HomeMy WebLinkAboutAgenda Statement 1985/11/12 Item 16a-e COUNCIL AGENDA STATEMENT / ,
Item 16a, b, c, d, e
Meeting Date 11/12/85
ITEM TITLE: a. Resolution /.2.7-415- Certifying EIR-85-3
b. Resolution /..a 1(C Making Findings on Petition: Formal action
of City Council accepting petition for proceedings for a
special assessment district and making preliminary statutory
findings
c. Resolution /a.�//7Maki ng Appointments and Approving
Agreements in a Special Assessment District: Makes preliminary
appointments of Superintendent of Streets, etc. , and approves
consulting contracts with Bond Counsel , F. Mackenzie Brown,
Inc. ; Assessment Engineer, Willdan Associates; Financial
Consultant, Kadie-Jensen & Johnson; and Design Engineer, Lowry
& Associates
d. Resolution 19 2 ' Adopting Proposed Boundary Map: Formal
action approving boundaries of Assessment District No. 85-2.
e. Resolution f L 4,19 Referencing Prevailing Wage Scale and
Directing Call for Construction Bids: Formal action
authorizing bidding on the works of improvement to be awarded
December 17, 1985, with costs to be guaranteed and advanced by
Property Owner, EastLake Development Company
SUBMITTED BY: Director of Public Works/City Engineer %X///
REVIEWED BY: City Manage (4/5ths Vote: Yes No X )
On February 26, 1985, Council adopted the EastLake I SPA and approved a
Development Agreement and Public Facilities Financing Plan for the
development. The use of special assessment financing under the "Municipal
Improvement Act of 1913" and "Improvement Bond Act of 1915" (Division 12 and
Division 10 of the Streets and Highways Code, respectively) for the
construction of the water, sewer and street improvements in the EastLake Phase
I is consistent with the financing plan and implementation program.
RECOMMENDATION: Approve the Resolutions.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
i
/. ° .
by tho City Council of
Chula Vista, California
Dated l 1` /°4-7-_. --°
Page 2, Item 16a, b, c, d, e
Meeting Date 11/12/85
DISCUSSION:
Environmental Impact Report
The EIR for the project has been certified by the Planning Commission and the
Board of Directors of the Otay Water District. It is the conclusion of this
EIR that all impacts of this project (the physical change in the environment)
can be mitigated to a level of insignificance. Those mitigation measures are
outlined in Section III of the final EIR.
Assessment District Reimbursement Agreement
The EastLake Development Company, owners of the property to be included within
the proposed assessment district 85-2 have signed an agreement, to advance
funds to allow the City to pay for all initial consulting, administration,
engineering and construction expenses, relating to the formation of the
assessment district. The owners will be reimbursed or receive credit upon
their assessment for monies previously advanced.
The agreement lists the various expenses (or consultant services) eligible for
inclusion in the cost of the proceeding. It also provides a mechanism for the
payment of funds by the property owner and the administration of the contract
by the City. All City costs associated with these proceedings will be borne
by the property owner.
Petition
The property owners of record have submitted a petition to the City requesting
the initiation of special assessment district proceedings for the construction
and installation of certain authorized public improvements, including a water
reservoir, water pump station, transmission and on-site water facilities,
reclaimed water improvements, sewer lines, street improvements, together with
appurtenances, all as said improvements serve and benefit properties within
EastLake I (Assessment District No. 85-2). The petition, as submitted, has
been signed by the property owners representing 100% of the area and lands
proposed to be assessed, and has also been signed by the lenders of record as
shown on a preliminary title report as submitted and dated October 16, 1985.
Consultants
The property owners in the Petition have requested the following consultants
be employed to carry out the Assessment District proceedings, and their
appointment is recommended because of their familiarity with the project and
the time restraints:
A. Assessment Engineer: Willdan Associates
B. Design Engineer: Lowry & Associates and Rick Engineering
C. Financial Consultant: Kadie-Jensen & Johnson
D. Bond Counsel : F. Mackenzie Brown, Inc.
Page 3, Item 16a, b, c, d, e
Meeting Date 11/12/85
The property owner has agreed to advance and/or guarantee the funds for
payment to the consultants and will be reimbursed from bond proceeds. A
contract with Rick Engineering for consultant work is now being drafted and
will be submitted for Council approval in the near future.
The total estimated cost of the improvements to be constructed by the
Assessment District is approximately $7,000,000.00. The incidental expenses
for engineering design, bond sales, bond reserve, City and Otay Water
inspection and administration, etc. , will add approximately 30-40% to the
construction costs.
Otay Municipal Water District
The Otay Municipal Water District is approving the plans and specifications
for the water improvements, and will be performing the inspection on the
construction of said improvements. The Water District will be paid for all
their services from advances from the property owner and from bond proceeds.
Prior to the award of any contract for water improvements, a contract will be
submitted, setting forth terms and conditions as it relates to the ownership,
management and maintenance of said facilities, said contract to be executed
between the City and the Water District.
Assessment District
In order to coordinate the Assessment District proceedings with the EastLake
Development Company schedule, including the substantial grading necessary for
the project and the time requirements to construct the reservoir (8 months) ,
it is necessary to phase the award of the various construction contracts. The
reservoir contract will be awarded in advance of the Assessment District
public hearing, and it is also proposed that the water pump station contract
will also be noticed and awarded prior to the public hearing and sale of bonds
for these proceedings. The public hearing is proposed to take place
approximate April , 1986. Funds for any contracts awarded prior to this time
will be provided to the City by EastLake Development Company, which would then
be reimbursed for any advances from the proceeds of the sale of bonds. The
construction contracts for the remaining public improvement work would be
awarded subsequent to any public hearing, and thus would be funded through the
sale of bonds.
Summary of Council Actions
Through the adoption of the above resolutions, the City Council will have:
1. Accepted the petition which authorizes staff to proceed with formation of
a special assessment district.
2. Approved the appointments of persons to perform duties, and approval of
consulting and reimbursement agreements.
3. Approved the boundaries of Assessment District No. 85-2.
Page 4, Item 16a, b, c, d, e
Meeting Date 11/12/85
4. Authorized the bidding for first phase of work of improvement (water
reservoir).
5. Approved the agreement committing the property owner to fund the cost of
the proceedings.
FISCAL IMPACT: The EastLake Development Company will be advancing all funds
necessary for the initial costs and expenses of the consultants and
construction bidding; thus, there is no fiscal impact on the City.
WPC 1720E
COUNCIL AGENDA STATEMENT
r
Item 16arb, c, d, e
Meeting Date 11/12/85
ITEM TITLE: a. Resolution 4A ---- Certifying EIR-85-3
b. Resolution /.A ill/ Making Findings on Petition: Formal action
of City Council accepting petition for proceedings for a
special assessment district and making preliminary statutory
findings
c. Resolution , lMaking Appointments and Approving
Agreements in a Special Assessment District: Makes preliminary
appointments of Superintendent of Streets, etc. , and approves
consulting contracts with Bond Counsel , F. Mackenzie Brown,.
Inc. ; Assessment Engineer, Willdan Associates; Financial
Consultant, Kadie-Jensen & Johnson; and Design Engineer, Lowry
& Associates �,l
d. Resolution , ° Adopting Proposed Boundary Map: Formal
action approving boundaries of Assessment District No. 85-2.
e. Resolution /-- /Referencing Prevailing Wage Scale and
Directing Call for Construction Bids: Formal action
authorizing bidding on the works of improvement to be awarded
December 17, 1985, with costs to be guaranteed and advanced by
Property Owner, EastLake Development Company
SUBMITTED BY: Director of Public Works/City Engineer %/i�
REVIEWED BY: City Manage " (4/5ths Vote: Yes No X )
On February 26, 1985, Council adopted the EastLake I SPA and approved a
Development Agreement and Public Facilities Financing Plan for the
development. The use of special assessment financing under the "Municipal
Improvement Act of 1913" and "Improvement Bond Act of 1915" (Division 12 and
Division 10 of the Streets and Highways Code, respectively) for the
construction of the water, sewer and street improvements in the EastLake Phase
I is consistent with the financing plan and implementation program.
RECOMMENDATION: Approve the Resolutions.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
, bc:/jutiit.j2,(n ,
Dated .�i___--_------
Page 2, Item 16a, b, c, d, e
Meeting Date 11/12/85
DISCUSSION:
Environmental Impact Report
The EIR for the project has been certified by the Planning Commission and the
Board of Directors of the Otay Water District. It is the conclusion of this
EIR that all impacts of this project (the physical change in the environment)
can be mitigated to a level of insignificance. Those mitigation measures are
outlined in Section III of the final EIR.
Assessment District Reimbursement Agreement
The EastLake Development Company, owners of the property to be included within
the proposed assessment district 85-2 have signed an agreement, to advance
funds to allow the City to pay for all initial consulting, administration,
engineering and construction expenses, relating to the formation of the
assessment district. The owners will be reimbursed or receive credit upon
their assessment for monies previously advanced.
The agreement lists the various expenses (or consultant services) eligible for
inclusion in the cost of the proceeding. It also provides a mechanism for the
payment of funds by the property owner and the administration of the contract
by the City. All City costs associated with these proceedings will be borne
by the property owner.
Petition
The property owners of record have submitted a petition to the City requesting
the initiation of special assessment district proceedings for the construction
and installation of certain authorized public improvements, including a water
reservoir, water pump station, transmission and on-site water facilities,
reclaimed water improvements, sewer lines, street improvements, together with
appurtenances, all as said improvements serve and benefit properties within
EastLake I (Assessment District No. 85-2). The petition, as submitted, has
been signed by the property owners representing 100% of the area and lands
proposed to be assessed, and has also been signed by the lenders of record as
shown on a preliminary title report as submitted and dated October 16, 1985.
Consultants
The property owners in the Petition have requested the following consultants
be employed to carry out the Assessment District proceedings, and their
' appointment is recommended because of their familiarity with the project and
the time restraints:
A. Assessment Engineer: Willdan Associates
B. Design Engineer: Lowry & Associates and Rick Engineering
C. Financial Consultant: Kadie-Jensen & Johnson
D. Bond Counsel : F. Mackenzie Brown, Inc.
9 1
)
Page 3, Item 16a, b, c, d, e
Meeting Date 11/12/85
The property owner has agreed to advance and/or guarantee the funds for
payment to the consultants and will be reimbursed from bond proceeds. A
contract with Rick Engineering for consultant work is now being drafted and
will be submitted for Council approval in the near future.
The total estimated cost of the improvements to be constructed by the
Assessment District is approximately $7,000,000.00. The incidental expenses
for engineering design, bond sales, bond reserve, City and Otay Water
inspection and administration, etc. , will add approximately 30-40% to the
construction costs.
Otay Municipal Water District
The Otay Municipal Water District is approving the plans and specifications
for the water improvements, and will be performing the inspection on the
construction of said improvements. The Water District will be paid for all
their services from advances from the property owner and from bond proceeds.
Prior to the award of any contract for water improvements, a contract will be
submitted, setting forth terms and conditions as it relates to the ownership,
management and maintenance of said facilities, said contract to be executed
between the City and the Water District.
Assessment District
In order to coordinate the Assessment District proceedings with the EastLake
Development Company schedule, including the substantial grading necessary for
the project and the time requirements to construct the reservoir (8 months) ,
it is necessary to phase the award of the various construction contracts. The
reservoir contract will be awarded in advance of the Assessment District
public hearing, and it is also proposed that the water pump station contract
will also be noticed and awarded prior to the public hearing and sale of bonds
for these proceedings. The public hearing is proposed to take place
approximate April , 1986. Funds for any contracts awarded prior to this time
will be provided to the City by EastLake Development Company, which would then
be reimbursed for any advances from the proceeds of the sale of bonds. The
construction contracts for the remaining public improvement work would be
awarded subsequent to any public hearing, and thus would be funded through the
sale of bonds.
Summary of Council Actions
Through the adoption of the above resolutions, the City Council will have:
1. Accepted the petition which authorizes staff to proceed with formation of
a special assessment district.
2. Approved the appointments of persons to perform duties, and approval of
consulting and reimbursement agreements.
3. Approved the boundaries of Assessment District No. 85-2.
Page 4, Item 16a, b, c, d, e
Meeting Date 11/12/85
4. Authorized the bidding for first phase of work of improvement (water
reservoir).
5. Approved the agreement committing the property owner to fund the cost of
the proceedings.
FISCAL IMPACT: The EastLake Development Company will be advancing all funds
necessary for the initial costs and expenses of the consultants and
construction bidding; thus, there is no fiscal impact on the City.
WPC 1720E
TO: CITY OF CHULA VISTA
PETITION AND WAIVER FOR
SPECIAL ASSESSMENT PROCEEDINGS
1. I/We, the undersigned, are the property owners of land shown on the map attached
as Exhibit "A" and made a part of this document.
2. I/We petition you to undertake special assessment proceedings for the following
described public improvements:
The construction and installation of certain public improvements, including water
reservoir, pump station, transmission and on-site water facilities, reclaimed
water improvements, together with street, sanitary sewer and appurtenant improve-
ments, all to serve and benefit properties in Eastlake, Phase 1, being ASSESSMENT
DISTRICT NO. 85-2.
3. I/We understand:
A. THAT the cost of the improvements will be charged to the land which benefits
from the improvements, including our land;
B. THAT a report will be prepared on the project, including plans and specifi-
cations, a detailed cost estimate, and a division of the costs among the
benefited parcels of land, and that you will conduct a public hearing on the
report;
C. THAT the cost of engineering, legal and other incidental expenses will be
included in the project cost;
D. THAT each property owner may pay his assessment either in cash without
interest or in installments with interest over a period of years.
4. I/We consent to other appurtenant work and acquisition that is, in the opinion of
the legislative body, necessary to properly effectuate said improvements, and we
hereby expressly waive the proceedings required and all limitations under the
"Special Assessment Investigation, Limitation and Majority Protest Act of 1931",
being Division 4 of the Streets and Highways Code of the State of California.
5. I/We hereby further request that all efforts and attempts be made so that said
proceedings and the Resolution of Intention can be adopted at the earliest time.
6. I/We agree to dedicate all required rights-of-way or easements necessary for the
works of improvement, all dedications to be accomplished before the ordering of
the improvements.
7. I/We further request the formation of a maintenance district pursuant to the pro-
visions of the "Landscaping and Lighting Act of 1972, being Division 15, Part 2
of the Streets and Highways Code of the State of California, for,certain supple-
mental lighting and landscaping maintenance work within the boundaries of the
Assessment District.
8. I/We hereby further request the following:
A. That WILLDAN ASSOCIATES be appointed as ASSESSMENT ENGINEER and ENGINEER OF
WORK;
B. That LOWRY & ASSOCIATES and RICK ENGINEERING be appointed as DESIGN
ENGINEER;
C. That KADIE-JENSEN & JOHNSON be appointed as FINANCIAL CONSULTANT;
D. That F. MACKENZIE BROWN, INC. be appointed as BOND COUNSEL.
r
It is hereby further stated that the property within the boundaries of the Assess-
ment District at this time is subject to existing mortgages or deeds of trust.
THE UNDESIGNED hereby state, as mortgagees or beneficiaries under any existing
deeds of trust, that they acknowledge and join in signature in the Petition for
the above-referenced Assessment District. For further particulars as to any
mortgagees or beneficiaries under any deeds of trust, reference is made to the
title report, a copy of which is attached hereto.
`r' ( —'
DATE OF SIGNING NAME OF LENDER SIGNATURE
/0- ai q- S3 SECURITY PACIFIC NATIONAL BANK,
a national banking association.�s\:��
i P ...-c.n.a,.,T
ATE OF CALIFORNIA
ss.
1UNTY OF SAN DIEGO
On this 30th day of October , in the year 19 85,
before me, the undersigned, a Notary Public in and for said State, personally appeared
T. R. Hale
s > OFFICIAL SEAL
r , personally known to me
ERINE WILLIAMS
ti ��,.;�°'� . : - :o : --- .- .• • : • . . • '.•. • to be the person who executed the
`M, f NOTD PUBLIC-CALIFORNIA
P
NCIPAL OFFICE IN within instrument on behalf of the Corporation therein named, and acknowledged to me that
Iv;"fig SAN DIEGO COUNTY ; the Corporation executed it.
My Commission Expires Aug.29, 1986 }{
WITNESS my hand and official seal. t: tL
Notary Public in and for said State.
<NOWLEDGMENT—Corporation—Wolcotts Form 222CA-X—Rev.5-82
982 WOLCOTTS,INC
OF OWNER AND STREET LEGAL DESCRIPTION OR
NG ADDRESS COUNTY TAX PARCEL NO. SIGNATURE
a9()9s"
EASTLAKE DEVELOPMENT COMPANY, Parcels By: DAVID IV, INC. ,
a California general partner- B and C a California corporation
ship. pursuant /
701 B Street to legal ,�/) ,/
Suite 730 description �--
San Diego, CA 92101 attached as B . -"'�' t'`
Eibit "B". David B. Kuhn, J . , President
By: DANIEL V, 11C. ,
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FILED IN THE OFFICE OF THE CITY CLERK THIS 15th DAY OF November
1985.
Said Petition represents 100 % of the assessable area, as shown on the
attached map.
CITY OF CHULA VISTA
STATE OF CALIFORNIA
LLUAL utSGR1YT1ON
ORDER NO. 876411-15
EXHIBIT "B"
The land referred to herein is situated in the State of California, • County of
San Diego, and is described as follows:
PARCEL A:
Those portions of Sections 27 28, 33 and 34 all being in Township 17 South,
Range 1 West, and that portion of Section 3, Township 18 South, Range 1 West,
all of San Bernardino Base and Meridian, in the County of San Diego, State of
California, according to United States Government Survey, together with that
portion of Rancho Janal, according to Map thereof recorded in Book 1, page 89 of
Patents, records of San Diego County, all being described as a whole as follows:
Beginning at the Northwest corner of the Southeast Quarter of said Section 34; i.
thence along the South line of the Northwest Quarter of said Section 34 North .
88°53 '15" West 2680.31 feet, to the Southeast Quarter of the fractional
Northeast Quarter of said Section 33; thence along the South line of said
fractional Northeast Quarter North 89°21 '14" West 2554.31 feet, to the Westerly
line thereof; thence along said Westerly line to and along the Westerly line of
said fractional Section 28, North 17°52'14" West 4207.73 feet, to the North line
of the South Half of the South Half of said fractional Section 28; thence along
said North line South 89°40'56" East 3326.91 feet; thence leaving said North
line North 53°17 '52" East 663.88 feet, to the West line of the Southwest Quarter
of said Section 27; thence along said West line North 1°49'21" West 920.54 feet
to the North line thereof; thence along said North line South 88°57 '38" East •
2729.84 feet, to the East line thereof; thence along said East line South
0°04 '42" East 874.80 feet; thence leaving said East line South 67°47 '42" East
416.80 feet; thence South 47°42 '18" East 446.13 feet; thence North 88°57'13"
West 715.40 feet, returning to said East line; thence along said East line South
0°04'42" East 1312.61 feet, to the Northwest corner of said Section 34; thence
along the North line thereof South 88°47 '50" East 2633.41 feet, to Corner No. 5
of said Rancho Janal; thence along the North line of said Rancho South 88°27'08"
East 820.00 feet; thence leaving said North line South 1°29 '02" West 1125.63
feet; thence South 11°19'49" West 1245.01 feet; thence North 82°32'52" East
1002.68 feet, to the beginning of a tangent 1500.00 foot radius curve concave
Southwesterly; thence Easterly and Southeasterly along the arc of said curve
through a central angle of 62°31 '26", a distance of 1636.87 feet; thence tangent
to said curve South 34°55'42" East 225.00 feet; thence South 55°04'18" West
150.00 feet, to the beginning of a tangent 500.00 foot radius curve concave
Easterly; thence Southwesterly, Southerly and Southeasterly along the arc of
said curve through a central angle of 89°51 '18", a distance of 784.13 feet;
thence tangent to said curve South 34°47'00" East 600.23 feet, to the beginning
of a tangent 500.00 foot radius curve concave Northwesterly; thence clockwise
along the arc of said curve through a central angle of 117°19 '52", a distance of
1023.91 feet; thence tangent to said curve South 82°32 '52" West 1643.01 feet;
thence South 64°34'17" West 2508.07 feet; thence South 43°27'08" East 288.00
feet; thence South 65°28 '59" West 900.00 feet; thence North 37°28 '57" West
1690.60 feet; thence North 0°36'22" East 297.85 feet, to the South line of said
Section 34; thence along said South line North 88°45 '17" West 10.00 feet, to the
LEGAL DESCRIPTION
ORDER NO . 876411-15
West line of the Southeast Quarter of said Section 34; thence along said West
line North 0°47 '55" East 2692.26 feet, to the Point of Beginning.
EXCEPTING THEREFROM that portion described as follows:
COMMENCING at Corner No. 5 of said Rancho Janal; thence South 35°30 '50" East,
3649.05 feet; thence South, 150.00 feet to the TRUE POINT OF BEGINNING; thence
North 45°00 '00" East, 141.42 feet; thence East, 211.24 feet; thence South
17°18'27" East, 204.25 feet; thence South 70.00 feet; thence South 57°59'40"
West, 188.68 feet; thence West 107.00 feet; thence North 45°00'00" West, 148.49
feet; thence North, 160.00 feet to the TRUE POINT OF BEGINNING.
Also excepting therefrom those portions of Sections 27, 28, 33 and 34 all being
in Township 17 South, Range 1 West, San Bernardino Meridian, in the City of 1,
Chula Vista, County of San Diego, State of California, according to the Official t.
Plat thereof, all being described as a whole as follows:
Beginning at the Northwest corner of the Southeast Quarter of said Section 34;
thence along the South line of the Northwest Quarter of said Section 34 North
88°53 '15" West 2680.31 feet, to the Southeast corner of the fractional Northeast
Quarter of said Section 33; thence along the South line of said fractional
Northeast Quarter North 89°21 '14" West 2554.30 feet, to the Westerly line
thereof; thence along said Westerly line to and along the Westerly line of said
fractional Section 28, North 17°52 '14" West 4207.74 feet, to the North line of
the South Half of the South Half of said fractional Section 28; thence along •
said North line South 89°40 '56" East 3326.91 feet; thence leaving said North
line North 53°17'52" East 663.88 feet, to the West line of the Southwest Quarter
of said Section 27; thence along said West line North 1°49 '21" West 160.00 feet
more or less to an angle point in the Boundary of Parcel Map No. 13883; thence
leaving said West line South 48°42 '07" East 1858.49 feet to the beginning of a
tangent 2917.00 foot radius curve concave Southwesterly; thence Southeasterly
along said curve through a central angle of 32°47 '53" a distance of 1669.79
feet; thence tangent to said curve South 15°54'14" East 975.04 feet to the
beginning of a tangent 3,917.00 foot radius curve concave Westerly; thence
Southerly along said curve through a central angle of 12°21'23" a distance of
844.74 feet; thence tangent to said curve South 03°32 '51" East 200.09 feet;
thence North 88°53'51" West 27.80 feet to the Point of Beginning.
Also excepting therefrom Parcel 1 of Parcel Map No. 13697, in the City of Chula
Vista, County of San Diego, State of California, filed in the Office of the
County Recorder of San Diego County, February 27, 1985 as File No. 85-064061 of
Official Records.
Excepting therefrom an undivided 1/2 interest in all oil asphaltum, petroleum,
natural gas, hydrocarbons and other natural mineral substances and products and
all other minerals, whether or not of the same character hereinabove generally
described, in or under such property at a vertical depth of 500 feet or more
below the present natural surface of said land, but without the right of entry
on the surface of said land.
• LEGAL DESCRIPTION
ORDER NO. 876411-15
Further excepting therefrom Parcels 1 and 2 of Parcel Map No. 13883, in the City
of Chula Vista, County of San Diego, State of California, filed in the Office of
the County Recorder of San Diego County, July 26, 1985 as File No. 85-266854 of
Official Records.
Excepting therefrom an undivided 1/2 interest in all oil, asphaltum, petroleum,
natural gas, hydrocarbons and other natural mineral substances and products and
all other minerals, whether or not of the same character hereinabove generally
described, in or under such property at a vertical depth of 500 feet or more
below the present natural surface of said land, but without the right of entry
on the surface of said land.
PARCEL B:
Those portions of Sections 27, 28, 33 and 34 all being in Township 17 South,
Range 1 West, San Bernardino Meridian, in the City of Chula Vista, County of San k ,
Diego, State of California, according to the Official Plat thereof, all being
described as a whole as follows:
Beginning at the Northwest corner of the Southeast Quarter of said Section 34;
thence along the South line of the Northwest Quarter of said Section 34 North
88°53'15" West 2680.31 feet, to the Southeast corner of the fractional Northeast
Quarter of said Section 33; thence along the South line of said fractional
Northeast Quarter North 89°21 '14" West 2554.30 feet, to the Westerly line
thereof; thence along said Westerly line to and along the Westerly line of said
fractional Section 28, North 17°52 '14" West 4207.74 feet, to the North line of
the South Half of the South Half of said fractional Section 28; thence along
said North line South 89°40'56" East 3326.91 feet; thence leaving said North
line North 53°17 '52" East 663.88 feet, to the West line of the Southwest Quarter
of said Section 27; thence along said West line North 1°49'21" West 160.00 feet
more or less to an angle point in the Boundary of Parcel Map No. 13883; thence
leaving said West line South 48°42 '07" East 1858.49 feet to the beginning of a
tangent 2917.00 foot radius curve concave Southwesterly; thence Southeasterly
along said curve through a central angle of 32°47'53" a distance of 1669.79
feet; thence tangent to said curve South 15°54 '14" East 975.04 feet to the
beginning of a tangent 3,917.00 foot radius curve concave Westerly; thence
Southerly along said curve through a central angle of 12°21 '23" a distance of
844.74 feet; thence tangent to said curve South 03°32'51" East 200.09 feet;
thence North 88°53 '51" West 27.80 feet to the Point of Beginning.
PARCEL C:
Parcel 1 of Parcel Map No. 13697, in the City of Chula Vista, County of San
Diego, State of California, filed in the Office of the County Recorder of San
Diego County, February 27, 1985 as File No. 85-064061 of Official Records.
LEGAL DESCRIPTION
ORDER NO . 876411-15
Excepting therefrom an undivided 1/2 interest in all oil asphaltum, petroleum,
natural gas, hydrocarbons and other natural mineral substances and products and
all other minerals, whether or not of the same character hereinabove generally
described, in or under such property at a vertical depth of 500 feet or more
below the present natural surface of said land, but without the right of entry
on the surface of said land.
PARCEL D:
Parcels 1 and 2 of Parcel Map No. 13883, in the City of Chula Vista, County of
San Diego, State of California, filed in the Office of the County Recorder of .
San Diego County, July 26, 1985 as File No. 85-266854 of Official Records.
Excepting therefrom an undivided 1/2 interest in all oil, asphaltum, petroleum,
natural gas, hydrocarbons and other natural mineral substances and products and
all other minerals, whether or not of the same character hereinabove generally
described, in or under such property at a vertical depth of 500 feet or more
below the present natural surface of said land, but without the right of entry
on the surface of said land.
ma/rrr
COUNCIL AGENDA STATEMENT
Item 16 a t b, c, d, e
Meeting Date 11/12/85
ITEM TITLE: a. Resolution /:1_ 54- Certifying EIR-85-3
b. Resolution 0,-IW6 Making Findings on Petition: Formal action
of City Council accepting petition for proceedings for a
special assessment district and making preliminary statutory
findings
c. Resolution / -- ` 7 Making Appointments and Approving
Agreements in a Special Assessment District: Makes preliminary
appointments of Superintendent of Streets, etc. , and approves
consulting contracts with Bond Counsel , F. Mackenzie Brown,
Inc. ; Assessment Engineer, Willdan Associates; Financial
Consultant, Kadie-Jensen & Johnson; and Design Engineer, Lowry
& Associates
d. Resolution /A ' (Adopting Proposed Boundary Map: Formal
action approving boundaries of Assessment District No. 85-2.
e. Resolution / ' '"YReferencing Prevailing Wage Scale and
Directing Call for Construction Bids: Formal action
authorizing bidding on the works of improvement to be awarded
December 17, 1985, with costs to be guaranteed and advanced by
Property Owner, EastLake Development Company
SUBMITTED BY: Director of Public Works/City Engineer //ii/
REVIEWED BY: City Manage (4/5ths Vote: Yes No X )
On February 26, 1985, Council adopted the EastLake I SPA and approved a
Development Agreement and Public Facilities Financing Plan for the
development. The use of special assessment financing under the "Municipal
Improvement Act of 1913" and "Improvement Bond Act of 1915" (Division 12 and
Division 10 of the Streets and Highways Code, respectively) for the
construction of the water, sewer and street improvements in the EastLake Phase
I is consistent with the financing plan and implementation program.
RECOMMENDATION: Approve the Resolutions.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
( 4,,L cry _.,
:
Chap Vv.:0, L.-_: ,,r is
Data! _____.. —_
Page 2, Item 16a, b, c, d, e
Meeting Date 11/12/85
DISCUSSION:
Environmental Impact Report
The EIR for the project has teen certified by the Planning Commission and the
Board of Directors of the Ot .y Water District. It is the conclusion of this
EIR that all impacts of this project (the physical change in the environment)
can be mitigated to a level .f insignificance. Those mitigation measures are
outlined in Section III of th == final EIR.
Assessment District Reimburse ient Agreement
The EastLake Development Company, owners of the property to be included within
the proposed assessment district 85-2 have signed an agreement, to advance
funds to allow the City to pay for all initial consulting, administration,
engineering and constructing, expenses, relating to the formation of the
assessment district. The darters will be reimbursed or receive credit upon
their assessment for monies p eviously advanced.
The agreement lists the varios expenses (or consultant services) eligible for
inclusion in the cost of the roceeding. It also provides a mechanism for the
payment of funds by the prope °ty owner and the administration of the contract
by the City. All City costs associated with these proceedings will be borne
by the property owner.
Petition
The property owners of record have submitted a petition to the City requesting
the initiation of special assessment district proceedings for the construction
and installation of certain Athorized public improvements, including a water
reservoir, water pump stati :n, transmission and on-site water facilities,
reclaimed water improvements, sewer lines, street improvements, together with
appurtenances, all as said improvements serve and benefit properties within
EastLake I (Assessment Distr ct No. 85-2). The petition, as submitted, has
been signed by the property owners representing 100% of the area and lands
proposed to be assessed, and as also been signed by the lenders of record as
shown on a preliminary title =port as submitted and dated October 16, 1985.
Consultants
The property owners in the P tition have requested the following consultants
be employed to carry out t =e Assessment District proceedings, and their
appointment is recommended bt ..luse of their familiarity with the project and
the time restraints:
A. Assessment Engineer: Willdan Associates
B. Design Engineer: Low y & Associates and Rick Engineering
C. Financial Consultant. Kadie-Jensen & Johnson
D. Bond Counsel : F. Ma( enzie Brown, Inc.
Page 3, Item 16a, b, c, d, e
Meeting Date 11/12/85
The property owner has agreed to advance and/or guarantee the funds for
payment to the consultants and will be reimbursed from bond proceeds. A
contract with Rick Engineering for consultant work is now being drafted and
will be submitted for Council approval in the near future.
The total estimated cost of the improvements to be constructed by the
Assessment District is approximately $7,000,000.00. The incidental expenses
for engineering design, bond sales, bond reserve, City and Otay Water
inspection and administration, etc. , will add approximately 30-40% to the
construction costs.
Otay Municipal Water District
The Otay Municipal Water District is approving the plans and specifications
for the water improvements, and will be performing the inspection on the
construction of said improvements. The Water District will be paid for all
their services from advances from the property owner and from bond proceeds.
Prior to the award of any contract for water improvements, a contract will be
submitted, setting forth terms and conditions as it relates to the ownership,
management and maintenance of said facilities, said contract to be executed
between the City and the Water District.
Assessment District
In order to coordinate the Assessment District proceedings with the EastLake
Development Company schedule, including the substantial grading necessary for
the project and the time requirements to construct the reservoir (8 months) ,
it is necessary to phase the award of the various construction contracts. The
reservoir contract will be awarded in advance of the Assessment District
public hearing, and it is also proposed that the water pump station contract
will also be noticed and awarded prior to the public hearing and sale of bonds
for these proceedings. The public hearing is proposed to take place
approximate April , 1986. Funds for any contracts awarded prior to this time
will be provided to the City by EastLake Development Company, which would then
be reimbursed for any advances from the proceeds of the sale of bonds. The
construction contracts for the remaining public improvement work would be
awarded subsequent to any public hearing, and thus would be funded through the
sale of bonds.
Summary of Council Actions
Through the adoption of the above resolutions, the City Council will have:
1. Accepted the petition which authorizes staff to proceed with formation of
a special assessment district.
2. Approved the appointments of persons to perform duties, and approval of
consulting and reimbursement agreements.
3. Approved the boundaries of Assessment District No. 85-2.
Page 4, Item 16a, b, c, d, e
Meeting Date 11/12/85
4. Authorized the bidding for first phase of work of improvement (water
reservoir).
5. Approved the agreement committing the property owner to fund the cost of
the proceedings.
FISCAL IMPACT: The EastLake Development Company will be advancing all funds
necessary for the initial costs and expenses of the consultants and
construction bidding; thus, there is no fiscal impact on the City.
WPC 1720E
1
legal leg cv 31028 15 5 t 11 17
85
CITY OF CHULA VISTA
STATE OF CALIFORNIA
NOTICE TO CONTRACTORS
SEALED PROPOSALS will be
received at the office of the City
Engineer, City of Chula Vista.
until 2:00 p.m. on Tuesday,
December 10, 1995,at which
time they will be publicly open-
9d and react for performing ,
work as follows: ) '
CONSTRUCTION OF 5 MG --• -0'
STEEL RESERVOIR AND AP-
PURTENANCES, IN THE
COUNTY OF SAN DIEGO.
The City Of Chula Vista
hereby notifies all bidders that It
will affirmatively ensure that in
eny contrite entered Into pur•
Suent to this Notice, minority
business enterprises will be eb
forded full opportunfly to submit
bids in response to the Invite:
tlon and will not be
dlscriminaled against on the
grounds of race,color.sex, or
national origin In consideration
for an award.
No bid shall be received
unleas It is made on e Proposal
Form furnished by the City
Engineer.Each bid must be nu-
companied by cash, certified
check,cashier's check,or bid-
der's bond, made peysble to
the City of Chula Vista for an
Smoent egttnl io nt feat ten per-
, cent (10} of the emcunt bid,
such Guaranty In be forfeited
should the bidder In whom the
contract Is awarded fail to enter
Into the contract. No blddei e
Guaranty Is required If the bid
amount is$25,000 or less.
In accordance with the provl
Slone of Section 1773 of the
Labor Code of the State of
California, the City of Chula
Vista has ascertained the
general prevailing wage scales
applIcable to the work to be
done. The prevailing wage
. scales are those determined by
the Director of Industrial Rela-
tions,State of Celfornle and are
available In the Office of the City
Engineer. The Contractor who
Is awarded the contract and
who intends to use a craft or
•
elessilication not shown on the
general prevailing wage deter-
minations, may be required to
pay the ways rate of that craft
or classification most closely
related to II as ahown In the
general determinations etlec-
live at the time of the call for
bids.
No bid will be accepted from
a contractor who has not been
licensed In accordance with the
provisions of Chapter 9, DM-
, sion 3 of the Business find Pro:
fesslona Code,
• Plans, ,forms of probdent5,
bonds, contract. special prpvl.
*tons, and specifications may
be examined at the office of the
City Engineer. Public Services
Building� 276 Fourth Avenue,
Chula View Copies
of plans and specifications may
be obtained at the office upon
payment Of a1$.00. Remit
919.00 if you wish to have the
plan and specifications mailed
to you.If payment Is to be made
by check, It should be made
payable to the "City of Chula
Vials."
NO REFUND WILL BE MADE.
DATED: 11/8/85
John P.Lippltt
DINEC1 OR OF
PUBLIC WORKS
CITY ENGINEER
CITY OF CHULA VISTA
• ENGINEERING DIVISION
CV 31029 11/17/98
CERTIFICATE OF FINANCIAL CONSULTANT
CITY OF CHULA VISTA
ASSESSMENT DISTRICT NO. 85-2
STATE OF CALIFORNIA
CITY OF SAN DIEGO
STATE OF CALIFORNIA
I, CARL KADIE, hereby CERTIFY under PENALTY OF PERJURY:
1. That I am the authorized representative of KADIE-JENSEN & JOHNSON, the duly
appointed FINANCIAL CONSULTANT.
2. That the City of Chula Vista at this time is considering the formation of a
special assessment district pursuant to the provisions of the "Municipal
Improvement Act of 1913", being Division 12 of the Streets and Highways Code of
the State of California, said special assessment district known and designated as
ASSESSMENT DISTRICT NO. 85-2.
3. That said proceedings are to be initiated by a Petition signed by property owners
of more than 60% in area of the property subject to assessment for the proposed
improvements, and said Petition has been submitted to the City Council for
consideration.
4. That based upon the documentation attached and an analysis and study of valua-
tion, it is hereby determined that the total estimated amount of the proposed
assessment will not exceed 75% of the estimated fair market value of the land
proposed to be assessed after the proposed public improvements shall have been
constructed. This determination is made pursuant to the requirements and
authority of Section 2804.1 of the Streets and Highways Code of the State of
California. For further particulars, reference is made to the support data and
documentation attached hereto.
EXECUTED this day o c .` _ , 1985, at San Diego, California.
KAD ENSEN : JOHNSON
` '
Ili ' ` ' \ ' `�!11i
CITY OF CHULA VISTA
STATE OF CALIFORNIA
Kadie - Jensen & Johnson
Municipal Financing Consultants Inc.
Kadie Willoughby C. Johnson
Eleanor Jensen Ramona Financial Bldg.
P.O. Box 346 402 W. Ojai Avenue
Aromas, California 95004 Ojai, California 93023
(408) 726-1276 October 29 , 19 8 5 (805) 646-7206
[AstMem2]
To: George Simpson
From: Carl Kadie
Re: Estimated Lien to Value Ratio on Assessment Bonds
The lien ratio is a primary means of judging the quality of
an assessment bond issue. It is determined by dividing the value
of the property by the amount of the assessment proposed to be
levied against the property.
At this time we do not have a firm determination as to the
amount of bonds to be issued. The best estimate to date of
construction costs from Willdan Associates and our estimate of
bond costs and appropriations is as follows :
ESTIMATED AMOUNT OF THE BOND ISSUE
Construction & 10% Contingencies $ 7 , 000 , 000
Engineering, Inspection, Fees , etc. 840 ,000
Sub total $ 7 , 840 , 000
Bond Related Costs and Appropriations
Reserve Fund 950 , 000
Discount 425, 000
Legal , Financing, Asst. Eng, Misc. 285, 000
Estimated Total Amount of Bonds $ 9,500,000
A formal appraisal is proposed to be done prior to the
actual sale of bonds. This appraisal will be based in part on an
analysis of absorption [rate of development] which will be per-
formed by a consultant specializing in the field. In order to
provide an early indication of value, we have prepared a brief
analysis which is based primarily on the cash flow of the project
as projected by EDC .
National Municipal Leasing Services Inc.
Memo to George Simpson t
October 29 , 1985
Page 2
EDC has provided us with an update of the projected cash
flow of the project on the condition that we generally keep the
data supplied confidential . While we are showing you this data
separately and also showing it to the City' s Finance Director, we
have not included it in this Memo.
The cash flow provided by EDC is in current dollars . Ac-
cordingly, if both land values and costs are subject to the same
inflationary pressures , this should add a conservative edge to
the projections . As most of the EDC expenditures have already
been incurred, or in the case of land acquisition, are fixed, the
rate of inflation of costs would have to exceed the rate of in-
flation of land by some 250% before the use of current dollars
would result in an over estimate of income.
In order to determine the present value of a cash flow, the
projected income stream is discounted. In other words , assuming
a discount rate of 10% , the present value of a dollar to be re-
ceived in one year would be $0 . 90 . This discounting is done on a
compound basis . Because of the probable favorable effects of
inflation on the cash flow, we have used a ten percent discount
rate to provide probable value and a fifteen percent rate to
provide a low value. On this basis , the present value of the
projected cash flow is as follows :
PRESENT VALUE OF CASH FLOW
10% Discount Rate $41 , 345 , 000
15% Discount Rate: 35 , 673 , 000
In addition to the value of the cash flow as shown above,
the land in East Lake 1 will have appreciated by the improvements
to be provided by the Assessment Project and the estimated amount
of improvements constructed by builders as provided by EDC. The
total estimated value of East Lake 1 is shown below:
Memo to George Simpson
October 29 , 1985
Page 3
ESTIMATED VALUE OF EAST LAKE 1
Probable Low
Value Value
Value of Cash Flow $41 , 345 , 000 $35 , 673 , 000
Assessment Improvements 9, 500 , 000 7 ,840 ,000
Builder Improvements 5 , 823 , 000 5 , 823 ,000
Total $ 56, 678 , 000 $ 49,336 , 000
Based on the above estimates of cost, the lien ratio
relative to the proposed assessment bond issue would be as shown
below:
ESTIMATED LIEN RATIO
Lien Ratio
Probable Value 5. 96 : 1
Low Value 5 . 19 : 1
Based on the foregoing analysis , we are of the opinion that
the land will provide excellent security for the bonds - well
above the current norm for development projects using assessment
bonds as a means of inferstructure financing.
The question of the overlapping or layering of debt which
will take place when additional bonds are issued is addressed in a
separate memo. Such additional bonds will consist of the Mello-
Roos financing of schools and perhaps certain other facilities such
as parks , the fire station and transportation center.
SPECIAL INSTRUCTIONS TO REAL ESTATE EXCHANGE
ESCROW INSTRUCTIONS AND ADDENDUM TO AGREEMENT
REGARDING PURCHASE AND SALE OF REAL PROPERTY (PARCEL 2)
With reference to Real Estate Exchange Escrow Instructions and
Addendum to Agreement Regarding Purchase Sale of Real Property -
(Parcel 2) , you are instructed to insert the amount of Four Million
Seven Hundred Sixteen Thousand Six Hundred Dollars ($4,716,600) as
the exchange value for Parcel 2 in Article 2 of said Instructions.
WESTERN SALT COMPANY, a
California corporation
BY: �„, 1111, ilk
BY:
EASTLAKE DEVELOPMENT COMPANY,
a California general partnership
By _DAVID IV, INC. , a
Calif&tnia corporation
David B. Kuhn, Jr.
L
President
HONORABLE MAYOR GREG COX AND CITY COUNCIL
City of Chula Vista
276 Fourth Avenue
Chula Vista, California 92010
This is to certify that EastLake Development Coupany
has expended the following amounts for planning and
development of EastLake I as of September 30, 1985:
Planning, engineering and other
'soft' project costs: $ 7,391,000.
Development costs: 6,893,000.
$14,284,000.
EASTLAKE
Certified this 30th day of October, 1985: COM ANENT
Y
EASTLAKE DEVELOPMENT COMPANY
by: fi 1(N,.` -f.
Robert Santos
Senior Vice President
701 B Street
Suite 730
San Diego,CA 92101
(619)231-2858
GEORGE T. SIMPSON j(1
INFRASTRUCTURE PLANNING AND FINANCE
4337 PT.VIEW COURT
LA MESA.CALIFORNIA 92041 (619)462-4257
November 4, 1985
TO: LYMAN CHRISTOPHER, Finance Director ..
City of Chula Vista
FROM: GEORGE SIMPSON, EASTLAKE Project Manage
SUBJECT: CITY - EASTLAKE Reimbursement Agreement
The proposed Reimbursement Agreement between the CITY and
EASTLAKE requires a irrevocable "Letter of Credit" as
security for EASTLAKE ' s agreement to advance on demand
the funds necessary for the costs of construction contracts
and other agreements prior to the receipt of bond funds .
It is recommended that the "Letter of Credit" be in the
amount of $3, 000, 000 based on the following estimate of
funds that will be required prior to the sale of bonds .
1. Consultants
BROWN - If proceedings terminated or abandoned
a reasonable fee will be paid based on
$125/Hr . , with a maximum of $5, 000 .
WILLDAN - Progress payments prior to the sale
of bonds based on monthly billings to
a maximum of $20,000 .
KADIE - Costs of printing, Notice , and publica-
tion, etc. of Official Statement to a
maximum of $5, 000 .
Proceedings terminated or abandoned, a reasonable fee
will be paid based on $100/Hr . with a maximum including
out-of-pocket costs of $5, 000 for personal services .
Subcontractors for Appraisals and Market analysis .
Estimate of $50,000.
CONSULTANTS SUB-TOTAL $85, 000
TO Lyman Christopher November 4, 1985
FROM: George Simpson Page Two
2. Construction Contracts
Reservoir $1, 844 , 000
Pump Station $ 825, 000
CONSTRUCTION SUB-TOTAL $2, 669, 000
3 . OTAY WATER DISTRICT
Engineering administration and inspection @ 3%
of contract
$80, 000
4 . CITY OF CHULA VISTA
Contract administration @ 1% of contract
$27 , 000
ADMINISTRATION AND
INSPECTION SUB-TOTAL $ 107, 000
SUMMARY
Consultants $ 85, 000
Construction Contracts 2 , 669, 000
Administration and Inspection 107 , 000
$2, 861, 000
Contingency 139, 000
TOTAL "LETTER OF CREDIT" $3, 000, 000
cc: KADIE
BROWN
SANTOS
JONES
GTS November 5, 1985
CONSULTANT CONTRACTS - SUMMARY c ..
Assessment District 85-2
TERMINATION
CONTRACT BOND PRE-BOND NO BONDS SOLD
CONSULTANT AMOUNT PROCEEDS PAYMENTS ABANDONMENT
BROWN *1 $ 47, 500 $ 47, 500 None $5,000 SERVICES
WILLDAN *2 44, 000 24, 000 $20, 000 None
KADIE *3 78, 500 28, 500 *4 APPRAISER 5, 000 SERVICES
MARKET 5,000 PRINTING
($50 , 000) OS
DOWRY 164, 500 164, 500 None None
RICK *5 NOT -- None None
IDENTIFIED
TOTALS $334 , 500 $264 , 500 $70, 000 $15, 000
*1 BROWN - Credit of 1/3 of any fees paid on support contract
($10,000)
*2 WILLDAN - Credit of 1/3 of any fees accrued to date (11-12-85)
on support contract ($40, 000)
*3 KADIE - $6, 666 maximum (1/3 of total paid on Support Consultant
contract $20, 000)
NOTE: Consultants do not appear to be consistent on credits
*4 Sub-consultants to KADIE . Appraiser and Market Absorption.
Preliminary estimate of cost $50 ,000.
*5 RICK ENGINEERING Contract need to be prepared for design costs
for on-site water and sewer plus Otay Lakes Road. All costs
to be paid from Bond proceeds.
SUMMARY
TOTAL CONSULTANT CONTRACTS $334, 500*
PRE-BOND SALE OBLIGATION 70 ,000
TERMINATION/ABANDONMENT OBLIGATION (PLUS PRE-BOND) 15, 000
BOND PROCEEDS OBLIGATION 264, 500
*PLUS RICK ENGINEERING
(ALL FROM BOND PROCEEDS)
COUNCIL AGENDA STATEMENT
L S
IL .
Item 16a, b, c, d, e
Meeting Date 11/12/85
ITEM TITLE: a. Resolution /05?;1' �Certifying EIR-85-3
b. Resolution A,S, Making Findings on Petition: Formal action
of City Council accepting petition for proceedings for a
special assessment district and making preliminary statutory
findings
c. Resolution /°�O? 1 Making Appointments and Approving
Agreements in a Special Assessment District: Makes preliminary
appointments of Superintendent of Streets, etc. , and approves
consulting contracts with Bond Counsel , F. Mackenzie Brown,
Inc. ; Assessment Engineer, Willdan Associates; Financial
Consultant, Kadie-Jensen & Johnson; and Design Engineer, Lowry
& Associates
d. Resolution /°,�WAdopting Proposed Boundary Map: Formal
action approving boundaries of Assessment District No. 85-2.
e. Resolution / ,5?4'< 'Referencing Prevailing Wage Scale and
Directing Call for Construction Bids: Formal action
authorizing bidding on the works of improvement to be awarded
December 17, 1985, with costs to be guaranteed and advanced by
Property Owner, EastLake Development Company
SUBMITTED BY: Director of Public Works/City Engineer � w(/
REVIEWED BY: City Manage (4/5ths Vote: Yes No X )
On February 26, 1985, Council adopted the EastLake I SPA and approved a
Development Agreement and Public Facilities Financing Plan for the
development. The use of special assessment financing under the "Municipal
Improvement Act of 1913" and "Improvement Bond Act of 1915" (Division 12 and
Division 10 of the Streets and Highways Code, respectively) for the
construction of the water, sewer and street improvements in the EastLake Phase
I is consistent with the financing plan and implementation program.
RECOMMENDATION: Approve the Resolutions.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
by tho Cliy Council of
Chula Vista, Ca`iorria
Dated
//- /O2 �-i6i
Page 2, Item 16a, b, c, d, e
Meeting Date 11/12/85
DISCUSSION: y
// {t,
Environmental Impact Report
The EIR for the project has been certified by the Planning Commission and the
Board of Directors of the Otay Water District. It is the conclusion of this
EIR that all impacts of this project (the physical change in the environment)
can be mitigated to a level of insignificance. Those mitigation measures are
outlined in Section III of the final EIR.
Assessment District Reimbursement Agreement
The EastLake Development Company, owners of the property to be included within
the proposed assessment district 85-2 have signed an agreement, to advance
funds to allow the City to pay for all initial consulting, administration,
engineering and construction expenses, relating to the formation of the
assessment district. The owners will be reimbursed or receive credit upon
their assessment for monies previously advanced.
The agreement lists the various expenses (or consultant services) eligible for
inclusion in the cost of the proceeding. It also provides a mechanism for the
payment of funds by the property owner and the administration of the contract
by the City. All City costs associated with these proceedings will be borne
by the property owner.
Petition
The property owners of record have submitted a petition to the City requesting
the initiation of special assessment district proceedings for the construction
and installation of certain authorized public improvements, including a water
reservoir, water pump station, transmission and on-site water facilities,
reclaimed water improvements, sewer lines, street improvements, together with
appurtenances, all as said improvements serve and benefit properties within
EastLake I (Assessment District No. 85-2). The petition, as submitted, has
been signed by the property owners representing 100% of the area and lands
proposed to be assessed, and has also been signed by the lenders of record as
shown on a preliminary title report as submitted and dated October 16, 1985,
Consultants
The property owners in the Petition have requested the following consultants
be employed to carry out the Assessment District proceedings, and their
' appointment is recommended because of their familiarity with the project and
the time restraints:
A. Assessment Engineer: Willdan Associates
B. Design Engineer: Lowry & Associates and Rick Engineering
C. Financial Consultant: Kadie-Jensen & Johnson
D. Bond Counsel : F. Mackenzie Brown, Inc.
Page 3, Item 16a, b, c, d, e
Meeting Date 11/12/85
The property owner has agreed to advance and/or guarantee the funds for
payment to the consultants and will be reimbursed from bond proceeds. A
contract with Rick Engineering for consultant work is now being drafted and
will be submitted for Council approval in the near future.
The total estimated cost of the improvements to be constructed by the
Assessment District is approximately $7,000,000.00. The incidental expenses
for engineering design, bond sales, bond reserve, City and Otay Water
inspection and administration, etc. , will add approximately 30-40% to the
construction costs.
Otay Municipal Water District
The Otay Municipal Water District is approving the plans and specifications
for the water improvements, and will be performing the inspection on the
construction of said improvements. The Water District will be paid for all
their services from advances from the property owner and from bond proceeds.
Prior to the award of any contract for water improvements, a contract will be
submitted, setting forth terms and conditions as it relates to the ownership,
management and maintenance of said facilities, said contract to be executed
between the City and the Water District.
Assessment District
In order to coordinate the Assessment District proceedings with the EastLake
Development Company schedule, including the substantial grading necessary for
the project and the time requirements to construct the reservoir (8 months) ,
it is necessary to phase the award of the various construction contracts. The
reservoir contract will be awarded in advance of the Assessment District
public hearing, and it is also proposed that the water pump station contract
will also be noticed and awarded prior to the public hearing and sale of bonds
for these proceedings. The public hearing is proposed to take place
approximate April , 1986. Funds for any contracts awarded prior to this time
will be provided to the City by EastLake Development Company, which would then
be reimbursed for any advances from the proceeds of the sale of bonds. The
construction contracts for the remaining public improvement work would be
awarded subsequent to any public hearing, and thus would be funded through the
sale of bonds.
Summary of Council Actions
Through the adoption of the above resolutions, the City Council will have:
1. Accepted the petition which authorizes staff to proceed with formation of
a special assessment district.
2. Approved the appointments of persons to perform duties, and approval of
consulting and reimbursement agreements.
3. Approved the boundaries of Assessment District No. 85-2.
Page 4, Item 16a, b, c, d, e
Meeting Date 11/12/85
4. Authorized the bidding for first phase of work of improvement (water
reservoir).
5. Approved the agreement committing the property owner to fund the cost of
the proceedings.
FISCAL IMPACT: The EastLake Development Company will be advancing all funds
necessary for the initial costs and expenses of the consultants and
construction bidding; thus, there is no fiscal impact on the City.
WPC 1720E
COUNCIL AGENDA STATEMENT / ' b :;
,, ; ,`
Item 16 a,_b, c, d, e
Meeting Date 11/12/85
ITEM TITLE: a. Resolution /;; r—Certifying EIR-85-3
b. Resolution /A 44 Making Findings on Petition: Formal action.
of City Council accepting petition for proceedings for a
special assessment district and making preliminary statutorj
findings
c. Resolution / ' �7Making Appointments and Approving
Agreements in a Special Assessment District: Makes preliminary
appointments of Superintendent of Streets, etc. , and approves
consulting contracts with Bond Counsel , F. Mackenzie Brown,
Inc. ; Assessment Engineer, Wilidan Associates; Financial
Consultant, Kadie-Jensen & Johnson; and Design Engineer, Lowry
& Associates
d. Resolution /a7 WAdopting Proposed Boundary Map: Formal
action approving boundaries of Assessment District No. 85-2.
e. Resolution /A,5? 7Referencing Prevailing Wage Scale and
Directing Call for Construction Bids: Formal action
authorizing bidding on the works of improvement to be awarded
December 17, 1985, with costs to be guaranteed and advanced by
Property Owner, EastLake Development Company /
SUBMITTED BY: Director of Public Works/City Engineer 9//Y://
REVIEWED BY: City Manage (4/5ths Vote: Yes No X )
On February 26, 1985, Council adopted the EastLake I SPA and approved a
Development Agreement and Public Facilities Financing Plan for the
development. The use of special assessment financing under the "Municipal
Improvement Act of 1 913" and "Improvement Bond Act of 1915" (Division 12 and
Division 10 of the Streets and Highways Code, respectively) for the
construction of the water, sewer and street improvements in the EastLake Phase
I is consistent with the financing plan and implementation program.
RECOMMENDATION: Approve the Resolutions.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
/ /
by the Ciy Council of
Chub Vista,
Cal iicrni/
�
Dated // /2 — S
yr
Page 2, Item 16a, b, c, d, e
Meeting Date 11/12/85
DISCUSSION:
Environmental Impact Report
The EIR for the project has been certified by the Planning Commission and the
Board of Directors of the Otay Water District. It is the conclusion of this
EIR that all impacts of this project (the physical change in the environment)
can be mitigated to a level of insignificance. Those mitigation measures are
outlined in Section III of the final EIR.
Assessment District Reimbursement Agreement
The EastLake Development Company, owners of the property to be included within
the proposed assessment district 85-2 have signed an agreement, to advance
funds to allow the City to pay for all initial consulting, administration,
engineering and construction expenses, relating to the formation of the
assessment district. The owners will be reimbursed or receive credit upon
their assessment for monies previously advanced.
The agreement lists the various expenses (or consultant services) eligible for
inclusion in the cost of the proceeding. It also provides a mechanism for the
payment of funds by the property owner and the administration of the contract
by the City. All City costs associated with these proceedings will be borne
by the property owner.
Petition
The property owners of record have submitted a petition to the City requesting
the initiation of special assessment district proceedings for the construction
and installation of certain authorized public improvements, including a water
reservoir, water pump station, transmission and on-site water facilities,
reclaimed water improvements, sewer lines, street improvements, together with
appurtenances, all as said improvements serve and benefit properties within
EastLake I (Assessment District No. 85-2). The petition, as submitted, has
been signed by the property owners representing 100% of the area and lands
proposed to be assessed, and has also been signed by the lenders of record as
shown on a preliminary title report as submitted and dated October 16, 1985.
Consultants
The property owners in the Petition have requested the following consultants
be employed to carry out the Assessment District proceedings, and their
' appointment is recommended because of their familiarity with the project and
the time restraints:
A. Assessment Engineer: Willdan Associates
B. Design Engineer: Lowry & Associates and Rick Engineering
C. Financial Consultant: Kadie-Jensen & Johnson
D. Bond Counsel : F. Mackenzie Brown, Inc.
Page 3, Item 16a, b, c, d, e
Meeting Date 11/12/85
The property owner has agreed to advance and/or guarantee the funds for
payment to the consultants and will be reimbursed from bond proceeds. A
contract with Rick Engineering for consultant work is now being drafted and
will be submitted for Council approval in the near future.
The total estimated cost of the improvements to be constructed by the
Assessment District is approximately $7,000,000.00. The incidental expenses
for engineering design, bond sales, bond reserve, City and Otay Water
inspection and administration, etc. , will add approximately 30-40% to the
construction costs.
Otay Municipal Water District
The Otay Municipal Water District is approving the plans and specifications
for the water improvements, and will be performing the inspection on the
construction of said improvements. The Water District will be paid for all
their services from advances from the property owner and from bond proceeds.
Prior to the award of any contract for water improvements, a contract will be
submitted, setting forth terms and conditions as it relates to the ownership,
management and maintenance of said facilities, said contract to be executed
between the City and the Water District.
Assessment District
In order to coordinate the Assessment District proceedings with the EastLake
Development Company schedule, including the substantial grading necessary for
the project and the time requirements to construct the reservoir (8 months) ,
it is necessary to phase the award of the various construction contracts. The
reservoir contract will be awarded in advance of the Assessment District
public hearing, and it is also proposed that the water pump station contract
will also be noticed and awarded prior to the public hearing and sale of bonds
for these proceedings. The public hearing is proposed to take place
approximate April , 1986. Funds for any contracts awarded prior to this time
will be provided to the City by EastLake Development Company, which would then
be reimbursed for any advances from the proceeds of the sale of bonds. The
construction contracts for the remaining public improvement work would be
awarded subsequent to any public hearing, and thus would be funded through the
sale of bonds.
Summary of Council Actions
Through the adoption of the above resolutions, the City Council will have:
1 . Accepted the petition which authorizes staff to proceed with formation of
a special assessment district.
2. Approved the appointments of persons to perform duties, and approval of
consulting and reimbursement agreements.
3. Approved the boundaries of Assessment District No. 85-2.
t l µ t
Page 4, Item 16a, b, c, d, e
Meeting Date 11/12/85
4. Authorized the bidding for first phase of work of improvement (water
reservoir).
5. Approved the agreement committing the property owner to fund the cost of
the proceedings.
FISCAL IMPACT: The EastLake Development Company will be advancing all funds
necessary for the initial costs and expenses of the consultants and
construction bidding; thus, there is no fiscal impact on the City.
WPC 1720E