAL CITY or CHULA VISTA may terminate this AGREEMENT with or without cause at any time by providing two weeks (14 calendar days) written notice to the other party. 8. STATUS OF CHULA VISTA NATIONAL CITY and CHULA VISTA recognize and acknowledge the relationship as that of independent contractor. CHULA VISTA shall perform the DESCRIBED SERVICES in a manner of CHULA VISTA'S own choice as an independent contractor, and not as an employee of NATIONAL CITY. Under no circumstances shall the designated employee from CHULA VISTA represent him/herself as an employee ofNA TIONAL CITY. Retention of CHULA VISTA is based on the particular professional expertise of the individuals rendering the services required in the Scope of Services. 9. CONTROL Neither NATIONAL CITY nor its officers, agents or employees shall have any control over the conduct of CHULA VISTA or any of CHULA VISTA'S employees except as set forth in this AGREEMENT, and CHULA VISTA expressly agrees not to represent that CHULA VISTA or CHULA VISTA's agents, servants, or employees are in any manner agents, servants or employees of NATIONAL CITY, it being understood that CHULA VISTA, its . agents, servants, and employees are as to NATIONAL CITY wholly independent and that CHULA VISTA's obligations to NATIONAL CITY are solely such as are prescribed by this AGREEMENT. 4 of 111-+ 4-6 Agreement for Professional Services 10. HOLD HARMLESS Defense and Indemnity A. Claims Arising from Sole Acts or Omissions of NATIONAL CITY. NATIONAL CITY agrees to defend and indemnify CHULA VISTA, and its agents, officers and employees, from any claim, action, or proceeding against CHULA VISTA, arising solely out of the acts or omissions of NATIONAL CITY in the performance of this AGREEMENT. At its sole discretion, CHULA VISTA may participate at its own expense in the defense of any claim, action, or proceeding, but SllCh participation shall not relieve NATIONAL CITY of any obligation imposed by this AGREEMENT. CHULA VISTA shall promptly notify NATIONAL CITY of any claim, action, or proceeding and cooperate fully in the defense. B. Claims Arising From Sole Acts or Omissions of CHULA VISTA. CHULA VISTA agrees to defend and indemnify NATIONAL CITY, and its respective agents, officers, and employees, from any claim, action, or proceeding against NATIONAL CITY arising solely out of the acts or omissions of CHULA VISTA in the performance of this AGREEMENT. At its soJe discretion, NATIONAL CITY may participate at its own expense in the defense of any claim, action, or proceeding, but such participation shall not relieve CHULA VISTA of any obligation imposed by this AGREEMENT. NATIONAL CITY shall promptly notify CHULA VISTA of any claim, action, or proceeding, and cooperate fully in the defense. C. Claims Arising from Concurrent Acts or Omissions. CHULA VISTA agrees to defend itself and NATIONAL CITY agrees to defend itself, from any claim, action, or proceeding arising out of the concurrent acts or omissions of CHULA VISTA and NATIONAL CITY. In such cases, CHULA VISTA and NATIONAL CITY agree to retain their own legal counsel, bear their own defense costs, and waive their right to seek reimbursement of such costs except as provided in subsection E below. D. Joint Defense. Notwithstanding subsection C above, in cases where CHULA VISTA and NATIONAL CITY agree in writing to a joint defense, CHULA VISTA and NATIONAL CITY may appoint joint defense counsel to defend the claim, action, or proceeding arising out of the concurrent acts or omissions of CHULA VISTA and NATIONAL CITY. Joint defense counsel shall he selected by mutual agreement of the parties. The parties further agree that no party may bind the other party to a settlement agreement without the written consent of the other party. E. Reimbursement and/or Reallocation. Where a final judgment of a court award allocates or determines the comparative fault of the parties, CHULA VISTA and NATIONAL CITY may seek reimbursement and/or reallocation of defense costs, settlement payments, judgments, and awards, consistent with such comparative fault. 50fL7P 4-7 Agreement for Professional Services 11. ATTORNEYS' FEES Should either party to this AGREEMENT commence any legal action or proceeding against the other party based upon this AGREEMENT, the prevailing party shall be entitled to an award of reasonable attorneys' fees and all costs incurred in the investigation and prosecution or defense of any such action. 12. MISCELLANEOUS PROVISIONS A. Time of Essence. Time is of the essence for each provision of this AGREEMENT. B. California Law. This AGREEMENT shall be constrned and interpreted in accordance with the laws of the State of California. CHULA VISTA covenants and agrees to subinit to the personal jurisdiction of any state comi in the State of California for any dispute, claim, or matter arising out of or related to this AGREEMENT. C. Waiver. The failure of NATIONAL CITY to enforce a particular condition or provision of this AGREEMENT shall not constitute a waiver of that condition or provision or its enforceability. D. Conflict of Interest. During the tenn of this AGREEMENT, CHULA VISTA shall not perform services of any kind for any person or entity whose interests conflict in any way with those of NATIONAL CITY. The individuals assigned by CHULA VISTA to perfonn the services pursuant to this AGREEMENT shall not perform work for or provide information to CHULA VISTA related to the project(s) for which the individuals are performing services for NATIONAL CITY. CHuLA VISTA agrees to preclude these individuals from working on or sharing information about the same project(s) for the benefit of CHULA VISTA if they have worked on the project(s) for NATIONAL CITY. These prohibitions shall not preclude NATIONAL CITY from expressly agreeing to a waiver of a potential conflict of interest under certain circumstances. E. No Obligations to Third Parties. Except as otherwise expressly provided, the execution and delivery of this AGREEMENT shall not be deemed to confer any rights upon, or obligate any of the parties, to any person or entity other than the parties to this AGREEMENT. F. Constrnction. The parties aclmowledge and agree that: (i) each party is of equal bargaining strength, (ii) each party has actively participated in the drafting, preparation and negotiation of this AGREEMENT, and (iii) any rnle or constrnction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this AGREEMENT, or any portions, or amendments to the AGREEMENT. 6 of ! 7.P 4=8 Agreement for Professional Services G. Notices. All notices or other' communications required or pemlitted by this AGREEMENT shall be in writing, and shall be personally delivered; or sent by ovemight mail (Federal Express or the like); or sent by registered or certified mail, postage prepaid, retum receipt requested; or sent by ordinary mail, postage prepaid; or telegraphed or cabled; or delivered or sent by telex, telecopy, facsimile or fax; and shall be deemed received upon the earlier of: (i) if personally delivered, the date of delivery to the address of the person to receive such notice, (ii) if sent by ovemight mail, the business day following its deposit in such ovemight mail facility, (iii) if mailed by registered, certified or ordinary mail, five (5) days (ten (10) days if the address is outside the State of Califomia) after the date of deposit in a post office, mailbox, mail chute, or other like facility regularly maintained by the United States Postal Service, (iv)' if given by telegraph or cable, when delivered to the telegraph company with charges prepaid, or (v) if given by telex, telecopy, facsimile or fax, when sent. Any notice, request, demand, direction or other communication delivered or sent as specified above shall be directed to the following persons: To NATIONAL CITY: Maryam Babaki, Director of Engineering City of National City 1243 National City Boulevard National City, CA 91950-4301 To CHULA VISTA: Rick Hopkins, PE City Engineer/Assistant Director Engineering and General Services Department 276 Fourth Avenue Chula Vista, CA 91910-2631 H. Countemarts. This AGREEMENT may be executed in multiple counterparts, each of which sha1l be deemed an original, but a1l of which, together, shall constitute but one and the same instrument. 13. INSURANCE CHULA VISTA shall provide its own liability insurance, including automobile liability insurance, health, disability, and any other insurance. CHULA VISTA shall not be responsible for insurance coverage for NATIONAL CITY'S employees. NATIONAL CITY sha1l not be responsible for insurance coverage for CHULA VISTA'S employees. CHULA VISTA shall provide its own workers' compensation for any CHULA VISTA employee who performs services pursuant to this AGREEMENT. 7 of 17],:1 4-9 Agreement for Professional Services '" 1. "'1T:_.._ ___...1 "T_-I-;~_~ll';h, 14. FILES All ofCHULA VISTA'S files for matters involving NATIONAL CITY produced pursuant to this AGREEMENT, including works in progress, are the property of NATIONAL CITY, and upon termination of this AGREEMENT, shall be immediately delivered to NATIONAL CITY. Upon tennination or expiration of this AGREEMENT, CHULA VISTA may retain copies of pertinent documents, but only if authorized by NATIONAL CITY. 15. ENTIRE AGREEMENT The text in this AGREEMENT constitutes the entire AGREEMENT between the parties. No verbal agreement or conversation with any officer, agent, or employee of NATIONAL CITY, either before, during, or after the execution of this AGREEMENT, shall effect or modify any of the terms or obligations contained in this AGREEMENT, nor shall such verbal agreement or conversation entitle CHULA VISTA to any additional payment whatsoever. 16. SEVERABILITY If any provision of this AGREEMENT is held to be invalid or unenforceable, that provision shall be deemed severable. The remainder of this AGREEMENT, or any portion of the AGREEMENT, shall not be affected and shall remain in full force and effect until the DESCRIDED SERVICES are completed or the AGREEMENT is ternlinated. IN WITNESS WHEREOF, the parties have executed this AGREEMENT on the date and year first above written. CITY OF CHULA VISTA ~.. iL'~ . ,I}"" /7' . , /. /. . (/ . ~.'-' ..r.... -'/ /" By: ,<l ~/ L/ ' /Y'Vid R. Ga;6ia~ City Manager APPROVED AS TO FORJ.V1: APPROVED AS TO FORM: ~ /J '!%,Ah' ~ George H. Eiser, III City Attorney J~!t,h~~ Ann Moore t/. - City Attorney 8 of 1 71'+ 4-10 Agreement for Professional Services EXHIBIT A Scope of Work: The City of Chula Vista [Chula Vista] will provide Engineering and Technical staff to assist the City of National City [National City] in the management and delivery of pavement preservation and rehabilitation projects and various park and public facility improvements. A Senior Civil Engineer will serve as the Project Manager for the pavement projects and a Building Project Manager will serve as the Construction Manager for the parks and facilities improvement projects. The following lisiingof tasks serves to outline the process anticipated for project delivery, the estimated schedules, and approximate costs. It is understood by both agencies that any or all of these tasks may be performed by Chula Vista staff, however, National City may decide to perform a portion or all of a task(s) by alternate means or resources. Chula Vista will work on an hourly basis with regular reports to National City on the status of expenditures. 1. Tasks for Pavement Contracts. A. Survey! Assessment. 1. Two Field Evaluation teams (two members on each team for a total of four) shall perform field evaluations of residential streets using the PASER Manual criteria to assign PCI ratings to each street. Streets that are deemed appropriate for slurry seal will be marked out for dig-outs at the time the PCI determination is made. The Project Manager will lead the field evaluation team and shall update National City staff with the progress of the project. 9 of ID-i' 4-11 Agreement for Professional Services - -. B. Prioritize/Strategize. 1. At the completion of the field evaluation. the data will be stored in an Excel spreadsheet based on locations by neighborhoods. The purpose of grouping by neighborhoods is to target the entire neighborhood in order to develop an on-going pavement rehabilitation strategy. 2. The information may be placed in a Pavement Management Program (i.e. Street Saver), should National City elect to formally introduce a Pavement Management Program. Otherwise, the appropriate strategies will be selected based on the PCI of the street and the direction of National City. C. Plans, Specifications, & Engineering. 1. Construction Contract Preparation. a. Chula Vista will prepare the necessary plans and specifications for the Construction Contract(s). Contract preparation will occur concurrently with the field evaluations and includes: quantifying the surface area of the streets, quantifying the associated dig-outs per location, preparing the dig- out quantities, and preparing the plans and specifications. b. Construction Contracts will be finalized for National City staff to review one week after completion of fieldwork. lOaf J.ZF.1 4-12 Agreement for Professional Services c. The plans and specifications will be signed and sealed by the Project ManagerlDesigner and approved by National City's City Engineer. 2. Advertisement of Project. a. A three-week advertisement period will commence after National City has approved the construction contract specifications. The day after opening bids and conducting the reference check, a letter will be issued to inform the Contractor that they are the lowest bidder, references have been checked, and that they should proceed with obtaining the required bonds and insurance certificates. 3. Award by City Council. a. Chula Vista's Project Manager shall prepare the required agenda statements and associated documents necessary for the award of the project. The Project Manager will attend the National City Council meeting for the award of the project and answer questions regarding the project, if requested to do so by National City. D. Construction. 1. Based on this schedule, construction is anticipated to commence for the first contract in August for a sixty-calendar day construction duration. 2. A Senior Civil Engineer, a Senior Public Works Inspector, and a Public Works Inspector II will be assigned to the Construction Inspection and Contract Administration portion of the work. Their duties include: a. Coordination with Contractor: Coordinate with the Contractor regarding issues such as permitting requirements, long lead item purchasing 11 of 1 7!-"1 4~T3 Agreement for Professional Services recommendations, implementation of the City specifications, coordination with the Contractor regarding such issues as community relations, permitting requirements, and pre-submittal questions. b. Coordination for special construction requirements: Hold as-needed pre- construction activities, such as site visits, with the Contractor. 3. Pre-Construction Meeting/Weekly Progress and Coordination Meetings: Chula Vista will prepare agendas, meeting minutes and chair all weekly progress and coordination meetings required by the project specifications, and as needed during the project at the direction of National City. 4. RFl's: Chula Vista will log and facilitate all Contractor Requests for Information [RFI's], coordinating with National City staff and assuring that RFI's are responded to expeditiously. 5. Assist in Processing Submittal/Shop Drawing Review: Chula Vista will log and facilitate all Contractor submittalslshop drawings for the project and provide a preliminary review assuring the submittal has been submitted as required by the Contract Documents. A submittal log will be kept to track the status on all submittals. 6. Assist in Design Revisions and Project Change Orders: Review, negotiate and make recommendations on Contractor- and Owrier-generated construction contract change orders; address contract revisions, design 12 of 17-1-7 4-14 Agreement for Professional Services .1 r1:...__ changes, unanticipated field conditions, additional work requests, etc. Once reviewed, Chula Vista staff will make their recommendations to National City for review prior to responding to the Contractor. 7. Contract Revisions: Chula Vista will prepare contract revisions, if required, during construction to resolve problems due to unanticipated field conditions or other field changes, and consult with, and advise, National City on contract revision-related issues. These contract revisions mayor may not result in contract change orders. 8. Contract Administration: Chula Vista will provide scheduling services for periodic review, analysis, and tracking of the Contractor's construction schedule. Chula Vista will provide construction cost accounting services during the construction phase, including such tasks as progress payment review, cost accounting, budget tracking, general correspondence with National City, etc. 9, Materials Inspection Coordination: Chula Vista will facilitate any required materials testing required by the contract and coordinate and review lab, shop and manufacturers test reports, results of field materials testing, etc. 10. Weekly or Bi-Weekly Meetings: Chura Vista will prepare agendas, meeting minutes, and chair all weekly progress and coordination meetings required by the specifications and as needed during the project. 13 ofllP 4-15 Agreement for Professional Services 11. Project Closeout: Chula Vista will assist National City staff with project closeout, including final acceptance, claims negotiations, preparation of Notices of Completion, and making recommendations for final payment and release of retention or securities to the Contractor. 2. Tasks for Construction Manaqement of Parks and Facilities Proiects. A. Construction Manager duties include: 1. Plan, Specifications, and Estimate reviews: Provide review and comments of draft contract documents. 2. Coordination with Contractor: Coordinate with the Contractor regarding such issues as permitting requirements, long lead item purchasing recommendations, implementation of the City specifications, coordination with the Contractor regarding such issues as community relations, permitting requirements, and pre-submittal questions. 3. Coordination for special construction requirements: Hold as-needed pre- construction activities, such as site visits, with the Contractor. 4. Pre-Construction Meeting/Weekly Progress and Coordination Meetings:Chula Vista will prepare agendas, meeting minutes and chair all weekly progress and coordination meetings required by the project specifications, and as needed during the project at the direction of National City. 14 of ll!-+ 4-16 Agreement for Professional Services 5. RF/'s' Chula Vista will log and facilitate all Contractor Requests for Information [RFI's], coordinating with National City staff and assuring that RFI's are responded to expeditiously. 6. Assist in Processing Submittal/Shop Drawing Review: Chula Vista will log and facilitate all Contractor submittals/shop drawings for the project and provide a preliminary review assuring the submittal has been submitted as required by the Contract Documents. A submittal log will be kept to track the status on all submittals. 7. Assist in Design Revisions and Project Change Orders: Review, negotiate and make recommendations on Contractor- and Owner-generated construction contract change orders; address contract revisions, design changes, unanticipated field conditions, additional work requests, etc. Once reviewed, Chula Vista staff will make their recommendations to National City for review prior to responding to the Contractor. 8. Contract Revisions: Chula Vista will prepare contract revisions, if required, . during construction to resolve problems due to unanticipated field conditions or other field changes, and consult with, and advise, National City on contract revision-related issues. These contract revisions mayor may not result in contract change orders. 9. Contract Administration: Chula Vista shall provide scheduling services for periodic review, analysis, and tracking of the Contractor's construction ISofli"''' 4-17 Agreement for Professional Services schedule. Chula Vista will provide construction cost accounting services during the construction phase, including such tasks as progress payment review, cost accounting, budget tracking, general correspondence with National City, etc. 10. Materials Inspection Coordination: Chula Vista will facilitate any required materials testing required by the contract and coordinate and review lab, shop and manufacturers test reports, results of field materials testing, etc. 11. Weekly or Bi-Weekly Meetings: Chula Vista will prepare agendas, meeting minutes, and chair all weekly progress and coordination meetings required by the specifications and as needed during the project. 12. Project Closeout: Chula Vista will assist National City staff with project closeout, including final acceptance, claims negotiations, preparation of Notices of Completion, and making recommendations for final payment and release of retention or securities to the Contractor. 16 of l7P 4"':18 Agreement for Professional Services Exhibit B CITY OF CHULA VISTA- SELECTED HOURLY RATES for Agreement with City of National City . Hourly Rate Hourly Rate Hourly Rate Employee Classification Thru 6/30/08 7/01/08 to 12/31/08 1/01/09 to 6/30/10 Associate Engineer $117 $121 $126 Associate Civil Engineer $123 $128 $133 Senior Civil Engineer $134 $140 $145 Principal Civil Engineer $168 $175 $182 Engineering Technician II $89 $92 $96 Senior Engineering Technician $91 $95 $99 Public Works Inspector II $102 $106 $110 Senior Public Works Inspector $117 $121 $126 Sr. Building Projects Supervisor $121 $126 $131 Land Surveyor $126 $131 $136 Assistant Surveyor II $109 $114 $118 Surveying Technician II $74 $77 $80 17 of 1 7.1-7 4-19 Agreement for Professional Services Ki;;t, '~~~l.~ '~t~f~ A.TVfENDMENT NUMBER ONE TO THE AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF NATIONAL CITY AND CITY OF CHULA VISTA This Amendment Number One to the Agreement for Professional Services Between the City of National City and City ofChula Vista ("Amendment") is entered into this 16th day of September 2008, by and between the City of National City, a municipal corporation ("CITY"), and the City ofChula Vista (the "CONTRACTOR"). RECIT ALS A. The CITY and the CONTRACTOR entered into an agreement on June 3, 2008, entitled Agreement for Professional Services between the City of National City and City of ChuIa Vista ("Original Agreement"), wherein the CONTRACTOR agreed to provide construction engineering, management, and inspection services for the CITY'S major active projects. . "~'" B. The Original Agreement provides that CITY may increase the Scope of Services to be performed by CONTRACTOR. C. The CITY now seeks to increase the Scope of Services by increasing the number of staff/staff hours to provide additional construction engineering, management, and inspection services for the National City major active projects, and CONTRACTOR seeks to perform this increased work. D. The CITY and CONTRACTOR have negotiated and agreed upon the additional compensation associated with this increased work. AGREEMENT NOW, THEREFORE, the parties hereto agree as follows: 1. This Amendment specifies additional work to be performed by CONTRACTOR for CITY at specified hourly rates, which is detailed in Exhibit "A", attached hereto and incorporated herein by reference. 2. This Amendment authorizes the payment of an amount not to exceed $275,000 for this additional work, increasing the not to exceed amount in Section 6 of the Original Agreement from TWO-HUNDRED THOUSAND DOLLARS ($200,000) to FOUR-HUNDRED SEVENTY-FIVE THOUSAND DOLLARS ($475,000) for all services, including the additional services that are the subject of this Amendment. 3. The parties agree that with the foregoing exception, each and every term and provision of the Original Agreement shall remain in full force and effect. 4-20 IN WITNESS WHEREOF, the parties hereto have executed this Amendment on the date and year first above written. CITY OF NATIONAL CITY By: I/? Yt __ Rc;n Morrison, Mayor APPROVED AS TO FORM: ~/J~~ George H. Eiser, III City Attorney - 2- 4-21 By: Amendment No. One to Agreement Between National City and Chula Vista ~Uy ~ .~ ~ ~ OlY OF CHULA VISTA DEPARTMENT Of ENGINEERING City of National City 1243 National City Blvd, National City, CA 91950 EXHIBIT "A" September 9,2008 File No, NC-0804 Attn: Ms, Maeyam Babaki PRO.fECT: PROPOSALS FOR NATIONAL CITY, PAVEMENT RESURFAciNG, LIBRARY REMODEL, AND OTHER RELEVANT PROJECTS SUBJECT: AMENDMENT NUMBER 1 TO AGREEMENT Based llpon the anticipated work schedllle foe the eemainder of Phase 2 construction (60 wocking days), construction duratlon for Phase 3 construction (40 working days), construction dueation for Library Remodel project (30 woeking days), and anticipated staffing eequieements toe the Building Demolition Pmject as weB as other eelevant pwjects, our proposal is the tollowing: HOURLY TOTAL TASK TlTLE " 'PERSONNEL HOURS RATE COST Inspection Servtces Sf. Public Works Cados Melendez 540 $12100 . $65,340,00 (Phase 2) lnspector [nspectton Services Associate Bett Juan 540 $12 lOO $65,340,00 (Phase 2) Errgineer - [nspection Services ASSOclate Civil Patrick Moneda 540 $128.00 $69,120,00 (Phase 2) Engineer mspecttOCl Services Senioe Public I (Phase 3) Works Inspector "-like Schedme 360 $l2\.OO $43,560,00 Construction rv.lanagement . (Phase 2 and Phase 3), Sr. ClvlIEngineer Jeff Moneda 400 $14000 $56,000,00 Project rvlanagement (BuildiIlg DemolItion PrOject) Sf. Building Project j'vlanagement Projects Gordon Day 120 $126.00 $15,120,00 Supervisor .. PROPOSAL TOTAL $3l4,480,OO It should be noted that tbe boues sbowu above are based on the anticipated schedule from August 18, 2008 to constructiou completion, Theproposal breakdown sllOwn abo\'c is based on the anticipated constrnctlon schedule for the remainder of Phase 2, the constructlon duration sllOwn in the speciflcations for Phase 3 Highland Avenue, and the anticipated construction schedule for the Library Remodel and Buildwg Demolition 276 FOURTH AVENUE f CHUlA VI5jA-:-tA~IFORNIA 91l} 10-26J I 1(6191 Gq 1-5011 ::2.. Po>! CO"',,,,,., R<<(\<:"'~ f':I~", CITY OF NATIONAL CITY - 2 - . September 9, 2008 projects. If the project requires project management/inspection services beyond the work hours assumed for this estimate or if services are needed beyond the estimate shown above, staff costs will increase accordingly. Invoicing shall be based on 0.10 hour increments. Should the projects require City of Chula Vista services beyond the scope outlined above, we will proceed on a time and material basis based on our agreement with the City of National City and at the direction of the City of National City's City Engineer. It should be noted that our agreement with the City of National City authorizes an aggregate payment amount not to exceed $200,000.00 for engineering, construction management, and project management services. The authorization of this scope of work for $314,480.00, in addition to the previous invoices for June and July 2008 totaling $83,417.50, would increase the aggregate total payment amount to $397,897.50 for all aforementioned projects. Total Contract In addition to the above scope of work, it was mutually agreed that an additional $50,000 in Building Project Manager (Gordon Day) services would be needed for Park Phases 1, 2, and 3, the Police Department and Former Library Remodel projects. Additional work has also been assigned to Mr. Day. We conservatively estimate that the total cost of services to be provided by Mr. Day may approach $75,000. Therefore, we recommend that the contract's "not-to-exceed'.' authorization be increased to $475,000 at this time. This would result in an amendment amount of $275,000. An exhibit is attached showing staff costs per project. Should you have any questions, please do not hesitate to contact me. ~. RICHARD A. HOPKINS, P.E. CITY OF CHULA VISTA DIRECTOR OF ENGINEERING c: lracsema Quilantan, Assistant Director of Engineering Merceditas LeClair, Engineering JeffMoneda, Senior Civil Engineer. Gordon Day, Building Project Manager M:\Gencral Services\Design\Narional City\Proposals\Phase 2 & Phase 3 & Library Proposal Letter Revised Sept 2008. DOC .4-23 CITY OF CHULA VISTA NATIONAL CITY EXHIBIT Project Staff Costs to Date (7/31/08) Anticipated Staff Costs Total Project Cost Phase 1 Slurry Seai (07-03) $18,560 $7,640 $26,200 Phase 2 Resurfacing (08-04) $74,560 $205,000 $279,560 Phase 3 Highland Avenue (08-08) $2,775 $69,640 $72,415 Miscellaneous Bld9S and Parks - $8,575 $76,000 $84,575 Building Demolition Project (08-02) $1,050 $11,200 $12,250 Total Project Staff Cost $475,000 Approved Amount Per Current Agreement $200,000 Requested Amendment Amount Per New Agreement $275,000 "'" N I "'" , Project Original Scope Staff Costs Increase in Scope of Work Total Project-Cost Staff Costs Phase 1 Slurry Seai (07-03) $10,000 $16,200 $26,200 Phase 2 Resurfacing (08-04) $145,000 $134,560 $279,560 - Phase 3 Highland Avenue (08-08) New Project $0 $72,415 $72,415 Miscellaneous Bldgs and Parks $45,000 $39,575 $84,575 Building Demolition Project (08-02) New Project $0 $12,250 $12,250 Total $200,000 $275,000 $475,000 Financial Breakdown of Requested Amendment Amount $275 000 RESOLUTION NO. 2008 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FISCAL YEAR 2008/2009 ENGINEERING AND DEVELOPMENT SERVICES REVENUE AND OPERATING BUDGETS AND APPROPRIATING UNANTICIPATED REVENUE IN THE AMOUNT OF $122,708 RECErVED FROM NATIONAL CITY WHEREAS, on June 3, 2008, the City of Chula Vista and National City entered into an Agreement for City staff to provide professional services to National City; and WHEREAS, these professional services include capital improvement project related tasks such as inspection services, construction management, professional engineering, and project . management; and WHEREAS, pursuant to the Agreement, National City was authorized to expend an amount not to exceed $200,000 for the professional services; and WHEREAS, the Fiscal Year 2008/2009 budget reflected revenues 10 the amount of $200,000; and WHEREAS, the Agreement was amended on September 16, 2008 to increase the not to exceed amount of the Agreement to $475,000; and WHEREAS, City staff has incurred overtime in .the last few months due to National City's effort to get projects completed; and WHEREAS, staff estimates that the amount of actual overtime incurred and anticipated overtime is $122,708 and wishes to appropriate $51,648 to the General Fund, Engineering Department; $49,291 to the DSF Fund, PW-Construction Inspection Department; and $21,769 to the DSF Fund, Eng-Transportation Planning Department. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City orChula Vista that it amends the Fiscal Year 2008/2009 Engineering and Development Services Revenue and Operating Budgets and appropriates $5 1,648 to the General Fund, Engineering Department; $49,291 to the DSF Fund, PW-Construction Inspection Department; and $21,769 to the DSF Fund, Eng-Transportation Planning Department from unanticipated revenue received from National City. Presented by Approved as to form by Richard A. Hopkins Director of Engineering V~ !~ Bart Miesfeld lnterim City Attorney .~~~ ~I H:\ENGJNEER\RESOS\Resos2008\11.04-08\NC overtimeREV revised by ec.doc 4-25 CITY COUNCIL AGENDA STATEMENT ~~l~ C1lYOF .-- "-- (HUlA VISTA ITEM TITLE: SUBMITTED BY: REVIEWED BY: 11/04/08, Item ~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VIST A APPROVING A MEMORANDUM OF UNDERSTANDING (MOD) WITH THE SA,,! DIEGO ASSOCIATION OF GOVERt'l"MENTS (SANDAG) FOR THE PURPOSE OF CONDUCTING A STUDY TO EXAMINE MULTI- MODAL IMPROVEMENTS TO THE INTERSTATE 5 (1-5) CORRIDOR RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE TRANSFER OF EXISTING FUNDS FROM CAPITAL IMPROVEMENT PROJECT (CIP) STM 362 "I-5/H STREET INTERCHANGE IMPROVEMENTS' TO CIP STM361 "1-5 MULTI-MODAL CORRIDOR IMPROVEMENT STUDY", APPROPRIATING $1,987,200 IN SAFETEA-LU (SAFE, ACCOUNTABLE FLEXIBLE, EFFICIENT, TRANSPORTATION EQUITY ACT: A LEGACY FOR USERS) FUNDS AND AMENDING THE FISCAL YEAR2~09 CIP PROGRAM DIRECTOR Of ENGINEERING l];:JRX INTERIM CITY MANAGER ~ 4/STHS VOTE: YES [g] NO 0 SUMMARY The City of Chula Vista would like to enter into an MOU with SANDAG for the purpose of conducting a shldy to examine multi-modal improvements to the 1-5 corridor between the Main Street interchange and State Route 54 (SR-54). The MOU provides that S^"NDAG will be the lead agency and defines roles and obligations for funding. The Council action tonight is for approval to enter into the MOU and to transfer funds from the [-5/H Street Interchange Project to the 1-5 Multi-Modal Corridor Study Project. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class 6 categorical exemption pursuant to Section 15306 (Information Collection) of the State CEQA Guidelines. Thus, no further environmental review is necessary. 5-1 11/04/08, Iteml Page 2 of 4 RECOMMENDATION Council adopt the resolutions. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION The City, along with its partners at Caltrans, FHW A and SAi'IDAG desire to participate in a study to examine multi-modal improvements to the 1-5 Corridor between the Main Street interchange and SR-54. This study would identify the ultimate improvements needed for the four-mile long 1-5 corridor that includes the freeway, the railway corridor and the local street crossings and under-crossings within the City of Chula Vista. The City desires to co-sponsor a joint multi-modal transportation study along 1-5, (the Project) with SANDAG (Attachment I) . Separately, Caltrans has also identified a project team that will assist on this effort. The funding for Caltrans staff is already approved in the Caltrans budget. SANDAG approved their Fiscal Year 2008/2009 work program budget for this project on October 24, 2008. Neither the Caltrans nor the SANDAG budget is part of the City of Chula Vista Capital Improvement Program budget. The project lies entirely within the jurisdiction of the City of Chula Vista but assistance and coordination on a regional level is required ofCaltrans and SANDAG. The goal of the [-5 Multi-Modal Corridor Study is to evaluate various modes of transportation within this corridor in order to identify ultimate improvements to accommodate current and future traffic demands in the 1-5 south corridor from Main Street to SR-54. This study will analyze interchange spacing and freeway operations, Light Rail Transit (LRT) and freight rail operations running parallel to 1-5, and transitlpedestrianlbicycle circulation adjacent to and across the 1-5 corridor. This study will prepare preliminary concept alternatives integrating both highway and LRT and freight rail improvements within this segment of the 1-5 corridor. The areas of focus will include freeway and rail facilities along 1-5 at E Street, F Street, H Street, Marina Parkway/J Street, L Street (including hook ramps), Palomar Street, and Main Street. These preliminary concept alternatives will be narrowed to three concept alternatives. The highway improvements presented in the concept alternatives will be carried forward by Caltrans in the preparation of a Project Study ReportlProject Development Support (PSRlPDS) to serve as the Project Initiation Document (PID) for highway and corridor improvements. Subsequent to this effort, Caltrans, City, and/or SMTIAG will then proceed with the environmental document and design phases for the highest priority project(s). On October 17, and October 24, 2008, SANDAG's Transportation Committee and Board of Directors, respectively approved the MOD pending tonight's City of Chula Vista approval (Attachment 2). The purpose of the MOD with SANDAG is to define funding and roles between City and SANDAG. In addition, the MOD allows SANDAG to take the lead role on the Project. The scope of work has been prepared by Caltrans and been approved by City and SAi'IDAG staff. SANDAG has already screened several consultant teams that can adequately perform this study. The consultant selection process has been completed with Caltrans approval. We have received a letter from SANDAG attesting that they will be co-sponsors on this project (Attachment 2). 5-2 11/04/08, Item~ Page 3 of 4 The consultant will prepare a PSRlPDS document to serve as the PID for the LRT and freight rail improvements proposed in the concept alternatives. The PSRlPDS will be prepared in accordance with Caltrans policies and procedures and include preliminary engineering and preliminary environmental analysis, estimated constmction costs, and a conceptual phasing plan for financing and construction. The City of Chula Vista has received a Federal grant in the amount of up to $1,987,200 in SAFETEA-LU funds for this study titled, "Conduct a study to examine multi-modal improvements to the [-5 corridor between the Main Street interchange and State Route 54". This Federal reimbursement fund requires a minimum of 20% local matching funds and the City has identified $540,000 in TransNet funds for the match. Initially, this funding was to study only the interchange at I-5/H Street in our CIP program identified at STM 362, but staff worked with Congressman Filner's office, in the SAFETEA-LU Technical Corrections Act of 2008, to increase the study limits of this study to not only include the H Street interchange but six others; SR-54, E Street, J Street, L Street, Palomar Street & Main Street in Chula Vista. A corridor study is needed before we can initiate any interchange improvements. Tonight's Council action will transfer funds from STM 362 into the Ie5 Multi-modal Corridor Project STM 361. Since there are several modes of transportation, such as bicycle, pedestrian, rail and transit, that are also impacted along this constrained corridor, the study intends to evaluate all of them to list in order of priority the projects that should be undertaken so that they are all coordinated and phased as funding becomes available. This effort will result in a Project Study Report, preliminary engineering and estimates but does not include an environmental document or construction. . Staff intends to utilize any remaining local and Federal funds to advance the environmental and design portion of the initial priority list of project(s). It is anticipated that this initial phase of work for the corridor will take approximately 24 months to complete. The tentative project schedule is to begin in November, 2008 and complete the work by end of Fiscal Year 2011. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found a conflict exists, in that Councilmember Ramirez has property holdings within 500 feet of the boundaries of the property which is the subject of this action. FISCAL IMPACT Grant funds are available for expenditure on a reimbursement basis by the Applicant (City of Chula Vista) aftcr a fully executed MOU with SAt'IDAG is secured. At this time, staff is recommending transferring existing funds in the amount of $540,000 from C[p STM362 to STM361 (which will close STM362 as it is no longer needed), establishing STM361 and appropriating grant funds in the amount of $1,987,200 amending the Fiscal Year 2008/2009 Capital Improvement Program. As mentioned above, expenditures are on a reimbursement basis, however, there are sufficient matching funds to mitigate cash flow deficiencies. 5-3 r 11/04/08, Item~ Page 4 of 4 A breakdown of estimated expenditures for the initial phase of project and available funding for the entire project are as follows: Estimated Expenditures for Initial Phase City Staff Services $ 200,000 Consultant Services (Not to Exceed for Initial Phase) $1,000,000 Total Estimated Expenditures for Initial Phase $1,200,000 Available Fundin!! TransNet Funds (Transfer from STM362 to STM361) $ 540,000 Grant (Additional Appropriation to STM361) $1,987,200 Total Available Fundin!! 52,527,200 Non-Federal local agency (TransNet) funds in the amount of $496,800 are minimally needed. The City has $540,000 of local funds from TransNet-L ($50,000) and Transnet-LSI (5400,000) funds. The City is now overmatched by $43,200, the difference between our required match and what is locally available. The excess $43,200 has been and shall continue to be used for City staff charges prior to the Federal authorization to proceed. Once Federal authorization to proceed is given, most likely in November, City staff can begin to seek City staff and consultant reimbursement on expenses through Caltrans via the Federal fund reimbursement procedures. Caltrans and SANDAG staff costs are not part of the City ClP budget since each Agency has a separate budget for their staff. A TT ACHMENTS I. City Request for Co-sponsorship Letter to SANDAG 2. SANDAG Co-sponsor Letter 3, Memorandum of Understanding Prepared by: David E. Kaplan, Transportation Engineer, Engineering Department M:IEngineerIAGENDAICAS20081] ] -04-08ICAS 1-5 Study Agreement 10-2 ]-08 FrNAL.doc 5-4 ~~f? -.- \!i'___ _-_- ~ ~-~~ ATTACHMENT j CllY OF CHULA VlSfA DEPARTMENT OF ENGINEERING October 10, 2008 File: STM-361 Bob Leiter, Director of Land Use and Transportation Planning San Diego Association of Govemments 40 I B Street, Suite 800 San Diego, CA 92101-4231 REQUEST FOR CO-SPONSORSIDP OF PROJECT TO "CONDUCT A STUDY TO EXAMINE MULTI-MODAL IMPROVEMENTS TO THE 1-5 CORRIDOR BETWEEN THE MAIN STREET INTERCHANGE AND STATE ROUTE 54". Please allow this letter to serve as a request by the City of Chula Vista (City) to request that SANDAG be a co-sponsor with the City to conduct the multi-modal transportation study (the Study) along Interstate-5. Although the project lies within the jurisdiction of the City ofChula Vista, Caltrans and SANDAG staff have agreed that the Study is of regional importance since it will help prioritize and integrate the Regional Transportation Plan by developing a package of short and long-range actions to reduce traffic congestion along and adj acent to this corridor. Thus, it is anticipated that staff from all three agencies will work on the Study collaboratively. Said Study is referred to in the SAFETEA-LU Technical Corrections Act of 2008 under Sec. 105. "PROJECT AUTHORIZATIONS, with the following: "Conduct a study to examine multi- modal improvements to the 1-5 corridor between the ll.fain Street ilZterchmige and State Route 54". This in turn is also known as Demo Id # 677 and is in the 2008 RTIP as project # CHV30. As you are aware, the City of Chula Vista has received discretionary funding for up to $1,987,200 for the 1-5 South Multi-Modal Corridor Study and has budgeted $540,000 local match, see attached. To that end, the City desires to utilize SANDAG's on-call engineering consultant to complete the Study and plans on entering into an agreement with SANDAG. A more detailed Memorandum of Understanding is presently being worked on to more specifically detail the roles and responsibilities of the City and SAt'lDAG in these regards. We anticipate that the agreement will be presented to our Council for approval on November 4, 2008. Per a recent meeting held with Caltrans' District Local Assistance Engineering (DLAE) staff, a Demo fund co-sponsor change is needed with SA1\'DAG in order to utilize the SANDAG consultant "on-call" list. The DLAE office would also like SANDAG to confirm that all procedures for selecting the consultant have followed Chapter lOaf the "Local Assistance Procedures Manual", LPP 06-02. The City has placed a high priority on the subject report considering its significant beneficial impacts of improving transportation and goods movement in the south county and alleviating traffic congestion, at critical locations within the Region. 276 FOURTH AVENUE I CHULA VISTA, CALIFORNIA 91910-2631 1(619) 691-5021 @1'o"Cu",umnRU'l<l<1JI':lpe. I; "-" ,: 5-5 buu .1JCl LeI October 10, 2008 Page 2 Therefore, the. next step for the city in procuring the funds for the Study is this letter requesting your agreement on the matter of co-sponsorship and your indication of compliance with LPP 06- 02. If you concur with the above and wish to co-sponsor the Project with the City, please respond as such, to me in writing. If you have any questions, please call me or Dave Kaplan, Transportation Engineer at (619) 691- 5025: . Sincerely, R. A. OP 1 S DIRECTOR OF ENGINEERING/CITY ENGINEER ATTACHMENTS; H.R. 1195 SAFETEA-LU Technical Corrections Act of2008 (Excerpt) SANDAG ProjectTrak CHV30 cc: Frank Rivera, Principal Civil Engineer Dave Kaplan, Transportation Engineer Elisa Arias, Principal Planner, SANDAG, San Diego Association of Governments 401 B Street, Suite 800, San Diego, CA 92101-4231 Rachel Kennedy, Senior Planner, SANDAG, San Diego Association of Governments 401 B Street, Suite 800, San Diego, CA 92101-4231 Lou Melendez, Caltrans District 11 DLAE Representative, 4050 Taylor Street, San Diego, Ca. 92110 MS 122 J:\Enginecr\LANDDEV\Projects\Trnrfic Projects (Davc)\1-5 Project Study\SANDAG Co--op lencrdek IO-IO-08.doc 5-6 E-mail message received from Victoria StackWick of SANDAG: FRIDAY, JUNE 5, 2008 - 2:30 P.M. Earlier this afternoon, President Bush signed into law the bill H.R. 1195, making a series of technical and substantive changes to the 2005 SAFETEA-LU surface transportation law. No Public Law number is yet available for H.R. 1195 -the Office of the Federal Register should assign a P.L. number next week. H.R.1195 Title: To amend the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users to make technical corrections, and for other purposes. Sponsor: Rep Oberstar. James L. [MN-8] (introduced 2/27/2007) CosDonsors (3) Related Bills: H.R.3248, S.1611 Latest Major Action: 6/3/2008 Presented to President. [signed 6/5/08] House Reports: 110-62 H.R.1195 SAFETEA-LU Technical Corrections Act of 2008 Enrolled as A reed to or Passed b Both House and Senate I SEC.105. PHOJECTAUTHOHIZATION5. (a) Project Modifications- The table contained in section 1702 of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users '119 Stat. 1256) is amended-- . (145) in item number 3482 by striking the project description and inserting' Conduct a study to examine mulli-modal improvements to the 1-5 corridor between the Main Street Interchange and State Route 54'; 1 Note: Original request was for $2.16 million. Final appropriation estimated to be $1,987,200 based on President's across-the-board reductions of about 80/0. ] The full bill text is more th:m 50 pages long. Tl-.1s annotation :;J.ppears on page 16 of the GPO version of the enrolled bilL Colleen Camerue Page 1 6/6/2008 5-7 Search Results - THOMAS (Library of Congress) Page 2 of9 'Highway, traffic-flow, pedestrian facility, and streetscape improvements, Pittsburgh'; (144) in item number 697 by striking the project description and inserting 'Highway, traffic-flow, pedestrian facility, and streetscape improvements, Pittsburgh' ; (145) in item number 3597 by striking the project description and inserting , Road Alignment from IL Route 159 to Sullivan Drive, Swansea'; . (146) in item number 2352 by striking the project description and inserting , Streetscaping and transportation enhancements on 7th Street in Calexico, traffic signalization on Highway 78, construction of the Renewable Energy and Transportation Learning Center, improve and enlarge parking lot, and create bus stop, Brawley,'; (147) in item number 3482 by striking the project description and inserting 'Conduct a study to examine multi-modal improvements to the 1-5 corridor between the Main Street Interchange and State Route 54'; (148) in item number 1275 by striking the project description and inserting 'Scoping, permitting, engineering, construction management, and construction of Riverbank Park Bike Trail, Kearny'; (149) in item number 726 by striking the project description and inserting , Grade Separation at Vanowen and Clybourn, Burbank'; (150) in item number 1579 by striking the project description and inserting 'San Gabriel Blvd. rehabilitation project, Mission Road to Broadway, San Gabriel' ; (151) in item number 2690 by striking the project description and inserting 'San Gabriel Blvd, rehabilitation project, Mission Road to Broadway, San Gabriel' ; (152) in item number 2811 by striking the project description and inserting 'San Gabriel Blvd. rehabilitation project, Mission Road to Broadway, San Gabriei'; (153) in item number 259 by striking the project description and inserting , Design and construction of the Clair Nelson Intermodal Center in Finland, Lake County'; (154) in item number 3456 by striking the project description and by inserting 'Completion of Phase II/Part I of a project on Elizabeth Avenue in Coleraine to west of Itasca County State Aid Highway 15 in Itasca County'; (155) in item number 2429 by striking the project description and Inserting , Upgrade streets, undertake streetscaping, and implement traffic and pedestrian safety signalization improvements and highway-rail crossing safety improvements, Oak Lawn'; http://thomas.loc.gov/cgi-bin/query/D?c110:1:Jtemp/-c 11 Ob2IVxD:b38928: 5-8 10/03/2007 ProjectTrak - Project View 1);1!~~ l lJr 3 VIEWING A PROJECT (READ-ONLY MODE) IF you LIKE TO MAKE CHANGES TO THIS PROJECT, PLEASE PROCEED THROUGH AN AMENDMENT. VIEW PREVIOUS VERSIONS OF THIS PROJECT Me.QjQ; CHV30 ~aJf:.~LlQ..: nl a ,s";NPAG_tQ: n/a ~.llSLOJ'j: 2 I'1'!LQ, n/a .ILNUJ\\~J,B: nl a IiTlE; 08-00 BIl!'.-SmU;.Ae!'BP.l1.Q; RTIE-E.P....B~Lj\ffJm.l'E.PAI"-: l'_or<1I'LI'Tto_N.X.I'<R, LO.IAJSP_S] QEiL.lG8TEP.C_O_ST 2012 $2,527,200 $0 Ll\sLMOJJJEI..p_~_r: Skim (6/27/2008) HISTORY ADMINISTRATIVE EDIT CJ1 I <0 ~l,J_MP S.UM LJ.llylP_~!J.M.~~MI; No EBOJECTTY= LC..M Highway - 5 NO E.Q9..INOTE~ PROJECT INFORMATION EROGRAM I AUTHOf~lZATLON TYP!; 10 I F1T~. P~S'~#__________._!1riII_,_,________,__,_,.! I.'=~R~_~R~ f\J.()______________~ 1~677!:J4B2_..I 1_._._________________l5l I.____~___! LEAD.AGENCY I Ch~ia--Vrsta: City of PROJECT TYPE I Highway -1-5 -- EXEMPT CATEGORY IOther. Eng-f~eering studies. BAS(LJ;l.TEST RTP) IT~ [NO 1''''1 [NO I~;jl I,.~ ,,,,I :-=~ ----""..' ili ---'"",' .J.bill E80J."-CT JJI10 11:5M.uIII-tv1~cJ"I_C()rrid.<lr",ll11er~.~"rn~nt~tudy_ ,. .F:R..QJJ~GT.P1;SCRIPT10N - GUIDELINES conduct a study to examine multi-modal improvements Main Street Interchange and State Route 54 RT.lP nII08:OO - RTIP [g;J to the 1-5 corridor between the ..........'.---_._,_~".,,_..._.. .....-~,.___.....,.__._..___.___.___.. - __ ,_, ._._ .".", ._._.__, "'_~~__''''''__'' "0 _.".__~,. ~_ _. _ ",. '. '__.~"""'_'_ MWl, TIe!,_f;_l,._Q~ATIO..li~ http://pro j ect I rak, sanda g, org/pro j ect_ info, asp ?pro j ect_ i d=CI-IV 3 0& vers i on=2 11')' II '21108 ProjectTrak - Project View P:lgl..' ~ IIi' J SYSTEM ROJ!IE; l~ocal_Bill L__1gjj On 1-5 betl,oJeen SR 54 and Main Street interchange ~, CONGESTION RELIEF I; MAINTENANCE CAPACITY STATUS I N~n-Cap~~i;y-increase Sill -.".-.-----------.----. EEQ,!.~!8GBAM CAPACITY INCREASING PROJECT INFORMATION - ONLY REQUIRED FOR CAPACITY INCREASING PROJECTS PROGRAMMING INFORMATION U'1 I ~ST JQTALER-OJ_ECT r;O_"-T MONtH yEAR L _m__g~3?,z..oQi FB9J"-'<.LCOMPLETIQN DATE 1i:J~<:;_J~f1~O_~~._!!fW FISCAL V.EAR ,UWH_VEE.lpRQGBAM.ME;D HE.YEliUE_SJJ.U.BCE) IFY 2009 ~ loemo-H19hPriorityProjects I FY 2009 it:;"ifl TransNel - Local Streets and Roads I PY 2009 lli!lJ jTransNet -local Streets Improvements ~ Ei'1Y / J:i'1G.R li;oll S1,987.20011 llliU I S50,oooll 11:1111 $490,00011 Demo - High Priorily Projec.ls J $1,987,20011 TransNel- local S1r~els and Roads I $50,00011 TransNal - l~cal Streets Improvements I $490,00011 GRAND TOTAL I S2,527.20011 DOES THIS PROJECT ACCOMMODATE BIKE/PEDESTRIANS? !YES !)gj Cl .OPS/MAINT r: RQVV CON TOTAL sol L-__:i2i i -il :987Z0Q; soil sol [--$'50:0001 soil SQ] C:~~~:QQQi soil SOII-$1:,:9~7:?~Oi sol I solC==-__~~~OQ9J $011 soil S_4'!,O:oool soil sol L-.~~,53?:.?E2: CHANGE REASON HISTORICAL COMMt=r>.JTS GtiIlliQl"-B-,,!\SON Carry over from 06-00. Revise project description t-ji\RRATIVE DEgRIPTION. GUIDANCE Change in project title and description per Congressional authorization. .Also note that $50,000 in Transnet funds were appropriated for PYOS, and an additional $490,000 will be appropriated for FY09. !i~BRATI~EJ&!J.LQJIIP.I~} http:// proj ec ttra !(,Sandag. org/proj ect_ info .asp ?pro j ecl_ id=CHV3 0 & versi on=2 OWl 1'~{)08 ProjectTrak - Project View !Jag\.' .1 \)1' J Changed Project Title: - from "H Street and 1-5 Interchange Improve~ents" to "1-5 Multi-Modal Corridor Improvement Studyll Change Project Description: - from "At H Street and I-5 interchange - preliminary engineering, environmental analysis, and project design for future widenlng and improvement (DEMO 10: CA677 HPP No: 3482)" to Ilconduct a study to examine multi-modal improvements to the 1-5 corridor between the Main Street Interchange and State Route 54" Changed System: - from I'State'! to "Local" Changed Project Completion Date: - from "DEe 2010" to "DEe 2012" (J1 I ~ ~ Decrease Funding TransNet - Local Streets Improvements: - Decrease funds in FY 2009 in ENG from $540,000 to $490,000 TransNet - Local Streets and Roads: ~ Add funds in FY 2009 in ENG for $50,000 Demo - High Priority Projects: - Decrease funds in FY 2009 in ENG from $2,160,000 to $1,987,200. Total project cost decreased from $2,700,000 to $2,527,200 --~..--..~'-'-_._---,.__._._..~..,.-_._-_._._~._._~---._"-~---_..._----~--,---------_._--_._.~ O.llls EMAfL PROJECnRAI<HE~P@ECOINl Ef~/'.(~ f i\!i';';;,.IM htlp://projecttrak.sandag.org/projecUnfo.asp?projecUd=CHV30&version=2 IIl)'11 C008 CSANl!lJ~ 401 B Street Suite 800 San Diego, C4 92101-4231 (619) 699-1900 Fax (619) 699-1905 W\iV\I\I.sandag.org MEMBER AGENOES Ciriesef Car/sbad (hula Vista Coronado DelMar EICajon Encinitas Escondida Imperial Beach La Mesa Lemon Grove Natiana/City Oceanside Poway San Diego San Marcos Santee Solana Beach Vista and County of San Diego ADVISORY MEMBERS Imperial County Cafifornia Dff!panment of Transportation Metropolitan Transit Spem . North County TransitOistrict United States Department of Defense San Diego Unified Porr D;stnCt San Diego County Water Authority Southern California Tribal Chairmen's Association Mexico ATTACH tvlE I\JT 2 October 23, 2008 File Number 3007000 Mr. Rick A. Hopkins Director of Engineering City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910-2631 Dear Mr. Hopkins: SUBJECT: Co-sponsorship of Project to "Conduct a Study to Examine Multi- modal Improvements to the 1-5 Corridor Between the Main Street Interchange and State Route 54" Please accept this letter as SANDAG's commitment to serve as a co-sponsor with the City of Chula Vista (City) to conduct a multi-modal transportation study (Study) along Interstate 's between Main Street and State Route 54. As outlined in a Memorandum of Understanding between the City and SANDAG, both agencies have agreed to utilize the contracts SANDAG has with on-call engineering consultants for a portion of the Study effort. The SANDAG on-call consultant list was developed in conformance with Chapter 10 of the "Local Assistance Procedures Manual," LPP 06-02. We look forward to working with the City and Caltrans on this important Study. Please feel free to contact Rachel Kennedy, Senior Transportation Planner, at (619) 699-1929 with any questions. Sincerely, ~~ f/ BOB LEITER Director, Land Use and Transportation Planning Department RKE/dsn cc: Elisa Arias, Principal Planner, SANDAG Rachel Kennedy, Senior Transportation Planner, SANDAG Frank Rivera, Principal Civil Engineer, City of (hula Vista Dave Kaplan, Transportation Engineer, City of Chula Vista Lou Melendez, Project Manager, Caltrans 5-12 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 CO~CIL_7 f\\ i / ;- / . aV B rt C. Miesfeld Interim City Attorney Dated: 10/7.,0/Of) 1 ' Memorandum of Understanding Between San Diego Association of Governments And the City of Chula Vista Regarding 1-5 South Multimodal Corridor Study Sandag Contract No. 500 5-13 ATrACHMENT 3 MEMORANDUM OF UNDERSTANDING BETWEEN SAN DIEGO ASSOCIATION OF GOVERNMENTS AND THE CITY OF CHULA VISTA REGARDING 1-5 SOUTH MUL TIMODAL CORRIDOR STUDY SANDAG CONTRACT NO. 500 This Memorandum of Understanding ("MOU") is made and entered into effective as of this 24th day of October 2008, by and between the San Diego Association of Governments ("SANDAG") and the City of Chula Vista ("Chula Vista") for the purpose of working cooperatively on an Interstate 5 (1-5) South Multimodal Corridor Study. Individually, SANDAG and Chula Vista may be referred to as "Party" and collectively as "Parties." RECITALS The following recitals are a substantive part of this Agreement: WHEREAS, in 2005, Chula Vista requested $2,160,000 in federal discretionary funding from the 2005 Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU), surface. transportation law for "Project Design and Environmental Assessment of Widening and Improving the Interchange at H Street and 1-5, Chula Vista;" and. WHEREAS, in 2005, Chula Vista was awarded federal discretionary funding for the project (DEMO I.D. # CA677 & HPP No. 3482) in the amount requested; however the final appropriation was subsequently reduced to $1,987,200 based on the President's acr05s.the.board reduction' of about 8 percent; and WHEREAS, the grant of discretionary funding requires Chula Vista to provide local matching funds; and . WHEREAS, Chula Vista will provide local matching funds in the amount of $540,000 from TransNet local funds; and WHEREAS, in 2005, Chula Vista requested that the project description be revised to "Conduct a study to examine multimodal improvements to the [.5 corridor between the Main Street Interchange and State Route 54" ("Project"); and WHEREAS, bill H.R.1195 was introduced on February 27, 2007, to amend SAFETEA-LU to make technical corrections, and for other purposes, including revising the project description to that requested in 2006; and WHEREAS, on June 3, 2008, the bill known as H,R.1195 was presented to President Bush and signed into law on June 5, 2008, which included the H Street and 1.5, Chula Vista project technical correction in Section 105 of the bill as follows: "(145) in item number 3482 by striking the project description and inserted. Conduct a study to examine multimodal improvements to the 1-5 corridor between the Main Street Interchange and State Route 54." which is hereafter referred to as the "Project;." and 22 5-14 WHEREAS, the Project is of regional importance to Caltrans, Chula Vista, SANDAG. and the public as it is expected to reduce delays attributed to congestion on several modes of transportation and will improve mobility, goods movement and safety and is therefore included in the 2008 Regional Transportation Improvement Plan (RTIP); and WHEREAS. due to the complexities and inter-relationship to the modes of transportation along the study corridor in the project study area, it is in the best interests of the region that Caltrans. Chula Vista. and SANDAG work collectively on the Project; and WHEREAS. SANDAG will be the lead agency and administer the Project in cooperation with Chula Vista and Caltrans; and WHEREAS. SANDAG shall utiliz.e its on-call engineering consulting services to complete the Project as described in this MOU; and WHEREAS. funding for the Project from the federal discretionary funds will be paid to Caltrans via a Federal Fund Transfer Agreement. and Chula Vista and Caltrans intend to enter into an agreement to authorize reimbursement to SANDAG for all Project costs from funds provided by the Fund Transfer Agreement; and . WHEREAS. the Parties wish to memorialize their agreement in this MOU to carry out the purposes set forth above: AGREEMENT NOW THEREFORE, in consideration of the mutual promises set forth herein, the Parties agree as follows: 1. The budget for the Project shall not exceed 51.300,000 with the funds to be expended as follows: a. An amount not to exceed $1.000,000 for Consultant services from funds authorized in the Fund Transfer Agreement. b. An amount not to exceed $100,000 as Consultant contract contingency from funds authorized in the Fund Transfer Agreement. c. An amount not to exceed $200,000 for Chula Vista staff expenses from the local matching funds. 2. SANDAG shall receive an amount not to exceed $1,100,000 as reimbursement for Project costs. All expenses incurred by SANDAG for Project. including consultant costs. claims, litigation or other liability, shall be reimbursed by Chula Vista. 3. SANDAG shall use one or more of its existing on-call engineering consultants to perform work on the Project. Chula Vista shall pay the Consultant expenses in the amount identified in section 1 (a) and (b) and in the manner described in section 4. 4. SANDAG shall invoice Chula Vista no more than once per month. Chula Vista shall authorize Caltrans to make payment to SANOAG within 15 days of receipt of an invoice submitted by 23 5'-15 SANDAG for Project costs. Chula Vista shall enter into a separate agreement with Caltrans authorizing payment to SANDAG for Project costs from the Federal Fund Transfer Agreement based on an invoice approval process that calls for reimbursement to SANDAG within 30 days of SANDAG's submission of an invoice to Chula Vista. SANDAG shali have no obligation to perform under this MOU until after the agreement between Chula Vista and Caltrans is executed. SANDAG may terminate work on the Project if it is not reimbursed by Caltrans or Chula Vista within 30 days of submitting an invoice. 5. The Parties hereby agree upon the allocation of tasks as outlined in the attached Exhibit A. 6. During the term of this MOU the Parties shall be responsible for the storage and maintenance of their respective electronic data c,?lIected for use on the Project. The Parties shall provide a secure site to allow access to this data to selected staff who shall be designated by the respective Party. All work products resulting from this MOU and Consultant deliverables shall be the joint 'property of Chula Vista, SANDAG, and Caltrans. 7. Neither the City of Chula Vista nor any officer thereof is responsible for any damage or liability occurring by reason of anything done or omitted to be done by SANDAG under or in connection with any work, authority or jurisdiction delegated to SANOAG under this MOU. It is understood and agreed that, pursuant to Government Code Section 895.4, SANDAG shall fuliy defend, indemnify and save harmless the City of Chula Vista, ali officers and employees from at! claims, suits or actions of every name, kind and description brought for or on account of injury (as defined in Government Code Section 810.8) occurring by reason of anything done or omitted to be done by SANDAG under or in connection with any work, authority or jurisdiction delegated to SANDAG under this MOU. 8. Neither the SANDAG nor any officer thereof is responsible for any damage or liability occurring by reason of anything done or omitted to be done by the City of Chula Vista under or in connection with any work, authority, or jurisdiction delegated to SANDAG under this MOU. It is understood and agreed that, pursuant to Government Code Section 895.4, SANDAG shall fully defend, indemnify and save harmless the SANDAG, all officers and employees from all claims, suits or actions of every name, kind and description brought for or on account of injury (as defined in Government Code Section 810.8) occurring by reason of anything done or omitted to be done by the City of Chula Vista under or in connection with any work, authority'or jurisdiction delegated to the City of Chula Vista under this MOU. 9. That all obligations of SANDAG under the terms of this MOU are subject to the appropriation of the required resources by SANDAG and the approval of the SANDAG Board of Directors. 10. Any notice required or permitted under this MOU may be personally served on the other Party, by the Party giving notice, or may be served by certified mail, return receipt requested. to the following addresses: For SANDAG For the City of Chula Vista Engineering Department 276 Fourth Avenue Chula Vista, CA 91910 Ann: Frank Rivera 401 8 Street, Suite 800 San Diego, CA 92101 Attn: Rachel Kennedy 24 5-16 11. That unless it is amended by the Parties in writing. this MOU shall terminate on June 30. 2011. or on such earlier or later date as the Parties may agree to in writing. 12. The indemnification provisions of this MOU shall survive termination of the MOU. 13. This MOU shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this MOU, the action shall be brought in a state or federal court situated in the County of San Diego. State of California. 14. All terms, conditions, and provisions hereof shall inure to and shall bind each of the Parties hereto. and each of their respective heirs. executors, administrators. successors, and assigns. 15. For purposes of this MOU. the relationship of the Parties is that of independent entities and not as agents of each other or as joint venturers or partners. The Parties shall maintain sole and exclusive control over their personnel, agents, consultants, and operations. 16. No alteration or variation of the terms of this MOU 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. 17. Nothing in the provisions of this MOU is intended to create duties or obligations to or rights in third Parties to this MOU or affect the legal liability of the Parties to this MOU to third parties. 18. This MOU may be executed in any number of identical counterparts. each of which shall be deemed to be an original. and all of which together shall be deemed to be one and the same instrument when each Party has signed one such counterpart. 19. This Agreement shall be deemed executed on the date on which the last Party signs this MOU. IN WITNESS WHEREOF. the Parties hereto have executed this MOU effective on the day and year first above written. SAN DIEGO ASSOCIATION OF GOVERNMENTS CITY OF CHULA VISTA GARY L. GALLEGOS Executive Director RICHARD A. HOPKINS Director of Engineering/City Engineer APPROVED AS TO FORM: APPROVED AS TO FORM: Office of General Counsel Bart Miesfeld, City Attorney Attachment: Exhibit A . Interstate 5 South Multimodal Corridor Study Allocation of Tasks 25 5-17 EXHIBIT A INTERSTATE 5 SOUTH MUL TIMODAL CORRIDOR STUDY ALLOCATION OF TASKS Description of Tasks Del Ivera b les/Ou tcomes Task 1 - Definition of the Study Area and Study Area Map, Corridor Aerial Photographs, Preparation of Problem Statement Purpose and Need/Mission Statement. and Issue Statement Task 2 - Definition of Alternatives Definition of Alternatives, Travel Demand Forecasts, and Preliminary Cost Estimates Task 3 - Initial Screening of Alternatives Alternatives Evaluation, Public Outreach Materials and Public Outreach Activities Task 4 - Technical studies and analysis of Traffic Studies, Environmental Constraints alternatives Analysis, and Engineering Feasibility Reports Task 5a - Project Study ReportJProject Draft and Final PSR (highway) Development Support (PSRJPDS) for Near-Term Improvements Task 5b - PSRJPDS - Consultant Engineering Draft and Final PSR (PDS) rail/transit Support (rail\transit) for Near.Term Improvements Task 6 - Selection of a preferred strategy for Preferred Transportation Improvement Strategy, transportation improvements in the study area Cost Estimates, Phasing and Financing Plan, PubHc Outreach materials and activities. Task 7 - Document Findings and Final report (Project Study Report-Project Recommendations Development Support). which is a compilation of deliverables with introduction and project-wide conclusions Task 8 . Presentations Stakeholder Outreach 26 5-18 RESOLUTION NO. 2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A MEMORANDUM OF UNDERSTANDING (MOU) WITH THE SAN DIEGO ASSOCIATION OF GOVERNMENTS (SANDAG) FOR THE PURPOSE OF CONDUCTING A STUDY TO EXAMINE MUL TI- MODAL IMPROVEMENTS TO THE INTERSTATE 5 (1-5) CORRIDOR. WHEREAS, City also desires to co-sponsor a joint multi-modal transportation study along 1-5, (the Project) with SANDAG; and WHEREAS, Caltrans has also identified a project team that will assist on this effort; and WHEREAS, SANDAG approved their Fiscal Year 2008/2009 work program budget for this project on October 24, 2008; and WHEREAS, the project lies entirely within the jurisdiction of the City of Chula Vista but assistance on a regional level is required of Caltrans and SANDAG; and WHEREAS, this study will analyze interchange spacing and freeway operations, Light Rail Transit (LRT) and freight rail operations running parallel to 1-5, and transit/pedestrian/bicycle circulation adjacent to and across the 1-5 corridor; and WHEREAS, the purpose of the MOU with SANDAG is to define funding and roles between City and SANDAG; and WHEREAS, in order for the City to utilize the Federal funds for this study, the consultant selection process must be approved by Caltrans; and WHEREAS, SANDAG has confirmed that all procedures for selecting the consultant have followed Caltrans Chapter 10 of the "Local Assistance Procedures Manual", LPP 06-02; and' WHEREAS, on September 17, 2008, Caltrans' District Local Assistance Engineering (DLAE) staff determined that a SAFETEA-LU (Safe, Accountable Flexible, Efficient, Transportation Equity Act: A Legacy for Users) fund co-sponsor change was needed by the City of Chula Vista in order to utilize the SANDAG On-Call consultant list; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby approve a MOU with the SANDAG for the purpose of conducting a study to examine multi-modal improvements to the 1-5 Corridor. Richard A. Hopkins Director of Engineering Presented by 5-19 RESOLUTION NO. 2008~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE TRANSFER OF EXISTING FUNDS FROM CAPITAL IMPROVEMENT PROJECT (CIP) STM362 "1~51l-I . . STREET INTERCHANGE IMPROVEMENTS TO CIP STM361 "1~5 MULTI~MODAL CORRlDOR IMPROVEMENT STUDY", APPROPRIATING $1,987,200 IN SAFETEA~LU (SAFE, ACCOUNTABLE FLEXIBLE, EFFICIENT, TRANSPORTATION EQUITY ACT: A LEGACY FOR USERS) FUNDS AND AMENDING THE FISCAL YEAR 2008/2009 CIP PROGRAM WHEREAS, the City desires to co~sponsor ajoint multi~moda1 transportation study along 1~5 with SANDAG; and WHEREAS, the project lies entirely within the jurisdiction of the City of Chula Vista but assistance on a regional level is required of Caltrans and SANDAG; and WHEREAS, the highway improvements presented in the concept alternatives will be carried forward by Caltrans in the preparation of a Project Study Report/Project Development Support (PSR/PDS) to serve as the Project Initiation Document (PID) for highway and corridor improvements; and WHEREAS, Caltrans, City, and/or SANDAG witI then proceed with the environmental document and design phase for the highest priority project(s); and WHEREAS, the City of Chula Vista has received a Federal grant in the amount of up to $1,987,200 in SAFETEA~LU funds for this study titled, "Conduct a study to examine multi~ modal improvements to the [~5 corridor between the Main Street interchange and State Route 54"; and WHEREAS, this Federal reimbursement fund requires a minimum 01'20% local matching funds and the City has identified $540,000 in TransNet funds for the match; and WHEREAS, the study limits were increased to not only include the H Street interchange but six others; SR~54, E Street, J Street, L Street, Palomar Street & Main Street in Chula Vista; and WHEREAS, Grant funds are available for expenditure on a reimbursement basis by the Applicant (City of Chula Vista) after a fully executed MOU with SANDAG is secured; and WHEREAS, once Federal authorization to proceed is given, City staff will begin to seek reimbursement on expenses through Caltrans via the Federal fi.md reimbursement procedures; and 5-20 WHEREAS, Caltrans and SA,'1DAG staff costs are not part of the City CIP budget since each Agency has a separate budget for their staff. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista hereby authorizes the transfer of existing funds from Capital Improvement Project (CIP) STM 362 "I-5/H Street Interchange Improvements to CIP STM361 "1-5 Multi-Modal Corridor Improvement Study", appropriates $1,987,200 in SAFETEA-LU (Safe, Accountable Flexible, Efficient, Transportation Equity Act: A Legacy For Users) Funds and amends the Fiscal Year 2008/2009 CIP Program. Presented by Richard A. Hopkins Director of Engineering . 5-21 CITY COUNCIL AGENDA STATEMENT ::?}If? CITY OF ~~CHULA VISTA ITEM TITLE: SUBMITTED BY: REVIEWED BY: 11/4/08, Item~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE GRANT OF AN ENCROACHMENT PERt\1IT WITHIN THE CITY RIGHT-OF- WAY OF MACE STREET TO THE UNITED STATES GEOLOGICAL SURVEY (USGS) FOR THE INSTALLATION, OPERATION, AND MAINTENANCE OF A MULTI-DEPTH GROUND W ATER MONITORIN~~LL DIRECTOROFENGINEERIN~ INTERIM CITY MANAGER ~ 4/STHS VOTE: YES 0 NO [g] SUMMARY No comprehensive study of groundwater resources currently exists for the coastal San Diego area, including Chula Vista. The present USGS project proposes to complete such a study using the installation of multi-depth monitoring wells at select specific locations in four coastal river basins; San Dieguito, San Diego River, Sweetwater River, and the Otay River. The USGS has requested that the City grant an easement to allow the installation of one of these monitoring wells adjacent to the Otay River. 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 6 categorical exemption pursuant to Section 15301 [Information Collection] of the State CEQA Guidelines. In addition, the Environmental Review Coordinator has reviewed the proposed project for compliance with the National Environmental Policy Act (NEPA) and has determined that the project qualifies for a Categorical Exclusion pursuant to Paragraph 9.5, Sections A, F & K [Exploratory/observation groundwater well drilling] of the National Environmental Quality Policy Act of 1969 as defined by the United States Department of the Interior. Thus, no further environmental review is necessary. RECOMMENDATION Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not applicable. 6-1 11/4/08, Item~ Page 2 of 2 DISCUSSION No comprehensive study of groundwater resources currently exists for the coastal San Diego area, including Chula Vista. The present United States Geological Survey (USGS) project proposes to complete such a study using the installation of multi-depth monitoring wells at select specific locations in four coastal river basins; San Dieguito, San Diego River, Sweetwater River, and the Otay River. The USGS has requested that the City grant an easement to allow the installation of one of these monitoring wells adjacent to the Otay River. The site selected is located on a portion of City owned land that is going to be the Mace Street staging area for the Otay Valley Regional Park (OVRP). The USGS has constructed, installed and is presently monitoring data from eight wells in southwestern San Diego County. The piezometers; small diameter PVC conduits installed within the primary well borehole at various depths, are routinely, and in some cases continuously, monitored for ground water level and water quality. The collected data helps answer questions vital to water resource planning, such as availability and distribution of high quality groundwater, advance warning of intrusion of seawater into water used for public supply, and of any potential land subsidence due to withdrawing resources from the subsurface. The USGS wells are designed as permanent installations that will provide data to assist with water resource planning and management for decades. Real-time monitoring data for all USGS wells is made available via satellite link and web-based user interface. Staff has reviewed the request and determined that the proposed monitoring well is consistent with the uses permissible for this land. Additionally, the proposed encroachment location will not interfere with the construction operation or maintenance of the future Mace Street or the Mace street staging area of the OVRP. While the City is under no obligation to grant this encroachment to the USGS without compensation, staff has determined that, due to the location and restricted alternative uses for this area, the value of the encroachment is nominal. Further, the benefits of ongoing monitoring of underground water supply and quality outweigh any impacts caused by the facilities. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the property, which is the subject of this action. FISCAL IMPACT There is no net negative impact to the General Fund. The USGS will pay $2,500 for staff time expended on this project. ATTACHMENTS l. Encroachment permit Prepared by: Rick Ryals, Real Property Manager, Engineering Department 6-2 Recording requested by and please return to: ATTACHMENT / City Clerk City of Chula Vista P.O. Box 1087 Chula Vista, CA 91912 [X] This document bene firs permittee. Recording fee required. ' (This space for Recorder's use, only) AITeets Assessor's Parcel No(s) None (RJW) C.V. File No. RP-OOI AUTHORIZATION FOR ENCROACHMENT IN CITY RIGHT OF WAY Permit No. The United States Geological Survey (USGS) ("Perminee"), whosemailingaddressis4165SpruanceRoad.Suite 200 San Diego, CA 92101-0812, has requested permission from the City of Chula Vista ("City") to encroach on the City's right-of-way, currently designated as Mace Street, for the purposes of installing, operating and maintaining a multi-depth ground water monitoring well. Pursuant to Chapter 12.28 of the Chula Vista Municipal Code, the City grants permission to Permittee for the installation, operation and maintenance ofa multi-depth ground water monitoring well (the "Encroaclunent") within that portion of Mace Street, as described in a legal description designated as Exhibit "A" and as more particularly shown on a plat designated as Exhibit "B", both attached to and incorporated into this Permit (the "Encroachment Area"). Permittee agrees to and shall comply with the following terms and conditions: 1. Permitee is responsible for obtaining any permits necessary to install the multi-depth ground water monitoring welL Permittee shall notify the Public Works Deparlment Storm Water Section at (619) 397-6111 at least thirty-six (36) hours prior to beginning work. 2. The Encroachment shall in no way interfere with any existing utility, including the maintenance or operation of existing water meters, CATV and telephone pedestals, public storm drains, sewer lines, irrigation water lines or irrigation electrical lines owned and maintained by the City. Any costs arising from changes of or to any facihty due to the Encroachment shall be the sole responsibility of Perminee. 3. Permittee is solely responsible for the maintenance, removal or relocation of the Encroachment at no expense to City. 4. Permittee shall call Underground Service Alert (One call mark-out service) at 1-800-422-4133 a minimum of two working days prior to any excavation being done in the Encroachment Area, including postholes or footing excavations. rvlark-out of existing underground facilities shall be made prior to making any excavations. 5. Permittee. shall install and maintain the Encroachment in a safe and sanitary manner. 6. Permittee shall not allow the Encroachment to block the existing course of surface drainage to the extent that it may endanger the public or the surrounding properties or cause ponding of water. 7. Pemrittee shall ensure that the Encroachment conforms to all standards and specifications as stated in the Chula Vista Municipal Code. Page 1 6-3 8. Permittee shall notify the City Engineer and the Public Works Department Stonn Water Section at (619) 397- 6111 at least 24 hours (one working day) before the Encroachment is to be removed to ensure the work is completed according to standard practices acceptable to the City. Pennittee shall obtain any required permits from the City prior to beginning removal work. 9. Permittee shall ensure that the Encroachment conforms to the standards of the City ofChula Vista, including but not limited to, the following: a. ~ennittee shall restore existing improvements and/or landscaping damaged or affected by the Encroachment; b. Permittee shall replace or relocate any landscape irrigation structures alfected by the Encroachment; c. Permittee shall not cut and patch partial sidewalk panels. 10. Permittee shall call the Public Works Construction Inspection Section at (619) 397-6128 at least 24 hours (one working day) prior to doing any work in the Encroachment Area. This Permit is revocable upon one hundred twenty (120) days written notice to the Permittee by the City. Upon such notice, Permittee shall remove or relocate the Encroachment at Permittee's sole cost. Pennittee acknowledges that this Permit may create a possessory interest in the Encroachment Area, in favor of the Pennittee. If such a possessory interest is created, Pennittee shall be responsible for any property taxes. Permittee shall defend, indemnify, protect, hold harmless and release 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 in anyway related to the Encroachment or the conduct of the Pennittee, or its agents or employees, subcontractors, or others (including third parties) in connection with the execution of the work covered by this Permit. Pennittee's obligation to indemnify the City shall not apply only for those claims arising from the sole negligence or sole willful conduct of the City, its officers, or employees. Permittee's indemnification shall include any and all costs, expenses, attorneys' fees and liability incurred by the City, its officers, agents, or employees in defending against such claims, whether the same proceed to judgment or not. Further, Permittee at its own expense shall, upon written request by the City, defend any such suit or action brought against the City, its officers, agents, or employees. Pennittee's indemnification of City shall not be limited by any prior or subsequent declaration by the Permittee. All tenns and conditions of this Permit run with the land and shall apply to Permittee's heirs, assigns, successors or transferees. (End of page. Next page is signature page.) Page 2 6-4 SIGNATURE PAGE FOR ENCROACHMENT PEMIT No. CITY OF CHULA VISTA: Date Cheryl Cox. Mayor (City Clerk to attach acknowledgment) UNITED STATES GEOLOGICAL SURVEY Date (Notary to atrach acknowledgment for each signature.) (Corporate Authority required for each Signatory, If applicable) Page 3 6-5 ]-15511c EXHIBIT "A" LEGAL DESCRIPTION Being a portion of Block 7 of "Eastern Addition to Otay", in the City of Chula Vista, County of San Diego, State of California, according to Map thereof No. 523 filed in the Office of the County Recorder of San Diego County, April 6, 1888 said portion being more particularly described as follows: Beginning at a point in the centerline of "Mace Street" which bears North 00028'47" East a distance of 1090.00 feet to the centerline of "Main Street", said point being the Northeast corner of said Block 7; thence North 89031'13" West 36.00 feet to the West Right-of-Way of "Mace Street" as dedicated to the City of Chula Vista by the Easement for Street Purposes recorded in the Office of the County Recorder of San Diego County on December 23, 1991 as Document No. 1991-0664668; thence along said Right-of-Way South 00028'48" West 96.81 feet to the beginning of a tangent 90.00 foot radius curve concave Westerly; thence Southerly along the arc of said curve through a central angle of 21027'39" a distance of 33.71 feet; thence South 21056'26" West 42.72 feet to the TRUE POINT OF BEGINNING; thence leaving said Right-of-Way South 68003'34" East 9.00 feet; thence South 21056'26" West 6.00 feet; thence North 68003'34" West 9.00 feet to said Right-of-Way; thence North 21056'26" East 6.00 feet to the the TRUE POINT OF BEGINNING. Containing 54.00 square feet, more or less. ~'?;;2y ~/ Patrick A. McMichael, L.S. 6187 /,....6 '08 Date lbjlSSllc.002 6-6 EXHIBIT .. B" MAIN STREET !iJa S/=o g;]g bO ",,- ~[L,@~~ N89.31'13'W 36.00' (TIE) ~ _..._.._u ...--1....-..............--_. PO B NORTHEAST CORNER BLOCK 7. MAP 523 ~ ~[L,@~~ ~ ~~ ~()) V) (j ~~~u~lRilM ~[Q)[Q)OuO@lM &, ..-,'"' " est:::: t!g~ l\J' . .Q;:-J <l if@ @u~W ~~~ ~~.~ 1,008 4'QS6' <6'<:- 6.co: 0; g) I--~ ~C\JCQ Q;:~~ \;);:;'" ~~~ u- S<lJJu 1JJQ;:8 GJ [3.!Q !Qgs 1JJQ. g;; Q. f2ZJ LEGEND INDICA TES PORTION OF BLOCK 7 OF MAP 523 DESCRIBED IN EXHIBIT '~" (CONTAINS 54.00 SQUARE FEETJ IIU.M. . 5620 FRIARS ROAD ).15511c · SAN DIEGO, CA 92110 .. 619.291.0707 ENGINEERING em.lrANi' (FAX)619.291A 165 I- W W c:: I- en W U <:( 2 N 10 o 10 __1 5 GRAPHIC SCALE 1"= 10' ~z../4~-?'4/ /":!.-6,,! . PATRICK A. MCMICHAEL DA TE LS 6187 l.\I \1551 to\olto_15..mooe\t 5511 o-Oxtl..lTJll2....oemtOt. dgn. " \OI"V -OO'I'P1 \R I okStald<rdll\8$rTt 1 oy ...200G\wor1<.1lpooo\;lro J &etu\C;x-pstdo...2005-S0\ I p I ot\COrpStd.-2005_SD. pen 06-QCT-1.000 10.1S 6-7 RESOLUTION 2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE GRANT OF AN ENCROACHMENT PERt\1IT WITHIN THE CITY RlGHT- OF-WAY OF MACE STREET TO THE UNITED STATES GEOLOGICAL SURVEY (USGS) FOR THE INST ALLA TION, OPERATION, AND MAINTENANCE OF A MULTI-DEPTH GROUND WATER MONITORlNG WELL WHEREAS, the City of Chula Vista is the fee owner of that certain dedicated right-of- way currently known as Mace Street, situated in the City Of Chula Vista, County of San Diego, State of California; and WHEREAS, no comprehensive study of groundwater resources currently exists for the coastal San Diego area, including Chula Vista; and WHEREAS, a current United States Geological Survey (USGS) project proposes to complete such a study using the installation of multi-depth monitoring wells at select specific locations in four coastal river basins; San Dieguito, San Diego River, Sweetwater River, and the Otay River; and WHEREAS, the USGS has requested that the City grant an Encroachment Permit to allow for the installation of one of these monitoring wells adjacent to the Otay River; and WHEREAS, the proposed multi-depth monitoring well is consistent with the permissible uses for this right-of-way. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it approves the grant of an Encroachment Permit within the City right-of-way of Mace Street to the United States Geological Survey (USGS) for the installation, operation, and maintenance of a multi-depth ground water monitoring well. Presented by Approved as to form by Richard A. Hopkins Director of Engineering '~~-/L_/~~ . Bart Miesfeld U ~ Interim City Attorney H:\ENGfNEER\RESOS\Resos2008\11-04-08\USGS encroachment pwnitREV revised by ec.doc 6-8 CITY COUNCIL AGENDA STATEMENT ,- ..-"".. '...- ~ \ ft.. CllY OF ~CHULA VISTA NOVEMBER 4, 2008, Item~ ITEM TITLE: INVESTMENT REPORT FOR THE QUARTER ENDED SEPTEMBER 30, 2008 DIRECTOR OF FINANCE/TRE~RER-./J~ INTERIM CITY MANAGER <7-) DEPUTY CITY MANAGER .'f;// 4/STHS VOTE: YES D NO 0 SUBMITTED BY: REVIEWED BY: SUMMARY In accordance with Calilornia Government Code Section 53646 and Council Investment Policy adopted on February 12, 2008, the qualierly investment report for the period ended September 30, 2008, has been prepared and now presented for Council acceptance. ENVIRONMENT AL REVIEW The Environmental Review Coordinator has reviewed the proposed acl1 Vlty 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 environmental review is necessary. RECOMMENDATION That Council accept the report. BOARDS/COMMISSION RECOMMENDATION Not Applicable. DISCUSSION The Cash/Time Deposits ($5,688,927) Pooled Investment Portlolio ($183,139,803) and Cash/Investments with Fiscal Agents ($157,755,440) continue to be invested in accordance with the Government Code and the Council Investment Policy as adopted on February 12,2008. During the quarter, three investments were purchased and four investments totaling $13,000,000 matured or were called. There is no other activity to report on other than routine investments in money market mutual funds by the City's fiscal agents. 7-1 NOVEMBER 4,2008, Item l Page 2 0 f 3 The Federal Open Market Committee (FOMC) held the key Fed Funds rate at 2.00% in light of negative job growth and the continued downturn in the housing market and credit crunch. The weakening economy is also negatively affecting retail sales. Two-year Treasuries yielding 2.62% at the beginning of the quarter dropped significantly to 1.98% at the end of the quarter due to a "flight to quality" caused by global market volatility. In September, the federal government placed two of the largest government sponsored mortgage financing companies, Federal Home Loan Mortgage Corporation (Freddie Mac) and Federal National Mortgage Association (FNMA) under federal conservatorship. These agencies are now being managed by their federal regulator, and the Treasury has promised to provide financial support as needed. September also marked the end for several other financial giants. Lehman Brothers, the fourth largest Wall Street investment bank, declared bankruptcy, 'Menill Lynch, the third largest Wall Street firm, agreed to be purchased by Bank of America, and AIG, the largest insurance company in the U.S., needed an $85 billion emergency loan from the federal government to avoid bankruptcy and more crisis in the financial world. Banks were also affected as Washington Mutual was seized by the Federal Deposit Insurance Corporation (FDIC), and its assets were sold to lP Morgan in what is officially the nation's largest bank failure. Wachovia, the nation's fomih largest bank, was also struggling financially and is cunently being sold to Wells Fargo. In order to avoid a systemic collapse of the financial system, the Treasury and the Federal Reserve are working together to manage the crisis. . The Federal Reserve has provided huge levels of liquidity in the market by nationalizing several large firms and facilitating the takeovers of others. The Treasury has tentatively structured a $700 billion plan that involves the government's purchase of impaired assets from various banks and investment firms in an effort to restore liquidity to the banks, repair their credit standings and stimulate lending to businesses and consumers. The effects of the bailout plan will take months to be realized, and forecasts for the remainder of the year call for slower economic growth and low consumer confidence. As of September 30, 2008, the weighted average yield (average interest rate) on the Pooled Investment Portfolio was 3.794%, which is a .142% decrease trom the previous quarter's 3.936%. This decrease is primarily attributable to higher yielding investments maturing and being reinvested at the cunent lower interest rates. At the end of this quarter, the weighted average maturity of the portfolio decreased from 2.60 years to 2.43 years due to the purchase of shorter term investments now yielding higher rates than longer term investments, and still remains within the Council Policy of less than 3.0 years. Considering the projected lImmg of cash receipts and disbursements, including the proceeds from the Tax and Revenue Anticipation Note bonowirig and the structure ofthc Pooled Investment Portfolio, the City should be able to comfortably meet overall cash flow needs over the next six months. 7-2 NOVEMBER 4,2008, [teml Pag~ 3 of 3 DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations section I 8704.2(a)(l) is not applicable to this decision. FISCAL IMPACT There is no direct fiscal impact by this action ATTACHMENTS A. Investment Report for the Quarter Ended September 30, 2008 Prepared by: Nadine /vlandeJY, Treaswy lvlanager, Finance Department 7-3 CITY OF CHULA VISTA Summary of Cash /Investments as of September 30, 2008 Investment Type Par Value Market Value Book Value % Cash/Time Deposits Subtotal $5,688,927 $5,688,927 $5,688,927 1.64% Pooled Investment Federal Securities 124,700,000 121,567,410 124,668,446 3597% Local Agency Investment Fund 58,439,803 58,389,410 58,439,803 16.86% Corporate Bonds 0 0 0 0.00% Subtotal $183,139,803 $179,956,820 $183,108,249 52.84% Held by Bank Trustee/Fiduciary Funds U. S. Government 58,109,566 67,275,427 58,109,566 16.77% Investment Agreements 27,600,584 . 27,600,584 27,600,584 7.96% Mutual Funds 57,786,045 57,786,045 57,786,045 16.67% -.I Cash with Fiscal Agents 0 0 0 0.00% I Restricted Cash 14,259,245 14,259,245 14,259,245 4.11% ~ Subtotal $157,755,440 $166,921,301 $157,755,440 45.52% Totals $346,584,171 $352,567,049 $346,552,617 100.00% I certify that this report reflects the City of Chula Vista and related agencies pooled investments and is in conformity with the State of California Government Code on authorized investments and with the Investmer:lt Policy of the City of Chula Vista as stated in Resolution No. 2008-54 dated February 12, 2008. . JP\l!\'~ ~i' \^ CldctJ'L~-: I-I Maria ach~Joonan Director of Finance/Treasurer Note: Par value is the principal amount of the investment on maturity. All market values contained herein are received from sources we believe are reliable, however we do not guarantee their accuracy. Book value is the par value of the security plus or minus any premium or discount and accrued interest that was included in the purchase price. ~u?- ~~ ,.<~ , .,'C"._ .~f::/,.";- ',',0 :,,".. " .. , -, .. ~~~~ ~~~~ CITY OF CHULA VISTA Investments Managed Pool Accounts Feqeral Agency Coupon Securities Federal Agency Callables Investments Par Value 58,439,803.24 3,000,000.00 121,700,000.00 183,139,803.24 Chula Vista Investment Pool Portfolio Management Portfolio Summary September 30, 2008 Market Value 58,389,410.36 3,020,625.00 121,567,409.75 Book Value 58,439,80324 2,999,208.33 121;669,237.50 182,977,445.11 183,108,249.07 %of Portfolio 31.92 1.64 66.45 100.00% Term 1 1,093 1,529 1,035 Days to Maturity 1 996 1,309 888 City of Chula Vista 276 Fourth Ave Chula Vista CA 91910 (619)691-5250 3.794 YTM 2.774 4.268 4.273 Total Earnings Current Year Average Daily Balance September 30 Month Ending 583,619.14 184,994,015.74 E1ctive;;U~a Phillip A. Davis, Assistant Director of Finance Run Dale: 10/27/2008-11:10 Reporting period 09/01/2008-09/30/2008 3.84% Fiscal Year To Date 1,849,025.30 194,980,051.02 3.76% /t.>- 28 -1)3 Portfolio CHUL CC PM (PRF_PM1) SymRepI6.41.202tJ ReporlVer. 5.00 Chula Vista Investment Pool Portfolio Management Page 2 Portfolio Details - Investments September 30, 2008 Average Purchase Stated Days to YTM Maturity CUSIP Investment # Issuer Balance Date Par Value Market Value Book Value Rate Term Maturity Date Managed Pool Accounts SYS10197 10197 Local Agency Investment Fund 58,439,803.24 58,389,410.36 58,439,803.24 2.774 2.774 --- Subtotal and Average 57,716,469.91 58,439,803.24 58,389,410.36 58,439,803.24 2.774 -----_._~ Federal Agency Coupon Securities 31398ASL7 10489 Federal Nat'1 Mtg. Assoc. 06/26/2008 3,000,aoo.00 3,020,625.00 2,999,208.33 4.250 1,093 996 4.268 06/24/2011 --- Subtotal and Average 2,999,208.33 3,000,000.00 3,020,625.00 2,999,208.33 1,093 996 4.268 ------- Federal Agency Callables 3128X67H3 10490 Federal Home Loan Mortgage Co. 07/02/2008 3,000,000.00 2,967,450.00 2,990,625.00 3.250 616 525 3.440 03/10/2010 3128X7XU3 10486 Federal Home Loan Mortgage Co. 06/10/2008 3,000,000.00 3,002,706.00 3,000,000.00 3.500 730 617 3.500 06/10/2010 3136F9SA2 10485 Federal Nat'l MtD. Assoc 06/10/2008 3,000,000.00 :?,999,062.50 3,000,000.00 3.265 730 617 3.265 06/10/2010 3128X6CX2 10433 Federal Home Loan Mortgage Co. 06/15/2007 3,000,000,00 3,050,460,00 2,998,500.00 5.400 1,096 622 5.418 06/15/2010 31398ASH6 10488 Federal Nat'l Mlg. Assoc. 06/16/2008 4,000,000.00 4,016,250.00 3,98~,BOO.OO 3.550 730 623 3,749 06/16/2010 -sm98AQS4 10481 Federal Nat'1 Mlg. Assoc. 04/28/2008 4,000,000.00 4,003,750.00 4,000,000.00 3.500 1,095 939 3.500 04/28/2011 8\331YQ60 10482 Federal Farm Credit Bank OS/20/2008 4,000,000.00 3,987,500.00 4,000,000.00 3.600 1,095 961 3.600 OS/20/2011 3128X7TS3 10484 Federal Home Locm Mortgage Co. OS/20/2008 '3,000,000.00 2,999,670.00 2,994,900,00 3,600 1,095 961 3.660 OS/20/2011 3128XlTKO 10483 Federal Home Loan Mortgage Co, OS/27/2008 4,000,000.00 4,002,560.00 4,000,000,00 3.875 1,095 968 3.875 OS/27/2011 31331Y2T6 10491 Federal Farm Credit Bank 07/07/2008 4,000,000.00 4,013,750.00 4,000,000.00 4.100 1,095 1,009 4.100 07f07/2011 3133XRTNO 10492 Federal Home Loan Bank 08105/2008 3,000,000.00 3,006,562.50 3,000,000.00 4.150 1,095 1,038 4.150 08/05/2011 31331X7B2 10446 Federal Farm Credit Bank 10/17/2007 3,000,000.00 3,002,812,50 3,000,000.00 5.100 1,461 1,111 5.100 10/17/2011 3128X6RZ1 10455 Federal Home Loan Mortgage Co. 12/03/2007 3,000,000.00 3,008,906.25 3,000,000.00 4.700 1,460 1.15"1 4.700 12/02/2011 3133XNJ26 10458 Federal Home Loan Bank 12/19/2007 3,000,000.00 3,004,687.50 3,000,000.00 4.625 1,461 1,174 4.625 12/19/2011 3133XML90 10445 Federal Home Loan Bank 10/04/2007 3,000,000.00 3,000,000,00 3,000,000,00 5.300 1,826 1,463 5.300 10/03/2012 31331YEB2 10452 Federal Farm Credit Bank 11/16/2007 3,000,000.00 3,047,812.50 3,000,000.00 4.B40 1,827 1,507 4.840 11/16/2012 3133XMYPO 10451 Federal Horne Loan Bank 11/19/2007 2,000,000.00 2,006,875.00 2,000,000.00 5,050 1,827 1,510 5.050 11/Hl/2012 3128X6RN8 10453 Federal Home Loan Mortgage Co. 11/26/2007 3,000,000.00 3,004,440.00 3,000,000.00 5.000 1,827 1,517 5.000 11/26/2012 3128X6SD9 10456 Federal Home Loan Mortgage Co. 12105/2007 4,000,000.00 4,005,880.00 4,000,000.00 4.875 1,827 1,526 4.875 12/05/2012 3128X6VFO 10459 Federal Home Loan Mortgage Co. 12/17/2007 4,000,000.00 4,040,040.00 4,000,000.00 4.750 1,827 1,538 4.750 12/17/2012 3139SAKW1 10464 Federal Nat'l Mlg. Assoc 0110212008 4,000,000,00 4,022,500,00 4,000,000.00 4.750 1,827 1,554 4.750 01/02/2013 3128X6XV3 10466 Federal Home Loan Mortgage CO. 01/07/200B 3,000,000.00 3,001,170.00 3,000,000,00 4.750 1,827 1,559 4,750 01/07/2013 3128X6YJ9 10467 Federal Home Loan Mortgage Co: 01/09/2008 4,000,000.00 4,014,240.00 4,000,000.00 4.500 1,827 1,561 4.500 01/09/2013 3133XNUF4 10463 Federal Home Loan Bank 01/14/2008 4,000,000.00 4,017,500.00 4,000,000.00 4.700 1,827 1,566 4.700 01/14/2013 3133XP4T8 10468 Federal Home loan Bank 01/28/2008 4,000,000.00 3,988,750.00 4,000,000,00 4.200 1,827 1,580 4.200 01128/2013 3133XP3C6 10469 Federal Horne loan Bank 01/29/2008 4,000,000.00 3,976,250.00 4,000,000.00 4.000 1,827 1,581 4.000 01/29/2013 3133XP6L3 10472 Federal Home Loan Bank 01/29/2008 5,000,000.00 4,985,937,50 5,000,000.00 4.200 1,827 1,581 4.200 01/29/2013 3133XPCV4 10473 Federal Home Loan Bank 01/30/2008 5,000,000.00 4,928,125,00 5,000,000.00 4.150 1,827 1,582 4.150 01/30/2013 Portfolio CHUL CC Run Dale: 1012412006-12:10 PM (PRF _PM2) SymRepl 6,41.202b CUSIP Federal Agency CalJables Investment # Issuer Average Balance Chula Vista Investment Pool Portfolio Management Portfolio Details - Investments September 30, 2008 Purchase Dale Par Value Market Value Page 3 Stated Days to YTM Maturity Book Value Rate Term Maturity Date 3,000,000.00 4.125 1,827 1,587 4.125 02/04/2013 2,000,000.00 4.000 1,827 1,603 4.000 02/20/2013 3,000,000.00 4.375 1,827 1,611 4.363 02128/2013 3,000,000.09 4.000 1,826 1,644 4.000 04/0212013 2,701,012,50 4.250 1,820 1,G53 4.250 04/11/2013 3,000,000,00 3.750 1,826 1,651:1 3.750 04/16/2013 3,000,000.00 4.040 1,826 1,671 4.040 04/29/2013 2,998,500.00 4.050 1,826 . 1,673 4.061 05/01/2013 --- 121,669,237.50 1,529 1,309 4.273 183,108,249.07 1,035 886 3.794 -.I I -.I Run Dale: 10/24!2008.12:1O 10471 10474 10475 10476 10478 10477 10479 10480 Federal Home Loan Mortgage Co. Federal Home Loan Bank Federal Home Loan Mortgage Co. Federal Home Loan Bank Federal Home Loan Bank Federal Home loan Bank Federal Nat'l Mlg. Assoc. Federal Horne Loan Mortgage Co. Subtotal and Average 124,278,337,50 3128X6A63 3133XPKV5 3128X63W4 3133XOJX1 3133XOLJ8 FHlB3133XOJXl 3136F9LC5 3128X7lK8 Total and Average 184,994,015,74 02104/2008 02120/2008 02128/2008 04/0212008 04/17/2008 04/16/2008 04/29/2008 05/01/2008 3,000,000,00 2,000,000.00 3,000,000.00 3,000,000.00 2,700,000.00 3,000,000.00 3,000,000.00 3,000,000.00 121,700,000.00 183,139,803,24 2,987,610.00 1,983,125.00 3,000,885.00 2,925,000.00 2,688,187.50 2,914,687.50 2,982,187.50 2,980,080.00 121,567,409.75 182,977,445.11 Portfolio CHUL CC PM {PRF _PM2} SymRept 6.41 ,202b GUSIP Investment # Issuer Average Balance Chula Vista Investment Pool Portfolio Management Portfolio Details. Cash September 30, 2008 Purchase Date Par Value Market Value Stated Book Value Rate Page 4 Days 10 Term Maturity YTM -.l I ClO RUfl Date: 10/24/2008.12:10 Total Gash and Investmentss Average Balance 0.00 184,994,015.74 183,139,803,24 162,977,445.11 163,106,249.07 o 1,035 o 866 3.794 PortfoJ[o CHUL CC PM (PRF ]1012) SymRepl 641 ,202b CUSIP Investment # Issuer Chula Vista Investment Pool Portfolio Management Activity By Type September 1, 2008 through September 30, 2008 Stated Transaction Rate Date Purchases or Deposits Redemptions or Withdrawals Balance Page 5 SYS10197 10197 Managed Pool Accounts (Monthly Summary) Local Agency Investment Fund Subtotal 2.774 5,000,000.00 5,000,000.00 3,700,000.00 3,700,000.00 58,439,803.24 Federal Agency Coupon Securities Subtotal Federal Agency Callables 3133XGNF7 3136F9SUB 10403 10487 Fedoral Home Loan Bank Federal Nat'l Mtg. Assoc. Subtotal 5.330 4.000 09t08/200B 09t17/2008 0.00 0.00 0.00 2,999,206.33 2,000,000.00 4,000,000.00 6,000,000.00 121,669,237.50 ...... I <D Run Dale: 10124/2008-12:10 Total 5,000,000.00 9,700,000.00 183,108,249.07 PM (PRF _PM3) SyrnRepI6.41.202b ReportVer.5.00 Portfolio CHUL CC Chula Vista Investment Pool Portfolio Management Page 6 Activity Summary September 2007 through September 2008 Yield to Maturity Managed Number Number Month Number of Total 360 365 Pool of Investments of Investments Average Average End Year Securities Invested Equivalent Equivalent Rate Purchased Redeemed Term Days 10 Maturity September 2007 51 183,164,031.67 4.898 4.966 5.231 0 6 666 325 October 2007 42 174,293,968.55 4.878 4.946 5.137 2 11 631 313 November 2007 38 170,456,281.88 4.856 4.924 5.137 6 10 692 401 December 2007 39 175,459,631.88 4.691 4.756 4.801 8 7 854 592 January 2008 43 202,229,132.70 4.569 4.632 4.620 8 4 975 776 February 2008 42 183,529,132.70 4.413 4.475 4.161 3 4 1,105 905 March 2008 40 176,229,132.70 4.318 4.378 3.770 0 2 1,118 919 April 2008 44 193,591,946.05 4.160 4.218 3.400 5 1 1,139 949 May 2008 44 207.023,816.05 4.061 4.117 3.400 4 4 1,056 894 June 2008 39 180,808.557.71 3.882 3.936 2.894 5 10 1,058 949 July 2008 39 200,338,582.40 3.690 3.741 2.787 2 2 960 855 ~gust 2008 40 187,838,582.40 3.771 3.824 2.779 1 0 1,042 908 $eptember 2008 38 183,108,249.07 3.742 3.794 2.774 0 2 1,035 886 - C) Average 41 186,005,465.06 4.302% 4.362% 3.915 3 5 949 744 Run Date: 10/2412008-12:10 Portfolio CHUL CC PM (PRF ]/1,14) SymRepl6.41 .202b Report Ver. 5,QO Chula Vista Investment Pool Portfolio Management Page 7 Distribution of Investments By Type September 2007 through September 2008 September October November December January February March April M,y June July August September Average Security Type 2007 2007 2007 2007 2008 2008 2008 200B 2008 2008 2008 2008 2008 by Period Managed Pool Accounts 30.4 40.1 44.5, 39.8 36.2 30.8 30.2 29.4 33.5 29.4 36.3 30.4 31.9 34.1% Passbook/Checking Accounts Federal Agency Coupon Securities 3.7 2.2 1.7 1.5 1.6 1.6 1.0% Federal Agency Callabfes 60.1 51.6 49.3 54.1 60.8 67.6 68.1 69.1 66.5 69.0 62.2 68.0 66.5 62.5% Corporate Coupon Bonds 5.8 6.1 6.2 6.1 3.0 1.7 1.7 1.6 2.5% -J I ~ ~ Run Date: 10124/2008 -12:10 Portfolio CHUL CC PM (PRF _PM5) Sy'mRepl 6.41.202b RefJufI Ver 5.00 Chula Vista Investment Pool Portfolio Management Interest Earnings Summary September 30, 2008 Page B September 30 Month Ending Fiscal Year To Date CD/Coupon/Discount Investments: Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period Less Accrued Interest at PUfctlase During Period 142.050.00 1.547.149.45 1.237,403.05) 0.00) ( ( 1.221.175.15 1.547,149.45 1,357,651.12) 30,333.33} Interest Earned during Period Adjusted by Capital Gains or Losses 451,796.40 0.00 1,380,340.15 0.00 Earnings during Periods 451,796.40 1.380,340.15 -.J I Pass Through Securities: Interest Collected Plus Accrued Interest at End of Period Less Accrued interest at Beginning of Period Less Accrued Interest at Purctlase During Period 0.00 0.00 O.OO} O.OO} 0.00 0.00 0.00) O.OO} ~ "" Interest Earned during Period Adjusted by Premiums and Discounts Adjusted by Capital Gains or Losses 0.00 0.00 0.00 0.00 0.00 0.00 Earnings during Periods 0.00 0.00 Cash/Checking Accounts: Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period 0.00 468,685.15 336,862.41 } 509,056.36 468,685.15 509.066.36} Interest Earned during Period 131,822.74 468,685.15 Total Interest Earned during Period Total Capital Gains or Losses 583,619.14 0.00 1,849,025.30 0.00 Total Earnings during Period 583,619.14 1,849,025.30 R~IlDale: 1012412008.12:10 Portfolio CHUL CC PM (PRF _PM6) SymRepl 6.41.202b Report Ver. 5.00 ~Vt-- ~ ~~~~ Chula Vista Investment Pool Received Interest Sorted by Date Received - Grouped by Fund Received September 1, 2008 - September 30, 2008 City of Chula Vista 276 Fourth Ave Chula Vista CA 91910 (619)691-5250 CITY OF CHUlA VISTA Dale Received CUSIP Investment 11 Security Type Par Current Value Rate Date Due Date Received Interest Amount Due Amount Received Variance Fund: Chula Vista Investment Pool September 2008 3133XGNF7 10403 MC1 0.00 5.330 09/08/2008 09/08/2008 53,300.00 53,300.00 3128X67H3 10490 MC1 3,000,000.00 3.250 09/10/2008 09/10/2008 48,750,00 48,750.00 3136F9SU8 10487 MC1 0,00 4.000 09/17f2008 09/17/2008 40,000.00 40,000.00 Subtotal 142,050.00 142,050.00 Chula Vista Investment Pool Subtotal 142,050.00 142,050.00 / , Total 142,050.00 142,050.00 Total Cash Overpayment 0.00 Total Cash Shortfall 0.00 -.J I ~ w Run Date: 1012412008.12:10 Portfolio CHUL CC RI (PRF _HI) SymRept 6.41 ,202b Reporl VeL 5,00 ~9~ :-~= Chula Vista Investment Pool ~~~ ""'--"""t;o..~"""" Accrued Interest CITY OF Sorted by Issuer. Investment Number CHUlA VISTA September 1, 2008 . September 30, 2008 Adjusted Acc'd Int. Security p" Maturity Current . Beginning at Purchase CUSIP Investment # Type Value Date Rate Accrued Interest During period Federal Farm Credit Bank 31331X7B2 10446 MC, 3,000,000.00 10fl712011 5.100 56,950.00 0,00 31331YEB2 10452 MC, 3,000,000.00 11f16/2012 4.840 42,350.00 0,00 31331YQ60 10482 MC' 4,000,000.00 OS/20/2011 3.600 40,400.00 0.00 31331Y2T6 10491 MC, 4,000,000.00 07107/2011 4.100 24,600.00 0.00 Subtotal 14,000,000.00 164,300.00 0.00 Federal Home Loan Bank 3133XGNF7 10403 MC, 0.00 09/08f2009 5.330 51,227.22 0.00 3133XMl90 10445 MC, 3,000,000.00 10/03/2012 5.300 65,366.66 0.00 3133XMYPO 10451 MC' 2,000,000,00 11/19/2012 5,050 28,616.67 0.00 3133XNJ26 10458 MC, 3,000,000.00 12119/2011 4.625 27,750.00 0.00 3133XNUF4 10463 MC, 4,000,000.00 01114/2013 4.700 24,544.44 0.00 "fJ3XP4T8 10468 MCl 4,000,000.00 01/28/2013 4.200 15,400,00 0.00 .3.133XP3C6 10469 MC, 4,000,000.00 01/29/2013 4.000 14,222.22 0.00 m3XP6l3 10472 MC1, 5,000,000.00 01129/2013 4.200 18,666.67 0,00 3133XPCV4 10473 MC1 5,000,000.00 01/30/2013 4.150 17,868.06 0.00 3133XPKV5 10474 MC, 2,000,000.00 02/20/2013 4.000 2,444.44 0.00 3133XQJX 1 10476 MC, 3,000,000_00 04/0212013 4.000 49,666.67 0.00 FHLB3133XQJXl 10477 MC, 3,000,000,00 04/16/2013 3.750 42,187,50 0.00 3133XQLJ9 10478 Me, 2,700,000.00 04/11/2013 4.250 44,625,00 0.00 3133XRTNO 10492 MC, 3,000,000.00 08/05/2011 4.150 8,991.67 0.00 Subtotal 43,700,000.00 411,577.22 0.00 Federal Home Loan Mortgage Co. 3128X6CX2 10433 MCl 3,000,000.00 06/15/2010 5.400 34,200.00 0.00 312BX6RNB 10453 MC' 3,000,ODO.00 11/26/2012 5.000 39,583,33 0,00 3128X6RZl 10455 MC, 3,000,000.00 12/0212011 4.700 34,858.35 0.00 3128X6SD9 10456 MC, 4,000,000.00 12105/2012 4.875 46,583.33 0.00 3128X6VFO 10459 MC' 4,000,000.00 12117/2012 4.750 39,055.56 0.00 3121:lX6XV3 10466 MC, 3,000,000.00 01/07/2013 4,750 21,375.00 0.00 3128X6YJ9 10467 MC, 4,000,000.00 01/09/2013 4.500 26,000.00 0.00 3128X6A63 10471 Mel 3,000,000.00 02104/2013 4.125 9,281,10 0.00 3128X63W4 10475 MC, 3,000,000.00 02/28/2013 4.375 1,093.75 0.00 3128X7LK8 10480 MC, 3,000,000.00 05101/2013 4.050 40,500.00 0.00 3128X7TKO 10483 MC, 4,000,000.00 05/27/2011 3.875 40,472.22 d.oO City of Chula Vista 276 Fourth Ave Chul8 Vista CA 91910 (619)691-5250 Interest Interest . Emling Earned Received Accrued Interest 12,750.00 0.00 69,700.00 12,100.00 0,00 54,450.00 12,000.00 0.00 52,400.00 13,666.67 0.00 38,266.67 50,516.67 0,00 214,816.67 --- 2,072.78 53,300.00 0.00 13,250,00 0.00 78,616,66 8,416.66 0.00 3.1,033.33 11,562.50 0.00 39,312.50 15,666.67 0.00 40.211.11 14,000.00 0,00 29,400.00 13,333.34 0.00 27,555.56 17,500.00 0.00 36.166.67 17,291,66 0.00 35,159.72 6,666.67 0.00 9,111.11 10,000.00 0.00 59.G6G,67 9,375.00 0.00 51,562,50 9,562.50 0.00 54,187.50 10,375.00 0.00 19,366.67 159,072.78 53,300.00 517,350.00 13,500.00 0.00 47.700.00 12,500.00 0.00 52,083.33 11,750.00 0.00 40,608.35 16,250.00 0.00 62,833.33 15,833.33 0.00 54,888.89 11,875,00 0.00 33,250,00 15,000.00 0.00 41.000.00 10,312.50 0.00 19,593.60 10,937,50 0.00 12,031.25 10,125,00 000 50,625.00 12,916.67 0.00 53,388.89 " Beginning Accrued may not include investments that redemed in the previous month that had outstanding accrued interest. Ending Accrued includes outstanding purchase interest. Portfolio CHUL CC Run Da\~: 10/24/2008.12:11 AI (PRF _AI) SymRepl 6.41 ,202b Report Vel. 5,00 Chula Vista Investment Pool Accrued Interest Sorted by Issuer - Investment Number Page 2 Adjusted Acc'd Int. Security Par Maturity Current . Beginning at Purchase Interest Interest . Ending GUSJP Investment # Type Value Date Rate Accrued Interest During Period Earned Received Accrued Interest Federal Home loan Mortgage CO. 3128X7T$3 10484 MC' 3,000,000.00 OS/20/2011 3,600 30,300,00 0.00 9,000.00 0.00 39,300.00 3128X7XU3 10486 Me, 3,000,000.00 06/10/2010 3,500 23,625.00 0.00 8,750,00 0,00 32,375.00 3128X67H3 10490 MC' 3,000,000,00 03/10/2010 3.250 46,312.50 0.00 8,125.00 48,750.00 5,687.50 Subtotal 46,000,000.00 433,240.14 0.00 166,875.00 48,750:00 551,365.14 --.-----.----------.--- . Federal Nat'l Mtg. Assoc. 31398AKW 1 10464 MC, 4,000,000,00 01/0212013 4.750 31,138.89 0.00 15,833.33 0.00 46.972,22 3136F9LG5 10479 MC' 3,000,000.00 04129/2013 4.040 41,073.33 0.00 10,100.00 0.00 51.173.33 31398AQS4 10481 MC' 4,000,000.00 04/28/2011 3.500 47,833.33 0.00 11,666.67 0.00 59,500.00 3136FDSA2 10485 MC' 3,000,000.00 06/10/2010 3,265 22,038,75 0.00 8,162.50 0.00 30,201.25 3136F9SU8 10487 MC' 0.00 03/17/2011 4,000 32,888.89 0.00 7,111.11 40,000.00 0.00 31398ASH6 10488 MC' 4,000,000.00 06116/2010 3.550 29,583.33 0.00 11,833.34 0.00 41.416.67 31398ASL 7 10489 FAC 3,000,000.00 06/24/2011 4.250 23,729.17 0.00 10,625,00 0.00 34,354.17 Subtotal 21,000,000.00 228,285.69 0.00 75,331.95 40,000.00 263,617.64 Local Agency Investment Fund ~S10197 10197 LA' 58,439,803.24 2.774 336,862.41 0.00 131,822.74 0.00 468,685.15 I ~ Subtotal 58,439,803.24 336,862.41 0.00 131,822.74 0.00 468,685.15 U1 / Total 183,139,803.24 1,574,265.46 0.00 I 583,619,14 142,050.00 2,015,834.60 * Beginning Accrued may not include investments that redemed in the previous month that had outstanding accrued interest. Ending Accrued includes outstanding purchase interest. Portfolio CHUL cc Run Dille: 1012412008 .12:11 AI (pRF _AI) SymHepl 6,41202b Repoil VeL 5.00 ~u~ ~ ~~~..e:: ""'"~--~ CITY OF (HULA VISTA Investment # lnv. Type 09/08/2006 Issuer 10403 MC1 Federal Home Loan Bank 10487 MC1 Federal Nat'l Mtg. Assoc. Chula Vista Investment Pool Realized Gains and Losses Sorted By Maturity/Sale/Call Date Sales/Calls/Maturities: September 1, 2008 - September 30, 2008 City of Chula Vista 276 Fourtll Ave Chula Vista CA 91910 (619)691-5250 Purchase Date Par Value Sale Date Days Held MaturityfSale Realized Total Total Total Current Rate Maturity Date Term Book Value Proceeds Gain/Loss Earnings Net Earnings Yield 365 2,000,000.00 09/08/2008 731 2,000,000.00 2,000,000.00 0.00 213,200.00 213,200,00 5.323 5.330 09/08/2009 1,096 4,000,000,00 09/17/2008 92 4,000,000.00 4,000,000.00 0.00 40,000.00 40,000.00 3.967 4.000 03J17f2011 1,003 Total Realized Gains/Losses 6,000,000.00 6,000,000.00 0.00/ 253,200.00 253,200.00 4.419 06/17f200B -.I I ~ m Run Dale: 1012412008.12:12 Portfolio CHUL CC CG (PRF _CGR1) SymRept 6,41.202b Report Ver. 5.00 Schedule of Cashllnvestments with Fiscal Agent as of September 3D, 2008 Maturity Purchase Contractual Federal Bond Issue Security Description Trust Acct # Type Date Date Par Value Mkt Value Cost Yield 94 CV Pension Oblig Bd 1st American Trs Oblig CL 0 Corp Tr 95439642 Mutual Funds 88 88 88 Var COP 2000A Financing Proj Milestone Treasury Oblig FD Prem Shr 94418720/21/24 Mutual Funds 2,003,831 2,003,831 2,003,831 Var AIG~MF LLC Invest Agrmt 94418721 Invtmnt Agrmt 27 -Aug-20 11-0cl-00 6.340 RDA 2000 Tax AJJoc Bonds AMBAC CAP Funding 94418822 lnvtmnt Agrmt 01-Sep-30 31-0ct-00 45 45 45 6.180 Milestone Treasury Oblig FD Prem She 94418820/1/4 Mutual Funds 82 82 82 Var CV Public Financing Authority Milestone Treasury Oblig FD Prem Shr )4430300/1/2/3/4/5/8/9/10/11/1: Mutual Funds 2,656,124 2,656,124 2,656,124 Var 2001-1/2001-2 RAD Trinity Plus Funding Co Invst Agrmt 94430303 Invtmnl Agrmt 02-Sep-17 04-Sep-01 1,201,778 1,201,778 1,201,778 5.600 Trinity Plus Funding Co Invst Agrmt 94430312 Invtmnt Agrmt 02-Sep-17 04-Sep-01 426,500 426,500 426,500 5.600 2002 COP Police Facilities US Treasury 94445202 US Trsy Noles 2,021,563, 2,036,400 2,036,400 5.835 Milestone Treasury Oblig FD Prem Shr 94445200/2/4 Mutual Funds 109,789 109,789 109,789 Var CFD 06-1 Improvement Area A Cash 94477000 Cash-Fiscal Agt Milestone Treasury Oblig FD Prem Shr 94477000/3/4/5/6/9/10 Mutual Funds 4,274,758 4,274,758 4,274,758 Var Local Agency Investment Fund 94477005/6/9 Invmnt Agrmt 4,934,111 4,934,111 4,934,111 Var 2003 Refunding Cert of Participation FSA Capital Mgmt Invst Agreement 94652201 Invmnt Agrmt 01-Sep-12 11-Jun-03 1,132,000 1,132,000 1,132,000 3.100 Milestone Treasury ObJig FD Prem Shr 94652200/1 Mutual Funds 175 175 175 Var CFD 2001-2 McMillin-Otay Ranch 6 Milestone Treasury Oblig FD Prem Shr 94658900/03/04/05/08/09/10 Mutual Funds 1,511,622 1,511,622 1,511,622 Var Cash 94658900-10 Cash-Fiscal Agt CFD 08-1 Olay Ranch Village 6 Milestone Treasury Oblig FD Prem Shr 1682100/03/04/05/06/07/10/11/' Mutuai Funds 2,487,988 2,487,988 2,487,988 Var LAIF 94682105/12 lnvmnt Agrmt 3,180,774 3,180,774 3,180,774 Cash 94682100 Cash-Fiscal Agt CFD 07-1 McMiliin Otay Rnch VII9 11 Milestone Treasury Oblig FD Prem Shr 784708000/03/04/05/06/07 Mutual Funds 185,397 185,397 185,397 Var LAIF 784708003/06 Invmnt Agrmt 2,378,636 2,378,636 2,378,636 Cash 784708010 Cash-Fiscal Agt CFD 06-1 Improvement Area B Milestone Treasury Oblig FD Prem Shr 786104000/3/4/5 Mutual Funds 2,234,763 2,234,763 2,234,763 Var -.J Cash 786104000-08 Cash-Fiscal Agt 0 2004 ':OP Civic Center Phase I Dreyfus Ins!'! Res Treasury 325540-44 Mutual Funds 1,006,752 1,006,752 1,006,752 Var ~ FSA Capital Management Services LLC 325544 Invmnt Agrmt 01-Mar-34 16-Sep-04 2,395,911 2,395,911 2,395,911 5.205 -.J Cash Cash-Fiscal Agl 2006 COP Civic Center Phase II Dreyfus lnst'! Res Treasury 145756/57/58/68/69 Mutual Funds 714,114 714,114 714,114 Var FSA Investment Agreement 145757 Invmnt Agrmt 01-Mar-36 ' 17-Mar-2006 1,272,459 1,272,459 1,272,459 5.010 CVPFA 2005 Rev Refunding Ser A Milestone Treasury Oblig FD prem Shr 790488000+- Mutual Funds 12,303,620 12,303,620 12,303,620 Var Citigroup GIC #871615.1 Reserve Accounts Invmnt Agrmt 01-Sep-2032 6,436,873 6,436,873 6,436,873 4.889 US Treasury Escrow Accounts US Trsy Notes 56,088,004 65,239,027 65,239,027 Var Cash Cash-Fiscal Agt CFD 01-1 Improvement Area B Milestone Treasury Oblig FO Prem Shr 792183003-10 Mutual Funds 7,783,164 7,783,164 7,783,164 Var CFD 12-1 McMillin Otay Rnch VII9 7 Milestone Treasury Oblig FD Prem Shr 791949000/4/5/6/7/8/11/12 Mutual Funds 4,433,896 4,433,896 4,433,896 Var AIG Matched FDG Corp Invsl A.grmt 791949005/11/12 Invmnt Agrmt CFD 13-1 Otay Ranch Vil9 7 Milestone Treasury Oblig FO Prem Shr '93774000/03/04/05/06/07/08/1 Mutual Funds 4,694,204 4,694,204 4,694,204 Var LAIF 793774003 Invmnt Agrmt 1,225,184 1,225,184 1,225,184 Cash 793774011 Cash-Fiscal Agt CFD 07 -IB McMillin Otay Rnch Vllg 11 Milestone Treasury Oblig FO Prem Shr 794322000/01/03/04/05/09 Mutual Funds 2,006,873 2,006,873 2,006,873 Var LAIF 794322003 Invmnt Agrmt 984,000 984,000 984,000 Cash 794322006 Cash-Fiscal Agt 06 Sr. Tax Alloc Ref Bonds A Milestone Treasury PS Fund # M5 103986000/05 Mutual Funds 296 296 296 Var Rabobank International NY Branch 103986003 Invmnt Agrmt 09-Au9-2027 11-Sep-2006 1,027,948 1,027,948 1,027,948 4.980 06 Subordinate Tax Alloc Ref Bds Milestone Treasury PS Fund # M5 103987003/05 Mutual Funds 25,597 25,597 25,597 Var CitiGroup Financial Products, Inc. GIC 103987003 Invmnt Agrmt 26-Sep-2027 11-Sep-2006 1,004,365 1,004,365 1,004,365 5.097 RDA 2008 Tax Alloc Ref Bonds Milestone Treasury PS Fund # M5 127926000 to 6011 Mutual Funds 30-Sep-2036 22-Jul-2008 9,352,910 9,352,910 9,352,910 Var CDBG Section 108 Loan Cash - Interest Bearing Acct 1459703226 Restricted Cash 9,466,937 9,466,937 9,466,937 Var Orange Tree MHP Cash - Interest Bearing Acct 2324-80156 Restricted Cash 586,736 586,736 586,736 Var RDA Housing Program Cash - Interest Bearing Acct Various Restricted Cash 3,835,175 3,835,175 3,835,175 Var COBG Housing Program Cash - Interest Bearing Acct Various Restricted Cash 370,397 370,397 370,397 Var Grand Total as of September 30, 2008 157,755,440 166,921,301 166,921,301 FHename:J :\finance\data\invest\lnv09.xls . i'finance\dala\invesl\lnv09,xls City of Chula Vista Cash and Investments 30-Sep-08 .. DRAFT .. INVESTMENTS Bank of New York Custodial Account State of CA Local Investment Agency Fund State of CA Local Investment Agency Fund Accrued Interest on Investment UNREALIZED GAIN Unrealized Gain on Fair Market Value CASH IN BANK Bank of America - General Account Bank of America - Payroll Account California Bank - Direct Deposit Account Wells Fargo Bank-CV Workers Comp Account CASH ON HAND Petty Cash Fund TIME DEPOSIT Bank of America Time Deposit Cash and Investments as of 09/30/2008 Cash/Time Deposits as of 09/30/2008 j:finance\data\Cash and Investments FY0809 Sept 30 2008.xls 7-18 Amount 124,665,825 22,201,931 36,237,873 183,105,628 339,377 339,377 5,012,687 (11,683) 5,182 367,441 5,373,627 5,300 5,300 310,000 310,000 189,133,932 5,688,927 Draft, as of 10127108 CITY COUNCIL AGENDA STATEMENT ~\ff:. CITY OF '-~CHUlA VISTA 11/4/08, Item~ ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORlZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY AND INVESTCAL REALTY, INe. TO SURRENDER THE CITY'S LEASED PREMISES LOCATED AT 900 LANE AVENUE SUITE 200 AND AUTHORlZE THE PA YMENT OF THE BUY-OUT FEf~ DIRECTOR OF ENGINEERING ~ INTERlM CITY MANAGER S Y 4/STHS VOTE: YES 0 NO [gJ SUBMITTED BY: REVIEWED BY: SUMMARY The City currently leases 5,843 square feet of office space from Investcal Reality, Inc. This office space, located at 900 Lane A venue has been used by the Building Inspection and Plan Review sections of the Planning and Building Department since 1998. Due to the relocation of all Planning and Building Services to the City Hall campus, this office space is no longer needed. Because the current lease has 13 months left before it expires, stafT is proposing to buyout the remainder of the term at a discounted rate and surrender the lease. 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(b)(5) 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. RECOMMENDATION Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION In December 1998, the City entered into a sub-lease with the Eastlake Company for office space at 900 Lane Avenue to accommodate the Building Inspection section of the Planning and Building Department. In December 1999, Council approved an amendment to the sublease adding space for the Plan Review Section of the Planning and Building Department and for a satellite permit processing center. When their lease expired in December 2004, Eastlake declined to renew and the City, by Council Resolution 2004-338 entered into a five-year lease with Investcal Reality, the 8-1 11/4/08, ItemL Page 2 of 2 property owner, for the office space. This lease is current, has 13 months remaining, and obligates the City to pay rent totaling $12,459 per month for the space. Additionally, the City pays approximately $1,200 per month for utilities at the site. Due to the relocation of all Planning and Building Services to the City Hall Campus, this office space is no longer needed. Staff has looked at options for this space and has determined that, due to the short duration of the remaining lease and the current state of the real estate market, the City's options are limited. There is considerable vacant commercial space currently available in the area. This available space would be in direct competition with our space were we to try to sub-lease for ourselves or find a new tenant for Investcal. Both of those options also have financial and legal obligations attached. Based upon this analysis, combined with the City's ongoing expenditure for rent and utilities, staff approached lnvestcal and has negotiated a proposed buy-out that would allow the City to surrender the lease. The terms as proposed are as follows: . The City would pay lnvestcal a sum equal to eleven (II) months rent or $137,049. . The City would forfeit its security deposit, which is $10,780 and has already been paid. . The City would completely vacate the premises no later than November 15, 2008. . Investcal would accept surrender of the City's lease and release the City from any further obligations on this account. 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 lMPACT The City's future obligation under the lease agreement is 13 months, trom November 2008 through December 2009. With $12,459 in monthly lease costs and $1,200 in estimated monthly utility costs, this equates to an estimated future expense of $177,567. Under the proposed Surrender Agreement, the City will incur costs totaling $147,829. Because the security deposit has already been paid, the net payment resulting trom this action would be $137,049. The net savings to the City resulting from the proposed agreement totals $29,738, and is detailed as tallows: Future Expenses Future Lease Obligation Estimated Future Utility Expense Total Estimated Future Expense $ 161,967 $ 15,600 $ 177,567 Surrender Agreement II Months Lease Payment Forfeited Deposit (1 Month Lease) Total Agreement Cost $ (137,049) $ (10,780) $ (147,829) Estimated Agreement Net lmpact $ 29,738 ATTACHMENTS 1. Surrender Agreement Prepared by: Rick Ryals, Real Property iVfanager, Engineering Department 8-2 THE ATTACHED AGREENlENT 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 ~ tL0c(/~.fr"-- Bart C. Miesfeld Interim City Attorney Dated: i 0 r ,)-1 ( () ? Lease Surrender Agreement between the City ofChula Vista and Investcal Realty Incorporated re: Leased Premises Located at 900 Lane Avenue, Suite 200 8-3 LEASE SURRENDER AGREEMENT THIS LEASE SURRENDER AGREEMENT ("Agreement") is entered into this _ day of 2008, by and between THE CITY OF CHULA VISTA, a municipal corporation and charter City organized under the laws of the State of California ("City"), and INVESTCAL REALTY, INCORPORATED, a California Corporation Clnvestcal"), (collectively, the Parties). This Agreement shall be effective as of the date last signed by the Parties to the Agreement (the "Effective Date") and is entered into with respect to the following recited facts: WHEREAS, in December 2004, City, pursuant to Council Resolution 2004-338, entered into a lease with Investcal Reality, Inc., for 5,843 square feet of office space at 900 Lane Avenue to accommodate the Building Inspection section of the Planning and Building Department (the "Lease"); and WHEREAS, the Lease obligates the City to pay rent at the rate of $12,459 per month, for a total of 60 months, and City paid a security deposit for the Lease premises in the amount of $1 0, 780; and WHEREAS, the City currently pays approximately $1,200 per month for utilities at the Lease site; and WHEREAS, due to the relocation of City's Planning and Building Services to the City Hall campus, the office space is no longer needed by City; and WHEREAS, the Lease does not expire until December 2009, leaving a total of $161,967 to be.paid under the terms of the Lease, and approximately $15,600 in estimated future utility costs for the Lease premises; and WHEREAS, City and lnvestcal have reached an accord, by which City will surrender the Lease to lnvestcal and lnvestcal will accept City's surrender subject to the terms and conditions set forth in this Agreement. NOW THEREFORE, the Parties agree as follows 1. City shall pay Investcal $137,049 as payment III full for all remaining rent obligated under the Lease. 2. City forfeits the security deposit it previously paid Investcal, in the amount of $10,780, to Investcal. -1- 8-4 3. City shall vacate the Lease premIses no later than 5 :00 pm on Saturday, November 15,2008. 4. In consideration of City's performance under this Agreement, as described in paragraghs 1., 2. and 3., above, Investcal, on behalf of itself, its successors and assigns, hereby releases and discharges the City, its elected officials, officers, directors, employees and agents from any and all debts, claims, demands, liabilities, obligations, causes of action and rights, including attorney's fees and court costs, whether known or unknown, that Investcal now owns or holds, or at any time on or before the effective date owned or held, by reason of any act, matter, cause or thing relating to the Lease. 5. As of the date City vacates the Lease premises, but not later than November 15, 2008, City surrenders and Investcal accepts City's surrender of the Lease. The Lease shall have no further force and affect. 6. It is further understood and agreed that all rights under Section 1542 of the Civil Code of California and any similar law of any state or territory of the United States or other jurisdiction' are hereby expressly waived. Said section reads as follows: 1542. General Release - Claims Extinguished. A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor 7. City represents and warrants that it has made no transfer of the Lease, any interest in the Lease, or any demand, obligation, liability, or cause of action arising out of the Lease. lnvestcal represents and warrants that Investcal has made no transfer of the Lease, any interest in the Lease, or any demand, obligation, liability, or cause of action arising out of the Lease. 8. The Parties have herein set forth the whole of their agreement. The performance of this Agreement constitutes the entire consideration for surrender of the Lease and shall relieve City and Investcal of all further obligations or claims under the Lease. 9. Time is of the essence of each and every term, condition, obligation and provision of this Agreement. 10. The Recitals of fact preceding this Agreement are true and correct and are incorporated into this Agreement, in their entirety, by this reference. 11. No elected official, officer, director, employee or agent of the City shall be personally liable to Investcal, or any successor-in-interest of Investcal, in the - 2- 8-5 event of any default or breach by the City under this Agreement or for any amount that may be or become due to Investcal, or any of its successors-in- interest, on any obligations under the terms or conditions of this Agreement. 12. No inference in favor of or against any Party shall be drawn from the fact that such Party has drafted. any part of this Agreement. The Parties have all participated substantially in the negotiation, drafting, and revision of this Agreement, with advice from legal and other counsel and advisers of their own selection. 13. The laws of the State of California shall govern the interpretation and enforcement of this Agreement, without application of conflicts of laws principles. The Parties acknowledge and agree that this Agreement is entered into, is to be fully performed in and relates to real property located in the City of Chula Vista, County of San Diego, State of California. All legal actions arising from this Agreement shall be filed in the Superior Court of the State in and for the County or in the United States District Court with jurisdiction in the County. 14. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective legal representatives, successors and assigns. 15. Except as expressly set forth in this Agreement, no Party makes any representation or warranty material to this Agreement to any other Party. 16. Each signatory and Party to this Agreement 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. 17. This Agreement may be executed in multiple counterpart originals, each of which shall be deemed to be an original, but all of which together shall constitute one and the same document. [Signatures blocks appear on the next pagel - 3- 8-6 SIGNATURE PAGE' TO LEASE SURRENDER AGREEl\'IENT The Parties have signed this Agreement by and through the signatures of their authorized representatives, as set forth below: CITY OF CHULA VISTA, a California municipal corporation and charter city' INVESTCAL CORPORATION, corporation a REALTY California By: Cheryl Cox, Mayor By: Kenneth Shafie Its: Dated: Dated: ATTEST: Donna Norris, City Clerk APPROVED AS TO FORM: Bart Miesfeld, Interim City Attorney -4- 8-7 SIGNATURE PAGE TO LEASE SURRENDER AGREEMENT The Parties have signed this Agreement by and through the signatures of their authorized representatives, as set forth below: CITY OF CHULA VISTA, a California municipal corporation and charter city INVESTCAL CORPORA nON, corporation a REALTY California By: Cheryl Cox, Mayor Dated: By: j,{ . \L-/~ Keniteth Shafie ~/ '7 Its: v . ,/> . Dated: I"""'/J'c/ .t:>,F ATTEST: Donna Norris, City Clerk APPROVED AS TO FORM: Bart Miesfeld, Interim City Attorney -4- RESOLUTION 2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY AND INVESTCAL REALTY, INC. TO SURRENDER THE CITY'S LEASED PREMISES LOCATED AT 900 LANE A VENUE SUITE 200 AND AUTHORIZE THE PAYMENT OF THE BUY-OUT FEE WHEREAS, the City of Chula Vista currently leases 5,843 square feet of office space from InvestcaI Reality, Incorporated (Investcal), located at 900 Lane Avenue, which has been used by the Building Inspection and Plan Review sections of the Planning and Building Department since 1998; and WHEREAS, due to the relocation of all Planning and Building Services to the City Hall campus, this office space is no longer needed; and WHEREAS, this lease currently has 13 months remaining and obligates the City to pay rent totaling $12,459 per month for the space plus the cost of utilities and custodial service; and WHEREAS, staff has looked at options for this space and has determined that, due to the short duration of the remaining lease and the current state of the real estate market, the City's options are limited; and WHEREAS, staff has negotiated a buy-out with Investcal, that would allow the City to surrender the lease; and WHEREAS, the City's future obligation under the lease agreement is 13 months, from November 2008 through December 2009; and WHEREAS, with $12,459 in monthly lease costs and $1,200 in estimated monthly utility costs, this equates to an estimated future expense of$I77,567; and WHEREAS, under this Surrender Agreement, the City will incur costs totaling $147,829. The net savings to the City resulting from this agreement totals $29,738. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula V ista hereby authorizes the Mayor to execute an agreemeqt between the City and lnvestcal Realty, Inc. to surrender the City's leased premises located at 900 Lane A venue Suite 200 and authorizes the payment of the buy-out fee. Presented by Approved as to form by Richard A. Hopkins Director of Engineering 8-8 CITY COUNCIL AGENDA STATEMENT " ,',,(f; ;:$ ~ (lIT OF ~~ (HULA VISTA NOVEMBER 4, 2008, ltem~ ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA REGARDING AMENDMENTS TO INDENTURES AND LOAN AGREEMENTS RELATING TO OUTSTANDING INDUSTRIAL DEVELOPMENT REFUNDING REVENUE BONDS OF THE CITY OF CHULA VISTA ISSUED TO REFINANCE COSTS OF CERTAJN ELECTRIC FACILITIES FOR SAN DIEGO GAS & ELECTRIC COMPANY AND RELATED BOND INSURANCE TERMINATION AND RELEASE AGREEMENT SUBMITTED BY: DIRECTOR OF FINANCE/TREASURER'-i7K REVIEWED BY: ~ INTERIM CITY MANAGER 7 / DEPUTY CITY MANAGER YV 4/STHS VOTE: YES D NO 0 SUMMARY The Chula Vista City Council has the ability to issue tax-exempt bonds for large industrial/manufacturing projects, Industrial Development Bonds (IDBs) are tax-exempt bonds, which can raise funds for manufacturing businesses or energy development projects, On March 23, 2004, the City Council passed resolution 2004-093 authorizing the issuance and sale of up to $686.4 million of IDBs to refund IDBs previously issued by the City of Chula Vista and the City of San Diego to finance or refinance certain costs of gas and electric facilities for San Diego Gas and Electric (SDG&E) resulting in the issuance of approximately $412.5 million in IDBs. SDG&E has asked the City to accept certain amendments to the existing IDBs and to join SDG&E in executing an agreement that will terminate certain bond insurance policies relating to these lOBs, RECOMMENDA nON That Council adopt the resolution. 9-1 NOVEMBER 4, 2008, Item~ Page 2 of4 BOARDS/COMMISSION RECOMMENDA nON: Not applicable. DISCUSSION San Diego Gas and Electric Company (SDG&E) has approached the City indicating its desire to remarket previously issued Industrial Development Bonds (IDBs) without bond insurance. Prior to any remarkcting drorts SDG&E believes it prudent that the bond Indentures and Loan Agreements be amended in order to facilitate remarketing the IDBs as uninsured. The attached letter from SDG&E explains the events and the reasons that have compelled them to make their. request. This staff report provides a brief history of past City Council actions for the IDBs and summarizes SDG&E's request along with a set of detlnitions at the end of the report. . In April 1996, the City Council adopted Ordinance 2669 amending Chapter 3.48 of the Chula Vista Municipal Code to permit the refinancing of regional utility projects upon a finding of City bene tIt. The City Council also passed a resolution setting an issuance fee at 25 basis points (1/4 of I percent) of the principal amount, payable at the time of issue, plus costs. The fee was subsequently increased to 35 basis points in an MOD between the City and SDG&E dated October 12, 2004. On September 11, 1998, the City of Chula Vista and SDG&E entered into a Letter of Agreement granting Chula Vista exclusive rights to be the issuer of SDG&E's IDBs on the following conditions: 1. The processing ofSDG&E's applications for IDBs is completed in a timely manner; and 2. Chula Vista's issuance charge is no more than 35 basis points (in addition to Chula Vista's administrative costs related to bond issuance); and 3. Chula Vista charges no annual fee or costs; and 4. Chula Vista's Bond Counsel indicates that Chula Vista's involvement with respect to each issue of IDBs is permissible under the then current tax laws and that it is not necessary to obtain a Superior Court judgment in a validation action.. On March 23, 2004, the City Council passed resolution 2004-093 that authorized the issuance and sale of up to $686.4 million of IDBs to refund IDBs previously issued by the City of Chula Vista and the City of San Diego to finance or refinance certain costs of gas and electric facilities for SDG&E. This action resulted in the City of Chula Vista issuing IDBs in 2004 and 2006 for the benefit of SDG&E. In June 2004 $251.3 million in IDBs were issued and in September 2006 another $161.2 million was issued to refund two series of City of San Diego IDBs. Both the 2004 IDBs and the 2006 IDBs are secured by SDG&E's First Mortgage Bonds. In addition, the 2004 IDBs are insured by XL Capital Assurance and the 2006 IDBs are insured by Ambac Assurance Corporation. The lOBs were issued as variable rate bonds in an auction rate mode. The credit rating agencies (Moody's, S&P and Fitch) initially rated both the issues "AAA" because the IDBs were insured. However, due to the mortgage meltdown the two bond insurance companies' credit ratings were downgraded from their "AAA" status. The credit downgrade on the insurers has made the IDBs less desirable for investors and accordingly 9-2 NOVEMBER 4,2008, Item 9 Page 3 of Z:f SDG&E has had to pay above market rate interest in order to maintain investor interest in the two IDB issues. Paying higher than market rate interest has caused SDG&E or Sempra Energy to purchase and hold all of the 2004 and 2006 IDBs until they can be remarketed at more favorable interest rates to new investors. According to SDG&E, potential remarketing agents. for the 2004 and 2006 IDBs have indicated that lower interest rates can be achieved without bond insurance. SDG&E has indicated that the existing Indentures and Loan Agreements for the 2004 and 2006 IDBs specifically envision that the initial Bond Insurance may be telminated upon direction from SDG&E. The bond insurers, XL Capital Assurance and Ambac Assurance Corporation, both appear willing to cancel their respective Insurance Policies. The Loan Agreements require SDG&E's First MOligage Bonds to remain in place as long as the 2004 and 2006 IDBs remain outstanding. SDG&E has further indicated that there is no requirement in the Indentures or the Loan Agreements that SDG&E arrange for a substitute Credit Facility if the initial bond insurance for the 2004 and 2006 IDBs is terminated. SDG&E believes it would be possible to remarket the 2004 and 2006 bonds without amendments to the Indentures and the Loan Agreements. However, to align the bond documents with the remarketed IDBs' uninsured status, it would be useful to amend various other provisions of the Indentures and Loan Agreements in anticipation of the termination of the XL Capital Assurance and Ambac Assurance Corporation Policies (e.g. delete requirements of Bond Insurer consents and exercise of remedies upon Default even after the Policies have been terminated). SDG&E is proposing to amend and restate the Indentures and Loan Agreements to: 1. ClarifY that Bond Insurance is just one permitted type of Credit Facility. 2. Clarify that a person who provides a. Credit Facility with respect to fewer than all the Bonds generally is to be treated as a Credit Provider only in respect of the Bonds covered by the Credit Facility. 3. Clarity that any Credit Facility may be terminated at will by the Borrower (consistent with the terms ofthat Credit Facility) other than as expressly specified in the Indenture or the Loan Agreement. 4. Clarity that any person who once was a Credit Provider ceases to be treated as a Credit Provider after its Credit Facility has been terminated. 5. Eliminate the requirement of a Credit Facility upon interest rate Adjustment Dates. 6. ClarifY that the Liquidity Facility requirement is optional once an Initial Credit Provider ceases to provide a Credit Facility. 7. Clarify that Initial Credit Providers' project access and records examination rights are limited to the periods their 9redit Facilities are in effect. In addition, Ambac Assurance Corporation will require the City to execute agreements regarding the termination of its bond insurance. . Orrick, Herrington & SutclitIe LLP, Bond Counsel for the 2004 and 2006 IDBs, has advised that Resolution 2004-093 confers legal authority upon the Director of Finance to approve proposed amendments to the 2004 and 2006 Indentures and Loan Agreements and to execute and deliver 9-3 NOVEMBER 4,2008, Item q Page 4 of ~ the proposed bond insurance termination and release agreement with Ambac Assurance Corporation in respect of certain of the 2004 and 2006 IDBs. However, the Director of Finance has requested guidance from the City Council before committing to exercise that existing authority. The resolution that is recommended for approval would approve the Director of Finance's exercise of existing authority to facilitate the above changes to the Indentures and Loan Agreements and termination of the Policies issued by Ambac Assurance Corporation. The City will receive an opinion of Bond Counsel regarding the due authorization,. execution and delivery, and enforceability of the amendments and their compliance with the bond documents. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations section I 8704.2(a)(I) is not applicable to this decision and that section 18707 would be applicable to this decision. FISCAL IMPACT There is no fiscal impact to the General Fund as a result of the recommended action. Because this is a remarketing effort, the City's usual issuance fee of 35 basis points is not applicable. . However, all reasonable City costs (staff time, legal fees) and indemnification against any other costs incurred in connection with the proposed amendments will be paid by SDG&E. ATTACHMENTS I. Glossary of Terms 2. September 23, 2008 SDG&E Memo 3. March 23,2004 City Council Agenda Statement Prepared by: Phillip Davis, Assistant Director, Finance Department 9-4 A TT ACHMENT I GLOSSARY Definitions Per the Industrial Dev~lopment Bond's Indenture of Trust Borrower means San Diego Gas & Electric Company, a corporation organized under the laws of the State of California, and its successors and assigns. Credit Agreement means any agreement between the Borrower and any Credit Provider pursuant to which any Credit Facility is provided to the Trustee. Credit Facility means (i) any letter of credit, guarantee, insurance policy or standby purchase agreement provided by a financial institution, (ii) any mortgage bonds, debentures or other debt obligations of the Borrower or (iii) any other support or liquidity arrangement or security, if any, provided by the Borrower. Credit Provider means the provider of any Credit Facility. Loan Agreement is between the City and the Borrower and relating to the loan of the proceeds of the Bonds, as originally executed or as it may from time to time be supplemented or amended Further Definitions Provided by Money-Zine.Com Auction-Rate Sccurities are long-term, variable rate bonds, which are tied to short-term interest rates. The interest rate on an auction-rate security is detennined via a Dutch auction and these securities are typically sold in $25,000 denominations. Dutch auction, also referred to as a descending price auction, determines the minimum interest rate at which all bonds can be sold at par. This interest rate is referred to as the clearing rate, and this rate of interest is paid on the entire issue up for bid during the upcoming period. The Dutch auction itself takes place using a seven-step process: I. Investors identify the par amount of securities they wish to purchase, and what they are willing to pay for those securities. 2. Each dealer passes along these bids to an auction agent. 3.. The auction agent collects all of the bids from all the dealers participating in the auction. 4. The auction agent then sorts the bids in ascending rate order until a clearing rate is found. 5. Investors that bid a rate that was lower than or equal to the clearing rate are scheduled to receive bonds. 6. The auction agent notifies each dealer of the auction results. 7. Dealers record and settle the bond trades on the next business day 9-5 " " ATTACHMENT 2 ~ ~ Sernpra Energy'" 101 Ash Street San Oieqo, CA 92101-3017 September 23,2008 Maria Kachadoorian Director of Finance/Treasurer City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Re: SDG&E IDB Proposed Bond Docnment Amendments Dear Ms. Kachadoorian: On March 11, 2008, Marilyn Burke, then the director of corporate [mance at Sempra Energy, sent you a letter providing the City of Chula Vista with background on events in the credit markets, resulting impacts to SDG&E's insured IDBs and SDG&E's subsequent plans to remarket those securities. As you lmow, Marilyn now works for an unregulated affiliate ofSempraEnergy. I'm sending you this update afthe March 11, 2008 letter to reflect what has occurred since you, Marilyn, and I met in May of this year. History In June 2004, SDG&E refunded over $250 million of its industrial development bonds through the City ofChula Vista. Series A through E, totaling $176.265 million principal amount, are insured by XL Capital Assurance. These non-A.1\i!T bonds were placed into a weekly Dutch auction rate mode with an initial interest rate of 0.90%. The $75 million, Series F bonds are insured by Ambac Assurance Corporation. These 2004F Bonds are subject to A.1\i!T, and were placed into a 28-day Dutch auction rate mode with an initial interest-rate.ll.LLD 5.% In September 2006, SDG&E arranged for the refunding of two series of City of San Diego IDBs that had been issued for the benefit ofSDG&E by the $161.24 million Chula Vista 2006 Series A, insured by Ambac Assurance Corporation. These non-AMT bonds were placed into a weekly Dutch auction rate mode with an initial interest rate of3.20%. All of the Chula Vista 2004 Bonds and 2006 Bonds are secured by SDG&E's first mortgage bonds. All were initially rated "AAA" by Moody's, S&P and Fitch due to the insurance wraps. 9-6 Recent Market Events The major bond insurers' difficulties coincide with the continuing sub-prime mortgage market meltdown. There are mounting losses in the mortgages that back up securities that XL Capital, Ambac and other firms have insured. As the magnitude of this exposure became more apparent, the credit rating agencies grew increasingly concerned over whether XL Capital, Ambac and other bond insurers would have adequate equity capital to weather their expected future losses on their sub-prime portfolios. Accordingly, many bond insurers have had their credit ratings downgraded from "AAA" status. The current ratings of our bond insurers are: S&P Moody's Fitch Ambac AA. Aa3 Not rated effective Negative outlook Negative outlook 6/26/08 XL Capital A- Baal A Negative outlook Negative outlook Stable outlook Auction Rate Market Impact Typical auction rate note C"ARN") investors relied on "AAA" insured ratings, so the downgrades of Ambac, XL Capital and other bond insurers have made ARNs undesirable. Nationwide, auctions are clearing at significantly higher interest rates than vatiable rate demand bonds because ARNs are viewed as being more risky and less liquid. Accordingly, rates have spiked dramatically for various issuers; if an auction fails due to insufficient bidders, the interest rate will be a predefined "maximum rate" for that auction period. Although none of the auctions failed, in early 2008 interest rates on the 2004 Bonds and the 2006 Bonds were significantly higher than SDG&E would expect to pay for other fonns of secured tax-exempt debt. As a result, SDG&E was incuning above mat-ket interest expense on the 2004 Bonds and 2006 Bonds. SDG&E Initial Response Because of concerns over the higher interest costs SDG&E would incur if the 2004. Bonds and 2006 Bonds remained in the Auction Rate mode, SDG&E gave formal notices of conversions from Auction Rate mode to a vVeekly Rate mode. The conversions took place in March 2008. SDG&E or Sempra Energy has purchased and now holds all the 2004 Bonds and 2006 Bonds until they can be remarketed at more favorable interest rates to TlP:winvestors Remarketing of the 2004 Bonds and 2006 Bonds Would Be Facilitated By Amendmeuts Potential remarketing agents for the 2004 Bonds and the 2006 Bonds indicate lower interest rates can be achieved without bond insurance. The existing Indentures and Loan Agreements for the 2004 Bonds and for the 2006 Bonds specifically envision that the initial Bond Insurance may be terminated upon direction from SDG&E. XL Capital and Ambac both now appear willing to cancel their respective Insurance Policies. 9-7 The Loan Agreements require SDG&E's First Mortgage Bonds to remain in place as long as the 2004 Bonds or the 2006 Bonds remain outstanding. But there is no requirement in the Indentures or the Loan Agreements that SDG&E arrange for a substitute Credit Facility if the initial Bond Insurance Policy for any selies of 2004 Bonds or 2006 Bonds is terminated. SDG&E believes it would be possible to remarket the converted 2004 Bonds and 2006 Bonds without amendments to the Indentures and Loan Agreements. However, to align the bond documents with the remarketed Bonds' uninsured status, it would be useful to amend various other provisions of the Indentures and Loan Agreements in anticipation of the termination of the XL Capital Policies and Ambac Policies (e.g., delete requirements of Bond Insurer consents and exercise of remedies upon Default even after the Policies have been terminated). We propose amending and restating the Indentures and Loan Agreements to: 1. Clarify that Bond Insurance is just one permitted type of Credit Facility; 2. Clarify that a person who provides a Credit Facility with respect to fewer than all the Bonds generally is to be treated as a Credit Provider only in respect ofthe Bonds covered by that Credit Facility; 3. Clarify that any Credit Facility may be terminated at will by the Bon-ower (consistent with the terms of that Credit Facility), other than as expressly specified in the Indenture or the Loan Agreement; 4. Clarify that any person who once was a Credit Provider ceases to be treated as a Credit Provider after its Credit Facility has been terminated; 5. Eliminate the requirement of a Credit Facility upon interest rate Adjustment Dates; 6. Clmify that Liquidity Facility requirement is optional once an Initial Credit Provider ceases to provide a Credit Facility; and 7. Clarify that Initial Credit Providers' project access and records examination lights are limited to the periods their Credit Facilities are in effect. IlWouJ:d-be-usefui-to-pttt-lhese-ame11flments-iTlffi-effect-as-s0Bfr-as-resst[}I€~H:-th8--Git-y--is amenable to these amendments, SDG&E will ask Orrick, Herrington & Sutcliffe LLP, Bond Counsel, to prepare the documents needed to implement these amendments. Please note that if the existing Bond Insurance Policies are terminated with respect to the 2004 Bonds and 2006 Bonds, SDG&E will remarket all the Bonds to the public with new CUSIP numbers and new offering circulars. 9-8 Request to the City of Chula Vista In summary, SDG&E is requesting approval of proposed amendments to the 2004 and 2006 Indentures and Loan Agreements. Section 10 of Resolution 2004-093 authOlizes the Director of Finance to amend documents and substitute credit enhancement for the 2004 Bonds and for the 2006 Bonds without further authorization of the City Council. SDG&E believes this original delegation to City staff is broad enough to implement the proposed amendments without additional fOlmal action by the City Council. However, SDG&E would be pleased to work with City staff on a supplemental City Council resolution acknowledging or approving the proposed amendments if City staff believes that would be desirable. SDG&E will pay any reasonable City costs incuned in connection with the review and approval of the proposed amendments. SDG&E also will indenmify the City for any other cost incuned as a result of or in connection with the proposed amendments. We will provide an opinion of Bond Counsel that the amendments are authorized by the existing Indentures and the Loan Agreements and will not adversely affect the tax- exempt status of the outstanding Bonds. Another brief meeting with you to discuss the above request as well as to introduce Sempra's new director of corporate finance, Mark Roberge, would be helpful in keeping this project on course. I will contact you directly to make the necessary anangements. Sincerely yours, ~IJ. I~ Gary H. Hayes Corporate Finance Manager Sempra Energy cc: Mark Roberge Dean Criddle Dennis AtTiola Ahmad Solomon Charlie McMonagle 9-9 ATTACHMENT 3 ITEM TITLE: COUNCil AGENDA STATEMENT /] Item ~ Meeting Date 3123/04 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE ISSUANCE AND SALE OF NOT TO EXCEED $686,400,000 AGGREGATE PRINCIPAL AMOUNT OF INDUSTRIAL DEVELOPMENT REFUNDING REVENUE BONDS OF THE CITY OF CHULA VISTA TO REFUND CERTAIN BONDS ISSUED BY THE CITY OF CHULA VISTA AND THE CITY OF SAN DIEGO TO FINANCE COSTS OF CERTAIN GAS AND ELECTRIC FACILITIES FOR SAN DIEGO GAS & ELECTRIC COMPANY, AUTHORIZING THE EXECUTION AND DELIVERY OF AN INDENTURE OF TRUST AND A LOAN AGREEMENT PROVIDING FOR THE ISSUANCE OF THE BONDS AND THE REPAYMENT OF THE LOAN OF THE PROCEEDS THEREOF, RESPECTIVELY, AND RELATED MATTERS SUBMITTED BY: Director of Financ~ REVIEWED BY: City Manager~: \)J'" (4/Sths Vote: Yes _NolL) In April 1996, the City Council adopted Ordinance 2669 amending Chapter 3.48 of the Chula Vista Municipal Code to permit the refinancing of regional utility projects upon a finding of City benefit. Council also passed a resolution setting an issuance fee at 25 basis points (1/4 of 1 percent) of the principal amount, payable at the time of issue, plus costs. On September 11, 1998, the City of Chula Vista and San Diego Gas & Electric (SDG&E) entered into a Letter of Agreement grantingChula Vista exclusive rights to be the issuer of SDG&E'slndustrial Development Revenue Bonds (IDBs) on the following conditions: a) the processing of SDG&E's applications for IDBs is completed in a timely maflf1Bf~and b) Chula Vista's issuance charge is no more than 25 basis points (in addition to Chula Vista's administrative costs related to bond issuance); and c) Chula Vista charges no annual fee or costs; and d) Chula Vista's Bond Counsel indicates that Chula Vista's involvement with respect to each issue of IDBs is permissible under the then current tax laws 9-10 ~- \ Page 2, Item :2.. Me~~E1ate=3f2B1tJ4 and that it is not necessary to obtain a Superior Court judgment in a validation action. SOG&E 'has requested that the City refund previously issued series of lOBs. This Bond Resolution authorizes the issuance and sale of up to $686.4 million of lOBs to refund lOBs previously issued by the City of Chula Vista and the City of San Diego to . finance or refinance certain costs of gas and electric facilities for SOG&E. The Chula Vista City Council has the ability to issue tax-exempt bonds for large industrial/manufacturing projects. lOBs are tax-exempt bonds, which can raise funds for manufacturing businesses or energy development projects. RECOMMENDATION: Adopt the resolution, which authorizes the issuance and sale from time to time of up to $686.4 million refunding lOBs to refinance a iike principal amount of outstanding lOBs. BOARDS/COMMISSIONS RECOMMENDATION: Not Applicable. DISCUSSION: The Resolution authorizes the issuance of up to $686,400,000 of refunding lOBs in order to refund all or a portion of the outstanding lOBs issued by the City of Qhula Vista and the City of San Diego for the benefit of SOG&E and its ratepayers in order to generate interest savings. The lOBs will be sold at negotiated sales at such times as SOG&E requests, which will depend on the interest rate market being favorable. The Resolution would remain in effect for approximately 3 years. Specifically, tonight's action: " Finds that the refunding of the outstanding lOBs that financed or refinanced gas and electric generation, transmission and distribution facilities throughout SOG&E's service territory shall directly benefit the citizens of Chula Vista. " Authorizes refunding lOBs to be issued in one or more series in an aggregate principal amount not to exceed $686,400,000. Approves the draft forms of Indenture of Trust, Preliminary Official Statement, Bond Purchase Agreement, Loan Agreement and related documents providing for Ule-terms-tof-issuaUC6-oUbalDBSrllSELOfJ nR rroceB.~andJ:b.e_[e.p-avmenUbereof by SOG&E. and authorizes the Mayor and staff to execute all necessary bond documents in final forms approved by the City Attorney. FindinQ of Local Public Benefit Pursuant to the Chula Vista Municipal Code ("CVMC") Chapter 3.48 the City is authorized to issue lOBs for basic utilities to reduce the cost of providing such service 9.,;,..~1~) ~ ,c;;t'\ Page 3, Item Meeting Date 3/231<J4 :( and thereby reduce the rates of industrial, commercial and residential utility customers within the City~ CVMC Section 3.48.10.0 specifically provides as follows: Encouraging industrial and commercial development and the provision of basic utilities pursuant to this chapter (1) will promote health, safety and welfare of the city, including those public interests enumerated above, and will improve the social, moral, economic and physical condition of the community thereby, and (2) constitutes a municipal affair of the city, a valid exercise of the police powers of the city, and a public purpose in which the city has a peculiar and unique interest. The lOBs to be issued to refund the lOBs originally issued to finance gas and electric generation, transmission and distribution facilities throughout SOG&E's service territory, including Chula Vista, shall directly benefit the citizens of the City by reducing the costs of providing utility service, thereby reducing a cost component in the rates to be paid by industrial, commercial and residential utility customers within the City. This would include rates paid by the City itself for its energy needs. Interest rate reductions are passed on to customers through periodic costs of capital proceedings conducted by the California Public Utilities Commission. These proceedings ensure that a reduction to SOG&E's average debt cost is translated dollar for dollar into reduction to the Company's revenue requirements, which determine the rates charged to customers. A list of the types of facilities underlying the financing is attached to this report as Exhibit A. Summary of Bond Documents The draft transaction documents are substantially the same as the transaction documents used by the City as issuer for previous lOB issues of this type. Copies of the transaction documents are attached to this report as Exhibit B. The Indenture of Trust is between the City of Chula Vista and the Trustee (U.S. Bank) and provides that the Trustee will keep records of the lOBs issued, administer the lOB prlJ.c.eiJrl~acQorrl;mr:A with thA I orlo-Agmernent'-:r:ac.eilIB_loarLtepayrn.e.o!s-lrom SOG&E, and make the required payments to bondholders. The Official Statement is a disclosure document that provides potential buyers of the lOBs the information regarding how the proceeds will be used, what the source of the repayment will be, a legal opinion of tax exemption, and a description of the legal documents supporting the financial structure. ..., ~12 0< --;,..1 Page 4,ltem ~ MWfi~3T2'37e4 The Bond Purchase Aqreement is between the City of Chula Vista, SOG&E and the underwriting team. By this agreement the City agrees to sell, and the Underwriters agree to purchase, all of the lOBs issued at an agreed upon price and yield. The Loan Aqreement is between the City of Chula Vista and SOG&E. It provides that the City will loan the proceeds of the lOBs to SOG&E to repay the loans with respect to the lOBs previously issued by the City of Chula Vista and the City of San Diego and that the loan repayment amounts by SOG&E will be sufficient to pay the principal and interest on the new lOBs issued. The Loan Agreement also establishes the City's compensation as the issuer, and includes SOG&E's agreement to indemnify the City against most risks arising from its role as issuer of the lOBs. Bond Counsel and Special Counsel The firmof Orrick, Herrington & Sutcliffe, LLP is bond counsel for the City as issuer in connection with the issuance of the new lOBs. The bond counsel was selected based on a longstanding involvement in SOG&E's prior lOB issuances. The firm of Jones Hall was selected as special counsel to review transaction documents and to prepare the City's required legal opinion. Jones Hall was selected to represent the City of Chula Vista's interests based on its participation in previous lOBs issued and/or refunded by the City of Chula Vista. SOG&E pays for all counsel, financial advisors and bond issuing costs directly. Except for special legal counsel representing City interests, SOG&E selects and recommends for Chula Vista approval all outside firms that make up the financing team. Bond Counsel has advised the City and SOG&E that (a) Chula Vista's involvement with respect to each issue or refinancing is permissible under applicable laws, (b) a Superior Court validation judgment confirmed the City's authority to issue lOBs for this purpose, and (c) no additional Superior Court validation is required for the proposed refinancings. leqal and Financial Risks In General The City will not be obligated to gay the principal or interesLQ~ELillBs~or tn discharge any other financial liability in connection with the proposed refundings, except from and to the extent of revenues received from SOG&E or from any third- party credit enhancer (for example, any bond insurer). This lOB issuance does not directly impact the City's bonding capacity because there is no governmental commitment to pay debt service on the lOBs in the event loan payments are not timely made by SOG&E. In case of default, the City's credit rating should not be affected. The lOBs are treated by the investors as conduit financing of the City, and payable from the limited revenues received under the Loan Agreement. This is similar to the 9-13 . >> ~ "'--; Page 5, Item Meeting Dare-3123?02I :6 issuance of Special Tax Bonds, where investors look only to the Special Tax Revenues in a Community Facilities District to pay the bonds and not to the City to make up shortfalls. Specific Risks and Responsibilities of the City of Chula Vista as Conduit Issuer of the Bonds 1. The lOBs are Limited Obliqations. . The lOBs are limited obligations of the City payable from reveriues of the City received pursuant to the Loan Agreement. The City ultimately is responsible for collection of SOG&E payments under the Loan Agreement and remittance of these payments to bondholders. This obligation is mitigated by the fact that the Bond Trustee will agree to perform these functions on behalf of the City. 2. Tax Compliance Functions. The City and SOG&E each covenant to comply with various sections of the Internal Revenue Code in connection with the lOBs, regarding rebate payments. The City and SOG&E agree to undertake compliance with certain provisions of the Internal Revenue Code and Treasury Regulations with respect to the lOBs. This may include keeping detailed records with regard to certain types of investments, performing rebate analyses as necessary, making determinations with regard to investment contracts, and filing or causing to be filed certain reports with the IRS. As necessary the City can hire special counsel to assist with these functions and receive reimbursement for the costs from SOG&E. 3. Representations and Warranties. In connection with its tax covenants, the City makes various representations regarding the legal validity of its existence, its authority to. issue the lOBs, restrictions on the use of lOB proceeds and replacement proceeds, as well as representing that the lOBs will not be used as an abusive arbitrage device. Most of the risks created by these statements and mitigated by reliance on opinions of bond counsel and SOG&E indemnities. Further, because the proposed lOBs will be refunding bonds (as opposed to "new money" bonds), the obligation to track the use of proceeds and arbitrage are not significant risk factors. This is because tax-exempt refunding bond proceeds must be used within 90 days for the sole purpose of refunding outstanding lOBs. 4,-AQmiJlistrative-~r:1GiiGr:1~1+Iel1d1+lel1ts-tG-tl:ie-lnd@nture,tl:1@-bGar:1-Agr@e1+I@l1t and various other documents associated with the lOBs generally require the City's approval. In addition, in consultation with SOG&E, the City may determine whether the lOBs are to be held in book-entry or certificated form, and may execute new and/or replacement bond certificates upon registration, transfer, mutilation, destruction, theft or loss of the original lOB bond certificates. Again, the City can hire special counselor other consultants to assist with these functions and receive reimbursement for the costs from SOG&E. 9-14 .....'; r.:: ~,'_V) L<'.\ .....' Page 6, Item fvleetlrlYDffie 3T2Ct7lJ4 2- 5. Litiqation Risk. If there is litigation in connection with the lOBs, or if the IRS should audit the tax-exempt status of the lOBs, the City could incur legal and other consultant expenses. Although the City is indemnified by the SOG&E for such expenses, such indemnification provisions are subject to interpretation by a court. Further, indemnification by SOG&E may not be financially feasible if SOG&E at that time is insolvent. With respect to lOBs the City has already issued or refunded for SOG&E, this risk already exists. Reducing the cost of this debt through the refunding process somewhat reduces the risk of a SOG&E default. 6. Reputation Risk. By attaching its name to the marketing and issuance of the lOBs, the City implicitly warrants throughout the period that the lOBs are outstanding that the lOBs have been validly issued and that interest on the lOBs is tax-exempt. The City may suffer adverse reputational consequences should this not be true, or if the SOG&E should default on its obligations in connection with the lOBs. On the other hand, based on discussions with a trusted financial advisor, given the limited obligation nature of the lOBs, a default is not likely to have a material impact on the 'City's ability to issue traditional debt. FISCAL IMPACT: Given current market conditions and SOG&E's debt portfolio, SOG&E believes that it can refinance approximately $194 million of its outstanding lOBs in 2004. This would result in: Annualized customer rate reductions across SOG&E's Service territory, including the City of Chula Vista $4.5 million Annualized City of Chula Vista customer rate reductions (about 4.9% of total) $ 221,860 City of Chula Vista revenues: up-front issuance fees (0.25% of principal) $ 485,000 The above assumes current tax-exempt bo.n.rLmarkeLc.onditioo8-remaio_io..-efIect SOG&E's decision to refinance, as well as the savings realized, will ultimately be determined by market conditions at the time of the transactions. SOG&E will reimburse the City for any staff costs and administrative expenses associated with this process whether or not Chula Vista ultimately issues the Bonds. SOG&E also pays all legal counsel, financial advisors and bond issuing costs directly, including counsel representing City of Chula Vista interests. Per the 25 basis points set by Council, if the entire $686.4 million of lOBs are issued, the fee paid to the City 9-15 ,,,", I . ,,,~ "-'f r; Page 7, Item Meeti~~23te4 ;1 would be $1,716,000. Within the next 90 days, it is anticipated that SDG&E will refund approximately $194 million in lOBs, which will generate $485,000 in issuance fees for the City. This revenue would be deposited into the City's General Fund. Thereafter, additional lOB issues are likely, but not guaranteed, and will occur at the discretion of SDG&E. Attachments Resolution Description of Financial Facilities (Exhibit A) Bond Documents(Exhibit B) . Indenture of Trust . Preliminary Official Statement . Bond Purchase Agreement . Loan Agreement 9-16 d-'7 , , RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA REGARDING AMENDMENTS TO INDENTURES AND LOAN AGREEMENTS RELATING TO OUTSTANDING INDUSTRIAL' DEVELOPMENT REFUNDING REVENUE BONDS OF THE CITY OF CHULA VISTA ISSUED TO REFINANCE COSTS OF CERTAIN ELECTRIC FACILITIES FOR SAN DIEGO GAS & ELECTRIC COMP ANY AND RELATED BOND INSURAL'ICE TERMINATION AND RELEASE AGREEMENT WHEREAS, the City ofChuIa Vista (the "City") is authorized pursuant to its Charter and Chapter 3.48 of the Municipal Code of the City (the "Municipal Code") to assist in financing or refinancing utility facilities (located within and without the City); and WHEREAS, the Municipal Code provides that the City may issue revenue bonds payable exclusively from the revenues derived from such utility facilities in order to provide funds to finance or refinance such facilities; and WHEREAS, the Municipal Code provides that such revenue bonds shall be secured by a pledge of the revenues out of which such bonds shall be payable; and WHEREAS, the City Council previously adopted Resolution 2004-093 on March 23, 2004, authorizing the issuance and sale of up to $686,400,000 aggregate principal amount of its Industrial Development Revenue Refunding Bonds (San Diego Gas & Electric Company) in one or more series, and authorizing the execution and delivery of one or more indentures of trust and one or more loan agreements in substantially the form presented to the City Council in connection with such Industrial Development Revenue Refunding Bonds (San Diego Gas & Electric Company); and WHEREAS, pursuant to Resolution 2004-093, the City has previously issued its Industrial Development Refunding Revenue Bonds (San Diego Gas & Electric Company) 2004 Series A, B, C, D, E and F (the "2004 Bonds") pursuant to an Indenture of Trust with U.S. Bank National Association, dated as of June 1,2004 (the "2004 Indenture") and loaned the proceeds thereof to San Diego Gas & Electric Company (the "Company") pursuant to a Loan Agreement, dated as of June l, 2004 (the "2004 Loan Agreement") to refinance certain electricity generation, transmission and distribution facilities located within and without the City; and WHEREAS, pursuant to Resolution 2004-093, the City has previously issued its Industrial Development Refunding Revenue Bonds (San Diego Gas & Electric Company) 2006 Series A (the "2006 Bonds") pursuant to an Indenture of Trust with U.S. Bank National Association, dated as of September I, 2006 (the "2006 Indenture") and loaned the proceeds thereof to the Company pursuant to a Loan Agreement, dated as of September 1,2006 (the "2006 Loan Agreement") to refinance certain electricity generation, transmission and distribution facilities located within and without the City; and OHS West:260416565.7 41897-11 SSHlDEC 9-17 WHEREAS, the Industrial Development Refunding Revenue Bonds (San Diego Gas & Electric Company) 2004 Series A, B, C, D and E Bonds (the "XL-Backed Bonds") presently are insured by Financial Guaranty Insurance Policies (the "XL Policies") issued by XL Capital Assurance Inc. ("XL"); and WHEREAS, the Industrial Development Refunding Revenue Bonds (San Diego Gas & Electric Company) 2004 Series F Bonds as well as the 2006 Bonds (together, the "Ambac- Backed Bonds") presently are insured by Municipal Bond Insurance Policies (the "Ambac Policies") issued by Ambac Assurance Corporation ("Ambac"); and WHEREAS, one or more national credit rating agencies have downgraded XL and Ambac and have placed XL and Ambac on credit watch with negative implications; and WHEREAS, the Company has advised the City that the XL-Backed Bonds and the Ambac-Backed Bonds could be remarketed to the general public In most or all interest rate modes at lower costs to the Company if the XL Policies and Ambac Policies are terminated; and WHEREAS, representatives of XL have indicated to the Company that XL is willing to terminate the XL Policies, subject to certain conditions, without requiring any action by the City; and WHEREAS, representatives of Ambac have indicated to the Company that Ambac is willing to terminate the Ambac Policies, subject to certain conditions, including that the Company and the City execute a Termination and Release Agreement with respect to the Ambac Policies, a form of which the Company has presented to the Director of Finance and the Director of Finance has presented to the City Council (the "Termination Agreement"); and WHEREAS, the Company purchased all the Ambac-Backed Bonds when the interest rate period of those Ambac-Backed Bonds converted from an Auction Rate Period to a Weekly Rate Period and when those Ambac-Backed Bonds were tendered for purchase pursuant the iridentures under which the Ambac-Backed Bonds were issued; and WHEREAS, the Company purchased all the XL-Backed Bonds when the interest rate period of those XL-Backed Bonds converted from an Auction Rate Period to a Weekly Rate Period and when those XL-Backed Bonds were tendered for purchase pursuant the indentures under which the XL-Backed Bonds were issued; and WHEREAS, the Company or its parent corporation, Sempra Energy, currently is the beneficial owner of all the 2004 Bonds and all the 2006 Bonds; and WHEREAS, the Company advises that remarketing of the XL-Backed Bonds to the general public will be facilitated if the 2004 Indenture, the 2006 Indenture, the 2004 Loan Agreement and the 2006 Loan Agreement are revised to provide clear procedures and other provisions that are to apply once the XL Policies and Ambac Policies are terminated; and OHS West:260416565,7 4\897.\\ SSHfDEC 9-18 WHEREAS, the Company has presented to the Director of Finance such amendments to the 2004 Indenture, the 2006 Indenture, the 2004 Loan Agreement and the 2006 Loan Agreement in the forms of "Amended and Restated Indentures of Trust" and "Amended and Restated Loan Agreements", respectively, and the Director of Finance has presented these forms of documents to the City Council; and WHEREAS, the 2004 Indenture, the 2006 Indenture, the 2004 Loan Agreement and the 2006 Loan Agreement permit the City to amend the provisions therein subject to the requirements set forth therein; and WHEREAS, Resolution 2004-093 authorizes the Director of Finance to take actions implementing amendments of the 2004 Indenture, the 2006 Indenture, 2004 Loan Agreement and the 2006 Loan Agreement, and to execute the Termination Agreement, without turther authorization from the City Council. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista as follows: SECTION 1. The. City Council hereby finds and determines that the foregoing recitals are true and correct. SECTION 2. The City Council hereby finds and determines that it would be prudent and appropriate for the Director of Finance to exercise the authority previously granted to the Director of Finance under Resolution 2004-093 to approve, execute and deliver the Amended and Restated 2004 Indenture of Trust, the Amended and Restated 2006 Indenture of Trust, the Amended and Restated 2004 Loan Agreement, the Amended and Restated 2006 Loan Agreement and the Termination Agreement in substantially the forms presented to the City Council and authorizes the Director of Finance to. execute the Termination Agreement in substantially the same form as presented herewith and Director of Finance is directed to execute the Termination Agreement. SECTION 3. All resolutions or parts thereof in cont1ict herewith, if any (of which none are known to the City) are hereby repealed to the extent of such cont1ict. SECTION 4. This resolution shall become effective immediately. Presented by: Approved as to form: - "J c"::' Maria Kachadoorian Director of Finance/Treasurer OHS West:260416565.7 41897-11 SSHlDEC 9-19 ~(f? ~ ~- ~ Mayor and City Council City Of Chula Vista 275 Fourth Ave:1ue Chula Vista, Ca 91910 619.691.5044 - 619.476.5379 Fax /TuY1 II i,,~Q) Q2.'1 Y'~/ MEMO - /' OlY OF CHUIA VISTA f!j(~.::(1;{"C",;';<iii,'~i&'i';:\ic]\..,9\'i;:1;:)!jii!1!;t':1f>'!f,,'ii~~;;;::'rJ"i'~~g~~~~~r,~r.r:r$C%'o'iSc1'ii1l~~~ October 27, 2008 TO FROM Lori Peoples, Senior Deputy City Clerk Lorraine Bennett, Deputy City Clerk Mayor Cheryl Cox ~ Jennifer Quijano, Constituent Services Managttf Commission on Aging VIA: RE: .,?f~;,;" .i:j,;;>":""'_ ~~',:i:~l::.j---' ,:?'d,' ~';'';r~~''-c. Mayor Cox would like to recommend Carol Nottley, Lisa Jensen and Ken Lockman for appointment to the Commission on Aging. Carol will replace Helen Stokes, Lisa will replace Sonny Chandler and Ken will replace Mikki Zbikowski. Please place these items on the November 4, 2008 Council agenda for ratification and schedule the oath of office for the November 11, 2008 Council agenda. Thank you. 109'6;0'1;. ,41s/f/ollJ-/j ~~/ ,/,lIs: ,J4IS:'?/)/ ~1C/ /?!,r. .LOC.iC"cOtd c/o ~. /V /10/ cU'/?/el1./1y Se,t/Le (l,1 <(;; c V AVer/ria /CuP;LL(\ vOLA J .