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RESOLUTION NO. 2014-146 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A TWO-PARTY AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND RECON ENVIRONMENTAL, INC. TO SERVE AS THE OTAY RANCH PRESERVE STEWARD/BIOLOGIST, AND AUTHORIZING THE CITY MANAGER TO EXECUTE UP TO FOUR 1-YEAR EXTENSIONS, AND ANY RELATED DOCUMENTS IN CONJUNCTION WITH IMPLEMENTING THE AGREEMENT
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
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SUMMARY
In 2009, upon completing the City’s competitive bidding process, the City selected RECON Environmental Inc. (RECON) to serve as the Otay Ranch Preserve Owner/Manager (POM) Preserve Steward/Biologist (PSB). The current two-party agreement authorizes RECON to serve as the POM PSB for an initial five-year term, expiring on August 4, 2014. Pursuant to the current agreement, City Council may authorize subsequent renewals beyond the initial five year term at its sole discretion. Based on its exemplary performance, experience, and unique understanding of the Otay Ranch Preserve, RECON has consistently demonstrated that it possesses the qualifications required to continue serving as the POM PSB. Today’s Council action would approve a new two-party agreement between the City and RECON to continue managing and monitoring the biological resources within the Otay Ranch Preserve in accordance with the Otay Ranch Resource Management Plan (RMP).
ENVIRONMENTAL REVIEW
The Development Services Director 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 involves only the approval of a contract to provide biological technical services to the City as the Otay Ranch PSB; 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.
BOARD/COMMISSION RECOMMENDATION
Not Applicable
DISCUSSION
History of Otay Ranch Preserve and Selection of Preserve Steward Biologist
In 1993, the City of Chula Vista (City) and County of San Diego (County) jointly adopted the Otay Ranch General Development Plan/Subregional Plan (GDP/SRP), which sets forth the plans for development and open space within Otay Ranch. The GDP/SRP delineates approximately 11,000 acres as the Otay Ranch Preserve (Preserve). Included as part of the GDP/SRP, the RMP Phase 1 was incorporated to identify major policies and implementation measures to guide development and the protection of the biological and cultural resources within Otay Ranch. RMP Phase 1 required that, prior to the approval of the first Sectional Planning Area (SPA) within the Otay Ranch, a POM for the Preserve be selected and an RMP Phase 2 be completed, which would serve as the implementation plan providing the framework for the protection, management, and monitoring requirements of the Preserve.
In 1996, RMP Phase 2 was completed and the City and the County designated themselves as the Otay Ranch POM. The City and County executed a Joint Powers Agreement (JPA) to delineate their respective roles and responsibilities. The fundamental job of the POM is to implement the RMP by actively managing lands conveyed to the Preserve system. Generally the POM is tasked to protect resources, monitor and manage preserve lands; participate in necessary enforcement activities; develop educational facilities and interpretive programs; and implement and/or coordinate and accommodate research programs. To date, the City and County continue to serve as the POM for the Preserve.
In March 2009, the City and County, in coordination with the Otay Ranch POM Working Group, consisting of representatives from the U.S. Fish and Wildlife Service, California Department of Fish and Wildlife (collectively referred to as the Wildlife Agencies), stakeholders, and other interested parties, determined the need to designate a single entity to serve as the Otay Ranch PSB to provide the POM with technical expertise needed to manage and monitor the Preserve. POM staff and the Working Group developed a Scope of Work outlining the qualifications of the Otay Ranch PSB. The Scope of Work was then presented and approved by the Otay Ranch POM Preserve Management Team (PMT) and Policy Committee (PC). Both the PMT and PC directed POM staff to proceed with retaining a PSB through a competitive bidding process. At that time, the City agreed to administer the contract on behalf of the POM and proceed with distribution of a Request for Qualifications (RFQ).
On May 6, 2009, a RFQ was distributed to qualified biological consultants in order to solicit candidates interested in serving as the Otay Ranch PSB. Upon completing a competitive bidding process, the City selected RECON to serve as the Otay Ranch PSB in order to manage and monitor the biological resources within the Preserve in accordance with the approved Otay Ranch RMP. Pursuant to the current two-party agreement, RECON can serve as the Otay Ranch PSB for an initial five year term at which time City Council may authorize subsequent renewals, at its sole discretion. The current agreement will expire August 4, 2014, and it is necessary to approve a new contract.
Proposed New Preserve Steward Biologist Contract
In matters concerning preserve steward contracting, the fundamental role of the Otay Ranch PMT and PC under the JPA, is to direct staff to select a single entity to serve as the Otay Ranch PSB. As stated in the JPA, the Otay Ranch PSB shall be selected based several desired qualifications including, but not limited to, their demonstrated ability to provide continued long-term management and monitoring of open space preserve areas, as shown by staff experience and existing programs.
On April 21, 2014 and May 12, 2014, the Otay Ranch PMT and Otay Ranch PC, respectively, held duly noticed public meetings to discuss renewing the current contract with RECON. Following a presentation by joint staff, both the Otay Ranch PMT and Otay Ranch PC expressed their continued support of RECON and directed City staff to extend RECON’s biological consulting services associated with the Otay Ranch PSB for an additional five years.
As directed by both the Otay Ranch POM PMT and PC, staff has prepared a two-party agreement with RECON to continue managing and monitoring the biological resources within the Preserve in accordance with the RMP. Services to be provided to the City include, but are not limited to the following, and as further detailed in the contract contained in Attachment 1:
§ Conduct field surveys in order to monitor the sensitive biological resources existing within the Preserve;
§ Prepare biological resource reports documenting monitoring results and observation;
§ Participate and represent the POM at meetings related to management and monitoring of regional habitat; and,
§ Implement basic stewardship in accordance with the Otay Ranch RMP.
The new contract is modeled after the previous contract, and although it covers a five-year period, it’s important to note that today’s actions only approve the specific biological consulting services work for the initial one-year term. As stated in the contract, the City shall have the option to renew this Agreement on an annual basis, at the City’s sole discretion, for up to four additional 1-year terms. The City Manager shall have the authority to exercise each option to renew based on RECON’s performance and timely completion of tasks identified in the approved Work Plan. However, the City retains the right not to exercise the options and also has the ability to terminate the agreement during the contract period pursuant to Sections 8 10 of the Agreement (“Termination of Agreement for Cause” and “Termination of Agreement for Convenience of City,” respectively).
Compensation for each fiscal year / renewal period shall not exceed $500,000. This is a conservative amount based on anticipated land conveyances over the next five-years. Consistent with the current Otay Ranch PSB contract, the actual compensation for each renewal period is determined through staff preparation of an annual operating budget as derived by the Annual Work Plans. Each year, the annual operating budget and Work Plan is presented to the Otay Ranch PMT and PC for approval. Following approval by the Otay Ranch PMT and PC, the operating budget is incorporated into Community Facilities District 97-2 which is ultimately adopted by City Council as part of the City’s annual budget process.
Sole Source Contract
The City selected Recon to serve as the POM PSB through a competitive bid process. The current agreement with Recon authorizes the City Council to renew the agreement after the initial five year term. City staff is recommending that the City Council exercise that authority and enter into the new agreement with Recon, rather than participate in another competitive bid process. This recommendation is based on Recon’s demonstrated expertise, experience, and unique knowledge of the RMP, as described below. As a result of its unique performance capabilities with respect to the Otay Ranch Preserve PSB duties, staff has identified Recon as the sole source for provision of these services, pursuant to Chula Vista Municipal Code section 2.56.070.B.4.
Implementation of the Otay Ranch RMP requires a biological steward with extensive experience with the unique biological resources within the Otay Ranch Preserve, and a demonstrated ability to implement the long-term management directives contained in the Otay Ranch RMP. Over the past five years, RECON has performed management and monitoring of approximately 3,200 acres within the Otay Ranch Preserve. During this time, RECON has documented, prioritized, and implemented the adaptive management needs for all of the biological resources within the current preserve acreages. In addition, RECON has been instrumental in developing coordinated management efforts with adjacent land mangers and local/regional law enforcement. This is demonstrated by the strong collaborative relationships developed between the City, County, City of San Diego, Wildlife Agencies, SANDAG, U.S. Border Patrol, County Sheriff’s Department, and related management and monitoring working groups. Based on RECON’s exemplary performance, experience and unique understanding of the Otay Ranch Preserve, they have consistently demonstrated that they possess the qualifications required to continue serving as the Otay Ranch PSB.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the property, which is the subject to this action. Staff is not independently aware, nor has staff been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The Otay Ranch POM and supporting services provided by the Otay Ranch PSB support the Healthy Community goal, particularly City Initiative 3.2.1 (Implement environmental/conservation programs). The Chula Vista Multiple Species Conservation Program (MSCP) Subarea Plan and associated Implementing Agreement with the Wildlife Agencies rely on the City’s implementation of the Otay Ranch RMP for the protection of biological resources within the Otay Ranch Preserve. Approval of the Otay Ranch PSB agreement will assure biological resources within Otay Ranch Preserve are adequately protected and managed.
CURRENT YEAR FISCAL IMPACT
The approved Otay Ranch FY14/15 Work Plan estimated that $415,000 is necessary to cover the costs for the Otay Ranch PSB to implement the required management and monitoring tasks identified in the Otay Ranch RMP. The funding source for this contract is provided through the City’s Community Facility District 97-2 (CFD 97-2). CFD 97-2 was specifically established to provide perpetual funding for the maintenance and monitoring of the Otay Ranch Preserve. A not to exceed budget of $415,000 for Otay Ranch PSB related activities has been programmed into the current fiscal year budget for CFD 97-2. Therefore, the cost to implement the two-party agreement with RECON will not result in a fiscal impact to the General Fund.
ONGOING FISCAL IMPACT
Community Facilities District 97-2 was established to provide a perpetual funding source for maintenance and monitoring of the Otay Ranch Preserve, and therefore no impacts to the City’s General Fund will occur. As outlined in the table below, the fiscal year 2014-15 budget for management and monitoring is $415,000; however, this amount will vary each year and will be reassessed on an annual basis as part of the approval of the Otay Ranch POM Annual Work Plan. Notwithstanding, the maximum compensation for each renewal period shall be determined through the Annual Work Plan and shall not exceed $500,000, or the CFD funds available (if less) as determined by City’s finance staff. Final annual expenditure amounts will be included as part of the City’s annual budget for City Council action. The estimated compensation per renewal period/fiscal year was determined based on several factors including: the amount of land conveyed since approval of 2009 PSB agreement (amount of lands has doubled), amount of preserve land forecasted between FY14/15 - FY18/19 (approximately 500 acres are anticipated); required surveys and monitoring tasks contained in the Otay Ranch RMP, and previous task expenditures since 2009. An estimated five-year budget forecast is provided below.
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ESTIMATED BUDGET PER FISCAL YEAR (FY) |
|
POM CFD 97-2 Budget Category |
Task |
FY 14/15 |
FY 15/16 |
FY 16/17 |
FY 17/18 |
FY 18/19 |
|
Preserve Monitoring |
Surveys |
$154,000 |
$128,000 |
$192,000 |
$214,000 |
$186,000 |
|
|
Land Stewardship |
$50,000 |
$52,000 |
$54,000 |
$55,000 |
$57,000 |
|
|
Meetings/ Coordination |
$27,000 |
$27,000 |
$27,000 |
$27,000 |
$27,000 |
|
|
Reporting |
$108,000 |
$107,000 |
$101,000 |
$99,000 |
$119,000 |
|
Operations and Maintenance |
Access Control |
$38,000 |
$38,000 |
$38,000 |
$38,000 |
$38,000 |
|
|
Invasive Species Treatment |
$38,000 |
$68,000 |
$58,000 |
$67,000 |
$73,000 |
|
TOTALS |
$415,000$420,000$470,000$500,000$500,000 |
|
|
|
|
ATTACHMENTS
1. Two-Party Agreement: City of Chula Vista and RECON
Staff Contact: Glen Laube, Senior Planner