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HomeMy WebLinkAbout10/11/96 BAKERSFIELD MEMORANDUM October 11, 1996 TO: HONORABLE MAYOR AND CITY COUN~C~ FROM: ALAN TANDY, CITY MANAGER SUBJECT: GENERAL INFORMATION l. There is a significant report enclosed on the study of the Convention Center expansion. It will be verbally presented, along with added budget detail, at your next meeting. 2. A memorandum is enclosed from Economic and Community Development outlining the application process and costs to obtain a Foreign Trade Zone designation. 3. Also enclosed from EDCD is a status report on the Union #10 Water Main and Fire Upgrade project. 4. The Dennen annexation is going well. The survey was positive, and a hearing is scheduled at LAFCO. Please note, this is an area where efforts failed in years gone by. Thanks are due to Dolores Teubner and the interdepartmental annexation committee. They are doing a great job of getting information out and questions clarified. 5. We believe the FAA, property owner, and the City are all in accord on the property acquisition for the airport. It will come before you for formal action as soon as documents are in final form. 6. The video walls for the Convention Center have been delivered and are on the floor being tested. They will be lifted into place next week. If you haven't seen cube system video walls, stop by and have Lee or Greg show them to you. They will be a great enhancement. Their first formal use, sort of a break in and test, will be at the Bakersfield vs. Reno hockey exhibition game at 5:00 pm on Friday, October 18th. Honorable Mayor and City Council October 11, 1996 Page 2 Many of our events are suitable for advertising on the walls. If you know of prospects, send them to Lee Andersen or me. We are offering special low rates in order to get samples to demo for others. We will be able to run any size tape or digital information. 7. Due to multiple problems relating to the fiber-optic installation on Truxtun Avenue, the contractor/permit holder's permit was suspended Wednesday afternoon. Staff met them Thursday morning regarding the actions and conditions necessary for reinstatement of their permit. We have given them specific work hours and stipulations, as noted in the attached memorandum. AT:rs cc: Department Heads Pamela McCarthy, Acting City Clerk Trudy Slater, Administrative Analyst B A-- K E R S F I E L D MEMORANDUM October 10, 1996 TO: HONORABLE MAYOR AND CITY COUnCIL...-- FROM: ALAN TANDY, CITY MANAGER SUBJECT: FACILITY EXPANSION IV Background Under a directive contained in City Council goals, the staff has been undertaking a study of a major expansion to the Convention Center. The draft projections of events, attendance and economic factors are attached as Exhibit "A". The architects are doing the cost estimating, scoping, rendering, etc. and are scheduled to report to the City Council on November 6th. The community reaction to the concept of this expansion has, so far, been overwhelmingly positive. That positive reaction has included committees or groups from the Chamber., Governmental Review Committee, Downtown Business Association, Convention and Visitors' Bureau, Vision Committee, Centennial Committee, and proponents of the riverwalk. Many of those groups have members who represent other interests, such as Kern Tax, Historic Preservation, the media, and others. While not yet a total community reaction or, in most cases, even the final formal reaction of the groups mentioned above, the trend is positive. Centennial Plaza and Water Themes In the study stage of the project, pieces began to fall together which have the potential to draw the City Centennial, water themes, and facility expansion together. Basically, as a part of the architects' scoping work, they said while the project could be done as we originally conceived it, with the Chamber of Commerce's building staying in place, that it would be a "better" project if the Chamber was relocated. "Better" is due to improved circulation, ticketing, and vision. The Chamber has been receptive to a move, if they can be made "whole", and ideas are being explored to see if "whole" and "affordable" for the City are compatible. Honorable Mayor and City Council October 10, 1996 Page 2 If there is "compatibility", the Centennial Plaza could be on the corner where the Chamber now si',..:. It would serve as an entryway statement into the expanded Convention Center, which will draw about 700,000 people per year. It would have a water theme, serve as a pre-function location for the Convention Center, have a small stage for speakers, entertainers, etc. The property could be turned over to the Centennial Committee, and it could be funded by donations and centennial related fundraisers. Other "centennials" use methods, such as having people pay $50 for bricks that have names for the hard scape and having artists donate sculptures and then sell centennial miniatures. It's truly unique feature is that it's on Colonel Baker's field and could be constructed for the City of Bakersfield's 100th birthday. It could, as an entrance to the expanded Convention Center, also be a community statement of pride in the arena's enhancement to the cultural and recreational life in Bakersfield. The Arena The expansion is conceived to be a multi-purpose arena with bowl type seating and multi- purpose floor space. It would be a home for concerts, shows, rodeos, trade shows, auto and RV shows, larger conventions, circuses, hockey, basketball, ice shows, and a variety of other sporting and novelty events. Its availability could help the City to house many of the 125 events a year we turn down, because we are now booked. By placing it immediately adjacent to the existing center, the two structures can serve as one integrated facility for conventions, auto or trade shows, etc., or as two completely separate venues, with a sporting event in one and a concert in the other, as examples. The location also saves by more efficient use of staff, materials (such as tables and chairs), and by using existing land and some existing parking spaces. Even with the use of existing parking, including the County's parking garage, which we have an agreement to use, the project would require additional parking, either surface, or in the form of a parking structure. Seating would either be in the 6,000 (sports) to 8,000 (concert) range, or the 8,000 to 10,000 range, depending on total cost factors and final priorities. Phasing The overall project would have to be done in two major phases. Since the existing parking lot would be shut down for construction, additional parking and an overpass or underpass for the railroad tracks would be needed before construction begins on the arena. Similarly, to move the Chamber and to preserve time to fund raise for and build Centennial Plaza to be open by the Centennial, those aspects would have to begin soon, simultaneously with design of the arena. Honorable Mayor and City Council October 10, 1996 Page 3 A detailed Phase I Work Plan is attached as Exhibit "B". Phase II, of course, would be the arena itself. It should be noted that, should anything happen to interrupt Phase II or the arena construction, none of the investment in Phase I is wasted. The Centennial Plaza could still open, and circulation improvements are needed at the existing Convention Center anyway. We already have 459 parking spaces south of the tracks, and the County has blocks of surface parking that would benefit from an underpass or overpass. Additional parking will soon be needed and, finally, a full arena design would be useable in two, ten, or fifteen years if it were delayed now. Why an Arena? Simply: 1) It has great potential for economic return by attracting new visitors and dollars to Bakersfield and keeping money from "fleeing~' as our residents leave town for activities which could be here; 2) It serves as a major anchor to diversify and enhance our cultural and recreational life with secondary improvements to our image and ability to attract employers; 3) Our Centennial should be a major celebration. Through the Plaza and arena, on Colonel Baker's field, we could draw history, art, water, entertainment, and community pride together; 4) The Convention Center has, historically, been built and expanded to deal with community growth. This is a logical addition to the 1962, 1989, and 1995 expansions. Summary More work remains on the study phase, including the sizing of various features, cost refinement, and final financial plan. These elements will be brought forward for consideration by the City Council within the next few weeks. AT: rs Attachments ATTACHMENT "A" BAKERSFIELD CONVENTION CENTER MEMOI~NDUM September 18, 1996 TO: ALAN TANDY, CITY MANAGER FROM: LELAND J. ANDERSEN, COMMUNITY SERVICES MANAGER .,,~/ ~/ /, SUBJECT: FACILITY EXPANSION REPORT -./' The positive response to the proposed construction of new public assembly facilities has initiated an evaluation of the impact additional space would have in the community. A wide variety of events have bypassed Bakersfield for many years due to lack of date availability or logistical constraints present within the Convention Center. Additional facilities would create an opportunity to host much larger events, drawing larger assemblages of people from both the local community and out of town. This ability to expand our resources will have a positive economic effect. Financial opportunities will arise due to additional dollars being spent by individuals attending new and expanded events. A positive economic trend will lead to the creation of jobs which ultimately translates into community development, while paving a road for a brighter future. Several concert and event promoters have been contacted with regard to what types of groups and shows that might be presented in our new facility. Promoters were excited at the prospect and offered the following comments: · Avalon (Los Angeles): "We are very interested for opportunities to book bigger name acts than those we present in the Auditorium. A new facility should have a flexible capacity so we could book a wider range of artists and grow into the larger venue." · DBL Entertainment (Bakersfield): "It would be a great addition and build on the momentum created by the other new facilities in town to bring bigger name performers to Bakersfield. We would love to do the grand opening with a big name artist that has never played here." Alan Tandy September 11, 1996 Page2 Il! ,~l r, .- c- ~...,; · Pacific Concert Group (Los Angeles): "We are excited. We've sold out each of the three times we have produced concerts at the Convention Center. It would give us and the acts we represent the opportunity to increase our audience base." · MCA Concerts (Los Angeles): "A new facility would draw us into the market with more chances of booking an act. We're looking at Bakersfield as a market to expand into, and the new facility would make the area all the more attractive." · Space Agency (Salt Lake City): "We are very interested in new possibilities of bookings in a new facility and the chance to do more dates in both facilities." It appears Bakersfield may be able to support larger audiences. As an example, a "George Strait" concert at Mesa Marin on April 26, 1996 had a sold-out attendance of over 9,500 and grossed nearly $224,000.00. Non-concert event promoters such as Vee Corporation, producers of "Sesame Street - Live", Gatti Brothers, a Circus producer, the Harlem Globetrotters and the World Wrestling Federation (WWF), when contacted, all expressed an interest in producing their events in a new facility. Each of these companies has had a difficult time procuring dates for their events for many years. A Circus type event and the world renown Ice Capades can no longer hold their events in the Convention Center due to ceiling height and other logistical constraints. A new facility would solve these problems and once again allow the community an opportunity to enjoy these wonderful productions. Adding new facilities would allow numerous other organizations that are for various reasons, unable to book a date at the Convention Center, a greater opportunity to secure an event date. The Convention Center is contacted regularly by organizations interested in hosting various types of events including Consumer/Inventory Liquidation shows, RV shows, large banquets and amateur sports events. In addition, a second facility would make dates available for many locally sponsored events that are excluded due to date unavailability. At present, approximately 37% of the excluded events are locally produced. These events include large banquets of 800 or.greater (Frito Lay, United Food and Commercial Workers, Community Christian High School), wedding receptions, dance recitals (Civic Dance Center, All Star Dance Academy) and religious functions. In addition, many other events are forced to pick dates that are second or third choices. Comparable facilities in markets with similar demographics were contacted to cletermine which types of events they book that currently are not held in the Convention Center. Those contactecl were Fresno Convention Center; Mark of the Quad Cities in Moline, Alan Tandy September 11, 1996 Page 3 Illinois; Yon Braun Civic Center in Huntsville, Alabama; and the Roanoke Civic Center in Roanoke, Virginia. Following is a sample of events they currently host: · Major Concerts featuring artists such as Garth Brooks, Boys II Men, Whitney Houston and Nell Diamond · Continental Basketball League games · Circus (Ringling Bros. and Circus Vargas) · NBA and NHL Exhibition games · College Sports (Basketball and Volleyball games and tournaments) · Ice Events (Disney on Ice and Figure Skating Competitions, Ice Capades) · Car and Boat shows · Dirt Events (Rodeos and Monster Truck pulls) Most of the entertainment events are held once a year. However, concerts and sports occupy multiple dates, with some of the facilities hosting a major concert on an average of more than once a month. An additional facility would not only increase our ability to host entertainment and sporting events, but also increase our convention bookings. Information provided by the Convention and Visitors Bureau (CVB), lists numerous conventions that have by passed Bakersfield due to a lack of space. The CVB notes that most convention groups that have not booked are space intensive and would consider Bakersfield with expanded facilities. Following is a list of potential convention groups that have expressed an interest in Bakersfield, showing attendance and their estimated economic impact to the community: Convention Delegate Attendanc~ Economic Impact* 1 ) Grand Bethel (Jobs Daughter) 5000/day (5 days) $ 2,850,000.00 2) Intl. Order of Rainbow Girls 3500/day (4 days) $1,596,000.00 3) Intl. Key Clubs (CNNV/HI) 2600/day (3 days) $ 889,000.00 4) California Music Educators 1500/day (4 days) $ 684,000.00 5) California Cattlemen's Assn. 1000/day (5 days) $ 570,000.00 6) Amer. Guild of Handbell Ringers700/day (4 days) $ 319,000.00 *Note: Economic impact is calculated at $114/delegate times attendance times number of days the convention is in Bakersfield. The CVB also provided information on approximately fifteen other groups who would be potential users of the expanded facility. The combined meeting and exhibit space will make Bakersfield a viable destination. Alan Tandy September 11, 1996 ~ Page 4 ' L-iL] L~"L~ ~' i~J With increased capacity to host new events, the facility and downtown area will see an obvious increase in attendance figures. Conservative estimates would indicate at least a doubling of the Convention Center's FY 1995-96 attendance figure of 330,348. Increases would come from doubling available event size, additional event days, and enabling currently booked events to grow. In addition, an International Association of Auditorium Managers (IAAM) 1994 Industry Profile Survey listed an average attendance figure of 455,796, with a Iow figure of 295,125, for Arenas with seating capacities of 7,500 to 12,500. Attendance figures were generated from an average of 113 events during the year for arenas our size. From these numbers an estimated out of town draw is difficult to determine, however, there would be a definite increase from new conventions, entertainment and sports events due to advertising coverage throughout a larger demographic area. Along with larger attendance figures and more people traveling to Bakersfield, increases in revenue both for the Convention Center and the community would be achieved. The Industry Profile Survey further lists an average Direct Operating Income of $1,120,315.00 for Arenas with seating capacities of 7,500 to 12,500. This additional income would be derived from facility rentals, equipment/service rentals and concessions. The economic impact of an additional facility would come from established events growing, as well as, attracting new events. A prime example is the Watchtower Convention. This organization currently holds their event over six weekends (Friday - Sunday) during July and August. The average attendance is 4,900, with a CVB determined economic impact of $1,675,800.00 per weekend. This convention was previously held at the Fresno Convention Center, and has a potential to grow to 7,000 people per weekend. Potential growth alone represents an additional economic impact of $718,200.00 per weekend, and $4,309,200.00 over the normal six weekends. The economic impact from new events is difficult to gauge; however, it is estimated that the overall additional convention activity would amount to approximately $6,908,000.00. This new convention business, along with greater numbers of people traveling from outside the area will have a major positive impact. Revenue generated is further enhanced by estimates made by the U.S. Tourist Association in that the visitor's dollar rolls over seven times before leaving the community. The significant economic impact a new facility will have on employment in the community is difficult to measure. However, when the project becomes a reality the hospitality industry will be greatly impacted. The demand to staff restaurants, hotels and related Alan "i'andy September 11, 1996 businesses will increase significantly. In support, a Los Angeles Times article regarding a project recently completed in Denver, Colorado noted that the facility inspired construction of 25 new restaurants and over 400 residential units in the downtown area adjacent to the new facility. Growth similar to that in Denver, but to a somewhat lesser degree, is not unreasonable to consider for Bakersfield. With increased event activity, the hospitality industry could plan accordingly affecting the current, temporary and long term employment status. The above information clearly shows the positive elements a new facility would provide to the community. Our population base is strong enough to support this addition to our existing Convention Center facility. The project will create a positive economic impact beginning with construction and continuing throughout decades of services to the community. EXHIBIT "B" PHASE I ELEMENTS, WORK TASKS, AND NEEDED AUTHORIZATIONS In order to pursue Phase I, staff should be authorized and directed as follows: 1 ) To bring forward the architect's report and associated financing plan on November 6th for Council consideration; 2) Te bring to conclusion the issue of moving the Chamber, or not, and preparing a contract for Council action, if a concept agreement is reached; 3) To initiate the RFP process for architectural and engineering designs of the Plaza (if applicable), arena parking and rail crossing elements; 4) Assuming Item #1 is positively resolved, plans should be refined to work with the Centennial Committee for fundraising, design, timing, and related issues for the Plaza. A major cooperative effort would be needed to maximize community efforts and involvement; 5) To initiate land acquisition needed for parking, to obtain permits from the railroad for track crossings, and/or design/build of a parking structure, if that is done in lieu of surface parking; 6) To demolish structures on land currently owned by the City that would be involved in temporary parking; 7) To initiate procedures to bring a bond underwriter and bond attorney "on board"; 8) To return appropriation adjustments for the financing of Phase I and to complete the financing plan for Phase II. 9) To complete a joint parking agreement with Kern County to share existing surface spaces, in addition to the County owned garage. 10) To initiate environmental and zoning processes which are pertinent. Economic and Community Development Department MEMORANDUM October 7, 1996 TO: Alan Tandy, City Manager ~ FROM: Jake Wager, Economic Development Direct SUBJECT: FOREIGN TRADE ZONE - SUBZONE APPLICATION PROCESS & COSTS The World Port of Los Angeles (Foreign Trade Zone 202) has currently approved the designation of three subzone sites, the third being the International Trade & Commerce Center (ITTC) north of Bakersfield. To obtain a Foreign Trade Zone subzone designation, such as ITTC, a Subzone Application by the City of Bakersfield must be made to the Federal Foreign Trade Zone Board, with the approval of the World Port of Los Angeles. The Subzone Application process is extensive and complex. The application requires the submittal of a variety of information, studies and analysis to justify the creation of a Subzone, some of which include: * Environmental assessment detailing impact of Zone operations * Cost/Benefits analysis as to the need for a Zone services * Letters of intent to use the Zone * Surveys of international activity in the community * Designation of operators, attorneys, customhouse brokers, agents to be used * Economic impact on affected industries and consistency with U.S. trade policy Because of the specific nature of the information requested, World Port staff recommends hiring a Foreign Trade Zone consultant for assistance in developing the application (est. cost $50,000 - $75,000). An initial $15,000 fee is required to submit a Subzone Application for review by the Foreign Trade Zone Board. After submittal, the application process takes approximately 24 months. If approved, an additional $5,000 fee along with a $50,000 Operations Bond is required to "activate" the Subzone with U.S. Customs officials. With activation of the Subzone, a yearly $10,000 fee to the Port is required. The Port estimated the minimum annual operation costs (records and inventory reconciliation, monthly/annual reports, guard service, storage and handling) to the City as operator of a Subzone would be of $20,000. World Port staff commented that in the application it may be difficult for the City to explain why the operation cannot be accomodated within existing Zone Sites (i.e. ITTC). The proximity of ITTC to Bakersfield and the fact that it hasn't been utilized yet makes it difficult to justify the creation of another Subzone. cw/jw OCT - 7 1996 ; BAKERSFIELD Economic and Community Development Department MEMORANDUM October 4, 1996 TO: Alan Tandy City Manager FROM: Jake Wager Economic Development SUBJECT: Union Ave. #10 Water Main and Fire Upgrade Project - Status Update As you are aware, approximately $513,000 CDBG funds from FY 95-96 and FY 96-97 have · been set aside for design and construction of the referenced project. The purpose of the project is to improve fu'e protection capabilities in the Union Avenue #10 area by increasing fire flow to at least 1000 gallons per minute at 20 pounds per square inch residual pressure. The project will replace undersized pipes with new and larger water lines and install new fire hydrants (please see the attached Schedule "A" for a complete description and cost estimate). We expect Cai-Water Service (CWS) to contribute about $60,000 of their funds towards this project. The combined assistance of $573,000 is expected to complete the majority of the water main upgrades needed to meet the minimum 1000 gallons/minute fire flow standard. The City will be the lead agency for the construction of all new lines and fire hydrants. CWS will provide design, inspection and construction management assistance. Upon completion of the new improvements, CWS will take over the water system and complete the remainder of the work (installation of fire hydrants off existing mains, service reconnections, and abandonment of existing mains) and tie it into their system. For the past four months, staff from this office, Fire Department, Water Resources Department, and the City Attorney's Office have been in negotiation with CWS regarding the agreement for this project. We believe we have a final contract that incorporates the concerns from all parties. On September 27 a final project agreement was provided to CWS for review and approval. If we receive executed copies by October 9 we will place the contract before the City Council on October 23 for their review and execution. If the October 9 deadline is not met by CWS we will delay this action until November. Please let me know if you have any questions regarding this activity. PROJECT TrFLE Union Avenue #10 IVater Main and Fire Hydrant Upgrade Project PURPOSE To provide improved fire protection services to residents and properties of the Union Avenue #10 area by constructing improved water.lines and related appurtenances and installing additional fire hydrants. DESCRIPTION The CITY will be the lead agency for the construction of new water lines and fire hydrants, and related appurtenances as more fully defined on page 2 ofthls Agreement under 'Activity' for the Union Avenue #10 neighborhood. The Project will Provide the Union Avenue #10 area with improved fire hydrant flow to meet m|n|m~m CITY fire protection standards (1000 gallons/minute ~ 20 pounds/square inch residual pressure). The area is generally bounded on the north by East California Avenue; on the east by King Street; on the south by Potomac Avenue; and Union Avenue on the west (see attached Exhibit "C" for a site map). The UTILITY will pwvide for comtruction plans/specifications, construction management/administration and inspection. The UTILITY will also contribute financially towards the construction of the project Except for the fire hydrants, UTILITY will take ownership and respons~ility for the water system improvements upon completion of the project (the CITY will own and maintain the fire hydrants). The CITY will contn'bute financial assistance for design, construction, and inspection of approximately 7130 linear feet of 8-and &inch waterline with related appurtenances, and installation and upgrades of approximately twenty (20) fire hydrants. The Water Resources Department of the CITY will provide HUD monitoring and respons~le agency coordination for the Activity. The Fire Department of the CITY will approve and stake fire hydrant locations. The Economic and Community Development Department of the CITY will provide project oversight and technical assistance, as needed. ' Estimated project cost is $573,000.00 (FIVE HUNDRED SEVENTY THREE THOUSAND DOLLARS). C1TWs share is approximately 88% - $513,000.00 (FIVE HUNDRED THIRTEEN THOUSAND DOLLARS); WrILITWs share is approximately 12% - $60,000.00 (SIXTY THOUSAND DOLLARS). file lunion#1Oagr. ~.alremg. vt COST ESTIMATE Description Cost* Paid by CITY/UTILITY 6785 + 1.f. of 8 "PVC-900 $326,000 CITY 1345 + 1.f. of 6" PVC-900 $30,000 CITY 10 + Fire Hydrant Connections off existing 6" main** $38,664**** UTILITY 4 + Fire Hydrant Connections off proposed 6" main** $17,000 CITY 6 + Fire Hydrant Upgrades off proposed 6" main** $25,000 CITY Reconnect 55 + services $18,788'*** UTILITY Abandon existing mains*** $2,548**** UTILITY Construction-Subtotal ".i.ii!i~~?i??ii!iiiiiiliiiill ////////////////////////////////// Design, engineering, plans, inspection, & admin***** $ 47,000 CITY Construction & Design/Inspection-Subtotal ,~i:i:i:i~!~:!iiii:!:iii:ii!iii!ii!ii!iiiiii ////////////////////////////////// Contingency $68000 CITY ~ Includes labor and materials (except for fire hydrants). ** All necessary fire hydrants are to be contributed to the Project by the Fire Department. *** 90' - 6" AC, 1990' - 4" CI, 230' -4" STL, 785' - 2" CI, 260" of 1-1/2" CI **** The UTILITY will be the lead for these improvements. They intend to use a specific contractor for implementing these construction improvements. Since HUD regulations require a competitive procurement in accordance with federal guidelines before monies can be expended for construction, Grant funds will not be used to pay for these costs. *****The UTILITY intends to use existing employees to perform these tasks. NATIONAL OBJECTIVE QUALIFICATION (NOQ) The NOQ for this Project is based on area of benefit which includes CT 21; CT 22, BG 3, 4,; CT 25, BG 5; and CT 26, BG 1 (low/moderate income population is about 71%). file\union#1Oagr.\calrevag.vz B A K E R S F_. I __E L _D PUBLIC WORKS DEP~TMENT MEMORAN~~JM TO: ALAN TANDY, City Manager FROM: RAUL ROJAS, Public Works D~recto~ ~//~ DATE: October 11, 1996 SUBJECT: Open Street Permit for Fiber-Optic Installation ************************************************************************************ The permit for the installation of the fiber-optic cable that had been taking place in Truxtun Avenue was suspended Wednesday afternoon, October 9th. Staff met with the contractor/permit holder performing the work Thursday morning, stated the problems the we were encountering with them, and specified the actions and conditions required for reinstatement of their permit. In an effort to complete the Truxtun Avenue work in the downtown area prior to the Business Conference, the contractor will be allowed to work on Saturday and Sunday, October 12th and 13th. All other work shall be limited as follows: 1. No more than 1000 feet of a lane shall be closed at any one time. 2. Work hours shall be limited to between 8:30 AM and 4:30 PM. 3. No work will be allowed to occur beginning Thursday, October 17th through Sunday, October 20th. 4. The newly resurfaced eastbound lane on Truxtun Avenue east of Mohawk Street shall be completely repaved prior to release of the permit. 5. The permittee will be closely scrutinized until the project is complete. Any violations will lead to prompt termination of the permit.