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HomeMy WebLinkAbout2009/10/20 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 th' document on the bulletin board accordil~ ~~ wn Act requirements. ~, nom- ~` ~~~ j0 - b -L~~I Signed '+~_'~-' CfiY OF CHULA VISTA Cheryl Cox, Mayor // Rudy Ramirez, Councilmember James D. Sandoval, City Manager ~/`~ Mitch Thompson, Interim Councilmember Bart Miesfeld, City Attorney ~ Pamela Bensoussan, Councilmember Donna Norris, City Clerk Steve Castaneda, Councilmember October 20, 2009 4:00 P.M. Council Chambers City Hall -Building 100 276 Fourth Avenue CALL TO ORDER ROLL CALL: Councilmembers: Bensoussan, Castaneda, Ramirez, Thompson, and Mayor Cox PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE SPECIAL ORDERS OF THE DAY • OATH OF OFFICE: Sandra Villegas-Zuniga, Civil Service Commission PRESENTATION OF A PROCLAMATION TO SANDRA BAULER, SAFETY EDUCATOR AND SPOKESPERSON, DRIVEN2DARE, INC., PROCLAIMING OCTOBER 18, 2009 THROUGH OCTOBER 24, 2009 AS NATIONAL TEEN DRIVER SAFETY WEEK IN CHULA VISTA PRESENTATION OF A "CLIMATE ACTION LEADER" AWARD FROM THE CALIFORNIA CLIMATE ACTION REGISTRY TO THE CITY OF CHULA VISTA FOR ITS SUCCESSFUL REPORTING AND VERIFICATION OF THE CITY'S 2008 GREENHOUSE GAS EMISSIONS • PRESENTATION BY THE SAN DIEGO FOUNDATION ON ITS FOCUS 2050 STUDY, WHICH IS THE FIRST COMPREHENSIVE REGIONAL ASSESSMENT OF CLIMATE CHANGE IMPACTS TO SAN DIEGO COUNTY CONSENT CALENDAR (Items 1-9) The Council will enact the Consent Calendar staff recommendations by one motion, without discussion, unless a Councilmember, a member of the public, or staff requests that an item be removed for discussion. If you wish to speak on one of these items, please fll out a "Request to Speak" form (available in the lobby) and submit it to the Ciry Clerk prior to the meeting. Items pulled from the Consent Calendar will be discussed immediately following the Consent Calendar. APPROVAL OF MINUTES of June 16, 2009 Staff recommendation: Council approve the minutes. 2. WRITTEN COMMUNICATIONS Letter of resignation from Eric Mosolgo, Resource Conservation Commission Staff recommendation: Council accept the resignation. 3. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHULA VISTA MUNICIPAL CODE SECTION 2.05.010, RELATING TO THE ESTABLISHMENT OF UNCLASSIFIED POSITIONS TO ADD THE POSITION OF CBAG ACCOUNTING TECHNICIAN (4/STHS VOTE REQUIRED) (SECOND READING AND ADOPTION) The California Border Alliance Group (CBAG) requested the addition of one new position, CBAG Accounting Technician. The Police Department requests the new CBAG position be added to the unclassified service. Chula Vista Ciry Charter section 500 requires all unclassified positions not mentioned specifically in Charter section 500 be adopted by Ordinance. The ordinance was introduced October 6, 2009. (Police Chief) Staff recommendation: Council adopt the ordinance. 4. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AMENDED MEMORANDUM OF UNDERSTANDING WITH THE SAN DIEGO URBAN AREA REGIONAL CAD INTEROPERABILITY PROJECT EXECUTIVE COMMITTEE FOR THE DEVELOPMENT OF AND IMPLEMENTATION OF INTEROPERABLE COMMUNICATIONS CAPABILITIES AMONG PUBLIC SAFETY AGENCIES Approval of an amended Memorandum of Understanding (MOU) with the San Diego Urban Area Regional CAD Interoperabiliry Project Executive Committee is requested for the development of and implementation of interoperable communications capabilities among public safety agencies. The amended MOU contains additional provisions that address issues not covered by the original MOU, and helps to ensure the timely delivery of this regional project. (Fire Chief) Staff re commendation: Council adopt the resolution. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND AMERICAN FAMILY LIFE ASSURANCE COMPANY OF COLUMBUS (AFLAC) TO OFFER VOLUNTARY INSURANCE COVERAGE TO ALL BENEFITED EMPLOYEES, AUTHORIZING PRE-TAX PAYROLL DEDUCTIONS FOR EMPLOYEES WHO ELECT TO PURCHASE AFLAC SUPPLEMENTAL INSURANCE AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT Page 2 -Council Agenda httu~Nwww.chulavistaca.wv October 2Q, 2009 To accommodate the various benefit needs of City employees without added cost to the City, staff recommends offering AFLAC as a voluntary insurance option. Employee premium payments will be made through employee payroll deductions. AFLAC will administer enrollment, billing reconciliation, claims processing and claims payment for the City. Benefits will be paid directly to the employee. (Director of Human Resources) Staff recommendation: Council adopt the resolution. 6. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING THE FINAL REPORT OF EXPENDITURES FOR THE "EMERGENCY STORM DRAIN AND SLOPE REPAIR AT 1526 GRAND TETON COURT (DR180),"AND RATIFYING THE ACTIONS OF THE CITY MANAGER AND DIRECTOR OF PUBLIC WORKS FOR MAKING AND EXECUTING A CONTRACT FOR SAID EMERGENCY REPAIR WITH CASS CONSTRUCTION, INC. On Februazy 19, 2009, a lazge sinkhole appeared at 1526 Grand Teton Court. The sinkhole was caused by piping (the underground movement of soil by water) of the fill soils surrounding an existing 18" storm drain pipe that runs within the property. In accordance with the emergency provisions of Section 1009 of the City Charter, City staff contracted the services of Cass Construction, Inc. for the repair. Adoption of the resolution accepts the final report of expenditures and ratifies the execution of the contract. (Director of Public Works) Staff recommendation: Council adopt the resolution. 7. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING $163,400 IN UNANTICIPATED REVENUE GENERATED THROUGH OPERATIONS AT THE CHULA VISTA NATURE CENTER, AND AMENDING THE BUDGET ACCORDINGLY (4/STHS VOTE REQUIRED) The approved operating budget for the Chula Vista Nature Center for fiscal year 2009/2010 includes no revenue, and limited funding on the expenditure side. Through an agreement reached with the Friends of the Chula Vista Nature Center subsequent to the budget process, the facility has and is continuing to operate at full capacity, generating un-budgeted revenue. The appropriation of $163,400 of unanticipated revenue will partially offset projected over-expenditures attributed to the cost of full operations. (Director of Recreation & Nature Center) Staff recommendation: Council adopt the resolution. 8. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FORM OF, AND AUTHORIZING THE EXECUTION AND DELIVERY OF, A PURCHASE AND SALE AGREEMENT AND RELATED DOCUMENTS WITH RESPECT TO THE SALE OF THE SELLER'S PROPOSITION lA RECEIVABLE FROM THE STATE; AND DIRECTING AND AUTHORIZING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH Page 3 -Council Agenda h[tp~//www chulavistaca ~ October 20, 2009 On July 28, 2009, Governor Arnold Schwarzenegger signed the 2009-2010 California State budget, pursuant to which cities, counties, and special districts will be required to lend property tax revenues to the State, with the promise of repayment in three years. As part of the budget package, local governments have the opportunity to receive the monies being borrowed by the State up front through a securitization financing offered by California Communities, a joint powers authority sponsored by the League of California Cities and California State Association of Counties. California Communities will issue bonds securitizing the fixture payments by the State and remit the proceeds of the bonds to the local governments who opt to participate in the securitization. The State will then repay the bondholders, to pay off the outstanding bonds including interest costs. All costs of the bond issuance will be paid by the State, resulting in no costs to the City. (Director of Finance) Staff recommendation: Council adopt the resolution. 9. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING FISCAL YEAR 2008/2009 BUDGET IN ACCORDANCE WITH THE COUNCIL POLICY ON FINANCIAL REPORTING AND TRANSFER AUTHORITY, AND APPROPRIATING $345,801 OF OVERREALIZED REVENUE TO THE FIRE DEPARTMENT OVERTIME BUDGET (4/STHS VOTE REQUIRED) The Council Policy on Financial Reporting and Transfer Authority indicates that all departments complete the fiscal year with a positive balance in each budget summary category (Personnel Services, Supplies and Services, Other Expenses and Capital). In order to comply with the intent of this policy, transfers are recommended for approval. All recommended General Fund transfers can be done using existing appropriations. (Director of Finance) Staff recommendation: Council accept the report and 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 not included on the agenda, but, if appropriate, the Council may schedule the topic for future discussion or refer the matter to staff Comments are limited to three minutes. ACTION ITEMS The Item(s) listed in this section of the agenda will be considered individually by the Council and are expected to elicit discussion and deliberation. If you wish to speak on arty item, please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. Page 4 -Council Agenda http://www.chulavistaca.~ October 2Q, 2009 10. CONSIDERATION OF ACCEPTANCE OF THE 2008 GREENHOUSE EMISSIONS INVENTORY REPORT, DEVELOPMENT OF A CLIMATE ADAPTATION STRATEGY, AND APPROVING THE CITY'S ONGOING INVOLVEMENT WITH CLIMATE ADAPTATION PLANNING AS PROPOSED IN THE CLIMATE ADAPTATION PLANNING ROADMAP The 2008 Greenhouse Gas (GHG) Emissions Inventory indicates that annual citywide GHG levels have increased by 29% compared to 1990, while per capita and per housing unit levels have decreased by 25% and 17%, respectively. Emissions from municipal operations were approximately 43% below 1990 levels, surpassing the City's 20% reduction tazget. To complement the City's cazbon reduction efforts, staff is recommending that Chula Vista begin to assess vulnerabilities to climate changes and strategize opportunities to adapt to the impacts as proposed in the Climate Adaptation Planning Roadmap. (Director of Conservation and Environmental Services) Staff recommendation: Council adopt the following resolution: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA (1) ACCEPTING THE 2008 GREENHOUSE GAS EMISSIONS INVENTORY REPORT, (2) DIRECTING THE CITY'S CLIMATE CHANGE WORKING GROUP TO DEVELOP A CLIMATE ADAPTATION STRATEGY FOR FUTURE COUNCIL CONSIDERATION, AND (3) APPROVING CHULA VISTA'S ONGOING INVOLVEMENT IN INTERNATIONAL EFFORTS TO SHARE INFORMATION AND EXPERIENCES REGARDING CLIMATE ADAPTATION PLANNING AS OUTLINED IN THE CLIMATE ADAPTATION PLANNING ROADMAP 11. CONSIDERATION OF AMENDING CHAPTER 15.26 OF THE CHULA VISTA MUNICIPAL CODE The Council previously approved Implementation Plans for the Climate Change Working Group (CCWG) measures. Measure 4, Green Building Standards, consists of several components, one of which is the adoption of higher energy efficiency than the State- mandated building energy efficiency standazds. The proposed ordinance amends the City's Energy Code and adopts increased energy efficiency standards. (Deputy City Manager/Development Services Director) Staff recommendation: Council place the following ordinance on first reading and adopt the following resolution: A. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHAPTER 15.26 OF THE CHULA VISTA MUNICIPAL CODE AND ADDING SECTION 15.26.030, INCREASED ENERGY EFFICIENCY STANDARDS (FIRST READING) B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DIRECTING STAFF TO PROPOSE LOCAL AMENDMENTS TO FUTURE VERSIONS OF THE CALIFORNIA ENERGY CODE, TITLE 24, PART 6, REQUIRING INCREASED ENERGY EFFICIENCY STANDARDS Page 5 -Council Agenda ~ //www.chulavistaca.eov October 2Q, 2009 OTHER BUSINESS 12. CITY MANAGER'S REPORTS 13. MAYOR'S REPORTS Designation of a voting delegate and alternate for the National League of Cities Annual Business Meeting, to be held Saturday, November 14, 2009 in San Antonio, TX. 14. COUNCILMEMBERS' COMMENTS Deputy Mayor Ramirez: A. Ratification of appointment of Rudy G. Gonzalez to the Mobilehome Rent Review Commission. B. Consideration of City endorsement of a Maziachi event. Councilmember Castaneda: A. Direction to staff to prepare an ordinance implementing an emergency 45-day moratorium to protect historic homes in Chula Vista. B. Consideration of guidelines for a community gardens ordinance, and direction to staff to prepare the ordinance for Council consideration. C. Discussion regazding potential actions of the Regional Water Quality Control Board -San Diego District, related to the South Bay Power Plant dischazge permit. CLOSED SESSION Announcements of actions taken in Closed Session shall be made available by noon on Wednesday following the Council Meeting at the City Attorney's offace in accordance with the Ralph M Brown Act (Government Code 54957.7). 15. CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(a): A. South Bay Expressway, L.P., et al. v. City of Chula Vista, San Diego Superior Court, Case No. GIC 869386. B. Insurance Company of the West v. City of Chula Vista, San Diego Superior Court, Case No. GIS 28729; C. Citizens for Responsible Equitable Environmental Development v. City of Chula Vista/Tazget Stores, inc., Real Party in Interest, San Diego Superior Court, Case No. 37-2009-00095947-CU-TT-CTL. Page 6 -Council Agenda httn://www.chulavistaca.~ov October 20, 2009 16. CONFERENCE WITH LEGAL COUNSEL REGARDING SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(b): One Case. ADJOURNMENT to the Regular Council Meeting of October 27, 2009 at 4:00 p.m. in the Council Chambers. Materials provided to the City Council related to any open-session item on this agenda are available for public review at the City Clerk's Off ce, located in City Hall at 276 Fourth Avenue, Building 100, during normal business hours. In compliance with the AMERICANS WITH DISABILITIES ACT The City of Chula Vista requests individuals who require special accommodations to access, attend, and/or participate in a City meeting, activity, or service, contact the City Clerk's Office at (619) 691-5041 at least forty-eight hours in advance of the meeting. Page 7 -Council Agenda httn'//www.chulavistaca.oov October 2Q, 2009 DRAFT MINUTES OF A JOINT REGULAR MEETING OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA June 16,2009 6:00 P.M. A joint Regular Meeting of the City Council and the Redevelopment Agency of the City of Chula Vista was called to order at 6:03 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Council! Agency Members Bensoussan, Castaneda, McCann, Ramirez, and Mayor Cox ABSENT: None ALSO PRESENT: City ManagerlExecutive Director Sandoval, City Attorney/General Counsel Miesfeld, City Clerk Norris, and Deputy City Clerk Bennett PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE CONSENT CALENDAR (Items 1-5) 1. APPROV AL OF MINUTES of the Regular and Special Meetings of Fcbruary 17, February 19, and March 3, 2009. Staff recommendation: Council approve the minutes. 2. ORDINANCE NO. 3130, ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHULA VISTA MUNICIPAL CODE SECTION 2.05.010 RELATING TO THE ESTABLISHMENT OF UNCLASSIFIED POSITIONS TO ELIMINATE THE FOLLOWING TITLES - ANIMAL CONTROL MANAGER, ASSISTANT DIRECTOR OF BUDGET AND ANALYSIS, ASSIST ANT DIRECTOR OF BUILDING AND HOUSING, ASSISTANT DIRECTOR OF HUMAN RESOURCES, ASSISTANT DIRECTOR OF PLANNING, ASSISTAt'-'T DIRECTOR OF RECREATION, ASSISTANT FIRE CHIEF, ASSISTANT LIBRARY DIRECTOR, CBAG BUDGET MANAGER, CBAG LEAD PROGRAMMER ANALYST, CHIEF OF STAFF, COAST ALl ENVIRONMENTAL POLICY CONSULTANT, DIRECTOR OF BUDGET AND ANALYSIS, DIRECTOR OF COMMUNICATIONS, EXECUTIVE,ASSISTANT TO THE CITY MANAGER, GOVERNMENT RELATIONS LIAISON, PARKS AND OPEN SPACE MANAGER, SPECIAL PROJECTS MANAGER; AND TO ADD THE FOLLOWING TITLES - ANIMAL CARE FACILITY MANAGER, BUDGET AND ANAL YSIS MANAGER, COMMUNICA TIONS COORDINATOR, DEPUTY FIRE CHIEF, At'-'D FIRE DIVISION CHIEF (4/5THS VOTE REQUIRED -- SECOND READING AND ADOPTION) Page I - Council Minutes 1-1 June 16,2009 DRAFT CONSENT CALENDAR (Continued) Adoption of the ordinance amends Chula Vista Municipal Code Section 2.05.010 to update the list of titles of unclassified positions. This ordinance was introduced on June 9,2009. (Director of Finance) Staff recommendation: Council adopt the ordinance. 3. RESOLUTION NO. 2009-140, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ESTABLISHING THE APPROPRIATIONS LIMIT FOR THE CITY OF CHULA VISTA FOR FISCAL YEAR 2009/2010 Article XlIIB of the California Constitution approved by the voters in 1979 and commonly referred to as the Gann Initiative, requires each local government to establish an Appropriations Limit by resolution each year at a regularly scheduled meeting or noticed special meeting. The purpose of the limit is to restrict spending of certain types of revenues to a level predicated on a base year amount increased annually by an inflation factor. (Director of Finance) Staff recommendation: Council adopt the resolution. 4. RESOLUTION NO. 2009-141, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING CHANGE ORDERS FOR OT A Y PROJECT, L.P. FOR THE CONSTRUCTION OF LA MEDIA ROAD Otay Project, L.P. has constructed La Media Road from Santa Venetia Street to Birch Road, in conjunction with the development of Otay Ranch Village 6. This roadway is within the Transportation Development Impact Fee (TDIF) program, and therefore, eligible construction costs are credited against the payment of TDIF fees required for the development. Cumulative change orders totaling $50,000 or more are subject to Council approval. (Deputy City Manager/Development Services Director) Staff recommendation: Council adopt the resolution. 5. RESOLUTION NO. 2009-142, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE SUBDIVISION IMPROVEMENT AGREEMENT FOR THE COMPLETION OF THE IMPROVEMENTS FOR SAN MIGUEL RANCH PLANNING AREA K WITH ORA BONTERRA 52, LLC On January 24, 2006 by Resolution No. 2006-026, the Council approved San Miguel Ranch Phase 3 "B" Map for Planning Area K and the associated subdivision improvement agreement. The subdivision improvement agreement has since expired and a new developer has acquired Planning Area K. Adoption of the resolution approves a subdivision improvement agreement with the new owner, ORA Bonterra 52, LLC. (Deputy City ManagerlDevelopment Services Director) Staff recommendation: Council adopt the resolution. Page 2 - Council Minutes 1-2 June 16,2009 DRAFT CONSENT CALENDAR (Continued) ACTION: Mayor Cox moved to approve staffs recommendations and offered the Consent Calendar (Items 1-5), headings read, text waived. Deputy Mayor McCann seconded the motion and it carried 5-0. ITEMS REMOVED FROM THE CONSENT CALENDAR There were none. PUBLIC COMMENTS Jack Stanley, Chula Vista resident, suggested disbanding the Redevelopment Agency, closing the Redevelopment Department, reorganizing the building permit issuing process, and re-negotiating City labor contracts. Steve Eastis, Chula Vista resident, rerresenting the Third Avenue Village Association, announced the Pet Fest event on June 20' at the Memorial Bowl, the free Village Five Concert Series beginning July 15th and running through August, the ongoing Farmers Market on Thursdays, and the Lemon Festival scheduled for August 9th Larry Breitfelder, Chula Vista resident, suggested implementation of an incentive program for employees' performance or suggestions that save the City money. Item 10 was taken out of order and addressed at this time. 10. MA YOR'S REPORTS Update from Port Commissioner William Hall Commissioner Hall provided an update regarding the City's bayfront plan. He reported that 1) strengthened communications between the Port District and the City had been accomplished by designating key staff members from the City to work with the Port; 2) Chula Vista's top priorities had been presented to the Port; 3) ongoing negotiations between the City and Port had been substantial and productive; 4) negotiations between Pacifica, San Diego Labor Council and Unite Here had been ongoing and productive; 5) the Port had requested expedited settlement regarding the terms of an agreement between the Port and Pacifica; 6) etIective discussions related to the working relationships between the City, Port, and to a degree, Pacifica, regarding environmental issues were a highlight of progress made, and key to moving the HI3 and H14 parcels forward quickly; 7) funding of line items for the City had gone forward in the Port District's budget, including completion of the Environmental Impact Report, H Street engineering study and analysis, and completion of the H Street extension. Mayor Cox stated that Commissioner Hall would return to the Council with another update in July. Page 3 - Council Minutes 1-3 June 16. 2009 DRAFT PUBLIC HEARINGS 6. CONSIDERATION OF MODIFICATION OF THE POGGI CANYON SEWER BASIN DEVELOPMENT IMPACT FEE The Poggi Canyon Gravity Sewer Basin Development Impact Fee was established on November 25, 1997 to facilitate construction of the Poggi Canyon trunk sewer, which was needed to serve properties within the Poggi Canyon Basin. Adoption of the ordinance approves the first update to the fee, reducing the Poggi Canyon Sewer Basin Development Impact Fee from $400 to $265 per Equivalent Dwelling Unit. (Director of Public Works) Notice of the hearing was given in accordance with legal requirements, and the hearing was held on the date and at the time specified in the notice. Mayor Cox announced that Deputy Mayor McCann would be abstaining from voting on the item. He left the dais at 6:23 p.m. Assistant Director of Engineering Quilantan provided information on the proposed reduction of the Poggi Canyon Sewer Basin Development Impact Fee. Mayor Cox opened the public hearing. There being no members of the public who wished to speak, Mayor Cox closed the public hearing. ACTION: Mayor Cox moved to adopt the following Resolution No. 2009-143, and to place the Ordinance on first reading, headings read, text waived: A. RESOLUTION NO. 2009-143, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING THE "POGGI CANYON BASIN GRAVITY SEWER DEVELOPMENT IMPACT FEE UPDATE" REPORT B. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING ORDINANCE 2716 TO UPDATE THE POGGI CANYON SEWER BASIN DEVELOPMENT IMPACT FEE TO PAY FOR SEWER IMPROVEMENTS WITHIN THE POGGI CANYON SEWER BASIN AS A CONDITION OF ISSUANCE OF BUILDING PERMITS (FIRST READING) Councilmember Castaneda seconded the motion and it carried 4-0-1, with Deputy Mayor McCann abstaining. Deputy Mayor McCann returned to the dais at 6:27 p.m. ACTION ITEMS 7. CONSIDERATION OF ENTERING INTO A PROPERTY USE LICENSE AGREEMENT WITH PIMA MEDICAL INSTITUTE Page 4 - Council.Minutes 1-4 June 16,2009 DRAFT ACTION ITEMS (Continued) PIMA Medical Institute (PIMA) is seeking to partner with the City of Chula Vista to expand and improve the Animal Care Facility. Adoption of the resolution approves entering into a property use license agreement with PIMA. The agreement requires improvements be made to the City-owned, vacant lot next to the Animal Care Facility, and allows PIMA to provide its veterinary training program at the Animal Care Facility. If approved, PIMA would provide animal care services and equipment for the Animal Care Facility. (Public Works Director) Real Property Manager Ryals provided an overview of the property use license agreement between the City and PIMA Medical Institute for a training and educational facility adjacent to the Animal Shelter. He then introduced Fred Freedman and James Volpe, representing PIMA Institute, who spoke about PIMA's programs and partnerships. Councilmember Bensoussan stated that the Animal Care Facility Subcommittee, comprised of she and Councilmember Ramirez, was supportive of the proposed agreement. ACTION: Councilmember Bensoussan moved to adopt the following Resolution No. 2009- 144, heading read, text waived: RESOLUTION NO. 2009-144, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ENTERING INTO A PROPERTY USE LICENSE AGREEMENT WITH VOCATIONAL TRAINING INSTITUTE DBA PIMA MEDICAL INSTITUTE, INC. Councilmember Ramirez seconded the motion and it carried 5-0. 8. CONSIDERATION OF APPRO V AL BY THE REDEVELOPMENT AGENCY OF AN AMENDMENT TO THE GA TEW A Y CHULA VISTA DISPOSITION AND DEVELOPMENT AGREEMENT The Gateway Chula Vista Disposition and Development Agreement was approved June 6, 2000, for the development and operation of a phased First Class, First Quality mixed- use commercial/office project. The first and second phases have been realized, however, the third and tinal phase will not meet the construction deadline of June 30, 2009. The seventh amendment to the agreement provides for changes to ret1ect the current anticipated construction timetfame for Phase III, and recommends the Phase III completion date be extended to December 31, 2014. (Deputy City ManagerfDevelopment Services Director) Staff recommendation: Redevelopment Agency adopt the following resolution: RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY.OF CHULA VISTA ADOPTING THE SEVENTH AMENDMENT TO THE GATEWAY CHULA VISTA DISPOSITION AND DEVELOPMENT AGREEMENT (DDA) Mayor Cox announced that Item 8 was continued to the June 23, 2009 Council meeting. Page 5 - Council Minutes 1-5 June 16, 2009 DRAFT OTHER BUSINESS 9. CITY MANAGER'S REPORTS City Manager Sandoval announced that the City had received a commendation from outside auditors on its effective risk management practices. He thanked Risk Management staff for their work in doing more with less. 10. MA YOR'S REPORTS . Update from Port Commissioner William Hall The update from Mr. Hall was taken out of order and heard after Public Comments. Mayor Cox announced that June 23,2009 was Olympic Day, which would be acknowledged by a proclamation from the City to the Director of the Chula Vista Olympic Training Center. She noted that the 2016 Olympics would be hosted by the City of Chicago. She also stated that a pre- centennial event and ice-cream social was scheduled for August 2nd at Goodrich Aerostructures, and tickets for the event would be sold at $25 per ticket. Mayor Cox then announced that the City had received an honorable mention by the Sierra Club for its work on Climate Change, and she thanked Environmental and Conservation Director Meacham and his staff for their work. Mayor Cox referred to a resolution from the League of California Cities that had been distributed to the Council regarding the State taking away the City's Highway Users Tax, and suggested that the Council approve the proposed resolution. ACTION: Mayor Cox moved that the Council consider the proposed resolution at this meeting. Councilmember Bensoussan seconded the motion. City Attorney Miesfeld advised that the City Council should first make a finding that the need for action came to the attention of the City subsequent to the agenda being posted, and that there was a need to take immediate action. ACTION: Mayor Cox, following the advice provided by Mr. Miesfeld, so amended her motion. Councilmember Bensoussan seconded the motion, and it carried 5-0. Mayor Cox further explained that if the State legislature was successful in seizing the Highway Users Tax, it had no obligation to pay it back. City Manager Sandoval added that the residents would be directly affected by the potential takeaway, as City streets would be left in disrepair. He further stated that the League of California Cities would be looking into the legality of such a takeaway. Deputy Mayor McCann encouraged the community to contact local representatives to ask for support. Page 6 - Council !vlinutes 1-6 June 16. 2009 DRAFT OTHER BUSINESS (Continued) ACTION: Mayor Cox moved to adopt the following Resolution No. 2009-139, heading read, text waived: RESOLUTION NO. 2009-139, RESOLUTION OF THE CITY COUNCIL OF TI-IE CITY OF CHULA VISTA AUTHORIZING THE CITY ATTORNEY TO COOPERATE WITH THE LEAGUE OF CALIFORNIA CITIES, AND OTHER CITIES AND COUNTIES IN LlTIGA TION CHALLENGING THE CONSTITUTION OF ANY SEIZURE BY STATE GOVER.1'\fMENT OF THE CITY'S SHARE OF THE I-IIGHW A Y USERS TAX ACCOUNT FUNDS Councilmember Castaneda seconded the motion, and it carried 5-0. Mayor Cox announced that she and other Mayors throughout California would be in Sacramento on July 16th and 17th to look at both short-term and long-term effects of the State legislature's actions. II. COUNCILMEMBERS' COMMENTS Deputy Mayor McCann: A. Motion to cut the Mayor's and Councilmembers' pay by 10%, and return savings to the General Fund, to be used to save core services (Police, Fire, Libraries, Public Works and Parks). B. Motion to have the Mayor's and Councilmembers' pay their individual share of the California Public Employee Retirement System (CaIPers) retirement contribution, and return savings to the General Fund, to be used to save core services (Police, Fire, Libraries, Public Works and Parks). C. Motion to eliminate the Mayor's and Councilmembers' funding for travel and conferences, and return savings to the General Fund, to be used to save core services (Police, Fire, Libraries, Public Works and Parks). D. Motion to cut the City's Executive, Senior, and Mid-level managers' pay by 10%, and return 50% of the savings to the General Fund to be used to save core services (Police, Fire, Libraries, Public Works, and Parks), and return 50% of the savings to the City's reserves. Deputy Mayor McCann asked about a previous referral to staff for the numbcr of non-public safety City employees with take-home cars. City Manager Sandoval responded that the report was forthcoming. Deputy Mayor McCann asked for an update on thc number of employees that were employed by the City last year, as compared with the projected number of employees this year. Derrick Dudley, Chula Vista resident, representing Chula Vista Civic Association, spoke in support ofreforming Chula Vista, and looking at the budgets of the Council seats. Page 7 - Council Minutes 1-7 June 16, 2009 DRAFT OTHER BUSINESS (Continued) Yvonne Mayfield, Chula Vista resident, representing the Chula Vista Civic Association, spoke in support of Deputy Mayor McCann's proposals. Gary Tillman, Chula Vista resident, representing Chula Vista Civic Association, spoke m support of Deputy Mayor McCann's proposals. Isabelle Espino, Chula Vista resident, representing the Chula Vista Civic Association, spoke in support of Deputy Mayor McCann's proposals. She also commented on the inadequate library hours at Eastlake Library, and spoke in opposition to rolling car allowances into staff salaries. Ed Herrera, Chula Vista resident, representing the Chula Vista Civic Association, spoke m support of Deputy Mayor McCann's proposals. Alicia McGinnis, Chula Vista resident, representing Chula Vista Civic Association, spoke in support of Deputy Mayor McCann's proposals. She urged the Council to forgo any City-related travel outside of its jurisdiction, to work with constituents to resolve problems, support local business, and to utilize the travel savings for police, fire, libraries, and recreation. Chris Altbaum, Chula Vista resident, spoke in support of Deputy Mayor McCann's proposals. He spoke in opposition to the rollover of car allowances into staff salaries. ACTION: Deputy Mayor McCann moved to adopt Items II A, B, and C. The motion died for lack of a second. Councilmember Ramirez asked City Manager Sandoval to clarify the rollover of auto allowances into staff paychecks. City Manager Sandoval responded that the take-home pay was reduced, since the auto allowances were reduced by 10%. ACTION: Deputy Mayor McCann moved to adopt Item lID, heading read, text waived. The motion died for lack of a second. Deputy Mayor McCann wished everyone a happy Father's Day. Councilmember Castaneda also wished all Fathers a happy Father's Day. Council member Ramirez wished his Father a happy Father's Day. Council member Bensoussan wished a happy Father's Day to the Fathers of the Mayor and Councilmembers. She announced that an Energy Subcommittee Meeting was scheduled for June 23rd at 2:00 p.m. in the Council Chambers. She acknowledged Adam Sparks, owner of Mangia Italiano Restaurant, who was present at the meeting, and stated that the restaurant provided live Latin jazz music on Thursday nights. Mayor Cox stated that beginning July 14th, Council meetings would commence at 4:00 p.m. She noted that public hearings scheduled for the June 23rd Council meeting were noticed for, and would be heard, at 6:00 p.m. It was the consensus of the Council to convene in Closed Session on June 23rd at 5:00 p.m., followed by commencement of the Regular Council Meeting at 6:00 p.m. Page 8 - Council Minutes 1-8 June 16,2009 DRAFT OTHER BUSINESS (Continued) Mayor Cox announced that the meeting would adjourn in memory of Bud Gray, former City Planning Director. Councilmember Castaneda also extended his condolences to family and friends of Bud Gray. He also asked to adjourn in memory ofGerri Warren, wife ofJohn Warren, publisher and editor of the Voice and Viewpoint newspaper, and stated that Ms. Warren had made many contributions to the community. Mayor Cox recessed the meeting to convene in Closed Session at 8:03 p.m. CLOSED SESSION 12. CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO GOVERt'JMENT CODE SECTION 54957.6 Agency designated representatives: Jim Sandoval, Scott Tulloch, Kelley Bacon, Bart Miesfeld, Maria Kachadoorian, Rod Betts Employee organization: IAFF No reportable action was taken on this item. 13. CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO GOVERt'JMENT CODE SECTION 54957.6 Agency designated representatives: Jim Sandoval, Bart Miesfeld, Kelley Bacon, Maria Kachadoorian Unrepresented employee: Assistant City Manager ACTION: The Council voted 4-1, with Deputy Mayor McCann opposed, to authorize the City Manager to negotiate a contract with Scott Tulloch for the position of Assistant City Manger. 14. CONFERENCE WITH LEGAL COUNSEL REGARDING SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(b) . One case This item was not discussed, and no action was taken. ADJOURNMENT At 8:28 p.m., Mayor Cox adjourned the meeting in memory of Bud Gray and Gerri Warren, to the Regular City Council Meeting of June 23, 2009 in the City Council Chambers. ~ Lorraine Bennett, CMC, Deputy City Clerk -"::i.::> ~..._~ Page 9 - Council Minutes 1-9 June 16.2009 Mr. Michael Meacham City of Chula Vista 276 Fourth Avenue Chula Vista, CA. 91910 RE: Resource Conservation Commission October 9, 2009 Dear Michael: This letter is a follow-up to previous correspondence notifying you of my resignation from the City of Chula Vista's Resource Conservation Commission. The effective date of the resignation is September 14,2009. I have enjoyed serving on the commission since 2005 and would appreciate the receipt of continued correspondence related to energy and water conservation as well as any information regarding watershed, water quality, stream restoration, and bay outfall issues. I have chosen to focus my volunteer efforts on the formation of a watershed network in the region, which will focus on the identification existing flooding and erosiol). conditions, identification of existing water quality issues, and the development of integrated, multi-beneficial use solutions. Since these solutions would likely include a water conservation element, the efforts could potentially cross paths with efforts of the City's Resource Conservation Commission. Thank you for your time assisting with and maintaining the relevance of the Resource Conservation Commission. S incerel y, ~.~ Eric Mosolgo, P.E. . cc: Sheryl Fields - City of Chula Vista ~ ~t-.C~ ORDINANCE NO. ~ ~O (lS)O ORDINANCE OF THE CITY COUNCIL OF Tm;rG\'D~O~HULA VISTA AMEN'DING CHULA VISTA MUNICIPAIS~E SECTION 2.05.010 RELATING TO THE ESTABLISHMENT OF UNCLASSIFIED POSITIONS TO ADD THE POSITION OF CBAG ACCOUNTING TECHNICIAN WHEREAS, the Human Resources Department has created new classifications to better reflect the needs of the City's workforce; and WHEREAS, Charter Section 500(a) requires that all new unclassified management level positions be adopted by ordinance and a four-fifths vote of the Council. NOW, THEREFORE, the City Council of the City of Chula Vista does ordain as follows: SECTION I: That Section 2.05.010 of the Chula Vista Municipal Code is hereby amended to read as follows: 2.05.010 Unclassified positions established. In addition to those unclassified positions specifically delineated in Section 500 of the Charter of the City, there are established the unclassified positions entitled Administrative Services Manager, Advanced Planning Manager, Animal Care Facility Manager, Assistant Chief of Police, Assistant Director of Engineering, Assistant Director of Finance, Assistant Director of Public Works, Assistant Director of Redevelopment and Housing, California Border Alliance Group (CBAG) Deputy Executive Director, CBAG Director - SO LECC, CBAG Accounting Technician, CBAG Administrative Analyst I, CBAG Administrative Analyst II, CBAG Analyst, CBAG Executive Assistant, CBAG Executive Director, CBAG Graphics Designer/Webmaster, CBAG Management Assistant, CBAG Microcomputer Specialist, CBAG Network Administrator I, CBAG Network Administrator II, CBAG Network Manager, CBAG Program Analyst, CBAG Program Manager, CBAG Regional Computer Forensic Laboratory Network Engineer, City Engineer, Communications Coordinator, Constituent Services Manager, Deputy Building Official, Deputy City Manager, Deputy Fire Chief, Development Planning Manager, Director of Conservation and Environmcntal Services, Economic Development Officer, Fire Division Chief, Fiscal Operations Manager, Human Resources Operations Manager, Office Specialist (Mayor's Office), Police Captain, Purchasing Agent, Real Property Manager, Redevelopment and Housing Manager, Risk Manager, Senior Council Assistant, Traffic Engineer, Transit Coordinator, Transit Manager, Treasury Manager. SECTION II: This ordinance shall take effect and be in full force thirty days from its adoption. David Bejarano Chief of Police 'F-c:rL D B Approved as to form by: ~~Dft'I./?'-j C,r"/. Bart Miesfeld City Attorney Submitted by: 'D W ~LVY\U~ 3-1 ITEM TITLE: SUBMITTED BY: REVIEWED BY: CITY COUNCIL AGENDA STATEMENT ~ (ft.- CITY OF .~~ (HULA VISTA OCTOBER 20,2009 Item if RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VIST A APPROVING AN AMENDED MEMORANDUM OF UNDERSTANDING WITH THE SAN DIEGO URBAN AREA REGIONAL CAD INTEROPERABILITY PRO.mCT EXECUTIVE COMMITTEE FOR THE DEVELOPMENT OF AND IMPLEMENTATION OF INTEROPERABLE COMMUNICATIONS CAPABILITIES AMONG PUBLIC SAFETY AGENCIES FIRE efiEl' ~ CITY MANAG 4/5THS VOTE: YES D NO I X I BACKGROUND: Approval of an amended Memorandum of Understanding (MOU) with the San Diego Urban Area Regional CAD Interoperability Project Executive Committee is requested for the development of and implementation of interoperable communications capabilities among public safety agencies. This amended MOU contains additional provisions that address issues not covered by the original MOU. Approval of the amended MOU will help to ensure the timely delivery of this regional project. ENVIRONMENTAL REVIEW: The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act [CEQA] and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because it does not involve a physical change to the environment; therefore, pursuant to Section 15060[c][3] of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. RECOMMENDATION: That Council adopts the resolution 4-1 OCTOBER 20,2009 ItemL Page 2 of3 BOARDS/COMMISSION RECOMMENDATION: Not Applicable DISCUSSION: On August 11, 2009 the Chula Vista City Council approved a Memorandum of Understanding (MOU) with the San Diego Urban Area Regional CAD Interoperability Project Executive Committee for the development of and implementation of interoperable communications capabilities among public safety agencies. The approval of this MOU enabled the City to participate and benefit from the development of the Regional Computer-Aided-Dispatch Interoperability Project (RCIP). The purpose of the RCIP is to connect all of the SDUA fire and law enforcement emergency dispatch centers and their existing CAD systems through a network of specialized computers and custom software packages. This specialized equipment and custom software will allow agencies to share assets in separate computer aided dispatch systems. Once completed, this project will allow responding units from different agencies to have the ability to send and receive call information and Geographic Information Systems (GIS) information for locating calls in any jurisdiction. Responding units in these jurisdictions will also be able to see one another as they converge on an emergency, lending a measure of increased safety and accountability that has not been previously available. The sharing of this data greatly enhances the ability of any participating agency to obtain heightened Situational Awareness during major events. Subsequently, the San Diego Urban Area Regional CAD Interoperability Project Executive Committee has made changes to the MOU that governs the development of this project. These changes address issues that were not covered in the original MOU and are necessary to ensure the timely development and regional deployment of the RCIP. The major changes contained in the amended MOU include: . Authorizing the City of San Diego have a veto over any decisions of the governing entities . Changing the scope of the governing structures to become more advisory in nature . The inclusion of a mutual indemnity provision A comprehensive list of the proposed amendments contained in the revised MOU can be found on attachment 2. Council approval of the amended MOU for the RCIP is requested in order to enable the City ofChula Vista's continued participation in this project and sharing of the benefits. 4-2 OCTOBER 20, 2009 Item~ Page 3 of3 DECISION MAKER CONFLICT: Staff has reviewed the decision contemplated by this action and has determined that it is not site spccitic and consequently the SOO-foot rule found in California Code of Regulations section 18704.2(a)(I) is not applicable to this decision. CURRENT YEAR FISCAL IMPACT: There is no tiscal impact related to the approval of this MOU. All project related expenses will be funded with grant revenues. ONGOING FISCAL IMPACT: No ongoing fiscal impact is projected at this time. ATTACHMENTS Attachment A Memorandum of Understanding for the San Diego Urban Area Regional Computer- Aided-Dispatch Interoperability Project (RCIP) Attachment B Memorandum of Understanding for the San Diego Urban Area Regional Computer- Aided-Dispatch Interoperability Project (RCIP) - Listing of proposed amendments Prepared by: Pablo Qui/antan, Administrative Services l'vfanager, Fire Department 4-3 RESOLUTION NO. 2009- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AMENDED MEMORANDUM OF UNDERSTANDING WITI-I THE SAN DIEGO URBAN AREA REGIONAL CAD INTEROPERABILITY PROJECT EXECUTIVE COMMITTEE FOR THE DEVELOPMENT OF AND IMPLEMENTATION OF INTEROPERABLE COMMUNICATIONS CAPABILITIES AMONG PUBLIC SAFETY AGENCIES WHEREAS, on August 11,2009, the Chula Vista City Council approved a Memorandum of Understanding (MOU) with the San Diego Urban Arca Regional CAD Interoperability Project Executive Committee for the development of and implementation of interoperable communications capabilities among public safety agencies; and WHEREAS, the approval of this MOU enabled the City to participate and benefit from the development of the Regional Computer-Aided-Dispatch fnteroperability Project (RCfP); and WHEREAS, the purpose of the RCIP is to connect all of the SDUA fire and law enforcement emergency dispatch centers and their existing CAD systems through a network of specialized computers and custom software packages; and WHEREAS, subsequently, the San Diego Urban Area Regional CAD Interoperability Project Executive Committee has made changes to the MOU that govcrns the development of this project; and WHEREAS, these changes address issues that were not covered in the original MOU and are necessary to ensure the timely development and regional deployment of the RCIP. The major changes contained in thc amended MOU; and WHEREAS, approval of the amended MOU is recommended as the City of Chula Vista will benefit from its participation in this project by improving its emergency services delivery and first responder safety; and WHEREAS, there is no fiscal impact to City for this project as it will be funded with UASI and San Diego Police Foundation grant revenues; and WHEREAS, A Memorandum of Understanding (MOU) is necessary for establishing the governance structure of the SDUA RCIP program, as this project will be a shared resource among participating agencies; and WHEREAS, Approval of the MOU between the City of Chula Vista and the San Diego Urban Area (SDUA) Regional CAD fnteroperability Project (RCfP) is necessary to ensure the City ofChula Vista's participation in this project. 4-4 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby authorize the Mayor to execute the Memorandum of Understanding with the San Diego Urban Area Regional CAD Interoperability Project Executive Committee as amended for the development of and implementation of interoperable communications capabilities among public safety agencies. Presented by LEJP #\(1 N(\~AivA Dave Hanneman Fire Chief Approved as to form by cc~. Bart Miesfeld City Attorney H:shared/attomey/Fire - SDUA RCIP amended 4-5 THE A TT ACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALL Y SIGNED UPON APPROVAL BY THE CITY COUNCIL ~~ City Attorney Dated: Iv - <). 09 MEMORANDUM OF UNDERSTANDING FOR THE SAN DIEGO URBAN REGIONAL COMPUTER-AIDED-DISP A TCH INTEROPERABILITY PROJECT (RCIP) 4-6 Attachment A MEMORANDUM OF UNDERSTANDING FOR THE SAN DIEGO URBAN AREA REGIONAL COMPUTER-AIDED-DISPATCH INTEROPERABILITY PROJECT (RCIP) This Memorandum of Understanding ("MOU") provides for the collaborative development, implementation, and oversight of regional computer-aided-dispatch capabilities by and among the participating agencies that have legally executed this MOU, described in the attached Exhibit "A" (herein individually referred to as a "Party" and eollectively referred to as the "Parties"). This MOU is not intended to create a Joint Powers Agreement or separate legal entity. This MOU establishes a contractual relationship among the Parties. Other agreements which relate to the subject matter of this MOU include, but may not be limited to, Urban Area Security Initiative (UASI) grant year MOUs and Grant Assurances eaeh Party has with the City of San Diego. I. SCOPE The scope of the Regional Computer-Aided-Dispatch Interoperability Project (RCIP) is to provide for the collaborative development and implementation of interoperable communications capabilities among local public safety agencies throughout the cities and unincorporated areas of San Diego County, otherwise known as the San Diego Urban Area. The San Diego Urban Area (SDUA) specifically includes the County of San Diego and the 18 cities and unincorporated areas contained within the County of San Diego, which are as follows: The City of Carlsbad, City of Chula Vista, City of Coronado, City of Del Mar, City of EI Cajon, City of Encinitas, City of Escondido, City of Impcrial Beach, City of La Mesa, City of Lemon Grove, City of National City, City of Oceanside, City of Poway, City of San Diego, City of San Marcos, City of Santee, City of Solana Beach, City of Vista. In addition, the San Miguel Consolidated Fire Protection District is serving as the Administrative Agent for the RCIP. The San Diego Urban Area Working Group (SDUA WG) is a collaborative subcommittee established by the San Diego County Unified Disaster Council that was formed to develop strategies and implement action plans to increase preparedness, prevention, protection, response, and recovery capabilities of all first responder agencies and the jurisdictions within the SDUA from terrorist events and other natural or man-made hazards. The SDUA WG is a requirement to receive Urban Area Security Initiative Funding under the U.S. Department of Homeland Security Grant Program. The RCIP enables collaboration, situational awareness and timely distribution of critical incident information by providing a method for fire rescue, medical and law enforcement CAD systems to manage and share data and resources during response incidents that afIect the region. The RCIP has been designed for secure transport of real time public safety information. The RCIP provides an organized method of coordinating regional public safety resources (law enforcement, fire, medical) to reduce response time, increase personnel efficiency and increase resource management to and from regional dispatch centers, and the field. It is recognized that Revision 46.0 Page I 4-7 each of the Parties has and will maintain its own Computer-Aided-Dispatch capabilities beyond the RCIP solution. II. PURPOSE AND INTENT The purpose and intent of this MOU is to define the operational structure of the RCIP Program. The Parties hereto agree to work together in a cooperative manner that benefits regional public safety and emergency services, and ensures optimal communication, coordination and information sharing in all appropriate instances, among all appropriate entities. The Parties intend to utilize the operational structure outlined in this MOU for the implementation and operation of the RCIP. This document sets forth the rights and responsibilities of the Parties for participation in the RCIP. The Parties agree as follows: III. POLICY The RCIP provides a regional resource that is intended for use by law enforcement, fire rescue and medical response operations and units which are part of the SDUA, as defined herein. The use of the RCIP by the Parties shall be in accordance with operational policies adopted by the governing body. IV. OPERATIONAL STRUCTURE A. ADVISORY EXECUTIVE COMMITTEE. The RCIP shall be governed by an eight member advisory Executive Committee ("EC"). The EC shall be responsible for making recommendations to the SDUA WG concerning the overall administration and direction of the RCIP through interaction with the Steering Committee (as defined below). The EC's duties and responsibilities shall include determination of the vision and scope, establishing priorities, acting as an advocate, establishing priorities for funding, and overseeing the Steering Committee. The EC shall meet no less than once a year. 1. Organization. The following eight representatives, or their designees, shall serve as the Executive Committee: San Diego County Police Chiefs and Sheriffs Association Representative San Diego County Fire Chiefs Association Representative San Diego County Oftlce of Emergency Services Director City of San Diego Office of Homeland Security Program Manager City of San Diego Chief of Police City of San Diego Fire Chief San Diego County Sheriffs Office San Diego Fire Districts Association Representative 2. Rules and Regulations. The EC may adopt bylaws, rules, or regulations as may be required for the conduct of its meetings and the orderly operation of the RCIP, so long as in conformance with all applicable laws, rules, regulations, policies and procedures. Revision 46.0 Page 2 4-8 3. Quorum and Voting. The City of San Diego Office of Homeland Security (SDOHS), as the RCIP F'und Coordinator, must have a representative present, and a minimum of four (4) additional EC members must be present in order for the EC to have a quorum to vote and transact business. Each EC member shall have one vote. Actions of the EC shall be approved by a majority vote of members present at a meeting where a quorum exists and a representative of the City of San Diego Office of Homeland Security is present. No vote shall be valid that contravenes or is in conflict with the position held by the SDOHS representative. A vote contravenes or is in conflict with the position held by the City of San Diego when deemed to contravene or conflict, which shall be determined in the sole discretion of the SDOHS Program Manager. B. STEERING COMMITTEE. The RCIP shall be regionally coordinated by a Steering Committee. The Steering Committee's duties and responsibilities shall inelude: project oversight, establishing and monitoring all RCIP subcommittees, development of the operational procedures, development and implementation of the process and procedures for the use of the RCIP solution, and resolution of project differences of opinion and grievances. Steering Committee recommendations shall be presented to the EC for a final recommendation to be made to the SDUA WG. The Steering Committee shall meet no less than once every three months. I. Organization. The RCIP Steering Committee shall be comprised of a minimum of seven positions. One representative from Fire, one representative from Law Enforcement, one representative from the SDOHS, two representatives from Fire/EMS dispatch agencies and two representatives from Law Enforcement dispatch centers. Additional representatives may be added upon approval of the Executive Committee. 2. Quorum and Voting. A quorum for the conduct of the Steering Committee business shall exist when a majority of the Steering Committee members or their alternates are present. Each member of the Steering Committee or their alternate shall have one vote. When a committee member and their alternate are both present, only the committee member shall vote. Actions of the Steering Committee shall be approved by a majority vote of members present at a meeting where a quorum exists. No vote shall be valid that contravenes or is in conflict with the position held by the SDOHS representative. A vote contravenes or is in conflict with the position held by the City of San Diego when deemed to contravene or conflict, which shall be determined in the sole discretion of the SDOHS Program Manager. C. RCIP PROJECT MANAGER. The RCIP Project Manager may be selected by the entity which employs the Primary Fund Coordinator as defined herein or the EC. The EC shall advise the SDUA WG on the need for a RCIP Project Manager to manage the RCIP and the desired qualifications of the RCIP Project Manager. The RCIP Project Manager, after consulting with the Steering Committee, shall be responsible for the formation of the project working team from the Participating Agencies, and for specifications and preparation of any grant proposals. The RCIP Project Manager shall report to a representative at the agency or entity that enters into an agreement with the RCIP Project Manager to provide services for the RCIP. The RClP Project Manager shall serve as the Chair of the Steering Committee. The RCIP Project Manager Revision 46.0 Page 3 4":..9 shall coordinate with the Primary Fund Coordinator for all contractual and grant administration issues related to the primary grant funding source. The RCIP Project Manager shall coordinate with other Fund Coordinators for grant administration issues related to any secondary grant funding sources as necessary. D. FUND COORDINATORS. Fund Coordinators from the City of San Diego and other Parties managing RCIP grant or revenue funds shall be responsible for administration, coordination, fiscal integrity, record maintenance, and other administrative duties as associated with RCIP grant and revenue funds. The Fund Coordinator for the City of San Diego shall be the primary fund coordinator (Primary Fund Coordinator). Any Additional Fund Coordinator(s) shall be an employee of the agency managing their respective grant/revenue. Each Party shall cooperate with and assist the Primary Fund Coordinator and any other Fund Coordinators as necessary in any way to respond to an audit of any grant or revenue that funds the RCIP in whole or in part. E. RCIP TECHNICAL GROUP. The CAD Technical Manager and/or designee from each of the participating Dispatch Centers shall form the RCIP Technical Group. This group shall be responsible for coordinating installation and maintenance activities for the use of equipment associated with the RCIP. The RCIP Technical Group shall report to the EC and coordinate closely with the Steering Committee. F. SUBCOMMITTEES. The Steering Committee shall establish subcommittees as necessary to ensure effective operation, participation and communication for the RCIP by making a recommendation to the EC to have a subcommittee created. The EC shall take a vote to create any subcommittee. The Steering Committee shall manage all subcommittees and shall appoint a chair for each subcommittee. Members of any subcommittees (other than the chair) are not required to be members of the Steering Committee. The subcommittee chairs shall, at each meeting of the Steering Committee, report to the Steering Committee Subcommittee progress and issues. V. OWNERSHIP AND MAINTENANCE OF EQUIPMENT A. TITLE. Title to equipment acquired with Federal funds will vest with the entity which applied for and received federal grant funds for the benefit of the SDUA upon acquisition and is subject to the obligations and conditions set forth in 28 CFR Part 66 for State and local units of government. B. USE. Recipients shall use equipment in accordance with the following requirements: I. Equipment must be used by the recipient in the program or project for which it was acquired as long as needed, whether or not the project or program continues to be supported by Federal funds. When no longer needed for the original program, the equipment may be used in other activities currently or previously supported by a Federal agency. Revision 46.0 Page 4 4-10 2. The recipient shall also make equipment available for use on other projects or programs currently or previously supported by the Federal Government, provided such use does not interfere with the work on the projects or programs for which it was originally acquired. First preference for other use shall be given to other programs or projects supported by the awarding agency. 3. The recipient shall not use equipment acquired with funds to provide services for a fee to compete unfairly with private companies that provide equivalent services, unless specifically permitted, or contemplated by Federal statute. C. MANAGEMENT. Recipient procedures for maintaining equipment (including replacement) will meet the following requirements: 1. Equipment Inventory Logs will be provided by the City of San Diego Office of Homeland Security (SDOHS). Property records must be maintained which include: a) Description of the property; b) Serial number or other identification number; c) Source of the property; d) Identification of title holder; e) Acquisition date; t) Cost of property; g) Percentage of Federal participation in the cost of the property; h) Location of property; i) Use and condition of the property; j) Disposition data, including the date of disposal and sale price; and 2. A physical inventory of the property must be taken and the results reconciled with the property records once a year. 3. Property records and updates must be provided to the Primary Fund Coordinator. 4. Property must be made available for viewing during a monitoring visit or audit. 5. A control systems must exist to ensure adequate safeguards to prevent: a) Loss; b) Damage; or c) Theft of the property Any loss, damage, or theft shall be investigated by the recipient, as appropriate. 6. Adequate maintenance procedures must exist to keep the property in good condition. D. DISPOSInON. Recipient shall notify the SDOHS when property requires disposal or is no longer needed for the original project, or for other activities currently or previously supported by a Federal agency. Recipient must receive approval from SDOHS before any disposal or transfer can occur. Revision 46.0 Page 5 4':::11 E. EQUIPMENT IDENTIFICATION. All equipment purchased with grant funding must be identified: I. Recipient shall affix an assigned numbered identification tag, provided by SDOHS, to all equipment valued at $5000 or more. 2. Recipient shall prominently affix an identification tag provided by SDOHS that states: "Purchased with fimds provided by the Us. Department of Homeland Security. " to all equipment regardless of its value. VI. COOPERATION IN PROFESSIONAL SERVICES AGREEMENT The San Miguel Consolidated Fire Protection District was delegated by the SDUA WG to contract with Thinkstream to develop the RCIP on behalf of the SDUA. The Parties agree to cooperate with Thinkstream in the performance of the Professional Services Agreement (PSA) between the San Miguel Consolidated Fire Protection District and Thinkstream, Incorporated herein by this reference, a copy of which is on file with the San Miguel Consolidated Fire Protection District, and by signing this MOU, agree to participate in any mutual defense in any action filed by Thinkstream against the San Miguel Consolidated Fire Protection District alleging a breach of contract arising out of the performance of the PSA, except where the action relates to or involves the sole negligence or misfeasance of the City of Vista and/or the RCIP negotiation team that participated in the selection of Thinkstream as a contractor for services to be performed under the PSA. VII. MAINTENANCE AND MARKETING RIGHTS PERCENTAGE FEES A. RCIP MAINTENANCE FEE. l. Pursuant to Section 2 of the First Addendum to the PSA, an annual fee will be assessed by the vendor, commencing in fiscal year three of the RCIP (Maintenance Fee). The Maintenance Fee is $20,000 per year, per Dispatch Center connection. The Maintenance Fee shall begin to accrue for each Party on the Effective Date of this MOU as to that Party, as defined in Section XV(A) of this MOU. 2. The Maintenance Fee for the RCIP shall be allocated to each Party connected to the RCIP every fiscal year commencing in fiscal year three. Thinkstream is responsible for the Maintenance Fees during fiscal years one and two, which is included in the Performance Fee paid to Thinkstream under the First Addendum to the PSA. For fiscal years three, four and five, Thinkstream has assumed the annual Maintenance Fee for 15 Dispatch Centers up to a maximum of $300,000, to be paid out of the funds allocated to the Parties pursuant to the Public Private Partnership Agreement (PPP), incorporated herein by this reference, a copy of which is on file with the San Miguel Consolidated Fire Protection District (Marketing Rights Percentage Fees), which have been assigned to Thinkstream up to the amount of the Maintenance Fee for the 15 Dispatch Centers during Revision 46.0 Page 6 4-12 fiscal years three through tive, after the City of San Diego has deducted its administrative charge, pursuant to the First Addendum to the PSA. If there are not sufficient funds out of the Marketing Rights Percentage Fees to cover the Maintenance Fees, the Maintenance Fees shall accrue for that year and will be paid once sufficient tunds are available. Any outstanding balance of Maintenance Fees will be cancelled on December 31 for that particular year and shall not be carried over pursuant to the First Addendum to the PSA. B. MARKETING RIGHTS PERCENTAGE FEES. Any Marketing Rights Percentage Fees not expended for the purpose of Maintenance Fees shall be handled as directed by the EC, who shall make a recommendation to the SDUA WG for approval after the following required costs are distributed as follows: 1. The SDOHS shall be reimbursed for certain administrative costs involved in the direct administration of any revenues received for the RCIP, as recommended by the EC and agreed to by the SDUA WG. These accepted administrative costs shall be the first and primary use of any Marketing Rights Percentage Fees derived from the Public- Private Partnership Agreement. 2. The SDOHS shall provide to each of the Parties an invoice for the distributed costs within thirty (30) days of receipt of the Maintenance Fee Invoice. 3. Each Party receiving such an invoice shall render the full amount of the invoice to the SDOHS at the address listed in Section X of this agreement with expediency. 4. Any Party contesting the appropriateness or details of the charges shall submit their concerns in writing to the Primary Fund Coordinator, who shall in rurn notify the EC of the concerns. The SDUA WG shall have tinal determination on the validity of the charges. VII!. OBLIGATIONS AND RESPONSIBILITIES OF PARTICIPATING DISPATCH CENTERS There are certain and specific costs that will remain the responsibility of each of the participating Dispatch Centers, unless otherwise noted in Section VII and/or the PSA. These costs are known at this time to be: A. Connectivity costs. Each agency is responsible for the purchase, installation and sustainment costs of one "data line" as required by the SDUA RCIP vendor. B. Security Equipment. Each agency is responsible for the purchase, installation and sustainment costs of any data security device required by their CAD, Information Technology/Services regulations or by their agency. Revision 46.0 Paae 7 4=13 C. RCIP Maintenance Fee. The responsibility of each Party for Maintenance Fees is set forth in Section VII of this MOU. D. Participation and Support. The Parties agree to partIcIpate in programs and events detailed in Sections 5 and 6 of the Public-Private Partnership Agreement (PPP), or as determined by the SDUA WG, subject to laws, rules, regulations and policies applicable to each Party. Such participation is limited to the Projects and events contained within said sections unless otherwise agreed upon by the Parties involved; however, all Parties acknowledge the importance of participation by all Parties in the RCIP. IX. ADDITIONAL PARTIES Additional entities providing public safety dispatch services may become a party to this MOU upon a majority vote of the EC approving the entity as a Party to this MOU and by executing a signed Agreement in which the entity agrees to accept the terms of this MOU, the Profcssional Services Agreement, and the PPP Agreement, and any addendums thereto. X. NOTICE Any notice, demand, complaint, request, or other submission under this MOU shall be in writing and shall be sent either by US Mail, Certified, return receipt requested, to the RCIP Executive Committee in care of the UASI grant coordinator at: City of San Diego Office of Homeland Security Attn: RCIP Primary Fund Coordinator 202 C Street, MS 81 OH San Diego, CA 92101 XI. AMENDMENTS This MOU may only be amended or modified by a unanimous vote of the Parties to the MOU. XII. COUNTERPARTS This agreement may be executed in any number of separate counterparts and by each of the Parties in separate counterparts, each counterpart constituting an original, and all such counterparts constituting but one and the same agreement. XIII. GOVERNING LAW This MOU shall be governed by and construed according to the laws of California. XIV. COMPLIANCE WITH LAWS Revision 46.0 Page 8 4"::14 In exercising their rights under this MOU, the Parties shall fully comply in all material respects with the requirements of any and all applicable laws, regulations, mles and orders of any governmental body having jurisdiction over the exercise of rights under this Agreement. xv. EFFECTIVE DATE AND TERMINA TlON A. This MOU shall become effective upon signing by at least two (2) SDUA WG member agencies identified in Phase I (City of Carlsbad, City of Chula Vista, City of Del Mar, City of Encinitas, City of Oceanside, City of Poway, City of San Diego, City of Solana Beach, City of Vista, County of San Diego) of the RCIP (the "Effective Date"), and all necessary legal approvals have been obtained. This MOU is effective as to all remaining Parties listed in Exhibit A on the date such Party executes this MOU and all necessary legal approvals have been obtained. Unless otherwise mutually agreed to in writing by the Parties, this MOU shall remain in effect for three (3) years unless extended fur one year by mutual agreement and amendment by all Parties. Two one year amendments shall be permitted under this MOU, but in no event shall the agreement exceed five (5) years. B. Any Party to this MOU may withdraw by providing ninety (90) days written notice prior to the end of the fiscal year, defined to commence on July I of each calendar year. Notice of termination shall be sent to the EC in care of the Primary Fund Coordinator at the address listed in the Section X of this MOU. C. This MOU shall terminate immediately in the event ofa loss of funding necessary to carry out the purposes of this MOU, or disapproval by a federal administrative agency, or if it is determined by the EC, SDUA WG or the City of San Diego that thc MOU or the RCIP violates any Federal or State laws, rules or regulations. In the event termination is pursuant to this provision, a notice specifying the reasons for termination shall be sent by the Executive Committee in care of the Primary Fund Coordinator at the address listed in the Section X of this MOU to all Parties to the MOU as soon as possible after the termination in accordance with the procedures sct forth herein. D. This MOU may not be terminated at the convenience of any Party if the performance under this MOU is compelled by State or Federal Statute or Executive Order. E. As of the Effective Date of this MOU, none of the Parties to this agreement is aware of any State or Federal Statute or Executive Order that compels any party to continue performance under this MOU. XVI. EFFECTS OF WITHDRAWAL AND TER.LvIINA TlON A. Upon withdrawal by any Party from this MOU, the Party withdrawing from participation in the MOU shall return all equipment funded by RCIP grant awards to the SDUA WG for reallocation. B. Parties hosting infrastmcture in their facility that withdraw from this MOU agree to continue to allow operation of the equipment, including access to the facility, for the term of the Revision 46.0 Page 9 4-15 MOO provided the remaining Parties agree to assume all costs associated with operation of the RCIP equipment in the facility including, but not limited to, utilities, lease costs, licenses, and equipment maintenance. The remaining Parties to this MOU also agree to assume all terms and obligations of existing permits, licenses, and lease agreements; to operate and maintain the equipment in a manner that is consistent with any existing pennits, regulations, or agreements; and agree to indenmify the withdrawing party from liabilities associated with accessing the facility and operating the RCIP equipment. C. Upon termination of this MOO, the Executive Committee shall recommend to the SOUA WG by majority vote how to distribute any undistributed grant funds and equipment, subject to the rules associated with the grant award. However, no action taken by the SOUA WG is effective where it contravenes or conflicts with the position of the City of San Diego. O. Any Party may be removed from the RCIP for good cause including, but not limited to failure to pay assessed fees or charges, failure to keep the system secure, failure to comply with applicable grant requirements, and/or improper release of information. Such removal can be made only upon a majority vote of the Executive Committee after providing the member with at least 30 days written notice of the intended removal and an opportunity to be heard by the Executive Committee. A member removed from the RCIP shall be subject to all obligations including, but not limited to, the financial obligations of this MOU, the PSA, and any requirements from any grants that fund the RCIP in whole or in part. XVII. INDEMNIFICATION To the extent permitted by law, all Parties ("Parties" also defined herein as the Indemnifying Group) agree to hold each other member of the Indemnifying Group harmless and indemni fy the other members of the Indemnifying Group against any liability for damage to life or property arising from and caused by such Party's own performance or non-performance of their respective obligations under this MOU. [Rest of page intentionally blank) Revision 46.0 Page 10 4-16 SDUA RCTP Executive Committee San Diego County Police Chiefs and Sheriffs Association By: Thomas Zoll San Diego County Fire Chiefs Association By: David Ott San Diego County Office of Emergency Services By: Ronald Lane City of San Diego Office of Homeland Security Program Manager By: Donna Faller City of San Diego Police Department By: David Ramirez City of San Diego Fire Department By: Tracy Jarman San Diego County Sheriffs Department By: William Gore San Diego County Fire Districts Association By: August Ghio Revision 46.0 Page 11 4-17 Date Date Date Date Date Date Date Date IN WITNESS WHEREOF, this Memorandum of Understanding is entered into by the (Party), by and through their representative authorized to legally bind the agency. Agency: By: Title: Signature: * Thc second signature line requires execution only where the laws, rules, regulations, policies and/or procedures applicable to the Agency executing this MOU require two (2) signatures to legally bind the Agency. Agency: By: Title: Signature: I HEREBY APPROVE the form of the foregoing Memorandum of Understanding this day of ,20_. Attorney for By: Title: Signature: Revision 46.0 Page 12 4-18 Revision 46.0 Page 13 4-19 Exhibit A Members of the SDUA WG Date executed as a Party to the MOU 1. San Diego County 2. City of Carls bad 1 City of Chula Vista ~. 4. City of Coronado 5. City of Del Mar 6. City ofEI Cajon 7. City of Encinitas 8. City of Escondido 9. City ofImperial Beach 10. City of La Mesa II. City of Lemon Grove 12. City of National City 13. City of Oceanside 14. City of Po way 15. City of San Diego 16. City of San Marcos 17. City of Santee 18. City of Solana Beach 19. City of Vista Additional Parties (Non-SDUA we Party) Date executed as a Party to the MOU 20. Marine Corps Base, Camp Pendleton 21. CAL-FIRE San Diego Unit 22. San Miguel Consolidated Fire Protection District Revision 46.0 Page 14 4-20 Regional 3Cs R EG Ig~Al }.3"'Cc~,S.' ~ ~" ? '" . <P " ,- CD M MU Nl CA TI [] N S Exhibit D - Business Plan Revision 46.0 Page 15 4-21 Attachment B Memorandum of Understanding for the San Diego Urban Area Regional Computer- Aided-Dispatch Interoperability Project (RCIP) Listing of proposed amendments IV. Operational Structure A. Advisory Executive Committee . The Executive Committee becomes an advisory committee with only the authority to make recommendations to the SDUA Working Group (SDUA WG). . The number of members is reduced to 8 members from 9 members. . The representative from the City of San Diego Office of Homeland Security is given a veto over all votes. B. Steering Committee . Steering Committee is removed from operational decisions such as approval of project development steps and becomes more advisory. . The representative from the City of San Diego Office of Homeland Security is given a veto over all votes. C. RCIP Project Manager . Position is now optional and to be decided later by the SDUA WG. . Position is more advisory and does not participate in direct operational decisions V. Ownership and Maintenance of Equipment . San Miguel would take title to the equipment rather than the SDUA VI. Cooperation in Professional Services Agreement . The Professional Services Agreement is incorporated by reference. XV. Effective Date and Termination . Tiered procedure for approval ofMOU requiring less than unanimous approval of all SDUA member agencies. Former MOU draft required unanimous approval. XVI. Effects of Withdrawal and Termination 4-22 . Parties may removed from the RCIP for good cause upon majority vote of the Executive Committee. There was no procedure tor removal in prior draft. VII. Indemnification This is a new provision. All parties to the MOO indemnify and hold the other parties harmless against any liability arising from and caused by such party's performance of their obligations under the MOO. 4-23 CITY COUNCIL AGENDA STATEMENT ~v?- CITY OF '--!-=-CHUlA VISTA ITEM TITLE: SUBMITTED BY: REVIEWED BY: OCTOBER 20,2009, Item 2 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND AlVfERICAN FAMILY LIFE ASSURANCE COMPANY OF COLUMBUS (AFLAC) TO OFFER VOLUNTARY INSURANCE COVERAGE TO ALL BENEFITED EMPLOYEES, AUTHORIZING PRE-TAX PAYROLL DEDUCTIONS FOR EMPLOYEES WHO ELECT TO PURCHASE AFLAC SUPPLEMENTAL INSURANCE AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT. ~-/ DIRECTOR OF HUMAN RESOURCES J@~ ASSISTANT CI~AGER "'7) CITY MANAGEr 4/STHS VOTE: YES D NO I X I SUMMARY To accommodate the various benefit needs of City employees without added cost to the City, staff recommends offering AFLAC as a voluntary insurance option. Employee premium payments will be made through employee payroll deductions. AFLAC will administer emollment, billing reconciliation, claims processing and claims payment for the City. Benefits will be paid directly to the employee. ENVIRONMENTAL REVIEW Not applicable. RECOMMENDATION Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION 5-1 OCTOBER 20, 2009, Item~ Page 2 of3 To accommodate the various benefit needs of City employees without added cost to the City, staff recommends offering AFLAC as a voluntary insurance option. Employee premium payments will be made through employee payroll deductions. AFLAC will administer enrollment, billing reconciliation, claims processing and claims payment for the City. Benefits will be paid directly to the employee. Founded in 1955, American Family Life Assurance Company (AFLAC) currently has total assets of over $76 billion. In 1958, AFLAC introduced an income protection insurance plan for people diagnosed with cancer. Today, AFLAC policies include cancer, accident, short- term disability, hospital confinement indemnity, life specified health event, dental, long- term care and vision. Sample brochures describing the benefits of each insurance policy are included in Attachment A. AFLAC has extensive experience working with the public sector. The Deputy Sheriff's Association, City of San Diego, City of Escondido and City of Los Angeles are some of their public sector clients. Currently, Chula Vista Employee Association (CVEA) and Peace Officers Association (POA) members have access to AFLAC via their unions. Staff recommends that the City enter into an agreement with AFLAC to offer supplemental insurance to all benefited employees, and that the City allows the premium be deducted on a pre-tax basis from employee payroll. Initially, the following policies will be available to eligible City employees: (1) Personal Accident Indemnity, (2) Personal Cancer Indemnity Plan, (3) Specified Health Event Protection, (4) Hospital Confinement Indemnity, (5) Personal Long- Term Care, and (6) Dental Basic. Premium rates will vary depending on the plan and level of coverage an employee selects. The City will periodically evaluate the above policies and determine if additional voluntary policies should be made available. The scope of the work to be performed by AFLAC is outlined in the agreement between the City of Chula Vista and AFLAC (Attachment B). The plan is to offer these options to employees beginning January 1, 2010. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500-foot rule found in California Code of Regulations section 1 8704.2(a)(1) is not applicable to this decision. CURRENT YEAR FISCAL IMPACT AFLAC insurance policies are 100% employee-paid and are sold on a voluntary basis. City will realize employment tax savings to the extent employees emoll in pre-tax premmm programs. ONGOING FISCAL IMPACT AFLAC insurance policies are 100% employee-paid and are sold on a voluntary basis. City will realize employment tax savings to the extent employees emoll in pre-tax prenuum programs. 5-2 OCTOBER 20, 2009, Item S Page3of3 A TT ACHMENTS Attachments: A B Sample policy brochures For Signature: Agreement between the City of Chula Vista and AFLAC Prepared by: Kelley Bacon, Director of Human Resources, Human Resources Department 5-3 ATTACHMENT A Sample AFLAC Policy Brochures 5-4 '~m -~~; 'y' - ~-'''' - .. ",/,~-':':i. ' :j:.. Level 1 c~".:.~,t ,- ~:~:':'"':< ~t;~~: Personal Accident Indemnity Plan Accident-Only Insurance F i .' . ~ri ""'''''''-'-'''7''''~,'''''~''''''''C'-''',-;""~"-,,,, ...-........-..-.'...'T:.7'.."...'.'.-:... ""-..,.'''.."......,,-...'''.,.... Af~<'aC'M Benefits are payabie for a covered person's death, dismemberment/ or injury cQased by a covered accident that ocears on or off rhe job. Accident Emergency Treatment Benefit . Atfac will pay $120 for the insured and the spouse, and $70 for children if a covered person receives treatment for injuries sustained in a: covered accident. This benefit is payable for X-rays, treatment by a physician, or treatment received in a hospital emergency room. Treatment must be received within 72 hours of the accident for benefits to J:1e payable. This benefit is payable once per 24-hour period and only once per covered accident, per covered person. Accident Follow-Up Treatment Benefit Ajfac will pay $25 for one treatment per day for up to a maximum of six h-eatments per covered. accident, per covered person for follow-up treatment received for injuries sustained in a covered accident. Treatment must begin within 30 days of the covered accident or discharge from the hospitaL Treatments must be furnished by a physician in a physician's office or in a hospital on an outpatient bJsis. This benefit is not payable for the same visit that the Physical Therapy Benefit is paid. Initial Accident Hospitalization Benefit Aflac wilt pay $1,000 when a covered person is confined to a hospital for at least 24 hours for injuries sustained in a covered accident. If the covered person is admitted directly to an intensive care unit, Ajfac will pay $1,500. This benefit is payable only once per hospital confinement* or intensive care unit confinement and is payable only once per calendar year, per covered person. Accident Hospital Confinement Benefit Af/ac will pay $200 per day for which a covered person is charged for a room for hospital confinement* of at least 18 hours for treatment of injuries sustained in a covered .accident. This benefit is payable up to 365 days per covered accident, per covered person. The Accident Hospital Confinement Benefit and the Rehabilitation Unit Benefit will not be paid on the same day; only the highest eligible benefit will be paid. Intensive Care Unit Confinement Benefit Atlac will pay an additional $400 per day for each day a covered person is receiving the Accident Hospital Confinement Benefit and is confined to and charged for a room in an intensive care unit. This benefit is payable up to 1.5 days per covered accident, per covered person. Confinements must start within 30 days of the accident. Accident Specific-Sum Injuries Benefit Aflac wi/I pay $25-$10,000 for: Dislocations Burns Skin Grafts Eye Injuries Lacerations Fractures Broken Teeth Comas Brain Concussions Paralysis Surgical Procedures Treatment must be performed on a covered person for injuries sustained in a covered accident. We will pay for no more than two dislocations per covered accident, per covered person. Dislocations must be diagnosed by a physician within 72 hours after the covered accident. Benefits are payable for only the first dislocation of a joint. If a physician reduces a dislocation with local or no anesthesia, we will pay 25 percent of the amount shmvn for the closed reduction dislocation. A physician must treat burns within 72 hours after J covered accident. A total of 50 percent of the bum benefit will be paid for one or more skin grafts. Lacerations requiring sutures must be repaired under the attendance of a physician within 72 hours after the covered accident. Fractures must be diagnosed by a physician by X-ray within 14 days after a covered accident. For chip fractures and other fractures not reduced by open or closed reduction, we will pay 25 percent of the benefit amount shown for the closed reduction. We will pay for no more than two fractures per covered accident, per covered person. We will pay no more than aile benefit for broken teeth per covered accident, per covered person. Coma duration must be at least seven days and must require intubation for respiratory assistance. Paralysis must result from spinal cord injuries that are received in a covered accident and that result in complete and total loss of use of two or more limbs for a period of at least 30 days, and the loss must be confirmed by a physician. Surgical procedures must be performed within one year of a covered accident. Two or more surgical procedures performed through the same incision will be considered one operation, and benefits will be paid based upon the most expensive procedure. Only one miscellaneous surgery benefit is payable per 24-hour period even though more than one procedure may be performed. *Hospital confinement is defined as a covered person's confinement to a bed in a hospital for which a room charge is made. The confinement must be on the advice of a physician and medically necessary. Benefits are also payable for confinement in hospitals operated by or for the United S.tates government. Confinement~~g start within 30 days of the accident. Major Diagnostic Exams At/ac will pay $150 if a covered person requires one of the following exams for injuries sustained in J covered accident: C1 (computerized tomography) scan, !vIRl (magnetic resonance imaging), or EEG (electroencephalogram). The exam must be performed in a hospital, a physician's office, or an ambulatory surgical center, and a charge must be incurred. This benefit is limited to one payment per calendar year, per covered person. No lifetime maximum. Physical Therapy Benefit Aflac wilt pay $25 for one treatment per day up to a maximum of ten treatments per covered accident, per covered person if a physician advises the person to seek treatment from a physical therapist. Physical therapy must be for injuries sustained in a covered accident and must start within 30 days of the covered accident or discharge from the hospital. Treatment must take place within six months after the accident. This benefit is not payable for the same visit that the Accident Follow-Up Treatment Benefit is paid. Rehabilitation Unit Benefit Aj/ac wiff pay $100 per day when a covered person is charged for confinement in a hospital and transferred to a bed in a rehabilitation unit of a hospital for a covered injury. This benefit is limited to 30 days for each covered person per period of hospital confinement and is limited to a calendar year maximum of 60 days. The Accident Hospital Confinement Benefit and the Rehabilitation Unit Benefit will not be paid on the same day; only the highest eligible benefit will be paid. No lifetime maximum. A period of hospital confinement is a time period of confinement that starts while the policy is in force. If the confinement follows a previously covered confinement, it \vill be deemed a continuation of the first unless it is the result of an entirely unrelated injury or the confinements are separated by 30 days or more. Appliances Benefit Aflac will pay $100 if a covered person requires, as advised by a physician, the use of a medical appliance as an aid in personal locomotion resulting from injuries sustained in a covered accident. This benefit is payable for crutches, wheelchairs, leg bro.ces, back braces, and walkers, and is payable once per covered accide~t, per covered person. Prosthesis Benefit Aflac wjll pay $500 if a covered person requires a prosthetic device as a result of injuries sustained in a covered accident. This benefit is payable once per covered accident, per covered person and is not payable for hearing aids, wigs, or dental aids, to include false teeth. Blood/Plasma/Platelets Benefit Aflac will pay $100 if a covered person requires blood, plasma, or plntelds for the treatment of injuries sustained in a covered accident. This benefit is not payable for immunoglobulins and is payable only once per covered accident, per covered person. Ambulance Benefit Aflac will pay $150 for ground ambulance transportation or $1,000 for air ambulance transportation if a covered person requires ambulance transportation to a hospital or emergency center for injuries sustJined in a covered Jccident. A licensed professional ambulance company must provide the transportation within 72 hours of the covered accident. If the provider of service does not receive payment for services provided from any other source, and provided the benefit under the policy has not been paid, \ve will directly reimburse such provider of service. Transportation Benefit Ajfac will pay $400 per round trip to a hospital if a covered person requires special treatment and hospital confinement* for injuries sustained in a covered accident. The hospital must be more than 100 miles from the covered person's residence or site of the accident. This benefit will be paid for only the covered person for whom the treatment is prescribed, or if the treatment is for a dependent child and commercial travel is necessary, one of the dependent child's parents or legal guardinns who travels with the child will also receive this benefit. The local attending physician must prescribe the treatment, and the treatment must not be available locally. This benefit is payable for up to three round trips per calendar year, per covered person. This benefit is not payable for transportation by ambulance or air ambulance to the hospital. Family Lodging Benefit Aflac will pay $100 per night for one motel/hotel room for a memba of the extended family to accompany the covered person if treatment of injuries sustained in a covered accident requires hospital confinement. * The hospital and motel/hotel must be more than 100 miles from the covered person's residence. This benefit is payable up to 30 days per covered accid~nt and only during the time the covered person is confined in the hospital. American Family Life Assurance Company of Columbm (Aflac) 5-7 Accidental-Death and -Dismemberment Benefits Aflac wiff pay the following benefit for death if it is the result of injuries sustained in a covered accident: Insured/Spouse Child Common-Carrier Accidents $100,000 $15,000 A covered person must be a passenger at the time of the common-carrier accident, and a proper authority must have licensed the vehicle to transport passengers for a fee. Common-carrier vehicles are limited to airplanes, trains, buses, trolleys, and boats that operate on a regularly scheduled basis between predetermined points or cities. Taxis are not included. Insured/Spouse Child Other Accidents $25,000 $7,500 (Other accidents are accidents that are not classified as commo~n-carrier accidents and that are not specifically excluded in the limitations and exclusions.ofthe policy.) Ai/ac will pay the following benefit for dismemberment resulting from injuries sustained in a covered accident: Insured/Spouse Child Both arms and both legs $25,000 $7,500 Two eyes, feet, hands, arms, or legs $25,000 $7,500 One eye, foot, hand, arm, or leg $ 6,250 $1,875 One or more fingers and/or one or more toes $ 1,250 $ 500 Death or dismemberment must be independent of disease, bodily infirmity, or any -other cause other than a covered accident and must occur within 90 days of the accident. Only the highest single benefit per covered person will be paid for accidental dismemberment. Benefits will be paid only once for any covered accident. If death and dismemberment result from the same accident, only the Accidental-Death Benefit will be paid. Loss of use does not constitute dismemberment, except for eye injuries resulting in permanent loss of vision such that central visual acuity cannot be corrected to better than 20/200. Wellness Benefit After the policy l1as been in forc.e for 12 momhs, Aflac wilt pay $60 if you or anyone family member undergoes routine examinations or other preventive testing during the following policy year. Eligible family members are your spouse and the dependent children of you or your spouse. Services covered are: allnual physical examinations, dental exams, manunograms, Pap smears, eye examinations, inmmnizations, flexible sigmoidoscopies, prostate-specific antigen tests (PSAs), ultrasounds, and blood screenings. This benefit will become available following each anniversary of the policy's effective date for service received during the following policy year and is payable only once per policy each 12-month period following the policy anniversary date. Service must be under the supervision of or reconunended by a physician and received while your policy is in force, and a charg~ must be incurred. Continuation of Coverage Benefit Aflac will waive all monthly premiums due for the policy and riders for up to two months if you meet all of the following conditions: (1) Your policy has been in force for at least six months; (2) we have received premiums for at least six consecutive months; (3) your premiums have been paid through payroll deduction and you leave your employer for any reason; (4) you or your employer notifies us in writing within 30 days of the date your premium payments cease because of your leaving employment; and (5) you re-establish premium payments, either through your new employer's payroll deduction process or direct payment to Aflac. You will again become eligible for this benefit aft~r you re-establish your premium payments through payroll deduction for a period of at least SL'{ months, and we receive premiums for at least six consecutive months. (Payroll deduction means your premium is remitted to Aflac for you by your employer through a payroll deduction process.) Guaranteed-Renewable The policy is guaranteed-renewable for your lifetime, subject to Aflac's right to change premiums by class upon any renewal da te. Effective Date The effective date of the policy is the date shown in the Policy Schedule, not the date the application is signed. The policy is available through age 64. The payroll rat~ may be retained after one month's premium payment on payroll deduction. This brochure is for illustration purposes only. Refer to the policy for complete details, limitations, and exclusions. 5-8 What Is Not Covered V>le will not pay benefits for services rendered by a member of the extended family of a covered person or for an accident that occurs while coverage is not in force. We will not pay benefits for an accident or sickness that is caused by or occurs as a result ofa covered person's: Participating in any activity or event, including the operation of a vehicle, while under the influence of a controlled substance (unless administered by a physician and taken according to the physician's instructions) or while intoxicated (intoxicated means that condition as defined by the law of the jurisdiction in which the accident occurred); Mountaineering using ropes and/or other equipment, parachuting, or hang gliding; Participating in, or attempting to participate in, an illegal activity that is defined as a felony (felony is as d~fined by the law of the jurisdiction in which the activity takes place); Intentionally self-inflicting bodily injury or attempting suicide, while sane or insane; Having cosmetic surgery or other elective procedures that are not medically necessary, or having dental treatment except as a result of injmy; Being exposed to war or any act of war, declared or undeclared; Actively serving in any of th~ armed forces, or units auxiliary thereto, including the National Guard or ArnlY Reserve; Participating in any form of flight aviation other than as a fare-paying passenger in a ftllly licensed, passenger- carrying aircraft; Participating in any sport or sporting activity for wage, compensation, or profit, including otTiciating or coaching; or racing any type vehicle in an organized event. Hospital does not include any institution or part thereof used as a rehabilitation unit; a hospice unit, including any bed designated as a hospice or a swing bed; a convalescent home; a rest or nursing fJcility; an extended-care facility; a skilled nursing facility; or a facility primarily affording custodial or educational care, care or treatment for persons suffering from mental disease or disorders, care for the aged, or care for persons addicted to drugs or alcohoL Aflac shall not be liable for any loss to which a contributing cause was the insured's commission of or Jttempt to conlinit a felony or to which a contributing cause W8S the insured's being engaged in an illegal occupation. A physician does not include you or a member of your extended family, or anyone who normally resides in your home or residence. Family Coverage Family coverage includes the insured; spouse; and dependent, unmarried children to age 19 (23 if full-time students). This includes the relationship created by a domestic partnership. Newborn children are automatically insured from the moment of birth. One-parent family coverage includes the insured and all unmarried, dependent children to age 19 (23 if full-time students). A dependent child must be under the age of 19 at the time of application to be eligible for coverage. The policy to which this sales matclial peliains is written only in English; the policy prevails if interpretation of this materia.l vanes. 5-9 "".;: ~~~I~~~tl!~}~m'~~~, ~Jfi~~ l'cur !o<:.al Afi2.c insurance Cl.g"2\1tjproducer ,,' ',.' ..,,#~~;--;,;,.[~;:~~~t~~ , " ':.1\J(p.8/<~i';~!:~1H~t"}~~~iJ;;,}":,'~gg1~;tr;';S;~1!J ~7{ t<:F~.r~t~r~t:,!~p'O.r~.~lp.~~~ '~~tJ1,~~~Sr/{r~~~_1~~,9{~)~?,,?;i\1 " .. ; "lnsurlng mPre than 40 million peopleworldwtde. ~'~:;: s. ,'.' .:, _ . 'f":,:");r;:~:?i:~~:~' ~':~,.~;~ ;~~~~;'?~i;~J;;\f~t:';~~~;;:::-:~,f~'{' , c,~? l <~: Ra!ed ~.In jn~ur~~r~ar:ci~l ~~~~1^rH;bY~~~i!r~I~;a ~~~6~~ ,"," (ApnI2004), Aa2(EXcellent) In InsurerflnanClal strength by .C, ' '. ..,'~.~..." " . ""'n.'-' -,,-,'.., .\.\~, ,;. ,.,.,"" '~'~\Yr:<.,. "'" .. .1..'''' :,.r!'''''''.{L!~ ...",;.' -\ '.~' ,,' ~: 7l ".,,:~?gdY:~.~Y~~~Y~I~'~.~,C{~~~:<l~;w,~~.t~9g?)1:4t,(~.~.R,~EJ~U?Y ",,;:,::;., ;:~'ri~~f!~i)t~~~~ffB~r~:~l~{fli~:~~t~..~ ;; !.'..,,:;~.'~j';L ., ';1:Adrnired CO'rn."i:iriies:fcir,:thEtsiAh,'c'ons~cutiVit"e1r','in):;{~'~ ';~,~;,~x'~t:~~~!1~1"~ll~?~i~!i!~~[~fm:~;:,j~f :ciC\,:'i ,,:.,: i;;idW.uct,ciH2r ~o,r<:._d1.~ ~:~OIQOQ,p~y~~11 ,a~~2l!n~~ry.atI9t:'?:lly ~fi~lIJ!III:i\l: !j~~;~tfiY:;~'J~~f:~~g~'"~~:~;~~~~~~itr:~~!,. ~~w;jtl~'~l~~~l~ ~;;,:,::j.:t~\-~;';,;:"N:~n1ea b "F9rtun:~'"madazin'e"to:it ':1i5tof~~e.1~()~' ',V," 1.800.99.AFLAC (1.800.992.3522) En espanal: l800.5I.AFLAC (1.800.742.3522) Visit our Web site at aflac.com. American Family Life Assurance Company of Columbus (Aflac) Worldwide Headqu2.r:ers 1932 Wynntoll Road Columbus, Georgia 31999 aAac.com 5-10 Personal Cancer Indemnity Plan A Cancer Indemnity Insurance Policy -= _ _, ~_.___... ,m_ ..~_~. _",-cc"==":=.'-::::_. ,~_~__.. ,.___._. .~. ..........___. "._ ',_' ~'~--'----'--'--O Form A75175BCA 1C(6j05) Plan Benefits . First-Occurrence . Hospital Confinement . Medical Imaging . Radiation and Chemotherapy · Immunotherapy . Cancer Screening Wellness . Plus... much more f.~ r. ..11'."" "'a'c' .~ . ,~-. . i " . '. . '~ ." " TM 5-11 Personal Cancer Indemnity Plan Cancer Insurance Only; Policy Series A-75100 First-Occurrence Benefit Af/ac will pay 51,SOO for the insured, $1,500 for the spouse, or $2}250 for chifdren when a covered person is diagnosed with internnl cancer. This benefit is payable only once for each covered person and will be paid in addition to any other benefit in this policy Internal cancer includes melanomas classified as Clark's Level III and higher, or a Breslow level greater than 1.5 rum. In addition to the pathological or clinical diagnosis required by the policy, we may require additional infom1ution from the attending physician and hospital. Any covered person who has had a previous diagnosis of cancer will not be eligible for a First-OccuITence Benefit under this policy for a recurrence, extension, or metastatic spread of that same cancer. Hospital Confinement Benefit Afiac will pay $200 per day when a covered person is confined to a hospital for treatment of cancer and is charged for a room as an inpatient. Benefits inc"rease to $400 per day beginning with the 3] st day of continuous confinement. A person commed to a U.S. government hospital does not need to be charged for the Hospital Confinement Benefit to be payable. When cancer treatment is received in a U.S. government hospital, the remaining benefits (except the Cancer Screening \Vellness Benefit) are not payable unless the covered person is actually charged and is legally required to pay for such services. In-Hospital Drugs and Medicine Benefit Aflac will pay $15 per day for drugs and medicine administered to a covered person while confined in a hospital for the treatment of cancer. Medical Imaging Benefit Aflac will pay $100 per calendar year when a charge is incurred for each covered person who receives an initial diagnosis or follow-up evaluation of internal cancer using one of the follO\ving medical imaging exams: CT scans, MRIs, bone scans, multiple gated acquisition (lvIUGA) scans, positron emission tomography (PET) scans, or transrectal ultrasounds. These exams must be performed in a hospital, an ambulatory surgical center, or a physician's office. This benefit is payable once per calendar year, per covered person. Radiation and Chemotherapy Benefit Ai/ac will pay $200 per day as follows when a charge is incurred for a covered person who receives one or more of the following cancer treatments for the purpose of modification or destnlction of abnormal tissue: 1. Cytotoxic chemical substances and their administration in the treatment of cancer: a. Injection by medica! personnel in a physician's office, clinic, or hospital. b. Self-injected medications (limited to $200 per daily treatment, subject to a monthly maximum of $1,600 for all medications). c. Medications dispensed by a pump or implant (limited to $200 for the initial prescription and $200 for each pump refill, subject to a monthly maximum of $800 for all medications). d. Oral chemotherapy, regardless of where administered (limited to $200 per prescription, subject to a monthly maximum of $800 for all prescriptions). 2. Radiation therapy. 3. The insertion of interstitial or intracavitary application of radium or radioisotopes. If delivery of radiation or chemotherapy is other than listed above, benefits will be subject to a monthly maximum of $800. Treatments must be FDA- or NeI-approved for the treatment of cancer. This benefit does not pay for laboratory tests, diagnostic X-rays, immunoglobulins, immunotherapy, colony-stimulating factors, therapeutic devices, simulations, dosimetries, treatment plannings, or other procedures related to these therapy treatments. This benefit is not payable on the same day that the Experimental Treatment Benefit is paid. This brochure is for illustration purposes only. 5-12 r-. f Experimental Treatment Benefit Af!ac will pay 5200 per day when a charge is incurred for a covered person who receives one or more of the foUowing experimental can~er treatments, prescribed by a physician, for the purpose of modification or destruction of abIlOlmal tissue: . Treatment administered by medical personnel in a physician's office, clinic, or hospital. . Self-injected medications (limited to $200 per daily treatment, subject to a monthly maximum of $1,600). . Medications dispensed by a pump (limited to $200 for the initial prescription and $200 for each refill, subject to a monthly maximum of $800). . Oral medications, regardless of where administered (limited to $200 per prescription} subject to a monthly maximum of S800 for all prescriptions). Treatments must be approved by the National Cancer Institute (NCI) as viable experimental treatments for cancer. This benefit does not pay for laboratory tests, diagnostic X-rays, immunoglobulins, immunotherapy, colony-stimulating factors, therapeutic devices, or other procedures related to these therapy treatments. This benefit is not payable on the same day that the Radiation and Chemotherapy Benefit is paid. Immunotherapy Benefit Af/ac will pay $300 per calendar month during which a charge is incurred for a covered person who receives immunoglobulins or colony-stimulating factors as prescribed by a physician as part of a treatment regimen for internal cancer. Any medications paid under the Radiation and Chemotherapy Benefit or the Experimental Treatment Benefit will not be paid under the Immunotherapy Benefit. Lifetime maximum of $] ,500 per covered person. Antinausea Benefit Af/ac witl pay $100 per calendar mO/1th during which a charge is incurred for a covered person who receives antinallsea drugs that are prescribed while receiving radiation or chemotherapy treatments. Attending Physician Benefit Aflac wiff pay $15 per day when a charge is incurred for a covered person who is confined in a hospital and who requires the services of a licensed physician, other than the surgeon who performed the surgery. The tenn visit shall mean an actual personal call by the physician. This benefit is payable for only the number of days the Hospital Confinement Benefit is payable. Nursing Services Benefit Aflac wi/! pa.y $100 per 24.ho~lr day if, while confined in a hospital, a covered person requires and is charged for ptivate nursing services other than those regularly furnished by the hospital. Services must be required and authorized by the anending physician. This benefit is not payable for private nurses who are members of your immediate family. This benefit is payable for only the number of days the Hospital Confinement Benefit is payable. Skin Cancer Surgery Benefit Aflac wi/I pay the indemnity ($100 to $600) listed when a surgical operation is performed on a covered person for a diagnosed skin cancer and a charge is incurred for the specific procedure. The benefit listed in the policy includes anesthesia services. Surgical/Anesthesia Benefit Aflac will pay the indemnity ($95 to $3,000) listed in the Schedule of Operations when a surgical operation is performed on a covered person for a diagnosed internal cancer and a charge is incurred. If any operation for the treatment of cancer is perfom1ed other than those listed, Aflac will pay an amount comparable to the amount shown for the operation most similar in severity and gravity. (Exceptions: Surgery for skin cancer will be payable under the Skin Cancer Surgery Benefit. Reconstructive surgery will be paid under the Reconstructive Surgery Benefit.) Two or more surgical procedures performed through the same if!cision will be considered one operation, and the highest eligible benefit will be paid. Aflac will pay an indemnity benefit equal to 25% of the amount shown in the Schedule of Operations for the administration of anesthesia during a covered surgical operation. The combined benefits payable in the Surgical/Anesthesia Benefit for any one operation will not exceed 53,750. Outpatient Hospital Surgical Benefit AJ1ac will pay $200 when a surgical operation is performed on a covered person for a diagnosed internal cancer and an operating room charge is incurred. Surgeries must be performed on an outpatient basis in a hospital, to include an ambulatory surgical center. This benefit is not payable for surgery perfonned in a physician's office or for skin cancer surgery. This benefit is pnyable in addition to the Surgica.lI Anesthesia Benefit, is payable once per day, and is not payable on the same day as the Hospital Confinement Benefit. Refer to the policy for complete details, limitations, and exclusions. 5-13 Prosthesis Benefit Aflac will pay $2;500 when a charge is incurred for surgically implanted prosthetic devices that are prescribed as a direct result of surgery for cancer treatment. Lifetime maximum of $5,000 per covered person. Aflac will pay $200 when a charge is incurred for nonsurgically implanted prosthetic devices that are prescribed as a direct result of cancer treatment. Lifetime maximum of $400 per covered person. The Prosthesis Benefit does not include coverage for a breast transverse rectus abdominus myocutaneous (TRAM) flap procedure listed under the Reconstructive Surgery Benefit. Reconstructive Surgery Benefit Aflac will pay the indemnity ($325 to $2,500) listed when a surgical operation is performed on a covered person for reconstructive surgery for the treatment of cancer and a charge is incurred for the specific procedure. Aflac will pay an indemnity benefit equal to 25% of the amount shown in the policy for the administration of anesthesia during a covered reconstmctive surgical operation. If any reconstmctive surgery is perfonued other than those listed, Aflac will pay an amount comparable to the amount shown in the policy for the operation most similar in severity and gravity. In~Hospital Blood and Plasma Benefit Ajfac will pay S50 times the number of days paid under the Hospital Confinement Benefit if a covered person receives blood and/or plasma during a covered hospital confinement and a charge is incUlTed. This benefit does not pay for immunoglobulins, immunotherapy, or colony-stimulating factors. Outpatient Blood and Plasma Benefit Affac will pay S200 for each day a covered person receives blood and/or plasma transfusions for the treatment of cancer as an outpatient in a physician's office, clinic, hospital, or ambulatory surgical center, and a charge is incurred. This benefit does not pay for inununoglobulins, immunotherapy, or colony-stimulating factors. Second Surgical Opinion Benefit ,Af/a, wiff pay $200 when a charge is incurred for a second surgical opinion concerning cancer surgery for a diagnosed cancer by a licensed physician. This benefit is not payable the same day the NCI Evaluation/Consultation Benefit is payable. National Cancer Institute (NCI) Evaluation/Consultation Benefit Af/ac wiff pay $500 when a covered person seeks evaluation or consultation at an NeI-designated cancer center as a result of receiving a prior diagnosis of internal cancer. The purpose of the evaluation/consultation must be to detem1ine the appropriate course of cancer treatment. If the NeI-designated cancer center is more than 50 miles from the covered person's residence, Aflac wiff pay $250 for the transportation and lodging of the covered person receiving the evaluation/consultation. This benefit is also payable at the Aflac Cancer Center & Blood Disorders Service of Children's Healthcare of Atlanta. This benefit is not payable the same day the Second Surgical Opinion Benefit is payable. This benefit is payable only once under this policy per covered person. Ambulance Benefit Aflac will pay $200 for ground ambulance transportation or $1;000 for air ambulance transportation when a charge is incurred for ambulance transportation of a covered person to or from a hospital where the covered person is confined overnight for cancer treatment. The ambulance service must be performed by a licensed professional ambulance company. This benefit is limited to two trips per confinement. If the provider of service does not receive payment for services provided from any other source, we will directly reimburse such provider of service. Transportation Benefit Afiac wiff pay 40 cents per mite for round-trip transportation between the hospital or medical facility and the residence of the covered person when a covered person requires cancer treatment that has been prescribed by the local attending physician. Benefits are limited to $1,200 per round trip. This benefit will be paid only for the covered person for whom the treatment is prescribed. If the t.reatment is for a dependent child and commercial travel (coach-class plane, train, or bus fare) is necessJry, Aflac wil1 pay this benefit for up to two adults to accompany the dependent child. This benefit is not payable for transportation to any hospital/facility located within a 50-mile radius of the residence of the covered person or for transportation by ambulance to or from any hospital. Lodging Benefit AJfac wi/f pay $50 per day when a charge is incurred for lodging for you or anyone adult family member when a covered person receives cancer treatment at a hospital or medical facility more than 50 miles from the covered person's residence. This benefit is not payable for lodging occurring more than 24 hours prior to treatment or for lodging occurring more than 24 hours following treatment. This benefit is limited to 90 days per calendar year. 5-14 Bone Marrow Transplantation Benefit At/ac wiff pay $10,000 when a covered person incurs a charge for a bone marrow transplantation for the treatment of cancer. This does not include the harvesting of peripheral blood cells or stem cells and subsequent reinfusion. Af/ac will pay the covered person's bone marrow donor a benefit of $1,000 for his or her expenses incurred as a result of the transplantation procedure. Lifetime maximum of $10,000 per covered person. Stem Cell Transplantation Benefit Aflac will pay $2,500 when a charge is incurred if a covered person receives a peripheral stem cell transplantation for the treatment of cancer. This benefit does not include the harvesting, storage, and subsequent rein fusion of bane !1l;)rrow from the recipient or a matched donor under general anesthesia. This benefit is payable once per covered person. Lifetime maximum of S2,500 per covered person. Extended-Care Facility Benefit Af/ac will pay $100 per day when a charge is incurred if a covered person receives Hospital Confinement Benefits and, within 30 days of hospital confinement, is confined to an extended-care facility, a skilled nursing facility, a rehabilitation unit or facility, a transitional C3re unit, or any bed designated as a s\ving bed, or to a section of the hospital used as such. This benefit is limited to the same number of days that the covered person received Hospital Confinement Benefits. For each day this benefit is payable, Hospital Confinement Benefits are not payable. If more than 30 days separates a st::q in an extended~care facility, benefits are not payable for the second confinement unless the covered person was again confined to a hospital prior to the second such confinement. Lifetime maximum of 365 days per covered person. Hospice Benefit Affac will pay a one. time benefit of $500 for the first day and S50 per day thereafter for hospice care when a covered person is diagnosed with cancer, therapeutic intervention directed toward the cure of the disease is medically detelmin~d no longer appropriate, and the covered person's prognosis is one in which there is a life expectancy of six months or less as the direct result of cancer. This benefit is not payable the same day the Home Health Care Benefit is payable. Lifetime maximum of $12,000 per covered person. 5-15 Home Health Care Benefit Aflac will pay $50 per day when a charge is incurred for home health care or health supportive services when provided on a covered person's behalf within seven days of release from the hospital for the treatment of cancer. The attending physician must prescribe such services to be performed in the home of the covered person and certify that, if th~se services were not available, the covered person would have to be hospitalized to receive the necessary care, treatment, and services. These services must be performed by a person who is licensed, certified, or othe[\~,'ise duly qualified to perform such services on the same basis as if the services had been performed in a health care facility. This benefit is not payable the same d<1Y the Hospice Benefit is payable. This benefit is limited to ten visits per hospitalization and 30 visits in any calendar year for each covered person. Cancer Screening Wellness Benefit This is a preventive benefit; a diagnosis of cancer is not required for this benefit to be payable. Pflac wifl pay $40 per calendar year when a charge is incurred for one of the following: breast ultrasound, biopsy, flexible sigmoidoscopy,.bemocult stool specimen, chest X-ray, CEA (blood test for colon cancer), CA 125 (blood test for ovarian cancer), PSA (blood test for prostate cancer), thennography, colonoscopy, or virtu::II colonoscopy. These tests must be performed to detelmine whether c~mcer exists in a covered person. This benefit is limited to one payment per calend::Ir year. per covered person. Mammography and Pap Smear Benefit This is ::I preventive benefit; a di::Ignosis of cancer is not required for this benefit to be p3yable. AfFac wifl pay $100 per calendar year when a charge is incurred for an annual screening by low-dose mammography for the presence of occult breast cancer, and Af/ac wilt pay $30 per calendar year when a charge is incurred for a ThinPrep or an annual Pap smear. These tests must be performed to determine whether cancer exists in a covered person. This benefit is limited to one payment per calendar ye;)r, per covered person. The Following Benefits Have No Lifetime Maximum: Hospital Confinement, In-Hospital Drugs and Medicine, Medical Imaging, R3diation and Chemotherapy, Experimental Treatment, Antinausea. Attending Physician, Nursing Services, SurgicaVAnesthesia, Outpatient Hospital Surgical, Skin Cancer Surgery, Reconstructive Surgery, In-Hospital Blood and Plasma, Outpatient Blood and Plasma, Second Surgical Opinion. Ambulance, Transportation, Lodging, Home Health Care, Cancer Screening Wellness, and Mammography and Pap Smear. Waiver of Premium Benefit If you, due to having internal cancer, are completely unable to do all of the usual and customary duties of your occupation [or, if you are not employed: are completely unable to perform two or more of the activities of daily living (ADLs) without the assistance of another person] for a period of 90 continuous days, Aflac will waive, from month to month, any premiums falling due during your continued inability. For premiums to be waived, Aflac will require an employer's statement (if appli~able) and a physician's statement of your inability to' perform said duties or activities, and may each month thereafter require a physician's statement that total inability continues. Aflac may ask for and use an independent consultant to determine whether you can perform an ADL without assistance. Atlac will also waive, from month to month, any premiums falling due while you are receiving hospice benefits under the Hospice Benefit. Continuation of Coverage Benefit Aflac will waive all monthly premiums due for the policy and riders for two months if you meet all of the following conditions: (1) Your policy has been in force for at least six months; (2) we have received premiums for at least six consecutive months; (3) your premiums have been paid through payroll deduction; (4) you or you~ employer has notified us in writing within '30 days of the date your premium payments ceased due to your leaving employment; and (5) you re-establish premium payments through your new employer's payroll deduction process or direct payment to Aflac. YOU will again become eligible to receive this benefit after you re-establish your premium payments through payroll deduction for a period of at least six months, and we receive premiums for at least six consecutive months. (Payroll deduction means your premium is remitted to Aflac for you by your employer through a payroll deduction process.) Guaranteed-Renewable This policy is guaranteed-renewable for your lifetime, subject to Aflac's right to change premiums by class upon any renewal date. Effective Date The effective date of this policy is the date shown in the Policy Schedule, not the date the application is signed. This policy is available through age 64 on payroll deduction and through age 64 on direct billing. The payroll rate may be retained after one month's premium payment on payroll deduction. Family Coverage Family coverage includes the insured; spouse; and dependent, unmarried children to age 25. Newborn children are automatically insured from the moment of birth. One-parent family coverage includes the insured and all dependent, unmarried children to age 25 5-16 Limitations and Exclusions Aflac pays only for treatment of cancer, including direct extension, metastatic spread, or recurrence, and other diseases and conditions caused, complicated, or aggravated by or resulting from cancer or cancer treatment. Benefits are not provided for premalignant conditions; conditions with malignant potential; or any other disease, sickness, or incapacity. Pathological proof of diagnosis must be submitted. Clinical diagnosis will be accepted when such diagnosis is consistent with professional medical standards, provided medical evidence sustains the diagnosis of cancer. 'When clinical diagnosis is acceptable, the date of diagnosis will be the date on the clinical diagnosis report stating that there is a positive diagnosis of cancer. This policy contains a 30-day waiting period. If a covered person has cancer dingnosed before coverage has been in force 30 dnys from the effective date of coverage shown in the Policy Schedule, benefits for treatment of that cancer will apply only to treatment occurring after two years from the effective date of the policy. Or, at your option, you may elect to void the policy from its beginning and receive a full refund of premium. The First-Occurrence Benefit is not payable for: (1) any internal cancer diagnosed or treated before the effective date of this policy and the subsequent recurrence, extension, or metastatic spread of such internal cancer that is diagnosed prior to the effective date of this policy; (2) cancer diagnosed during this policy's 30-day waiting period; (3) the diagnosis of skin cancer or melanomas classified as Clark's Levels I and II, or a Breslow level less than or equal to 1.5 mm. Any covered person who has had a previous diagnosis of cancer will not be eligible for a First-Occurrence Benefit under this policy for a recurrence, extension, or metastatic spread of that same cancer. Benefits for the Radiation and Chemotherapy Benefit and the Experimental Treatment Benefit will not be paid for each day the radium or radioisotope remains in the body or for each day of continuous infusion of medications dispensed by a pump or implant. (The Surgical! Anesthesia Benefit provides additional amounts payable for insertion and removaL) Hospital does not include any institution, or part thereof, used as a hospice unit, including any bed designated as a hospice bed; a swing bed; a convalescent home; a rest or nursing facility; a psychiatric unit; a rehabilitation unit or facility; an extended-care facility; a skilled nursing facility; or a facility primarily affording custodial or educational care, care or treatment for persons suffering from mental diseases or disorders. care for the aged, or care for persons addicted to drugs or alcohoL The policy to which this sales material pertains is written only in English; the policy prevails if interpretation of this material varies. Understanding the Risk* According to the American Cancer Society: . In the United States, men have a little less than a 1-in-2 lifetime risk of developing cancer; for women the risk is a little more than 1-;n-3. . About 1,368,030 new cancer cases are expected to be diagnosed in 2004. . Since 1990, over 18 million new cancer cases have been diagnosed. As advances in cancer treatment continue, more and more people will survive: . Approximately 9.6 million Americans with a history of cancer were alive in January 2000. . The five-year relative survival rate for all cancers combined is 630/0. The National Institutes of Health estimated the overall costs for cancer in the year 2003 at $189.5 billion. Although health insurance can help offset the costs of cancer treatment, you stlll may have to cover deductibles and copayments on your own. Additionally, cancer treatment can cause out-of-pocket expenses that aren't covered by traditional health insurance: . Travel . Food . Lodging . Long-distance calls . Child care . Household help M'eanwhile, living expenses such as car payments, mortgages or rent, and utility bills continue, whether or not you are able to work. If a family member has to stop working to take care of you, the loss of income may be doubled. AfJac helps provide an important safety net in fighting the financial consequences of cancer that result beyond traditional health insurance. Aflac's Persona! Cancer Ii'demnity Plan pays benefits directly to you, unless assigned. You use the cash however XQ.!!. decide. Afi;aCTM "American Cancer Socit:ty. Cancer Facts & FlgUrcS 2004 5-17 Aflac is ... . A Fortune 500 company with assets exceeding $59 billion} insuring more than 40 million people worldwide. . Rated AA in insurer financial strength by Standard & Poor's (April 2004), Aa2 (Excellent) in insurer financial strength by Moody's Investors Service (March 2003), A+ (Superior) by AM. Best (June 2004), and AA in insurer financial strength by Fitch, Ine. (December 2003).* . Named by Fortune magazine to its list of America's Most Admired Companies for the fifth consecutive year in March 2005. . A premier provider of insurance policies with premiums payroll deducted for more than 300,000 payroll accounts nationally. ", :":~-'~1.t;!;~ . Outstanding in claims service! with most claims processed within four days. t;_: :;,.;,' '.' . Included by Forbes magazine in its annual Platinum 400 List of America's Best Big Companies since 2000 (January 2004), . Named by Fortune magazine to its list of the 100 Best Companies to Work For in America for the seventh consecutive year in January 2005. Ratings refer only to the overall financial status of Aflac alld are not recommendations of specific policy provisions, fCltes) or practices. .\~" . . .~. 'ii;i;~i;';_:~~ ~'" i~:";-'~:'~ ~--'''- ,.,'< *.-:, i':~:... ~ ;,-::.-, F."'" --;-..,.-.----..----------.----,--.----;-::.------...,... ------------"--".._---~~_..."..._..---...~- .' .. 1.800.99.AFLAC (1.800.992.3522) En espana I: 1.800.5I.AFLAC (1.800.742.3522) '\ -e.&i{~ \ 0' Visit our Web site at aflac.com. Your local .;ffac insut"ance ag~I-.t/pi-oducer ~.~ American Family Life Assurance Company of Columbus (Aflac) Worldwide Headquartei"s 1932 Wynnton ROZld Columbus, Georgia 31999 aflac.com 5-18 Il:""J t?,,;, r:,::.i ;'~.~ iJ;':--~ I'';'.'' :;.'~ L1 l~!\:, l.'j..1 "i ~j 3 ~~ r~'''1 I,il i.) ';~ 1'1 [~il ,II;! I......".j'.' [Ji': I...., .'~'~. l~~::: I'i,., ~~'~ ~,'l "I 1,;1! 1:" ~:;I' I':J ", '" (;j1 1""1, IH:i 1'1\'1 iil .~J ""I '~';.21. 'l' t;l .1 r~1~~f;;;i,,~;,rt;;1"; Plan 1 Specified Health Event Protection ".~..~~\?;-..;~tf'.\~. " (' ","'I.,' '\0""',"'" ""{ :l:'~'?:'.:t;:.~i~?l~,\ ~;, '\;(, ':J,. ) .~ \ 'h ~;~~:;,,! ,. " ~I,'j "'';~''!'~:':'''gf''v ~I " ';:" ::4:"~ ~_.:.' ,,'~, ,~~1': -;~';t~ ". ~~ .,.'~ <r:", -.:,:i:.:~:;~:i~~. .', ~;:'\f" "'"1" ,:~~'"~~.,.. ~. C"('i~~:~)~1~~i "' .' 'W' '''.r,...........,~l', " '.', .' ., ," Specified Health Event Insurance :~!:}r?; , ~:;~',;~'~'{ ""';"~/'}f:~~~~";~"" '-"','" pays a flrst;.Qccurrence Benefltas; .',,,: ","," :~1tt~:f~~~~,~H~~~;j'~:!fg'i" c8'n,~;'U~~'~:~'~;~~~:8':; ~':)~,;~~;'~":i:;: J~~$~~J;t-t':'1~;;,~~:.~g?:~~j';:-'-:_ _ "j'i'!l,2'}~';::-;f::::: ,',_:~.. '::':"~:,}~",,~ }Gontinuingca:re .Benefits for' ."":.,";,::.::"r~:r '~~:~~tr;~~~;!P~?t"+i(;,:~,~~,:~,. :~ 1~., :""';, :',' ~,t\'/~,:, '::>),:;t~::::~:i".t?; "~~~;,~~~rt,:~n~Ck&~o.r9nary ~rtery'll; .- ,'" ~t~~[!::1rr ,.ii~~~ :more ~". -'i,'!<":,:,,!~ ,'/;-~2 i': n. .._..., ~~::; :.'~~ "._\~2.~~~;:~{;':~:;k- "~Ji~.:~":~. :i$? . f~.: . . .",.'!".a.c. LJ' , TM :~~~;:~f'~I~t:ff~I:~::~~~'f~~~~-~~~;l:~t-~iJ~'c~i~}':,c.. ;;:~~~~;;~\,~.~t~i~~~:~:~7~jHi;.::: :,':,:~'., ,., ,~ '..::):'~}}i~::.:';.,:';'f"'): ~L/:'. . ~:,';~J::';"~Su" "e'"c''' lif,.'e' "':.J~ Ueda':"'Jt" L:;~Ev-\-e""'n""ljt' ':B""'r{o"t"'e"~c.>t<"I;'o":'n"" .: :,;:".'\i'~{:/"":':'~~: ::;' ,K-',':l;':.;r;' {,\I'"'*,.;;h l".-\ . "l " ,~l'n.,.. II" ' . <j < ~ '1',,<"'.' 'l (,',' "~1 ~,If'" ~0~~!"l;..ft>;~~' :,,'~'~_.rd.",r::-~;,}'c'~")'/~-'";""-"':"l,~ :.:,,:I.~,,\\~ 1!f,'t:,H'! .:t~tl,:~ ,,'~:j' '6~';:.'""" "'j\,.,, :'~t'I' >, I"" '. ~,_,-\,i" ''''PollcySerfesA71000': "..-,1'.'~l;l ~~ ~'~,~~,,~- ~t~ -''.i..,tt",...,. ,<!.;,j'-' """ '", ~'1.",.-,:)."t'.j", ~,,<;,'i! I ~ ,>~..,,,,,.~ '. '\. -:..."..,'",~t1_~~, "" ~ "'...,*'.. /-,' ,,~.'''j~H~- . ~,'{:<_ ~ ,.'. , "" .~",'- J../;'I?',',.. ,'t?"','.:''J''-'- ,~'.. :~1~~{,:t.~:;~?'::'J',.i':;~~~~2?{'~~~S~,;.~:~:; ~fjc~. \~;\{~,'f'ii;':-;,;',,~~;:;i{,:' ~~:..:;, . .: ,',-, J~~.,i}r~t.~,'~ ~~t::;P~"~~(;.:;':;;i.~:'.,.~ ;y, ~; Primary specified health events covered by the Specified Health Event Protection policy include: . Coma . Stroke . Paralysis . Heart Attack End-Stage Renal Failure Major Third-Degree Burns Persistent Vegetative State Coronary Artery Bypass Surgery . Major Human Organ Transplant $5,000 First.Occurrence Benefit Aflac wiff pay $5,000 for the named insured and spouse or $7,500 for each dependent child covered under the policy when he or she is first diagnosed as having had a primary specified health event. This benefit is paid only once for each covered person and will be paid in addition to any other benefit in the policy. Lifetime maximum is $5,000 per named insured and spouse, and $7,500 per dependent child. $2,500 Reoccurrence Benefit Aflac will pay $2,500 for each covered person under the policy if he or she has been paid under the First-Occurrence Benefit and is later diagnosed as having had a primary specified health event that occurs more than 180 days after the First- Occurrence Benefit last became payable. This benefit will a.gain become payable for a. primary specified health event when it occurs more than 1 SO days after the Reoccurrence Benefit last became payable. No lifetime ma.ximum. Hospital Confinement Benefit* Af/ac wi!1 pay $300 for each day a covered person incurs a charge for hospital confinement for the treatment of a covered primary specified health event. Confinement for treatment of the covered primary specified health event must occur within 500 days following the occurrence of the most recent covered primary specified health event. This benefit is payable for only one cuvereu primary specified health event at a time per covered person. Treatment or confinement in a U.S. government hospital does not require a charge for benefits to be payable. Continuing Care Benefit* Aflac wi/{ pay $125 each day a covered person is charged for receiving any of the follo\\wg treatments from a licensed physician as a result of a covered primary specified health t:vent: Dialysis . Hospice Care . Extended Care . Physician Visits . Speech Therapy . Physical Therapy . Home Health Care . Nursing Home Care Respiratory Therapy . Occupational Therapy . Rehabilitation Therapy Dietary Therapy jConsultation Treatment is limited to 60 days for continuing care received within 180 days following the occurrence of the most recent covered primary specified health event. Daily maximum for this benefit is $125 regardless of the number of treaOnents received. *If the Hospital Confinement Benefit and the Continuing Care Benefit are payable on the same day, only the highest eligible benefit will be paid. No lifetime maximum. Ambulance Benefit Aflac will pay $250 if, due to a covered primary specified health event, a covered person requires ground ambulance transportation to or from a hospital. Aflac wilt pay $2,000 if, due to a covered primary specified health event, a covered person requires air ambulance transportation to or from a hospitaL A licensed professional or licensed volunteer ambulance company must provide the ambulance service. If the provider of service does not receive payment for services provided from any other source, and provided the benefit under the policy has not been paid, we will directly reimburse such provider of service. This benefit will not be paid for more than two times per occurrence of a primary specified health event. Ambulance benefits are nor payable beyond the 1 80th day following the occurrence of a covered primary specified health event. No lifetime maximum. American Family Life Assurance Company of Columbus (Aflac) 5-20 Transportation Benefit Aflac wi!1 pay 50 cents per mile for noncommercial travel or the costs incurred for commercial travel (coach class plane, train, or bus farc) for transportation of a covered person for the round-trip distance between the hospital or medical facility and the residence of the covered person if a covered person requires special medical treatment that has been prescribed by the local attending physician for a covered primary specified health event. This benefit is not payable for transportation by ambulance or air ambulance to the hospital. Reimbursement will be made for only the method of transportation actually taken. This benefit will be paid' only for the covered person for whom the special treatment is prescribed. If the special treatment is for a dependent child and commercial travells necessary, Aflac will pay this benefit for up to two adults to accompany the dependent child. The benefit amount payable is limited to $1,500 per occurrence of a covered primary specified health event. Transportation benefits are not payable beyond the 180th dav fallowino the occurrence of a covered primary specified h:alth event~ This benefit is not payable for transportation to any hospital located within a 50.mile radius of the residence of the covered person. No lifetime maximum. Lodging Benefit Aflac will pay the charges incurred up to 575 per day for lodging far you or anyone adult family member when a covered person receives special medical treatment for a covered primary specified health event at a hospital or medical facility. The hospital, medical facility, and lodging must be more than 50 miles from the covered person's residence. This benefit is not payable for lodging occurring more than 24 hours prior to treatment or for lodging occurring more than 24 hours following treatment. This benefit is limited to 15 days per occurrence of a covered primary specified health event. Lodging benefits are not payable bevond the 180th dav following the occurrence of a cover~d primary specifi~d health event. No lifetime maximum. The Continuing Care Benefit, Ambulance Benefit. Transportation Benefit, and Lodging Benefit will be paid for care received within 1 SO days following the occurrence of a covered primary specified health event. Benefits are paya.ble for only one covered primary specified health event at a time per covered person. If a covered person is eligible to receive benefits for marc than one covered primary specified health event, we will pay benefits only for care received within the 1 SO days following the occurrence of the most recent event. Secondary Specified Health Event Benefit A;.!fac wi!! pay $250 for each covered person under the policy who has coronary angioplasty, with or without stents. This benefit is limited to one coronary angioplasty per 30-day period. No lifetime maximum. Mammography Benefit Aflac wifl pay $150 per policy year when a charge is incurred for an annual screening by lO\v-dosc mammography for the presence of occult breast cancer. This benefit is limited to one payment per policy year, per covered person. No lifetime maximum. Waiver of Premium Benefit If you, due to a primary specified health event, are completely unable to do all of the usual and customary duties of your occupation [if you arc not employed: are completely unable to perform three or more of the activities of daily living (ADLs) .without the assistance of another person1 for a period of 90 continuous days, Aflac will waive, from month to month, any premiums falling due during your continued inability For premiums to be waived, Aflac will require an employer's statement (ifapplicablc) and a physician's statement of your inability to perform said duties, and mav each month thereafter require a physician's state11le~t that total inability continues. Continuation of Coverage Benefit Aflac will waive all monthly premiums due for the policy and riders for two months if you meet all of the following conditions: \ 1) your policy has been in force for at least six months: (2) we have received premiums for at least six consecutive months; (3) your premiums have been paid through payroll deduction; (4) you or your employer has notifIed us in writing within 30 days of the date your premium payments ceased due to your leaving employment; and (5) you re-est:tblish your premium payments through your new employer's payroll deduction process or direct payment to Atlac:. You will again become eligible to receive this benefit after you re-establish your premium payments through payroll deduction for a period qf at least six months and we receive premiums for at least six consecutive months. Payroll deduction means your premium is remitted to Aflac for you by your employer through a payroll deduction process. Guaranteed-Renewable The policy is guaranteed-renewable for your lifetime, subject to Aflae '5 right to change premiums by class upon any renewal date. 5-21 Definitions The following specified health events must occur after the effective date of coverage for benefits to be payable: PrimQ/Y Specified Health Event: heart attack, stroke, coronary artery bypass surgery, end-stage renal failure, major human organ transplant, major third-degree bums, persistent vegetative state, coma, or paralysis. Coma: a continuous state of profound unconsciousness, dia\mosed or treated after the effective date of the policy, lasting for a period of seven or more consecutive days and characterized by the absence of (I) spontaneous eye movement, (2) response to painful stimuli, and (3) vocalization. The condition must require intubation for respiratory assistance. Coronary Artery Bypass Surgery: open-heart surgery to correct narrowing or blockage of one or more coronary arteries with bypass grafts but excluding procedures such as, but not limited to, coronary angioplasty, laser relief, or other nonsurgical procedures. This does not include valve replacement surgery. End-Stage Renal Failure: permanent and irreversible kidney failure, not of an acute nature, requiring dialysis or a kidney transplant to maintain life. Heart Attach: a myocardial infarction, coronary thrombosis, or coronarY occlusion that is diagnosed or treated after the eff'ectiv; date of the policy. The attack must be positively diagnosed by a physician and must be evidenced by electrocardiographic findings or clinical findings together with blood enzyme findings. The definition of heart attack shall not be construed to mean congestive heart failure, atherosclerotic heart disease, angina, coronary artery disease, or any other dysfunction of the cardiovascular system. Major Human Organ Transplant: a surgery in which a covered person receives, as a result of a surgical transplant, one or more of the following human organs: kidney, liver, heart, lung, or pancreas. .It does not include transplants involving mechanical or nonhuman organs. Major Third-Degree Burns: an area of tissue damage in which there is destruction of the entire epidermis and underlying dennis and that covers more than 10 percent of total body surface. The damage must be caused by heat, electricity, radiation, or chemicals. Paralysis: spinal cord injuries resulting in complete and total loss of use of two or more limbs (paraplegia, quadriplegia, or hemiplegia) for a continuous period of at least 30 days. The paralysis must be confirmed by your attending physician. Persistent Vegetative State: a state of severe mental impairment in which only involuntary bodily functions are present and for which there exists no rcasonabk expectation of regaining significant cognitive function. The procedure for establishing a persistent vegetative state is as follows: two physicians, one of whom must be the attending physician, who, after persoll311y examining the covered person, shall certify- in writing, based upon conditions found during the course of their examination, that (1) the covered person's cognitive function has been substantially impaired, and (2) there exists no reasonable expectation that the covered person will regain significant cognitive function. Secondary Specified Health Evenc coronary angioplasty with or without stents occurring after the effective date of coverage. Stroke: apoplexy due to rupture or acute occlusion of a cerebral artery that is diagnosed or treated after the effective date of the policy. The apoplexy must cause complete or partial loss of function involving the motion or sensation of a part of the body and must last more than 24 hours. The stroke must be positively diagnosed by a physician based upon documented neurological deficits and confirmatory neuroimaging studies. Stroke does not mean head injury, transient ischemic attack (TIA), or cerebrovascular insufficiency. Family Coverage Family coverage includes the insured; spouse (including the relationship created by a domestic partnership); and dependent, unmarried children to age 25. Newborn children are automatically insured as any other family member. One- parent family coverage includes the insured and dependent, unmarried children to age 25. Effective Date The effective date is the date shown in the Policy Schedule, not the date you signed the application for coverage. The payroll rate may be retained after one month's premium payment on payroll deduction. 5-22 Pre-Existing Conditions A pre-existing condition is an illness, disease, disorder, or injury for which, within the sL'{-month period before the effective date of coverage, medical advice, consult3tion, or treannent was recommended by or received from a physician. Benefits for a primary or secondary specified health event that is caused by a pre-existing condition will not be covered unless the primary or secondary specified health event occurs more than 30 days after the effective date. Any reoccurrence of a primary or secondary specified health event occurring more th:m 30 days after the effective date will be covered. Limitations and Exclusions Benefits are not payable for losses or confinements that occur or begin before the policy effective date or after tennination of the policy. Benefits for a primary or secondary specified health event that is caused by a pre-existing condition will not be covered unless the primary or secondary specified health event occurs more than 30 days after the effective date. Benefits are payable for only one covered primary or secondary specified health event at a time per covered person. The policy does not cover losses or confinements caused by or resulting from: (I) any loss sustained or contracted due, directly or indirectly, to a covered person's being intoxicated or under the influence of any controtled substance unless administered on the advice of a physician; (2) participating in any sport or sporting activity for wage, compensation, or profit; (3) intentionally self-inflicting bodily injury or attempting suicide; or (4) being exposed to war or any act of war, declared or undeclared, or actively serving in any of the armed forces or units auxiliary thereto, including the National Guard or Reserve. The term hospital does not include any institution or part thereof used as an emergency room; a rehabilitation unit; a hospice unit, including any bed dt:signated as a hospice bed or a swing bed; a transitional care unit; a convalescent homc; a rest or nursing facility; a psychiatric unit; an extended-care facility; a skilled nursing facility; or a facility primarily affording custodial or educational care, care or treatment for persons suffering from mental disease or disorders, care for the aged, or care for persons addicted to drugs or alcohol. A physician does not include you or a member of your extended family, or anyone \\'ho normally resides in your home or residence. The policy to which this sales material pertains is written only in English; the policy prevails if interpretation of this material vanes. ~ ,.J "j r,. ~,.;~ <, I ,~n If,;- '>(. I"i' ~r:i ~., .': I This brochure is for illustration purposes only. Refer to the policy for complete details, limitations, and exclusions. 5-23 Your le'(3.1 ;',tlac in,urance agent/producer ~ . Aflac iSm ., .- .....,. . A'Fortune 500 company with assets exceeding $56 binion, ins~'rillg.more t~a[l40 inilliqn people world~ide. ",,:; ,;;:;,~: ,,~ ,;..' ,;' 'J," ~_,' ,'".e', :~. '~:~. '...."; ,~_,'..._ "'; !,:,\,.~r';,.t/)~'~">';k~--:,~-'J~i .- Rated Ap;'in ir15tirerfinanciaJ Stre,n,~h'by Stand~~~&,p~fcJr,~-sJ,,<::",:,~~~'\:;:.i (Ap~_]l2Q~~)~~Aa~ (hC~,!,! e'nt), i~;"i'r\'~urer fi~.a'~c~~I'st~:~~~~~Y;~ ~::,/:;;. ':'},>! Mo.ody'slnvestor, Se!"lce (January 2.006), A+(~upenor)by,., ,it,;;.~.!: , A:,tv},: ~e$t'-(Ju~e 200~);'and A~in:!nsy~er fin<~,~c(~.I..~.t:.~n.~~~::';::r;\'ii,!:::: .~': '~a:t:;,:~:X::~ :::L~ne to\" Iiii 'O/Ame;ica,:2g1~j~,i;t;,:',~,'i Ac(mired C;mpan!~5 for the sixth 'conse'cuti.ve y~a{ii1 ':~: ..' ;,.' .r:\:~::r:".. , '. ?::::~::~~ider ~fi~~~ran:~'p~,'icil{~lk':i~~;~;l:~:;r~l:f~~~~;~~:"~'! d~ucted fo~,more than,350,000'payroll'accou~~:,n~tlqn<;tlly: ,,;<',,/,:::,t:"':<Lti '. '. '3~~~~o:~~~s,lai~S se~ice';:h .most:~~;,~~~~il:~~~~(::~\:~t:?:~;i~ . . Included by Fo~bes magazine in its annL,Lal ,~,lati!l.t!m'~OOli5~>;.;;~,~~;,:Lrj o '~;f;i~:~~~;;~~~~:~li~1 consecutive 'yearin January 2006:':,' , ,,~.. \ov, " '-,' ,:,.:~,!t"~!j::j'~'~::", +R;~";.i4"o;ito th,,,'ml;:PO'"d~;Gt;:.'fAfi~,'~~;:;~i";i'iti;~':~~~~\';',:i<;i~ r~commendmion.s of specific'poJicy provi~ion>,"J:ales, o~ pr~,cdc6'- "':':"'-' :: ",:<~,::}"." ", ':~:::i t:j ""I t'~:l'l 1;".. 1"1 K:,'J i,:f " ", 1<: ',,;':';!: , ".~,; J:.Y' )::;(, ;: ,:<:i, ,(; F~ ''11,: ,'<'-~::\:~ ":,-.;n:~ 1,800,99,AFLAC (1.800,992,3522) En espanal: 1,80051.AFLAC (1.800.742,3522) . , 1 r:~ ~' , " Visit our Web site at aflac.com, ".:'~ " ;-: ~: ,'" I" i~:! I'," I' d c..__~' ,',,;, ! :~i 5-24 ~,j~ U :'~. American Family Life Assul'ance Company of Columbus (Aflac) . Worldwide Headquaners 1932 WYllntOr. Road. Columbus, Georgia 31999 aflac.com Plan 1 .;';!,o~~ Hospital Protection ~1 e"~;~,,~;::,,,~~ .. "':,:';\'.~'::';::' ';~ , ~:;~;" \ f} cr"" " ';'~tj~'~' ,;.. l:".1- ""'.:';", ..' ~; ,f; . .......... ",r. t :_~ ~ "~I -~ ',' . ',;'-, lib. ,f'..., .. <:~~"_ 4 '.~ :Aj ~ l,~ J ,e:.,. , ...~: ,y.'> ..~ .' ....:,: rlw ~ It.. :~. j;~ I~ll/'~l,' ~,1 ~ '. 'I' ~.. 4 ~ 'rVc,,";" ,r~~" ".?' ~ti 1 'I' ~', /J!"""""':':,!,,'~ :!..,{1,' """," ,.'l,." +l,;.i~j, ~ i ~-..; .:::~' f~.: '..," - , L :r~'" ~-,:-=~~;:'_'::._:,._-,,_._,,~..., " Hospital Confinement Indemnity Insurance ... ... what you need, when you need it. Aff"BC'M ~~~iJ:; Annual Hospitalization Confinement Benefit Aflac will pay the amount listed below for the first five days of hospitalization when a covered person requires hospital confinement* for a covered sickness or injury and a charge is incurred. SiCRrieSS $400 per day $500 pcr day fnjw)' Benefits for the Annual Hospitalization Confinement Benefit are limited to a total benefit payment of five days per calendar year, per policy. Confinements not separated by 30 days or more, or hospitalization that begins prior to the end of one calendar year and continues into the next calendar year will be considered one confinement. Daily Hospital Confinement Benefit Aflac wiIJ pay S 100 per day for the period of hospital confinement* when a covered person requires hospital confinement for a covered sickness or injury. This benefit is payable in addition to the Annual Hospitalization Confinement Benefit. The maximum benefit period for any one period of hospital confinement is 365 days. No lifetime maximum. *Hospital confinement does not include emergency rooms. Treatment or confinement in a U.S. government hospital does not require a charge for benefits to be payable. Rehabilitation Unit Benefit AjItJ.c wj// pay $'/00 per day for each day you are charged when a covered person is confined in a hospital and is transferred to a bed in a rehabilitation unit of a hospital for a covered sickness or injury. This benefit is limited to 15 days for each covered person per period of hospital confinement and is limited to a calendar year maximum of 30 days per covered person. No lifetime ma,"'{imum. Mammography Benefit Aflac wiil pa-y 5150 per calendar year for each covered person when a charge is incurred for a marmnogram. This is a preventive benefit; hospitalization of a covered person is not required for this benefit to be pnyable. No lifetime maximum. Waiver of Premium Benefit Aflac will waive from month to month, for the named insured only, any premium(s) falling due during the named ins\lred's continued hospital confinement. This benefit will begin after the named insured has received Daily Hospital Confinement Benefits from the policy for 30 consecutive days. When Daily Hospital Confinement Benefits are no longer being paid, premium payments must be resumed. Once premium payments are resumed, any new confinements must again satisfy the 30-day continued confinement for premiums to be waived. If you die and your spouse becomes the new named insured, premiums will start again at the appropriate rate and will be due on the first premium due date after the change. The new named insured will then be eligible for this benefit if the need arises. Guaranteed-Renewable The policy is guaranteed-renewable for your lifetime, subject to Aflac's right to change premiums by class upon any renewal date. Family Coverage Family coverage includes the insured; spouse; and dependent, unmarried children to age 19 (or 23 if they are full-time students). This includes the relationship created by a domestic partnership. Newborn children are automatically insured from the moment of birth. One-parent family coverage includes the insured and dependent, unmarried children to age 19 (or 23 if they are full-time students). A dependent child must be under age 19 at the time of application to be eligible for coverage. Effective Date The effective date is the date shown in the Policy Schedule, not the date the application is signed. Payroll rates may be retained after one month's premium payment on payroll deduction. American Family Life Assurance Company of Columbus (Aflac) 5-26 Pre. Existing Conditions A pre-existing condition is an illness, disease, or disorder for which, within the 12-month period before the effective date of coverage, medical advice, consultation, or treatment was reconunended or received, or for which symptoms existed that would ordinarily cause a prudent person to seek diagnosis, care, or treatment. Care or treatment caused by a pre-existing comlition will not be covered unless it begins more than six months after the effective date of coverage. A sickness is an illness, disease, or disorder, independent of injury, diagnosed or treated after the effective date of coverage and while coverage is in force. Limitations and Exclusions Any illness, disease, or disorder diagnosed by a physician or medically treated during the 12 months prior to the effective date of the policy wi!( not be covered, unless the loss begins more than six months after the effective date of the policy. The policy does not cover losses caused by or resulting from intentionally self-inflicting bodily injury or attempting suicide; participating in or attempting to participate in any illegal activity that is classified as a felony (the term felony is as defined by the law of the jurisdiction in which the activity takes place); being exposed to war or any act of war, declared or undeclared, or actively serving in any of the armed forces or units auxiliary thereto, including the National Guard or Reserve; having treatment for a mental or nervous disorder or disease; alcoholism or drug dependency; any loss sustained or contracted due to a covered person's being intoxicated or under the influence of any controlled substance upless administered on the advice of a physician; having cosmetic surgery that is not medically necessary; having elective surgery that is not medically necessary within the first 12 months of the effective date uf the policy; pregnancy or childbirth within the first ten months of the effective date of the policy (complications of pregnancy will be covered to the same extent as a sickness); routine nursing or well-baby care for a newborn child; being hospitalized before the effective dnte of coverage; or donating an organ within the first 12 months of the effective date of the policy. If the period of hospital confinement follows a previously covered confinement, it will be deemed a continuation unless the Inter confinement is the result of an entirely unrelated sickness or injury, or the confinements are separated by 30 days or more during which the covered person is not confined in any institution or facility. Hospital does not include any institution or part thereof used as an emergency room; a rehabilit:1tion unit; a hospice unit, including any bed designated as a hospice or a swing bed; a convalescent home; a rest or nursing facility; a psychiatric unit; an extended-care facility; a skilled nursing facility; or a facility primarily affording custodial or educational care, care or treatment for persons suffering from mental disease or disorders, care for the age(~ or care for persons addicted to drugs or alcohol. BenefIts for confinement in a rehabilitation unit are payable under the Rehabilitation Unit Benefit. Complications of pregnancy do not include premature delivery without incidence, false labor, occasional spotting, prescribed rest during pregnancy, morning sickness, and similar conditions associated with the management of a difficult pregnancy not constituting a classifiably distinct complication of pregnancy. Cesarean deliveries are not considered complications of pregnancy. The policy to which this sales material pertains is written only in English; the policy prevails if interpretation of this material varies. This is a brief summary of coverage. Refer to the policy for complete details, limitations, and exclusions. 5-27 1~.. YaL.;l- local Afla.: i01su!'"ance a~,=-nt-/producer 1.800.99.AFLAC (1.800.992.3522) En espanal: 1.800.5LAFLAC (1.800.742.3522) Visit our Web site at aflac.com. AmPI ican Family Life Assurance Company of Columbus (Aflac) Worldwide Headquarters 1932 Wynnton Road Columbus, Georgia 31999 aflac.com 5-28 ,'~- 'l.fi4. '\ 'H"', .. . '_j'f'?it; ;f.r""",\.. :';: ~ '~':;~, - .lj _ ",,:t'~:l, ' , ~..,~ t,,:.~.,t, _ ~ A~~'~ ~,:,"l'.. ",_.'. ~ , ' ,( .. -:"J?:~ ' " , ~', ",i',,~ ," " .,';f ?)iP',." ~:"i'iir;'!1~ ' ,-::' :,,~~; ~:, ,"i>.,~>~%:ifi%{~ t,~" "'~' i "",'\.,'=-~_..."" , : --:.s;:~:::~,.~~ ~.~r . '. \ "l"h;J:i.,_ '~" , :.: ";'i,' ':ff' "',' ~.. ",W1, ''."'~L f I' . ..T ~'.k""'~ .'~ ,-;~- ;j"",,,,.,~.-,,,.\ , @J - .'\t;,"'d ,=1:''::;;O~'cit!f'~ilil''''.'{ '. ,~".. ;d -,~,~~i ~ ... : > .. ,__~_.~,-S:~,}; Personal Long-Term Care Plan Comprehensive Long-Term Care Insurance --,.....'C"......'.--.-.-""-" "-C--''''-'.-:-:; -,--;-;",;_'_- --..--....,- ... ,._-:- -...:- ---:"-~",.....,...-"......_,, '---..----:-"';'.".-~._~'~~.,.- .....-_.~...-. TM ~~~:~F~0;i~J1~:Y:;~:@ii~?~:J~~~~~:~!~~~~i~~f~rk7i.;]i~c,~~;;:~~~'~~~{}{~.T~j ~r\~.:;~J;r~J~:;~~~~,~; '., rt'/" ."0" e" . ...-.... ..I./l......"," Ti""""--"-(g''''''' '/.. ..... .~...".~... ....Pl ...,..., . "j"""" ~ - '" - . ,,,.... - ~ ,~, -... . - " . ~ . 'll; - .,- ~ - '._ ..~.. ...~t>-~ . ac,s,; .ersona .'~ lonC1,t: erm~ '"are. nsurance, . an":':~:i~i,~,<,:;.,'" :;;, 't,'? ,\'}, I "-\.1_ ~~-' ..(! . ( 'i1r.y ~t ,::, . b\l" .'~ ,,;t.'; ',' l,Z' -. ~','1tI;,' '1,1, r. " '.- "'I' 1; T!'n~ , , t, 'rJl!.." , t&~~tt~~~~~~~~~l ~[~i~~t~~~1~~~~!1~l~~~~;;fJ3~~~~tI~:&;~:c.fj:(~~k{i('~if~~~;~~:~~fj~~:!~;~~~1J When first diagnosed as chronically ill, you often have many needs: specialized equipment for the homef occasional visits from a home health aide, or special training for a family member to provide assistance. You may even want the services of a care coordinator. But, the costs for these items can add up-fast! That's why Ailac's long.tenn care policy automatically provides you a First-Occurrence Benefit! First-Occurrence Benefit Ai/ac will pay the First-Occurrence Benefit you select for each covered person when first diagnosed as chronically ill. This benefit is intended to assist the covered person with the expenses associated with qualified long-term care services. This benefit is payable only once per lifetime for each covered person and will be paid in addition to any other benefit in the policy. Nursing Home Daily Benefit Aflac wiff pay the Nursing Home Daily Benefit you select for each day a covered person is confined and requires qualified long-term care services in a nursing home. This benefit is subject to the nursing home benefit period. Alzheimer's facilities that are licensed as such by the state and that meet the policy requirements will be covered. Aifac will pay the Nursing Home Daily Benefit amount you select to reserve a bed in a nursing home facility if a covered person temporarily leaves the nursing home facility while receiving qualified 10ng-tem1 care services. This benefit is limited to a 21-day calendar year maximum per person. Waiver of Premium Benefit Ailac will waive, from month to month, any premium falling due during the nmned insured's continued nursing home confinement, after you have received Nursing I-lame Daily Benefits for 60 consecutive days. When Nursing Home Daily Benefits are no longer being paid, premium payments must be resumed. Once premium payments are resumed any new confinements must again satisfy the 60-day continued confinement requirement for premiums to be waived. Residential Care Daily Benefit Ajlac will pay the charges incurred up to the Residential Care Daily Benefit you select for each day a covered person is confined and requires qualified long-term care services in a residential care facility. This benefit is subject to the residential care benefit period. This benefit includes facilities licensed as hospice facilities and respite care. Facilities not necessarily named as residential care facilities may be covered if they meet the policy requirements. The Nursing Home Daily Benefit, Residential Care Daily Benefit, and Home Care Benefit will not be paid on the same day. Only the highest eligible benefit will be paid. Home Care Benefit Aflac wif/ pay the charges incurred up to the Home Care Daily Benefit amount you select for each visit during which a covered person receives qualified long-tem1 care services for: . Home Health Care . Homemaker Services . Personal Care . Respite Care . Hospice Services . Adult Day Care . Adult Foster Care Multiple services received on the same day will be counted as one visit; this benefit is limited to one visit per day. Qualified long-tem1 care services are the necessary diagnostic, preventive, therapeutic, curative, treatment, mitigation and rehabilitative services, and maintenance or personal care services that are required by a chronically ill ,individual. These services must be provided according to a plan of care prescIibed by a licensed health care practitioner (a physician, registered professional nurse, licensed social worker, or other licensed individual) independent of the insurer. The tenn licensed health care practitioner does not include you, a member of your immediate family, or anyone who normally resides in your home or residence. American Family Life Assurance Company of Columbus (Aflac) 5-30 ~g::~;~!fr1:E::ilt'i~ Flexibility... Choice ... Value First, YOU choose the length of coverage that's right for you. Plan 1 o Plan 2 r:J Plan 3 r:J Plan 4 o Nursing Home Daily Benefit 2 Years 3 Years 5 Years Lifetime Residential Care Daily Benefit 1 Year 2 Years 2 Years 2 Years Home Care Benefit 250 Visits 400 Visits 500 Visits 500 Visits Each benefit period stands [done. A claim under one benefit will not reduce the limits of the other benefits! Then, YOU choose the amount of coverage that's right for you. I I gption 1 I gption 2 ! gption 3 I gption 4 I r- ----------- -C' ..-- .---."- -', --------- '.-.---:- ----- ___.I :~;::occurrence._1 S3,0001 ' S3,6~~, ' .S4,500. , f .s~,go.o_ 1 Nursing Home I I Ca~~pays:__,___lS~9g/Day .. ,j,S:J?9/i:)ay .~:J,s,9ID~y _,L~"9g/i:lay .J " I" I"~ I I i I I' I' ....) S80/DaY._'1~96!Day._S1~~ID~y. "__I S1~0([)~y____ ' I II S60/Day S7S/Day S100/Day , I Benefits Residential Care , p~t.~,-.~~:P.~?:~. Home Care pays up to: SSO/Day . ...~-:-.~., ~.~.",...,.~~~{~.T ~~,~.~~t,!.~t~\~?i~[~~~~~Th,~~t;1~l~.J;:.~H~~,1~0~t.~~1I.~~~~.'~ !:7; " :nle~':\J la:rl'-"V1' 'S'blsl{benefitS~dire'ctl 'jB:'''' oIT"'unles'5~as~i-ne'dt~F'~'" """'-,' i- .~~?t~'^ l'~/'PJ:.Y,,!,,;,~~~;...,. :;:~;:-i:~.,:~.,:;.;;..",;,.r:;,;,~, 'Yl-: ::;;,!.L""::":It!:;'"i'~::'t".;~."lti. ',,' ,:0S';;; ~~~:. :p,>,::\re"~'rdress:of.any- iother~in'surance yoti-have"'JThere is'no waitihrg' ".J.~,_...~~,.....1..,.. "~,,...."""~,i'-""'t<. ~ ,J.....;.~'._.,~ ~...."-_ ~..... ",~",'h_,~._ ,Jf",,~ '~.:;""''''''_.''''-~~V''''''~'. . ~~I~r f;'" """':errrrnnationo;""'erioat':Onc~"'(ju ;~'G-alifyt)'olf,'''':etta.'fa:fmnieCiiate! ' ""~:',,.:+ ,","','" ,-,",>"".,."";;,,.,.:P~..-,~.,,,,,,,,. \;,"" ""I'Y""'" 8.,., "'''''' ,.Yc"" ..,g"" .,;,P. ....~"1<' ;'_.;"',,~' ..,~,..".~~"Y t~;:'",- Y6'cr~b'w-rlYtnetp~-61 i~?;Mak'e'";'one~~;:rrem~iUhf'pl.'a'y"'m~nranci' k~re""'~6' .. ' ,"""""'~ .,..,....,., '..h..... r,"''''''--;, ,'. ,-",,,"",,,,,, ''''nr~'''''''' .' '.'".,""..........'.,....... ., .,cove"ra-. ~e';as;lona~as "'oti~nke;at~thesa.me: ~'a""'i61 ~}-afel ,,!{?~'.~ "M':<E:tj~Mjl~~ITrti!f~~~~~Jt:~;~~jfD'D~1I~~f~g~~i~~}}.;!~~~}.~m~l:~:::~;;:~:.~ This brochure is for illustration purposes only. Refer to the policy and riders for complete details, limitations, and exclusions. 5-31 How to Qualify for Benefits To qualify for benefits under the policy, you must be certified as chronically ill, which means that you are currently (within the preceding 12-month period) certified by a licensed liealth care practitioner (independent of the insurer) as: 1. Being unable to perform two or more activities of daily living (ADLs) without substantial assistance for at least 90 days due to a loss of functional capacity or 2. Suffering from an impaimlent of cognitive ability that requires substantial supervision for your protection from threats to health and safety. Activities of Daily Living (ADLs) The activities of daily living are bathing, continence, dressing, eating, toileting, and transferring. Please refer to the policy for complete definitions. Effective Date The effective date of the policy is the date shovm in the Policy Schedule. The effective date is not the date you signed the application for coverage. Pre-Existing Conditions Subject to the truthful completion of your application, the policy fully covers all health conditions that you may presently have, subject to the terms of the policy, as of the policy effective date shown in the Policy Schedule. Renewal Provision The policy is guaranteed-renewable for your lifetime. Aflac may change the premium rate, but only if the rate is changed for all policies of this class. Contingent Benefit Upon Lapse If your policy lapses, you may be eligible for a Contingent Benefit that provides for your coverage to continue on a limited basis. Please refer to your policy or outline of coverage for further details. The policy to which this sales material pertains is written only in English; the policy prevails if interpretation of this material vmies. Limitations and Exclusions The policy will not pay benefits for that portion of any expense that is for services which are reimbursable under Medicare (or would be so reimbursable but for the application of the Medicare deductible or coinsurance amounts). The policy does not cover any of the following: services rendered by a member of your immediate family; services for which a charge would not be made in the absence of this insurance; care rendered by a Veterans Administration or federal government facility, unless you or your estate is charged for such care; being exposed to war or any act of war, declared or undeclared, or service in any of the armed forces; intentionally self-inflicted bodily injury or attempted suicide (while sane or insane); the treatment of alcoholism or drug addiction. The policy will not pay benefits for care rendered outside the United States or its possessions. The benefits payable by the policy will not qualify for Medi-Cal Asset Protection under the Califomia Partnership for Long- Term Care. A nursing home facility is not a hospital; a residential care facility; a personal care home; a hospice facility; a home for the aged; a rest home; or a place primarily for domiciliary, residential, or retirement living, or a similar establishment. A physician does not include you, a member of your immediate family, or anyone who normally resides in your home or residence. A home cannot be a hospital, a nursing home facility, a residential care facility, or any other such type facility. 5-32 Buying Long-Term Care Insurance Today May Save You Money Tomorrow! Long-term care coverage helps provide critical financial support if a chronic condition incapacitates you or your spouse for an extended time. Aj/aefs plan offers a choice of benefit packages that include nursing homeJ residential care, and home health care assistance as weff as afirst-occurrcnce cash payment. The Cost and Need for Coverage Continue to Surge. . Nationally, the average annual cost for a private room (single occupant) in a nursing home is $70,912 (S194.28Jday). The average annual cost for a semiprivate room (double occupancy) is 562,532 (5171.32/day).' . Nationally, the average monthly cost for a private one- bedroom unit in an assisted-living facility is $2,691.20 (532,294.40/year). The average hourly rate for a certified home care provider is $36.22.1 . Doctors and hospitals are under tremendous pressure to get patients out as quickly as possible. Patients often go to a nursing home to continue the recovery period. A Disability Knows No Age Limit! An estimated ten million Americans need assistance from others to carry out everyday activities.2 More important, long- term care isn't just for the elderly and the retired; injuries can incapacitate the young as well as the aged-sometimes with longer-lasting implications. Who Uses Long-Term Care?l The Elderly Working-Age Adults and Children Why Buy Early? . The need exists at any age. . Capitalize on your current good health. . Take advantage of lower age-based issue rates. Buy at Your Current Age-and Save! The cost difference between buying a long-term care policy at age 50 compared to buying the same policy at age 65 is substantial. _._ ~l[f~~~~~1t~JI~rf~ ~.... .~ -"-,\~~.':r.~,"...,.._"", ~.,rOT!~;t€~t~~~i~,~~:a4~t~?,f1~1~~~~(I gLi'ara"teea:renewaole:iosuran'c'e'b'erief" ~rIl~ii~~~i~fi:,".:_H" A ff..I:ll"'5\ . tOiu TM , Genworth Financial 2006 Cost of Care Survey, March 1006 'Long-Term Care: Understanding Medicaid's Role for the Elderly and Disabled, Kaiser Commission on Medicaid and the Uninsured. :-<ovember 1005 5-33 . .='C ,,~;~:"~~;;~~~~3.:,,:~_ '",,~~~:;,",'~.';"j~;:~~~"::'~'~~-'" ,~~~; ':7a:':".- ;'~';~-,:~ 'f"""" _ ..,.~,.;,~_... .,..~w,. "',; YOll" local ,tI.,fi.?c insurance J.gent/produc-21" Aflac is ... :. A Fortune 500 company-with neiidY:S60 billion in assets; "~~s~ri_0g~:~~~ than:~O-ri)i1./.i.?;n ~.~.h..~!~~cifl~~{~~,'.::..:'!' .>'; _ .. -,.',;,: . RatedAA in in5urerfin~nCia[ s1:l:ength'by Standard ~ Poor's ':,... (June 2006); Aa2 (Excell~tit) in in~u~erJiti-a~.ci~1 stre~g-ih by' .. . Mood/sliwestors Servic:~ (Jan~~iy ~001),~::- (S~p-,"i~rl by, A.,tyt.:~est (Jyne 2006); and J:.,0. in. insu~er fr.n,~.nc~al ~t:e~gth- ,<. "- nyFitch; Inc. (June 2006).~{j . .'" " ""l: . ",.: " ' ' ""~~';::I' >- ':,,' , ~,;,,":.;' :;' .,-,,:., . ~.f:!a~.edby F~'rtune h1agci.?,if)e t~.i.t~.!i5fC?f?"IT,1e.rica's\'Most' "', ::A~D:1iied Compani~s..fqr Jhe: 5ev~!i'th'~oQ~esu~ive ye'4f:in;~ "; ',,', /' .. ~ '. ,~ ,. . ,. , 0 . , :-',:O.-f ";!'Aarch'2007. .,. .:~.. .'. ...";, ., .,:' -. "~~. '''::.,.-)';2:' ,'" ,', .: :;')'.i: ;'.'\::,j,.:-",;:... ,;',':',' ~>:,' :'"",~:<i,< ~,:,,~:,~::" ,:,,'fF;:,,'~Y:/' , .;, :A premier pr6vid~r of insurance palfoeS withpr~m,jums payroll,' .:~i'~;::~:,:" .:~~~:5tl'~J~~~;~~~~~~l~~~l . . I,,!duded by ~,rbes ~~gazi~~ in,i~'~.~n.~uaJ),~~ ~f A~~~i.~(~- ;::>- :{;~~~i'~~~:: 400Best Big COmpanieS farth~ 5eve~~hyeii!n J~r;~~7~~9?::.~!~!;': .0 'N~!l1~d by ~?~u.~~'~~g~iri~ .~c:'its F~~~of1~.~~!.60'~.~4::~/':..,_" ,:~~ '\' ,i;': . COf.l:lpa0i~.'t9 WqXkF~T.in ~me'~.~a:f<?;',th.e'n.iht~ ~g~s~cgti\(~...) :~';::y.; ye.~~:in')anu~r:r.?OO( '.; :..,c'." ::L:" ,:~'~-:,:::.i' :-; ~:;: ",'i~.~.:~1~',;';~:;:{;: ,,"" ",', . . ''''RatLngs refer ~1I!y th.the o~era!f fin.Cf!!.ci~t Sta,tl:$ oiAfl,a'c;G:ld qr,~ ~o~ .. _ _ r.ecPI1~mendQt~~,ns uf spe~ific p'ol~.CJ p'~vjsfons~ ratcs, or P'fQl.cic,;:<'~: .. ','," ;.,;,. ". . .~, .'" ;'." 1...> 1.800.99.AFLAC (1.800.992.3522) En espanol: 1.800.5I.AFLAC (1.800.742.3522) Visit our Web site at aflac.com. ., > Al11eric:an Family Life ,'\ssumnce Company of Columbus (Atlac) Worldwide Headqualters 1932 WYI1nton Road Columbus, Gemgia 31999 aflac.com 5-34 Aflac Dental Insurance - Basic Coverage Policy Series A81100 Dental Wellness Benefit Aflac will pay $25 per visit to you or any covered person for anyone treatment listed below. This benefit is payable once per visit, regardless of the number of treatments received. For benefits to be payable, dental wellness visits must be separated by 150 days or more. This benefit is payable twice per policy year, per covered person. The treatment must be performed by a dentist or dental hygienist. There is no waiting period for this benefit. 00110 00120 00150 00160 00170 00180 00425 0/110 Oll20 0120] Ol203 01204 01205 01310 Ol320 01330 04910 09430 09910 Initial Oral Evaluation Peliodic Oral Evaluation Comprehensive Oral Evaluation (new or established patient) Detailed and Extensive Oral Evaluation (problem-focused by report) Re-cvaluation - Limited, Problem (established patiei.1t; not postoperative visit) Comprehensive Periodontal Evaluation (new or established patient) Caries Susceptibility Tests Prophylaxis (adult) Prophylaxis (child) Topical Application of Fluoride (child, including prophylaxis) Topical Application of Fluoride (child, prophylaxis not included) Topical Application of Fluoride (adult prophylaxis not included) Topical Application of Fluoride (adult, including prophylaxis) Nutritional Counseling for Control of Dental Disease Tobacco Counseling for the Control and Prevention of Oral Disease Oral Hygiene Instructions Periodontal Maintenance Office Visit for Observation (during regularly scheduled hours, no other services performed) Application of Desensitizing Medicament X.Ray Benefit AJfac wiff pay $10 per visit to you or any covered person for anyone of the X-ray procedures listed below. This benefit is payable once per visit, regardless of the number of X-rays received, This benefit is payable only once per policy year, per covered person, The treatment must be performed by a dentist or dental hygienist. There is no waiting period for this benefit. D0210 Intraoral (complete series, including bitewings) D0220 Intraoral (periapical, first film) D0230 Intraoral (periapical, each additional film) 00240 [ntraoral (occlusal film) 00250 Extraoral (first film) 00260 Extraaral (each additional film) D0270 Bitewing (single film) D0272 Bitewings (two films) D0274 Bitcwings (four films) D0277 Vertical Bitewings (seven to eight films) D0330 Panoramic Film 00340 Cephalometric Film Refer to the policy for complete details, limitations, and exclusions. American Family Life A~~urance Company of Columbus (Aflac) , Worldwide Headquai'ters 1932 Wynnton Road Columbus. Georgia 3,999 a-Aac.com Form A81175BCA IC(6/05) 5-35 Scheduled Benefits The benefits listed below are subject to waiting periods as shown and a policy year maximum of $1,200 per covered person. Benefits will be paid only for specific ADA codes as listed in the policy when a charge is incurred for the covered dental treatment while coverage is in force. Other Preventive Benefits Benefits in this category are subject to a 6-mooth waiting peliod. 01351 Sealant (per tooth) ..... 01510 Space Maintainer (fixed, unilateral).... 01515 Space Maintainer (fixed, hilateral). D1520 Space Maintainer (removable, unilateral) Dl525 Space Maintainer (removable, bilateral) D1550 Recementation of Space Maintainer $ 15 80 100 80 100 35 Other Diagnostic Benefits Benefits in this category are subject to a 3-mooth waiting period. Benefits 00130 and 00140 are payable only for visits where no other covered services are performed. DOl30 Emergency Oral Evaluation... ........... ... 00140 Limited Oral Evaluation. . ........ D0290 Posterior-Anterior or Lateral Skull and Facial Bone Survey Film 00310 Sialography.. .......... D0415 Bacteriologic Studies for Determination of Pathologic Agents. 00460 Pulp Vitality Tests. . . . . . . . . . . . . . . . . . . . . D0470 Diagnostic Casts. D0471 Diagnostic Photographs. 00501 Histopathologic Exam $ 20 20 60 160 10 , 15 20 10 40 Fillings and Other Basic Restorative Benefits Benefits in this category are subject to a 3-month waiting period. 02140 Amalgam (one surface) Primary..... . Permanent. . 02150 Amalgam (two surfaces) Primary...... . Permanent. . . 02160 Amalgam (three surfaces) Primary ..... . . . . . . . Permanent. . D2161 Amalgam (four or more surfaces) Primary. . . . Permanent. . . . . . . . . . . Resin-Based Composite (one surface, anterior) Resin-Based Composite (two surfaces, anterior) Resin-Based Composite (three surfaces, anterior). . . . . . . . . . Resin-Based Composite (four or more surfaces or involving incisal angle, anterior) Resin-Based Composite Crown (anterior). Resin-Based Composite (one sUlface, posterior) Primary. Permanent. . . . . . . . . . D2392 Resin-Based Composite (two surfaces, posterior) Prin1ary ... . . . . . . . . . . . . . . . . . . . . Permanent. . . . . . . . . . . . . . . . . . . . . . D2393 Resin-Based Composite (three surfaces, posterior) Plirnary. ........... Permanent. . . . $ 30 45 30 50 40 55 02330 02331 02332 D2335 02390 02391 45 60 40 50 55 60 60 30 40 45 50 50 55 5-36 02394 02410 02420 Resin-Based Composite (four or more surfaces, posterior) Primary. ........ Permanent. . . . . . . Gold Foil (one surface) Gold Foil (two surfaces). 50 55 200 225 Crowns and Other Major Restorative Benefits Benefits in this category are subject to a 12-month waiting period. 02510 02520 02530 02542 02543 02544 02610 02620 02630 02642 02643 02644 02650 02651 02652 02662 02663 02664 02710 02720 02721 02722 02740 02750 02751 02752 02780 02781 02782 02783 02790 02791 02792 02910 02920 02930 0293] 02932 02933 02940 02950 02951 02952 02954 02955 02970 02980 Inlay (metallic, one surface) ........... Inlay (metallic, two surfaces). . Inlay (metallic, three or more surfaces). Oulay (metallic, two surfaces). Onlay (metallic, three surfaces). Golay (metallic, four or more surfaces) Inlay (porcelain/ceramic, one surface). Inlay (porcelain/ceramic, two surfaces). Inlay (porcelain/ceramic, three or more surfaces). Onlay (porcelain/ceramic, two surfaces) . . . . . . . . . Oulay (porcelain/ceramic, three surfaces) . Onlay (porcelain/ceramic, four or more surfaces). Inlay (resin-based composite, one surface) . . . . . Inlay (resin-based composite, two surfaces) .. . . . . . . . . . Inlay (resin-based composite, three or more surfaces) Onby (resin-based composite, two surfaces) . Onlay (resin-based composite, three surfaces) Onlay (resin-based composite, four or more surfaces) Crown (resin, indirect). Crown (resin with high noble metal) . . . . . . . . . . . Crown (resin with predominantly base metal). Crown (resin with noble metal) . . . . . . . . . . . . . . Crown (porcelain/ceramic substrate) . Crown (porcelain fused to high noble metal) Crown (porcelain fused to predominantly base metal) . Crown (porcelain fused to noble metal). Crown (3/4-east high noble metal) . . Crown (3/4-cast predominantly base metal) . . Crown (3/4-east noble metal) Crown (3/4-porcetain/eeramic) . . . Crown (full-cast high noble metal) . . . . . . . . . Crown (full-cast predominantly base metal) Crown (full-cast noble metal) Recement Inby. . . . . . . . . . . Recement Crown Prefabricated Stainless Steel Crown (primary tooth) ................... Prefabricated Stainless Steel Crown (permanent tooth) . . Prefabricated Resin Crown . . . . . . . . Prefabricated Stainless Steel Crown \'lith Resin \Vindow. Sedative Filling Core Buildup (including any pins). Pin Retention (per tooth, in addition to restoration) . . . Cast Post and Core (in addition to crown) Prefabricated Post and Core (in addition to crown). Post Removal (not in conjunction with endodontic therapy). Temporary Crown (fractured tooth). . . . . . . . . . . Crown Repairs, by Report . . . . . . . . . $190 225 350 225 250 275 200 225 350 250 275 325 ISO 200 250 225 250 250 150 250 250 250 250 250 250 250 250 250 250 250 250 250 250 30 30 65 75 100 110 25 65 15 95 lOa 75 75 125 5-37 Root Canals and Other Endodontic Benefits Benefits in this category are subject to a 12-month waiting period. 03110 Pulp Cap (direct, excluding final restoration). D3120 Pulp Cap (indirect, excluding final restoration) . . D3220 Therapeutic Pulpotomy (excluding final restoration) Removal of Pulp Coronal to the Dentinocemental Junction and Application of Medicament .. Pulpal Therapy (resorbable filling; anterior, primary tooth, excluding final restoration). Pulpal Therapy (resorbable filling; posterior, primary tooth, excluding final restoration) Anterior (excluding final restoration, root canal) . . . . . Bicuspid (excluding final restoration, root canal). Molar (excluding final restoration, root canal) . . . . . . . Root Canal (four or more) Retreatment of Previous Root Canal Therapy (anterior). . . . . . . Retreatment of Previous Root Canal Therapy (bicuspid) . . . . . Retreatment of Previous Root Canal Therapy (molar) Apexification/Recalcification (initial visit; apical closure/calcific repair of perforations, root resorption, etc.). . . . . . . . . . . . . . . . . . . . . . . . . . . . 03352 ApexificationlReca1cificntion (interim medication replacement; apical closurelcalcific repair of perforations, root resorption, etc.). 03353 Apexification/Recalcification (final visit; includes completed root canal thernpy; apical closure/calcific repair of perforations, root resorption, etc.).. Apicoectomy/Periradicular Surgel)' (anterior).. ......... Apicoectomy/Periradicuiar Surgery (bicuspid; first root) . . Apicoectomy/Periradicular Surgery (molar; first root) . . . . Apicoectomy/Periradicular Surgery (each additional root). Retrograde Filling (per root) . . Root Amputation (per root) . . . . . . . . . . . . . . . . . . . Hemisection (including any root removal; not including root canal therapy) Canal Preparation and Fitting of Preformed Dowel or Post. . . . . 03230 03240 03310 03320 03330 D3340 03346 03347 03348 03351 D3410 03421 03425 03426 03430 03450 03920 03950 Gum Treatments/Periodontic Benefits Benefits in this category are subject to a 6-month waiting period. D4210 Gingivectomy or Gingivoplasty (four or more contiguous teeth or bounded teeth spaces per quadrant) .. . . . . . . . . . . . . D4211 Gingivectomy or Gingivoplasty (one to three teeth per quadrant) .. D4240 Gingival Flap Procedure, Including Root Planing (four or more contiguous teeth or bounded teeth spaces per quadrant) . . . . . . . . . . . . Gingival Flap Procedure, Including Root Planing (one to three teeth per quadrant) . Clinical Crown Lengthening (hard tissue). Mucogingival Surgery (per quadrant) . . . . . . . . . . . . . . . . . . . Osseous Surgery (including flap entry and closure; four or more contiguous teeth or bounded teeth spaces per quadrant). . . . . . . . . . . . . . . . . . . . . . . . . . . Osseous Surgery (including flap entry and closure; one to three teeth per quadrant) Bone Replacement Graft (first site in quadrant) . Bone Replacement Graft (each additional site in quadrant) . . . . . . . . . . . . . . Pedicle Soft Tissue Graft Procedure . . . . . . . . Free Soft Tissue Graft Procedure (including donor site surgery) Subepithelial Connective Tissue Graft Procedures Soft Tissue Allograft . . Provisional Splinting (intracoronal). . . . . . . . . . . . . . . Provisional Splinting (extracoronal) . . . . . . . . . . . . . . . . . . . Periodontal Scaling and Root Planing (four or more contiguous teeth or bounded teeth spaces per quadrant). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D4342 Periodontal Scaling and Root Planing (one to three teeth per quadrant) .. D4355 Full Mouth Debridement to Enable Comprehensive Evaluation and Diagnosis. . 04241 04249 D4250 D4260 04261 04263 D4264 04270 04271 04273 04275 04320 04321 04341 5-38 $ 15 15 40 45 45 150 200 250 250 130 180 225 130 30 65 140 275 300 110 80 160 120 55 $130 45 225 225 250 250 250 250 275 225 275 275 300 275 150 110 60 60 55 Dentures and Other Prosthetic Benefits Benefits in this category are subject to a 24-month waiting peliod. 05110 Complete Denture (maxillary). . . . . . . . . 05120 Complete Denture (mandibular) ........ 05130 Immediate Oenture (maxillary). 05140 Immediate Oenture (mandibular). D5211 .Maxillary Partial Denture (resin base; including any conventional clasps, rests, and teeth) D5212 Mandibular Partial Denture (resin base; including any conventional clasps, rests, and teeth) D5213 Maxillary Partial Denture (cast metal framework with resin denture bases; including any conventional clasps, rests, and teeth). . . . . . . . . 05214 Mandibular Partial Denture (cast metal framework with resin denture bases; including any conventional clasps,. rests, and teeth) . . . . . . . ,. ..... Removable Unilateral Partial Denture (one-piece cast metal; including clasps and teeth) Replace All Teeth and Acrylic on Cast Metal Framework (maxillary) Replace All Teeth and Acrylic on Cast Metal Framework (mandibular) Interim Complete Denture (maxillary) . . . . . . . . . . . . . . . Interim Complete Denture (mandibular) . . . . . . . . . . . . . . . Interim Partial Denture (maxillary) . . . . . . . . . Interim Partial Denture (mandibular) Surgical Placement oflmplant Body: Endosteal Implant. Abutment Placement or Substitution: Endosteal Implant. Surgical Placement: Eposteal Implant. Surgic31 Placement: Transosteal Implant. . . . Implant Maintenance Procedures, Including Removal of Prosthesis, Cleansing of Prosthesis and Abutments, and Reinsertion of Prosthesis. .. ........ Pontic (cast high noble metal) . Pontic (cast predominantly base metal). Pontic (cast noble metal) . . . . . . . . . . . . . . . . . . . . . . . Pontic (porcelain fused to high noblc mctal) Pontic (porcelain fused to predominantly base metal). Pomic (porcelain fused to noble metal) . . . . . . . . . . . . Pontic (porcelain/ceramic). Pontic (resin with high noble metal) . . . . . . . . Pontic (resin with predominantly base metal) . Pontic (resin with noble metal) . . . . .. ...... Provisional Pontic. . . . . . . . . . . . . . . . Retainer (cast metal for resin-bonded fixed prosthesis) . . Retainer (porcelain/ceramic for resin-bonded fixed prosthesis) . Inlay (porcelain/ceramic, two surfaces) ... Inlay (porcelain/ceramic, three or more surfaces) Inlay (cast high noble metal, two surfaces) Inlay (cast high noble metal, three or more surfaces) Inlay (cast predominantly base metaL two surfaces) ...... Inlay (cast predominantly base metal, three or more surfaces) Inlay (cast noble metal, two surfaces) . . . . . . . . . . Inlay (cast noble metal, three or more surfaces) . . . . . . . . . . OniJy (porcelain/ceramic, two surfaces) .. Onlay (porcelain/ceramic, three or more surfaces) . Onlay (cast high noble metal, two surfaces) Onlay (cast high noble metal, three or more surfaces) Oolay (cast predominantly base metal, two surfaces) Onlay (cast predominantly base metal, three or more surfaces) Onlay (cast noble metal, two surfaces) . . . . . . . . . . . . Onlay (cast noble metal, three or more surfaces) . . . . . .. ............ Crown (resin with high noble metal). . Crown (resin with predomin~mtly base metal). Crown (resin with noble metal) . 05281 05670 05671 05810 05811 05820 05821 06010 06020 06040 06050 06080 06210 06211 06212 06240 06241 06242 06245 06250 06251 06252 06253 06545 06548 06600 06601 06602 06603 06604 06605 06606 06607 06608 06609 06610 06611 06612 06613 06614 06615 06720 06721 06722 5-39 $350 350 350 350 250 250 375 375 300 40 40 225 225 170 180 450 450 450 450 150 250 250 250 250 250 250 250 250 250 250 250 140 140 225 350 300 325 300 325 300 325 250 275 325 350 325 350 325 350 250 250 250 06740 06750 06751 06752 06780 06781 06782 06783 06790 06791 06792 06793 06970 06971 06972 06973 06975 Crown (porcelain/ceramic). Crown (porcelain fused to high noble metal) Crown (porcelain fused to predominantly base metal) Crown (porcelain fused to noble metal). ... Crown (3/4-cast high noble metal). . . . . . . . . . . Crown (3/4-cast predominantly base metal) . . Crown (3/4-cast noble metal). . . . . Crown (3/4-porcelain/ceramic) . . . . . . . . . . . . Crown (full-cast high noble metal) . . . . Crown (full-cast predominantly base metal) . . . . . . . . Crown (full-cast noble metal) . . . . . . . . . . . . . . . . . . . . . Provisional Retainer Crown .. . . . . . . . . . . . . . Cast Post and Core (in addition to fixed partial denture retainer). Cast Post (as part of fixed partial denture retainer). . . . . . . . . . . Prefabricated Post and Core (in addition to fixed partial denture retainer) Core Buildup for RetaiI?er (including any pins) Coping (metal) . . . . . . . . . . . . . . . . . . . . . . . . . Repairs and Adjustments to Prosthetic Benefits Benefits in this category are subject to a 6-month waiting period. 05410 Adjust Complete Denture (maxillary)....................... 05411 Adjust Complete Denture (mandibular) . . . . . . . . . . . . . . . . . . . . . 05421 Adjust Partial Denture (maxillary) . . . . . . . . . . . . . . 05422 Adjust Partial Denture (mandibular) . . . . . . . . . . . . . . . . 05510 Repair Broken Complete Denture Base... ........ 05520 Replace Missing or Broken Teeth (complete denture; each tooth) . D5610 Repair Resin Denture Base . 05620 Repair Cast Framework. . .. .... 05630 Repair or Replace Broken Clasp. . . . . . . . . . . . . . . . . . . . . 05640 Replace Broken Teeth (per tooth) . . . . . . . . . . . . . . . 05650 Add Tooth to Existing Partial Denture. . 05660 Add Clasp to Existing Partial Denture ... 05710 Rebase Complete Maxillary Denture. . . . . . . . . . . . . . . . . . . . . . 05711 Rebase Complete Mandibular Denture. . . . . . . . . . . . . . . . . . 05720 Rebase Maxillary Partial Denture. . . . . . . . . . . . . . . . . . . 05721 Rebase Mandibular Partial Denture. . . . . . . . . . . . . . . . . . . . . . D5730 Reline Complete Ma.xillary Denture (chairs ide) . . . . . . . . . . 05731 Reline Complete Mandibular Denture (chairside). . . 05740 Reline Maxillary Partial Denture (chairside). 05741 Reline Mandibular Partial Denture (chairside) . . . . . . . . . . . . . . 05750 Reline Complete Maxillary Denture (laboratory) . 05751 Reline Complete Mandibular Denture (laboratory). 05760 Reline Maxillary Partial Denture (laboratory). . . . 05761 Reline Mandibular Partial Denture (laboratory) . . . . D5850 Tissue Conditioning (maxillary) .. ........ 05851 Tissue Conditioning (mandibular). . . .. .. 06090 Repair of Implanted Supported Prosthetic, by Report. 06095 Repair of Implanted Abutment, by Report. .. .............. 06100 Implant Removal, by Report. . . . . . . . . . D6930 Re(.;ement Fixed Partial Denture . . . . . . . . . . Extractions and Other Oral Surgery Benefits Benefits in this category are subject to a 6-month waiting period. 07111 Coronal Remnants (deciduous tooth) ... ....... 07140 Extraction, Erupted Tooth or Exposed Root (elevation and/or forceps removal) . D7210 Surgical Removal of Erupted Tooth Requiring Elevation of Mucoperiosteal Flap and Removal of Bone and/or Section of Tooth. . . . . . . . . . . . . . . 5-40 250 250 250 250 250 250 250 250 250 250 250 250 130 120 100 85 225 $ 20 20 20 20 45 40 45 60 50 40 45 60 130 170 170 170 80 80 90 90 110 110 130 130 40 40 110 110 35 35 $ 35 40 70 D7220 D7230 D7240 D7241 D7250 D7260 D7270 D7230 D7231 D7232 D7235 D7286 D7310 D7320 D7340 D7350 D7410 D7411 D7412 D7413 D7414 D7415 D7440 D7441 D7450 D7451 D7460 D7461 D7471 D7472 D7473 D7435 D7510 D7520 07530 D7540 D7550 D7560 D7610 D7620 D7630 D7640 D7650 D7660 D7670 D7671 D7710 D7720 D7730 D7740 D7750 D7760 D 7770 Removal of Impacted Tooth (soft tissue) Removal of Impacted Tooth (partially bony). Removal of Impacted Tooth (completely bony). Removal of Impacted Tooth (completely bony, with unusual surgical complications). Surgical Removal of Residua[ Tooth Roots (cutting procedure).. ........ Oroantral Fistula Closure. . . . . . . . Tooth Reimplantation and/or Stabilization of Accidentally Evulsed or Displaced Tooth and/or Alveolus. . . . . Surgical Access of an Unerupted Tooth. Surgical Exposure of Impacted or Unerupted Tooth to Aid Eruption. Mobilization of Erupted or Malpositioned Tooth to Aid Eruption. Biopsy of Oral Tissue - Hard (bone, tooth). Biopsy of Oral Tissue - Soft (all others). Alveoloplasty in Conjunction \Vith Extractions (per quadrant) Alveoloplasty Not in Conjunction \Vith Extractions (per quadrant). Vestibuloplasty - Ridge Extension (secondary epithelialization) Vestibuloplasty - Ridge Extension (including soft tissue grafts, muscle.: reattachment, revision of soft tissue attachment, and management of hypertrophied and hyperplastic tis~e)....... ....................... Excision of Benign Lesion (up to 1.25 em). . . Excision of Benign Lesion (greater than 1.25 em) . . . Excision of Benign Lesion (complicated). Excision of Malignant Lesion (up to 1.25 cm) Excision of Malignant Lesion (greater than 1.25 em). Excision of Malignant Lesion (complicated). .. .......... Excision of Malignant Tumor (lesion diameter up to 1.25 cm). . . . . . . . . . . Excision of Malignant Tumor (lesion diameter greater than 1.25 em) Removal of Benign Odontogenic Cyst or Tumor (lesion diameter up to 1.25 em). Removal of Benign Odontogenic Cyst or Tumor (lesion diameter greater than 1.25 em) Removal of Benign Nonodontogenic Cyst or Tumor (lesion diameter up to 1.25 cm). Removal of Benign Nonodontogenic Cyst or Tumor (lesion diameter greater than 1.25 em) . . . . . . .. ........ . . . . . . . . . Removal of Lateral Exostosis (maxilla or mandible) . . . . . . . . . Removal of Torus Palatinus Removal of Torus Mandibularis ......... Surgical Reduction of Osseous Tuberosity. . . . . . Incision and Drainage of Abscess (intraoral soft tissue) Incision and Drainage of Abscess (extraoral soft tissue). Removal of Foreign Body From Mucosa, Skin, or Subcutaneous Alveolar Tissue Removal of Reaction-Producing Foreign Bodies (musculoskeletal system). Partial Ostectomy/Sequestrectomy for Removal of Non vital Bone. . . Maxillary Sinusotomy for Removal of Tooth Fragment or Foreign Body Maxilla (open reduction; teeth immobilized, if present) .. Maxilla (closed reduction; teeth immobilized, ifpresent)... Mandible (open reduction; teeth immobilized, if present). Mandible (closed reduction; teeth immobilized, if present) Malar and/or Zygomatic Arch (open reduction) . Malar and/or Zygomatic Arch (closed reduction). Alveolus (closed reduction, may include stabilization of teeth) .. Alveolus (open reduction, may include stabilization of teeth) . . . Ivlaxilla (open reduction) . Maxilla (closed reduction). Mandible (open reduction). . Mandible ( closed reduction) Malar and/or Zygomatic Arch (open reduction) . Malar and/or Zygomatic Arch (closed reduction) . Alveolus (open reduction stabilization of teeth) . 5-41 35 120 130 150 70 180 130 200 65 65 375 150 65 80 750 700 525 525 525 650 650 650 650 650 525 525 525 525 375 375 375 425 100 450 170 130 120 700 700 700 65 30 700 550 725 350 700 700 30 80 300 300 350 D7771 07960 07970 D7971 Alveolus (closed reduction stabilization of teeth) ... ........ Frenulectomy (frenectomy or frenotomy; separate procedure) . . Excision of Hyperplastic Tissue (per arch) . . . . . . . . . Excision of Pericoronal Gingiva 725 80 80 70 Pain Relief and Adjunctive Services Benefits Benefits in this category are subject to a 3-month waiting period. Benefits D9220 and D9230 are not payable for the same surgery. D9110 Palliative (emergency) Treatment of Dental Pain (minor procedure) ......... D9220 Deep Sedation/General Anesthesia . . . . . . . . . . D9230 Analgesia, Anxiolysis, Inhalation of Nitrous Oxide. . . . . . . . . . D9241 Intravenous Conscious Sedation/Analgesia (first 30 minutes) . . . . . . . . .. ....... D9310 Consultation (diagnostic service provided by dentist or physician other than practitioner providing treatment). . . . . . . . . . . . . . ... . . House/Extended-Care Facility Call. . Hospital Call Office Visit (after regularly scheduled hours) . Case Presentation, Detailed and Extensive Treatment Planning. . D9410 D9420 D9440 D9450 Guaranteed-Renewable for Your Lifetime This policy is guaranteed-renewable for your lifetime. subject to Aflac's right to change premium rates for all policies of this class. Effective Date The effective date of the policy will be the date shown in the Policy Schedule, not the date the application is signed. This policy is available through age 65 on payroll deduction and age 64 on direct. Family Coverage Family coverage includes the insured; the insured's spouse; and dependent, unmarried children to age 19 (age 23 if full- time students). One-parent family coverage includes the insured and dependent, unmarried children to age 19 (age 23 iffull-tirne students). Newborn children are automatically covered from the moment of birth. A dependent child must be under the age of 19 at the time of application to be eligible for coverage. The policy to which this sales material pertains is written only in English; the policy prevails if interpretation of this material varies. $ 30 75 75 120 25 25 25 25 25 Exceptions, Reductions, and Limitations of This Policy This policy does not cover losses caused by or resulting from any procedure not shown on the Schedule of Dental Procedures; services that are not recommended by a dentist or that are not required for the preservation or restoration of oral health; repairs to dental work within six months ofthe initial work; replacement prosthetics within five years of last placement; treatment involving crowns for a given tooth within five years of last placement, regardless of the type of crown; replacement for inlays or onlays for a given tooth within five years of last placement; treatment received while outside the territorial limits of the United States or, if outside the United States, the territOliallimits of the place where your policy was issued. Benefits for sealants are limited to secondary molars for dependent children under age 16 and will not be payable more often than every five years. No benefits will be paid for replacement of teeth missing before the effective date of coverage. Benefits are not payable for procedures performed by a member of your immediate family. Waiting Period This is the period after the effective date of coverage for which benefits are not payable for each covered person. If a dependent is added by endorsement, the waiting period will begin from the effective date of the addition. In the event of reinstatement, all covered persons will be subject to new waiting periods begirming with the effective date of reinstatement. American Family Life ,'\ssuranc.: Company of Columbus (Aflac) Worldwide Heaciquartel s 1932 Wynnton Road Columbus, Georgia 31999 aflac.com 5-42 RESOLUTION NO. 2009- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND AMERICAN FAMILY LIFE ASSURANCE COMPANY OF COLUMBUS ("AFLAC") TO OFFER VOLUNTARY INSURANCE COVERAGE TO ALL BENEFITED EMPLOYEES, AUTHORIZING PRE-TAX PAYROLL DEDUCTIONS FOR EMPLOYEES WHO ELECT TO PURCHASE AFLAC SUPPLEMENTAL INSURANCE AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT WHEREAS, to accommodate the various benefit needs of City employees without added cost to the City, staff recommends offering AFLAC as a voluntary insurance; and WHEREAS, employee premium will be made through employee payroll deductions; and WHEREAS, AFLAC will administer enrollment, billing reconciliation, claims processing and claims payment for the City; and WHEREAS, benefits arc paid directly to the employee; and WHEREAS, founded in 1955, American Family Life Assurance Company (AFLAC) currently has total assets of over $76 billion; and WHEREAS, in 1958, AFLAC introduced an income protection insurance plan for people diagnosed with cancer; and WHEREAS, today, AFLAC policies include cancer, accident, short-term disability, hospital confinement indemnity, life specified health event, dental, long-term care and vision; and WHEREAS, AFLAC has extensive experience working with the public sector; and WHEREAS, the Deputy Sheriffs Association, City of San Diego, City of Escondido and City of Los Angeles are some of their public sector clients; and WHEREAS, currently, Chula Vista Employee Association ("CVEA") and Peace Ofiicers Association (POA) members have access to AFLAC via their unions; and WHEREAS, staff recommends that the City allow AFLAC to offer supplemental insurance to all benefited employees, and that the City allows the premium be deducted trom employee payroll on a pre-tax basis; and 5-43 Resolution No. 2009- Page 2 WHEREAS, initially, the following policies will be available to eligible City employees: (1) Personal Accident Indemnity, (2) Personal Cancer Indemnity Plan, (3) Specified Health Event Protection, (4) Hospital Confinement Indemnity, (5) Personal Long-term Care, and (6) Dental Basic; and WHEREAS, premium rates will vary depending on the type of plan and level of coverage an employee selects; and WHEREAS, the City will periodically evaluate the above policies and determine if additional voluntary policies should be made available; and WHEREAS, the AFLAC voluntary insurance options will be offered to benefited employees beginning January 1,2010. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby approve and Agreement between the City of Chula Vista and AFLAC to offer voluntary insurance coverage to all benefited employees, authorize pre-tax payroll deductions for employees who elect to purchase AFLAC supplemental insurance and authorize the Mayor to execute the Agreement. Presented by Approved as to form by ~~- Kelley Bacon Director of Human Resources Bart C. Miesfeld City Attorney 5-44 ATTACHMENT B Agreement between the City of Chula Vista and AFLAC 5-45 THE ATTACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORtVI BY THE CrTY ATTORNEY'S OFFICE AND WILL BE FORMALL Y SlGNED UPON APPROVAL BY THE CITY COUNCIL ~~ ~--~~ Bart C Miesfeld City Attorney Dated: (0 ~ t) - () r AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND AMERICAN FAMILY LIFE ASSURANCE COMPANY OF COLUMBUS (AFLAC) 5-46 Parties and Recital Page(s) Agreement between CityofChula Vista and American Family Life Assurance Company of Columbus (AFLAC) for the provision of voluntary insurance plans This agreement (" Agreement"), dated October I, 2009 for the purposes of reference only, and effective as of the date last executed unless another date is otherwise specified in Exhibit A, Paragraph I, is between the City-related entity as is indicated on Exhibit A, Paragraph 2, as such ("City"), whose business form is set forth on Exhibit A, Paragraph 3, and the entity indicated on the attached Exhibit A, Paragraph 4, as Consultant, whose business form is set forth on Exhibit A, Paragraph 5, and whose place of business and telephone numbers are set forth on Exhibit A, Paragraph 6 ("Consultant"), and is made with reference to the following facts: Recitals Whereas, the City and AFLAC desire to enter into an agreement for services; Whereas AFLAC will provide selected voluntary insurance policies to City employees that are 100% employee paid, subject to Aflac's receipt ofa signed application and underwriting; Whereas currently, CVEA and POA members have access to AFLAC voluntary insurance policies through their labor unions; Whereas AFLAC policies will be offered to all benefited City employees on a pre-tax basis; Whereas the AFLAC voluntary insurance options will be offered to benefited employees beginning January 1, 2010; Whereas l\FLAC warrants and represents that they are experienced and staffed such in a manner that they are and can prepare to deliver the services required of AFLAC to the City within timeframes provided by the City, in accordance with terms and conditions of this Agreement. (End of Recitals. Next Page starts Obligatory Provisions.) 5-47 Page I Obligatory Provisions Pages NOW, THEREFORE, BE IT RESOLVED that the City and Consultant do hereby mutually agree as follows: 1. Consultant's Duties A. General Duties Consultant shall perform all of the services described on the attached Exhibit A, Paragraph 7, entitled "General Duties"; and, B. Scope of Work and Schedule In the process of performing and delivering said "General Duties", Consultant shall also perform all of the services described in Exhibit A, Paragraph 8, entitled "Scope of Work and Schedule", not inconsistent with the General Duties, according to, and within the time frames set forth in Exhibit A, Paragraph 8, and deliver to City such Deliverables as are identified in Exhibit A, Paragraph 8, within the time frames set forth therein, time being of the essence of this agreement. The General Duties and the work and deliverables required in the Scope of Work and Schedule shall be herein referred to as the "Defined Services". Failure to complete the Defined Services by the times indicated does not, except at the option of the City, operate to terminate this Agreement. C. Reductions in Scope of Work City may independently, or upon request from Consultant, from time to time reduce the Defined Services to be performed by the Consultant under this Agreement. Upon doing so, City and Consultant agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with said reduction. D. Additional Services In addition to performing the Defined Services herein set forth, City may require Consultant to perform additional consulting services related to the Defined Services ("Additional Services"), and upon doing so in writing, if they are within the scope of services offered by Consultant, Consultant shall perform same on a time and materials basis at the rates set forth in the "Rate Schedule" in Exhibit A, Paragraph lO(C), unless a separate fixed fee is otherwise agreed upon. All compensation for Additional Services shall be paid monthly as billed. E. Standard of Care Consultant, in performing any Services under this agreement, whether Defined Services or Additional Services, shall perform in a marmer consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations. 5-48 Page 2 F. Insurance Consultant must procure insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance ofthe work under the contract and the results of that work by the Consultant, his agents, representatives, employees or subcontractors and provide documentation of same prior to commencement of work. The insurance must be maintained for the duration of the contract. Minimum Scope ofTnsurance Coverage must be at least as broad as: (I) Insurance Services OtDce Commercial General Liability coverage (occurrence Form CGOOOI). (2) Insurance Services Office Form Number CA 0001 covering Automobile Liability, Code 1 (any auto). (3) Workers' Compensation insurance as required by the State of Cali fomi a and Employer's Liability Insurance. (4) Professional Liability or Errors & Omissions Liability insurance appropriate to the Consultant's profession. Architects' and Engineers' coverage is to be endorsed to include contractual liability. Aflac is self-insured for Professional Liability Insurance. Aflac's independent agents for whom Aflac is not liable, shall each have his or her own individual E & 0 policy. Minimum Limits ofInsurance Contractor must maintain limits no less than: 1. General Liability: (Including operations, products and completed operations, as applicable) 2. Automobile Liability: 3. Workers' Compensation Employer's Liability: 4. Professional Liability or Errors & Omissions Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability insurance with a general aggregate limit is used, either the general aggregate limit must apply separately to this project/location or the general aggregate limit must be twice the required occurrence limit. $1,000,000 per accident for bodily injury and property damage. Statutory $1,000,000 each accident $1,000,000 disease-policy limit $1,000,000 disease-each employee Each individual agent providing services to the City on behalf of AFLAC maintain evidence of coverage for E&O Policies. 5-49 Page 3 Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either the insurer will reduce or eliminate such deductibles or self-insured retentions as they pertain to the City, its officers, officials, employees and volunteers; or the Consultant will provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration, and defense expenses. Other Insurance Provisions The general liability, automobile liability, and where appropriate, the worker's compensation policies are to contain, or be endorsed to contain, the following provisions: (1) The City of Chula Vista, its officers, officials, employees, agents, and volunteers are to be named as additional insureds with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the Consultant, where applicable, and, with respect to liability arising out of work or operations performed by or on behalf of the Consultant, including providing materials, parts or equipment furnished in connection with such work or operations. The general liability additional insured coverage must be provided in the form of an endorsement to the contractor's insurance using ISO CG 2010 (11/85) or its equivalent. Specifically, the endorsement must not exclude Products/Completed Operations coverage. (2) The Consultant's General Liability insurance coverage must be primary insurance as it pertains to the City, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers is wholly separate from the insurance of the contractor and in no way relieves the contractor from its responsibility to provide insurance. (3) The insurance policy required by this clause must be endorsed to state that coverage will not be canceled by either party, except after thirty (30) days' prior written notice to the City by certified mail, return receipt requested. (4) Coverage shall not extend to any indemnity coverage for the active negligence of the additional insured in any case where an agreement to indemnify the additional insured would be invalid under Subdivision (b) of Section 2782 of the Civil Code. (5) Consultant's insurer will provide a Waiver of Subrogation in favor of the City for each required policy providing coverage during the life ofthis contract. If General Liability, Pollution and/or Asbestos Pollution Liability and/or Errors & Omissions coverage are written on a claims-made form: 5-50 Page 4 (1) The "Retro Date" must be shown, and must be before the date of the contract or the beginning of the contract work. (2) Insurance must be maintained and evidence 0 f insurance must be provided for at least five (5) years after completion of the contract work. (3) If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a "Retro Date" prior to the contract effective date, the Consultant must purchase "extended reporting" coverage for a minimum of five (5) years after completion of contract work. (4) A copy of the claims reporting requirements must be submitted to the City for review. Acceptability of Insurers Insurance is to be placed with licensed insurers admitted to transact business in the State of California with a current A.M. Best's rating of no less than A-. If insurance is placed with a surplus lines insurer, insurer must be listed on the State of California List of Eligible Surplus Lines Insurers ("LESLI") with a current A.M. Best's rating of no less than A X. Exception may be made for the State Compensation Flmd when not specifically rated. Verification of Coverage Consultant shall furnish the City with original certificates and amendatory endorsements effecting coverage required by this clause. The endorsements should be on insurance industry forms, provided those endorsements or policies conform to the contract requirements. All certificates and endorsements are to be received and approved by the City before work commences. The City reserves the right to require, at any time, complete, certified copies of all required insurance policies, including endorsements evidencing the coverage required by these specifications. Subcontractors Consultants must include all sub consultants as insureds under its policies or furnish separate certificates and endorsements for each subconsultant. All coverage for subconsultants are subject to all of the requirements included in these specifications. Aflac's independent agents will each have his or her own insurance. G. Security for Performance (1) Performance Bond In the event that Exhibit A, at Paragraph 18, indicates the need for Consultant to provide a Performance Bond (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Performance Bond"), then Consultant shall provide to the City a performance bond in the form prescribed by the City and by such sureties which are authorized to transact such business in the State of California, listed as approved by the United 5-51 Page 5 States Department of Treasury Circular 570, htto:l/www.fms.treas.gov/c570, and whose underwriting limitation is sufficient to issue bonds in the amount required by the agreement, and which also satisfy the requirements stated in Section 995.660 of the Code of Civil Procedure, except as provided otherwise by laws or regulations. All bonds signed by an agent must be accompanied by a certified copy of such agent's authority to act. Surety companies must be duly licensed or authorized in the jurisdiction in which the Project is located to issue bonds for the limits so required. Form must be satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Performance Bond", in said Exhibit A, Paragraph 18. (2) Letter of Credit In the event that Exhibit A, at Paragraph 18, indicates the need for Consultant to provide a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Letter of Credit"), then Consultant shall provide to the City an irrevocable letter of credit callable by the City at their unfettered discretion by submitting to the bank a letter, signed by the City Manager, stating that the Consultant is in breach of the terms of this Agreement. The letter of credit shall be issued by a bank, and be in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Letter of Credit", in said Exhibit A, Paragraph 18. (3) Other Security In the event that Exhibit A, at Paragraph 18, indicates the need for Consultant to provide security other than a Performance Bond or a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Other Security"), then Consultant shall provide to the City such other security therein listed in a form and amount satisfactory to the Risk Manager or City Attorney. H. Business License Consultant agrees to obtain a business license from the City and to otherwise comply with Title 5 of the Chula Vista Municipal Code. 2. Duties of the City A. Consultation and Cooperation City shall regularly consult the Consultant for the purpose of reviewing the progress of the Defined Services and Schedule therein contained, and to provide direction and guidance to achieve the objectives afthis agreement. The City shall permit access to its office facilities, files and records by Consultant throughout the term of the agreement. In addition thereto, City agrees to provide the information, data, items and materials set forth on Exhibit A, Paragraph 9, and with the further understanding that delay in the provision of these materials beyond thirty (30) days after authorization to proceed, shall constitute a basis for the justifiable delay in the Consultant's performance of this agreement. 5-52 Page 6 B. Compensation Upon receipt of a properly prepared billing from Consultant submitted to the City periodically as indicated in Exhibit A, Paragraph 17, but in no event more frequently than monthly, on the day of the period indicated in Exhibit A, Paragraph 17, City shall compensate Consultant for all services rendered by Consultant according to the terms and conditions set forth in Exhibit A, Paragraph 10, adjacent to the governing compensation relationship indicated by a "checkmark" next to the appropriate arrangement, subject to the requirements for retention set torth in Paragraph 18 of Exhibit A, and shall compensate Consultant for out ofpocket expenses as provided in Exhibit A, Paragraph 11. All billings submitted by Consultant shall contain sufficient information as to the propriety of the billing to permit the City to evaluate that the amount due and payable thereunder is proper, and shall specifically contain the City's account number indicated on Exhibit A, Paragraph 17(C) to be charged upon making such payment. 3. Administration of Contract Each party designates the individuals ("Contract Administrators") indicated on Exhibit A, Paragraph 12, as said party's contract administrator who is authorized by said party to represent them in the routine administration of this agreement. 4. Term This Agreement shall terminate when the Parties have complied with all executory provisions hereof. 5. Liquidated Damages The provisions of this section apply if a Liquidated Damages Rate is provided in Exhibit A, Paragraph 13. It is acknowledged by both parties that time is of the essence in the completion of this Agreement. It is difIicult to estimate the amount of damages resulting from delay in performance. The parties have used their judgment to arrive at a reasonable amount to compensate for delay. Failure to complete the Defmed Services within the allotted time period specified in this Agreement shall result in the following penalty: For each consecutive calendar day in excess of the time specified for the completion ofthe respective work assignment or Deliverable, the Consultant shall pay to the City, or have withheld from monies due, the sum of Liquidated Damages Rate provided in Exhibit A, Paragraph 13 ("Liquidated Damages Rate"). Time extensions for delays beyond the Consultant's control, other than delays caused by the City, shall be requested in writing to the City's Contract Administrator, or designee, prior to the expiration of the specified time. Extensions of time, when granted, will be based upon the effect 5-53 Page 7 of delays to the work and will not be granted for delays to minor portions of work unless it can be shown that such delays did or will delay the progress of the work. 6. Financial Interests of Consultant A. Consultant is Designated as an FPPC Filer If Consultant is designated on Exhibit A, Paragraph 14, as an "FPPC filer", Consultant is deemed to be a "Consultant" for the purposes of the Political Reform Act conflict of interest and disclosure provisions, and shall report economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 14 of Exhibit A, or if none are specified, then as determined by the City Attorney. B. Decline to Participate Regardless of whether Consultant is designated as an FPPC Filer, Consultant shall not make, or participate in making or in any way attempt to use Consultant's position to influence a governmental decision in which Consultant knows or has reason to know Consultant has a [mancial interest other than the compensation promised by this Agreement. C. Search to Determine Economic Interests Regardless of whether Consultant is designated as an FPPC Filer, Consultant warrants and represents that Consultant has diligently conducted a search and inventory of Consultant's economic interests, as the term is used in the regulations promulgated by the Fair Political Practices Commission, and has determined that Consultant does not, to the best of Consultant's knowledge, have an economic interest which would conflict with Consultant's duties under this agreement. D. Promise Not to Acquire Conflicting Interests Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will not acquire, obtain, or assume an economic interest during the term ofthis Agreement which would constitute a conflict of interest as prohibited by the Fair Political Practices Act. E. Duty to Advise of Conflicting Interests Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will immediately advise the City Attorney of City if Consultant learns of an economic interest of Consultant's that may result in a conflict of interest for the purpose of the Fair Political Practices Act, and regulations promulgated thereunder. F. Specific Warranties Against Economic Interests Consultant warrants and represents that neither Consultant, nor Consultant's immediate family members, nor Consultant's employees or agents ("Consultant Associates") presently have 5-54 Page 8 any interest, directly or indirectly, whatsoever in any property which may be the subject matter of the Defined Services, or in any property within 2 radial miles from the exterior bOlmdaries of any property which may be the subject matter of the Defined Services, ("Prohibited Interest"), other than as listed in Exhibit A, Paragraph 14. Consultant further warrants and represents that no promise ofUlhlre employment, remuneration, consideration, gratuity or other reward or gain has been made to Consultant or Consultant Associates in connection with Consultant's performance ofthis Agreement. Consultant promises to advise City 0 f any such promise that may be made during the Term of this Agreement, or for twelve months thereafter. Consultant agrees that Consultant Associates shall not acquire any such Prohibited Interest within the Term ofthis Agreement, or for twelve months after the expiration ofthis Agreement, except with thc written permission of City. Consultant may not conduct or solicit any business for any party to this Agreement, or for any third party that may be in conflict with Consultant's responsibilities under this Agreement, except with the written permission of City. 7. Hold Harmless Consultant shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attorneys fees) arising out of or alleged by third parties arising as a result of the administration ofthis Agreement, the actions of Consultant, and Consultant's employees, subcontractors or other persons, agencies or firms for whom Consultant is legally responsible in connection with the execution of the work covered by this Agreement, except only for those claims, damages, liability, costs and expenses (including without limitations, attorneys fees) arising from the sole negligence or sole willful misconduct of the City, its officers, employees. Also covered is liability arising from, connected with, caused by or claimed to be caused by the active or passive negligent acts or omissions of the City, its agents, officers, or employees which may be in combination with the active or passive negligent acts or omissions of the Consultant, its employees, agents or officers, or any third party. With respect to losses arising from Consultant's professional errors or omissions, Consultant shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attorneys fees) except for those claims arising from the negligence or willful misconduct of City, its officers or employees. Consultant's indemnification shall include any and all costs, expenses, attorneys fees and liability incurred by the City, its officers, agents or employees in defending against such claims, whether the same proceed to judgment or not. Consultant's obligations under this Section shall not be limited by any prior or subsequent declaration by the Consultant. Consultant's obligations under this Section shall survive the termination of this Agreement. 5-55 Page 9 For those professionals who are required to be licensed by the state (e.g. architects, landscape architects, surveyors and engineers), the following indemnification provisions should be utilized: (1) Indemnification and Hold Harmless Agreement With respect to any liability, including but not limited to claims asserted or costs, losses, attorney fees, or payments for injury to any person or property caused or claimed to be caused by the acts or omissions ofthe Consultant, or Consultant's employees, and officers, arising out of any services performed involving this project, except liability for Professional Services covered under Section 7.2, the Consultant agrees to defend, indemnify, protect, and hold harmless the City, its agents, officers, or employees from and against all liability. Also covered is liability arising from, connected with, caused by, or claimed to be caused by the active or passive negligent acts or omissions of the City, its agents, officers, or employees which may be in combination with the active or passive negligent acts or omissions of the Consultant, its employees, agents or officers, or any third party. The Consultant's duty to indemnify, protect and hold harmless shall not include any claims or liabilities arising from the sole negligence or sole willful misconduct of the City, its agents, officers or employees. This section in no way alters, affects or modifies the Consultant's obligation and duties under Section Exhibit A to this Agreement. (2) Indemnification for Professional Services. As to the Consultant's professional obligation, work or services involving this Project, the Consultant agrees to indemnify, defend and hold harmless the City, its agents, officers and employees from and against any and all liability, claims, costs, and damages, including but not limited to, attorneys fees, that arise out of, or pertain to, or relate to the administration of this Agreements and the actions of Consultant and its employees in the performance of services under this agreement, but this indemnity does not apply liability for damages for death or bodily injury to persons, injury to property, or other loss, arising from the sole negligence, willful misconduct or defects in design by City or the agents, servants, or independent contractors who are directly responsible to City, or arising from the active negligence of City. 8. Termination of Agreement for Cause If, through any cause, Consultant shall fail to fulfill in a timely and proper manner Consultant's obligations under this Agreement, or if Consultant shall violate any of the covenants, agreements or stipulations of this Agreement, City shall have the right to terminate this Agreement by giving written notice to Consultant of such termination and specifying the effective date thereof at least five (5) days before the effective date of such termination. In that event, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by Consultant shall, at the option of the City, become the property of the City, and Consultant shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused City by Consultant's breach. 9. Errors and Omissions 5-56 Page 10 In the event that it is adjudicated by a court that the Consultants' negligence, errors, or omissions in the performance of work under this Agreement has resulted in expense to City greater than would have resulted ifthere were no such negligence, errors, omissions, Consultant shall reimburse City for any additional expenses incurred by the City. Nothing herein is intended to limit City's rights under other provisions ofthis agreement. 10. Termination of Agreement for Convenience of City City may terminate this Agreement at any time and for any reason, by giving specific written notice to Consultant of such tennination and specifying the effective date thereof, at least thirty (30) days before the effective date of such termination. In that event, all finished and unfinished documents and other materials described hereinabove shall, at the option of the City, become City's sole and exclusive property. If the Agreement is terminated by City as provided in this paragraph, Consultant shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials to the effective date of such termination. Consultant hereby expressly waives any and all claims for damages or compensation arising under this Agreement except as set forth herein. 11. Assignability The services of Consultant are personal to the City, and Consultant shall not assign any interest in this Agreement, and shall not transfer any interest in the same (whether by assignment or notation), without prior written consent of City. City hereby consents to the assignment of the portions of the Defined Services identified in Exhibit A, Paragraph 16 to the subconsultants identified thereat as "Permitted Subconsultants". 12. Ownership, Publication, Reproduction and Use of Material All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced under this Agreement shall be the sole and exclusive property of City. No such materials or properties produced in whole or in part under this Agreement shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express written consent of City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such reports, studies, data, statistics, forms or other materials or properties produced under this Agreement. 13. Independent Contractor City is interested only in the results obtained and Consultant shall perform as an independent contractor with sole control of the manner and means of performing the services required under this Agreement. City maintains the right only to reject or accept Consultant's work products. Consultant and any of the Consultant's agents, employees or representatives are, for all purposes under this Agreement, an independent contractor and shall not be deemed to be an employee of 5-57 Page 11 City, and none of them shall be entitled to any benefits to which City employees are entitled including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Therefore, City will not withhold state or federal income tax, social security tax or any other payroll tax, and Consultant shall be solely responsible for the payment of same and shall hold the City harmless with regard thereto. 14. Administrative Claims Requirements and Procedures No suit or arbitration shall be brought arising out of this agreement, against the City unless a claim has first been presented in writing and filed with the City and acted upon by the City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may from time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used by the City in the implementation of same. Upon request by City, Consultant shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 15. Attorney's Fees Should a dispute arising out of this Agreement result in litigation, it is agreed that the prevailing party shall be entitled to a judgment against the other for an amount equal to reasonable attorney's fees and court costs incurred. The "prevailing party" shall be deemed to be the party who is awarded substantially the relief sought. 16. Statement of Costs In the event that Consultant prepares a report or document, or participates in the preparation of a report or document in performing the Defmed Services, Consultant shall include, or cause the inclusion of, in said report or document, a statement of the numbers and cost in dollar amounts of all contracts and subcontracts relating to the preparation of the report or document. 17. Miscellaneous A. Consultant not authorized to Represent City Unless specifically authorized in writing by City, Consultant shall have no authority to act as City's agent to bind City to any contractual agreements whatsoever. B. Consultant is Real Estate Broker and/or Salesman If the box on Exhibit A, Paragraph 15 is marked, the Consultant and/or their principals is/are licensed with the State of California or some other state as a licensed real estate broker or salesperson. Otherwise, Consultant represents that neither Consultant, nor their principals are licensed real estate brokers or salespersons. C. Notices 5-58 Page 12 All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified herein as the places of business for each of the designated parties. D. Entire Agreement This Agreement, together with any other written document referred to or contemplated herein, embody the entire Agreement and understanding between the parties relating to the subject matter hereof. Neither this Agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. E. Capacity of Parties Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. F. Governing LawNenue This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the federal or state courts located in San Diego County, State of California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City ofChula Vista. (End of page. Next page is signature page.) 5-59 Page 13 Signature Page to Agreement between City of Chula Vista and [American Family Life Assurance Company of Columbus (AFLAC)] for the provision ofvoluntarv insurance plans IN WITNESS WHEREOF, City and Consultant have executed this Agreement thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: Dated: City of Chula Vista By: Cheryl Cox, Mayor Attest: Donna Norris, City Clerk Approved as to form: Bart Miesfeld, City Attorney Dated: October 2. 2009 [ AFLAC] By:~~ [Deborah B. Griffin, Second President] By: [Name of Person, Title] Exhibit List to Agreement (X ) Exhibit A. 5-60 Page 14 Exhibit A to Agreement between City of Chula Vista and American Family Life Assurance Company of Columbus (AFLAC) 1. Effective Date of Agreement: January L 2010 2. City-Related Entity: (X )City of Chula Vista, a municipal chartered corporation of the State of California ( ) Redevelopment Agency of the City ofChula Vista, a political subdivision of the State of California ( ) Industrial Development Authority of the City of Chula Vista, a ( )Other: , an msurance company. ("City") 3. Place of Business for City: City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 4. Consultant: Tessa Goetz-Munster, is an independent agent representing AFLAC. She will serve as the City's local consultant for all account emollment and servicing. 5. Business Form of Consultant: AFLAC is a: ( ) Sole Proprietorship ( ) Partnership ( X) Corporation 6. Place of Business, Telephone and Fax Number of Consultant: 1947 Camino Vida Roble, Suite 106 Carlsbad, California 92008 Voice Phone: (760) 443-6641 Fax Phone: (760) 607-0868 AFLAC Worldwide Headquarters 1932 Wynnton Road Columbus, GA 31999 Voice Phone: 1-800-992-3522 Fax Phone: (706) 320-4659 5-61 Page 15 7. General Duties: Account enrollment with regard to AFLAC products for voluntary City employee plans including Accident Indemnity Plan, Cancer, Specified Health Event, Hospital Protection, Dental (Basic Only) and Long-Term Care plans and ongoing account servicing which involves meeting with the employer/owner, payroll specialists, policyholders, claimants, and new employees. Servicing also includes handling upgrades, conversions, re-enrollment, and helping with claims and billing issues. 8. Scope of Work and Schedule: . Provide informational meetings to employees at open enrollment period. . Store employee information related to enrollment and administration of voluntary plans. . Provide a toll-free service number to employees and on-line account services. . Provide marketing materials to the City for new hire orientation and open enrollment. . Respond to reasonable inquiries by employees of the City about their coverage and the procedure for submission of claims. . Use reasonable care to guard against fraudulent or erroneous payments. . Send biweekly invoices to the City ofChula Vista. . Monitor and reconcile the receipt of employee premiums remitted by the City. . Collect any missed deductions from an employee. . Maintain records and accounts of the insurance plans' operation. . Coordinate benefit payments to participants, including the provision of required tax filings in regard to these payments. . Perform periodic accounting of employee contributions and benefit payments. . Give the City rights to access City records for auditing purposes. . Maintain strict compliance with federal law with regard to performance of administrative duties. . Meet with City staff on an annual basis to review products, and discuss services . Keep the City abreast of proposed and enacted legislation and regulations that affect AFLAC voluntary plans offered to City employees. B. Date for Commencement of Consultant Services: ( X) Same as Effective Date of Agreement ( ) Other: C. Dates or Time Limits for Delivery ofDeliverables: Deliverable No. I: N/A Deliverable No. 2: N/A 5-62 Page 16 Deliverable No.3: N/A D. Date for completion of all Consuliant services: until agreement is terminated 5-63 Page 17 9. Materials Required to be Supplied by City to Consultant: None 10. Compensation: .'\. ( ) Single Fixed Fee .^.rrangement.~ For performance of all of the Defined Services by Consultant as herein required, City shall pay a single filled fee in the ameunts and at the times or milestenes or for the Delivenwles set forth below: Single Fi:;ea Fee .^.mount: , payable as fullows: Milestone or Event or Deliverable .'\mount or Percent ofFil;ed Fee ( ) 1. Interim ~'!onthly ."'dvances. The City shall make interim monthly aavances against the compensation due f-or each phase on a percentage of completion basis for each gi'len phase such that, at the end of each phase omy the compensation for that phase has been paid. .'\ily pa)IDents made hereunder shall be considered as interest froe loans that must be returned to the City if tRe Phase is not satisfactorily completed. If the PRase is satisfactorily completed, the City shan receive credit against the compensation dHe for that phase. The retention amoHat or percoatage set forth in Para;raph 19 is to be applied to each interim payment "uch that, at the ena of the phase, the nlll retention has been held back from the compensation aue f-or that phase. Percentage of completicm of a phase shall be assessed in the sole and uafettered discretion by the Contracts .^.dministrator designated Rerein by the City, or such other person as the City M:anager shall desi;nate, bHt only Hpon such proof demanded by the City that has been pro';ided, but in no event shall such interim ach'ance payment be made unless the Contractor shall have representea in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this a;reement to a time and materials basis of pa)ment. B. ( ) Phased Fixed Fee .'\rrangemont. For the performance of eaeh phase or portioa of the Definea Services by Consultaat as are separately identified belo'.v, City shall pay the fixed fee associated with eaeh phase of Servicos, 3. The difference between a sint;le fi~;ed fee amount with phased payments aad a phased fixed f~e amount is that, in a siagb filced fee amount all of the ,,;ork is required fer all of the compensation. Pa)m~ats are phased to help with eonsHltant eash flow. In a phased fixed fee arrangement, the City has the authority to eaaed or require performance Hnaer subsequent phases, so that the compensation is due jHst f-or tRe phase of '.vork required, and not for the total amount. 5-64 Page 18 in the amolmts and at the timos or milestones or Deliverabbs set forth. Consultant shall not commcnce Ser:ices andor any Phase, and shall not b3 entitled to the compensation for a Phase, anlzss City shall ha':e issHcd a notice to proceed to Consultant as to said Phase. Phase -h :&. Fee for Said Phase ~ or. $ $ $ AFLAC agents and brokers are compensated by the sale of their voluntary insurance plans. They are paid a set commission depending on the voluntary plan and the type of contract the agent and/or broker has with AFLAC. In order to receive commissions, all personnel must be licensed in that state and appointed by AFLAC. ( ) I. Interim Monthly i\dvances. The City shall make interim monthly advances abainst the compensation dHe for each phase on a percentabe of completion basis f{)r each bi':en phase s,wa that, at the end of each phase only the compeRsation for that phase has been paid. .^.ny paiments made h3reunder shall be considered as interest fFee-kJans taat must be returned to the City if the Phase is not satisfactorily completed. Iftha Phase is satisfactorily completed, the City shall receive credit abainst the compensation due for that phase. The retention amount or percentabe set forth in Parab'faph 19 is to be applicd to each interim payment such that, at the end of the phase, the full retention has been held bac!; from the compensation due for that phase. Percentabc of completion of a phase shall be asscssed in tho sole and unfettered discretion by the Contracts ;\dministrator desi<;nated herein by the City, or such other person as the City Manaber shall desi;nate, but only upon such proof oomanded by the City that has been pro'lided, but in no e':ent shall such interim advance paiment be made anless the Contractor shall have represented in writin; that said percenta;e of completion of the phase has been performed by the Contractor. The practice ofmabnb interim monthly advances shall not convert this agreement to a time and mat3rials basis ofpayment. C. ( ) Hourly Rate Arrangement With the exception of question 18, Section C is not applicable to AFLAC For performance ofrhe Dzfined Services by Consultant as hzrein reqaired, City shall pay Consultant for the prodactiye hours of time_spent by Consultant in the performance of said Services, at rhe rates or amounts set forth in the R~to SehedHle herein below according to tho follo',';ing terms and conditions: (1) ( ) 1';ot to E][eeed Limitation on Time and l\'faterials ;\rranbomont Not:/ithstandinb the expendituro by Consultant of time and materials in excess of said Maximum. Comp3nsation amount, Consultant a;reos that Consultant will perform all of 5-65 Page 19 the Definecl Sar/iees herein requirecl of Consultant for S including all Materials, and other "rcimbursables" ("Maximum Cempensatioa"). (2) ( ) Limitatioa without Further },uthorization on Time and Materials .-\rrangemant },t such time as Consultaat shall ha'/e ineurrccl time and materials equal to E" A HIR . I' T' . "\ f"' . . .. onza IOn LImIt J, ~oasultaat shall not be entitled to ony addlhonal compensation without further authorizatiofl issuecl in writin~ ancl approved by the CIty. Nothiag hereia shall preclucle Consultant from proHicli~~ addit" I C' . I f"' I ' . b lona oernees a ~onsu tant s own cost and expense. Categor/ofEmployce Rate Seheclule4 1':ame of Consultant Hourly Rate S $ $ $ $ ( ) Hourly rates may increase by 6% for services renclerecl after [month] 20 'f cI I . . .". .. ' , I e a) III provluIllg servIces IS caused by City. - 11. Materials Reimbillsement }.!Tangement F or the .cost of out of pocket expenses incurrecl by Coasultant in the performanee of services herem reqmred, CIty shall pay Consultaat at the rates or amounts set forth below: ( ) None, the compensation inclucles all costs. Cost or Rate $ $ S $ $ $ $ H Reports, not to exceed $ H Copies, not to e;:ceecl $ H Tra'lel, not to exceecl $ H Printing, not to exeeecl $ H Postage, not to exceecl $ H Delivery, not to exceed $ H Long Distanee Telephone Charges, not to e;cceed $ 4. This section should be compliJted in all cases if tho main eompensatioa scheme is a "time and matJnalG arrongoment" or for the purposes of reqHiring }.clditional Services. 5-66 Page 20 H Other ",.crual Identifiable Direct Costs: , not to e::ceed S , not to e::ceed S $ S S 12. Contract :\dministrators: City:~ Constlltant:" 13. Liquidated Damages Rate: ( ) $ ( ) Other: por day. 11. Statement of Economic Interests ConsIolltant R rf . ,...,~~~. "cpo m~ Cate~efl G fl' == " "es, per on let of Intef8st E \ '" t ^ I' J . ,0 . .pp ICMle. 1'Yot an FPPC Fi]er.+ ( ) FPPC Filer ( ) Cate,;ory No. I. Inyestments and sources of' mcome. ( ) Cate,;ory No.2. Intcrests in real proporty. ( ) Cate,;ory "Yo. 3. Inyostmants, intorost in real ro' . to the ro,;ulatory pormit or lie . ~ . p pert) and sources of mcome subj cct , ensm" atttl:onty ofthc departmcnt. 5. Sample Completion: Marilyn Posog,;i, Environmental Renie'" Co d' . 276 FOtlfth ",.'{onue Chula "ista C: 9i9100r mator, Pubhc Seryiees Eui1dinc:: , " n ,(619) 6915101. -' 6. Same as address ctc. on E::h' 13 1 ], . . " . ,p us name of lead conlact. 7. If Consultant, in the performance ofils ser" a ' a . ,Ieos un-or tms agfe I El' an arn';()s atconcbsions ",ith respect to its rendilisfl sf' t< emen: ,conducts research recommendatIOns or counsel indo end t f 1R ormatlOn, adnce, City official, other than nonna1 coF'ntracetn 0 ~~e control and direction oftha City or of ann . mom.onn " ana E'1\ .. J respect to any CIty decision be' 'on~ tt.. ~. . '" . - J possesses no authonty with J "He ren"ltJon ofmfu t' a . counsel, Consultant should Rot be de' t d rma lOR, a VICe, recommendations or sl,;na e as an FPPC filer. 5-67 Page 21 ( ) fa~~o~y fJo. ~. In':estments in basiness entities and somces of income that en~a~e in an 0, e opment, constmetlOn or the acquisition or sale of real property. '" '" ( ) ~.atcgo~::.Na. 5. In':estmeffis in busincss entities and sources of income of the t e Edn:h:. 'j Itlun the fast two years, have coooacted ':lith the City of Chula Vista yp ,o..e. e opment. .gency) to proVIde sen'ices, sapplies, matcrials machinery or eqUIpment. ' . ( ) ~.~tc~O?:.l'~? Oh Ir.':estments in business entities and sources of income of the type .. IC , .. It m t e past two years, have coooacted with the desimated em 10 .ee's depail'H~nt to proYlde services supplies mat~rials h' '" . jl ) , , ,mac mery or eqUlpmont. ( ) Category No. 7. Business positions. ( ) List "Con~ultant .^.ssoeiatos" interests in roal property within'" r d' I '1 fP' Property, If any: . - a 1a ml es 0 rOj eet 15. ( ) Consultant is Real Estate Broker and/or Salesman 10. Permitted Subconsultants: 17. Bill Processing: .\. Consultant's Billing to b~ submitted for the following period aftime: ( ) Menthly ( ) Quarter! y ( ) Other: B. Day of the Poried for submission ofConsultaffi's Billin~' "'. ( ) First ofilie ~.ionth 5-68 Page 22 () 15th Day of each. Month ( ) End of the ~.fonth ( ) Other: C. City's Acco,mt :--[umber: 18. Security for Performance ( X)Performance Bond, $ . Generally, a performance bond is customary for architects or builders who are in the construction industry but not for a company selling insurance policies. AFLAC does not purchase a performance bond because it is not applicable to our busi ness. . AFLAC is a fully-insured company that maintains a blanket fidelity bond through the St. Paul Guardian Insurance Company in the amount of$20,000,000 aggregate policy limit. We also maintain commercial general liability, automobile, statutory workers' compensation, and employer's liability coverage. Coverage applies to employees of AFLAC Incorporated. . Please see the attached Certificate of Insurance. . AFLAC does not maintain Errors and Omissions (E&O) coverage as a company. We feel our assets are sufficient to cover any losses resulting from E&O. Tessa Goetz-Munster and any AFLAC agents will provide proof of E&O coverage to the City. ( X)Letter of Credit, $ See Attaclunent B. ( ) Other Securi ty: Type: Amount: $ ( ) Retention. If this space is ched~ed, then noty;ithstandin; other proyisions to the contrary requiring the pa)IDent of compensation to the Consultant sooner, the City shall be entitled to retain, at their option, either the f-olloy;in; "Retention Perccnta;~" or "Retention /.m.ount" Matil tne City determiaes that the Retontion Release Event, listed belov:, has occHcITed: ( ) R~tention Percentage: ( ) Retention ".mount: $ ~~ Retention Release Event: ( ) Completion of .-\11 Consultant Senices ( ) Other: RAttomey/2pty15 5-69 Page 23 CITY COUNCIL AGENDA STATEMENT ~Vt- CITY OF .~ (HUlA VISTA 10/20/09, Item~ REVIEWED BY: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING THE FINAL REPORT OF EXPENDITURES FOR THE "EMERGENCY STORM DRAIN AND SLOPE REPAIR AT 1526 GRAND TETON COURT (DRI80)" AND RATIFYING THE ACTIONS OF THE CITY MANAGER AND DIRECTOR OF PUBLIC WORKS FOR MAKING AND EXECUTING A CONTRACT FOR SAID EMERGENCY REPAIR WITH CASS CONSTRUCTION, IN~.. . DIRECTOR OF PUBLIC WORKS" ~. ASSISTANT DfRECTOR OF ENGIN' ~ CITY MANAGE~ ASSISTANT CI~~fMANAGER ~J 4/5THS VOTE: YES 0 NO 0 ITEM TITLE: SUBMITTED BY: SUMMARY On February 19, 2009, Public Works received a call fTom Mr. Han Su Taik, the owner of the residence at 1526 Grand Teton Court that a large hole appeared at the rear yard of his property. Public Warks staff responded immediately to secure the affected area amI to prevent any other potential problems and ensure public safety. The sinkhole was caused by piping (the underground movement of soil by water) of the fill soils surrounding an existing 18" RCP storm drain pipe that runs within the property. In accordance with the emergency provisions of Section 1009 of the City Charter, City staff contracted the services of Cass Construction, Inc. (General Engineering Contractor License No. 298336) for the repair. The repair was completed on June I, 2009. An Informational Item was submitted on February 27,2009 (Attachment I) with the plan to report back to City Council after the filiI cost of the project was identified. This report represents the total expenditures for the repair. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Qlwlity Act (CEQA) and has determined, based on the evidence presented, that the activity falls under the emergency project exemption for specific actions necessary to prevent or mitigate an emergency, pursuant to Section 15269 (c) of the State CEQA Guidelines. Thus, no further environmental review is necessary. 6-1 10/20/09, Item~ Page 2 of 3 RECOMMENDATION Council adopt the resolution. BOARDS/COMIVIISSION RECOMMENDATION Not applicable. DISCUSSION On Thursday, February 19, 2009, Public Works received a call trom Mr. Han Su Taik, the owner of the single-family residence at 1526 Grand Teton Court that a large hole appeared at the rear yard of his property, adjacent to a swimming pool. Public Works staff responded immediately to secure the affected area and to evaluate the situation. During the evaluation of the site, staff confirmed the presence of a 7 feet-wide by 7 feet-long by 10 feet-deep sinkhole directly over an existing publicly owned 18" reinforced concrete pipe (RCP) storm drain. Public Works staff immediately stabilized the site by placing temporary backfill and installing safety barricades around the perimeter of the sinkhole. In order to determine the extent of the repair and to obtain a precise construction bid estimate, a geotechnical consultant (Ninyo & Moore), selected from the City's on-call consultant list, was retained to perform soil testing, to assess geotechnical conditions, and to provide repair recommendations. This report assisted the City and the contractor in determining the scope and extent of the necessary repair and associated costs. Ninyo & Moore's report concluded that the sinkholes along the western edge of the property were caused by groundwater piping of the fill soils adjacent to the 18-inch RCP storm drain. This loss offill soils around the 18" RCP also led to the separation of pipe joints, additional loss of soil, and tree root intrusion into the storm drain. Ninyo & Moore's recommendation was to remove and replace the existing 18-inch storm drain pipe and to repair the slope distress by removing the disturbed material and rebuilding the slope with compacted fill, which included the use of a geo-grid reinforcing system, a keyway, and back drains. The Director of Public Works and the City Manager agreed with the recommendation of staff on the necessity to proceed with the emergency repair due to the fact that if the slope and storm drain were not repaired as soon as possible, the pool and the house could sustain additional, unnecessary damage and could also threaten neighboring properties. Contractor Selection Process Staff prepared and solicited three informal bids from qualified contractors that have previously worked for the City of Chula Vista. On April 7, 2009 the City received three proposals. The Contractors were ranked as follows: Contractor Proposal Amount Contractor Ranking Cass Construction Co., Inc. $125,553.00 First Negotiation Preference TC Construction Co., Inc. $198,435.00 Second Negotiation Preference vVest Tech Contracting. $276,125.90 Third Negotiation Preference 6-2 10/20/09, Item~ Page 3 of 3 Staff Costs In addition to construction activities, staff time is also required for construction inspection, geotechnical investigation and administrative staff. These staff components total $43,917. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the property, which are the subject action. CURRENT FISCAL IMPACT There is no impact to the General Fund as there are sut1icient TransNet funds in the existing crr DR180 (approved by City Council under the FY 2009-10 Capital Improvement Program) necessary to fund the project. A breakdown of the project costs is as follows: Item Cass Construction, Inc. (Final Cost, indudmg quantity adjustments emd contract change orders) Nin 0 & Moore Geotechnical Consultants Ci ty Staff Amount $ 127,179.01 35,318.00 43,917.00 ONGOING FISCAL IMPACT The improvement will require only routine City maintenance. ATTACHMENTS 1. Council Information Item Prepared by: Luis A. Labrada, Associate Engineer. Department o.t'?ublic Works-Engineering M:\Engineer\AGENDA\CAS2009\IO-20-09\DR180A A-113 Rev.doc 6-3 MEMO ATTACHMENT ~\r(,... ~ "-..>., . ~--~ -- I ClIT OF (HULA VISTA Department of Public Works DATE: February 27,2009 TO: The Honorable Mayor and City Council VIA: Jim Sandoval, City Manage~ ~ Scott Tulloch, Assistant ci~-iia:ager S '/ . FROM: R A. Hopkins, Director of Public Works @-- SUBJECT: Emergency Storm Drain and Slope Repair at 1526 Grand Teton Court On Thursday, February 19,2009, Public Works received a call from Me. Han Su Taik, the owner of the single-family residence at 1526 Grand Teton Court, that a large hole appeared at the rear yard of his property, adjacent to a swimming pooL Public Works staff responded immediately to secure the affected area and to evaluate the situation. During the evaluation of the site, staff confirmed the presence of a T-wide by T-Iong by 10'-deep sinkhole and that it was directly over an existing publicly owned 18" reinforced concrete pipe (RCP) storm drain. Public Works staff immediately stabilized the site by placing temporary backfill and installing safety barricades around the perimeter of the sinkhole. The home is currently vacant. The 18" RCP extends from the curb line on Grand Teton Court through the side yard ofthe property and it outlets at the toe of slope adjacent to an SDG&E transmission easement, as shown on the attached plat. At this point, it is not known what caused the sinkhole. A geotechnical consultant (Ninyo & Moore) is studying the problem and will identify the cause of the sinkhole and provide detailed recommendations/plans to restore the storm drain, slope, and property. Restoration work will be implemented as soon as possible. Ninyo & Moore's recommendations will assist the City and the City's Contractor to determine the repair area and associated costs. City staff has taken all possible precautions to ensure the temporarv safetv for the property and its residents during this pre-repair period. However, because we are still in the rainy season, staff believes that if the repair is not .performed as soon as possible, the property could sustain additional and unnecessary damage. Therefore, the Public Works Department believes it is important to complete all repair and restoration work immediately. Staff intends to enter into an emergency repair contract in accordance with the emergency provision of Section 1009 of the City Charter based upon the necessity to preserve life, health, and property. Upon receiving and concurring with Ninyo & Moore's recommendations, City staff will solicit three bids from responsible Contractors that have previously worked for the City and have performed similar type work satisfactorily. The preliminary, estimated cost for this repair is $150,000. This estimate includes the geotechnical recommendations report, construction repairs. and City staff costs. Staff will be using the General Fund Reserves to undertake this work as no other funding sources are available at this time. Staff will return to Council with a full report as soon as the repair has been completed. Attachment M:\Engineer\AGENDA\lnformation ltems\Emergency repair 1526 Grand Teton Ct.doc 6-4 w '" '" ..-- o I- .... U <: o .... '" I- -0 = r'., ~ I', C). .,", ::'; ",;:., L_(~r \- o '2 : ~~::~,:1 ~~~'I, ~. ~;' . ; ',\; '\ ~f~;<. " c ::"-~ , ~.:. I f~~r~~,~" 6 5 RESOLUTION NO. 2009- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING THE FINAL REPORT OF EXPENDITURES FOR THE "EMERGENCY STORM DRAIN AND SLOPE REPAIR AT 1526 GRAND TETON COURT (DRI80)" AND RATIFYING THE ACTIONS OF THE CITY MANAGER AND DIRECTOR PUBLIC WORKS FOR MAKING AND EXECUTING A CONTRACT FOR SAID EMERGENCY REPAIR WITH CASS CONSTRUCTION, INC. WHEREAS, on February 19, 2009, the City of Chula Vista Department of Public Works Operation received a call from the owner of the residence at 1526 Grand Teton Court that a large hole appeared at the rear yard of his property; and WHEREAS, the sinkhole was caused by groundwater piping of the fill soils adjacent to the existing l8-inch RCP storm drain, therefore the groundwater flow caused distress and settlement of the fills soils wedge beneath the property, causing lateral relaxation and creep of the existing fill slopes, and consequently it triggered joint separation and root intrusion to the existing storm drain system; and WHEREAS, on April 7, 2009, the Director of Public Works received three (3) sealed bids for the project as follows: Contractor Proposal Amount Contractor Rauking Cass Construction, Inc. $125,553.00 First Negotiation Preference TC Construction, Inc. $198,435.00 Second Negotiation Preference West Tech Contracting. $276,125.90 Third Negotiation Preference WHEREAS, in accordance with the emergency provisions of Section 1009 of the City Charter, City staff contracted the services of Cass Construction, Inc. (General Engineering Contractor License No. 298336) for the repair; and WHEREAS, the storm drain and slope repair was completed on June 1,2009; and WHEREAS, the Director of Public Works and the City Manager agreed with the recommendation of staff on the necessity to proceed with the emergency repair because the pool and the house itself could sustain additional unnecessary damage and threatened the neighboring properties; and WHEREAS, this report represents the total expenditures for the repair. 6-6 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby accept the final report of expenditures for the "Emergency Storm Drain and Slope Repair at 1526 Grand Teton Court (DRI80)" and ratifies the actions of the City Manager and Director of Public Works for making and executing a contract for said emergency repair with Cass Construction, Inc. Presented by Approved as to form by ~~ Bart Miesfeld p f /L 7'(, City Attorney Richard A. Hopkins Director of Public Works 6-7 CITY COUNCIL AGENDA STATEMENT ~ \ 'f:.. CITY OF . · ~~ (HULA VISTA OCTOBER 20, 2009, Item /.' ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING $163,400 IN UNANTICIPATED REVENUE GENERATED THROUGH OPERATIONS AT THE CHULA VISTA NATURE CENTER AND AMEND THE BUDGET ACCORDINGLY SUBMITTED BY: REVIEWED BY: DIRECTOR OF RE~TION AND NATURE CENTER ~r'" ~~ CITY MANAGE ,-:- ASSIST ANT CITY ANAGER S) 4/STHS VOTE: YES I X I NO D SUM1VIARY The approved operating budget for the Chula Vista Nature Center (CVNC) for FY09/10 includes no revenue, and limited funding on the expenditure side. Through an agreement reached with the Friends of the Chula Vista Nature Center (Friends) subsequent to the budget process, the facility has and is continuing to operate at full capacity, generating un- budgeted revenue. This appropriation of $163,400 of the unanticipated revenue will partially offset projected over-expenditures attributed to the cost of full operations. 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, acceptance of a report and approval of an appropriation, is not a "Project" as defined under Section 15378 (b)(4) of the State CEQA Guidelines because it does not involve a physical change to the environment; therefore, pursuant to Section l5060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. RECOMMENDATION City Council approve the resolution. BOARDS/COMMISSION RECOMMENDATION Not Applicable 7-1 OCTOBER 6, 2009, Item~ Page 2 of3 DISCUSSION On April 28, 2009, City Council approved resolution # 2009-098, which authorized staff to pursue a public-private partnership with the Friends of the Chula Vista Nahlre Center for operation and management of the CVNC. The resolution also included two conceptual funding scenarios for the CVNC for FY 09/10, one that provided funding to essentially maintain full operations with some offsetting revenue, and the other that provided only minimal funding for bare-bones operations, with no offsetting revenue. Both funding scenarios stipulated some level of financial support from the Friends. The FY09/10 budget was subsequently approved at the lower (minimal) funding level with no revenue anticipated, which required a significant fi.mding commitment from the Friends in order to maintain operations at the facility. On June 18,2009, the City and the Friends entered into an interim agreement (Attachment "A") that identified sources of funding that would enable the City to continue to operate the CVNC at full capacity for the first half of the fiscal year. The agreement also specified the order in which various funding sources would be utilized, with unanticipated revenue at the top of the list. This appropriation represents compliance with those stipulations, since the unanticipated revenue will offset some expenditures that have already occurred, or will occur in the near future. It is likely that an additional appropriation will be requested later in the year, to further offset operational costs that the City will incur. The appropriation will include additional revenue generated, and will likely tap funds that are currently on deposit with the City from several donors, including the Friends. No appropriation of general fund money is anticipated. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council Members and has found no such holdings within 500' of the properties which are the subject of this action. FISCAL IMPACT The CVNC expenditure budget for the current fiscal year is $218,000. No revenue is budgeted. As of October 7, 2009, a total of$271,560 has been expended for operations of the facility, including personnel costs. The expenditure total includes funds that have been "encumbered" in purchase order agreements with various vendors. As of the same date, a total of$163,400 has been generated in revenue at the facility. This revenue was unanticipated in the budget, and will be used to help offset expenditures created by full operations at the CVNC. The appropriation of S 163,400 in unanticipated revenues will offset some of the expenditures, but an additional appropriation will be required late in the year. The subsequent appropriation will include additional revenue generated, and will likely tap funds that are currently on deposit with the City from several donors. No appropriation of general fund reserves are anticipated. Al13-Nature center Appropriation.Oct20.amdOctl3 7-2 OCTOBER 6, 2009, Item_7_ Page 3 .of 3 Funds shall be appropriated as follows: EXPENDITURE REVENUE Personnel Services 540,200 Use of Money & Property $30,700 Supplies & Services $57,700 Revenue Other Agencies $15,000 Other Expenses $41,100 Charges for Services $65,700 Capital $24,400 Other Revenue $52,000 Total $163,400 Total $163,400 ATTACHMENTS "A" - Letter Agreement between the City and Friends At 1 34Naturc center Appropriation.Oct20.amdOct13 7-3 Attachment A .' if)'. n #1,'/ 0e-t..uiM?' n0UiX~, '~_ au~'7' June 18; 2009 JiihSandoval, City Manager City bfChula Vista '276 FburthAvenue, Chula Vista,:c;A 91910 I"" ','., ' RE: Letter Agreement Between the CitY of Chula Vista ("City") and the Friends of the C:;:hul~; Vista Nature Center (''Friend'') Regarding Funding and Operations o.(the Chula Vista Nature Center ("Natnre Center") frO:mJl)ly 1 tiiroughDeccmber ;31,2009 ("Transitionferiod"), and Related Matters. <,..,. - , '. ,., ", .- , , Pear Mr,. Sandoval: . As YQuknow,: the City and the Friends are. cilITent!yeng~gedin good faith negotiatio~s '(of(he te.rms oftransitioning Nature Centeroperations from the City to. the Friends by on o~befbre JanVaryl, 2010, , . "," . . . . .., ','" .' . .. . P_endingthe oi1tcomeof.thesenegotiations the City has.asked that the Fricnds deposit yy,i,th th(C;:ity bY on .or before Julyi, 2009 the anlOunt of$75,000to be used, as . , - ,n~cessaryj to fluid Nature Center Opera~ons during the sixcmonth Transition Period, . 'Citystaffilnd the Friends task force have discussed this matter and have reached . agt,emellt onihe follo\Ving terms and condiiiohs for the Frie~ds contribution: . . X . 'Subject to the terms and conditions set forth 'below, prior to July I, 2009 the Friends will deliver $75,000 to the_City in the forin of a'cashier's check or other irIl:;;,ediat~lyayailabI~ funds,. The City will hoidthisamouiJtin a deposit account est,ublished andaccessibleJor the sole purpose offunqing operations and development of - the, Nature Cent~i ("Operatmg and De.velopment Reserve (Deposit Account)"), . ... - .." , , '. . , :; 2, -, . 'City and Fri~nds wiil exerCise'thelr combined best efforts to obtain, prior . ; to}~iy 1, 2009 ,the jiayinentandrelease offundspledgedby the Sempra Energy. . - FouiJdation($125,000), imdby im:anonynious qonorthrough the International.' . cbn1;lllli1iiy FOli:ndationmdRichajcl Kiy ($r:25,000Yfor the b~hefit of the NiJJurc Center, ." This combined amount($250,OOO) shall also ,be held by the City in the Nature CeAter. . ..operating and Development Reserve (DepositAcCo,ll)t)'.' ,'" .: .','.' " ".", .., - ,. '"'' 3, Over thcTransition Period City will operate the Nature Center in su1;>stantial conformance with (a) the approved Transition Period budget attached he~eto ;as Exhibit A andincQrporatedherein by this reference; and (b) abusiness plan developed . with and approved by the Friends,. . .. - . 4, " - . . F~ding for Nature Center operations dunngthe Transition Period shall be CHULA VISTA . NATURE CENTER ~ ~ ~ , i , i i , ! r. i I F i !. i J ! i I I L ! i I i I , J i. i i i , , , I . Fritmds ofthe Chula Vista Nature Center Ken Weimer (Chair) . Supervisor Greg Cox. Zaneta Encarnacion ..nr. Bri,an J~~:if::pb .,Slc~tian.ic K~~stoll. ~ .. , . . ~ ~ -f I . Patricia Maruca ~ Buck Martin'(Presidcnt). Nat:lSha Martmez (VIce Ch.ur) - Manunnc Men-ers (Secn:tar]) Chn:>tlm: ,v a one, ' . T ) L . V' 0 . . Dr lurn.' Wcrgeland If Steve ~Hesel1' Frank Ros~m<Ul' Marlo Salzmann' Donald Smith ( n:usurer . .QUlS l""nnpmllO . '; , . ~ -, d ,,- P . t D .'~ Chull Vista elt 91910-1201 . (619) 409-5900 . Fax (619) 409~591O . www.ChulaVistaNatureCenter',org ~~~iiii~i~~;i~~~~~~4~&:~~)i~~~~~~iR~~~~<~i\f.~4{~'~~~JI[~~[~~~~~~!~1:~~M.~i:~~m1f~~~~~~~& provided by the City from the following sources and in the following priority: (a) First, theOty will expend existing general fund monies and in kind services budgeted for Nature Center operations in fiscal year 2009/20 lOin the aggregate amount of $218,000; (b) Second, the City will expend any and all Nature Center revenues derived from the sources identified in the Transition Period Business Plan; (c) Third, the City will expend monies in the Nature Center Operating and Development Reserve (Deposit Account) ($325,000). City and Friends will meet and confer on a monthly basis in order to monitor and manage the sources and amounts of Nature Center revenues and expenditures. In the event that at any time during the Transition Period it appears that all three of the above- described sources of funds will be exhausted prior to the expiration of the Transition Period, the parties shall meet and confer in order to determine how best to proceed. 5. The parties will continue to negotiate in good faith terms and conditions for a Memorandum of Understanding ("MOU") regarding Nature Center operations per the agreed upon negotiation parameters set forth in the Friends Letter ofIntent dated June 1,2009. In addition, the MOU shall provide that (a) any amounts remaining in the Nature Center Operating Reserve, (b) cash on hand arising from Nature Center operations or donations, and (c) rights to pledged or donated funds (to the extent assignable), shall be transferred to the Friends upon transfer of Nature Center operations from the City to the Friends under the terms of the MOU. 6. In the event that the parties are unable to reach agreement on terms for the MOU by on or before the July I, 2009 target date, either party may elect to extend the negotiations for a period of up to ninety (90) days upon written notice to the other party. In the event that the parties are unable to reach agreement on terms for the MOU by on or before October I, 2009 the parties will meet and confer in order to determine how best to proceed. The Friends Board approved these terms unanimously at their Board meeting on June 15th. On behalf of the City, please acknowledge your acceptance and agreement with the terms of this Letter Agreement by signing where indicated below. Sine rely, ~A8.' " Ken Weimer President, Friends of Chula Vista Nature Center ACKNOWLEDGED AND AG 2 7-5 EXHIBIT A PLAN 3C (711109 10 12/31/09): 6 months at current compensation Add!tlon of $41,6<lO In part lime hourly AdditIon of Lif9 Support Worker/Aquarls! and Admin. AsslstJBookkeeper/Account Clerk on January 1 AddItIon at Oevllopmenl Officer, dev910pmanlllnd marketing GXpllnses July 15 Addlllon of ~ecutlve Director sterling Sep!l a\ 50%.. Jan 1 at 100-16 Projected Admissions Increase: 30% $139,502 Julv 1, 2009 to DOCember 31, 2009 Guest Exoerlen::::e!Edccation SUllervlsor rPmnram Mana,-.erl $47,500 Animal Care/O""rations Suoervisor [prooro.m Mnnaqer) $47.500 A"uarlum SUr'lervisorfRalail Soecialist {prcaram Manacer} $47,500 VoJunleer/::duca:ionSnec'alisl Senior Ollice S.~ec;ali3!l 535.000 Malr1lcnancClWorkar Maill1enllnceSoeciallsl) $43,000 Anuarist(AnlJari;t'\- 529,500 Ground~ke;-;;-or/Cus!odial Workor (Maintana:1ca Worker 533,000 Lila Su.....'ort Workllr/Aauarist (New). ~t"rtlno Jan 1 SO Devcionment OHicer New)-startlnllJul 15 $44,715 Admin AssistantIBookKeeper. startlno Jan 1 SO Executive Director So t1 at SO%, Jill'. 1 at 100% 523,S95 Par1T1rnaHourl' Wages $5.423 CleTh;:-al Part Time Hourlv 510400 BIrd DivIsion Part TImo Hour!v $10.400 Anuarlum DIvIsion Pari Time Hourlv $5200 Education Part Tlmo Hourlv 510,400 Gift Shon Part Time Haurlv $5,200 SUnrlliesand Services $4e,700 Aeimb.loOlhorA"encJesf3u.sl $30,500 Ul~ilies 530.226 Aaimb. to Other Aoencies Grants $1,750 Gl1tSha"Purchases $19.240 Del/olonmenl E;;;-;nll6s-starlinnJUlv15 S18,OOO lJIarketin"Consu!lin -starlinaOct 1 510000 Markotin" Exnenl5O' etartinq JulV 1 525,000 Education Pronramminq Elln/l<lSeS $5,000 Publk;:-Works Sup"ortServrces 549.200 TOTALEX~'ENDITURES .. - _-L~'Y"" , ,:i $634;00'9, .,.,..,':\,t::,::""'i': ....-. -- "''''-. -- ......". ..... ...,..-"...-.... ..-...- -- GA'OSS.MONTHl Y:COSTS:" ";.. ....;.,. :,.'i>..-," ,)],"-';'$1051668"-2'/-,,- -",.," 'C",.,."";"": ...... !j!);'~fg~i~" t~~ij}~~~~,iW~~rR l;VEN 'U~ES() QfI CESgi!!~; :;i:;;U!r.~i1@m ;!S;~, r::!1AT\JB~~~'EUtEi'tt ~:onfE#:S()tj'~'G.E'S:~ :~;;~~~~-\,~Qi~t~~~~S' Rentals $2.575 Class Fees/PronramstBlrthdaV!I $2,575 Admlsslan Fees $181 352 Donations $10 500 Mernbershi~~ $17500 Giants (Port $30 000 Gitl5hoo $45000 Muoller Classroom Renlal $20,000 USFWS Gran!, $16,250 Special E\IOnt~ IBa", Milltary, Ralugo) 522,500 Chula Elementary School District Proqr!lm S13,000 DQ'Joloprnont {Major lndll/lduals, FoundCltlons, carporatlonsl $100,000 CITY CONTRIBUTION 6 MonthsOoeratlonsl $138 000 CITY CONTRIBUTION IUmilias $80,000 Public Works Stl"port $eI"Jlces $49,200 Oporaling and D<\lvolopmerrt Resorvo (Dllpoll\t Accounll $325.000 TOTAL $461,252 $325,000 $267,200 TOTAL ALL REVENUE" $1,053,452 July 1 2009 to Dcc:amber 31 2009 NET-,COST;TO OP.ERATOW NET'MONTHL Y. COSTS::: '.,0,..:- ".$419;44J:',i!hii;'''-' '.~ .;--;S69;907::::;;i}j--!.., ;:,::+!:',. ....,:1.,... C,:";:,';", 'Tolal revenul) does nOllm:rude the rUMS In th9 Operat:ng and Oevelopmenl ReSOlVe (Deposll Accollnt) whK:h has an ava8abte balanc" of $325,000.00. 7-6 c5&Wi~_p~&W~~~':?' .~72a~etz! July 14, 2009 Jim Sandoval, City Manager City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 RE: Notice of 90-Day Extension for Negotiations of MOU between the City of Chula Vista ("City") and the Friends of the Chub Vista Nature Center "Friends") Dear Mr. Sandoval: City and Friends continue to engage in good faith negotiations on terms for the transition of Nature Center operations from the City to the Friends by on or before January 1,2010. However, to date, a final agreement has not been reached. Pursuant to Section 6 of our Letter Agreement dated June 18,2009, the purpose of this letter is to extend our negotiations period for ninety (90) days until October 1,2009. During this period we will continue to work with your staff to finalize terms for the transition, to procure new funding sources, to promote the Nature Center, and to build the capacity of the Friends to operate the facility for years to come. Since ly, "j';~.&"/V.x: ~-?~~ Ken Weimer President, Friends of Chula Vista Nature Center ce. Honorable Cheryl Cox, Mayor Buck Martin, Director of Parks and Recreation CHULA VISTA NATURE CENTER ~~ Friends or the Chu!a Vista Nature Center Ken Weima (ChClir) . Supervisor Greg Cox' Z<meta L!H.:amllcion . Susan Fuller' Dr. Brian Josepb . Steph,mie Kingston' Christine !\'Ialone' Patricia Maruca' Buck tvtarrin (President) . Natasha Martina (Vice Chair) . Marinnnc MClvcrs (Secretary) . Stew Micsc!1 . Frank Roseman' Mario Salzmann' Donald Smith (Treasurer) . Louis Vignapiano . Dr. Larry Wcrgcland, Jr. CI 'V. .1" Natu,'oCenfpr.orC .. "_L l _")' . (610\400-5900 . Fax(G19l40959W . '.\/\'I/W. 1Uld is ~I..,_ ..::-_._~,~..,,:.:~_,!;!;.e ~~~<l1~itlti~;;;'~~;~~ii~~~;;:!~i1r~;1~fi~~~~i~~~~i;fifIift*~~]i~[H1c~Nr,1J!E!3;}?B~:,::~~~':rfi;~Bf;[;J!';D2iiti:Zi%~0);;~~;1t1FJi1;j!i;;j~';Zt:3(2f1Jii!:ii1 , RESOLUTION NO. 2009- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING $163,400 IN UNANTICIPATED REVENUE GENERATED THROUGH OPERATIONS AT THE CHULA VISTA NATURE CENTER AND AMEND THE BUDGET ACCORDINGLY WHEREAS, on April 28, 2009, in light of actual and projected budget shortfalls, with the intent of preserving full-time operations at the Chula Vista Nature Center ("CVNC"), City Council approved Resolution 2009-098, which authorized staff to pursue a public-private partnership with Friends for operation and management of the CVNC; and WHEREAS, the approved operating budget for the CVNC for Fiscal Year 2009/2010 includes no revenue, and limited funding on the expenditure side; and WHEREAS, both funding scenanos stipulated some level of financial support from Friends; and WHEREAS, the Fiscal Year 2009/2010 budget was subsequently approved at the lower (minimal) funding level with no revenue anticipated, which required a signiIicant ti.mding commitment from Friends in order to maintain operations at the facility; and WHEREAS, on June 18,2009, the City and Friends entered into an Interim Agreement that identified sources of funding and the order in which the funding would be used to enable the City to continue to operate the CVNC at full capacity for the first half of the fiscal year; and WHEREAS, pursuant to the Interim Agreement, unanticipated revenue was to be used prior to other funds; and WHEREAS, since entering into the Interim Agreement, the CVNC has continued and is continuing to operate at full capacity, generating such unanticipated, unbudgeted revenue; and WHEREAS, this appropriation of $ I 63,400 is necessary to comply with the conditions of the Interim Agreement, as it will partially offset over-expenditures, which are attributable to the cost of full operations, that have already been made or are projected in the near future; and WHEREAS, it is likely that an additional appropriation will be requested later in the year, to further offset operational costs that the City will incur; and WHEREAS, the additional appropriation will likely tap funds that are currently on deposit with the City from several donors, including Friends. 7-8 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby 1) appropriate $163,400 in unanticipated revenue generated through operations at the Chula Vista Nature Center as follows: $40,200 to Personnel Services, $57,700 to Supplies and Services, $41, I 00 to Other Expenses, $24,400 to Capital, $30,700 to Use of Money & Property, $15,000 to Revenue from Other Agencies, $65,700 to Charges for Services, and $52,000 to Other Revenue; and 2) amend the budget accordingly. Presented by Approved as to form by ~~ Buck Martin Director of Recreation and Nature Center Bart C. Miesfeld City Attorney 7-9 CITY COUNCIL AGENDA STATEMENT ~\~ CllY OF · - (HULA VISTA OCTOBER 20,2009, Item 8 ITEM TITLE: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF A PURCHASE AND SALE AGREEMENT AND RELATED DOCUMENTS WITH RESPECT TO THE SALE OF THE SELLER'S PROPOSITION IA RECEIVABLE FROM THE STATE; AND DIRECTING AND AUTHORIZING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH REVIEWED BY: DIRECTOR OF FINANCE/TREASURE~~ CITY MANAGEu 1th- ASSISTANT CIT~'JAGER ~ 4/STHS VOTE: YES D NO I X I SUBMITTED BY: SUMMARY On July 28, 2009, Governor Arnold Schwarzenegger signed the 2009-2010 California State Budget, pursuant to which cities, counties, and special districts will be required to lend property tax revenues to the State, with the promise ofrepayment in three years. As part of the Budget package, local governments have the opportunity to receive the monies being borrowed by the State upfront through a securitization tinancing oUered by California Communities, a joint powers authority sponsored by the League of California Cities and California State Association of Counties. California Communities will issue bonds securitizing the future payments by the State and remit the proceeds of the bonds to the local governments who opt to participate in the securitization. The State will then repay the bondholders, to payoff the outstanding bonds including interest costs. All costs of the bond issuance will be paid by the State resulting in no costs to the City 8-1 October 20, 2009, Item~ ENVIRONMENTAL REVIEW The Envirorunental Review Coordinator has reviewed the proposed activity for compliance with the California Envirorunental Quality Act (CEQA) and has determined that granting authorization to participate in the bond issuance is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change to the envirorunent; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the actions proposed are not subject to CEQA. RECOMMENDA nON Council approves the resolution. BOARDS/COMMISSION RECOMMENDA nON Not Applicable DISCUSSION The City of Chula Vista has reduced its General Fund operating budget by more than $37 million; from $170.1 million in FY 2006-07 to an adopted balanced budget in FY 2009-10 of $132.8 million. The budget cuts have been substantial and have included layoffs, expenditure cuts in every City Department and an overall reduction in City staffing levels from 1,263.75 to 1,005 employees. In addition to the budgetary cuts, there has been a hiring freeze and administrative freeze imposed by the City Manager on non-essential spending in the two previous fiscal years in an effort to preserVe the City's General Fund reserve level. Unfortunately, the State has been unable to structurally balance its budget and is again taking local revenues. The State passed legislation on July 24, 2009 to borrow 8% of Prop IA property tax revenues and take Redevelopment Agency tax increment revenues in order to balance their budget. The impacts to the City of Chula Vista in fiscal year 2009-10 total $8.5 million composed of $4.3 million of property tax revenue and $4.2 million of Redevelopment Agency tax increment revenue. $ 27,557,313 19,001,820 7,423,698 53,982,831 8% 4,318,626 Property Tax Property Tax In-Lieu of VLF Pro ert Tax In-Lieu of Sales Tax Total Multiplied by 8 Percent Estimated Prop 1A Borrowing $ The subject of this staff report is to address mitigating the impacts of the State's Prop IA borrowing by participating in the California Communities Prop IA securitization that will provide the City with 100% of the borrowed funds with no additional costs incurred as a result of the bond issuance. The State will pay for all costs of issuance as written in to the Prop IA enabling legislation. Mitigating the impacts to the RDA will be brought forward for 8-2 October 20, 2009, Item~ consideration when all options are known and available as discussed in the Council Information Item dated August 6, 2009. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has deternlined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations section 18704.2(a)(I) is not applicable to this decision. CURRENT YEAR FISCAL IMPACT There is no fiscal impact to the General Fund by participating in the secuntIzation program offered through California Communities. The State will pay for all costs of issuance as written in to the Prop IA enabling legislation. By participating in the program, the City can avoid impacting the General Fund reserves by $4.3 million in the current fiscal year and/or avoid additional service impacts. Mitigating the impacts to the RDA will be brought forward for consideration when all options are known and available as discussed in the Council Information Item dated August 6, 2009. ONGOING FISCAL IMPACT There is no anticipated ongoing tlscal impact by approving this action. ATTACHMENTS 1. Resolution 2. Purchase Agreement 3. CA Communities Prop IA Securitization FAQ 4. Proposition IA Facts from Michael Coleman 5. August 6, 2009 Council Information Item Prepared by: Phillip Dcrvis, Assistant Director of Finance. Finance Department 8-3 RESOLUTION NO. ctty'col1NCm -- -,(YifTHE _. ., c:;I1;Y:.QII mIl'J.'eAYf$'tA A RESOLUTION APPROVING THE FOR.c'v1 OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF A PURCHASE AND SALE AGREEMENT AND RELATED DOCU1'vIENTS WITH RESPECT TO THE SALE OF THE SELLER'S PROPOSITION lA RECEIVABLE FROM THE STATE; AND DIRECTING AND AUTHORIZ[NG CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH WHEREAS, pursuant to Section 25.5 of Article XIII of the California Constitution and Chapter 14XXXX of the California Statutes of 2009 (Assembly Bill No. 15), as amended (the "Act"), certain local agencies within the State of California (the "State") are entitled to receive certain payments to be made by the Statc on or before June 30, 20[3, as reimbursement for reductions in the percentage of the total amount of ad valorem property tax revenues allocated to such local agencies during the State's 2009-10 fiscal year (the "Reimbursement Payments"), which reductions have been authorized pursuant to Sections [00,05 and 100.06 of the California Revenue and Taxation Code; ,"""'" ,.''':'"'''" ". C",','"" WHEREAS, the gityj;r2I:,gill!.[,~"!iY;!~ta, a local agency within the meaning of Section 6585(1) of the California Government Code (the "Seller"), is entitled to and has determined to sell all right, title and interest of the Seller in and to its "Proposition IA receivable", as defined in Section 6585(g) of the California Government Code (the "Proposition 1 A Receivable"), namely, the right to payment of moneys due or to become due to the Seller pursuant to Section 25.5(a)(I)(B)(iii) of Article Xl!! of the California Constitution and Section 100.06 of the California Revenue and Taxation Code, in order to obtain money to fund public capital improvements or working capital; WHEREAS, the Seller is authorized to sell or otherwise dispose of its property as the interests of its residents require; . WHEREAS, the California Statewide Communities Development Authority, a Jomt exercise of powers authority organized and existing under the laws of the State (the "Purchaser"), has been authorized pursuant to Section 6588(x) of the California Government Code to purchase the Proposition I A Receivable; WHEREAS, the Purchaser desires to purchase the Proposition I A Receivable and the Seller desires to sell the Proposition lA Receivable pursuant to a purchase and sale agreement by and between the Seller and the Purchaser in the form presented to this City Council (the "Sale Agreement") tor the purposes set forth herein; \VHEREAS, in order to finance the purchase price of the Proposition lA Receivable from the Seller and the purchase price of other Proposition IA Receivables from other local agencies, the Purchaser will issue its bonds (the "Bonds") pursuant to Section 6590 of the California Government Code and an Indenture (the "Indenture"), by and between the Purchaser and Wells Fargo Bank, National Association, as trustee (the 'Trustee"), which Bonds will be payable solely 8-4 from the proceeds of the Seller's Proposition IA Receivable and other Proposition IA Receivables sold to the Purehaser by local agencies in connection with the issuance of the Bonds; WHEREAS, the Seller acknowledges that (i) any transfer of its Proposition lA Receivable to the Purchaser pursuant to the Sale Agreement shall be treated as an absolute sale and transfer of the property so transferred and not as a pledge or grant of a security interest by r . . . . " " . ., .,. ," ' , ., ., ,. : . " . , .. .." m: ':' " I ~ -; ; , ,gil)'jJ.f',9!ill~"Yj,~~ to secure a borrowing, (ii) any such sale of its Proposition I A Receivable to the Purchaser shall automatically be perfected without the need for physical delivery, recordation, filing or further act, (iii) the provisions of Division 9 (commencing with Section 9101) of the California Commercial Code and Sections 954.5 to 955.1 of the California Civil Code, inclusive, shall not apply to the sale of its Proposition lA Receivable, and (iv) after such transfer, the Seller shall have no right, title, or interest in or to the Proposition 1 A Receivable sold to the Purchaser and the Proposition IA Receivable will thereafter be owned, received, held and disbursed only by the Purchaser or a trustee or agent appointed by the Purchaser; WHEREAS, the Seller acknowledges that the Purchaser will grant a security interest in the Proposition IA Receivable to the Trustee and any credit enhancer to secure payment of the Bonds; WHEREAS, a portion of the proceeds of the Bonds will be used by the Purchaser to, among other things, pay the purchase price of the Proposition IA Receivable; WHEREAS, the Seller will use the proceeds received from the sale of the Proposition lA Receivable for any lawful purpose as permitted under the applicable laws of the State; NOW THEREFORE, the <::lty!Gijllli.6il of the~iiYo(~Chtila'Vistii hereby resolves as follows: Section 1. All of the recitals set forth above are true and correct, and this City :~9Jrt6iI hereby so finds and determ ines. Section 2. The Seller hereby authorizes the sale of the Proposition IA Receivable to the Purchaser for a price equal to the amount certified as the Initial Amount (as defined in the Sale Agreement) by the County auditor pursuant to the Act. The form of Sale Agreement presented to the 'Gil)"I~Qul:i.~il is hereby approved. An Authorized Officer (as set forth in Appendix A of this Resolution, attached hereto and by this reference incorporated herein) is hereby authorized and directed to execute and deliver the Sale Agreement on behalf of the Seller, which shall be in the form presented at this meeting. Section 3. Any Authorized Officer is hereby authorized and directed to send, or to cause to be sent, an irrevocable written instruction to the State Controller (the "Irrevocable Written Instruction") notifying the State of the sale of the Proposition lA Receivable and instructing the disbursement pursuant to Section 6588.6(c) of California Government Code of the Proposition IA Receivable to the Trustee, on behalf ofthe Purchaser, which Irrevocable Written Instruction shall be in the form presented at this meeting. 2 8-5 Section 4. The Authorized Officers and such other Seller officers, as appropriate, are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents, including but not limited to, if required, appropriate escrow instructions relating to the delivery into escrow of executed documents prior to the closing of the Bonds, and such other documents mentioned in the Sale Agreement or the Indenture, which any of them may deem necessary or desirable in order to implement the Sale Agreement and otherwise to carry out, give effect to and comply with the ternlS and intent of this Resolution; and all such actions heretofore taken by such officers are hereby ratified, confirmed and approved. Section 5. All consents, approvals, notices, orders, requests and other actions permitted or required by any of the documents authorized by this Resolution, whether before or after the sale of the Proposition 1 A Receivable or the issuance of the Bonds, including without limitation any of the foregoing that may be necessary or desirable in connection with any defactlt under or amendment of such documents, may be given or taken by an Authorized Officer without further authorization by this ;(?~ty.',Cb'G';(cil and each Authorized Officer is hereby authorized and directed to give any such consent, approval, notice, order or request, to execute any necessary or appropriate documents or amendments, and to take any such action that such Authorized Officer may deem necessary or desirable to further the purposes of this Resolution. Section 6. The~!tY:':Q;;iTh.~.n acknowledges that, upon execution and delivery of the Sale Agreement, the Seller is contractually obligated to sell the Proposition IA Receivable to the Purchaser pursuant to the Sale Agreement and the Seller shall not have any option to revoke its approval of the Sale Agreement or to determine not to perform its obligations thereunder. 3 8-6 Section 7. This Resolution shall take effect from and after its adoption and approval. PASSED AND ADOPTED by the .City'.CoilnciT of the :City ofChtifa Vista, State of Cali fornia, this day of ,2009, by the following vote: AYES: NOES: ABSENT: Mayor Attest: ,City <:;lerk Approved as to form: SELLER'S COUNSEL B~//./ Vtrc.7(.j Dated: 10-1").0f' 4 8-7 Authorized Oflicers: APPENDIX A ~JTY"()f~I:DJfdAYt$TA '-1'.",_--:--.-/:'"" .~ " ~:- "':_" -: ..~. ....,.. '-'." .,~" JamesSaridoVal, CitY Mimacrer ""," ..,.~,."-"..,,,,._,,._,..__.... ..,. ,~.__.._.._.,,,.. "._b.~", ~[a;:[(rS~Ih~Cf9oria;;, pir,estQI'b(F i.~~i1'C~ any designee of any of them, as appointed in a written certificate of such Authorized Officer delivered to the Trustee" 8-8 THE A TT ACHED AGREEl\IIENT HAS BEEN REVIEWED AND APPROVED AS TO FORlYI BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALL Y SIGNED UPON APPROVAL BY THE CITY COUNCIL ~- ~--- ~ D f./v7 '1 Bart' . Mlesfeld City Attorney Dated: /0 - 1'5 - Cr PURCHASE AND SALE AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND CALIFORJ.'\l1A STATEWIDE COM1\1UNITIES DEVELOPMENT AUTHORITY FOR PROPOSITION lA RECEIVABLE FROM THE STATE 8-9 .....--.--."':"..........-......_~--~ .mW@E.9HOE'MY1S,~, CALIFORNIA, as Seller and CALTFORL'ITA STATEWIDE COlvlMUNITIES DEVELOPMENT AUTHORITY, as Purchaser PURCHASE AND SALE AGREEMENT Dated as of November 1,2009 E-I 8-10 T ABLE OF CONTENTS Page DEFINITIONS AND INTERPRETA TION ...................................................................... 2 AGREEMENT TO SELL AND PURCHASE; CONDITIONS PRECEDENT ................ 2 PURCHASE PRICE, CONVEYANCE OF PROPOSITION IA RECEIVABLE AND PAYMENT OF PURCHASE PRICE ...................................................................... 3 4. REPRESENTATIONS AND WARRANTIES OF THE PURCHASER .......................... 4 5. REPRESENTATIONS Ai\T[) WARRANTIES OF THE SELLER................................... 5 6. COVENANTS OF THE SELLER..................................................................................... 7 7. THE PURCHASER'S ACKNOWLEDGMENT...............................................................9 8. NOTICES OF BREACH ................................................................................................... 9 9. LIABILITY OF SELLER; INDEMNIFICATION ............................................................ 9 10. LIMITATION ON LIABILITY ......................................................................................10 II. THE SELLER' S ACKNOWLEDGMENT...................................................................... 10 12. NOTICES......... ........ ................ .................. ........ ..... .............. ... ......... .... ......... ... ...... .... ..... 10 13. fuvIENDMENTS ............. .......... ....... ...... ............... ...... ... .... ....... ......... ........... ......... ......... 10 14. SUCCESSORS AND ASSIGNS .....................................................................................10 15. THIRD PARTY RIGHTS ................................................................................................ II 16. PARTIAL INVALIDITY ................................................................................................ II 17. COUNTERPARTS .......................................................................................................... II 18. ENTIRE AGREEMENT.................................................................................................. II 19. GOVERNING LA W........................................................................................................ 12 EXHIBIT A - DEFINITIONS...................................................................................................A.I EXHIBIT B I - OPINION OF SELLER'S COUNSEL......................................................... B 1.1 EXHIBIT B2 - BRINGDOWN OPINION OF SELLER'S COUNSEL............................... B2.1 EXHIBIT CI - CLERK'S CERTIFICATE............................................................................. CI.I EXHIBIT C2 - SELLER CERTIFICATE............................................................................... C2.1 EXHIBIT C3 -BILL OF SALE AND BRlNGDOWN CERTIFICATE................................C3.1 EXHIBIT D - IRREVOCABLE INSTRUCTIONS TO CONTROLLER................................D.I EXHIBIT E - ESCROW INSTRUCTION LETTER................................................................ E.I 1. 2. , ~. 8-11 PURCHASE AND SALE AGREEMENT THIS PURCHASE AND SALE AGREEMENT, dated as of November I, 2009 (this "Agreement"), is entered into by and between: (1) &sIT,yKOr;~!BHtJ[)'A:ili!S;F~, a local agency of the State ofCalifol11ia within the meaning of Section 6585(f) ofthe California Government Code (the "Seller"); and (2) CALlFORt"llA. STATEWIDE COMMUNITIES DEVELOP1vlENT AUTHORITY, a joint exercise of powers authority organized and existing under the laws of the State of Califomia (the "Purchaser"). RECITALS A. Pursuant to Section 25.5 of Article XIII of the Califol11ia Constitution and Section 100.06 of the California Revenue and Taxation Code, local agencies within the meaning of Section 6585(f) of the California Government Code are entitled to receive certain payments to be made by the State of Califol11ia (the "State") on or before June 30, 2013, as reimbursement for reductions in the percentage of the total amount of ad valorem property tax revenues allocated to such local agencies during the State's 2009-10 fiscal year, which reductions have been authorized pursuant to Sections 100.05 and 100.06 ofthe California Revenue and Taxation Code. B. The Seller is the owner of the Proposition IA Receivable (as defined below) and is entitled to and has determined to sell all right, title and interest in and to the Proposition 1 A receivable, namely, the right to payment of moneys due or to become due to the Seller pursuant to Section 25.5(a)(I)(B)(iii) of Article XIII of the Califol11ia Constitution and Section 100.06 of the California Revenue and Taxation Code, in order to obtain money to fund any lawful purpose as permitted under the applicable laws of the State. C. The Seller is authorized to sell or otherwise dispose of its property as the interests of its residents require. D. The Purchaser, a joint exercise of powers authority organized and existing under the laws of the State, has been authorized pursuant to Section 6588(x) of the California Govel11ment Code to purchase the Proposition lA Receivable. E. The Seller is willing to sell, and the Purchaser is willing to purchase, the Proposition lA Receivable upon the terms specified in this Agreement. F. Pursuant to its Proposition IA Receivable Financing Program (the "Program"), the Purchaser will issue its bonds (the "Bonds") pursuant to an Indenture (the "Indenture"), between the Purchaser and \Vells Fargo Bank, National Association, as trustee (the "Trustee"). and will use a portion of the proceeds thereof to purchase the Proposition IA Receivable from the Seller. G. The Purchaser will grant a security interest in such Proposition IA Receivable to the Trustee and each Credit Enhancer to secure the Bonds. 8-12 AGREEMENT NOW, THEREFORE, in consideration of the above Recitals and the mutual covenants herein contained, the parties hereto hereby agree as follows: 1. Definitions and Interpretation. (a) For all purposes of this Agreement, except as otherwise expressly provided herein or unless the context otherwise requires, capitalized tern1S not otherwise defined herein shall have the meanings ascribed to such terms in Exhibit A attached hereto and which is incorporated by reference herein. (b) The words "hereof," "herein," "hereunder" and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement; section and exhibits references contained in this Agreement are references to sections and exhibits in or to this Agreement unless otherwise specified; and the term "including" shall mean "including without limitation." (c) Any agreement, instrument or statute defined or referred to herein or in any instrument or certificate delivered in connection herewith means such agreement, instrument or statute as from time to time may be amended, modified or supplemented and includes (in the case of agreements or instruments) references to all attachments and exhibits thereto and instruments incorporated therein; and any references to a Person are also to its permitted successors and assigns. 2. Agreement to Sell and Purchase: Conditions Precedent. (a) The Seller agrees to sell, and the Purchaser agrees to purchase, on the Closing Date, for an amount equal to the Purchase Price, all right, title and interest of the Seller in and to the "Proposition IA receivable" as defined in Section 6585(g) of the California Government Code (the "Proposition IA Receivable"), namely, the right to payment of moneys due or to become due to the Seller pursuant to Section 25.5(a)(1)(B)(iii) of Article XIII of the California Constitution and Section 100.06 of the California Revenue and Taxation Code. The Purchase Price shall be paid by the Purchaser to the Seller in two equal cash installment payments, without interest (each, an "Installment Payment" and, collectively, the "Installment Payments"), on January 15, 2010, and May 3, 2010 (each a "Payment Date" and, collectively, the "Payment Dates"). The Purchaser shall pay the Purchase Price by wire transfer pursuant to wire instructions provided by the Seller to the Trustee bye-mail to john.deleray@wellsfargo.com or by facsimile to 213-614-3355, Attention: John Deleray. Ifwire instructions are not provided to the Trustee (or if such wire instructions are invalid) payment will be made by check mailed to the Seller's Principal Place of Business. (b) The performance by the Purchaser of its obligations hereunder shall be conditioned upon: (i) Transaction Counsel receiving on or before the date the Bonds are sold (the "Pricing Date"), to be held in escrow until the Closing Date and then delivered to the Purchaser on the Closing Date, the following documents 2 8-13 duly executed by the Seller or its counsel, as applicable: (I) an opinion of counsel to the Seller dated the Pricing Date in substantially the form attached hereto as Exhibit B I, (2) certificates dated the Pricing Date in substantially the forms attached hereto as Exhibit C I and Exhibit C2, (3) ilTevocable instructions to the Controller dated as of the Closing Date in substantially the form attached hereto as Exhibit 0, (4) this Agreement, (5) a certified copy of the resolution of the Seller's 9ffi7i'];oiiffci! approving this Agreement, the transactions contemplated hereby and the documents attached hereto as exhibits, and (6) an escrow instruction letter in substantially the form attached hereto as Exhibit E; (ii) Transaction Counsel receiving on or before the Pricing Date, (1) a bringdown opinion of counsel to the Seller dated as of the Closing Date in substantially the form attached hereto as Exhibit B2. and (2) a bill of sale and bringdown certificate of the Seller (the "Bill of Sale") in substantially the form attached hereto as Exhibit C3: provided that the Purchaser may waive, in its sole discretion, the requirements of Section 2(b)(ii)(1); (iii) the Purchaser issuing Bonds in an amount which will be sufficient to pay the Purchase Price; and (iv) the receipt by the Purchaser of a certification of the County Auditor confirming the Initial Amount of the Proposition IA Receivable pursuant to the Act. (c) The performance by the Seller of its obligations hereunder shall be conditioned solely upon the Purchaser's issuance of the Bonds its execution and delivery of this Agreement, pursuant to which it is legally obligated to pay the Installment Payments to the Seller on the Payment Dates as set forth in this Agreement, and no other act or omission on the part of the Purchaser or any other party shall excuse the Seller from perfOlming its obligations hereunder. Seller specifically disclaims any right to rescind this Agreement, or to assert that title to the Proposition IA Receivable has not passed to the Purchaser, should Purchaser fail to make Installment Payments in the requisite amounts on the Payment Dates. 3. Purchase Price. Convevance of Proposition lA Receivable and Pavment of Purchase Price. (a) Upon pricing of the Bonds by the Purchaser, the Purchaser will inform the Seller that it will pay the Purchase Price in Installment Payments on the Payment Dates. (b) In consideration of the Purchaser's agreement to pay and deliver to the Seller the Installment Payments on the Payment Dates, the Seller agrees to (i) transfer, grant, bargain, sell, assign, convey, set over and deliver to the Purchaser, absolutely and not as collateral security, without recourse except as expressly provided herein, and the Purchaser agrees to purchase, accept and receive, the Proposition IA Receivable, and (ii) assign to the Purchaser, to the extent permitted by law, all present or future rights, if any, of the Seller to enforce or cause the enforcement of payment of the Proposition IA Receivable pursuant to the Act and other 3 8-14 applicable law. Such transfer, grant, bargain, sale, assignment, conveyance, set over and delivery is hereby expressly stated to be a sale and, pursuant to Section 6588.6(b) of the California Government Code, shall be treated as an absolute sale and transfer of the Proposition lA Receivable, and not as a grant of a security interest by the Seller to secure a borrowing. This is the statement referred to in Sections 6588.6(b) and (c) of the California Government Code. 4. Representations and \Varranties of the Purchaser. The Purchaser represents and warrants to the Seller, as of the date hereof, as follows: (a) The Purchaser is duly organized, validly existing and in good standing under the laws of the State of Califomia. (b) The Purchaser has full power and authority to enter into this Agreement and to perform its obligations hereunder and has duly authorized such purchase and assignment of the Proposition lA Receivable by the Purchaser by all necessary action. (c) Neither the execution and delivery by the Purchaser of this Agreement, nor the performance by the Purchaser of its obligations hereunder, shall conflict with or result in a breach or default under any of its organizational documents, any law, rule, regulation, judgment, order or decree to which it is subject or any agreement or instrument to which it is a party. (d) To the best of the knowledge of the Purchaser, no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, public board or body, is pending or threatened in any way against the Purchaser affecting the existence of the Purchaser or the titles of its commissioners or officers, or seeking to restrain or to enjoin the purchase of the Proposition IA Receivable or to direct the application of the proceeds of the purchase thereof, or in any way contesting or affecting the validity or enforceability of any of the Transaction Documents or any other applicable agreements or any action of the Purchaser contemplated by any of said documents, or in any way contesting the powers of the Purchaser or its authority with respect to the Transaction Documents to which it is a party or any other applicable agreement, or any action on the part of the Purchaser contemplated by the Transaction Documents, or in any way seeking to enjoin or restrain the Purchaser from purchasing the Proposition IA Receivable or which if determined adversely to the Purchaser would have an adverse effect upon the Purchaser's ability to purchase the Proposition IA Receivable, nor to the knowledge of the Purchaser is there any basis therefor. (e) This Agreement, and its execution, delivery and performance hereof have been duly authorized by it, and this Agreement has been duly executed and delivered by it and constitutes its valid and binding obligation enforceable against it in accordance with the terms hereof, subject to the effect of bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and other similar laws relating to or affecting creditors' rights generally or the application of equitable principles in any proceeding, whether at law or in equity. (f) The Purchaser is a separate legal entity, acting solely through its authorized representatives, from the Seller, maintaining separate records, books of account, assets, bank accounts and funds, which are not and have not been commingled with those of the Seller. 4 8-15 (g) All approvals, consents, authorizations, elections and orders of or filings or registrations with any governmental authority, board, agency or commission having jurisdiction which would constitute a condition precedent to, or the absence of which would adversely affect, the purchase by the Purchaser of the Proposition 1 A Receivable or the performance by the Purchaser of its obligations under the Transaction Documents to which it is a party and any other applicable agreements, have been obtained and are in full force and effect (h) Insofar as it would materially adversely affect the Purchaser's ability to enter into, carry out and perform its obligations under any or all of the Transaction Documents to which it is a party, or consummate the transactions contemplated by the same, the Purchaser is not in breach of or default under any applicable constitutional provision, law or administrative regulation of the State of California or the United States or any applicable judgment or decree or any loan agreement, indenture, bond, note, resolution, agreement or other instrument to which it is a party or to which it or any of its property or assets is otherwise subject, and, to the best of the knowledge of the Purchaser, no event has occurred and is continuing which with the passage of time or the giving of notice, or both, would constitute a default or an event of default under any such instrument, and the execution and delivery by the Purchaser of the Transaction Documents to which it is a party, and compliance by the Purchaser with the provisions thereof, under the circumstances contemplated thereby, do not and will not conflict with or constitute on the part of the Purchaser a breach of or default under any agreement or other instrument to which the Purchaser is a party or by which it is bound or any existing law, regulation, court order or consent decree to which the Purchaser is subject, 5, Representations and Warranties of the Seller, The Seller hereby represents and warrants to the Purchaser, as of the date hereof, as follows: (a) The Seller is a local agency within the meaning of Section 6585(f) of the California Government Code, with full power and authority to execute and deliver this Agreement and to carry out its terms, (b) The Seller has full power, authority and legal right to sell and assign the Proposition lA Receivable to the Purchaser and has duly authorized such sale and assignment to the Purchaser by all necessary action; and the execution, delivery and performance by the Seller of this Agreement has been duly authorized by the Seller by all necessary action. (c) This Agreement has been, and as of the Closing Date the Bill of Sale will have been, duly executed and delivered by the Seller and, assuming the due authorization, execution and delivery of this Agreement by the Purchaser, each of this Agreement and the Bill of Sale constitutes a legal, valid and binding obligation of the Seller enforceable in accordance with its terms, subject to the etfect of bankmptcy, insolvency, reorganization, moratorium, traudulent conveyance and other similar laws relating to or affecting creditors' rights generally or the application of equitable principles in any proceeding, whether at law or in equity. (d) All approvals, consents, authorizations, elections and orders of or filings or registrations with any governmental authority, board, agency or commission having jurisdiction which would constitute a condition precedent to, or the absence of which would adversely affect, the sale by the Seller of the Proposition I A Receivable or the perfonnance by the Seller of its 5 8-16 obligations under the Resolution and the Transaction Documents to which it is a party and any other applicable agreements, have been obtained and are in full force and etlect. (e) Insofar as it would materially adversely affect the Seller's ability to enter into, carry out and perform its obligations under any or all of the Transaction Documents to which it is a party, or consummate the transactions contemplated by the same, the Seller is not in breach of or default under any applicable constitutional provision, law or administrative regulation of the State of California or the United States or any applicable judgment or decree or any loan agreement, indenture, bond, note, resolution, agreement or other instrument to which it is a party or to which it or any of its propel1y or assets is otherwise subject, and, to the best of the knowledge of the Seller, no event has occurred and is continuing which with the passage of time or the giving of notice, or both, would constitute a default or an event of default under any such instrument, and the adoption of the Resolution and the execution and delivery by the Seller of the Transaction Documents to which it is a party, and compliance by the Seller with the provisions thereof, under the circumstances contemplated thereby, do not and will not conflict with or constitute on the part of the Seller a breach of or default under any agreement or other instrument to which the Seller is a party or by which it is bound or any existing law, regulation, court order or consent decree to which the Seller is subject. (f) To the best of the knowledge of the Seller, no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, public board or body, is pending or threatened in any way against the Seller affecting the existence of the Seller or the titles of its ~iD:\06uncli members or officers to their respective offices, or seeking to restrain or to enjoin the'~the Proposition IA Receivable or to direct the application of the proceeds of the sale thereof, or in any way contesting or affecting the validity or enforceability of any of the Transaction Documents or any other applicable agreements or any action of the Seller contemplated by any of said documents, or in any way contesting the powers of the Seller or its authority with respect to the Resolution or the Transaction Documents to which it is a party or any other applicable agreement, or any action on the part of the Seller contemplated by the Transaction Documents, or in any way seeking to enjoin or restrain the Seller from selling the Proposition IA Receivable or which if determined adversely to the Seller would have an adverse effect upon the Seller's ability to sell the Proposition lA Receivable, nor to the knowledge of the Seller is there any basis therefor. (g) Prior to the sale of the Proposition IA Receivable to the Purchaser, the Seller was the sole owner of the Proposition lA Receivable, and has such right, title and interest to the Proposition lA Receivable as provided in the Act. From and after the conveyance of the Proposition IA Receivable by the Seller to Purchaser on the Closing Date, the Seller shall have no right, title or interest in or to the Proposition IA Receivable. Except as provided in this Agreement, the Seller has not sold, transferred, assigned, set over or otherwise conveyed any right, title or interest of any kind whatsoever in all or any portion of the Proposition IA Receivable, nor has the Seller created, or to the best knowledge of the Seller permitted the creation of, any lien, pledge, security interest or any other encumbrance (a "Lien") thereon. Prior to the sale of the Proposition I A Receivable to the Purchaser, the Seller held title to the Proposition IA Receivable free and clear of any Liens. As of the Closing Date, this Agreement, together with the Bill of Sale, constitutes a valid and absolute sale to the Buyer of all of the Seller's right, title and interest in and to the Proposition I A Receivable. 6 8-17 (h) The Seller acts solely through its authorized officers or agents. (i) The Seller maintains records and books of account separate from those of the Purchaser. CD The Seller maintains its respective assets separately from the assets of the Purchaser (including through the maintenance of separate bank accounts); the Seller's funds and assets, and records relating thereto, have not been and are not commingled with those of the Purchaser. (k) The Seller's principal place of business and chief executive office is located at i%;FoU:jfu~~i1. 'G5iiEiViiita. €alifofuf'!l91'9To. =--...;;:.----~~"'"-~~_.. . .-...............--,-'>. (I) The aggregate amount of the Installment Payments is reasonably equivalent value for the Proposition IA Receivable. The Seller acknowledges that the amount payable to or on behalf of the Purchaser by the State with respect to the Proposition IA Receivable will be in excess of the Purchase Price and the Initial Amount of the Proposition IA Receivable and continns that it has no claim to any such excess amount whatsoever. (m) The Seller does not act as an agent of the Purchaser in any capacity, but instead presents itself to the public as an entity separate from the Purchaser. (n) The Seller has not guaranteed and shall not guarantee the obligations of the Purchaser, nor shall it hold itself out or pennit itself to be held out as having agreed to payor as being liable for the debts of the Purchaser; and the Seller has not received nor shall the Seller accept any credit or financing from any Person who is relying upon the availability of the assets of the Purchaser in extending such credit or financing. The Seller has not purchased and shall not purchase any ofthe Bonds or any interest therein. (0) All transactions between or among the Seller, on the one hand, and the Purchaser on the other hand (including, without limitation, transactions governed by contracts for services and facilities, such as payroll, purchasing, accounting, legal and personnel services and office space), whether existing on the date hereof or entered into after the date hereof, shall be on tenns and conditions (including, without limitation, tenns relating to amounts to be paid thereunder) which are believed by each such party thereto to be both fair and reasonable and comparable to those available on an anns-Iength basis from Persons who are not affiliates. (P) The Seller has not, under the provisions of Section 100.06(b) of the California Revenue and Taxation Code, received a reduction for hardship or otherwise, nor has it requested, made arrangements for, or completed a reallocation or exchange with any other local agency, of the total amount of the ad valorem property tax revenue reduction allocated to the Seller pursuant to Section 100.06(a) of the California Revenue and Taxation Code. 6. Covenants of the Seller. (a) The Seller shall not take any action or omit to take any action which adversely affects the interests of the Purchaser in the Proposition IA Receivable and in the proceeds thereof The Seller shall not take any action or omit to take any action that shall adversely affect 7 8-18 the ability of the Purchaser, and any assignee of the Purchaser, to receive payments of the Proposition IA Receivable. (b) The Seller shall not take any action or omit to take any action that would impair the validity or effectiveness of the Act, nor, without the prior written consent of the Purchaser or its assignees, agree to any amendment, modification, termination, waiver or surrender of, the terms of the Act, or waive timely performance or observance under the Act. Nothing in this agreement shall impose a duty on the Seller to seek to enforce the Act or to seek enforcement thereof by others, or to prevent others from modifying, terminating, discharging or impairing the validity or effectiveness of the Act. (c) Upon request of the Purchaser or its assignee, (i) the Seller shall execute and deliver such further instruments and do such further acts (including being named as a plaintiff in an appropriate proceeding) as may be reasonably necessary or proper to carry out more effectively the purposes and intent of this Agreement and the Act, and (ii) the Seller shall take all actions necessary to preserve, maintain and protect the title of the Purchaser to the Proposition IA Receivable. (d) On or before the Closing Date, the Seller shall send (or cause to be sent) an irrevocable instruction to the Controller pursuant to Section 6588.6(c) of California Government Code to cause the Controller to disburse all payments of the Proposition IA Receivable to the Trustee, together with notice of the sale of the Proposition IA Receivable to the Purchaser and the assignment of all or a portion of such assets by the Purchaser to the Trustee. Such notice and instructions shall be in the form of Exhibit D hereto. The Seller shall not take any action to revoke or which would have the effect of revoking, in whole or in part, such instructions to the Controller. Upon sending such irrevocable instruction, the Seller shall have relinquished and waived any control over the Proposition IA Receivable, any authority to collect the Proposition lA Receivable, and any power to revoke or amend the instructions to the Controller contemplated by this paragraph. Except as provided in Section 2( c) of this Agreement, the Seller shall not rescind, amend or modify the instruction described in the first sentence of this paragraph. The Seller shall cooperate with the Purchaser or its assignee in giving instructions to the Controller if the Purchaser or its assignee transfers the Proposition lA Receivable. In the event that the Seller receives any proceeds of the Proposition IA Receivable, the Seller shall hold the same in trust for the benefit of the Purchaser and the Trustee and each Credit Enhancer, as assignees of the Purchaser, and shall promptly remit the same to the Trustee. ( e) The Seller hereby covenants and agrees that it will not at any time institute against the Purchaser, or join in instituting against the Purchaser, any bankruptcy, reorganization, arrangement, insolvency, liquidation, or similar proceeding under any United States or state bankruptcy or similar law. (I) The financial statements and books and records of the Seller prepared after the Closing Date shall reflect the separate existence of the Purchaser and the sale to the Purchaser of the Proposition IA Receivable. (g) The Seller shall treat the sale of the Proposition IA Receivable as a sale for regulatory and accounting purposes. 8 8-19 (h) From and after the date of this Agreement, the Seller shall not sell, transfer, assign, set over or otherwise convey any right, title or interest of any kind whatsoever in all or any portion of the Proposition I A Receivable, nor shall the Seller create, or to the knowledge of the Seller permit the creation of, any Lien thereon. 7. The Purchaser's Acknowledgment. The Purchaser acknowledges that the Proposition lA Receivable is not a debt or liability of the Seller, and that the Proposition lA Receivable is payable solely by the State from the funds of the State provided therefor. Consequently, neither the taxing power of the Seller, nor the full faith and credit thereof is pledged to the payment of the Proposition I A Receivable. No representation is made by the Seller concerning the obligation or ability of the State to make any payment of the Proposition lA Receivable pursuant to Section 100.06 of the Revenue and Taxation Code and Section 25.5 of Article XIII of the California Constitution, nor is any representation made with respect to the ability of the State to enact any change in the law applicable to the Transaction Documents (including without limitation Section 100.06 of the Revenue and Taxation Code or Section 6588.6 of the Government Code). The Purchaser acknowledges that the Seller has no obligation with respect to any olfering document or disclosure related to the Bonds. 8. Notices of Breach. (a) Upon discovery by the Seller or the Purchaser that the Seller or Purchaser has breached any of its covenants or that any of the representations or warranties of the Seller or the Purchaser are materially false or misleading, in a manner that materially and adversely affects the value of the Proposition IA Receivable or the Purchase Price thereof, the discovering party shall give prompt written notice thereof to the other party and to the Trustee, as assignee of the Purchaser, who shall, pursuant to the lndenture, promptly thereafter notify each Credit Enhancer and the Rating Agencies. (b) The Seller shall not be liable to the Purchaser, the Trustee, the holders of the Bonds, or any Credit Enhancer for any loss, cost or expense resulting from the failure of the Trustee, any Credit Enhancer or the Purchaser to promptly notify the Seller upon the discovery by an authorized officer of the Trustee, any Credit Enhancer or the Purchaser of a breach of any covenant or any materially false or misleading representation or warranty contained herein. 9. Liabilitv of Seller: Tndemnification. The Seller shall be liable in accordance herewith only to the extent of the obligations specifically undertaken by the Seller under this Agreement. The Seller shall indemnify, defend and hold harmless the Purchaser, the Trustee and each Credit Enhancer, as assignees of the Purchaser, and their respective officers, directors, employees and agents from and against any and all costs, expenses, losses, claims, damages and liabilities to the extent that such cost, expense, loss, claim, damage or liability arose out of, or was imposed upon any such Person by the Seller's breach of any of its covenants contained herein or any materially false or misleading representation or warranty of the Seller contained herein. Notwithstanding anything to the contrary herein, the Seller shall have no liability for the payment of the principal of or interest on the Bonds issued by the Purchaser. 9 8-20 10. Limitation on Liability. (a) The Seller and any officer or employee or agent of the Seller may rely in good faith on the advice of counselor on any document of any kind, prima facie properly executed and submitted by any Person respecting any matters arising hereunder. The Seller shall not be under any obligation to appear in, prosecute or defend any legal action regarding the Act that is unrelated to its specific obligations under this Agreement. (b) No officer or employee of the Seller shall have any liability for the representations, warranties, covenants, agreements or other obligations of the Seller hereunder or in any of the certificates, notices or agreements delivered pursuant hereto, as to all of which recourse shall be had solely to the assets of the Seller. II. The Seller's Acknowledgment. The Seller hereby agrees and acknowledges that the Purchaser intends to assign and grant a security interest in all or a portion of (a) its rights hereunder and (b) the Proposition IA Receivable, to the Trustee and each Credit Enhancer pursuant to the Indenture. The Seller further agrees and acknowledges that the Trustee, the holders of the Bonds, and each Credit Enhancer have relied and shall continue to rely upon each of the foregoing representations, warranties and covenants, and further agrees that such Persons are entitled so to rely thereon. Each of the above representations, warranties and covenants shall survive any assignment and grant of a security interest in all or a portion of this Agreement or the Proposition IA Receivable to the Trustee and each Credit Enhancer and shall continue in full force and effect, notwithstanding any subsequent termination of this Agreement and the other Transaction Documents. The above representations, warranties and covenants shall inure to the benefit of the Trustee and each Credit Enhancer. 12. Notices. All demands upon or, notices and communications to, the Seller, the Purchaser, the Trustee or the Rating Agencies under this Agreement shall be in writing, personally delivered or mailed by certified mail, return receipt requested, to such party at the appropriate notice address, and shall be deemed to have been duly given upon receipt. 13. Amendments. This Agreement may be amended by the Seller and the Purchaser, with (a) the consent of the Trustee, (b) the consent of each Credit Enhancer, and (c) a Rating Agency Confirmation, but without the consent of any of the holders of the Bonds, for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement. Promptly after the execution of any such amendment, the Purchaser shall furnish written notification of the substance of such amendment to the Trustee and to the Rating Agencies. 14. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Seller, the Purchaser and their respective successors and permitted assigns. The Seller may not assign or transfer any of its rights or obligations under this Agreement without the prior written consent of the Purchaser. Except as specified herein, the Purchaser may not assign or transfer any of its rights or obligations under this Agreement without the prior written consent of the Seller. 10 8-21 15. Third Partv Rights. The Trustee and each Credit Enhancer are express and intended third party beneficiaries under this Agreement. Nothing expressed in or to be implied from this Agreement is intended to give, or shall be construed to give, any Person, other than the parties hereto, the Trustee, and each Credlt Enhancer, and their permitted successors and assigns hereunder, any benefit or legal or equitable right, remedy or claim under or by virtue of this Agreement or under or by virtue of any provision herein. 16. Partial Invalidity. If at any time any prOVISIon of this Agreement is or becomes illegal, invalid or unenforceable in any respect under the law of any jurisdiction, neither the legality, validity or enforceability of the remaining provisions of this Agreement nor the legality, validity or enforceability of such provision under the law of any other. jurisdiction shall in any way be affected or impaired thereby. 17. Counternarts. This Agreement may be executed in any number of identical counterparts, any set of which signed by all the parties hereto shall be deemed to constitute a complete, executed original for all purposes. 18. Entire Agreement. This Agreement sets forth the entire understanding and agreement of the parties with respect to the subject matter hereof and supersedes any and all oral or written agreements or understandings between the parties as to the subject matter hereof. II 8-22 19. Governing Law. This Agreement shall be governed by and construed In accordance with the laws of the State of California. IN WITNESS WHEREOF, the Seller and the Purchaser have caused this Agreement to be duly executed as of the date first "Tilten above. ,Q~\Q~lGvfsT~, as Seller By: Gf( L CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY, as Purchaser By: Authorized Signatory 12 8-23 EXHIBlT A DEFINITIONS For all purposes of this Agreement, except as otherwise expressly provided herein or unless the context otherwise requires, capitalized terms not otherwise defined herein shall have the meanings set forth below. "Act" means Chapter 14XXXX of the California Statutes of 2009 (Assembly Bill No. 15), as amended. "Bill of Sale" has the meaning given to that term in Section 2(b)(ii) hereof. "Closing Date" means the date on which the Bonds are issued. The Closing Date is expected to be November 19, 2009, but the Purchaser may change the Closing Date by providing e-mail notification to l'iiRacniidQ'i5r[fut@ci:~hti1i\Rrst1rca"@ not later than one day prior to the Closing Date. "Controller" means the Controller of the State. "County Auditor" means the auditor or auditor-controller of the county within which the Seller is located. "Credit Enhancer" means any municipal bond insurance company, bank or other financial institution or organization which is performing in all material respects its obligations under any Credit Support Instrument for some or all of the Bonds. "Credit SUppOlt Instrument" means a policy of insurance, a letter of credit, a stand-by purchase agreement, a revolving credit agreement or other credit artangement pursuant to which a Credit Enhancer provides credit or liquidity support with respect to the payment of interest, principal or purchase price of the Bonds. "Initial Amount" means, with respect to the Proposition 1A Receivable, the amount of property tax revenue reallocated away from the Seller pursuant to the provisions of Section 100.06 of the Revenue and Taxation Code, as certified by the County Auditor pursuant to the Act. "Installment Payments" have the meaning set forth in Section 2(a). "Payment Dates" have the meaning set forth in Section 2(a). "Pricing Date" means the date on which the Bonds are sold. The Pricing Date is expected to be November 10,2009, but the Purchaser may change the Pricing Date by providing e-mail notification to mI<litII'l'i(ro'H'a'6.@<5jlf!ftil'a~ygita'E'l~ not later than one day prior to the Pricing Dare. "Principal Place of Business" means, with respect to the Seller, the location ofthe Seller's principal place of business and chief executive office located at ~,T6~E2iffiIEb'lE, g:Q..m~ ivNfilG~iifciFffITi 1J:l@ro. ".....,....~.,.." '-'~..--.~"'""=<. ..~~ A-I 8-24 "Proposition IA Receivable" has the meaning set forth in Section 2(a). "Purchase Price" means an amount equal to the Initial Amount. "Rating Agency" means any nationally recognized rating agency then providing or maintaining a rating on the Bonds at the request of the Purchaser. "Rating Agency Confirmation" means written confirmation from each Rating Agency that any proposed action will not, in and of itself, cause the Rating Agency to lower, suspend or withdraw the rating then assigned by such Rating Agency to any Bonds. "Resolution" means the resolution adopted by the Gi1jlG]l:ihgl! approving the sale of the Proposition IA Receivable. "State" means the State of California. "Transaction Counsel" means Orrick, Herrington & Sutcliffe LLP. 'Transaction Documents" mean this Agreement, the Bill of Sale, the Indenture, the Bonds and the Irrevocable Instructions For Disbursement of Proposition IA Receivable of GLtYj'ff:Cii',lli(~tli, dated as of the Closing Date. A-2 8-25 EXHIBIT Bl OPINION OF COUNSEL to 'CffiyrOF~OOLqi:~ti)'ST,~ !:--~';'-:.'.~,jL.~~~-.~o..>,;;~~~~:~~~~I::L.;:..,:j.,!.,;,~,-,,:;,- Dated: Pricing Date California Statewide Communities Development Authority Sacramento, California Wells Fargo Bank, National Association Los Angeles, California Re: Sale of Proposition IA Receivable Ladies & Gentlemen: [I have/This Office has] acted as counsel for the Pi'\y,'gfGl'l1i1&pjJtii (the "Seller") in connection with the adoption of that celtain resolution (the "Resolution") of the QjW1<;!,ojl'iiS!] of the Seller (the "Governing Body") pursuant to which the Seller authorized the sale to the California Statewide Communities Development Authority (the "Purchaser") of the Seller's "Proposition lA Receivable", as defined in and pursuant to the Purchase and Sale Agreement dated as of November I, 2009 (the "Sale Agreement") between the Seller and the Purchaser. In connection with these transactions, the Seller has issued certain Irrevocable Instructions For Disbursement of the SelJer's Proposition lA Receivable to the Controller of the State of California (the "Disbursement Instructions") and a Bill of Sale and Bringdown Certificate of the Seller (the "Bill of Sale" and, collectively with the Sale Agreement and the Disbursement Instructions, the "Seller Documents"). Unless the context otherwise requires, capitalized terms used but not otherwise defined herein shall have the meanings given to such terms in the Sale Agreement. [VWe] have examined and are familiar with the Seller Documents and with those documents relating to the existence, organization, and operation of the Seller, the adoption of the Resolution, and the execution of the Seller Documents, and have satisfied ourselves as to such other matters as [Vwe] deem necessary in order to render the following opinions. As to paragraphs numbered 3 and 4 below, [Vwe] have relied as to factual matters on the representations and warranties of the Seller contained in the Sale Agreement. Based upon the foregoing, and subject to the limitations and qualifications set forth herein, [I/we] are of the opinion that: BI-I 8-26 1. The Seller is a local agency, within the meaning of Section 6585(1) of the California Government Code. The Governing Body is the governing body of the Seller. 2. The Resolution was duly adopted at a meeting of the Governing Body, which was called and held pursuant to law and with all public notice required by law, and at which a quorum was present and acting throughout, and the Resolution is in full force and effect and has not been modified, amended or rescinded since the date of its adoption. 3. To the best of [my/our] knowledge, no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, public board or body, is pending or threatened in any way against the Seller (i) affecting the existence of the Seller or the titles of its Governing Body members or officers to their respective offices; (ii) seeking to restrain or to enjoin the sale of the Proposition lA Receivable or to direct the application of the proceeds of the sale thereof, or materially adversely affecting the sale of the Proposition IA Receivable; (iii) in any way contesting or affecting the validity or enforceability of the Resolution, Seller Documents or any other applicable agreements or any action of the Seller contemplated by any of said documents; or (iv) in any way contesting the powers of the Seller or its authority with respect to the Resolution or the Seller Documents or any other applicable agreement, or any action on the part of the Seller contemplated by any of said documents. 4. To the best of [my/our] knowledge, prior to the sale of the Proposition lA Receivable to the Purchaser, the Seller had not sold, transferred, assigned, set over or otherwise conveyed any right, title or interest of any kind whatsoever in all or any portion of the Seller's Proposition lA Receivable, nor had the Seller created, or permitted the creation of, any Lien thereon. 5. The Seller has duly authorized and executed the Seller Documents and, assuming the due authorization execution and delivery of the Sale Agreement by the Purchaser, each Seller Document will be legal, valid and binding against the Seller and enforceable against the Seller in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or laws relating to or affecting creditors' rights, and the application of equitable principles and the exercise of judicial discretion in appropriate areas. No opinion is expressed concerning the obligation or ability of the State of California to make any payment of the Proposition lA Receivable pursuant to Section 100.06 of the Revenue and Taxation Code and Section 25.5 of Article XIII of the California Constitution, nor is any opinion expressed with respect to the ability of the State to enact any change in the law applicable to the Seller Documents (including, without limitation, Section 100.06 of the Revenue and Taxation Code or Section 6588.6 of the Government Code). Furthermore, [I/we] express no opinion as to the value of the Proposition lA Receivable or as to any legal or equitable remedies that may be available to any person should the Proposition IA Receivable have little or no value. No opinion is expressed with respect to the sale of Bonds by the Purchaser. BI-2 8-27 The legal opinion set forth herein is intended for the information solely of the addressees hereof and for the purposes contemplated by the Salc Agreement. The addressees may not rely on it in connection with any transactions other than those described herein, and it is not to be relied upon by any other person or entity, or for any other purpose, or quoted as a whole or in part, or otherwise referred to, in any document, or to be filed with any govemmental or administrative agency other than the Purchaser or with any other person or entity for any purpose without [my/our] prior written consent. In addition to the addressees hereof, each Credit Enhancer and the underwriters of the Bonds may rely upon this legal opinion as if it were addressed to them. [VW e] do not undertake to advise you of matters that may come to [my/our] attention subsequent to the date hereof that may affect the opinions expressed herein. Very truly yours, By: Seller's Counsel BI-3 8-28 EXHIBIT B2 OPINION OF COUNSEL to 'rfI'fi'",YT1;'a.'"'F.. <~:"'iI.ffn;;;I~t..\rr.s'ffi::rl ,~; 'i.J:~~.I.,4-.,V ~.:';,\2:~I1l)"..I..i.tl._~;V.!J: ..u..~ i~.:.-c...'~....:;;;._-..c~.'_""'--=--:'~,_~,,,"-......_;......:.:..:.'a.o:;,.~~.........: Dated: Closing Date California Statewide Communities Development Authority Sacramento, California Wells Fargo Bank, National Association Los Angeles, California Re: Sale of Proposition IA Receivable (Bringdown Opinion) Ladies & Gentlemen: Pursuant to that certain Purchase and Sale Agreement dated as of November I, 2009 (the "Sale Agreement") between theQ!!y..'..~liu!ifNis~ (the "Seller") and the California Statewide Communities Development Authority (the "Purchaser"), this Office delivered an opinion (the "Opinion") dated the Pricing Date as counsel for the Seller in connection with the sale of the Seller's Proposition IA Receivable (as defined in the Sale Agreement), the execution of documents related thereto and certain other related matters. Capitalized terms used but not defined herein shall have the meanings given to such terms in the Sale Agreement. I confirm that you may continue to rely upon the Opinion as if it were dated as of the date hereof. Each Credit Enhancer and the underwriters of the Bonds may rely upon this legal opinion as if it were addressed to them. This letter is delivered to you pursuant to Section 2(b)(ii)(l) of the Sale Agreement. Very truly yours, By: Seller's Counsel B2-1 8-29 EXHIBIT Cl CLERK'S CERTlFICA TE CERTIFICATE OF THE ci"r,'Y:CLBRKl OF ~~..,.- .,..,......,........~.~....J~;l:',...~".~_:.~~, ~~ -~.:'~J"..~;,~! CITYOFiGHUL1\''VISTA, CALIFORNIA ~,~....;~,~ _.-'.._.._._.".,..;...;._..-.....__c~,_'.. Dated: Pricing Date '-~:-~-::'1 "'"----.....~~ "-~'-',..,- ---~"7;:r'~ The undersigned Clt)'<GkrlS of the pitXof,C;:Qul:ftYis~~ (the "Seller"), a local agency of the State of California within the meaning of Section 6585(f) of the California Government Code, does hereby certify that the foregoing is a full, true and correct copy of Resolution No. duly adopted at a '[~@r~] meeting of the 'Ql.tY;G2uif.<ill of said Seller duly and legally held at the regular meeting place thereof on the day of , 2009, of which meeting all of the members of said ~QI!iLC1@jt1J had due notice and at which a quorum was present and acting throughout, and that at said meeting said resolution was adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: I do hereby further certify that I have carefully compared the same with the original minutes of said meeting on file and of record in my office and that said resolution is a full, true and correct copy of the original resolution adopted at said meeting and entered in said minutes and that said resolution has not been amended, modified or rescinded since the date of its adoption and the same is now in full force and effect. I do hereby further certify that an agenda of said meeting was posted at least 72 hours before said meeting at a location in the City of gJlllik~YIS'9, California freely accessible to members of the public, and a brief general description of said resolution appeared on said agenda. Capitalized terms used but not defined herein shall have the meanings given to such terms in the Purchase and Sale Agreement, dated as of November 1, 2009, between the Seller and the California Statewide Communities Development Authority. WITNESS by my hand as of the Pricing Date. By: gLtyl(jl~fg of theG'1t)i.8fg1iiJ1fi'2i~'il, California CI-1 8-30 EXHIBIT C2 SELLER CERTIFICATE SELLER CERTIFICATE Dated: Pricing Date We, the undersigned officers of the ci.\YJQt!:Q!1i1Ta,Yis~ (the "Seller"), a local agency of the State of California within the meaning of Section 6585(f) of the California Government Code, holding the respective offices herein below set opposite our signatures, do hereby certify that on the date hereof the following documents (the "Seller Transaction Documents") were officially executed and delivered by the Authorized Officer or Officers whose names appear on the executed copies thereof, to wit: Document 1. Purchase and Sale Agreement, dated as of November 1, 2009 (the "Sale Agreement"), between the Seller and the California Statewide Communities Development Authority (the "Purchaser"). 2. Irrevocable Instructions For Disbursement of Seller's Proposition I A Receivable to the Controller of the State of California, dated the Closing Date. 3. Bill of Sale, dated the Closing Date. Capitalized terms used herein and not defined herein shall have the meaning given such terms in the Sale Agreement. We further certify as follows: I. At the time of signing the Seller Transaction Documents and the other documents and opinions related thereto, we held said offices, respectively, and we now hold the same. 2. The representations and warranties of the Seller contained in the Seller Transaction Documents are true and correct as of the date hereof in all material respects. 3. The 0I1:Y;i0;6tIIici! duly adopted its resolution (the "Resolution") approving the sale of the Seller's Proposition 1A Receivable at a meeting of the Q!!Yt;cIipne] which was duly called and held pursuant to law with all public notice required by law and at which a quorum was present and acting when the Resolution was adopted, and such Resolution is in full force and effect and has not been amended, modified, supplemented or rescinded. C2-1 8-31 Name. Official Title Signature rmh~S>l.ii'doval,Ci~;Manii=C;~t ,.....~~""""""'--"t)'...:.."""'."..,._ ~..,....,,'-~_.~~_...: "''''''~'''--'''"'''''''-.~'-=I M3'riii'Kacha:doorii'n, f5itectiJ'r'oEF.iililice ---......----"'"'-~...._-~. .... ~ ~..........~~~, genUine. [ HEREBY CERTIFY that the signatures of the officers named above are Dated: Pricing Date C2-2 8-32 By: "-'~"-',"7'~,~ Il ~'''''>'''''':~'~'''''-':'''T'''''~'_''7',~::-, pDi;,Gler!<1 of the .Gify';:ol:_Cn~li1Wj&~, California EXffiBIT C3 BILL OF SALE AND BRINGDOWN CERTIFICATE BILL OF SALE AND BRINGDO\VN CERTIFICATE Pursuant to terms and conditions of the Purchase and Sale Agreement (the "Sale Agreement"), dated as of November I, 2009, between the undersigned (the "Seller") and the California Statewide Communities Development Authority (the "Purchaser"), and in consideration of the obligation of the Purchaser to pay and deliver to the Seller the Purchase Price (as defined in the Sale Agreement), in two equal installment payments to be made on January 15,2010, and May 3, 2010 (collectively, the "Payment Dates"), the Seller does hereby (a) transfer, grant, bargain, sell, assign, convey, set over and deliver to the Purchaser, absolutely and not as collateral security, without recourse except as expressly provided in the Sale Agreement, the Proposition IA Receivable as defined in the Sale Agreement (the "Proposition IA Receivable"), and (b) assign to the Purchaser, to the extent permitted by law (as to which no representation is made), all present or future rights, if any, of the Seller to enforce or cause the enforcement of payment of the Proposition IA Receivable pursuant to the Act and other applicable law. Such transfer, grant, bargain, sale, assignment, conveyance, set over .and delivery is hereby expressly stated to be a sale and, pursuant to Section 6588.6(b) of the California Government Code, shall be treated as an absolute sale and transfer of the Proposition IA Receivable, and not as a grant of a security interest by the Seller to secure a borrowing. Seller specifically disclaims any right to rescind the Agreement, or to assert that title to the Proposition IA Receivable has not passed to the Purchaser, should Purchaser fail to make the installment payments in the requisite amounts on the Payment Dates. The Seller hereby certifies that the representations and warranties of the Seller set forth in the Certificate of the 0ifY'QI~ dated the Pricing Date, the Seller Certificate dated dated the Pricing Date and in the Transaction Documents to which the Seller is a party are true and correct in all material respects as of the date hereof (except for such representations and warranties made as of a specified date, which are true and correct as of such date). Capitalized terms used but not defined herein shall have the meanings given to such terms in the Sale Agreelnent. Dated: Closing Date CIEYiOEGHUJJANISTJ.! T,-...-.......~~.....""_...~.""""'....~~....... By: Authorized Officer C3-1 8-33 EXHIBIT D IRREVOCABLE INSTRUCTIONS TO CONTROLLER IRREVOCABLE INSTRUCTIONS FOR DISBURSElvlENT OF PROPOSITION IA RECEN ABLE OF CLT;Y:;'OE'cHUiJiivISTA' ,_ _,'._'-'_. __~'~._,_.__,~~."-..':_n~~~__ Dated: Closing Date Office of the Controller State of California P.O. Box 942850 Sacramento, California 94250-5872 Re: "<.,.~".~.,.,,,-,- '..,....':.,,,.~'~"'~"":"'I Notice of Sale ofproposition IA Receivable by the ~~tf:OJJLQ.tila.yIi!~ and Wiring Instructions Information Form Dear Sir or Madam: ,.,~_. Pursuant to Section 6588.6(c) of the California Government Code, '<5lfY;:6j'~C;:fui.ti! Yig~ (the "Seller") hereby notifies you of the sale by Seller, effective as of the date of these instructions written above, of all right, title and interest of the Seller in and to the "Proposition IA Receivable" as defined in Section 6585(g) of the California Government Code (the "Proposition IA Receivable"), namely, the right to payment of moneys due or to become due to the Seller pursuant to Section 25.5(a)(l)(B)(iii) of Article xm of the California Constitution and Section 100.06 of the California Revenue and Taxation Code. By resolution, the Seller's :g.itt~Coilit~11 authorized the sale of the Proposition IA Receivable to the California Statewide Communities Development Authority (the "Purchaser") pursuant to a Purchase and Sale Agreement, dated as of November I, 2009 (the "Purchase and Sale Agreement") and a Bill of Sale, dated the Closing Date (as defined in the Purchase and Sale Agreement). The Proposition IA Receivable has been pledged and assigned by the Purchaser pursuant to an Indenture, dated as of November 1,2009 (the "Indenture") between the Purchaser and Wells Fargo Bank, National Association. as Trustee (the "Trustee"). The Seller hereby irrevocably requests and directs that, commencing as of the date of these instructions written above, all payments of the Proposition IA Receivable (and documentation related thereto) be made directly to Wells Fargo Bank, National Association, as Trustee, in accordance with the wire instructions and bank routing information set fOlth below. Please note that the sale of the Proposition lA Receivable by the Seller is irrevocable and that: (i) the Seller has no power to revoke or amend these instructions at any time; (ii) the Purchaser shall have the power to revoke or amend these instructions only if there are no notes of the Purchaser outstanding under the Indenture and the Indenture has been discharged; and (iii) so long as the Indenture has not been discharged, these instructions cannot be revoked or amended by the Purchaser without tlte consent of tlte Trustee. Should D-l 8-34 the Purchaser, however, deliver a written notice to the Office of the Controller stating that: (a) the Seller failed to meet the requirements set forth in the Purchase and Sale Agreement; (b) the Purchaser has not waived such requirements; and (c) the Purchaser has not purchased the Proposition1A Receivable as a result of the circumstances described in (a) and (b) above, then these instructions shall be automatically rescinded and the Seller shall again be entitled to receive all payment of moneys due or to become due to the Seller pursuant to SectiOlI 25.5(a)(1)(B)(iii) of Article XIll of the California Constitution and Section 100.06 of the California Revenue and Ta.xation Code. Bank Name: Bank ABA Routing #: Bank Account #: Bank Account Name: Further Credit To: Bank Address: Bank Telephone #: Bank Contact Person: Wells Fargo Bank, N.A. 121000248 0001038377 Corporate Trust Clearing CSCOA Proposition lA Bonds 707 Wilshire Blvd., 17th Floor MAC E2818-176 Los Angeles, CA 90017 (213) 614-3353 Robert Schneider Please do not hesitate to call the undersigned if you have any questions regarding this transaction. Thank you for your assistance in this matter. Very truly yours, GrfY;Of;C1'It"J1i;W~V:rSTW _......-.....;.~_....;.u.~--'.__'-.ll"-'........................ By: Authorized Officer 0-2 8-35 EXHIBIT E ESCROW INSTRUCTION LETTER ESCROW INSTRUCTION LETTER ,2009 California Statewide Communities Development Authority 1100 K Street Sacramento, CA 95814 Re: Proposition lA Receivable Financing Dear Sir or Madam: The G;itY;:6f((!RITiiW&1ii (the "Seller") hereby notifies you of its agreement to parttclpate in the Calif.ornia Statewide Communities Development Authority Proposition lA Receivable Financing. By adoption of a resolution (the "Resolution") authorizing the sale of its Proposition IA Receivable, the Seller's '0ifji';;{?o1ir!c'TI has agreed to sell to the California Statewide Communities Development Authority (the "Purchaser"), for a purchase price that meets the conditions set forth in the Resolution, all of its right, title and interest in the Proposition lA Receivable. Enclosed herewith are the following documents which have been duly approved and executed by the Seller and which are to be held in escrow by Orrick, Herrington & Sutcliffe LLP, as transaction counsel ("Transaction Counsel"), as instructed below: 1. celtified copy of the Resolution, together with a certificate of the GiDD5r~rK, dated the Pricing Date; 2. the Seller Certificate, dated the Pricing Date; 3. the Opinion of Seller's Counsel, dated the Pricing Date; 4. the Opinion of Seller's Counsel (bringdown opinion), dated the Closing Date; 5. the Purchase and Sale Agreement, dated as ofNovernber 1,2009; 6. the Bill of Sale and Bringdown Certificate, dated the Closing Date; and 7. the Irrevocable Instructions to Controller, dated the Closing Date. The foregoing documents are to be held in escrow by Transaction Counsel and shall be delivered on the Closing Date (as defined in the Purchase and Sale Agreement), provided that such Closing Date occurs on or before December 31,2009. E-l 8-36 Should (i) the Closing Date not occur on or berfore December 31, 2009, or (ii) Transaction Counsel receive prior to the Closing Date written notification from Seller or Seller's Counsel stating, respectively and in good faith, that the representations made in the Seller's Certificate are not true and accurate, or the opinions set forth in the Opinion of Seller's Counsel are not valid, in each case as of the Closing Date and provided that the Purchaser may, in its sole discretion, choose to waive receipt of such representations or opinions, then this agreement shall terminate and Transaction Counsel shall destroy all of the enclosed documents. Very truly yours, .......,."..=-r:_,..,."~. .. i:l'~,7 .~.. ~IT~OE\<1JH![U8'.yIS1;:~ By: Authorized Officer Enclosures cc: Orrick, Herrington & Sutcliffe LLP E-2 8-37 \..o.",~I.:'~irlsp,?1' J: 'I:. :f C'~ % ""i .~t'). .~ - ..;, .,' >- ~.' ."'~ ~ "0 ..~~._.... ~ .;. 0 ~ .$ 'CAUiFORN1A COMI\lUN [TIES lCll......T rOWHS ,\l.iTH{}nlT~ BJlitiiiliX Cl)llifil1r,'lrt/e"S, jil~,'c;::f;.ns in LC(lll GOI't'ru,'};1.'111 Silil,'\' 1988 I. PROPOSITION lA SECURITIZATION FAQ 1 II. OPTIONS FOR OPTING OUT OF THE PROPOSITION lA SECURITIZATION FAQ. 5 III. PROPOSITION lA GENERAL FAQ . 7 I PROPOSITION lA SECURITIZATION FREQUENTLY ASKED QUESTIONS Q: What is Proposition lA securitization? A: On July 28, 2009, the California legislature and Governor Arnold Schwarzenegger passed the state budget and approved a provision allowing the state to borrow 8 percent of the amount of property tax revenue apportioned to cities, counties and special districts. Under the provision, the state will be required to repay those obligations by June 30, 2013. The provision also created an option for California local public agencies to relieve the burden of loaning the state property tax revenues. The provision, called Proposition 1A Securitization, authorizes the California Statewide Communities Development Authority ("California Communities") to purchase the receivable due to local agencies from the State. Q: Who is the California Statewide Communities Development Authority? A: The California Statewide Communities Development Authority is a joint powers authority ("JPA") sponsored by the California State Association of Counties ("CSAC") and the League of California Cities ("League"). California Communities was created by CSAC and the League in 1988 to enable local government and eligible private entities access to low-cost, financing through a variety of pooled and stand-alone finance programs. Q: How does the Proposition lA securitization work? 1 8-38 A: The legislation for the Proposition lA securitization authorizes cities, counties, and special districts to sell their state repayment obligations to California Communities. In a simultaneous transaction, California Communities will issue bonds and remit the cash proceeds to the participating local public agencies. Bondholders will receive their repayment from the state at a later date. The legislation provides that local agencies participating in the securitization program will receive 100% of their respective Proposition lA receivables. Q: Do I need to become a member of California Communities to participate in the program? A: No. All public agencies that are subject to the property tax diversion under Proposition lA are eligible to participate in the program without having to join the California Communities IPA. Q: Is securitization voluntary? What if our local agency chooses not to securitize? A: Yes, this is a voluntary program. Public agencies that do not participate in the Proposition lA Securitization Program can expect to receive repayment plus interest from the state for its obligations by June 30, 2013. The interest rate to be paid by the state to those local public agencies that do not securitize has been set by the Director of Finance at 2.0%. Q: How much will it cost our local agency to participate in the Proposition lA Securitization Program? A: All costs of issuance and interest expense will be paid by the state. This allows agencies to receive 100% of their receivables. Some agencies may incur legal costs if they use an outside attorney for normal legal services. Q: If our local agency securitizes, will we still get the repayment interest from the state? A: No. In the case of securitization, the state will pay the interest due to bondholders and issuance costs associated with the transaction. Only agencies that do not securitize will receive interest from the state in 2013. Q: If my local agency participates in the securitization program, when can my agency expect to receive payment? A: Depending upon timing of enactment of cleanup legislation in the California legislature, California Communities is targeting completion of the securitization transaction to occur in November or early December, 2009, which would result in 50% of the payment to participating local public agencies on January 15, 2010 and 50% on May 3, 2010. Should the legislature not pass the anticipated legislative amendments, California Communities' next opportunity to securitize will likely be March, 2010. 2 8-39 Q: Will our local agency incur any liability by participating in the program? A: No. The bonds issued by California Communities are not obligations of any of the local agencies that participate in the securitization program. The California Communities joint powers agreement expressly provides that California Communities is an entity separate and apart from the participating public agencies, and "its debts, liabilities and obligations do not constitute debts, liabilities or obligations of any party to the joint powers agreement." Participating public agencies are not responsible for any repayment of debt, nor are they named in any of the bond documents. Participating public agencies also will not have any obligations related to compliance with tax or disclosure obligations on the bonds. Q: Are there any restrictions to joining? A: No. California Communities is required to accept any local entity affected by the suspension, regardless of the amount of property tax revenue lost. Q: Can redevelopment agencies participate? A. No. The diversion of tax increment revenues from redevelopment agencies that was a part of the State budget is not a "loan" and was not done under Proposition 1A and therefore redevelopment agencies cannot participate. Q: Has California Communities conducted a program like this before? A: Yes. In 2005, California Communities conducted a similar bond securitization program for local agencies when the state borrowed Vehicle License Fee ("VLF") revenues from cities and counties. California Communities securitized $455 million in VLF payments due from the state to provide advance repayment to 146 participating cities and counties. Q: How is the Proposition lA securitization different from the VLF "gap loan" securitization? A: Under the VLF financing program in 2005, local agencies in California were required to cover the costs of issuance and pay the interest cost. As a result, local agencies only received on average about 93 cents on the dollar from their loans to the state. Under the proposed Proposition 1A Securitization Program, the state will pay for the borrowing interest incurred and the costs of issuance required for each agency to participate, allowing local agencies the ability to receive 100% of their receivables. Q: Who is the financing team for the Proposition lA Securitization Program? A: Bond Counsel: Underwriters: Orrick, Herrington & Sutcliffe, LLP Goldman Sachs, 3 8-40 Program Consultant: Trustee: JP Morgan, Morgan Stanley, De La Rosa, and Stone & Youngberg Greencoast Capital Partners LLC Wells Fargo Bank, NA Q: What is required from our local agency to participate? A: Participating agencies must enroll in the program by going to the online Enrollment Form hosted on the California Communities website www.cacommunities.org/proD1A. Enrolled agencies will received the required documentation from transaction counsel (Orrick, Herrington & Sutcliffe) including a resolution that must be adopted by their governing board. The resolution authorizes the sale of the Proposition lA receivables to California Communities. This resolution together with other signature documents and local agency legal opinions must be submitted no later than November 6, 2009. Q: What is the deadline to participate in the Proposition lA Securitization Program? A: Completed applications including resolutions passed by the board/council, participant documents signed by the authorized parties and legal opinions must be submitted by November 6, 2009. Q: When should I begin the application process? A: It is best to begin the application process as soon as possible. Each local agency is not committed to the program until all executed documentation is returned to bond counsel prior to November 6,2009. So, it is best to begin the process early and have all the relevant documentation prepared. Q: What if I start the process and decide I don't want to participate? Can I pull out of the process half-way through? A: Each local agency is not committed until they return executed documents to bond counsel on or prior to November 6, 2009. Signed documents will be held in escrow by bond counsel and can be withdrawn prior to November 6, 2009. After November 6, 2009, agencies that have submitted the required signed documentation are committed to the transaction. Q: Will our local agency have to go through a credit rating process? How will the credit rating for these bonds be assessed? A: No. The bonds are secured by the State of California's constitutional and statutory obligation to repay the loan within the three-year time period. The ratings on the bonds will be determined by the rating agencies based upon their assessment of the credit worthiness of the transaction and the state's ability to pay. 4 8-41 Q: Are there other ways to securitize aside from the California Communities program? A: California Communities offers the only pooled Proposition lA securitization progra"m and is the only statutorily-authorized option that allows local agencies to securitize and have bond issuance and interest costs paid by the state. Q: Where can I get more information? A: For more information on the Proposition lA securitization program, go to Www.cacommunities.or\l/proplA. Q: How can I sign up for the Program? A: To enroll in the program, submit the online Enrollment Form hosted on the California Communities website www.cacommunities.org/proplA. There is no obligation on behalf of an enrolled local agency to actually participate. Each enrolled local agency must submit a complete set of signed documents with legal opinions by November 6, 2009 in order to be committed to the securitization program. Q: There are several special districts in our County with board members that are the same as the County Board of Supervisors. Does each special district need to enroll in the program, adopt the Sale Resolution and sign documentation? A: Yes. Each local agency must adopt the Sale Resolution. sign the Purchase and Sale Agreement and provide the required signature documents and legal opinions to participate in the Program. Q: Can the Resolution approving the form of Purchase and Sale Agreement be placed on the consent calendar or does it need to be a separate item on the board's agenda? A: The Resolution may be approved on the consent calendar. II OPTIONS TO THE PROPOSITION lA SECURITIZATION FREQUENTLY ASKED QUESTIONS Q: What are my local agency's options other than participating in the Prop lA loan securitization program? A: There are a few options to securitization. 5 8-42 1. If a local agency can absorb the loss in property tax revenue this year, it can decide to wait for the State to repay the obligation by June 30, 2013. 2. Two or more local agencies are able to reallocate or sell the obligation to another local agency. 3. Local agencies can apply for a hardship exemption. If cleanup legislation is enacted, local agencies must first enroll in and fulfill the requirements of the securitization program in order to qualify for a hardship exemption. Q: What is a hardship exemption? A: For those local agencies experiencing extreme fiscal hardship, upon written request, the Director of Finance may decrease the reduction amount. Extreme fiscal hardship may include a local agency that: . is in bankruptcy proceedings; . may be required to seek bankruptcy protection as a result of the reduction in property tax revenue; . does not have sufficient reserves to continue to provide a basic level of core services. If the Director of Finance decreases a local agency's reduction as a result of hardship, the amount of the decrease will be allocated proportionately among other local agencies within the county, not to exceed more than 10 percent of the total reduction amounts for all local agencies within the county. Q: How does my local agency apply for a hardship exemption? A: The final hardship application procedures have not been established and are not expected to be established until after the cleanup legislation is enacted by the legislature. While current language is expected to change, current language states that a written request must be received by the Director of Finance by October 15, 2009. The Director of Finance must approve or reject the requests for a hardship exemption by November 15, 2009. The Director of Finance may not grant decreases in the suspension amount that totals more than 10 percent of the combined total shift of property ta.x per county. Local agencies that believe they would qualify for a hardship exemption should prepare to file a request with the State Director of Finance by October 15, 2009. If the cleanup legislation passes, this deadline may be extended, but under current law October 15 is the deadline. Q: What can I expect to happen ifmy local agency does not participate in the California Communities Proposition lA Securitization Program? A: If your local agency can sustain an 8 percent property tax shift this year, and your local agency chooses not to participate in California Communities' loan securitization program, then the local agency can expect to be repaid directly from the state by June 30, 2013, with interest. 6 8-43 Q: What is the interest rate for those entities that choose not to participate in the Prop lA loan securitization program? A: The interest rate has been determined by the State Director of Finance to be 2.0%. Q: Are there other options? A: If the cleanup legislation passes, a local agency may be able to sell the receivable to another local agency. Q. How would a local agency sell its Prop lA Receivable to another local agency? A: The cleanup legislation is expected to provide procedures for local agencies to sell Proposition lA receivables to another local agency. The cleanup legislation is currently pending approval by the State Senate. III PROPOSITION lA SUSPENSION FREQUENTLY ASKED QUESTIONS Q: When will we see the reduction in our property tax revenues? A: You will see a reduction in your property tax revenues when you receive your property taxes as dispersed by the county auditor. The county auditor is required to shift the 8 percent property tax revenue in two installments, once before January 15, 2010, and again after the first transfer but no later than May 3, 2010. Q: When is the state required to repay the "loan"? A: ABX4 15 indicates the state's deadline to repay the loan is June 30, 2013. Q: And at what interest rate on the "loan"? A: The interest rate for those agencies that do not sell the receivable to the joint powers authority has been set by the Director of Finance at 2.0%. Q: Are there any guarantees that the state will repay us? A: The State Constitution requires that the state provide repayment within a three-year period. ABX4 15 sets the repayment deadline at June 30, 2013. 7 8-44 The repayment is also continuously appropriated in the General Fund and authorizes the State Controller to make the repayment. The repayment is a priority payment behind General Fund obligations to schools and general obligation bonds. If the state has not fully repaid local agencies by June 30, 2013, local agencies or the bond issuer may seek a writ of mandamus to compel the Controller to fully pay the amounts the state is obligated to pay. The petition for writ of mandamus has priority and preference in setting and review and may be filed in the California Supreme Court. Q: Will next year's property ta.xes (2010-11) be affected by this year's Prop lA suspension? A: It is highly unlikely that the Prop 1A protection of2010-11 property taxes could be suspended. The State Constitution indicates that the property tax protection provisions of Proposition 1A cannot be suspended more than twice in a 10-year period (the first year begins with the first suspension). Further, the state cannot suspend Proposition 1A until all previous loans are paid in full. 8 8-45 Ca \ iforo ia Cit~ fin a n c.f.. (.Om Proposition 1A (2004) Facts In November 2004, the voters of California approved Proposition lA, an amendment to the California state constitution intended to restore predictability and stability to local government budgets. The measure: o Strengthens prohibitions against unfunded state mandates by requiring the state to suspend state mandates in any year the Legislature does not fully fund those laws. o Expands definition of state mandate to include transfer of responsibility of a program for which the state previously had full or partial responsibility. o Prohibits the state from . Reducing the local Bradley Burns Uniform Sales & Use Ti", rate or altering its method of allocation. Exception to comply \vith federal 1:1\\7 or an interstate compact. Decreasing VLF revenue from the 0.65% rate without providing replacement funding to cities and counties. . Shifting property taxes from cities, counties or special districts with certain exceptions. . Failing to reimburse to cities and counties for the 1/.;0/0 local sales tax shifted under the triple flip. State Mandate Funding . Proposition lA requires the Legislature: o to either suspend a mandate or appropriate the necessary funds in the budget to reimburse local governments for all costs of complying with the mandate, including those in prior years; o to reimburse local governments when the state mandates that local government assume a greater percentage of the financial responsibility for a program or service previously shared with the state; and o to begin repaying amounts owed to local governments for mandate costs incurred prior to FY 2004-05. Proposition lA does not apply to mandates affecting local schools or mandates related to employee relations and collective bargaining: Local Revenue Protection Proposition lA protects local property tax, sales tax and VLF revenues by prohibiting the Legislature from taking any action that would: o Reduce the local Bradley Burns Uniform Sales & Use Tax rate or alter its method of allocation. o Decrease VLF revenue froln the 0.650/0 rate "\vithout providing replacelnent funding to cities and counties. o Shift property taxes from cities, counties or special districts to the schools or any other non- 2217 Isle Royale Lane' Davis, CA, 95616-6616 Phone' 530 758.3952 . Fax: 530.758.3952 8-46 Proposition 1A Facts -2- Updated December 2007 local government function except under certain circumstances. Sales and Use Tax Rate and Allocation Method. Generally, revenue from the 1 % Bradley Burns Local Sales and Use Tax is allocated to the city in which the sale occurs, or, if in an unincorporated area, the county Proposition lA prohibits the Legislature from reducing the local sales rax rate, or changing the method of allocation of local sales tax revenues. Proposition lA permits the Legislature to change the method of allocation in order to comply with federal law or an inter-state compact. Local Transactions and Use Tax Authority. Proposition lA prohibits the state from restricting the authority of a local government to impose a transactions and use tax pursuant to Revenue and T.nation code Section 7251 or altering the method of allocation of these tax revenues. Local Sales Tax Reduction Under the Proposition 57 Triple Flip. In March 2004, the voters of California approved Proposition 57, the California Economic Recovery Bond Act. Legislative provisions implementing Proposition 57 provide for a swapping of 'j, cent to be used by the state to repay the bonds effective July 1, 2004. The so called "triple flip" consists of 1) reducing the Bradley Burns Local Sales and Use Tax Rate by 'j,% and 'j,% to the state's sales tax rate to fund fiscal recovery bond repayment, 2) repayment to cities and counties with additional local property tax previously allocated to local schools, and 3) repayment to local schools with state general fund. Proposition 1A prohibits the Legislature from extending this reduction in local authority to impose the full Bradley Burns Sales and use tax rate beyond the period necessary to repay the Proposition 57 bonds. In addition, it constitutionally protects the reimbursement to cities and counties under the triple flip. Vehicle License Fee. Proposition 1A requires the Legislature to provide replacement revenue to cities and counties if it reduces the VLF rate below 0.650/0. California Constitution Article XI Section 15 requires that VLF revenue be allocated to cities and counties. The state may charge for administrative coStS (Dl'vlV, Controller) and the Legislature retains the power to change srate law allocating the VLF among cities and counties. Property Tax. Proposition lA prohibits the Legislature from reducing the share of property tax revenues going to the cities, county and special districts in any county, and shifting those shares to the schools or any other non-local go,-ernment function. However, the Legislature may alter the allocation of property taxes among cities, counties and special districts within a county with 2/3 approval in each house. Under specific conditions, the Legislature may suspend the property tax revenue protection provisions of Proposition 1 A. Beginning in FY2008-09, the Legislature may "borrow" not more than 8% of total property tax revenues (currently about $2 Billion) if: 1. the Governor issues a proclamation of "severe fiscal hardship;" 2. the Legislature enacts an urgency statute suspending Proposition 1A property tax protection with 2/3 vote of each house; and 3. the Legislature enacts a law providing for full repayment of the "borrowed funds" plus interest within three years. The Legislature may not enact such a suspension more than twice in any ten year period and may only do so if: 1. the $1.22 billion FY 2003-04 VLF Backfill Gap Loan (Revenue and Taxation Code Sec. 10754.11) has been repaid; 8-47 Proposition 1A Facts -3- Updated December 2007 2. any previous borrowing under this provision has been repaid. 8-48 ~ Proposition 1A Facts -4- Updated December 2007 Frequently Asked Questions 1. What's the basic protection for the property tax in Proposition 1A? Proposition lA prevents the Legislature from reducing the combined property tax shares of cities, special districts, and the count}~ and shifting those shares to the schools or any other non-local govemment function. If, for example, on November 3, 2004, the property ta.." shares of cities, special districts, and the counry of the hypothetical "California County" equaled 60% of property ta..xes collected in that county, the Legislature cannot pass a law that reduces the percentage below 60% except to respond to a significant state 6scal problem. 2. Can the Legislature continue to reallocate property taxes on the local level? Since the passage of Proposition 13, the Legislature has had the power to reallocate property ta..xes among local governments. The most signi6cant use of this authority has been to allocate city, county and special district shares of the property tax to schools through ER..\F and reduce state general fund support for schools. Proposition lA would prevent future reductions of non-school property tax shares, bur the State may transfer property taxes among the cities, county, and special districts in a county with a declaration by the Governor of "sever fiscal hardship" and a 2/3 vote of each house of the State LegisbtUl.e. 3. Can the state reallocate property taxes in order to fund a state mandate? No. The amendments to Section 6 of Article XIII B of the state constitution state specifically: "Ad valorem property tax revenues shall not be used to reimburse a local government for the costs of a new progr::un or higher level of services." 4. Does Proposition 1A allow the State to respond to a significant state fiscal problem? Yes. Beginf'ing in the 2008-2009 fiscal year, the Governor may issue a proclamation that declares that there is a "severe state fiscal hardship" that requires the State to temporarily suspend Proposition lA's basic protection for the property ta..". Next. the Legislature must first adopt a statute with a 2/3 vote that contains a suspension of the basic protection for that fiscal year only. Then it must adopt a separate statute that requires the State to repay cities, counties, and special districts the total amount of propelty tax loss caused by the suspension. The Legislature may not enact such a suspension more than tvJ'ice in any ten year period and may only do so if the FY 2003-04 VLF Backfill Gap Loan ($1.22 billion) and any previous borrowing under trus provision has been repaid. TIle reduction may not exceed 8 percent of the total amount of property tax allocated among local agencies in the previous fiscal year. Currently this percentage is the equivalent of roughly $1.3 billion. 5. When will local agencies be repaid if property tax is taken during a suspension period? No later than the end of the third fiscal year following the fiscal year to which the reduction applies. If the reduction applies in the 2010 11 fiscal year, then repayment must Occur no later than June 30 of 2014. Repayment will be for the "total amount of revenue losses" including interest. 6. Can the Legislature suspend the Proposition 1A protection each time there is a "severe state fiscal hardship?" No. Suspension of the protection may only occur (\I....ice in a ten year period; and only if the VLF Gap Loan amount has been repaid; and if only any priur suspension of property tax has been repaid with interest. 7. Why was the redevelopment property tax increment not explicitly protected in the final version of Proposition 1A submitted to the voters? Key legislators and legislative staff argued that the redevelopment property tax increment is already protected by Article 16, Section 16 of the state constitution. Language in the ballot arguments for Proposition 1A states that the redevelopment increment is ah.eady protected by the state constitution. 8. What's the basic protection for the sales and use tax in Proposition 1A? 8-49 Proposition 1A Facts -J- Updated December 2007 Proposition LA prohibits the State from reducing the sales and use tax rate or changing the method in which sales and use ta..'\: revenues are distributed. TI,e measure prevents the state from restricting city or county authority to impose optional transacrions and use ta..\:es as provided in state law as of November 3, 2004. 9. What about the current suspension of one-quarter cent of the sales tax occurring as a result of the passage of Proposition 57? Does Proposition 1A require the suspension to end when the fiscal recovery bonds art:: repaid? Yes. Proposirion 1:\ prevents the State from extending (he period during \\7 hich the one-quarter cent is suspended; from failing to pay the property ta..\: backfill during the period of suspension; and from failing to restore the full sales ta.."<: rate w hen the bonds are repaid. 10. Can the State take any action that affects the sales and use tax? Yes. The Legislature can chang:: how sales tax is distributed if the change is required by federal law or to participate in an interstate agreement, for example, one that addresses payment of sales ta.." for Internet purchases. In addition, the Legislarure has the authority to authorize !\V'O or more local agencies within a county to exchange property ta.", and sales tax. 11. \Vhat is the basic protection for the VLF in Proposition 1A? Proposition 1A guarantees VLF revenue to cities and counties based upon a rate of 0.65%. The Legislarure decides how much of the revenue funds realignment programs and how much funds general purpose local government programs. If the Legislarure lowers the rate below 0.65%, it must enact a llW that provides for an allocation of replacement funds to cities and counties equal to the difference bet\Veen the revenues received from 0.65% nte and the lower rate. 12. Does Proposition 1A strengthen the requirement to reimburse cities, counties and special districts for the costs of state-mandated programs and services? Yes. Prior to the passage of Proposition lA, the Constirution required the State to reirnburse local governments for state.mandated programs, but the Legislarure sometimes "suspended" mandates, rather than reimbursing local governments. Moreover, the Legislarure has transferred additional responsibility for a state program or service to local governments but has not reimbursed local governments for the additional program costs. Under Proposition lA, beginning in 2005-06, in each fiscal year's budget, the Legislature must either appropriate sufficient funds to reimburse local governments for their costs of complying with a mandate, including those in prior years, or suspend the operation of the mandate for that fiscal year. 13. Does the "fund or suspend" requirement apply to all mandates? No. There are two exceptions. The first is for employee and employee organization related mandates. The second is for costs incurred prior to the 2004-05 fiscal year that have not been paid prior to the 2005-06 fiscal year. These costs may be paid over a period beginning in 2005.06. 14. What happens when the State transfers additional responsibility for a program or a service that the local government already had some responsibility for? Proposition 1:\ defines "mandate" to include a toosfer of additional responsibility for a state program or sef'\,.ice. ~ 8-50 ~{f?- ~ ~~~~ OlY OF CHULA VISTA FINANCE DEPARTMENT COUNCIL INFORMATION DATE: August 6, 2009 TO: Honorable Mayor and City Council VIA: Jim Sandoval, City Manager FROM: Maria Kachadoorian, Director of Finance/Treasurer SUBJECT: Fiscal Year 2009-10 State Budget Impacts to the City ofChula Vista The City of Chula Vista has reduced its General Fund operating budget by more than $37 million; from $170.1 million in FY 2006-07 to an adopted balanced budget in FY 2009-10 of $132.8 million. The budget cuts have been substantial and have included layoffs, expenditure cuts in every City Department and an overall reduction in City staffing levels from 1,263.75 to 1,005 employees. In addition to the budgetary cuts, there has been a hiring freeze and administrative freeze imposed by the City Manager on non-essential spending in the two previous fiscal years in an effort to preserve the City's General Fund reserve level. Unfortunately, the State has been unable to structurally balance its budget and is again taking local revenues. The State passed legislation on July 24, 2009 to borrow 8% of Prop 1 A property tax revenues and take Redevelopment Agency tax increment revenues in order to balance their budget. The impacts to the City of Chula Vista in fiscal year 2009-10 total $8.5 million composed of $4.3 million of property ta'{ revenue and $4.2 million of Redevelopment Agency tax increment revenue. I I; I' ~ . . Property Tax Property Tax In-Lieu of VLF Pro ert Tax In-Lieu of Sales Tax Total Multiplied by 8 Percent Estimated Prop 1A Borrowing $ 27,557,313 19,001,820 7,423,698 53,982,831 8% 4,318,626 $ 8-51 Council Infonnatioll FY 2009-10 State Impacts August 6, 2009 Page 2 of 4 General Fund The borrowing of 8% of property taxes is estimated to be approximately $4.3 million and is to be repaid by the State with interest in fiscal year 2013. The State included language in the bill that would enable the "securitization" of the State's promise to repay local agencies. This will allow local agencies to participate in a bond offering to pay the State. However, the current credit environment combined with the State's poor credit rating makes it unclear whether there would be a market for these bonds. Given the market uncertainty and the expense the City may incur as part of a State bond issuance, the City may instead consider an inter-fund loan to borrow the' funds internally to avoid additional service cuts andJor impacts to the General Fund reserves. This is in compliance with Council's Policy that" in addition to externally financed debt, the City utilizes inter-fund loans whenever possible to reduce borrowing costs or provide for shorter term loans." Cash balances in the Park Acquisition and Development fund (PAD) are estimated at $28.4 million after completion of San Miguel and All Seasons Parks. The PAD fees collected and earmarked toward the 70 Acre Park total $27.3 million with the remaining to fund neighborhood parks. An inter-fund loan is a viable option available to the City to fund the State property tax revenue takeaway. In the FY 2009-2010 City Budget, Council authorized work to begin on the master plan of this park with the expectation that the park may be constructed in stages which will draw down these funds over time. The master plan is currently scheduled to be completed in the summer of 20 II. Another year is scheduled for design leading to an estimated constmction period beginning in the summer of 2012. The State repayment of Prop I A funds to local agencies should occur by 2013. If the State is unable to repay the City, we do not anticipate that the construction of the park will be impacted because the $4.3 million inter-fund loan reprcsents a fraction of the total PAD funds available. The tenns of the State borrowing have yet to be disclosed but the PAD would be repaid at the interest rate currently earned by the City's pooled cash fund at the time of the loan (yielding 2.49% as of June 30, 2009). If the State defaults on its loan from the City, the General Fund would be obligated to repay the PAD fund. Annual scheduled payments trom the General Fund to the PAD fund may begin in fiscal year 2013-14 and would vary depending on the terms of the loan (example: 10 year vs. 15 year payment schedule.) Redevelopment Agencv A total of $2.05 billion is proposed to be taken from California Redevelopment Agencies through a seizure of $1. 7 billion in FY 2009-10, and then an additional $350 million in FY 20 I O- Il. These funds will be deposited in County "Supplemental" Educational Revenue Augmentation Funds (SERAF) to be distributed to meet the State's Proposition 98 obligations to schools. This proposal attempts to use the same mechanism that was rejected by Sacramento Superior Court, when the Court held that a proposed take of $350 million from redevelopment agencies for FY 2008-09. via AB 1389 of 2008. was unconstitutional. The Legislature has added ~ . . ~ 8-52 Council Infonnation FY 2009-10 State Impacts August 6, 2009 Page 3 of 4 new language in an effort to work around the court decision, but redevelopment attorneys believe this effort remains unconstitutional. The impact to the City's Agency is estimated to be approximately $4.2 million in FY 2009-10 and $0.9 million in FY 2010-11. In addition to the available reserves in the Redevelopment Agency the State is providing redevelopment agencies the option to "suspend" all or part of the required 20% set-aside allocation to its Low and Moderate Income Housing Fund (Housing Fund) for fiscal year 2009-10 in order to make the payment to the State. Similarly, an agency may borrow the amount required to be allocated to the Housing Fund in order to make the SERAF payment. This provision applies to fiscal years 2009-10 and 2010-11. Amounts borrowed from the current year allocation to the Housing Fund must be repaid by June 30, 2015. If the Redevelopment Agency fails to repay the Housing Fund by the deadline, the required allocation of tax increment to the Housing Fund is increased to 25 percent for as long as the project area continues to receive tax increment. Based on FY 2009-10 budgeted tax increment revenue of$14.8 million, the 20% set-aside to the Housing Fund is estimated at $2.9 million. The Agency would be able to borrow $2.9 million from the Housing Fund with the remaining $1.2 million to be paid out of existing Agency reserves. The payment is due to the State on May 10 of the applicable year. !~ii!.t, .~ ..;~.'~:FY 2009-10 SERAF' ':~.f::~': " . State RDA Revenue Takeaway $ Low & Mod 20% Set-Aside Net RDA Reserve Impact 4,156,727 (2,945,077) 1,211,650 The Housing Fund appears to be able to sustain the loan to the Agency for two main reasons. First, the nature of providing assistance to the development of affordable housing projects is cyclical. Normally, Housing Fund Reserves are accumulated over a period of years in order to build up sufficient reserves to provide assistance to developers of affordable housing projects. Additionally, the current state of lending and equity markets is making underwriting deals much more difficult. Staff does not foresee any tangible deals closing in the next 12-18 months. The Housing Fund reserves are estimated to be approximately $6.7 million (net of the $2.9 million Low & Mod set aside loan and $1.5 million operating budget for fiscal year 2009-10). Low and Moderate Income Housing Fund Projected Available Fund Balance *_<~ #~~).~-:~~,-,"J$~~\d~~ ".,~'!..~~~. "':'w;;' ~~;.,,~"-~~~=. '~l~~';':~~*ii-~:;>jl D~'cription'~;: ~ ~'t~~"':~Ev rig!10r7Jt~FrY 10:'1"1;~:;-FY:'11..12\t/: i=Y~12:13:~~:FY:13~14~ ~:14;15-"' Beginning Balance 4,411,966 6,692,569 8,155,118 10,414,015 12,734,193 15,116,879 Projected Revenues 6,767,110 3,003,979 3,064,058 3,125,339 3,187,846 3,251,603 Projected Expenditures (1,541,430) (1,541,430) (1,541,430) (1,541,430) (1,541,430) (1,541,430) ERAF Loan (2,945,077) ROA Loan Repayment 736,269 7~6,269 736,269 736,269 Ending Fund Balance 6,692,569 8,155,118 10,414,015 12,734,193 15,116,879 17,563,321 8-53 Council Infonnation FY 2009-10 State Impacts August 6, 2009 Page 4 of4 One option that may become available prior to the May 10 payment date is a loan program offered by the California Communities JPA. Depending on the credit environment there may be an opportunity to finance the SERAF payment through a ten year loan similar to the method used to finance the 2005 and 2006 ERAF payments. There are no details currently available but there is discussion ofthe feasibility of offering the loan program. The fiscal impacts to the General Fund and Redevelopment Agency will vary depending on which option is approved by the City Council in funding the State Takeaways. City staff will return with a formal recommendation to appropriate funds, approve inter-fund loans and/or partici pate in a State loan program once the final details of the State loan programs are provided. At that time the projected tlscal impacts will reflect the recommended option for addressing the State takeaways. If you have any questions, please feel free to contact me at ex!. 3636. 8-54 CITY COUNCIL AGENDA STATEMENT "'""""..- ~ \ 'f:. CITY OF · - - (HULA VISTA 10/20/2009, Item~ ITEM TITLE: FISCAL YEAR 2008/2009 ANNlJAL FINANCIAL STATUS REPORT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING FISCAL YEAR 2008/2009 BUDGET IN ACCORDANCE WITH THE COUNCIL POLICY ON FINAi\fCIAL REPORTING AND TRAi\fSFER AUTHORITY AND APPROPRIATING $345,801 OF OVERREALIZED REVENUE TO THE FIRE DEPARTMENT OVERTIME BUDGET SUBMITTED BY: DIRECTOR OF FINANCE/TREASURER._-lJ k 7--) SUMMARY ASSISTANT CITtr:J AGER CITY MANAGE 4/5THS VOTE: YES 0NO D REVIEWED BY: This report is provided in order to meet the City Charter requirement of publishing the City's Combined Statement of Revenues, Expenditures and changes in Fund Equity (Schedule D) in the local newspaper within 120 days of the close of the tiscal year. The statement is scheduled for publication in the October 23rd issue of The Star News, which is the City's adjudicated newspaper of general circulation. The Council Policy on Financial Reporting and Transfer Authority indicates that all departments complete the fiscal year with a positive balance in each budget summary category (Personnel Services, Supplies and Services, Other Expenses and Capital). In order to comply with the intent of this policy, the transfers discussed below are recommended for approval. All recommended General Fund transfers can be done using existing appropriations. 9-1 OCTOBER 20,2009, Item l Page 2 of 5 ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance 'With the California Environmental Quality Act (CEQA) and has determined that filing of the fiscal year 2008/09 annual financial status report and complying with the Council Policy on Financial Reporting and Budget Transfer Authority is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change to the environment; therefore, pursuant to Section l5060( c )(3) of the State CEQA Guidelines the actions proposed are not subject to CEQA. RECOMiVIENDA nON Council accepts the report and adopt the Resolution. BOARDS/COMMISSION RECOMMENDA nON Not Applicable. DISCUSSION This report is provided in order to meet the City Charter requirement of publishing the City's Combined Statement of Revenues, Expenditures and changes in Fund Equity (Attachment D) in the local newspaper within 120 days of the close of the fiscal year. The statement is scheduled for publication in the October 23rd issue of The Star News, which is the City's adjudicated newspaper of general circulation. We will provide the Council with a complete report of fiscal year 2008/09 financial data upon presentation of the City's audited Comprehensive Annual Financial Report. The General Fund began fiscal year 2008/09 with an available fund balance or reserve of $9.3 million. We are projecting that the ending available fund balance for fiscal year 2008/09 to remain unchanged at approximately $9.3 million. Available fund balance or reserve is generally defined as the balance of resources currently available for appropriation and therefore, does not include legally required reserves, designations for capital improvement projects or reserves for encum brances or advances. Actual Expenditures and Transfers- Out for the year amounted to $140.4 million, supported by Actual Revenues and Transfers-In of $140.5 million, a net effect (increase) to available fund balance of $0.1 General Fund Reserve (July 1) $18 '" " ~ :E 12% $16 ,0% 10% $14 $12 8% . , 6.7% '" $10 " 6% 2; " '" " 0:: "' $8 ~\.. ~f~f $6 ~ ." p.~n _' ~ \t(. ~ ,eo $4 ~: ,,1> I $2 \ '\" I. " , $0 fl--:. ~ ~ 05/06 ~J ',I " . 1$14:9. ~~~ ~~y", 1$ . i,'~;j., ,.,^,.({;<i1'. '~. >.1 '" -+' ;~ ;.~J t-. . '. . ..~ "r"! J:,a7.,l.:~1 "~. ;,}i $9:3'.; ~~,:,jl>] ~jJ.."".t/;i:'I<i..., ';,;>"-''/.. ~-.t ~. .<.,. .... i' -,.t J-~~J ,~~ ~~ D ,~.,~. :''''"'' """', :-b-....... ~"""~ 7'F-C'.~::.;J t?~'.t;l;! 4% 2% 06/07 07/08 08/09 09/10 Fiscal Year 9-2 OCTOBER 20, 2009, Item~ Page 3 01'5 million. Schedules A and B are summary statements of actual revenues and expenditures for fiscal year 2008/09. The graph displays the fiscal year beginning reserve balance compared to prior years. The ending available fund balance has increased to 6.7 percent of the General Fund budget, which is below the Council Policy reserve level of 8 percent. The fiscal year 2008/09 Council Adopted General Fund budget totaled $148.2 million. The mid- year appropriations of approximately $2.8 million with offsetting revenues of $1.5 million for a net cost to the General Fund of $1.4 million were approved during the fiscal year. The General Fund net cost appropriations were for greater than anticipated expenditures for public liability ($1,200,000) and the cost of services provided by the County of San Diego Registrar of Voters ($250,000). Schedule C provides a complete listing of all budget amendments approved for the 2008/09 fiscal year. Attachment D is an unaudited Sunnnary Report of Revenue, Expenditures, and Changes in Fund Equity (excluding the Redevelopment Agency, Trust Funds and the Public Financing Authority) for the fiscal year ended June 30, 2009. Please note that the column titled "General Funds" includes not only the General Fund, but also other Funds such as self-insurance reserves, which are combined with the General Fund for financial reporting purposes. A full analysis of the City's various funds will be provided in the Management's Discussion and Analysis section of the Comprehensive Annual Financial Report. As required by Charter Section 504 (I), this statement will be published in the local newspaper as discussed above. The detailed data supporting this information is quite voluminous, but is available at your request. The published Comprehensive Annual Financial Report (CAFR) including the opinion of the independent auditors should also be available within the next forty-five to 60 days and will be provided to Council. Schedule E provides a complete listing of all budget adjustments between summary accounts approved by the City Manager in accordance with Council Policy 220-02 "Financial Reporting and Transfer Authority" during fiscal year 2008/09. Fiscal Year 2008/09 Request for Budget Transfers For government entities, a budget creates a legal framework for spending during the fiscal year. After the budget is approved there are circumstances, which arise that could require adjustments to the approved budget. At the close of each fiscal year, the Finance Department reviews all departmental and fund budgets to ensure that the fund budget and the departmental sununary budget categories (Personnel Services, Supplies and Services, Other Expenses and Capital) have not been exceeded. For fiscal year 2008/09, budget adjustments are required for the City Attorney and the Fire departments. 9-3 OCTOBER 20,2009, ItemL Page 4 of5 The Council Policy on Financial Reporting and Transfer Authority indicates that all departments complete the fiscal year with a positive balance in each budget summary category (Personnel Services, Supplies and Services, Other Expenses and Capital). Council Policy 220-02 "Financial Reporting and Transfer Authority" was established in January of 1996 and indicates that no department shall end the fiscal year with a negative balance in any budget summary category. In order to comply with the intent of this policy, the transfers discussed below are recommended for approval. All recommended General Fund transfers can be done using existing appropriations. Council has approved similar requests in the past after the close of the fiscal year. When considering this request for budgetary transfers it is important to note the following: . The transfer requests are for fiscal year 2008/09 and do not affect the current fiscal year 2009/1 0 budget. . All recommended departmental transfers for the General Fund can be accomplished with existing appropriations and no additional General Fund appropriations are being requested. There are two transfer requests being made by this staff report. The City Attorney's office requires a transfer of $397,000 from budgetary savings in the Personnel Services category to the Supplies and Services category for greater than anticipated expenditures related to professional services. The Fire department requires a transfer of $207,300 from budgetary savings in the Fire Department's Supplies and Services category to the Personnel Services ($35,000) and Other Expenses ($172,300) categories due to expenditures related to overtime pay and a detlbrillator lease. Vt~.. -'~::;:~~i"'~~~p,,~~-;ff ~,tJH!! ':'?~.l't': 'C..~l:-...,...~::,~ .~",W'-';:o;J\.:t..~"';f~'"' ,~~,",p.",~~': Fund DenartmenUFund Amount CateaolV Discussion General Fund City Attorney 397,000 Supplies and Services Use of legal consultants due to hiring freeze. (397.000) Personnel Services Fire 35,000 Personnel Services Additional overtime expenses (35,000) Supplies and Services 172,300 Other Expenses To budget expenditures in the correct (172,300) Supplies and Services budaet cateaorv --defibrillators. Net InlOact 0 The requested appropriation to the Fire Department's Reimbursed Overtime account is due to reimbursements of$345,801 received for the Department's strike teams. The transfers and appropriation request are just housekeeping items for the fiscal year 2008-09 budget year. 9-4 OCTOBER 20,2009, Iteml Page 5 of 5 DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations section I 8704.2(a)(l) is not applicable to this decision. CURRENT YEAR FISCAL IMPACT Acceptance of this report and adoption of the resolution will have no effect on the General Fund. ON GOING FISCAL IMPACT There is no fiscal impact in future years. ATTACHMENTS Schedule A - General Fund Revenue Schedule B - General Fund Expenditures by Department Schedule C - Generiil Fund Budget Amendments Schedule D - Combined Statement of Revenues, Expenditures and Changes in Fund Equity Schedule E - General Fund Budget Transfers Prepared by: Phillip Davis, Assistant Director of Finance, Finance Department 9-5 Schedule A General Fund Revenues Summary by Revenue Category Fiscal Year 2008-2009 as of June 30, 2009 Property Taxes $30,232,365 $29,258,925 97% Sales and Use Taxes $29,677,977 $25,589,021 86% Franchise Fees $8,732,093 $9,379,964 107% Utility Users $7,122,095 $7,848,557 110% Transient Occupancy $2,752,514 $2,302,412 84% Other Local Taxes Business License Tax 1,267,000 1,166,405 92% Business License Tax Penalty 55,847 45,721 82% Real Property Transfer Tax 841,402 856,658 102% Total Other Local Taxes $2,164,249 $2,068,784 96% Development Revenue Building Permits 282,993 175,661 62% Sewer Connection Permits 0 0 0% Zoning Fees 6,000 21,811 364% Zoning Fees - Deposit Based 1,243,736 912,058 73% Plan Checking Fees 433,418 87,581 20% Subdivision Traffic Sign Fees 0 1,389 0% Total Development Revenue $1,966,147 $1,198,500 61% Licenses and Permits $517,700 $670,962 130% Fines, Forfeitures & Penalties $1,614,250 $2,357,044 146% Revenue from Use of Money & Property $4,163,212 $4,561,487 110% Revenue from Other Agencies State Motor Vehicle License Fees 20,215,866 19,904,630 98% Police Grants 1,822,762 1,803,853 99% Other Agency Revenue 3,545,780 3,263,452 92% Total Revenue from Other Agencies $25,584,408 $24,971,935 98% Charges for Services $6,370,927 $5,972,673 94% Other Revenues Interfund Reimbursements 9,270,539 11,136,368 120% Other 2,712,480 2,019,137 74% Total Other Revenues $11,983,019 $13,155,505 110% Transfers-In $12,272,473 $11,167,169 91% TOTAL REVENUES & TRANSFERS-IN $145,153,429 $140,502,938 97% 9-6 Schedule B GENERAL FUND Expenditure Status by Department as of June 30, 2009 =.~"'.' -1 ..._..,.,..~~~..~._.~~~_ ~"I>lli" -;:;. .' ....,:.i~.....' '~',. ....'.:.. - -;:..J!J....'~'i,~ ".'" ~Am. e..nded ~W.' 'r',"~ ..'':'" ? ," "," ,t, 'tilt'.-""'- t_i.>~~ ", '^ "'... ~.~:t~,. ~lhllr;r_Wb~~, -'., Departmeht~;-.: ,> ,""r!}i.~~.' ".f; .B~~gm:i~ ~ - . Legislative and Administrative City Council 1,311,626 1,095,704 215,922 16.5% Boards and Commissions 14,736 4,350 10,386 70.5% City Clerk 1,221,934 1,027,100 194,834 15.9% City Attorney 2,431,634 2,010,781 420,853 17.3% Administration 4,254,069 4,016,384 237,685 5.6% Information Technology Services 3,897,270 3,393,881 503,389 12.9% Human Resources 6,016,085 5,414,172 601,913 10.0% Finance 2,737,944 2,532,524 205,420 7.5% Total Legislative and Administrative $21,885,298 $19,494,896 $2,390,402 10.9% Non-Departmental $8,442,407 $10,100,128 ($1,657,721) -19.6% Development and Maintenance Services Planning and Building Services 2,626,739 2,416,894 209,845 8.0% Engineering 4,757,076 4,535,744 221,332 4.7% Public Works 24,726,097 22,325,013 2,401,084 9.7% Total Development and Maintenance Services $32,109,912 $29,277 ,651 $2,832,261 8.8% Public Safety Police 48,005,262 45,403,732 2,601,530 5.4% Fire 23,120,886 23,134,284 -13,398 -0.1% Total Public Safety $71,126,148 $68,538,016 $2,588,132 3.6% Culture and Leisure Recreation 6,437,754 5,761,607 676,147 10.5% Library 8,172,342 7,192,979 979,363 12.0% Total Culture and leisure $14,610,096 $12,954,586 $1,655,510 11.3% Total General Fund $148,173,861 $140,365,277 $7,808,584 5.3% . Includes $772,484 in budget carryovers for encumbrances and CIP projects. 9-7 Schedule C General Fund Budget Amendments Per Council Resolutions Fiscal Year 2008-09 as of June 30, 2009 00'" ""~''''. ''''''~''~'.-'' rM",' .,. "'~".' """~'~IIJJ'~.'" -. .o,,~~' ..~.." '~'-"=. ."...""'. .~.,,-~ '~'''''-~' "-""'N'-t""~w - '" ~,f""'S'" . "'t; ~ ~_",.. ..... ",.. ,. ""'nrh',""r,~ :_"'~~-'''l..' . ,,,,"J.! e ~,.".' ~- ,"'~~u~,. ~~;k.~: l'.'7''{:f~ - -""'.t;.x'il~"f~}f~i~j~~~"'i~~r,iwt~74~(l; ~:i'h'?'-~j;;t~.~ Bud et~menaments' '-.i-if;;..:. ,.'i1P&l1!i!>"!?iIi ",Rev.enue,ij']Expend.ture; ..:il1lmpactitJ In Custody Drug Treatment Program $54,642 $54,642 $0 CORR Racing Overtime Reimbursement - Police . 533,431 $27,859 55,572 CORR Racing Overtime Reimbursement.. Fire $40,280 $33,567 56,713 Recreation donation for Fun, Fit, and Free Days $7,100 $7,100 $0 Donation to Animal Care Facility $1,000 $1,000 $0 Addition ofTwo Code Enforcement Officer II Positions $133,000 $133,000 $0 Street Racing Crackdown Grant 5257,931 $257,931 50 Total of 1st Quarter Budget Amendments $527,384 $515,099 $12,285 Reimb from National City for CIP related tasks 551,648 $51,648 50 Donations for youth recreational programming $3,900 $3,900 $0 Additional youth sports camps 536,000 519,293 516,707 Donation from Kohl's to support environmental pro ram $500 $500 $0 Total of 2nd Quarter Budget Amendments $92,048 $75,341 $16,707 Heritage Museum grant $6,000 $6,000 $0 Nature Center access road repairs 519,500 $19,500 $0 Fire overtime reimbursement $302,579 $302,579 $0 Total of 3rd Quarter Budget Amendments $328,079 $328,079 $0 County Registrar of Voters Election Cost $0 $250,000 ($250,000) Unanticipated Awards and Indemnities $0 $1,200,000 ($1,200,000) Additional Staffing for RAPP $120,000 $120,000 $0 PIMA Institute Facility $400,000 $400,000 $0 Capital Improvement Project Closure $0 ($50,313) $50,313 Total of 4th Quarter Budget Amendments $520,000 $1,919,687 ($1,399,687) Year to Date $1,467,511 $2,838,206 $1,370,695) 9-8 City of Chula Vista Combined Summary Statement of Revenues, Expenditures and Changes ill. Fund Equity Year Ended June 30, 2009 - Unaudited Total General Special Debt Sen.rice Capital Enterprise lntemal All Funds Funds Revenue Funds Funds Project Funds Funds Service Funds Total Fund Equity June 30, 2008 $ 352,422,427 $ 34,076,142 $ 44,751,856 S (14,165,957) $ 78,574,059 5 205,299,158 S 3,887,169 Revenues 2008-2009 Taxes 77,989,156 77,400,507 545,000 43,649 Intergovernmental Revenues 42,856,479 24,021,395 13,306,205 2,138,651 3,390,228 Licenses & Permits 2,041,721 1,987,734 53,987 Developer Fees 9,252,547 7,735,744 1,516,803 Charges for Current Services 51,189,469 10,534,277 1,857,311 - 34,958,371 3,839,510 Fines, Forfeitures & Penalties 3,317,661 2,357,044 960,617 Use of Money & Property 11,160,756 5,096,660 1,541,535 96 2,398,470 2,090,311 33,684 Other Revenues 32,594,012 19,127,752 8,803,234 1,329,159 3,297,858 36,009 Total Revenues 230,401,801 140,525,369 34,803,633 96 7,426,732 43,736,768 3,909,203 Transfers In 23,418,482 11,623,552 4,288,388 6,908,969 597,573 Total Revenues and Transfers In 253,820,283 152,148,921 34,803,633 4,288,484 14,335,701 44,334,341 3,909,203 Expenditures 2008-2009: General Government 41,773,119 34,868,538 1,993,016 2,475 231,765 4,677,325 Public Safety 72,863,169 68,365,801 4,485,447 - 11,921 Public Works 69,854,250 26,860,757 18,770,190 411,834 23,811,469 Parks and Recrea tion 6,969,924 5,761,607 1,208,317 Library 7,199,101 7,192,979 6,122 Public Transit 8,246,220 8,246,220 Capital Outlay 18,620,013 104,941 10,668,018 7;847,054 Debt Service: Principal 2,094,384 32,537 2,061,847 - Interest and Fiscal Charges 2,823,669 973,032 1,850,637 - Total Expenditures 230,443,849 144,160,192 35,916,671 3,914,959 9,717,013 32,057,689 4,677,325 Transfers Out 31,093,346 8,915,354 5,000,294 6,908,969 5,758,534 4,477,664 32,531 Total Expenditures and Transfers Out 261,537,195 153,075,546 40,916,965 10,823,928 15,475,547 36,535,353 4,709,856 Contributed Capital 150,015,001 148,237,562 1,777,439 Retained Earnings - Unreserved 66,169,661 64,860,584 1,309,077 Fund Balances: Reserved 38,850,769 20,732,415 6,554,889 777 11,562,688 Unreserved: Designated 70,419,620 3,724,686 823,409 65,871,525 Undesignated 19,250,464 8,692,416 31,260, ??6 (20,702,178) Total Fund Equity June 30,2009 $ 344,705,515 $ 33,149,517 $ 38,638,524 S (20,701,401) $ 77,434,213 $ 213,098,146 $ 3,086,516 The Finance Deparbnent of the City of Chula Vista has compiled the above Statement of Revenues, Expenditures and Changes in Fund Equity for the year ended Jnne 30, 2009. Such amounts are subject to adjustment through the aruma! audit process which is being perfoffi1ed by an independent public accounting firm. This report excludes Trust Funds, the Redevelopment Agency, and the Public Financing Authority. Maria Kachadoorian, Director of Finance Attachment D Note: The column titled "General Funds"include not only the General Fund but also other Funds such as se!f~insurance reserves, which are combined with the General Fund for financial reporting purposes. 9-9 Schedule E General Fund Budget Transfers Approved by Administration Fiscal Year 2008-09 as of June 30, 2009 ~o.epartrri{mf~ ~.ut!F,r9mj,;[i--3il ~~'l1(-<i~El1 S,~~*~~~DescriptionS.~~ 71.'nipunf NONE ~~~~~~~~21t~ ~~~~~~~ ~~ fl'otalrof':~sf(QiJan:erlB llaQet~"fan~fE!rS;:~:1 :r.i~i$0~ Planning & Bldg S&S Utilities Wireless access cards S4,870 Planning & Bldg Other Expenses Utilities Wireless access cards $5,570 Fire Personnel S&S Fire Chief recruitment 515,000 ~Wq~~~~~} ~~~~~ ~~f-f;~r~~ (fcQfiiIZOfi2iio"QiTarti'-r;lB ujjget~l1ra nsfers:l;~ '.$25;'4.405 Recreation S&S Other Expenses Credit card fees and bus costs $13,500 flll'~~~~4.1lt~ ~~~g~ ~~~~ il"j5taFof..':3;:d[Qiia:n:er.8uaiietI.Trari'sfiifS~BJ ,$.13~5.Qo.i Recreation S&S Other Expenses Bus transportation costs $9,000 Administration S&S Utilities Phone Service $260 Information Teat S&S Personnel Hourly Staffing $3,100 Human Resourc S&S Capital Purchase of Masks $200 Police S&S Other Expenses Credit Card fees $3,400 Library S&S Other Expenses Credit Card fees $400 ,~1k'1\li'~~'i.11lj i~~$tc:.~m~~~ ~~~? J:o.ta[OfL4ttitQuii~tef:;'BuClge~liransfe~~ !t16~360;j Year to Date $55,300 9-10 RESOLUTION NO. 2009- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING FISCAL YEAR 2008-2009 BUDGET IN ACCORDANCE WITH THE COUNCIL POLlCY ON FINANCIAL REPORTING AND TRANSFER AUTHORITY AND APPROPRIATING $345,801 OF OVERREALlZED REVENUE TO THE FIRE DEPARTMENT OVERTIME BUDGET WHEREAS, the Council Policy on Financial Reporting and Transfer Authority indicates that all departments complete the fiscal year with a positive balance in each budget summary category (Personnel Services, Supplies and Services, Other Expenses and Capital); and WHEREAS, the Council Policy established in January 1996 indicates that no department shall end the fiscal year with a negative balance in any budget summary category; and WHEREAS, the City Attorney's office ($397,000) exceeded its budget in the Supplies and Services budget category due to higher than anticipated professional services costs; and WHEREAS, the savings realized in the City Attorney's Personnel Scrvices budget category exceeded $397,000; and WHEREAS, the Fire Department exceeded its Personnel Services budget category ($35,000) due to additional overtime expenditures and Other Expenses budget category ($172,300) due to expenditures associated with the lease purchase of dctibrillators; and WHEREAS, the savings realized in the Fire Department's Supplies and Services budget category exceeded $207,300; and WHEREAS, the recommended transfers between the General Fund departments will be covered by savings achieved within existing budgets. WHEREAS, the Fire Department has received $345,801 in overtime reimbursements for Strike Teams sent to .Cal Fire; and WHEREAS, the Fire Department's Reimbursed Overtime account has exceeded the budgeted amount by $343,461, and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista amends the City's fiscal year 2008-2009 budget in accordance with the Council Policy on Financial Reporting and Transfer Authority and appropriates $345,80 I of overrealized revenue to the Fire Department's Reimbursed Overtime account. Approved as to form bv ./L ~ peA Bart Miesfeld City Attorney Presented by Maria Kachadoorian Director of Finance/Treasurer 9-11 CITY COUNCIL ACENDA STATEMENT ;s\lft,. CITY OF -=::& (HUlA VISTA ITEM TITLE: SUBMITTED BY: REVIE,VED BY: OCTOBER 20, 2009, Item~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA (1) ACCEPTING THE 2008 GREENHOUSE GAS EMISSIONS INVENTORY REPORT, (2) DIRECTING THE CITY'S CLIMATE CHANGE WORKING GROUP TO DEVELOP A CLIMATE ADAPTATION STRATEGY FOR FUTURE COUNCIL CONSIDERATION, AND (3) APPROVING CHULA VISTA'S ONGOING INVOLVEMENT IN INTERNATIONAL EFFORTS TO SHARE INFORMATION AND EXPERIENCES REGARDING CLIMATE ADAPTATION PLANNING AS OUTLINED IN THE CLIMATE ADAPT A TION PLANNING ROADMAP OJR. OF CONSER~l!!N & ENV. IRONMENT AL SERVICES ~ CITY MANAGER I ____ ~ ASSISTANT CITY ANAGER <;; ) 4/5THS VOTE: YES D NO I X I SUMNL~Y As part of Chula Vista's climate protection program, staff has completed a greenhouse gas (GHG) emissions inventory for 2008 to identify emission sources and to guide policy decisions. The 2008 GHG Emissions Inventory, which utilizes a new State-supported reporting protocol and newly-available emission coefficients, indicates that annual citywide GHG levels have increased by 29% compared to 1990. However, per capita and per housing unit levels in Chula Vista are approximately 25% and 17% below 1990 levels, respectively. GHG emissions from municipal sources (i.e. operations, facilities, and vehicle fleet) in 2008 are approximately 43% below 1990 levels. Although transportation levels ami energy use in the community have generally increased in every inventory year since 1990, the stabilization of community-wide emissions and the decrease of municipal operation emissions (compared to results previously reported in the 2005 GHG Emissions Inventory) are mainly due to new emission coefficients. To meet the City's commitment to reduce emissions 20% below 1990 levels, staff has begun initial implementation of the Council-approved seven climate protection measures and is actively pursuing new funding sources to ensure their long-term, full 10-1 OCTOBER 20, 2009, Item~ Page 2 of 5 implementation. To complement these climate change mItIgation efforts, staff is recommending that the City begin to assess vulnerabilities to climate changes and strategize opportunities to adapt to the impacts. As outlined in the climate adaptation planning roadmap, a Climate Change Adaptation Strategy would be developed over the next year through a community-driven process and presented to City Council for formal review and consideration in the future. 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 8 categorical exemption pursuant to Section 15308 [Actions by Regulatory Agencies for Protection of the Environment] of the State CEQA Guidelines. Thus, no further environmental review is necessary. RECOMMENDATION City COlmcil adopt the resolution. BOARDS/COMMISSION RECOMMENDA nON Staff presented the 2008 Greenhouse Gas Emissions Inventory and the roadmap for developing a Climate Change Adaptation Strategy to the Resource Conservation Commission (RCe) on September 14, 2009. The RCC formally accepted the inventory report and unanimously supported the proposed climate adaptation planning efforts. DISCUSSION Chula Vista has historically been a regional and national leader in climate protection policies and programs designed to reduce greenhouse gas (GHG) or "carbon" emissions. The City has participated in the United Nations Framework Convention on Climate Change, ICLEI Cities for Climate Protection Campaign, and the Conference of Mayor's Climate Protection Agreement. Through this past involvement, the City developed a Carbon Dioxide Reduction Plan (2000) and new Climate Protection Measures (2008) to improve energy efficiency and water conservation, expand renewable energy systems, convert to more fuel efficient and alternative fuel vehicles, and design transit-friendly, walkable communities. Both the Carbon Dioxide Reduction Plan and new Climate Protection Measures constitute the City's comprehensive Climate Action Plan which will assist the City in reaching its greenhouse gas emissions reduction commitment of 20% below 1990 levels by 2010. To help identify emission sources, assess program progress, and guide policy decisions, the Department of Conservation & Environmental Service staff has completed a GHG emissions inventory for Calendar Year 2008. The 2008 GHG Emissions Inventory utilizes the new Local Govemment Operations Protocol which was jointly developed by ICLEI, California Climate Action Registry, and the California Air Resources Board to assist public agencies in quantifying their climate impact and incorporates newly- available emission coefficients. As a result, staff has recalculated emission levels for 1990 and 2005 inventories with these new, more region-specific coefficients to ensure an "apples to apples" comparison and to more confidently determine emission trends over 10-2 OCTOBER 20, 2009, !tem~ Page 3 of 5 time. In addition, Chula Vista recently joined the California Climate Action Registry, which is the State's premier voluntary greenhouse gas reporting system. Participation in the California Climate Action Registry complements the City's other climate protection efforts by documenting GHG emissions as it relates to Assembly Bill 32's (California Global Warming Solutions Act of 2006) statewide reduction targets and prepares the City for potential carbon trading opportunities in the future. The City of Chula Vista is the first local government in San Diego County to successfully report its GHG emissions through the California Climate Action Registry. The 2008 GHG Emissions Invemory indicates that Chula Vista's annual citywide GHG levels have increased to 934,630 metric tons of Carbon Dioxide Equivalent (MT C02e) with expansion of its housing stock and population. The two greatest sources of emissisns were from the transportation sector (44%) and residential energy use sector (29%). Compared to 1990, Chula Vista's citywide GHG emissions have increased by 29%, however per capita and per housing unit levels are approximately 25% and. 17% below 1990 levels, respectively. It should be noted that a large reason. for the stabilization of community-wide emissions (compared to the 35% value previously reported in the 2005 GHG Emissions lnvemory) is due to the new emission coefficients. Transportation levels and energy use in the community have generally increased in everv inventory year since 1990. In order to achieve the City's citywide reduction target; annual community emissions would be required to be reduced by at least 352,997 metric tons C02e. Greenhouse gas emissions from municipal sources (i.e. operations, facilities, and vehicle fleet) in 2008 totaled 16,817 MT C02e. Similar to the community inventory, the majority of emissions were from the vehicle fleet (46%) and building energy use (34%). In comparison to 1990 levels, GHG emissions from municipal operations decreased by 43% or 12,807 metric tons COle surpassing the City's 20% reduction goal. This accomplishment was largely possible due to the retrofitting of traffic signals in the 1990s with energy-saving LED technologies. Although building energy use and fleet fuel consumption has decreased slightly since the last inventory, the dramatic decrease of municipal operation emissions (compared to the 18% value previously reported in the 2005 GHG Emissions Inventol:V) is mainly due to new emission coefficients. The City has been continuing its carbon reduction efforts over the last 12 months by beginning partial implementation of the seven new Climate Protection Measures based on available funding. Staff has been able to secure one-time funding opportunities to install more energy efficient and renewable energy technologies at municipal buildings and replace a variety of fleet and transit vehicles with more efficient models. At a community level, Conservation & Environmental Services staff has used its San Diego Gas & Electric (SDG&E) Local Government Partnership to support energy efficient lighting exchanges and free energy and water assessment services for residents and businesses. Likewise, the Development Services Department has modified their plan check reviews and drafted new ordinances to place additional emphasis in incorporating energy efficiency and renewable energy opportunities L'lto new construction and major renovation projects. 10-3 OCTOBER 20, 2009, ItemR Page 4 of 5 To ensure long-term, full implementation of the seven measures, the City must finalize either an increase in Energy Franchise Fees paid by SDG&E or establish a Local Fee Authority with the assistance of State legislators. In addition to supporting existing carbon-reducing programs, the new revenue sources would support implementation bf two new key programs - a mandatory Green Building Standard requiring enhanced energy efficiency levels and a home energy efficiency and solar conversion program (known as the Home Upgrade, Carbon Downgrade program). The Green Building Standard will help to lessen future emission increases from new greenfield development and maximize efficiency of redevelopment projects. The Home Upgrade, Carbon Downgrade program will immediately and drastically reduce the emissions associated with existing building stock's energy use, water consumption, and wastewater generation. These new programs are imperative to meeting Chula Vista's commitment of reducing citywide emissions 20% below 1990 levels. It is staff s top priority to frnalize the Energy Franchise Fees and Local Fee Authority funding mechanisms over the next 6 months to present to City Council' for consideration. Despite current efforts both regionally and globally to reduce carbon emissions, some level of local climate change is expected to occur resulting in escalating temperatures and heat waves, changing precipitation, rising sea levels, and increasing extreme natural events. In response, government leaders are beginning to assess their community's vulnerabilities to climate impacts and "adapt" their policies and programs accordingly. By minimizing the risks associated with these climate impacts now, future costs can be avoided and/or minimized. In May 2009, the City of Chula Vista, represented by Councilmember Bensoussan, was a sponsored guest at an International Conference on Climate Adaptation hosted by the Andalusian government in Spain. Conference participants, which also included the State of Califomia, City of San Diego, City of Jerez de la Frontera, and City of Seville, discussed opportunities for capacity-building and the sharing of technical expertise in climate policy development and implementation. Representatives from the various governments also drafted a "Seville Declaration" which outlined future collaboration priorities between the participants in climate adaptation plarrning. In response, City staff has created a roadmap for Chula Vista's development of a Climate Change Adaptation Strategy. As proposed, the Climate Change Working Group (CCWG), comprised of residents, businesses, and community group representatives, would review and evaluate various adaptation strategies through an open and transparent process. The CCWG would be augmented to include additional members to broaden the group's technical background and community perspective. Potential new members would be vetted through the Resource Conservation Commission and the City Council's [CLEI representatives. CCWG would be supported by the Conservation & Environmental Services Department staff and a group of Ex Officio members providing technical and public policy expertise. In addition to their publicly-noticed meetings, the CCWG would host at least 2 public workshops on climate adaptation plarrning to solicit additional community feedback. The CCWG would return to City Council by November 10-4 2010 with their recommendations for a Climate Change Adaptation Strategy for formal review and consideration. In addition to developing a climate adaptation plan, the City of Chula Vista would commit to participating in annual conferences and host a conference in November 20 II as a signatory to the "Seville Declaration." Each signatory would also lead an international panel to develop sample adaptation strategies for a particular topic area. The City of Chula Vista has been asked to lead efforts related to climate change impacts on ecosystems and biodiversity (especially wetlands). DECISION MAKER CONFLICT Staff has determined that the recommendations requmng Council action are not site- specific and consequently the 500-foot rule found in California Code of Regulations section I 8704.2(a)(1) is not applicable to this decision. CURRENT YEAR FISCAL IMPACT Current partial implementation of the seven climate protection measures is being funded through existing departmental budgets and external funds, thus not creating a new impact to the General Fund. Development of a Climate Change Adaptation Strategy and participation in annual conferences under the "Seville Declaration" over the next 2 years are estimated to cost $14,500. Staff would rely on external funding sources (such as grants and donations) to cover these costs, thus there would also be no new General Fund impact. Staff time associated with administering the reconvened Climate Change Working Group would be supported through the Department of Conservation & Environmental Services' existing annual budget. ONGOING FISCAL IMPACT Full, long-term implementation of the climate protection measures is estimated at $1,990,000 annually. Per City Council's direction, the climate measures' level of implementation is based on available funding. Implementation of any recommended adaptation strategies developed through the Climate Change Working Group may also require additional funding resources. Therefore, staff is working to finalize Energy Franchise Fees (paid by SDG&E) and Local Fee Authority (surcharge on energy, water, sewage, solid waste, or other GHG-related utility bill) to provide new revenue sources to fully cover the associated implementation costs. In addition, some climate protection measures will actually help create General Fund savings in the long-term through increased energy and water efficiency at municipal facilities and reduced fuel consumption by fleet vehicles. ATTACHMENTS Attachment A - 2008 Greenhouse Gas Emissions Inventory Attachment B - Roadmap for Climate Change Adaptation Strategy Development Attachment C - Declaration of Intent for International Cooperation on Climate Adaptation Planning Prepared by Brendan Reed, Environmental Resource A/anager, Conservation & Environmental Services 10-5 ~N?- ~- --- ~ CllY OF (HULA VISTA 2008 GREENHOUSE GAS EMISSIONS INVENTORY Brendan Reed Michael Meacham Cory Downs I ATTACHMENT A SUMMARY As part of Chula Vista's climate protection program and its commitment to reduce greenhouse gas (GHG) or "carbon" emissions 20% below 1990 levels, the Department of Conservation & Environmental Services performs emissions inventories to identify GHG sources and to help guide policy decisions. The 2008 GHG Emissions Inventory is the City's second formal evaluation of its progress in reaching its emissions goals. The 2008 inventory utilizes the new Local Government Operations Protocol which was developed jointiy by ICLEI, the California Climate Action Registry, and the California Air Resource Board. With .the new protocol, this report builds upon past inventory efforts (1990 and 2005) by incorporating newly-available emission coefficients to more accurately assess emission levels in all three inventory years and to more confidently determine emission trends over time. The 2008 inventory indicates that Chula Vista's annual citywide GHG levels have increased with expansion of its housing stock and population. Compared to 1990, Chula Vista's city,vide GHG emissions have increased by 29%, however per capita and per housing unit levels are approximately 25% and 17% below 1990 levels, respectively. GHG emissions from municipal sources (i.e. operations, facilities, and vehicle fleet) in 2008 are approximately 43% below 1990 levels. It should be noted that a large reason for the stabilization of community-wide emissions and the decrease of municipal operation emissions (compared to results previously reported in the 2005 GHG Emissions Inventory) is due to the new emission coefficients. For example, transportation levels and energy use in the community have generally increased in every inventory year since 1990. To reach the community emissions reduction commitment outlined in the CO2 Reduction Plan, the City must decrease annual emissions by at least 352,997 metric tons of carbon equivalent. INTRODUCTION Chula Vista has historically been a regional and national leader in climate protection policies and programs designed to reduce greenhouse gas or "carbon" emissions. The City has participated in the United Nations Framework Convention on Climate Change, ICLEI Cities for Climate Protection Campaign, and the Conference of Mayor's Climate Protection Agreement. In addition, Chula Vista recently joined the California Climate Action Registry which is the State's premier voluntary greenhouse gas (GHG) reporting system designed to archive participants' early actions to reduce GHG emissions and prepare them for future carbon trading opportunities. Through this past involvement, the City has committed itself to reducing its greenhouse gas emissions 20% below 1990 levels by 2010 based on a widely- adopted international target. It should be noted that the international community has since revised the reduction target date to 2012. 2008 GHG [nventory Report (DRAFT 9/18/09) 10-6 1 of 11 The City of Chula Vista's Greenhouse Gas Emissions Inventory for calendar year 2008 was compiled and calculated using the Local Government Operations Protocol (LGOP) and ICLEI's Clean Air & Climate Protection 2009 software (Version 2.1). The LGOP was designed by ICLEI, the California Climate Action Registry, and the California Air Resources Board to allow local governments to better estimate their annual greenhouse gas emissions from municipal-operated sources. The software also calculates the emissions from major community sources in order to help further shape local climate change policy and goals. The LGOP incorporates newly-available emission coefficients which are specific to California and/or the City's energy provider, San Diego Gas & Electric (SDG&E), to provide more accurate emissions quantifications. As a result, staff has recalculated emission levels for 1990 and 2005 inventories with these new coefficients to ensure an "apples to apples" comparison and to more confidently determine emission trends over time. As stated above, the 2008 GHG Emissions Inventory separates emiSSIOns into two major analyses, community and municipal. The community analysis represents the quantity of GHG emissions produced throughout the entire City from both public and private sectors. The municipal analysis only represents emissions from City facilities and operations. In both analyses, the protocol evaluates emissions from three main parameters - energy consumption, transportation, and waste. It is important to clari fy that these data parameters are based solely on end use or net results. For example, the City's emissions from electricity are calculated based on the total kilowatts used, not the kilowatts saved in City-sponsored efficiency programs or the emissions output of the South Bay Power Plant. Although there are six GHGs outlined in the Kyoto Protocol - carbon dioxide (C02), methane (CH4), nitrous oxide (N20), hydro fluorocarbons (HFCs), perf1uorocarbons (PFCs), and sulfur hexafluoride (SF")- tbe inventory calculates emissions based on CO2 Equivalent or C02e which allows emissions of different strengths to be added together. For example, one metric ton of methane emissions is equivalent to 21 metric tons (MT) of carbon dioxide (or C02e) in global warming potential. In addition to outlining its 2008 inventory results in this report, the City has formally submitted its municipal inventory to the California Climate Action Registry (CCAR) for public review and vetting. The CCAR process, which was initially created by the State of California, is a more robust greenhouse gas accounting procedure requiring third-party verification. Participation in CCAR complements the City's other climate protection efforts by documenting GHG emissions as it relates to Assembly Bill 32's (California Global Warming Solutions Act of 2006) statewide reduction targets and prepares the Citv for potential carbon trading opportunities in the future. The City of Chula Vista is the first local government in San Diego County to successfully report its GHG emissions through the California Climate Action Registry. In future years, the City will transition reporting to The Climate Registry which is CCAR's North American counterpart. It should be noted that the total municipal emissions reported in this inventory differ from the total emissions in the City's 2008 California Climate Action Registry emissions report due to CCAR's slightly different carbon accounting methodology. RESULTS With technical assistance from ICLEI, City staff collected "activity data" from a number of municipal and external sources, including CalTrans, SDG&E, California Integrated Waste 2008 GHG Inventory Report (DRJ\FT 9/18/09) 1 0-7 2 of 11 Management Board (CIWMB), the Chula Vista Recreation Department, and the Public Works Department (Table 1). In most cases, these data sources were able to provide aggregated empirical data for calendar year 2008. However, it was necessary to use 2007 data for community transportation levels from CalTrans' Highway Performance Monitoring Systems due to the unavailability of 2008 data. Staff also updated the 2005 inventory to base that year's transportation values on the more accurate Highway Performance Monitoring Systems values. Default emission coefficients and related assumptions were generally used for transportation and waste analyses. For energy analyses, staff included Utility-specific electricity coefficients for CO2 emissions. If these coefficients were not available for a particular inventory year (or prior year), the California Grid Average electricity emission coefficients were used. All inventories used the California Grid Average electricity coefficients for C~ and N20 emissions for the particular year (or most recently available year). This approach is consistent with the new Local Government Operations Protocol and preferred by the California Air Resources Board, the California Climate Action Registry, and ICLEI for GRG reporting. As previously mentioned, these newly-available emission coefficients have resulted in staff recalculating past inventory years' emission totals and allows for a more accurate comparison between inventories. '.'-'1 :::z- Community SDG&E Energy Municipal SDG&E Community CaiTrans Transportation Public Municipal Works Dept. Community CIWMB Waste Allied Municipal Waste Services - Metered electricity & natural gas use - Local power generation plants excluded from Industrial Sector's natural gas totals in order to avoid double counting emissions - SDG&E-specific electricity emission coefficients (C02) - CA average electricity emission coefficients (CH, & N,O) - Default natural gas emission coefficients - Metered electricity & natural gas use - Fuel shipment invoices - Energy consumption was categorized by buildings, outdoor lighting, and wastewater - Annual VMT data (excluding freeways) was derived from average daily VMT values for Chula Vista - Default fuel emission coefficients - Default occupancy & vehicle classes (community analysis only) - Fuel consumption totals include transit and equipment use - Solid waste disposal data for Chula Vista residents and businesses at all California landfills - Default fugitive methane (CH4) emission estimates (based on EPA WARM Model) - Solid waste disposal data includes trash - Methane capture rates at Otay Landfill hauled by Allied Waste Services and by City staff Other Municipal Recreation Dept. - pH canisters' shipment invoices - Default fugitive carbon dioxide (C02) emissions coefficients Table 1: Data sources and emission factors used for community and municipal emissions analyses. 2008 GHG Inventory Report (DRAFT 9/18/09) 1 0-8 3 of 11 Communily [nvenIOl}' In 2008, community GHG emissions from Chula Vista totaled 934,630 MT C02e (Table 2, Figure I). The sector with the greatest amount of emissions (approximately 44%) was transportation or mobile sources. The residential sector was the second highest source producing about 29% of total community emissions from energy use, followed by the commercial (23%) and industrial (4%) sectors. Because of the high methane recovery rates at County landfills, the community did not have significant emissions from solid waste disposal. Chula Vista's 2008 citywide GHG emissions were 29% higher than recalculated 1990 levels and there were emission increases in nearly all sectors compared to 1990 (Figure I). The City's residential and commercial sectors' energy emissions increased by approximately 38% and 198%, respectively. Emissions from transportation activity were 23% greater in 2008 compared to 1990, while the industrial sector emissions had a 69% reduction between the 2008 and 1990 inventory years from 123,128 to 38,781 annual metric tons most likely due to more accurate energy tracking in recent years (see page 7). Similar to the 1990 inventory, emissions from Chula Vista solid waste disposal at County landfills were not significant in 2008. Compared to recalculated 2005 emISSIon levels, 2008 emIssIons from citywide sources increased 17%. The largest emissions increase between the two inventory years was in overall energy use, with commercial energy use increasing from 146,245 to 212,432 MT C02e or 45%. Transportation-based emissions actually decreased slightly (<1 %) since calendar year 2005. GHG EMISSIONS INVENTORY Community Sources i,OOO 900 III Ui C c 800 0 0 'iij f- 700 .!!l <.l E .;: 600 - UJ Q) Q) 2: 600 C1 't:l l) c 400 C;; " " fJl 300 " c 0 c .c 200 <( t:. iOO 0 1990 2005 2008 Inventory Year 2010 Goal . Industrial o Commercial . Residential o Transportation Figure 1: Total OHO emissions from community sources (by sector) in 1990,2005, and 2008. Emissions from the solid waste sector were non-significant (<1 MT CO,e) and are not graphed. Dashed line represents 2010 reduction commitment. 2008 OHO Inventory Report (DRAFT 9/18109) 1 0-9 4 of 11 COMMUNITY ANALYSIS % % % % 1990 2005 2008 Change Change 1990 2005 2008 Change Change (200Svs. (2008 VS. (2005 VS. (2008 vs. 1990 1990 1990 1990 Population 135,136 217,543 231,305 61% .71%"0; Per Capita 5A 3.7 4.0' -32% -25% Housing Units 49,849 73,115 77,452 47% 55%~'" Per Housing Unit 14.6 10.9 12.1 -25% -17%- .,-,,', Land Area (Acres) 18,558 33,024 33,024 78% ,~.7t~o~~?,. Per Acre 39.2 24.2 28.3 -38% :-28~ " Annual Vehicle Miles 465,300,000 684,600,000 697,900,000 47% .50% Transportation 335,435 412,306 411,446 23% '.23% Traveled (VMT) <'.,\. Residential 2,438,280 3,416,724 3,641,904 40% Residential 197,115 207,533 271,971 5% 38% Energy Commercial 767,716 2,305,220 2,557,321 200% L '233'o/~ ';: Energy Commercial 71,363 146,245 212,432 105% 198% U" '.: :~..;j\f u" (MMBtu) ",";:;..,r,' Industrial 1,342,551 485,504 388,748 -64% '..71%.'; Industrial 123,128 32,013 38,781 ..74% ,-69%" Total 4,548,547 6,207,448 6,587,973 36% 45%,;:, Total 391,605. 385,791 523,184 .1% 34% SoUd Waste (Tons) 179,986 217,881 174,583 21% ..3%;-::' Solid Waste 0 0 0 0% 0%. Total GHG Emissions 727,041 798,097 934,630 10% 29% . . All GHG emiSSions are reported in CO2 Equivalent (C02e) which allows emissions of 20% GHG Reduction ditferent strengths to be added together. For example, one metric Ion of methane Goal emissions is equivalent 1021 metric tons of carbon dioxide (or C02e) In global warming Reductions Needed To .,. potential. Reach Goal Table 2: Summary of commuuity GHG inventory metrics and emission levels for 1990. 2005. and 2008. Although there was an increase in total community emissions from 1990 to 2008, the amount of GHG emissions per person, per household and per acre decreased (Figure 2). The per capita emissions rate was lowered 25% from 5.4 to 4.0 metric tons C02e annually. Per household emissions were reduced from 14.6 to 12.1 metric tons (17%), while emISSIOns per acre decreased 28% from 39.2 to 28.3 metric tons. Nonetheless, in order to achieve the City's 2010 GHG reduction target, annual community emissions would be required to be reduced by at least an additional 352,997 metric tons COle. 45 40 EJ 1990 . 2005 o 2008 ,. " c Ui" 35 o '" .~ ~ 30 'E 0 w E 25 " " is :;;; 20 u - cti ::5 15 ::J ~ ~ 10 5 o Per Capita i'cre City Employee Household Community & Municipal Indicators Figure 2: Per capita, household, acre, and City employee contributions to GHG emissions in 1990, 2005, and 2008. 2008 GHG Inventory Report (DR.A.FT 9/18/09)1 0-1 0 5 of 11 AIun;c;pal Inventory Chula Vista's 2008 municipal GHG emissions were 16,817 metric tons C02e Crable 3, Figure 3). Similar to the community analysis, the majority of municipal emissions were from transportation sources representing 46% of total emissions. Energy use for building and outdoor lighting generated 34% and 19% of total emissions, respectively. Emissions from sewage and solid waste operations were not significant in the 2008 municipal analysis . GHG EMISSIONS INVENTORY Municipal Sources 35,000 ~ 30,000 o rJ) _ 25,000 .~ Vi E c:: w .~ 20,000 Ql <.l o E 15,000 U Ql ~ ~ 10,000 c:: ~ 5,000 o 1990 2005 Inventory Year 2008 Figure 3: Total GHG emissions from municipal sources (by sector) in 1990,2005, and 2008. Emissions from the solid waste sector were non-significant (<I MT C02e) and are not graphed. Dashed line represents 20 I 0 reduction commitment. When compared to recalculated 1990 levels, GHG emissions from municipal operations decreased by 12,807 metric tons C02e or 43% and emission levels per City employee (permanent, full-time) decreased 50% (Figure 2, Table 3). These reductions were mainly caused by lower energy consumption in the external lighting sector (Figure 3). Emissions from external lighting energy use (includes street lights and traffic signals) decreased 84% from 20,260 to 3,276 metric tons due to an energy-efficient retrofit program in the mid-1990s. Sewage sector emissions also decreased by 95% resulting in only 51 MT C02e being produced in 2008. However, this reduction is most likely due to differences in how pump station energy meters were segregated out of the dataset. The municipal building sector increased its emissions 55% to 5,794 metric tons as new buildings and facilities have been constructed and renovated. The municipal Reet sector which includes Chula Vista Transit increased its emissions to 7,696 MT or 65% higher than 1990. Similar to the 1990 inventory, emissions from municipal solid waste disposal at County landfills were not significant in 2008. 2008 GHG Inventory Report (DRAFT 91l8/09)1 0-11 6 of II MUNICIPAL ANALYSIS % % % % 1990 2005 2008 Change Change 1990 2005 2008 Change Change (2005 V5. (2008 VS. {200S VS. (2008vs. 1990) 1990) 1990) 1990) '. Employees 866 1,198 989 38% 14% Per Employee 34.2 13.3 17.0 -61% ;'-50% Vehicle Fleet Fuel Use .: -", '. (Gallons or Equivalent) 478,344 1,102,823 923,364 131% 93% Vehicle Fleet 4,655 9,281 7,696 99% 6!5% Buildings 35,527 70,790 65,439 99% 84% :, Buildings 3,728 4,576 5,794 23% 55% . ,:' External ;; External 147,100 27,780 30,422 -81% ~-79% 20,260 2,032 3,276 -90% -84 o~"< ~~ Lights Lights Energy Use Energy Use (MMBtu) Sewage 7,122 257 480 -96% .9~% Sewage 981 19 51 -98% -95% . ',". ," ,~ " },. > ~~:,' , Total 189,749 98,827 96,341 -48% -49%" Total 24,969 6,627 9,121 -73% -63%' ~ . , ' '~oia.7 Solid Waste (Tons) 5,400 6,603 7,331 22% 36%'. Solid Waste 0 0 0 0% ~',. . Total GHG Emissions 29,624 15,908 16,817 -46% :'-43% , .' . All GHG emissions are reponed in CO2 Equivalent (C02e) which allows emissions of 20% GHG Reduction different strengths to be added together. For example, one metric ton of methane Goal emissions is equivalent to 2; metric tons of carbon dioxide (or C02e) In global Reductions Needed To warming potential Reach Goal Table 3: Summary of municipal GHG inventory metrics and emission levels for 1990. 2005. and 2008. Compared to the recalculated 2005 inventory, the largest increases in 2008 were from the external lighting and building sectors which increased by 1,244 and 1,218 MT COle, respectively. Sewage-related GHG emissions increased slightly by 32 MT C02e, while the vehicle fleet sector decreased emissions by 1,585 metric tons or 17% between 2005 and 2008. DISCUSSION As demonstrated in this report, Chula Vista's annual community GHG emissions continue to increase as its building stock and population expand. From 1990 to 2008, the total energy use and annual vehicles miles traveled (VMT), which are the major drivers for local GHG emissions in the community, increased in every inventory year (Figure 4). Since 2005 alone, 4,337 new residential units were constructed and numerous business developments including the Eastlake Design Center and the Otay Ranch Town Center were completed. The only community sector to reduce emissions between 1990 and 2008 was the industrial energy use sector. However, because commercial and industrial energy use could not be segregated in the 1990 inventory, their individual emission contributions had to be estimated. Therefore, reductions in industrial sector emissions are most likely due to more accurate energy consumption tracking in 2005 and 2008. If commercial and industrial emission levels are combined in each inventory year, there was an overall 29% increase in emissions from the combined sectors between 1990 and 2008. 2008 GHG Inventory Report (DRAFT 9/18109) 10-12 7 of 11 'fhe increases in VMT and total energy use since 1990 have been partially offset by lower or "cleaner" emission coefficients. For example, carbon emissions per VMT decreased in recent years due to improved overall fuel efficiencies in most major vehicle classes. Likewise, grid electricity being delivered by San Diego Gas & Electricity over the last 5 years has been derived more from natural gas-fired power plants (and less from coal-fried plants) resulting in lower GHG emission coefficients (Figure 5). For example, carbon emissions from every kilowatt hour (k\Vh) of electricity consumed was 22% lower in 2008 compared to 1990. .Without these "cleaner" emission coet1icients, citywide G HG emissions would have increased by at least 51 % between 1990 and 2008. COMMUNITY METRICS w" 00 _ ::lID >-2 e'2 . , c " W c - ~ ~ 00 o 0 c 0 ~ ~ ';::E ID 1990 I .2005 I 02008 J .;. ..:~:: -:~~i ! ..1 1 6,000 -c, 5,000 :'J::"~~". . 4,000 3,000 2,000 1,000 o TransportaUon Residential Sectors Commercial/Industrial Figure 4: Annual energy use within major community sectors in 1990, 2005, and.2008. Transportation VMT has been converted to Million British Thermal Units, (MMBtu) for comparison purposes. Newly-available electricitv emission coefficients were also used to recalculate 1990 and 2005 inventories resulting in updated emission estimates compared to values previously reported in the 2005 GHG Emissions Inventory (Figure 5). The more accurate coefficients have recalibrated the City's previous inventory years and demonstrated that 1990 baseline emIssIons were previously underestimated, while 2005 emissions were previously overestimated. Within the municipal inventory, fuel use and building energy use increased between 1990 and 2008. However, fuel use and building energy use have shown slight reductions since 2005 although over 150,000 square feet of facilities have been constructed or renovated including 2 Civic Center buildings, 3 recreation centers, 3 fire stations, and numerous park sites. The City's investment in more energy eftlcient traffic signals in the mid-1990s continues to produce dramatic reductions in overall municipal energy consumption and annual GHG emissions. While the City's carbon reduction efforts have clearly benefited from newly- available, region-specific emission 1,400 2l 1,200 c .!!! u 1,000 :E . 0 ~ 800 () c 2 .2 ;;; 600 00 .c .~ E 400 w <5 200 () 0 ELECTRICITY EMISSION COEFFICIENTS ". m Prev~us Coefficients' (WSCC) 1990 2008 2005 Inventory Year Figure 5: Previous and updated Carbon Dioxide (CO,) emission coefficients from delivered grid electricity in 1990,2005, and 2008. Past inventories were recalculated using the newly-available, region-specific coefficients, 2008 GHG Inventory Report (DRAFT 9/18/09)10-13 8 of 11 coefficients and overall."c1eaner" coefficients, Chula Vista must continue its work to lower emission sources, specifically VMT and energy consumption, to meet its emission reduction commitment and offset its anticipated future growth. When the City is "built out" in 2030, there will be an additional 27,000 homes and 85,000 residents within its jurisdiction. Because the majority of these new buildings will be built on currently undeveloped sites, these new structures and residents will create additional sources of GHG emissions regardless of their energy efficiency, walkability, or integrated access to public transit. If 2008 per capita emission levels represent "business as usual," GHG emission levels could reach 1.2 million MT COle (or 74% over 1990 levels) when the City has been fully developed. While future state and federal climate actions such as increasing grid-delivered renewable energy, improving minimum vehicle fuel efficiency, and lowering fuel carbon content will continue to benefit the City's climate protection efforts, they will not completely offset future growth or automatically enable Chula Vista to accomplish its carbon reduction commitment. Over the last few years, Chula Vista has continued its nationally-recognized leadership in climate action planning by developing a new suite of programs and policies designed to reduce greenhouse gas emissions. These seven. new climate measures were initially developed and recommended by the City's Climate Change Working Group (CCWG) - comprised of residents, businesses, and community-group representatives - and were formally adopted by the City Council on April 1, 2008. The new measures focus on lowering energy and water consumption, installing renewable energy systems, promoting alternative fuel vehicle use and designing pedestrian and transit-friendly communities. More-detailed implementation plans for the seven measures were subsequently developed by City staff, vetted through over 25 public forums and meetings, and approved by City Council on July 10, 2008. The seven new measures plus the City's original Carbon Dioxide Reduction Plan constitute Chula Vista's comprehensive Climate Action Plan. City staff has begun partial implementation (based on available funding) of the seven measures over the last 12 months to facilitate reductions in GHG emission levels. At a municipal operations level, nearly 30 energy efficiency improvement projects have been completed at City buildings generating over I million kWh in annual energy savings and $160,000 in annual cost savings. In addition, a new 2,500 square foot solar hot water system and two high-efficiency boilers were installed at the Loma Verde Aquatic Center resulting in 50,000 therms in annual energy savings. Since 2005, two Civic Center buildings were redesigned and renovated to replace existing structures with more energy efficient buildings which exceed State energy code standards (Title 24) and incorporate a 30 kW solar photo voltaic system. To maximize the efficient operations of the City's facilities, eight staff members have recently completed a comprehensive "Building Operator Certification" course. Finally, the Chula Vista vehicle fleet has been augmented with new Compressed Natural Gas (CNG) buses (5) and a hybrid vehicle to replace vehicles with higher carbon emissions. These efforts will help Chula Vista maintain its current 43% GHG reductions (compared to 1990) from municipal operations and assist with further lowering citywide emission levels to meet the 20% commitment. At the community level, the City has implemented a variety of programs to reduce GHG emissions since 2005. Conservation & Environmental Services Department staff, in partnership with SDG&E, has launched a free energy assessment program to help local 2008 GHG Inventory Report (DRAFT 9118/09) 10-14 9 of 11 businesses decrease energy consumption and monthly utility costs. To date, over 2,000 businesses have participated in the program and have received over 49,000 energy-saving CFLs in exchange for their incandescent light bulbs. In addition, almost 500 restaurants and food service facilities have received more efficient pre-rinse spray valves for free through the program. The annual savings from the CFL and pre-rinse spray valve exchange program are estimated at 4 million k\Vh, 135,000 therms, and $800,000. Likewise, the Development Services Department has moditled their plan check review and .inspection services to place_ additional emphasis in incorporating energy eftlciency and renewable energy opportunities into new construction and major renovation projects. The City Council also recently approved a new ordinance requiring all new residential units to be pre-wired for solar photo voltaic systems allowing more cost-effective installations later by homeowners and property managers. NEXT STEPS Long-term and full implementation of the seven climate protection measures will greatly contribute to meeting the City's .carbon reduction goals. For mlmicipal operations, future installation of a biodiesel fuel tank and ongoing replacement of fleet vehicles (upon retirement) with high efficiency and alternative fuel models will decrease emissions from mobile sources. Installation of large-scale solar photovoltaic systems and energy eftlciency improvements at City-operated facilities will further reduce emissions from stationary sources. One of the greatest opportunities for energy savings is the retrofit of the City's approximately 9,000 street lights which constitute about 36% of municipal electricity use and 17% of municipal GHG emissions. On a community level, implementation of two key programs - a mandatory Green Building Standard requiring enhanced energy eftlciency levels and a home energy eftlciency and solar conversion program (known as the Home Upgrade, Carbon Downgrade program) - are imperative to meeting Chula Vista's commitment of reducing citywide emissions 20% below 1990 levels. The Green Building Standard will help to minimize future emission increases from new greenfield development and maximize efficiency of redevelopment projects, Complementary to the Green Building Standard, the Home Upgrade, Carbon Downgrade program will immediately and drastically reduce the emissions associated with existing building stock's energy use, water consumption, and wastewater generation. These two programs will be further supplemented by climate measures focused on designing more mixed-use, walkable development around the City's trolley stations and strict new outdoor water use gUIdelines. The climate protection measures' success will be largely dependent on securing a long-term funding source for their implementation. Although the City has been able to secure various one-time funding sources to support initial implementation, it will be difficult to sustain the measures without consistent fmancing. Per City Council's direction, staff is actively pursuing two possible funding options - Energy Franchise Fees and Local Fee Authority. Staff will be returning to City Council in January with a proposal to increase the City's Energy Franchise Fees, which is paid by San Diego Gas & Electric and based on total energy deliveries within Chula Vista, to support long-term implementation. Because energy consumption is a major contributor to community GHG emissions, there is a clear nexus between the fee and local 2008 GHG Inventory Report (DRAFT 9/18/09)10-15 10 of 11 carbon reduction efforts. The other option, Local Fee Authority, would require State legislation and would allow the City to collect a carbon-based surcharge on energy, water, sewage, solid waste, or similar GHG-related services. Staff is working with representatives from State offices to establish the necessary Local Fee Authority legislation. It is staffs top priority to finalize these funding mechanisms over the next 6 months to support full implementation of the City's carbon reduction or "mitigation" measures. A new initiative for Chula Vista's climate protection program being proposed by the City Council's ICLEI representatives, Councilmember Bensoussan and Councilmember Ramirez, is its Climate Change Adaptation Strategy. Climate adaptation is the ability of built, natural, a,"1.d human systems to accommodate changes in climate with minimal potential damage or cost. Despite all current efforts both locally and globally to mitigate or reduce emissions, some level of climate change will still occur and have noticeable impacts on the San Diego region. In order to manage these likely impacts from climate change and to build on its past leadership, the City of Chula Vista will develop strategies to "adapt" the community to the projected changes avoiiling the associated costs of impacts. These strategies will-be fonnalized in a Climate Change Adaptation Strategy which will be developed under a framework based on the City's experience with greenhouse gas emissions mitigation planning and guidance from ICLEI-Local Governments for Sustainability. This planning will also coincide with the City's participation in the International Conference on Climate Adaptation held in Seville, Spain in May 2009 and the resulting adaptation planning priorities (known as the "Seville Declaration") agreed upon by various California and Spanish government entities. After developing the draft adaptation strategies with the assistance of community stakeholders, the reconvened Climate Change Working Group, and the Resource Conservation Commission, staff expects to return to City Council for fonnal review and consideration by October 2010. Staff also anticipates providing interim progress updates to City Council between January and October 2010. 2008 GHG Inventory Report (DRAFT 9/18/09)1 0-16 11 of 11 ~~~ ~-:;; ~ _-:......-"..-- """:0..""""'-- - ATTACHMENT B CITY OF CHULA VISTA CLIMATE CHANGE ADAPTATION STRATEGY Roadmap for Deve!opment (DRAFT) Background The City of Chula Vista has long understood the threats of climate change to its community and has established itself as a leader amongst municipalities in planning to reduce or "mitigate" Cil:y\vide greenhouse gas emissions. However, despite efforts both locally and globally to mitigate emissions, some level of climate change will still occur and have noticeable impacts on the San Diego region. In order to manage these likely impacts from climate change and to build on its past leadership, the City ofChula Vista will assess the community's vulnerabilities to these climate impacts and develop strategies to "adapt" the community to the projected changes. These strategies will be formalized in. a Climate Change Adaptation Strategy and will be developed under a framework based on the City's experience with greenhouse gas emissions mitigation planning and guidance from ICLEI-Local Governments for Sustainability. This planning will also coincide with the City's participation in the International Conference on Climate Adaptation held in Seville, Spain in May 2009 and the resulting adaptation planning priorities (known as the "Seville Declaration") agreed upon by various California and Spanish government entities. Expected Outcomes of Climate Adaptation Planning The City of Chula Vista will begin a climate adaptation planning process to achieve the following: (a) Through a community-based process, develop a local Climate Change Adaptation Strategy. which would be incorporated into the City's current Climate Action Plan, for City Council review and consideration by the end of 20 I 0 which addresses the following sectors projected to be adversely affected by climate change: \\1 ater Management Energy Management Infrastructure & Resources Public Health Wildfires Ecosystems & Biodiversity Business & Economy (b) Continue its collaboration with other Seville Declaration partlclpants by leading an international panel focused on adaptation planning for nature conservation and biodiversity preservation which will complement additional panels being chaired by other signatory governments. Climate Adaptation Planning Roadmap - DRAFT City of Chula Vista 1 of 5 10-17 (c) In addition to participating in annual conferences with Seville Declaration signatories, .the City will host an international conference in November 2011 to coordinate and optimize development of individual government adaptation strategies. Community-Based Planning Process To develop a local Climate Change Adaptation Strategy which would be incorporated into the City's current Climate Action Plan, the City will utilize a community-based process which was successful in the past creating the City's original Carbon Dioxide (C02) Reduction Plan and more recent seven climate protection measures. Therefore, staff proposes using the City's Climate Change Working Group (CCWG) which is comprised of Chula Vista residents, businesses, and community group representatives to assist in developing climate adaptation strategies suitable for Chula Vista. Specifically, the group will be tasked with assessing and selecting a list of recommended adaptation polices and programs. These recommendations will be presented to the City Council for formal review and consideration. Based upon City Council's direction, these recommendations would be further developed into more comprehensive plans by staff, if necessary. Because of the broad scope of potential adaptation strategies and to ensure equitable and diverse viewpoints, staff proposes augmenting the current Climate Change Working Group with the following sector representatives: FOClls Area Possible Renresentativds) Water Management Local water district official Energy Management Energy industry professional Renewable energy consultant Electrical workers association Infrastructure & Resources Engineering firm Building industry representative Coastal resource manager Port reoresentative Public Health Public health provider Senior issues/care-giver Transportation/Land-use professional Wildfires Emergency service provider Fire-services Property-owner along wildland/urban interface Ecosystems & Biodiversity Conservation professional Nature Center staff Local environmental group I Business & Economy Small & Large Businesses Southwestern College representative Potential new members would be vetted through the Resource Conservation Commission and the City Council's rCLEr representatives. The Climate Change Working Group will be supported by Ex Officio members who may include representatives from rCLEL San Diego Gas & Electric, Climate Adaptation Planning Roadmap - DRAFT City of Chula Vista 2 of 5 10-18 California Center for Sustainable Energy, Public Safety Departments, Public Works Department, and Development Services Department. The San Diego Foundation will also playa key role on the Ex Officio team due to its current regional work related to climate change impacts. Their "Focus 2050" study compiled and analyzed predicted climate changes to the San Diego region with the assistance of local universities and public agencies. Conservation and Environmental Services Department staff will provide overall administrative support to the Climate Change Working Group and the climate adaptation planning l:i"rocess. A professional facilitator may also be used to help organize and conduct the meetings. Throughout the development of these adaptation strategies, special emphasis will be placed on ensuring an open and transparent process and providing the public with opportunities for input and feedback. It is anticipated that the Climate Change Working Group will host several large public forums in addition to their norrnal publicly-noticed meetings to help the community understand the inherent risks to Chula Vista from climate change and opportunities to manage the risk. All summary materials will be provided in both Spanish and English and distributed both on-line and in the community. Climate Change Working Group members will be required to commit to bi-monthly meetings, to work in a cooperative way with fellow group members, and be able to dedicate time to prepare and research (if necessary) for CCWG meetings. All participants will also have to understand the environmental, social, and economic context of their task. The Climate Change Working Group will be asked to use certain guiding principles to evaluate and prioritize possible adaptation options: I) Seek out the best available science to understand local climate change impacts and their relative risks; 2) Give priority to policies which can build on existing work rather than policies which require new sources of funding or staffing; 3) Ensure that the legitimate interests of all City stakeholders are considered in evaluating options; 4) Develop policies flexible enough for future incorporation of new science or improved modeling, but defined well enough for staff to implement; 5) Ensure that adaptation strategies complement climate protection measures already in place in Chula Vista; 6) Consider strategies to adapt to both short- and long-terrn impacts trom climate change, but only in areas where the group decides there is enough evidence to support the work; 7) Prioritize strategies in accordance with the degree of risk that different climate impacts pose to Chula Vista, its residents, and businesses: 8) Recommend adaptation strategies which address the most immediate risk in the most tinancially feasible way (i.e. require the least General Fund support); 9) The strategies chosen should not cause a significant adverse economic and/or envirornnental impact to the community 10) Reach consensus on a preferred list of final recommended adaptation strategies which best meets all City stakeholders' needs International Panel on Climate Adaptation & Nature Conservation As part of the Seville Declaration's implementation, the City will lead an international panel tasked with addressing potential climate change impacts to ecosystems (especially wetlands) and Climate Adaptation Planning Roadmap - DRAFT City of Chula Vista 3 of 5 10-19 formulating local adaptation options to minimize the associated risk. The panel will be one of six committees which are being chaired by various Seville Declaration signatories. The panel will be designed so that other Seville Declaration governments can benefit from the resulting resources and recommendations. The process will likely involve few actual meetings, but rather depend on digital sharing of information and ideas due to participants' wide geographic dispersion. However, the panel may include sponsorship of a local symposium on the latest scientific research related to the topic. Further design of the panel and its process will occur during the next meeting of Seville Declaration governments in November 2009. At this meeting, the declaration of cooperation between the Andalusian and Californian governments will be finalized and formally signed. Chula Vista Conference on Climate Adaptation Strategies The culmination of the City's climate adaptation planning efforts will be the hosting of an international conference in Chula Vista in November 2011. Conferenceinvitees will include the Seville Declaration signatories and other public agencies and stakeholder groups which are active in pursuing climate adaptation frameworks. The conference will also offer the City an opportunity to showcase its Climate Change Adaptation Strategy and the "lessons learned" during its development and initial implementation. Climate Adaptation Planning Milestones The following table provides a breakdown of the proposed process and timeline for completing an adaptation plan: I TASK TIME LINE I , , I Milestone #1 - Initiate Climate Ad'!I'tation Efforts ~ I'-A. -II'-c;;~cil approval to de~elop a Climate Change Adaptation September 2009 I Strate in concert with other Seville Declaration signatories I B. I Expand Climate Change Working Group (CCWG) to include j October - November 200.91' broader representation & technical expertise rC-.I Attend conference in. Andalusia,-- Spain to finalizeTNo~embe-;:--i009 -------- I I participation in the Seville Declaration I . . Milestone #2 - Develop Initial Climate AdaPtation~1 I i-~~eol~~~ii~oa~~~oximatelY g-pubUcly-ilOticed CCWG meetings November 2009 - ----1 I ! and 2 public forums to review and prioritize adaptation September 2010 II ~PtlOns I B. I Lead an international panel to develop recommendations on January - October 2010 I ,minimizing climate risks to nature conservation and , biodiversity reservation I Climate Adaptation Planning Roadmap. DRAFT City of Chula Vista 40fS 10-20 i Milestone #3~ Finalize Climate Adaptation Strategies i A. i Present CCWG recommendations to City Council I I ICLEI/Climate Change Subconunittee & full City' Council for 1 I review and consideration ! B. ! Integrate Council-approved CCWG recommendations into a i ! comprehensive Clirnale Change Adaptation Stralegy I c. I Present Climale Change Adaplation Stralegy to City Council I I. I ~~C,LEIIClimate Change Subcommittee & full City Council for ~lew and consideratIOn I Milestone #4 - Implement Climate Adaptation Strategies ! A. Begin implementation of Council-approved Climate Change i i Adaptation Stratez;y and track performance I B. I Host an international climate adaptation planning conference I i in Chula. Vista to exchange information with Seville I __.._ 195:clcu:~!ion :~igI1"t<.:>ri eS~I1<!othe!jI1!~E~ste<!p~rties October 20 lO October 2010 - January 2011 February 2011 March 2011 (Ongoing) Novemher 2011 ".._".__.___~J Budget Summary The proposed climate adaptation planning process is designed to mlmmlze costs. Staff will initially rely on external funding sources (such as grants and donations) to finance the planning process. Implementation of a Council-approved Climate Change Adaptation Strategy would require more long-term, consistent funding sources such as Energy Franchise Fees or Local Fee Authority which are currently being pursued through the 7 climate protection measures' implementation. The proposed budget is presented below: BUDGET ITEM ESTIMATED COST Administer CCWG meetings - Meeting supplies & printing $1,000 - Trained Facilitator for 8 - 10 meetings Organize 2 public forums on CCWG efforts - Printing of information packets $500 - Public forum promotion Attend two Seville Declaration conferences - Conference registration $3,000 - Airfare, lodging & meals Host adaptation conference in Chula Vista as part of Seville Declaration process $10,000 - Meeting supplies & printing - Conference space fees - Conference promotion TOTAL :'\14,500 Climate Adaptation Planning Roadmap. DRAFT City of Chula Vista 5 of 5 10-21 ATTACHMENT C DECLARATION OF INTENT Alter three days of meetings and conversations within the framework of the International Conference on Adaptation to Climate Change, held in Seville, Spain in May 2009, the undersigned, aware ot the territoriai similarities between the regions and cities of Andalucia and California, relating to potential future impacts of climate change, determined that it would be of interest to all parties to ensure an ongoing exchange of experiences and Information on the complex issue of adaptation to climate change. For this reason we have determined and will convey to our respective administrations the following: . We wish to undertake the necessary administrative steps in our institutions, I.e. the Junta de Andalucia, Government of California and cities of Chula Vista, Jerez de [a Frontera, SanDiego and Seville, to formalize a cooperation commitment lJased on the following lines ofactian: . To coordinate and optimize the work to be defined hereinafter, the unders',gned recommend the creation of a high level working group which will meet once a year to take stock of progress on work underway, as well as to define new areas of cooperation. This working group wi[1 be chaired by the Government of California and the Junta de Andalucia. The first of these meetings will take place in November 2009 in Andalucia, at which time a definitive version of the Declaration of Seville will be finalized. A draft of this Declaration is attached asan annex to this document. . That possible initial areas of cooperation includes the following: The organization of an international conference on desalinization, analyzing the results and difficulties encountered in existing plants in Spain (November 2009) The organization of a meeting of experts to discuss issues relating to high speed rail transportation, with a special emphasis on the Madrid-Sevilie line. The organization of a meeting in cooperation with the wine producing associations of California and Andalucia to discuss the challenges of climate change in their sector The organization of technical meetings between the cities in relation to the incorporation of electric vehicles in city centers. Special emphasis on the case of Seville and San Diego, 10-22 The organization of technical meetings between the cities on the use of city owned and leased bicycles for public use. Speciai emphasis on the case of Jerez de la Frontera, Chula Vista and San Diego. The organization of a technical visit to Andalucia to analyze different irrigation systems, with a special emphasis on water saving schemes and optimization of water resources The organization of a technical meeting to be held In Chula Vista, with a view to explore and analyze the possibilities of creating interconnected natural resource conservation and open space corridors between specific protected areas. The creation of a working group to facilitate and research the most operational tools and methodologies available to assess environmental and socioeconomic climate change impacts and vulnerabilities, as weil as.the'cost effectiveness of adaptation"measures to be considered. The organization of a technical meeting, to be held in California, on assessment of threats to wetlands in both territories. The creation of a working group that will facilitate an information exchange on citizen participation in decision making in the area of adaptation to climate change. The creation of and educational exchange of curricuium for elementary and middle schools. cU "th1~a~~ Kevin Hunting 1 Government of califo~~a Pamela Bensoussan Chula Vista City Council x;;~ Jacques Chirazi City of San Diego Cristina Vega Ayuntamiento de Sevilla 10-23 DRAFT - THE SEVILLE DECLARATION International conference on adaptation to climate change Seville, May 19 & 20, 2009 THE SIGNATORiES, in representation of the Andalusian Regional Government, the State of California, and the City Councils of Chula Vista, Jerez de ia Frontera, San Diego and Seville, declare that: We are in agreement with the scientific tests and studies on global warming and recognize that giobal climate change is iargely due to the increase in human-induced greenhouse gas emissions. .We believe that climate change is one of the greatesHhreats to society, the-economy, health, and the environment that regional and local agencies are facing all over the world. We accept that, in order to be able to mitigate the negative effects of climate change, it is necessary to carry out actions in a coordinated manner, not only at an international and national ievel, but also and predominantly at a regional and local level, since measures at a territorial level can play a vital roie in the planning and implementation of sustainabie development policies, and in particular of climate change adaptation measures. We recognize that the level of economic development varies from region to region and that, consequently, any action undertaken in the fight against climate change needs to take into account the obvious differences there are between regions. We confirm the need to jointly develop appropriate measures in order to combat climate change, not only now but also in the future, in accordance with the provisions of the United Nations Framework Convention on Climate Change. In order to meet these principles we need to work together and with our respective governments so as to undertake the following: To work together to develop the necessary climate change adaptation tools and methods and thereby ensure thai our regions and municipalities become leaders in this discipline. To research, develop, and implement climate change adaptation programmes that will promote economic development, enhance the competitiveness of regions and municipalities, and improve quality of life in general, by creating working groups in which the signatories are 10-24 represented, with a view to exploring in greater depth the specific adaptation strategies called for by the various economic sectors. To promote renewable energies and their implementation in our territories, encouraging and enabling research into new technologies while developing existing ones. To strengthen cooperation among other regional and local authorities and agencies in order to promote best practices in the fight against climate change. To work closely with citizens in order to promote awareness of climate change adaptation policies and make citizens stakeholders in the implementation of those policies aimed at managing the environmental, economic and social adverse impacts of climate change. To consolidate and build on this experience by holding joint climate change adaptation conferences at least once every two years, in which the signatories will lake stock of the progress made and share their own experiences and knowiedge of new tools and new technologies. We hereby sign this declaration and undertake to work towards the development, establishment, and implementation of climate change adaptation policies in our respective territories. 10-25 RESOLUTION NO. 2009- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA (1) ACCEPTING THE 2008 GREENHOUSE GAS EMISSIONS INVENTORY REPORT, (2) DIRECTING THE CITY'S CLIMATE CHANGE WORKING GROUP TO DEVELOP A CLIMATE ADAPTATION STRATEGY FOR FUTURE COUNCIL CONSIDERATION, AND (3) APPROVING CHULA VISTA'S ONGOING INVOLVEMENT IN INTERL'\JATIONAL EFFORTS TO SHARE INFORMATION AND EXPERIENCES REGARDING CLIMATE ADAPT f-\TION PLANNING AS OUTLINED IN THE CLIMATE ADAPTATION PLAN'NING ROADMAP WHEREAS, Chula Vista has historically been a regional and national leader in climate protection policies and programs designed to reduce greenhouse gas (GHO) or "carbon" emissions. The City has participated in the United Nations Framework Convention on Climate Change, ICLEI Cities for Climate Protection Campaign, and the Conference of Mayor's Climate Protection Agreement; and WHEREAS, to help identify emission sources, assess program progress, and guide policy decisions, the Department of Conservation & Environmental Service staff has completed a GHG emissions inventory for Calendar Year 2008; and WHEREAS, Chula Vista recently joined the California Climate Action Registry, which is the State's premier voluntary greenhouse gas reporting system. Participation in the California Climate Action Registry complements the City's other climate protection efforts by documenting GHG emissions as it relates to Assembly Bill 32's (California Global Warming Solutions Act of 2006) statewide reduction targets and prepares the City for potential carbon trading opportunities in the future; and WHEREAS, the City of Chula Vista is the first local government in San Diego County to successfully report its GHG emissions through the California Climate Action Registry; and WHEREAS, the City has been continuing its carbon reduction efforts over the last 12 months by beginning partial implementation of the seven new Climate Protection Measures based on available funding; and WHEREAS, staff has been able to secure one-time funding opportunities to install more energy efficient and renewable energy technologies at municipal buildings and replace a variety of fleet and transit vehicles with more efficient models; and WHEREAS, Conservation & Environmental Services staff has used its San Diego Gas & Electric (SDO&E) Local Government Partnership to support energy efficient lighting exchanges and free energy and water assessment services for residents and businesses. Likewise, the Development Services Department has modified their plan check reviews and drafted new ordinances to place additional emphasis in incorporating 10-26 Resolution No. 2007- Page 2 energy efficiency and renewable energy opportunities into new constmction and major renovation projects; and WHEREAS, City staff has created a roadmap for Chula Vista's development of a Climate Change Adaptation Strategy. As proposed, the City's Climate Change Working Group (CCWG), comprised of residents, businesses, and community group representatives, would review and evaluate various adaptation strategies through an open and transparent process; and WHEREAS, the CCWG would be augmented to include additional members to broaden the group's technical background and community perspective and would be supported by the Conservation & Environmental Services Department staff and Ex Officio members providing technical and public policy expertise; and WHEREAS, in addition to their publicly-noticed meetings, the CCWG would host at least 2 public workshops on climate adaptation planning to solicit additional community feedback. The CCWG would return to City Council by November 2010 with their recommendations for a Climate Change Adaptation Strategy for formal review and consideration; and WHEREAS, in addition to developing a climate adaptation plan, the City of Chula Vista would commit to participating in annual conferences and host a conference in November 2011 with other "Sevilla Declaration" signatories. Each signatory would also lead an international panel to develop sample adaptation strategies for a particular topic area. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it (I) accepts the 2008 Greenhouse Gas Emissions Inventory Report, (2) directs the City's Climate Change Working Group to develop a Climate Adaptation Strategy for future council consideration, and (3) approves Chula Vista's ongoing involvement in international efforts to share information and experiences regarding climate adaptation planning as outlined in the climate adaptation planning road p. / Presented by Michael T. Meacham Director, Conservation & Env. Services 10-27 CITY COUNCIL AGENDA STATEMENT ~\ft,- CITYOF .=-~ (HULA VISTA Item No.: / / Meeting Date: 10/20/09 ITEM TITLE: A. AN ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHAPTER 15.26 OF THE CHULA VISTA MUNICIPAL CODE AND ADDING SECTION 15.26.030, INCREASED ENERGY EFFICIENCY STANDARDS. SUBMITTED BY: REVIEWED BY: B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DIRECTING STAFF TO PROPOSE LOCAL AMENDMENTS TO FUTURE VERSIONS OF THE CALIFORNIA ENERGY CODE, TITLE 24, PART 6, REQUIRING INCREASED ENERGY EFFICIENCY STANDARDS Deputy City M~velopment Services Director City Managerr 4/STHS VOTE: YES D NO [K] SUMMARY On July 10, 2008, Council approved Resolution No. 2008-177 adopting the Implementation Plans for the Climate Change Working Group (CCWG) measures. Measure # 4, Green Building Standards, consists of several components, one of which is the adoption of increased energy efficiency standards requiring residential and nonresidential buildings to be more energy efficient than the State mandated building energy efficiency standards. The proposed Ordinance amends the City's Energy Code and adopts increased energy efficiency standards. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed Ordinance for compliance with the California Environmental Quality Act (CEQA) and has determined that there is no possibility that the activity may have signiticant effect on the environment; therefore, pursuant to Section 15061(b)(3) (General Rule) of the state CEQA Guidelines the activity is not subject to CEQA. Although environmental review is not necessary at this time, additional environmental review will be required if applicable, prior to the approval of any future project specific development entitlements including, but not limited to, site development plans, building permits, land development permits, and conditional use permits. 11-1 Item No.: 1/ Meeting Date: 10/20/09 Page 2 of 10 RECOMMENDATION That the City Council place the Ordinance on first reading and adopt the resolution. BOARDS/COMMISSION RECOMMENDATION The Board of Appeals and Advisors at their Monday, September 14, 2009 meeting, unanimously recommended the adoption of the proposed Ordinance. DISCUSSION Background The City has been a leader in climate protection policies and programs designed to reduce greenhouse gas emissions. Through its Carbon Dioxide Reduction Plan, the City committed itself to reducing its greenhouse gas (GHG) emissions by 20% below 1990 levels. The City's 2005 GHG emissions inventory indicated that annual citywide GHG levels had increased by 35% since 1990 due primarily to residential growth. As a result, the City Council directed staff to convene a Climate Change Working Group (CCWG) to develop recommendations to add to the City's existing Carbon Dioxide Reduction Plan and its portfolio of programs which would further reduce the community's greenhouse gas emissions. On April I, 2008, City Council adopted the CCWG seven recommendations and directed staff to return to Council with detailed implementation plans. On July 10,2008, Council approved Resolution No. 2008-177 in which Council adopted the implementation plans for the CCWG measures and approved partial implementation of the measures based on funding levels. Measure # 4, Green Building Standards, consists of several components, one of which is the adoption of increased energy efficiency standards requiring residential and nonresidential buildings to be more energy efficient than the State mandated building energy efficiency standards. The proposed Ordinance amends the City's Energy Code (MC Chapter 15.26) and adopts increased energy efficiency standards. Increased energy efficiency standards will reduce the rapid growth in demand for electricity which in turn will reduce the need for new generation, transmission and distribution facilities, and will reduce the risk of power shortage. Furthermore, it will reduce greenhouse gas emissions which will help mitigate the causes and effects of global climate change and improve air and water quality by reducing emissions from smog and acid rain forming pollutants. Saving energy will economically benefit residents and businesses by reducing the rate of increase in energy prices and by reducing energy bills. The initial implementation plan for Measure # 4 proposed mandating new and retrofit residential and non-residential projects to achieve carbon savings equivalent to exceeding current State Standards (05 Standards) by at least 15%. As staff worked on the details of the program, staff realized that establishing a carbon savings benchmark as a means of compliance is ahead of its time and concluded that it will result in a program that is more complex than it needs to be. For the purpose of simplifying the program, while at the same time achieving an equivalent level of energy savings, staff proposed to require projects to demonstrate that they have exceeded the 2008 Building Energy Efficiency Standards (08 Standards) by a specific percentage. This compliance method is consistent with the structure, format and calculation methods of the California Energy Efficiency Standards and is simple and clear for the building industry to 11-2 Item No.: / I Meeting Date: 1 0/20/09 Page 3 of 10 understand and staff to enforce. Through discussion with the Building Industry Association (BIA), statf also proposed to offer an energy credit option for building construction within Sectional Planning Area (SPA) Plan project areas where developers can meet a portion of the increased building energy efficiency requirements through community site design measures, provided the SPA Plans meet certain design criteria. Local Amendments to California Building Standards Pursuant to Sections 17958 and 18941 of the Health and Safety Code, before making any modifications to the California Building Standards Code, the City must make an express finding that such modifications are reasonably necessary because of local climatic, geologic or topographical conditions. Modifications to the California Building Standards and Building Energy Efficiency Standards, as detailed in this Ordinance, are reasonably necessary due to local climatic conditions. As a result of high summer ambient temperatures and periods of heat waves, average load demand and peak load demand of energy used in Chula Vista is an important factor concerning public safety and adverse economic impacts of power outages or power reductions. Reduction of total and peak energy use, as a result of incremental energy conservation measures required by this Ordinance, will have local and regional benefits in the cost-effective reduction of energy costs for the building owner, additional available system energy capacity, and a reduction in greenhouse gas emissions. 2008 Building Energv Efficiencv Standards The 08 Standards, minimum standards mandated by the State, will take effect on January I, 2010. The 08 Standards are about 15% to 20% more stringent than the current Standards. Increased standards of 15% and 20% above the 08 Standards are about 30% to 40% above the current Standards. Climate Zones The City falls within two climate zones (CZ); CZ 7 and CZ 10. The majority of the City falls within the mild CZ 7, and about 20%, the most easterly part of the City, falls within the harsher CZ 10. Attachment B, Climate Zones map, delineates the two CZs. Proposed Increased Standards The proposed Ordinance requires new residential and nonresidential construction to be more energy efficient than the 08 Standards as follows: CZ 7: New residential and nonresidential projects that fall within CZ 7 must be at least 15% more energy efficient than the 08 Standards. CZ 10: New low-rise residential projects (three-stories or less) that fall within CZ 10 must be at least 20% more energy efficient than the 08 Standards, and new nonresidential, high-rise residential or hotel/motel projects that fall within CZ 10 must be at least 15% more energy efficient than the 08 Standards. In both climate zones, low-rise residential additions. remodels or alterations that are less than or equal to 1,000 square feet, and nonresidential, high-rise residential or hotel/motel additions, 11-3 Item No.: II Meeting Date: 10/20/09 Page 4 oflO remodels or alterations that are less than or equal to 10,000 square feet, are exempt from the increased energy efficiency standards. California Energy Commission Application In order for the City to adopt and enforce increased building energy efficiency standards, the City must submit an application to the California Energy Commission (CEC) and obtain approval before the increased standards can take effect. The application submittal must include (1) The proposed standards as adopted by Council, (2) A study with supporting analysis showing how the City determined energy savings, (3) A statement that the proposed standards will require buildings to be designed to consume no more energy than permitted by the State Building Energy Efficiency Standards, and (4) The basis of the City's determination that the proposed standards are cost effective. The determination that the standards are cost effective will need to be adopted by Council at a public hearing. After City Council place the proposed Ordinance on first reading, staff will submit the application to the CEC for their review and approval. After CEC approval, staff will bring the Ordinance to City Council for second reading and adoption. The CEC review and approval process can take up to three months. Cost-Effectiveness Study In order to meet the CEC requirements, the City, with help from San Diego Gas and Electric (SDG&E), hired an energy consultant, Gabel Associates, LLC (consultant), to perform the required cost effectiveness analysis. The analysis is included as Attachment C. The analysis is performed by using early 2008 Standards beta version of CEC approved software to compare life cycle costs with the estimated cost savings to be achieved by complying with the proposed standards. [t is a limited study and is not intended to determine the macro-effects of any specific policy decisions. The study analyzed exceeding the 08 Standards by 10%, 15% and 20% for low-rise residential, high-rise residential and non-residential projects. It took into account the two CZs the City falls within; CZ 7 and CZ'IO. The combination of energy efficiency measures used in the case studies to reach the various thresholds were based on the consultant's experience and professional judgment and not on a comprehensive analysis of all possible combinations of energy efficiency measures. The table below shows the average incremental cost and the average simple payback period for the added energy measures as determined from the case studies: .,..':,: ',' ~~~~i~J~J,~\?~~7ype- ",[;,;;, i""":"'""",;,,':,:,,', ,':"'/-':"". Single Family (A vg. of results for a 2,000 & 3,000 sq. ft.) Multi Family (8-units, 2-story, 8,442 sq. ft.) High-Rise Residential (4- '.' :;,,', I' .rCZ7. .'. .,:: ';.'..,,~;. " ":'tt,,"V;;"\>.'i:CZI0::;:.'<~~",;?i:i>;'J;;:;. .."L%.., ., I~1;:~.~i :,S~~;~:P~';~;~~ki1 fJi~~~~J"E~'i!~i&:;~~:~i~ :':f~i~:~~\ ,.Cost ..' Cost ',(Yrs.) ,..",'Cost ,'."Cost ,',:'(Yrs.), , ,,,is) ,'\i$/~r\'> ,"_':':r:,<.~ ;"':'j($i;-":W' ..;(sAn';j:"t#flk'i 10% 944 0.39 24 1,749 0.69 17.3 15% 1,498 0.62 22 2,437 0.99 16.7 20% 2,187 0.89 23 3,303 1.30 16.4 10% 5,083 0.60 26 8,900 1.05 27 15% 9,605 1 14 32 11,705 1.39 23.5 20% 9,915 1 17 18 14,570 1.73 18.5 10% 21,428 0.58 12.5 26,237 0.71 12.8 11-4 Item No.: / / Meeting Date:l0/20/09 Page 5 of 10 story res. over I-story 15% 28,336 0.77 \1.7 71,392 1.94 22.4 retail. 36,800 sa. ft. 20% 60,352 1.64 16.7 114,080 3.10 27.2 Non-Residential (5-story, 10% 32,660 0.62 4.6 82,884 1.57 12.9 52,900 sq. ft.) 15% 93,104 1.76 8.1 92,046 1.74 9.7 20% 126.180 2.39 8.5 146,098 2.76 10.3 Incremental costs depend on the energy efficiency features used by the designer/builder to achieve compliance. Anyone building can achieve compliance in a number of ways and therefore, the cost of compliance can vary. Similarly, paybacks depend on the specific selection of energy measures, how they perform in a specific building design in a particular climate zone, and what the first costs are for those measures. As stated in the study, "A set of energy measures is generally considered cost-effective if the payback is less than the average useful life of those measures. In residential construction, for example, most energy measures will typically last at least 15 years, and most will not function beyond 30 years. So energy measures with a payback of around 15 years or less would usually be cost-effective, and a payback beyond 30 years usually would not. Paybacks between 15 and 30 years may be cost-effective depending on the weighted average useful life of the measures selected." The useful life of insulation is about 50 years, for windows and doors is about 20 years, for air heating/cooling units is about 18 years and for domestic water heaters is about 14 years. Charts I and 2 below show the payback periods for CZ 7 and CZ 10, respectively: Chart 1 Payback Periods - CZ 7 35 30 25 Ul 20 ... >- 15 10 5 o -~ - - .. - - ~I .. - - - - - - - - ... - -\d - - - - - - .J. - - - - - ,.. , T24+10% -----+- SFD -....MF T24+15% - .. - HRR T24+20% - 'A- - NR 11-5 Item No.: /I Meeting Date:l0/20/09 Page 6 of 10 Chart 2 Payback Periods - CZ 10 30 25 ........... '. ..-~.-. ...~ .. . .. -~":" 20 . ..... . '0 '. - oO'(-~1 Ul ... 15 - >- ~J-:~._._ ---- 10 -. . - '-.J 5 0 T24+10% T24+15% T24+20% --+- SFD 0...... MF -........ HRR -....-NR Chart 1 for CZ 7 shows the payback period for low-rise multi-family for the 15% level to be over the 30-year line, whereas for the 20% level, the payback period is closer to the 15-year line. This gives the notion that, in general, for low-rise multi-family in CZ 7, the 20% level is more cost effective than the 15% level, which is not the case. For the 20% level, the consultant introduced instantaneous tankless gas hot water heaters, a readily available but not a standard measure, instead of simply increasing the efficiency of standard measures such as insulation or standard hot water heaters. The consultant could have introduced the instantaneous tankless gas hot water heaters at the 15% level and the payback period for the 15% level would have been close to or below the 15-year line making the 15% level more cost effective than the 20% level. This emphasizes what was previously noted that the combination of energy efficiency measures used in the case studies to reach the various thresholds do not represent a comprehensive analysis of all possible combinations of energy efficiency measures or the most cost effective combination. Energy Subcommittee Meetings On May 6, 2009, staff presented the cost-effectiveness study and staff recommendation to the City Council Energy Subcommittee. The initial study consisted of case studies analyzing the upfront incremental cost and payback periods resulting from requiring low-rise residential projects (three stories or less) to be more energy efficient than the 08 Standards by 10%, 15%, and 20%, and non-residential and high-rise residential by 10%. At that time, staff proposed requiring low-rise residential to be 15% more energy efficient than the 08 Standards, and 10% for high-rise residential and non-residentiaL The Subcommittee asked staff to return with additional information on the impact of 15% and 20% above the 08 Standards for non-residential and high-rise residential. Staff worked with SDG&E on amending their contract with the consultant to include the additional case studies. Staff returned to the Subcommittee on August 3, 2009 and presented the updated study and proposed 15% above the 08 Standards for both residential and non-residential, and proposed exempting low-rise residential additions and alterations that are less than or equal to 1,000 square feet, and high-rise residential and non- residential additions and alterations that are less than or equal to 10,000 square feet In addition, 11-6 Item No.: / / Meeting Date:l0/20!09 Page 7 of 10 staff proposed including a placeholder in the Ordinance for a future community design energy credit option. The Subcommittee modified staffs proposal with a recommendation to require 20% above the 08 Standards for low-rise residential in CZIO, the harsher climate zone covering the most easterly part of the City. Furthermore, the Subcommittee directed staff to provide statistical data on the median size of residential additions in the City to help idcntify if the 1,000 square foot threshold for residential addition/alteration is a reasonable size. Staff met with both Subcommittee members individually and presented the requested information and the reasoning for the 1,000 square foot low-rise residential addition/alteration exemption threshold (discussed below). Both members are in support of the residential exemption threshold. The Subcommittee also provided input and direction to staff regarding the encrgy credit option within new SPA Plan areas. While they supported retaining the option, the Subcommittee directed that staff remove Ordinance provisions specifying particular amounts of credit at this time. Staff had proposed allowing a third of the 15 % or 20% efficiency increase for buildings to be credited if the SPA Plan met performance criteria. The Subcommittee asked that more specific information be gathered as to the energy saving value of various SPA Plan community and site design features before determining what level of credit should be granted. They wanted some level of empirical measurement that the building savings to be forcgone would reasonably be offset. Staff indicated that this is an active and evolving area of research, and that it may take approximately a year before reliable information is vetted based on current status of several studies regarding the energy and carbon saving values of community design and site planning features. In the mean time, the Subcommittee supported placeholdcr language in the Ordinance that allows the credit option subject to future guidelines. Additions. Remodels and Alterations Exemption Thresholds The consultant recommended exempting low-rise residential additions, remodels or alterations that are less than or equal to 1,000 square feet, and high-rise residential and non-residential additions, remodels or alterations that arc less than or equal to 10,000 square feet. Based on the consultant's experience, small additions tend to have long payback periods especially if they have to upgrade the existing house to get the addition to meet the increased standards. It costs more to replace or upgrade an existing component than simply installing a more energy efficient one in a new building. In addition, the incremental cost is a larger pcrcentage of the overall construction cost for a small addition than a large addition. Furthermore, requiring the increased standards on these types of projects takes away the prescriptive compliance option which is currently available to permit applicants. The prescriptive option is a simple prepackaged option where all new or altered components will need to meet predetermined requirements. Typically, this option does not require the involvement of an energy consultant or computer analysis. If the increased standards are to be required on small additions or alterations, applicants will have to use the performance option to demonstrate compliance; a CEC approved compliance software which typically involves an energy consultant which adds coordination time and cost to the project. Energv Credit Option The proposed Ordinance includes an energy credit option for building construction within Sectional Planning Area (SPA) Plan project areas whose SPA is approved subsequent to the 11-7 Item No.: / I Meeting Date:l0/20/09 Page 8 of 10 effective date of the proposed Ordinance (see Section 15.26.030E). The option encourages energy savings early in the site planning process, provides flexibility and recognizes savings through community site design. Under this option, the developer may meet a portion of the increased building energy efficiency standards provided the SPA Plan has satisfied the qualifying thresholds for community design and site planning features as established in the SPA's approved Air Quality Improvement Plan (AQIP). Those thresholds have been included as part of draft revised AQIP Guidelines that statI will be presenting for Council action in early November. If the approved AQIP has met the qualifying thresholds, the applicant may request and receive an energy savings credit towards a portion of the increased standards subject to approval by the Director of Development Services, and subject to applicable guidelines in effect at the time of the request for credit. Other J urisdictions/Programs The consultant informed staff that other jurisdictions he is assisting with adopting increased standards are considering requiring only 15% above the 08 Standards for both residential and non residential; San Francisco, San Jose, Santa Rosa, Palo Alto, Berkley, Richmond, County Sonoma and Marin County. In addition, Build-It-Green, a well recognized nonprofit organization that promotes green building and sustainability practices in California is setting the qualification level for their Green Point Rated program at 15% above the 08 Standards. Furthermore, the State is proposing changes to the voluntary measures in the California Green Building Standards Code to provide a designation of CALGREEN Tier 1 and Tier 2 to buildings exceeding the minimum State standards by 15% and 30%, respectively. Incenti ves Homes built to at least 15% above the 08 Standards may qualify for incentive programs offered by SDG&E such as the CA Energy Star New Homes program or the New Solar Homes Partnership program. The incentive per Single-Family under the CA Energy Star New Homes program is about $400 and $500 for CZ 7 and CZ 10, respectively. For Multi-Family, the incentive per dwelling unit is $150 and $200 for CZ 7 and CZ 10, respectively. As for nonresidential projects, SDG&E has an incentive program called Savings By Design offering owner incentives of up to $150,000, and design team incentives of up to $50,000. These incentives will reduce the upfront cost for qualifying buildings. Based on the average incremental costs and payback periods shown above, SDG&E incentives can potentially reduce the initial cost and payback period for a new home that is 15% better than the 08 Standards and in CZ 7 as follows: 1498 ..... .Incentive':: 'o"'LReduced . ($) '.. ". . Iriitiaid;t ($) : . ~,'~'\ ' 68 400 1098 R~lIu!,ed' ;; Payback '. ,. ',' rS', 16 Initi,al Cos! ($) . . Energy .. . . . '" : Sa~ings ~$/yr:): . . Estimated Combined Cost The table below shows the estimated combined incremental cost of the new 08 Standards which will take effect Statewide on January I, 2010, the recently adopted green building standards which will be mandated Statewide for residential in 2011, and the proposed increased energy 11-8 Item No.: II Meeting Date: I 0/20/09 Page 9 of 10 efticiency standards for a new single-family residence that IS 15% and 20% above the 08 Standards in CZ 7 and CZ 10, respectively: .' "'::-',1;' ", ",c"" :,' ':,',~:': ' ' , :,<'i'i,:i:;~: :,);~, ~,. .' " '",\CZT(15% iE' """" , "',CZ10,(20% ) .,..' New 08 Standards (Mandated Statewide $0,55/sf $0,65/sf 1/1/2010) HCD's Green Building Stds, (Mandated $0,60/sf $0,60/sf Statewide 1/1/201 L \Vater conservation measures 7/1/2011) 15% Above 08 Stds, (ProDosed Ordinance) $0,62/sf - 20% above 08 Stds, (Proposed Ordinance) - $ L30/sf Sum 51.77/sf $2.55/sf % of Total Const. Cost * 1.48% 2.13% For 2,500 square foot residence $4,425 $6,375 SDG&E Incentive -$400 -$500 Adiusted Cost $4,025 $5,875 Adiusted cost/sf $l.61/sf $2,35/sf Ad iusted % of Total Const. Cost * 1.34% 1.96% * Based on estimated building construction cost of $120 per square foot. Expiration ofIncreased Standards Pursuant to State law, local amendments to the California Energy Code will no longer be in effect the date a new California Energy Code takes effect. Therefore, Section 15.26,030 of the proposed Ordinance, Increased Energy Efficiency Standards, will have to expire upon the date the 2008 Building Energy Efficiency Standards are no longer in effect. Amendments to future State building energy efficiency standards will have to go through the CEC approval and local adoption processes, Regardless of the periodic expirations and the need to readopt local standards, it is staff s understanding that the City Council desires that our local standards always exceed the minimums required under the State building energy efficiency standards, To this end, staff would intend to pursue the currently proposed levels of 15% and 20% above State building energy efficiency standards for climate zones 7 and 10, respectively, for future code updates, and will conduct its reevaluations of cost-effectiveness using those levels, We would then return to Council to present the study results as to the cost-effectiveness of continuing to apply the 15% and 20% levels prior to proceeding with the required local adoption and CEC approval process, In the event that the Council, based on the study, determines that sustaining the 15% and 20% levels is not cost-effective, Council can provide appropriate direction to staff at that time, It would be staffs goal to carry out these actions so that the City's standards would be in place no later than the effective date of the State's new standards, DECISION MAKER CONFLICT Staff has determined that the recommendations requiring Council action are 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. CURRENT YEAR FISCAL IMP ACT 11-9 Item No.: / / Meeting Date: 10/20/09 Page 10 of 10 Building permit fees will need to be adjusted to recover the cost of the additional staff time associated with plan review and inspection. The additional staff time will be accounted for in a comprehensive building permit fee study which staff anticipates finalizing and presenting to Council in December 2009. ONGOING FISCAL IMPACT No ongoing fiscal impact. The additional building permit review and inspection time associated with implementing this Ordinance will be funded through updated building permit fees. ATTACHMENTS A. Board of Appeals and Advisors September 14, 2009 Meeting Minutes. B. Climate Zones Map C. Cost-Effectiveness Case Studies by Gabel Associates, LLC, July 22, 2009. Prepared by: LOll EI-Khazen, Building Official, Development Services Department 11-10 [ID~~lf ATTACHMENT "A" MINUTES OF A REGULAR MEETING BOARD OF APPEALS AND ADVISORS CITY OF CHULA VISTA, CALIFORNIA September 14, 2009 Conference Room #137 276 Fourth Ave. Chula Vista, CA 91910 5:15 PM MEMBERS PRESENT: Chairman Buddingh, Flach, Sides, Buencamino-Andrew and Lopez (Buencamino-Andrews left at 6:00 pm) MEMBERS ABSENT: None CITY STAFF PRESENT: Lou EI-Khazen, Building Official; Rosemarie Rice, Secretary, Andrew McGuire, Ed Batchelder OTHERS PRESENT: Scott Molloy, BIA CALL MEETING TO ORDER: Chairman Buddingh called meeting to order at 5:15 PM. ROLL CALL: Members present constituted a quorum. APPROVAL OF MINUTES: August 10, 2009 MSC (Flach/Sides) (5-0-) Approve the minutes of August 10, 2009. Motion carried. 2. NEW BUSINESS: A. Review of ordinance of the City of Chula Vista amending Chapter 15.26 of the Chula Vista Municipal Code and adding Section 15.26.030, Increased Efficiency Standards. 3. MEMBERS COMMENTS/CHAIRMAN'S COMMENTS/REPORTS: Chair Buddingh reminded the committee that there were two vacancies to fill; if they knew of anyone with a building construction background please encouraged them to apply. Mr. EI-Khazen also noted he would be interviewing a potential candidate possibly next week. 5. BUILDING OFFICIAL'S COMMENTS/REPORTS: Building Official, Lou EI-Khazen, presented the proposed ordinance and gave a power point presentation providing background information on the proposed increased energy efficiency standards. Ed Batchelder, Advance Planning Manager gave an explanation of the energy credit savings option and how it will apply to projects in Chula Vista within Sectional Planning Areas (SPA). Scott Molloy, with the Building Industry Association commented on the financial impact to the building industry and home prices and asked that it be voluntary accompanied with incentives such as expedited permitting process. After deliberation, the Board of Appeal and Advisors unanimously recommended that City Council adopt the proposed ordinance. 11-11 Board of Appeals & Advisors Meeting Minutes September 14, 2009 MSC (Buddingh/Flach) (4-0-0-1) Recommend to City Council that they amend Chapter 15.26 of the City of Chula Vista Municipal Code and add Section 15.26.030, Increased Energy Efficiency Standards. 6 COMMUNICATIONS (PUBLIC REMARKSI WRITTEN CORRESPONDENCE): None 7. ADJOURNMENT: Chair Buddingh adjourned the meeting at 6:45 p.m. to a regular meeting on October 12, 2009 at 5:15 p.m. in Planning and Building Conference Room #137. MINUTES TAKEN BY. ROSEMARIE RICE, SECRETARY DEVELOPMENT SERVICES DEPARTMENT - BUILDING DIVISION 11-12 c::l '" '" ~ o N '" ~ c:l .S u c I ... = OJ E ..:: <.l c:: ... ... ~ <1.: II. . '::S-~:~+'r~' , iV'''':.;:' ,~ A I~" &" ' I#~ ,,"'.11' ;.'1- . ., i- c c / I t....r "", -, ' 'I ) .. ' ']y- -; lJ" f.> I 'l~'- :o,.-:?, \ f':') H ,.' "~..LJ.::1::'>:. I, ~Ti;1/ . ~~)~ \ -~,e" i'tT"-.:'. E:~' '.:'- it ~ ' . [""1,,1 .lJ i <L." df ;:"~' '~ 1 1 \.--- ~ " ~, ';''::.'-';'\ ,.J\. .~. <:-.~ \rrrr'fT1~ l~\.\\ ~ =?ifi..'. <,llfthl ~~"'< " .---- ......c , "- \, \,-- n---) ./ 11-13 Attachment C Cost-Effectiveness Case Studies Under the 2008 Title 24 Building Energy Efficiency Standards For the 2009 Chula Vista Energy Ordinance July 22, 2009 Report prepared for: Lou EI-Khazen, PE, CBO City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 (619) 409-1960 Email: lelkhazen@ci.chula-vista.ca.us Report prepared bv: Michael Gabel Gabel Associates, LLC 1818 Harmon Street, Suite #1 . Berkeley, CA 94703 (510) 428-0803 mike@qabelenerqV.com 11 -1 4. Table of Contents 1.0 Executive Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1 2.0 Impacts of the 2008 Standards ....................................... 2 2.1 Single Family House Case Studies ................. . . . . . . . . . . . . . 3 2.2 Low-rise Multi-family Building Case Study . . . . . . . . . . . . . . . . . . . . . . . 8 2.3 High rise Residential Case Study. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 11 2.4 Nonresidential Building Case Study. . . . . . . . . . . . . . . . . . . . . . . . . . . .. 16 3.0 Cost Effectiveness ................................................ 22 3.1 Climate Zone #7 Results ..................... . . . . . . . . . . . . . . . . . . 23 3.2 Climate Zone #10 Results. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 4.0 Policy Recommendations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 11-15 1.0 Executive Summary Gabel Associates has researched and reviewed the feasibility and energy cost- effectiveness of permit applicants exceeding the state's 2008 Building Energy Efficiency Standards, which take effect January 1, 2010, in order to meet the minimum energy- efficiency requirements of a proposed Chula Vista Ordinance. The study contained in this report shall be included in Chula Vista's application to the California Energy Commission which must meet the requirements specified in Section 10-106 of the California Code of Regulations, Title 24, Part 1 , LOCALLY ADOPTED ENERGY STANDARDS. The proposed Chula Vista ordinance shall be enforceable after the Commission has reviewed and approved the local energy standards as meeting all requirements of Section 10-106; and the Ordinance has been filed with the Building Standards Commission. Case studies of several building designs were used to consider the cost-effectiveness of exceeding the 2008 Title 24 Building Energy Efficiency Standards in the two California climate zones within Chula Vista, Zones 7 and 10. The case studies have been used to consider the following questions for common building types in each climate zone: . What set of energy measures are needed to just meet the 2008 Standards? And what sets of additional measures are needed to reduce the standard TDV energy in KBtu/sf-yr by 10%,15% and 20% for low-rise residential buildings, and by 10% for high-rise residential and nonresidential buildings. . What is the incremental (added) construction cost of the various sets of energy measures? And what are those costs per square foot? . What is the annual energy saving in each case study? What is the annual energy cost saving for each scenario? . What is the Simple Payback for the added energy measures? . What is the C02-equivalent reduction in emissions from each scenario (Ib.lsf-yr)? . What level or levels of energy efficiency that exceed the 2008 Standard appear cost-effective in these climate zones? Energy Cost-Effectiveness Study for City of Chu/a Vista, 7/22/09 Page 1 11-16 2.0 Impacts of the New Ordinance Energy performance impacts of the Ordinance have been evaluated using several case studies which refiect a broad range of building types covered by the Ordinance. . Two single family homes . A low-rise multi-family building . A high-rise residential building . A nonresidential (office) building Overall Case Study Method The methodology used in these case studies is based on the way that real buildings are designed and evaluated in just meeting or exceeding the energy standards. (a) Each building design is tested for compliance with the 2008 Standards. The energy measures chosen are not all the prescriptive measures, but are a combination of measures which refiects how designers, builders and developers are likely to achieve a specified level of performance. For single family home designs, all four cardinal orientations are run to find the worst-case scenario for this step and in step (b) below. (b) Starting with a 2008 Standards minimally compliant set of measures, various items are changed to just reach the next increment of energy performance (e.g, 10%, 15% and 20% better than Title 24). In this study, the design choices are based on many years of experience with architects, mechanical engineers and builders as well general knowledge of the relative incremental costs of most measures (c) A minimum and maximum range of incremental costs of added energy measures is established by a variety of research means. Site energy in KWh and Therms is calculated for each run to establish the annual energy savings, energy cost savings and C02-equivalent reductions in greenhouse gases. (d) Different metrics are generated to illustrate different aspects of cost-effectiveness by building type and climate zone. The goal of these case studies is to provide relatively real-world order-of-magnitude results for local jurisdictions attempting to understand and calibrate energy and cost impacts of local energy ordinances or local green building ordinances. In this limited study, no attempt has been made to gather statistically significant data that can be applied to all new construction projects and thereby determine the macro-effects of specific policy decisions. Energy Cost~Effectiveness Study for City Df Chula Vista, 7/22/09 Page 2 11-17 2.1 Single Family House Case Studies House Desiqns. A typical single family home design is modeled to just meet the overall TDV energy performance requirements of 2008 Title 24 standards using a 2008 Standards research version of Micropas. Incremental improvements to building energy efficiency measures then are made to reduce TDV energy to: (a) 10% less than the 2008 standards; (b) 15% less than the 2008 standards; and, (c) 20% less than the 2008 standards. The following measures were first evaluated so that the house design just meets the 2008 standards in each climate zone. CLIMATE ZONE #7 Climate Zone #7: 2,025 SF 2-story home 2008 Title 24 Base Case, 20.2% total glazing area: . R-38 roof wI radiant barrier . R-13 exterior walls . R-O slab-on-grade, R-19 over garage at 2nd floor . Low E vinyl windows, U=OAO, SHGC=0.36 wI no overhangs . Furnace: 80% AFUE; No Cooling . R-6.0 ducts in the attic . DHW: 50 gallon gas water heater, EF=0.62; no extra pipe insulation Climate Zone #7: 2,975 SF 2-story home 2008 Title 24 Base Case, 22.0% total glazing area: . R-38 roof wI radiant barrier . R-15 exterior walls . R-O slab-on-grade, R-19 over garage at 2nd floor . Low E vinyl windows, U=OAO, SHGC=0.36 wI no overhangs . Furnace: 80% AFUE; No Cooling . R-6.0 ducts in the attic . DHW: 50 gallon gas water heater, EF=0.62; no extra pipe insulation Energy Cost-Effectiveness Study for City of Chula Vista, 7/22/09 Page 3 11-18 CLIMATE ZONE #10 Climate Zone #10: 2,025 SF 2-story home 2008 Title 24 Base Case, 20.2% total glazing area: . R-38 roof w/ radiant barrier . R-15 exterior walls . R-O slab-on-grade, R-19 over garage at 2nd floor . Low E2 vinyl windows, U=0.36, SHGC=0.30 w/ no overhangs . Furnace, 80% AFUE . Air Conditioner, 13.0 SEER: TXV + Refrig. Charge (HERS) . R-6 ducts in the attic . Reduced duct leakage/testing (HERS) . DHW: 50 gallon gas water heater, EF=0.62; w/ all pipe insulation Climate Zone #10: 2,975 SF 2-story home 2008 Title 24 Base Case, 22.0% total glazing area: . R-38 roof w/ radiant barrier . R-15 exterior walls . R-O slab-on-grade . Low E2 vinyl windows, U=0.36, SHGC=0.23 w/ no overhangs . Furnace, 80% AFUE . Air Conditioner, 13.0 SEER / 11.0 EER (HERS): TXV + Refrig. Charge (HERS) . R-6 ducts in the attic . Reduced duct leakage/testing (HERS) . DHW: 50 gallon gas water heater, EF=0.62; no extra pipe insulation EnerQY Measures Needed to Exceed the 2008 Standards The following energy features have been modified from the above Title 24 set of measures so that the proposed design uses less TDV energy than the 2008 standards. The added first cost of that measure compared with the equivalent 2008 Title 24 design measure is listed to the right, and the sum of all incremental costs is listed. CLIMATE ZONE #7 (A-10%) 2,025 sa.ft. (Reduction in 2008 T24 TDV Eneray by 10%) . R-15 wall: 2,550 sf @$0.12 to $0.20/sf $ . Reduced duct leakaqe (installation testinq & HERS inspection) $ Total incremental cost of Ordinance energy measure: $ Incremental cost in $/sq.ft.: $ Average Incremental Cost = $858 or $0.42 Isf 305 510 300 600 605 - 1,110 0.30 to 0.55 Isq.ft. Energy Cost.Effectiveness Study for City of Chula Vista, 7/22109 Page 4 11-19 (A-15%) 2,025 SQ.ft. (Reduction in 2008 T24 TDV EnerQY by 15%) . R-15 wall: 2,550 sf @$0.12 to $0.20/sf $ . Low-E2 windows. U-factor=0.36, SHGC=0.30 $ 409 sf @ $1.35 - $1.50/sf . Reduced duct leakaQe (installation testinq & HERS inspection) Total incremental cost of Ordinance energy measure: Incremental cost in $/sq.ft.: Average Incremental Cost = $1,440 or $0.71 Isf 305 550 510 615 $ 300 600 $1,155 -1,725 $ 0.57 to 0.85 Isq.ft. (A-20%) 2.025 SQ.ft. (Reduction in 2008 T24 TDV EnerQY by 20%) . R-15 wall: 2,550 sf @$0.12to$0.20/sf . Low-E2 windows: U-factor=0.36, SHGC=0.30 409 sf @ $1.35 - $1.50/sf . R-4.2 ducts (from R-6.0) . Tankless qas DHW, 0.80 EF (5 to 10 qpm) Total incremental cost of Ordinance energy measure: Incremental cost in $/sq.ft.: Average Incremental Cost = $1,915 or $0.95 Isf $ 305 510 $ 550 - 615 $ (325 - 225) $ 900 - 1.500 $ 1,430 - 2,400 $ 0.71 to 1.19/sq.ft. (A-10%) 2.975 SQ.ft. (Reduction in 2008 T24 TDV EnerQY by 10%) . R-13 walls (from R-15): 2,204 sf @$0.12to$0.20/sf $ (440 - 265) . Low-E2 windows: U-factor=0.36, SHGC=0.30 $ 885 - 980 655 sf @ $1.35 - $1.50/sf . Reduced duct leakaqe (installation testinq & HERS inspection) $ 300 - 600 Total incremental cost of Ordinance energy measure: $ 745 -1,315 Incremental cost in $/sq.ft.: $ 0.25 to 0.44 Isq.ft. Average Incremental Cost = $1,030 or $0.35 Isf (A-15%) 2.975 SQ.ft. (Reduction in 2008 T24 TDV EnerQY by 15%) . R-30 roof (from R-38): 1,775 sf @$0.10 to $0.15/sf . R-13 walls (from R-15): 2,204 sf @$0.12 to $0.20/sf . Low-E2 windows: U-factor=0.36, SHGC=0.30 655 sf @ $1.35 - $1.50/sf . Tankless qas DHW, 0.80 EF (5 to 10 qpm) Total incremental cost of Ordinance energy measure: Incremental cost in $/sq.ft.: Average Incremental Cost = $1,555 or $0.52 Isf $ (270 180) $ (440 - 265) $ 885 980 $ 900 - 1.500 $ 1,075 - 2,035 $ 0.36 to 0.68 Isq.ft. Energy Cost-Effectiveness Study for City of Chula Vista, 7/22/09 Page 5 11-20 (A-20%) 2,975 sCl.fi. (Reduction in 2008 T24 TDV EnerClY by 20%) . R-8 attic ducts $ . Low-E2 windows: U-factor=0.36, SHGC=0.30 $ 655 sf@ $1.35 - $1.50/sf . Tankless Clas DHW, 0.80 EF (5 to 10 Clom) Total incremental cost of Ordinance energy measure: Incremental cost in $/sq.ft.: Average Incremental Cost = $2,458 or $0.83 1st CLIMATE ZONE #10 275 - 375 885 - 980 $ 900 - 1.500 $ 2,060 - 2,855 $ 0.69 to 0.96/sq.ft. (A-10%) 2,025 sCl.fi. (Reduction in 2008 T24 TDV EnerClY by 10%) . 15 SEER/12 EER air conditioner (HERS) . R-8 attic ducts Total incremental cost of Ordinance energy measure: Incremental cost in $/sq.fi.: Average Incremental Cost = $1,325 or $0.65 1st $ 500 -1,500 $ 275 - 375 $ 775 - 1,875 $ 0.38 to 0.93/sq.fi. (A-15%) 2,025 sCl.fi. (Reduction in 2008 T24 TDV EnerClY by 15%) . R-30 floor over garage: 448 sf @ $0.12 to $0.20/sf . 15 SEER/12 EER air conditioner (HERS) . No extra pipe insulation . Tankless Clas DHW, 0.80 EF (5 to 10 Clom) Total incremental cost of Ordinance energy measure: Incremental cost in $/sq.fi.: A verage Incremental Cost = $2,098 or $1.04 1st $ 55 - 90 $ 500 - 1,500 $ (200 - 150) $ 900 - 1,500 $ 1,255 - 2,940 $ 0.62 to 1.45 Isq.fi. (A-20%) 2.025 sCl.fi. (Reduction in 2008 T24 TDV EnerClY by 20%) . R-30 floor over garage: 448 sf@ $0.12 to $0,20/sf . 15 SEER/12 EER air conditioner (HERS) . No extra pipe insulation . Quality insulation installation (includes HERS inspection) . Tankless qas DHW, 0.80 EF (5 to 10 qom) Total incremental cost of Ordinance energy measure: Incremental cost in $/sq.fi.: Average Incremental Cost = $2,398 or $1.18 1st Energy Cost-Effectiveness Study for City of Chula Vista, 7/22/09 11-21. $ 55 - 90 $ 500 - 1,500 $ (200 - 150) $ 250 - 350 $ 900 - 1,500 $ 1,505 - 3,290 $ 0.74 to 1.62 /sq.ft. Page 6 (A-10%) 2.975 sa.ft. (Reduction in 2008 T24 TOY Eneray by 10%) . R-13 walls (from R-15): 2,204 sf @$0.12 to $0.20/sf . 15 SEER/12 EER air conditioner (HERS) . R-8 attic ducts . Tankless qas DHW 0.80 EF (5 to 10 qom) Total incremental cost of Ordinance energy measure: Incremental cost in $/sq.ft.: Average Incremental Cost = $2,173 or $0.73 1st $ (440 - 265) $ 500 -1,500 $ 275 - 375 $ 900 - 1.500 $1,235 -3,110 $ 0.42 to 1.05/sq.ft. (A-15%) 2.975 sa.ft. (Reduction in 2008 T24 TOY Eneray by 15%) . R-13 walls (from R-15): 2,204 sf @$0.12 to $0.20/sf . Super Low-E2 windows: U-factor=O 36, SHGC=0.23 655 sf@$1.35-$1.50/sf . 15 SEER/12 EER air conditioner (HERS) . Tankless aas DHW 0.80 EF (5 to 10 aom) Total incremental cost of Ordinance energy measure: Incremental cost in $/sq.ft.: $ Average Incremental Cost = $2,780 or $0.93 1st $ (440 265) $ 885 - 980 $ 500 -1,500 $ 900 - 1.500 $ 1,845 - 3,715 0.62 to 1.25 Isq.ft. (A-20%) 2.975 sa.ft. (Reduction in 2008 T24 TOY Eneray by 20%) . Super Low-E2 windows: U-factor=0.36, SHGC=0.23 $ 655 sf @ $1.35 - $1.50/sf . Furnace, 90% AFUE (from 80%) . 15 SEER/12 EER air conditioner (HERS) . R-8 attic ducts . Tankless qas DHW 0.80 EF (5 to 10 aorn) Total incremental cost of Ordinance energy measure: Incremental cost in $/sq.ft.: $ Average Incremental Cost = $4,208 or $1.41 1st Energy Cost-Effectiveness Study for City of Chula Vista, 7/22/09 11-22 885 - 980 $ 500 - 1,000 $ 500 - 1 ,500 $ 275 - 375 $ 900 - 1.500 $ 3,060 - 5,355 1.03 to 1.80 Isq.ft. Page 7 2.2 Low-rise Multi-family Building Case Study BuildinQ DesiQn. A typical 8-unit, 2-story low-rise multi-family building is modeled to just meet the overall TDV energy performance requirements of 2008 Title 24 standards using a 2008 Standards research version of Micropas. Incremental improvements to building energy efficiency measures then are made to reduce TDV energy to: (a) 10% less than the 2008 standards; (b) 15% less than the 2008 standards; (c) 20% less than the 2008 standards; and, The following measures were first evaluated so that the house design just meets the 2008 standards in each climate zone as follows: Climate Zone #7: 8,442 SF 2-story building 2008 Title 24 Base Case, 12.5% total glazing area: . R-30 roof, R-13 exterior walls, slab-on-grade 1st floor . Dual vinyl windows, U=OAO, SHGC=0.36 wi no overhangs . Furnaces: 80% AFUE; No Cooling . R-4.2 ducts in the attic . DHW: 40 gallon gas water heater, EF=0.60; no extra pipe insulation Climate Zone #10: 8,442 SF 2-story building 2008 Title 24 Base Case, 12.5% total glazing area: . R-38 roof wi radiant barrier, R-15 exterior walls, slab-on-grade 1 sl floor . House wrap . Dual vinyl windows, U=0.36, SHGC=0.30 wi no overhangs . Furnaces: 80% AFUE . Air conditioner: 13.0 SEER, 10.0 EER . Reduced duct leakage (HERS measure) . R-8 ducts in the attic . DHW: 40 gallon gas water heater, EF=0.63; extra pipe insulation EnerQV Measures Needed to Exceed the 2008 Standards The following energy features have been modified from the above Title 24 set of measures so that the proposed design uses less TDV energy than the 2008 standards. The added first cost of that measure compared with the equivalent 2008 Title 24 design measure is listed to the right, and the sum of all incremental costs is listed. Energy Cost-Effectiveness Study for City of Chula Vista, 7/22/09 Page 8 11-23 CLlMA TE ZONE #7 (A-10%) 8.442 SQ.ft. (Reduction in 2008 T24 TDV Enerqy by 10%) . R-38 roof, 2,880 sf @$0.1 0 - $0.20 Isf . $ . R-6 ducts (from R-4.2) $ . Low-E2 windows: U-factor=0.36, SHGC=0.30 1,055 sf @ $1.00 - $1.50/sf . (8) 0.63 EF water heaters (from 0.60 EF) . House wrap: 9.266 sf @ $0.08 to $0.12/sf Total incremental cost of Ordinance energy measure: Incremental cost in $/sq.ft.: Average Incremental Cost = $5,083 or $0.60 1st 290 - 575 1,000 - 1,400 $ 1,055 - 1 ,585 $ 800 - 1,600 $ 745 - 1.115 $ 3,890 - 6,275 $ 0.46 to 0.74/sq.ft. (A-15%) 8.442 Sq.ft. (Reduction in 2008 T24 TDV Enerqy by 15%) . R-38 roof, 2,880 sf @$0.10 - $0.20 Isf . R-6 ducts (from R-4.2) . Low-E2 windows: U-factor=0.36, SHGC=0.30 1,055 sf @ $1.00 - $1.50/sf $ . (8) 063 EF water heaters (from 0.60 EF) $ . Reduced duct leakage (installation testing & HERS inspection) $ . R-15 wall insulation: 9,266_sf@ $0.06 to $0.08 sf. $ . Pipe insulation @$150 - $300/unit $ Total incremental cost of Ordinance energy measure: $ Incremental cost in $/sq.ft.: $ Average Incremental Cost = $9,605 or $1.14 1st $ 290 - 575 $ 1,000 - 1 ,400 1,055 - 1,585 800 - 1,600 2000 - 4000 560 - 745 1.200 - 2.400 6,905-12,305 0.82 to 1.46 Isq.ft. (A-20%) 8,442 SQ.ft. (Reduction in 2008 T24 TDV Enerqy by 20%) . R-19 roof, 2,880 sf@$0.19-$0.22/sf . (8) 0.80 EF tankless water heaters (from 0.60 EF) . Low-E2 windows: U-factor=0.36, SHGC=0.30 1,055 sf@$1.00-$1.50/sf . No roof radiant barrier 2.880sf @-$0.12 to -$0. 18/sf Total incremental cost of Ordinance energy measure: Incremental cost in $/sq.ft.: Average Incremental Cost = $9,915 or $1.17 1st ($ 635 - 545) $ 7,200 -12,000 $ 1,055 - 1,585 ($ 520 - 345) $ 7,045 - 12,785 $ 0.83 to 1.51/sq.ft. Energy Cost-Effectiveness Study for City of ChuJa Vista. 7/22/09 Page 9 11-24 CLIMATE ZONE #10 (A-10%1 8,442 SQ.ft. (Reduction in 2008 T24 TOY EnerQY by 10%1 . R-6 ducts (from R-8) ($ 1,600 - 1,000) . Reduced duct leakage (installation testing & HERS inspection) $ 2000 - 4000 . TXV/Refrig. Charge (HERS inspection) $ 300 - 500 . (8) 15 SEER/12 EER air conditioners $ 2.800 -10.800 Total incremental cost of Ordinance energy measure: $ 3,500 -14,300 Incremental cost in $/sq.ft.: $ 0.41 to 1.69 /sq.ft. Average Incremental Cost = $8,900 or $1.05 1st (A-15%1 8,442 SQ.ft. (Reduction in 2008 T24 TOY EnerQY by 15%1 . Reduced duct leakage (installation testing & HERS inspection) . TXV/Refrig. Charge (HERS inspection) . Low-E3 windows: U-factor=0.36, SHGC=0.23 1,055 sf @ $1.35 - $1.50/sf . (8) 15 SEER/12 EER air conditioners Total incremental cost of Ordinance energy measure: Incremental cost in $/sq.ft.: Average Incremental Cost = $11,705 or $1.39 1st $ 2000 - 4000 $ 300 - 500 $ 1,425 -1,585 $ 2.800 -10.800 $ 6,525 -16,885 $ 0.77 to 2.00 /sq.ft. (A-20%1 8,442 SQ.ft. (Reduction in 2008 T24 TOY EnerQY by 20%1 . (8) 15 SEER/12 EER air conditioners $ 2,800 -10,800 . TXV/Refrig. Charge (HERS inspection) $ 300 - 500 . Reduced duct leakage (installation testing & HERS inspection) $ 2,000 - 4,000 . R-6 ducts (from R-8) ($ 1,600 - 1,000) . No pipe insulation @$150 - $300/unit ($ 2,400 - 1,200) . No house wrap: 9,266 sf @ $0.08 to $0.12/sf ($ 1,115 - 745) . (810.80 EF tankless water heaters (from 0.63 EFl $ 6.400 -10.400 Total incremental cost of Ordinance energy measure: $ 6,385 - 22,755 Incremental cost in $/sq.ft.: $ 0.76 to 2.70 Isq.ft. Average Incremental Cost = $14,570 or $1.73 1st Energy Cost-Effectiveness Study for City of Chura Vista. 7/22/09 Page 10 11-25 2.3 High-Residential Building Case Study Hiqh Residential Buildinq Desiqn. A typical high-rise residential building has been modeled with a research version of EnergyPro has been used to evaluate compliance with the 2008 Nonresidential, Hotel/Motel and High-rise Residential standards. The following measures were evaluated so the building just meets the 2008 standards. Buildinq Description: 36,800 SF, 4 stories of apartments above a 1st floor retail level building, 35.2% Window Wall Ratio glazing area, wI 40 dwelling units, including the following energy measures: Climate Zone #7 Base Case Measures Which Just Meet 2008 Title 24 . R-19 attic insulation, R-19 walls in metal stud exterior walls . Un-insulated (R-O) raised slab floor over parking garage; . Dual metal NFRC-rated Low-E windows: U-factor=0.48, SHGC=0.43 . (2) room heat pumps for each dwelling unit: HSPF=7.2, EER=10.2 . Central domestic hot water boiler, 80% AFUE; re-circulating system wI timer and temperature controls; variable speed drive hot water pump Climate Zone #10 Base Case Measures Which Just Meet 2008 Title 24 . R-19 attic insulation, R-19 walls in metal stud exterior walls . Un-insulated (R-O) raised slab floor over parking garage; . Dual vinyl NFRC-rated Low-E windows: U-factor=0.33, SHGC=0.30 . (2) room heat pumps for each dwelling unit: HSPF=7.2, EER=10.2 . Central domestic hot water boiler, 82.7% AFUE; re-circulating system wI timer and temperature controls; variable speed drive hot water pump Enerqy Measures Needed to Exceed the 2008 Standards Under two different scenarios, (A) and (B), the following energy features have been modified from the above Title 24 set of measures so that the proposed design uses 10%, 15% and 20% less TDV energy than the 2008 standards. The added first cost of that measure compared with the equivalent 2008 Title 24 design measure is listed to the right, and the sum of all incremental costs is listed. CLIMATE ZONE #7 (A-10%l 36,800 Sq.ft. (Reduction in 2008 T24 TDV Eneroy by 10%) . Low-E glazing: U=0.48, SHGC=0.35, 6,240 sf @ $1.50 - $1 80/sf . R-38 cool roof, reflectance=0.70, emmittance=0.75 9.200 sf@ $055 - $0.75/sf Total incremental cost of Ordinance energy measure: Incremental cost in $/sq.ft.: Average Incremental Cost = $16,276 or $0.44/sf $ 9,360 - 11,232 $ 5,060 - 6,900 $14,420 - 18,132 $ 0.39 to 0.49 Isq.ft. Energy Cost.Effectiveness Study for City of Chula Vista, 7/22/09 Page 11 11-26 (8-10%) 36,800 sCl.ft. (Reduction in 2008 T24 TDV EnerClY by 10%) . Higher efficiency heat pumps: HSPF=7.84 EER=11.2 80 units total @$180 - $300 each . 82.7% AFUE hot water boiler . R-38 cool roof, reflectance=0.70, emmittance=0.75 9.200 sf@ $0.55 - $0.75/sf Total incremental cost of Ordinance energy measure: Incremental cost in $/sq.ft.: Average Incremental Cost = $26,580 or $0.72 Isf $14,400 - 24,000 $ 1,000 - 1,800 $ 5.060 - 6.900 $20,460 - 32,700 $ 0.56 to 0.89 Isq.fi. Climate Zone #7, Exceedinq the 2008 Standards bv 10% Averaqe Incremental Cost for Two Compliance Scenarios: $0.58Isf (A-15%) 36.800 sCl.fi. (Reduction in 2008 T24 TDV EnerClY by 15%) . Low-E glazing: U=0.48, SHGC=0.35, 6,240 sf @ $1.50 - $1.80/sf . R-38 cool roof, reflectance=0.70, emmittance=0.75 9,200 sf @ $0.55 - $0.75/sf . (2) Munchkin boilers 92% AFUE @$1,500 - $2,500 each . Premium efficiency pump motors Total incremental cost of Ordinance energy measure: Incremental cost in $/sq.fi.: Average Incremental Cost = $20,676 or $0.56 Isf (8-15%) 36.800 sCl.ft. (Reduction in 2008 T24 TDV EnerClY by 15%) . Low-E glazing: U=0.48, SHGC=0.35, 6,240 sf @ $1.50 - $1.80/sf . Higher efficiency heat pumps: HSPF=7.84 EER=11.2 80 units total @$180 - $300 each . (2) Munchkin boilers 92% AFUE @$1,500 - $2,500 each . R-30 roof. 9.200 sf @ $0.20 - $0.30/sf Total incremental cost of Ordinance energy measure: Incremental cost in $/sq.ft.: Average Incremental Cost = $35,796 or $0.97 Isf $ 9,360 - 11,232 $ 5,060 - 6,900 $ 3,000 5,000 $ 300 500 $17,720 - 23,632 $ 0.48 to 0.64 Isq.fi. $ 9,360 - 11,232 $14,400 - 24,000 $ 3,000 - 5,000 $ 1.840 - 2.760 $28,600 - 42,992 $ 0.78 to 1.17 Isq.fi. Climate Zone #7. Exceedinq the 2008 Standards bv 15% Averaqe Incremental Cost for Two Compliance Scenarios: $0.77Isf Energy Cost-Effectiveness Study for City of Chuta Vista, 7122109 Page 12 11-27 (8-20%1 36.800 so.ft. (Reduction in 2008 T24 TOY EnerGV bv 20%) . Low-E glazing: U=0,48, SHGC=0.35, 6,240 sf @ $1.50 - $1.80/sf . Higher efficiency heat pumps: HSPF=7.84 EER=11.2 80 units total @$180 - $300 each . (2) Munchkin boilers 92% AFUE @$1,500 - $2,500 each . R-4, 1+" spray-on insulation below raised slab; 9,200 sf @$1.50 - $2.50/sf . R-38 + R-6.5 Cool Roof, 9,200 sf @ $155 - $2.00/sf Total incremental cost of Ordinance energy measure: Incremental cost in $/sq.ft.: Average Incremental Cost = $68,226 or $1.85 Isf (A-20%1 36,800 so.ft. (Reduction in 2008 T24 TOY EnerGV bv 20%) . Low-E glazing: U=0.51, SHGC=0.23, 6,240 sf @ $3.50 - $5.00/sf . R-38 cool roof, reflectance=O 70, emmittance=0.75 9,200 sf @ $0.55 - $0.75/sf . R-4, 1 +" spray-on insulation below raised slab; 9,200 sf @$1.50 - $2.50/sf . 82.7% AFUE hot water boiler Total incremental cost of Ordinance energy measure: Incremental cost in $/sq.ft.: Average Incremental Cost = $52,300 or $1.42 Isf $21,840 - 31,200 $ 5,060 - 6,900 $13,800 23,000 $ 1 ,000 1 ,800 $41,700 - 62,900 $ 1.13 to 1.71/sq.ft. $ 9,360 11,232 $14,400 24,000 $ 3,000 - 5,000 $13,800 - 23,000 $14,260 - 18,400 $54,820 - 81,632 $ 1.49 to 2.22/sq.ft. Climate Zone #7. Exceedinq the 2008 Standards bv 20% A veraqe Incremental Cost for Two Compliance Scenarios: $1.64 Isf CLIMATE ZONE #10 (A-10%) 36.800 so.ft. (Reduction in 2008 T24 TOY EnerGV bv 10%) . Super Low-E glazing: U=0,48, SHGC=0.22, 6,240 sf @ $1.35 - $1.50/sf . R-38 cool roof, reflectance=0.70, emmittance=0.75 9.200 sf @ $0.55 - $0.75/sf Total incremental cost of Ordinance energy measure: Incremental cost in $/sq.ft.: Average Incremental Cost = $14,873 or $0.40 Isf Energy Cost-Effectiveness Study for City of Chufa Vista, 7/22109 11-28 $ 8,425 - 9,360 $ 5,060 6,900 $13,485 16,260 $ 0.37 to 0.44/sq.ft. Page 13 (8-10%) 36,800 SQ.ft. (Reduction in 2008 T24 TDV Eneroy by 10%) . R-3.2 (1") K-13 spray-on insulation under raised floor 9,200 sf @ $1.20 - $1.50/sf . Higher efficiency heat pumps. HSPF=7.84 EER=11.2 80 units total @$180 - $300 each . R-38 roof. 9.200 sf @ $0.30 - $OAO/sf Total incremental cost of Ordinance energy measure: Incremental cost in $/sq.ft.: Average Incremental Cost = $37,600 or $1.02 Isf $11,040 - 13,800 $14,400 - 24,000 $ 5.060 - 6.900 $30,500 - 44,700 $ 0.83 to 1.21/sq.ft. Climate Zone #10, Exceedinq the 2008 Standards bv 10% Averaqe Incremental Cost for Two Compliance Scenarios: $0.71Isf (8-15%) 36,800 so.ft. (Reduction in 2008 T24 TDV Eneroy by 15%) . R-6, 2" spray-on insulation below raised slab; 9,200 sf $ @$2.25 - $3.25/sf . (2) Munchkin boilers 92% AFUE @$1,500 - $2,500 each . Higher efficiency heat pumps: HSPF=7.84 EER=11.2 80 units total @$180 - $300 each . R-38 roof, 9,200 sf @ $0.30 - $OAO/sf . 18% Net Solar Fraction solar hot water Total incremental cost of Ordinance energy measure: Incremental cost in $/sq.ft.: Average Incremental Cost = $98,480 or $2.68 Isf (A-15%) 36,800 SQ.ft. (Reduction in 2008 T24 TDV Eneroy by 15%) . Super Low-E glazing: U=OA8, SHGC=0.22, 6,240 sf @ $1.35 - $1.50/sf . (2) Munchkin boilers 92% AFUE @$1,500-$2,500each . R-6, 2" spray-on insulation below raised slab; 9,200 sf @$2.25 - $3.25/sf . R-38 cool roof, reflectance=0.70, emmittance=0.75 9.200 sf @ $0.55 - $0.75/sf Total incremental cost of Ordinance energy measure: Incremental cost in $/sq.ft.: Average Incremental Cost = $44,173 or $1.20 Isf $ 8,425 $ 3,000 $ 20,700 - 9,360 - 5,000 - 29,900 $ 5.060 - 6.900 $ 37,185 - 51,160 $ 1.01 to 1.39 Isq.ft. 20,700 - 29,900 $ 3,000 5,000 $ 14,400 24,000 $ 5,060 - 6,900 $ 40.000 - 56.000 $ 83,160 -113,800 $ 2.26 to 3.09/sq.ft. Climate Zone #10, Exceedinq the 2008 Standards bv 15% Averaqe Incremental Cost for Two Compliance Scenarios: $1.94Isf Energy Cost-Effectiveness Study for City of Chula Vista. 7/22/09 Page 14 11-29 (8-20%) 36,800 so.ft. (Reduction in 2008 T24 TDV Enerqv bv 20%) . R-6, 2" spray-on insulation below raised slab; 9,200 sf $ @$2.25 - $3.25/sf . (2) Munchkin boilers 92% AFUE @$1,500 - $2,500 each . Higher efficiency heat pumps: HSPF=7.84 EER=11.2 80 units total @$180 - $300 each . R-38 roof, 9,200 sf @ $0.30 - $OAO/sf . 45% Net Solar Fraction solar hot water Total incremental cost of Ordinance energy measure: Incremental cost in $/sq.ft.: Average Incremental Cost = $164,480 or $4.47 Isf (A-20%) 36,800 so.ft. (Reduction in 2008 T24 TDV Enerov bv 20%) . Super Low-E glazing: U=OA8, SHGC=0.22, 6,240 sl@$1.35-$1.50/s1 . R-6, 2" spray-on insulation below raised slab; 9,200 sf @$2.25 - $3.25/sf . (2) Munchkin boilers 92% AFUE @$1,500 - $2,500 each . Higher efficiency heat pumps: HSPF=7.84 EER=11.2 80 units total @$180 - $300 each . R-38 cool roof, reflectance=0.70, emmittance=0.75 9,200 sf @ $0.55 - $0.75/sf Total incremental cost of Ordinance energy measure: Incremental cost in $/sq.ft.: A verage Incremental Cost = $63,373 or $1.72 Isf $ 8,425 9,360 $ 20,700 - 29,900 $ 3,000 5,000 $ 14,400 - 24,000 $ 5,060 - 6.900 $ 51,585 - 75,160 $ 1.40 to 2.04/sq.ft. 20,700 - 29,900 $ 3,000 - 5,000 $ 14,400 - 24,000 $ 5,060 - 6,900 $100,000 - 120.000 $143,160 -185,800 $ 3.89 to 5.05/sq.ft. Climate Zone #10, Exceedinq the 2008 Standards bv 20% Averaqe Incremental Cost for Two Compliance Scenarios: $3.10Isf Energy Cost-Effectiveness Study for City of Chuta Vista, 7/22/09 Page 15 11-30 2.4 Nonresidential Building Case Study Nonresidential Buildinq Desiqn. A typical office building has been modeled with a research version of EnergyPro has been used to evaluate compliance with the 2008 Nonresidential, Hotel/Motel and High-rise Residential standards. The following measures were evaluated so the building just meets the 2008 standards. Buildino Description: 52,900 SF,S stories, 32.5% Window Wall Ratio glazing areaincluding the following energy measures: Climate Zone #7 Base Case Measures Which Just Meet 2008 Title 24 . R-30 cool roofreflectance=0.70, emmittance=0.75 . R-19 in metal frame exterior walls, slab-on-grade 151 floor; . NFRC-rated Low-E windows: U-factor=0.50, SHGCc=0.38 (e.g., Viracon VE 1-2M) wi no exterior shading . Lighting = 0.885 w/sf: 650 2-lamp 4' T8 fixtures @ 62w each and 250 26w CFLs @ 26 w each; no lighting controls . 4 identical Packaged VAV units: Aaron 25 ton, EER=10A, 10,000 CFM, standard efficiency fan motors, 30% VAV boxes wi reheat . Ducts in conditioned space, R-4.2 duct insulation . Service hot water: standard gas tank water heater Climate Zone #10 Base Case Measures Which Just Meet 2008 Title 24 . R-30 roof, R-19 in metal frame exterior walls, slab-on-grade 151 floor; . NFRC-rated Low-E windows: U-factor=0.50, SHGCc=0.38 (e.g., Viracon VE 1-2M) wi substantial overhang on the 151 floor only . Lighting = 0.885 w/sf: 650 2-lamp 4' T8 fixtures with high efficiency instant start ballasts and premium T8 lamps, 50 input watts; and 250 26w CFLs @ 26w each; no lighting controls . 4 identical Packaged VAV units: Aaron 25 ton, EER=10A, 10,000 CFM, standard efficiency fan motors, 30% VAV boxes wi reheat . Ducts in conditioned space, R-4.2 duct insulation . Service hot water: standard gas tank water heater Eneroy Measures Needed to Exceed the 2008 Standards Under two different scenarios, (A) and (B), the following energy features have been modified from the above Title 24 set of measures so that the proposed design uses 10%, 15% and 20% less TDV energy than the 2008 standards. The added first cost of that measure compared with the equivalent 2008 Title 24 design measure is listed to the right, and the sum of all incremental costs is listed. Energy Cost.Effectiveness Study for City of Chula Vista, 7/22/09 Page 16 11-31 CLIMATE ZONE #7 (A-10%) 52.900 sa.ft. (Reduction in 2008 T24 TDV Enerqy by 10%) . 650 2-lamp 4' T8 fixtures with high efficiency instant start ballasts and premium T8 lamps, 50 input watts @$25.00 - $30.00/fixture; Installed LPD=0.703 wi OS listed below . 90 occupant sensors controlling (2) 2-lamp T8 fixtures; @$6500 - $85.00 each . R-38 cool roof, refrectance=0.70, emmittance=0.75 9.200 sf @ $0.55 - $0.75/sf Total incremental cost of Ordinance energy measure: Incremental cost in $/sq.ft.: Average Incremental Cost = $30,605 or $0.58 Isf (8-10%) 52.900 sa.ft. (Reduction in 2008 T24 TDV Enerqy by 10%) . 650 2-lamp 4' T8 fixtures with high efficiency instant start ballasts and premium T8 lamps, 50 input watts @$25.00 - $30.00/fixture; Installed LPD=0.737 . U=0.50, SHGCc=0.31 (e.g., Viracon VE 2-2M) 7,840 sf @$2.00 - 3.00/sq.ft. (excludes 1st froor glazing) . R-30 roof (no cool roof) 9.200 sf @ $0.25 - $0.35/sf Total incremental cost of Ordinance energy measure: Incremental cost in $/sq.ft.: Average Incremental Cost = $34,715 or $0.66 Isf $16,250 19,500 $ 5,850 - 7,650 $ 5.060 - 6.900 $27,160 . 34,050 $ 0.51 to 0.64/sq.ft. $16,250 $15,680 19,500 23,520 ($ 2.300 3.220) $29,630 39,800 $ 0.56 to 0.75/sq.ft. Climate Zone #7. Exceedinq the 2008 Standards bv 10% Averaqe Incremental Cost for Two Compliance Scenarios: $0.62Isf (A-15%) 52.900 sa.ft. (Reduction in 2008 T24 TDV Enerqy by 15%) . 650 2-lamp 4' T8 fixtures with high efficiency instant start ballasts and premium T8 lamps, 50 input watts @$25.00 - $30.00/fixture; Installed LPD=0.682 w/OS$ 16,250 - 19,500 . 90 occupant sensors controlling (2) 2-lamp T8 fixtures; $ 5,850 - 7,650 @$65 00 - $85.00 each . 50 more recessed CFL fixtures, all CFL fixtures wi 18w lamps @$175 - $250 each . (5) Trane 25 ton units, EER=11.0 @ $9,000 to $13,000 each wi premium fan motors . R-38 cool roof, refrectance=0.70, emmittance=0.75 9.200 sf @ $0.55 - $0.75/sf Total incremental cost of Ordinance energy measure: Incremental cost in $/sq.ft.: Average Incremental Cost = $96,230 or $1.82 Isf Energy Cost-Effectiveness Study for City of Chula Vista, 7/22/09 11-32 $ 8,750 - 12,500 $ 45,000 - 65,000 $ 5.060 - 6.900 $ 80,910 -111,550 $ 1.53 to 2.11/sq.ft. Page 17 (8-15%) 52.900 SQ.ft. (Reduction in 2008 T24 TDV Enerov bv 15%) . 650 2-lamp 4' T8 fixtures with high efficiency instant start ballasts and premium T8 lamps, 50 input watts @$25.00 - $30.00/fixture; Installed LPD=0.737 . U=0.50, SHGCc=0.31 (e.g., Viracon VE 2-2M) 7,840 sf @$2.00 - 3.00/sq.ft. (excludes 1st floor glazing) . (5) Trane 25 ton units, EER=11.0 @ $9,000 to $13,000 each wI premium fan motors . R-30 roof (no cool roof) 9.200 sf @ $0.25 - $0.35/sf Total incremental cost of Ordinance energy measure: Incremental cost in $/sq.ft.: A verage Incremental Cost = $89,715 or $1.70 Isf $ 16,250 19,500 $ 15,680 - 23,520 $ 45,000 - 65,000 ( $ 2.300 - 3.220) $ 74,630 - 104,800 $ 1.41 to 1.98/sq.ft. Climate Zone #7. Exceedinq the 2008 Standards bv 15% Averaqe Incremental Cost for Two Compliance Scenarios: $1.76/sf (A-20%) 52.900 SQ.ft. (Reduction in 2008 T24 TDV Enerov bv 20%) ** . 650 2-lamp 4' T8 fixtures with high efficiency instant start ballasts and premium T8 lamps, 50 input watts @$25.00 - $30.00/fixture; Installed LPD=0.682 w/OS$ 16,250 - 19,500 . 90 occupant sensors controlling (2) 2-lamp T8 fixtures; $ 5,850 - 7,650 @$65.00 - $85.00 each . 50 more recessed CFL fixtures, all CFL fixtures wI 18w lamps @$175 - $250 each . U=0.50, SHGCc=0.31 (e.g., Viracon VE 2-2M) 7,840 sf @$2.00 - 3.00/sq.ft. (excludes 1st floor glazing) . (5) Trane 25 ton units, EER=11.0 @ $9,000 to $13,000 each wI premium fan motors . R-38 + R-6.5 Cool Roof. 9.200 sf @ $1.55 - $2.00/sf Total incremental cost of Ordinance energy measure: Incremental cost in $/sq.ft.: A verage Incremental Cost = $126,180 or $2.39Isf $ 8,750 - 12,500 $ 15,680 - 23,520 $ 45,000 - 65,000 $ 14.260 - 18.400 $105,790 - 146,570 $ 2.00 to 2.77/sq.ft. ** Only one practical combination of energy measures was able to achieve 20% better- than- Title 24 using a mixture of "A" and "B" features. Energy Cost-Effectiveness Study for City of Chula Vista, 7/22/09 11-33 Page 18 CLIMATE ZONE #10 (A-10%\ 52.900 sa.ft. (Reduction in 2008 T24 TDV Eneray by 10%) . U=0.50, SHGCc=0.31 (e.g., Viracon VE 2-2M) $15,680 7,840 sf@$2.00 - 3.00/sq.ft. (excludes 1st floor glazing) . 50 more recessed CFL fixtures, all CFL fixtures wi 18w lamps @$175 - $250 each . 90 occupant sensors controlling (2) 2-lamp T8 fixtures; @$6500 - $85.00 each . 1" R-6.5 rigid insulation + R-19 metal frame walls 20,730 sf@ $1.75 - 2.25/sq.ft. . R-38 roof, 9.200 sf@ $0.10 - $0.20/sf Total incremental cost of Ordinance energy measure: Incremental cost in $/sq.ft.: Average Incremental Cost = $84,418 or $1.60 1st - 23,520 $ 8,750 $ 5,850 12,500 7,650 $36,280 - 46,645 $ 5,060 - 6,900 $71,620 - 97,215 $ 1.35 to 1.84/sq.ft. (8-10%) 52.900 sa.ft. (Reduction in 2008 T24 TDV Eneray by 10%) . U=0.50, SHGCc=0.31 (e.g., Viracon VE 2-2M) $15,680 7,840 sf@$2.00 - 3.00/sq.ft. (excludes 1st floor glazing) . 90 occupant sensors controlling (2) 2-lamp T8 fixtures; @$65.00 - $85.00 each . (5) Trane 30 ton units, EER=11.0 @ $9,000 to $13,000 each wi premium fan motors Total incremental cost of Ordinance energy measure: Incremental cost in $/sq.ft.: Average Incremental Cost = $81,350 or $1.54 1st - 23,520 $ 5,850 - 7,650 $45.000 - 65.000 $66,530 - 96,170 $ 1.26 to 1.82/sq.ft. Climate Zone #10, Exceedinq the 2008 Standards bv 10% Averaqe Incremental Cost tor Two Compliance Scenarios: $1.57 1st Energy Cost-Effectiveness Study for City of Chula Vista. 7/22/09 Page 19 11-34 (A-15%) 52,900 sq,ft, (Reduction in 2008 T24 TDV EnerGV bv 15%) . U=0.50, SHGCc=0.31 (e.g., Viracon VE 2-2M) $ 7,840 sf@$2.00 - 3.00/sq.ft. (excludes 1st floor glazing) . 50 more recessed CFL fixtures, all CFL fixtures w/18w lamps @$175 - $250 each . 100 occupant sensors controlling (2) 2-lamp T8 fixtures; @$65.00 - $85 00 each , . 1" R-6.5 rigid insulation + R-19 metal frame walls 20,730 sf @ $1.75 - 2.25/sq.ft. . (5) Trane 30 ton units, EER=11.0 @ $9,000 to $13,000 each wI premium fan motors Total incremental cost of Ordinance energy measure: Incremental cost in $/sq.ft.: Average Incremental Cost = $134,188 or $2,52/sf (8-15%) 52,900 Sq.ft. (Reduction in 2008 T24 TDV EnerGV bv 15%) . U=0.50, SHGCc=022 (e.g., Viracon VE 2-55) $ 7,840 sf @$3.50 - 4.50/sq.ft. (excludes 1st floor glazing) . 50 more recessed CFL fixtures, all CFL fixtures w/18w lamps @$175 - $250 each . 100 occupant sensors controlling (2) 2-lamp T8 fixtures; @$6500 - $85.00 each Total incremental cost of Ordinance energy measure: Incremental cost in $/sq.ft.: Average Incremental Cost = $49,635 or $0.94/sf . 15,680 - 23,520 $ 8,750 $ 6,500 12,500 8,500 $ 36,280 - 46,645 $ 45,000 - 65.000 $112,210 - 156,165 $ 2.12 to 2.95/sq.ft. 27,740 - 35,280 $ 8,750 - 12,500 $ 6,500 8,500 $ 42,990 - 56,280 $ 0.81 to 1.06 Isq.ft. Climate Zone #10, Exceedinq the 2008 Standards bv 15% Averaqe Incremental Cost for Two Compliance Scenarios: $1.74/sf Energy Cost-Effectiveness Study for City of ChuJa Vista, 7/22/09 Page 20 11-35 IA-20%1 52.900 so.ft. (Reduction in 2008 T24 TDV Enerov bv 20%1 ** . U=0.50, SHGCc=0.22 (e.g., Viracon VE 2-55) $ 27,740 7,840 sf @$3.50 - 4.50/sq.ft. (excludes 1st floor glazing) . 50 more recessed CFL fixtures, all CFL fixtures wi 18w lamps @$175 - $250 each . 100 occupant sensors controlling (2) 2-lamp T8 fixtures; @$65.00 - $85.00 each . 1" R-6.5 rigid insulation + R-19 metal frame walls 20,730 sf@ $1.75 - 2.25/sq.ft. . (5) Trane 30 ton units, EER=11.0 @ $9,000 to $13,000 each wi premium fan motors Total incremental cost of Ordinance energy measure: Incremental cost in $/sq.ft.: Average Incremental Cost = $146,098 or $2.76 Isf - 35,280 $ $ 8,750 6,500 12,500 8,500 $ 36,280 - 46,645 $ . 45.000 - 65.000 $124,270 - 167,925 $ 2.35 to 3.17 Isq.ft. ** Only one practical combination of energy measures was able to achieve 20% better- than- Title 24 using a mixture of "An and "B" features. Energy Cost-Effectiveness StUdy for City of Chula Vista, 7/22/09 11-36 Page 21 3.0 Cost Effectiveness The tables in this section are based upon the following: . Incremental site electricity (kWh) and natural gas (therms) saved per year as calculated using the state-approved energy compliance software; . Average utility rates for residential buildings: $0.187/kWh for electricity and $1.14/therm for natural gas (in constant dollars); for nonresidential buildings: $0.194/kWh for electricity and $0.944/therm for natural gas (in constant dollars) . The assumption that there is no change (i.e., no inflation or deflation) in utility rates in constant dollars over time . The assumption that there is no increase in summer temperatures even though most scientific studies predict that global climate change will increase temperatures in the Western U.S. which will increase air conditioning energy use . Simple Payback includes neither the cost of financing nor any external cost associated with global climate change A set of energy measures is generally considered cost-effectiveness if the payback is less than the average useful life of those measures. In residential construction, for example, most energy measures will typically last at least 15 years, and most will not function beyond 30 years. So energy measures with a payback of around 15 years or less would usually be cost-effective, and a payback beyond 30 years usually would not. Paybacks between 15 and 30 years may be cost-effective depending on the weighted average useful life of the measures selected. Also note that paybacks depend on the specific selection of energy measures, how they perform in a specific building design in a particular climate zone, and what the first costs are for those measures. The data summarized here is intended to be only illustrative, not comprehensive or definitive, in demonstrating the scale of typical results and the variability of results depending on the selection of energy measures and assumed first costs. Energy Cost-Effectiveness Study for City of Chuta Vista. 7122109 Page 22 11-37 3.1 CLIMATE ZONE #7 RESULTS Figure 3-CZ7a-1: Added First Cost - 2,025 sf 2-Story Single Family Home 2,025 sf Single Family Incremental Cost $/Bldg: CZ7 $2,500 $2,000 r--------------------- I I "J I I $1,500 - ----------" '" $500 1----- so - '"'"'--T---'--'--'---'._--~----------~ --- --1 T24-1O% T24-15% T24-20% Energy Cost-Effectiveness Study for City of Chufa Vista, 7/22/09 Page 23 11-38 Figure 3-CZ7a-2: Added First Cost - 2,975 sf 2-Story Single Family Home 2,975 sf Single Family Incremental Cost $/Bldg: CZ7 $ 3 ,000-1.-..------.-. -----.---------.--------------- -------.---------------.. ---.----------------------.- "'oor-- ----------- $2,000 $1,500 $1,000 $500 -- so -: . ----.--~-...r-'------ --.-----,---. ------~.--------., T24-10% T24-15% T24-20% Energy Cost-Effectiveness Study for City of Chufa Vista, 7/22/09 Page 24 11-39 Figure 3-CZ7a-3: Added First Cost/Dwelling Unit, 2-Story Multifamily Building Lowrise Multifamily Incremental Cost $/Unit CZ7 .$ 1,400 ---------------------- -------- ------____ _________ _________________________ I $1.200 -------- -------------------- ----------____ ___ .. $1,000 ----------------------- .$800 .$600 .$400 / -----...-- ----------..--.- --.------- ----.---- -_._---,--- --------. $200 - -----------____ $0 -, ~ T24-10% T24-1S":t T24-20% Energy Cost-Effectiver:ess Study for City of Chufa Vista, 7/22/09 11 -40 Page 25 Figure 3-CZ7b-1: Added First Cost/Sq.Ft., - 2,025 sf 2-Story Single Family Home 2,025 sf Single Family Incremental Cost $/Sf: CZ7 $1.00 $0.90 , -<~._-_._._.._..,..- $0.80 1---- nu --- -- . I ! $0.70 -L---___________."_~_._._ $0.60 , I I , , $0.50 t i $0.40 .--------.-----+ , $0.30 I .,-..--.--...-.....-- I i i $0.20 $0.10 $0.00 .-.----.-----.--.----.-------.--------'T ...-..----.-------...- -_.".-'~'--"'" "1 T24+10% T24-1S% T24~20% Energy Cost-Effectiveness Study for City of Chufa Vista, 7/22/09 Page 26 11-41 Figure 3-CZ7b-2: Added First Cost/Sq.Ft., - 2,975 sf 2-Story Single Family Home 2,975 sf Single Family Incremental Cost $/Sf: CZ7 $0.90 '1 ................... I I :::: r I I $0.60 ., I I i $0.50 "[.....------..---. ........-.-...-... _... _..... ............. ............................ $0.40 ,1,-,--", ....... $ 0 .301.. ......-.. - ---.---.--___.~_. '_'__n___ _____.~..~_. I $0.20 l-........---........- .......-.......---...---..-- -----.-......---.----- I $0.10 t-- I I 1 $0,00 +---- .....----.-..,-......__....__.._...__ __..__......_ ..._._...._....., "."_"_........m"."_.__.__..n"_"...m.....n... _....__......."'.._......._..._. T24-10% T24-15% T24-20% Energy Cost.Effectiveness Study for City of Chuia Vista, 7/22/09 Page 27 11 -42 Figure 3-CZ7b-3: Added First CostlSq.Ft, 2-Story Multifamily Building Lowrise Multifamily Incremental Cost $/Sf: CZ7 $1.40 r-.-----..- .... ......--..-.---.--.-..........-...-. I I i $1.20 +.--.-.....-.- .-...----....-.. I I I I $1 00 1 . ........-............. .................-........................-..--.-.....-.-.....-... ... . r.........-.. I I $0.80 +.--.--..-..--. ............................................-.-..... .. ................. ..................... I I SO.60 . $0.40 I ._1...._____ , , I 1-. I ! , ! $0.20 SO.OO ._~ T24-10% T24*20% T24-15% Energy Cost.Effectiveness Study for City of Chuta Vista, 7/22/09 11-43 Page 28 Figure 3-CZ7c-1: Simple Payback of Energy Measures - 2,025 sf 2-Story Single Family Home ---.-----.------------.-.-----..---------------.-----.----_.. 2,025 sf Single Family Simple Payback of Energy Measures (Years) eZ7 20.5 r------.----------..-~=~~~~~~.~=_~ ::.: J.-...----------,,--..-.... ._. 18.5 . .--...-.. ....\.-.. ..-...-"....- \ -- -" - \ .--.. --- ------- ~ 18.0 ')....-.....- 175 1_____...___._...____..._. . I 17.0 "................ -- 16.5 16.0 15.5 . n_,[ T24-10% T24-15% T24-20% Energy Cost-Effectiveness Study for City of Chula Vista. 7/22/09 11-44 Page 29 Figure 3-CZ7c-2: Simple Payback of Energy Measures - 2,975 sf 2-Story Single Family Home 2,975 sf Single Family Simple Payback of Energy Measures (Years) eZ7 35.0 . --_.,_._.~-_._"--------"--_._------_._-----"- ,----..----.--.-_____..__ "'1-- ~-- 250 -;-- -------- - -- ----- -- --- 20_0 - --------------- ----------------------------------------------------------------------- 15 _0 - ___n______________________________________________ - -------------------------------------------------- 10_0 5_0 "------------------------- 0.0 I T24-10% ............." ..............--...."['"" """". .-.'''.-.''--''.''''''--''''---'-'--'''''.''''''.''--1 T24-15% T24-20% Energy Cost-Effectiveness Study for City of Chula Vista, 7/22/09 11-45 Page 30 Figure 3-CZ7c-3: Simple Payback of Energy Measures 2-Story Multifamily Building Lowrise Multifamily Simple payback of Energy Measures (Years) eZ7 35.0 - ------------------------- -------.-----_______________________._ 30_0 "" r.. ..~ 20.0 -- 15.0 - 10_0 5.0 --- 0_0 -, T24~10% T24-15% T24-20% Energy Cost-Effectiveness Study for City of Chuta Vista, 7/22/09 11-46 Page 31 Figure 3-CZ7d-1: Annual Reduction in C02 in Lbs./Sq.Ft. in Single Family - 2,025 sf 2-Story Single Family Home 2,025 sf Single Family Annual C02 Reduction in Lbs.fSq.Ft. CZ7 0.50 0.45----------- ----------------------------_____ _________________ _____________ 0.35 0.40 0.30 -I I 0.25 r-~---------:- ------- - 0.20 T---- 0.15 0_10 -------------------------------- -------------- 0_05 j 1--. ","...n........n.'T'.".'__ --..........1-.. 0.00 T24-10% T24-15% T24-20% Energy Cost-Effectiveness StUdy for City of Chula Vista, 7/22/09 Page 32 11 -47 Figure 3-CZ7d-2: Annual Reduction in C02 in Lbs./Sq.Ft. in Single Family - 2,975 sf 2-Story Single Family Home 2,975 sf Single Family Annual C02 Reduction in lbs.fSq.Ft. cn 0.25 "-------...--- ...-.--....--.---.--.-------__.__...______________________ 0.20 0.15 m................... .........___..On... ....__._.. 0.10 -...-.....".-..---......--- ..-......-----...--.-...-.--.- --------.-.-------. 0.05 r..-.-....... I I i 0.00 ..J..-..-..-.-..-.. T24.10% T24"15~{.l T24.20% Energy Cost.Effectiveness Study for City of Chula Vista, 7/22/09 Page 33 11-48 Figure 3-CZ7d-3: Annual Reduction in C02 in Lbs./Sq.Ft., 2-Story Multifamily Building lowrise Multifamily Annual C02 Reduction in lbs.jSq.Ft. CZ7 0.30 0.70 n._______.__ --.- ..--.-----.------...------------.-..--. -.- 0.60 I 0.50 - -----.-------.------------- --- - --.... -.-- -- -.---..--.-.-.-.--.-..-.---.-----..--.-- 0.30 -----.---..---- 0.40 - .----.-------.----.-.--..-.- - --.--..-------.-.-- 0.20 -.- 0.10 . 0.00 ____._,,_...._ ..__._.,_.._,~ _~._ _._ ,_........m__._.___._n__ ___.______._.___.__..,___ . . T24-10% T24-20% T24-15% Energy Cost-Effectiveness Study for City of Chula Vista, 7/22/09 11-49 Page 34 Hiqh-rise Residential Buildinq: Climate Zone 7 10% Better-than-Title 24 The following high-rise residential case study data is based on exceeding the 2008 Title 24 Standards by 10% in Climate Zone 7 as outlined in Section 2.3: Average Incremental Cost per Dwelling Unit: Average Incremental Cost per Square Foot: $ 536 $ 0.58 Simple Payback of Incremental Energy Measures: 12.5 years Annual Reduction in C02-equivalent: 0.13 Ibs.lsq.ft.- year 15% Better-than- Title 24 The following high-rise residential case study data is based on exceeding the 2008 Title 24 Standards by 15% in Climate Zone 7 as outlined in Section 2.3: Average Incremental Cost per Dwelling Unit: Average Incremental Cost per Square Foot: $ 706 $ 0.77 Simple Payback of Incremental Energy Measures: 11.7 years Annual Reduction in C02-equivalent: 0.26 Ibs.lsq.ft.- year 20% Better-than-Title 24 The following high-rise residential case study data is based on exceeding the 2008 Title 24 Standards by 20% in Climate Zone 7 as outlined in Section 2.3: Average Incremental Cost per Dwelling Unit: Average Incremental Cost per Square Foot: $1,507 $ 1.64 Simple Payback of Incremental Energy Measures: 16.7 years Annual Reduction in C02-equivalent: 0.23 Ibs.lsq.ft.- year Energy Cost-Effectiveness Study for City of Chula Vista, 7/22/09 Page 35 11-50 Figure 3-CZ7a-4: Added First Cost/Dwelling Unit, High-rise Residential Building High-rise Res Incremental Cost $/Unit: CZ7 $1,600 $1,400 ~. 1~___ _~___ $1,200 -; I $ 1,000 $800 $400 ":: L 124-10% T24~lS% , J T24-20% ...".._._-~------ Energy Cost-Effectiveness Study for City of Chula Vista, 7/22/09 Page 36 11-51 Figure 3-CZ7b-4: Added First Cost/Sq.Ft., High-rise Residential Building High-rise Res Cost $/SF: CZ7 $1.80 "'-'."___'__"""_"'__.__...__n_"_ ,...___.._____n.. ...._....._n..omo._"___.._ $1.60 '" ...----.----.------.-------.--..---..----. ----.......----,.-.....--..-- $1.40 .. -..-.-.. - -....--..--..-...-. . ...--...-_......_.......__...._....__..____._.....___..._._..._____.___._ .___..__ $1.20 'j-"'-"--" --.............--....-..-..-..........-...-...........-.....-...-...-..-.-.--.1--.....-.-.-.----..--.-..-.-.. -.- i i $1.00! I I $0.80 '1 I I I .'060..1------ ": ..... $0.40 1. I I i $0.20 $0.00 --, T24.1O% T24.15% --, T24-20% _....___m____.n._._.______._____.__..__. '._._____m...._._ ___...._..____n______.__ Energy Cost-Effectiveness Study for City of Chula Vista. 7/22/09 Page 37 11-52 Figure 3-CZ7c-4: Simple Payback of Energy Measures, High-rise Residential Building High-rise Res Simple Payback of Energy Measures (Yrs) eZ7 18.0 16.0 .. 14.0 .......................... +-- 12.0 "~-~ .... 10.0 8.0 ..................... - .................. ................ 6.0 . .........- ..... 4.0 -. ....-............-...... :: L.~~=~~.~ --~ ...~~=~-=~=~~~...... T24-10% T24-15% T24-20% Energy Cost-Effectiveness Study for City of Chu{a Vista, 7/22/09 11-53 Page 38 Figure 3-CZ7d-4: Annual Reduction in C02 in Lbs./Sq.Ft., High-rise Residential Building High-rise Res Annual C02 Reduction in Lbs';Sq.Ft. cn 0.30 I 0.15 0.25 ----.-- -",-- 0.20 - .-.-...........-.......-.-.-..-----..-...-.-- -- 0.10 + 0.05 """"" " "."."....--. ...."."....--............................".---,.-- 0.00 ., T24-10% T24-15% T24-20% Energy Cost-Effectiveness Study for City of Chula Vista, 7/2V09 11-54 ...., Page 39 Nonresidential Buildin~: Climate Zone 7 10% Better-than-Title 24 The following nonresidential case study data is based on exceeding the 2008 Title 24 Standards by 10% in Climate Zone 7 as outlined in Section 2.4: Average Incremental Cost per Building: Average Incremental Cost per Square Foot: $ 32,660 $ 0.62 Simple Payback of Incremental Energy Measures: 4.6 years Annual Reduction in C02-equivalent: 0.30 Ibs.lsq.ft.- year 15% Better-than- Title 24 The following nonresidential case study data is based on exceeding the 2008 Title 24 Standards by 15% in Climate Zone 7 as outlined in Section 2.4: Average Incremental Cost per Building: Average Incremental Cost per Square Foot: $ 92,973 $ 1.76 Simple Payback of Incremental Energy Measures: 8.1 years Annual Reduction in C02-equivalent: 0.55 Ibs.lsq.ft.- year 20% Better-than-Title 24 The following nonresidential case study data is based on exceeding the 2008 Title 24 Standards by 20% in Climate Zone 7 using only one combination of measures as outlined in Section 2.4: Incremental Cost per Building: Incremental Cost per Square Foot: $126,180 $ 2.39 Simple Payback of Incremental Energy Measures: 8.5 years Annual Reduction in C02-equivalent: 0.70 Ibs.lsq.ft.- year Energy Cost-Effectiveness Study for City of Chula Vista, 7/22/09 Page 40 11-55 Figure 3-CZ7a-5: Added First Cost/Dwelling Unit, Nonresidential Building (Only one combination of energy measures achieves 20% better than Title 24) 1""000 Nonresidential Incremental Cost $/Bldg: CZ7 5120,000 ------- -- -- ------ -- --------------7- 5100000 ----- -- - -- - - - - L- _ _ ---- --- ---- --- --- /~ '"".000 u u.. .. u._/__ _________ ________ __ 560,000 - 540,000 .. .-.-....-.-.-..-.--.......-.--. 520,000 -- ------ so - ----- ._'-~-----r-----~ -----;-""-- -. .-----------, T24.10% T24-15% T24-20% Energy Cost-Effectiveness Study for City of Chu{a Vista, 7/22/09 Page 41 11-56 Figure 3-CZ7b-5: Added First Cost/Sq.Ft., Nonresidential Building (Only one combination of energy measures achieves 20% better than Title 24) ----------------------------------- -------------------------------l Nonresidential Incremental Cost $/SF: CZ7 I $3_00 I I $2.50 -I I $200 +------------------- I $0.50 t ! i i $1.50 t---------------- ----- i i $1.00 +- ------------ $0_00 T24-10% T24-15% 124-20% Energy Cost-Effectiveness Study for City of Chula Vista, 7/22/09 Page 42 11-57 Figure 3-CZ7c-5: Simple Payback of Energy Measures, Nonresidential Building (Only one combination of energy measures achieves 20% better than Title 24) ----.-----.-------------- Nonresidential Simple Payback of Energy Measures (Yrs) eZ7 9.0 6.0 ---- T 7.0 ----~-;L ~ -/---- 80 - 5.0-- 4.0 3.0 ----.---- -.----..---.--.--.-.__.______.__________________...._________________.. 2.0 .--~--~-. 1.0 - 0.0 -~-- r-------~- --~-, T24-10% T24-15% T24-20% ~---.,-------.--_.----- ..-..--......- --.---.....--._.___.......___,__..__... '_"___m~______._._.,____.____._. __.__._______.__.,____.__ Energy Cost-Effectiveness Study for City of Chula Vista, 7/22/09 Page 43 11-58 Figure 3-CZ7d-4: Annual Reduction in C02 in Lbs./Sq.Ft., Nonresidential Building (Only one combination of energy measures achieves 20% better than Title 24) Nonresidential Annual C02 Reduction in Lbs.fSq.Ft. CZ7 0.80 i I 0.70.1.-.-.-..--.- .--.......----.-. ... .. ......--..---.---.....-..---.......--....-...--.----------...--........ i i i I 0.60 ,---.------.-.--.------.-.. I ! ; I i 0.50 I ! 0.40.f---...----.............. , I I 0.30 I _uu__ ,,____ I O?O -~~ ---"-"...--...'-.-.. ._._.___..._.....__..___n..________..____."____.___.___.~_.- ------~-- -- I I I 0.10 -!-....-----.. --..............--.....-.............-......-... ... ...----........-....----................. ..........-...... I I 0..00 -I ............_m.........".1 -.-.--.'.'1 T24-1O% T24-15% T24.20% Energy Cost-Effectiveness Study for City of Chula Vista, 7/22/09 Page 44 11-59 3.2 CLIMATE ZONE #10 RESULTS Figure 3-CZ10a-1: Added First Cost - 2,025 sf 2-Story Single Family Home 2,025 sf Single Family Incremental Cost $/Bldg: CZiO $3,000 i I $2,500 ~--------------_._..__._---_._._-- I ~ $2,000 J $1,500 $ 1,000 n $500 I I $0 t._- ____.....____n____._____.__._.___._._.._______, , , T24-10% T24-150/1) T24~20% Energy Cost-Effectiveness Study for City of Chula Vista, 7/22/09 Page 45 11-60 Figure 3-CZ10a-2: Added First Cost- 2,975 sf 2-Story Single Family Home 2,975 sf Single Family Incremental Cost $/Bldg: CZIO $4,500 i I $4,000 t---~----- ----.~----~~---~- -- i i 53,500 +~~ $2,500 $3,000 ( i ; I , . r.~--'~'~'~~'~'-~'-~'- , I , , $ 2 .000 -i-~-~-"'-~~-'-~'~'~'~"."~"'''~~~'~'--- , I $1,500 +-------.-----~~---~-------~-.------~----------..-- ! i I $1,000 ,-----. i $500 ~ $0 "".'".,---".-...--.. -..-.--.-.-.-- -".T-.-..--...--.------.-.-~--~-.---- ..-----------------, T24-10% T24-15% T24-20% Energy Cost-Effectiveness Study for City of Chuta Vista, 7122109 Page 46 11-61 Figure 3-CZ10a-3: Added First Cost/Dwelling Unit, 2-Story Multifamily Building lowrise Multifamily Incremental Cost $/Unit CliO $2,000 1------------------------------------------------------ i i $1,800 r------ j $1,600 J_ i I $1,400 ~-------------------- ----~ - $1200 -1--------- - -~------ 'j 7'"--" --- _.__._____n I $ 1 ,000 ---- --------------------- ------------------------ $800 i ! i j__________ - ____ ________________________ ___ - __ __ ___ ______m_______ , I i , $600 ~--- $400 i i , I +------ - --- - I $200 I $0 +---------------------------------,-------------- T24-10% T24-20% T24-15% Energy Cost-Effectiveness Study for City of Chula Vista, 7/22/09 11-62 Page 47 Figure 3-CZ10b-1: Added First Cost/Sq.Ft. - 2,025 sf 2-Story Single Family Home 2,025 sf Single Family Incremental Cost $/Sf: CZ10 $lAO ,--------------------- I I I $1 '0 I ---------------------..--------------------------------- ----- -------------- -1- ---- I I Sl.OOt---- I I I I SO_80 -L--____ "00 L- ... ... .u_..___. -- I I I $0_40 r-- I I SO_20 I I ! I $0_00 -,----------------- "'-~-r .... --...---.-----..---.....'.'------1 T24-10% T24-15% T24-20% Energy Cost-Effectiveness Study for City of Chula Vista, 7/22/09 Page 48 11-63 Figure 3-CZ10b-2: Added First Cost/Sq.Ft., - 2,975 sf 2-Story Single Family Home 2,975 sf Single Family Incremental Cost $/Sf: CZIO $1.60 ,----------------- -----.________________________._._ I I i $1.40 1 I $1.20 .--.-.-. I ::: 1---- $060 L I I , $0.40 r------------------------- $0.20 t.-------.--.--...-------------- --- , I I $0.00 , -~--"------r T24-10% T24-15% T24-20% .----------- _..._______"__..n_._.__n__........_..._.__________ "n._...,,___ .._.____. ...__ Energy Cost-Effectiveness Study for City of Chuta Vista, 7/22/09 11-64 Page 49 Figure 3-CZ10b-3: Added First Cost/Sq.Ft., 2-Story Multifamily Building Lowrise Multifamily Incremental Cost $/Sf: CZiO $2.00 l I $1.80 .1-.----..-.--.-. i $160 l-~- .............. I $1.40 +.-.--......- .'.' ........... I I $1 20 1__.______. 1/ ::: 1- -- - .-- -- i $0.60 l...... ................................... .... -. ....-...-.-..-..-.--- ......--. I I i $0.40 j ..............-......-..... ..............-......-..............-....---..----.--.. I I SO.20 t.-..-....... ...................... .... ....-...-.............--.-. i $0.00 4 T24-10% T24.15% T24.20% Energy Cost.Effectiveness Study for City of Chula Vista, 7/22/09 11-65 Page 50 Figure 3-CZ10c-1: Simple Payback of Energy Measures - 2,025 sf 2-Story Single Family Home 2,025 sf Single Family Simple Payback of Energy Measures (Years) CZIO 15.0 __..~_._..._.___...m'_'_._n"__.'_._ .. ........ __..____..__n.__......________..____.._________..____________"____. 14.5 ...,A ............................................ ----. \ ...----- .. \ ..................\ -\--- ~ T24~10% T24-15% T24-20% Energy CDs/-Effectiveness Study for City of Chula Vis/a, 7/22/09 14.0 13.5 13.0 12.5 12.0 11.5 11.0 11-66 Page 51 Figure 3-CZ10c-2: Simple Payback of Energy Measures - 2,975 sf 2-Story Single Family Home 2,975 sf Single Family Simple Payback of Energy Measures (Years) CZI0 21.0 20.5 20.0 19.5 19.0 18.5 18.0 17.5 T24-1O% TZ4-15~1t. T24-20% Energy Cost-Effectiveness Study for City of Chuia Vista. 7/22/09 11-67 Page 52 Figure 3-CZ10c-3: Simple Payback of Energy Measures 2-Story Multifamily Building 30.0 . lowrise Multifamily Simple Payback of Energy Measures (Years) CZiO 25.0 _0___...__._______.___.._.__________.___ 20.0 ............................ . ... .......... ........................... 15.0 10.0 .. 5.0 ......-............ 0.0 .; ---,---- -, T24-10% T24-15% T24-20% Energy Cost.Effectiveness Study for City of Chula Vista, 7/22/09 11-68 Page 53 Figure 3-CZ10d-1: Annual Reduction in C02 in Lbs./Sq.Ft. in Single Family, 2,025 sf 2-Story Single Family Home 2,025 sf Single Family Annual C02 Reduction in Lbs./Sq.Ft. CZIO 0.60 0.30 ---.-------- ---- -----.--..--~ .-----..-..--...---.--------...----- 0.50 .. ____,._________n_u.. ------- -. --~.~._~.__ 0.40 .. -.-----..-----..............--...----........-...-..-..........:---..----- 0.20 ----------...-.....-----...-....----.-.....-------------..---..------- - ---------- 0.10 .---... 0.00 T24-10% T24-15% T24A20% Energy Cost-Effectiveness Study for City of Chula Vista, 7/22/09 Page 54 11-69 Figure 3-CZ10d-2: Annual Reduction in C02 in Lbs./Sq.Ft. in Single Family, 2,975 sf 2-Story Single Family Home 2,975 sf Single Family Annual C02 Reduction in Lbs.fSq.Ft. CZiO 0.40 .,-------------- , ...,._-,.,------------------- 0.35 ~ 7 0.30 , , , , i , r----...--..-.... i i 0.25 ~-------------- ------ ----.-----___.________ I , ; 0.20!------------ --------~-~----._-~------- - , 0.15 +--------- - --~---_._._-_._---------------------_._---_.- ---...---------. 0.10 , -[---------- i i _.._---~-,-,-_...._....._,.,-_... ---.----~--------_._--_.__._-_...._----------_._--- 0.05 .----.------..------------- -.-------_._______ _ ________ ____________ , , 0.00 ~- -_._------,--~ - -.-,.--.------, T24-10% T24-15% T24.20% --------.---------------- ------- Energy Cost-Effectiveness Study for City of Chula Vista, 7/22/09 Page 55 11-70 Figure 3-CZ10d-3: Annual Reduction in C02 in Lbs./Sq.Ft., 2-Story Multifamily Building Lowrise Multifamily Annual C02 Reduction in Lbs.fSq.Ft. CZiO 0.70 T--~~------ I , i i 0_60 -j----------------------.-- i I 0.50,1-- I I i OAO -j---- ------------ I I 0_30 t--------- - ----------- I I I i 0.20 +------'"'---.---.......-.---"- I I --<> O_lOI---~---- I i 0_00 -, .."................T". T24-1O% 124-20% T24-15% Energy Cost-Effectiveness Study for City of Chula Vista, 7/22/09 11-71 Page 56 Hiqh-rise Residential Buildinq: Climate Zone 10 10% Better-than- Title 24 The following high-rise residential case study data is based on exceeding the 2008 Title 24 Standards by 10% in Climate Zone 10 as outlined in Section 2.3: Average Incremental Cost per Dwelling Unit: Average Incremental Cost per Square Foot: $ 656 $ 0.71 Simple Payback of Incremental Energy Measures: 12.8 years Annual Reduction in C02-equivalent: 0.12 Ibs.lsq.ft.- year 15% Better-than-Title 24 The following high-rise residential case study data is based on exceeding the 2008 Title 24 Standards by 15% in Climate Zone 10 as outlined by Case Study "A" in Section 2.3 (i.e., excluding the expensive solar hot water option in Case Study "B"): Average Incremental Cost per Dwelling Unit: Average Incremental Cost per Square Foot: $1,104 $ 1.94 Simple Payback of Incremental Energy Measures: 22.4 years Annual Reduction in C02-equivalent: 0.42 Ibs.lsq.ft.- year 20% Better-than-Title 24 The following high-rise residential case study data is based on exceeding the 2008 Title 24 Standards by 20% in Climate Zone 10 as outlined by Case Study "A" in Section 2.3 (i.e., excluding the expensive solar hot water option in Case Study "B"): Average Incremental Cost per Dwelling Unit: Average Incremental Cost per Square Foot: $1,584 $ 3.10 Simple Payback of Incremental Energy Measures: 27.2 years Annual Reduction in C02-equivalent: 0.62 Ibs.lsq.ft.- year Energy Cost-Effectiveness Study for City of Chula Vista, 7/22/09 Page 57 11-72 Figure 3-CZ10a-4: Added First Cost/Dwelling Unit, High-rise Residential Building High-rise Res Incremental Cost $/Unit: CZ10 $1,300 T----------.----.--..- ------"-----,,,- -' ------.-----.~------ ! i $1,600 +-------.... --..-..---..-.--------..---.- --- ----"..._-------,."--....-,,.. I $1400 +----- ! ! $1,200 1.____ , $1,000 i---~----..-----. -- i i I i $300 t-------- I ! $600 $400 $200 __._____n__._._........ ........_ _,."._ , so ~-----_._._---_.__._-- ..'r--.----.------ ~ T24.10% T24-15% T24-20% Energy Cost-Effectiveness Study for City of Chu/a Vis/a, 7/2V09 Page 58 11-73 Figure 3-CZ10b-4: Added First CostlSq.Ft., High-rise Residential Building High-rise Res Cost $/SF: CZlO $3.50 $.3.00 . ---- ;/-- :/ $2.50 $2.00 ..____________._.u._ _ _ ..Uu________~________._ $1.50 r $1.00 I ']""'.-' I , $0.50 1--- I I $000 ./..... .r T24-10'/o T24"15~'i:' T24~20% Energy Cost-Effectiveness Study for City of Chula Vista, 7/22/09 Page 59 11-74 Figure 3-GZ10c-4: Simple Payback of Energy Measures, High-rise Residential Building High-rise Res Simple Payback of Energy Measures (Yrs) Cl10 30.0 .-...-.-----...----. -..-.-.-.-.--.-.-....-,..----... ._.__._-~----_._--------_."- 25.0 ._...~:.__......- 20.0 .-........-.........-............ 15.0 T24.1O% T24-15% T24-20% 10.0 5.0 Energy Cost.Effectiveness Study for City of Chula Vista, 7/22/09 0.0 11-75 Page 60 Figure 3-CZ10d-4: Annual Reduction in C02 in Lbs./Sq.Ft., High-rise Residential Building High-rise Res Annual C02 Reduction in Lbs./Sq.Ft. C210 0.70 . ! I 0.60 I --.---------------.---- . 0.50 1-----.-.- I I . 040 I -1 ,,"t---I.-------- ",,!- / 0.10 J I ; , 0.00 ! ; i I _._______.m__.___..___.____.____. ,-------.--.. ---------.--r.----~ --------1 T24-10% T24-15% T24-20S{, Energy Cost-Effectiveness Study for City of Chufa Vista, 7/22/09 11-76 Page 61 Nonresidential Buildinq: Climate Zone 10. 10% Better-than- Title 24 The following nonresidential case study data is based on exceeding the 2008 Title 24 Standards by 10% in Climate Zone 10 as outlined in Section 2.4: Average Incremental Cost per Building: Average Incremental Cost per Square Foot: $ 82,884 $1.57 Simple Payback of Incremental Energy Measures: 12.9 years Annual Reduction in C02-equivalent: 0.36 Ibs.lsq.ft.- year 15% Better-than- Title 24 The following nonresidential case study data is based on exceeding the 2008 Title 24 Standards by 15% in Climate Zone 10 as outlined in Section 2.4: Average Incremental Cost per Building: Average Incremental Cost per Square Foot: $107,769 $1.74 Simple Payback of Incremental Energy Measures: Annual Reduction in C02-equivalent: 9.7 years 0.57 Ibs./sq.ft.- year 20% Better-than- Title 24 The following nonresidential case study data is based on exceeding the 2008 Title 24 Standards by 20% in Climate Zone 10 using only one combination of measures as outlined in Section 2.4: Incremental Cost per Building: Incremental Cost per Square Foot: $146,098 $ 2.76 Simple Payback of Incremental Energy Measures: 10.3 years Annual Reduction in C02-equivalent: 0.75 Ibs.lsq.ft.- year Energy Cost-Effectiveness Study for City of Chufa Vista, 7122109 Page 62 11-77 Figure 3-CZ10a-5: Added First Cost/Dwelling Unit, Nonresidential Building (Only one combination of energy measures achieves 20% better than Title 24) ~-onresid-enti~~cremental Cost I $/Bldg: CZlO 5160,000 ---.---------------.------------------- ----..-- $30 ,000 --..---------..-----..----......----..---------...--------..----.---------------.--.----.. --- --- ..--- $140,000 .. ------------...------------..------------...- $120.000 ...---- ........------ - ---..----- ---..----...-.........-...--......-..-....-- $100,000 $60,000 .. ---- .--- -----...--------........ .-............ --.... $40.000 $20,000 ---.----......-.........-.....- $0 T24810% T24-15% T24-20% Energy Cost-Effectiveness Study for City of Chufa Vista, 7/22/09 Page 63 11-78 Figure 3-CZ10b-5: Added First Cost/Sq.Ft., Nonresidential Building (Only one combination of energy measures achieves 20% better than Title 24) Nonresidential Incremental Cost $/5F: CZIO $3.00 -,--'---'----'-'-'--- $2.50 1---.---.. i I I j i $2.00 +------.----------------------- ----- $1.50 $1.00 t-------------------- I I j $0.50 j ! ! , 1----- ------------T- $0_00 ......,_._-~ T24~10% T24-15% T24~20% Energy Cost-Effectiveness Study for City of Chula Vista, 7/22/09 Page 64 11-79 Figure 3-CZ10c-5: Simple Payback of Energy Measures, Nonresidential Building (Only one combination of energy measures achieves 20% better than Title 24) _._------_..._-_.__._._._._--,-_.^'"~._-----,._.__._-_.--..-.-......-.--.------.---.---- Nonresidential Simple Payback of Energy Measures (Yrs) CZIO 14.0 r----.------.---~-_.-.-------.--.-'------------------,--___ I +~ 12.0 r-.---- ---~~----.---.----.----------- I i I 10.0 +---------.-....-- 1 ! I , 1 I 8.0 '1 , ! i I 6.0 I 4.0 J. ! , 2.0 +-- ! i i 0.0 -1 ___........______.__."_.....m.....___... ...........----.-..-----.....--...-....-1-...--- T24-10':l;:. T24-15(~L' T24-20tJ!tl Energy Cost-Effectiveness Study for City of Chula Vista, 7/22/09 Page 65 11-80 Figure 3-CZ10d-4: Annual Reduction in C02 in Lbs.lSq.Ft., Nonresidential Building (Only one combination of energy measures achieves 20% better than Title 24) Nonresidential Annual C02 Reduction in Lbs.jSq.Ft. CZiO 0_80 i I L 0_70 , , L 0.60 '"_....."'.._...u.._..._........ I ! i 0.50 '1---- -------.------------- ---------------------------- , I i I 0.40 .1- --.--.---.- I I 030 -l---- -- ------- - , 1 I I 0_20 -I I I I 0_10 +--.----.-.--.-- .. - -.---.---.--.-.-...-....-.-.--.--.-.----..-..--.-.--.--.----- --...-.----..---.--..-..--.-.-..------------.-...-. I I I 0.00 ~-----._,---._-.-- ,'--- --"."--'-'-,--'--- ..........-----....--..., -- ...... T24-10% T24.15% T24-20% Energy Cost-Effectiveness Study for City of Chula Vista, 7/22/09 Page 66 11:--81 4.0 Policv Recommendations Performance vs. Prescriptive Approach While some local energy ordinances have in rare instances provided prescriptive options for local nonresidential envelope and lighting energy requirements, the performance approach has been implemented in all local ordinances for residential and nonresidential buildings as the most effective and cost-effective way to achieve higher levels of building energy efficiency. Rather than selecting specific energy measures as required, it is better to have the building industry determine how to reach energy-equivalence with the+ required efficiency level using the performance method. This is the approach used in a large variety of applications such as: . Utility incentive programs . State tax credits for solar PV systems (NSHP program) . GreenPoint Rated green building system . LEED green building system . Local energy ordinances . Multi-family affordable housing federal tax credits . Energy Star homes . Federal energy efficiency tax credits . HERS Phase 2 for Existing and New Homes (2010) Conversely, we strongly recommend against a local ordinance including required prescriptive measures that can be modeled in the performance method. Certified Energy Plans Examiners (CEPEs) The California Association of Building Energy Consultants (CABEC) sponsors and administers the Certified Energy Plans Examiner (CEPE) program for the Residential and Nonresidential Standards. CEPE candidates must pass an examination to demonstrate knowledge of the applicable standards. Starting in 2009, they must also agree to share electronic files with authorized enforcement personnel. We recommend that local ordinances include a requirement within the ordinance or administratively require that the energy analysis and documentation either be prepared by an individual with the current applicable CEPE credential or that the Title 24 report be plan checked by a CEPE. Energy Cost-Effectiveness Study for City of Chufa Vista, 7/22/09 Page 67 11-82 ORDINANCE NO. AN ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHAPTER 15.26 OF THE CHULA VISTA MUNICIPAL CODE AND ADDING SECTION 15.26.030, INCREASED ENERGY EFFICIENCY STANDARDS The City Council of the City of Chula Vista does ordain as follows: SECTION I. Findings. The City Council finds as follows: I. Modifications to the California Building Standards and Building Energy Efficiency Standards, as detailed in this Ordinance, are reasonably necessary due to local climatic conditions. As a result of high summer ambient temperatures and periods of heat waves, average load demand and peak load demand of energy used in Chula Vista is an important factor concerning public safety and adverse economic impacts of power outages or power reductions. Reduction of total and peak energy use, as a result of incremental energy conservation measures required by this Ordinance, will have local and regional benefits in the cost-effective reduction of eJ;1ergy costs for the building owner, additional available system energy capacity, and a reduction in greenhouse gas emissions. 2. The increased energy efficiency standards required by Section 15.26.030 will require the diminution of energy consumption levels permitted by the 2008 Building Energy Efficiency Standards and are determined to be cost effective based on a cost-effectiveness study by Gabel Associates, LLC. SECTION I!. That Chapter 15.26 of the Chula Vista Municipal Code is hereby amended to read as follows: Chapter 15.26 ENERGY CODE Sections: 15.26.010 California Energy Code adopted by reference. 15.26.020 Outdoor lighting zones. 15.26.030 Increased Energv Et1iciencv Standards 15.26.010 California Energy Code adopted by reference. The City ofChula Vista adopts, by reference, that certain document known as the California Energy Code, set forth in Title 24, Part 6. of the California Code of Regulations, as copyrighted by, and as may be amended from time to time by, the California Building Standards Commission. That California Energy Code is adopted as the energy code o{the City ofChula Vista for the purpose ofregulating building'design nAttornev\FINAL RESOS\2009\tO 20 09\2008 Energv Code Ordirunce Strk Undln.Joc , . -- 11-83 - Page] of4 and construction standards to increase efficiency in the use of energy for new residential and nonresidential buildings, excepting such portions as are modified, or amended by this Chapter. Chapter 15.06 CVMC shall serve as the administrative, organizational and enforcement rules and regulations for this Chapter. 15.26.020 Outdoor lighting zones. Pursuant to Section 10-114 (c) of the California Code of Regulations, Title 24, Part I, the city has adopted an outdoor lighting zones map amending state default lighting zones as applied to certain areas of the City. The location of outdoor lighting zones in the City are per the adopted Outdoor Lighting Zones Map, dated September 2, 2005 and kept on file with the City Planning and Building Department. 15.26.030 Increased Energy Efficiency Standards A. Scope. The provisions of this Section shall apply to all new residential construction. additions. remodels and alterations, and to all new non-residential construction. additions. remodels and alterations except as follows: a. Additions, remodels or alterations to existing low-rise (three stories or less) residential buildings where the addition, remodel or alteration is less than or equal to 1.000 square feet of conditioned floor area are exempt from the provisions of this Section. b. Additions. remodels or alterations to existing high-rise residential (more than three stories). non-residential or hotel/motel buildings where the addition. remodel or alteration is less than or equal to I 0.000 square feet of conditioned floor area are exempt from the provisions of this Section. Compliance with the California Energy Code is always required even if the increased energv efficiency standards specified in this Section do not apply. B. Definitions. Terms used in this Section are as defined in the California Energy Code and Chapter 15.06.19.06 and 19.48 of the Municipal Code. C. Requirements. In addition to the requirements of the California Energy Code, applications for building permits coyered under Section 15.26.030 (A) shall comply with the following: a. For Climate Zone 7: 1. All new low-rise residential buildings or additions, remodels or alterations to existing low-rise residential buildings where the additions, remodels or alterations are greater than 1,000 square feet of conditioned floor area shall use at least 15.0% less TDV Energy than the 2008 Building Energy Efficiency Standards allows. 11. All new non- residential. high-rise residential or hotel/motel buildings, or additions, remodels or alterations to existing non- residential. high- rise residential or hotel/motel buildings where the additions, remodels or alterations are greater than 10.000 square feet of conditioned floor area shall use at least 15.0% less TDV Energy than the 2008 Building Energy Efficiencv Standards allows. J:\Attomey\FfNAL RESQS\2009\10 20 09\2008 Energy Code Ordinance Strk Undln.doc 11-84 - Page 2 of4 b. For Climate Zone 10: 1. All new low-rise residential buildings or additions, remodels or alterations to existing low-rise residential buildings where the additions. remodels or alterations are greater than 1.000 square feet of conJitioned floor area shall use at least )0.0% less TDV Energv than the )008 Building Energv Efficiencv Standards allows. 11. All ncw non- residential. high-rise residential or hotel/motel buildings. or additions, remodels or alterations to existing non- residential, high- rise residential or hotel/motel buildings where the additions, remodels or alterations are greater than 10.000 square feet of conditioned floor area shall use at least 15.0% lcss TDV Energy than the 2008 Building Energv Efficiencv Standards allows. D. Compliance. No building permit shall be issued unless the permit application demonstrates compliance with the requirements of Section 15.26.030 based on the performance approach as specified in the 2008 Building Energy Efficiency Standards using a California Energv Commission approved energv compliance software program. E. Compliance Credit Option for Buildings within Sectional Planning Area (SPA) Plan Proiects. For building construction within Sectional Planning Area (SPA) Plan proiect areas whose SPA is approved subsequent to the effective date of this Ordinance, the developer may meet a portion of the requirements set forth under Section 15.26.030C provided the SPA Plan has met the qualifying energy savings thresholds for communitv dcsign and site planning features pursuant to the rcquirements as set forth in the SPA's approved Air Oualitv Improyement Plan (AOIP). If the approved AOIP has met the qualifying thresholds. the applicant may request and receive an energy savim(s credit towards a portion of the requirements specitied in Section 15.26.030C subiect to approval bv the Director of Development Services, provided the proiect fully complies with the 2008 Building Energy Efficiencv Standards (Title 24, Part 6) at the time of permitting, and conforms to applicable guidelines in effect at the time of the request for credit. F. Technical Assistance. The building official may require the applicant to retain the services of a consultant havinl!: expertise in energy efficiency teclmiques to review and evaluate complex systems and/or alternate methods of compliance and provide recommendations as to compliance with the requirements of Section 15.26.030. The cost of such consultant shall be paid by the applicant. G. Expiration. Section 15.26.030 shall expire upon the date the 2008 Building Energy Efficiency Standards are no longer in effect. SECTION III. EFFECTIVE DATE. J:\Attorney\FrNAL RESOS\2009\lO 20 09\2008 Energy Code Ordinance Strk_Undln.doc 11-85 Page 3 of4 This ordinance will take effect and be in force thirty days after final passage. Gary Halbert, AICP, PE Deputy City Manager! Director of Development Services ./\ \ I Er-atCMie e ~ t::.ity ~Jrney Approved as to form by /) ,.I/i i' ! Submitted by: J:\Attorney\FINAL RESOS\2009\lO 20 09\2008 Energy Code Ordinance Strk Undln.doc 11-86 - Page 4 of4 ORDINANCE NO. AN ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHAPTER 15.26 OF THE CHULA VISTA MUNICIPAL CODE AND ADDING SECTION 15.26.030, INCREASED ENERGY EFFICIENCY STANDARDS The City Council of the City ofChula Vista does ordain as follows: SECTION I. Findings. The City Council finds as follows: 1. Moditications to the California Building Standards and Building Energy Efficiency Standards, as detailed in this Ordinance, are reasonably necessary due to local climatic conditions. As a result of high summer ambient temperatures and periods of heat waves, average load demand and peak load demand of energy used in Chula Vista is an important factor concerning public safety and adverse economic impacts of power outages or power reductions. Reduction of total and peak energy use, as a result of incremental energy conservation measures required by this Ordinance, will have local and regional benefits in the cost-effective reduction of energy costs for the building owner, additional available system energy capacity, and a reduction in greenhouse gas emissions. 2. The increased energy efficiency standards required by Section 15.26.030 will require the diminution of energy consumption levels permitted by the 2008 Building Energy Efficiency Standards and are determined to be cost effective based on a cost-effectiveness study by Gabel Associates, LLC. SECTION II. That Chapter 15.26 of the Chula Vista Municipal Code is hereby amended to read as follows: Chapter 15.26 ENERGY CODE Sections: 15.26.010 California Energy Code adopted by reference. 15.26.020 Outdoor lighting zones. 15.26.030 Increased Energy Efficiency Standards 15.26.010 California Energy Code adopted by reference. The City of Chula Vista adopts, by reference, that certain document known as the California Energy Code, set forth in Title 24, Part 6, of the California Code of Regulations, as copyrighted by, and as may be amended from time to time by, the California Building Standards Commission. That California Energy Code is adopted as the energy code of the City of Chula Vista for the purpose of regulating building design J:\Attornev\FINAL RESOS\2009\lO 20 09\2008 Energy Code Ordinance.doc . 11-87 Page 1 of4 and construction standards to increase efficiency in the use of energy for new residential and nomesidential buildings, excepting such portions as are modified, or amended by this Chapter. Chapter 15.06 CYMC shall serve as the administrative, organizational and enforcement rules and regulations for this Chapter. 15.26.020 Outdoor lighting zones. Pursuant to Section 10-114 (c) of the California Code of Regulations, Title 24, Part I, the city has adopted an outdoor lighting zones map amending state default lighting zones as applied to certain areas of the City. The location of outdoor lighting zones in the City are per the adopted Outdoor Lighting Zones Map, dated September 2, 2005 and kept on file with the City Planning and Building Department. 15.26.030 Increased Energy Efficiency Standards A. Scope. The provisions of this Section shall apply to all new residential construction, additions, remodels and alterations, and to all new non-residential construction, additions, remodels and alterations except as follows: a. Additions, remodels or alterations to existing low-rise (three stories or less) residential buildings where the addition, remodel or alteration is less than or equal to I ,000 square feet of conditioned floor area are exempt from the provisions of this Section. b. Additions, remodels or alterations to existing high-rise residential (more than three stories), non-residential or hotel/motel buildings where the addition, remodel or alteration is less than or equal to I 0,000 square feet of conditioned floor area are exempt from the provisions of this Section. Compliance with the California Energy Code is always required even if the increased energy efficiency standards specified in this Section do not apply. B. Definitions. Terms used in this Section are as defined in the California Energy Code and Chapter 15.06,19.06 and 19.48 of the Municipal Code. C. Requirements. In addition to the requirements of the California Energy Code, applications for building permits covered under Section 15.26.030 (A) shall comply with the following: a. For Climate Zone 7: 1. All new low-rise residential buildings or additions, remodels or alterations to existing low-rise residential buildings where the additions, remodels or alterations are greater than 1,000 square feet of conditioned floor area shall use at least 15.0% less TOY Energy than the 2008 Building Energy Efficiency Standards allows. 11. All new non- residential, high-rise residential or hotel/motel buildings, or additions, remodels or alterations to existing non- residential, high- rise residential or hotel/motel buildings where the additions, remodels or alterations are greater than 10,000 square feet of conditioned floor area shall use at least 15.0% less TOY Energy than the 2008 Building Energy Efficiency Standards allows. J:\Attomey\FINAL RESOS\2009\lO 20 09\2008 Energy Code Ordimnce.doc 11-88 Page 2 of4 b. For Climate Zone 10: 1. All new low-rise residential buildings or additions, remodels or alterations to existing low-rise residential buildings where the additions, remodels or alterations are greater than 1,000 square feet of conditioned floor area shall use at least 20.0% less TDV Energy than the 2008 Building Energy Efficiency Standards allows. 11. All new non- residential, high-rise residential or hotel/motel buildings, or additions, remodels or alterations to existing non- residential, high- rise residential or hotel/motel buildings where the additions, remodels or alterations are greater than 10,000 square feet of conditioned floor area shall use at least 15.0% less TDV Energy than the 2008 Building Energy Efficiency Standards allows. D. Compliance. No building permit shall be issued unless the permit application demonstrates compliance with the requirements of Section 15.26.030 based on the performance approach as specified in the 2008 Building Energy Efficiency Standards using a California Energy Commission approved energy compliance software program. E. Compliance Credit Option for Buildings within Sectional Planning Area (SPA) Plan Projects. For building construction within Sectional Planning Area (SPA) Plan project areas whose SPA is approved subsequent to the effective date of this Ordinance, the developer may meet a portion of the requirements set forth under Section 15.26.030C provided the SPA Plan has met the qualifying energy savings thresholds lor community design and site planning features pursuant to the requirements as set forth in the SPA's approved Air Quality Improvement Plan (AQIP). If the approved AQIP has met the qualifying thresholds, the applicant may request and receive an energy savings credit towards a portion of the requirements specified in Section 15.26.030C subject to approval by the Director of Development Services, provided the project fully complies with the 2008 Building Energy Efficiency Standards (Title 24, Part 6) at the time of permitting, and conforms to applicable guidelines in effect at the time of the request for credit. F. Technical Assistance. The building official may require the applicant to retain the services of a consultant having expertise in energy efficiency techniques to review and evaluate complex systems and/or alternate methods of compliance and provide recommendations as to compliance with the requirements of Section 15.26.030. Thc cost of such consultant shall be paid by the applicant. G. Expiration. Section 15.26.030 shall expire upon the date the 2008 Building Energy Efficiency Standards are no longer in effect. SECTION III. EFFECTIVE DATE. J:\Attorney\F'fNAL RESOS\2009\10 20 09\2008 Energy Code Ordinance.doc 11-89 Page 3 of4 This ordinance will take effect and be in force thirty days after final passage. Submitted by: Approved as to form by Gary Halbert, AICP, PE Deputy City Managerl Director of Development Services J:\Attorney\FfNAL RESOS\2009\1O 20 09\2008 Energy Code Ordinance.doc 11-90 Page 4 of4 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DIRECTING STAFF TO PROPOSE LOCAL AMENDMENTS TO FUTURE VERSIONS OF THE CALIFORNIA ENERGY CODE, TITLE 24, PART 6, REQUIRING INCREASED ENERGY EFFICIENCY STANDARDS WHEREAS, through its C02 Reduction Plan Chula Vista committed to reducing greenhouse gas emissions to 20% below 1990 levels; and WHEREAS, as presented in a citywide 2005 greenhouse gas inventory, Chula Vista's greenhouse gas emissions increased since 1990 due largely to new residential growth; and WHEREAS, as a result the City Council directed staff to convene a Climate Change Working Group (CCWG) to develop recommendations to reduce the community's greenhouse gas emissions; and WHEREAS, the CCWG recommended seven climate protection measures including a 20% above Title 24 building energy efficiency standards; and WHEREAS, the CCWG recommended that increased local building energy efficiency standards be updated regularly to meet the State's goal of zero net energy construction by 2020 for homes and 2030 for businesses; and WHEREAS, on April I, 2008, City Council adopted the CCWG's seven recommendations and directed staff to develop implementation plans; and WHEREAS, on July 10,2008, City Council approved the implementation plans for the seven measures and directed staff to implement the measures based on funding levels and specifically directed staff to evaluate the impacts and initiate the process for establishing a standard of 15% to 20% above 2008 Title 24 standards; and WHEREAS, as a component of the implementation plan for the CCWG Measure No.4, Green Building Standards, staff proposed adopting local building energy efficiency standards that are generally 10% and 15% above the minimum 2008 California Building Energy Efficiency Standards for non-residential and residential buildings, respectively, and WHEREAS, staff is presenting to Council an Ordinance amending Chapter 15.26 of the Municipal Code and adding Section 15.26.030 requiring increased energy efficiency standards for residential and non-residential construction; and WHEREAS, in climate zone 7, the Ordinance requires residential and nonresidential construction to be at least 15% more energy efficient than the 2008 Building Energy Efficiency Standards; and 11-91 WHEREAS, in climate zone 10, the Ordinance requires low-rise residential construction to be at least 20% more energy efficient than the 2008 Building Energy Efficiency Standards, and high-rise residential, hotel/motel and nonresidential construction to be at least 15% more energy efficient than the 2008 Building Energy Efficiency Standards; and WHEREAS, the Ordinance exempts additions, remodels or alterations to existing low- rise residential buildings where the addition, remodel or alteration is less than or equal to 1,000 square feet of conditioned floor area, and additions, remodels or alterations to existing high-rise residential, non-residential or hotel/motel buildings wherc the addition, remodel or alteration is less than or equal to 10,000 square feet of conditioned floor area from the required increased energy efficiency standards; and WHEREAS, pursuant to State law, these local amendments to the 2008 Building Energy Efficiency Standards will no longer be in effect upon the date new State building energy efficiency standards take effect; and WHEREAS, local amendments to future State building energy efficiency standards, which are developed every three to four years, must go through California Energy Commission (CEC) approval and local adoption processes; and WHEREAS, the City Council desires that City standards would always exceed the minimums required under the State building energy efficiency standards; and WHEREAS, the City Council desires to set the currently proposed levels of increased standards for climate zones 7 and 10 as the minimum level for future local amendments to exceed new State building energy efficiency standards; and WHEREAS, pursuant to the California Administrative Code, Title 24, Part I, Section 10- 106, Locally Adopted Energy Standards, and the CEC's submittal and approval process, Council will have to make the determination, based on a cost-effectiveness study, that requiring the 15% and 20% levels above the new State standards are cost-effective; and WHEREAS, utilizing the data from the study, the City Council, shall determine the cost effectiveness of sustaining the 15% and 20% minimum levels and provide appropriate direction to staff at that time; and WHEREAS, staff shall work with the City Council, consultant and appropriate agencies in advance to implement these actions so that the City's standards could be in place no later than the effective date of the State's new standards whenever possible; and WHEREAS, City Council should anticipate that staff would request that the City Council authorize the expenditure to cover consultant fees required to conduct the required studies and any additional study options generated by City Council direction. 11-92 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista hereby adopts this resolution, and directs staff to prepare and present for City Council consideration proposed local amendments to future versions of California Energy Code requiring increased local energy efficiency standards, and the necessary future cost-effectiveness studies, consistent with this resolution. Presented by Approved as to form by Gary Halbert, AICP, PE Deputy City Manager/Development Services Director 11-93 '{2.e V ,'S-:-€fl{ OY7U~:e, 10--2.001 J:tew. l \A ORDINANCE NO, AN ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHAPTER 15.26 OF THE CHULA VISTA MUNICIPAL CODE AND ADDING SECTION 15.26.030, INCREASED ENERGY EFFICIENCY STANDARDS The City Council of the City ofChula Vista does ordain as follows: SECTION I. Findings. The City Council finds as follows: I. Modifications to the California Building Standards and Building Energy Efficiency Standards, as detailed in this Ordinance, are reasonably necessary due to local climatic conditions. As a result of high summer ambient temperatures and periods of heat waves, average load demand and peak load demand of energy used in Chula Vista is an important factor concerning public safety and adverse economic impacts of power outages or power reductions. Reduction of total and peak energy use, as a result of incremental energy conservation measures required by this Ordinance, will have local and regional benefits in the cost-effective reduction of energy costs for the building owner, additional available system energy capacity, and a reduction in greenhouse gas emissions. 2. The increased energy efficiency standards required by Section 15.26.030 will require the diminution of energy consumption levels permitted by the 2008 Building Energy Efficiency Standards and are determined to be cost effective based on a cost-effectiveness study by Gabel Associates, LLC. SECTION II. That Chapter 15.26 of the Chula Vista Municipal Code is hereby amended to read as follows: Chapter 15.26 ENERGY CODE Sections: 15.26,010 California Energy Code adopted by reference. 15.26.020 Outdoor lighting zones. 15.26.030 Increased Energv Efficiencv Standards 15.26.010 California Energy Code adopted by reference. The City of Chula Vista adopts, by reference, that certain document known as the California Energy Code, set forth in Title 24, Part 6, of the California Code of Regulations, as copyrighted by, and as may be amended rrom time to time by, the California Building Standards Commission. That California Energy Code is adopted as the energy code of the City of Chula Vista for the purpose of regulating building design Page I of 4 and construction standards to increase efficiency in the use of energy for new residential and nonresidential buildings, excepting such portions as are modified, or amended by this Chapter to exceed the California Energy Code, set forth in Title 24, Part 6. Chapter 15.06 CVMC shall serve as the administratiye, organizational and enforcement rules and regulations for this Chapter. 15.26.020 Outdoor lighting zones. Pursuant to Section 10-114 (c) of the California Code of Regulations, Title 24, Part I, the city has adopted an outdoor lighting zones map amending state default lighting zones as applied to certain areas of the City. The location of outdoor lighting zones in the City are per the adopted Outdoor Lighting Zones Map, dated September 2, 2005 and kept on file with the City Planning and Building Department. 15.26.030 Increased Enerev Efficiencv Standards A. Scope. The provisions of this Section shall apply to all new residential construction~ additions, remodels and alterations, and to all new non-residential construction, additions, remodels and alterations except as follows: a. Additions, remodels or alterations to existing low-rise (three stories or less) residential buildings where the addition, remodel or alteration is less than or equal to 1,000 square feet of conditioned floor area are exempt from the provisions of this Section. b. Additions, remodels or alterations to existing high-rise residential (more than three stories), non-residential or hotel/motel buildings where the addition, remodel or alteration is less than or equal to I 0,000 square feet of conditioned floor area are exempt from the provisions of this Section. Compliance with the California Energy Code is always required even if the increased energy efficiency standards specified in this Section do not apply. B. Definitions. Terms used in this Section are as defined in the California Energy Code and Chapter 15.06, 19.06 and 19.48 of the Municipal Code. C. Requirements. In addition to the requirements of the California Energy Code, applications for building permits covered under Section 15.26.030 (A) shall comply with the following: a. For Climate Zone 7: 1. All new low-rise residential buildings or additions, remodels or alterations to existing low-rise residential buildings where the additions, remodels or alterations are greater than 1,000 square feet of conditioned floor area shall use at least 15.0% less TDV Energy than the 2008 Building Energy Efficiency Standards allows. 11. All new non- residential, high-rise residential or hotel/motel buildings, or additions, remodels or alterations to existing non- residential, high- rise residential or hotel/motel buildings where the additions. remodels or alterations are greater than 10,000 square feet of conditioned floor area Page 2 of 4 shall use at least 15.0% less TDV Energy than the 2008 Building Energy Efficiency Standards allows. b. For Climate Zone 10: 1. All new low-rise residential buildings or additions. remodels or alterations to existing low-rise residential buildings where the addition!h remodels or alterations are greater than 1.000 square feet of conditioned floor area shall use at least 20.0% less TDV Energy than the 2008 Building Energy Efficiency Standards allows. 11. All new non- residential. high-rise residential or hotel/motel buildings, or additions. remodels or alterations to existing non- residential. high- rise residential or hotel/motel buildings where the additions. remodels or alterations are greater than 10.000 square feet of conditioned floor area shall use at least 15.0% less TDV Energy than the 2008 Building Energy Efficiency Standards allows. D. Compliance. No building permit shall be issued unless the permit application demonstrates compliance with the requirements of Section 15.26.030 based on the performance approach as specified in the 2008 Building Energy Efficiency Standards using a California Energy Commission approved energy compliance software program. E. Compliance Credit Option for Buildings within Sectional Planning Area (SPA) Plan Proiects. For building construction within Sectional Planning Area (SPA) Plan proiect areas whose SPA is approved subsequent to the effective date of this Ordinance. the developer may meet a portion of the requirements set forth under Section 15.26.030C provided the SPA Plan has met the qualifying energy savings thresholds for community design and site planning features pursuant to the requirements as set forth in the SPA's approved Air Ouality Improvement Plan (AOIP). If the approved AOIP has met the qualifying thresholds. the applicant may request and receive an energy savings credit towards a portion of the requirements specified in Section 15.26.030C subiect to approval by the Director of Development Services. provided the proiect fully complies with the 2008 Building Energy Efficiency Standards (Title 24. Part 6) which are in effect at the time of permitting. and conforms to applicable guidelines in effect at the time of the request for credit. F. Technical Assistance. The building official may require the applicant to retain the services of a consultant having expertise in energy efficiency techniques to review and evaluate complex systems and/or alternate methods of compliance and provide recommendations as to compliance with the requirements of Section 15.26.030. The cost of such consultant shall be paid by the applicant. G. Expiration. Section 15.26.030 shall expire upon the date the 2008 Building Energy Efficiency Standards are no longer in effect. Page 3 of4 SECTION III. EFFECTIVE DATE. This ordinance will take effect and be in force thirty days after final passage. Submitted by: ,\]JIJroved as to form by / \ . ~. S-i""f.1;;;;~I~<! ,/1ta~ / ltx-8.ttomey Gary Halbert, AICP, PE Deputy City Manager! Director of Development Services Page4of4 To streng/hen and promote cities as centers of opportunity, leadership, and governance. ~"" "i"". .' - .,.1'{ i ; ""'.<: ~;?<=.<' :~",".gJ'.o;r#,;;1"~' -.~~r'~::::-'~'... National League of Cities 1301 Pennsylvania Ave., N.W. Washinglon, D.C. 2aOO~-1763 202.626-3000 Fax: 202.626-3043 1:",':v.'.nk:.org 2009 Orflccrs Presidenl Ka.lhleen M. Novak Mayor Norlhglenn, Colorado FirSrVicePrt:'sidMI RonaldO.lovelioge Mayor RIverside. California Second Vice President James E. Milchell.Jr. Council Member CharloUe. North Carolina ImmeoliJte Past Prcsidenl JamesC.Hunl Councilmember Clarksburg.WeslVitginia Executive Director DonaldJ.8oM RECEIVED August 31, 2009 .'00 SEP -8 P2:54 Ms. Donna Norris Ci ty Clerk City of Chula Vista 276 4th Ave Chula Vista, CA 91910-2631 CITY OF CHULA VIS i ~ CITY CLERK'S OfFICE Dear Ms" Norris: The National League of Cities Annual Business Meeting will be held on Saturday, November 14,2009, at the conclusion of the Congress of Cities and Exposition in San Antonio. As a direct member city, your city is entitled to vote at this meeting" Based on population as of the 2000 Census, each member city casts between one and twenty votes. The number of votes for each population range can be found on the table Dn the reverse of the credentials form. To be eligible tD cast a city's vDte, a voting delegate and alternate must be officially designated by the city using the enclDsed credentials form. This form will be forwarded to NLC's Credentials Committee. NLC bylaws expressly prohibit voting by proxy. City elected officials should be made aware of this request so that decisions can be made as to" who will be the voting delegate and altemate(s). At the Congress Df Cities, the voting delegate must pick up the city's voting card at the Credentials Booth before the Annual Business Meeting and must be present at the Annual Business Meeting to cast the city's vote. The Credentials BDoth will be open during scheduled times throughout the Congress of Cities. Please return the completed form to NLC by fax (202-626-3043) on or before October 30, 2009, and keep the original for your own files. If you have any questions, please contact John Miller, Program Manager (miller@nlc.or~ Dr 202-626-3186) or Cheryl Glaubinger, Member Relations Assistnnt (!!l;}ubin!!er@r~!c.org. or 202-626-3i38). Thank you, /OJ1J?J Donald J. Borut Executive Director P.131 PresJd.mls:Jehn o..Slllllmc. Jr., Mayor. Now H;r.rcn. CatI~Cllt. BrllUl.r. O'Nelll., Couro:;~man. PhllaOOlpNa, Pcnnsyt.ra,,;;,. DireclCXS: John. S. arnoner. MilYor. VOrl<, Pernsylv;l!lia. CMI are Mayor. Wic:Nla. ~ . WlIll4m G. '8111" Brooks. Mayor. 8e~" ~ID. FlClida . Jim 8yam, Jr., MiJYD'. Pr.1IIV1IIc. Alnboma' Mlllcom Chepmlln. Alde= A";:ill eily. SOlJlh OJ~Ola' Mlgud M. Cha CounciIO,iM;tyor Pm Tem. Saot:l Fe. Ncrw MCIIco. BnIQ Cole. Mate.. Carbond:l.fo. IUlnoos' Mlldl1>Cl C. Cn.mp. CouncIwom(101 al-l....tll\!. NOW11lk. Naw Jersey' Joxpll A.. Cut'Ul.lone, Mayor. Saner /.'.i\Ss;ld'JJ!>(lr..:; . Joe D1l\tl!i-, Sr.. AldC;n'.atI. Milmuke-o. W,~". G"'lcl101l O,.h~eH, May...-. S<1Ilr>e, Mi;hll)a<1' Doug EcI>ols. Mayo<, Hod< Hill.. S""'" C1roIina. JD~S J. FInley. Jr_ al:01lr>10 0;'1 0Il1d CEO. ComCC11cu\ ConlcfCl"Cll 01 Mun:dp;3l'~Il$' Larry G. F.....ng. En!c:u1Na Di.t'Clor. aSnois Mundp..lJ l(lJll'>!l . .I. DaYld Fruste. E~OOJWo o.f'l'ctOt. Nl:vad.> Leal/Uo 01 Citic =<l Munl.:i.,..ntic:; . Furtll.do, Courolml'J'T\OOr, C3m0boll C..momia. Mi.I""" HIolr, ~l'Culiv" Oi'roor. Munidp;ll k;:l.cd"tion oJ ~ul"C<ltol;M. RlIp Hanlc.lllS, Col.ll1Cil Mcrnb(>.. Trolwoo~. Qrlo". Dcbomh A.. HUI. Council.w, W~,=-;~o Hoi~ Chio 0 E~no Dnu,,:t1 Jew"n, Mayor P,<)-Tcm'Aldcnn"n al.\.;U-(JC. Sil\Iamo:m. GCOf1Ila . eobby G. KlI!!O"'. MayOl. Monroe. NOfIh C;,U"ohna. George Lewis. EJ.ccllbvlI DiU! Mississippi Mt.nlopillLllil{Ioo, Sylvlo L L<>wly. EXlQl:NlI D;'('CID'. K""tu:ky Le"llUII 01 C.ue~. lnc. . Myro'" L""""..... CoIn:i1 Momb(". Memlltlls. T",,~. Slim """""'1. Extll;utr...-o O~<'Ct()t. ColD Mlmitip:>l Lo;lQOOO..llln>es F. MiTte<. ExCC1ltivoOi<e<:or, LlI1)QVO 01 Mi~ C.\IllJ. Ma!1<.MUehdl.C<XlncJMcmbe<. T"",~, Mlona .GDrnIL N,.,coLD~.M"YD", C<l/dwnIl.IC:"hOo FnmkC. O<tls., MI P\lt1lb'oI<o Pl"e::o. Florida. ,zc!lel Po.......cn..<;el. Coo.n:il Mcmbe"f~':..1iJCO'\iIl.. ElIZDbelh Co PllleDon. t.~"yl)r. Man:I'elCl. CotIoo<:~I. RDnd.;]J1 W. B. PUrvI.. COlII'lOl McmOO'. Colo....:o Spn CREDENTIALS FORM NATIONAL LEAGUE OF CITIES' 2009 CONGRESS OF CITIES' SAN ANTONIO, TEXAS At the Annual Business Meeting on Saturday, November 14, 2009, each direct member city of NLC is entitled to cast from one to 20 votes based upon the city's population per the 2000 census, through its designated voting delegate. Please indicate below your city and state, voting delegate and alternate(s), and sign and date the form. The form should be faxed to NLC at 202-626-3043, by the October 30, 2009, deadline. The official voting delegate and alternate(s) for the cilyltown of: FOR OFFICE USE ONLY (DO NOT WRITE IN THIS SPACE) Voting card issued to: (type or print the name of your city/town and stale) (signature) VOTING DELEGATE: 1. NAME Votes: ~ 2 3 w I '" TITLE ALTERNATE VOTING DELEGATE(S): 2. NAME TITLE 3. NAME TITLE PLEASE SIGN AND FAX THIS FORM TO NLC BY OCTOBER 30, 2009 ATTENTION: CHERYL GLAUBINGER, MEMBERSHIP RELATIONS ASSIST ANT FAX: 202-626-3043 Slgnafure (city representative): Title, Dote: NATIONAL LEAGUE OF CITIES 2009 CONGRESS OF CITIES SAN ANTONIO, TEXAS Number of Votes - Annual Business Meeting Direct Member Cities Article IV, Section 2 of the National League of Cities bylaws specifies the number of votes that each NLC direct member city is entitled to cast at the Annual Business Meeting at the Congress of Cities. Member cities are required by the bylaws to cast unanimous votes. ~ CITY POPULATION (per 2000 Census) NUMBER OF VOTES Under 50,000 1 vote 50,000 - 99,999 2 votes 100,000 - 199,999 4 votes 200,000 - 299,999 6 votes 300,000 - 399,999 8 votes 400,000 - 499,999 10 votes 500,000 - 599,999 12 votes 600,000 - 699,999 14 votes 700,000 - 799,999 16 votes 800,000 - 899,999 18 votes 900,000 and above 20 votes w I .W o Gerieral:'.sessions covering economic reco,,:fJ:~~ slIstainability and leadership. i' ~~...~ . o 32 wor~{shops 011 critical tO~i~~i facing cities o !Exposition Hall with more Ulan 2~~;.,yen~Q~isoll.ltioi1s o City Showcase fe.~turing real solutions ..', ,.~ . .,' . ,:.,;,=";::;;.'" ",';'eo._. Q More than 20 leadership !~c~,!.~!ng SemJn~ls . . From: Shari Watson Sent: Tuesday, October 13, 2009 12:53 PM To: Jennifer Quijano Cc: Rudy Ramirez Subject: Councilman Ramirez's selection for the Mobilehome Rent Review Commission Commissioner vacancy Importance: High Hello Jennifer, Councilman Ramirez has selected Rudy Gonzalez as his appointee to the Mobilehome Rent Review Commission. Councilman Ramirez will notify Mr. Gonzalez of this appointment, and will communicate to him that a staff member will be in contact soon with additional details regarding the ratification of the appointment at an upcoming City Council meeting. Kind Regards, Shari Watson Aide to Councilman Ramirez City of Chula Vista 619-585-5717 \ C'/I's /0,\ _ Vlv. ~\.e.~ cJ.aes I'o\:- c-uvve.I'-\-''i/ ..---'2. Sl210e. 0,", 0\"'1 C\\\A\G>, \ji7..to... :iSo~voy- LC,""~ ';;'i.' c~. - . /L/I) r fldJ;-HoNJ~r ~ l:kvn I~ 13 (~o.sfanec1a) IO/zo!oC) Community Garden Policy City of Chllla Vista l'URI'OSE The City of Chula Vista recognizes community gardcns as a valuable rccreation activity that can provide community members access to li-esh, nutritious produce and 10w- intensity physical activity. Community gardens an can also foster environmental awareness, positive social interaction, and community education, all while bringing added food security to the community through the development of local food sources. This policy details the procedure for the establishment of gardens on City-owneu property in the hope that the creation of these gardens will devclop the organizational infrastructure for the establishment of future gardcns on private propcrty by community non-profit groups. RESTRICTIONS/G UI [)I~L1NES A community garden must be operated by a non-profit agency or civic association and will include the following features: . A piece of land wi]] be utilized by a prequalified, organized, and recognized group to produce food and nowcrs for the use of group members, Chula Vista Parks & Recreation, or other non-profit agencies. . A community garuen should promotc environmental education, and encourage the involvcmcnt of schools, youth groups and citizens who do not have a privately-owncd (residential) plot for gardening activities. City of Chula Vista Support The City of Chula Vista wi]] support the development of community gardens within the City limits through the following n1eans: . Providing access to information on tbe development and opcration of community gardens. . Providing staff expertise anu time for the design and development of the community garden. . Assist interested groups in determining ifthe proposcd City-owned land is suitable for the development of a community garden. This will include a review of any pertinent environmental history of the site to ensure that gardens wlll be established only on uncontaminated property. . Assist interested groups with the development of user agreements between City of Chula Vista and the recognized group. Organization Responsibilities [f City-owned land is determined to be suitable for a community garden site, the following conditions will apply: 1. Prior to Development a. Recognized group must hold a community consultation process that will indicate neighborhood support for the garden. b. A community garden must have a garden site plan drawn up that will include the layout of the plots and indicate any proposed structures or fences. 1. All community garden designs must be approved by the City of Chula Vista. 11. No structures or barriers to general public access can be erected, excepting fences (see b.iii below), raised! accessible planting beds, plant supports, and trellises, public art, rain barrels al1d benches. Structures must be mobile, or will require lease agreements that structures be disassembled and removed by the community group managing the site at the termination of the lease. 111. Fences shall not exceed 3 It in height and should be constructed of wood, chain link, or ornamental metal. No fence shall be installed without review. c. The recognized group must agree to develop and operate the gardens according to a user agreement which will specify the tcrm of use, management responsibilities, user fees (if any) and access procedures including the following specific terms: i. The term of the user agreement will not exceed five years. ]. If 5-year contract is not fu]filled, the recognized group will assist City of Chu]a Vista with returning the sitc to the preexisting condition. 11. Allotments of space must be made from a waiting list on a first come, first serve basis. 111. Membership in the recognized organization, and the opportul1lty to be allotted a plot, must bc open to any resident of the community. IV. Only organic cultivation is to be allowcd on City-owned community garden sites. No jJcsticides or chemical fertilizers are to be used. v. Each garden will be required to have a shared composting area, which will avoid a build up ofwastc and to enhance soil fertility in future seasons. VI. City of Chu]a Vista must approve any allotment fecs charged. 1. Allotment fees may cover the ycarly watering, maintenance and site improvement costs, unless otherwise determined hy City ofChula Vista 2. Allotment fees shall not exceed the amount neccssary to cover the norma] operati ng costs of the garden. 3. Records of allotment fces and expenses will be kept and forwarded to City ofChula Vista to ensme correct use offees. VII. Thc recognized organization must adhere to maintenance standards set forth by City of Chu]a Vista. V111. ]n order to receive a plot, each gardener will be required to Sigll a "ho]d harmless" agreement. This document statcs that should an accident/injury occur due to ncgligence on lhc property, the City will not be sued or held liable. 2. First season ,^ a. The garden will be devcloped at no cost to the City of Chub Vista other then staff time to assist the group in completing items outlined under 2 (h). b. City of Chula Vista will assist the recognized group in the preparation of the garden site by the following: i. Removing grass 11. Turning the soil Ul. Adding compost iv. Adjustiug irrigation systems. 3. Subsequent seasons a. Recognized group will be responsible for all garden activities including: I. Collecting allotment fees hom plot users. II. Paying utility costs such as water or electrical bills. Ill. Keeping record of all revenues and expenses incurred by the community garden to be forwarded to City of Chub Vista Finance Department. IV. Spring preparation of community garden. v. Winterization of gmden. VI. Installation and maintenance of all community garden facilities. VII. Maintain garden's cleanliness and tend to weeds, which are prevalent f-i'om January to Mmeh. Although located on City-owned property with prior approval from the City of Chula Vista, all community gardens WIll be developed and maintained at no cost to the City, have a minimal amount of impact on City stafftime, aml will be uperated by volunteers from the community. Extending Community (;anlens beyond City Property \Vhile this policy addresses the procedure f'or establishing Community gardens on City property, potential actions the City may take in the future to promote the establishment of Community Gardens on private property include: Undertaking a planning process to identify oppurtunities 10 update the City zoning code llJ define and allow community gardens in appropriate zones on public and private property. Entering into joint user agreements with local schools with pre-existing community garden infrastructllre tu open these gardens to broader community lIse after school hours and during the summer months.