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Home My WebLink About2013/05/07 Item 15CITY COUNCIL ~.- ~, AGENDA STATEMENT ~~~ CITY OF _~ CHULAVISTA 5/07113, Item ~~J ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AGREMENT BETWEEN THE CITY OF CHULA VISTA AND WILDLANDS, INC., A DELAWARE CORPORATION, TO PURCHASE THE REQUIRED OFF-SITE MITIGATION CREDITS FOR THE WILLOW STREET BRIDGE REPLACEMENT PROJECT AND AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE THE AGREEMENT SUBMITTED BY: DIRECTOR OF PUBLIC WORK~~~J ASSISTANT DIRECTOR OF EN EERING (,(~jV~P.ft/ REVIEWED BY: CITY MANAGER _ S ASSISTANT CITY MANAGER 11~j(~}1/ 4/STHS VOTE: YES ^ NO SUMMARY The proposed project consists of replacing the existing 2-lane Willow Street Bridge with a new 4-lane bridge. The existing bridge, constructed in 1940, traverses the Sweetwater River and has a length and width of approximately 610 and 31 feet, respectively. The approximate limits of the proposed project inchide the Willow Street Bridge and the roadway between Bonita Road and Valley Vista Road. The existing right-of=way is approximately 100-feet wide, with the bridge in the approximate center. The project requires inter-agency coordination among the City of Chula Vista, the County of San Diego, acid the California Department of Transportation (Federal Oversight). The project will unavoidably and adversely impact waters of the United States and other habitats which must be compensated thru off-site mitigation. The City will satisfy said mitigation requirement by purchasing 0.79 acres and 1.0 acre of Anny Corps of Engineers (Corps) jurisdictional wetland creation and enhancement habitat credits, respectively, from the Rancho Jamul Mitigation Bank (RJMB). The RJMB is located in San Diego County, California and was developed by Wildlands, Inc. a Delaware Corporation. Wildlands Inc. required that payment for the mitigation credits is due by May 21, 2013, the credits would be made available to other potential buyers. The total cost Yo purchase said credits from the RJMB is $426,00 which has been reviewed v1d approved by City staff. Staff recommends approval of payment as outlined in the agreement to purchase the subject credits from Wildlands, Inc., a Delaware Corporation. The purchase of mitigation credits will satisfy off-site environmental mitigation requirements for the Willow Street Bridge Replacement project. 15-1 5/07/13, Item Page 2 of 3 ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed activity for compliance with the California Enviroiunental Quality Act (CEQA) and has determined that the proposed purchase agreement for the sale of mitigation credits was adequately covered as required biological impact mitigation in previously adopted Mitigated Negative Declaration, IS-10-006 for the Chula Vista Willow Street Bridge Replacement Project on November 14, 2011. Thus, no further CEQA review or documentation is required. RECOMMENDATION Council approve the resolution. BOARDS/COMMISSION RECOMMENDATION Not applicable DISCUSSION Environmental permits from the Corps, the Regional Water Quality Control Board (RWQCB), and the California Department of Fish and Wildlife (CDFW) are required for the proposed Willow Street Bridge Replacement project. The City desires to purchase the required off-site mitigation credits to satisfy environmental permits approval and prior to project construction to ensure availability of credits from the RJMB. The RJMB is sold out of credits and will not have any available for the proposed project at the anticipated time of project construction. RJMB required that payment for the mitigation credits is due by May 21, 2013. The RJMB was developed by Wildlands, Inc., a Delaware Corporation, under Nationwide Permit #27 Identification #982015400, issued by the Corps and pursuant to a Wetland Mitigation Bank Project Agreement dated November 29, 2000, under the approval of the Corps, CDFW, Environmental Protection Agency (EPA), and the U.S. Fish and Wildlife Service (FWS) to operate as a Mitigation Baiilc with compensatory credits available for sale. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has not found property holding for all Council members within 500 feet of the bridge, which is the subject of 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. CURRENT YEAR FISCAL IMPACT Provided below is a summary of the costs associated with the agreement: FUNDS REQUIRED FOR OFF-SITE MITIGATION CREDITS A. Cost of Off-Site Mitigation Credits from RJMB $ 426,500 TOTAL FUNDS REQUIRED FOR OFF-SITE MITIGATION CREDITS $426,500 15-2 5/07/13, Item CJ~ Page 3 of 3 FUNDS AVAILABLE FOR OFF-SITE MITIGATION CREDITS A. Highway Bridge Replacement (HBP) Funds (80%) B. Transportation Development Impact Fee (20%) $ 341,200 $85,300 TOTAL FUNDS AVAILABLE FOR OFF-SITE MITIGATION CREDITS $426,500 All funds required for these off-site mitigation credits are available in CIP No. STL261 and have been provided under a grant from the Highway Bridge Program (HBP) and under the City's Transportation Development Impact Fee (TDIF) program; the HBP will reimburse 80% of the off-site mitigation costs and the remaining 20% will be funded by TDIF funds. There is no direct impact on the General Fund. ONGOING FISCAL IMPACT The City will not be liable for any continued expense or maintenance in perpetuity for the credits purchased from the RJMB. ATTACHMENTS 1. Agreement between the City of Chula Vista and Wildlands, Inc, a Delaware Corporation, dated February 21, 2013. Prepared by: Jose Luls Gomez, Land Surveyor-Deparhnent ofPub(ie Works J: IEngineerlAGENDAICAS201 3 105-0 7-1 3 1ST261 -A113 Wi(dlandslncFINAL.doc 15-3 RANCHO JAMUL MITIGATION BANK AGREEMENT FOR SALE OF MITIGATION CREDITS This Agreement is made and entered into this 2fst day of ~.P~YUir,Y~ 2013 by and between WILDLANDS, INC., a Delaware corporation (Bank) and the CITY OF CHULA VISTA (Project Proponent) as follows: RECITALS A. The Bank has developed the Rancho Jamul Mitigation Bank located in San Diego County California; and B. The Bank has developed the Mitigation Bank under Nationwide Permit #27 Identification #982015900, issued by the United States Army Corps of Engineers (Corps) and pursuant to a Wetland Mitigation Bank Project Agreement dated November 29, 2000, and has received the approval of the Corps, California Department of Fish and Wildlife (CDFW), Environmental Protection Agency (EPA), and the U.S. Fish and Wildlife Service (FWS) to operate as a Mitigation Bank with compensatory credits available for sale; and C. Project Proponent is seeking to implement the project described on Exhibit "A" attached hereto (Project), which would unavoidably and adversely impact waters of the United States or other habitats thereon, and seeks to compensate for the loss of wetland areas or other habitats by purchasing compensatory credits from Bank; and D. Project Proponent has applied or will apply for a federal Clean Water Act Section 909 Individual Permit from the Corps, a Section 401 Water Quality Certification from the Regional Water Quality Control Board (RWQCB), and a Fish and Game Code Section 1602 Streambed Alteration Agreement from CDFW. Project Proponent desires to purchase 0.79 acres of Corps-jurisdictional wetland creation habitat credits and 1.0 acre of Corps-jurisdictional wetland enhancement habitat credits prior to authorization and in advance of construction to ensure the availability of mitigation for unavoidable impacts to waters of tk~e United States or other habitats associated with the Project; and E. Project Proponent desires to purchase from Bank and Bank desires to sell to Project Proponent 0.79 acres of Corps- 1 15-4 jurisdictional wetland creation habitat credits and 1.0 acre of Corps-jurisdictional wetland enhancement habitat credits. NOW, THEREFORE, for and in consideration of the foregoing Recitals and the mutual agreements contained herein, the sufficiency of which is hereby acknowledged and confirmed, the parties hereto, intending to be legally bound thereby, agree as follows: 1. Bank hereby sells to Project Proponent and Project Proponent hereby purchases from Bank: 0.79 acres of Corps-jurisdictional wetland creation habitat credits and 1.0 acre of Corps-jurisdictional wetland enhancement habitat credits for the purchase price of Four hundred twenty six thousand five hundred dollars ($926,500.00). Upon receipt of the purchase price, Bank will deliver to Project Proponent an executed Bill of Sale in the form attached hereto and marked Exhibit "B." The purchase price for said credits shall be paid by wire transfer of funds or by check payable to "Wildlands, Inc." 2. The sale and transfer herein is not intended as a sale or transfer to Project Proponent of a security, license, lease, easement, or possessory or non-possessory interest in real property, nor the granting of any interest of the foregoing. 3. Project Proponent shall have no obligation whatsoever by reason of the purchase of the compensatory credits, to support, pay for, monitor, report on, sustain, continue in perpetuity, or otherwise be obligated or liable for the success or continued expense or maintenance in perpetuity of the credits sold, or the Bank. As required by law, Bank shall monitor and make reports to the appropriate agency or agencies on the status of any compensatory credits sold to Project Proponent. Bank shall be fully and completely responsible for satisfying any and all conditions placed on the Bank or the compensatory credits, by all state or federal jurisdictional agencies. Bank hereby shall indemnify Project Proponent of and from all such liabilities and obligations. 4. The compensatory credits sold and transferred to Project Proponent shall be nontransferable and non-assignable, and shall not be used as compensatory mitigation for any other Project or purpose, except as set forth herein. 5. Project Proponent must deliver the purchase price to Bank within 90 days of the date of this Agreement. After the 90-day period this Agreement will be considered null and void and Bank shall have no further obligations hereunder. _~ 15-5 IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first above written. BANK WILDLANDS, INC., a Delaware corporation By: i Name : ~'ll~ g~ I t s : ngar(c Heintz, ft9anager PROJECT PROPONENT CITY OF CHUL VISTA ~~ , Name: ,~ y~ ~ti;~ Its: ~l(LGG'Ce'~' PF ~J/,3~tG r L C /GS~~ 3 15-6 Exhibit "A" DESCRIPTION OF PROJECT TO BE MITIGATED The Project Proponent proposes to replace the existing two- lane Willow Street Bridge (Bridge No. 5~C-0011) with a four-lane bridge. The proposed project would consist of the construction of a new four-lane bridge with shoulders and ADA-compliant sidewalks and extension of Class II Bike Lanes. The proposed project is located within the City of Chula Vista adjacent to the City's western boundary with the County of San Diego. The existing bridge, built in 1990, connects Bonita Road and Sweetwater Road east of Interstate 805 and traverses the Lower Sweetwater River in Chula Vista, California. ~~~t* 4 15-7 Exhibit "B" BILL OF SALE Contract #RJMB-13- In consideration of Four hundred twenty six thousand five hundred dollars ($926,500.00), receipt of which is hereby acknowledged, WILDLANDS, INC., a Delaware corporation, does hereby bargain, sell and transfer to the CITY OF CHULA VISTA 0.79 acres of Corps-jurisdictional wetland creation habitat credits and 1.0 acre of Corps-jurisdictional wetland enhancement habitat credits for the Willow Street Bridge Replacement Project in the Rancho Jamul Mitigation Bank in San Diego County California, developed and approved under the authority of the United States Army Corps of Engineers, California Department of Fish and wildlife, U.S. Fish and Wildlife Service, and the Environmental Protection Agency. Wildlands, Inc. represents and warrants that it has good title to the credits, has good right to sell the same, and that they are free and clear of all claims, liens, or encumbrances. Wildlands, Inc. covenants and agrees with the buyer to warrant and defend the sale of the credits hereinbefore described against all and every person and persons whomsoever lawfully claiming or to claim the same. DATED: WILDLANDS, INC., a Delaware corporation By: Name: Its: S 1 C _ ~ m:mad:e;ino\sazeemsncs\_ai=_3T:-;5CHUL-, v_5T _uillo,.doc J t^vis=tl: 03/?L?013 RESOLUTION NO.2013- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND WILDLANDS, INC., A DELAWARE CORPORATION, TO PURCHASE THE REQUIRED OFF-SITE MITIGATION CREDITS FOR THE WILLOW STREET BRIDGE REPLACEMENT PROJECT AND AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE THE AGREEMENT WHEREAS, Environmental permits from the Corps, the Regional Water Quality Control Board (RWQCB), and the California Department of Fish and Wildlife (CDFW), collectively "the Wildlife Agencies", are required for the proposed Willow Street Bridge Replacement project; and WHEREAS, the Wildlife Agencies have determined that the Willow Street Bridge Replacement project will unavoidably and adversely impact waters of the United States and other habitats, which impacts must be compensated thru off-site mitigation; and WHEREAS, provision of off-site mitigation may be accomplished by the purchase of the appropriate mitigation credits from an approved mitigation bank; and WHEREAS, the Rancho Jamul Mitigation Band has obtained Nationwide Permit #27, Identification #982015400, from the United States Army Corp of Engineers and has obtained approval from the Wildlife Agencies to operate as a mitigation bank with compensatory mitigation credits available for sale; and WHEREAS, staff recommends that the City purchase compensatory mitigation credits from Rancho Jamul Mitigation Bank to satisfy the off-site mitigation for the Willow Street Bridge Replacement project; and WHEREAS, in order to purchase the mitigation credits and satisfy off-site environmental mitigation requirements for the Willow Street Bridge Replacement project, the City must cxecute the attached agreement with Wildlands, Inc., a Delaware Corporation; and WHEREAS, the cost of the mitigation credits is $426,500. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby approve an agreement between the City of Chula Vista and Wildlands, Inc., a 15-9 Resolution Page 2 Delaware Corporation for the purchase of off-site mitigation for the Willow Street Bridge Replacement Project and authorize the City Manage Presented by: Richard A. Hopkins Director of Public Works 15-10