HomeMy WebLinkAbout2009/02/17 Agenda PacketI declare under penalty of perjury that I am
~..~-~--. employed by the City of Chula Vista in the
Office of the City Clerk and that I posted this
°` ~Ri _ document on the bulletin board according iQ~~ r~
own Act requirements.,`
- i3 lIr'l Signed . '""''''
a~rv of
,~'" CHULA VISTA
;j
Cheryl Cox, Mayor
Rudy Ramirez, Councilmember
John McCann, Councilmember
Pamela Bensoussan, Councilmember
Steve Castaneda, Councilmember
James D. Sandoval, City Manager
Bart Miesfeld, City Attorney
Donna Norris, City Clerk
February 17, 2009
6:00 P.M.
Council Chambers
City Hall
276 Fourth Avenue
CALL TO ORDER
ROLL CALL: Councilmembers: Bensoussan, Castaneda, McCann, Ramirez, and Mayor Cox
PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE
SPECIAL ORDERS OF THE DAY
PRESENTATION BY MAYOR COX OF A PROCLAMATION TO BRAD REMP,
ASSISTANT DIRECTOR OF PLANNING & BUILDING/BUILDING OFFICIAL, FOR
HIS RETIREMENT AFTER 19 YEARS OF DEDICATED SERVICE TO THE CITY
OF CHULA VISTA
PRESENTATION BY JOHN TESSITORE, CHAIR AND KATE GOOGINS, VICE
CHAIR OF THE YOUTH ACTION COUNCIL ON THEIR "THEATRE SLAM"
EVENT, SATURDAY, FEBRUARY 28, 2009 FROM 6:00 P.M. TO 9:00 P.M. AT THE
CIVIC CENTER LIBRARY
CONSENT CALENDAR
(Items 1-6)
The Council will enact the Consent Calendar staff recommendations by one motion,
without discussion, unless a Councilmember, a member of the public, or staff requests
that an item be removed for discussion. Ifyou wish to speak on one of these items, please
fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk
prior to the meeting. Items pulled from the Consent Calendar will be discussed
immediately.following the Consent Calendar.
WRITTEN COMMUNICATIONS
Letter of resignation from Susan O'Shaughnessy, member of the Cultural Arts
Commission.
Staff recommendation: Council accept the resignations and direct the City Clerk to post
the vacancies in accordance with Maddy Act requirements.
Page 1 -Council Agenda http://www.chulavistaca.~ov February 17, 2009
2. ORDINANCE OF THE CITY OF CHULA VISTA ADDING CHAPTER 5.05 TO THE
CHULA VISTA MUNICIPAL CODE, ESTABLISHING THE CHULA VISTA AUTO
PARK BUSINESS IMPROVEMENT DISTRICT PURSUANT TO THE PARKING
AND BUSINESS IMPROVEMENT AREA LAW OF 1989 AND LEVYING AN
ASSESSMENT AND CHARGE THEREIN FOR UPGRADING AND PROMOTING
THE AREA (SECOND READING AND ADOPTION)
Adoption of the ordinance establishes the Chula Vista Auto Park Business Improvement
District which will provide aself-funding mechanism to allow for the promotion and
marketing of the automobile dealers within the auto park. This ordinance was introduced
on February 10, 2009. (Deputy City Manager/Development Services Director)
Staff recommendation: Council adopt the ordinance.
3. A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
APPROVING THE EXISTING CITY INVESTMENT POLICY AND GUIDELINES
B. INVESTMENT REPORT FOR THE QUARTER ENDED DECEMBER 31, 2008
Per California Government Code Section 53646, the City Treasurer may annually present
the City's Investment Policy to the City Council to reaffirm or make any changes to the
existing policy. The Investment Policy provides guidelines to ensure management of idle
cash, and state law requires that it be adopted by resolution on an annual basis. The
Quarterly Investment Report provides information on vazious cash balances, investment
transactions and the status of the pooled investment portfolio in accordance with the
Government Code and the Council Investment Policy (Finance Director)
Staff recommendation: Council adopt the resolution and accept the report.
4. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
ACCEPTING BIDS AND AWARDING THE CONTRACT FOR THE "GLENHAVEN
WAY IMPROVEMENTS BETWEEN FIRST AVENUE AND AMY STREET IN THE
CITY OF CHULA VISTA (CIP NO. STL-304)" PROJECT TO HILLCREST
CONTRACTING IN THE AMOUNT OF $516,812.25, AND APPROVING A BUDGET
TRANSFER FROM EXISTING SOUTHWESTERN CHULA VISTA STREET
IMPROVEMENTS PROJECT (STL-306) TO CIP NO. STL-304 FOR SAID PURPOSE
AND AUTHORIZING THE EXPENDITURE OF ALL AVAILABLE FUNDS IN THE
PROJECT
On January 21, 2009, the Director of Public Works received sealed bids for the project.
The work to be done consists of the sidewalk improvements and related street work along
Glenhaven Way between First Avenue and Amy Street. The work also includes all labor,
material, equipment, transportation, protection and restoration of existing improvements
and traffic control necessary for the project. (Public Works Director)
Staff recommendation: Council adopt the resolution.
Page 2 -Council Agenda htto://www.chulavistacaQov February 17, 2009
5. A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
APPROVING ADMINISTERING AGENCY -STATE MASTER AGREEMENT FOR
FEDERAL AID PROJECTS, NO. 11-5203R BETWEEN THE CITY OF CHULA
VISTA AND THE STATE OF CALIFORNIA; AND AUTHORIZING THE
DIRECTOR OF PUBLIC WORKS TO EXECUTE THE AGREEMENT, THE
PROGRAM SUPPLEMENT AND ALL FUTURE PROGRAM SUPPLEMENTS TO
SAID AGREEMENT
B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
APPROVING ADMINISTERING AGENCY -STATE MASTER AGREEMENT FOR
STATE AID PROJECTS, NO. 00223S BETWEEN THE CITY OF CHULA VISTA
AND THE STATE OF CALIFORNIA; AND AUTHORIZING THE DIRECTOR OF
PUBLIC WORKS TO EXECUTE THE AGREEMENT
Prior to the receipt of Federal or State funds for any local Federal or State Aid project, the
City and the State are required to enter into master agreements relative to prosecution of
said projects and maintenance of the completed facilities. The previous master
agreement for Federal Aid Projects and State Aid Projects were approved in 1978 and
2003 respectively. (Public Works Director)
Staff recommendation: Council adopt the resolutions.
6. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
ACCEPTING BIDS AND AWARDING CONTRACT FOR THE "STREET LIGHT
INSTALLATION ALONG FOURTH AVENUE BETWEEN L STREET TO ORANGE
AVENUE (TF-307)" PROJECT TO 3D ENTERPRISES, INC. IN THE AMOUNT OF
$109,000
On January 21, 2009, the Director of Public Works received 15 sealed bids for the project
which is part of the Undergrounding Utility District Program and will install 15 new
street light poles and relocate one existing street light pole in order to have a more
uniform street light pattern along the roadways. (Public Works Director)
Staff recommendation: Council adopt the resolution.
ITEMS REMOVED FROM THE CONSENT CALENDAR
PUBLIC COMMENTS
Persons speaking during Public Comments may address the Council on any subject
matter within the Council's jurisdiction that is not listed as an item on the agenda. State
law generally prohibits the Council from discussing or taking action on any issue noz
included on the agenda, but, if appropriate, the Council may schedule the topic for future
discussion or refer the matter to staff Comments are limited to three minutes.
Page 3 -Council Agenda htta://www.chu]avistaca.EOV February 17, 2009
OTHER BUSINESS
7. CITY MANAGER'S REPORTS
8. MAYOR'S REPORTS
9. COUNCILMEMBERS' COMMENTS
CLOSED SESSION
Announcements of actions taken in Closed Session shall be made available by noon on
Wednesday following the Council Meeting at the Ciry Attorney's office in accordance
with the Ralph M Brown Act (Government Code 54957.7).
10. CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO GOVERNMENT
CODE 54957.6
• Agency designated representatives: Jim Sandoval, Scott Tulloch, Mazcia Raskin,
Bart Miesfeld, Rod Betts, Maria Kachadoorian, Leah Browder
• Employee organizations: CVEA, IAFF, POA, WCE, Mid-Management,
Professional and Unrepresented Groups
11. CONFERENCE WITH LEGAL COUNSEL REGARDING INITIATION OF
LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(C)
One Case
ADJOURNMENT to an Adjourned Regulaz Meeting on Februazy 19, 2009 at 6:00 p.m. in the
Executive Conference Room for Planning Commission Interviews and
thence to the Regular Meeting on March 3, 2009 at 4:00 p.m. in the
Council Chambers. The Regulaz Meeting of February 24, 2009 has been
cancelled.
Materials provided to the City Council related to any open-session item on this agenda are
available for public review at the City Clerk's Office, located in City Hall at 276 Fourth Avenue,
Building 100, during normal business hours.
In compliance with the
AMERICANS WITH DISABILITIESACT
The Ciry of Chula Vista requests individuals who require special accommodations to access,
attend, andlor participate in a City meeting, activity, or service, contact the City Clerk's Office
at (619) 691-5041 at least forty-eight hours in advance of the meeting.
Page 4 -Council Agenda httn:/iwww.chulavistaca.«^oy February 17, 2009
February 8, 2009
Dear Commissioners of Cultural Arts,
As of today, please accept this letter as my resignation.
Sincerely,
Susan O'Shaughnessy
I
r::Jl\\O't\
~\)~
ORDINANCE OF THE CITY OF C~~STA ADDING
CHAPTER 5.05 TO THE CfIl:.DA)~fA MUNICIPAL CODE,
ESTABLISHING THE CHUL}Q'V?fST A AUTO PARK. BUSINESS
IMPROVEMENT DISTRICT PURSUA..NT TO THE PARKING
AND BUSINESS IMPROVEMENT AREA LAW OF 1989 AND
LEVYING AN ASSESSMENT AND CHARGE THEREIN FOR
UPGRADING AND PROMOTING THE AREA
ORDINANCE NO.
WHEREAS, under and pursuant to the provisions of the Parking and Business Improvement
Area Law of 1989, codified as California Streets and Highways Code Section 36500, et seq. (the
"Law"), this Council on January 20, 2009, adopted Resolution No. 2009-010, declaring an intention
to form a parking and business improvement area to be known as the "Chula Vista Auto Park
Business Improvement District," providing for the levy of an assessment and charge to be imposed
herein, fixing the time and place for hearing and g!v~g'ri6tice thereof; and
WHEREAS, Resolution No. 2009-010 was duly published, and copies thereof were mailed to
each business owner in the area, as provided by the Law; and
WHEREAS, after a preliminary review for compliance with the California Environmental
Quality Act (CEQA) staff previously determined that the activity is not a "Project" as defined under
Section 15378 of the State CEQA Guidelines because the action only involves fiscal issues which do
not involve any commitment to any specific project which may result in a potentially significant
physical impact on the environment; therefore, pursuant to Section 15060( c)(3) of the State CEQA
Guidelines the activity is not subject to CEQA; and
WHEREAS, as specified in Resolution No. 2009-010, on February 10, 2009 a hearing
concerning the formation of the area was held before this Council in the Council Chambers at the
City ofChula Vista City Hall, 276 Fourth Avenue, Chula Vista, California, 91910; and
WHEREAS, at the hearing, all protests, both 'Written and oral, made or filed, were considered
and duly overruled and denied and this Council determined that there was no majority protest within
the meaning of Section 36525 of the Law.
NOW, THEREFORE BE IT ORDAINED, by the City Council of the City ofChula Vista, as
follows:
Section 1. That the City Council hereby adds Chapter 5.05 to the Chula Vista Municipal
Code to read as follows:
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Ordinance No.
Page 2
,
'\"'~
1',~,1 ::;'J~'
"" . . ie' . CHAPTER 5.05
.:/.. . .~ ~
CHULA VISTA AUTO. PARK BUSINESS IMPROVEMENT DISTRICT
~. .. - ,
Sections:
5.05.010
5.05.020
5.05.030 .
5.05.040
5.05.050
5.05.060
5.05.070
5.05.080
5.05.090
5.05.1 00 '
5.05.110
5.05.120
5.05.010 - Title.
-"I r'o,
..... ",
.. ").:,
Title
Chu1a Vista Auto Park Business Improvement District Location
Purpose
Services and Programs
Assessment Calculation
Summary of Assessments
Eligible Businesses
Findings
Future Amendments
Annual Review
Advisory Board
Effective'Date
Pursuant to California Streets and Highways Code Section 36500, et seq. (the "Law"), a parking and
business improvement area is hereby established, to be known as the "Chula Vista Auto Park
Business Improvement District," herein called "District."
5.05.020 - Chula Vista Auto Park Business Improvement District Location.
The area to be included in the District includes the Chula Vista Auto Park business community area,
generally described as the commercial properties along Main Street! Auto Park Drive betWeen
Interstate 805 and Nirvana Avenue, within the following address ranges:
Auto Park DrivelMain Street
Auto Park Place
Brandywine Avenue
Main Court
. 505 - 4555
1860 - 1890
1669 - 1690
1810 - 1820
A map depicting the District is attached and incorporated into Ordinance No. 2009- as
"Exhibit A."
5.05.030 - Purpose.
The purpose of forming the District as a parking and business improvement area under the Business
and Improvement Area Law is to provide revenue to defray the costs of services and programs which
will benefit busmesses in the area.
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Ordinance No.
Page 3
5.05.040 - Services and Programs.
The improvements and activities to be provided in the District will be funded by the levy of
assessments. The revenue generated by the assessments to be levied may be utilized for some or all
of the following services and programs:
A. The construction and maintenance of the new vehicle dealers freeway sign will be
included as a service or program funded by the proposed BID. The BID new vehicle
dealers within the BID will participate in the design, operations and maintenance of the
new freeway sign;
B. Pay for marketing and advertising to promote the area as a destinat~n point;
C. Banner program for area to promote the District;
D. Organizational operations and staff; and
E. Day-to-day administration of and staff for the District
5.05.050 - Assessment Calculation.
All businesses operating in the above-described area will be assessed a share of the costs of the
aforementioned services and programs as determined by the following formula:
A. Base amount: In the fIrst six months of adoption of the ordinance, there will be a
mandatory minimum payment from each affected transportation dealer in the amount of
$3,000 per month per business. Car dealers/owners with separate brands pay on the
basis of each business license taken out by City for fIrst six months of assessment
district.
. B. After six months of adoption of the district, the three-tiered system with minimums and
maximums is applied.
C. Tiered system is based upon the fact that all dealers, regardless of type and style of
vehicle, pay a base assessment of $3,000 per month;
1. Any sales above $ 24,000,001 in annualized sales, after the fIrst six months of the
district, will pay at a rate of .0015% of the average quarterly sales. ($ 24 million in
sales per year times .0015 = $36,000 per year).
2. Maximum amount: The maximum amount any dealer can pay is $6,000 per month-
therefore annualized sales above $48,000,001 per year are capped at $6,000 per
month.
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Ordinance No.
Page 4
5.05.060 - Summary of Assessments.
The assessments to be imposed for those District businesses are as follows:
Sample Assessment Methodology Based Upon Existing Six Transportation Dealers - March 2008
Annual Taxable Sales (1%) Factor Annual Assessment Monthly Charge
per dealer (Divided by 12)
$ 10,000,000 .0015 $ 36,000.00 $ 3,000.00
Minimum
$ 20,000,000 .0015 $ 36,000.00 $ 3,000.00
Minimum
$ 24,000,000 .0015 $ 36,000.00 $ 3,000.00
Minimum
$ 30,000,000 .0015 $ 45,000.00 $3,750.00
$ 35,000,000 .0015 $ 52,500.00 $ 4,375.00
$ 40,000,000 .0015 $ 60,000.00 $ 5,000.00
$ 45,000,000 .0015 $ 67,500.00 $ 5,625.00
$ 48,000,000 .0015 $ 72,000.00 $ 6,000.00
$ 52,000,000 .0015 $ 72,000.00 $ 6,000.00
$ 60,000,000 .0015 $ 72,000.00 $ 6,000.00
The above-described assessment is an annual charge and shall be levied, collected and enforced in
the same manner, at the same time, and with the same penalties and interest as in the case of the
business license. For those businesses taxed for other than an annual tax period, the City shall
determine the assessment to be levied upon issuance of the City business tax certificate.
The total assessment collected from any business under the provisions of the ordinance shall not
exceed $6,000.00 per month.
5.05.070 - Eligible Businesses.
The following businesses, as identified by the North American Industrial Codes (N.A.I.e.), shall
be subject to the Chula Vista Auto Park Business Improvement District
Those NAIC Code numbers will include:
Primary Type of business NAlC Code - 2007
New Car Dealers 441110
Used Car Dealers 441120
New Recreational Vehicle 441210
Dealers
All other New Motor Vehicle 441229
dealers
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Ordinance No.
Page 5
Each new transportation sales business license holder, as defined by the NArC code numbers in this
section, within the confines of one common lot is considered one separate entity for assessment
pUrposes, including those situations when a single person or corporation owns multiple new vehicle
dealerships. For example, if one entity has two or more dealerships on site and has a separate
business license for each dealership that entity would be assessed on each business license issued. If,
on the other hand, an entity has multiple dealerships onsite and only has one business license for all
of the dealerships, then that entity would be assessed on only one business license.
5.05.080 - Findings.
That the Council hereby fmds and determines that the public convenience and necessity require the
establishment of the District and that all of the businesses lying within the area will be benefited by
the improvements and activities funded by the assessments proposed to be levied.
5.05.090 - Future Amendments.
That all of the businesses in the area established by this ordinance shall be subject t6 any
amendments to the provisions of the Parking and Business Improvement Area Law of 1989, codified
as California Streets and Highways Code Section 36500, et seq.
5.05.100 - Annual Review.
All of the assessments imposed pursuant to this ordinance shall be reviewed by the City Council
annually.
5.05.110 - Advisory Board.
Principle office holders of the following representative businesses shall make up the District
Advisory Board pursuant to California Streets and Highways Code Section 36530
BUSINESS
Fuller Ford
Fuller Honda
McCune Chrysler, Jeep, Dodge
People's Chevrolet
Chula Vista Toyota
5.05.120 - Effective Date.
This ordinance shall take effect and be in force on March 20, 2009, and no business license for
commercial activities inconsistent with the provisions of this ordinance shall be issued unless
application therefore was made prior to the date of adoption of this ordinance.
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Ordinance No.
Page 6
Section 2. This ordinance will take effect and be in force thirty days after [mal passage.
Presented by
Approved as to form by
James D. Sandoval
City Manager
Bart C. Miesfeld
City Attorney
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CITY COUNCIL
AGENDA STATEMENT
~('f:.. CITY OF
. "1- ~ CHUlA VISTA
FEBRUARY 17, 2009, Item~
ITEM TITLE:
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE EXISTING CITY
INVESTMENT POLICY At'ID GUIDELINES
INVESTMENT REPORT FOR THE QUARTER ENDED
DECEMBER 31, 2008
DIRECTOR OF FIN E/TREASURER r1 fv MIL--
CITY MAt"TAGE
ASSISTANT CITY
SUBMITTED BY:
REVIEWED BY:
4/5THS VOTE: YES D NO 0
SUMMARY
Per California Government Code Section 53646, the City Treasurer may annually present the
City's Investment Policy to the City Council to reaffIrm or make any changes to the existing
policy. The Investment Policy provides guidelines for the investment of idle funds and affords
the City various investment opportunities, as long as the investment is deemed prudent and is
allowable under Government Code Section 53600, et seq. The City received the CertifIcate of
Excellence Award from the Association of Public Treasurers United States and Canada (APT-
US&C) in August 2007 for its Investment Policy, and most .recently, the Policy was reviewed
and adopted by City Council on February 12, 2008. Adoption of the resolution approves
maintaining the existing City Investment Policy and Guidelines.
Transmitted herewith is the City's investment report for the quarter ended December 31, 2008. To
meet the reporting requirements set forth in the California Government Code Sections 53600 et seq.
and the City of Chula Vista Investment Policy, a separate report was distributed to the City Council
as an informational item.
ENVIRONMENTAL REVIEW
The Environmental Review Coordinator has reviewed the proposed activity for compliance with
the California Environmental Quality Act (CEQA) and has deter;mined that the activity is not a
"Project" as defmed 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.
3-1
FEBRUARY 17,2009, Item--3-
Page 2 of3
RECOMMENDATION
Council adopt the resolution and accept the report.
BOARDS/COMMISSION RECOMMENDATION
Not applicable.
DISCUSSION
Investment Policv
The City's Investment Policy and Guidelines adopted on February 12, 2008 by Resolution 2008-54
intended to provide direction for the prudent investment of temporarily idle cash, and for
maximizing the efficiency of the cash management process. The stated goal is to enhance the
economic condition of the City while ensuring the safety of funds invested. The policy includes a
list of specific investment instruments available under the relevant California Government Code
sections, 53600 et seq. and 53635 et seq. Each investment transaction is made in the context of first
ensuring the "safety" of principal, second, investing only for that timeframe that the cash is not
needed for operational purposes ("liquidity"), and last seeking the highest return possible ("yield")
provided that the first two factors are met:
The Policy was amended in February 2008 to include a legislative change that no longer required
the City to submit its Investment Policy and quarterly reports to the California Debt and Investment
Advisory Commission (CDIAC). Also at that time, the Policy was amended to add Investment
Trust of Califomia (CalTRUST) to the list of authorized investments. No new amendments are
recommended at this time.
Quarterlv Investment Report
The total cash and investment portfolio as of December 31,2008 was $188,778,281. This is an
increase of approximately $18,895 from September 30, 2008 to December 31, 2008. For the
quarter ended December 31, 2008, the earned interest yield was 3.404%, a decrease from the
3.794% reported for the quarter ended September 30, 2008, reflecting reinvestment in a lower
interest rate environment and of maturing securities purchased in periods of higher interest rates.
The weighted average maturity as of December 31, 2008 was 2.11 years a decrease from the 2.43
years in the prior quarter. This is due to longer-term investments maturing or being called and
reinvested in shorter-term investments. The weighted average maturity remains sufficiently
liquid to enable the City to meet all operating requirements which might be reasonably
anticipated.
DECISION MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site
specific and consequently the 500 foot rule found in California Code of Regulations section
18704.2(a)(1) is not applicable to this decision.
FISCAL IMPACT
Considering the projected timing of cash receipts and disbursements, including the proceeds
from the Ta.x and Revenue Anticipation Note borrowing and the structure of the Pooled
3-2
FEBRUARY 17,2009, Item ">
~
Page 3 of3
Investment Portfolio, the City should be able to comfortably meet overall cash flow needs over
the next six months. There is no direct fiscal impact by this action.
Prepared by: N. Mandery, Treasury Manager, Finance Dept.
3-3
Item :3 B
~~~
~
~--~
~~"""I':;o..~
CITY OF
(HUlA VISTA
Finance Department
Investment Report for the Quarter Ended December 31, 2008
February 17, 2009
Honorable Mayor and City Council
I am pleased to present this report of investment activity for the quarter ended
December 31, 2008 in compliance with the reporting requirements as set forth in the
California Government Code Sections 53600 et seq. and the City of Chula Vista
Investment Policy. The information presented in this report highlights the investment
activity for the quarter ended as well as provides a comparison to the quarters ended
June 30, 2008 and December 31, 2007. .
Market Overview
The Federal Open Market Committee (FOMC) lowered key Fed Funds rate to a target
range of 0.00% to 0.25% which is the lowest. rate on record. It is expected that weak
economic conditions will keep this rate low for some time. Weak holiday sales, falling
home prices, and further job losses are all contributing factors. Two-year Treasuries
yielding 1.98% at the beginning of the quarter dropped dramatically to 0.76% at the end
of the quarter due to the economic uncertainties.
The Federal Reserve and the U.S. Treasury have instituted various programs to help
stabilize the financial industry such as increasing the FDIC insurance on bank deposits
and guaranteeing the timely payment of principal and interest on certain corporate
bonds issued under their Treasury Liquidity Guarantee Program (TLGP).
Portfolio Comoosition
The table below provides a summary of the City's total investment portfolio as of
December 31, 2008. The Investment Portfolio ($181,376,371) CashfTime Deposits
($7,401,910) and Bank Trustee/Fiduciary Funds ($151,830,682) continue to be invested
in accordance with the Government Code, bond covenants and the Council Investment
Policy as adopted on February 12, 2008.
3-4
Honorable Mayor and City Council
Investment Report Quarter ended 12/31/2008
Page 2 of 5
Summary of Cash and Investments as of December 31, 2008
% of
. Investment Type Par Value Market Value Book Value Portfolio
Investment Portfolio
Federal Securities 117,000,000 117,843,028 116,978,513 33.61%
Pooled Investments 62,403,598 62,588,621 62,403,598 17.93%
Corporate Bonds 2,000,000 2,067,700 1,994,260 0.57%
Subtotal 181,403,598 182,499,349 181,376,371 51.54%
CashlTime Deposits $7,401,910 $7,401,910 $7,401,910 2.13%
Total Cash & Investments Held by the City $188,805,508 $189,901,259 $188,778,281 54.24%
Held by Bank Trustee/Fiduciary Funds (1)
U. S. Government 58,109,566 68,800,538 58,109,566 1670%
Investment Agreements 26,597,072 26,597,072 26,597,072 7.64%
Mutual Funds 52,807,189 52,807,189 52,807,189 15.17%
Cash with Fiscal Agents 2,277 2,277 2,277 0.00%
Restricted Cash 14,314,577 14,314,577 14,314,577 4.11%
Total Held by Bank Trustee/Fiduciary Funds $151,830,682 $162,521,654 $151,830,682 43.63%
Total Portfolio $348,038,100 $359,824,823 $348,010,873 100.00%
(1) Reflects bond proceeds held by trustee in accordance with bond covenants.
The graph below provides a snapshot of the portfolio composition by investment type for
that portion of the portfolio not held by the bank trustee or in a fiduciary fund.
Portfolio Composition
as of December 31,2008
US Government
Agency
64.49%
~
Corporate
Coupon Bonds
1.10%
~ LAlF (State Pool)
33.85%
Portfolio Performance
Portfolio performance is provided in more detail in the attachments to the report. The
summary information provided below includes the total portfolio income recognized for
the last quarter as compared to the prior quarter and the same quarter one year ago.
3-5
Honorable Mayor and City Council
Investment Report Quarter ended 12/31/2008
Page 3 of 5
Total Portfolio Income Recognized
Accrual Basis
Total Portfolio
December 31, 2008
June 30, 2008
December 31,2007
Quarter-End
Net Interest Earnings
Net Gains (Losses) from Sales
Net Total Income Recognized
$ 1,501,602 $ 1,986,186 $ 2,076,031
0 0 0
$ 1,501,602 $ 1,986,186 $ 2,076,031
$ 3,493,652 $ 8,848,047 $, 4,900,508
0 0 0
$ 3,493,652 $ 8,848,047 $ 4,900,508
Fiscal Year-to-Date
Net Interest Earnings
Net Gains (Losses) from Sales
Net Total Income Recognized
Benchmark Comparison
The following graph compares the monthly earned interest yield of the City's Portfolio
Fund with the monthly average yields for the same period of the State of California
Local Agency Investment Fund (LAIF) and the two-year and three-year treasury from
December 2006 through December 2008.
Monthly Benchmark Comparison
6.0% -
2.0%
5.0% -
4.0% -','
3.0% -
1.0%
0.0% -
Dee-06
Mar-O?
Jun-O?
Sep-O?
Dee-O?
Mar-OB
Jun-OB
Sep-OB
Dee-OB
I-+-City _LAIF -'-2yrTreasury -iJ-3yrTreasury I
3-ro
Honorable Mayor and City Council
Investment Report Quarter ended 12/31/2008
Page 4 of 5
Per Section 16.1 of the City's Investment Policy, the two-year U.S. Treasury and the
Local Agency Investment Fund yields are the
performance benchmarks to be used when
determining whether market yields are being
achieved. The three-year U.S. Treasury is added as
an additional point of reference in order to provide
an upper range that is above the weighted average
maturity of the City's portfolio, which is at 770 days.
City
LAIF
2 Year Treasury
770
223
730
Investment Activitv
During the quarter, nine investments totaling $26,700,000 matured/expired or were
redeemed. These monies represent pooled cash received from various funding sources
such as sewer, RDA, TDIF, PAD, General Fund, etc. The majority of these funds were
reinvested through the purchase of seven Federal Agency Securities and one
Temporary Liquidity Guarantee Program (TLGP) Corporate bond totaling $24,000,000
using the City's Investment Policy guideline to ensure safety, liquidity and yield.
Although staff has been reluctant to purchase corporate bonds due to the uncertainties
of the market, the purchase of this corporate bond is through the TLGP, which is a
federally guaranteed program that offers the safety of a treasury note but with a higher
yield. This type of investment also allows for more diversification within the portfolio.
There is no further activity to report on other than routine investments in money market
mutual funds by the City's fiscal agents.
Conclusion
The total cash and investment portfolio as of December 31, 2008 was $188,778,281.
This is an increase of approximately $18,895 from September 30, 2008 to December
31, 2008. For the quarter ended December 31, 2008, the earned interest yield was
3.404%, a decrease from the 3.794% reported for the quarter ended September 30,
2008, reflecting reinvestment in a lower interest rate environment and of maturing
securities purchased in periods of higher interest rates.
The weighted average maturity as of December 31, 2008 was 2.11 years a decrease
from the 2.43 years in the prior quarter. This is due to longer-term investments
maturing or being called and reinvested in shorter-term investments. The weighted
average maturity remains sufficiently liquid to enable the City to meet all operating
requirements that might be reasonably anticipated.
. Considering the projected timing of cash receipts and disbursements, including the
proceeds from the Tax and Revenue Anticipation Note borrowing and the structure of
the Pooled Investment Portfolio, the City should be able to comfortably meet overall
cash flow needs over the next six months. There is no direct fiscal impact by this action.
3-7
Honorable Mayor and City Council
Investment Report Quarter ended 12/31/2008
Page 5 of 5
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 Investment Policy of the City of Chula Vista as stated
in Resolution No. 2008-54 dated February 12, 2008.
Respectfully submitted,
+~
MaMa Kachadoorian
Director of Finance/Treasurer
3-8
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CITY Of
CHUIA VISTA
vestments
lOaged Pool Account 1
maged Pool Account 2
deral Agency Coupon Securities
deral Agency Callables
~rporale Coupon Bonds
vestments
Par
Value
61,399,896.31
1,003,701.96
3,000,000.00
114,000,000.00
2,000,000.00
181,403,598.27
City of Chula Vista
276 Fourth Ave
Chula Vista CA 91910
(619)691-5250
Chula Vista Investment Pool
Portfolio Management
Portfolio Summary
December 31,2008
Market
Valuo
61,584,919.43
1,003,701.96
3,049,687.50
114,793,340.00
2,067,700.00
182,499,348.89
Book lllll of Days to YTM
Value Portfolio Term Maturity
61,399,896.31 33.85 1 1 2.353
1,003,701.98 0.55 1 1 2.210
2,998,500.00 1.85 1,093 904 4.288
113,980,012.50 82.84 1,433 1,182 3.983'
1,994,280.00 1.10 1,095 1,07.2 3.101
181,37,6,370.77 100.00% 931 770 3,404
)tal Earnings
ment Year
lereBe Daily Balance
feclive Rate of Return
CO '-
December 31 Month Ending
531,520.10
181,576,104.86
3.45%
"porting perIod 12101/2008-12131/2008
Ul Dale: 01/3012009 ~ 08:37
Fiscal Year To Date
3,493,651.63
187,832,970.46
3.69%
/-30-0J
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PM (PRf _PM1).SymRopI6.41.202b
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Chula Vista Investment Pool
Portfolio Management Page 2
Portfolio Details - Investments
December 31,2008
Average Purchase Stated Days to YTM Maturity
CUSIP Investment # Issuer Balance Data Par Value Market Value Book Value Rate Term Maturity Date
Managed Pool Accounl1
SYS10197 10197 Local Agency Investment Fund 61,399,898.31 81,584,919.43 61,399,898.31 2.353 2.353
---
Subtotal and Average 68,157,960.83 61,399,896.31 81,584,919.43 61,399,896.31 2.353
Managed Pool Account 2
SYS10507 10507 CalTrust SHort Term Fund 10/27/2008 1,003,701.96 1,003,701.96 1,003,701.96 2.210 2.210
---
Subtotal and Average 1,001,429.23 1,003,701.96 1,003,701.96 1,003,701.96 2.210
Federal Agency Coupon Securities
31396ASL7 10489 Federal Nat" Mlg. Assoc. 06/26/2008 3,000,000.00 3,049,687.50 2.998,500.00 4.2)50 1,093 904 4.288 06/24/2011
Subtotal and Average 2,999,025.54 3,000,000.00 3,049,687.50 2,996,500.00 1,093 904 4.268
Federal Agency Callables
c..:l133XPERl 10494 Federal Home Loan Bank 10/14/2008 3,000,000.00 3,004,687.50 3,013,562.50 3.500 479 400 3.670 02105/2010
1J128X67H3 10490 Federal Home Loan Mortgage Co. 07/0212008 3,000,000.00 3,008,700.00 2,990,825.00 3.250 818 433 3.440 03110/2010
-'
d128X67H3 10495 Federal Home Loan Mortgage Co. 1 a/I 0/2008 3,000,000.00 3,O08,709.90 2,999,125.00 3.250 516 433 3.467 03110/2010
3136F9SA2 10465 Federal Nal' Mtg. Assoc. 06/10/2006 3,000,000.00 3,032,812.50 3,000,000.00 3.265 730 525 3.265 06/10/2010
3128X6CX2 10433 Federal Home loan Mortgaoe Co. 06/15/2007 3,000,000.00 3,060,540.00 2,996,500.00 5.400 1,096 530 5.418 06/15/2010
31398ASH6 10486 Federal Nal'l Mlg. Assoc, 06/16/2008 4,000,000.00 4,052,500,00 3,984,600.00 3.550 730 531 3.749 06/16/2010
31398AQS4 10481 Federal Nal'l Mlg. Assoc. 04/28/2006 4,000,000.00 4,028,750.00 4,000,000.00 3.500 1,095 647 3.500 04/26/2011
31331YQ60 10462 Federal Farm Credil Bank OS/20/2006 4,000,000.00 4,042,500.00 4,000,000.00 3.600 1,095 669 3.600 OS/20/2011
3126X7TS3 10464 . Federal Home Loan Mortgage Co. OS/20/2008 3,000,000.00 3,031,530.00 2,994,900.00 3.600 1,095 669 3.660 OS/20/2011
3126X7TKO 10483 Federal Home Loan Mortgage Co. OS/27/2008 4,000,000.00 4,018,720.00 4,000,000.00 3.675 1,095 676 3.675 OS/27/2011
31331Y2T6 10491 Federal Farm Credit Bank 07/07/2008 4,000,000.00 4,066.250.00 4,000,000.00 4.100 1,095 917 4.100 07/07/2011
3133XRTNO 10492 Federal Home loan Bank 06/05/2008 3,000,000.00 3,009,375.00 3,000,000.00 4.150 1,095 946 4.150 06/05/2011
31331GHH5 10500 Federal Farm Credit Bank 12119/2006 3,000,000.00 3,008,437.50 3,000,000.00 3.000 1,095 1,062 3.000 12119/2011
3128X8CL4 10504 Federal Home Luan Mortgage Co. 12130/2006 3,000,000.00 3,004,710.00 3,000,000.00 2.100 1,095 1,093 2.100 12130/2011
3136F9Z55 10501 Federal Nal'l Mlg. Assoc. 12130/2008 4,000,000.00 4,003,750.00 4,000,000.00 3.000 1,095 1,093 3.000 12130/2011
31331YEB2 10452 Federal Farm CredllBank 11/16/2007 3,000,000.00 3,067,187.50 3,000,000.00 4.840 1,627 1,415 4.840 11/16/2012
3128X8VFO 10459 Federall-tome loan Mortgage Co. 12/1712007 4,000,000.00 . 4,056,516.00 4,000,000.00 4.750 1,827 1,446 4.750 1211712012
31398AKWl 10484 Federal Nal'l Mlg. Assoc. 01/0212008 4,000,000.00 4,000,000.00 4,000,000.00 4.750 1,627 1,462 4.750 01/0212013
3126X6XV3 10466 Federal Home loan Mortgage Co. 01107/2008 3,000,000.00 3,001,800.00 3,000,000.00 4.750 1,627 1,467 4.750 01/07/2013
3126X8Y J9 10467 F:edeml Home Loan Mortgage Co. 01/09/2008 4,000,000.00 4,002,400.00 4,000,000.00 4.500 1,627 1,469 4.500 01/09/2013
3133XNUF4 10463 Federal Home loan Bank 01/14/2008 4,000,000.00 4,005,000.00 4,000,000.00 4.700 1,627 1,474 4.700 01/14/2013
3133XP4T6 10466 Federal Home loan Bank 01/28/2008 4,000,000.00 4,006,750.00 4,000,000.00 4.200 1,627 1,466 4.200 01128/2013
3133XP3CB 10469 Federal Home loan Bank 01129/2008 4,000,000.00 4,085,000.00 4,000,000.00 4.000 1,627 1,489 4.000 01129/2013
3133XP6L3 10472 Federal Home Loan Bank 01/29/2008 5,000,000.00 5,009,375.00 5,000,000.00 4.200 1,627 1,469 4.200 01129/2013
Portfolio CHUL
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Run Data: 0112712009 - 16:51 PM (PRF _PM2) SymRepl 6.41.202b
Chula Vista Investment Pool
Portfolio Management
Portfolio Details - Investments
December 31,2008
Average Purchase
CUSIP Investment '# Issuer Balance Date Par Value Market Value
Federal Agency Callables
3133XPCV4 10473 Federal Harne Loan Bank 01130/2008 5,000,000.00 5,009,375.00
3128X6A63 10471 Federal Home Loan Mortgage Co. 02/04/2008 3,000,000.00 3,007,320.00
3133XPKV5 10474 Federal Homo Loan Bank 02/2012008 2,000,000.00 2,007,500.00
3128X63W4 10475 Federal Home Loan Mortgage Co. 02/28/2008 3,000,000.00 3,014,319.00
3133XQJX1 10478 Federal Horne Loan Bank 04/02/2008 3,000,000.00 3,012,187.50
3133XQJZ6 10477 Federal Home loan Bank 04/16/2008 3,000,000.00 3,037,500.00
3138F9LC5 10498 federal Nat'l Mtg. Assoc. 04/29/2008 3,000,000.00 3,072,167.50
3126X7LK6 10460 Federal Home Loan M0I1gage Co. 05/0112008 3,000,000.00 3,021,210.00
3133XSSD1 10503 Federal Home loan Bank 12/30/2008 3,000,000.00 2,973,750.00
Subtotal and Average 107,938,077 ,02 114,000,000.00 114,793,340.00
Corporate Coupon Bonds
EH6482706 10400 General Electric Cap 12/00/2008 2,000,000.00 2,087,700.00
Co<)
I Subtotal and Average 1,479,612.28 2,000,000.00 2,067,700.00
-'
-' Total and Average 181,576,104.86 181,403,598.27 182,499,348.69
Page 3
Stated Days to YTM Maturity
Book Value Rata Term Maturity Date
5,000,000.00 4.150 1,627 1,400 4.150 01130/2013
3,000,000.00 4.125 1,827 1,495 4.125 02/04/2013
2,000,000.00 4.000 1,827 1,511 4.000 02/20/2013
3,000,000.00 4.375 1,827 1,519 4.383 02/28/2013
3,000,000.00 4.000 1,828 1,552 4.000 04/02/2013
3,000,000.00 3.750 1,828 1,566 3.750 04/18/2013
3.000,000.00 4.000 1,626 1.579 4.000 04/29/2013
2,998,500.00 4.050 1,628 1,581 4.081 05101/2013
3,000,000.00 3.000 1,826 1,824 3.000 12/30/2013
---
113,980,012.50 1,433 1,182 3.963
1,994,260.00 3.000 1,095 1,072 3.101 12/09/2011
---
1,994,260.00 1,095 1,072 3.101
161,376,370.77 931 770 3.404
Run Date: 0112712009 -16:51
Portfolio CHUL
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PM (PRF _PM2) SymRepI6.41.202b
CUSIP
Investment II
o
770 3.404
Issuer
Total Cash and Invostments5
Average Balance
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Run Date: 01/2712009 -16:51
Average
Balance
0.00
181,576,104.86
Chula Vista Investment Pool
Portfolio Management
Portfolio Details - Cash
December 31,2008
Purchase
Dale
Par Value
Market Value
161,403,596.27
162,499,346.69
Slated
Book Value Rate
161,376,370.77
Page 4
Day. to
Term Malurlty
YTM
o
931
Portfolio CHUL
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PM IPRF _PM2) SymRepl 6.41.202b
Chula Vista Investment Pool
Portfolio Management
Activity By Type
December 1,2008 through December 31,2008
Page 5
Purchases Redemptions
or Deposits or Withdrawals
22,000,000.00 16,500,000.00
22,000,000.00 16,500,000.00
2,346.49 0.00
2,34B.49 0.00
Balance
Slated Transaction
CUSIP Investment # Issuer Rate' Date
Managed Pool Account 1 (Monthly Summary)
SYS10197 10197 Local Agency Investment Fund 2.353
Subtotal
Managed Pool Account 2 (Monthly Summary)
SYS10507 10507 CalTrus! SHort Term Fund 2.210
Subtotal
Federal Agency Coupon Securities
Subtotal
Federal Agency Callables
31331GHH5 10500 Federal Farm Credit [lank 3.000 12119/2006
t.l!>133XNJ26 10456 Federal Home Loan Bank 4.625 12119/2006
1l133XQLJ9 10478 Federal Home Loan Bank 4.250 1212212008
~133XSSDl 10503 Federal Harne Loan Bank 3.000 12130/2008
3128X6RZl 10455 Federal Home Loan Mortgage Co. 4.700 1210212008
3128X8SD9 10456 federal Home Loan Mortgage Co. 4.B75 1210512008
312BX7XU3 10486 Federal Home Loan Mortgage Co. 3.500 12110/2008
3128XBCL4 10504 Federal Home Loan Mortgage Co. 2.100 12130/200B
3136F9Z55 10501 Federal Nal'l MIg. Assoc. 3,000 12130/200B
Subtotal
Corporate Coupon Bonds
EH6482796 10499 General Electric Cap 3.000 12109/2008
Subtotal
Total
61,399,B96.31
1,003,701.96
2,99B,500.00
3,000,000.00 0.00
0.00 3,000,000.00
0.00 2,700,000.00
3,000,000.00 0.00
0.00 3,000,000.00
0.00 4,000,000.00
0.00 3,000,000.00
3,000,000.00 0.00
4,000,000.00 0.00
13,000,000.00 15,700,000.00
1,994,260.00 0.00
1,994,260.00 0.00
36,996,606.49 32,200,000.00
113,980,012.50
1,994,260.00
161,376,370.77
RUIl Dale: 01/27/2009 - 16:51
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Chula Vista Investment Pool
Portfolio Management Page 6
Activity Summary
December.2007 through December 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 to Maturity
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
August 2008 40 187,838,582.40 3.771 3.824 2.779 1 0 1,042 908
September 2008 38 183,108,249.07 3.742 3.794 2.774 0 2 1,035 886
October 2008 39 181,079,117.14 3.665 3.716 2.661 3 2 1,008 849
<.Jlovember 2008 37 176,580,470.61 3.597 3.647 2.568 0 2 982 B08
I December 2008 37 181,376,370.77 3.357 3.404 2.353 5 5 931 770
......
.j:>, Average 40 186,860,978.63 3.994% 4.049% 3.305 3 3 1,020 851
Run Dale: 01127/2009 -16:51
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Chula Vista Investment Pool
Portfolio Management Page 7
Distribu.tion of Investments By Type
December 2007 through December 2008
December January February March April May June July August September October November December Average
Security Type 2007 2008 2008 2008 2008 2008 2008 2008 2008 2008 2008 2008 2008 by Period
Managed Pool Account 1 39.8 36.2 30.8 30.2 29.4 33.5 29.4 36.3 30.4 31.9 31.2 31.7 33.9 32.7%
Short Term Pool Accounts
Managed Pool Account 2 0.6 0.6 0.1%
Federal Agency Coupon Securilles 1.7 1.5 1.6 1.6 1.7 1.7 1.7 0.9%
Federal Agency Callables 54.1 60.8 67.6 68.1 69.1 66.5 69.0 62.2 68.0 66.5 67.2 66.1 62.8 65.2%
Corporate Coupon Bonds 6.1 3.0 1.7 1'.7 1.6 1.1 1.2%
(.oJ
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Chula Vista Investment Pool
Portfolio Management
Interest Earnings Summary
December 31,2008
Page 8
December 31 Month Ending
Fiscal Year To Date
CD/CouponlDiscount Investments:
Inlerest Collected
Plus Accrued Interest at End of Period
Less Accrued Interest at Beginning of Period
Less Accrued Interest at Purchase During Period
672,231.25
1,224,425.66
1,515,696.94)
0.00)
(
(
2,815,381.40
1,224A25.66
1,357,444.46)
58,583.33)
interest Earned during Period
Adjusted by Capital Gains or Losses
380,959.97
0.00
2,623,779.27
0.00
Earnings during Periods
380,959.97
2,623,779.27
(.0.)
I
Pass Through Securities:
Interest Collected
Plus Accrued Interest at End of Period
Less Accrued Interest at Beginning of Period
Less Accrued interest at Purchase During Period
0.00
0.00
0.00)
0.00)
0.00
0.00
0.00
0.00
0.00
( 0.00)
( 0.00)
0.00
0.00
0.00
0.00
972,861.39
406,077.33
509,066.36)
869,872.36
3,493,651.63
0.00
3,493,651.63
....
Ol
Interest Earned during Period
Adjusted by Premlurns and Discounts
Adjusted by Capltai Gains or Losses
Earnings during Periods
Cash/Checking Accounts:
Interest Collected
Plus Accrued Interest at End of Period
Less Accrued Interest at Beginning of Period
0.00
Interest Earned during Period
2,348.49
406,077.33
257,865.69)
150,560.13
531,520.10
0.00
Total Interest Earned during Period
Total Capital Gains or Losses
Total Earnings during Period
531,520.10
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Chula Vista Investment Pool
Received Interest
Sorted by Date Received - Grouped by Fund
Received December 1, 2008 - December 31, 2008
City of Chula Vista
276 Fourth Ave
Chula Vista CA 91910
(619)691-5250
ClIT OF
(HUlA VISTA
Date Received
Investment #
Security
Type
Par
Value
Current
Rale
Interest
CUSIP
Date Due Dale Received
Amount Due
Amount Received
Variance
Fund: Chula Vista Investment Pool
Decembor 2008
3128X6RZl 10455 MCl 0.00 4.700 1210212008 1210212008 70.500.00 70,500.00
3128X6SD9 10456 MCl 0.00 4.875 12105/2006 1210512008 97,500.00 07,500.00
3128X7XU3 10486 MCl 0.00 3.500 12110/2008 12110/2008 52,500.00 52.500.00
3136FOSA2 10485 MCl 3,000,000.00 3.285 12110/2008 12110/2008 48,975.00 48,075.00
3128X6CX2 10433 MCl 3,000,000.00 5.400 1211512008 1211512008 81,000.00 81,000.00
31306ASH6 10488 MCl 4,000,000.00 3.550 12118/2008 12116/2008 71,000.00 71,000.00
3128X6VFO 10459 MCl 4,000,000.00 4.750 1211712008 12117/2008 05,000.00 05,000.00
3133XNJ26 10458 MCl 0.00 4.625 12110/2008 1211012008 .69,375.00 69,375.00
3133XQLJ9 10478 MCl 0.00 4.250 1212212008 1212212008 22,631.25 22,631.25
31396ASL7 10489 FAC 3,000,000.00 4.250 12124/2008 . 12124/2006 63.750.00 63.750.00
Subtotal 672,231.25 672,231,25
Chula Vista Investment Pool Subtotal 672,231.25 672,231.25
Total 672,231.25 672,231.25
Total Cash Overpayment 0.00
Total Cash Shortfall 6.00
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Chula Vista Investment Pool
Received Interest
Received December 1, 200B - December 31, 200B
Page 2
Dale Received
Cash Accounts
Investment #
Security
Type
Par Current
Value Rate
Interest
CUSIP
Date Received
Amount Received
Fund: Chula Vista Investment Pool
Subtotal
2.346.49
2,346.49
December 2008
SYS 1 0507
10507
PAl
1,001.353.47
2.210
12/31/2006
Chula Vista Investment Pool Subtotal
2,346.49
Total
2,346.49
c.u
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00
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~:~~~
CllY OF
CHULA VISTA
CUSIP
Investment #
Security
Type
Par
Value
Chula Vista Investment Pool
Accrued Interest
Sorted by Issuer - Investment Number
December 1"2008 - December 31,2008
Maturity
Date
CalTrust SHort Term Fund
SYS10507 10507 PAl 1,003.701.96
Subtotal 1,003,701.96
Federal Farm Credit Bank
31:i31YEB2 10452 MCl 3,000,000.00 11/1612012
31331YQBO 10462 MCl 4,000,000.00 05120/2011
31331Y2TB 10491 MCl 4,000,000.00 07/07/2011
31331GHH5 10500 MCl 3,000,000.00 12/19/2011
Subtotal 14,000,000.00
Federal Home Loan Bank
3133XNJ26 10458 MCl 0.00 12/19/2011
~133XNUF4 10463 MCl 4,000,000.00 01/1412013
--tl133XP4 T8 10468 MCl 4,000,000.00 01/28/2013
~133XP3C6 10469 MCl 4,000,000.00 01/29/2013
3133XP6L3 10472 MCl 5,000,000.00 01129/2013
3133XPCV4 10473 MCl 5,000,000.00 01/3012013
3133XPKV5 10474 MCl 2,000,000.00 02/2012013
3133XQJXl 10476 MCl 3,000,000.00 04102/2013
3133XQJZ6 10477 MCl 3,000,000.00 04116/2013
3133XQLJ9 10478 MCl 0.00 04111/2013
3133XRTNO 10492 MCl 3,000,000.00 08/05/2011
3133XPERl 10494 MCl 3,000,000.00 02/05/2010
3133XSSDl 10503 MCl 3,000,000.00 12/3012013
Subtotal 39,000,000.00
Federal Home Loan Mortgage Co.
Current
Rate
Adjusted Acc'd Int.
at Purchase
During Period
. Beginning
Accrued Interest
2.210
2,348.49 0.00
2,346.49 0.00
6,050.00 0.00
4,400.00 0.00
65,600.00 0.00
0.00 0.00
76,050.00 0,00
62,437.50 0.00
71,544.44 0.00
57,400.00 0,00
54,222.22 0.00
71,166.67 0.00
69,743.08 0.00
22,444.44 0.00
19,666.67 0.00
14,062.50 0.00
15,937.50 0.00
40,116.67 0.00
33,833.33 0.00
0.00 0.00
532,575.00 0.09
4.840
3.800
4.100
3.000
4.625
4.700
4.200
4.000
4.200
4.150
4.000
4.000
3.750
4.250
4.150
3.500
3.000
City of Chula Vista
276 Fourth Ave
Chula Vlsla CA 91910
(619)691-5250
Interest Interest . Ending
Earned Received Accrued Interest
2,266.49 2.348.49 2.266.49
2,266.49 2,348.49 2,266.49
12,100.00 0.00 18,150.00
12.000.00 0.00 16,400.00
13,686.67 0:00 79,286.87
3,000.00 0.00 3,000.00
40,786.87 0.00 116,816.87
6,937.50 69,375.00 0.00
15,888.87 0.00 87,211.11.
14,000.00 0.00 71,400.00
13,333.34 0.00 67,555.56 '"
17,500.00 0.00 88,668.67
17,291.66 0.00 87,034.72
6,666.67 0.00 29,111.11
10,000.00 0.00 29,666.67
9,375.00 0.00 23,437.50
6,693.75 22,631.25 0.00
10,375.00 0.00 50,491.67
8,750.00 0.00 42,583.33
250.00 0.00 250.00
136,839.59 92,006.25 577,408.34
3128X8CX2 10433 MCl 3,000,000.00 06/15/2010 5.400 74,700.00 0.00 13,500.00 81,000.00 7,200.00
3128X6RZl 10455 MCl 0.00 12/02/2011 4.700 70,108.35 0.00 391.86 70,500.00 0.D1
3128X6SD9 10456 MCl 0.00 12/05/2012 4.875 95,333.33 0.00 2,166.87 97,500.00 0.00
3126X6VFO 10459 MCl 4,000,000.00 12/17/2012 4.750 86,555.56 0.00 15,833.33 95,000.00 7,388.89
3128X6XV3 10466 MCl 3,000,000.00 01107/2013 . 4.750 57,000.00 0.00 11,875.00 0.00 68,875.00
3128X6YJ9 10467 MCl 4,000.000.00 01109/2013 4.500 71,000.00 0.00 15,000.00 0.00 88,000.00
3128X6A63 10471 MCl 3,000,000.00 02/04/2013 4.125 40,218.60 0.00 10,312.50 0.00 50,531.10
3128X63W4 10475 MCl 3,000,000.00 02/28/2013 4.375 33,906.25 0.00 10,937.50 0.00 44,843.75
. 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 Dale: 01/27J2009 -16:52
AI (PRF _AI) SymRepl 6.41.202b
Report Ver. 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
CUSIP Investment # Type Value Date Rate Accrued Interest During Period Earned Received Accrued Interest
Federal Home Loan Mortgage CO.
3128X7LK8 10480 MCl 3,000,000.00 0510112013 4.050 10,125.00 0.00 10,125.00 0.00 20,250.00
3128X7TKO 10483 MC1 4,000,000.00 0512712011 3.8.,5 1,722.22 0,00 12,910.0" ,0.00 14,030.00
3128X7TS3 10484 MC1 3,000,000.00 OS/20/2011 3.800 3,300.00 0.00 9,000.00 0.00 12,300.00
3128X7XU3 10488 .MC1 0.00 08/10/2010 3.500 49,0"5.00 0.00 2,825.00 52,500.00 0.00
3128X87H3 10490 MC1 3,000,000.00 03/10/2010 3.250 21,937,50 0.00 0,125.00 0.00 30,082.50
3128X87H3 10495 MC1 3,000,000.00 03/10/2010 3.250 21,93".50 0.00 8,125.00 0.00 30,082.50
3128X8CL4 10504 MC1 3,000,000.00 12/30/2011 2.100 0.00 0.00 175.00 0.00 175.00
Subtotal 39,000,000.00 63",719.31 0.00 131,108.33 396,500,60 372,327.64
Federal Nat'l Mtg. Assoc.
31308AKW1 10464 MC1 4,000,000.00 01/02/2013 4..,50 '(8,838.89 0.00 15,833.33 0.00 94,4l2.22
31308AQS4 10481 MC1 4,000,000.00 04/28/2011 3.500 12,833.33 0.00 11,686.67 0.00 24,500.00
3138F9SA2 10485 MCl 3,000,000.00 08/10/2010 3.265 48,528.25 0.00 8,182.50 48,075.00 5,713.75
31308ASH8 10488 MCl 4,000,000.00 08/16/2010 3.550 65,083.33 0.00 11,833.34 71,000.00 5,018.0"
31308ASL7 10489 FAC 3,000,000.00 08/24/2011 4.250 55,604.17 0.00 10,625.00 63,750.00 2,479.17
3138F9LC5 10496 MCl 3,000,000.00 04/29/2013 4.000 10,688,67 0.00 10,000.00 0.00 20,666,67
tel3UFOZ55 10501 MC1 4,000,000.00 12/3012011 3.000 0.00 0.00 333.33 0.00 333.33
I
N Subtotal 25,000,600.00 . 269.352.64 0.00 86,454.17 183,725.00 154,081,81
e
General Electric Cap
EH8482798 10499 MC2 2,000,000.00 12/0912011 3.000 0.00 0.00 3,791.21 0.00 3,"01.21
Subtotal 2,000,000.00 0.00 0.00 3,791.21 0.00 3,791.21
Local Agency Investment Fund
SYS10107 10197 LAl 61,300,806.31 2.353 255,517.20 0.00 148,203.64 0.00 403,810.84
Subtotal 81,399,896.31 255,517.20 0.00 148,293.84 0.00 403,810.84
Total 181,403,598,27 1,773,582,64 0.00 531,520.10 674,579,74 1,830,503,00
. 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 Oale: 01/2712009 - 16:52
AI (PRF _AI) SymRepl 6.4 1.202b
Rap0l1 Vcr. 5.00
~Jf?
~
~
~~~~
CllY OF
(HUlA VISTA
Investment II
lov.
Typa
Purchase
Date
Issuer
10455 MC1 12103/2007
Federal Home Loan Mortgage Co.
10456 MC1 12105/2007
Federal Home Loan Mortgage Co.
10486 MC1 06/10/2006
Federal Home Loan Mortgage Co.
10456 MC1 12119/2007
Federal Home Laan Bank
10478 MC1
Federal Home Loan Bank
04/17/2006
w
I
N
-'
Run Date: 01/2712009 -16:53
Chula Vista Investment Pool
Realized Gains and Losses
Sorted By Maturity/Sale/Call Date
Sales/Calls/Maturities: December 1, 2008 - December 31,2008
City of Chuta Vista
276 Fourth Ave
Chula Vista CA 91910
(619}691-5250
Par Value Sale Date Days Held Total
Maturlty/Sala Realized Total Total
Current Rate Maturity Date Term Book Value Proceeds Gain/Loss Earnings Nat Earnings Yiald 365
3,000,000.00 1210212006 365 3,000,000.00 3,000,000.00 0.00 140,606.33 140,606.33 4.667
4.700 1210212011 1,460
4,000,000.00 12/0512006 366 4,000,000.00 4,000,000.00 0.00 185,000.00 195,000.00 4.662
4.675 1210512012 1,627
3,000,000.00 12110/2006 163 3,000,000.00 3,000.000.00 0.00 52,500.00 52,500.00 3.480
3.500 06/10/2010 730
3,000,000.00 12119/2006 366 3,000,000.00 3,000,000.00 0.00 136,750.00 136,750.00 4.612
4.625 12119/2011 1,461
2,700.000.00 1212212006 249 2,700,000.00 2.700.000.00 0.00 78,083.75 78,093.75 4.240
4.250 04111/2013 1,820
Total Realized Gains/losses 15,700,000.00 15,7.00,000.00 0.00 604,952.06 604,952.08 4.412
Pori folio CHUL
CC
CG (PRF _CGRt) SymRepI6.41.202b
Report Ver. 5.00
~3'il'>lT~~~1F"~B""j'~"""-r-~W~f"",~
. Jx.OO:J:.\1jli'f~"'i;;J.'t>.~ ~V~I,.1'JJU~:il'A.".n..mgl.~~.~.I\J,1~:i.~~l;t\!Il...i~n~i";4.1~!I;'{!.I.il,Jl'iiliiMlial
lan-08 4,166.67
(30,333.33) (30,333.33) Sep-08
(30,333.33) (30,333.33)
(1,912.50) (1,912.50) Oct-DB
20,125.00 20,125.00 Feb-09
8,125.00 8,125.00 Mar-09
28,250.00 (1,912.50) 26,337.50
--,,,;."."m~""'_".~.""''''''l''''"r:lfl'~~- rrw~"'~...>>:'<?tl!m!J~I1~:[fj
!"l t;~"\!"~""'~~~.~'t""'v,i" ;ii~<'~ ~"..y.,,, '" "I:!':,{.{,=r;n' , . ,~. . . ~
,f.I,;,'~)'~lS;l1~~jiR;ll.M.f;.t\~lr.,,;;'k ,tl.:' ~--r.1irR.,,).,"'. :~.~i:_~t~",!~-tA. ~U~"tl... ~ . :'~1. c ~~ : _~ ~ _ d.\l . to
Feb-OB No Change in Accrued Interest
Mar-OB No Change in Accrued Interest
Apr-08 04/11/2013 10478
May-DB No Change in Accrued Interest
Jun-08 06/11/2008 10460
Jun-OB 06/04/2010 10488
Jun-08 06/12/200B 10462
Jul-08 03/10/2010 10490
1,912.50
1,912.50
1,912.50
708.33
(416.67)
(3,750.00)
(4,166.67)
(416.67)
708.33
(3,750.00)
(3,458.34)
708.33
30,333.33
30,333.33
30,333.33
30,333.33
Aug-OB No Change In Accrued Interest
~p-OB 03/10/2010 10490
N
N
Apr-08 04/11/2013 10478
Oct-OB 02/05/2010 10494
Oct-OB 03/10/2010 10495
Nov-OB No Change in Accrued Interest
Feb-08
4,166.67
Mar-OB
4,166.67
Oct-08
~pr-08
6,079.17
Jun-08
Dee-08
Jun-08
May-08
X
6,079.17
X
lun-08
2,620.83
Sap-DB
lul-08
32,954.16
Aug-08
32,954.16
Sep-OB
2,620.83
X
Oct-08
28,958.33
28,958.33
Dec-OB
Dee-08
06/04/2010 10488
(708.33)
(708.33)
(708.33)
(708.33)
Nov-08
Dee-08
X
Dee-OB
28,250.00
Schedule of Cash/Investments with Fiscal Agent
as of December 31. 2008 Fiscal Maturity Purchase Contraclual Federal
Bond Issue Security Description Agent Type Dale Date Par Value Mkl Value Cost Yield
94 CV Pension Oblig Bd 1st American Trs Oblig CL 0 Corp Tr US Bank MF Mutual Funds 88 88 88 Var
COP 2000A Financing Proj Miiestone Treasury Oblig FD Prem Shr US Bank MF Mulual Funds 2,004,333 2,004.333 2.004,333 Var
Cash US Bank CFA Cash-Fiscal Agt 114 114 114
AIG-MF LLC Invest Agrmt US Bank IA Invtmnt Agrmt 27-Aug-20 11-0ct-00 6.340
RDA 2000 Tax Alloc Bonds AMBAC CAP Funding US Bank IA Invtmnt Agrmt 01-Sep-30 31-0cl-00 6.180
Miiestone Treasury Oblig FD Prem Shr US Bank MF Mutual Funds Var
CV Public Financing Authority Mileslone Treasury Oblig FD Prem Shr US Bank MF Mutual Funds 2,731,471 2,731,471 2,731,471 Var
2001-1/2001-2 RAD Trinity Plus Funding Co Invst Agrmt US Bank IA Invtmnt Agrmt 02-Sep-17 04-Sep-Ol 1,201,778 1,201,778 1,201,778 5.600
Trinity Plus Funding Co Invst Agrmt US Bank IA Invtmnt Agrmt 02-Sep-17 04-Sep-0 1 426,500 426,500 426,500 5.600
2002 COP Police Faciiities US Treasury US Bank USG US Trsy Noles 2,021,563 2,184,540 2,184,540 5.835
Milestone Treasury Oblig FD Prem Shr US Bank MF Mutual Funds 109.910 109,910 109,910 Var
CFD 06-llmprovemenl Area A Cash US Bank CFA Cash-Fiscal Agt
Milestone Treasury Oblig FD Prem Shr US Bank MF Mutual Funds 4,558,977 4,558,977 4,558,977 Var
Local Agency Investment Fund US Bank IA Invmnt Agrmt 4,718,547 4,718,547 4,718,547 Var
2003 Refunding Cert of Participation FSA Capital Mgmt Invst Agreement US Bank IA Invmnt Agrmt 01-Sep-12 l1-Jun-03 1,132,000 1,132,000 1,132,000 3.100
Miiestone Treasury Oblig FD Prem Shr US Bank MF Mutual Funds 215 215 215 Var
CFD 2001-2 McMillin-Olay Ranch 6 Mileslone Treasury Oblig FD Prem Shr US Bank MF Mutual Funds 1,139,257 1,139,257 1,139,257 Var
Cash US Bank CFA Cash-Fiscal Agt
CFD 08-1 Otay Ranch Viliage 6 Miiestone Treasury Oblig FD Prem Shr US Bank MF Mutual Funds 2.578.754 2,578,754 2,578,754 Var
LAIF US Bank IA Invmnt Agrml 2,404,360 2,404,360 2,404.360
Cash US Bank CFA Cash-Fiscal Agl
CFD 07-1 McMillin Otay Rnch Vlig 11 Milestone Treasury Oblig FD Prem Shr US Bank MF Mutuat Funds 475,735 475,735 475,735 Var
LAIF US -Bank IA Invmnt Agrmt 2.351,238 2,351,238 2,351,238
Cash US Bank CFA Cash-Fiscal Agt
CFD 06-1 Improvement Area B Miiestone Treasury Oblig FD Prem Shr US Bank MF Mulual Funds 2,033,972 2,033,972 2,033,972 Var
Cash US Bank CFA Cash-Fiscal Agt 0
W 2004 COP Civic Center Phase 1 Dreyfus Inst'l Res Treasury BNY MF Mutual Funds 1,005,713 1,005,713 1.005,713 Var
I FSA Capital Managemenl Services LLC BNY IA Invmnt Agrmt 01-Mar-34 16-Sep-04 2,395,911 2,395,911 2,395,911 5.205
N Cash BNY CFA Cash-Fiscal Agt
W 2006 COP Civic Cenler Phase II Dreyfus Inst'l Res Treasury BNY MF Mutual Funds 714,944 714,944 714,944 Var
FSA Investment A9reemenl BNY IA Invmnl Agrmt 01-Mar-36 17-Mar-2006 1,272,459 1,272,459 1,272,459 5.010
CVPF A 2005 Rev Refunding Ser A Miiestone Treasury Oblig FD Prem Shr US Dank MF Mutual Funds 13,157,300 13.157,300 13,157,300 Var
Citigroup GIC #871615.1 US Bank IA Invmnl Agrmt 01-Sep-2032 6,436,873 6,436,873 6,436,873 4.889
US Treasury US Dank USG US Trsy Notes 56.088,004 66,615,998 66,615,998 Var
Cash BNY CFA Cash-Fiscal Agl 2.163 2,163 2.163
CFD 01-1 Improvement Area D Miiestone Treasury Oblig FD Prem Shr US Dank MF Mutual Funds 7,816,945 7,816,945 7,816,945 Var
CFD 12-1 McMiliin Otay Rnch Vlig 7 Milestone Treasury Oblig FD Prem Shr US Dank MF Mutual Funds 4,077.007 4,077,007 4.077,007 Var
AIG Matched FOG Corp Invst Agrmt US Bank IA Invmnt Agrmt
CFD 13-1 Otay Ranch Vlig 7 Miiestone Treasury Oblig FD Prem Shr US Bank MF Mulual Funds 3,627,237 3,627,237 3,627,237 Var
LAIF US Dank IA Invmnt Agrmt 1,233,736 1,233.736 1,233.736
Cash US Bank CFA Cash-Fiscal Agl
CFD 07-IB McMillin Otay Rnch Vlig 11 Miiestone Treasury Oblig FD Prem Shr US Dank MF Mutual Funds 1,174,374 1,174;374 1.174.374 Var
LAIF US Bank IA Invmnt Agrml 991.358 991,358 991,358
Cash US Dank CFA Cash-Fiscal Agt
06 Sr. Tax Alioc Ref Bonds A Milestone Treasury PS Fund # M5 US Bank MF Mutual Funds 365 365 365 Var
Rabobank Internalional NY Branch US Bank IA Invmnt Agrmt 09-Aug-2027 l1-Sep-2006 1,027,949 1,027.949 1.027.949 4.980
06 Subordinate Tax Alioc Ref Bds Milestone Treasury PS Fund # M5 US Bank MF Mutual Funds 2,621 2,621 2,621 Var
CitiGroup Financial Products, Inc. GIC US Bank IA Invmnl Agrmt 26-Sep-2027 ll-Sep-2006 1,004.365 1,004,365 1,004,365 5.097
RDA 2008 Tax Alioc Ref Bonds Milestone Treasury PS Fund # M5 US Bank MF Mutual Funds 30-Sep-2036 22-Jul-2008 5,597,972 5,597,972 5,597,972 Var
CDBG Section 108 Loan Cash - Interest Bearing Acct BofA RC Restricted Cash 9,466,937 9,469,808 9,466,937 Var
Orange Tree MHP Cash - Interest Bearing Accl BofA RC Restricted Cash 590,561 590,561 - 590,561 Var
RDA Housing Program Cash - Interest Dearing Acct DofA RC Restricted Cash 3,886,445 3,886,445 3,886,445 Var
CDBG HOUSing Program Cash - Interesl Bearing Accl BofA RC Restricted Cash 370,633 370,633 370,633 Var
Grand Total as of December 31, 2008 151,830,682 162,524.524 162,521,654
Fiiename:J:\finance\data~nvest~nv09.xls
j:finance\dala\in\ll3st\tnv09.xls
City of Chura Vista
Cash and Investments
31-Dec-08
.. DRAFT ..
INVESTMENTS
Bank of New York Custodial Account
State of CA Local Investment Agency Fund
State of CA Local Investment Agency Fund
CalTrust Short Term 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 12131/2008
CashlTime Deposits as of 12/31/2008
j:finance\data\Cash and Investments FY0809 Deoj3J z.~08.xls
Amount
118,944,523
23,403,600
37,996,297
1,003,702
(3,702)
181,344,419
339,377
339,377
6,780,068
94
3,813
302,134
7,086,110
5,800
5,800
310,000
310,000
189,085,706
7,401,910
Draft, as of 01/28/2009
CITY OF CHULA VISTA
INVESTlVIENT POLICY AND GUlDELTh-:ES
FISCAL YEAR 2008/2009
1.0 Pu rp os e: ............ ............ ...... .................... ...... ........... ............:.......... ............ ............... .............. 2
2.0 Po li cy: ............................ .................. .............. ........ ........... ......... ....... ................ .............. .......... 2
3.0 Sc 0 p e: ........................................... ........... ................................. .......... ........ ........... ................... 2
4.0 Pru den c e: ....... ..... ........... ............................. ......... .............. ............... .......... ..... .............. .......... 3
5.0 0 b j ectiv e: .... ........ ........ ........................ .......... ........................................................................... 3
6.0 D elega tion 0 f Au th 0 rity: ...... ....... ........... ................ ............................ ........ ........ ............ .......... 4
7.0 Ethics and Conflicts of Interest: ............................................................................................ 4
8.0 Authorized Financial Dealers and Institutions: ................................................................... 4
9.0 Authorized & Suitable Investments: ..................................................................................... 5
10.0 Portfolio Adjustments: ....................................... .................. ................................................ 8
11.0 Colla teraliza tio n: ......... ............ .......... ...............;......... .......................... ............ ..................... 9
12.0 Safekeeping and Custody: .................................................................................................... 9
13.0 D iv ers ifi ca ti 0 n: ............ ......... ............................................ ..................................................... 9
14.0 lVIaxim um Maturities: ........................................................................................................ 10
15.0 Internal Control:... ... ................................................................................................ ........... 10
16.0 Perfo rmance Standards: .................................................................................................... 10
17.0 Re po rtin g: ..... ......... ............... ........... ................ ...................... ........ ..... ............ ..................... 11
18.0 Investment Policy Ad 0 ptio n: ................................................. ............................................. 12
G L 0 SSAR Y...................... ...... .... ....................... ....... .............. .............. ................. .............. ........ 13
3-25
CITY OF CHULA VISTA
INVESTMENT POLICY AND GUIDELTh'ES
FISCAL YEAR 2008/2009
1.0 Purpose: .
This "Investment Policy and Guidelines" (the "Investment Policy") Policy is intended to provide
guidelines for the prudent investment of the City of Chula Vista's (the "City") cash balances, and
outline policies to assist in maximizing the efficiency of the City's cash management system,
while meeting the daily cash flow demands of the City. .
2.0 Policy:
The investment practices and policies of the City of Chula Vista are based upon state law and
prudent money management. The primary goals of these practices are:
A. To ensure compliance with all Federal, State, and local laws governing the investment of
public funds under the control of the Director of Finance/Treasurer.
B. To protect the principal monies entrusted to the City's Finance Department.
C. Achieve a reasonable rate of return within the parameters of prudent risk management while
minimizing the potential for capital losses arising from market changes or issuer default.
3.0 Scope:
This Investment Policy applies to all financial assets of the City of Chula Vista, as indicated in
3.1 below. These funds are accounted for in the City's Comprehensive Annual Financial Report.
3.1 Funds:
The Director of Finance/Treasurer is responsible for investing the unexpended cash in the City
Treasury for all funds, except for the employee's retirement funds, which are administered
separately, and those funds which are managed separately by trustees appointed under indenture
agreements. The Director of Finance/Treasurer will strive to maintain the level of investment of
this cash as close as possible to 100%. These funds are described in the City's annual financial
\
report and include:
o General Fund
. Special Revenue Funds
. Capital Project Funds
. Enterprise Funds
e Trust and Agency Funds
o Any new fund created by the legislative body, unless specifically exempted
This Investment Policy applies to all transactions involving the financial assets and related
activity of the foregoing funds.
3-26
CITY OF CHULA VISTA
INVESTMENT POLICY AND GUIDELINES
FISCAL YEAR 2008/2009
4.0 Prudence:
The standard of prudence to be used by the Director of Finance/Treasurer shall be the "prudent
investor standard". This shall be applied in the context of managing an overall portfolio.
The "prudent investor standard" is applied to local agencies, pursuant to California
Government Code Section 53600.3 which provides, in pertinent part:
" ... all governing bodies of local agencies or persons authorized to make
investment decisions on behalf of those local agencies investing public funds
pursuant to this chapter are trustees and therefore fiduciaries subject to the
prudent investor standard. When investing, reinvesting, purchasing, acquiring,
exchanging, selling, or managing public funds, a trustee shall act with care, skill,
prudence, and diligence under the circumstances then prevailing, including, but
not limited to, the general economic conditions and the anticipated needs of the
agency, that a prudent person acting in a like capacity and familiarity with those
matters would use in the conduct of funds of a like character and with like aims,
to safeguard the principal and maintain the liquidity needs of the agency. ..."
4.1 Personal Responsibility:
The Director of Finance/Treasurer, Assistant Director of Finance and Treasury Manager as
investment officers acting in accordance with written procedures and the Investment Policy and
exercising due diligence, shall be relieved of personal responsibility for an individual security's
credit risk or market price changes, provided deviations from expectations are reported to the
City Council in a timely fashion and appropriate action is taken to control adverse developments.
5.0 Objective:
Consistent with this aim, investments are made under the terms and conditions of California
Government Code Section 53600, et seq. Criteria for selecting investments and the absolute
order of priority are:
5.1 Safety:
Safety of principal is the foremost objective of the investment program. Investments of the City
of Chula Vista shall be undertaken in a manner that seeks to ensure the preservation of capital in
the overall portfolio. To attain this objective, diversification is required in order that potential
losses on individual securities do not exceed the income generated from the remainder of the
portfolio.
5.2 Liquidity:
The City of Chula Vista's investment po_rtfolio will remain sufficiently liquid to enable the City
to meet all operating requirements which might be reasonably anticipated and to maintain
3-27
CITY OF CHULA VISTA
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compliance with any indenture agreement, as applicable. Liquidity is essential to the safety of
principal.
5.3 Return on Investments:
The City of Chula Vista's investment portfolio shall be designed with the objective of attaining a
market-average rate of return throughout budgetary and economic cycles (market interest rates),
within the City's Investment Policy's risk parameters and the City's cash flow needs. See also
Section 16.1.
6.0 Delegation of Authority:
The Dire~tor of Finance/Treasurer shall be responsible for all transactions undertaken and shall
establish a system of controls to regulate the activities of subordinate officials. The
responsibility for the day-to-day investment of City funds will be delegated to the Treasury
Manager under the general direction of the Assistant Director of Finance.
7.0 Ethics and Conflicts ofInterest:
In addition to state and local statutes relating to conflicts of interest, all persons involved in the
investment process shall refrain from personal business activity that could conflict with proper
execution of the investment program, or which could impair their ability to make impartial
investment decisions. Employees and investment officers are required to file annual disclosure
statements as required for "public officials who manage public investments" [as defined and
required by the Political Reform Act and related regulations, including Government Code
Sections 81000, et seq., and the rules, regulations and guidelines promulgated by California's
Fair Political Practices Commission (FPPC)].
8.0 Authorized Financial Dealers and Institutions:
The City's Director of Finance/Treasurer will maintain a list of the fmancial institutions and
brokers/dealers authorized to provide investment and depository services and will perform an
annual review of the fmancial condition and registrations of qualified bidders and require annual
audited fmancial statements to be on file for each company. The City will utilize Moody's
Securities or other such services to determine financially sound institutions with which to do
business. The City shall annually send a copy of the current Investment Policy to all fmancial
institutions and brokers/dealers approved to do business with the City.
As far as possible, all money belonging to, or in the custody of, a local agency, including money
paid to the City's Director of Finance/Treasurer or other official to pay the principal, interest, or
penalties of bonds, shall be deposited for safekeeping in state or national banks, savings
associations, federal associations, credit unions, or federally insured industrial loan companies in
this state selected by the City's Director of Finance/Treasurer; or may be invested in the
investments set forth in Section 9.0. To be eligible to receive local agency money, a bank,
savings association, federal association, or federally insured industrial loan company shall have
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received an overall rating of not less than "satisfactory" in its most recent evaluation by the
appropriate federal fmancial supervisory agency of its record of meeting the credit needs of
California's communities, including low- and moderate-income neighborhoods.
To provide for the optimum yield in the investment of City funds, the City's investment
procedures shall encourage competitive bidding on transactions from approved brokers/dealers.
In order to be approved by the City, the dealer must meet the following criteria: (i) the dealer
must be a "primary" dealer or regional dealer that qualifies under Securities and Exchange
Commission Rule 15C3-1 (Uniform Net Capital Rule); (ii)the dealer's institution must have an
office in California; (iii)the dealer must be experienced in institutional trading practices and
familiar with the C':Llifornia Government Code as related to investments appropriate for the 'City;
and (iv) all other applicable criteria, as may be established in the investment procedures. All
brokers/dealers and financial institutions who desire to become qualified bidders for investment
transactions must submit a "BrokerlDealer Application" and related documents relative to
eligibility including a current audited annual financial statement, U4 form for the broker, proof
of state registration, proof of National Association of Securities Dealers certification and a
certification of having read and understood the City's Investment Policy and agreeing to comply
with the Investment Policy. The City's Director of Finance/Treasurer shall determine if they are
adequately capitalized (i.e. minimum capital requirements of $10,000,000 and five years of
operation).
9.0 Authorized & Suitable Investments:
The City is authorized by California Government Code Section 53600, et. seq., to invest in
specific types of securities. Investments not specifically listed below are deemed inappropriate
and prohibited:
A. BANKERS' ACCEPTANCES, maximum 25% of portfolio (up to 40% with Council
approval). Maximum term 180 days.
Banks must have a short term rating of at least AlIPI and a long-term rating of A or higher as
. provided by Moody's Investors Service or Standard and Poor's Corp. No more than 30% of
the agency's money may be invested in the bankers' acceptances of anyone commercial bank
pursuant to this section.
B. NEGOTIABLE CERTIFICATES OF DEPOSIT, maximum 30% of portfolio. Maximum
term 3 years, (Up to 5 years with Council approval).
Banks must have a short term rating of AlIPI and a long term rating of at least a single A
from a nationally recognized authority on ratings.
C. COMMERCIAL PAPER, maximum 25% of portfolio. Maximum term 270 days.
Commercial paper of prime quality of the highest ranking or of the highest letter and number
rating as provided for by Moody's Investor Services, Standard & Poor's and Fitch Financial
Services. The issuing corporation must be organized and operating within the United States,
with total assets in excess of $500 million and shall issue debt, other than commercial paper,
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that is rated "A" or higher by Moody's, S&P and Fitch. Split ratings (i.e. A2/PI) are not
allowable. No more than 10% of the outstanding commercial paper of any single corporate
issue may be purchased.
D. BONDS ISSUED BY THE CITY OR ANY LOCAL AGENCY WITHIN THE STATE OF
CALIFORt"\J"IA.
Bonds must have an "A" rating or better from a nationally recognized authority on ratings.
E. OBLIGATIONS OF THE UNITED STATES TREASURY
United States Treasury Notes, bonds, bills or certificates of indebtedness, or those for which
the faith and credit of the United States are pledged for the payment of principal and interest.
There is no limit on the percentage of the portfolio that can be invested in this category.
F. FEDERAL AGENCIES
Debt instruments issued by agencies of the Federal government. Though not general
obligations of the U.S. Treasury, such securities are sponsored by the government or related
to the government and, therefore, have high safety ratings. The following are authorized
Federal Intermediate Credit Bank (FICB). Federal Land Bank (FLB), Federal Home Loan
Bank (FHLB), Federal National Mortgage Association (FNMA), Federal Home Loan
Mortgage Corporation (FHLMC), Government National Mortgage Association (GNMA),
Tennessee Valley Authorities (TV A). Student Loan Association Notes (SLJ.\iIA) and Small
Business Administration (SBA). There is no limit on the percentage of the portfolio that can
be invested in this category.
G. REPURCHASE AGREEMENT, ma'l:imum term 3 months.
Investments in repurchase agreements may be made, on any investment authorized in this
section, when the term of the agreement does not exceed 3 months. A Master Repurchase
Agreement must be signed with the bank or broker/dealer who is selling the securities to the
City.
H. REVERSE-REPURCHASE AGREEMENTS (Requires Council approval for each
transaction)
Reverse repurchase agreements or securities lending agreements may be utilized only when
all of the following conditions are met:
a) The security to be sold on reverse repurchase agreement or securities lending
agreement has been owned and fully paid for by the local agency for a minimum
of 30 days prior to sale.
b) The total of all reverse repurchase agreements and securities lending agreements
on investments owned by the local agency does not exceed 20% of the base value
of the portfolio.
c) The agreement-does not exceed a term of 92 days, unless the agreement includes a
written codicil guaranteeing a minimum earning or spread for the entire period
between the sale of a security using a reverse repurchase agreement or securities
lending agreement and the fmal maturity date of the same security.
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d) Funds obtained or funds within the pool of an equivalent amount to that obtained
from selling a security to a counter party by way of a reverse repurchase
agreement or securities lending agreement, shall not be used to purchase another
security with a maturity longer than 92 days from the initial settlement date of the
reverse repurchase agreement or securities lending agreement, unless the reverse
repurchase agreement or securities lending agreement includes a written codicil
guaranteeing a minimum earning or spread for the entire period between the sale
of a security using a reverse repurchase agreement or securities lending agreement
and the fmal maturity date of the same security. Investments in reverse
repurchase agreements, securities lending agreements, or similar investments in
which the local agency sells securities prior to purchase with a simultaneous
agreement to repurchase the security shall only be made with primary dealers of
the Federal Reserve Bank of New York or with a nationally or state-chartered
bank that has or has had a significant banking relationship with a local agency.
e) For purposes of this chapter, "significant banking relationship" means any of the
following activities of a bank:
i. Involvement in the creation, sale, purchase, or retirement of a local
agency's bonds, warrants, notes, or other evidence of indebtedness.
11. Financing of a local agency's activities.
111. Acceptance of a local agency's securities or funds as deposits.
I. "NIEDIUM-TERM CORPORATE NOTES, ma'{imum 20% of portfolio (30% with Council
approval), with a maximum remaining maturity of five years or less.
Notes eligible for investment shall be "A" rated or its equivalent or better as determined by a
nationally recognized rating service.
J. TINIE DEPOSITS-CERTIFICATES OF DEPOSIT (non-negotiable certificates of deposit.)
Maximum of 3 years.
Deposits must be made with banks or savings & loan that have a short term rating of Al/PI or
a long term rating of at least a single A from a generally recognized authority on ratings.
K. OBLIGATIONS OF THE STATE OF CALIFOR1~IA
Obligations must be "A" rated or better from a nationally recognized authority on ratings.
L. MONEY MARKET FUNTIS, ma'{imum 15% of portfolio. (Requires Council approval for
each transaction)
No more than 10% of the agency's surplus funds may be invested in shares of beneficial
interest of anyone Money Market fund. Local agencies may invest in "shares of beneficial
interest" issued by diversified management companies which invest only in direct obligations
in U.S. Treasury bills, notes and bonds, and repurchase agreements with a weighted average
of 60 days or less. They must have the highest rating from two national rating agencies, must
maintain a daily principal per share value of $1.00 per share and distribute interest monthly,
and must have a minimum of $500 million in assets under management. The purchase price
of the shares may not include commission.
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M. THE LOCAL AGENCY INVESTMENT FUND (LAlF)
LAIF is a special fund of the California State TreaSury through which any local government
may pool investments. The City may invest up to $40 million in this fund. Currently, the
City has established two (2) agency funds through which the Director of Finance/Treasurer
may invest the unexpended cash for all funds: The City of Chula Vista City Fund, and the
Chula Vista Redevelopment Agency Fund. Investments in LAIF are highly liquid and may
be converted to cash within 24 hours.
N. Investment Trust of California (CalTRUSn
The City may invest in shares of beneficial interest issued by the Investment Trust of
California (CalTRUST), a local government investment pool established by local entities as a
joint powers authority pursuant to California Government Code Sections 6509.7 and
53601(P), provided: .
CalTRUST investments are limited to the securities and obligations authorized for
local agency investment pursuant to Subdivisions (a) to (n), inclusive, of California
Government Code Section 53601; and
CalTRUST shall have retained an investment adviser that:
Is registered or exempt from registration with the Securities and Exchange
Commission;
Has not less than five years experience investing in the securities and obligations
authorized for local agency investment pursuant to subdivisions (a) to (n),
inclusive, of California Government Code Section 53601; and
Has assets under management in excess of five hundred million dollars
($500,000,000).
9.1 Investment Pools:
The City's Director of Finance/Treasurer or designee shall be required to investigate all local
government investment pools and money market mutual funds prior to investing and performing
at least a quarterly review thereafter while the City is invested in the pool or the money market
fund. LAIF is authorized under provisions in Section 16429.1 of the California Government
Code as an allowable investment for local agencies even though some of the individual
investments of the pool are not allowed as a direct investment by a local agency.
10.0 Portfolio Adjustments:
Should any investment listed in section 9.0 exceed a percentage-of-portfolio limitation due to an
incident such as fluctuation in portfolio size, the affected securities may be held to maturity to
avoid losses. When no loss is indicated, the Director of Finance/Treasurer shall consider
reconstructing the portfolio basing his or her decision on the expected length of time the
portfolio will be unbalanced. If this occurs, the City Council shall be notified.
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11.0 Collateralization:
Under provisions of the California Government Code, California banks, and savings and loan
associations are required to secure the City's deposits by pledging government securities \'lith a
value of 110 % of principal and accrued interest. California law also allows fmancial institutions
to secure City deposits by pledging fIrst trust deed mortgage notes having a value of 150% of the
City's total deposits. Collateral will always be held by an independent third party. A clearly
marked evidence of o\'lnership (safekeeping receipt) must be supplied to the City and retained.
The market value of securities that underlay a repurchase agreement shall be valued at 102% or
greater of the funds borrowed against those securities and the value shall be adjusted no less than
quarterly. Since the market value of the underlying securities is subject to daily market
fluctuations, the investments in repurchase agreements shall be in compliance if the value of the
underlying securities is brought back up to 102% no later than the next business day. The
Director of Finance/Treasurer, at his or her discretion, may waive the collateral requirement for
deposits that are fully insured up to $100,000 by the Federal Deposit Insurance Corporation. The
right of collateral substitution is granted.
12.0 Safekeeping and Custody:
All City investments shall identify the City of Chula Vista as the registered owner, and all
interest and principal payments and withdrawals shall indicate the City of Chula Vista as the
payee. All securities shall be safe kept with the City itself or with a qualifIed fInancial
institution, contracted by the City as a third party. All agreements and statements will be subject
to review annually by external auditors in conjunction with their audit. In the event that the City
has a fInancial institution hold the securities, a separate custodial agreement shall be required.
All securities shall be acquired by the safekeeping institution on a "Delivery-Vs-Payment"
(DVP) basis. For Repurchase Agreements, the purchase may be delivered by book entry,
physical delivery or by third-party custodial agreement consistent with the Government Code.
The transfer of securities to the counter party bank's customer book entry account may be used
for book entry delivery.
13.0 Diversification:
The City's investment portfolio will be diversified to avoid incurring unreasonable and avoidable
risks associated with concentrating investments in specifIc security types, maturity segment, or in
individual fmancial institutions. With the exception of U.S. Treasury securities and authorized
pools, no more than 60% of the total investment portfolio will be invested in a single security
type or with a single fmancial institution. In addition, no more than 10% of the investment
portfolio shall be in securities of anyone issuer except for U.S. Treasuries and U.S. Government
Agency issues.
A. Credit risk, defined as the risk of loss due to failure of the insurer of a security, shall be
mitigated by investing in those securities with an "A" or above rating and approved in the
Investment Policy and by diversifying the investment portfolio so that the failure of anyone
issuer would not unduly harm the City's cash flow.
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B. Market risk, defined as the risk of market value fluctuations due to overall changes in the
general level of interest rates, shall be mitigated by structuring the portfolio so that securities
mature at the same time that major cash outflows occur, thus eliminating the need to sell
securities prior to their maturity. It is explicitly recognized herein, however, that in a
diversified portfolio, occasional measured losses are inevitable and must be considered
within the context of overall investment return. The City's investment portfolio will remain
sufficiently liquid to enable the City to meet all operating requirements which might be
reasonably anticipated.
14.0 Maximum Maturities:
To the extent possible, the City will attempt to match its investments with anticipated cash flow
requirements. . Unless matched to a specific cash flow, the City will not directly invest in
securities maturing more than five (5) years from the date of purchase, unless, the legislative
body has granted express authority to make that investment either specifically, or as a part of an
investment program approved by the City Council.
15.0 Internal Control:
The Director of Finance/Treasurer shall establish a system of internal controls designed to
prevent loss of public funds due to fraud, employee error, misrepresentation by third parties, or
unanticipated market changes. No investment personnel may engage in an investment
transaction except as provided for under the terms of this Investment Policy and the procedure
established by the Director of Finance/Treasurer.
The external auditors shall annually review the investments with respect to the Investment
Policy. This review will provide internal control by assuring compliance with policies and
procedures for the investments that are selected for testing. Additionally, account reconciliation
and verification of general ledger balances relating to the purchasing or maturing of investments
and allocation of investments to fund balances shall be performed by the Finance Department
and approved by ,the Director of Finance/Treasurer. To provide further protection of City funds,
written procedures prohibit the wiring of any City funds without the authorization of at least two
of the following four designated City staff:
1. Director of Finance/Treasurer
2. Assistant Director of Finance
3. Treasury Manager
4. Fiscal Operations Manager
16.0 Performance Standards:
This Investment Policy shall be reviewed at least annually by the Director of Finance/Treasurer
to ensure its consistency with the overall objective of preservation of principal, liquidity, and
return, and its relevance to current law and financial and economic trends. All financial assets of
all other funds shall be administered in accordance with the provisions of this Investment Policy.
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The monies entrusted to the Director of Finance/Treasurer will be held in a passively managed
("hold to maturity") portfolio. However, the Director of Finance/Treasurer will use best efforts
to observe, review, and react to changing conditions that affect the portfolio, and to do so in a
manner that is consistent with this Investment Policy.
16.1 Market Yield (Benchmark):
The investment portfolio shall be managed to attain a market-average rate of return throughout
budgetary and economic cycles, taking into account the City's investment risk constraints and
cash flow. Investment return becomes a consideration only after the basic requirements of
investment safety and liquidity have been met. Because the investment portfolio is designed to
operate on a 'hold-to-maturity' premise (or passive investment style) and because of the safety,
liquidity, and yield priorities, the performance benchmark that will be used to determine whether
market yields are being achieved shall be the average of the monthly LAIF rate and the 12-month
rolling average 2 - Year Constant Maturity Treasury (CMT) rate. While the City will not make
investments for the purpose of trading or speculation as the dominant criterion, the Director of
Finance/Treasurer shall seek to enhance total portfolio return by means of ongoing portfolio and
cash management. The prohibition of highly speculative investments precludes pursuit of gain
or profit through unusual risk and precludes investments primarily directed at gains or profits
from conjectural fluctuations in market prices. The Director of Finance/Treasurer will not
directly pursue any investments that are leveraged or deemed derivative in nature. However, as
long as the original investments can be justified by their ordinary earning power, trading in
response to changes in market value can be used as part of on-going portfolio management.
17.0 Reporting:
The Director of Finance/Treasurer shall submit a quarterly investment report to the City Council
and City Manager following the end of each quarter. This report will include the following
elements:
. Type of investment
· Institutional Issuer
. Purchase Date
. Date of maturity
· Amount of deposit or cost of the investment
o Face value of the investment
. Current market value of securities and source of valuation
· Rate of interest
. Interest earnings
. Statement relating the report to its compliance with the Statement of Investment Policy or
the manner in which the portfolio is not in compliance
· Statement on availability of funds to meet the next six month's obligations
. Monthly and Year-to-date Budget Amounts for Interest Income
· Percentage of Portfolio by Investment Type
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. Days to Maturity for all Investments
o Comparative report on Monthly Investment Balances & Interest Yields
. Monthly transactions
This quarterly investment report shall be an information item for the City Council and City
Manager. In addition, a commentary on capital markets and economic conditions may be
included "With the report.
18.0 Investment Policy Adoption:
By virtue of a resolution of the City Council of the City of Chula Vista, the Council shall
acknowledge the receipt and filing of this annual statement of Investment Policy for the
respective fiscal year.
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GLOSSARY
AGENCIES: Federal agency securities.
ASKED: The price at which securities are offered. (The price at which a firm will sell a security
to an investor.)
BANKERS' ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust
company. The accepting institution guarantees payment of the bill, as well as the issuer. The
drafts are drawn on a bank by an exporter or importer to obtain funds to pay for specific
merchandise. An acceptance is a high-grade negotiable instrument.
BASIS POINT: One one-hundredth ofa percent (i.e., 0.01 %)
BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a
bid.)
BROKER: A broker brings buyers and sellers together for a commission. He does not take a
position.
CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a
certificate. Large-denomination CDs are typically negotiable.
COLLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to
secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of
public monies.
COMMERCIAL PAPER: Short term unsecured promissory note issued by a corporation to
raise working capital. These negotiable instruments are purchased at a discount to par value or at
par value with interest bearing. Commercial paper is issued by corporations such as General
Motors Acceptance Corporation, IBM, Bank of America, etc.
COUPON: a). The annual rate of interest that a bond's issuer promises to pay the bondholder
on the bond's face value. b) A certificate attached to a bond evidencing interest due on a
payment date.
DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and
selling for his own account.
DEBENTURE: A bond secured only by the general credit of the issuer.
DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery
versus payment and delivery versus receipt. Delivery versus payment is delivery of securities
. with an exchange of money for the securities. Delivery versus receipt is delivery of securities
with an exchange of a signed receipt for the securities.
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DISCOUNT: The difference between the cost price of a security and its maturity when quoted
at lower than face value. A security selling below original offering price shortly after sale also is
considered to be at a discount.
DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued at
a discount and redeemed at maturity for full face value (e.g., U.S. Treasury Bills).
DIVERSIFICATION: Dividing investment funds among a variety of securities offering
independent returns.
FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit
to various classes of institutions (e.g., S&Ls, small business firms, students, farmers, farm
cooperatives, and exporters).
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A Federal agency that
insures bank deposits, currently up to $100,000 per deposit.
FEDERAL FUNDS RATE: The rate of interest at which Federal funds are traded. This rate is
currently pegged by the Federal Reserve though open-market operations.
FEDERAL HOME LOAN BANKS (FHLB): The institutions that regulate and lend to savings
and loan associations. The Federal Home Loan Banks playa role analogous to that played by the
Federal Reserve Banks vis-a-vis member commercial banks.
FEDERAL HOl\'IE LOA1~ MORTGAGE CORPORATION (FHLMC): Created to promote
the development of a nationwide secondary market in mortgages. It does this by purchasing
residential mortgages from fmancial institutions insured by an agency of the federal government
and selling its interest in them through mortgage backed securities. The interest and principal
payments from the mortgages pass through to the investors either monthly, semiannually or
annually.
FEDERAL LA1~D BANK (FLB): Long-term mortgage credit provided to farmers by Federal
Land Banks. These bonds are issued at irregular times for various maturities ranging from a few
months to ten years.
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMP.., like GNMA was
chartered under the Federal National Mortgage Association Act in 1938. FNMA is a Federal
corporation working under the auspices of the Department of Housing and Urban Development
(BUD). It is the largest single provider of residential mortgage funds in the United States.
Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The
corporation's purchases include a variety of adjustable mortgages and second loans, in addition
to fLxed-rate mortgages. FNMA's securities are higWy liquid and are widely accepted. FNMA
assumes and guarantees that all security holders will receive timely payment of principal and
interest.
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FEDERAL OPEN lYIARKET COMMITTEE (FOMe): Consists of seven members of the
Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of
the New York Federal Reserve Bank is a permanent member, while the other presidents serve on
a rotating basis. The committee periodically meets to set Federal Reserve guidelines regarding
purchases and sales of Government Securities in the open market as a means of influencing the
volume of bank credit and money.
FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress
and consisting of a seven-member Board of Governors in Washington, D.C.; 12 regional banks
and about 5,700 commercial banks are members of the system.
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA OR GINNIE
MAE): Securities influencing the volume of bank credit guaranteed by GNMA and issued by
mortgage bankers, commercial banks, savings and loan associations and other institutions.
Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae
securities are backed by the FHA or VA mortgages. The term "pass-through" is often used to
describe Ginnie Maes.
LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a
substantial loss of value. In the money market, a security is said to be liquid if the spread
between bid and asked prices is narrow and reasonable size can be done at those quotes.
LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from
political subdivisions that are placed in the custody of the State Treasurer for investment and
reinvestment. .
MARKET VALUE: The pnce at which a security IS trading and could presumable be
purchased or sold.
MARKET REPURCHASE AGREEMENT: A written contract covering all future
transactions between the parties to repurchase-reverse agreements that establish each party's
rights in the transactions. A master agreement will often specify, among other things, the right
of the buyer-lender to liquidate the underlying secUrities in the event of default by the seller-
borrower. .
MA TVRITY: The date upon which the principal or stated value of an investment becomes due
and payable.
NEGOTIABLE CERTIFICATES OF DEPOSIT: Unsecured obligations of the financial
institution, bank or savings and loan, bought at par value with the promise to pay face value plus
accrued interest at maturity. They are high-grade negotiable instruments, paying a higher
interest rate than regular certificates of deposit.
OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for
an offer).
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OPEN MARKET OPERATIONS: Purchases and sales of government and certain other
securities in the open market by the New York Federal Reserve Bank as directed by the FOMC
in order to influence the volume of money and credit in the economy. Purchases inject reserves
into the bank system and stimulate growth of money and credit: Sales have the opposite effect.
Open market operations are the Federal Reserve's most important and most flexible monetary
Policy tool. .
PORTFOLIO: Collection of securities held by an investor.
PRIMARY DEALER: A group of government securities dealers who submit daily reports of
market activity and positions and montWy fmancial statements to the Federal Reserve Bank of
N ew York and are subj ect to its informal oversight. Primary dealers include Securities and
Exchange Commission (SEC)-registered securities broker/dealers, banks and a few unregulated
firms.
PRUDENT PERSON RULE: An investment standard. In some states, the law requires that a
fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody
state-the so - called "legal list" . In other states, the trustee may invest in a security if it is one that
would be bought by a prudent person of discretion and intelligence who is seeking a reasonable
income and preservation of capital.
RATE OF RETURN: The yield obtainable on a security based on its purchase price or its
current market price.
REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities
to an investor with an agreement to repurchase them at a fixed date. The security "buyer" in
effect lends the "seller" money for the period of the agreement, and the terms of the agreement
are structured to compensate him for this. Dealers use RP extensively to fmance their position.
Exception: when the Fed is said to be doing RP, it is lending money that is, increasing bank
reserves.
SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and
valuables of all types and descriptions are held in the bank's vaults for protection.
STUDENT LOAN ASSOCIATION NOTES (SLMA or SALLIE MAE): A U.S. Corporation
and instrumentality of the U.S. Government. Through its borrowings, funds are targeted for
loans to students in higher education institutions. SLMA securities are highly liquid and are
widely accepted.
SMALL BUSINESS ADMINISTRATION (SBA): The portion of these securities which are
guaranteed by the Federal government to provide financial assistance through direct loans and
loan guarantees to small businesses. Cash flows from these instruments may not be in equal
installments because of prepayments.
3-40
CITY OF CHULA VISTA
INVESTMENT POLICY AND GUIDELINES
FISCAL YEAR 200812009
SECONDARY MARKET: A market made for the purchase and sale of outstanding issues
following the initial distribution.
SECURITIES & EXCHANGE COMlVIISSION: Agency created by Congress to protect
investors in securities transactions by administering securities legislation.
SEC RULE 15C3-1: See "Uniform Net Capital Rille".
TENNESSEE VALLEY AUTHORITIES (TVA): A U.S. Corporation created in the 1930s to
electrify the Tennessee Valley area; currently a major utility headquartered in Knoxville,
Tennessee. TV A securities are highly liquid and are widely accepted.
TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to
[mance the national debt. Most bills are issued to mature in three months, six months, or one.
year.
TREASURY BOND: Long-term U.S. Treasury securities having initial maturities of more than
10 years. .
TREASURY NOTES: Intermediate-term coupon bearing U.S. Treasury having initial
maturities of one year to ten years.
UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that
member firms as well as nonmember broker/dealers in securities maintain a maximum ratio of
indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio.
Indebtedness covers all money owed to a firm, including margin loans and commitments to
purchase securities, one reason new public issues are spread among members of underwriting
syndicates. Liquid capital includes cash and assets easily converted into cash.
YIELD: The rate of annual income return on an investment, expressed as a percentage. (a)
Income Yield is obtained by dividing the current dollar income by the current market price for
the security. (b) Net Yield or Yield to Maturity is the current income yield minus any premium
above par or plus any discount from par in purchase price, with the adjustment spread over the
period from the date of purchase to the date of maturity of the bond.
3-41
RESOLUTION NO. 2009-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE EXISTING CITY
INVESTMENT POLICY AND GUIDELINES
WHEREAS, the City of Chula Vista's "Investment Policy and Guidelines," adopted on
February 12, 2008, by Resolution No. 2008-054 intended to provide direction for the prudent
investment oftemporarily idle cash and to maximize the efficiency ofthe cash management process;
and
WHEREAS, the stated goal is to enhance the economic condition of the City while insuring
the safety of funds invested; and
WHEREAS, the Policy includes a list of specific investment instruments available under
California Government Code sections 53600, et seq. and 53635, et seq.; and
WHEREAS, each investment transaction is selected consistent with the following order of
priority: (i) ensuring the "safety" of principal; (ii) investing only for that time frame that the cash is
not needed for operational purposes (liquidity); and (iii) seeking the highest return possible (yield)
provided that the first two factors are met; and
WHEREAS, the Policy was amended in February 2008 to include a legislative change that
no longer required the City to submit its Investment Policy and quarterly reports to the California
Debt and Investment Advisory Commission; and
WHEREAS, also at that time, the Policy was amended to add Investment Trust of California
to the list of authorized investments; and
WHEREAS, no new amendments are recommended at this time; and
WHEREAS, City staff recommends that the existing Investment Policy and Guidelines be
readopted as is.
. NOW, THEREFORE, BE IT RESOLVED by the City Council ofthe City of Chula Vista
that it approves the existing City Investment Policy and Guidelines, on file in the Office of the City
Clerk.
Maria Kachadoorian
Director of Finance
Presented by
J:lAttomey\RESOLLiT10NS\FrNA:-lCE\Apprnvl: existing City Investment Policy:lIld Guid3ncs_42-09.dOC
CITY COUNCIL
AGENDA STATEMENT
~ \ 'f:... CITY OF
~. .!~ CHULA VISTA
Ji
2/17/09, Item~
ITEM TITLE:
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ACCEPTING BIDS AJ.~TI AWARDING THE
CONTRA.CT FOR THE "GLENHA VEN WAY IMPROVEMENTS
BETWEEN FIRST A VENUE MID AJ.vlY STREET IN THE CITY
OF CHULA VISTA (CIP NO. STL-304)" PROJECT TO
HILLCREST CONTRA.CTING IN THE AJ.\lIOUNT OF $516,812.25,
APPROVING A BUDGET TRANSFER FROM EXISTING
SOUTHWESTERN CHULA VISTA STREET IMPROVEMENTS
PROJECT (S1L-306) TO CIP NO. STL-304 FOR SAID PURPOSE
AJ.'ID AUTHORIZING THE EXPENDITURE OF ALL A V AILABLE
HINDS IN THE PROJECT ~
DIRECTOR OF PUBLIC WORKS ~
ASSISTAJ.'-.fT CIT~' GER S)
CITY MANAGE
4/STHS VOTE: YES r_ J NO 0
SUBMITTED BY: .
REVIEWED BY:
SUMMARY
On January 21,2009, the Director of Public Works received sealed bids for the "Glenhaven Way
Improvements between First Avenue and Amy Street in the City of Chula Vista, California (CIP
No.: STL-304)" project. The work to be done consists of the sidewalk improvements and related
street work along Glenhaven Way between First Avenue and Amy Street. The work also
includes all labor, material, equipment, transportation, protection and restoration of existing
improvements and traffic control necessary for the project as shown on the drawings.
ENVIRONMENTAL REVIEW
The Environmental Review Coordinator has reviewed the proposed project for compliance with
the National Environmental Policy Act (NEP A) and has determined that the project qualifies for
a Categorical Exclusion (subject to 58.5) pursuant to Section 24 of the Code of Federal
Regulations 58.35(a), subsection 1 [Acquisition, repair, improvement, reconstruction, or
rehabilitation of public facilities & improvements; e.g. curbs, sidewalks, repaving streets]
pursuant to Implementation Guidelines established by the U.S. Department of Housing and
Urban Development (HUD). Additionally, the Environmental Review Coordinator has also
reviewed the proposed project for compliance with the California Environmental Quality Act
(CEQA) and has determined that the project qualifies for a Class 1 categorical exemption
pursuant to Section 15301 (c) [Existing Facilities] of the State CEQA Guidelines. Thus, no
further environmental review is necessary.
4-1
2/17/09, Item~
Page 2 of 4
RECOMMENDATION
Council adopt the resolution.
BOARDS/COMMISSION RECOMMENDATION
Not applicable.
DISCUSSION
The Southwestern Chula Vista Street Improvements (STL-306) project is an eXIstmg CIP
established in Fiscal Year 2004/2005 and is programmed for needed street improvements in the
Castle Park neighborhood in western Chula Vista. These improvements are funded through a
$9.5 million HUD Section 108 Loan. The resolution proposed for City Council approval would
authorize construction of full street improvements within Glenhaven Way between First Avenue
and Amy Street and authorize a transfer in the amount of $1,040,434.25 from existing HUD
Section Loan 108 funds into the project. The remaining funds from the Section 108 Loan will be
utilized on future projects in the Ca~t1e Park neighborhood.
The general scope of the Glenhaven Way project involves the excavation and grading, removal
and disposal of existing improvements, installation of AC pavement, crushed aggregate base,
curb, gutter, sidewalk, driveways, drainage improvements, pedestrian ramps, cold-planing, saw-
cutting, street lighting, pavement striping and marking. The work also includes all labor,
materials, equipment, transportation, protection of existing improvements and traffic control
necessary for the project and other work necessary to complete the project.
On January 21,2009, the City received and opened bids from 14 contractors as follows:
CONTR~CTOR BID AJ"IOUNT
1. Hillcrest Contracting, Inc. - Corona, CA $516,812.25
2. Hazard Construction Company, Inc. - San Diego, CA $528,000.00
3. 3D Enterprises, Inc. - San Diego, CA $533,380.00
4. Southland Paving, Inc. - Escondido, CA $546,943.55
5. HT A Engineering & Construction, Inc. - Poway, CA $548,174.00
6. L.B. Construction, Inc. - San Diego, CA $551,110.00
7. MJC Construction - Bonita, CA $569,603.75
8. New Century Construction, Inc - Lakeside, CA $570,057.50
9. C & B Concrete - San Diego, CA Non-Responsive
10. Heffler Company, Inc. - National City, CA $576,481.50
11. Portillo Concrete, Inc. - Lemon Grove, CA $587,587.00
12. Zondiros Corp, Inc. - San Marcos, CA $595,100.00
13. Scheidel Contracting, Inc. - El Cajon, CA $618,679.65
14. Palm Engineering, Inc. - San Diego, CA $619,713.00
4-2
2/17/09, ItemL
Page 3 of 4
Strict adherence to the contract administration guidelines established by the State of California
and by the Federal Community Block Grant programs is required to avoid potential loss of future
funding. Upon close examination of the bid documents from all bids received, and with the
advice of the City Attorney's Office, it was determined that C & B Concrete, Inc., had not
complied with the regulations and guidelines presented in the bid package, because they failed to
provide the necessary documents. Thus, C & B Concrete, Inc. is declared to be non-responsive
and their bid package is disqualified.
Hillcrest Contracting, Inc., of Corona, CA submitted an acceptable bid package of $516,812.25,
which is $176,467.75 (25%) below the Engineer's estimate of $693,280. The Engineer's
estimate was based on average prices for similar types of work completed during the last three
years. Staff has reviewed the low bid and recommends awarding a contract in the amount of
$516,812.25 to Hillcrest Contracting.
Design staff has verified the references provided by the contractor and has found their work to be
satisfactory. The Contractor's License No. 471664 is current and active.
Also for consideration is the authority of the Director of Public Works to approve change orders
over and above existing policy limits. Under City Council Policy No. 574-01, if an individual
change order causes the cumulative increase in change orders to exceed the Director's authority
("Maximum Aggregate Increase in Change Orders"), then City Council approval is required.
The contract amount for the subject project is $516,812.25. The corresponding maximum
aggregate contract increase that may be approved by the Director of Public Works under Policy
No. 574-01 is $39,177. Approval of tonight's resolution will increase the Director of Public
Works' authority to approve change orders as necessary up to the contingency amount of
$178,540, an increase of $139,363 and will authorize staff to expend all available contingencies
and to increase the value of the contract, as necessary, as a result of unforeseeable conditions and
unit quantity adjustments. Unforeseen conditions include such items as utility conflicts,
hazardous materials, unexpected underground conflicts, etc. If the contingency funds are not
used, then they will be returned to the project nmd balance.
Disadvantaged Business Enterprise Goal
The bid documents set forth participation requirements per Federal Regulation for meeting the
disadvantaged and women-owned business goals. Jose Dorado, Community Development
Specialist, has reviewed the bid documents submitted by the lowest bidder, Hillcrest Contracting,
Inc.
Staff also reviewed Hillcrest Contracting, Inc.'s eligibility status with regard to Federal
procurement programs and the status of the State contractor's licenses. Hillcrest Contracting,
Inc. is not listed as excluded from Federal Procurement Programs (list of parties excluded from
Federal procurement or non-procurement programs as of February, 2006).
Disclosure Statement
Attached is a copy of the contractor's Disclosure Statement as Attachment 1.
4-3
2/17/09, Item~
Page 4 of 4
Wage Statement
Contractors bidding on this project were required to pay prevailing wages to persons employed
by them for work under this project. No special minority or women owned business requirements
were necessary as part of the bid documents. However, the "Notice to Contractors" was sent to
various trade publications in order to encourage disadvantaged businesses to bid on the project.
DECISION MAKER CONFLICT
Staff has reviewed the property holdings of the City Council and has found no property holdings
within 500 feet ofthe boundaries of the property, which is the subject ofthis action.
FISCAL IMP ACT
FliNDS REQUIRED FOR THE PROJECT
A. Construction Contract Award Amount $516,812.25
(Hillcrest Contracting, Inc.)
B. Contingencies (approximately 15% of total project costs) $178,540.00
C. City Staff Costs (approx. 33% of total project cost) $395,000.00
(Environmental, Design, Survey, Construction Inspection)
D. City Oversight (ie: Soils Testing, Admin Cost) $100,000.00
E. Utilities $50,000.00
TOTAL FUNDS REQli'lRED FOR PROJECT 51,240,352.25
FUNDS A V AILABLE FOR THE PROJECT
Existing Funds (Section 108 Loan Funds) - STLJ04 $199,918.00
Transfer from STLJ06 (Section 108 Loan Funds) to STLJ04 51,040,434.25
TOT AL FUNDS A V AILABLE FOR PROJECT $1,240,352.25
There is no direct fiscal impact to the General Fund as the funds for this project will be provided
for by the Section 108 Loan, except for routine normal maintenance of the street facilities and
storm water best management practices upon completion of the construction and one-year
contractor maintenance period.
ATT ACHMENTS
1. Contractor's Disclosure Statement
Prepared by: Roberto Yano, Sr. Civil Engineer. Department of Public Works
M:\General Services\GS Administration\Council Agenda\STL304 Glenhaven Way improvements\STL-304 Award A 113REV ml -
3.doc
4-4
ATTACHMENT /
ClTY OF CHULA VISTA DISCLOSURE STATEMENT
Pursuant to Council Pol.icy 101-0 I, 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 sta~ent of disclosure of certain
ov.nership or financial interests, payments, or campaign contributions for a City of Chula Vista election must
be filed. Tne followini5 info~tion must be disclosoo:
1. List the names of all persons having a financial interest in the property that is the subject of the
~pplication or ':he contract, e.g., owner, applicant, contractor, subcontractor, material supplier.
NONE 0
2. If any person" identified pursuant to (1) above is a corporation or partnership, list the names of all
individuals with a $2000 investment in the business (corporation/partnership) 'entity.
N/A
3. If any person" identified pursuant to (1) above is a non-profit organization or trust, list the names of
any person se rving as director of the non-profit organization or as trustee or beneficiary or trustor of
the trust
N/A
4. Please identiJi' every person, including any agents, employees, consultants, or independent contractors
you have ass: gned to represent you before the City in this marter.
N/A
5. Has any persllo* associated with this contract had any financial dealings with an official** of the City
ofChula Visill as it relates to this contract within the past 12 months? Yes_ No--X-
50
4-5
If Yes, briefly describe the nature of the financial interest the official" may have in this
contract.
N/A
6. Have you male a contribution of more than $250 within the past twelve (12) months to a current
member oftb: Chula Vista City COWlCil? No ...:xYes _ If yes, which COWlcil member?
7. Have you provided more than $340 (or an item of equivalent value) to an official" of the Gty
of Chula Vi5"~l in the past twelve (12) months? ('This includes being a source of income, money
to retire a leiial debt, gift, loan, etc.) Yes -'- No X-
If Yes, which official" and what waS the nature of item provided?
Date: 01/2Q/2009
4
--
Signature of Contractor/Applicant
GLENN J. SALSBURY, PRESIDENT
Print or type name of Contractor/Applicant
*
Person is deemed as; any iodividual, firm, co-pa..-mership, joint veuture, association, social club,
fraternal ofe"lIlization, corporatioo, estate, trust, receiver, syndicate, any other county, city,
municipality, district, or other political subdivisioll, -or any other group or combination acting as a
unit
..
Official includes, but is not limited to: Mayor, Council member, Planning Commissioner,
Member of l board, commission, Of committee of the City, employee, or staff members.
51
4-6
RESOLUTION NO. 2009-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ACCEPTING BIDS AND AWARDING THE
CONTRACT FOR THE "GLENHA YEN WAY
IMPROVEMENTS BETWEEN FIRST AVENUE Ai'lD AMY
STREET IN THE CITY OF CHULA VISTA (CIP NO. STL-
304)" PROJECT TO HILLCREST CONTRACTING IN THE
AMOUNT OF $516,812.25, APPROVING A BUDGET
TRANSFER FROM EXISTING SOUTHWESTERN CHULA
VISTA STREET l1\1PROVEMENTS PROJECT (STL-306) TO
CIP NO. STL-304 FOR SAID PURPOSE AND AUTHORIZING
THE EXPENDITURE OF ALL AVAILABLE FUNDS IN THE
PROJECT
WHEREAS, the project consists of the sidewalk improvements and related street work
along Glenhaven Way between First Avenue and Amy Street in the City ofChula Vista; and
WHEREAS, the work also includes all labor, material, equipment, transportation,
protection and restoration of existing improvements and traffic control necessary for the project
as shown on the drawings; and
WHEREAS, City staff prepared plans and specifications for the "Glenhaven Way
Improvements between First Avenue and Amy Street in the City of Chula Vista (CIP No.: STL-
304)" project; and
WHEREAS, on January 21, 2009, fourteen bids were received as follows:
CONTRACTOR BID AMOUNT
I. Hillcrest Contracting, Inc. - Corona; CA $516,812.25
2. Hazard Construction Company, Inc. - San Diego, CA $528,000.00
3. 3D Enterprises, Inc. - San Diego, CA . $533,380.00
4. Southland Paving, Inc. - Escondido, CA $546,943.55
5. HTA Engineering & Construction, Inc. - Poway, CA $548,174.00
6. L.B. Construction, Inc. - San Diego, CA $551,110.00
7. MJC Construction - Bonita, CA $569,603.75
8. New Century Construction, Inc - Lakeside, CA $570,057.50
9. C & B Concrete - San Diego, CA Non-Responsive
10. Heffler Company, Inc. - National City, CA $576,481.50
II. Portillo Concrete, Inc. - Lemon Grove, CA $587,587.00
12. Zondiros Corp, Inc. - San Marcos, CA $595,1 00.00
13. Scheidel Contracting, Inc. - El Cajon, CA $618,679.65
14. Palm Engineering, Inc. - San Diego, CA $619,713.00
H:\ENG[NEER\R.ESOS\Resos2009\02.17..o9\Rcso STL.J04 AwatdREV.doc 4 - 7
Resolution No. 2009-
Page 2
WHEREAS, Hillcrest Contracting, Inc., which was the apparent low-bidder upon bid
opening, met the regulations and guidelines presented in the bid package and is declared to be
responsive; and
WHEREAS, the low bid by Hillcrest Contracting of $516,812.25 is $176,467.75 (25%)
below the Engineer's estimate of$693,280; and
WHEREAS, staff has reviewed the low bid and recommends awarding a contract in the
amount of $516,812.25 to Hillcrest Contracting, Inc.; and
WHEREAS, approval of tonight's resolution will increase the Director of Public Works
authority to approve change orders as necessary and authorizing the expenditure of all available
funds in the project.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista hereby accept bids and award contract for the "Glenhaven Way Improvements between
First Avenue and Amy Street in the City of Chula Vista (CIP No.: STL-304)" Project to Hillcrest
Contracting in the amount of $516,812.25, approving a budget transfer from existing
Southwestern Chula Vista Street Improvements Project (STLO-306) to CIP No. STL-304 for said
purpose, and authorizing the expenditure of all available funds in the project.
Presented by
Approved as to form by
a:~/~
Bart C. Miesfeld?
City Attorney
D f f'v 7/
I
Richard A. Hopkins
Director of Public Works
H:\ENGfNEER\RESOS\Resos2009\02-17..Q9\Rcso STL-J04 AwaniREV.do<: 4 - 8
2/17/09, Item 5
ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING ADMINISTERING AGENCY -
STATE MASTER AGREEMENT FOR FEDERAL AID PROJECTS,
NO. 11-5203R BETWEEN THE CITY OF CHULA VISTA AND
THE STATE OF CALIFORNIA; AND AUTHORIZING THE
DIIZECTOR OF PUBLIC WORKS TO EXECUTE THE
AGREEMENT, THE PROGRAM SUPPLEMENT AND ALL
FUTURE PROGRAM SUPPLEMENTS TO SAID AGREEMENT
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING ADMINISTERING AGENCY -
STATE MASTER AGREEMENT FOR STATE AID PROJECTS, N0.
00223S BETWEEN THE CITY OF CHULA VISTA AND THE
STATE OF CALIFORNIA; AND AUTHORIZING THE DIltECTOR
OF PUBLIC WORKS TO EXECUTE AGREEMENT
SUBMITTED BY: DIltECTOR OF PUBLIC WORKS
REVIEWED BY: ASSISTANT CITY MANAGER S~
CITY MANAGE$~`
~uj' 4/STHS VOTE: YES ^ NO
SUMMARY
Prior to the receipt of Federal or State funds for any local Federal or State Aid project, the City
and the State are required to enter into master agreements relative to prosecution of said projects
and maintenance of the completed facilities. The previous master agreement for Federal Aid
Projects was approved in 1997 by Resolution Number 18707. The previous master agreement
for State Aid Projects was approved in 2003 by Resolution Number 2003-436. The updated
master agreements now before Council sets forth the conditions o~ Federal and State Aid project
improvements, right-of--way, fiscal provisions, miscellaneous provisions, and maintenance. The
State has requested that all agencies sign the updated master agreements. In addition to the
master agreements, the State requires a program supplement agreement with each project that
receives Federal aid. Tonight's action will approve the agreements and authorize the Director of
Public Works to execute the master agreements for Federal and State Aid, as well as the program -
supplement and all future program supplements to said agreements.
ENVIRONMENTAL REVIEW
The Environmental Review Coordinator has reviewed the proposed activity for compliance with
the California Environmental Quality Act (CEQA) and has determined that the activity is not a
"Project" as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to
5-1
2/17/09, Item ~
Page 2 of 3
Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no
environmental review is necessazy.
RECOMMENDATION
Council adopt the resolutions.
BOARDS/COMMISSION RECOMMENDATION
Not applicable.
DISCUSSION
Federal legislation known as the Intermodal Surface Transportation Efficiency Act (ISTEA) of
1991 and subsequent Transportation Authorization Bills to fund transportation program such as
the Surface Transportation Program (STP), the Congestion Mitigation and Air Quality
Improvement Program (CMAQ), the Transportation Enhancement Program (TE), Highway
Safety Improvement Program (HSIl'), and the Highway Bridge Program (HBP) and others may
be available for use on local transportation facilities of public agencies qualified to receive
Federal and State funds. Before Federal or State aid will be made available for a specific
program project, the local agency and State are required to enter into an agreement relative to
prosecution of said project and maintenance of the completed facility. The agreements aze
standazd master agreements prepared by the State for execution by all participating local
agencies. Supplements to the master agreement (Program Supplements) covering individual
projects will be executed to implement specific projects. Said Program Supplements identify,
among other things, the period of time that funding for the specific project is available. The
Program Supplement attached states the funds are only available for a period of 5 yeazs (State)
and 7 years (Federal) from the date they are appropriated from the State general budget. The
specific project will be completed within the time period allowed.
The previous master agreement for Federal Aid Projects was approved in 1997 by Resolution
Number 18707. The Previous master agreement for State Aid Projects was approved in 2003 by
Resolution Number 2003-436. The updated master agreements now before Council include
provisions as follows:
1. Project Administration -Outlines general administration procedures for projects.
2. Rights of Way -Outlines procedures of right of way acquisition for projects.
3. Maintenance and Management -Provides for the future management and maintenance of
completed projects/facilities.
4. Fiscal Provisions -Outlines procedures for project financing and payment of project
costs.
5. Audits, Third Party Contracting, Records Retention and Reports -Covers requirements
for retention of records by the local agency (City) and requirement for independent audit
if the City receives $500,000 or more in Federal funds or if the City receives $500,000 or
more State funds in a single fiscal yeaz.
6. Federal Lobbying Activities Certification -Covers requirements for City certification that
no State or Federal funds have been paid to any State or Federal employee, officer or
legislator to influence the award of any State or Federal contract or, if said funds are paid,
a disclosure form is to be filed.
5-2
2/17/09, Item
Page 3 of 3
7. Miscellaneous Provisions -Includes hold harmless provisions, disclosure requirements,
and termination of agreements for failure to perform by City.
DECISION MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site
specific and consequently the 500 foot rule found in California Code of Regulations section
18704.2(a)(1) is not applicable to this decision.
FISCAL IMPACT
Execution of the master agreements and program supplements will allow the City to be
reimbursed for approved Federal and State Aid funded projects, and the City will be eligible for
additional funding and reimbursement for future projects.
ATTACHMENTS
1. Master Agreement Administering Agency-State Agreement for Federal Aid -Funded
Projects (11-5203R)
2. Master Agreement Administering Agency-State Agreement for State -Funded Projects
(002235)
3. Program Supplement No. N014
Prepared by: Roberto Ynno, Sr. Civil Engineer, Departmerst ojPublic Works
M:IGeneral SewiceslGSAdministrationlCounci/AgendalMasterAgreementlState Master- FedAid - R/RE~.dac
5-3
THE ATTACHED AGREEMENT HAS BEEN REVIEWED
AND APPROVED AS TO FORM BY THE CITY
ATTORNEY'S OFFICE AND WILL BE
FORMALLY SIGNED UPON APPROVAL BY
THE CITY COUNCIL
l' /] f P~i2 v/
Bart i fe d
City Attorney
Dated: Z "~ O ~
Master Agreement
Administering Agency-Statement Agreement for
Federal Aid Projects
Agreement No. 11-5203R
5-4
Arrac~~Mr 1
MASTER AGREEMENT
ADMINISTERING AGENCY-STATE AGREEMENT FOR
FEDERAL-AID PROJECTS
11 City of Chula Vista
District Administering Agency
Agreement No. 11-5203R
This AGREEMENT, is entered into effective this day of .2008, by and
between the City of Chula Vista, hereinafter referred to as "ADMINISTERING AGENCY,° and the
State of California, acting by and through its Department of Transportation (Caftrans), hereinafter
referred to as "STATE, and together referred to as "PARTIES° or individually as a "PARTY."
RECITALS:
1. WHEREAS, the Congress of the United States has enacted the Intermodal Surface
Transportation Efficiency Act (ISTEA) of 1991 and subsequent Transportation Authorization Bills
to fund transportation programs. These transportation programs include, but are not limited to, the
Surface Transportation Program (STP}, the Congestion Mitigation and Air Quality Improvement
Program (CMAQ), the Transportation Enhancement Program (TE}, Highway Safety Improvement
Program (HSIP) and the Highway Bridge Program (HBP) (collectively the °PROGRAMS"); and
2. WHEREAS, the Legislature of the State of California has enacted legislation by which certain
federal-aid funds may be made available for use on local transportation related projects of public
entities qualified to act as recipients of these federal-aid funds in accordance with the intent of
federal law; and
3. WHEREAS, before federal-funds will be made available for a specific :program project,
ADMINISTERING AGENCY and STATE are required to enter into an agreement to establish
terms and conditions applicable to the ADMINISTERING AGENCY when receiving federal funds
for a designated PROJECT facility and to the subsequent operation and maintenance of that
completed facility.
NOW, THEREFORE, the PARTIES agree as follows:
Page 1 of 26
5-5
ARTICLE i -PROJECT ADMINISTRATION
1. This AGREEMENT shall have no force or effect with respect to any program project unless and
until aproject-specific Program Supplement to this AGREEMENT for federa[-aid projects,
hereinafter referred to as "PROGRAM SUPPLEMENT°, has been fully executed by both STATE
and ADMINISTERING AGENCY.
2. The term "PROJECT', as used herein, means that authorized transportation related project and
related activities financed in part with federal-aid funds as more fully-described in an
° ~~
°AuthorizatioN Agreement Summary or Amendment/Modification Summary", herein referred to
as "E-76" or "E-76 (AMOD)" document authorized by STATE or the Federal Highway
Administration (FHWA).
3. The E-76/E-76(AMOD) shall designate the parry responsible for implementing PROJECT, type
of work and location of PROJECT.
4. The PROGRAM SUPPLEMENT sets out special covenants as a condition for the
ADMINISTERING AGENCY to receive federal-aid funds from/through STATE for designated
PROJECT. The PROGRAM SUPPLEMENT shall also show these Federal Funds that have been
initially encumbered for PROJECT along with the matching funds to be provided by
ADMINISTERING AGENCY and/or others. Execution of PROGRAM SUPPLEMENT by the
PARTIES shall cause ADMINISTERING AGENCY to adopt all of the terms of this AGREEMENT
as though fully set forth therein in the PROGRAM SUPPLEMENT. Unless otherwise expressly
delegated in a resolution by the governing body of ADMINISTERING AGENCY, and with written
concurrence by STATE, the PROGRAM SUPPLEMENT shall be approved and managed by the
governing body of ADMINISTERING AGENCY.
5. ADMINISTERING AGENCY agrees to execute and return each project-specific PROGRAM
SUPPLEMENT within ninety (90) days of receipt. The PARTIES agree that STATE may suspend
future authorizations/obiigations and Invoice payments for any on-going or future federal-aid
project performed by ADMINISTERING. AGENCY if any project-specific PROGRAM
SUPPLEMENT is not returned within that ninety (90) day period unless otherwise agreed by
STATE in writing.
6. ADMINISTERING AGENCY further agrees, as a condition to the release and payment of
Federal Funds encumbered for the PROJECT described in each PROGRAM SUPPLEMENT, to
comply with the terms and conditions of this AGREEMENT and all of the agreed-upon Special
Covenants or Remarks incorporated within the PROGRAM SUPPLEMENT, and
Cooperative/Contribution Agreement where appropriate, defining and identifying the nature of the
specific PROJECT.
7. Federal, State and matching funds will not participate in PROJECT work performed in advance
of the approval of the E-76 or E-76 (AMOD), unless otherwise stated in the executed project-
specific PROGRAM SUPPLEMENT. ADMINISTERING AGENCY agrees that it will only proceed
with the work authorized for that specific phase(s) on the project-specific E-76 or E-76 (AMOD).
ADMINISTERING AGENCY further agrees to not proceed with future phases of PROJECT prior to
receiving an E-76 (AMOD) from STATE for that phase(s) unless no Further Federal funds are
needed or for those future phase(s).
Page 2 of 26
5-6
8. That PROJECT or portions thereof, must be included in a federally approved Federal Statewide
Transportation Improvement Program (FSTIP) prior to ADMINISTERING AGENCY submitting the
"Request for Authorization".
9. ADMINISTERING AGENCY shall conform to all State statutes, regulations and procedures
(including those set forth in the Local Assistance Procedures Manual and the Local Assistance
Program Guidelines, hereafter collectively referred to as "LOCAL ASSISTANCE PROCEDURES")
relating to the federal-aid program, all Title 23 federal requirements, and all applicable federal
laws, regulations, and policy and procedural or instructional memoranda, unless otherwise
specifically waived as designated in the executed project-specific PROGRAM SUPPLEMENT.
10. If PROJECT is not on STATE-owned right of way, PROJECT shall be constructed in
accordance with LOCAL ASSISTANCE PROCEDURES that describes minimum statewide design
standards for local agency streets and roads. LOCAL ASSISTANCE PROCEDURES for projects
off the National Highway System (NHS) allow STATE to accept either the STATE's minimum
statewide design standards or the approved geometric design standards of ADMINISTERING
AGENCY. Additionally, for projects off the NHS, STATE will accept ADMINISTERING AGENCY-
approved standard specifications, standard plans, materials sampling and testing quality
assurance programs that meet the conditions described in the then current LOCAL ASSISTANCE
PROCEDURES.
11. If PROJECT involves work within or partially within STATE-owned right-of-way, that
PROJECT shall also be subject to compliance with the policies, procedures and standards of the
STATE Project Development Procedures Manual and Highway Design Manual and where
appropriate, an executed cooperative agreement between STATE and ADMINISTERING
AGENCY that outlines the PROJECT responsibilities and respective obligations of the PARTIES.
ADMINISTERING AGENCY and its' contractors shall each obtain an encroachment permit
through STATE prior to commencing any work within STATE rights of way or work which affects
STATE facilities.
12. When PROJECT is not on the State Highway System but includes work to be performed by a
railroad, the contract for such work shat{ be prepared by ADMINISTERING AGENCY or by
STATE, as the PARTIES may hereafter agree. In either event, ADMINISTERING AGENCY shall
enter into an agreement with the railroad providing for future maintenance of protective devices or
other facilities installed under the contract.
13. If PROJECT is using STATE funds, the Department of General Services, Division of the State
Architect, or its designee, shall review the contract PS&E for the construction of buildings,
structures, sidewalks, curbs and related facilities for accessibility and usability. ADMINISTERING
AGENCY shall not award a PROJECT construction contract for these types of improvements until
the State Architect has issued written approval stating that the PROJECT plans and specifications
comply with the provisions of sections 4450 and 4454 of the California Government Code, if
applicable. Further requirements and guidance are provided in Title 24 of the California Code of
Regulations.
14. ADMINISTERING AGENCY will advertise, award and administer PROJECT in accordance
with the current LOCAL ASSISTANCE PROCEDURES unless otherwise stated in the executed
project-specific PROGRAM SUPPLEMENT.
Page 3 of 26
5-7
__ _
15. ADMINISTERING AGENCY shall provide or arrange for adequate supervision and inspection
of each PROJECT. While consultants may perform supervision and inspection work for
PROJECT with a fully qualified and licensed engineer, ADMINISTERING AGENCY shall provide a
full-time employee to be in responsible charge of each PROJECT.
16. ADMINISTERING AGENCY shall submit PROJECT-specific contract award documents to
STATE's District Local Assistance Engineer within sixty (60) days after contract award. A copy of
the award documents shall also be included with the submittal of the first invoice for a construction
contract by ADMINISTERING AGENCY to: Department of Transportation, Division of Accounting
Local Programs Accounting Branch, MS #33, PO Box 942874, Sacramento, California 94274-
0001.
17. ADMINISTERING AGENCY shall submit the final report documents that collectively constitute.
a °Report of Expenditures" within one hundred eighty (180) days of PROJECT completion. Failure
by ADMINISTERING AGENCY to submit a "Report of Expenditures" within one hundred
eighry(180) days of project completion will result in STATE imposing sanctions upon
ADMINISTERING AGENCY in accordance with the current LOCAL ASSISTANCE
PROCEDURES.
18. ADMINISTERING AGENCY shall comply with: (i) section 504 of the Rehabilitation Act of 1973
which prohibits discrimination on the basis of disability in federally assisted programs; (ii) the
Americans with Disabilities Act (ADA) of 1990 which prohibits discrimination on the basis of
disability irrespective of funding; and (iii) all applicable regulations and guidelines issued pursuant
to both the Rehabilitation Act and the ADA.
19. The Congress of the United States, the Legislature of the State of California and the Governor
of the State of California, each within their respective jurisdictions, have prescribed certain
nondiscrimination requirements with respect to contract and other work financed with public funds.
ADMINISTERING AGENCY agrees to comply with the requirements of the FAIR EMPLOYMENT
PRACTICES ADDENDUM (Exhibit A attached hereto) and the NONDISCRIMINATION
ASSURANCES (Exhibit B attached hereto). ADMINISTERING AGENCY further agrees that any
agreement entered into by ADMINISTERING AGENCY with a third parry for performance of
PROJECT-related work shall incorporate Exhibits A and B (with third parry's name replacing
ADMINISTERING AGENCY) as essential parts of such agreement to be enforced by that third
party as verified by ADMINISTERING AGENCY.
Page 4 of 26
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ARTICLE II - RIGHTS OF WAY
1. No contract for the construction of a federal-aid PROJECT shall be awarded until all necessary
rights of way have been secured. Prior to the advertising for construction of PROJECT,
ADMINISTERING AGENCY shall certify and, upon request, shall furnish STATE with evidence
that all necessary rights of way are available for construction purposes or will be available by the
time of award of the construction contract.
2. ADMINISTERING AGENCY agrees to indemnify and hold STATE harmless from any liability
that may result in the event the right of way for a PROJECT, including, but not limited to, being
clear as certified or if said right of way is found to contain hazardous materials requiring treatment
or removal to remediate in accordance with Federal and State laws. The furnishing of right of way
as provided for herein includes, in addition to all real property required for the PROJECT, title free
and clear of obstructions and encumbrances affecting PROJECT and the payment, as required by
applicable law, of relocation costs and damages to remainder real property not actually taken but
Injuriously affected by PROJECT. ADMINISTERING AGENCY shall pay, from its own non-
matching funds, any costs which arise out of delays to the construction of PROJECT because
utility facilities have not been timely removed or relocated, or because rights of way were not
available to ADMINISTERING AGENCY for the orderly prosecution of PROJECT work.
3. Subject to STATE approval and such supervision as is required by LOCAL ASSISTANCE
PROCEDURES over ADMINISTERING AGENCY'S right of way acquisition procedures,
ADMINISTERING AGENCY may claim reimbursement from Federal Funds for expenditures
incurred in purchasing only the necessary rights of way needed for the PROJECT after crediting
PROJECT with the fair market value of any excess property retained and not disposed of by
ADMINISTERING AGENCY.
4. When real property rights are to be acquired by ADMINISTERING AGENCY for a PROJECT,
said ADMINISTERING AGENCY must carry out that acquisition in compliance with all applicable
State and Federal laws and regulations, in accordance with State procedures as published in
State's current LOCAL ASSISTANCE PROCEDURES and STATE'S Right-of-Way Manual,
subject to STATE oversight to ensure that the completed work is acceptable under the Federal
Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended.
5. Whether or not federal-aid is to be requested for right of way, should ADMINISTERING
AGENCY, in acquiring right of way for PROJECT, displace an individual, family, business, farm
operation, or non-profit organization, relocation payments and services will be provided as set
forth in 49 CFR, Part 24. The public will be adequately informed of the relocation payments and
services which will be available, and, to the greatest extent practicable, no person lawfully
occupying real property shall be required to move from his/her dwelling or to move his/her
business or farm operation without at least ninety (90) days written notice from ADMINISTERING
AGENCY. ADMINISTERING AGENCY will provide STATE with specific assurances, on each
portion of the PROJECT, that no person will be displaced until comparable decent, safe and
sanitary replacement housing is available within a reasonable period of time prior to displacement,
and that ADMINISTERING AGENCY'S relocation program is realistic and adequate to provide
orderly, timely and efficient relocation of PROJECT- displaced persons as provided in 49 CFR,
Page 5 of 26
5-9
Part 24.
fi. ADMINISTERING AGENCY shall, along with recording the deed or instrument evidencing title
in the name of the ADMINISTERING AGENCY or their assignee, shall also record an Agreement
Declaring Restrictive Covenants (ADRC) as a separate document incorporating the assurances
included within Exhibits A and B and Appendices A, B, C and D of the AGREEMENT, as
appropriate.
Page 6 of 26
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ARTICLE III -MAINTENANCE AND MANAGEMENT
1. ADMINISTERING AGENCY will maintain and operate the property acquired, developed,
constructed, rehabilitated, or restored by PROJECT for its intended public use until such time as
the parties might amend this AGREEMENT to otherwise provide. With the approval of STATE,
ADMINISTERING AGENCY or its successors in interest in the PROJECT property may transfer
this obligation and responsibility to maintain and operate PROJECT property for that intended
public purpose to another public entity.
2. Upon ADMINISTERING AGENCY's acceptance of the completed federal-aid construction
contract or upon contractor being relieved of the responsibility for maintaining and protecting
PROJECT, ADMINISTERING AGENCY will be responsible for the maintenance, ownership,
liability, and the expense thereof, for PROJECT in a manner satisfactory to the authorized
representatives of STATE and FHWA and if PROJECT falls within the jurisdictional limits of
another Agency or Agencies, it is the duty of ADMINISTERING AGENCY to facilitate a separate
maintenance agreement(s) between itself and the other jurisdictional Agency or Agencies
providing for the operation, maintenance, ownership and liability of PROJECT. Until those
agreements are executed, ADMINISTERING AGENCY will be responsible for all PROJECT
operations, maintenance, ownership and liability in a manner satisfactory to the authorized
representatives of STATE and FHWA. If, within ninety (90) days after receipt of notice from
STATE that a PROJECT, or any portion thereof, is not being properly operated and maintained
and ADMINISTERING AGENCY has not satisfactorily remedied the conditions complained of, the
approval of future federal-aid projects of ADMINISTERING AGENCY will be withheld until the
PROJECT shall have been put in a condition of operation and maintenance satisfactory to STATE
and FHWA. The provisions of this section shall not apply to a PROJECT that has been vacated
through due process of law with STATE's concurrence.
3. PROJECT and its facilities shall be maintained by an adequate and well-trained staff of
engineers and/or such other professionals and technicians as PROJECT reasonably requires.
Said operations and maintenance staff may be employees of ADMINISTERING AGENCY, another
unit of government, or a contractor under agreement with ADMINISTERING AGENCY. All
maintenance will be performed at regular intervals or as required for efficient operation of the
complete PROJECT improvements.
Page 7 of 26
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a-ic
ARTICLE IV -FISCAL PROVISIONS
1. All contractual obligations of STATE are subject to the appropriation of resources by the
Legislature and the allocation of resources by the California Transportation Commission (CTC).
2. STATE'S financial commitment of Federal Funds will occur only upon the execution of this
AGREEMENT, the authorization of the project-specific E-76 or E-76 (AMOD), the execution of
each project-specific PROGRAM SUPPLEMENT, and STATE's approved finance letter.
3. ADMINISTERING AGENCY may submit signed duplicate invoices in arrears for reimbursement
of participating PROJECT costs on a monthly or quarterly progress basis once the project-specific
PROGRAM SUPPLEMENT has been executed by STATE.
4. ADMINISTERING AGENCY agrees, as a minimum, to submit invoices at least once every six
(6) months commencing after the funds are encumbered on either the project-specific PROGRAM
SUPPLEMENT or through aproject-specific finance letter approved by STATE. STATE reserves
the right to suspend future authorizations/obligations, and invoice payments for any on-going or
future federal-aid project by ADMINISTERING AGENCY if PROJECT costs have not been
invoiced by ADMINISTERING AGENCY for a six (6) month period
5. Invoices shall be submitted on ADMINISTERING AGENCY letterhead that includes the address
of ADMINISTERING AGENCY and shall be formatted in accordance with LOCAL ASSISTANCE
PROCEDURES
6. Invoices must have at least one copy of supporting backup documentation for costs incurred
and claimed for reimbursement by ADMINISTERING AGENCY. Acceptable backup
documentation includes, but is not limited to, agency's progress payment to the contractors,
copies of cancelled checks showing amounts made payable to vendors and contractors, and/or a
computerized summary of PROJECT costs.
7. Payments to ADMINISTERING AGENCY can only be released by STATE as reimbursement of
actual allowable PROJECT costs already incurred and paid for by ADMINISTERING AGENCY.
8. An Indirect Cost Rate Proposal and Central Service Cost Allocation Plan and related
documentation are to be provided to STATE (Caltrans Audits & Investigations) annually for review
and approval prior to ADMINISTERING AGENCY seeking reimbursement of indirect cost incurred
within each fiscal year being claimed for federal reimbursement.
9. Once PROJECT has been awarded, STATE reserves the right to de-obligate any excess
Federal Funds from the construction phase of PROJECT if the contract award amount is less than
the obligated amount, as shown on the PROJECT E-76 or E-76 (AMOD).
10. STATE will withhold the greater of either two (2) percent of the total of all Federal Funds
encumbered for each PROGRAM SUPPLEMENT or $40,000 until ADMINISTERING AGENCY
submits the Final Report of Expenditures for each completed PROGRAM SUPPLEMENT
PROJECT.
Page 8 of 26
5-12
11. The estimated total cost of PROJECT, the amount of Federal Funds obligated, and the
required matching funds may be adjusted by mutual consent of the PARTIES hereto with a
finance letter, a detailed estimate, if required, and approved E-76 (AMOD). Federal-aid funding
may be increased to cover PROJECT cost increases only if such funds are available and FHWA
concurs with that increase.
12. When additional federal-aid funds are not available, ADMINISTER{NG AGENCY agrees that
the payment of Federal Funds will be limited to the amounts authorized on the PROJECT specific
E-76 / E-76 (AMOD) and agrees that any increases in PROJECT costs must be defrayed with
ADMINISTERING AGENCY'S own funds.
13. ADMINISTERING AGENCY shall use its own non-Federal Funds to finance the local share of
eligible costs and all expenditures or contract items ruled ineligible for financing with Federal
Funds. STATE shall make the determination of ADMINISTERING AGENCY'S cost eligibility for
federal fund financing of PROJECT costs.
14. ADMINISTERING AGENCY will reimburse STATE for STATE'S share of costs for work
performed by STATE at the request of ADMINISTERING AGENCY. STATE'S costs shall include
overhead assessments in accordance with section 8755.1 of the State Administrative Manual.
15. Federal and state funds allocated from the State Transportation Improvement Program (STIP)
are subject to the timely use of funds provisions enacted by Senate Bill 45, approved in 1997, and
subsequent STIP Guidelines and State procedures approved by the CTC and STATE.
16. Federal Funds encumbered for PROJECT are available for liquidation for a period of seven (7)
years from the beginning of the State fiscal year the funds were appropriated in the State Budget.
State funds encumbered for PROJECT are available for liquidation only for five (5) years from the
beginning of the State fiscal year the funds were appropriated in the State Budget. Federal or
state funds not liquidated within these periods will be reverted unless an Cooperative Work
Agreement (CWA) is submitted by ADMINISTERING AGENCY and approved by the California
Department of Finance (per Government Code section 16304). The exact date of fund reversion
will be reflected in the STATE signed finance letter for PROJECT.
17. Payments to ADMINISTERING AGENCY for PROJECT-related travel and subsistence (per
diem) expenses of ADMINISTERING AGENCY forces and its contractors and subcontractors
claimed for reimbursement or as local match credit shall not exceed rates authorized to be paid
rank and file STATE employees under current State Department of Personnel Administration
(DPA) rules. If the rates invoiced by ADMINISTERING AGENCY are in excess of DPA rates,
ADMINISTERING AGENCY is responsible for the cost difference, and any overpayments
inadvertently paid by STATE shall be reimbursed to STATE by ADMINISTERING AGENCY on
demand within thirty (30) days of such invoice.
18. ADMINISTERING AGENCY agrees fo comply with Office of Management and Budget (OMB)
Circular A-87, Cost Principles for State and Local Govemments, and 49 CFR, Part 18, Uniform
Administrative Requirements for Grants and Cooperative Agreements to State and Local
Governments.
Page 9 of 26
5-13
19. ADMINISTERING AGENCY agrees, and will assure that its contractors and subcontractors will
be obligated to agree that (a) Contract Cost Principles and Procedures, 48 CFR, Federal
Acquisition Regulations System, Chapter 1, Part 31, et seq., shall be used to determine the
allowability of individual PROJECT cost items and (b) those parties shall comply with federal
administrative procedures in accordance with 49 CFR, Part 18, Uniform Administrative
Requirements for Grants and Cooperative Agreements to State and Local Governments. Every
sub-recipient receiving PROJECT funds as a contractor or sub-contractor under this
AGREEMENT shall comply with Federal administrative procedures in accordance with 49 CFR,
Part 18, Uniform Administrative Requirements for Grants and Cooperative Agreements to State
and Local Governments.
20. Any PROJECT costs for which ADMINISTERING AGENCY has received payment or credit
that are determined by subsequent audit to be unallowable under OMB Circular A-87, 48 CFR,
Chapter 1, Part 31 or 49 CFR, Part 18, are subject to repayment by ADMINISTERING AGENCY
to STATE. Should ADMINISTERING AGENCY fail to reimburse moneys due STATE within thirty
30 days of demand, or within such other period as may be agreed in writing between the
PARTIES hereto, STATE is authorized to intercept and withhold future payments due
ADMINISTERING AGENCY from STATE or any third-party source, including but not limited to,
the State Treasurer, the State Controller and the CTC.
21. Upon written demand by STATE, any overpayment to ADMINISTERING AGENCY of amounts
invoiced to STATE shall be returned to STATE.
22. Should ADMINISTERING AGENCY fail to refund any moneys due STATE as provided
hereunder or should ADMINISTERING AGENCY breach this AGREEMENT by failing to complete
PROJECT without adequate justification and approval by STATE, then, within thirty 30 days of
demand, or within such other period as may be agreed to in writing between the PARTIES,
STATE, acting through the State Controller, the State Treasurer, or any other public entity or
agency, may withhold or demand a transfer of an amount equal to the amount paid by or owed to
STATE from future apportionments, or any other funds due ADMINISTERING AGENCY from the
Highway Users Tax Fund or any other sources of funds, andlor may withhold approval of future
ADMINISTERING AGENCY federal-aid projects.
23. Should ADMINISTERING AGENCY be declared to be in breach of this AGREEMENT or
otherwise in default thereof by STATE, and if ADMINISTERING AGENCY is constituted as a joint
powers authority, special district, or any other public entity not directly receiving funds through the
State Controller, STATE is authorized to obtain reimbursement from whatever sources of funding
are available, including the withholding or transfer of funds, pursuant to Article IV - 22, from those
constituent entities comprising a joint powers authority or by bringing of an action against
ADMINISTERING AGENCY or its constituent member entities, to recover all funds provided by
STATE hereunder.
24. ADMINISTERING AGENCY acknowledges that the signatory party represents the
ADMINISTERING AGENCY and further warrants that there is nothing within a Joint Powers
Agreement, by which ADMINISTERING AGENCY was created, if any exists, that would restrict or
otherwise limit STATE's ability to recover State funds improperly spent by ADMINISTERING
AGENCY in contravention of the terms of this AGREEMENT.
Page t0 5 14
ARTICLE V
AUDITS, THIRD PARTY CONTRACTING, RECORDS RETENTION AND REPORTS
1. STATE reserves the right to conduct technical and financial audits of PROJECT work and
records when determined to be necessary or appropriate and ADMINISTERING AGENCY agrees,
and shall require its contractors and subcontractors to agree, to cooperate with STATE by making
all appropriate and relevant PROJECT records available for audit and copying as required by
paragraph three (3) of ARTICLE V.
2. ADMINISTERING AGENCY, its contractors and subcontractors shall establish and maintain an
accounting system and records that properly accumulate and segregate incurred PROJECT costs
and matching funds by line item for the PROJECT. The accounting system of ADMINISTERING
AGENCY, its contractors and all subcontractors shall conform to Generally Accepted Accounting
Principles, enable the determination of incurred costs at interim points of completion, and provide
support for reimbursement payment vouchers or invoices sent to or paid by STATE.
3. For the purpose of determining compliance with Title 21, California Code of Regulations,
Chapter 21, section 2500 et seq., when applicable, and other matters connected with the
performance of ADMINISTERING AGENCY's contracts with' third parties, ADMINISTERING
AGENCY, ADMINISTERING AGENCY'S contractors and subcontractors, and STATE shall each
maintain and make available for inspection and audit all books, documents, papers, accounting
records, and other evidence pertaining to the performance of such contracts, including, but not
limited to, the costs of administering those various contracts. All of the above referenced parties
shall make such AGREEMENT and PROGRAM SUPPLEMENT materials available at their
respective offices at all reasonable times during the entire PROJECT period and for three (3)
years from the date of final payment to ADMINISTERING AGENCY under any PROGRAM
SUPPLEMENT. STATE, the California State Auditor, or any duly authorized representative of
STATE or the United States, shall each have access to any books, records, and documents that
are pertinent to a PROJECT for audits, examinations, excerpts, and transactions and
ADMINISTERING AGENCY shall furnish copies thereof if requested.
4. ADMINISTERING AGENCY is required to have an audit in accordance with the Single Audit Act
of OMB Circular A-133 if it receives a total of $500,000 or more in Federal Funds in a single fiscal
year. The Federal Funds received under a PROGRAM SUPPLEMENT are a part of the
Catalogue of Federal Domestic Assistance (CFDA) 20.205, Highway Planning and Research.
5. ADMINISTERING AGENCY agrees to include all PROGRAM SUPPLEMENTS adopting the
terms of this AGREEMENT in the schedule of projects to be examined in ADMINISTERING
AGENCY's annual audit and in the schedule of projects to be examined under its single audit
prepared in accordance with OMB Circular A-133.
6. ADMINISTERING AGENCY shall not award a construction contract over $10,000 or other
contracts over $25,000 (excluding professional service contracts of the type which are required to
be procured in accordance with Government Code sections 4525 (d), (e) and (f) on the basis of a
noncompetitive negotiation for work to be performed under this AGREEMENT without the prior
written approval of STATE. Contracts awarded by ADMINISTERING AGENCY, if intended as
local match credit, must meet the requirements set forth in this AGREEMENT regarding local
match funds.
Page 11 of 26
5-15
7. Any subcontract entered into by ADMINISTERING AGENCY as a result of this AGREEMENT
shall contain all of the provisions of ARTICLE IV, FISCAL PROVISIONS, and this ARTICLE V,
AUDITS, THIRD-PARTY CONTRACTING RECORDS RETENTION AND REPORTS, and shall
mandate that travel and per diem reimbursements and third-party contract reimbursements to
subcontractors will be allowable as PROJECT costs only after those costs are incurred and paid
for by the subcontractors.
8. To be eligible for local match credit, ADMINISTERING AGENCY must ensure that local match
funds used for a PROJECT meet the fiscal provisions requirements outlined in ARTICLE IV in the
same manner as required of all other PROJECT expenditures.
9. In addition to the above, the pre-award requirements of third-party contractor/consultants with
ADMINISTERING AGENCY should be consistent with LOCAL ASSISTANCE PROCEDURES.
Page 12 of 26
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ARTICLE VI -FEDERAL LOBBYING ACTIVITIES CERTIF{CATION
1. By execution of this AGREEMENT, ADMINISTERING AGENCY certifies, to the best of the
signatory officer's knowledge and belief, that:
A. No federal or state appropriated funds have been paid or will be paid, by or on behalf of
ADMINISTERING AGENCY, to any person for influencing or attempting to influence an officer or
employee of any STATE or federal agency, a member of the State Legislature or United States
Congress, an officer or employee of the Legislature or Congress, or any employee of a Member of
the Legislature or Congress in connection with the awarding of any STATE or federal contract,
including this AGREEMENT, the making of any STATE or federal loan, the entering into of any
cooperative contract, and the extension, continuation, renewal, amendment, or modification of any
STATE or federal contract, grant, loan, or cooperative contract.
B. If any funds other than federal appropriated funds have been paid, or will be paid, to any
person for influencing or attempting to influence an officer or employee of any federal agency, a
member of Congress, an officer or employee of Congress or an employee of a member of
Congress in connection with this AGREEMENT, grant, local, or cooperative contract,
ADMINISTERING AGENCY shall complete and submit Standard Form-LLL, "Disclosure Form to
Rep Lobbying,° in accordance with the form instructions.
C. This certification is a material representation of fact upon which reliance was placed when this
AGREEMENT and each PROGRAM SUPPLEMENT was or will be made or entered into.
Submission of this certification is a prerequisite for making or entering into this AGREEMENT
imposed by Section 1352, Title 31, United States Code. Any parry who fails to file the required
certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000
for each such failure.
2. ADMINISTERING AGENCY also agrees by signing this AGREEMENT that the language of this
certification will be included in all lower tier sub-agreements which exceed $100,000 and that all
such sub-recipients shall certify and disclose accordingly.
Page 13 of 26
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ARTICLE VII -MISCELLANEOUS PROVISIONS
1. ADMINISTERING AGENCY agrees to use all State funds reimbursed hereunder only far
transportation purposes that are in conformance with Article XIX of the California State
Constitution and the relevant Federal Regulations.
2. This AGREEMENT is subject to any additional restrictions, limitations, conditions, or any statute
enacted by the State Legislature or adopted by the CTC that may affect the provisions, terms, or
funding of this AGREEMENT in any manner.
3. ADMINISTERING AGENCY and the officers and employees of ADMINISTERING AGENCY,
when engaged in the performance of this AGREEMENT, shall act in an independent capacity and
not as officers, employees or agents of STATE or the federal government.
4'. Each project-specific PROGRAM SUPPLEMENT shall separately establish the terms and
funding limits for each described PROJECT funded under the AGREEMENT. No federal or state
funds are obligated against this AGREEMENT.
5. ADMINISTERING AGENCY certifies that neither ADMINISTERING AGENCY nor its principals
are suspended or debarred at the time of the execution of this AGREEMENT. ADMINISTERING
AGENCY agrees that it will notify STATE immediately in the event a suspension or a debarment
occurs after the execution of this AGREEMENT.
6. ADMINISTERING AGENCY warrants, by execution of this AGREEMENT, that no person or
selling agency has been employed or retained to solicit or secure this AGREEMENT upon an
agreement or understanding for a commission, percentage, brokerage, or contingent fee,
excepting bona fide employees or bona fide established commercial or selling agencies
maintained by ADMINISTERING AGENCY for the purpose of securing business. For breach or
violation of this warranty, STATE has the right to annul this AGREEMENT without liability, pay
only for the value of the work actually performed, or in STATE's discretion, to deduct from the
price of consideration, or otherwise recover, the full amount of such commission, percentage,
brokerage, or contingent fee.
7. In accordance with Public Contract Code section 10296, ADMINISTERING AGENCY hereby
certifies under penalty of perjury that no more than one final unappealable finding of contempt of
court by a federal court has been issued against ADMINISTERING AGENCY within the immediate
preceding two (2) year period because of ADMINISTERING AGENCY's failure to comply with an
order of a federal court that orders ADMINISTERING AGENCY to comply with an order of the
National Labor Relations Board.
8. ADMINISTERING AGENCY shall disclose any financial, business, or other relationship with
STATE, FHWA or FTA that may have an impact upon the outcome of this AGREEMENT.
ADMINISTERING AGENCY shall also list current contractors who may have a financial interest in
the outcome of this AGREEMENT.
9. ADMINISTERING AGENCY hereby certifies that it does not now have nor shall it acquire any
financial or business interest that would conflict with the performance of PROJECT under this
Page 14yf 1 fi
AGREEMENT.
10. ADMINISTERING AGENCY warrants that this AGREEMENT was not obtained or secured
through rebates, kickbacks or other unlawful consideration either promised or paid to any STATE
employee. For breach or violation of this warranty, STATE shall have the right, in its discretion, to
terminate this AGREEMENT without liability, to pay only for the work actually performed, or to
deduct from the PROGRAM SUPPLEMENT price or otherwise recover the full amount of such
rebate, kickback, or other unlawful consideration.
11. Any dispute concerning a question of fact arising under this AGREEMENT that is not disposed
of by agreement shall be decided by the STATE's Contract Officer who may consider any written
or verbal evidence submitted by ADMINISTERING AGENCY. The decision of the Contract
Officer, issued in writing, shall be conclusive and binding on the PARTIES on all questions of fact
considered and determined by the Contract Officer.
12. Neither the pending of a dispute nor its consideration by the Contract Officer will excuse
ADMINISTERING AGENCY from full and timely performance in accordance with the terms of this
AGREEMENT.
13. Neither ADMINISTERING AGENCY nor any officer or employee thereof is responsible for any
injury, damage or liability occurring by reason of anything done or omitted to be done by, under or
in connection with any work, authority or jurisdiction arising under this AGREEMENT. It is
understood and agreed that STATE shall fully defend, indemnify and save harmless the
ADMINISTERING AGENCY and all of its officers and employees from ali claims, suits or actions
of every name, kind and description brought forth under, including, but not limited to, tortuous,
contractual, Inverse condemnation and other theories or assertions of liability occurring by reason
of anything done or omitted to be done by STATE under this AGREEMENT.
14. Neither STATE nor any officer or employee thereof shall be responsible for any injury, damage
or liability occurring by reason of anything done or omitted to be done by :ADMINISTERING
AGENCY under, or in connection with, any work, authority or jurisdiction arising under this
AGREEMENT. It is understood and agreed that ADMINISTERING AGENCY shall fully defend,
indemnify and save harmless STATE and ail of its officers and employees from all claims, suits or
actions of every name, kind and description brought forth under, including, but not limited to,
tortuous, contractual, inverse condemnation or other theories or assertions of liability occurring by
reason of anything done or omitted to be done by ADMINISTERING AGENCY under this
AGREEMENT.
15. STATE reserves the right to terminate funding for any PROJECT upon written notice to
ADMINISTERING AGENCY in the event that ADMINISTERING AGENCY fails to proceed with
PROJECT work in accordance with the project-specific PROGRAM SUPPLEMENT, the bonding
requirements if applicable, or otherwise violates the conditions of this AGREEMENT and/or
PROGRAM SUPPLEMENT, or the funding allocation such that substantial performance is
significantly endangered.
Page i5~f 2fi
16. No termination shall become effective if, within thirty (30) days after receipt of a Notice of
Termination, ADMINISTERING AGENCY either cures the default involved or, if not reasonably
susceptible of cure within said thirty (30) day period, ADMINISTERING AGENCY proceeds
thereafter to complete the cure in a manner and time line acceptable to STATE. Any such
termination shall be accomplished by delivery to ADMINISTERING AGENCY of a Notice of
Termination, which notice shall become effective not less than thirty (30) days after receipt,.
specifying the reason for the termination, the extent to which funding of work under this
AGREEMENT is terminated and the date upon which such termination becomes effective, if
beyond thirty (30) days after receipt. During the period before the effective termination date,
ADMINISTERING AGENCY and STATE shall meet to attempt to resolve any dispute. In the event
of such termination, STATE may proceed with the PROJECT work in a manner deemed proper by
STATE. If STATE terminates funding for PROJECT with ADMINISTERING AGENCY, STATE
shall pay ADMINISTERING AGENCY the sum due ADMINISTERING AGENCY under the
PROGRAM SUPPLEMENT and/or STATE approved finance letter prior to termination, provided,
however, ADMINISTERING AGENCY is not in default of the terms and conditions of this
AGREEMENT or the project-specific PROGRAM SUPPLEMENT and that the cost of PROJECT
completion to STATE shall first be deducted from any sum due ADMINISTERING AGENCY.
17. Incase of inconsistency or conflicts with the terms of this AGREEMENT and that of a project-
specific PROGRAM SUPPLEMENT, the terms stated in that PROGRAM SUPPLEMENT shall
prevail over those in this AGREEMENT.
18. Without the written consent of STATE, this AGREEMENT is not assignable by
ADMINISTERING AGENCY either in whole or in part.
19. No alteration or variation of the terms of this AGREEMENT shall be valid unless made in
writing and signed by the PARTIES, and no oral understanding or agreement not incorporated
herein shall be binding on any of the PARTIES.
IN WITNESS WHEREOF, the PARTIES have executed this AGREEMENT by their duly
authorized officers.
STATE OF CALIFORNIA City of Chula Vista
DEPARTMENT OF TRANSPORTATION
By
Chief, Office of Project Implementation
Division of Local Assistance
City of Chula Vista
Representative Name & Title
(Authorized Governing Body Representative)
Date
Date
Page 16 of 26
5-20
EXHIBIT A
FAIR EMPLOYMENT PRACTICES ADDENDUM
1. In the performance of this Agreement, ADMINISTERING AGENCY will not discriminate against
any employee for employment because of race, color, sex, sexual orientation, religion, ancestry or
national origin, physical disability, medical condition, marital status, political affiliation, family and
medical care leave, pregnancy leave, or disability leave. ADMINISTERING AGENCY will take
affirmative action to ensure that employees are treated during employment without regard to their
race, sex, sexual orientation, color, religion, ancestry, or national origin, physical disability, medical
condition, marital status, political affiliation, family and medical care leave, pregnancy leave, or
disability leave. Such action shall include, but not be limited to, the following: employment;
upgrading; demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates
of pay or other forms of compensation; and selection for training, including apprenticeship.
ADMINISTERING AGENCY shall post in conspicuous places, available to employees for
employment, notices to be provided by STATE setting forth the provisions of this Fair Employment
section.
2. ADMINISTERING AGENCY, its contractor(s) and all subcontractors shall comply with the
provisions of the Fair Employment and Housing Act (Government Code Section 1290-0 et seq.),
and the applicable regulations promulgated thereunder (California code of Regulations, Title 2,
Section 7285.0 et seq.). The applicable regulations of the Fair Employment and Housing
Commission implementing Govemment Code, Section 12900(a-f); set forth in Chapter 5 of
Division 4 of Title 2 of the California Code of Regulations are incorporated into this AGREEMENT
by reference and made a part hereof as if set forth in full. Each of the ADMINISTERING
AGENCY'S contractors and all subcontractors shall give written notice of their obligations under
this clause to labor organizations with which they have a collective bargaining or other
agreements, as appropriate.
3. ADMINISTERING AGENCY shall include the nondiscrimination and compliance provisions of
this clause in all contracts and subcontracts to perform work under this AGREEMENT.
4. ADMINISTERING AGENCY will permit access to the records of employment, employment
advertisements, application farms, and other pertinent data and records by STATE, the State Fair
Employment and Housing Commission, or any other agency of the State of California designated
by STATE, for the purposes of investigation to ascertain compliance with the Fair Employment
section of this Agreement.
5. Remedies for Willful Violation:
(a) STATE may determine a willful violation of the Fair Employment provision to have occurred
upon receipt of a final judgment to that effect from a court in an action to which ADMINISTERING
AGENCY was a party, or upon receipt of a written notice from the Fair Employment and Housing
Commission that it has investigated and determined that ADMINISTERING AGENCY has violated
the Fair Employment Practices Act and had issued an order under Labor Code Section 1426
which has become final or has obtained an injunction under Labor Code Section 1429.
Page~7Df Z1
(b) For willful violation of this Fair Employment Provision, STATE shall have the right to terminate
this Agreement either in whole or in part, and any loss or damage sustained by STATE in securing
the goods or services thereunder shall be borne and paid for by ADMINISTERING AGENCY and
by the surety under the performance bond, if any, and STATE may deduct from any moneys due
or thereafter may become due to ADMINISTERING AGENCY, the difference between the price
named in the Agreement and the actual cost thereof to STATE to cure ADMINISTERING
AGENCY's breach of this Agreement.
Page 18 of 2fi
5-22
EXHIBIT B
NONDISCRIMINATION ASSURANCES
ADMINISTERING AGENCY HEREBY AGREES THAT, as a condition to receiving any federal
financial assistance from the STATE, acting for the U.S. Department of Transportation, it will
comply with Title VI of the Civil Rights Act of 1964, 78 Stat. 252, 42 U.S.C. 2000d-42 U.S.C.
2000d-4 {hereinafter referred to as the ACT), and all requirements imposed by ar pursuant to Title
49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the
Secretary, Part 21, 'Nondiscrimination in Federally-Assisted Programs of the Department of
Transportation -Effectuation of Title VI of the Civil Rights Act of 1964" (hereinafter referred to as
the REGULATIONS), the Federal-aid Highway Act of 1973, and other pertinent directives, to the
end that in accordance with the ACT, REGULATIONS, and other pertinent directives, no person in
the United States shall, on the grounds of race, color, sex, national origin, religion, age or
disability, be excluded from participation in, be denied the benefits of, or be otherwise subjected to
discrimination under any program or activity for which ADMINISTERING AGENCY receives
federal financial assistance from the Federal Department of Transportation. ADMINISTERING
AGENCY HEREBY GIVES ASSURANCE THAT ADMINISTERING AGENCY will promptly take
any measures necessary to effectuate this agreement. This assurance is required by subsection
21.7(a) (1) of the REGULATIONS.
More specifically, and without limiting the above general assurance, ADMINISTERING AGENCY
hereby gives the following specific assurances with respect to its federal-aid Program:
1. That ADMINISTERING AGENCY agrees that each "program" and each "facility" as defined in
subsections 21.23 (e) and 21.23 (b) of the REGULATIONS, will be (with regard to a "program")
conducted, or will be (with regard to a "facility") operated in compliance with all requirements
imposed by, or pursuant to, the REGULATIONS.
2. That ADMINISTERING AGENCY shall insert the following notification in all solicitations for bids
for work or material subject to the REGULATIONS made in connection with the federal-aid
Program and, in adapted form, in all proposals for negotiated agreements:
ADMINISTERING AGENCY hereby notifies all bidders that it will affirmatively insure that in any
agreement entered into pursuant to this advertisement, minority business enterprises will be
afforded full opportunity to submit bids in response to this invitation and will not be discriminated
against on the grounds of race, color, sex, national origin, religion, age, or disability in
consideration for an award.
3. That ADMINISTERING AGENCY shall insert the clauses of Appendix A of this assurance in
every agreement subject to the ACT and the REGULATIONS.
4. That the clauses of Appendix B of this Assurance shall be included as a covenant running with
the land, in any deed effecting a transfer of real property, structures, or improvements thereon, or
interest therein.
Page 19 of 26
5-23
5. That where ADMINISTERING AGENCY receives federal financial assistance to construct a
facility, or part of a facility, the Assurance shall extend to the entire facility and facilities operated in
connection therewith.
6. That where ADMINISTERING AGENCY receives federal financial assistance in the form, or for
the acquisition, of real property or an interest in real properly, the Assurance shall extend to rights
to space on, over, or under such property.
7. That ADMINISTERING AGENCY shall include the appropriate clauses set forth in Appendix C
and D of this Assurance, as a covenant running with the land, in any future deeds, leases, permits,
licenses, and similar agreements entered into by the ADMINISTERING AGENCY with other
parties:
Appendix C;
(a) for the subsequent transfer of real property acquired or improved under the federal-aid
Program; and
Appendix D;
(b) for the construction or use of or access to space on, over, or under real property acquired, or
improved under the federal-aid Program.
8. That this assurance obligates ADMINISTERING AGENCY for the period during which federal
financial assistance is extended to the program, except where the federal financial assistance is to
provide, or is in the form of, personal property or real property or interest therein, or structures, or
improvements thereon, in which case the assurance obligates ADMINISTERING AGENCY or any
transferee for the longer of the following periods:
(a) the period during which the property is used for a purpose for which the federal financial
assistance is extended, or far another purpose involving the provision of similar services or
benefits; or '.
(b) the period during which ADMINISTERING AGENCY retains ownership or possession of the
property.
9. That ADMINISTERING AGENCY shall provide for such methods of administration for the
program as are found by the U.S. Secretary of Transportation, or the official to whom he delegates
specific authority, to give reasonable guarantee that ADMINISTERING AGENCY, other recipients,
sub-grantees, applicants, sub-applicants, transferees, successors in interest, and other
participants of federal financial assistance under such program will comply with all requirements
imposed by, or pursuant to, the ACT, the REGULATIONS, this Assurance and the Agreement.
10. That ADMINISTERING AGENCY agrees that the United States and the State of California
have a right to seek judicial enforcement with regard to any matter arising under the ACT, the
REGULATIONS, and this Assurance.
Page 20 of 26
5-24
11. ADMINISTERING AGENCY shall not discriminate on the basis of race, religion, age, disability,
color, national origin or sex in the award and performance of any STATE assisted contract or in
the administration on its DBE Program or the requirements of 49 CFR Part 26. ADMINISTERING
AGENCY shall take all necessary and reasonable steps under 49 CFR Part 26 to ensure non
discrimination in the award and administration of STATE assisted contracts. ADMINISTERING
AGENCY'S DBE Race-Neutral Implementation Agreement is incorporated by reference in this
AGREEMENT. Implementation of this program is a legal obligation and failure to carry out its
terms shall be treated as a violation of this agreement. Upon notification to the recipient of its
failure to carry out its approved DBE Race-Neutral Implementation Agreement, STATE may
Impose sanctions as provided for under 49 CFR Part 26 and may, in appropriate cases, refer the
matter for enforcement under 18 USC 1001 and/or the Program Fraud Civil Remedies Act of 1985
(31 USC 3801 es seq.)
THESE ASSURANCES are given in consideration of and for the purpose of obtaining any and all
federal grants, loans, agreements, property, discounts or other federal financial assistance
extended after the date hereof to ADMINISTERING AGENCY by STATE, acting for the U.S.
Department of Transportation, and is binding on ADMINISTERING AGENCY, other recipients,
subgrantees, applicants, sub-applicants, transferees, successors in interest and other participants
in the federal-aid Highway Program.
Page 21~f ~~
APPENDIX A TO EXHIBIT B
During the performance of this Agreement, ADMINISTERING AGENCY, for itself, its assignees
and successors in interest (hereinafter collectively referred to as ADMINISTERING AGENCY)
agrees as follows:
(1) Compliance with Regulations: ADMINISTERING AGENCY shall comply with the regulations
relative to nondiscrimination in federally assisted programs of the Department of Transportation,
Title 49, Code of Federal Regulations, Part 21, as they may be amended from time to time,
(hereinafter referred to as the REGULATIONS), which are herein incorporated by reference and
made a part of this agreement.
(2) Nondiscrimination: ADMINISTERING AGENCY, with regard to the work performed by it during
the AGREEMENT, shall not discriminate on the grounds of race, color, sex, national origin,
religion, age, or disability in the selection and retention of sub-applicants, including procurements
of materials and leases of equipment. ADMINISTERING AGENCY shall not participate either
directly or indirectly in the discrimination prohibited by Section 21.5 of the REGULATIONS,
including employment practices when the agreement covers a program set forth in Appendix B of
the REGULATIONS.
(3) Solicitations for Sub-agreements, Including Procurements of Materials and Equipment: In all
solicitations either by competitive bidding or negotiation made by ADMINISTERING AGENCY for
work to be performed under aSub-agreement, including procurements of materials or leases of
equipment, each potential sub-applicant or supplier shall be notified by ADMINISTERING
AGENCY of the ADMINISTERING AGENCY's obligations under this Agreement and the
REGULATIONS relative to nondiscrimination on the grounds of race, color, or national origin.
(4) Information and Reports: ADMINISTERING AGENCY shall provide all information and reports
required by the REGULATIONS, or directives issued pursuant thereto, and shall permit access to
ADMINISTERING AGENCY'S books, records, accounts, other sources of information, and its
facilities as may be determined by STATE or FHWA to be pertinent to ascertain compliance with
such REGULATIONS or directives. Where any information required of ADMINISTERING
AGENCY is in the exclusive possession of another who fails or refuses to furnish this information,
ADMINISTERING AGENCY shall so certify to STATE or the FHWA as appropriate, and shall set
forth what efforts ADMINISTERING AGENCY has made to obtain the information.
(5} Sanctions for Noncompliance: In the event of ADMINISTERING AGENCY's noncompliance
with the nondiscrimination provisions of this agreement, STATE shall impose such agreement
sanctions as it or the FHWA may determine to be appropriate, including, but not limited to:
(a) withholding of payments to ADMINISTERING AGENCY under the Agreement within a
reasonable period of time, not to exceed 90 days; and/or
(b) cancellation, termination or suspension of the Agreement, in whole or in part.
Page 22 of 26
5-25
(6) Incorporation of Provisions: ADMINISTERING AGENCY shall include the provisions of
paragraphs (1) through (6) in every sub-agreement, including procurements of materials and
leases of equipment, unless exempt by the REGULATIONS, or directives issued pursuant thereto.
ADMINISTERING AGENCY shall take such action with respect to any sub-agreement or
procurement as STATE or FHWA may direct as a means of enforcing such provisions including
sanctions for noncompliance, provided, however, that, in the event ADMINISTERING AGENCY
becomes involved in, or is threatened with, litigation with asub-applicant or supplier as a result of
such direction, ADMINISTERING AGENCY may request STATE enter into such litigation to
protect the interests of STATE, and, in addition, ADMINISTERING AGENCY may request the
United States to enter into such litigation to protect the interests of the United States.
Page 23 of 26
5-27
APPENDIX B TO EXHIBIT B
The following clauses shall be included in any and all deeds effecting or recording the transfer of
PROJECT real property, structures or improvements thereon, or interest therein from the United
States.
(GRANTING CLAUSE)
NOW, THEREFORE, the U.S. Department of Transportation, as authorized by law, and upon the
condition that ADMINISTERING AGENCY will accept title to the lands and maintain the project
constructed thereon, in accordance with Title 23, United States Code, the Regulations for the
Administration of federal-aid for Highways and the policies and procedures prescribed by the
Federal Highway Administration of the Department of Transportation and, also in accordance with
and in compliance with the Regulations pertaining to and effectuating the provisions of Title VI of
the Civil Rights Act of 1964 (78 Stat. 252; 42 U.S.C. 2000d to 2000d-4), does hereby remise,
release, quitclaim and convey unto the ADMINISTERING AGENCY ail the right, title, and interest
of the U.S. Department of Transportation in, and to, said lands described iri Exhibit "A" attached
hereto and made a part hereof.
(HABENDUM CLAUSE)
TO HAVE AND TO HOLD said lands and interests therein unto ADMINISTERING AGENCY and
its successors forever, subject, however, to the covenant, conditions, restrictions and reservations
herein contained as follows, which will remain in effect for the period during which the real
property or structures are used for a purpose for which federal financial assistance is extended or
for another purpose involving the provision of similar services or benefits and shall be binding on
ADMINISTERING AGENCY, its successors and assigns.
ADMINISTERING AGENCY, in consideration of the conveyance of said lands and interests in
lands, does hereby covenant and agree as a covenant running with the land for itself, its
successors and assigns,
(1) that no person shall on the grounds of race, color, sex, national origin, religion, age or
disability, be excluded from participation in, be denied the benefits of, or be othervvise subjected to
discrimination with regard to any facility located wholly or in part on, over, or under such lands
hereby conveyed (;) (and) `
(2) that ADMINISTERING AGENCY shall use the lands and interests in lands so conveyed, in
compliance with ali requirements imposed by or pursuant to Title 49, Code of Federal Regulations,
Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Non-discrimination in
federally-assisted programs of the Department of Transportation -Effectuation of Title VI of the
Civil Rights Act of 1964, and as said Regulations may be amended (;) and
(3) that in the event of breach of any of the above-mentioned nondiscrimination conditions, the
U.S. Department of Transportation shall have a right to re-enter said lands and facilities on said
land, and the above-described land and facilities shall thereon revert to and vest in and become
the absolute property of the U.S. Department of Transportation and its assigns as such interest
existed prior to this deed.`
" Reverter clause and related language to be used only when it is determined that such a clause is
Page 24 of 26
5-28
necessary in order to effectuate the purposes of Title VI of the Civil Rights Act of 1964,
APPENDIX C TO EXHIBIT B
The following clauses shall be included in any and all deeds, licenses, leases, permits, or similar
instruments entered into by ADMINISTERING AGENCY, pursuant to the provisions of Assurance
7(a) of Exhibit B.
The grantee {licensee, lessee, permittee, etc., as appropriate) for himself, his heirs, personal
representatives, successors in interest, and assigns, as a part of the consideration hereof, does
hereby covenant and agree (in the case of deeds and leases add "as covenant running with the
land") that in the event facilities are constructed, maintained, or otherwise operated on the said
property described in this (deed, license, lease, permit, etc.) for a purpose for which a U.S.
Department of Transportation program or activity is extended or for another purpose involving the
provision of similar services or benefits, the (grantee, licensee, lessee, permittee, etc.), shall
maintain and operate such facilities and services in compliance with all other requirements
imposed pursuant to Title 49, Code of Federal Regulations, U.S. Department of Transportation,
Subtitle A, Office of Secretary, Part 21, Nondiscrimination in federally-assisted programs of the
Department of Transportation -Effectuation of Title VI of the Civil Rights Act of 1964, and as said
Regulations may be amended.
(Include in licenses, leases, permits, etc.)'
That in the event of breach of any of the above nondiscrimination covenants, ADMINISTERING
AGENCY shat! have the right to terminate the (license, lease, permit etc.) and to re-enter and
repossess said land and the facilities thereon, and hold the same as if said (license, lease, permit,
etc.) had never been made or issued.
(Include in deeds)'
That in the event of breach of any of the above nondiscrimination covenants, ADMINISTERING
AGENCY shall have the right to re-enter said land and facilities thereon, 'and the above-
described lands and facilities shall thereupon revert to and vest in and become the absolute
property of ADMINISTERING AGENCY and its assigns.
" Reverter clause and related language to be used only when it is determined that such a clause is
necessary in order to effectuate the purposes of Title VI of the Civil Rights Act of 1964.
Page 25 of 26
5-29
APPENDIX D TO EXHIBIT B
The following shall be included in all deeds, licenses, leases, permits, or similar agreements
entered into by the ADMINISTERING AGENCY, pursuant to the provisions of Assurance 7 (b) of
Exhibit B.
The grantee (licensee, lessee, permittee, etc., as appropriate) for himself, his personal
representatives, successors in interest and assigns, as a part of the consideration hereof, does
hereby covenant and agree (in the case of deeds, and leases add °as a covenant running with the
land") that:
(1) no person on the ground of race, color, sex, national origin, religion, age or disability, shall be
excluded from participation in, denied the benefits of, or otherwise subjected to discrimination in
the use of said facilities;
(2) that in the construction of any improvements on, over, or under such land and the furnishing of
services thereon, no person on the ground of race, color, sex, national origin, religion, age or
disability shall be excluded from participation in, denied the benefits of, or otherwise be subjected
to discrimination; and
(3) that the (grantee, licensee, lessee, permittee, etc.,) shall use the premises in compliance with
the Regulations.
(Include in licenses, leases, permits, etc.)"
That in the event of breach of any of the above nondiscrimination covenants, ADMINISTERING
AGENCY shall have the right to terminate the (license, lease, permit, etc.) and to re-enter and
repossess said land and the facilities thereon, and hold the same as if said (license, lease, permit,
etc.) had never been made or issued.
(Include in deeds)"
That in the event of breach of any of the above nondiscrimination covenants, ADMINISTERING
AGENCY shall have the right to re-enter said land and facilities thereon, and the above-
described lands and facilities shall thereupon revert to and vest in and become the absolute
property of ADMINISTERING AGENCY, and its assigns.
Reverter clause and related language to be used only when it is determined that such a clause is
necessary in order to effectuate the purposes of Title VI of the Civil Rights Act of 1964.
Page 26 of 26
5-30
THE ATTACHED AGREEMENT HAS BEEN REVIEWED
AND APPROVED AS TO FORM BY THE CITY
ATTORNEY'S OFFICE AND WILL BE
FORMALLY SIGNED UPON APPROVAL BY
THE CITY COUNCIL
jj f~a z ~/
Bart C. iesfeld
City Attorney
Dated: Z 3 ~ y
Master Agreement
Administering Agency-Statement Agreement for
Federal Aid Projects
Agreement No. 00223 S
5-31
ATTACHMEM' 2
MASTER AGREEMENT
ADMINISTERING AGENCY-STATE AGREEMENT FOR
STATE-FUNDED PROJECTS
11 City of Chula Vista
District Administering Agency
Agreement No. 00223S
This AGREEMENT, is entered into effective this day of 2008, by and
between the City of Chula Vista, hereinafter referred to as "ADMINISTERING AGENCY," and the
State of California, acting by and through its Department of Transportation (Caltrans), hereinafter
referred to as "STATE", and together referred to as "PARTIES" or individually as a "PARTY."
RECITALS:
1. WHEREAS, the Legislature of the State of Califomia has enacted legislation by which certain
State funds are made available for use on local transportation related projects of public entities
qualified to act as recipients of these state funds; and
2. WHEREAS, ADMINISTERING AGENCY has applied to the California Transportation
Commission (CTC) and/or STATE for funding from either the State Transportation Improvement
Program (ST1P), or other State-funded programs (herein referred to as STATE FUNDS}, as
defined in the Local Assistance Program Guidelines (LAPG), for use on local authorized
transportation related projects as a local administered project(s), hereinafter referred to as
"PROJECT"; and
3. WHEREAS, said PROJECT will not receive any federal funds; and
4. WHEREAS, before STATE FUNDS will be made available for PROJECT, ADMINISTERING
AGENCY and STATE are required to enter into an agreement to establish terms and conditions
applicable to the ADMINISTERING AGENCY when receiving STATE FUNDS for a designated
PROJECT facility and to the subsequent operation and maintenance of that completed facility.
NOW, THEREFORE, the PARTIES agree as follows:
Page 1 of 16
5-32
ARTICLE I -PROJECT ADMINISTRATION
1. This AGREEMENT shall have no force or effect with respect to any program project unless and
until aproject-specific Program Supplement to this AGREEMENT for state funded projects,
hereinafter referred to as "PROGRAM SUPPLEMENT', has been fully executed by both STATE
and ADMINISTERING AGENCY.
2. The State approved project-specific allocation letter designate the party responsible for
implementing PROJECT, type of work and location of PROJECT.
3. The PROGRAM SUPPLEMENT sets out special covenants as a condition for the
ADMINISTERING AGENCY to receive STATE FUNDS from/through STATE for designated
PROJECT. The PROGRAM SUPPLEMENT shall also show these STATE FUNDS that have
been initially encumbered for PROJECT along w(th the matching funds to be provided by
ADMINISTERING AGENCY and/or others. Execution of PROGRAM SUPPLEMENT by the
PARTIES shall cause ADMINISTERING AGENCY to adopt all of the terms of this AGREEMENT
as though fully set forth therein in the PROGRAM SUPPLEMENT. Unless otherwise expressly
delegated in a resolution by the governing body of ADMINISTERING AGENCY, and with written
concurrence by STATE, the PROGRAM SUPPLEMENT shall be approved and managed by the
governing body of ADMINISTERING AGENCY.
4. ADMINISTERING AGENCY agrees to execute and return each project-specific PROGRAM
SUPPLEMENT within ninety (90) days of receipt. The PARTIES agree that STATE may suspend
future allocations, encumbrances and invoice payments for any on-going or future STATE
FUNDED PROJECT performed by ADMINISTERING AGENCY if any project-specific PROGRAM
SUPPLEMENT is not returned within that ninety (90) day period unless otherwise agreed by
STATE in writing.
5. ADMINISTERING AGENCY further agrees, as a condition to the release and payment of
STATE FUNDS encumbered for the PROJECT described in each PROGRAM SUPPLEMENT, to
comply with the terms and conditions of this AGREEMENT and all of the agreed-upon Special
Covenants or Remarks incorporated within the PROGRAM SUPPLEMENT, and
Cooperative/Contribution Agreement where appropriate, defining and identifying the nature of the
specific PROJECT.
6. STATE FUNDS will not participate in any portion of PROJECT work performed in advance of
the effective date of the executed PROGRAM SUPPLEMENT for said PROJECT.
7. Projects allocated with STATE FUNDS from the STIP will be administered in accordance with
the current CTC STIP Guidelines, as adopted or amended and in accordance with Chapter 23 of
the Local Assistance Program Guidelines (LAPG) published by STATE.
8. Projects allocated with STATE FUNDS not programmed in the STIP will be administered in
accordance with the applicable chapter of the LAPG and/or any other instructions published by
STATE.
9. ADMINISTERING AGENCY'S eligible costs for preliminary engineering work includes all
preliminary work directly related to PROJECT up to contract award for construction, including, but
not limited to, environmental studies and permits (E&P), preliminary surveys and reports,
laboratory work, soil investigations, the preparation of plans, specifications and estimates (PS&E),
advertising for bids, awarding of a contract and project development contract administration.
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10. ADMINISTERING AGENCY'S eligible costs for construction engineering includes actual
inspection and supervision of PROJECT construction work; construction staking; laboratory and
field testing; and the preparation and processing of field reports, records, estimates, final reports,
and allowable expenses of employees/consultants engaged in such activities.
11. Unless the PARTIES agree otherwise in writing, ADMINISTERING AGENCY'S employees or
its sub-contractor engineering consultant shall be responsible for all PROJECT engineering work.
12. ADMINISTERING AGENCY shall not proceed with final design of PROJECT until final
environmental approval of PROJECT. Final design entails the design work necessary to complete
the PS&E and other work necessary for a construction contract but not required earlier for
environmental clearance of that PROJECT.
13. If PROJECT is not on STATE-owned right-of-way, PROJECT shall be constructed in
accordance with Chapter 11 of the Local Assistance Procedures Manual (LAPM) that describes
minimum statewide design standards for local agency streets and roads. The design standards
for projects off the National Highway System (NHS) allow STATE to accept either the STATE's
minimum statewide design standards or the approved geometric design standards of
ADMINISTERING AGENCY. Additionally, for projects off the NHS, STATE will accept
ADMINISTERING AGENCY-approved standard specifications, standard plans, materials
sampling and testing quality assurance programs that meet the conditions described in the then
current Local Assistance Procedures Manual.
14. If PROJECT involves work within or partially within STATE-owned right-of-way, that
PROJECT shall also be subject to compliance with the policies, procedures and standards of the
STATE Project Development Procedures Manual and Highway Design Manual and where
appropriate, an executed cooperative agreement between STATE and ADMINISTERING
AGENCY that outlines the PROJECT responsibilities and respective obligations of the PARTIES.
ADMINISTERING AGENCY and its' contractors shall each obtain an encroachment permit
through STATE prior to commencing any work within STATE rights of way or work which affects
STATE facilities.
15. When PROJECT is not on the State Highway System (SHS) but includes work to be
performed by a railroad, the contract for such work shall be prepared by ADMINISTERING
AGENCY or by STATE, as the PARTIES may hereafter agree. In either event, ADMINISTERING
AGENCY shall enter into an agreement with the railroad providing for future maintenance of
protective devices or other facilities installed under the contract.
16. The Department of General Services, Division of the State Architect, or its designee, shall
review the contract PS&E for the construction of buildings, structures, sidewalks, curbs and
related facilities for accessibility and usability. ADMINISTERING AGENCY shall not award a
PROJECT construction contract for these types of improvements until the State Architect has
issued written approval stating that the PROJECT plans and specifications comply with the
provisions of sections 4450 and 4454 of the California Government Code, if applicable. Further
requirements and guidance are provided in Title 24 of the California Code of Regulations.
17. ADMINISTERING AGENCY shall provide or arrange for adequate supervision and inspection
of each PROJECT. While consultants may perform supervision and inspection work for
PROJECT with a fully qualified and licensed engineer, ADMINISTERING AGENCY shall provide a
full-time employee to be in responsible charge of each PROJECT.
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18. Unless otherwise provided in the PROGRAM SUPPLEMENT, ADMINISTERING AGENCY
shall advertise, award, and administer the PROJECT construction contract or contracts.
19. The cost of maintenance, security, or protection performed by ADMINISTERING AGENCY or
contractor forces during any temporary suspension of PROJECT or at any other time may not be
charged to the PROJECT.
20. ADMINISTERING AGENCY shall submit PROJECT-specific award information, using Exhibit
23-A of the LAPG, to STATE's District Local Assistance Engineer, within sixty (60) days after
contract award. A copy of Exhibit 23-A shall also be included with the submittal of the first invoice
for a construction contract by ADMINISTERING AGENCY to: Department of Transportation,
Division of Accounting Local Programs Accounting Branch, MS #33, PO Box 942874,
Sacramento, Califomia 94274-0001.
21. ADMINISTERING AGENCY shall submit the final report documents that collectively constitute
a "Report of Expenditures° within one hundred eighty (180) days of PROJECT completion. Failure
by ADMINISTERING AGENCY to submit a "Report of Expenditures" within 180 days of project
completion will result in STATE imposing sanctions upon ADMINISTERING AGENCY in
accordance Chapters 17 and 19 of the Local Assistance Procedures Manual.
22. ADM{NISTERING AGENCY shall comply with the Americans with Disabilities Act (ADA) of
1990 that prohibits discrimination on the basis of disability and alt applicable regulations and
guidelines issued pursuant to the ADA.
23. The Governor and the Legislature of the State of California, each within their respective
jurisdictions, have prescribed certain nondiscrimination requirements with respect to contract and
other work financed with public funds. ADMINISTERING AGENCY agrees to comply with the
requirements of the FAIR EMPLOYMENT PRACTICES ADDENDUM, attached hereto as Exhibit
A and further agrees that any agreement entered into by ADMINISTERING AGENCY with a third
party for performance of work connected with PROJECT shall incorporate Exhibit A (with third
party's name replacing ADMINISTERING AGENCY) as parts of such agreement.
24. ADMINISTERING AGENCY shall include in ali subcontracts awarded when applicable, a
clause that requires each subcontractor to comply with Califomia Labor Code requirements that all
workers employed on public works aspects of any project (as defined in California Labor Code
sections 1720-1815) be paid not less than the general prevailing wage rates predetermined by
the Department of Industrial Relations as effective at the date of contract award by the
ADMINISTERING AGENCY.
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ARTICLE II -RIGHTS OF WAY
1. No contract for the construction of a STATE FUNDED PROJECT shall be awarded until all
necessary rights of way have been secured. Prior to the advertising for construction of PROJECT,
ADMINISTERING AGENCY shall certify and, upon request, shall furnish STATE with evidence
that all necessary rights-of-way are available for construction purposes or will be available by the
time of award of the construction contract.
2. The furnishing of rights of way by ADMINISTERING AGENCY as provided for herein includes,
and is limited to, the fallowing, unless the PROGRAM SUPPLEMENT provides otherwise.
(a) Expenditures to purchase all real property required for PROJECT free and clear of liens,
conflicting easements, obstructions and encumbrances, after crediting PROJECT with the fair
market value of any excess property retained and not disposed of by ADMINISTERING AGENCY.
(b) The cost of furnishing of right-of-way as provided for herein includes, in addition to real
property required for the PROJECT, title free and clear of obstructions and encumbrances
affecting PROJECT and the payment, as required by applicable law, of damages to owners of
remainder real property not actually taken but injuriously affected by PROJECT.
(c) The cost of relocation payments and services provided to owners and occupants pursuant to
Government Code sections 726Q-7277 when PROJECT displaces an individual, family, business,
farm operation or nonprofit organization.
(d) The cost of demolition and/or the sale of all improvements on the right-of-way after credit is
recorded for sale proceeds used to offset PROJECT costs.
(e) The cost of all unavoidable utility relocation, protection or removal.
(f) The cost of all necessary hazardous material and hazardous waste treatment, encapsulation or
removal and protective storage for which ADMINISTERING AGENCY accepts responsibility and
where the actual generator cannot be identified and recovery made.
3. ADMINISTERING AGENCY agrees to indemnify and hold STATE harmless from any liability
that may result in the event the right-of-way for a PROJECT, including, but not limited to, being
clear as certified or if said right-of-way is found to contain hazardous materials requiring
treatment or removal to remediate In accordance with Federal and State laws. ADMINISTERING
AGENCY shall pay, from its own non-matching funds, any costs which arise out of delays to the
construction of PROJECT because utility facilities have not been timely removed or relocated, or
because rights-of-way were not available to ADMINISTERING AGENCY for the orderly
prosecution of PROJECT work.
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ARTICLE III -MAINTENANCE AND MANAGEMENT
1. ADMINISTERING AGENCY will maintain and operate the property acquired, developed,
constructed, rehabilitated, or restored by PROJECT for its intended public use until such time as
the parties might amend this AGREEMENT to otherwise provide. With the approval of STATE,
ADMINISTERING AGENCY or its successors in interest in the PROJECT property may transfer
this obligation and responsibility to maintain and operate PROJECT property for that intended
public purpose to another public entity.
2. Upon ADMINISTERING AGENCY'S acceptance of the completed construction contract or upon
contractor being relieved of the responsibility for maintaining and protecting PROJECT,
ADMINISTERING AGENCY will be responsible for the maintenance, ownership, liability, and the
expense thereof, for PROJECT in a manner satisfactory to the authorized representatives of
STATE and if PROJECT falls within the jurisdictional limits of another Agency or Agencies, it is the
duty of ADMINISTERING AGENCY to facilitate a separate maintenance agreement(s) between
itself and the other jurisdictional Agency or Agencies providing for the operation, maintenance,
ownership and liability of PROJECT. Until those agreements are executed, ADMINISTERING
AGENCY will be responsible for all PROJECT operations, maintenance, ownership and liability in
a manner satisfactory to the authorized representatives of STATE. If, within ninety (90) days after
receipt of notice from STATE that a PROJECT, or any portion thereof, is not being properly
operated and maintained and ADMINISTERING AGENCY has not satisfactorily remedied the
conditions complained of, the approval of future STATE FUNDED PROJECTS of
ADMINISTERING AGENCY will be withheld until the PROJECT shall have been put in a condition
of operation and maintenance satisfactory to STATE. The provisions of this section shall not
apply to a PROJECT that has been vacated through due process of law with STATE'S
concurrence.
3. PROJECT and its facilities shall be maintained by an adequate and well-trained staff of
engineers and/or such other professionals and technicians as PROJECT reasonably requires.
Said operations and maintenance staff may be employees of ADMINISTERING AGENCY, another
unit of government, or a contractor under agreement with ADMINISTERING AGENCY. All
maintenance will be performed at regular intervals or as required for efficient operation of the
complete PROJECT improvements. .
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ARTICLE IV -FISCAL PROVISIONS
1. Ali contractual obligations of STATE are subject to the appropriation of resources by the
Legislature and the allocation of resources by the CTC.
2. STATE'S financial commitment of STATE FUNDS will occur only upon the execution of this
AGREEMENT, the execution of each project-specific PROGRAM SUPPLEMENT and/or STATE's
approved finance letter.
3. ADMINISTERING AGENCY may submit signed duplicate invoices in arrears for reimbursement
of allowable PROJECT costs on a monthly or quarterly progress basis once the project-specific
PROGRAM SUPPLEMENT has been executed by STATE.
4. ADMINISTERING AGENCY agrees, as a minimum, to submit invoices at least once every six
months commencing after the STATE FUNDS are encumbered on either the project-specific
PROGRAM SUPPLEMENT or through aproject-specific finance letter approved by STATE.
STATE reserves the right to suspend future allocations and invoice payments for any on-going or
future STATE FUNDED project performed by ADMINISTERING AGENCY if PROJECT costs have
not been invoiced by ADMINISTERING AGENCY for asix-month period
5. Invoices shall be submitted on ADMINISTERING AGENCY letterhead that includes the address
of ADMINISTERING AGENCY and shall be formatted in accordance with Chapter 5 of the LAPM,
6. Invoices must have at least one copy of supporting backup documentation for allowable costs
incurred and claimed for reimbursement by ADMINISTERING AGENCY. Acceptable backup
documentation includes, but is not limited to, agency's progress payment to the contractors,
copies of cancelled checks showing amounts made payable to vendors and contractors, and/or a
computerized summary of PROJECT costs.
7. Payments to ADMINISTERING AGENCY can only be released by STATE as reimbursements
of actual allowable PROJECT costs already incurred and paid for by ADMINISTERING AGENCY.
8. An indirect cost allocation plan and related documentation are to be provided to STATE
(Caltrans Audits & Investigations) annually for review and approval prior to ADMINISTERING
AGENCY seeking reimbursement of indirect cost incurred within each fiscal year being claimed for
reimbursement. The indirect cost allocation plan must be prepared in accordance with the
requirements set forth in Office of Management and Budget Circular A-87 and Chapter 4 of the
Local Assistance Procedures Manual.
9. STATE will withhold the greater of either two (2) percent of the total of all STATE FUNDS
encumbered for each PROGRAM SUPPLEMENT or $40,000 until ADMINISTERING AGENCY
submits the Final Report of Expenditures for each completed PROGRAM SUPPLEMENT
PROJECT.
10. The estimated total cost of PROJECT, the amount of STATE FUNDS obligated, and the
required matching funds may be adjusted by mutual consent of the PARTIES with an allocation
letter and finance letter. STATE FUNDING may be increased to cover PROJECT cost increases
only if such additional funds are available and the CTC and/or STATE concurs with that increase
in the form of an allocation and finance letter.
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11. When such additional STATE FUNDS are not available, ADMINISTERING AGENCY agrees
that any increases in PROJECT costs must be defrayed with ADMINISTERING AGENCY's own
funds.
12. ADMINISTERING AGENCY shall use its own non STATE FUNDS to finance the local share of
eligible costs and all PROJECT expenditures or contract items ruled ineligible for financing with
STATE FUNDS. STATE shall make the final determination of ADMINISTERING AGENCY's cost
eligibility for STATE FUNDED financing with respect to claimed PROJECT costs.
13. ADMINISTERING AGENCY will reimburse STATE for STATE's share of costs for work
performed by STATE at the request of ADMINISTERING AGENCY. STATE's costs shall include
overhead assessments in accordance with section 8755.1 of the State Administrative Manual.
14. STATE FUNDS allocated from the STIP are subject to the timely use of funds provisions
enacted by Senate Bill 45, approved in 1997, and subsequent STIP Guidelines and State
procedures approved by the CTC and STATE.
15. STATE FUNDS encumbered for PROJECT are available for liquidation only for five (5) years
from the beginning of the State fiscal year when those funds were appropriated in the State
Budget. STATE FUNDS not liquidated within these periods will be reverted unless a Cooperative
Work Agreement (CWA) is submitted by ADMINISTERING AGENCY and approved by the
California Department of Finance in accordance with Government Code section 16304. The exact
date of fund reversion will be reflected in the STATE signed PROJECT finance letter.
16. Payments to ADMINISTERING AGENCY for PROJECT-related travel and subsistence (per
diem) expenses of ADMINISTERING AGENCY forces and its contractors and subcontractors
claimed for reimbursement or as local match credit shall not exceed rates authorized to be paid to
rank and file STATE employees under current State Department of Personhel Administration
(DPA) rules. If the rates invoiced by ADMINISTERING AGENCY are in excess of DPA rates,
ADMINISTERING AGENCY is responsible for the cost difference, and any overpayments
inadvertently paid by STATE shall be reimbursed to STATE by ADMINISTERING AGENCY on
demand.
17. ADMINISTERING AGENCY agrees to comply with Office of Management and Budget (OMB)
Circular A-87, Cost Principles for State and Local Governments, and 49 CFR, Part 18, Uniform
Administrative Requirements for Grants and Cooperative Agreements to State and Local
Governments.
18. ADMINISTERING AGENCY agrees, and will assure that its contractors and subcontractors will
be obligated to agree that (a) Contract Cost Principles and Procedures, 48 CFR, Federal
Acquisition Regulations System, Chapter 1, Part 31, et seq., shall be used to determine the
allowability of individual PROJECT cost items and (b) those parties shall comply with federal
administrative procedures in accordance with 49 CFR, Part 18, Uniform Administrative
Requirements for Grants and Cooperative Agreements to State and Local Governments. Every
sub-recipient receiving PROJECT funds as a contractor or sub-contractor under this
AGREEMENT shall comply with Federal administrative procedures in accordance with 49 CFR,
Part 18, Uniform Administrative Requirements for Grants and Cooperative Agreements to State
and Local Governments. ADMINISTERING AGENCY agrees to comply with the provisions set
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5-39
forth in 23 CFR Parts 140, 645 and 646 when contracting with railroad and utility companies.
19. Any PROJECT costs for which ADMINISTERING AGENCY has received payment or credit
that are determined by subsequent audit to be unallowable under OMB Circular A-87, 48 CFR,
Chapter 1, Part 31, 23 CFR Parts 140, 645 and 646 or 49 CFR, Part 18, are subject to repayment
by ADMINISTERING AGENCY to STATE.
20. Upon written demand by STATE, any overpayment to ADMINISTERING AGENCY of amounts
invoiced to STATE shall be returned to STATE.
21. Should ADMINISTERING AGENCY fail to refund any moneys due STATE as provided herein
or should ADMINISTERING AGENCY breach this AGREEMENT by failing to complete PROJECT
without adequate justification and approval by STATE, then, within thirty (30) days of demand, or
within such other period as may be agreed to in writing between the PARTIES hereto, STATE,
acting through the State Controller, the State Treasurer, the CTC or any other public entity or
agency, may intercept, withhold and demand the transfer of an amount equal to the amount paid
by or owed to STATE for each PROJECT, from future apportionments, or any other funds due
ADMINISTERING AGENCY from the Highway Users Tax Fund or any other sources of funds,
and/or may also withhold approval of future STATE FUNDED projects proposed by
ADMINISTERING AGENCY.
22. Should ADMINISTERING AGENCY be declared to be in breach of this AGREEMENT or
otherwise in default thereof by STATE, and if ADMINISTERING AGENCY is constituted as a joint
powers authority, special district, or any other public entity not directly receiving funds through the
State Controller, STATE is authorized to obtain reimbursement from whatever sources of funding
are available, including the withholding or transfer of funds, pursuant to Article IV - 21, from those
constituent entities comprising a joint powers authority or by bringing of an action against
ADMINISTERING AGENCY or its constituent member entities, to recover all funds provided by
STATE hereunder.
23. ADMINISTERING AGENCY acknowledges that the signatory party represents the
ADMINISTERING AGENCY and further warrants that there is nothing within a Joint Powers
Agreement, by which ADMINISTERING AGENCY was created, if any exists, that would restrict or
otherwise limit STATE's ability to recover STATE FUNDS improperly spent by ADMINISTERING
AGENCY in contravention of the terms of this AGREEMENT.
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ARTICLE V
AUDITS, THIRD PARTY CONTRACTING, RECORDS RETENTION AND REPORTS
1. STATE reserves the right to conduct technical and financial audits of PROJECT work and
records when determined to be necessary or appropriate and ADMINISTERING AGENCY agrees,
and shall require its contractors and subcontractors to agree, to cooperate with STATE by making
all appropriate and relevant PROJECT records available for audit and copying as required by
paragraph three (3) of Article V.
2. ADMINISTERING AGENCY, its contractors and subcontractors shall establish and maintain an
accounting system and records that properly accumulate and segregate incurred PROJECT costs
and matching funds by line item for the PROJECT. The accounting system of ADMINISTERING
AGENCY, its contractors and all subcontractors shall conform to Generally Accepted Accounting
Principles, enable the determination of incurred costs at interim points of completion, and provide
support for reimbursement payment vouchers or invoices sent to or paid by STATE.
3. For the purpose of determining compliance with Title 21, California Code of Regulations,
Chapter 21, section 2500 et seq., when applicable, and other matters connected with the
performance and costs of ADMINISTERING AGENCY's contracts with third parties pursuant to
Government Code section 8546.7, ADMINISTERING AGENCY, ADMINISTERING AGENCY'S
contractors and subcontractors, and STATE shall each maintain and make available for inspection
and audit all books, documents, papers, accounting records, and other evidence pertaining to the
performance of such contracts, including, but not limited to, the costs of administering those
various contracts. All of the above-referenced parties shall make such AGREEMENT and
PROGRAM SUPPLEMENT materials available at their respective offices at all reasonable times
during the entire PROJECT period and for three (3) years from the date of final payment to
ADMINISTERING AGENCY under any PROGRAM SUPPLEMENT. STATE, the California State
Auditor, or any duly authorized representative of STATE or the United States, shall each have
access to any books, records, and documents that are pertinent to a PROJECT for audits,
examinations, excerpts, and transactions and ADMINISTERING AGENCY shall furnish copies
thereof if requested.
4. ADMINISTERING AGENCY is required to have an audit in accordance with the Single Audit Act
of OMB Circular A-133 if it receives a total of $500,000 or more in STATE FUNDS in a single
fiscal year. The STATE FUNDS received under PROGRAM SUPPLEMENT are a part of the
Catalogue of Federal Domestic Assistance (CFDA) 20.205, Highway Planning and Research.
5. ADMINISTERING AGENCY agrees to include all PROGRAM SUPPLEMENTS adopting the
terms of this AGREEMENT in the schedule of projects to be examined in ADMINISTERING
AGENCY'S annual audit and in the schedule of projects to be examined under its single audit
prepared in accordance with OMB Circular A-133.
6. ADMINISTERING AGENCY shall not award a construction contract over $10,000 or other
contracts over $25,000 [excluding professional service contracts of the type which are required to
be procured in accordance with Government Code sections 4525 (d), (e) and (f)] on the basis of a
noncompetitive negotiation for work to be performed under this AGREEMENT without the prior
written approval of STATE. All contracts awarded by ADMINISTERING AGENCY intended or
used as local match credit must meet the requirements set forth in this AGREEMENT regarding
local match funds.
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7. Any subcontract entered into by ADMlN1STERiNG AGENCY as a result of this AGREEMENT
shall contain all of the provisions of Article IV, FISCAL PROVISIONS, and this ARTICLE V,
AUDITS, THIRD-PARTY CONTRACTING, RECORDS RETENTION AND REPORTS and shall
mandate that travel and per diem reimbursements and third-party contract reimbursements to
subcontractors will be allowable as PROJECT costs only after those costs are incurred and paid
for by the subcontractors.
8. To be eligible for local match credit, ADMINISTERING AGENCY must ensure that local match
funds used for a PROJECT meet the fiscal provisions requirements outlined in ARTICLE IV in the
same manner that is required of all other PROJECT expenditures.
9. In addition to the above, the pre-award requirements of third-party contractor/consultants with
ADMINISTERING AGENCY should be consistent with LOCAL ASSISTANCE PROCEDURES.
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ARTICLE VI -MISCELLANEOUS PROVISIONS
1. ADMINISTERING AGENCY agrees to use all PROJECT funds reimbursed hereunder only for
transportation purposes that are in conformance with Article XIX of the California State
Constitution and other California laws.
2. ADMINISTERING AGENCY shall conform to all applicable State and Federal statutes and
regulations, and the Local Assistance Program Guidelines and Local Assistance Procedures
Manual as published by STATE and incorporated herein, including all subsequent approved
revisions thereto applicable to PROJECT unless otherwise designated in the project-specific
executed PROJECT SUPPLEMENT.
3. This AGREEMENT is subject to any additional restrictions, limitations, conditions, or any statute
enacted by the State Legislature or adopted by the CTC that may affect the provisions, terms, or
funding of this AGREEMENT in any manner.
4. ADMINISTERING AGENCY and the officers and employees of ADMINISTERING AGENCY,
when engaged in the performance of this AGREEMENT, shall act in an independent capacity and
not as officers, employees or agents of STATE.
5. Each project-specific PROGRAM SUPPLEMENT shall separately establish the terms and
funding limits for each described PROJECT funded under this AGREEMENT and that PROGRAM
SUPPLEMENT. No STATE FUNDS are obligated against this AGREEMENT.
6. ADMINISTERING AGENCY certifies that neither ADMINISTERING AGENCY nor its principals
are suspended or debarred at the time of the execution of this AGREEMENT, and
ADMINISTERING AGENCY agrees that it will notify STATE immediately in the event a
suspension or a debarment occurs after the execution of this AGREEMENT.
7. ADMINISTERING AGENCY warrants, by execution of this AGREEMENT, that no person or
selling agency has been employed or retained to solicit or secure this AGREEMENT upon an
agreement or understanding for a commission, percentage, brokerage, or contingent fee,
excepting bona fide employees or bona fide established commercial or selling agencies
maintained by ADMINISTERING AGENCY for the purpose of securing business. For breach or
violation of this warranty, STATE has the right to annul this AGREEMENT without liability, pay
only for the value of the PROJECT work actually performed, or in STATE's discretion, to deduct
from the price of PROGRAM SUPPLEMENT consideration, or otherwise recover, the full amount
of such commission, percentage, brokerage, or contingent fee.
8. In accordance with Public Contract Code section 10296, ADMINISTERING AGENCY hereby
certifies under penalty of perjury that no more than one final unappealable finding of contempt of
court by a federal court has been issued against ADMINISTERING AGENCY within the immediate
preceding two (2) year period because of ADMINISTERING AGENCY's failure to comply with an
order of a federal court that orders ADMINISTERING AGENCY to comply with an order of the
National Labor Relations Board.
9. ADMINISTERING AGENCY shall disclose any financial, business, or other relationship with
STATE that may have an impact upon the outcome of this AGREEMENT or any individual
PROJECT encompassed within a PROGRAM SUPPLEMENT. ADMINISTERING AGENCY shall
also list current contractors who may have a financial interest in the outcome of a PROJECT
undertaken pursuant to this AGREEMENT.
Page 12gf 43
10. ADMINISTERING AGENCY hereby certifies that it does not now have nor shall it acquire any
financial or business interest that would conflict with the performance of any PROJECT initiated
under this AGREEMENT.
11. ADMINISTERING AGENCY warrants that this AGREEMENT was not obtained or secured
through rebates, kickbacks or other unlawful consideration either promised or paid to any STATE
employee. Far breach or violation of this warranty, STATE shalt have the right, in its sole
discretion, to terminate this AGREEMENT without liability, to pay only for PROJECT work actually
performed, or to deduct from a PROGRAM SUPPLEMENT price or otherwise recover the full
amount of such rebate, kickback, or other unlawful consideration.
12. Any dispute concerning a question of fact arising under this AGREEMENT that is not disposed
of by agreement shall be decided by the STATE's Contract Officer, who may consider any written
or verbal evidence submitted by ADMINISTERING AGENCY. The decision of the Contract
Officer, issued in writing, shall be conclusive and binding on the PARTIES on all questions of fact
considered and determined by the Contract Officer.
13. Neither the pending of a dispute nor its consideration by the Contract Officer will excuse the
ADMINISTERING AGENCY from full and timely performance in accordance with the terms of this
AGREEMENT and each PROGRAM SUPPLEMENT.
14. Neither STATE nor any officer or employee thereof is responsible for any injury, damage or
liability occurring by reason of anything done or omitted to be done by ADMINISTERING AGENCY
under or in connection with any work, authority or jurisdiction of ADMINISTERING AGENCY
arising under this AGREEMENT. It is understood and agreed that ADMINISTERING AGENCY
shall fully defend, indemnify and save harmless STATE and all of its officers and employees from
all claims and suits or actions of every name, kind and description brought forth under, including
but not limited to, tortuous, contractual, inverse condemnation or other theories or assertions of
liability occurring by reason of anything done or omitted to be done by ADMINISTERING AGENCY
under this AGREEMENT.
15. Neither ADMINISTERING AGENCY nor any officer or employee thereof is responsible for any
injury, damage or liability occurring by reason of anything done or omitted to be done by, under or
in connection with any work, authority or jurisdiction arising under this AGREEMENT. It is
understood and agreed that STATE shall fully defend, indemnify and save harmless the
ADMINISTERING AGENCY and all of its officers and employees from all claims, suits or actions
of every name, kind and description brought forth under, including but not limited to, tortuous,
contractual, inverse condemnation and other theories or assertions of liability occurring by reason
of anything done or omitted to be done by STATE under this AGREEMENT.
16. In the event of (a) ADMINISTERING AGENCY failing to timely proceed with effective
PROJECT work in accordance with the project-specific PROGRAM SUPPLEMENT; (b) failing to
maintain any applicable bonding requirements; and (c) otherwise materially violating the terms and
conditions of this AGREEMENT and/or any PROGRAM SUPPLEMENT, STATE reserves the right
to terminate funding for that PROJECT upon thirty (30) days' written notice to ADMINISTERING
AGENCY.
17. No termination notice shall become effective if, within thirty (30} days after receipt of a Notice
of Termination, ADMINISTERING AGENCY either cures the default involved or, if the default is
not reasonably susceptible of cure within said thirty (30) day period the ADMINISTERING
Page 1 ~of ~ 6
AGENCY proceeds thereafter to complete that cure in a manner and time line acceptable to
STATE.
18. Any such termination shall be accomplished by delivery to ADMINISTERING AGENCY of a
Notice of Termination, which notice shall become effective not less than thirty (30) days after
receipt, specifying the reason for the termination, the extent to which funding of work under this
AGREEMENT and the applicable PROGRAM SUPPLEMENT is terminated and the date upon
which such termination becomes effective, if beyond thirty (30) days after receipt. During the
period before the effective termination date, ADMINISTERING AGENCY and STATE shall meet to
attempt to resolve any dispute. In the event of such termination, STATE may proceed with the
PROJECT work in a manner deemed proper by STATE. If STATE terminates funding for
PROJECT with ADMINISTERING AGENCY for the reasons stated in paragraph sixteen (16) of
ARTICLE VI, STATE shall pay ADMINISTERING AGENCY the sum due ADMINISTERING
AGENCY under the PROGRAM SUPPLEMENT and/or STATE-approved finance letter prior to
termination, provided, however, ADMINISTERING AGENCY is not in default of the terms and
conditions of this AGREEMENT or the project-specific PROGRAM SUPPLEMENT and that the
cost of any PROJECT completion fo STATE shall first be deducted from any sum due
ADMINISTERING AGENCY.
19. In the case of inconsistency or conflicts with the terms of this AGREEMENT and that of a
project-specific PROGRAM SUPPLEMENT and/or Cooperative Agreement, the terms stated in
that PROGRAM SUPPLEMENT and/or Cooperative Agreement shall prevail over those in this
AGREEMENT.
20. Without the written consent of STATE, this AGREEMENT is not assignable by
ADMINISTERING AGENCY either in whole or in part.
21. No alteration or variation of the terms of this AGREEMENT shall be valid unless made in
writing and signed by the PARTIES, and no oral understanding or agreement not incorporated
herein shall be binding on any of the PARTIES.
IN WITNESS WHEREOF, the parties have executed this AGREEMENT by their duly authorized
officer.
STATE OF CALIFORNIA City of Chula Vista
DEPARTMENT OF TRANSPORTATION
Chief, Office of Project Implementation
Division of Local Assistance
City of Chula Vista
Representative Name & Title
(Authorized Governing Body Representative)
Date
Date
Page 14~f ~~
EXHIBIT A -FAIR EMPLOYMENT PRACTICES ADDENDUM
1. In the performance of this Agreement, ADMINISTERING AGENCY will not discriminate against
any employee for employment because of race, color, sex, sexual orientation, religion, age,
ancestry or national origin, physical disability, medical condition, marital status, political affiliation,
family and medical care leave, pregnancy leave, or disability leave. ADMINISTERING AGENCY
will take affirmative action to ensure that employees are treated during employment without regard
to their race, sex, sexual orientation, color, religion, ancestry, or national origin, physical disability,
medical condition, marital status, political affiliation, family and medical care leave, pregnancy
leave, or disability leave. Such action shall include, but not be limited to, the following:
employment; upgrading; demotion or transfer; recruitment or recruitment advertising; layoff or
termination; rates of pay or other forms of compensation; and selection for training, including
apprenticeship. ADMINISTERING AGENCY shall post in conspicuous places, available to
employees for employment, notices to be provided by STATE setting forth the provisions of this
Fair Employment section.
2. ADMINISTERING AGENCY, its contractor(s) and ail subcontractors shall comply with the
provisions of the Fair Employment and Housing Act (Gov. Code, 1290-0 et seq.), and the
applicable regulations promulgated thereunder (Cal. Code Regs., Title 2, 7285.0, et seq.). The
applicable regulations of the Fair Employment and Housing Commission implementing
Government Code section 12900(a-f), set forth in Chapter 5 of Division 4 of Title 2 of the
California Code of Regulations are incorporated into this AGREEMENT by reference and made a
part hereof as if set forth in full. Each of the ADMINISTERING AGENCY'S contractors and all
subcontractors shall give written notice of their obligations under this clause to labor organizations
with which they have a collective bargaining or other agreements, as appropriate.
3. ADMINISTERING AGENCY shall include the nondiscrimination and compliance provisions of
this clause in all contracts and subcontracts to perform work under this AGREEMENT.
4. ADMINISTERING AGENCY will permit access to the records of employment, employment
advertisements, application forms, and other pertinent data and records by STATE, the State Fair
Employment and Housing Commission, or any other agency of the State of California designated
by STATE, for the purposes of investigation to ascertain compliance with the Fair Employment
section of this Agreement.
5. Remedies for Willful Violation:
(a) STATE may determine a willful violation of the Fair Employment provision to have occurred
upon receipt of a final judgment to that effect from a court in an action to which ADMINISTERING
AGENCY was a party, or upon receipt of a written notice from the Fair Employment and Housing
Commission that it has investigated and determined that ADMINISTERING AGENCY has violated
the Fair Employment Practices Act and had issued an order under Labor Code section 1426 which
has become final or has obtained an injuriction under Labor Code section 1429.
(b) For willful violation of this Fair Employment Provision, STATE shall have the right to terminate
this Agreement either in whole or in part, and any loss or damage sustained by STATE in securing
the goods or services thereunder shall be borne and paid for by ADMINISTERING AGENCY and
by the surety under the performance bond, if any, and STATE may deduct from any moneys due
Page 15~f tfi
or thereafter may become due to ADMINISTERING AGENCY, the difference between the price
named in the Agreement and the actual cost thereof to STATE to cure ADMINISTERING
AGENCY'S breach of this Agreement.
Page t6gf 47
~,rrACi--nn~N-r -3
PROGRAM SOPPLSDffii'P NO. N014
to
ADMINISTERING AGENCY-STAYS AGREEMEN'P
POR PEDERAL-AID PROJECTS NO. 11-5203R
Date:November 26, 2008
Location o 11-SD-0-CEiV
Project Number:RPSTPLE-5203(022)
E.A. Ntmiber:ll-212874
This Program Supplement hemby mcarporates the Administering Agency-State Agreement for Federal Aid which was enterod inm
betty«n the Administering Ag®cy and the State tm / / andu subject to all the terms and coadidans thereof. This Program
Supplement is executed in accrordance with Article I of the aforementioned Master Agreement under au0tority of Resolution No.
approved by the Administering Agency oa (See copy attached).
The Administering Agency further stipulates that as a condition to the payment by State of any funds derived from soun:es noted
below obligated to this project, the Administering Agency accepts and will comply with the Sp«ial covenants or Remarks setforth
on the following pages.
PROJECT LOCATION:
Patomaz Crateway Community Transit Area Project
TYPB OF WORX: pedestrian Walkway
LENGTH: OINIL83)
Estimated Coat Federal Pantie Matching Fuada
$2,247,321.00 L220 $1,770,600.00 LOCAL
$247,321.00 State
$229,400.00 OT88R
$0.00
CITY OP CHOLA VISTA
Sy
Date
Attest
Title
STATB OP (9lLIPORNIA
Department of Traasportatioa
ey
Chief, OEfica oP Project Implementation
Division oP Local Aaaiataace
Data
_ hereby certify upaa my peraoanl Imorledge that budgeted f:mde era available !or chin eaa®bsaaca:
Accounting Officer f<Jrxrt ~~L io~ ~...,,,..tit Date l~3~ r~ $2,000000.00
Chapter atat¢tea Item Year I Program I 8C ' Cseagory ~ Amd Sourea ~ AmanaT
268 2008 2660-101-890 2008-2009 2030.600.731 S 2280L0 892-F 1,770,600.00
268 2008 2660-606-008 2008-2009 2030.600.731 C 228010 008-0 229,400.00
Program Supplement i1-5203R-N014- ISTBA
Page 1 of 4
5-48
t t-sD-acxv
RPS7PLE-5203(022)
urzerzooe
SPECIAL COVBP7ANT5 OR nunrasttrg
1. ADMINISTERING AGENCY agrees that it will only proceed with work
authorized for specific phase(s) with an °Authorization to
Proceed° and will not proceed with future phase(s) of this
project prior to receiving as °Authorization to Proceed° from the
STATB for that phase(s) unless no further State or Federal funds
are needed for those future phase(s).
2. Aay State sad Federal funds that may have been encumbered for
this project are only available for disbursement for a period o£
five (5) years sad seven (7) years, respectively, from the start
of the fiscal year(s) that those funds ware appropriated within
the State Budget Act. All project funds not liquidated within
these periods will revert unless an executed Cooperative Work
Agreement extending these dates is requested and is appxnved by
the California Department of Finance per Government Code Section
16304. The exact. date of each fund reversion will be reflected
in the approved finance letter{s) issued for this project.
Notwithstanding the unliquidated sums of project specific States
sad Federal funding remaining and available to fund project work,
any invoice for reimbursement that ie not submitted to the
Department oa or before 60 days after that applicable fixed fund
reversion date wi12 not be paid from that fiscal year's
encumbered funds bacauae all of these unexpended funds will be
irrevocably reverted by the Department's Division of Accounting
on that date.
Pursuant to a directive from the State Controller's Office sad
the Department of Finance, the last date to submit iavoices~for
reimbursed work in each fiscal year is May 15th in order for
payment to ba made out of those then current appropriations.
Project work performed and invoiced after May 15th will be
reimbursed only out of available funding that might be encumbered
is the subsequent fiscal year, and they only whey those funds are
actually allocated and encumbered ae authorized by the California
Traaeportation Commission and the Department's Accounting Office.
3. Tha ADMINISTERING AGENCY will advertise, award and administer
this project in accordance with the current published Local
Assistance Procedures Manual.'
4. Award information shall ba submitted by the ADMINISTERING AGENCY
Program Supplement 11-5203R-x014- ISTSA Pages 2 of !
5-49
u-saacxv
RPSTPLE-5203(022)
SPECIAL COVffiJANT3 OR axrRnRUS
un_wzoos
to the District Local Assistance Engineer within 60 days after
the project contract award. A copy of the award package shall
also be included with the submittal of the ADMINISTERING AGENCY'S
first invoice for the construction contract to:
Department of Transportation
Division of Accounting
Local Programs Accounting Branch, MS #33
P. O. Box 942879
3acrameato, CA 94274-0001.
Failure to do so will cause a delay is the State processing
invoices for the construction phase. Please refer to Section
15.7 °Award Package" of the Local Assistance Procedures Manual.
5, ADMINISTERING AGENCY agrees, as a minimum, to submit invoices at
least once every six months commencing after the funds are
encumbered for each phase by the execution of this Project
Program Supplement Agreement, or by STATE'S approval of as
applicable Finance Letter. STATE reserves the right to suspend
future authorizations/obligations, sad invoice payments for any
oa-going or future federal-aid project by ADMINISTERING AGBtdCY if
PROJECT costa have not keen invoiced by ADMINISTERING AGENCY for
a six-month period.
If ao coats have been invoiced for a air-month period,
ADMIT7ISTSRING AGENCY agrees to submit for each phase a written
explanation of the absence of PROJECT activity along with target
billing date and tsrgat billing amount. '
ADMINISTERING AGENCY agrees to submit the Final report documents
that collectively constitute a °Report of 8xpenditures° within
one hundred eighty (180) days of PROJECT campletioa. Failure of
ADMINISTERING AGENCY to submit a °Fiaal Report of Expeaditures°
within 180 days of PROJECT completion will result is STATE
imposing sanctions upon ADMINISTERING AGENCY is accordance with
the currant Local Assistance Procedures Manual.
6. The Administering Agency shall not discrimiaata oa the basis o£
race, religion, age, disability, color, national origin, or sex
in the award and performance of nay Federal-assisted contract or
in the administration of its D88 Program Implementation
Pxogs°m Supple eat ll-52038-N014- ISTSA Page 3 °E 4
5-50
11-SD-0-CFIV
RPST'PLE-5203(022)
l ll26/2008
SPECIAL COVENANTS OR REMARKS
Agreement. The Administering Agency shall take all necessary and
reasonable steps under 49 CFR Part 26 to ensure nondiscrimination
in the award and administration of Federal-assisted contracts.
Tha Administrating Agency's DB8 Implementation Agreement is
incorporated by reference in this Agreement. Implementation of
the DBE Implementation Agreement, including but net limited to
timely reporting of DBS commitments sad utilisation, is a legal
obligation sad failure to carry out its terms shall be treated as
a violation of this Agreement. IIpoa notification to the
Administering Agency of its fai.lura to carry out its DBE
Implementation Agreement, the State may impose sanctions as
provided for under 49 CFR Part 26 sad may, is appropriate cases,
refer the matter for enforcement under 18 II.S.C. 1001 and/or the
Program Fraud Civil Remedies Act of 1986 (31 II.S.C. 3801 et
seq.) .
Program Supplement il-5203R-N014- ISTSA Pege 4 oP 4
5-51
RESOLUTION NO.2009-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING ADMINISTERING AGENCY -
STATE MASTER . AGREEMENT FOR FEDERAL AID
PROJECTS, NO. 11-5203R BETWEEN THE CITY OF CHULA
VISTA AND THE STATE OF CALIFORNIA; AND
AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO
EXECUTE THE AGREEMENT, THE PROGRAM
SUPPLEMENT AND ALL FUTURE PROGRAM
SUPPLEMENTS TO SAID AGREEMENT
WHEREAS, prior to the receipt of Federal funds for any local Federal Aid projects, the
City and the State aze required to enter into a master agreement relative to prosecution of said
projects and maintenance of the completed facilities; and
WHEREAS the previous master agreement was approved in 1997 and the updated master
agreement sets forth the conditions for Federal Aid project improvements, right-of--way, fiscal
provisions, miscellaneous provisions and maintenance; and
WHEREAS, this agreement is similaz to the previously approved agreement which was
modified to reflect the local assistance procedures; and
WHEREAS, the State has requested that all agencies sign the updated master agreement.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby approve administering Agency-State master agreement for Federal Aid
Project, No. 11-5203R between the City of Chula Vista and the State of California.
BE IT FURTHER RESOLVED that the Director of Public Works of the City of Chula
Vista is hereby authorized and directed to Execute said agreement on behalf of the City of Chula
Vista.
BE IT FURTHER RESOLVED that the Director of Public Works of the City of Chula
Vista is hereby authorized and directed to Execute said Program Supplement and all future
Program Supplements on behalf of the City of Chula Vista.
Presented by Approved as to form by
Richard A. Hopkins Bart C• Mies
Director of Public Works City Attorney
H:~ENGMEERVtESOSVtuw3009~A2-It-09Vtew-FedAidREV.Oa 5-52
RESOLUTION NO. 2009-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING ADMINISTERING AGENCY -
STATE MASTER AGREEMENT FOR STATE AID PROJECTS,
NO. 00223S BETWEEN THE CITY OF CHULA VISTA AND
THE STATE OF CALIFORNIA; AND AUTHORIZING THE
DIRECTOR OF PUBLIC WORKS TO EXECUTE THE
AGREEMENT
WHEREAS, prior to the receipt of State funds for any local State Aid projects, the City
and the State are required to enter into a master agreement relative to prosecution of said projects
and maintenance of the completed facilities; and
WHEREAS the previous master agreement was approved in 2003 and the updated master
agreement sets forth the conditions for State Aid project improvements, right of way, fiscal
provisions, miscellaneous provisions and maintenance; and
WHEREAS, this agreement is similar to the previously approved agreement which was
modified to reflect the local assistance procedures; and
WHEREAS, the State has requested that all agencies sign the updated master agreement.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby approve administering Agency-State master agreement for State Aid Project,
No. 00223 S between the City of Chula Vista and the State of California.
BE IT FURTHER RESOLVED that the Director of Public Works of City of Chula Vista
is hereby authorized and directed to execute said agreement on behalf of the City of Chula Vista.
Presented by
Richard A. Hopkins
Director of Public Works
Approved as to form by
Bart C. Miesfeld `
City Attorney
HdENGMEER\RESOSVtaoe2W9\02-19.09\Rmo-SweAidaMSuppIREV.doc 5-53
CITY COUNCIL
AGENDA STATEMENT
~\~ CIlYOF
~ ~- (HULA VISTA
2/17/09, Item~
ITEM TITLE:
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ACCEPTING BIDS AND AWARDING
CONTRACT FOR THE "STREET LIGHT INSTALLATION ALONG
FOURTH A VENUE BETWEEN L STREET TO ORAL'JGE A VENUE
(TF-307)" PROJECT TO 3D ENTERPRISES, INe. IN THE
AMOUNT OF $109,000 . , .
DIRECTOR OF PUBLIC WORKS ;;Ii;
f;(~
SUBMITTED BY:
REVIEWED BY:
ASSISTA1'JT CITyM NAGER
CITY MAL'JAGER
4/5THS VOTE:
YES 0 NO
~
SUMl"\1ARY
On January 21, 2009, the Director of Public Works received 15 sealed bids for the "Street Light
Installation along Fourth Avenue between L Street to Orange Avenue (TF-307)" project. As part
of the Undergrounding Utility District Program, this project will install 15 new street light poles
and will relocate one existing street light pole in order to have a more uniform street light pattern
.along the roadways.
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 2( d) categorical exemption pursuant to Section 15302, Replacement or
Reconstruction of the State CEQA Guidelines because it involves the installation of street lights
associated with the under grounding of overhead electrical utility lines. Thus, no further
environmental review is necessary.
RECOMMENDATION
Council adopt the resolution.
BOARDS/COMMISSION RECOMMENDATION
Not applicable.
DISCUSSION
The installation of street lights at the subject locations was approved and budgeted for the Fiscal
Year 2002/2003 Capital Improvement Program (CIP). This project was budgeted at the
. appropriate time, such that the street light project could be coordinated with the utility
6-1
2/17/09, Item~
Page 2 of3
undergrounding program. The site area limits for the Utility Underground District coincide with
the limits for this street light proj ect.
As a result of the undergrounding of overhead utilities, this project will encompass the relocation
of existing street lights and install new street light poles along Fourth Avenue between L Street
and Orange A venue to create a more uniformed street light pattern and to meet the City's current
street light requirements.
The scope of work for this project includes the following: relocate/furnish and install street light
standards with 8 ft. mast arms complete with foundation, 250 watt high pressure sodium vapor
luminaries and photo electric cells; trench, furnish and install conduit and conductor cables;
furnish and install pull boxes; asphalt paving; remove and reconstruct monolithic curb, gutter and
sidewalk; restoration, removal and disposal of existing improvements; and other miscellaneous
work necessary to make the street light installations complete and operational.
Once the electrical undergrounding and the proposed street lighting work is complete, there will
be a separate street improvement project (STL291) scheduled along Fourth Avenue between L
Street and Orange Avenue. This project includes the installation of missing sidewalk
improvements, installation of storm drain pipes and structures, relocation of traffic signal
facilities, and other work to complete the project within the limits of this street light project.
City staff advertised the project on December 12, 2008, and received 15 bids on January 21,
2009, as follows:
CONTRACTOR BID AMOUNT
I. Southwest Signal, Inc. - El Cajon, CA (non-responsive) $102,616.00
2. 3D Enterorises, Inc. - San Diego, CA $109,000.00
3. Lekos Electric, Inc. - El Cajon, CA $111,350.00
4. Fox Construction, Inc. - San Diego, CA $115,100.00
5. Ace Electric, Inc. - San Diego, CA $116,800.00
6. Fares Construction & Engineering, Inc. - San Diego, CA $117,938.88
7. A.B. Hashmi, Inc. - Oceanside, CA $121,900.00
8. Palm Engineering, Inc. - San Diego, CA $135,550.00
9. T & M Electric, Inc. - Santee, CA $147,900.00
10. Dick Miller, Inc. - San Marcos, CA $148,075.00
I!. Select Electric, Inc. - Soring Valley, CA $159,950.00
12. Team Fishel, Inc. - Oceanside, CA $177,959.64
13. Healey Construction, Inc. - National City, CA 5186,970.00
14. HMS Construction, Inc. - Vista, CA 5218,300.00
15. Christopher R. Morales, Inc. - San Dimas, CA S211,585.00
The apparent low bid proposal in the amount of 5102,616 was submitted by Southwest Signal,
Inc. During the review of the bid proposal, the low bidder failed to submit signed Addendum 2
and 3 as stated in the Addendum directions and contract specifications. The bid proposal for this
project states that, "Proposal may be rejected if they show any alterations of form, additions not
called for, conditional or alternative bids, incomplete bids, erasures, or irregularities of any
kind." The failure of Southwest Signal, Inc. to properly respond to the bid specifications renders
its bid non-responsive and staff, therefore, recommends that Southwest Signal's bid be rejected.
6-2
2/17/09, Item r..o
Page 3 of3
The second low bid was submitted by 3D Enterprises, Inc. in the amount of $109, 000 and is
below the Engineer's estimate of $136,500 by $26,000 or 20%. The Engineer's estimate was
based on average unit prices received on similar type projects. Staff examined the submitted
package and found the bid proposal fully complied with all bid specifications. 3D Enterprises,
has performed on small projects in the City with satisfactory performance. 3D Enterprises, Inc.,
Contractor's license number 621125 is clear and current. Staff recommends awarding a contract
in the amount of$109,000 to 3D Enterprises, Inc. of San Diego, CA.
Disclosure Statement
Attached is a copy of the Contractor's Disclosure Statement (Attachment 1).
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 IMP ACT
There is no impact to the General Fund for construction as there are existing funds in the project
necessary for completion. Construction will be funded from Residential Construction Tax
(RCT). It should be noted that a portion of RCT funds for this project have been frozen due to
constraints to meet the debt service payment, however, the remaining (unfrozen) balance of RCT
funds are sufficient to complete this project. Upon completion of construction, only the annual
cost for energy and maintenance will be covered by the General Fund.
FUNDS REQUIRED FOR CONSTRUCTION
A. Contract Amount $109,000.00
B. Contingencies (10% Total Project Amount) $10,630.00
C. Staff Time Amounts:
Construction Inspection (18.3% of Total Project) $20,000.00
Design/Construction Management (32.1% of Total Project) $35,000.00
Survey Work (6.4% of Total Project) $7,000.00
PlanningJEnv./TrafficlLandscapelPublic Works (4.6% of Total Project) $5,000.00
TOTAL FUl'il)S At'iTICIPATED FOR DESIGN Al'il) CONSTRUCTION $186,630.00
FUNDS A V AlLABLE FOR CONSTRUCTION
A. Residential Construction Tax (RCT) $186,630.00
TOTAL FUNDS A V AIL.~LE FOR CONSTRUCTION $186,630.00
There is no impact to the General Fund as the funds for these improvements have been provided
for as part of the Residential Construction Tax (RCT). Upon completion of the project, the
improvements will require only routine City drainage maintenance.
ATT ACHMENTS
1. Contractor's Disclosure Statement
Prepared by: Luis Labrada, PE, Associate Civil Engineer, Dept. Public Works
M:IGeneral ServiceslGS AdministrationlCouncil AgendaITFJ07-ST L T FOURTH A VEITF307 AllJ 020J09REV.doc
6-3
ATTACHMENT
/
City of Chula Vista Disclosure Statement
Pursuant to Council Policy 101-0 I, prior to any action upon matters that will require discretionary action
by u1e Council, Planning Corrunission and all other official bodies of the City, a statement of disclosure of
certain ownership or financial interests, payments, or campaign contributions for a City of Chula Vista
election must be filed. The following information must be disclosed:
I. List the names of all persons having a financial interest in the property that is the subject of the
application or the contract, e.g., owner, applicant, contractor, subcontractor, material supplier.
~
/
2. If any person* identified pursuant to (I) above is a corporation or partnership, list the names of all
individuals \vith a $2000 investment in the business (corporation/partnership) entity.
N"r
3. If any person* identified pursua.'lt to (I) above is a non-profit organization or trust, list the names
of any person serving as director of the non-profit organization or as trustee or beneficiary or
trust07st.
/
4. Please identify every person, including any agents, employees, consultants, or Independent
con7 have assigned to represent you before the City in this matter.
/'
5. Has any person* associated with this contract had any financial dealings ,vith an official** of the
City ofChula Vista as it relates to this.~ontract within the past 12 months? YeS_No+
IS
M:\Gcn=1 Scrviccs\Dcsign\TFJ07\MfNW AGE TF 307 Spccitic.oons.Rev 1.12.03.200B.doc
6-4
If Yes, briefly describe the nature of the financial interest the officialn may have in this contract
6. Have you made a contribution of more than $250 within the past twelve (12) months to a current
member of the Chula Vista City council?N~ 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? (111is 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:
--u.lo
2) / D ::?J-i'r~fA(7--D?
Print or type name of Contractor IApp lie ant
*
Person is defined as: any individual, firm, co-partnership, joint venture, association, social club,
fraternal organization, corporation, estate, trust, receiver, sJ11dicate, 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 ofa board, commission, or committee of the City, employee, or staff members.
16
M:IGenonl Serviees1Design1TF307\MfNWAGE TF 30; $pecifio.uons.Rov 1.12.03.2008.doo
6-5
RESOLUTION NO. 2009-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VIST A ACCEPTING BIDS AND AWARDING
CONTRACT FOR THE "STREET LIGHT INST ALLA nON
ALONG FOURTH AVENUE BETWEEN L STREET TO
ORANGE AVENUE (TF-307)" PROJECT TO 3D
ENTERPRISES, INC. IN THE AMOUNT OF $109,000
WHEREAS, the project involves the relocation of one eXlstmg street light standard,
installation of fifteen new street light standards, luminaries, mast arms, and other miscellaneous
equipment necessary to make the system operational; and
WHEREAS, the project will include all labor, materials, equipment, transportation,
protection of existing improvements and traffic control necessary for the project and other work
necessary to render the new improvements complete and workable; and '
VlHEREAS, City staff has prepared plans and specifications for the "Street Light
Installation along Fourth Avenue, between L Street to Orange Avenue (TF-307)" project; and
VlHEREAS, on January 21,2009, the Director of Public Works received fifteen sealed
bids as follows:
CONTRACTOR BID AMOUNT
1. Southwest Signal, Inc. - El Cajon, CA (non-responsive) $102,616.00
2. 3D Entemrises, Inc. - San Diego, CA $109.000.00
3. Lekos Electric, Inc. - EI Cajon, CA $111,350.00
4. Fox Construction, Inc. - San Diego, CA $115.1 00.00
5. Ace Electric. Inc. - San Diego CA $116800.00
6. Fares Construction & EngineerinO' Inc. - San Diego, CA $117,938.88
7. A.B. Hashmi, Inc. - Oceanside. CA $121.900.00
8. Palm Engineering, Inc. - San Diego, CA $135,550.00
9. T & M Electric, Inc. - Santee, CA $147,900.00
10. Dick Miller, Inc. - San Marcos, CA $148,075.00
11. Select Electric, Inc. - Soring Vallev, CA $159,950.00
12. Team Fishel, Inc. - Oceanside, CA $177,959.64
13. Healey Construction, Inc. - National City, CA $186,970.00
14. HMS Construction, Inc. - Vista, CA $218,300.00
15. Christopher R. Morales, Inc. - San Dimas, CA $211,585.00
VlHEREAS, the low bid package submitted by Southwest Signal, Inc. did not contain
signed Addendum 2 and signed Addendum 3; and
WHEREAS, Southwest Signal, Inc. was the only Contractor to fail in this requirement
and thus found to be non-responsive by this action; and
H:\ENGINEER\RESOS\R~os2009\02. t 7.Q9\Reso I TFJ07REV.do<:
6-6
Resolution No. 2009-
Page 2
WHEREAS, 3D Enterprises, Inc IS below the Engineer's estimate of $136,500 by
$26,500, or approximately 20 percent; and
WHEREAS, staff has reviewed the low bid and found 3D Enterprises, Inc. to have met
all requirement of the bid package; and
WHEREAS, staff is recommending awarding the contract to 3D Enterprises, Inc. in the
amount of$109,000.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby accept bids and award contract for the ""Street Light Installation along Fourth
Avenue between L Street to Orange Avenue (TF-307)" Project to 3D Enterprises, Inc., in the
amount of $1 09,000.
Presented by
Approved as to form by
~(~~
Bart C. Miesfeld
City Attorney
D ~"..7'1
Richard A. Hopkins
Director of Public Works
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