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MEMORANDUM OF UNDERSTANDING
BETWEEN THE
CITY OF SAN DIEGO
AND THE
CITY OF CHULA VISTA
THIS MEMORANDUM OF UNDERSTANDING (" MOU") is made by and between the CITY OF SAN DIEGO (" SAN DIEGO"), a California municipal corporation, and the CITY OF CHULA VISTA (" CHULA VISTA"), a California municipal corporation.
WHEREAS, on July 8, 2002, the San Diego City Council authorized the City Manager, or designee, to apply for and accept funds up to $ 1. 5 million from the Economic Development Administration ED A"), to be used as part of a revolving loan fund (" RLF") to be know as the San Diego RegionalRevolvingLoanFund ("SDRRLF"). Further, the San Diego City Council authorized the CityManagertonegotiateandexecuteagreementswiththecitiesofChulaVista, National City and Chula Vista to participate in the grant application and resulting RLF.
WHEREAS, the City of Chula Vista has agreed to participate in the RLF through an investment to the EDA match requirement in the amount of $ 100, 000 ( being 7% of the total fund), and to reimburse the City of San Diego on a pro rata basis for administrative costs of the RLF for a periodofthreeyears (an amount estimated at $ 38, 000), or until RLF program income is sufficient to cover administrative costs, and to pay one- fourth ( II 4) of predevelopment costs estimated at $ 50, 000 ( an amount estimated at $ 12, 500.)
WHEREAS; the City of San Diego, Community and Economic Development Department, havingadministrativeandreportingresponsibilitiestotheEDA, has years oftechnical experience operatingRLF's, and has professional staff with in excess of20 years of service administering loans to small business, and economic development finance, and are willing to share this expertise with Chula Vista businesses;
The Cities of San Diego and Chula Vista mutually agree to the following regarding the SDRRLF:
1. The Cities of San Diego and Chula Vista, by each providing investment into theSDRRLF, shall be considered partners in assisting the business community through the new RLF.
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2. The Cities of San Diego, Chula Vista, National City and Imperial Beach, ( Hthe Partner Cities") will be responsible for all program administration costs on a pro rata basis ( currently7% or $ 12, 397 a year) equivalent to their matching contribution.
3. In the event the SDRRLF is terminated for any reason, any unused contribution matchwillbereturnedtothePartnerCity, on a pro rata basis, and subject to any outstanding loans or unpaid administrative costs or fees.
4. The City of San Diego will administer the SDRRLF and will make it available to eligible businesses located in or to be located in a census tract as designated in the CommunityEconomicDevelopmentStrategy (CEDS) for the RLF, or as designed by revised 2000 national census data, and as approved by the EDA.
5. The Partner Cities will be designated in all publicity and outreach efforts pertaining to the RLF, and in all marketing collateral materials. Advertising and outreach will be coordinated between the Partner Cities.
6. A designated representative of each Partner City will be a non- voting member of aloanadvisoryboard (HLAB"), as described in the SDRRLF Loan Advisory Board By- Laws, to be established for the SDRRLF.
WHEREAS; San Diego and Chula Vista support regional economic development that benefits all citizens and businesses of South County;
NOW, THEREFORE, in consideration of the recitals and mutual obligations of the parties as herein expressed, San Diego and Chula Vista agree as follows:
Section I: San Diego Regional Revolving Loan Fund
San Diego and Chula Vista will coordinate and partner as related to the new SDRRLF as follows:
SAN DIEGO:
I) The San Diego City Manager will request from San Diego City Council a resolution authorizing application and acceptance of an EDA grant up to $ 1. 5 million 2) The San Diego City Manager will authorize signature and acceptance of this Memorandum of Understanding with Chula Vista.
3) San Diego staff will coordinate and provide technical assistance to Chula Vista small businesses seeking financing from the SDRRLF.
4) San Diego staff will submit all necessary reports to the EDA on behalf of the SDRRLF, and provide copies to the Partner Cities.
2 5) San Diego, as SDRRLF administrator, will notify Chula Vista of all loan applicationsoriginatingfromChulaVistacompaniesandadviseofanyloansbeingrecommendedfor approval before their consideration by the Loan Administration Board ( LAB).
CHDLA VISTA:
I) Chula Vista City Manager will request from the Chula Vista City Council a resolution supporting the SDRRLF, and Chula Vista' s
matching funding in the amount of$ IOO, OOO.
2) Chula Vista City Manager will request from City Counci] a reso] ution authorizing payment to the City of San Diego for one- fourth ("]/ 4") of the predevelopment costs for the SDRRLF. 3) Chula Vista City Manager will request from City Council a resolution authorizing payment of administrative costs to the City of San Diego for a period ofthree years, an amount equal to the pro rata share of the matching fund participation in the RLF, or 7%, such funds to be received by the City of San Diego within 30 days of commencement of each fiscal year, starting July I, 2002.
4) Chula Vista will not request San Diego, as SDRRLF Manager, to recommend any Chula Vista application for approval that would not otherwise be recommended through standard loan underwriting and due diligence.
Section II: Loan Administration
As the EDA grantee, San Diego will assume
responsibility for the administration of the RLF,
whichincludescoordinatingandsubmittingallannualreportstoEDA, and related administrative responsibility, inc] uding but not limited to the following:
I)
Establishing goals and objectives for the RLF.
2) Developing and implementing marketing strategies including, but not limited to workshops, press releases, marketing materials and business outreach. 3) San Diego and Chula Vista staff shall meet quarterly to discuss such issues as policychangesaffectingthisMOD, existing and new work plans, progress and tracking of goals and objectives, joint administrative issues and annual reporting requirements.
San Diego and Chula Vista further agree that all SDRRLF materials designed for distribution to the public, businesses and economic development organizations shall include information on both jurisdictions whenever possible and shall be reviewed and mutually agreed to by designatedemployeesfrombothSanDiegoandChu]a Vista whenever both jurisdictions are referenced.
Each city will collect and maintain pertinent data for the respective jurisdiction as required by theEDAforannualreportsandstateaudits, and as required by their respective City Managers and CityCouncils.
3 Each City shall have a designated employee responsible for responding to inquiries regardingSDRRLFprogrambenefits, seeking and referring qualified applicants, collecting and updating dataforreportingpurposes, and for additional support to the SDRRLF as required. The names and titles of designated employees will be provided to the City of San Diego upon acceptance of this MOU.
Section III: General Provisions
1) The contract administrator for this MOU for San Diego shall be the Economic Development Division Deputy Director, and for Chula Vista shall be the CityManager.
2) All Exhibits referred to in this MOU are incorporated by reference and, by this reference, made a part of this MOU as though fully set forth herein. In the event of any discrepancy between the terms of this MOU and any Exhibit, the terms of this MOU shall control.
3) This MOU is not assignable by either party.
4) This MOU is the sole and entire MOU between the parties relating to the subject matter hereof, and supersedes all prior understandings, agreements and documentation relating to such subject matter. Any modifications to this MOU must be in writing and signed by both parties.
5) Upon demand, the City of San Diego will indemnifY and hold harmless the Partner Cities from all losses, liabilities, costs and expenses which arise out ofthe SDRRLF and to which the partner cities may be subject by reason of any acts or omissions of the City of San Diego, its officers, employees, agents or contracts or, or by reason of any acts of the partner cities taken in good faith in accordance with directions from the City of San Diego, its officers, agents and employees, or acts of omission taken by the Partner Cities omitted in good faith due to the absence of directions from the City of San Diego, its officers, agents or employees unless such loss or liability is a result of the partner cities negligence, willfuJ misconduct, bad faith or breach of care. 4 ection IV: Effective Date
This MOU is effective upon approval by both cities. This MOU is also contingent upon the approval of a funding contribution to the SDRRLF by the Chula Vista City Council.
IN WITNESS THEREOF, this Memorandum of Understanding is executed by the City of San Diego, acting by and through its Economic Development and Community Services Director, and the City of Chula Vista, acting by and through its City Manager, on this day of 2002.
THE CITY OF SAN DIEGO THE CITY OF CHULA VISTA
BY~
HANK CUNNINGHAM
Director
Community and Economic
Development Department
nA VID D. ROWLANDS, JR/
City Manager
I HEREBY APPROVE the form and legality of the foregoing Memorandum of Understandingthis2 ''vD day of ~
l"'( v--
1 , 2002-:- z uo 3
THE CITY OF SAN DIEGO
CASEY GWINN, City Attorney
LISA A. FOSTER
Deputy City Attorney
THE CITY OF CHULA VISTA
By ~"" .
CITY A EY
c:/
5 CITY COUNCIL/ REDEVELOPMENT AGENCY
ACTION AGENDA
November 12, 2002 6: 00 p. m.
CALL TO ORDER: At 9: 45 p. m.
ROLL CALL: Agency/ Councilmembers Davis, Padilla, Rindone, Salas, Chair/ Mayor Horton
All present.
CONSENT CALENDAR
I. APPROV AL OF MINUTES - November 5, 2002
The minutes were approved ( 5- 0).
2. AGENCY RESOLUTION NO. 1801, RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA AMENDING THE FISCAL YEAR 2003 BUDGET TO APPROPRIATE $ 63, 332 FROM THE AVAILABLE FUND BALANCE
IN THE MERGED PROJECT AREA FUND FOR REPAYMENT OF ADVANCES TO
THE BA YFRONT/ TOWN CENTRE I PROJECT AREA FUND AND
APPROPRIATING $ 63, 332 FROM UNANTICIPATED REVENUES IN THE
BAYFRONT/ TOWN CENTRE I PROJECT AREA FUND FOR GATEWAY CHULA
VISTA PHASE I PERMIT FEE REIMBURSEMENTS PURSUANT TO THE ADOPTED DISPOSITION AND DEVELOPMENT AGREEMENT, was adopted ( 5- 0).
Under the provisions of the adopted Disposition and Development Agreement ( DDA) for the Gateway Chula Vista project, the project developer is entitled to reimbursement of up to fifty percent of City permit fees ( not- to- exceed $ 91, 000) for the first phase of the project. The developer has submitted evidence of permit fees paid for Phase I permits totaling $ 126, 663. These permit fee payments have been verified and a reimbursement of 63, 332 will be made with this appropriation action. ( Community Development Director)
Staff recommendation: Agency adopt the resolution.
3. COUNCIL RESOLUTION NO. 2002- 461 AND AGENCY RESOLUTION NO. 1802, RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT
AGENCY OF THE CITY OF CHULA VISTA, I) APPROVING PARTICIPATION IN THE SAN DIEGO REGIONAL REVOLVING LOAN FUND PROGRAM; 2)
APPROVING A MEMORANDUM OF UNDERSTANDING ( MOU) BETWEEN THE
CITY OF SAN DIEGO AND THE CITY OF CHULA VISTA AND AUTHORIZING THE CITY MANAGER TO SIGN; AND 3) AMENDING THE FISCAL YEAR 2003 BUDGET BY APPROPRIATING $ 124, 897 FROM THE AVAILABLE FUND
BALANCE IN THE MERGED PROJECT AREA FUND FOR REPAYMENT OF
ADVANCES TO THE BA YFRONT/ TOWN CENTRE PROJECT AREA FUND AND APPROPRIATING $ 124, 897 FROM UNANTICIPATED REVENUES IN THE
BAYFRONT/ TOWN CENTRE I PROJECT AREA FUND FOR THE SAN DIEGO REGIONAL REVOLVING LOAN FUND, were adopted ( 5- 0).
CONSENT CALENDAR ( Continued)
Adoption of the resolution approves participation in a $ 3 million revolving loan fund program that is funded by a $ 1. 5 million grant from the federal Economic Development Administration, and matching funds from the cities of National City ($ 250, 000), Imperial Beach ($ 150, 000), San Diego ($ 1, 000, 000), and Chula Vista ($ 100, 000). The purpose of the loan program is to stimulate economic activity by providing loans to small and medium sized businesses located specifically in low to moderate income census tract areas. ( Community Development Director)
Staff recommendation: Agency/ Council adopt the resolution.
ORAL COMMUNICATIONS
There were none.
OTHER BUSINESS
4. DIRECTOR' S REPORTS
There were none.
5. CHAIR/ MAYOR REPORTS
There were none.
6. AGENCY/ COUNCIL COMMENTS
There were none.
CLOSED SESSION
7. CONFERENCE WITH LEGAL COUNSEL REGARDING ANTICIPATED
LITIGATION - Pursuant to Government Code Section 54956. 9( b) One Case
This item was not discussed, and no action was taken.
8. CONFERENCE WITH LEGAL COUNSEL REGARDING INITIATION OF LITIGATION - Pursuant to Government Code Section 54956. 9( c) One Case
This item was not discussed, and no action was taken.
9. CONFERENCE WITH REAL PROPERTY NEGOTIATOR - Pursuant to Government Code Section 54956. 8
a. Property: Assessor Parcel Nos. 568- 071- 0100 ( approximately 23 acres located at 20 I Third A venue)
Negotiating Parties: Chris Salomone ( Redevelopment Agency) and Dan Floit, owner
Under Negotiations: Price and terms for acquisition
Direction was given to Counsel.
ADJOURNMENT: At 10: 10 p. m. to the Regular Meeting of the Redevelopment Agency on November 19, 2002, at 6: 00 p. m., immediately following the City Council meeting.